Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (February 2015)
12 slides from Mid-america Apartment Communities's investor presentation, Feb 9, 2015
Slide 1: Capital Markets Update February 2015
CAPITAL MARKETS UPDATE FEBRUARY 2015 WWW.MAAC.COM
Slide 2: Full-Cycle Value Creation Strategy
2 DISCIPLINED CAPITAL DEPLOYMENT; HIGH QUALITY ASSETS 3 ESTABLISHED COMPETITIVE STRENGTHS AND ADVANTAGES 4 INVESTMENT GRADE BALANCE SHEET A FULL - CYCLE VALUE CREATION STRATEGY • Well diversified across the high - growth Sunbelt region • Strong balance sheet productivity; high return on invested cap
Slide 3: Portfolio Strategy Supports Full Cycle Performance Objective
MAA DIVISION OFFICES ATLANTA Ɣ CHARLOTTE Ɣ DALLAS Ɣ JACKSONVILLE Ɣ NASHVILLE PORTFOLIO STRATEGY SUPPORTS FULL CYCLE PERFORMANCE OBJECTIVE 3 Large Markets % of Total 2014 NOI 1 Atlanta, GA 7.6% 2 Austin, TX 7.5% 3 Raleigh/Durham, NC 7.0% 4 Fort Worth, TX 6.0% 5 Charlotte, NC 6.0% 6 Dallas, TX 5.4% 7
Slide 4: Successful Merger Strengthens Platform; Builds Value
SUCCESSFUL MERGER STRENGTHENS PLATFORM; BUILDS VALUE 4 Synergy Opportunity Core FFO/Share Comments Identified at Merger 2014 Impact Cumulative 2015 Impact Marginal 2015 Impact G&A Synergies $0.32 $0.32* $0.32 $0.00 Full Impact captured in 2014; expect to maintain in 2015 NOI Operating Synergies $0.0
Slide 5: Positive Leasing Environment Supports Continued Favorable Rent Growth Trends
POSITIVE LEASING ENVIRONMENT SUPPORTS CONTINUED FAVORABLE RENT GROWTH TRENDS 5 EMPLOYMENT • Employment growth projections for all of our large markets meet or exceed the average projection of the top 25 REIT markets • Despite lower oil prices , Houston’s jobs projections still exceed the average top
Slide 6: Operational improvements on CLP portfolio
• Implemented training and customer service process on CLP portfolio • Increased “recommend rate” on national third party rating site by 37 percentage points • Third party administered customer service survey jumped 6 percentage points and is now 12 percentage points above our competitors • Key cust
Slide 7: Meaningful Redevelopment Opportunity; Strong Value Creation
MEANINGFUL REDEVELOPMENT OPPORTUNITY; STRONG VALUE CREATION 7 Redevelopment Opportunity • Redevelopments performed on turn, resulting in minimized down time and efficiency in evaluating effectiveness of program for real - time improvements to product mix and scope • 30 % - 50 % of the legacy CLP por
Slide 8: Active Pipeline of External Growth Opportunities
ACTIVE PIPELINE OF EXTERNAL GROWTH OPPORTUNITIES • Long established regional relationships with a variety of brokers, developers, and owners; preferred buyer status • Active transaction pipeline as both a seller and buyer drives opportunity • Relationships enable MAA to be opportunistic for both sta
Slide 9: High Portfolio Quality Supports Steady Internal Growth
Steady Upgrade to Asset Quality and Long - Term Earnings Potential: Transactions 2010 - 2014 HIGH PORTFOLIO QUALITY SUPPORTS STEADY INTERNAL GROWTH Price (000’s) Units Avg Age At Transaction Date Avg Rent Per Unit ACQUISITIONS $1,456,168 11,479 4 Years $1,202 DISPOSITIONS $426,000 7,959 27 Years $66
Slide 10: Solid Investment Grade Balance Sheet
SOLID INVESTMENT GRADE BALANCE SHEET 10 Credit metrics MAA LT Target Total unencumbered assets to book value 66.9% >70% Net debt / recurring EBITDA 6.4x 6.0x Net d ebt / gross assets 1 42.6% 40% - 43%GAV Secured debt / gross assets 1 19.3% 15% - 20% Fixed charge coverage ratio 2 4.0x > 4 .0x Note: A
Slide 11: Summary
SUMMARY 11 x Established record of long - term outperformance x Annualized 20 year total shareholder return of 12 . 5 % assuming reinvestment of dividend ( December 31 , 2014 ) x Balanced, full - cycle performer ; focused approach x Disciplined investor ; high quality earnings x Strong platform • Do
Slide 12: Forward Looking Statements
FORWARD LOOKING STATEMENTS 12 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 21 E of the Securities and Exchange Act of 1934 . Such statements include, but are not limited to, statements
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