Citi 2020

Global Property CEO Conference

MARCH 2020

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. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which MAA operates and beliefs of and assumptions made by MAA management, involve known and unknown risks, uncertainties and other factors that could significantly affect the financial results of MAA. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements, which are not historical in nature. In this presentation, forward-looking statements include, but are not limited to, any statements about forecasted operating results, anticipated revenue and expense growth, expected acquisition and disposition activity, the outlook for multifamily supply, the outlook for job growth, anticipated capital raising and financing activities, anticipated occupancy rates, anticipated lease pricing and rent growth, expected timing and financial impact of capital initiatives, estimated development funding, the anticipated timing of completion of current development projects and the stabilization of such projects, MAA's future development projects, the anticipated stabilization of communities in lease-up, the anticipated scope of MAA's future redevelopment activities and projected redevelopment costs, incremental rent growth and incremental revenue, anticipated dividends, interest rate and other economic expectations, and other information that is not historical. All statements that address operating performance, events or developments that MAA anticipates or expects will occur in the future are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although MAA believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, MAA can give no assurance that its expectations will be achieved, and therefore actual outcomes and results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: inability to generate sufficient cash flows due to market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors; exposure as a multifamily-focused REIT to risks inherent in investments in a single industry and sector; adverse changes in real estate markets; failure of new acquisitions to achieve anticipated results or be efficiently integrated; failure of development communities to be completed, if at all, within budget and on a timely basis or to lease-up as anticipated; unexpected capital needs; changes in operating costs, including real estate taxes, utilities and insurance costs; losses from catastrophes in excess of our insurance coverage; level and volatility of interest or capitalization rates or capital market conditions; the effect of any rating agency actions; inability to attract and retain qualified personnel; cyberliability or potential liability for breaches of our privacy or information security systems; adverse legislative or regulatory tax changes; adverse legal proceedings; compliance costs associated with laws requiring access for disabled persons; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by MAA from time to time, including those discussed under the heading "Risk Factors" in MAA's most recently filed Annual Report on Form 10-K. MAA undertakes no duty to update any forward- looking statements appearing in this presentation.

REGULATION G

This presentation contains certain non-GAAP financial measures within the meaning of the Securities Exchange Act of 1934, as amended. MAA's definitions of these non-GAAP financial measures, among other terms, and reconciliations to the most directly comparable GAAP measures, can be found in the accompanying Appendix and under the "Filings & Financials - Quarterly Results" navigation tab on the "For Investors" page of MAA's website at www.maac.com.

2

Strong. Building Momentum. Ready.

Transformative transactions over the last six years have enhanced our portfolio, our execution capabilities and our capacity to support new growth. We look forward to capturing the opportunities that lie ahead.

3

A Strategy Focused On Creating Value Through The Full Market Cycle

1

• MAA has a differentiated approach, focused on the high growth Sun Belt region

• Portfolio is diversified among markets, submarkets, asset styles, and price points

Strong

• Portfolio size and market concentration create efficiencies and economies of scale

• Technology initiatives further strengthen platform and opportunities

• Strong balance sheet provides safety while creating flexibility and opportunity

2

Building

Momentum

  • Strong 2019 rent growth trends carry momentum into 2020
  • High yielding interior kitchen and bath redevelopment program continues throughout the portfolio
  • Expanded exterior amenity redevelopment program underway at select properties
  • Expanded new development pipeline creating additional value

3

• Proven track record of creating steady internal growth, while also absorbing and extracting

Ready

•

value from significant external growth

Balance sheet capacity creates growth opportunities

• Experienced, tenured management team

•

Strong culture with focus on delivering long-term value for all stakeholders

4

A Differentiated Approach, Focus on High Growth Sunbelt Region

1

Differentiated Approach Within the

Apartment Sector

% PUBLIC APARTMENT REIT

SECTOR

68%

SECTOR NOI FROM 10 LARGE

MAA

4%

COASTAL MARKETS1

% PUBLIC APARTMENT REIT

SECTOR

38%

SECTOR NOI FROM

MAA

0%

CALIFORNIA1

Seattle

San Francisco

Oakland-East Bay

San Jose

Los Angeles

Orange County

Inland Empire

San Diego

Over an eight year period (from 2010 to 2018) almost 60% of all domestic moves were to

MAA Markets.

Top 10 US Markets for Net Migration

2010 - 2018

RANK

MARKET

NET MIGRATION2

(000's)

1

Dallas-Ft Worth

412

2

Phoenix

327

3

Houston

262

4

Austin

252

5

Tampa

242

6

Atlanta

214

7

Charlotte

204

8

San Antonio

192

9

Denver

183

10

Orlando

173

Boston

New York

DC Metro

Public Apartment REIT

Market Concentration

TOP 10 MARKETS BY %NOI1

OTHER CALIFORNIA MARKETS1 MAA MARKETS

1 Green Street Advisors, U.S. Apartment Outlook, January 17, 2020

5

2 US Census Bureau, Cumulative Estimates of the Components of Population Change, April 1, 2010 to July 1, 2018 - Net Migration - Domestic

Diversified Portfolio in High-Growth Region

1

TOP 10 MARKETS BY % SAME STORE NOI FOR 4Q 2019

1

2

3

ATLANTA

CHARLOTTE

10,664 Units | 12.3% NOI

6,149 Units | 7.0% NOI

4

5

TAMPA

WASHINGTON D.C.

