Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Investor Presentation (August 2015)
24 slides from Mid-america Apartment Communities's investor presentation, Aug 18, 2015
Slide 1: Capital Markets Update August 2015
CAPITAL MARKETS UPDATE AUGUST 2015 WWW.MAAC.COM
Slide 2: Disciplined Portfolio Strategy Across High Growth Region
2 DISCIPLINED PORTFOLIO STRATEGY ACROSS HIGH GROWTH REGION 3 COMPETITIVE ADVANTAGES DRIVES VALUE 4 TRANSFORMED PORTFOLIO DRIVES VALUE A PROVEN SUCCESSFUL FULL-CYCLE STRATEGY • Established record of high return on invested capital • Compounded AFFO Growth of 8.7% over the past 5 years • 86 consecutiv
Slide 3: Outperformance Over the Full Cycle with Lower Volatility
OUTPERFORMANCE OVER THE FULL CYCLE WITH LOWER VOLATILITY 3 Source: Green Street Advisors; Company Data; SNL -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Same Store NOI Growth MAA Sector Average (excluding MAA) MAA Average Growth: 2.4% S
Slide 4: Proven Platform Has Become Even Stronger
$2.35 $2.38 $2.42 $2.46 $2.46 $2.46 $2.51 $2.64 $2.78 $2.92 $3.08 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MAA Dividends 2005-2015 PROVEN PLATFORM HAS BECOME EVEN STRONGER 4 * Core AFFO 1 Reflects additional capital spending to reposition the Legacy CLP portfolio. 2 Guidance for 2015 c
Slide 5: Balanced Portfolio Supports Full Cycle Performance
BALANCED PORTFOLIO SUPPORTS FULL CYCLE PERFORMANCE 5 Top Large Markets % of Q2 2015 NOI 1 Atlanta, GA 8.4% 2 Austin, TX 7.8% 3 Charlotte, NC 6.9% 4 Raleigh/Durham, NC 6.9% 5 Fort Worth,TX 5.9% 6 Dallas, TX 5.8% 7 Nashville, TN 5.4% 8 Tampa,FL 4.5% 9 Orlando,FL 4.3% 10 Houston, TX 3.4% Top Secondary
Slide 6: Strong Fundamentals for Our Portfolio
STRONG FUNDAMENTALS FOR OUR PORTFOLIO 6 Source: Moody’s Economy.com EMPLOYMENT Employment Growth Projections • Job growth, the primary driver of new household formation, continues to be most favorable in our region of the country • Our markets support a wide range of industries and employers (medica
Slide 7: Strong Fundamentals for Our Portfolio: Supply/Demand
STRONG FUNDAMENTALS FOR OUR PORTFOLIO 7 Source: Moody’s Economy.com Projected Jobs : Projected Completions SUPPLY/DEMAND • Despite an increase in multifamily permitting in our markets, demand is expected to absorb the new supply • Over the last up cycle (2004-2007), the ratio of new jobs to multifam
Slide 8: Strategic Competitive Capabilities
„X Scale and efficiency „X Recruit/retain top talent „X Margin outperformance STRATEGIC COMPETITIVE CAPABILITIES 8 INVESTING OPPORTUNISTICALLY SUPERIOR CAPITAL MANAGEMENT OPERATING AT A SUPERIOR LEVEL ASSET MANAGEMENT SUPERIORITY IN LOCAL MARKETS EXITING INVESTMENTS OPPORTUNISTICALLY „X Off market t
Slide 9: Focused on Exceptional Service Generating Competitive Advantages
BEST ONLINE REPUTATION A m o n g P u b l i c M u l t i f a m i l y R E I T s a n d N M H C ’ s T o p 5 0 A p a r t m e n t M a n a g e r s 1 FOCUSED ON EXCEPTIONAL SERVICE GENERATING COMPETITIVE ADVANTAGES ACROSS REGION Implemented training and customer service process on CLP portfolio following mer
Slide 10: Strong Operating Platform Drives Competitive Advantages
STRONG OPERATING PLATFORM DRIVES COMPETITIVE ADVANTAGES AND SUPERIOR OPERATING MARGINS Regional Market Leading Expertise • 21 years of institutional property management experience in markets we serve • Onsite teams have seen multiple cycles of the apartment markets in the same cities • We understand
Slide 11: Solid Investment Grade Balance Sheet
SOLID INVESTMENT GRADE BALANCE SHEET 11 Credit metrics MAA BBB Peers BBB+ Peers Total unencumbered assets to book value 70.3% 81.4% 73.9% Net debt / recurring EBITDA 6.0x 5.6x 6.1x Net debt / gross assets1 41.4% 34.9% 39.1% Secured debt / gross assets1 17.3% 14.3% 17.7% Fixed charge coverage ratio2
Slide 12: Solid Investment Grade Balance Sheet: Debt Summary
SOLID INVESTMENT GRADE BALANCE SHEET 12 Debt Summary ($ in millions) 06/30/15 Secured Debt Fixed or Hedged Rate $1,308.0 Variable Rate 105.8 Total Secured Debt 1,413.8 Unsecured Debt Unsecured Bonds 1,319.4 Unsecured Term Loans 550.0 Unsecured Credit Facilities 159.0 Total Unsecured Debt 2,028.4 Tot
