Mid-America Apartment Communities (MAA) 8-K Strong public company platform

Investor Update

February 2007

Focused, Experienced, Successful

•

IPO January 1994

–

Exclusively multifamily

–

Strong public company platform

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$3 billion total capitalization

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High quality portfolio

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40,293 units

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138 communities

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13 states

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Experienced management

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Disciplined investment

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Conservative strategy

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Aggressive operations

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Solid returns to shareholders

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3-year return, 25.5% annual

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Since IPO, 17.7% annual

Sunbelt region focus…high growth markets...more stable demand side performance

Three tier market strategy…diversified performance and investment profile…drives

superior risk adjusted performance through full market and economic cycles

Extensive network and deal flow…disciplined investment hurdle protocols…

realistic underwriting…solid record of disciplined capital deployment

High quality apartment real estate…desirable apartment housing catering to

largest rental market segment…more stable demand and performance

Strong and experienced operating platform…competitive regional advantages in

asset management and property management operations…focus on efficiency

Disciplined model for creating value with a proven record of stable performance

Disciplined Strategy for Creating Value

MAA’s investment region

is expected to capture

higher demand for

multifamily housing as

compared to other

regions of the U.S.

MAA’s three-tier market

strategy drives lower

volatility and higher risk

adjusted performance results

Focus on High Growth Region

Mid Tier

Markets

37.5%

Jacksonville, FL

Austin, TX

Nashville, TN

and Others

Large Tier

Markets

31.9%

Dallas, TX

Atlanta, GA

Tampa, FL

and Others

Small Tier

Markets

30.6%

Savannah, GA

Charleston, SC

Lakeland, FL

and Others

Three-Tier Market Strategy

•

Captures broad benefits of

high growth region…with
lower volatility

•

Sophisticated operating

platform provides competitive
advantages in many markets
throughout the region

•

Balance sheet and strong due

diligence team provides
ability to execute an attractive
“close” program…competitive
advantage in many markets

•

More recession resistant

performance…lower volatility

Competitive Edge – Deal Flow

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Long-term regional focus

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Extensive broker network

–

Owner relationships

•

Efficient due diligence

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In-depth market knowledge

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Highly efficient and thorough

capital assessment program

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Stronger balance sheet

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Fewer contingencies

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Can handle existing debt

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Developer attraction

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Multiple phase developments

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Off market opportunities

MRI

Web Portal

Lease

Revenue

Optimizer

Collections

Management

Resident

Screening

Utilities

Management

Unit Interior

Renovation

Lease

Expiration

Mgmt

On-line

Resident

Solutions

Rent and Fee

Management

Unit Turn

Management

Collection Agency

Integration; real-time

Delinquency reporting

Integrated credit scoring

and background screening;

real-time processing

Utility billing company

integration; vacant

utility real-time cut-off

Detailed tracking of

improvements by unit;

real time price monitoring

Automated guidance for

optimum monthly, weekly

and daily scheduling

On-line leasing, internet

response center, payment

processing, work orders

Yield management;

automated bill-up of fees

and charges

Automated tracking and

monitoring of move-out,

get ready, show and move-in

Training and

Procedures

24/7 training availability;

high degree of control;

on-line procedures

Competitive Edge - Operations

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Innovative Solutions for

Key Processes

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Marketing and leasing

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Payment processing

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Utility billing integration

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Vacant utility integration

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Pricing protocol

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Lease expiration mgmt

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Unit turn management

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Operating expense efficiency

•

Cutting Edge

Technologies

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Web based property mgmt

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Yield management platform

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Web based credit check

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Web based criminal check

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Web based leasing

–

Web based payment

process

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Struggling lease-up (70%

occupied)

•

MAA advantage

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Ability to carry asset till

stabilized

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Marketing expertise

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Extensive market knowledge

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Re-staffed property

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Up-graded on site systems

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Stabilized property in 9 months

Year Acquired:	2003	Gross Investment:	$40.9M
Units:	501	Current Market Value (6% Cap Rate):	$62.0M
Purchase Price:	$40.5M	Value Created:	$21.1M
Capex-to-Date:	$.4M	Leveraged Return (Cash on Cash IRR):	38%

Lighthouse Court, Jacksonville

Creating Value: Case Study 1

Year Acquired:	1995	Gross Investment:	$12.4M
Units:	400	Current Market Value (6.5% Cap Rate):	$31.4M
Purchase Price:	$9.3M	Value Created:	$19.0M
CapEx-to-Date:	$3.1M	Leveraged Return (Cash on Cash IRR):	33%

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Underperforming and undercapitalized

property in desirable sub-market

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Difficult resident profile

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MAA advantage

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Repositioning expertise

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Capital improvement expertise

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Repositioned resident profile

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Marketing expertise

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Repositioned property reputation

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Financing expertise (tax-free bonds)

St. Augustine, Jacksonville

Creating Value: Case Study 2

FFO/Share

Dividend/Share

A focus on high growth

region and a unique

three-tier portfolio

strategy

Disciplined investment

practices and capital

deployment

High quality of

earnings

Strong asset management

and property management

platforms

Combine to create more stable performance through down cycles,

strong base for performance through up cycles and

higher risk adjusted performance returns through full cycles

Strong and Dependable Results

Solid Internal Growth Prospects

•

Well positioned in high growth region

–

MAA now positioned in seven of the top ten

national markets for job growth and new
household formation over next 10 years

–

Austin, Phoenix, Orlando, Jacksonville,

Tampa, Dallas, Atlanta

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Muted new supply pressures should

continue for some time

–

Concrete, masonry, doors/windows,

finishes, mechanical, electrical…up an
average of 69.6% from 3/02 – 1/07

–

Minimal exposure to condo reversion

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Single-family pricing has remained stable