DALLAS-FORT WORTH

5,220 Units | 6.7% NOI

4,080 Units | 6.6% NOI

13,653 Units | 13.2% NOI

6

Diversified Portfolio in High-Growth Region

1

TOP 10 MARKETS BY % SAME STORE NOI FOR 4Q 2019

6

7

8

AUSTIN

RALEIGH/DURHAM

6,475 Units | 6.1% NOI

4,397 Units | 4.6% NOI

9

10

NASHVILLE

HOUSTON

4,055 Units | 4.5% NOI

4,867 Units | 4.4% NOI

ORLANDO

5,274 Units | 6.4% NOI

7

Market Diversification and Submarket Balance across the High Growth Sunbelt Region 1

TOP 20 MARKETS

% 4Q 2019 SS NOI

Atlanta, GA

12.3%

Dallas, TX

9.1%

Charlotte, NC

7.0%

Tampa, FL

6.7%

Washington, DC

6.6%

Orlando, FL

6.4%

Austin, TX

6.1%

Raleigh/Durham, NC

4.6%

Nashville, TN

4.5%

Houston, TX

4.4%

Fort Worth, TX

4.1%

Jacksonville, FL

3.4%

Phoenix, AZ

3.2%

Charleston, SC

2.7%

Richmond, VA

2.2%

Savannah, GA

2.0%

Greenville, SC

1.7%

Memphis, TN

1.4%

Birmingham, AL

1.4%

San Antonio, TX

1.3%

Total

91.1%

Multifamily Markets

Regional Office

Corporate Headquarters

DIVERSIFIED WITHIN SUBMARKETS1

22%

49%

17%

12%

Inner Loop Suburban Satellite City Downtown/CBD

DIVERSIFIED IN PRICE POINTS1,2

54%

46%

A to A+

B to B+

Source: Company and Company 4Q 2019 Earnings Release Supplemental

1 Based on gross asset value at 12/31/2019 for total multifamily portfolio

2 Average effective rent/unit for 4Q 2019 of higher than $1,300 for A to A+ and $1,300

or lower for B to B+ for total multifamily portfolio

8

High Growth Region Favors Continued Strong Demand

1

MAA'S TOP MARKETS CONSISTENTLY RANK AMONG HIGHEST IN THE COUNTRY

FOR JOBS, MIGRATION, LIVEABILITY AND POPULATION GROWTH

Dallas/

Atlanta

Washington

Charlotte

Tampa

Fort Worth

DC

#1 Best Big City for Jobs

Top 10 Market

Top 10 Strongest Economy

#4 Fastest Growing

#3 City with Most Jobs in

Highest Net Migration

in the US

Large US City

2019

~Forbes, 2017

~US Census Bureau,

~Business Insider, 2018

~Wallet Hub, 2018

~Manpower Group

2010-2018

Orlando

Austin

Houston

Nashville

Raleigh/

Durham

#1 Job Growth Rate in US

#1 Best Places to Live

#1 Top Metro for Economic

#3 Best Big City for Jobs

#2 Best Place for Business

(Large City)

Growth Potential

and Careers

~US Bureau of Labor

~US News & World Report, 2018

~Business Facilities, 2018

~Forbes, 2017

~Forbes, 2018

Statistics, 2017-2018

ANNUAL EMPLOYMENT GROWTH

• Superior JOB GROWTH VS. NATIONAL

3.0%

AVERAGES

2.5%

2.3%

• Favorable MIGRATION TRENDS and

2.0%

1.7%

HOUSEHOLD FORMATIONS

1.5%

1.0%

• FAVORABLE TAX ENVIRONMENT

0.5%

attracts employers and drives job

growth

0.0%

2013

2014

2015

2016

2017

2018

2019

Average

• BUSINESS-FRIENDLYinfrastructure

U.S

MAA Markets

attracts employers

Source: US Bureau of Labor Statistics

9

Operational Strength and Efficiencies Drive Value

1

MAA'S ESTABLISHED EXPENSE MANAGEMENT PRACTICE STANDS OUT AMONG PEERS

Since 2013, the average annual property expense growth for MAA is 2.5% vs the sector

average1 of 3.0%

VALUE CREATION FROM PROPERTY

OPERATING EXPENSE SAVINGS

Reported Same Store

$160,000

Annual value creation

(in $000s) created by

140,435

$140,000

MAA's lower annual

expense growth of 2.5%

$120,000

vs. sector average of

117,140

3.0%, assuming a 5.0%

$100,000

cap rate.

94,996

$80,000

73,956

$60,000

53,978

$40,000

35,019

$20,000

17,039

$0

2013

2014

2015

2016

2017

2018

2019

  1. Unique shop stocking program that drives down maintenance and turn costs
  2. Proactive utility monitoring and management program
  3. Proactive lease expiration management and inventory readiness practices
  4. Superior use of web screening and capture technology to efficiently drive qualified leasing traffic; high capture rate
  5. Enhanced scale, size and efficiencies in procurement of third party products and services associated with property operations

Source: Company reports

1 Sector defined as AIV, AVB, CPT, EQR, ESS, UDR, PPS (through 2016), HME (through 2014), AEC (through 2014), CLP (through 2013), BRE (through 2013)

10

Technology Advances Expected to Enhance Operations and Add Value

1

Smart Home Technology Roll-out In Progress

2019 Test and 2020 Expansion

  • Tests at 15 properties in 2019 were well received
  • Mobile control of lights, thermostat and security as well as leak monitoring provides additional value to residents
  • Additional synergy opportunities in repairs and maintenance and vacant and house electric charges
  • Expect to install in approximately 24K units in 2020 with revenue impact as leases expire or renew

