Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (September 2023)
39 slides from Apartment Investment And Management's investor presentation, Sep 13, 2023
Slide 1: Investor Presentation September 2023
INVESTOR PRESENTATION September 2023
Slide 2: Contents
CONTENTS 2 AIV NYSE LISTED 29 YEARS PUBICLY TRADED $1.2Bn MARKET CAPITALIZATION1 39% TOTAL SHAREHOLDER REURN SINCE 2020 SPIN-OFF1 PRESENTATION TOPICS: Apartment Sector – Continued tailwinds given supply and demand imbalance About Aimco – Apartment specialists with a deep history and differentiated s
Slide 3: Apartment Sector: A Compelling Opportunity
APARTMENT SECTOR: A COMPELLING OPPORTUNITY
Slide 4: Apartment Performance
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition APARTMENT PERFORMANCE Long-term total return performance of publicly traded apartment REITs has been strong. An investment 20 years ago in the Nareit Apartment Index would be worth more than the same i
Slide 5: Apartment Supply and Demand
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition APARTMENT SUPPLY AND DEMAND 5 600,000 UNITS NEEDED TO MEET CURRENT DEMAND DUE TO UNDERBUILDING DURING THE GREAT FINANCIAL CRISIS 3.7 million UNITS NEEDED BY 2035 TO MEET EXPECTED DEMAND FROM DEMOGRAPHI
Slide 6: Inflation Protection
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition INFLATION PROTECTION 6 On average, apartments reprice annually allowing property owners to adjust pricing to market conditions, providing protection to rising costs from inflation Average Lease Length
Slide 7: Experienced Investment Managers
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition EXPERIENCED INVESTMENT MANAGERS 7 Minimizing Risk and Maximizing Returns How to project future results? Disciplined and Informed Underwriting EXPERIENCED REAL ESTATE INVESTMENT MANAGERS ARE A DIFFERENT
Slide 8: About Aimco: Apartment Specialists
ABOUT AIMCO: APARTMENT SPECIALISTS
Slide 9: Aimco History
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition AIMCO HISTORY I P O Apartment Investment and Management Company becomes publicly traded on the New York Stock Exchange. G R O W T H Through portfolio and corporation M&A, Aimco grows to become one of t
Slide 10: 2020 Spin-Off
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition 2020 SPIN-OFF Stabilized Opportunistic Alternative Stabilized Opportunistic and Alternative Investments The 2020 spin-off of AIR Communities was completed in December 2020, with 88% of the market capit
Slide 11: Aimco Team
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition AIMCO TEAM 11 Aimco maintained a team of highly engaged and deeply experienced real estate professionals Executive team has an average Aimco tenure of 20 YEARS Development team has collectively built o
Slide 12: Investment Strategy: Total Return Focus
INVESTMENT STRATEGY: TOTAL RETURN FOCUS
Slide 13: Aimco Investments
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition AIMCO INVESTMENTS 13 Aimco couples outsized growth prospects from opportunistic investments with the safety of a stable apartment portfolio resulting in a nimble platform that can move the needle quick
Slide 14: Target Allocation
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition TARGET ALLOCATION 14 Value Add & Core & Core Plus Alternative Investments Cash, Hedges, & Opportunistic Real Estate Real Estate Other Net Assets AIMCO ALLOCATION BY SEGMENT & SECTOR OVER TIME 70% 60% 5
Slide 15: Recent Performance
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition RECENT PERFORMANCE 15 2900 on First 135 Units – Seattle, WA Cedar Rim 104 Units – Renton, WA Pathfinder Village 246 Units – Fremont, CA STABILIZED COMMUNITIES Aimco Stabilized Portfolio Delivered Stron
Slide 16: Current Portfolio: Balancing Growth and Safety
CURRENT PORTFOLIO: BALANCING GROWTH AND SAFETY
Slide 17: Stabilized Portfolio
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition STABILIZED PORTFOLIO 17 Northeast, 49% Central, 28% West Coast, 2% Southeast, 21% Royal Crest Estates (Nashua) 902 Units – Nashua, NH Plantation Gardens 372 Units – Plantation, FL Evanston Place 190 Un
Slide 18: Stabilized Portfolio Performance Metrics
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition 2023 2Q YTD RESULTS 2023 OUTLOOK 97.1% Average Daily Occupancy 7.75% - 8.75% Stabilized Revenue Growth 10.4% Revenue Growth 8.0% - 9.0% Stabilized Expense Growth 11.4% NOI Growth 7.5% - 9.0% Stabilized
Slide 19: Active Developments
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition ACTIVE DEVELOPMENTS 19 The Benson Hotel & Faculty Club Anschutz Medical Campus – Aurora, CO 106-Key Placemaking Development Construction Complete – $148 July RevPAR Oak Shore Corte Madera, CA 24-Home S
