Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (June 2020)
20 slides from Apartment Investment And Management's investor presentation, Jun 1, 2020
Slide 1: Net Asset Value Presentation as of March 31, 2020
Aimco@ NET ASSET VALUE PRESENTATION AS OF MARCH 31, 2020 _ One Ardmore
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 considered useful by some investors because the value of company assets can be readily estimated, even for non-earning assets such as land or properties under
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 regulation
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, including the Parkmerced Option and Loan, for which Aimco reasonably expects to receive cash through the normal course of operations. Debt - the fair value of Aimco's deb
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 rea
Slide 9: March 31, 2020 Estimated Net Asset Value: $59 per share
March 31, 2020 Estimated Net Asset Value: $59 per share* Estimated NAV per share was up one dollar from the third quarter 2019 calculation. The increase in NAV is attributable to NOI growth in the stabilized portfolio, a decrease in cap rates, and value creation from development and redevelopment. F
Slide 10: Estimated Fair Value of Real Estate: $86 per share
March 31, 2020 Estimated Fair Value of Real Estate: $86 per share* Stabilized Real Estate Portfolio Annualized 1Q 2020 NOI Less:Management fee of 2% of revenue Divided By: NOI cap rate of 4.85% Redevelopment and Development Portfolio Cash flows discounted from property stabilization to March 31, 202
Slide 11: Fair Value of Real Estate as of March 31, 2020
Fair Value of Real Estate as of March 31, 2020 ($M) Stabilized Portfolio NOI, less management fee $ 584 (1 ) NOI cap rate 4.85 % (2 ) Stabilized Portfolio Value $ 12,033 Non-Stabilized Portfolio Redevelopment and Development $ 1,153 (3 ) Other Real Estate $ 317 (4 ) Non-Stabilized Portfolio Value $
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 March 31, 2020 ($M) *Refer to Footnotes beginning on page 14. Consolidated Amounts as Reported Ownership Adjustments (5) Fair Value Adjustments Adjusted Amounts Other Tangible Assets Cash and cash equivalents $341 $(1) - $34
Slide 13: Net Asset Value as of March 31, 2020
Net Asset Value as of March 31, 2020 ($M, except per share amounts) It bears repeating that this NAV per share calculation is made at a point in time and based on the assumptions noted in this presentation. Results may be expected to fluctuate based on subsequent events, including the impact of COVI
Slide 14: Footnotes
Footnotes 1. Represents Stabilized Portfolio Proportionate Property NOI for the three months ended March 31, 2020, annualized, and adjusted for an assumed property management fee. Market property management fees range between 2.0% and 3.0% with larger, higher quality portfolios at the lower end of t
Slide 15: Footnotes (continued)
Footnotes (continued) (continued) Represents revenues and expenses related to one property held at March 31st and subsequently sold. Represents revenues and expenses related to three development and three redevelopment communities: Parc Mosaic, located in Boulder, Colorado; The Fremont, located in N
Slide 16: Footnotes (continued)
Footnotes (continued) 2. Represents Aimco’s estimated current NOI cap rate for its Stabilized Portfolio, which was calculated by Aimco on a property-by- property basis, based primarily on information published by CBRE in its 2H 2019 Cap Rate Survey. CBRE is a nationally recognized provider of real e
Slide 17: Footnotes (continued)
Footnotes (continued) 2.(continued) Aimco selected cap rate for Atlanta is based on market pricing for properties currently for sale. Based on the quality of its communities and locations within the market, Aimco estimates the current NOI cap rate for its Chicago portfolio is slightly higher than th
Slide 18: Footnotes (continued)
Footnotes (continued) Represents the value of three communities under development and three communities under redevelopment: Parc Mosaic, located in Boulder, Colorado; The Fremont, located in North Aurora, Colorado; Eldridge Townhomes, located in Elmhurst, Illinois; Flamingo Point & Bay Parc Plaza,
Slide 19: Footnotes (continued)
Footnotes (continued) Represents certain land holdings and three recently purchased buildings; 1001 Brickell Bay Drive, One Ardmore, and Prism. Represents adjustments to reflect Aimco’s share of the financial results of unconsolidated real estate partnerships and to exclude the noncontrolling intere
Slide 20: 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 93.4% of the legal interest in the common partnership units of the Aimco OP and 94.8% of the economic interest in t
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