Double Play Bulk Internet Roll-out In Progress

High-Speed Internet added to Bulk Cable Program

  • Program initiated in the back half of 2019 adds high-speed internet access at discounted price to residents
  • Opportunity exists for approximately half of the same store portfolio
  • Expect contracts to be in place for all units by mid-year 2020, with NOI opportunity building as leases expire or renew
  • Projected 2020 NOI growth impact of roughly 50bps

Other Programs Recently Completed or Currently in Review/Testing Phase

  • New and Improved Single Operating Platform
  • Improvements to Intranet, Digital Content and Training for Employees
  • Enhanced Online Recruiting Tools
  • Utility Monitoring Enhancements
  • SightPlan - Mobile Inspections for Service Technicians
  • Enhanced Company Website and Data Analysis
  • Artificial Intelligence, Chat, CRM, and Prospect Engagement Tools

11

Strong Balance Sheet and Manageable Debt Maturity Profile

1

CREDIT METRICS AT 12/31/2019

MAA

SECTOR AVG4

Total debt / adjusted total assets1

31.4%

32.3%

Total secured debt / adjusted total assets1

4.4%

5.3%

Unencumbered NOI / total NOI

90.2%

91.1%

Net debt / recurring adjusted EBITDAre2

4.62x3

5.05x

Consolidated income available for debt service to total annual debt service charge1,2

5.10x

5.65x

Weighted average maturity of debt (in years)

7.5

8.1

  1. MAA calculations as specifically defined in Mid-America Apartments, L.P.'s debt agreements.
  2. Sector average represents publicly disclosed sector equivalent.
  3. Recurring Adjusted EBITDAre for the trailing twelve months ended December 31, 2019 included the impact of the non-cash income related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares. The inclusion of the non-cash income item lowered Net Debt/Recurring Adjusted EBITDAre by 9 basis points for the trailing twelve months ended December 31, 2019.
  4. Sector constituents include AVB, CPT, EQR, ESS and UDR; data is from 4Q 2019 company filings

DEBT MATURITY PROFILE ($ IN MILLIONS) AT 12/31/2019

Debt1

Commercial Paper Program

Weighted Average Interest Rate

3.8%

Weighted Average Maturity

7.5 years

$138

$70

$194

$665

$360

$416

$2,612

2020

2021

2022

2023

2024

2025+

% MATURING

0.0%

5%

10.8%

4%

6.1%

15%

13.5%

8%

12.6%

9%

59%

57.0%

1 Debt excluding unsecured revolving credit facility and unsecured commercial paper program. At 12/31/19, there was no outstanding balance on the revolving credit facility.

12

Strong Trends Heading Into 2020

2

4.0%

3.6%

3.8%

3.5%

3.7%

3.4%

3.0%

2.5%

2.3%

2.0%

2.1%

1.9%

1.5%

1.0%

2017

2018

2019

2020F

Effective Rent Growth

Total Revenue Growth

2019

2020F

Blended Lease Over Lease Rent Growth

4.4%

2.9% - 3.9%

"Earned in" Rent Growth1

0.9%

1.7%

1 "Earned in" rent growth is calculated as December effective rent/unit as compared to the full year effective rent/unit and is intended to capture the carry over growth into the following year from in place rents

13

Value Creation through Kitchen and Bath Redevelopment Program

Approximately 25,000 units redeveloped during past 3 years

Before

OPPORTUNITY

Between 12,000 - 14,000 units (including legacy PPS portfolio) remaining for redevelopment across same store portfolio with potential to create additional rent growth value.

SCOPE

Redevelopments are performed on turn at select communities (properties remain in same store group), minimizing down time and allowing us to continually refine the program for real-time improvements

Standard program includes kitchen and bath upgrades

After

•

Stainless appliances

•

Counter top replacement

•

Updated cabinetry

• Plumbing and light fixture updates

•

Flooring

RESULTS

2017A

2018A

2019A

2020F

Production

8,375

8,155

8,329

7,000-8,000

Average Per Unit Cost

$5,463

$6,138

$5,876

$6,000-$7,000

Average Rent Increase

8.8%

10.5%

9.8%

9%-10%

Post Parkside, Orlando, FL

2

14

Future Opportunity to Capture

MAA REDEVELOPMENT PIPELINE

Pipeline of Units Yet to be Redeveloped

2

Currently Identified Redevelopment Opportunity

Legacy

Legacy

Legacy

Total

MAA

CLP

PPS

MAA

13K

Units

3,749

3,334

6,024

13,107

units of

Capital

$16.9M

$15.0M

$49.6M

$81.5M

Incremental

opportunity

$3.5M

$3.1M

$10.7M

$17.3M

Revenue

Top 10 2020 Markets For Redevelopment

Atlanta, GA 1,339 units

Nashville, TN 304 units

Dallas, TX 651 units

Washington, DC 302 units

Tampa, FL 573 units

Phoenix, AZ 280 units

Charlotte, NC 513 units

Raleigh/Durham, NC 234 units

Orlando, FL 363 units

Charleston, SC 220 units

Future Value Opportunity

Revenue

At 5.0%

Net Value

Cap Rate

Creation

$17.3M

$346.0M

$264.5M

<350 Redeveloped Units

+350 Redeveloped Units

15

Expanding the Redevelopment Program to Drive Additional Value

2

Property Repositioning Program

Thoughtful Upgrades to Maximize Revenue

  • Program differentiated from kitchen/bath redevelopment - includes upgrade of amenities, exteriors and common areas to keep pace with market demand
  • Candidates evaluated on location, potential for rent growth, competition and incoming supply
  • 10 properties planned for 2020
  • Approximate 2020 investment of $26M with benefit expected in 2021 (8-9% cash on cash return)

