Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — CSFB Real Estate Conference April 2005
21 slides from Apartment Investment And Management's conference presentation, Apr 7, 2005
Slide 1: NAREIT June 2004 CSFB Real Estate Conference April 2005
NAREIT June 2004 CSFB Real Estate Conference April 2005
Slide 2: Table of Contents
Table of Contents Aimco Overview Seven Ways Aimco Makes Money 2005 Outlook Assumptions 4th Quarter 2004 Review 2004 Highlights Review Common Stock Preferred Stock
Slide 3: Aimco Overview
A. Aimco Overview Largest owner/operator of multi-family properties in U.S. Own 215,000 units, 1,000 properties Manage an additional 49,000 units (principally asset managed) Enterprise value approximately $10 billion, real estate under Aimco management approximately $13 billion S & P 500 company Mar
Slide 4: Aimco Overview: Well diversified asset base
A. Aimco Overview Well diversified asset base A to C properties Focus on B properties in A locations Conventional portfolio includes the Core Property Portfolio with 377 properties having 114,000 units in 38 markets and the Non-Core Portfolio with 214 properties having 51,000 units in 32 markets (to
Slide 5: Seven Ways Aimco Makes Money
B. Seven Ways Aimco Makes Money Operating multi-family properties Conventional Affordable University Communities Generating fee income Redeveloping / reinvesting in properties Managing portfolio Increasing land values through entitlements Managing cost of capital Managing G&A / productivity Royal Cr
Slide 6: 1. Operating Multi-family Properties
1. Operating Multi-family Properties Strategy: Customer driven Operate to take advantage of scale Tactics: Revenue initiatives largely complete with processes in place for continued improvement in resident quality, pricing, sales and marketing Focus now on implementing expense-side initiatives inclu
Slide 7: 1. Operating Multi-family Properties: Affordable and University
1. Operating Multi-family Properties Affordable: Maintain stable occupancy while growing rental rates through HUD-subsidized increases University: Maintain academic year occupancy at 93-plus% Increase revenue through offering of additional services such as wireless Internet
Slide 8: 2. Fee Income
Fee income: Generated from tax credit syndication, dispositions, refinancings Aimco owned properties are captive pipeline of ongoing activity Strong pipeline increases predictability of income stream Grow the business David Robertson now focused entirely on growing Aimco Capital as a more autonomous
Slide 9: 3. Redevelopment
Current projects: Belmont Place in Marietta, Georgia. Mid-2005 completion. Total $32 million. 13 active moderate-sized projects with total expenditures of $100 million Planned activity: Recruiting Chief Development Officer Expect to approve 20-25 additional projects in 2005 Target 8%-9% unlevered yi
Slide 10: 4. Portfolio Management
Core and non-core portfolios: Target approximately 40 markets total Expect to exit an additional 10-12 markets in 2005 Higher expected growth in core portfolio 4. Portfolio Management Palazzo East - Los Angeles, CA
Slide 11: 4. Portfolio Management: Capital recycling success, Los Angeles example
Capital recycling success: Los Angeles example Sold Warner Center, Topanga 49 & Villa Azure for $473 mm, $242k per unit, or 4.3% average cap rate and $1,400 avg rent Acquired three Park La Brea phases for $417 mm, $302 per unit. These are new, in stronger locations with better finishes, and have ave
Slide 12: 5. Entitlement
Realize upside in land values through increasing density of use Focus on locations where land is scarce Low density properties 5. Entitlement
Slide 13: 6. Cost of Capital
Maintain or improve financial ratios through increased profitability of conventional operations Maintain or improve 1.65x fixed charge ratio (EBITDA coverage of interest expenses and preferred dividends) Refinance $102 mm maturing loans with current rate of 7.62% with forecast new rate of 5.75%. Eva
Slide 14: 7. G&A / Productivity
Objectives for improvement Increase the use of technology to increase efficiency Focus on applying consistent processes across portfolio Increase use of variable compensation to drive profitability Implement structured monthly reporting to improve timing and effectiveness of G&A management 7. G&A /
Slide 15: 2005 Outlook (Guidance Assumptions)
Aimco's expects its Same Store year-over-year NOI growth to exceed peer average C. 2005 Outlook (Guidance Assumptions) Aimco expects to achieve stronger Same Store performance: through earn-in of occupancy levels achieved in the second half of 2004 2005 average occupancy assumption of 92.2% is up 19
Slide 16: 4th Quarter 2004 Review
Same Store delivered 2.8% sequential increase Highest sequential increase among peers Second quarter of sequential growth Met guidance for occupancy, revenue growth and controllable expense savings, partially offset by higher taxes and insurance Property sales totaled $500 million Completed four str
Slide 17: 2004 Highlights Review
Operations: Same Store revenue in 2H 2004 up 4.4% over 1H2004 to $524.2 mm from $502.1mm "Turnaround" in progress Fee income: Totaled $35 mm, double guidance of $15-20 mm provided in February 2004 Increase indicates strength of pipeline Redevelopment: Completed Flamingo South Beach Expanded construc
Slide 18: 2004 Highlights Review (continued)
5. Entitlements: established roles and processes to expand this source of value creation 6. Cost of Capital: refinanced $881 mm in property debt at average 4.33% with average savings of 230 bp redeemed $473 mm in preferreds for an average dividend savings of 94 bp, modified credit facility reducing
Slide 19: Common stock
* Aimco implied cap rate at 03/31/05 is based on conventional properties, excluding redevelopment properties. Market implied cap rate includes the net effect of above market rate debt and tax exempt debt estimated at negative $120 million. F. Common stock CURRENT AIV INDUSTRY FFO/share multiple ('05
Slide 20: Preferred stock
G. Preferred stock Part of low risk capital structure Preferred stock accounts for 11% of capital structure 9 Classes (7 publicly traded) with coupons ranging between 7.75% and 10.1% CLASS NYSE TICKER DIVIDEND REDEM'N DATE $ ISSUE AMOUNT G AIVPRG 9.375% 7/15/08 101 mm Q AIVPRQ 10.1% 3/19/06 63 mm R
Slide 21: This Presentation Contains Forward-looking Statements
This Presentation Contains Forward-looking Statements This presentation contains forward-looking statements, including statements regarding future results. Forward-looking statements specifically contain statements regarding expected results in 2005 including results of operations and FFO. These sta
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