Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Nareit REITweek 2021 Virtual Investor Conference
32 slides from Mid-america Apartment Communities's conference presentation, Jun 7, 2021
Slide 1: Nareit REITweek 2021 Virtual Investor Conference
Nareit ReitWeek 2021 Virtual Investor Conference June 8 – 10, 2021 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to our expectations for future periods. Forward-looking sta
Slide 3: Differentiated Portfolio Strategy: Creating Value Through The Full Market Cycle
Differentiated Portfolio Strategy MAA is uniquely diversified and balanced across the high-growth Sunbelt region, appealing to the largest segment of the rental market, which drives strong demand and greater stability. Outlook & Update Portfolio strategy supports above-sector-average performance exp
Slide 4: Unique Market Diversification and Submarket Balance across the Sunbelt Region
Unique Market Diversification and Submarket Balance across the Sunbelt Region 4 1 Based on gross asset value at 3/31/2021 for total multifamily portfolio 2 Average effective rent/unit for 1Q 2021 of $1,325 or higher for A to A+ and below $1,325 for B to B+ for total multifamily portfolio 3 Garden st
Slide 5: 2021 Supply and Demand Expectations
Though 2021 estimated Market Level Supply picture looks similar to 2020. 2021 anticipated Job Growth outlook is expected to be much improved from last year. 2021 Supply and Demand Expectations 5 JOBS TO COMPLETION Portfolio Level MAA Footprint New and expected 2021 supply deliveries primarily in URB
Slide 6: Cumulative Rent Growth Projections: 2021-2025
Cumulative Rent Growth Projections: 2021-2025 Strong Rent Growth Prospects for Sunbelt Markets 6 Source: Yardi Matrix Bulletin, April 2021; company data
Slide 7: 2021 Same Store Outlook
2021 Same Store Outla REVENUE EXPENSE : 1.0%-3.0% 3.0%-5.0% Foleo 202% Forcast 2.0% Foleo 2024 Forcant ‘4.0% igpoint anoint Effective Rent Growth 1.2%-2.2% ‘Real Estate Tax Growsh 3.25%-4.25% Fulleor 2004 orca 17% Ful Year 2023 Foresart 3.75% Conan apie iMapoine ew 2020 dios own epee in 95.25%-95.75
Slide 8: 2021 Core FFO and Investment Outlook
2021 Core FFO and Investment Outlook 8 1 In this context, per Share means per diluted common share and unit. 2 Net income per diluted common share is expected to be in the range of $3.34 to $3.64 per diluted common share ($3.49 at the midpoint) for the full year 2021. A reconciliation of Net Income
Slide 9: 2021 Operating Update
2021 Operating Upda EFFECTIVE tsnses AVG Pricing Grown RENEWAL AVG Pricing Growth - —— EE Newsease ‘Average Physical OCCUPANCY 259% 08% 6.2% 5.2% 69% 78% 1.3% 27% 69% 95.6% 98.7% 96.49% aa
Slide 10: High Quality Resident Profile + Affordable Rents = Solid Collections Performance
High Quality Resident Profile + Affordable Rents = Solid Collections Performance and Rent Growth Opportunity 10
Slide 11: Continued Low Resident Turnover
Continued Low Resident Turnover 11 Throughout the pandemic our total move outs to a single family home have stayed within the historical average (range of 25% - 27%). Trailing 12 Month Resident Turnover % of Total Move Outs to Rent or Buy Single Family Homes Resident Turnover and Move Outs Associate
Slide 12: Technology Advances Enhance Operations and Add Value
Technology Advances Enhance Operations and Add Value 12 2020 and 2021 Roll-out Mobile control of lights, thermostat and security as well as leak monitoring provides additional resident value Additional synergy opportunities in repairs and maintenance, capex, and vacant and house electric charges Con
Slide 13: Next Generation Platform Expands and Upgrades Leasing Toolbox
13 MAA continues to adopt, develop and deploy innovative solutions to enhance our leasing efficiency and effectiveness as well as our online presence Adapting our approach as prospects’ needs change, multiple tour options available including contactless visits Prominent Call to Action buttons to inc
Slide 14: Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years
14 Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years Property Redevelopment Program Opportunity Approximately 12K units remaining for redevelopment across Same Store portfolio with potential to create additional rent growth value SCOPE Redevelopments are performed on turn a
Slide 15: Future Redevelopment Opportunity
Future Redevelopment Opportunity 15 Potential for Continued Value Capture Remains MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Top 10 2021 Markets For Redevelopment Atlanta, GA Tampa, FL Charlotte, NC Dallas, TX Washington, DC Phoenix, AZ Nashville, TN Raleigh/Durham, NC
