Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Day (September 2007)
60 slides from Mid-america Apartment Communities's investor day presentation, Sep 10, 2007
Slide 1: Institutional Investor Day
TECHNOLOGY DEVELOPMENT REDEVELOPMENT PORTFOLIO QUALITY Mid-America Apartment Communities, Inc. Institutional Investor Day Raleigh, NC September 10, 2007
Slide 2: Investor Update
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 TECHNOLOGY DEVELOPMENT REDEVELOPMENT PORTFOLIO QUALITY INVESTOR UPDATE Mid-America Apartment Communities, Inc. Institutional Investor Day Raleigh, NC September 10, 2007
Slide 3: Strong Public Company Platform
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Strong Public Company Platform High quality portfolio Sunbelt/High Growth region focus Average age 14 years Since 2001…$602 MM acquired at average age of 5.3 years, $73 MM sold at average age of 2
Slide 4: Value Creation Process
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Fund Management/ Joint Ventures Value Add New Development Acquisitions Property Management Asset Management Portfolio Strategy Focus on High-Growth Region Top Tier Shareholder Performance Value Cr
Slide 5: Research Based Capital Allocation
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Demand/ Supply Lower Cap Rates Higher NAV Higher Liquidity Affordability Household formation New renter households Projected new apartment supply Institutional capital markets; higher liquidity an
Slide 6: External Growth Platform
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 External Growth Platform Acquisitions Extensive network High deal flow Competitive advantage Fund Management Value add investments Monetize platform value New Development/Lease-Up Unique value add
Slide 7: Operating Platform
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Operating Platform Sophisticated Platform New technology Yield management Competitive advantage Redevelopment Significant opportunity Unique approach New Initiatives Fully automated leasing Invent
Slide 8: Attractive Investment Opportunity
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Attractive Investment Opportunity Strong balance sheet Conservative business strategy Competitive use of leverage 81% of debt is fixed, swapped or hedged Strong coverage ratios Fixed charge ratio
Slide 9: Attractive Investment Opportunity
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Attractive Investment Opportunity Competitive Operating Results More robust market profile Improved operating platform Superior FFO Results Steady growth Disciplined investment protocols
Slide 10: Attractive Investment Opportunity
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Attractive Investment Opportunity Significant discount to sector average pricing Spread between bi-coastal and large development platforms is too large, especially when considering relative risks
Slide 11: Key Takeaway Points
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Key Takeaway Points 1. Sophisticated operating platform…competitive regional advantage 2. Solid upside opportunity for internal growth 3. Steady new growth prospects 4. Quality properties 5. Solid
Slide 12: Summary
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Summary ü Experienced Public Company Platform ü Portfolio Well Positioned ü Strong Operating Platform ü Disciplined Capital Allocation ü Solid Balance Sheet ü Strong Coverage Ratios ü Attractive I
Slide 13: Technology
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 TECHNOLOGY DEVELOPMENT REDEVELOPMENT PORTFOLIO QUALITY TECHNOLOGY Mid-America Apartment Communities, Inc. Institutional Investor Day Raleigh, NC September 10, 2007
Slide 14: Business/Technology Environment
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 BUSINESS/TECHNOLOGY ENVIRONMENT Shelton Barron Senior Vice President, MIS
Slide 15: IT Presentation Overview
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 IT Presentation Overview 1. IT strategy - What is it, and how do we identify and add value? 3. How do we manage technological change in the organization? 5. Where have we deployed technology in th
Slide 16: IT Strategy
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 IT Strategy What is it, and how do we identify and add value? Technology Guiding Principles Favor proven technology over bleeding edge Buy versus build applications when possible Keep IT aligned w
Slide 17: Data Infrastructure
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Data Infrastructure Property Management Systems HR / Payroll Accounts Payable / General Ledger Asset Reports Performance Management Business Intelligence
Slide 18: Project Deployment Process
