Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — REITweek 2015: Nareit's Investor Forum
20 slides from Mid-america Apartment Communities's conference presentation, Jun 8, 2015
Slide 1: REITweek 2015: Nareit's Investor Forum
REITWEEK 2015: NAREIT’S INVESTOR FORUM JUNE 9 – 11, 2015 WWW.MAAC.COM
Slide 2: A Proven Successful Full-Cycle Strategy
2 DISCIPLINED CAPITAL DEPLOYMENT; HIGH QUALITY ASSETS 3 ESTABLISHED COMPETITIVE STRENGTHS AND ADVANTAGES 4 INVESTMENT GRADE BALANCE SHEET A PROVEN SUCCESSFUL FULL - CYCLE STRATEGY • Well diversified across the high - growth Southeast/Southwest region • Strong balance sheet productivity; established
Slide 3: Balanced Portfolio Supports Full Cycle Performance
BALANCED PORTFOLIO SUPPORTS FULL CYCLE PERFORMANCE 3 DIVISION OFFICES ATLANTA Ɣ CHARLOTTE Ɣ DALLAS Ɣ JACKSONVILLE Ɣ NASHVILLE Top Large Markets % of Q1 2015 NOI 1 Atlanta, GA 8.3% 2 Austin, TX 7.9% 3 Charlotte, NC 7.0% 4 Raleigh/Durham, NC 6.9% 5 Fort Worth, TX 5.9% 6 Dallas, TX 5.6% 7 Nashville, TN
Slide 4: Strategic Competitive Capabilities
▪ Scale and efficiency ▪ Recruit/retain top talent ▪ Margin outperformance STRATEGIC COMPETITIVE CAPABILITIES 4 BUYING OPPORTUNISTICALLY SUPERIOR CAPITAL MANAGEMENT OPERATING AT A SUPERIOR LEVEL ASSET MANAGEMENT SUPERIORITY IN LOCAL MARKETS EXITING INVESTMENTS OPPORTUNISTICALLY ▪ Off market transact
Slide 5: Significant Portfolio Repositioning Since 2010
61.5% 54.1% Acquired Sold 740 bps (3) Acquisition metrics reflect expected stabilization performance for acquired non - stabilized deals. SIGNIFICANT PORTFOLIO REPOSITIONING SINCE 2010 5 Improved Margin and Internal Growth Prospects Transaction Volume (1) (in millions) Age (2) (in years) Effective R
Slide 6: MAA Today – A Higher Quality Portfolio and Stronger Internal Growth Prospects
$716 $750 $799 $863 $910 $965 $4,463 $4,684 $5,164 $5,766 $6,141 $6,259 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $700 $750 $800 $850 $900 $950 $1,000 2010* 2011* 2012* 2013* 2014^ 2015F^ Same Store Effective Rent/Unit After Capex NOI/Unit MAA TODAY – A HIGHER QUALITY PORTFOLIO AND STRONGER INTERNAL
Slide 7: MAA Today
MAA TODAY 7 Residences at Burlington Creek; Kansas City, MO Year Completed: 2014 Retreat at Vintage Park; Houston, TX Year Completed: 2014 Bulverde Oaks; San Antonio, TX Year Completed: 2014 Cityscape at Market Center; Dallas, TX Year Completed: 2013 Stonefield Commons; Charlottesville, VA Year Comp
Slide 8: MAA Today
MAA TODAY 8 CG at Randal Lakes; Orlando, FL Year Completed: 2014 CR at South End; Charlotte, NC Year Completed: 2014 Highlands of West Village, Atlanta, GA Year Completed: 2006/2012 Rivers Walk; Charleston, SC Year Completed: 2013 CR at Frisco Bridges; Dallas, TX Year Completed: 2013 1225 South Chur
Slide 9: MAA Today
MAA TODAY 9 Market Station; Kansas City, MO Year Completed: 2010 2013 2013 2013 2013 2013 2012 CG at Double Creek; Austin, TX Year Completed: 2013 CG at Windermere; Orlando, FL Year Completed: 2009 Station Square at Cosner’s Corner; Fredericksburg, VA Year Completed: 2012 CG at Ayrsley , II; Charlot
Slide 10: MAA Today
MAA TODAY 10 Haven at Blanco; San Antonio, TX Year Completed: 2010 Venue at Cool Springs; Nashville, TN Year Completed: 2012 Allure at Brookwood ; Atlanta, GA Year Completed: 2008 Allure in Buckhead Village; Atlanta, GA Year Completed: 2002 ; Redeveloped: 2014 Alamo Ranch; San Antonio, TX Year Compl
Slide 11: Development Strategy; Strong Value Creation
