EXHIBIT 99.1
Mid-America Apartment Communities
Investor Update
NAREIT Annual Convention November, 2004
Safe Harbor Statement
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.
MAA Profile
>> Southeast Regional Focus
Strong, steady apartment demand trends; strong
job growth and migration; sun-belt region
>> Effective Market Tier Strategy
Creates lower volatility through full market;
stable dividend and value protection
>> Middle Market Product Focus
Largest price point market segment; lower
volatility through full market cycle
>> Strong Property Operating Focus
Hands-on approach to property management;
heavy focus on operations and on-site execution
Regionally Focused Strategy
Diversified across strong and stable growth region of the count...high and
steady demand for apartment housing
[Map depicts the location of the Company's locations in the Southeast and Texas]
Population Growth Projections
2005 - 2010:
US Total 4.1%
MAA Region 4.7%
2005 - 2015:
US Total 8.4%
MAA Region 9.3%
Over the next three decades, net
population change will be most
evident in three states - CA, TX, FL.
Source: Dept. of Commerce, Current Population Reports
Regional Unemployment Rates
9/03 9/04
Northeast 5.8 5.1
South 5.8 4.9
Midwest 6.0 5.5
West 6.5 5.6
Apartment REIT Sector Position
An efficient operating platform in place; meaningful opportunity for higher
relative external growth performance
Total Units Total Enterprise Value
Scale of Operation
Enterprise
Total Units Value
Aimco 233,362 Equity $ 17,277
Equity 203,590 Archstone $ 11,940
United Dominion 77,259 AIMCO $ 11,225
Archstone 63,839 Avalon Bay $ 7,482
Camden 51,344 United Dominion $ 5,824
Home Properties 42,224 Home Properties $ 3,810
Avalon Bay 39,019 Camden $ 3,629
Mid-America 36,712 BRE Properties $ 3,641
Post Properties 27,683 Essex Property $ 3,476
AMLI 27,014 Post Properties $ 2,629
Essex Property 26,991 Gables $ 2,439
BRE Properties 23,981 Mid-America $ 2,108
Cornerstone 22,910 Summit Properties $ 1,911
Gables 22,704 AMLI $ 1,722
Per 11/5/04 Stifel, Nicolaus Weekly Sector Scorecard Report
and Bear Stearns July 2004 Apartment REIT Performance Report.
Strategy Overview
Early 2002 defined a plan to improve share price and 'weather the storm' of
weakening market fundamentals
>> Commit to the current dividend
* Grow cash flow; avoid transactions that would dilute coverage
>> Protect shareholder and real estate value
* Resident profile, CapEx spending, stay focused on operating
fundamentals
>> Establish a more balanced portfolio earnings profile
* Grow capital base in larger tier markets; position for full-cycle
performance
>> Strengthen balance sheet and operating platform to support growth
* Build balance sheet flexibility, high focus on operating productivity
Steady Improvement
Steady progress in growing FFO while maintaining a constant dividend; expect
continued FFO improvement next year as market conditions strengthen and new
growth continues.
[Line chart depicts the following]
Dividend and FFO
2001 2002 2003 2004F 2005F
FFO/share* $ 2.74 $ 2.69 $ 2.87 $ 3.00 $ 3.06
Dividend $ 2.34 $ 2.34 $ 2.34 $ 2.34 $ 2.34
* Before write-off of preferred share issuance cost ("non-cash"); Forecast per
First Call.
Consistent Performer
16.6% annualized return since IPO; MAA shareholder returns in the top-tier of
apartment sector performance for all measurement periods
[Line chart depicts the following]
Total Return since February 1994:
MAA vs NAREIT Index
YTD
IPO 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 11/9/04
MAA 100 142 143 180 192 166 182 201 259 264 395 441
Nareit 100 100 114 156 188 155 147 188 212 222 304 367
Total Return - Three Years
ESS 101.9%
MAA 101.4%
UDR 89.1%
AVB 76.0%
ASN 75.2%
BRE 73.4%
GBP 69.5%
TCT 69.3%
AML 67.4%
HME 65.6%
SMT 64.3%
CPT 53.9%
AEC 52.1%
EQR 50.2%
PPS 28.2%
TCR 24.2%
AIV 10.2%
Total Return - Five Years
ESS 212.0%
UDR 189.2%
MAA 176.8%
AVB 171.8%
BRE 147.3%
TCT 140.3%
ASN 135.1%
CPT 132.6%
SMT 128.3%
HME 125.9%
GBP 120.8%
AML 117.9%
EQR 111.9%
AEC 109.6%
TCR 57.6%
AIV 36.8%
PPS 27.6%
Source: Stifel, Nicolaus Weekly Sector Scorecard - Residential 11/5/04.
