Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (November 2018)
19 slides from Apartment Investment And Management's investor presentation, Nov 7, 2018
Slide 1: Net Asset Value Presentation
NET ASSET VALUE PRESENTATION ~ Aimco AS OF SEPTEMBER 30, 2018 Kendall Square, Cambridge, MA
Slide 2: Introduction
INTRODUCTION Net Asset Value is calculated as the market value of a company's assets less its liabilities and obligations. Net Asset Value is used by many investors in real estate companies because the value of company assets can be readily estimated, even for non-earning assets such as land or prop
Slide 3: General Disclosures
GENERAL DISCLOSURES The information provided in this presentation is intended to assist users in estimating Aimco’s Net Asset Value per share. This is not an offer to sell securities and does not constitute legal, tax, investment or other professional advice on any subject matter. Information provid
Slide 4: General Disclosures (continued)
GENERAL DISCLOSURES (CONTINUED) This Net Asset Value per share information is intended to measure Aimco’s value as a going concern, consistent with International Financial Reporting Standards (“IFRS”), and is not necessarily representative of the amount a stockholder could expect to receive in a liq
Slide 5: General Disclosures (continued)
GENERAL DISCLOSURES (CONTINUED) • Insurance risk, including the cost of insurance; and natural disasters and severe weather such as hurricanes; and • Legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of governmental regula
Slide 6: Valuation Methodology
VALUATION METHODOLOGY Real Estate - Aimco estimated the value of its communities using methods management believes to be appropriate based on the characteristics of the communities. For valuation purposes, Aimco segregated its portfolio into the following categories: Stabilized Portfolio; Redevelopm
Slide 7: Valuation Methodology (continued)
VALUATION METHODOLOGY (CONTINUED) Other Tangible Assets - consist of cash, restricted cash, accounts receivable and other assets for which Aimco reasonably expects to receive cash through the normal course of operations. Debt - the fair value of Aimco's debt takes into account the duration of the pr
Slide 8: Valuation Methodology (continued)
VALUATION METHODOLOGY (CONTINUED) Other Items of Note • Real estate values are based on Aimco's current uses and most importantly do not include the value of unused or underused land or air rights. • Real estate values generally do not take into consideration transaction costs or other items such as
Slide 9: September 30, 2018 Estimated Net Asset Value: $56 per share
September 30, 2018 Estimated Net Asset Value: $56 per share* $78 $1 -$23 Fair Value of Real Estate Fair Value of Other Tangible Fair Value of Leverage Assets and Liabilities Cash and restricted cash Carrying value of debt + Other tangible assets + Mark-to-market adjustment - Other tangible liabiliti
Slide 10: Estimated Fair Value of Real Estate: $78 per share
September 30, 2018 Estimated Fair Value of Real Estate: $78 per share* Stabilized Real Estate Portfolio Annualized 3Q 2018 NOI Less: Management fee of 2% of revenue Divided By: NOI cap rate of 4.96% Redevelopment Portfolio Cash flows discounted from property stabilization to September 30, 2018. Othe
Slide 11: Fair Value of Real Estate as of September 30, 2018
Fair Value of Real Estate as of September 30, 2018 ($M) Stabilized Portfolio NOI, less management fee $ 536 (1) NOI cap rate 4.96% (2) Stabilized Portfolio Value $ 10,806 Non-Stabilized Portfolio Redevelopment communities under construction $ 1,569 (3) Other Real Estate 483 (4) Non-Stabilized Portfo
Slide 12: Fair Value of Other Assets and Liabilities, Preferred Equity and Debt
Fair Value of Other Assets and Liabilities, Preferred Equity and Debt as of September 30, 2018 ($M) Consolidated Ownership Fair Value Amounts Adjustments (5) Adjustments Adjusted Amounts Other Tangible Assets Cash and cash equivalents $ 58 $ (2) $ — $ 56 Restricted cash 46 — — 46 Goodwill and other
Slide 13: Net Asset Value as of September 30, 2018
Net Asset Value as of September 30, 2018 ($M, except per share amounts) Fair Value of Real Estate $ 12,858 Fair Value of Other Tangible Assets and Liabilities, Net $ 183 Fair Value of Leverage $ (3,819) Net Asset Value $ 9,222 Total Shares, Units and Dilutive Share Equivalents Outstanding 166 (10) N
Slide 14: Footnotes
Footnotes 1. Represents Stabilized Portfolio Proportionate Property NOI for the three months ended September 30, 2018, annualized, and adjusted for an assumed property management fee. Market property management fees range between 1.5% and 3.0% with larger, higher quality portfolios at the lower end
Slide 15: Footnotes (continued)
Footnotes (continued) 1. (continued) a. Represents revenues and expenses related to six redevelopment communities currently under construction: Villas at Park La Brea, located in Los Angeles, California; Parc Mosaic, located in Boulder, Colorado; Flamingo South Beach, located in Miami Beach, Florida
Slide 16: Footnotes (continued)
Footnotes (continued) 2. (continued) 3Q 2018 Stabilized Portfolio Range of CBRE Cap Rates for Aimco's Portfolio Average Average Revenue Rent as a per Percentage Average Aimco Apartment Apartment of Market Quality Selected Communities Homes Home Average Grade Low High Cap Rate Atlanta 5 817 $1,708 14
Slide 17: Footnotes (continued)
Footnotes (continued) 3. Represents the value of six communities currently under redevelopment: Villas at Park La Brea, located in Los Angeles, California; Parc Mosaic, located in Boulder, Colorado; Flamingo South Beach & Bay Parc Plaza, located in Miami, Florida; and Park Towne Place and The Sterli
Slide 18: Footnotes (continued)
Footnotes (continued) 4. Represents the recent acquisition of Bent Tree and the four communities in Philadelphia valued at purchase price, and certain land valued at carrying value. 5. Represents adjustments to reflect Aimco’s share of the financial results of unconsolidated real estate partnerships
Slide 19: Definitions
Definitions AIMCO OPERATING PARTNERSHIP (OP): AIMCO Properties, L.P., a Delaware limited partnership, is the operating partnership in Aimco's UPREIT structure. Aimco owns approximately 95% of the common partnership units of the Aimco OP. PORTFOLIO QUALITY RATINGS: Aimco measures the quality of apart
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