Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — NAREIT REITWeek June 2009
24 slides from Apartment Investment And Management's conference presentation, Jun 3, 2009
Slide 1: NAREIT REITWeek June 2009
Riverside Park - Alexandria, VA NAREIT REITWeek(r) June 2009 Park Towne Place - Philadelphia, PA Monterey Grove - San Jose, CA River Club - Edgewater, NJ Palazzo West at Park LaBrea - Los Angeles, CA 3400 Avenue of the Arts - Orange County, CA
Slide 2: Forward-looking Statements and Other Information
This presentation contains forward-looking statements, including statements regarding projected results and specifically forecasts of 2009 financial results, asset sales and property mortgage refinancing activities. These forward-looking statements are based on management's judgment as of this date
Slide 3: Presentation Topics
Aimco Overview Portfolio Quality Property Operations Liquidity and Balance Sheet 2009 Objectives & Outlook Presentation Topics
Slide 4: Aimco Overview
Aimco Overview Flamingo South Beach Miami, FL 2900 on 1st Seattle, WA Palazzo East at Park La Brea Los Angeles, CA Aimco is a multifamily REIT focused on owning, managing and redeveloping properties in the 20 largest markets in the United States Initial Public Offering completed in 1994 with $315 mi
Slide 5: Aimco Overview
Aimco owns a geographically diversified portfolio of primarily A/B properties concentrated in the largest U.S. markets Properties are in good repair following several years of outsized capital investment Operating team has proven its ability to execute with above average NOI growth Safe balance shee
Slide 6: Portfolio Quality
Portfolio Quality
Slide 7: Increasing Portfolio Quality
Increasing Portfolio Quality Project 4Q 2009 average rents of $1,134, an increase of 55% from $730 five years ago Number of markets reduced from 70 five years ago to 39 today Increasing Conventional Portfolio Rents 2004 2005 2006 2007 2008 1Q 2009 # AIV Markets 70 62 58 46 40 39
Slide 8: Diversified Portfolio
Diversified Portfolio Conventional Asset Allocation (Estimated % NAV) 85% of capital invested in 20 largest U.S. markets, with more than 60% in higher barrier coastal markets
Slide 9: Aimco Rents versus Market 1Q 2009
Aimco Rents versus Market 1Q 2009 Aimco's average rents are 4% above market * Consists of Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville Source: REIS
Slide 10: Market Growth Rates
Market Growth Rates (Average of REIS & PPR) Aimco target markets are expected to fare slightly better than the national average over the next three years and to grow at 20bp above the national average in 2011 - 2013 Consists of Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville Represents t
Slide 11: 2009 Asset Sales
During 2009, we plan to sell up to $1.5 billion of conventional properties and $500 million of affordable assets Expect to increase capital invested in target markets from 85% currently to approximately 90% by the end of 2009 * Cap Rate is calculated based on the trailing twelve month NOI prior to s
Slide 12: Property Operations
Property Operations
Slide 13: Property Operations
Property Operations * Represents the average of apartment REITs AVB, CPT, EQR, ESS, HME, PPS and UDR Operating team has generated 3.6% average annual same store NOI growth over the last five years Performance exceeded the peer group average during the past three years
Slide 14: Property Operations Update
Property Operations Update Occupancy appears to have bottomed in April at 92.6% Average occupancy improved to 92.9% in May, and ended the month at 93.4%
Slide 15: Property Operations 2009 Plan
Property Operations 2009 Plan - Two Primary Objectives: Increased Resident Retention - Added Service Touch Points Maintain >90% Customer Experience Scores Increased Frequency of Resident Communication - Well Ahead of Upcoming Lease Expirations Cost Containment - Not a Reduction in Service Aggressive
Slide 16: Capital Expenditures and Redevelopment
Capital Expenditures and Redevelopment Invested approximately $2.2 billion in the portfolio since 2005 Capital expenditures of $1,300-$1,800 per door per year Redevelopment investments of $200M - $300M per year from 2005 to 2008
Slide 17: Liquidity and Balance Sheet
Liquidity and Balance Sheet
Slide 18: Financing Strategy
Financing Strategy Aimco is financed primarily with non-recourse property debt with a weighted average maturity of 9.6 years and weighted average interest rate of 5.54% Perpetual preferred stock and preferred partnership units carry a weighted average rate of 8% Recourse bank debt consists of: $350
Slide 19: Property Debt
Property Debt Property debt is long term with a weighted average maturity of 9.6 years Laddered maturities reduce refunding risk Aimco refinances property debt on a routine basis in our ordinary course of business Accelerated refinancing of maturing debt during 1Q 2009 and expect to refinance balanc
Slide 20: Property Debt Refinancing Update
Property Debt Refinancing Update Refinanced approximately $100M during 1Q09 By the end of 2Q09, expect to refinance or payoff all but $101.5M of the loans maturing through 2011 $101.5M of debt not expected to be refinanced before maturity due to prohibitive prepayment penalties and/or joint venture
Slide 21: Covenant Risk
Covenant Risk 1Q09 TTM Debt Service Coverage ratio of 1.69x vs. 1.5x covenant(1) 1Q09 TTM Fixed Charge Coverage ratio of 1.47x vs. 1.3x covenant(1) An 11% decline in total NOI could create a covenant issue However, would require Same Store Sales NOI to decrease by approximately 20% given that: Redev
Slide 22: 2009 Objectives & Outlook
2009 Objectives & Outlook
Slide 23: 2009 Outlook
2009 Outlook Guidance does not include dilutive impact of potential future asset sales Approximately 50% of investment management revenue is generated from recurring sources
Slide 24: 2009 Objectives
2009 Objectives Continue to provide quality, well-maintained apartment homes Superior customer service to our residents Emphasis on customer retention and disciplined expense control Continue to improve portfolio quality Sell up to $2 billion of non-target conventional and affordable assets Consider
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