Steady Improvement
Expect continued steady progress in 2005 and beyond
>> FFO Forecasts
* 2004: $2.98 to $3.01
* 2005: $3.00 to $3.10
>> Impact from straight-line concession change
* 2004: + 4 cents
* 2005: - 3 cents
>> Assume in 2005
* 2% to 2.5% same store NOI growth
* $150 MM of acquisitions
* $20 MM of dispositions
* 5.5% blended average interest rate
Why Buy MAA
Significant FFO upside to capture from existing portfolio as market conditions
improve
>> Successful implementation in 2004 of new web-based property and revenue
management system; strong productivity and pricing platform
>> New initiative to be launched in 2005 focused on more extensive unit
interior renovation opportunities; initially focused on 3,500 units
>> Same store pricing power of portfolio has been protected (ARU performance:
2002 -.2%, 2003 .1%, 2004 YTD .3%)
>> Leasing and credit standards have been aggressively managed and protected
>> During normalized market conditions, same store portfolio generated
$0.20/share of higher NOI (or $4MM) than in 2004
>> All three market tier segments (large, middle and small city markets) have
up-side to capture
Why Buy MAA
A record of disciplined growth; extensive network in place and local knowledge
of markets ensures steady deal flow
>> $330 million (4,457 high quality units) acquired in the last two years at
an average 6.6% cap rate
* Average property age 5 years
* Average $75,000 per unit; below replacement value
* All in major markets: Atlanta, Dallas, Houston, South Florida,
Jacksonville, Austin, Nashville
>> Numerous acquisition opportunities currently under review
Why Buy MAA
Flexibility, coverage ratios and cost of debt have all materially improved over
the last three years
>> Balance sheet materially strengthened
>> Equity markets accessed tactically to fund acquisitions on accretive basis
through direct placements
>> Improving dividend coverage has increased flexibility
>> Fixed charge coverage has improved to 1.86 from 1.67 over last two years
>> Agency credit facilities offer optimum debt financing (price, flexibility)
>> Debt program well laddered; 10% annually
Why Buy MAA
Experienced and independent Board of Directors - expertise in apartment real
estate, capital markets and corporate governance.
>> Independent Directors
* Robert Fogelman
President, Fogelman Investments. 30 years of multifamily development
and property management
* Ralph Horn
Former Chairman/CEO First Tennessee. Director - Gaylord Entertainment,
Harrah's Entertainment
* Mike Starnes
CEO and President MS Carriers, Inc. Director - Swift Transportation
Co., Union Planters Corp
* John Grinalds
President, The Citadel University. Retired, Major General U.S. Marine
Corps
* Alan Graf
Executive Vice President and CFO, FedEx Corporation, Director - Nike
Inc., Kimball International
>> Non-Management Directors
* George Cates
Founder, former Chairman/CEO of MAA. 30 years multifamily experience.
Director - First Tennessee
* John Flournoy
Chairman and CEO, Flournoy Development Company (apartments), Director
- Synovus Financial
>> Management Directors
* Eric Bolton
Chairman and CEO, 10 years with MAA, 20 years real estate experience
* Simon Wadsworth
Executive Vice President and CFO, 10 years with MAA
Insiders own 10.1% of MAA
Why Buy MAA
MAA aims to deliver the highest risk-adjusted return in the sector
* Business strategy is oriented towards protecting dividend, growing AFFO,
not depending on major capital transactions
* Avoiding inherently risky development business (operating, forecasting,
business leverage, accounting risks)
* Diversified portfolio across multiple market types - lower volatility
through full market and interest rate cycles
* Focus on stable growth region of the country - better able to battle
periodic supply pressures through careful investing & aggressive operations
* Focus on apartment product serving middle market renter - largest rental
market segment, lower volatility
* Very disciplined acquirer; significant focus on replacement value and
ability to effectively compete against periodic new supply pressures
* Focused "operator" - strong company culture centered on property operations
Why Buy MAA
Current market pricing offers a discount to underlying real estate value
>> Market pricing is approximately $59,500 per unit, or 6.75% cap rate
>> One of the newer portfolios in the sector at an average age of 13 years
>> 4,457 units at an average price (discount to replacement) of $75,000 added
in last two years
>> Material shift of portfolio to lower cap rate markets over the last three
years
>> Recent transactions (SMT, TCR) imply values of 5.5% to 5.75% cap rates at
$65,000 per unit
>> Equivalent pricing of MAA drives price range of $48 to $55 per share
Why Buy MAA
MAA is under-priced relative to sector multiple average
Stock Price
As Multiple FFO AFFO
MAA 13.3 16.5
All Apts. 16.5 19.4
MAA priced at sector multiple averages: $46 - $50
MAA is better positioned for dividend growth than the sector average.
Dividend
Payout Ratio FFO AFFO
MAA 78% 97%
All Apts. 86% 100%
Source: Morgan Stanley 11-5-04; All Apts. is weighted average; MAA updated
through Q304 release.
Investment Summary
Significant internal earnings growth upside + steady and disciplined external
growth prospects + secure dividend + pricing upside to sector
|X| Focused strategy and operation
|X| Lower-risk business strategy & operation
|X| Well positioned within sector
|X| Consistent top performer
|X| Significant earnings upside to recapture
|X| Solid growth prospects
|X| Disciplined approach to new growth
|X| Secure dividend
|X| Strong, independent board
|X| Pricing upside relative to sector
|X| Solid yield and value upside opportunity