Unused Rooftop

Potential for Rooftop Lounge Similar to Comps (pictured example: Post Midtown Atlanta rooftop terrace)

CASE STUDY

Post Parkside | Orlando

Leverage Location and Views of Lake Eola

  • Property located in highly desirable downtown area overlooking Lake Eola; high foot traffic; grocery, restaurants, events within walking distance; demographics and demand favorable to support upgrade
  • Current rooftop unused; existing leasing office small, not ideally located; common amenities and exteriors in need of update and expansion
  • Evaluate repurposing rooftop as resident lounge area
  • Evaluate moving and expanding current leasing center for maximum visibility, accessibility and functionality
  • Evaluate addition of package room and parcel pending solution
  • Evaluate improvements to existing resident amenities including pool area as well as other exterior updates
  • Currently greater than 20% delta between rents of the subject property and its immediate comparable property set

16

Development Pipeline Poised To Deliver Value

2

Current $490 million development pipeline

Started late

3Q 2019

336 N Orange, Orlando, FL

Expected

Expected

Completion

Completion

3Q 2020

2Q 2021

MAA Frisco Bridges II, Dallas, TXNovel Midtown, Phoenix, AZ

Expected

Expected

Completion

Completion

4Q 2021

4Q 2021

Westglenn, Denver, CO

Jefferson Sand Lake, Orlando, FL

17

Development Pipeline and Lease-ups Poised To Deliver Value

2

  • Established history and success of disciplined capital deployment will govern growth through new development
  • Design and investment managed from an owner/operator perspective; long-term margins optimized
  • Spread between forecasted cost basis and current cap rates supports value accretion of approximately $230M from the current pipeline1

ACTIVE DEVELOPMENTS AT 12/31/2019

EXPECTED

TOTAL

TOTAL EXP COST

INITIAL

EXPECTED

6.2%

PROPERTY

MSA

UNITS

(IN MILLIONS)

OCCUPANCY

STABILIZATION2

Copper Ridge II

Fort Worth, TX

168

$

30.0

1Q 2020

1Q 2021

AVERAGE EXPECTED

MAA Frisco Bridges II

Dallas, TX

348

$

69.0

2Q 2020

4Q 2021

STABILIZED NOI YIELD

Novel Midtown3

Phoenix, AZ

345

$

82.0

4Q 2020

3Q 2022

$30M - $31M

Westglenn

Denver, CO

306

$

84.5

2Q 2021

3Q 2022

336 N Orange

Orlando, FL

369

$

99.0

2Q 2021

4Q 2022

TOTAL EXPECTED STABILIZED

Long Point

Houston, TX

308

$

57.0

3Q 2021

4Q 2022

INCREMENTAL NOI

Jefferson Sand Lake4

Orlando, FL

264

$

68.0

2Q 2021

4Q 2022

TOTAL ACTIVE DEVELOPMENTS

2,108

$

489.5

5.9%

ACTIVE LEASE-UPSAT 12/31/2019

TOTAL

TOTAL COST

PHYSICAL

EXPECTED

AVERAGE BLENDED

STABILIZED NOI YIELD

PROPERTY

MSA

UNITS

(IN MILLIONS)

OCCUPANCY

STABILIZATION2

$8.0M - $9.0M

Post Parkside at Wade III

Raleigh, NC

150

$

23.7

96.7%

1Q 2020

Sync 36 II

Denver, CO

79

$

21.8

45.6%

2Q 2020

1201 Midtown II

Charleston, SC

140

$

28.6

92.9%

1Q 2020

TOTAL EXPECTED STABILIZED

The Greene

Greenville, SC

271

$

72.1

82.7%

3Q 2020

INCREMENTAL NOI

TOTAL ACTIVE LEASE-UPS

640

$

146.2

83.6%

Source: Company 4Q 2019 Earnings Release Supplemental

3 MAA owns 80% of the joint venture that owns this property

1 Based on 4.5% Cap Rate; includes 4Q 2019 development and lease-up pipeline

4 MAA owns 95% of the joint venture that owns this property

2 Communities are considered stabilized after achieving 90% occupancy for 90

days

18

Differentiated Strategy and Superior Execution Drives Long-term Value Creation

3

PPS

$7.00

Merger

CLP

$5.94

$6.04

$6.55

$5.93

$6.00

Merger

$5.69

$5.59

Great

$5.30

$5.41

$5.09

Recession

$5.00

$4.57

$4.97

$4.96

$4.35

$4.38

$3.98

$4.00

$3.79

$3.57

$3.96

$3.74

$3.30

$3.08

$3.09

10 Year CAGR:

$3.00

AFFO 6.8%

FFO 5.6%

$2.00

$1.00

$0.00

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

AFFO/Share

FFO/Share

AFFO Payout Ratio1

2019 PEER

100.0%

AVERAGE2

80.0%

70.1%

60.0%

40.0%

20.0%

0.0%

79.9%

79.6%

76.1%

66.7%

74.3%

66.7%

62.0%

66.1%

65.7%

68.2%

64.8%

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

SOURCE: S&P Global, Company, KeyBank Leaderboard, 02/09/2020

1 AFFO Payout Ratio is defined as annual dividends paid or forecasted to be paid divided by annual AFFO per Share diluted

