Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Nareit REITweek 2023 Conference
41 slides from Apartment Investment And Management's conference presentation, Jun 5, 2023
Slide 1: Creating Value – Nareit REITweek 2023 Conference
INVESTOR PRESENTATION CREATING VALUE Nareit REITweek 2023 Conference June 6-8, 2023 (ebErereesrceeeseeece’ be, a :
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not
Slide 3: Key takeaways from the following presentation
Key takeaways from the following presentation: Aimco offers significant growth opportunities through the combination of its geographically diversified portfolio of multifamily properties, its high-quality development pipeline and its strategic approach to investment management. Aimco is committed to
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Slide 5: Balance Sheet, Near Term Capital Allocation, Governance
Balance Sheet Near Term Capital Allocation Governance Ample liquidity with access to $336 million of cash on hand and capacity on its revolving credit facility Complete Active Projects Highly regarded and reconstituted Board with an average tenure of only two years Limited near-term maturities with
Slide 6: Aimco Mission
AIMCO MISSION To make real estate investments, primarily focused on the multifamily sector within targeted U.S. markets, where outcomes are enhanced through our human capital and substantial value is created for investors, teammates, and the communities in which we operate. WHAT WE INVEST IN: Real e
Slide 7: 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. 7 Current Allocation Investment in Value Add and Opportunistic Real Estate Provides outsized gro
Slide 8: Executing on Aimco Strategy – Accomplishments
Viitiisidi POPOT COC #ycyay cy) a) EEE aI SK AAA EXECUTING ON AIMCO STRATEGY ACCOMPLISHMENTS: Aimco
Slide 9: Executing on Strategy
Maximizing Real Estate Investment Performance Prudent and Opportunistic Capital Allocation Maintaining a Strong Balance Sheet and Accessing Capital Markets Simplification of the Business EXECUTING ON STRATEGY [1] Performance measured from the start of when-issued trading on December 14, 2020, throug
Slide 10: Executing on Strategy: Real Estate Investments
EXECUTING ON STRATEGY The Fremont 253-Unit Development 707 Leahy 110-Unit Major Redevelopment Prism 136-Unit Development Flamingo Point North 366-Unit Major Redevelopment The Benson Hotel & Faculty Club 106-Key Placemaking Development Oak Shore 24-Home Single Family Rental Development The Hamilton 2
Slide 11: Active Project Summaries
EXECUTING ON STRATEGY REAL ESTATE INVESTMENTS Active Project Summaries As of 1Q 2023 (dollars in millions) (unaudited) Number of units approved for development or redevelopment Land Cost/ Leasehold Value Direct Investment Expected NOI Stabilization [2] Expected NOI Stabilization [3] Planned To-Date
Slide 12: Select Stabilized Operating Communities
EXECUTING ON STRATEGY REAL ESTATE INVESTMENTS Royal Crest Estates (Nashua) 902 Units – Nashua, NH Select Stabilized Operating Communities Plantation Gardens 372 Units – Plantation, FL Evanston Place 190 Units – Evanston, IL The Milan 42 Units – New York, NY Wexford Village 264 Units – Worcester, MA
Slide 13: Real Estate Portfolio: Stats, 1Q Results and 2023 Outlook
PORTFOLIO STATS 2023 1Q RESULTS 2023 OUTLOOK 64% 26% 10% Class B Class C+ Class A 98.0% Average Daily Occupancy 5% - 7% Stabilized Revenue Growth 19.5% 1Q Rent-to-Income Ratio 11.4% Revenue Growth 5.25% - 7.25% Stabilized Expense Growth $2,227 1Q Avg Monthly Revenue per Home 13.1% NOI Growth 5% - 7%
Slide 14: Prudent and Opportunistic Capital Allocation
$1Bn of Asset Dispositions at Favorable Pricing $669M of leasehold development assets monetized at more than $750k/unit $284M from the sale of four assets (exiting Seattle and reducing California exposure) at a premium to our internal NAV estimate and by selling a partial interest in our passive IQH
