Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Wells Fargo Real Estate Securities Conference 2023
42 slides from Apartment Investment And Management's conference presentation, Feb 22, 2023
Slide 1: Investor Presentation First Quarter 2023
Aimco CREATING VALUE INVESTOR PRESENTATION First Quarter 2023
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of the federal securities laws, induding, without limitation, statements regarding: Aimco's business strategy, pipeline, and targeted opportunities. Forward-looking statements include all statements th
Slide 3: Wells Fargo Real Estate Securities Conference 2023
Wells Fargo Real Estate Securities Conference 2023 Aim # of Residential Units Commercial Space Total Direct Costs of Projects Underway 2028 Direct Costs of Projects Underway 2023AIV Equity Funding NOI at Stabilization SEFL 20% / CO Front Range 9%: /DC Metro 65%: / Other Limited near-term maturities
Slide 4: Presentation Overview
PRESENTATION OVERVIEW Key takeaways from the following presentation: 1. Aimco has created considerable shareholder value since the separation from AIR Communities as evidenced by Total Shareholder Return (TSR), significantly outpacing peers and major indices. 2. Aimco has substantial embedded value
Slide 5: Slide 5
Slide 6: Aimco Overview
AIMCO OVERVIEW Aimco is a diversified real estate investment company with a 28+ year history of growth and innovation in the multifamily sector. Aimco targets a balanced allocation of investments including value add and opportunistic multifamily real estate, primarily located in Southeast Florida, t
Slide 7: Aimco Mission
AIMCO MISSION To make real estate investments, primarily focused on the multifamily sector within targeted U.S. markets where outcomesare enhanced through our human capital and substantial value is created for investors, teammates, and the communities in which we operate. oo if oo y) Bele] U 0 // //
Slide 8: Aimco Investments
AIMCO INVESTMENTS Aimco couples outsized growth prospects from opportunistic investments with the safety of a stable multifamily portfolio resulting in a nimble platform that can move the needle quickly. Investmentin Value Add and Opportunistic Real Estate Current Allocation Provides outsized growth
Slide 9: Executing on Aimco Strategy Accomplishments
gpsrnssece CEEEEEEFE EELELE CCCCERERFEPFESSES Ajhiti}it bike hee ewww EXECUTING ON AIMCO STRATEGY ACCOMPLISHMENTS: Aimco
Slide 10: Executing on Strategy Accomplishments
EXECUTING ON STRATEGY Accomplishments | | | | Aimco has created substantial value for shareholders by executing its plan focused on: v Maximizing Real Estate Investment Performance v Prudent and Opportunistic Capital Allocation v Maintaining a Strong Balance Sheet and Accessing Capital Markets v Acc
Slide 11: Developments and Redevelopments Completed and Active
EXECUTING ON STRATEGY Accomplishments | | | | REAL ESTATE INVESTMENTS Developments and Redevelopments Completed and Monetized in 2022 b = g Flamingo Point North The Fremont Prism 707 Leahy 366-Unithiajor Redevelopment 256-Unt Development 136-Uni Development “10-Unt Major Redevelopment Current Active
Slide 12: Active Project Summaries
EXECUTING ON STRATEGY Accomplishments | | Active Project Summaries ‘As of 40 2022 (dollars in millions) (unaudited) Direct Investment REAL ESTATE INVESTMENTS Planned ‘The Benson Hotel and Faculty Club 106 $62 § 63.8 $ 561 Upton Place [1] cy 228 248.0 1415 ‘The Hamilton 276 Gal 78 90.6 Strathmore Squ
Slide 13: Select Stabilized Operating Communities
EXECUTING ON STRATEGY some | ron | Jes | REAL ESTATE INVESTMENTS Select Stabilized Operating Communities Plantation Gardens Elm Creek Hillmeade Hyde Park Tower Royal Crest Estates (Nashua) 372 Unts Plantation, FL 400 Units —Eimhurst, 288 Uns —Nashvile, TN 4185 Units ~ Chicago, L 902 Unis — Nashua, N
Slide 14: Real Estate Portfolio
EXECUTING ON STRATEGY Accomplishments | | REAL ESTATE PORTFOLIO Aimco owns a portfolio of 20 stabilized apartment communities with 5,542 apartment homes diversified by geography and price point. PORTFOLIO STATS 2022 RESULTS 2023 OUTLOOK 64%/26%/10% 97.4% 5% - 7% Class B Classc+ / Class Average Daily