2 Weighted average of AFFO Payout Ratio for multifamily peers: AIV, AVB, CPT, EQR, ESS and UDR

19

Balance Sheet Capacity With Multiple Capital Sources

3

DEBT/TOTAL CAPITALIZATION1

2012

2019

37.0%

22.5%

3.2%

0.2%

TOTAL CAPITALIZATION1

26.3%

63.0%

19.3%

77.3%

2012

2019

Common Stock

Common Stock

Unsecured Debt

Unsecured Debt

Secured Debt

Secured Debt

Preferred Stock

10.7%

2012

2019

Total Debt/Total Assets

44.1%

Total Debt/Total Assets

31.4%

Annual Dividend/Share

$2.64

Annual Dividend/Share

$4.00

Dividend/AFFO

66.7%

Dividend/AFFO

64.8%

Net Debt/Recurring Adj EBITDAre

6.48x

Net Debt/Recurring Adj EBITDAre

4.62x

Ratings

BBB-/Baa2/BBB

Ratings

BBB+/Baa1/BBB+

Unencumbered Gross Assets

53%

Unencumbered Gross Assets

89%

Average Daily Trading Volume

300k

Average Daily Trading Volume

530k

Outstanding Public Bonds

$0

Outstanding Public Bonds

$3.2 billion

1"Total Capitalization" equals common shares and units outstanding multiplied by the closing stock price on 12/31/2019, plus preferred shares outstanding

on

12/31/2019 at the $50 per share redemption price and Total debt on 12/31/2019.

20

Experienced, Tenured Management Team

3

• Experienced, strengthened,

Finance

Human

Resources

and broadened

management team

Al Campbell

Melanie Carpenter

enhances execution

EVP, Chief Financial Officer

EVP, Chief Human Resources Officer

22 years with MAA

20 years with MAA

capabilities

  • Team of 26 Senior VPs with wide range of technical experience and expertise drives competitive advantages.
    • Average 12 years with MAA
  • Robust property manager training and development program

General Counsel

& Commercial

Property Operations

Rob DelPriore

EVP, General Counsel

25 years with MAA (includes outside tenure)

Acquisitions

& Dispositions

Brad Hill

EVP, Director of Multifamily Investing

10 years with MAA

Seasoned Management…Industry Leaders

Multifamily Property

Operations

Tom Grimes

EVP, Chief Operating Officer

25 years with MAA

New Development

David Ward

EVP, Development

15 years with MAA (includes PPS tenure)

N A R E I T | N A T I O N A L M U L T I F A M I L Y H O U S I N G C O U N C I L | U R B A N L A N D I N S T I T U T E |

N A T I O N A L H O M E B U I L D E R S A S S O C I A T I O N |

S T A T E A N D L O C A L A P A R T M E N T A S S O C I A T I O N S

21

Strong Culture Serving All Stakeholders

3

Our long-term commitment to sustainability and responsibly managing our relationships is an essential part of how we provide exceptional service and value for our stakeholders. We are dedicated to continuous progress and have established an ESG council of executive and senior department heads focused on tracking and enhancing our environmental, social and governance efforts.

Environmental Stewardship

Social Responsibility

Corporate Governance

CONSERVING RESOURCES

  • Low-flowtoilets and WaterSense plumbing fixtures
  • Smart irrigation and water use efficiency audits
  • Landscape innovations minimizing turf and using drought tolerant plant material
  • Utility monitoring systems

REDUCING WASTE

  • On-sitetrash recycling options for residents
  • Trash compaction to reduce pick-ups
  • Online leasing and communication tools
  • Vendor partnerships to recycle carpet and other flooring materials; use of carpets made with recycled content

INCREASING ENERGY EFFICIENCY

  • Reduced watt, high performance lighting fixtures in community breezeways and common areas
  • Routine maintenance and audits of HVAC systems and upgrades to efficient equipment
  • Energy Star rated appliances
  • Smart thermostats

EMPOWERING ASSOCIATES

  • Competitive compensation and benefits packages, recognition programs, and growth opportunities
  • Ongoing training
  • The latest technology and proven systems
  • Associate engagement including internal communications, reviews and surveys

CARING FOR RESIDENTS

  • STAR Service Program and routine resident surveys
  • Online resident portal for ease of transactions, service request submission and communication
  • Property amenities to promote healthy lifestyles

REACHING THE COMMUNITY

  • Corporate charity, Open Arms Foundation, provides temporary housing to families who must travel for medical treatment. Over 3,000 families helped to date in over 50 MAA homes.

2019-2020 Initiatives

BUILDING CONFIDENCE

  • Corporate Governance Guidelines encompassing board and committee structure, director and executive officer standards and stock ownership requirements
  • Code of conduct and ethical standards applying to all MAA associates and directors
  • Governance practices overseeing policies and standards related to shareholder rights and proxy access
  • Performance-based,equity compensation aligning executive goals with the long-term best interests of our shareholders
  • Transparency and accountability of financial reporting, auditing and internal controls through risk oversight and anonymous submission platform
  • Strong governance ratings from Green Street Advisors and Institutional Shareholder Services

