Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — NAREIT Investor Forum June 2010
16 slides from Mid-america Apartment Communities's conference presentation, Jun 7, 2010
Slide 1: NAREIT Investor Forum June 2010
NAREIT Investor Forum June 2010 MAA Mid-America Apartment Communities
Slide 2: Successful Public Company Platform
Successful Public Company Platform MAA Sixteen Year Record of Success Top Tier Performance for Shareholders Strong Operator; Sophisticated Platform S&P Small-Cap 600 Strong Corporate Governance Disciplined Capital Deployment Value Investor Extensive Network & Deal Flow Proven Success with Joint Vent
Slide 3: Focus on High Growth Region
Focus on High Growth Region MAA Pro-Business Environment Greater Access to Labor and Land Strong Distribution And Logistics Structure Positive Demographic Flow Lower Cost of Living Expanding Import/Export Activities Lower Taxes Higher Job Growth and Household Formation Trends Port cities likely to b
Slide 4: Value Creation Strategy
Value Creation Strategy MAA Portfolio Strategy Effective mix of large and secondary markets provide strong revenue growth in up economic cycles, more resilient performance in down economic cycles, with better results over the full cycle horizon Capital Deployment Strict discipline in underwriting; v
Slide 5: Strong Operating Platform
Strong Operating Platform MMA Based on latest quarterly data (Q110), MAA rents were 2.3% above market comps and occupancy was 6% above the REIS market average Sample Market MAA Rents Over (Under) Market MAA Occupancy Over (Under) Market Revenue Over (Under) Market Cap Rate Difference Between MAA and
Slide 6: Strong Operating Platform
Strong Operating Platform MAA Average occupancy of MAAs same store portfolio has exceeded comparable market averages (REIS data representing 94% of MAAs assets) by 170 bps Physical Occupancy MAA vs. REIS Average spread 170 bps 6
Slide 7: Out Performing Sector Over Full Cycle
Out Performing Sector Over Full Cycle MAA Better full cycle performance, with lower volatility, drives stronger and more consistent long-term performance Repositioned portfolio and strengthened platform = stronger up cycle performance profile 2000-2010E NOI Std Dev MAA 1.0% 3.7% Sector 0.8% 5.3% Sam
Slide 8: Recovery Cycle Underway
Recovery Cycle Underway MAA Dramatic fall-off in permits support outlook for minimal new supply pressure over the next three + years. Note that both large and secondary MAA markets are expected to drop below national MSA trends. % Change in Permits Issued 5+ Units Totall All MSAs MAA Markets Large M
Slide 9: Recovery Cycle Underway: National Outlook
Recovery Cycle Underway MAA National Outlook Muted new supply pressure, coupled with increasing demandfueled by recovery cycle in employment, pent-up apartment demand and lower home buying trendscombine to support a strong recovery cycle. MAA is particularly well positioned for strong positive absor
Slide 10: New Value Growth Opportunities
New Value Growth Opportunities MAA Sixteen + year track record focused exclusively on sourcing, underwriting, financing and closing on apartment properties Deal flow has significantly increased in past 60 days Well established record of performance for sellers; MAA active with all transaction market
Slide 11: Platform Value & Cap Rate Impact
Platform Value & Cap Rate Impact MAA Using the Q1 data discussed in slide 5, on a typical acquisition MAA would generate additional NOI of $300-$400k per year above market level performance At this average above market performance level, income generated on MAA managed properties should imply a cap
Slide 12: Attractive Pricing Opportunity
Attractive Pricing Opportunity MAA MAA is currently priced at an implied cap rate discount to the sector average However, MAAs historical long-term internal same store growth (and overall FFO growth) performance exceeds the sector average; established record of exceeding regional market performance
Slide 13: Cap Rate Movement and Cycles
Cap Rate Movement and Cycles MAA Investment Capital Chasing Opportunity in the High Growth Sunbelt Markets Drives Cap Rates and Value in a Manner That is Consistent With Other Regions Average Period to Period Basis Points Change in Cap Rate All Markets MAA Markets Source: CBRE Multi Housing Cap Rate
Slide 14: Attractive Pricing Opportunity
Attractive Pricing Opportunity MAA MAA trades at a discount to sector average FFO and AFFO multiples despite established record of out performance and solid prospects for strong recovery At sector FFO multiple average of 18.4, MAA share price would be $67.71; approximately a 25% premium to current t
Slide 15: Why Buy MAA
Why Buy MAA MAA High-growth region and strong operating platform well positioned for recovery cycle Solid prospects for robust internal growth over the next few years; demonstrated competitive recovery cycle performance Strong balance sheet and extensive deal flow; well positioned to capture meaning
Slide 16: End of Presentation
End of Presentation MAA Mid-America Apartment Communities
Mid-America Apartment Communities — NAREIT Investor Forum June 2010 on 6ix