•

New yield management pricing platform

expected to drive “out-performance” revenue
growth results

•

Redevelopment initiative across the portfolio will

continue to drive “out performance” rental
increases

•

New web based technology interfaces and

support systems are generating new revenue
and cost efficiency opportunities

Growth Upside - Interior Upgrade

Brentwood Downs

Nashville, TN

49 Units Completed

14% rent increase

Runaway Bay

Charleston, SC

138 Units Completed

36% rent increase

Improving Growth Prospects

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Acquisition market remains competitive

•

However, broader market focus and expanded

product focus will widen field of opportunity

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FL market opportunities increasing

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New value-add development will begin to

make a growing impact in late ’07 – ’08

•

JV initiative will also expand growth

opportunities

Three new “value add” new development projects currently

underway. At stabilization new units are projected to deliver

± 7.5% NOI yields and contribute $1.3M FFO

Brier Creek Phase II

Raleigh, NC

200 Units

Construction underway

Initial occupancy 2Q07

Projected stabilization

2Q08

St. Augustine at the Lake II

Jacksonville, FL

124 Units

Construction start 2Q07

Initial occupancy 4Q07

Projected stabilization

3Q08

Copper Ridge

Dallas, TX

216 Units

Construction start 2Q07

Initial occupancy 1Q08

Projected stabilization

1Q09

New “Value Add” Development

Strong Joint Venture Platform

•

Experienced with JV programs

–

Blackstone ’98 – ’01

–

Crow Holdings ’01 – ’04

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Crow Holdings ’04 – ’06

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Average IRR’s captured for MAA

range 30% - 38%

•

Opportunity to further “monetize”

  and leverage value of deal flow,
asset management and property
management platforms

•

Value add redevelopment program

opportunity

Mid-America’s balance sheet has significantly improved over the last few years.

Coverage ratios and capacity are more in line with sector averages;

especially when considering lower risk investment and growth strategy.

Solid Balance Sheet Position

•

Leverage (debt + preferred as a %

of gross assets) has been
materially reduced over the last 2
years

•

Added $130MM of debt capacity in

2006 (total $219MM current
capacity)

•

Agency credit facilities provide cost

efficient and flexible debt financing

•

Leverage and coverage ratios now

make investment grade corporate
debt program a viable option

FFO/share

$3.40 - $3.60

AFFO/share

$2.77 - $2.97

Guidance for 2007

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Same store NOI 5% - 6%

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$28MM new development

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$6MM redevelopment

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$150MM core acquisitions

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$150MM JV acquisitions

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Long-term value/current year

“headwind”

–

Transition to net pricing ($.02 –

$.04)

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Series F Preferred refi ($.02)

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Lease up, new development ($.09)

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Asset sales ($.02)

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Recurring CapEx $.63/share

MAA’s projected AFFO growth

compares favorably to sector…

MAA’s AFFO payout ratio in line

with the sector…

MAA’s balance sheet capacity and

strength is in line with sector…

2007E AFFO Growth*

2006E AFFO Payout*

Debt/Total Entity Value*

Especially when considering development

funding obligations and risks…

CIP/Total Entity Value*

*Morgan Stanley, Weekly Statistical Supplement, January 26, 2007

Sector Comparisons

AFFO Multiples 2007E*

MAA priced at sector average AFFO Multiple is $73/share

*Morgan Stanley, Weekly Statistical Supplement, January 26, 2007   **Current implied cap rates are Morgan Stanley estimates…inverted the

sign for the current and long run premium (discount) so that a positive number represents more expensive (Weekly Stat Summary, January 26,
2007)

However, MAA still provides an attractive

price/FFO option within the sector

MS Weekly Stat Supp	Current	Prm. (Dsc.)	Long Run Prm./(Dsc.)
AIV	6.6%	-19.2%	-8.6%
ASN	4.7%	14.9%	3.5%
AVB	4.4%	20.7%	0.9%
BRE	4.9%	11.1%	11.7%
CPT	5.8%	-4.0%	-4.8%
EQR	5.1%	7.8%	0.1%
ESS	5.2%	7.3%	6.6%
HME	6.1%	-10.3%	-5.9%
MAA	6.9%	-24.3%	-11.2%
PPS	6.2%	-11.5%	-4.5%
UDR	5.9%	-6.0%	-1.9%
Avg	5.4%	0.6%	1.5%

And is currently providing a discount

to long-term pricing comparison

Implied Cap Rate**

Sector Comparisons

Investment Summary

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Focus on high growth region

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Proven investment disciplines

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High quality earnings

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Competitive edge in deal flow

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Redevelopment upside

•

Value add new development

•

Innovative asset management

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Aggressive property management

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Proven JV platform & opportunity

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Strengthened balance sheet

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Positioned for strong performance

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MAA is a proven performer

•

Current attractive pricing

opportunity

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

End of Presentation