Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — BMO Capital Markets North American Real Estate Conference 2012
13 slides from Apartment Investment And Management's conference presentation, Sep 5, 2012
Slide 1: BMO Capital Markets North American Real Estate Conference September 5-6, 2012
BMO Capital Markets North American Real Estate Conference September 5 - 6, 2012
Slide 2: Strategic Areas of Focus
Strategic Areas of Focus lo Property Operations Redevelopment, ust pipeline of opportunities within existing portfoli greater than ground-up development, acquisitions without value. lance Sheet ation fixed-rate, non-recourseli
Slide 3: 2012 Guidance
2012 Guidance * Leverage metrics based on annualized projected 4Q 2012 EBITDA.
Slide 4: Property Operations Strategy: Customer Retention is Key
Lower turnover strategy and operating cost discipline produce peer-leading expense results. Over five years, Aimco's costs are flat while, on average, peer operating expenses have increased approximately 8%(2) and CPI has increased 11% Lower turnover strategy contributes to outperformance Greater NO
Slide 5: Plan: Property Operations 2Q Highlights
2012 Plan: Property Operations 2Q Highlights Conventional Same Store Revenue per unit up 5.2% vs. 2Q 2011, total revenue ? 4.6% Lease rates ? 5.0% compared to ? 4.6% in 2Q 2011 Revenue growth expected to accelerate in 2H 2012 Expenses ? 2.4% vs. 2Q 2011, ? 100 bps , excluding taxes & insurance NOI ?
Slide 6: Designing portfolio around our target customers
Designing portfolio around our target customers Portfolio Strategy Target demographic: Age 25-40 High propensity to rent, predictably increasing number of people College educated Stronger job and earnings growth; lower unemployment Single Lower rate of homeownership; not yet motivated by marriage, c
Slide 7: Plan: Portfolio
2012 Plan: Portfolio Execute strategy through paired-property, leverage-neutral transactions * Free Cash Flow is defined as property NOI less capital replacements spending. Methodical approach to investment selection: Free Cash Flow Internal Rate of Return (FCF IRR) drives investment decisions Selec
Slide 8: 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 lower-risk tha
Slide 9: Plan: Redevelopment
2012 Plan: Redevelopment Redevelopment plan is on track Flamingo South Beach $4M Bay Walk project Plantation Gardens $6M ($16K/unit) 2Q Highlights Redevelopment Total of ten active projects during 2012 Five projects underway at quarter-end: one in Chicago, two on West Coast, two in South Florida Beg
Slide 10: Balance Sheet Strategy: designed for safety
Balance sheet designed for safety Limit entity risk by avoiding recourse debt, of which Aimco has very little Reduce re-pricing risk by using fixed-rate loans and refinancing nearer-term maturities to lock-in current low rates Reduce refunding risk by laddering maturities of long-term, non-recourse,
Slide 11: Plan: Balance Sheet
2012 Plan: Balance Sheet Balance sheet targets within reach; interest expense declining $0.06 per share annually Leverage metrics based on projected annualized 4Q 2012 EBITDA. Based on consensus EBITDA growth estimates published by FactSet and consistent with company projections. EBITDA growth takes
Slide 12: Earnings & Dividend
Earnings & Dividend Increasing retained earnings, higher dividends * The Aimco Board increased in July the company's quarterly dividend 11%, from $0.18 to $0.20 per share,. On an annualized basis, this is a 67% increase compared to 2011. Aimco's equity valuation does not reflect progress and traject
Slide 13: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically: forecasts of 2012 financial and operating results, asset sales and redevelopment investment; projected retu