Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (November 2009)
29 slides from Apartment Investment And Management's investor presentation, Nov 10, 2009
Slide 1: Aimco Apartment Investment and Management Company, November 2009
Riverside Park - Alexandria, VA Park Towne Place - Philadelphia, PA Monterey Grove - San Jose, CA River Club - Edgewater, NJ Palazzo West at Park LaBrea - Los Angeles, CA 3400 Avenue of the Arts - Orange County, CA AIMCO Apartment Investment and Management Company November 2009
Slide 2: Forward-looking statements
2 This presentation contains forward-looking statements, including statements regarding projected results and specifically forecasts of 2009 financial results, asset sales and property mortgage refinancing activities. These forward-looking statements are based on management's judgment as of this dat
Slide 3: Presentation Topics
3 Aimco Overview 2009 Accomplishments Significant Improvement in Portfolio Quality Solid Property Operating Results Ample Liquidity & Sound Balance Sheet 2009 Outlook & 2010 Considerations Presentation Topics
Slide 4: What We've Heard, What's Been Done, What We're Doing
4 What We've Heard.... What's Been Done.... What We're Doing What We've Heard What's Been Done What We're Doing Below average portfolio and asset quality Net seller of $6B+ of lower rated assets over last 7 yrs AIV markets 60% coastal, with higher expected rent growth and below average volatility Ou
Slide 5: Aimco Overview
5 Aimco Overview Aimco is a multifamily REIT focused on owning, managing and redeveloping properties in the 20 largest markets in the United States Initial Public Offering completed in 1994 with $315 million capitalization Aimco doubled in size every 18 months from 1994 - 2002 through several corpor
Slide 6: Aimco Overview: geographically diversified portfolio
6 Aimco owns a geographically diversified portfolio of primarily A/B properties concentrated in the largest U.S. markets Properties are in good repair following several years of outsized capital investment Operating team has proven its ability to execute with above average NOI growth Safe balance sh
Slide 7: 2009 Accomplishments
7 2009 Accomplishments
Slide 8: 2009 Accomplishments: Property Operations and Balance Sheet
8 2009 Accomplishments Property Operations Year-to-date NOI flat across Aimco's diversified portfolio Prudent cost control and vendor management produced a year-to- date decline in same-store operating expenses of 0.4% and expenses held flat across our diversified portfolio Continued focus on reside
Slide 9: 2009 Accomplishments: Portfolio Quality
9 2009 Accomplishments Portfolio Quality On track to sell $1.3 billion of lower rated assets in 2009, generating net proceeds to Aimco of approximately $400 million Average rents on conventional assets sold year-to-date are nearly 30% less than rents on retained portfolio 5% year-over-year rate grow
Slide 10: Significant Improvement in Portfolio Quality
10 Significant Improvement in Portfolio Quality
Slide 11: Sales of Lower Rated Assets Improve Portfolio Quality
11 Sales of Lower Rated Assets Improve Portfolio Quality Portfolio quality has improved significantly as lower rated assets have been sold Aimco has been a net seller for the past seven years, selling $7.5 billion of assets and exiting 40 markets ($ in billions) 2003 2004 2005 2006 2007 2008 2009e T
Slide 12: Capital Concentrated in Largest Markets
12 Capital Concentrated in 20 Largest Markets Conventional Asset Allocation (Estimated % NAV at 9/30/2009) 86% of capital invested in 20 largest U.S. markets More than 60% in higher barrier coastal markets Miami 7% San Diego 6% Philadelphia 4% Manhattan 5% Phoenix 5% Chicago 6% Other Florida 7% Bost
Slide 13: Aimco Rents versus REIS 3Q 2009
13 Aimco Rents versus REIS 3Q 2009 Aimco's average rents for 3Q 2009 were 3% above market average rents, consistent with the previous quarter * Consists of Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville Aimco Market + / - Aimco Target Markets Miami 1,577 $ 1,011 $ 56% + Los Angeles 1,99
Slide 14: 2009 Asset Sales
14 2009 Asset Sales ($000s) Properties Units Gross Proceeds Cap Rate (1) Aimco Net Proceeds Average Rent Through September 30, 2009 Conventional 45 12,292 $ 650,847 7.9% $ 212,102 $752 Affordable 13 1,593 90,208 6.1% 32,133 789 Total 58 13,885 $ 741,055 7.7% $ 244,236 $756 October 2009 7 1,852 $ 124
