Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (February 2011)
14 slides from Mid-america Apartment Communities's investor presentation, Feb 8, 2011
Slide 1: Capital Markets Update February 2011
Capital Markets Update February 2011
Slide 2: MAA's Strategy
MAA’s Strategy Full Cycle Performance Objective Superior long‐ term performance Secure and growing dividend Lower volatility Sunbelt Region Focus Superior demand side performance Protecting against supply side pressure Large and Secondary Market Focus Full cycle performance profile Create value in p
Slide 3: Successful Public Platform
Successful Public Platform MAA total shareholder return has significantly outperformed the sector Annual compounded return to shareholders over the last 10 years has been 18.1% One of only three multifamily REITs to not reduce dividend over the past 15 years MAA Annual Dividend $2.70 2.0% $2.50 $2.3
Slide 4: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle Employment growth in MAA’s markets expected to outpace the national average and the major institutional markets . Annual Employment Growth 4.0% Annual Compounded 3.5% Employment Growth (2011‐ 2014): 3.0% 2.5% All MAA Markets: 3.0% 2.0% National MSA Average: 2.4% 1.
Slide 5: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle According to REIS, for the U.S. as a whole, average annual completions from 2010‐ 2015 are expected to drop 39%. In MAA’s markets, this drop is expected to approach 55% and near 57% in MAA’s large markets . The greatest regional drop is expected to occur in the Sou
Slide 6: Well Positioned for Recovery Cycle
Well Positioned for Recovery Cycle Pro‐ business environment MAA Market Diversification More access to lower cost labor “Right to Work” region Strong distribution and logistics structure Positive demographic flow Lower cost of living Lower taxes No state income taxes in TX, TN, FL Higher job growth
Slide 7: External Growth: Cash Flows on New Acquisitions
External Growth Cash Flows on New Acquisitions Actual v. Proforma ($000’s) Aggregate actual cash flows $35,000 $132,000 have exceeded proforma $30,000 $131,000 Outperformed expectations $25,000 131,106 $130,000 despite significant economic $ downturn $20,000 $129,000 $15,000 $128,000 Disciplined pro
Slide 8: External Growth
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 underwritin
Slide 9: Creating Value through External Growth
Creating Value through External Growth NOI Operating Margin 60.0% Significant improvement in operating margins drives value creation 55.0% 2010 MAA able to create value that less sophisticated operating Operating platforms are unable to achieve Pre Margin, 50.0% Acquisition 56.0% Operating Capabilit
Slide 10: 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 Debt to EBITDA and fixed charge coverage better than sector median Sector *Source: BMO Capital Market s Update (1/31/11) Debt to EBITDA* 70.0% 6
Slide 11: Attractive Pricing Opportunity
Attractive Pricing Opportunity 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, MAA share price would be $77.86; approximately a 23% premium to current trading ran
Slide 12: 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 13: Summary
Summary Unique strategy with proven long‐ term performance Established and proven public platform Solid internal growth prospects Competitive strengths enables regional outperformance Disciplined approach to capital deployment Solid balance sheet position Well positioned to perform as compared to th
Slide 14: End of Presentation
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 1933 and Section 21E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements made about an
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