Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (November 2009)
19 slides from Mid-america Apartment Communities's investor presentation, Nov 9, 2009
Slide 1: Institutional Investor Update, November 2009
(YY Mid-America Apartment Communities Institutional Investor Update November 2009
Slide 2: Strong Public Company Platform
Strong Public Company Platform Talus Ranch, Phoenix, AZ • Positive 15-Year Track Record – Top-Tier Returns to Shareholders – Proven Strong Operator – S&P Small-Cap 600 – Stable Management; Long Tenure – Strong Corporate Governance • Disciplined Capital Deployment – Value Investor – Extensive Network
Slide 3: Full Cycle Performance
Full Cycle Performance • MAA began re-positioning its portfolio in 2003 resulting in a profile that is well positioned to compete favorably Six+ Year Timeframe Inclusive of in ‘up’ cycles while also holding up Recovery/Strong Market Cycle better in ‘down’ cycles Weakeningand Market Cycle • MAA’s ope
Slide 4: Strong Third Quarter Results
Strong Third Quarter Results Increased full year FFO guidance Edge at Lyon’s Gate, Phoenix, AZ on solid core based performance • FFO per share of $0.89; top-end of guidance range • Same store physical occupancy at 96.0%; 70 basis points ahead of prior year • Strong FFO results driven primarily by be
Slide 5: Near-Term Outlook and 2009 Forecast
Near-Term Outlook and 2009 Forecast • Leasing is expected to be challenged over the next few quarters as a result of weak employment conditions – Weak pricing power has been off-set to some degree with strong occupancy and expense performance (lower resident turnover) • As a result of marking rents
Slide 6: Strong Long-Term Outlook
Strong Long-Term Outlook • Eventual recovery in employment trends will generate a rapid recovery in NOI – Pent-up demand; rapid growth of echo boomers; prime rental demographic • New apartment starts are predicted to hit a post-WW II low – Lack of financing; investment returns insufficient as constr
Slide 7: Well Positioned For Recovery Cycle
Well Positioned For Recovery Cycle • Positive demographic flows Employment Growth Projections 2009 - • Positive migration, immigration flows Annual Compounded 2013 Growth Rates • Low business/living costs National MSA Average 1.1% • Pro-business regulatory environment Sunbelt Region MSA Average 1.5%
Slide 8: Positioned to Out-Perform - Demand
Positioned to Out-Perform - Demand Most Concentrated Markets Among The Multifamily REIT (sorted by # of units) 1. Baltimore/Wash D.C. 2. Los Angeles 3. San Francisco Bay Area 4. Atlanta * 5. Dallas/Ft. Worth * 6. New York Metro Area 7. Orlando * 8. Seattle 9. SE Florida * 10. Phoenix * 11. Tampa * 1
Slide 9: Positioned to Out-Perform - Supply
Positioned to Out-Perform - Supply New Multifamily Supply Projections (REIS Data) Average Annual Projected Average Supply Annual Supply (# of Units) (# of Units) % Drop in Average Market 1999-2009 2010-2013 Annual Supply MAA Markets (*) 58,698 24,304 59% Primary REIT Markets 88,155 43,549 51% United
Slide 10: Positioned to Out-Perform
Positioned to Out-Perform Expansion of Panama Canal Expected • The Panama canal is currently undergoing a $5 To Create Additional Long-Term billion expansion that will allow ships triple the size of current capacity to pass. Employment Growth For The Southeast • Currently, these ships port on the We
Slide 11: Well Positioned For Recovery Cycle
Well Positioned For Recovery Cycle Technology platform supports efforts to both optimize revenue growth and better control expenses Prospects/Resident • Pricing system Contact – Supported strong occupancy while achieving optimal pricing in a weak leasing environment – Enabled more comprehensive anal
Slide 12: Strong Balance Sheet Position
Strong Balance Sheet Position • Leverage and ratios at historically Capital Structure - 9/30/2009 strong levels Other Debt 3% • Plenty of capacity - $177 MM unused • No 2009 refinancing, only $50 MM Common Debt Agency (bank line) for 2010 (well underway) 45% 49% Debt 97% • Agency loan maturities wel
Slide 13: External Growth Opportunities
External Growth Opportunities Grand Courtyards, Dallas, • Improving opportunities for TX attractive acquisitions – Distressed markets – Distressed lease-ups – Failed condo/condo conversions – Pending refinancing requirement • MAA has balance sheet capacity – Credit facilities in place at pre-crisis
Slide 14: External Growth Opportunities
External Growth Opportunities Lighthouse Court, Jacksonville, FL • Competitive advantage over other potential buyers; particularly in some of select secondary markets • MAA’s acquisition team sources an average of 200-300 potential acquisition opportunities each year • Since late 2002, we have close
Slide 15: Strong Management and Governance
Strong Management and Governance • Long-planned CFO transition effective January 1st – Al Campbell promoted to CFO; 11+ years with company; well prepared – Simon Wadsworth continues as a Director & Special Advisor to the CEO – Management depth, length of tenure, and company commitment to succession
Slide 16: MAA Offers An Attractive Value
MAA Offers An Attractive Value • Currently trading at an implied price per unit of approximately $65k – Replacement value of $110k - $120k – $110k/unit generates price/share of $105 • Currently trading at an implied cap rate in the range of 6.8 - 7.0 – 6.0 cap rate generates a price/share of $55 • M
Slide 17: Summary
Summary ü MAA Is a Proven Platform St. Augustine, Jacksonville, FL • 15+ Years as a Public Company • Strong Operating Platform • Top-Tier Performance for Shareholders • Full Cycle Performer ü Opportunity to Invest Ahead of Recovery • Balance Sheet is Strong, With Capacity • Fund II New Growth Opport
Slide 18: Safe Harbor Disclosure
Safe Harbor Disclosure Statements contained in this presentation, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which can cause act
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