Mid-america Apartment Communities, Inc. · NYSE:MAA
Mid-america Apartment Communities — Citi 2024 CEO Global Real Estate Conference
37 slides from Mid-america Apartment Communities's conference presentation, Mar 1, 2024
Slide 1: Citi 2024 CEO Global Real Estate Conference
Citi 2024 CEO Global Real Estate Conference March 3-6, 2024 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to our expectations for future periods. Forward-looking state
Slide 3: About MAA | Strong Performance Platform
About MAA | Strong Performance Platform 30 S&P 500 $20.7B 102K 2,400 20 YR YEARS PUBLIC MEMBER COMPANY TOTAL MARKET CAP APARTMENT UNITS ASSOCIATES AVG EXEC TENURE $1B 13K A3/A- 3.6x 10.7% 120 ’24F TOTAL DEVELOPMENT, LU PIPELINE UNIT OPPORTUNITY REDEVELOPMENT PROGRAM INVESTMENT GRADE RATED NET DEBT T
Slide 4: Consistently Strong Performance for Shareholders
Consistently Strong Performance for Shareholders Core FFO per Share Expected 5-Year Compounded Annual Growth Rate of 6.7% Compounding Core FFO per Share growth through market cycles; high quality earnings stream Strong dividend track record; steady growth and well-covered Superior long-term sharehol
Slide 5: Differentiated Portfolio Strategy
Differentiated Portfolio Strategy Unique market focus…captures benefits of high growth and demand Submarket and property type/class diversification helps to lessen periodic supply-side pressures… drives strong, long-term and full-cycle performance Diversified renter price point… appeals to largest s
Slide 6: Unique Diversification and Balance
Unique Diversification and Balance 1 Based on gross asset value at 12/31/2023 for total multifamily portfolio 2 Source: Yardi Matrix Asset Class Rating 3 Garden = 3 stories or less; Mid-rise = 4 to 9 stories; High rise = 10+ stories Multifamily Market Multifamily Market and Regional Office Multifami
Slide 7: A Proven Portfolio Strategy for Long-Term Growth and Stability
A Proven Portfolio Strategy for Long-Term Growth and Stability Our diverse portfolio of high-quality properties appeals to the largest segment of the rental market Our portfolio strategy drives long-term growth and greater stability through the full market cycle + Repositioned | MAA Worthington | Da
Slide 8: Steady Demand Drivers for MAA Markets
Steady Demand Drivers for MAA Markets Move-ins from Non-MAA States Trailing 12 Months at 12/31/2023 CA | NY | IL | NJ | MA 43% Of Move-ins from Non-MAA States Came from Peer Coastal/Gateway States MAA markets continue to capture positive in-migration trends that continue to run higher than pre-pande
Slide 9: Robust Job Creation in MAA Markets
Robust Job Creation in MAA Markets Georgia ATLANTA Hyundai-SK EV Battery Plant 3,500 Jobs | $4.5B Investment Expected Production 2025 SAVANNAH Hyundai Group Meta Plant EV & Battery Plant 8,100 Jobs | $5.5B Investment Expected Production 2025 Texas AUSTIN Samsung Electronics Co Chip Plant 2,000 Jobs
Slide 10: Same Store Resident Profile in Top Markets
SAME STORE RESIDENT PROFILE IN TOP MARKETS QTD AT 12/31/2023 AVG NEW RESIDENT INCOME AVG NEW LEASE RENT/ INCOME RESIDENT MED AGE RESIDENT % SINGLE TOP 5 EMPLOYMENT SECTORS 1 2 3 4 5 Atlanta, GA $91,818 22% 33 82% Dallas, TX $90,172 21% 32 83% Tampa, FL $100,851 23% 36 78% Orlando, FL $90,814 24% 38
Slide 11: Submarket Supply Look
Submarket Supply Look1 MAA rents average approximately $300/unit less than new supply in our submarkets; driving a better value proposition for the prospective renter and appealing to a larger segment of the renter market MAA submarket diversification within markets helps mitigate effect of urban-fo
Slide 12: Strong Performance Through the Full Economic Cycle
Strong Performance Through the Full Economic Cycle MAA continues to deliver on its mission to drive long-term outperformance through all phases of the economic cycle with less volatility Our outperformance compared to Multifamily Peers2 during the latest down cycle and recovery period positioned us
