Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — 2025 Citi Global Property CEO Conference
37 slides from Mid-america Apartment Communities's conference presentation, Feb 28, 2025
Slide 1: 2025 Citi Global Property CEO Conference
2025 Citi Global Property CEO Conference March 2 – 5, 2025 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: At a Glance
At a Glance1 About MAA | Strong Performance Platform ~2,400 ~$1B A3/A- 4.0x 12.6% 124 Associates ‘25F Development Pipeline Investment Grade Rated Net Debt to Adj EBITDAre 10-Year Annual Compounded TSR At 2/28/2025 Consecutive Quarterly Cash Dividends Paid Since IPO2 31 S&P 500 $23.5B 104.6K Years Pu
Slide 4: Strong Performance and Attractive Returns for Investors
Strong Performance and Attractive Returns for Investors Core FFO per Share Expected 5-Year Compounded Annual Growth Rate of 4.6% High quality earnings stream; compounding Core FFO growth Strong dividend track record; steady growth and well-covered Superior long-term shareholder returns compared to a
Slide 5: Full Cycle Earnings Performance
Full Cycle Earnings Performance Source: Green Street; Company Filings 1 Peer constituents include AVB, CPT, EQR, ESS and UDR. 2008-2025F from Company Filings; 2026F-2028F from Green Street Over the long-term, MAA’s Same Store NOI growth outperforms the peer average with less volatility 3.8% SAME STO
Slide 6: Creating Value Through the Full Market Cycle
Creating Value Through the Full Market Cycle Differentiated Portfolio Strategy Unique market focus…captures benefits of high growth and demand Submarket and property type/class diversification helps to lessen periodic supply-side pressures… drives strong, long-term and full-cycle performance Diversi
Slide 7: Unique Diversification & Balance
Unique Diversification & Balance Top 10 Markets1 1 4Q 2024 % Total Same Store NOI 2 Based on gross asset value at 12/31/2024 for total multifamily portfolio 3 Source: Yardi Matrix Asset Class Rating 4 Garden = 3 stories or less; Mid-rise = 4 to 9 stories; High rise = 10+ stories 70% 30% LARGE MARKET
Slide 8: Resident Income + Job Mix + Affordability = Solid Growth Opportunity + Collections
Resident Income + Job Mix + Affordability = Solid Growth Opportunity + Collections SAME STORE RESIDENT PROFILE IN TOP MARKETS QTD AT 12/31/2024 AVG NEW RESIDENT INCOME AVG NEW LEASE RENT/ INCOME RESIDENT MED AGE RESIDENT % SINGLE TOP 5 EMPLOYMENT SECTORS 1 2 3 4 5 Atlanta, GA $93,710 20% 33 82% Dall
Slide 9: Supply Pressure Expected to Decrease in 2025
Supply Pressure Expected to Decrease in 2025 Source: Company, RealPage Market Analytics, Yardi Matrix 1 Unit-weighted supply pressure forecasted by applying estimated construction and lease-up timelines to construction starts as a percentage of inventory. Peak supply pressure indicates period at whi
Slide 10: High Absorption and Slowing Starts
High Absorption and Slowing Starts Quarterly Absorption in MAA and REIT Peer Markets (% of total units) High Absorption MAA Markets have displayed stronger absorption than REIT peer markets in all quarters since Q1 2020 except two Unseasonably strong absorption for 1H 2024 highlights the demand stre
Slide 11: Steady Demand Drivers for MAA Markets
Steady Demand Drivers for MAA Markets Move-ins from Non-MAA States Trailing 12 Months at 12/31/2024 CA | NY | IL | NJ | MA | WA 50% Of Move-ins from Non-MAA States Came from Peer Coastal/Gateway States MAA markets continue to capture positive in-migration trends; migration outside our markets remain
Slide 12: Diversified Portfolio & Price Point Capture Demand, Help Ease Supply Pressure
