Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (February 2008)
34 slides from Apartment Investment And Management's investor presentation, Feb 19, 2008
Slide 1: Greenspoint Phoenix, AZ Broadcast Center Los Angeles, CA Elm Creek Elmhurst, IL Flamingo South
Greenspoint Phoenix, AZ Broadcast Center Los Angeles, CA Elm Creek Elmhurst, IL Flamingo South Beach Miami, FL Calhoun Beach Club Minneapolis, MN The Palazzo East at Park La Brea Los Angeles, CA
Slide 2: Forward-looking Statements and Other Information
This presentation contains forward-looking statements, including statements regarding future results. These statements are subject to certain risks and uncertainties, including but not limited to Aimco's ability to maintain occupancy, maintain and increase rental rates, lease-up redevelopment and ac
Slide 3: Presentation Topics
History of Aimco Aimco Portfolio Property Operations Redevelopment Asset Management and Transactions Financial Strategy Net Asset Value (NAV) Presentation Topics
Slide 4: History of Aimco
History of Aimco Initial Public Offering in 1994 with $315 million gross asset value, generating 13% compounded annual total shareholder return through 2007. Rapid growth followed by an integration period. Doubled in size every 18 months from 1994 - 2002 through several large portfolio acquisitions.
Slide 5: Aimco Portfolio Overview
Aimco Portfolio Overview We own a well diversified asset base Portfolio is of high quality, supporting strong NOI growth, supplemented by redevelopment and tax credit activities Conventional portfolio: 439 communities with 127,532 units Affordable portfolio: 312 communities with 37,104 units Propert
Slide 6: Aimco Portfolio Geographic Diversification
Aimco Portfolio Geographic Diversification Aimco's portfolio is balanced geographically, providing for improved risk-adjusted returns Conventional Portfolio GAV No single market represents more than 12.5% of gross asset value More Than 76% of Estimated Gross Asset Value is in 15 Markets. Data as of
Slide 7: Aimco Portfolio Property Class by Price Point
Aimco Portfolio Property Class by Price Point Aimco owns a high quality portfolio that is well diversified by price point Conventional Portfolio by Property Class as % of NAV (3Q 2007) Aimco Property Rent v. Market (3Q 2007) 'A' Property: Average rent greater than 125% of REIS market average 'B' Pro
Slide 8: We Are Organized for Growth
Aimco Capital Property Operations We Are Organized for Growth Our primary focus is to increase the Net Asset Value of the company through superior operations, redevelopment and value added transactions, and our business is organized around these three core activities Property Operations Redevelopmen
Slide 9: Property Operations
Property Operations
Slide 10: Operational Philosophy
Property Operations Operational Philosophy The apartment management industry has been undergoing a transformation from a cottage industry to a scale driven, professional business system that is customer- centric, driven by rising customer expectations. Aimco Operations is at the forefront of this tr
Slide 11: Conventional Strategy Roadmap
Property Operations Conventional Strategy Roadmap Revenue 2004/5 Resident Quality Marketing & Media Customer Response (phone & email) Sales (New & Renewal) Revenue Management Expense, Capital & Service Mgt 2006/7 Turn Production Vendor Management Customer Service Measurement Product Lines (student)
Slide 12: Customer Service Improved Through Training Model
Property Operations Customer Service Improved Through Training Model In-house customer service training is integrated with training from the Disney Institute. Aimco's emphasis on customer service is evidenced by a recently formed partnership with the Disney Institute where Aimco executives and staff
Slide 13: A History of Outperformance in Most Markets
Property Operations A History of Outperformance in Most Markets
Slide 14: Overall Outperformance in 2007
Property Operations Overall Outperformance in 2007
Slide 15: Redevelopment
Redevelopment
Slide 16: Driving Value Creation from Owned Assets
Redevelopment Driving Value Creation from Owned Assets Aimco portfolio has job and population growth exceeding US average Housing values near Aimco properties are nearly 1.5 times the national average1 Well located properties with average rent levels in growth markets provide opportunities to increa
Slide 17: Building the Program
Redevelopment Building the Program Made substantial hires in 2006 to build our redevelopment team with the experienced personnel necessary to manage a world-class redevelopment program Developed processes and teams to manage redevelopment operations and provide for repositioning of assets as an inte
