Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (September 2020)
24 slides from Mid-america Apartment Communities's investor presentation, Sep 1, 2020
Slide 1: Capital Markets Update September 2020
Capital Markets Update September 2020 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: Rent Collections Update (as of August 31, 2020)
Q2 JULY AUGUST RESIDENTIAL RENTS As of August 31, 2020 $000S % OF TOTAL BILLED $000S % OF TOTAL BILLED $000S % OF TOTAL BILLED TOTAL BILLED $371,246 $124,201 $124,874 CASH COLLECTED $367,652 99.0% $122,752 98.8% $123,077 98.4%* DEFERRED PAYMENTS OUTSTANDING1 $1,521 0.4% $251 0.2% $240 0.2% 98.6%* Re
Slide 4: Same Store Pricing, Occupancy, and Operating Expense Update
Same Store Pricing, Occupancy, and Operating Expense Update (as of August 31, 2020) 1 Represents new leases that went into effect during the month; lease price is typically set on average 28 days ahead of lease start date 2 Includes the impact of concessions 3 Represents renewals that went into effe
Slide 5: Market Diversification and Submarket Balance across the Sunbelt Region
Market Diversification and Submarket Balance across the Sunbelt Region Multifamily Market Multifamily Market and Regional Office Multifamily Market and Corporate Headquarters 1 Based on gross asset value at 6/30/2020 for total multifamily portfolio 2 Average effective rent/unit for 2Q 2020 of $1,325
Slide 6: Current Unemployment Backdrop
[MAA PORTFOLIO] STATE UNEMPLOYMENT RATES STATE % SAME STORE NOI1 RATE Texas 25.3% 8.0% Florida 18.0% 11.3% Georgia 15.1% 7.6% North Carolina 11.3% 8.5% Tennessee 6.7% 9.5% All Other 23.6% 8.6% Current Unemployment Backdrop Source: U.S. Bureau of Labor Statistics On a weighted average of same store N
Slide 7: High Quality Resident Profile + Affordable Rents
High Quality Resident Profile + Affordable Rents = Solid Collections Performance and Upside Opportunity PRIMARY EMPLOYMENT SECTORS FOR EXISTING RESIDENTS Professional Services Healthcare Finance/ Banking/ Insurance Retail Education Technology Restaurants/ Food Service Hospitality Real Estate Governm
Slide 8: Continued Low Resident Turnover
Continued Low Resident Turnover Resident turnover continues to decrease, reaching record lows in Q2 2020. Move outs to buy a single family home or rent a single family home remain consistent at approximately 20% and 6% of all move outs, respectively. Trailing 12 Month Resident Turnover % of Total Mo
Slide 9: Technology Advances Enhance Operations and Add Value
2019 Test and 2020 Expansion Tests at 15 properties in 2019 were well received Mobile control of lights, thermostat and security as well as leak monitoring provides additional value to residents Additional synergy opportunities in repairs and maintenance, capex, and vacant and house electric charges
Slide 10: Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years
Unit Interior Upgrades Will Drive Higher Value over Next Two to Three Years Approximately 25,000 units redeveloped during past 3 years Redevelopments are performed on turn at select communities (properties remain in Same Store group), minimizing down time and allowing us to continually refine the pr
Slide 11: Future Opportunity to Capture Pipeline of Units Yet to Be Redeveloped
Future Opportunity to Capture Pipeline of Units Yet to be Redeveloped MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Future Value Opportunity Revenue At 5.0% Cap Rate Net Value Creation $14.8M $296.0M $226.5M Legacy MAA Legacy CLP Legacy PPS Total MAA Units 2,952 2,787 5,3
Slide 12: Repositioning Select Properties to Drive Additional Value
Repositioning Select Properties to Drive Additional Value Property Repositioning Program Thoughtful Upgrades to Maximize Revenue Program differentiated from kitchen/bath redevelopment – includes upgrade of amenities, exteriors and common areas to keep pace with market demand Candidates evaluated on
Slide 13: Development Program Supports Balanced and Diversified Portfolio Strategy
Novel Midtown, Phoenix, AZ Current $460 million development pipeline includes diversified product and markets Development Program Supports Balanced and Diversified Portfolio Strategy MAA Frisco Bridges II, Dallas, TX Sand Lake, Orlando, FL The Robinson, Orlando, FL Expected Completion 4Q 2021 Expect
Slide 14: Development Pipeline and Lease-ups Poised To Deliver Value
6.1% AVERAGE EXPECTED STABILIZED NOI YIELD $28M - $29M TOTAL EXPECTED STABILIZED INCREMENTAL NOI ACTIVE DEVELOPMENTS AT 6/30/2020 PROPERTY MSA TOTAL UNITS TOTAL EXP COST (IN MILLIONS) EXPECTED INITIAL OCCUPANCY EXPECTED STABILIZATION2 MAA Frisco Bridges II Dallas, TX 348 $ 69.0 2Q 2020 1Q 2022 Novel
Slide 15: Credit Metrics and Debt Maturity Profile
% MATURING 5% 4% 15% 8% 9% 9% 0% 13% 9% 13% 15% Credit metrics At 6/30/2020 MAA SECTOR AVG2,3 Total debt / adjusted total assets1 31.2% 33.5% Total secured debt / adjusted total assets1 4.3% 5.1% Unencumbered NOI / total NOI 91.1% 91.6% Net Debt / Adjusted EBITDAre4 4.69x3 5.32x Consolidated income
Slide 16: Strong Culture Serving All Stakeholders
Strong Culture Serving All Stakeholders Our long-term commitment to sustainability and responsibly managing our relationships is an essential part of how we provide exceptional service and value for our stakeholders. We are dedicated to continuous progress and have established an ESG council of exec
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms APPENDIX At June 30, 2020
Slide 18: 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 (income) expense in the Consolidated Statements of Operations. For the three and six months ended June 30, 2020, $5.0 m
Slide 19: 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 Six Months Ended June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net Operating Income Same Store NOI
Slide 20: 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 (income) expense in the Consolidated Statements of Operations. For the three and twelve months ended June 30, 2020, $5.0 million and $9.1 million, resp
Slide 21: Reconciliation of Net Debt, Gross Assets and Gross Real Estate 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 June 30, 2020 December 31, 2019 Unse
Slide 22: 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 23: 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 gains or losses on disposition of operating properties and asset impairment, plus depreciation and amortization of rea
Slide 24: 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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