GRESB ASSESSMENT | FIRST CORPORATE SUSTAINABILITY REPORT | PROPERTY LEVEL UTILITY MONITORING

22

2020 Same Store Outlook

3

REVENUE

EXPENSE

Property Revenue Growth

3.25% - 4.25%

Property Expense Growth

3.75% - 4.75%

Full Year 2020 Forecast

3.75%

Full Year 2020 Forecast

4.25%

Midpoint

Midpoint

Blended Lease Over Lease

2.9% - 3.9%

Real Estate Tax Growth

4.00% - 5.00%

Pricing

3.4%

Full Year 2020 Forecast

4.50%

Full Year 2020 Forecast

Midpoint

Midpoint

February 2020 YTD: 2.0%

Average Physical Occupancy

95.6% - 96.0%

Insurance Expense

Will renew July 1st

Full Year 2020 Forecast

95.8%

Full Year 2020 Forecast

with an expected 10-15%

10bps below prior year

Midpoint

increase over prior policy

period inclusive of all lines

February 2020 YTD: 95.6%

of insurance

Double Play Internet

Double Play Internet

Expected to contribute

Expected to contribute

Full Year 2020 Forecast

55bps to revenue growth

Full Year 2020 Forecast

65bps to expense growth

for the year

for the year

Other Fee/Ancillary Income

Expected to be flat as

All Other Expenses

Expected to be in the 3.0%

Full Year 2020 Forecast

compared to prior year due to

Full Year 2020 Forecast

growth range on average for

slightly lower occupancy

the year

Full Year 2020 NOI Growth Range Forecast of 3.0% - 4.0%

23

2020 Core FFO and Investment Outlook

3

EXPECTED CORE FFO/SHARE1

CAPITAL INITIATIVES4

TRANSACTIONS4/FINANCING

Full Year 20202

$6.38 - $6.62

Smart Home

$35M - $38M

Multifamily

$175M - $225M

$6.50

Investment

Capital Spend

Acquisitions

$200M

Midpoint

24k to 25k units

All in lease up, i.e.

Midpoint

installed in 2020

initially dilutive

Q1 20203

$1.53 - $1.65

Exterior

$25M - $30M

Multifamily

$125M - $150M

$1.59

Redevelopment

Capital Spend

Dispositions

$138M

Midpoint

10 properties

Midpoint

targeted for 2020

Actual 2019 results included $0.29 per

Interior

$48M - $52M

Multifamily

$225M - $275M

Share of unusual or non-cash items that

Redevelopment

Capital Spend

Development

$250M

are not forecasted to recur in 2020:

7k to 8k units in

Funding

Midpoint

• $0.15 per Share from

2020

the valuation of the

Unsecured Bond

$300M - $400M

preferred derivative

• $0.10 per Share of land gains

Exploring 5 year

3.00% - 3.75%

• $0.04 per Share of various other items

to 30 year options

[TIMING: Q2 2020]

On a Core FFO basis, FFO/Share in 2019

Equity Issuance

$80M of equity

was $6.26

assumed at midpoint

of transaction guidance

  1. In this context, per Share means per diluted common share and unit.
  2. Net income per diluted common share is expected to be in the range of $3.02 to $3.26 per diluted common share ($3.14 at the midpoint) for the full year 2020.
  3. MAA does not forecast Net income per diluted common share on a quarterly basis as MAA cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year).
  4. Expectations for the full year 2020

24

APPENDIX

  • Reconciliation of Non-GAAP Financial Measures
  • Definitions of Non-GAAP Financial Measures and Other Key Terms

At December 31, 2019

25

Reconciliation of Non-GAAP Financial Measures

RECONCILIATION OF FFO, AFFO AND FAD TO NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS

Amounts in thousands, except per share and unit data

Three months ended December 31,

Year ended December 31,

2019

2018

2019

2018

Net income available for MAA common shareholders

$

148,667

$

60,360

$

350,123

$

219,211

Depreciation and amortization of real estate assets

123,928

120,181

490,632

484,722

(Gain) loss on sale of depreciable real estate assets

(80,001)

18

(80,988)

39

Depreciation and amortization of real estate assets of real estate joint venture

153

152

618

595

Net income attributable to noncontrolling interests

5,471

2,235

12,807

8,123

Funds from operations attributable to the Company (1)

198,218

182,946

773,192

712,690

Recurring capital expenditures

(14,320)

(15,887)

(72,781)

(71,960)

Adjusted funds from operations (1)

183,898

167,059

700,411

640,730

Redevelopment capital expenditures

(13,139)

(14,001)

(58,199)

(55,148)

Revenue enhancing capital expenditures

(6,804)

(8,905)

(32,871)

(30,910)

Commercial capital expenditures

(2,056)

(1,575)

(7,075)

(8,150)

Other capital expenditures

(5,785)

(7,288)

(19,280)

(31,417)

Funds available for distribution (1)

$

156,114

$

135,290

$

582,986

$

515,105

Dividends and distributions paid

$

113,630

$

108,808

$

453,682

$

434,928

Weighted average common shares - diluted

114,309

113,880

114,113

113,836

FFO weighted average common shares and units - diluted

118,214

117,974

118,127

117,948

Earnings per common share - diluted:

Net income available for common shareholders

$

1.30

$

0.53

$

3.07

$

1.93

Funds from operations per Share - diluted (2)

$

1.68

$

1.55

$

6.55

$

6.04

Adjusted funds from operations per Share - diluted (2)

$

1.56

$

1.42

$

5.93

$

5.43

  1. Results for the years ended December 31, 2019 and 2018 included $17.9 million of non-cash income and $2.6 million of non-cash expense, respectively, related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares.
  2. Results for the years ended December 31, 2019 and 2018 included $0.15 per Share of non-cash income and $0.02 per Share of non-cash expense, respectively, related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares.