Slide 18: Conventional Redevelopment Snapshot
Our redevelopment program is highly accretive to NAV Redevelopment Conventional Redevelopment Snapshot
Slide 19: Conventional Redevelopment Work-In-Progress
Redevelopment Conventional Redevelopment Work-In-Progress Pacific Division 19 Properties 5,557 Units $222.4M Est Cost East Division 6 Properties 4,431 Units $250.8M Est Cost Gulf Division 17 Properties 5,429 Units $184.1M Est Cost Midwest Division 6 Properties 4,024 Units $99.0M Est Cost Active Proj
Slide 20: HillCreste - Los Angeles, California
Redevelopment HillCreste - Los Angeles, California After Units: 315 Scope of Work: Interiors: New gourmet kitchens and bathrooms, new flooring, closet organizers and granite fireplace surrounds Exteriors: New entry drive, upscale landscaping/lighting and new paint Common Areas: New clubhouse with me
Slide 21: Yorktown - Lombard, Illinois
Redevelopment Yorktown - Lombard, Illinois After Before Units: 364 Scope of Work: Interiors: New kitchens and baths and flooring upgrades Exteriors: Updated landscaping, new signage and upgraded entry treatments Common Areas: Renovated clubroom, common corridors and lobby Return on Capital: 8.1%
Slide 22: The Lodge on the Chattahoochee - Atlanta, Georgia
Redevelopment The Lodge on the Chattahoochee - Atlanta, Georgia After Before Before After Units: 312 Scope of Work: Interiors: Renovated kitchens and bathrooms, new lighting, paint and carpet Exteriors: New roofs, siding, windows, railings, landscaping and site amenities including a nature trail, sp
Slide 23: Latrobe - Washington DC
Redevelopment Latrobe - Washington DC After Before Units: 176 Scope of Work: Interiors: New kitchens and baths, flooring and lighting upgrades Exteriors: New signage, new windows and enhanced resident patios and balconies Common Areas: Expanded fitness center and added community entertainment room a
Slide 24: Aimco Capital
Aimco Capital ia
Slide 25: Aimco Capital
Aimco Capital Aimco Capital is responsible for managing $17B in assets, $14B of which is owned by Aimco, plus more than $3B owned by Aimco partners and affiliates The Aimco Capital team sets and executes Aimco's portfolio management strategy, which is based on an asset allocation model and provides
Slide 26: Tax Credit Redevelopment
Aimco Capital Tax Credit Redevelopment Increasing NAV and Providing a Stable Source of Fee Income Aimco's affordable property portfolio provides a captive pipeline of opportunities for raising tax credit equity Aimco is awarded Federal tax credits the benefits of which are transferred to investors a
Slide 27: Asset Management and Transaction Income
Asset Management and Transaction Income
Slide 28: Projected Tax Credit Income
Aimco Capital Projected Tax Credit Income Amortization of deferred income represents the periodic recognition of deferred revenue and costs relating to Aimco's existing tax credit arrangements Deferred revenue reflects cash received but not yet recognized as revenue, as well as cash expected to be r
Slide 29: Financial Strategy
Financial Strategy
Slide 30: Aimco's Financial Strategy Supports our Growth
Financial Strategy Aimco's Financial Strategy Supports our Growth Non-Recourse Property Debt Allows Higher Leverage & Superior Risk-Adjusted IRR DSC & LTV tailored to the asset or pool Non-recourse is safer Laddered debt maturities and matched duration to our asset strategies Use of Floating Rate De
Slide 31: Leverage Considerations
Leverage Considerations Source: Bank of America Securities, March 2007 PRIVATE MARKET PARTICIPANT LTV RATIO .. 74% 73% 71% 70% 70% 67% 63% 20% 30% 40% 50% 60% 70% 80% Apartments Regional Malls Industrial Self-Storage Office Lodging Restaurant Public REIT DEBT / TOTAL MARKET CAPITALIZATION (2) .. 41%
Slide 32: Net Asset Value
Net Asset Value
Slide 33: NAV Growth Drivers
NAV Growth Drivers Aimco is Well Positioned for Growth Growth Driver Potential NAV Creation Property Operations Each 1% increase in NOI generates approximately $1. 20 NAV per share Redevelopment Redevelopment spending in low cap markets drives value Tax Credit Transactions Tax credit transactions ar
Slide 34: Share Price Discount to NAV
NAV Share Price Discount to NAV Aimco's shares are trading at a significant discount to NAV, and at a 7.9% implied cap rate Aimco continues to generate additional value through NOI growth, redevelopment, and our tax credit business, though these benefits have been partially offset by modest increase
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