Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (September 2014)
16 slides from Apartment Investment And Management's investor presentation, Sep 10, 2014
Slide 1: Investor Presentation September 2014
1 INVESTOR PRESENTATION SEPTEMBER 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: Same store rental rates and expense growth
4 6. 0% 5. 3% 6. 8% 4. 3% 6. 4% 4. 7% 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 Jul-14 Aug-14 YTD 2014 -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Same Store Rental Rates 2013 - YTD August 2014 Renewal Rent Increases New Lease Rent Increases Weighted Average 4.7% 14.1% 14.2% -2.0% 95 100 105 11
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: Price point and geographic diversification
6 Price Point Diversification (% Conv GAV) Geographic Diversification (% Conv NOI) 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 comi
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: Current redevelopments add approximately $1.50 to NAV per share
10 REDEVELOPMENT Current redevelopments add approximately $1.50 to NAV per share 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 represe
Slide 11: Redevelopment opportunities support $200-$250M investment annually
11 REDEVELOPMENT Opportunities within existing portfolio support $200-$250M investment annually San Diego Ocean House on Prospect (60 Apartments) Chicago Yorktown Apartments (Expansion Approx. 100 Apartments) Manhattan Tempo (200 Apartments) Philadelphia The Sterling (Expanded Scope) Park Towne Plac
Slide 12: Quantity of leverage is in line with peers, and declining
12 6.9x 7.3x 5.1x 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 7.3x reflects outstanding balances at 6/30/2014, 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 BALANCE SHEET (1) Peer group consists of AvalonBay, Camden, Equity Residential, Essex, Home Properties, MAA, Post Properties and UDR. Data as of 6/30/2014. (2) Represents the sum of (a) variable rate debt outstanding and (b) fixed rate debt maturi
Slide 14: Execution of strategy produces high rate of AFFO growth
14 Execution of strategy produces high rate of AFFO growth Strong operating results produce above-peer NOI growth. Decreasing leverage contributes to strong FFO growth. Improving portfolio quality and focus on efficient operations result in higher margins and higher projected revenue growth, w
Slide 15: Business & Culture: We live our values
15 Integrity Respect Collaboration Customer Focus Performance 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, stro
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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