26

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,

September 30,

December 31,

December 31,

December 31,

2019

2019

2018

2019

2018

Net Operating Income

Same Store NOI

$

247,739

$

238,137

$

235,966

$

956,075

$

921,240

Non-Same Store NOI

19,291

17,956

15,468

72,097

55,518

Total NOI

267,030

256,093

251,434

1,028,172

976,758

Depreciation and amortization

(125,426)

(124,684)

(121,541)

(496,843)

(489,759)

Property management expenses

(13,816)

(13,899)

(12,054)

(55,011)

(47,633)

General and administrative expenses

(10,885)

(11,485)

(9,063)

(46,121)

(34,786)

Merger and integration expenses

-

-

(609)

-

(9,112)

Interest expense

(43,698)

(44,513)

(44,454)

(179,847)

(173,594)

Gain (loss) on sale of depreciable real estate assets

80,001

1,000

(18)

80,988

(39)

Gain on sale of non-depreciable real estate assets

2,787

-

662

12,047

4,532

Other non-operating (expense) income

(495)

20,060

(631)

25,275

5,434

Income tax expense

(882)

(1,491)

(785)

(3,696)

(2,611)

Income from real estate joint venture

444

378

576

1,654

1,832

Net income attributable to noncontrolling interests

(5,471)

(2,814)

(2,235)

(12,807)

(8,123)

Dividends to MAA Series I preferred shareholders

(922)

(922)

(922)

(3,688)

(3,688)

Net income available for MAA common shareholders

$

148,667

$

77,723

$

60,360

$

350,123

$

219,211

27

Reconciliation of Non-GAAP Financial Measures

RECONCILIATION OF EBITDA, EBITDAre, ADJUSTED EBITDAre AND RECURRING ADJUSTED EBITDAre TO NET INCOME

Dollars in thousands

Three Months Ended

Year Ended

December 31,

December 31,

December 31,

December 31,

2019

2018

2019

2018

Net income

$

155,060

$

63,517

$

366,618

$

231,022

Depreciation and amortization

125,426

121,541

496,843

489,759

Interest expense

43,698

44,454

179,847

173,594

Income tax expense

882

785

3,696

2,611

EBITDA

325,066

230,297

1,047,004

896,986

(Gain) loss on sale of depreciable real estate assets

(80,001)

18

(80,988)

39

Adjustments to reflect the Company's share of EBITDAre of

unconsolidated affiliates

336

321

1,351

1,242

EBITDAre

245,401

230,636

967,367

898,267

Loss (gain) on debt extinguishment (1)

193

(1,960)

253

(2,179)

Net casualty (gain) loss and other settlement proceeds (1)

(1,491)

920

(3,390)

(724)

Gain on sale of non-depreciable assets

(2,787)

(662)

(12,047)

(4,532)

Adjusted EBITDAre

241,316

228,934

952,183

890,832

Merger and integration expenses

-

609

-

9,112

Recurring Adjusted EBITDAre (2)

$

241,316

$

229,543

$

952,183

$

899,944

  1. Included in Other non-operating income in the Consolidated Statements of Operations.
  2. Recurring Adjusted EBITDAre for the trailing twelve months ended December 31, 2019 included the impact of the non-cash income related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares. The inclusion of this non-cash income item lowered Net Debt/Recurring Adjusted EBITDAre by 9 basis points for the trailing twelve months ended December 31, 2019. Recurring Adjusted EBITDAre for the trailing twelve months ended December 31, 2018 included the impact of the non-cash expense related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares. The inclusion of this non-cash expense item increased Net Debt/Recurring Adjusted EBITDAre by 1 basis point for the trailing twelve months ended December 31, 2018.

28

Reconciliation of Non-GAAP Financial Measures

RECONCILIATION OF NET DEBT TO UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE

Dollars in thousands

December 31, 2019

December 31, 2018

Unsecured notes payable

$

3,828,201

$

4,053,302

Secured notes payable

626,397

475,026

Total debt

4,454,598

4,528,328

Cash and cash equivalents

(20,476)

(34,259)

1031(b) exchange proceeds included in Restricted cash (1)

(33,843)

-

Net Debt

$

4,400,279

$

4,494,069

RECONCILIATION OF GROSS ASSETS TO TOTAL ASSETS

Dollars in thousands

December 31, 2019

December 31, 2018

Total assets

$

11,230,450

$

11,323,781

Accumulated depreciation

2,955,253

2,549,287

Gross Assets

$

14,185,703

$

13,873,068

RECONCILIATION OF GROSS REAL ESTATE ASSETS TO REAL ESTATE ASSETS, NET

Dollars in thousands

December 31, 2019

December 31, 2018

Real estate assets, net

$

10,987,128

$

11,151,701

Accumulated depreciation

2,955,253

2,549,287

Cash and cash equivalents

20,476

34,259

1031(b) exchange proceeds included in Restricted cash (1)

33,843

-

Gross Real Estate Assets

$

13,996,700

$

13,735,247

  1. Included in Restricted cash on the Consolidated Balance Sheets.

29

Reconciliation of Non-GAAP Financial Measures

RECONCILIATION OF NET INCOME PER DILUTED COMMON SHARE TO CORE FFO AND CORE AFFO PER SHARE FOR 2019 RESULTS AND 2020 GUIDANCE

Year ended

2020 Full Year Guidance Range

December 31, 2019

Low

High

Earnings per common share - diluted

$

3.07

$

3.02

$

3.26

Real estate depreciation and amortization

4.17

4.23

4.23

Gains on sale of depreciable assets

(0.69)

(0.89)

(0.89)

FFO per Share - diluted

6.55

6.36

6.60

Non-Core items

(0.29) (1)

0.02

0.02

Core FFO per Share - diluted

6.26

6.38

6.62

Recurring capital expenditures

(0.62)

(0.67)

(0.67)

Core AFFO per Share - diluted

$

5.64

$

5.71

$

5.95

  1. Non-Coreitems may include adjustments related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, adjustments for gains or losses from an unconsolidated limited partnership, merger and integration expenses, mark-to-market debt adjustments, loss or gain on debt extinguishment, net casualty gain or loss, and loss or gain on sale of non-depreciable assets. Results for the year ended December 31, 2019 included $0.15 per Share of non-cash income related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, $0.10 per Share of gains related to the sale of non-depreciable real estate assets and $0.04 per Share of income related to other net adjustments.