Slide 15: Prudent and Opportunistic Capital Allocation
EXECUTING ON STRATEGY Accomplishments | | | | PRUDENT AND OPPORTUNISTIC CAPITAL ALLOCATION ;— soul $ IRCED CAPITAL FROM USED CAPITAL TO $1Bn of Asset Dispositions at Favorable Pricing $669M of leasehold development assets monetized at more than $750k per unit c] $284M from the sale of four assets at
Slide 16: Simplifying the Relationship with AIR
EXECUTING ON STRATEGY Accomplishments | | | | SIMPLIFYING THE RELATIONSHIP WITH AIR Since the separation in December 2020, Aimco has simplified the relationship with AIR through the early repayment of the $534 million purchase money note, the reduction of leasehold liabilities from $469 million down
Slide 17: Improving the Balance Sheet
EXECUTING ON STRATEGY rises | ron | Jes | IMPROVING THE BALANCE SHEET Since the separation from AIR, Aimco proactively fortified its balance sheet ahead of what appeared to be worsening conditions in the debt markets. As of December 31, 2022, Aimcohad: v Reduced leverage maturing through 2024 by $1B
Slide 18: Plan: Optimizing Growth
PLAN: OPTIMIZING GROWTH
Slide 19: Allocate Aimco Capital Accretively
OPTIMIZING GROWTH | Plan | | | ALLOCATE AIMCO CAPITAL ACCRETIVELY TW!) eee balancing growth, opportunistic share repurchases, | while maintaining balance sheet stability | selectively advance pipeline projects share repurchases and dividend payments providing reduced costs and optionality
Slide 20: Aimco Target Allocation by Segment & Sector
OPTIMIZING GROWTH | Plan AIMCO TARGET ALLOCATION BY SEGMENT & SECTOR mCurrent Target om — = Value Add & Opportunistic Real Estate 35 65 Core & Core Plus Real Estate [1] 45% 50 Alternative investments 10% om Cash, Hedges, & Other Net Assets 10% om Total Expected Annualized Retums on Equity land, or p
Slide 21: Simplifying Through Geographic Focus
OPTIMIZING GROWTH SIMPLIFYING THROUGH GEOGRAPHIC FOCUS | a» | Aimco will focus new investment activity within three target markets where fundamentals are sound, the opportunity set is large and Aimco has local market expertise offering a comparative advantage. Washington D.C. Metro Area Population 6
Slide 22: Execute on Pipeline Investments
OPTIMIZING GROWTH | Plan | | | EXECUTE ON PIPELINE INVESTMENTS Benson Hotel and Faculty Club 2 ae _ s Flying Horse Aimco controls a robust pipeline with opportunity Fitzsimons 4 for significant value creation. Bioscience 4 Upton Place Strathmore Phase 1 Strathmore Phase 2 Fitzsimons add'l phases The
Slide 23: Pipeline Project Summary
OPTIMIZING GROWTH | Plan Pipeline Project Summari: As of Feb 2023 (unaudited) PIPELINE INVESTMENTS Estimated/ Currently Planned Leasable Mutifamiy Units Southeast Florida ‘552540 NE 24th Stes (iam) Hamiton House 110 30,000 aH ‘5.000 3823 Biscayne Boulevard (Mam) 3853 Biscayne 250 1,760,000 eso 179,0
Slide 24: Utilizing 3rd Party Equity to Fund Projects and Scale
OPTIMIZING GROWTH UTILIZING 3" PARTY EQUITY TO FUND PROJECTS AND SCALE BALANCE INCREMENTAL FINANCIAL LEVERAGE WITH DIVERSIFICATION OF AIMCO CAPITAL Aimco plans to diversify its capital invested and limit the incremental amount of Aimco capital needed, by using 3" party equity sourced from JV partner
Slide 25: Investment Thesis: Value Proposition
INVESTMENT THESIS: VALUE PROPOSITION
Slide 26: Value Proposition: Share Price Relative to NAV
VALUE PROPOSITION | | tvestment | | SHARE PRICE RELATIVE TO NAV Aimco provides a significant value proposition given the intrinsic value ofits platform and its assets relative to the current share price. Month End Share Price Since Separation sia While there have been puts and takes throughout 2022,
Slide 27: Excellent Corporate Citizenship
EXCELLENT = CORPORATE / CITIZENSHIP i
Slide 28: Excellent Corporate Citizenship: Environmental Stewardship
EXCELLENT CORPORATE CITIZENSHIP ENVIRONMENTAL STEWARDSHIP: COMMITMENT TO CONSERVATION & SUSTAINABILITY BUILDING COMMUNITIES THROUGH DESIGN AND PLANNING Every development and redevelopment project is built with conservation, sustainability, resilience, and climate-related risks and opportunities in m
