Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — REIT Week 2014: NAREIT's Investor Forum
16 slides from Mid-america Apartment Communities's conference presentation, Jun 2, 2014
Slide 1: REIT Week 2014 NAREIT's Investor Forum
REIT WEEK 2014 NAREIT’S INVESTOR FORUM JUNE 3 - 5, 2014 6584 POPLAR AVENUE MEMPHIS, TN 38138 / WWW.MAAC.COM
Slide 2: Enhanced Opportunity: A Stronger Platform
ENHANCED OPPORTUNITY • Enhanced scale delivering expanded opportunities and benefits • 20 year established public company platform • Well diversified in high - growth markets across 14 Sunbelt states • Long - tenured management team; sophisticated public company board of directors 2 • A+ to B qualit
Slide 3: Enhanced Diversification Across High-Growth Sunbelt Region
Nevada Arizona Texas Mississippi Arkansas Kentucky Missouri Virginia North Carolina Tennessee Georgia South Carolina Alabama Florida FULL - CYCLE PERFORMANCE PROFILE; SUPERIOR LONG - TERM RESULTS ENHANCED DIVERSIFICATION ACROSS HIGH - GROWTH SUNBELT REGION 3 less than 2,000 Units 2,000 – 5,000 Units
Slide 4: Merger Integration Update
MERGER INTEGRATION UPDATE 4 Announcement June 3, 2013 Closed October 1, 2013 December 2014 December 2013 Identified $25M of synergies Numerous due - diligence site visits Exchange of non - public financial information; extensive due diligence and valuation analysis Pre - announcement review with Rat
Slide 5: Merger Opportunities
MERGER OPPORTUNITIES 5 Additional Areas of Opportunity FFO/Share Opportunity NOI Operating Synergies $0.05 - $0.11 Stabilize Development Pipeline $0.10 - $0.14 Recycle Non - earning Assets $0.05 - $0.08 Redevelopment of CLP Assets $0.10 - $0.17 Total $0.30 - $0.50 Value Premium Paid 1 ($226.5 millio
Slide 6: Strong Leasing Outlook
Source: U.S. Census Bureau; Moody’s Economy.com STRONG LEASING OUTLOOK 6 New Jobs Per Multifamily Completion - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2014F 2015F Large MAA Markets Secondary MAA Markets • Over the last up cycle (2004 - 2007), the ratio of new jobs to multifamily completions in our markets av
Slide 7: Development and Lease-Up Pipeline
*Expected stabilized NOI yield between 7% and 8% DEVELOPMENT AND LEASE - UP PIPELINE 7 Development and Lease - Up Pipeline ($mm, except per unit costs) Total Expected MSA Units to Date to Complete Total Per Unit Stabilized Active Development *: 220 Riverside Jacksonville 294 20.4$ 20.9$ 41.3$ 140$ 4
Slide 8: Redevelopment Pipeline
REDEVELOPMENT PIPELINE 8 2013 Results • Redeveloped approximately 2,600 units at an average cost of approximately $4,200 per unit • Achieved an average rent increase of $89 per month ($1,068 per year), 11% higher than non - redeveloped units • Generated a cash on cash return of 24% assuming 95% occu
Slide 9: Continuous Portfolio Upgrade Through Capital Recycling
CONTINUOUS PORTFOLIO UPGRADE THROUGH CAPITAL RECYCLING 9 • MARKET ENTRY San Antonio, TX; Charlotte, NC; Kansas City, MO; Richmond, VA; Fredericksburg, VA • MARKET EXPANSION Dallas/Fort Worth, TX; Orlando, FL; Atlanta , GA; Phoenix, AZ; Raleigh, NC; Nashville , TN; Austin, TX; Tampa, FL; and Greenvil
Slide 10: 2014 Same Store
2014 SAME STORE 10 Q2 2014 Timing of seasonal costs expected to impact expenses (relief in back half of year) YOY real estate tax expense continuing to pressure expenses Some synergy opportunity beginning to be realized 2H 2014 FY 2014 Timing of seasonal costs expected to favorably impact expenses O
Slide 11: 2014 Guidance
2014 GUIDANCE 11 2014 Guidance Range Core FFO/Share $4.84 - $5.04 ($4.94 Midpoint) Core AFFO/Share $4.09 - $4.29 ($4.19 Midpoint) SS Revenue Growth 3.5% - 4.5% SS Expense Growth 3% - 4% SS NOI Growth 4% - 5% Multifamily Acquisition Volume $200 - $300 Million Multifamily Disposition Volume $125 - $17
Slide 12: Strong Investment Grade Balance Sheet and Manageable Debt Maturity Profile
STRONG INVESTMENT GRADE BALANCE SHEET AND MANAGEABLE DEBT MATURITY PROFILE 12 Credit metrics MAA LT Target Total unencumbered assets to book value 63.9% 65% - 70% Net Debt / Recurring EBITDA 1 6.2x 6.0x Net Debt / gross assets 2 41.8% 40% - 45%GAV Secured debt / gross assets 2 22.4% 15% - 20% Fixed
Slide 13: Strong Credit Ratings and Bond Covenant Coverage
STRONG CREDIT RATINGS AND BOND COVENANT COVERAGE 13 Credit ratings Agency Rating Outlook Fitch Ratings 1 BBB Positive Moody’s Investors Service 2 Baa2 Stable S&P Ratings Services 1 BBB Stable (1) Mid - America Apartment Communities, Inc. & Mid - America Apartments, LP (2) Mid - America Apartments LP
Slide 14: Years of Success
20 YEARS OF SUCCESS 14 12.9 % 11.2% 9.5% 8.5% 7.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% MAA-US Multifamily Peer Average S&P 500 SNL US REIT Equity DJIA Superior Long - term Performance Annualized 20 Year Total Shareholder Return March 31, 2014 Source: SNL Equity Research $110,281 $10,000 $30,0
Slide 15: Summary
SUMMARY 15 x 20 year track record of superior growth in shareholder value x Annualized 20 year return of 12 . 9 % assuming reinvestment of dividend a t March 31 , 2014 x Merger related opportunities and scale creates upside over the next 2 - 3 years x Outlook for continued solid leasing fundamentals
Slide 16: Forward Looking Statements
FORWARD LOOKING STATEMENTS 16 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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