Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (May 2012)
17 slides from Apartment Investment And Management's investor presentation, May 21, 2012
Slide 1: Investor Presentation May 2012
Investor Presentation May 2012 2900 on First, Seattle, WA Flamingo South Beach, Miami, FL Elm Creek, Elmhurst, IL The Palazzo at Park La Brea, Los Angeles, CA Park Towne Place, Philadelphia, PA Sterling Apartments, Philadelphia, PA
Slide 2: Company Overview
Bimsoly, Company Overview
Slide 3: Company Overview
Initial Public Offering completed in 1994 with $315 million capitalization. Aimco doubled in size every 18 months from 1994 - 2002 through several corporate mergers and large portfolio acquisitions. Aimco has a regular process to improve the quality and geographic focus of its portfolio through the
Slide 4: Leadership Team
Ernie Freedman EVP & CFO Keith Kimmel EVP Property Operations Lisa Cohn EVP & General Counsel Miles Cortez EVP & CAO Acquisitions Dispositions John Bezzant EVP Transactions Dan Matula EVP Redevelopment & Construction Services Legal Human Resources Risk Administration Government Relations Communicati
Slide 5: Aimco Value Creation
Aimcots, Aimco Value Creation
Slide 6: Aimco 2012 Plan
Aimco 2012 Plan Free Cash Flow is defined as property NOI less assumed capital replacement expenditures of $850 per unit. Leverage metrics based on annualized projected 4Q 2012 EBITDA.
Slide 7: Property Operations Strategy
Property Operations Strategy Low turnover strategy contributes to NOI outperformance Low turnover strategy: Customer retention is key to greater NOI contribution and more predictable operating results Aimco's annual turnover of 48% is significantly lower than an apartment industry average of 55% - 6
Slide 8: 2012 Plan: Property Operations
2012 Plan: Property Operations Property operations are on track for a solid year
Slide 9: Portfolio Strategy
Our target customers are: Aged 24 - 40 ? high propensity to rent College-educated ? strongest job and earnings growth, lowest unemployment, annual income of $60,000 - $80,000 Single ? homeownership is a lifestyle choice; not yet motivated by marriage, children Portfolio Strategy And they want to liv
Slide 10: 2012 Plan: Portfolio Dispositions and Investments
Aimco Share: $550 - $650M Conventional Properties ($500-$600M) Sell 25+ properties with average revenues/unit < $700 Year-end 2012 portfolio: Average revenue /unit ? 9% to $1,370 NOI margin ? 1.5% to 64% Free Cash Flow margin* ? 3% to 58% FCF margin ? at rate twice that of NOI margin: Capital replac
Slide 11: Redevelopment Strategy
Redevelopment Strategy Pipeline of opportunities to generate higher risk-adjusted returns Redevelopment philosophy: Land in quality locations appreciates over time Older assets in quality locations provide opportunity for redevelopment Redevelopment is a short-cycle business making it lower-risk tha
Slide 12: Vacant Redevelopment Properties
Vacant Redevelopment Properties The Preserve at Marin, Corte Madera, CA (126 units) Today After Redevelopment Lincoln Place, Venice, CA (696 existing units + 99 new) Today After Redevelopment Pacific Bay Vistas, San Bruno, CA (308 units) Today After Redevelopment
Slide 13: 2012 Plan: Redevelopment
2012 Plan: Redevelopment Redevelopment plan is on track Flamingo South Beach $4M exterior project Plantation Gardens $6M ($16K/unit)
Slide 14: Balance Sheet Strategy
Balance Sheet Strategy Balance sheet designed for safety Leverage strategy: Limit entity risk by avoiding recourse debt, of which Aimco has very little Reduce repricing risk by using fixed-rate loans and refinancing nearer-term maturities to lock in current interest rates Reduce refunding risk by la
Slide 15: 2012 Plan: Balance Sheet
2012 Plan: Balance Sheet De-levering plan is on track, may accelerate Leverage metrics based on projected annualized 4Q 2012 EBITDA. Aimco's leverage will continue to be comprised of long-term, fixed rate, amortizing property debt and perpetual preferred securities; however, the amount of property d
Slide 16: 2012 Plan: Earnings & Dividend
2012 Plan: Earnings & Dividend Increasing earnings, higher dividends FFO $1.76 - $1.84 AFFO $1.24 - $1.34 Dividend* $0.20 per quarter * The Aimco Board intends to increase the company's quarterly dividend 11%, from $0.18 to $0.20 per share, at its next meeting in July. On an annualized basis, this i
Slide 17: Forward-Looking Statements and Other Information
Forward-Looking Statements and Other Information This presentation contains forward-looking statements within the meaning of the federal securities laws, including statements regarding projected results and specifically: use of proceeds from May 2012 equity issuance; projected 2012 operating results
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