Slide 15: Improving the Balance Sheet
EXECUTING ON STRATEGY IMPROVING THE BALANCE SHEET Since the spin off of AIR Communities, Aimco proactively fortified its balance sheet ahead of what appeared to be worsening conditions in the debt markets. As of March 31, 2023, Aimco had: Lowered total leverage[1] from $1.5Bn[2] to $1.1Bn Limited in
Slide 16: Alternative Investments: Parkmerced Loan Sale Update
EXECUTING ON STRATEGY ALTERNATIVE INVESTMENTS Parkmerced Loan Sale Agreement Update In February 2023, Aimco entered into an agreement to sell the Parkmerced mezzanine loan for $167.5 million. The initial $5 million deposit received by the purchaser became nonrefundable in April 2023. On May 30, 2023
Slide 17: Plan: Optimizing Growth
CREATING VALUE PLAN: OPTIMIZING GROWTH
Slide 18: Allocate Aimco Capital Accretively
ALLOCATE AIMCO CAPITAL ACCRETIVELY OPTIMIZING GROWTH DEVELOPMENT FUNDING selectively advance pipeline projects RETURN OF CAPITAL TO SHAREHOLDERS share repurchases and dividend payments DEBT REDUCTION providing reduced costs and optionality INVEST CAPITAL PRUDENTLY balancing growth and return of capi
Slide 19: Target Allocation by Segment & Sector
OPTIMIZING GROWTH 2021 Allocation AIMCO TARGET ALLOCATION BY SEGMENT & SECTOR Approximate Current Allocation Target Allocation Target Leverage Avg. Annualized Project-Level Return on Equity [2] Value Add & Opportunistic Real Estate 35% 40% - 60% 65% ~18% Core & Core Plus Real Estate [1] 45% 35% - 45
Slide 20: Simplifying Through Geographic Focus
OPTIMIZING GROWTH SIMPLIFYING THROUGH GEOGRAPHIC FOCUS 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. Source: U.S. Census Bureau 2021 MSA Data, Univ
Slide 21: Execute on Pipeline Investments
Benson Hotel and Faculty Club Flying Horse Fitzsimons 4 Bioscience Fitzsimons add’l phases Oak Shore Upton Place Strathmore Phase 1 Strathmore Phase 2 The Hamilton Hamilton House 3333 Biscayne 300 Broward One Edgewater 200 Broward Flagler Village Phase 1 Flagler Village add'l phases Brickell Assembl
Slide 22: Pipeline Details: Brickell Assemblage
PIPELINE DETAILS BRICKELL ASSEMBLAGE MIAMI / FL Acres: 4.25 GSF of Development: ~3,000,000 Green Street Submarket Grade: A+ Aimco’s Financial Interest: Aimco is sole owner of Yacht Club Apartments and 1001 Brickell Bay Drive. Nearby Transactions: 2.5-acre waterfront parcel sold in April 2022 for $36
Slide 23: Pipeline Details: Edgewater Assemblage
PIPELINE DETAILS EDGEWATER ASSEMBLAGE MIAMI / FL Acres: 8.3 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. Site
Slide 24: Pipeline Details: Flagler Village
PIPELINE DETAILS FLAGLER VILLAGE FORT LAUDERDALE / FL Acres: 8.8 GSF of Development: ~3,000,000 Green Street Submarket Grade: A- Aimco’s Financial Interest: Aimco is the sole owner. Amendments to the previous owner’s plans have been submitted with the City. To meet downtown Fort Lauderdale housing d
Slide 25: Pipeline Details: Broward
PIPELINE DETAILS BROWARD FORT LAUDERDALE / FL Acres: 3.4 GSF of Development: ~2,100,000 Green Street Submarket Grade: A- Aimco’s Financial Interest: Aimco owns 51% of the venture. The joint venture’s development plans are in final certification, and it expects to be ready to file for a building perm
Slide 26: Pipeline Details: Strathmore Square
PIPELINE DETAILS STRATHMORE SQUARE BETHESDA / MD 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 development with options to increase participation. Located at the Grosvenor-Strathmore sto
Slide 27: Pipeline Details: Fitzsimons Anschutz Medical Campus
PIPELINE DETAILS FITZSIMONS ANSCHUTZ MEDICAL CAMPUS AURORA / CO Acres: 10.0 GSF of Development: ~2,100,000 Green Street Submarket Grade: B+ Aimco’s Financial Interest: Aimco is the sole owner of options to purchase the only multifamily parcels on the campus. Aimco recently entered an option agreemen
