EX-99.1 2 exhibit-99_1.htm EXHIBIT 99.1 exhibit-99_1.htm
Investor Update November 2008
 
 
 
2
Statements contained in this presentation, which are not historical facts, are forward-looking statements, as the term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which can cause actual results to
differ materially from those currently anticipated, due to a number of factors, which include, but are not limited to, unfavorable changes in the
apartment market, changing economic conditions, the impact of competition, acquisitions which may not achieve anticipated results and other risk
factors discussed in documents filed with the Securities and Exchange Commission from time to time including the Company’s Annual Report on
Form 10-K and the Company’s Quarterly Report on Form 10-Q. The statements in this presentation are made based upon information currently
known to management and the company assumes no obligation to update or revise any of its forward-looking statements.
Safe Harbor Disclosure
 
 
 
3
National MSA Average
1.1%
MAA Markets MSA Average
1.5%
Austin, TX
2.9%
Raleigh, NC
2.4%
Dallas-Ft. Worth, TX
2.4%
Houston, TX
2.4%
Atlanta, GA
1.9%
Orlando, FL
1.5%
Phoenix, AZ
1.4%
Employment Growth Projections 2009 - 2013
Annual Compounded Growth Rates
MAA Markets
Well Positioned in High Growth Region
Ш 40% of gross assets invested in
 the seven high growth markets
 listed
Ш MAA is well diversified across
 this high growth region
Ш Unique portfolio profile provides
 greater stability
 § High Growth (52%)
 § Income & Growth (33%)
 § Stable Income (15%)
 
 
 
4
Out-Performing Sector
MAA compounded
annual FFO growth
has been 3.5% versus
the sector average
of 0.9%
A result of
up-grading asset quality,
repositioning market profile,
strong operating platform,
and strong balance sheet,
MAA is better positioned
to compete in robust
market cycles, while
also positioned to
weather down market cycles
 
 
 
 
5
2010 - 2012 are projected to show strong performance
in occupancy, rental rates and NOI
Green Street Advisors, Apartment REITs - ’08 & ’09 Market Outlook, 11/30/07
Positive Market Trends
• Rental share of housing market is likely to continue to recover.
 – MAA had 22% reduction in move-outs attributable to home buying in Q3.
• New construction is less than half of 1999 peak. Projected to decline further
 2009 - 2011.
• Demographic change underway supports expectations for increase in
 demand.
 
 
 
6
Well Positioned for Moderating 2009
• Resident turnover continues to decline
 and shows positive year-over-year
 trends
• Unit interior initiative has made solid
 progress with expected 3,800 units
 completed in 2008; more “renovate
 light” executions in 2009
• Lease-up and new development
 projects generated drag on 2008 FFO
 of $0.16/share; increasingly productive
 in 2009
• Other new initiatives in 2009 expected
 to drive incremental $0.05+
 FFO/share
 – Bulk Cable Program roll-out
 – Utility Billing Program changes (fees
 and billing platform)
 – Fully automated web-based leasing
 
 
 
7
External Growth Opportunities
• Improving opportunities for
 attractive acquisitions
 – A number of distressed markets
 – Distressed lease-ups
 – Failed condo/condo conversions
 – Pending refinancing requirement
• MAA has balance sheet
 capacity
 – Credit facilities in place at pre-
 crisis pricing
 – Raised $104 MM in new equity
 in 2008
• Fund management
 – New value-add fund for 2009
 
 
 
8
Conservative & Disciplined Strategy
• Conservative underwriting practices;
 accountability for assumptions made
• Disciplined investment model
• Steady execution on portfolio
 upgrade and repositioning
• A focus on growing high quality and
 recurring FFO and NPV/share
• Limited new development
• A strong focus on operations
• A well positioned balance sheet
 
 
 
9
 
MAA
Median
Fixed charge coverage
 2.50
 2.13
AFFO payout ratio
82.6%
94.4%
Debt/gross assets
51.2%
55.0%
Source: KeyBanc 10-24-08, and MAA
 
Capital Structure at 9-30-08
45%
Debt
5% Preferred
 50%
Common
Source: KeyBanc
Strong Balance Sheet
• Superior Ratios
 – Fixed Charge
 – Payout Ratio
 – Leverage
• Low development funding
 obligation and low
 leverage
 
 
 
10
Debt maturities are negligible until 2011;
fixed rate/swap maturities are well-laddered.
Strong Balance Sheet
• $174 MM of capacity in cash,
 Agency credit facilities and
 bank lines
• Debt maturities
 – 2008 0
 – 2009 $39 MM
 – 2010 $50 MM (LOC)
 – 2011 $180 MM
• Fixed rate maturities
 – 2009 $90 MM
 – 2010 $148 MM
 – 2011 $158 MM
 
 
 
11
 
NAV Growth
FFO Multiple
 Growth
AVB
201%
75%
AEC
138%
74%
ESS
118%
77%
MAA
114%
54%
BRE
113%
56%
EQR
90%
56%
CPT
87%
33%
UDR
82%
85%
HME
51%
50%
AIV
29%
34%
PPS
16%
85%
CLP
-3%
33%
Source: 2002 Data SSB (Jon Litt), 2008; First Call June 2008
Value Opportunity
• MAA is in the top 1/3 of apartment REIT performance in growth of NAV per
 share between 2002 - 2008… with expectations of continued competitive
 comparative performance
• MAA’s current share price multiple currently offers a discount to the sector’s
 (median) multiple pricing
 
 
 
12
 
FFO CAGR
(1999 - 2008F)
Current Multiple
(11/07/08 Closing Price)
ESS
7.2%
13.8
AVB
6.1%
12.7
MAA
3.5%
8.8
HME
3.4%
11.1
BRE
2.0%
11.9
UDR
1.6%
11.2
CPT
1.3%
9.2
EQR
1.3%
13.1
AIV
-1.4%
4.4
AEC
-1.6%
7.3
CLP
-4.2%
3.6
PPS
-7.9%
9.0
Average
0.9%
9.7
Source: SNL, Green Street Advisors
Value Opportunity
• MAA has the 3rd
 highest FFO
 compounded
 annual growth
 since 1999
• MAA’s current
 multiple is below
 the peer average
 and 9th overall out
 of 12