Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (November 2020)
30 slides from Apartment Investment And Management's investor presentation, Nov 5, 2020
Slide 1: Apartment Income REIT Investor Presentation
Apartment Income REIT (NYSE: AIRC) Investor Presentation July 2020 | Strictly Private & Confidential Ocean House La Jolla, CA Exhibit 99.1
Slide 2: Forward Looking Statements / Non-GAAP Measures
FORWARD LOOKING STATEMENTS / NON-GAAP MEASURES This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, in
Slide 3: Table of Contents
TABLE OF CONTENTS Page Number I. Company Overview & Strategy 1 II. Investment Highlights 3 III. Financial Overview 17 IV. Next Steps 19 Appendix 20
Slide 4: I. Company Overview & Strategy
I. Company Overview & Strategy
Slide 5: AIR Company Snapshot
AIR COMPANY SNAPSHOT Note: Reflects 3Q20 portfolio metrics. Reflects 100% of total portfolio units. AIR proportionate ownership is 93.5%. Includes Prism’s 136 units. Same Store represents properties included in Aimco’s 3Q 2020 Same Store portfolio and expected to be part of AIR following the separat
Slide 6: AIR: Simplified and Pure-Play Business Model
AIR: SIMPLIFIED AND PURE-PLAY BUSINESS MODEL AIR will seek to capitalize on its comparative advantage in property management operations to execute its simplified and pure-play business model. Invest only in stabilized apartment communities Own only a high-quality and diversified portfolio of stabili
Slide 7: II. Investment Highlights
II. Investment Highlights
Slide 8: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Peer group consists of coastal peers AVB, EQR, ESS, and UDR; coastal peers chosen from proxy peers for comparability in geographic markets and average rent levels. Company estimates, based on company and peer filings. G&A and offsite costs as a percent of GAV, AIR based on
Slide 9: Attractive Portfolio, Diversified by Geography and Price Point
Top Eight Markets(1)(2) Represent 90% of AIR GAV ATTRACTIVE PORTFOLIO, DIVERSIFIED BY GEOGRAPHY AND PRICE POINT Bay Area 10.6% Los Angeles 21.5% Greater Washington 12.4% Philadelphia 12.0% Denver 7.1% San Diego 7.2% Miami 9.6% Boston 9.9% A C+ A B B B+ B B >10% of GAV 5 - 10% of GAV Market % of GAV
Slide 10: AIR's Differentiated Portfolio Strategy
AIR’S DIFFERENTIATED PORTFOLIO STRATEGY Differentiated Market Footprint Targeted Submarket And Price Point Strategy Within Each MSA… Los Angeles Philadelphia Washington D.C. Venice Mid-Wilshire Paramount Pasadena Santa Clarita Simi Valley Woodland Hills Center City Lower Merion University City Alexa
Slide 11: Market Snapshot: Los Angeles
Sources: Company filings, SNL Financial, GSA. Asset quality for AIR determined by company Pro forma for the recently announced joint venture of California assets Market Focus Rationale Concentration in submarkets with high home prices where homeownership remains difficult providing demand support Hi
Slide 12: Market Snapshot: D.C. Metro
Sources: Company filings, SNL Financial, GSA Asset quality for AIR determined by company MARKET SNAPSHOT: D.C. METRO Represents AIR’s Second Largest Market With 17% of NOI – 11 Assets Totaling ~5,200 Units D.C. Metro portfolio consists of approximately 5,200 units across 11 assets Price point divers
Slide 13: Market Snapshot: Philadelphia
MARKET SNAPSHOT: PHILADELPHIA Unique Market Presence for AIR Producing 11% of Total NOI – 11 Assets Totaling ~2,700 Units Approximately 2,700 units across 11 assets Over 80% of assets were either built or renovated after 2010 High quality portfolio with urban focus demonstrated by market rent that i
Slide 14: Market Snapshot: San Diego
MARKET SNAPSHOT: SAN DIEGO Attractive and Stable Lifestyle Market With 9% of NOI – 8 Assets Totaling ~2,100 Units (at Share) (2) San Diego portfolio consists of approximately 2,100 units across 8 assets One of the largest presence in the MSA of any large-cap public multifamily REIT High occupancy ac
Slide 15: Best-in-Class Property Management Operations
Source: Company filings representing quarter ending September 30, 2020. Average growth is calculated as simple average of growth rates from 2010 to 3Q 2020 as disclosed in company filings. Customer satisfaction scores as measured by ~55k company surveys. BEST-IN-CLASS PROPERTY MANAGEMENT OPERATIONS