Slide 13: Out-Performance in Noninstitutional Markets
OUT-PERFORMANCE IN “NONINSTITUTIONAL” MARKETS 13 This market exposure contributes to a balanced portfolio and full cycle performance profile Our size, scale, technology, and operating platform relative to other operators in our markets drives revenue outperformance MAA’s market footprint is unique i
Slide 14: Significant Capital Recycling of Portfolio Since 2010
61.7% 54.0% Sold Acquired 770 bps SIGNIFICANT CAPITAL RECYCLING OF PORTFOLIO SINCE 2010 14 Hi g h e r Ma r g i n s a n d Imp r o v e d Gr owt h P r o f i l e Transaction Volume1 (in millions) Age1 (in years) Effective Rent per Unit1, 2 Number of Units1 NOI Margin1, 2 After Capex NOI Margin1, 2 1 Inc
Slide 15: MAA Today – A Higher Quality Portfolio and Stronger Core Earnings Growth
$716 $750 $799 $863 $910 $969 $4,463 $4,684 $5,164 $5,766 $6,141 $6,792 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000 $700 $750 $800 $850 $900 $950 $1,000 2010* 2011* 2012* 2013* 2014^ 2015F^ Same Store Effective Rent/Unit After Capex NOI/Unit MAA TODAY – A HIGHER QUALITY PORTFOLIO AND STRONGER C
Slide 16: MAA Today
MAA TODAY 16 Residences at Burlington Creek; Kansas City, MO Year Completed: 2014 Retreat at Vintage Park; Houston, TX Year Completed: 2014 Bulverde Oaks; San Antonio, TX Year Completed: 2014 Cityscape at Market Center; Dallas, TX Year Completed: 2013 Stonefield Commons; Charlottesville, VA Year Com
Slide 17: MAA Today
MAA TODAY 17 CG at Randal Lakes; Orlando, FL Year Completed: 2014 CR at South End; Charlotte, NC Year Completed: 2014 Highlands of West Village, Atlanta, GA Year Completed: 2006/2012 Rivers Walk; Charleston, SC Year Completed: 2013 CR at Frisco Bridges; Dallas, TX Year Completed: 2013 1225 South Chu
Slide 18: MAA Today
MAA TODAY 18 Market Station; Kansas City, MO Year Completed: 2010 2013 2013 2013 2013 2013 2012 CG at Double Creek; Austin, TX Year Completed: 2013 CG at Windermere; Orlando, FL Year Completed: 2009 Station Square at Cosner’s Corner; Fredericksburg, VA Year Completed: 2012 CG at Ayrsley, II; Charlot
Slide 19: MAA Today
MAA TODAY 19 Haven at Blanco; San Antonio, TX Year Completed: 2010 Venue at Cool Springs; Nashville, TN Year Completed: 2012 Allure at Brookwood; Atlanta, GA Year Completed: 2008 Allure in Buckhead Village; Atlanta, GA Year Completed: 2002; Redeveloped: 2014 Alamo Ranch; San Antonio, TX Year Complet
Slide 20: Opportunistic Development Strategy; Strong Value Creation
OPPORTUNISTIC DEVELOPMENT STRATEGY; STRONG VALUE CREATION Expected Cost Stabilized Active Developments MSA Total Units NOI Yield Total (in millions) Per Unit (in thousands) 220 Riverside Jacksonville 294 $ 42.7 $ 145 7.1%2 Station Square at Cosner's Corner, II Fredericksburg 120 $ 20.1 $ 168 6.5%2 R
Slide 21: Meaningful Redevelopment Opportunity; Strong Value Creation
MEANINGFUL REDEVELOPMENT OPPORTUNITY; STRONG VALUE CREATION 21 Redevelopment Opportunity • Redevelopments performed on turn at select communities with minimized down time providing efficiency in evaluating effectiveness of program for real-time improvements to product mix and scope • 30%-50% of the
Slide 22: Relative Performance Compared to Relative Pricing Provides Investment Opportunity
RELATIVE PERFORMANCE COMPARED TO RELATIVE PRICING PROVIDES INVESTMENT OPPORTUNITY 22 Source: Green Street Advisors; Company Data; SNL -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Same Store NOI Growth MAA Sector Average (excluding MAA)
Slide 23: Value Opportunity
4.5% 6.0% 2.1% 2.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% Sector Average MAA Market Implied Cap Rate Long-Term Same Store Growth 8.4% total return VALUE OPPORTUNITY 23 1 Source: Green Street Advisors Total Implied Unleveraged Return MAA is currently priced at a multiple and implied cap r
Slide 24: Forward Looking Statements
FORWARD LOOKING STATEMENTS 24 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 a
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