Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Citi 2018 Global CEO Conference
23 slides from Apartment Investment And Management's conference presentation, Mar 2, 2018
Slide 1: Citi 2018 Global CEO Conference
Citi 2018 Global CEO Conference March 2018 Waterways Village Aventura, FL
Slide 2: Aimco Quick Facts
2 12 Primary Markets 134 Apartment Communities AIMCO QUICK FACTS AIMCO seeks to earn LONG-TERM RETURNS on equity that are SUPERIOR to those of the equity REIT and S&P 500 indices by investing in a portfolio of high quality multifamily communities, DIVERSIFIED by both geography and price point, whose
Slide 3: Consistent Growth Over Time; Better Than Peer Average
3 AIMCO QUICK FACTS Consistent Growth Over Time; Better Than Peer Average (1) Peer group consists of AVB, CPT, EQR, ESS, MAA and UDR. Source for peer simple average: SNL Financial. (2) Source for peer average: Company financials. (3) Source for peer simple average: KeyBanc Capital Markets in its Lea
Slide 4: Leadership Team
4 LEADERSHIP TEAM Paul Beldin EVP & Chief Financial Officer 9 Years John Bezzant EVP & Chief Investment Officer 11 Years Lisa Cohn EVP & General Counsel 15 Years Miles Cortez EVP & Chief Administrative Officer 16 Years Steve Crane Real Estate Tax 14 Years Matt Eilen Property Operations Finance 8 Yea
Slide 5: Strategic Objectives
5 STRATEGIC OBJECTIVES Operational Excellence Redevelopment Focus on Customer Selection and Satisfaction to Produce Predictable and Growing Free Cash Flow(1) • Lower resident turnover through careful customer selection and emphasis on measured customer satisfaction o Median income of new residents i
Slide 6: Economic Income
6 ECONOMIC INCOME (1) Represents the compounded annual return assuming a) IPO share price, b) quarterly cash dividends when paid, c) stock dividends declared in 2007-2008 as though sold for cash, and d) NAV as of September 30, 2017. Source for peer NAVs: Green Street Advisors. Peer group consists of
Slide 7: Property Operations Strategy
7 PROPERTY OPERATIONS STRATEGY Focus on Customer Selection and Satisfaction to Produce Predictable and Growing Returns, as Measured by Free Cash Flow. • Aimco residents have an average credit rating of 710, 60 points or ~10% HIGHER than the national average for renters.(1) • Customer SATISFACTION ha
Slide 8: Predictable Revenue Growth
8 Aimco is on track to achieve 2018 Same Store revenue growth guidance of between 2.1% and 3.1%. • Earn-in from 2017 leasing activity contributes 1.2% to 2018 revenue growth. • 2018 blended lease rate increases and changes in occupancy contribute the balance. • QTD results are consistent with the as
Slide 9: Innovation & Productivity
9 INNOVATION & PRODUCTIVITY • Focus on efficient, productive operations: Aimco uses Controllable Operating Expenses ("COE"), which are property level operating expenses before taxes, insurance, and utilities, as a measure of operating efficiency. o For the five years ended 2017, Aimco COE growth is
Slide 10: Redevelopment Strategy
10 REDEVELOPMENT STRATEGY Create Value based on Quality of Location and Excellence of Design by Repositioning Properties Within the Aimco Portfolio and by Constructing New Properties. REDEVELOPMENT APPROACH • Own communities where land value is a high percentage of total value. Lower price-point com
Slide 11: The Sterling Redevelopment Value Creation
11 The Sterling (At Stabilization) PROJECT SCOPE Net investment $72M Total apartment homes 534 VALUE CREATION Redevelopment value creation ($M) $48M As a % of investment 68% Estimated margin expansion 1,000bps NOI yield 7.5% Revenue per apartment home $2,685 REDEVELOPMENT VALUE CREATION CONSISTENT V
Slide 12: What's Next for Redevelopment? Redevelopment Pipeline
12 BAY AREA 707 Leahy Preserve At Marin (Expansion) CHICAGO 100 Forest Place Yorktown Apartments (Expansion) MIAMI Flamingo South Beach (Expanded Scope) Yacht Club at Brickell PHILADELPHIA Chestnut Hall Blossom Row DENVER 21 Fitzsimons (New Phase) Township at Highlands GREATER LA Villas at Park La B
