Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — 2012 Citi Global Property CEO Conference
14 slides from Apartment Investment And Management's conference presentation, Mar 12, 2012
Slide 1: Citi Global Property CEO Conference March 11-14, 2012
2012 Citi Global Property CEO Conference March 11 - 14, 2012
Slide 2: Aimco 2012 Plan: What We Expect, How We Plan to Get There
What We Expect How We Plan to Get There Operations A Solid Year Ahead Conventional Same-Store NOI ? 5.25% - 7.25% Affordable Same-Store NOI ? 0.0% - 1.0% Total Same-Store NOI ? 4.5% - 6.25% Revenue ? 4.5% - 5.5%: 2.1% "in the bank" from 2011 and 5.0%+ increase in 2012 lease rates Expenses ? 2.5% - 3
Slide 3: Property Operations Strategy: Low turnover strategy
Property Operations Strategy Low turnover strategy contributes to NOI performance Low turnover strategy:Customer retention is key to greater NOI contribution and more predictable operating resultsAimco's annual turnover of 48% is significantly lower than an apartment industry average of 55% - 60% (1
Slide 4: Property Operations: on track for a solid year
2012 Plan: Property Operations Property operations is on track for a solid year What We Expect How We Plan to Get There Year-to-Date Progress Conventional Same-Store NOI ? 5.25% - 7.25% Affordable Same-Store NOI ? 0.0% - 1.0% Total Same-Store NOI ? 4.5% - 6.25% Revenue ? 4.5% - 5.5%: 2.1% "in the ba
Slide 5: Portfolio Strategy: designed around target customers
Our target customers are:Aged 24 - 40 ? high propensity to rentCollege-educated ? strongest job and earnings growth, lowest unemploymentSingle ? homeownership is a lifestyle choice; not yet motivated by marriage, children Portfolio Strategy And they want to live in:Hub and gateway cities ? lifestyle
Slide 6: 2012 Plan: Portfolio is on track
2012 Plan: Portfolio 2012 Plan: Portfolio Portfolio plan is on track AIV Share: $550 - $650M Conventional PropertiesPortfolio average rents increase ~5% through sales of 25+ properties with average rents < $700AIV share of gross dispositions $500 - $600MFCF margin increases at rate twice that of NOI
Slide 7: Redevelopment Strategy
Redevelopment Strategy Pipeline of opportunities to generate higher risk-adjusted returns Redevelopment philosophy:Land in quality locations appreciates over timeOlder assets in quality locations provide opportunity for redevelopmentRedevelopment is a short-cycle business making it a lower-risk acti
Slide 8: 2012 Plan: Redevelopment is on track
2012 Plan: Redevelopment 2012 Plan: Redevelopment Redevelopment plan is on track Palazzo West$17M ($140K/unit) Lincoln Place$150M ($185K/unit) Pacific Bay Vistas$52M ($170K/unit) 2900 on First$13M ($95K/unit) Elm Creek$10M (~$345K/unit - new construction) The SterlingFinal costs TBD Park TowneFinal
Slide 9: Balance Sheet Strategy: designed for safety
Balance Sheet Strategy Balance sheet designed for safety Leverage strategy:Limit entity risk by avoiding recourse debt, of which Aimco has virtually noneReduce repricing risk by using fixed rate loans and refinancing nearer-term maturities to lock in current interest ratesReduce refunding risk by la
Slide 10: 2012 Plan: Balance Sheet de-levering on track
2012 Plan: Balance Sheet 2012 Plan: Balance Sheet De-levering plan is on track, may accelerate * 2012 leverage metrics are based on annualized projected 4Q 2012 EBITDA.
Slide 11: Business Strategy: simple business
Business Strategy Simple business: own and operate apartments, redevelop some Business strategy:Own and operate B+ apartments in desirable markets serving customers with high and rising incomesRedevelop properties where returns are > 150 basis points higher than acquisitionsEliminate non-core activi
Slide 12: 2012 Plan: Business Simplification on track
2012 Plan: Business 2012 Plan: Business Simplification plans are on-track
Slide 13: Earnings & Dividend
2012 Plan: Earnings & Dividend Increasing earnings, higher dividends FFO $1.72 - $1.82AFFO $1.17 - $1.29Dividend $0.72, ~ 60% AFFO payout
Slide 14: 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: projected 2012 operating results, asset sales and redevelopment investment; pro
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