Slide 29: Environmental Stewardship: Redevelopment of The Hamilton
EXCELLENT CORPORATE CITIZENSHIP | | | | Esc | ENVIRONMENTAL STEWARDSHIP: CASE STUDY REDEVELOPMENT OF THE HAMILTON IN MIAMI, FL Retained the building's original footprint, significantly reducing construction waste + Converted enclosed atrium to an open-air lobby with extensive plantings Waterproofed
Slide 30: Social Responsibility: Teammates, Customers & Communities
EXCELLENT CORPORATE CITIZENSHIP [sem =| SOCIAL RESPONSIBILITY: COMMITMENT TO OUR TEAMMATES, CUSTOMERS & COMMUNITIES ——————— INVESTMENTS IN TEAMMATES ...- SHOWING TANGIBLE RESULTS & COMPANY CULTURE.. Workplace flexibility te Hee ete Recora 4.520 of 3 star) for 2022 Parental leave — 16 weeks paid leav
Slide 31: Strong Governance: Reconstituted Board
EXCELLENT CORPORATE CITIZENSHIP STRONG GOVERNANCE: HIGHLY REGARDED AND RECONSTITUTED BOARD Eight of nine Aimco directors are independent, seven of which were appointed in Dec 2020 or more recently Wesley Powell PRESIDENT, CHIEF 5 FFICER ‘Appointed 2020, if Quincy L. Allen Deborah Smith ER AND CENTER
Slide 32: Committed to Best-in-Class Governance
EXCELLENT CORPORATE CITIZENSHIP | | | Esc | COMMITTED TO BEST-IN-CLASS GOVERNANCE In November 2022, Aimco’s Board of Directors announced the commitment to shareholder friendly governance enhancements: Y opt Out of MUTA: The Aimco Board will, prior to the 2023 annual meeting, opt out of the provision
Slide 33: Appendix
Aimco APPENDIX
Slide 34: Senior Leadership Team
SENIOR LEADERSHIP TEAM | | | | Appendix Jennifer Johnson Wes Powell Lynn Stanfield Lee Hodges Elizabeth (Tizzie) Likovich Matt Konrad = Psy it Tom Marchant John Nicholson Derek Ullian Aimco
Slide 35: Pipeline Details: Brickell Assemblage
PIPELINE DETAILS | Appendix Acres: 4.25 + GSF of Development: ~3,000,000 + Green Street Submarket Grade: A+ + Aimco’s Financial Interest: Aimcois sole owner of Yacht Club Apartments and 1001 Brickell Bay Drive. BRICKELL ASSEMBLAGE MIAMI / FL 35
Slide 36: Pipeline Details: Edgewater Assemblage
PIPELINE DETAILS Acres: 8.3 EDGEWATER ASSEMBLAGE aman FL GSF of Development: ~2,300,000 Green Street Submarket Grade: A- Aimco’s Financial Interest: Aimco is sole owner of The Hamilton and the adjacent land which can accommodate ~1.3M sf. Aimco has a 20% interest in the remaining assemblage. aed
Slide 37: Pipeline Details: Flagler Village
PIPELINE DETAILS FLAGLER VILLAGE Acres: 8.8 u E A GSF of Development: ~3,000,000 Green Street Submarket Grade: A- Aimco’s Financial Interest: Aimcois the sole owner.
Slide 38: Pipeline Details
PIPELINE DETAILS Acres: 3.4 GSF of Development: ~2,100,000 Green Street Submarket Grade: A- Aimco’s Financial Interest: Aimco owns 51% of the venture.
Slide 39: Pipeline Details: Strathmore Square
PIPELINE DETAILS Acres: 1.4 + GSF of Development: 525,000 + Green Street Submarket Grade: A++ Aimco’s Financial Interest: Aimco has a 50% interest in the first two of six phases of developmentwith options to increase participation. STRATHMORE SQUARE
Slide 40: Pipeline Details: Fitzsimons
PIPELINE DETAILS Acres: 10.0 AMPUS b + GSF of Development: ~2,100,000 + Green Street Submarket Grade: B+ + Aimco’s Financial Interest: Aimcois the sole owner of options to purchase the only multifamily parcels on the campus. Aimco recently entered an option agreement for the long-term lease of land
Slide 41: Asset List
ASSET LIST Jin | j= [a Operating Apartment Communities Operating Office Building Property Name Location ‘Apartment Homes Property Name Location Square Feet 118-122 West2ard Street NewYork, NY 42 4001 Brickell ay Drive Miami, FL 300k 473. 90th Street NewYork, NY 2 237-239 Ninth Avenue NewYork, NY 38
Slide 42: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION | | | PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property management revenues, primarily from affiliates: casualt
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