Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Non-Deal Roadshow (August 2013)
22 slides from Apartment Investment And Management's roadshow presentation, Aug 13, 2013
Slide 1: August 2013
AUGUST 2013
Slide 2: Strategic Areas of Focus
OPERATIONS, PORTFOLIO MANAGEMENT REDEVELOPMENT BALANCE SHEET BUSINESS. & CULTURE a STRATEGIC AREAS OF FOCUS a | |g * Higher income, therefore older, customer * Peer-leading operating cost control + Lower turnover * Above-average property operating results over cycle * Diversified points to * Discipl
Slide 3: Competitive revenue growth
Competitive revenue growth PROPERTY OPERATIONS Ty spre trics projections as of 1@ 2013 O At the midpoint of guidance, Aimco’s revenue O Third-party data providers project longer- growth is expected to be higher than 2012. term revenue growth in Aimco’s markets to + Year-to-date, Aimco’s revenue grow
Slide 4: Property Operations
| PROPERTY OPERATIONS Wer Greater NOI contribution: Renewal lease rate increases are generally higher than new lease rate increases; lower costs associated with vacancy, turnover and marketing More predictable operating results: Renewal lease rate increases are less volatile; operating costs more pr
Slide 5: Portfolio Management
PORTFOLIO MANAGEMENT al io around target customers High propensity to rent Stronger job and Lower rate of home AGE COLLEGE- earnings growth eet ‘ownership 25-45 Predictably increasing EDUCATED. number of people Lower unemployment Seattle Ly Not yet motivated by marriage, children f@ Boston Chicago N
Slide 6: Portfolio Management
PORTFOLIO MANAGEMENT ee | — Methodical Epnroschit to investment selection I, Fi O Portfolio strategy executed through p. projected Free Cash Flow IRR of an investment is greater than the FCF IRR of the property sold; ond portfolio quality is enhanced. O Today, redevelopment of properties within our
Slide 7: Sell lowest rated properties and reinvest in higher-rent properties
(e) re) re) fe) 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, acquisitions: Higher average revenues per apartment home; higher NOI
Slide 8: Redevelopment rationale
oo0o°0 ° Land in quality locations appreciates over time. Older assets in quality locations provide opportunity for redevelopment. Redevelopment is a short-cycle business making it lower-risk than ground-up development. Where returns are superior on a risk-adjusted basis, may consider ground-up deve
Slide 9: Redevelopment investment pipeline
SanFrencsco, pace Bay Visas (80M) 2012 Investment $97M 2013 Investment $130 - $160M 2014 - 2015 Investment $140 - $170M 2013 - 2015 Investment funded by exiting loan commitments (excludes multi-phase capital projects) Approximately 80% Seat 2900 on Fis (TBD) Park Towne Place (TD) The Steting (TOD) |
Slide 10: Avoid recourse debt
Re ee ae Avoid recourse debt, Ladder maturities of long- nee Use fixed-rate property nner term, non-recourse, use preferred stocks loans and refinance Rehein amortizing property loans as our senior nearer-term maturities to Rick Mithlittle or no near-ten corporate security. lock in current low rates
Slide 11: Balance Sheet
BALANCE SHEET ee) | = Balance sheet strategy adds value, even a rising interest rate environment Long-Dated, Fixed-Rate Leverage Serves as a partial hedge against inflation and cap rate expansion. Aimco’s property debt has a weighted average interest rate of 5.41%, which is approximately 1.25% highe
Slide 12: Balance Sheet
i CE SHEET O Using multiple sources of non-recourse property debt, including insurance companies, savings banks, pension funds, other balance sheet lenders, as well as SEs. O $500M revolving credit facility, $187M drawn at 6/30/2013, $268M of available capacity. e) Adding flexibility by building a p
Slide 13: Aimco's refunding risk at maturity is lower still
8.6x 8.1x 7.9% 7.8x 7.6x 74x 73x 6.1K 6.0% — 4 = EE — 78K 73x 75x 6.5x 63x Tax Sa 5.9x up Ess cup BRE AvB EQR CPT MAA Aimco’s refunding risk at maturity is lower still ie} Aimco's leverage of 8.1x reflects outstanding balances at 2Q 2013, but overstates the refunding risk of our leverage at that dat
Slide 14: Earnings & Dividend
[Tae EARNINGS & DIVIDEND — Pe Increasing earnings, higher dividend O Steady revenue growth O Peer-leading cost control Lower Capital Replacements O Offsite cost savings as a % of NOI O Interest expense savings from property debt activities Outsized AFFO Growth O Continuously improving portfolio thro
Slide 15: Aimco Cares
Aimco Cares, our philanthropic arm, was created to assist team members, contribute to charitable organizations, and have a positive impact on the communities where we do business. ia se THE DENVER Pt denverpost.com 3 iit ney Vision in Ca Ct Our Vision To be the best owner and operator of apartment c
Slide 16: Redevelopment Update
REDEVELOPMENT UPDATE
Slide 17: Elm Creek Townhomes
EE a a — ELM CREEK TOWNHOMES ELMHURST, ILLINOIS Peel CENA EAT) jected at start of construction Project Summary: - Construction of five new buildings containing 28 townhome-style apartment homes, adjacent to existing 372 apartment community owned and operated by Aimco. Interiors include high-end fini
Slide 18: Lincoln Place Apartments
{ LINCOLN PLACE APARTMENTS ie VENICE, CALIFORNIA i Bat] ees) Cae Rental mice on units leased ie date 17% om ale projected at start of construction Project Summary: Site Work Phase | Building Total of 795 apartment homes (696 existing and 99 to be built) Comprehensive exterior and interior redevelopm
Slide 19: Pacific Bay Vistas
Project Summary: Rey iS PACIFIC BAY VISTAS SAN BRUNO, CALIFORNIA at Complete interior and exterior redevelopment of all 14 existing three-story buildings Apartment homes feature high-end interior finishes including granite countertops, vinyl wood flooring, washer/dryers, and clean steel appliances.
Slide 20: Project Summary
Project Summary: Upgrading 115 penthouse units, areas common to the penthouse units, spa and fitness center. - New rooftop deck for Bali use by penthouse residents completed in 3Q 2! - Upgraded spa and fitness center accessible to all residents completed in 3Q 2012 Upgraded amenities garnering premi
Slide 21: The Preserve at Marin
Ei ; _ = THE PRESERVE AT MARIN Ss CORTE MADERA, CALIFORNIA gt es ei = i Construction progressing, expect initial occupanc Project S 3 ss Renovated Bullding Viewot San Pranemea tay Comprehensive interior and exterior redevelopment of all seven three-story buildings Redesign of all apartment homes to
Slide 22: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This ion contains fc d-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically: forecasts of 2013 financial and operating results; Aimco’s development a
Apartment Investment & Management — Non-Deal Roadshow (August 2013) on 6ix