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Project Deployment Process Management Team Business Vision Region 2 Pilot Properties GAP Analysis Region 3 Region 5 Region 4 Region 6 Region 1 Client Install Data Conversion Training How do we man
Slide 19: Technology Progress Report
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Technology Progress Report Where have we deployed technology to create value? Date Technology Web based Property Management (MRI) May 2004 June 2004 Automated Resident Screening (Saferent) Decembe
Slide 20: Property Operating System
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Property Operating System MAA Operational Systems On-line Solutions Yield Management Purchasing Real-time Asset Reporting Fee Automation Utilities Management Resident Screening Collections Managem
Slide 21: Same Store Delinquency Integrations
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Same Store Delinquency Integrations Improvement resulting from successful implementation of Automated screening technology Real-time reporting technology Collection agency integrations Reduced net
Slide 22: Utility Integrations
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Utility Integrations Improvement resulting from successful implementation of Automated utility billing Vacant elect recovery automation Real-time reporting technology Implemented real-time collect
Slide 23: Fee Automation
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Fee Automation Improvement resulting from successful implementation of Automation of move-in fees Automation of late fees Reporting of term fees Collection follow-up/focus process Increased same s
Slide 24: OpsBuyer Purchasing System
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 OpsBuyer Purchasing System Real-time, company wide visibility of expenses Enhancement of budgetary controls Automation of purchasing approval process Electronic procurement and invoicing for large
Slide 25: Yield Management
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 YIELD MANAGEMENT Chris Lynn Director, Pricing
Slide 26: Yield Management Summary
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Yield Management Summary 2006 - Successful Test of LRO on 7 Pilot Properties Pilot included test and control properties Revenue lift of 2.8% Results in line with tests by other users 2007 - Comple
Slide 27: Yield Management Results
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Yield Management Results Lift versus Market (Reis) - 2Q07 High Growth - Outperform 2.8% Income Plus - Outperform 3.5% Stable - Outperform 4.0% Weighted average - Outperform 3.1%
Slide 28: Yield Management Results
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Yield Management Results
Slide 29: Yield Management Results
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Yield Management Results Internal Improvement (YOY Revenue Growth) 5 month comparison Pre-LRO - 4.0% increase Post-deployment - 5.4% increase Overall lift - 1.4%
Slide 30: Yield Management Results
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Yield Management Results Additional Growth Expected Current results include limited re-pricing opportunities Renewals expected to provide additional lift Automated approach to renewals yields cons
Slide 31: LRO System - Other Benefits
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 LRO System - Other Benefits Enhanced Lease Expiration Management Property specific demand forecast Centralized management Allows prospects flexibility…for the right price Automated Make Ready Cale
Slide 32: Web-Based Solutions
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 WEB-BASED SOLUTIONS Melintha Ogle Director, Marketing
Slide 33: Online Customer Solutions Platform
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Online Customer Solutions Platform Online Leads as a Percent of Total Traffic 2005 - 18% 2006 - 23% 2007 - 30% Creating value through online lead generation 1.3 million property website visitors f
Slide 34: Online Customer Solutions Platform
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Online Customer Solutions Platform Creating value through online lead generation 1. Minimize clicks between prospect and the property via a customer-centric web presence Self-contained property UR
Slide 35: Online Customer Solutions Platform
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Online Customer Solutions Platform Launch of new community websites, Winter 2007 Re-Lease Opportunity Resident Retention New Lease Capture Lead Generation Seamless Online Leasing Portal • Real tim
Slide 36: MAA Web Strategy - What's Next?
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Online Customer Solutions Platform MAA web strategy - What’s next? New Aesthetics and Navigation Enriched Content Photo gallery Colorized, interactive floorplans Streaming video E-brochure Text me
Slide 37: MAA Web Strategy - What's Next?