Slide 28: Utilizing 3rd Party Equity to Fund Projects and Scale
UTILIZING 3rd PARTY EQUITY TO FUND PROJECTS AND SCALE OPTIMIZING GROWTH Hypothetical Project Example Aimco 100% of Development Equity Aimco 20% GP with 80% LP Capital Uses Aimco Land Basis $35 $35 Development Costs $180 $180 Development Fee (3%) $5 $5 Closing Costs (2%) $4 $4 Accrued Interest $16 $1
Slide 29: Investment Thesis: Value Proposition
CREATING VALUE INVESTMENT THESIS: VALUE PROPOSITION
Slide 30: Valuation Building Blocks
VALUE PROPOSITION VALUATION BUILDING BLOCKS Aimco provides a summary of the items needed to support your calculation of an estimate of Net Asset Value (NAV) in Supplement Schedule 8 in our quarterly earnings release. The building blocks of Aimco’s valuation as of March 31, 2023, are: Source: Company
Slide 31: Committed to Maximizing and Unlocking Shareholder Value
VALUE PROPOSITION COMMITTED TO MAXIMIZING AND UNLOCKING SHAREHOLDER VALUE There can be no assurance that the ongoing review will result in any particular transaction or transactions or other strategic changes or outcomes and the timing of any such event is similarly uncertain. The Company does not i
Slide 32: ESG: Excellent Corporate Citizenship
ESG EXCELLENT CORPORATE _ CITIZENSHIP |
Slide 33: Excellent Corporate Citizenship: Management Team
EXCELLENT CORPORATE CITIZENSHIP Jennifer Johnson EVP, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL Wes Powell PRESIDENT & CHIEF EXECUTIVE OFFICER Lynn Stanfield EVP & CHIEF FINANCIAL OFFICER Lee Hodges SENIOR VICE PRESIDENT SOUTHEAST REGION 7 Years with Aimco Previously with: Peebles Development Th
Slide 34: Aimco Directors
James P. Sullivan FORMER PRESIDENT, GREEN STREET ADVISORY GROUP Appointed 2022 Wesley Powell PRESIDENT, CHIEF EXECUTIVE OFFICER Appointed 2020 Deborah Smith CO-FOUNDER AND CEO, THE CENTERCAP GROUP Appointed 2021 Jay Paul Leupp CO-FOUNDER, MANAGING PARTNER AND SENIOR PORTFOLIO MANAGER, REAL ESTATE SE
Slide 35: Committed to Best-in-Class Governance
EXCELLENT CORPORATE CITIZENSHIP COMMITTED TO BEST-IN-CLASS GOVERNANCE Aimco’s Board of Directors is committed to shareholder friendly governance. Aimco’s Board has taken actions to: Opt Out of MUTA (Maryland Unsolicited Takeover Act) including those that would otherwise allow it to re-classify the B
Slide 36: Highly Engaged Team and Social Responsibility
EXCELLENT CORPORATE CITIZENSHIP HIGHLY ENGAGED TEAM Record 4.52 (out of 5 stars) team engagement for 2022: 92% employee response rate SUPPORTING OUR COMMUNITIES WITH PARTNERSHIPS, OPPORTUNITIES FOR TEAMMATES TO VOLUNTEER Providing teammates with 15 hours of paid volunteer hours through Aimco Cares P
Slide 37: Environmental Stewardship
EXCELLENT CORPORATE CITIZENSHIP BUILDING COMMUNITIES THROUGH DESIGN AND PLANNING ENVIRONMENTAL STEWARDSHIP: COMMITMENT TO CONSERVATION & SUSTAINABILITY Inaugural Reporting to Task Force on Climate-Related Financial Disclosures (TCFD) in 2022 Corporate Responsibility Report In 2022, Aimco conducted c
Slide 38: Appendix
Aimco APPENDIX
Slide 39: Asset List
ASSET LIST Operating Apartment Communities Operating Office Building Property Name Location Apartment Homes Property Name Location Square Feet 118-122 West 23rd Street New York, NY 42 1001 Brickell Bay Drive Miami, FL 300k 173 E. 90th Street New York, NY 72 237-239 Ninth Avenue New York, NY 36 Activ
Slide 40: Pipeline Project Summaries
PIPELINE INVESTMENTS Pipeline Project Summaries As of May 2023 (unaudited) Project Location Project Name / Description Estimated / Currently Planned [1] Acreage Gross Sq Ft Multifamily Units Leasable Commercial Sq Ft Earliest Vertical Construction Start Southeast Florida 556-640 NE 34th Street (Miam
Slide 41: 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; casualties; p
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