Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — 2023 Citi Global Property CEO Conference
34 slides from Mid-america Apartment Communities's conference presentation, Mar 3, 2023
Slide 1: 2023 Citi Global Property CEO Conference
2023 Citi Global Property CEO Conference March 5 - 8, 2023 www.maac.com Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 state
Slide 3: Consistently Strong Performance for Shareholders
Consistently Strong Performance for Shareholders Steady Annual Core FFO per Share Growth Consistent and compounding Core FFO and dividend growth through market cycles; high quality earnings stream Strong dividend track record; steady growth and well-covered Top tier shareholder returns within the mu
Slide 4: Differentiated Portfolio Strategy
Differentiated Portfolio Strategy Unique Sunbelt focus…captures benefits of high growth and demand Diversification within Sunbelt…mitigates periodic supply-side pressures… drives superior full cycle performance Diversified renter price point… appeals to largest segment of the rental market… creates
Slide 5: About MAA | 29 Years of Sunbelt Strategy & Expertise
29 S&P 500 $23B 102K ~2,400 20 YR YEARS PUBLIC MEMBER COMPANY TOTAL MARKET CAP APARTMENT UNITS ASSOCIATES AVG EXEC TENURE ~$1B 14K A3/A- 3.71x 12.6% 116 ’23F TOTAL DEVELOPMENT, LU PIPELINE UNIT OPPORTUNITY REDEVELOPMENT PROGRAM MOODY’S CREDIT RATING UPGRADE ON 2/23/2023 NET DEBT TO ADJ EBITDAre 10-Y
Slide 6: Unique Diversification and Balance across the Sunbelt Region
TOP 10 MARKETS | % 4Q22 Same Store NOI TOP 10 MARKETS 1 Atlanta, GA 12.8% 6 Austin, TX 6.0% 2 Dallas, TX 8.9% 7 Raleigh/Durham, NC 5.5% 3 Tampa, FL 7.0% 8 Nashville, TN 4.8% 4 Orlando, FL 6.5% 9 Charleston, SC 3.8% 5 Charlotte, NC 6.4% 10 Houston, TX 3.6% Unique Diversification and Balance across th
Slide 7: A Proven Portfolio Strategy for Long-Term Growth and Stability
A Proven Portfolio Strategy for Long-Term Growth and Stability Our diverse portfolio of high-quality Sunbelt properties appeals to the largest segment of the rental market Our portfolio strategy drives robust long-term growth and greater stability through the full market cycle + Repositioned | MAA W
Slide 8: Strong Demand Prospects for MAA Markets
Strong Demand Prospects for MAA Markets Total Move-ins from Non-MAA States Trailing 12 Months at 12/31/22 CA | NY | IL | NJ | MA | WA 50% Of Move-ins from Non-MAA States Came from Peer Coastal/Gateway States MAA Markets continued to see strong in-migration in 2022 while out-migration has remained ar
Slide 9: Affluent Resident Profile + Diversified Employment + Affordable Rents
Affluent Resident Profile + Diversified Employment + Affordable Rents = Solid Rent Growth Opportunity PRIMARY EMPLOYMENT SECTORS FOR EXISTING RESIDENTS QTD AT 12/31/22 Healthcare Technology Finance/ Banking/ Insurance Education Retail Professional Services Restaurants/ Food Service Government Manufa
Slide 10: Strong Performance Today, While Strengthening for Tomorrow
Strong Performance Today, While Strengthening for Tomorrow MAA continues to deliver on its mission to drive long-term outperformance through all phases of the economic cycle with less volatility Our outperformance compared to Multifamily Peers2 during the latest down cycle and recovery period positi
Slide 11: 2023 Same Store Pricing Trends
2023 Same Store Pricing Trends Lease Over Lease Average Pricing Growth same store Jan 2023 Feb 2023 FEB YTD 2023 EFFECTIVE LEASES NEW LEASE -0.3% -0.2% BLENDED 4.1% RENEWAL 8.7% 8.8% Occupancy SAME STORE FEB YTD 2023 AVG DAILY PHYSICAL OCCUPANCY 95.5% + Record pricing growth achieved in 2022 benefit
Slide 12: Full Year 2023 Same Store Outlook
Property Revenue Growth [5.25% … 6.25% … 7.25%] Effective Rent Growth1 Earn-in of ~5.5% from 2022 with ~3% blended rent growth in 2023 (half impacting rent growth this year) [6.0% … 7.0% … 8.0%] Average Physical Occupancy Steady occupancy expected for full year [95.6% … 95.8% … 96.0%] Full Year 2023
Slide 13: 2023 Core FFO and Investment Outlook
2023 Core FFO and Investment Outlook Full Year 20232 [$8.88 … $9.08 … $9.28] Q1 20233 [$2.14 … $2.22 … $2.30] Total Overhead Corporate Property Management + G&A [$126.5M … $128.5M … $130.5M] EXPECTED CORE FFO/SHARE1 Midpoint represents approximately 6.8% increase over 2022 CAPITAL SPEND INITIATIVES4
Slide 14: Development Program Supports Continued Value Creation
Development Program Supports Continued Value Creation PHOENIX, AZ Novel Val Vista ATLANTA, GA Novel West Midtown SALT LAKE CITY, UT Novel Daybreak DENVER, CO MAA Milepost 35 I RALEIGH, NC MAA Nixie Combination of In-House and Joint Venture* “Pre-Purchased” Development Expands Revenue Growth Potentia
Slide 15: Development Pipeline and Lease-ups Poised To Deliver Value
Development Pipeline and Lease-ups Poised To Deliver Value 5.6% EXPECTED AVERAGE STABILIZED NOI YIELD $40M - $41M EXPECTED TOTAL STABILIZED INCREMENTAL NOI ACTIVE DEVELOPMENTS AT 12/31/22 PROPERTY MSA TOTAL UNITS EXP TOTAL COST (IN MILLIONS) EXPECTED INITIAL OCCUPANCY EXPECTED STABILIZATION1 Novel W
Slide 16: 2023 Development Expectations
2023 Development Expectations msa Units Est Start STATUS Denver, CO 259 2H 2023 Owned Orlando, FL 300 2H 2023 Owned Charlotte, NC 305 2H 2023 Owned Atlanta, GA 250 2H 2023 Controlled Denver, CO 181 2024 Owned Raleigh, NC 191 2024 Controlled Denver, CO 648 2024/2026 Owned Denver, CO 513 2024/2027 Own