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Online Customer Solutions Platform MAA web strategy - What’s next? Fully-Integrated Online Customer Solution Regional/Local Search Maps Corporate Website Property Website Seamless Mapping Function
Slide 38: Property Operating System Wrap-up
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Property Operating System Wrap-up Creating Shareholder Value Utilizing proven technology Expand revenue opportunities Enhance customer value Improve business processes Evaluate new technologies to
Slide 39: Development
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 TECHNOLOGY DEVELOPMENT REDEVELOPMENT PORTFOLIO QUALITY DEVELOPMENT Mid-America Apartment Communities, Inc. Institutional Investor Day Raleigh, NC September 10, 2007
Slide 40: Strategy
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Strategy Superior Investment Returns Familiar, high growth markets Opportunities with clear cost advantages Partner with experts Excellent risk-adjusted returns Limited Risk Limited MAA overhead c
Slide 41: Project Overview
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Project Overview Project Units Location Cost/Price Status Talus Ranch Phoenix, AZ $62.0 MM 100% delivered 83% leased/preleased Brier Creek II Raleigh, NC $24.0 MM 100% delivered 58% leased/preleas
Slide 42: Project Timeline
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Project Timeline
Slide 43: Construction in Process
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Construction in Process Copper Ridge I Dallas, TX 216 units Start Date: 7/30/2007 Completion: 4Q08 Stabilization: 2Q09 Cost: $19.2 MM Rents: $0.94 - $1.15 NOI Yield: 9.1%
Slide 44: Construction in Process
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Construction in Process St. Augustine at the Lake II Jacksonville, FL 124 units Start Date: 8/15/2007 Completion: 3Q08 Stabilization: 4Q08 Cost: $13.0 MM Rents: $0.91 - $1.12 NOI Yield: 7.2%
Slide 45: Construction Management
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Construction Management Goals Quality product Timely delivery On cost Active and thorough review process - in house skill set Project design review and analysis Civil plan review and analysis Arch
Slide 46: Lease-up in Process
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Lease-up in Process Brier Creek II Raleigh, NC 200 units Completion: 8/10/2007 % Leased: 58% Stabilization: 2Q08 Cost: $24.0 MM Rents: $0.82 - $1.04 NOI Yield: 7.7%
Slide 47: Lease-up in Process
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Lease-up in Process Talus Ranch Phoenix, AZ 480 units Completion: 3Q06 % Leased: 83% Stabilization: 4Q07 Cost: $62.0 MM Rents: $1.01 - $1.19 IRR: 10%
Slide 48: Lease-up in Process
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Lease-up in Process Farmington Village Charleston, SC 280 units Completion: 3Q07 % Leased: 65% Stabilization: 2Q08 Rents: $0.79 - $1.06 IRR: 10.3%
Slide 49: Redevelopment
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 TECHNOLOGY DEVELOPMENT REDEVELOPMENT PORTFOLIO QUALITY REDEVELOPMENT Mid-America Apartment Communities, Inc. Institutional Investor Day Raleigh, NC September 10, 2007
Slide 50: Objectives
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Objectives Our goal is to Capture superior investment returns Enhance property values Accelerate our pricing in strong submarkets We achieve these goals by Approving projects only after submarket
Slide 51: Redevelopment Strategy
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Housing Supply/Demand Submarket Opportunity Revenue Capital Plan Prioritize Investment Opportunities Identification Process - Macro Level Job growth Housing demand Single family price point to mul
Slide 52: Execution Strategy
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Execution Strategy 1. Process efficiencies Unit Production Report for daily monitoring/evaluating inventory JIT payment structure with Barnett Supply competing for market share with HD Supply Shar
Slide 53: Summary
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Summary Current Pipeline 3,200 units will be completed in Unit Interior Program by end of 2007 $5,200 per unit is average investment >$16.6 million invested >$110 per unit is average rent above no
Slide 54: Growth Projections
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Growth Projections Forecasted value add opportunities have increased to over 22,000 units since inception of program in 2005 due to Market improvements Broader ‘value add’ capital opportunities wi
Slide 55: FFO Impact
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 FFO Impact We expect to see this impact our revenue growth and have a potential impact of An incremental $.06 per share over the next 3 to 5 years A cumulative FFO per share of $.20 - $.25 over sa
Slide 56: Hermitage at Beechtree
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Hermitage at Beechtree Cary, NC Built in 1988 Purchased in 1997 194 units Current results 20% of units completed at $5,000 per unit 100% of all completed units leased $110 above non-redeveloped un
Slide 57: Township in Hampton Woods
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Township in Hampton Woods Before average rent = $822 Hampton, VA 296 units >45% completed $6,900 per unit >25% IRR After average rent = $1,023
Slide 58: Runaway Bay
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Runaway Bay Before average rent = $762 Charleston, SC 208 units 100% completed $7,600 per unit >10% IRR After average rent = $914
Slide 59: Park Estate
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Park Estate Before average rent = $852 Memphis, TN 82 units >60% completed $8,000 per unit >30% IRR After average rent = $1,123
Slide 60: Brentwood Downs
Mid-America Apartment Communities, Inc. - Institutional Investor Day - Raleigh, NC - September 10, 2007 Brentwood Downs Before average rent = $661 Nashville, TN 286 units >40% completed $5,300 per unit >13% IRR After average rent = $817
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