Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — NAREIT June 2006
15 slides from Apartment Investment And Management's conference presentation, Jun 6, 2006
Slide 1: NAREIT June 2006
NAREIT JUNE 2006
Slide 2: Presenters
Harry Alcock - Chief Investment Officer Tom Herzog - Chief Financial Officer Jennifer Martin - VP Investor Relations
Slide 3: Who We Are
We are the largest owner of apartment homes in the U.S. having 1,337 properties with 234,000 units We have 6,400 valued teammates led by a management team strengthened over the past three years We are one of eleven REITs included in the S&P 500 We are uniquely positioned to add value through redevel
Slide 4: Who We Are: A to C properties, focus on B in A locations
Who We Are A to C properties Focus on B properties in A locations Conventional portfolio includes: Core Property Portfolio with 272 properties having 82,000 units in 27 markets Non-Core Portfolio with 237 properties having 63,000 units in 31 markets (to be sold over the next 4-5 ys.) Affordable port
Slide 5: Who We Are - Our History
IPO in 1994 with $315 million gross real estate assets grew to current $12 billion Transaction-oriented company that doubled in size every 18 months through acquisitions for 8 years We have provided shareholders with a 15% compounded annual return since our IPO Who We Are - Our History
Slide 6: Key Messages: How we see Aimco
Key Messages How we see Aimco We have a high-quality Core Portfolio We are in a rising market and expect above average results We have a deep pipeline of redevelopment opportunities and expect accretive returns from these activities We plan to monetize our half billion $+ investment in low yield, hi
Slide 7: Who We Are - How We See Aimco
Managing portfolio Operating multi-family properties Conventional Affordable Redeveloping / reinvesting in properties Increasing land values through entitlements Generating fee income Managing cost of capital Managing G&A / productivity Who We Are - How We See Aimco The 7 ways we make money drive ou
Slide 8: 1. Managing Our Portfolio - Core Portfolio
Aimco's business plan is focused on generating growth in earnings and growth in asset value from its Core Portfolio, which is concentrated in higher growth markets such as coastal regions, the Rocky Mountain region and Chicago: 1. Managing Our Portfolio - Core Portfolio
Slide 9: 2. Property Operations - Execution
2. Property Operations - Execution Resident quality initiatives drive results Closing the occupancy gap Positive NOI growth: YOY past 5 quarters Sequential past 7 quarters Source: B of A Source: B of A
Slide 10: 3. Redeveloping & Investing in Properties
Redevelopment projects will have a broad range of upgrades and may typically include: Renovated kitchens and bathrooms including appliances, cabinets, and counters tops New flooring, lighting and paint New/updated amenities (clubhouse, leasing center, pool) Exterior renovation and updated landscapin
Slide 11: 4. Increasing Land Values through Entitlements
4. Increasing Land Values through Entitlements Aimco has 26 active entitlement properties in its Land business The current Land portfolio has the following characteristics: 2006 Budget Net operating income of $26 million (AIV%) Pre-entitlement gross asset value of approximately $525 million (AIV%) P
Slide 12: 5. Generating Fee Income - Sources of Growth
General Partner Fees are expected to be flat to down over time as Non- Core properties are sold Asset Management Fees will grow as additional properties are redeveloped and the equity syndicated, partially offset by property sales Tax Credit Fees represent the greatest opportunity for growth Growth
Slide 13: 6. Managing Our Cost of Capital
Aimco has a deliberate policy, different than its peers, of using non- recourse property debt. The lower risk inherent in non-recourse property debt permits Aimco to operate with higher debt leverage and a lower weighted average cost of capital Aimco's reliance on secured debt has the following adva
Slide 14: 7. Managing G&A / Productivity
7. Managing G&A / Productivity Process & Automation including HFM & Essbase Measurability, Visibility & Accountability In-sourcing & Out-sourcing Productivity Initiative and Corporate G&A in 2006: Result in projected G&A savings of $8 to $10 million in 2006 2. Costs in 2005 associated with the CFO/C
Slide 15: Forward Looking Statements & Non-GAAP Measures
Forward Looking Statements & Non-GAAP Measures This presentation includes forward looking statements and projections related to 2006 results. Such statements are based on management's judgment and are subject to certain risks and uncertainties, a description of which can be found in Aimco's SEC fili