Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (March 2012)
16 slides from Apartment Investment And Management's investor presentation, Mar 22, 2012
Slide 1: Analyst Meeting Discussion Materials
Exhibit 99.1 Analyst Meeting Discussion Materials March 22, 2012 1
Slide 2: Aimco 2012 Plan
Aimco 2012 Plan What We Expect How We Plan to Get There Operations Conventional Same-Store NOI 5.25% - 7.25% Revenue 4.5% - 5.5%: 2.1% “in the bank” from 2011 and Affordable Same-Store NOI 0.0% - 1.0% 5.0%+ increase in 2012 lease rates A Solid Year Ahead Total Same-Store NOI 4.5% - 6.25% Expenses 2.
Slide 3: Property Operations 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 results Conventional Same-Store Revenue & NOI Growth 2006 - 2012E Aimco’s annual turnover of 48% is 130 AIV NO
Slide 4: 2012 Plan: Property Operations
2012 Plan: Property Operations Property operations are 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% Revenue 4.5% - 5.5%: Lease rates on track Affordable Same-Store NOI 0.0% - 1.0% 2.1% “in the bank” from 2011 High o
Slide 5: Portfolio Strategy
Portfolio Strategy Portfolio designed around our target customers Our target customers are: And they want to live in: Aged 24 - 40 high propensity to rent Hub and gateway cities lifestyle, job College-educated strongest job and earnings opportunities growth, lowest unemployment Urban areas proximity
Slide 6: 2012 Plan: Portfolio
2012 Plan: Portfolio Portfolio plan is on track, may accelerate asset sales What We Expect How We Plan to Get There Year-to-Date Progress Conventional rents ~10% to $1,260 from $1,143 Dispositions $550 - $650M Sold four properties with 725 units, at the end of 2011 Acquisitions $220M+ with $160M in
Slide 7: Redevelopment Strategy
Redevelopment Strategy Pipeline of opportunities to generate higher risk-adjusted returns Redevelopment philosophy: Land in quality locations appreciates over time Older assets in quality locations provide opportunity for redevelopment Redevelopment is a short-cycle business making it a lower-risk a
Slide 8: 2012 Plan: Redevelopment
2012 Plan: Redevelopment Redevelopment plan is on track What We Expect How We Plan to Get There Year-to-Date Progress Conventional redevelopment $125 - $150M Eight projects underway in 2012 with Lincoln Place and Pacific Bay Vistas Robust pipeline; up to 5% - 6% of NAV under ~$400M multi-year invest
Slide 9: 2012 Redevelopment Disclosure
2012 Redevelopment Disclosure Example of expanded quarterly disclosure to begin with 1Q 2012 report Summary of Redevelopment Activity As of December 31, 2011 (dollars in millions) (unaudited) Schedule Average Rents Inception-to- Stabilized/ Quarter-End Number of Total Project Date Construction Initi
Slide 10: Balance Sheet Strategy
Balance Sheet Strategy Balance sheet designed for safety Leverage strategy: Limit entity risk by avoiding recourse debt, of which Aimco has virtually none Reduce repricing risk by using fixed rate loans and refinancing nearer-term maturities to lock in current interest rates Reduce refunding risk by
Slide 11: 2012 Plan: Balance Sheet
2012 Plan: Balance Sheet De-levering plan is on track, may accelerate What We Expect * How We Plan to Get There Year-to-Date Progress EBITDA:Interest 2.5:1 Increasing property income Property operations plan is on track EBITDA:Interest & Preferred Dividends 2.0:1 Property debt amortization $83M or L
Slide 12: Balance Sheet Targets
Balance Sheet Targets Targeting lower leverage Balance Sheet Metrics Y2012 Annualized Long-Term Y2011 4Q EBITDA Targets EBITDA/Interest 2.18:1 2.50:1 2.75:1 EBITDA/Interest + Preferred 1.78:1 2.00:1 2.50:1 Debt/EBITDA 8.7x 7.5x See Note (1) Debt + Preferred/EBITDA 10.0x 8.7x < 7.0x Clear path to ach
Slide 13: Business Strategy
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 incomes Redevelop properties where returns are > 150 basis points higher than acquisitions Eliminate non-core act
Slide 14: 2012 Plan: Business
2012 Plan: Business Simplification plans are on-track What We Expect How We Plan to Get There Year-to-Date Progress Reduce number of partnerships Eliminate 7 public partnerships that own Public partnership mergers complete Sale of third-party asset management business; 13 properties, saving annual P
Slide 15: 2012 Plan: Earnings & Dividend
2012 Plan: Earnings & Dividend Increasing earnings, higher dividends 2012 Guidance 60% 50% 50% 40% 30% 20% 20% 10% 8% 0% FFO AFFO Dividend FFO $1.72 - $1.82 AFFO $1.17 - $1.29 Dividend $0.72, ~ 60% AFFO payout 15
Slide 16: 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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