Slide 13: 2024 Same Store Pricing Trends
2024 Same Store Pricing Trends Lease Over Lease Average Pricing Growth same store Q4 2023 JAN 2024 FEB 2024 EFFECTIVE LEASES NEW LEASE -7.0% -6.2% -5.5% RENEWAL 4.8% 5.1% 5.2% BLENDED -1.6% -0.3% -0.2% Occupancy SAME STORE Q4 2023 JAN 2024 FEB 2024 AVG DAILY PHYSICAL OCCUPANCY 95.5% 95.4% 95.2% With
Slide 14: Full Year 2024 Same Store Outlook
Property Revenue Growth [0.15% … 0.90% … 1.65%] Effective Rent Growth1 [0.10% … 0.85% … 1.60%] Average Physical Occupancy Steady occupancy expected for full year [95.4% … 95.7% … 96.0%] Full Year 2024 Same Store Outlook REVENUE Property Expense Growth [4.10% … 4.85% … 5.60%] Real Estate Tax Growth [
Slide 15: 2024 Core FFO and Investment Outlook
2024 Core FFO and Investment Outlook Full Year 20242 [$8.68 … $8.88 … $9.08] Q1 20243 [$2.12 … $2.20 … $2.28] Total Overhead4 Asset Management / Tech / Regional Support + G&A [$130.5M … $132.5M … $134.5M] EXPECTED CORE FFO/SHARE1 CAPITAL SPEND INITIATIVES4 Kitchen & Bath Redevelopment 5K to 6K units
Slide 16: Development Program Supports Continued Value Creation
Development Program Supports Continued Value Creation PHOENIX, AZ Novel Val Vista ATLANTA, GA Novel West Midtown SALT LAKE CITY, UT Novel Daybreak DENVER, CO MAA Milepost 35 I RALEIGH, NC MAA Nixie Combination of In-House and “Pre-Purchased”* Development Expands Revenue Growth Potential TAMPA, FL MA
Slide 17: Development Pipeline and Lease-ups Poised To Deliver Value
Development Pipeline and Lease-ups Poised To Deliver Value ACTIVE DEVELOPMENTS AT 12/31/2023 PROPERTY MSA TOTAL UNITS EXPECTED TOTAL COST (IN MILLIONS) EXPECTED INITIAL OCCUPANCY EXPECTED STABILIZATION1 Novel Daybreak2,3 Salt Lake City, UT 400 $ 99.4 2Q 2023 1Q 2025 Novel Val Vista2,3 Phoenix, AZ 31
Slide 18: 2024 Development Expectations
2024 Development Expectations msa Units STATUS Charlotte, NC 302 Owned Denver, CO 259 Owned Phoenix, AZ 345 Controlled Orlando, FL 308 Owned Denver, CO 181 Owned Atlanta, GA 250 Controlled Raleigh, NC 225 Controlled Denver, CO 648 Owned Denver, CO 520 Owned Atlanta, GA 294 Owned Orlando, FL 390 Owne
Slide 19: Unit Interior Upgrades Continues to Drive Higher Value
Unit Interior Upgrades Continues to Drive Higher Value Property Redevelopment Program Opportunity Approximately 13K units identified for redevelopment across Same Store portfolio with potential to create additional rent growth value SCOPE Redevelopments are performed on turn at select communities (p
Slide 20: Future Redevelopment Opportunity
Future Redevelopment Opportunity Potential for Continued Value Creation Remains MAA REDEVELOPMENT PIPELINE Currently Identified Redevelopment Opportunity Future Value Opportunity Revenue At 5.8% Cap Rate1 Net Value Creation $17.8M $307M $226M Legacy MAA Legacy CLP Legacy PPS Total MAA Units 4,400 5,
Slide 21: Repositioning Select Properties to Drive Additional Value
Repositioning Select Properties to Drive Additional Value MAA Harbour Island | Tampa, FL Updated and Expanded Fitness Centers Co-working Areas to Support Remote Work Desirable Amenities MAA Gardens |Atlanta, GA MAA Gateway (Pet Spa) | Charlotte, NC Exterior Amenities for Today’s Lifestyles MAA Worth
Slide 22: Technology Advances Enhance Operations and Add Value
Technology Advances Enhance Operations and Add Value Mobile control of locks, lights and thermostat as well as leak detection provides additional resident value Additional synergy opportunities in repairs and maintenance, capex, and vacant and house electric charges Continued upgrades and expansion
Slide 23: Platform Value Initiatives; Technology Enabled
Platform Value Initiatives; Technology Enabled Installations complete by end of 2024 $25-$30 million of NOI (140bps margin) expected in the run rate by the end of 2024 Nearly 1,300 leaks detected through system in 2023; estimated expense/capital savings of $1 million Smart Home Technology $18 millio