Slide 17: Unit Interior Upgrades Continues to Drive Higher Value
Unit Interior Upgrades Continues to Drive Higher Value Property Redevelopment Program Opportunity Approximately 13K units identified for redevelopment across Same Store portfolio with potential to create additional rent growth value SCOPE Redevelopments are performed on turn at select communities (p
Slide 18: Future Redevelopment Opportunity
Future Redevelopment Opportunity Potential for Continued Value Creation Remains MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Future Value Opportunity Revenue At 5.3% Cap Rate1 Net Value Creation $17.9M $337.7M $256.4M Legacy MAA Legacy CLP Legacy PPS Total MAA Units 4,54
Slide 19: Repositioning Select Properties to Drive Additional Value
Repositioning Select Properties to Drive Additional Value MAA Harbour Island | Tampa, FL Updated and Expanded Fitness Centers Co-working Areas to Support Remote Work Desirable Amenities MAA Gardens |Atlanta, GA MAA Gateway (Pet Spa) | Charlotte, NC Exterior Amenities for Today’s Lifestyles MAA Worth
Slide 20: Technology Advances Enhance Operations and Add Value
Technology Advances Enhance Operations and Add Value Mobile control of locks, lights and thermostat as well as leak detection provides additional resident value Additional synergy opportunities in repairs and maintenance, capex, and vacant and house electric charges Continued upgrades and expansion
Slide 21: MAA's Technology Enhancements Expand, Upgrade Leasing Toolbox
MAA’s Technology Enhancements Expand, Upgrade Leasing Toolbox Objective to create a multi-functional and fully integrated self-service/self-touring leasing platform that results in a seamless, easy to use process for the entire resident journey from initial prospect engagement to ultimate move out.
Slide 22: Strong, Investment-Grade Balance Sheet
Strong, Investment-Grade Balance Sheet Note: Total Capitalization is defined here as common shares and units outstanding multiplied by the closing stock price on 12/31/22, plus total debt outstanding at 12/31/22, plus Preferred stock ($50 redeemable stock price multiplied by total shares outstanding
Slide 23: Balance Sheet Strength Positions Us Well for Future Growth Opportunities
Balance Sheet Strength Positions Us Well for Future Growth Opportunities % MATURING 8.4% 9.0% 9.1% 6.7% 13.5% 9.0% 12.7% 6.7% 10.1% 0% 14.8% Credit metrics At 12/31/22 MAA SECTOR AVG2,3 Total debt / adjusted total assets1 28.4% 30.7% Total secured debt / adjusted total assets1 2.3% 4.8% Unencumbered
Slide 24: A Brighter View for Today and Tomorrow: Our Sustainability Commitment
A Brighter View for Today and Tomorrow: Our Sustainability Commitment 2022 GRESB Public Disclosure Score A 75 100 29 30 46 70 2022 GRESB SCORE THREE GREEN STARS MANAGEMENT SCORE PERFORMANCE SCORE ENERGY USE INTENSITY 15% GREEN HOUSE GAS INTENSITY 15% WATER USE INTENSITY 10% 2018 – 2028 REDUCTION GOA
Slide 25: Supporting Associate Well-Being
SUPPORTING ASSOCIATE WELL-BEING 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 lifestyles Ongoing
Slide 26: Appendix
Appendix At December 31, 2022 Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms
Slide 27: Reconciliation of FFO, Core FFO, Core AFFO and FAD
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF FFO, CORE FFO, CORE AFFO AND FAD TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS Included in Other non-operating expense (income) in the Consolidated Statements of Operations. For the three and twelve months ended December 31, 2022,
Slide 28: Reconciliation of Net Operating Income to Net Income
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET OPERATING INCOME TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS Dollars in thousands Three Months Ended Year Ended December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net Operating Income
Slide 29: Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME Included in Other non-operating expense (income) in the Consolidated Statements of Operations. For the three and twelve months ended December 31, 2022, MAA incurred $5.8 million in ca
Slide 30: Reconciliation of Net Debt and Gross Assets
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET Dollars in thousands December 31, 2022 December 31, 2021
Slide 31: Reconciliation of Net Income per Share to Core FFO per Share for 2023 Guidance
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET INCOME PER DILUTED COMMON SHARE TO CORE FFO PER SHARE FOR 2023 GUIDANCE Full Year 2023 Guidance Range Low High Earnings per common share - diluted $ 5.97 $ 6.37 Real estate depreciation and amortization 4.72 4.72 Gains on sale of de
Slide 32: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures 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 part
Slide 33: Definitions of Non-GAAP Financial Measures: FFO
Definitions of Non-GAAP Financial Measures Funds From Operations (FFO) FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss on disposition of operating properties and asset impairment, plus depreciation and amortization of real e
Slide 34: Definitions of Other Key Terms
Definitions of Other Key Terms 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. Leasing
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