Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Proxy Contest (October 2020)
15 slides from Apartment Investment And Management's proxy contest presentation, Oct 8, 2020
Slide 1: 26 Years Is Long Enough
AIMCO (NYSE: AIV; APARTMENTS) LAN D af) d 26 YEARS IS LONG ENOUGH BUILDINGS —™=™
Slide 2: Published NAV and Stock Price Summary
Published Net Asset Value $58/share Stock Price (as of 9/30/20) $33.72 Equity Market Cap $5.3B Dividend Yield % 4.5% Upside to NAV + Annual Dividend 77%
Slide 3: Why Are We Here?
WHY ARE WE HERE? WE BELIEVE THE SPIN OF ~90% OF AIV'S VALUE SHOULD BE APPROVED BY SHAREHOLDERS > Chairman/CEO Terry Considine, along with the over-tenured Board, approved the spin-off of 90% of the Company and is refusing to voluntarily put it to a shareholder vote as they and their advisors “have d
Slide 4: Portfolio Statistics, Geographic Footprint, Top Markets
Portfolio Statistics Geographic Footprint Top 10 Markets
Slide 5: Strong Case for Change Given Underperformance
STRONG CASE FOR CHANGE GIVEN UNDERPERFORMANCE AIV’S TOTAL RETURNS HAVE UNDERPERFORMED ALL RELEVANT PEERS SINCE ITS IPO, 5-, 3-, AND 1-YEAR TIMEFRAMES > Under Chairman/CEO Considine and the Total Return Underperformance to Peers Board’s leadership, AlV’s Total Shareholder Return the last 26 years as
Slide 6: Discount to NAV Has Been Persistent
DISCOUNT T0 NAV HAS BEEN PERSISTENT UNDER THE LEADERSHIP OF THE BOARD, AIMCO HAS TRADED AT A DISCOUNT TO NET ASSET VALUE > Aimco has traded at a persistent discount to Persistently and Consistently Trading at a Discount to NAV NAV while Apartment Peers have traded near or above NAV for much of this
Slide 7: Clear Display of Bad Corporate Governance
CLEAR DISPLAY OF BAD CORPORATE GOVERNANCE IS THE AIMCO BOARD ACTING IN THE BENEFIT OF ALL SHAREHOLDERS, OR JUST SOME? > 5 out of 9 directors have been on the board Extensive Board Tenure Raises the Question; Who Does the Board Represent? for more than 10 Years in ISS Quality Score . . hy > Both ISS
Slide 8: Investors and Clients Are Highly Skeptical of Spin in Citi Survey
Investors and Clients Are Highly Skeptical of Spin in Citi Survey
Slide 9: Transaction Overview: Bad Co. and Worse Co.
TRANSACTION OVERVIEW: BAD CO. AND WORSE CO. A DIVESTMENT OF 90% OF THE COMPANY SHOULD REQUIRE SHAREHOLDER APPROVAL, IN OUR VIEW > “Bad Co.,” or Apartment Investment REIT (“AIR” or “SpinCo’), will own Proposed Transaction 90% of the assets and “Worse Co.” or Aimco (“AIV” or “RemainCo’) will own 10% o
Slide 10: Aimco's Delay Tactics Deprive Shareholders of Referendum on Spin-Off
AIN’S DELAY TACTICS DEPRIVE SHAREHOLDERS OF REFERENDUM ON SPIN-OFF WE BELIEVE THE BOARD IS ATTEMPTING TO DELAY THE SOLICITATION PROCESS IN ORDER EVADE AN ADVISORY VOTE > AlV set Nov. 4th as the record date for determining shareholders entitled to request a special meeting - 36 days after Land & Buil
Slide 11: Timeline of Events
09/14/20 09/22/20 09/22/20 09/25/20 09/29/20 10/8/20 Mid-December AIMCO announces L&B Sends Letter to AIMCO provides tax L&B receives letter L&B files preliminary L&B to set as record AIMCO expected the reverse spinoff AIV Board of Directors, information indicating in response refusing proxy materia
Slide 12: There Is a Clear Pattern of Value Destruction in Our View
THERE IS A CLEAR PATTERN OF VALUE DESTRUCTION IN OUR VIEW PARKMERCED IS THE MOST RECENT DISPLAY OF POOR CAPITAL ALLOCATION > In December 2019, the Company announced a subordinate Mezzanine Loan in Parkmerced, a 3,000+ apartment community located in San Francisco > Abad and complex deal from the star
Slide 13: Shareholders Deserve to Have Their Voices Heard on the Merits of the Spin
SHAREHOLDERS DESERVE TO HAVE THEIR VOICES HEARD ON THE MERITS OF THE SPIN SPIN COULD DESTROY SUBSTANTIAL VALUE AND SHOULD BE PUT TO A SHAREHOLDER VOTE, IN OUR VIEW DID THE BOARD CONSIDER ALL STRATEGIES TO MAXIMIZE VALUE FOR ALL SHAREHOLDERS? Potential for Material Shareholder Value Destruction > Man
Slide 14: Legal Disclosure
LEGAL DISCLOSURE The materials in this presentation (the “Materials”) are for informational purposes only and may not be relied on by any person for any purpose and are not, and should not be construed as, investment, financial, legal, tax or other advice. The Materials represent the opinions of Lan
Slide 15: Legal Disclosure
LEGAL DISC CERTAIN INFORMATION CONCERNING THE PARTICIPANTS. Land & Buildings has made a preliminary filing with the SEC of a solicitation statement and an accompanying request card to be used to solicit requests for the calling of a special meeting of shareholders of the Company to conduct an adviso
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