Diversified Portfolio & Price Point Capture Demand, Help Ease Supply Pressure Submarket Supply Look1 MAA rents average approximately $263/unit less than new supply in our submarkets driving a better value proposition for the prospective renter and appealing to a broader segment of the renter market
Slide 13: Compelling Acquisition Opportunities Emerging
Compelling Acquisition Opportunities Emerging MAA Vale | Raleigh/Durham, NC ACQUIRED 2Q 2024 EXPECTED STABILIZATION ~3Q 2025 MAA Boggy Creek | Orlando, FL ACQUIRED 3Q 2024 EXPECTED STABILIZATION ~1Q 2025 Recently Acquired Communities in Initial Lease-up Expected to Deliver Average NOI Yields of ~6%
Slide 14: Acquisitions and Developments Poised to Deliver Additional Value
Acquisitions and Developments Poised to Deliver Additional Value ACTIVE DEVELOPMENTS AT 12/31/2024 PROPERTY MSA UNITS EXPECTED COST (IN MILLIONS) EXPECTED 1ST OCCUPANCY EXPECTED STABILIZATION1 MAA Nixie 3 Raleigh/Durham, NC 406 $145.5 3Q 2024 3Q 2026 MAA Breakwater Tampa, FL 495 197.5 1Q 2025 1Q 202
Slide 15: Development Program Expands Revenue Growth Potential
Development Program Expands Revenue Growth Potential Modera Liberty Row Charlotte, NC MAA Plaza Midwood Charlotte, NC MAA Nixie | LEASING AT 12/31/2024 Raleigh/Durham, NC MAA Breakwater Tampa, FL Modera Chandler Phoenix, AZ Combination of In-House and “Pre-Purchase”* Development Supports Continued V
Slide 16: 2025 and Future Development Expectations
2025 and Future Development Expectations msa Units STATUS Denver, CO 259 Owned Orlando, FL 698 Owned Denver, CO 181 Owned Raleigh/Durham, NC 225 Owned Denver, CO 429 Owned Denver, CO 520 Owned Atlanta, GA 294 Owned TOTAL 2,606 2025 Development Pipeline EXPECTED TO BE MAINTAINED AT APPROXIMATELY $1 B
Slide 17: Gaining Momentum in 2025
Gaining Momentum in 2025 Absorption Continues (Concessions Abate Sunbelt Supply Slows Absorption Continues (Concessions Abate) Sunbelt Supply Slows Sunbelt Demand Outperforms Interest Rates Steady Strong Resident Profile Platform Initiatives/ Margin Expansion Redevelopment Opportunities Repositionin
Slide 18: Gaining Momentum in a Transition Year: 2025 Same Store Pricing Trends
Gaining Momentum in a Transition Year: 2025 Same Store Pricing Trends Lease Over Lease Average Pricing Change 2025 same store 4Q 2024 Feb 2025 ytd1 EFFECTIVE LEASES NEW LEASE -8.1% -6.7% RENEWAL 4.2% 4.6% BLENDED -2.1% -0.7% Occupancy 2025 SAME STORE 4Q 2024 Feb 2025 ytd1 AVG DAILY PHYSICAL OCCUPANC
Slide 19: Full Year 2025 Same Store Outlook
Gaining Momentum in a Transition Year: Full Year 2025 Same Store Outlook Effective Rent Growth1 [-0.30% … 0.20% … 0.70%] Property Revenue Growth [-0.35% … 0.40% … 1.15%] Average Physical Occupancy Steady occupancy expected for full year [95.3% … 95.6% … 95.9%] REVENUE Property Expense Growth [2.45%
Slide 20: 2025 Core FFO and Investment Outlook
Gaining Momentum in a Transition Year: 2025 Core FFO and Investment Outlook Full Year 20252 [$8.61 … $8.77 … $8.93] Q1 20253 [$2.08 … $2.16 … $2.24] CORE FFO/SHARE1 CAPITAL SPEND INITIATIVES Kitchen & Bath Redevelopment Expect 5.5K to 6.5K units in 2025 [$40M … $45M … $50M] Repositioning Program Exp
Slide 21: Unit Interior Upgrades Continues to Drive Higher Value
Unit Interior Upgrades Continues to Drive Higher Value Property Redevelopment Program Opportunity Approximately 12K 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 22: 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 Wort
Slide 23: Platform Value Initiatives - Technology Enabled
Platform Value Initiatives - Technology Enabled Final 3 same store properties complete in early 2025 ~$29 million of NOI (140bps margin) expected in the run rate by mid 2025 Over 4,000 validated leaks detected from 2020-2024; estimated expense/capital savings of $3 million Smart Home Technology $18
