Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (May 2012)
18 slides from Mid-america Apartment Communities's investor presentation, May 4, 2012
Slide 1: Capital Markets Update
a & a — Capital Markets Update MAY 2012 So MAA
Slide 2: Strategy For Value Creation
Strategy For Value Creation * Full Cycle Performance Objective — Superior long-term total shareholder return = Secure, growing dividend — High quality recurring cash flow * Focused on High Growth Sunbelt Region = Superior long-term “demand” performance — Competitive advantages to “supply” pressures
Slide 3: Full Cycle Performance Profile
Full Cycle Performance Profile * Portfolio strategy focused on Repositioned portfolio and strengthened delivering competitive results in 2.6% 33% platform = stronger *up" cycle performance profile the up cycle, strong relative 8% ae performance in the down cycle, 6% and superior performance over z B
Slide 4: Disciplined Capital Deployment
Disciplined Capital Deployment * Actual cash flows exceeding acquisition proformas * Creating competitive advantages to out-perform in growth of long-term value Current Value Net Income Cash Flows on New Acquisitions Minus Apartment CPPI Growth Actual vs. Proforma (sooo's) Last 5 Yrs (annualized) La
Slide 5: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle Employment growth in MAA‘s markets expected to outpace the national average. Sunbelt Job Growth Expected to be Outsized Strong Job Growth & Household Formation Region Apartment REIT same store portfolio weighted average next twelve month job growth Affordable, lowe
Slide 6: MAA Better Positioned in Sunbelt Region
MAA Better Positioned in Sunbelt Region Market-Weighted Exposure by Percent NOI to New Supply hove Future Supply * Not the typical Sunbelt Region exposure to 2.5% Current Supply supply risks ai ; F 2.5% « MAA’sallocation of capital to secondary AG markets drives down risks while continuing 0.5% to c
Slide 7: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle 1012 physical occupancy ended at 96.2% heading into peak leasing season Leasing traffic running well ahead of prior year 1Q12 renewal pricing up 6.5%; new lease pricing up 4.9% Resident turnover near historic low Same Store Average Effective Rent/Income 18.81% aga
Slide 8: Robust External Growth
Robust External Growth Significant deal flow and opportunities as a result of long established regional focus and in-place networks. Extensive market and sub-market knowledge supports accurate and timely analysis. Strong property management and asset management capabilities support accurate underwri
Slide 9: Creating Value through External Growth
Creating Value through External Growth NOI Operating Margin Operating Margin, 55.2% ‘Pre Acquisition Operating Margin, 52.3% Total Property Value (sooo's) Aggregate Value, $780,266 Aggregate Purchase Price, $623,196 Significant improvement in operating margins drives value creation MAA able to creat
Slide 10: Robust External Growth
Robust External Growth Cool Springs (428 units in Nashville) — 126 units leased 3/31/12 — Expected stabilization 4013 Ridge at Chenal Valley (322 units in Little Rock) — sounits leased 3/31/12 — Expected stabilization 3023 1225 South Church Phase lI (220 units in Charlotte) — Expected initial occupa
Slide 11: Active Redevelopment Program Will Further Support Revenue Growth Opportunities
Active Redevelopment Program Will Further Support Revenue Growth Opportunities * $20M in redevelopment investment in * 12,000-14,000 additional units across portfolio 2010/2011 with 4,900 units renovated identified for redevelopment assessment * 605 units renovated in 1012 with average © Expect to i
Slide 12: Solid Balance Sheet Position
Solid Balance Sheet Position * Balance Sheet significantly strengthened over last ten years * Total leverage (Debt + Preferred) reduced 18% over last ten years $4.50 70% $4.00 oe 60% $3.50 55% $3.00 50% $2.50 $2.00 40% 2000 2002 2002 2003 2004 2005 2006 2007 2008 2009 2020 2011 GIFFO|Share = ——Debt+
Slide 13: Positioning Balance Sheet for Future
Positioning Balance Sheet for Future Pursuing Investment Grade Rating from Moody’s and S&P - Broaden capital sources - Constant access to capital MAA compares well to most investment grade - Lowest cost over long-term multifamily REITs on key rating agency metrics 4.2K Fixed Charge Coverage Net Debt
Slide 14: Attractive Pricing Opportunity
Attractive Pricing Opportunity MAA is currently priced at an implied cap rate discount to the sector average. However, MAA’s historical long-term internal same store growth (and overall FFO growth) performance exceeds the sector average; established record of exceeding regional ‘market’ performance
Slide 15: Superior Long Term Performance Profile
Superior Long Term Performance Profile * Proven ability to deliver long-term superior FFO/Share Compounded Annual Growth Rate (2000-2021) earnings growth and shareholder ae erformance a il i i ; os ae iB * Ability to capture returns to capital that 2% compare favorably to other strategies, and 4% wi
Slide 16: Summary
Summary © Strong long-term performance record for shareholders ¢ Established and proven public platform © Solid internal growth prospects © Competitive strengths enables regional outperformance © Robust external growth pipeline ® Disciplined approach to capital deployment © Solid balance sheet posit
Slide 17: End of Presentation
SMAA A Brighter View End of Presentation ‘Certain matters in this presentation may constitute forward-looking statements within the meaning of Section 27-A of the Securities Act of 933 and Section 23E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statem
Slide 18: Brighter View
Brighter View
MID America Apartment Communities — Investor Presentation (May 2012) on 6ix