DEVELOPMENT STRATEGY; STRONG VALUE CREATION Recently completed and active development pipeline totaling approximately $450 million with an average NOI yield of 7.5% and average rents of $1,270 Expected Cost Active Developments MSA Total Units Total (in millions) Per Unit (in thousands) CG at Bellevu
Slide 12: Meaningful Redevelopment Opportunity; Strong Value Creation
MEANINGFUL REDEVELOPMENT OPPORTUNITY; STRONG VALUE CREATION 12 Redevelopment Opportunity • Redevelopments performed on turn at select communities with minimized down time providing efficiency in evaluating effectiveness of program for real - time improvements to product mix and scope • 30 % - 50 % o
Slide 13: Strong Operating Platform Drives Competitive Advantages and Superior Operating Margins
STRONG OPERATING PLATFORM DRIVES COMPETITIVE ADVANTAGES AND SUPERIOR OPERATING MARGINS Regional Market Leading Expertise • 21 years of institutional property management experience in markets we serve • Onsite teams have seen multiple cycles of the apartment markets in the same cities • We understand
Slide 14: Best Online Reputation
BEST ONLINE REPUTATION Among Public Multifamily REITs and NMHC’s Top 50 Apartment Managers (1 ) FOCUSED ON EXCEPTIONAL SERVICE GENERATING COMPETITIVE ADVANTAGES ACROSS REGION Implemented training and customer service process on CLP portfolio following merger; active ongoing focus across the portfoli
Slide 15: Solid Investment Grade Balance Sheet
SOLID INVESTMENT GRADE BALANCE SHEET 15 Credit metrics MAA BBB Peers BBB+ Peers Total unencumbered assets to book value 70.5% 81.8% 73.0% Net debt / recurring EBITDA 6.2x 5.8x 6.2x Net d ebt / gross assets 1 42.1% 35.1% 39.2% Secured debt / gross assets 1 17.7% 15.0% 18.8% Fixed charge coverage rati
Slide 16: Solid Investment Grade Balance Sheet: Debt Summary
SOLID INVESTMENT GRADE BALANCE SHEET 16 Debt Summary ($ in millions) Secured Debt , 15% Unsecured Debt , 21% Common Equity , 64% Total Capitalization (1) at March 31, 2015 $6.15B Common Equity $ 3.48B Debt 93 % DEBT FIXED OR HEDGED 03/31/15 Secured Debt Fixed or Hedged Rate $1,348.3 Variable Rate 80
Slide 17: Successful Merger Strengthens Platform; Builds Value
SUCCESSFUL MERGER STRENGTHENS PLATFORM; BUILDS VALUE 17 Synergy Opportunity Core FFO/Share Comments Identified at Merger 2014 Impact Marginal 2015 Impact Cumulative 2016+ Impact G&A Synergies $0.32 $0.32* $0.00 $0.32 Full Impact captured in 2014; expect to maintain in 2015 NOI Operating Synergies $0
Slide 18: Relative Performance Compared to Relative Pricing Provides Investment Opportunity
RELATIVE PERFORMANCE COMPARED TO RELATIVE PRICING PROVIDES INVESTMENT OPPORTUNITY 18 Source: Greenstreet Advisors; Company Data; SNL -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Same Store NOI Growth MAA Sector Average (excluding MAA) M
Slide 19: Proven Platform Has Become Even Stronger
$ 3.09 $3.30 $ 3.99 $ 4.33 $ 4.28 (1) $ 4.55 (2) $2.46 $2.51 $2.64 $2.78 $2.92 $3.08 2010 2011 2012 2013 2014 2015F Core AFFO/Share Dividends PROVEN PLATFORM HAS BECOME EVEN STRONGER 19 • Increased market capitalization to over $ 9 . 6 billion ; higher liquidity and efficiencies • Portfolio transfor
Slide 20: Forward Looking Statements
FORWARD LOOKING STATEMENTS 20 Certain matters in this presentation may constitute forward - looking statements within the meaning of Section 27 - A of the Securities Act of 1933 and Section 21 E of the Securities and Exchange Act of 1934 . Such statements include, but are not limited to, statements
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