Slide 13: Portfolio Design and Management
13 Enhance rent growth and increase long term capital values through portfolio design emphasizing land value as well as location and submarket selection while reducing revenue volatility by geographic and price point diversification. • Aimco portfolio design includes: • DIVERSIFICATION by geography
Slide 14: Capital Allocation
14 CAPITAL ALLOCATION Aimco has a demonstrated record of enhancing portfolio quality through its portfolio strategy and disciplined capital allocation. • For the five years ended 2017, Aimco invested $2.6B in redevelopment, development, property upgrades, and acquisitions. • Aimco funded the investm
Slide 15: Bent Tree Acquisition
15 BENT TREE ACQUISITION Consistent with our portfolio strategy, the acquisition of Bent Tree in Fairfax County, Virginia increases Aimco investment in submarkets with high growth prospects and in a community with considerable redevelopment potential. • As per Aimco’s paired trade discipline, this a
Slide 16: Portfolio Diversification: Geography
16 PORTFOLIO DIVERSIFICATION • The benefit of a diversified portfolio is that some markets accelerate while other markets decelerate. These offsetting results mute the volatility of local building cycles. • Aimco has a concentration of communities in the coastal, gateway markets, with 57% of its ass
Slide 17: Portfolio Diversification: Price Point
17 PORTFOLIO DIVERSIFICATION (1) Aimco defines apartment community quality as follows: “A” quality communities are those earning rents greater than 125% of localmarket/submarket average; “B” quality communities are those earning rents 90% to 125% of local market/submarket average; “C+” quality commu
Slide 18: Aimco Exposure to New Supply
18 AIMCO EXPOSURE TO NEW SUPPLY • As a result of diversification, Aimco exposure to competitive new supply is primarily limited to its “A” price point communities in submarkets with projected completions of more than 2% of existing stock during 2018 … or approximately 23% of Aimco GAV. • This exposu
Slide 19: High Quality Balance Sheet
19 HIGH QUALITY BALANCE SHEET Aimco limits risk through balance sheet structure, employing low leverage, primarily non-recourse and long-dated property debt, and builds financial flexibility by maintaining ample unused and available credit as well as a pool of properties with substantial value unenc
Slide 20: Team and Culture
20 TEAM AND CULTURE TEAM ENGAGEMENT • Out of hundreds of participating companies, Aimco is one of only a dozen recognized as a "Top Place to Work" in Colorado for each of the past five years. • For the past five years, Aimco team engagement scores, on a 1 to 5 scale, have averaged better than 4. TAL
Slide 21: Environmental, Social, and Governance: Stockholder Outreach
21 ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) STOCKHOLDER OUTREACH • We regularly engage on ESG matters with stockholders holding approximately 2/3 of our outstanding shares. • In response to input gathered through this engagement, Aimco has: o Enhanced its ESG Disclosure o Included a Matrix of D
Slide 22: Environmental, Social, and Governance: Conservation and Community
22 ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) COMMITMENT TO CONSERVATION In 2017, Aimco invested strategically $4.5M in energy conservation. Over the last ten years, Aimco has achieved: COMMITMENT TO COMMUNITY Team members turn their passion for community service into action through Aimco Cares,
Slide 23: Forward Looking Statements & Other Information
23 FORWARD LOOKING STATEMENTS & OTHER INFORMATION 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 2018 results, including but not limited to: P
Apartment Investment & Management — Citi 2018 Global CEO Conference on 6ix