Slide 24: MAA's Technology Enhancements Expand, Upgrade Leasing Toolbox
MAA’s Technology Enhancements Expand, Upgrade Leasing Toolbox Objective to create a multi-functional and fully integrated self-service/self-touring leasing platform that results in a seamless, easy to use process for the entire resident journey Technology rollout staggered with careful piloting of c
Slide 25: Strong, Investment-Grade Balance Sheet
Strong, Investment-Grade Balance Sheet Note: Total Capitalization is defined here as common shares and units outstanding multiplied by the closing stock price on 12/31/2023, plus total debt outstanding at 12/31/2023, plus Preferred stock ($50 redeemable stock price multiplied by total shares outstan
Slide 26: Balance Sheet Strength Positions Us Well for Future Growth
Balance Sheet Strength Positions Us Well for Future Growth Opportunities TOTAL DEBT MATURING 19.7% 8.8% 6.6% 13.2% 8.7% 12.3% 6.6% 9.8% 0.0% 0.0% 14.3% FIXED RATE DEBT INTEREST RATE 4.0% 4.2% 1.2% 3.7% 4.2% 3.7% 3.1% 1.8% 0.0% 0.0% 3.8% Credit metrics At 12/31/2023 MAA SECTOR AVG2,3 Total debt / adj
Slide 27: A Brighter View for Today and Tomorrow: Our Sustainability Commitment
A Brighter View for Today and Tomorrow: Our Sustainability Commitment 2023 GRESB Public Disclosure Score A 78 100 28 30 50 70 2023 GRESB SCORE THREE GREEN STARS MANAGEMENT SCORE PERFORMANCE SCORE ENERGY USE INTENSITY 35% GREEN HOUSE GAS INTENSITY 45% WATER USE INTENSITY 10% 2018 – 2028 REDUCTION GOA
Slide 28: Supporting Associate Well-Being
SUPPORTING ASSOCIATE WELL-BEING A Brighter View for Today and Tomorrow: Our Sustainability Commitment Responsive service program and routine surveys Online resident portal for ease of transactions, service request submission and communication Property amenities to promote healthy lifestyles Ongoing
Slide 29: Appendix
Appendix At DECEMBER 31, 2023 Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures and Other Key Terms
Slide 30: Reconciliation of FFO, Core FFO, Core AFFO and FAD
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF FFO, CORE FFO, CORE AFFO AND FAD TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS (1) Included in Other non-operating (income) expense in the Consolidated Statements of Operations. (2) For the three and twelve months ended December 3
Slide 31: Reconciliation of Net Operating Income to Net Income
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET OPERATING INCOME TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS Dollars in thousands Three Months Ended Year Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net income available
Slide 32: Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre TO NET INCOME Dollars in thousands Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net income $ 164,868 $ 198,936 $ 567,831 $ 654,776 Depreciat
Slide 33: Reconciliation of Net Debt, Gross Assets and Gross Real Estate Assets
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET (1) Included in Restricted cash in the Consolidated Balan
Slide 34: Reconciliation of EPS to Core FFO and Core AFFO for 2024 Guidance
Reconciliation of Non-GAAP Financial Measures RECONCILIATION OF EARNINGS PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER DILUTED SHARE FOR 2024 GUIDANCE Non-Core FFO items may include adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain o
Slide 35: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Adjusted EBITDAre For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part
Slide 36: Definitions of Non-GAAP Financial Measures: FAD
Definitions of Non-GAAP Financial Measures Funds Available for Distribution (FAD) FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed
Slide 37: Definitions of Non-GAAP Financial Measures and Other Key Definitions
Definitions of Non-GAAP Financial Measures and Other Key Definitions Same Store NOI Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the p
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