Slide 16: Lowest Relative G&A and Offsite Cost in Peer Group
Source: Green Street Advisors (“GSA”). AIR is 2020E. Lean Overhead G&A as a % of Gross Asset Value (bps), Per GSA LOWEST RELATIVE G&A AND OFFSITE COST IN PEER GROUP (1) All G&A costs at ~15 basis points of GAV c Low overhead / G&A costs given focus on investing solely in income producing assets No d
Slide 17: Strong & Flexible Balance Sheet
Source: Green Street Advisors (“GSA”), Wall Street research and company filings as of September 12, 2020. Real Estate GAV as of March 31, 2020; pro forma adjusted to include subsequent events. Per company filings, adjusted for proportionate share. Net Leverage In-Line with Peers 3Q20 Net Debt + Pref
Slide 18: Stable and Experienced Management Team
STABLE AND EXPERIENCED MANAGEMENT TEAM AIR Senior Leadership Team: Includes 10 individuals (including those mentioned above) Is stable, averaging 12 years working together Is regularly refreshed, such as by Andrea Young Senior Vice President, IT 1.5 years with Aimco and Conor Wagner, Chief Investmen
Slide 19: Shareholder Friendly Corporate Governance
SHAREHOLDER FRIENDLY CORPORATE GOVERNANCE Separation of Chairman and CEO Roles All Directors Other than CEO are Independent Permanent Opt Out of MUTA at Separation AIR will not be able to reclassify its board without obtaining shareholder approval To Enable AIR’s Management Team to Prioritize Operat
Slide 20: Finite and Narrowly Defined Transition Relationship Between the Two Companies
North Tower at Flamingo Point in Miami Beach, Florida, The Fremont on the Anschutz Medical Campus in the Denver MSA, Colorado, Prism in Cambridge, Massachusetts, and 707 Leahy Apartments in Redwood City, California. 16 multi-family communities with an estimated GAV of $0.9 billion, securing property
Slide 21: Board of Directors
BOARD OF DIRECTORS Name / Position Class I* Tenure / Chairmanships Experience Tom L. Keltner Chairman & Independent Director AIV Board Tenure: 13 years Chairman of the Compensation and Human Resources Committee Bob A. Miller Lead Independent Director ü AIV Board Tenure: 13 years Devin I. Murphy Inde
Slide 22: III. Financial Overview
III. Financial Overview 21 Fitzsimons Aurora, CO
Slide 23: Financial Overview: NOI Bridge
FINANCIAL OVERVIEW: NOI BRIDGE AIR’s high-quality and diversified portfolio, coupled with its simple and low-cost business plan, is expected to provide long-term cash flow predictability and stability, resulting in high margins and growing NOI. While NOI is down in 2020 due to the unprecedented impa
Slide 24: AIR Pro Forma Earnings Power
AIR PRO FORMA EARNINGS POWER While the timing of NOI recovery is highly uncertain, the long-term earnings power of AIR is expected to remain strong. AIR’s low cost, low leverage and predictable business model makes it easier to forecast items outside of NOI. 18 AIR share of NOI; adjusted to reflect
Slide 25: IV. Next Steps
= i S =. [ ha IV. Next Steps
Slide 26: Illustrative Business Separation Timeline
ILLUSTRATIVE BUSINESS SEPARATION TIMELINE November 2020 December 2020 November 5th Publicly Filed Form 10 Separation Expected to Be Completed in December 2020. Late November Expected Public Announcement of Record Date and Intended Distribution Date Early December Expected Record Date and Beginning o
Slide 27: Appendix
Appendix
Slide 28: Portfolio Overview by Market
PORTFOLIO OVERVIEW BY MARKET Total Portfolio Overview(1)(2) As of September 30, 2020; adjusted to reflect joint venture of California assets for whole period. Includes 4 leased assets to Aimco. NOI represents the operating results of apartment communities including ancillary commercial rents. NOI do
Slide 29: AIR Portfolio
AIR PORTFOLIO * * ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ * * ✔ ✔ ✔ Denotes California Joint Venture Property Denotes Leased Property * 21
Slide 30: Important Information / Participants in Solicitation
IMPORTANT INFORMATION / PARTICIPANTS IN SOLICITATION Important Additional Information and Where to Find It In connection with any special meeting called by the Company at the demand of certain shareholders of the Company arising from Land & Buildings Investment Management’s consent solicitation (the
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