Slide 24: Online Leasing Platform Enhances Leasing Efficiency
Online Leasing Platform Enhances Leasing Efficiency 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 leasing process Tech
Slide 25: 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 12/31/2024, plus total debt outstanding at 12/31/2024, plus Preferred stock ($50 redeemable stock price multiplied by total shares outstan
Slide 26: Balance Sheet Strength Positions Us Well for Future Growth Opportunities
Balance Sheet Strength Positions Us Well for Future Growth Opportunities TOTAL DEBT MATURING 13.0% 6.0% 12.0% 8.0% 11.2% 6.0% 9.0% 7.9% 0.0% 6.9% 20.0% FIXED RATE DEBT INTEREST RATE 4.2% 1.2% 3.7% 4.2% 3.7% 3.1% 1.8% 5.4% 0.0% 5.1% 4.2% Credit metrics At 12/31/2024 MAA SECTOR AVG2,3 Total debt / adj
Slide 27: A Brighter View for Today & Tomorrow: Our Sustainability Commitment
A Brighter View for Today & Tomorrow: Our Sustainability Commitment 2024 GRESB Public Disclosure Score A 80 100 29 30 51 70 2024 GRESB SCORE THREE GREEN STARS MANAGEMENT SCORE PERFORMANCE SCORE ENERGY USE INTENSITY 35% GREEN HOUSE GAS INTENSITY 45% WATER USE INTENSITY 10% 2018 – 2028 REDUCTION GOALS
Slide 28: A Brighter View for Today & Tomorrow: Our Sustainability Commitment
A Brighter View for Today & Tomorrow: Our Sustainability Commitment SUPPORTING ASSOCIATE WELL-BEING 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 re
Slide 29: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix Reconciliation of Non-GAAP Financial Measures Non-GAAP Financial Measures and Other Key Definitions
Slide 30: Reconciliation of Net Income to FFO, Core FFO, Core AFFO and FAD
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FAD Included in Other non-operating expense (income) in the Consolidated Statements of Operations. For the three months ended December 31, 2024 and 2023, g
Slide 31: Reconciliation of Net Income to Net Operating Income
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME Dollars in thousands Three Months Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net income available for MAA common shar
Slide 32: Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre (1) Included in Other non-operating expense (income) in the Consolidated Statements of Operations. During the twelve months ended December 31, 2024, in accordance with its accounting
Slide 33: Reconciliation of Notes Payable to Net Debt and Gross Assets
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE TO NET DEBT RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETS Dollars in thousands December 31, 2024 December 31, 2023
Slide 34: Reconciliation of EPS to Core FFO for 2025 Guidance
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF EARNINGS PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER DILUTED SHARE FOR FULL YEAR 2025 GUIDANCE Non-Core FFO items may include adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shar
Slide 35: Non-GAAP Financial Measures: Adjusted EBITDAre
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 of MAA’s core
Slide 36: Non-GAAP Financial Measures: Funds Available for Distribution (FAD)
Non-GAAP Financial Measures Funds Available for Distribution (FAD) FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance pr
Slide 37: Definitions of Non-GAAP Financial Measures and Other Key Definitions
Definitions of Non-GAAP Financial Measures and Other Key Definitions Same Store NOI Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the p
Mid-America Apartment Communities — 2025 Citi Global Property CEO Conference on 6ix