Slide 15: 2009 Asset Sales: $865 million sold year-to-date
15 We have sold $865 million of assets year-to-date As of November 1, $712 million of assets are under contract or in negotiation for sale, approximately $450 million of which we plan to sell to fund repayment of term debt Total sales in 2009 are expected to be approximately $1.3 billion From the pe
Slide 16: Solid Property Operating Results
16 Solid Property Operating Results
Slide 17: Competitive Same-Store Operating Results
17 Competitive Same-Store Operating Results Represents the average of apartment REITs AVB, CPT, EQR, ESS, HME, PPS and UDR Represents the mid-point of company guidance Performance exceeded the peer group average during the past three years, expect outperformance in 2009 (1) (2) SS NOI Growth (6.0%)
Slide 18: NOI Stability from Diversified Portfolios
18 NOI Stability from Diversified Portfolios Year-to-date NOI stability reflects diversified portfolios, including the affordable property portfolio to reduce volatility and conventional redevelopment property portfolio to permit short cycle responsiveness We expect 2009 NOI, including Same Store, c
Slide 19: Same Store Results
19 Same Store Results Full year 2009 Average Daily Occupancy and Same Store NOI projections are within the guidance range provided at the beginning of the year Occupancy has improved steadily since its 2009 low point of 92.6% in April, averaging 95%+ over the last three months April May June July Au
Slide 20: Consistent Investment in Portfolio
20 Consistent Investment in Portfolio Sustained rate of reinvestment in asset quality, notwithstanding the economy Invested approximately $2.2 billion in the portfolio since 2005 Capital expenditures of $1,300-$1,800 per door per year Redevelopment investments of $200M - $300M per year from 2005 to
Slide 21: Aimco Market Assessment: Demand Outlook
21 Source: Economy.com Source: REIS Aimco Market Assessment Relative Demand Outlook for a market represents the relative ranking of that market within Aimco's target markets, with yellow being "Average", green being "Above Average" and red being "Below Average". Sep 2009 Employment (1) Change Since
Slide 22: Aimco Market Assessment: Supply Outlook
22 Aimco Market Assessment Source: REIS Represents the average of REIS and PPR projections Relative Supply Outlook and Relative Market Assessment for a market represents the relative ranking of that market within Aimco's target markets, with yellow being "Average", green being "Limited Supply" or "A
Slide 23: Aimco Market Assessment: Relative Market Performance
Manhattan Boston Philadelphia Suburban NY / NJ Washington- NoVa-MD Orange County Los Angeles Denver Phoenix Chicago Dallas / Ft Worth Houston Miami Atlanta Other Florida San Jose Seattle East Bay San Francisco San Diego 23 * Size of marker represents market NOI contribution to Aimco's total Target M
Slide 24: Ample Liquidity & Sound Balance Sheet
24 Ample Liquidity & Sound Balance Sheet
Slide 25: Non-Recourse Financing Strategy
25 Non-Recourse Financing Strategy Aimco is financed primarily with non-recourse property debt with a weighted average maturity of approximately nine years and weighted average interest rate of less than 5.5% Perpetual preferred stock and preferred partnership units carry a weighted average rate of
Slide 26: Limited Near Term Refunding Obligations
26 Limited Near Term Refunding Obligations Accelerated refinancing of maturing debt during the first half of 2009 Through refinancing, repayment and property sales, Aimco has significantly reduced property debt maturities through 2011 Maturities through 2011 consist of four property loans totaling $
Slide 27: 2009 Outlook & 2010 Considerations
27 2009 Outlook & 2010 Considerations
Slide 28: 2009 Outlook
28 2009 Outlook FFO guidance unchanged at the mid-point Same-store NOI growth within range provided at the beginning of the year, occupancy expectations unchanged Reduced FFO contribution from non-recurring investment management activities Off-site cost reductions, including G&A, 15% in excess of ta
Slide 29: 2010 Considerations
29 2010 Considerations FFO 2010 FFO guidance will be provided in February 2010 Continued erosion of top line due to gain to lease and earn-in of lower rents Dilution from 2009 property sales, partially offset by lower off-site costs, including G&A Balance Sheet Having been net sellers for the last s
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