30

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, is composed of EBITDAre adjusted for net gain or loss on non-depreciable asset sales, insurance and other settlement proceeds and gain or loss on debt extinguishment. As an owner and operator of real estate, MAA considers Adjusted EBITDAre to be an important measure of performance from core operations because Adjusted EBITDAre does not include various income and expense items that are not indicative of operating performance. MAA's computation of Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Adjusted Funds From Operations (AFFO)

AFFO is composed of FFO less recurring capital expenditures. In order to better align the classification of capital expenditures with business goals, certain capital expenditures related to commercial properties have been reclassified out of recurring capital expenditures and revenue enhancing capital expenditures for comparative purposes. AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers AFFO to be an important measure of performance from operations because AFFO measures the ability to control revenues, expenses and recurring capital expenditures.

Core Adjusted Funds from Operations (Core AFFO)

Core AFFO is composed of Core FFO less recurring capital expenditures. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from core operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.

Core Funds from Operations (Core FFO)

Core FFO represents FFO further adjusted for items that are not considered part of MAA's core business operations such as adjustments related to the fair value adjustment of the embedded derivative in the MAA Series I preferred shares, adjustments for gains or losses from an unconsolidated limited partnership, merger and integration expenses, mark-to-market debt adjustments, loss or gain on debt extinguishment, net casualty gain or loss and loss or gain on sale of non-depreciable assets. While MAA's definition of Core FFO may be similar to others in the industry, MAA's methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding our core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

EBITDA

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization, or EBITDA, is composed of net income plus depreciation and amortization, interest expense, and income taxes. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA does not include various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.

31

Definitions of Non-GAAP Financial Measures

EBITDAre

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDAre, is composed of EBITDA, as defined above, excluding the gain or loss on sale of depreciable asset sales and plus adjustments to reflect MAA's share of EBITDAre of unconsolidated affiliates. As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre does not include various expense items that are not indicative of operating performance. While MAA's definition of EBITDAre is in accordance with NAREIT's definition, it may differ from the methodology utilized by other companies to calculate EBITDAre. EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Funds Available for Distribution (FAD)

FAD is composed of FFO less total capital expenditures, excluding development spending and property acquisitions. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and total capital expenditures.

Funds From Operations (FFO)

FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gains or losses on disposition of operating properties and asset impairment, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests, and adjustments for joint ventures. Because noncontrolling interest is added back, FFO, when used in this document, represents FFO attributable to the Company. While MAA's definition of FFO is in accordance with NAREIT's definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Gross Assets

Gross Assets represents Total assets plus Accumulated depreciation. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Gross Real Estate Assets

Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation and Cash and cash equivalents. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Net Debt

Net Debt represents Unsecured notes payable and Secured notes payable less Cash and cash equivalents. MAA believes Net Debt is a helpful tool in evaluating its debt position.

32

Definitions of Non-GAAP Financial Measures

Net Operating Income (NOI)

Net Operating Income represents Rental and other property revenues less Total property operating expenses, excluding depreciation, for all properties held during the period, regardless of their status as held for sale. NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes NOI by market is a helpful tool in evaluating the operating performance within MAA's markets because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Recurring Adjusted EBITDAre

Recurring Adjusted EBITDAre represents Adjusted EBITDAre further adjusted to exclude certain items that are not considered part of MAA's core business operations such as acquisition and merger and integration expenses. MAA believes Recurring Adjusted EBITDAre is an important performance measure as it adjusts for certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance. MAA's definition of Recurring Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Recurring Adjusted EBITDAre. Recurring Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Same Store NOI

Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation, for all properties classified within the Same Store Portfolio during the period. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating the operating performance within MAA's markets because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

33

Definitions of Other Key Terms

Average Effective Rent per Unit

Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.

Average Physical Occupancy

Average Physical Occupancy represents the average of the daily physical occupancy for the respective period.

Development Communities

Communities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Communities portfolio.

Lease-up Communities

New acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Communities portfolio until stabilized. Communities are considered stabilized after achieving at least 90% occupancy for 90 days.

Non-Same Store Portfolio

Non-Same Store Portfolio includes recent acquisitions, communities that have been identified for disposition, communities that have undergone a significant casualty loss, and stabilized communities that do not meet the requirements defined by the Same Store Portfolio.

Same Store Portfolio

MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities are considered stabilized after achieving at least 90% occupancy for 90 days. Communities that have been approved by MAA's Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have undergone a significant casualty loss are also excluded from the Same Store Portfolio.

Unencumbered NOI

Unencumbered NOI represents NOI generated by unencumbered assets (as defined in MAALP's bond covenants).

34

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Mid America Apartment Communities Inc. published this content on 28 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2020 23:34:04 UTC