Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (August 2019)
18 slides from Apartment Investment And Management's investor presentation, Aug 26, 2019
Slide 1: Investor Presentation Aug/Sept 2019
Aimco works as a team. Joining Terry Considine (Chairman & CEO) on the dais and helping to ring the bell from left to right are: Leeann Morein, a 25-year Aimco veteran and its first CFO; Taran Francis, a 31-year Aimco veteran and Director of Service and Quality for the New York and Boston portfolios
Slide 2: Economic Income and earnings
Economic Income and earnings MORE FOCUSED EARNINGS CONTRIBUTION The contribution from real estate operations to Aimco bottom line has increased steadily since the planned exit from the affordable and asset management businesses was announced in 2011, and is expected to be 98% of AFFO in 2019. Other
Slide 3: Strategic focus
Operations Drive rent growth based on high levels of resident retention, through superior customer selection and satisfaction, coupled with disciplined innovation resulting in sustained cost control, to maximize NOI margins (peer-leading for each of the last eight quarters). Redevelopment and Develo
Slide 4: Peer-Leading Same Store Operations
PEER-LEADING SAME STORE OPERATIONS YTD through June 30, 2019, Aimco has: Revenue growth of 4.0%, 30 bps better than any peer; Expense growth of 1.3%, 80 bps better than any peer; Net operating income (NOI) growth of 5.0%, 90 bps better than any peer; and At the midpoint of full year guidance ranges,
Slide 5: Innovation & Productivity
Innovation & Productivity Focus on efficient, productive operations: Aimco considers Controllable Operating Expenses ("COE"), defined as property level expenses before taxes, insurance, and utilities, as one measure of operating efficiency. 2019 Same Store COE growth is expected to be 50 bps. For th
Slide 6: Redevelopment Cycle
Redevelopment Cycle “SMALL PHASE” REDEVELOPMENTS - INVENTORY MANAGEMENT When practical, Aimco prefers “small phase” redevelopments which provide optionality to improve the offering and flexibility to adjust the volume to market demand. Current examples include Bay Parc and the Center Tower at Flamin
Slide 7: Redevelopment: 2019 Starts Leahy, Redwood City, CA
Redevelopment: 2019 Starts 707 Leahy, Redwood City, CA BEFORE: Aged improvements mask the quality of the location and the opportunity for higher rents. AFTER: Completely rebuilt top-down and inside-out, commanding rents that provide an accretive return on the incremental investment. In the second qu
Slide 8: Redevelopment: 2019 Starts Flamingo Point, Miami Beach, FL
Redevelopment: 2019 Starts Flamingo Point, Miami Beach, FL Aimco will complete, by year-end, the initial $40M phase of redevelopment which includes the creation of a 43,000 square foot entry plaza, new retail offerings, common area upgrades, plus extensive landscaping and exterior amenities. Aimco h
Slide 9: Redevelopment Pipeline
Redevelopment Pipeline POTENTIAL REDEVELOPMENT PROJECTS Aimco plans future starts to backfill its redevelopment pipeline taken from opportunities illustrated below. The menu shown above is representative of the communities whose redevelopment or development is being considered through 2021. Actual p
Slide 10: Portfolio Management
Portfolio Management Aimco continues to be active in the pursuit of value-creating opportunities both inside and outside its portfolio. Capital Allocation Category Description Aimco Example Covered-land investments Land value that approaches or exceeds the current developed value. Eastpointe/Parc Mo
Slide 11: Portfolio Management: 2018 & 2019 YTD Capital Allocation
Portfolio Management 2018 & 2019 YTD CAPITAL ALLOCATION Since the beginning of 2018, Aimco has sold ~$1 billion of real estate, generally lower-rated communities in less desirable submarkets. Aimco reinvested the sales proceeds in redevelopment and purchase of communities located in more attractive
Slide 12: 1001 Brickell Bay Drive
1001 Brickell Bay Drive In July, in an off-market transaction, Aimco acquired for $157M a 95% interest in the office building located contiguous to its Yacht Club apartments. Combining the two properties, Aimco owns 4.2 acres with more than 600 linear feet of Biscayne Bay frontage. Portfolio Managem
Slide 13: High quality balance sheet
High quality balance sheet Aimco limits risk through balance sheet structure Manage refunding risk by low leverage, long duration, and regular amortization: 32% LTV 24% LTV subject to refunding at maturity after consideration of perpetual preferred securities and annual amortization of property debt
Slide 14: High quality balance sheet
High quality balance sheet $247M of property debt is payable at par in 2020 but does not mature until 2021; Aimco intends to repay this debt in 2020. Refunding risk is lower than total leverage due to principal amortization paid from retained earnings. Since September 2018, through net leverage deci
Slide 15: Team and Culture
TEAM AND CULTURE TEAM ENGAGEMENT Out of hundreds of participating companies, Aimco is one of seven recognized as a "Top Place to Work" in Colorado for each of the past seven years. In 2019, Aimco was, for the first time, recognized as a “Top Place to Work” in the Bay Area. For the past five years, A
Slide 16: Senior management team
Paul Beldin EVP & Chief Financial Officer 11 Years John Bezzant EVP & Chief Investment Officer 13 Years Lisa Cohn EVP & General Counsel 17 Years Miles Cortez EVP & Chief Administrative Officer 18 Years Matt Eilen Property Operations Finance 9 Years Patti Fielding EVP: Debt & Treasurer President: Aim
Slide 17: Why invest in Aimco?
Why invest in Aimco? Best-in-Class Operations: Lower resident turnover through intentional focus on customer selection and satisfaction drives peer-leading margins. Paired-Trade Capital Allocation Discipline: Aimco adheres to a disciplined paired-trade strategy comparing expected unlevered returns o
Slide 18: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & other INFORMATION 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 2019 expectations, including but not limited to:
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