Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (November 2008)
13 slides from Mid-america Apartment Communities's investor presentation, Nov 18, 2008
Slide 1: Investor Update November 2008
Investor Update November 2008
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Statements contained in this presentation, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which can cause act
Slide 3: Well Positioned in High Growth Region
Well Positioned in High Growth Region National MSA Average 1.1% MAA Markets MSA Average 1.5% Austin, TX 2.9% Raleigh, NC 2.4% Dallas-Ft. Worth, TX 2.4% Houston, TX 2.4% Atlanta, GA 1.9% Orlando, FL 1.5% Phoenix, AZ 1.4% Employment Growth Projections 2009 - 2013 Annual Compounded Growth Rates MAA Mar
Slide 4: Out-Performing Sector
Out-Performing Sector MAA compounded annual FFO growth has been 3.5% versus the sector average of 0.9% A result of up-grading asset quality, repositioning market profile, strong operating platform, and strong balance sheet, MAA is better positioned to compete in robust market cycles, while also posi
Slide 5: Positive Market Trends
Positive Market Trends - - 2012 are projected to show strong performance in occupancy, rental rates and NOI Green Street Advisors, Apartment REITs - ’08 & ’09 Market Outlook, 11/30/07 • Rental share of housing market is likely to continue to recover. – MAA had 22% reduction in move-outs attributable
Slide 6: Well Positioned for Moderating 2009
Well Positioned for Moderating 2009 • Resident turnover continues to decline and shows positive year-over-year trends • Unit interior initiative has made solid progress with expected 3,800 units completed in 2008; more “renovate light” executions in • Lease-up and new development projects generated
Slide 7: External Growth Opportunities
External Growth Opportunities • Improving opportunities for attractive acquisitions – A number of distressed markets – Distressed lease-ups – Failed condo/condo conversions – Pending refinancing requirement • MAA has balance sheet capacity – Credit facilities in place at pre- crisis pricing – Raised
Slide 8: Conservative & Disciplined Strategy
Conservative & Disciplined Strategy • Conservative underwriting practices; accountability for assumptions made • Disciplined investment model • Steady execution on portfolio upgrade and repositioning • A focus on growing high quality and recurring FFO and NPV/share • Limited new development • A stro
Slide 9: Strong Balance Sheet
Strong Balance Sheet MAA Median Fixed charge coverage 2.50 2.13 AFFO payout ratio 82.6% 94.4% Debt/gross assets 51.2% 55.0% Source: KeyBanc 10-24-08, and MAA Capital Structure at 9-30-08 45% Debt 5% Preferred 50% Common Source: KeyBanc • Superior Ratios – Fixed Charge – Payout Ratio – Leverage • Low
Slide 10: Strong Balance Sheet
Strong Balance Sheet Debt maturities are negligible until 2011; fixed rate/swap maturities are well-laddered. • $174 MM of capacity in cash, Agency credit facilities and bank lines • Debt maturities – 2008 0 – 2009 $39 MM – 2010 $50 MM (LOC) – 2011 $180 MM • Fixed rate maturities – 2009 $90 MM – 201
Slide 11: Value Opportunity
Value Opportunity NAV Growth FFO Multiple Growth AVB 201% 75% AEC 138% 74% ESS 118% 77% MAA 114% 54% BRE 113% 56% EQR 90% 56% CPT 87% 33% UDR 82% 85% HME 51% 50% AIV 29% 34% PPS 16% 85% CLP -3% 33% Source: 2002 Data SSB (Jon Litt), 2008; First Call June 2008 • MAA is in the top 1/3 of apartment REIT
Slide 12: Value Opportunity
Value Opportunity FFO CAGR (1999 - 2008F) Current Multiple (11/07/08 Closing Price) ESS 7.2% 13.8 AVB 6.1% 12.7 MAA 3.5% 8.8 HME 3.4% 11.1 BRE 2.0% 11.9 UDR 1.6% 11.2 CPT 1.3% 9.2 EQR 1.3% 13.1 AIV -1.4% 4.4 AEC -1.6% 7.3 CLP -4.2% 3.6 PPS -7.9% 9.0 Average 0.9% 9.7 Source: SNL, Green Street Advisor
Slide 13: Mid-America Apartment Communities
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MID America Apartment Communities — Investor Presentation (November 2008) on 6ix