Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — NAREIT Annual Convention November 2014
16 slides from Apartment Investment And Management's conference presentation, Nov 5, 2014
Slide 1: NAREIT Annual Convention November 2014
1 NAREIT ANNUAL CONVENTION NOVEMBER 2014
Slide 2: Strategic Areas of Focus
2 STRATEGIC AREAS OF FOCUS • Peer-leading operating cost control • Above-average resident retention • Above-average property operating results over cycle • Diversified across markets and price points to reduce volatility in revenue • Disciplined capital recycling to upgrade portfolio • Peer-leading
Slide 3: Aimco's business plan provides for significant value creation
3 Aimco’s business plan provides for significant value creation AIMCO VALUE CREATION Portfolio Management • Portfolio quality, as measured by average revenue per unit, increasing at a rate significantly higher than peers. • Free cash flow margins increasing at a rate of 2% per year for the last ten
Slide 4: Property operations: same store expense growth and customer service
4 5.1% 14.1% 14.4% -0.3% 90 95 100 105 110 115 120 2007 2008 2009 2010 2011 2012 2013 2014E Same Store Expense Growth 2008 - 2014E Aimco Peer Avg CPI Aimco COE High customer service, lower turnover philosophy Greater NOI contribution: Renewal lease rate increases are generally higher than new leas
Slide 5: Strong operating performance
5 Strong operating performance PROPERTY OPERATIONS (1) Source: SNL Financial. Peer group consists of AvalonBay, Camden, Equity Residential, Essex, Home Properties, MAA, Post Properties and UDR. (2) Source: Company reports. Individual market peers vary based on geographic exposure. During the most
Slide 6: Maintaining diversification while moving to higher average price point
6 Maintaining diversification while moving to higher average price point Los Angeles expected to outperform in 2014, helping to offset slower Mid Atlantic. Allocation to Coastal California increasing to ~33% in coming years as redevelopments come online. Avoid concentration risk by maintaining
Slide 7: Methodical approach to investment selection
7 Methodical approach to investment selection Portfolio strategy executed through leverage-neutral, tax-efficient paired trades when: the projected Free Cash Flow IRR of an investment is greater than the projected Free Cash Flow IRR of the property sold; and portfolio quality is enhanced. Select
Slide 8: Capital recycling contributes to high rate of Free Cash Flow/AFFO growth
8 Capital recycling contributes to high rate of Free Cash Flow/AFFO growth Sell Affordable properties and lowest rated Conventional properties: Lower average revenues per apartment home; lower NOI margins; located in submarkets with lower projected revenue growth. Invest in redevelopment, proper
Slide 9: Peer-leading rate of increase in average revenues per apartment home
9 Peer-leading rate of increase in average revenues per apartment home PORTFOLIO MANAGEMENT * Peer group consists of AvalonBay, Camden, Equity Residential, Essex, Home Properties, MAA, Post Properties and UDR. Results based on average revenue per Same Store apartment home for the fourth quarter of e
Slide 10: Redevelopment projects ~35% accretive
10 REDEVELOPMENT Redevelopment projects ~35% accretive Chicago Elm Creek ($12M) Philadelphia The Sterling ($25M) Seattle 2900 on First ($15M) Los Angeles Area The Palazzo at Park La Brea ($15M) Lincoln Place ($365M) Bay Area Pacific Bay Vistas ($120M) Dollar amounts represent Aimco’s estimated net i
Slide 11: 2015-2017 Redevelopment Opportunities
11 REDEVELOPMENT Opportunities within existing portfolio support $200-$250M investment annually Chicago Yorktown Apartments (Expansion Approx. 100 Apartments) Manhattan Tempo (200 Apartments) Philadelphia The Sterling (Expanded Scope) Park Towne Place (Expanded Scope) Washington Merrill House (159 A
Slide 12: Quantity of leverage is in line with peers, and declining
12 6.7x 7.1x 4.9x Peer Wt Avg AIV AIV Adj for Refunding Risk Quantity of leverage is in line with peers, and declining We achieved our target for lower leverage two years ahead of plan. Aimco’s Debt and Preferred Equity to EBITDA of 7.1x reflects outstanding balances at 9/30/2014, but overstates
Slide 13: Aimco's balance sheet is the safest in the sector
13 Aimco’s balance sheet is the safest in the sector Limit entity risk by avoiding recourse debt, of which Aimco has very little. Reduce re-pricing risk by using fixed-rate loans. Reduce refunding risk by laddering maturities of long-term, non-recourse, amortizing property loans with little or
Slide 14: Execution of strategy produces high rate of AFFO growth
14 8% 6% 14% 100 120 140 160 180 2010 2011 2012 2013 2014E Earnings and Dividend Growth 2010 - 2014E AFFO per share FFO per share NOI Execution of strategy produces high rate of AFFO growth Strong operating results produce above-peer NOI growth. Decreasing leverage contributes to strong FFO grow
Slide 15: Business & Culture: We live our values
15 We live our values, foster a culture of success and work collaboratively BUSINESS & CULTURE Our Vision To be the best owner and operator of apartment communities, inspired by a talented team committed to exceptional customer service, strong financial performance, and outstanding corporate citizen
Slide 16: Forward-looking statements
16 This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically: forecasts of 2014 financial and operating results; Aimco's development and redevelopment project investm
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