Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — NAREIT REIT Week Investor Forum June 2011
16 slides from Mid-america Apartment Communities's conference presentation, Jun 7, 2011
Slide 1: NAREIT REIT Week Investor Forum June 2011
NAREIT REIT Week Investor Forum June 2011
Slide 2: MAA's Strategy
MAA’s Strategy Full Cycle Performance Objective - High quality recurring revenues - Lower volatility over full cycle - Secure and growing dividend Sunbelt Region Focus - Superior demand side performance - Competitive advantages to manage supply pressure Large and Secondary Market Focus - Full cycle
Slide 3: Successful Public Platform
Successful Public Platform MAA total shareholder return has significantly Annual Compounded Shareholder Return (1) outperformed the sector MAA Sector Avg. Annual compounded return to shareholders 3 Year 14.9% 10.3% over the last 10 years has been 18.4% 5 Year 8.6% 4.7% One of only three multifamily
Slide 4: Outperforming Sector Over Full Cycle
Outperforming Sector Over Full Cycle Better full cycle performance, with lower volatility, drives stronger and more consistent long ‐ term performance for MAA shareholders Repositioned portfolio 2004 ‐ 2011F and strengthened NOI Std Dev platform = stronger “up” cycle performance profile MAA 2.6% 3.2
Slide 5: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle Pro ‐ business environment MAA Market Diversification More access to lower cost labor -“Right to Work” region Strong distribution and logistics structure Positive demographic flow Lower cost of living Lower taxes -No state income taxes in TX, TN, FL Higher job grow
Slide 6: Well Positioned for Recovery Cycle: Employment Growth
Well Positioned for Recovery Cycle Employment growth in MAA’s markets expected to outpace the national average and the major institutional markets . Annual Employment Growth 4.0% Annual Compounded 3.5% Employment Growth 3.0% (2011 ‐ 2014): 2.5% All MAA Markets: 2.8% 2.0% National MSA Average: 2.3% 1
Slide 7: Well Positioned for Recovery Cycle: Multifamily Completions
Well Positioned for Recovery Cycle Multifamily Completions According to REIS, for the U.S. Projected % Drop in as a whole, average annual Average Average Average completions from 2011 ‐ 2015 are expected to drop 39%. 1999 ‐ 2010 2011 ‐ 2015 Annual Supply All MAA 67,265 29,509 56.1% In MAA’s markets,
Slide 8: External Growth
External Growth Significant deal flow and opportunities as a result of long established regional focus and in ‐ place networks . Extensive market and sub ‐ market knowledge supports accurate and timely analysis . Strong property management and asset management capabilities support accurate underwrit
Slide 9: External Growth: Cash Flows on New Acquisitions
External Growth Cash Flows on New Acquisitions Actual v. Proforma ($000’s) Aggregate actual cash flows $35,000 $132,000 have exceeded proforma $30,000 $131,000 Outperformed expectations $25,000 131,106 $130,000 despite significant economic $ downturn $20,000 $129,000 $15,000 $128,000 Disciplined pro
Slide 10: Creating Value through External Growth
Creating Value through External Growth NOI Operating Margin 60.0% Significant improvement in operating margins drives value creation 55.0% 2010 MAA able to create value that less sophisticated operating Operating platforms are unable to achieve Pre Margin, 50.0% Acquisition 56.0% Operating Capabilit
Slide 11: Solid Balance Sheet Position
Solid Balance Sheet Position Fixed Charge Coverage* Balance Sheet significantly strengthened over 3.5 last ten years 3.0 Total leverage (Debt + Preferred) reduced 18% over last ten years 2.5 Debt to EBITDA and fixed charge coverage better 2.0 than sector median 1.5 FFO/Share Debt+Pref/Gross Assets 1
Slide 12: Positioning Balance Sheet for Future
Positioning Balance Sheet for Future Current financing advantage MAA Debt/Market Cap 3/31/2011 ‐ Low cost “legacy” contracts ‐ Mature in tranches 2011 ‐ 2018 ‐ Capacity and flexibility to grow 37% $1.45B Taking advantage of environment -Increasing fixed rate debt to 90% $2.45B -Using long terms (7 ‐
Slide 13: Attractive Pricing Opportunity
Attractive Pricing Opportunity MAA is currently priced at an implied cap rate discount to the sector average . However, MAA’s historical long ‐ term internal same store growth (and overall FFO growth) performance exceeds the sector average; established record of exceeding regional ‘market’ performan
Slide 14: Attractive Pricing Opportunity: FFO Growth
Attractive Pricing Opportunity From 2000 ‐ 2010, the compounded annual growth rate of MAA’s FFO/share is 2 nd highest in the sector . Despite this performance, future growth priced into the current stock price is 2 nd to last in the sector FFO/Share Compounded Annual Growth Rate (2000 ‐ 10) % of Sto
Slide 15: Summary
Summary Unique strategy with proven long ‐ term performance Established and proven public platform Solid internal growth prospects Competitive strengths enables regional outperformance Disciplined approach to capital deployment Solid balance sheet position Well positioned to perform as compared to t
Slide 16: End of Presentation
End of Presentation 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 21E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements made about a
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