Slide 20: Target Markets
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition TARGET MARKETS 20 OPTIMIZING GROWTH THROUGH GEOGRAPHIC FOCUS Aimco will focus new investment activity within three target markets where fundamentals are sound, the opportunity set is large and Aimco ha
Slide 21: Future Pipeline
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition Flying Horse Fitzsimons 4 Bioscience Fitzsimons add’l phases Strathmore Phase 2 Hamilton House 3333 Biscayne 300 Broward One Edgewater 200 Broward Flagler Village Phase 1 Flagler Village add'l phases B
Slide 22: Select Pipeline Highlights: Brickell Assemblage
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition FUTURE PIPELINE 22 SELECT PIPELINE HIGHLIGHTS Brickell Assemblage Miami, Florida Acres: 4.25 | GSF of Development: ~3,200,000 | Green Street Submarket Grade: A+ Aimco’s Financial Interest: Aimco is sol
Slide 23: Select Pipeline Highlights: Fitzsimons
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition FUTURE PIPELINE 23 SELECT PIPELINE HIGHLIGHTS Source: U.S. Census Bureau 2021 MSA Data, University of Colorado, Company Records Fitzsimons Anschutz Medical Campus – Aurora, Colorado Acres: 10.0 | GSF o
Slide 24: Select Pipeline Highlights: Flagler Village
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition FUTURE PIPELINE 24 SELECT PIPELINE HIGHLIGHTS Source: U.S. Census Bureau 2021 MSA Data, Company Records Flagler Village Fort Lauderdale, Florida Acres: 8.8 | GSF of Development: ~2,400,000 | Green Stre
Slide 25: Alternative Investments
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition 25 Aimco’s current alternative investments include a mezzanine loan secured by a stabilized apartment property with an option to participate in future apartment development, as well as three passive eq
Slide 26: Balance Sheet & Capital Allocation: A Position of Strength
BALANCE SHEET & CAPITAL ALLOCATION: A POSITION OF STRENGTH
Slide 27: Balance Sheet Solid with Limited Exposure
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition BALANCE SHEET 27 SOLID WITH LIMITED EXPOSURE Aimco primarily utilizes non-recourse property-level debt and construction loans. [1] Maturities presented at Aimco’s June 30, 2023 share of outstanding bal
Slide 28: Utilizing 3rd Party Equity to Fund Projects
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition UTILIZING 3rd PARTY EQUITY TO FUND PROJECTS AND SCALE PROJECT LEVEL FINANCING Hypothetical Project Example $ in millions Aimco 100% of Development Equity Aimco 20% GP with 80% LP Capital Uses Aimco Lan
Slide 29: Near-Term Capital Allocation
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition ALLOCATE AIMCO CAPITAL ACCRETIVELY NEAR-TERM CAPITAL ALLOCATION 29 DEVELOPMENT FUNDING selectively advance existing pipeline projects projecting ~$70M of equity invested in 2023 RETURN OF CAPITAL TO SH
Slide 30: Investment Thesis: Value Proposition
INVESTMENT THESIS: VALUE PROPOSITION
Slide 31: Net Asset Value Valuation Building Blocks
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition NET ASSET VALUE 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 earn
Slide 32: Value Proposition: Maximizing and Unlocking Shareholder Value
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition VALUE PROPOSITION 32 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 strateg
Slide 33: Key Takeaways from Presentation
Apartment Sector Balance Sheet About Aimco Current Portfolio Investment Strategy Value Proposition TAKEAWAYS 33 KEY TAKEAWAYS FROM PRESENTATION: Apartment Sector is well positioned Aimco has the team, strategy, portfolio and balance sheet to deliver strong results Opportunity to invest in growth at
Slide 34: Appendix
APPENDIX
Slide 35: Aimco Leadership
AIMCO LEADERSHIP 35 Jennifer Johnson EVP, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL 19 years with Aimco Wes Powell PRESIDENT & CHIEF EXECUTIVE OFFICER 19 years with Aimco Lynn Stanfield EVP & CHIEF FINANCIAL OFFICER 22 years with Aimco Lee Hodges SENIOR VICE PRESIDENT SOUTHEAST REGION 8 Years wi
Slide 36: 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 37: Pipeline Investments
PIPELINE INVESTMENTS 37 Pipeline Project Summaries As of June 2023 (unaudited) Estimated / Currently Planned [1] Project Location Project Name / Description Acreage Gross Sq Ft Multifamily Units Leasable Commercial Sq Ft Earliest Vertical Construction Start Southeast Florida 556-640 NE 34th Street (
Slide 38: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 38 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
Slide 39: Forward Looking Statement
Forward Looking Statement 39 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 n
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