Slide 16: Repositioning Select Properties to Drive Additional Value
16 Repositioning Select Properties to Drive Additional Value MAA Buckhead, Atlanta, GA Updated Leasing Centers Conference Areas to Support Remote Work Exterior Amenities for Today’s Lifestyles MAA Stratford, Atlanta, GA MAA McKinney, Dallas, TX Dramatic Transformations MAA Worthington, Dallas, TX Pr
Slide 17: Development Program Supports Balanced and Diversified Portfolio Strategy
Development Program Supports Balanced and Diversified Portfolio Strategy 17 Novel Midtown, Phoenix, AZ MAA Frisco Bridges II, Dallas, TX MAA Windmill Hill, Austin, TX Sand Lake, Orlando, FL Long Point, Houston, TX Westglenn, Denver, CO Novel Val Vista, Phoenix, AZ The Robinson, Orlando, FL
Slide 18: Development Pipeline and Lease-ups Poised To Deliver Value
Development Pipeline and Lease-ups Poised To Deliver Value 18 Established history and success of disciplined capital deployment will govern growth through new development Design and investment managed from an owner/operator perspective; long-term margins optimized Spread between forecasted cost basi
Slide 19: Strong Balance Sheet and Manageable Debt Maturity Profile
Strong Balance Sheet and Manageable Debt Maturity Profile 19 1 MAA calculations as specifically defined in Mid-America Apartments, L.P.’s debt agreements. 2 Sector average represents publicly disclosed sector equivalent. 3 Sector constituents include AVB, CPT, EQR, ESS and UDR; data is from 1Q 2021
Slide 20: Investment Grade Balance Sheet
Investment Grade Balance Sheet 20 Note: Total Capitalization is defined here as common shares and units outstanding multiplied by the closing stock price on 3/31/2021, plus total debt outstanding at 3/31/2021, plus Preferred stock ($50 redeemable stock price multiplied by total shares outstanding).
Slide 21: A Brighter View for Today and Tomorrow: Our Sustainability Commitment
21 A Brighter View for Today and Tomorrow: Our Sustainability Commitment 34% Improvement over Prior Year 2020 Achievements Public GRESB Assessment | Corporate Responsibility Report 30 30 GRESB SCORE GREEN STAR MANAGEMENT SCORE PERFORMANCE SCORE Available on “For Investors” page at www.maac.com 2018
Slide 22: Supporting Our Associates' Well-Being: Our Sustainability Commitment
SUPPORTING OUR ASSOCIATES’ WELL--BEING 22 A Brighter View for Today and Tomorrow: Our Sustainability Commitment Responsive service program and routine surveys Online resident portal for ease of transactions, service request submission and communication Property amenities to promote healthy lifestyle
Slide 23: Performance for Shareholders: Steady Annual Core FFO Growth
Performance for Shareholders 23 Steady Annual Core FFO Growth SOURCE: S&P Global 1 Peer average includes multifamily peers: AVB, CPT, EQR, ESS and UDR & excludes MAA
Slide 24: Appendix
Appendix 24 At March 31, 2021 Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 25 (1) Included in Other non-operating expense in the Consolidated Statements of Operations. (2) For the three months ended March 31, 2021, $1.6 million of gains from unconsolidated limited partnerships are offset by $0.3 million of income tax expense. (
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 26
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 27 (1) Included in Other non-operating expense in the Consolidated Statements of Operations. (2) For the three months ended March 31, 2021, $1.6 million of gains from unconsolidated limited partnerships are offset by $0.3 million of income tax expense. F
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 28
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 29 (1) Non-Core items may include adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, adjustments for gains or losses from unconsolidated limited partnersh
Slide 30: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures 30 Adjusted EBITDAre For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered p
Slide 31: Definitions of Non-GAAP Financial Measures: Funds From Operations (FFO)
Definitions of Non-GAAP Financial Measures 31 Funds From Operations (FFO) FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gains or losses on disposition of operating properties and asset impairment, plus depreciation and amortization of
Slide 32: Definitions of Other Key Terms
Definitions of Other Key Terms 32 Average Effective Rent per Unit Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leas
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