Apartment Investment And Management Company · NYSE:AIV

Apartment Investment And Management — Investor Presentation (June 2017)

20 slides from Apartment Investment And Management's investor presentation, Jun 5, 2017

  1. Slide 1: Net Asset Value Presentation as of March 31, 2017

    NET ASSET VALUE PRESENTATION AS OF MARCH 31, 2017 1 Indigo Luxury Apartment Homes Redwood City, CA Indigo Luxury Apartment Homes Redwood City, CA Ocean House on Prospect La Jolla, California Park Towne Place, Philadelphia, PA Calhoun Beach Club, Minneapolis, MN Calhoun Beach Club Apartments, Minneap

  2. Slide 2: General Disclosures

    AIMCO NET ASSET VALUE PRESENTATION 2 GENERAL DISCLOSURES The information provided in this presentation is intended to assist users in estimating Aimco’s Net Asset Value per share. This is not an offer to sell securities and does not constitute legal, tax, investment or other professional advice on a

  3. Slide 3: General Disclosures (continued)

    AIMCO NET ASSET VALUE PRESENTATION 3 GENERAL DISCLOSURES (CONTINUED) This Net Asset Value per share information is intended to measure Aimco’s value as a going concern, consistent with International Financial Reporting Standards (“IFRS”), and is not necessarily representative of the amount a stockho

  4. Slide 4: General Disclosures (continued)

    AIMCO NET ASSET VALUE PRESENTATION 4 GENERAL DISCLOSURES (CONTINUED) • Insurance risk, including the cost of insurance; and natural disasters and severe weather such as hurricanes; and • Legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outco

  5. Slide 5: Valuation Methodology

    AIMCO NET ASSET VALUE PRESENTATION 5 VALUATION METHODOLOGY Real Estate - Aimco estimated the value of its communities using methods management believes to be appropriate based on the characteristics of the communities. For valuation purposes, Aimco segregated its portfolio into the following categor

  6. Slide 6: Valuation Methodology (continued)

    AIMCO NET ASSET VALUE PRESENTATION 6 VALUATION METHODOLOGY (CONTINUED) Asset Management Business - represents the present value of the expected future cash flows from various low-income housing tax credit partnerships. Aimco provides asset management and other services to these partnerships and rece

  7. Slide 7: Valuation Methodology (continued)

    AIMCO NET ASSET VALUE PRESENTATION 7 VALUATION METHODOLOGY (CONTINUED) Other Items of Note • Real estate values are based on Aimco's current uses and most importantly do not include the value of unused or underused land or air rights. • Real estate values do not take into consideration transaction c

  8. Slide 8: March 31, 2017 Estimated Net Asset Value: $51 per share

    AIMCO NET ASSET VALUE March 31, 2017 Estimated Net Asset Value: $51 per share* 8 $72 +$1 -$22 Fair Value of Real Estate Fair Value of Other Tangible Assets, Liabilities and Preferred Equity, Net Cash and restricted cash + Other tangible assets + Asset Management Business - Other tangible liabilities

  9. Slide 9: Estimated Fair Value of Real Estate: $72 per share

    AIMCO NET ASSET VALUE March 31, 2017 Estimated Fair Value of Real Estate: $72 per share* 9 * Refer to additional details and disclosures beginning on page 10. Redevelopment Portfolio Cash flows discounted from property stabilization to March 31, 2017. Lease-Up Portfolio Cash flows discounted from pr

  10. Slide 10: Build-up: Fair Value of Real Estate as of March 31, 2017

    AIMCO NET ASSET VALUE BUILD-UP 10 Fair Value of Real Estate as of March 31, 2017 ($M) Refer to Footnotes beginning on page 13. Stabilized Portfolio NOI, less management fee 511$ (1) NOI cap rate 5.2% (2) Stabilized Portfolio Value 9,827$ Non-Stabilized Portfolio Redevelopment communities under const

  11. Slide 11: Build-up: Fair Value of Other Assets, Debt and Other Liabilities

    AIMCO NET ASSET VALUE BUILD-UP 11 Fair Value of Other Assets, Debt and Other Liabilities as of March 31, 2017 ($M) Refer to Footnotes beginning on page 13. Consolidated Amounts as Reported Ownership Adjustments (6) Fair Value Adjustments Adjusted Amounts Other Tangible Assets Cash and cash equivalen

  12. Slide 12: Build-up: Net Asset Value as of March 31, 2017

    AIMCO NET ASSET VALUE BUILD-UP 12 Net Asset Value as of March 31, 2017 ($M, except per share amounts) Refer to Footnotes beginning on page 13. Fair Value of Real Estate 11,959$ Fair Value of Other Tangible Assets, Liabilities and Preferred Equity, Net 93$ Fair Valu of Debt (3,689)$ Net Asset Value 8

  13. Slide 13: Footnotes

    AIMCO NET ASSET VALUE DISCLOSURES 13 Footnotes 1. Represents Stabilized Portfolio Property NOI for the three months ended March 31, 2017, annualized, and adjusted for an assumed property management fee. Market management fees range between 1.5% and 3.0% with larger, higher quality portfolios at the

  14. Slide 14: Footnotes (continued)

    AIMCO NET ASSET VALUE DISCLOSURES 14 Footnotes (continued) 1. (continued) a. Represents revenues and expenses related to six redevelopment communities currently under construction: Park Towne Place and The Sterling, both located in Center City Philadelphia; Yorktown, located in Lombard, Illinois; Th

  15. Slide 15: Footnotes (continued)

    AIMCO NET ASSET VALUE DISCLOSURES 15 Footnotes (continued) 2. Represents Aimco's estimated current NOI cap rate for its Stabilized Portfolio, which was calculated by Aimco on a property-by-property basis, based primarily on information published by CBRE in its 2H 2016 Cap Rate Survey. CBRE is a nati

  16. Slide 16: Footnotes (continued)

    AIMCO NET ASSET VALUE DISCLOSURES 16 Footnotes (continued) 2. (continued) a. Based on the quality of its communities and locations within the market, Aimco estimates the current NOI cap rates for its Chicago and San Diego portfolios are slightly higher than the high end of the range of cap rates ind

  17. Slide 17: Footnotes (continued)

    AIMCO NET ASSET VALUE DISCLOSURES 17 Footnotes (continued) 3. Represents the value of six communities currently under redevelopment: Park Towne Place and The Sterling, both located in Center City Philadelphia, Pennsylvania; Saybrook Pointe, located in San Jose, California; Pacifica Park, located in

  18. Slide 18: Footnotes (continued)

    AIMCO NET ASSET VALUE DISCLOSURES 18 5. Represents the expected sales price of communities under contract for sale; as well as certain land and non-multifamily real estate valued at cost. 6. Represents adjustments to reflect Aimco’s share of the financial results of unconsolidated real estate partne

  19. Slide 19: Footnotes (continued)

    AIMCO NET ASSET VALUE DISCLOSURES 19 10. Represents the fair value of Aimco's preferred stock, which is estimated by Aimco as the closing stock price on March 31, 2017, less accrued dividends. Such accrued dividends are assumed to be accounted for in the closing stock price and these amounts are als

  20. Slide 20: Definitions

    DEFINITIONS 20 AIMCO OPERATING PARTNERSHIP (OP): AIMCO Properties, L.P., a Delaware limited partnership, is the operating partnership in Aimco's UPREIT structure. Aimco owns approximately 95% of the common partnership units of the Aimco OP. PORTFOLIO QUALITY RATINGS: Aimco measures portfolio quality

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