Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Proxy Contest (November 2022)
42 slides from Apartment Investment And Management's proxy contest presentation, Nov 21, 2022
Slide 1: Executing Aimco's Defined Value Add Strategy to Deliver Strong Shareholder Returns
Executing Aimco’s Defined Value Add Strategy to Deliver Strong Shareholder Returns 200 W. Broward Blvd. Fall 2022 Ft. Lauderdale, Florida
Slide 2: Forward Looking Statements
Forward Looking Statements 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, including, but not lim
Slide 3: Executive Summary
Executive Summary New Aimco has demonstrated a successful track record of executing our strategic priorities since 1 the December 2020 spin-off Under the leadership of our reconstituted, majority-independent Board of Directors and all-new 2 executive leadership team, New Aimco has delivered superior
Slide 4: 1. New Aimco: New Board, New Leadership, New Mission, and New Business Plan
1. New Aimco: New Board, New Leadership, New Mission, and New Business Plan
Slide 5: Backdrop: The 2020 Spin-Off
New Aimco: New Board, New Leadership, New Mission, and Business Plan Discussion Backdrop: The 2020 Spin-Off The Aimco of Today (“New Aimco”) Was Formed Following the Spin-Off of Apartment Income REIT (“AIR”) and Has a New Majority-Independent Reconstituted Board, an All-New Executive Leadership Team
Slide 6: New, Reconstituted Aimco Board of Directors
New Aimco: New Board, New Leadership, New Mission, and Business Plan New, Reconstituted Aimco Board of Directors 70% of New Aimco’s Board Was Not on the Board Pre-Spin; the Three Continuing Directors Have Critical Institutional Knowledge of the Company December 2020 Reconstitution • In 2020, the New
Slide 7: New, Reconstituted Aimco Board of Directors (Cont.)
New Aimco: New Board, New Leadership, New Mission, and Business Plan New, Reconstituted Aimco Board of Directors (Cont.) Newly Appointed, Majority Independent, and Diverse Board of Directors Including New Chairman and Separation of CEO / Chair Roles Legend: Independent Director A Audit Committee C C
Slide 8: New Executive Leadership Team
New Aimco: New Board, New Leadership, New Mission, and Business Plan New Executive Leadership Team Following the Spin-Off, the New Aimco Board Appointed an All-New Executive Leadership Team President & Chief Executive Officer EVP, Chief Administrative EVP & Officer, General Counsel Chief Financial O
Slide 9: New Mission Statement and New Business Plan
New Aimco: New Board, New Leadership, New Mission, and Business Plan New Mission Statement and New Business Plan New Aimco Board and New Executive Leadership Team Developed a New Mission Statement and New Business Plan as Clearly Outlined in our October 2021 Strategic Overview and Investor Presentat
Slide 10: 2. New Board and New Leadership Team's Accomplishments Since Spin-Off
2. New Board and New Leadership Team’s Accomplishments Since Spin-Off
Slide 11: New Aimco's Successful Track Record Since Spin-Off
New Board and New Leadership Team’s Accomplishments Since Spin-Off New Aimco’s Successful Track Record Since Spin-Off New Leadership Team and Reconstituted Board Have Taken Decisive Actions to Drive Shareholder Value Milestones Commentary Status 1 New Aimco Has Tripled Its • Secured high-quality fut
Slide 12: New Aimco Has Tripled Its Development Pipeline In 23 Months
New Board and New Leadership Team’s Accomplishments Since Spin-Off 1 New Aimco Has Tripled Its Development Pipeline In 23 Months Consistent with Its Newly-Defined Capital Allocation Strategy, New Aimco Has Secured High-Quality Future Developments in Key Target Markets of South Florida, Washington, D
Slide 13: Successful Development and Lease-Up
New Board and New Leadership Team’s Accomplishments Since Spin-Off 2 Successful Development and Lease-Up On-Track Execution for Eight Development Projects Active Development Projects THE BENSON UPTON PLACE OAK SHORE THE HAMILTON AURORA, CO WASHINGTON, D.C. CORTE MADERA, CA MIAMI, FL Projects Complet
Slide 14: Strong Operating Performance
New Board and New Leadership Team’s Accomplishments Since Spin-Off 3 Strong Operating Performance Substantial Momentum Evidenced By Operating Results 17.5% 3Q2022 (1) YoY NOI Growth 96% Yacht Club 1045 on the Park 3Q2022 Occupancy $2,173 3Q2022 Avg. Monthly Revenue per Apartment Home 15.8% / 15.1% E
Slide 15: Significantly Fortified The Balance Sheet
New Board and New Leadership Team’s Accomplishments Since Spin-Off 4 Significantly Fortified The Balance Sheet Creation of Fortress Balance Sheet Through $1Bn of Debt Retirement or Financings Weighted Average Maturity Has Been Leverage Fixed or Hedged Debt New Aimco’s Leverage… (1) Extended Maturing
Slide 16: Accretive Capital Allocation to Unlock Asset Value
New Board and New Leadership Team’s Accomplishments Since Spin-Off 5 Accretive Capital Allocation to Unlock Asset Value Drives Enhanced Shareholder Value Accretive Capital Allocation $1,000MM $750MM The Fremont Aurora, CO September 2022 $500MM Prism Flamingo Point Cambridge, MA (North Tower) 707 Lea
Slide 17: Accelerated Elimination of Legacy Entanglements with AIR
New Board and New Leadership Team’s Accomplishments Since Spin-Off 6 Accelerated Elimination of Legacy Entanglements with AIR New Aimco Has Removed The Majority of Entanglements 18 Months Sooner Than Anticipated Early Repayment of $534MM $534MM Purchase Money Note $- December 2020 Today 99% Reductio
Slide 18: Strong Capital Sourcing Momentum
New Board and New Leadership Team’s Accomplishments Since Spin-Off 7 Strong Capital Sourcing Momentum Premier Strategic Capital Partnership And Favorable Debt Sourcing Support New Aimco $1Bn Programmatic JV With APFC Debt Financing • New Aimco has shown its ability to finance projects at attractive
Slide 19: 3. The Objective Results
3. The Objective Results
Slide 20: New Aimco Has Delivered vs. Its Peers
The Objective Results New Aimco Has Delivered vs. Its Peers New Aimco’s Total Shareholder Return (TSR) vs. Development-Focused REITs Showcases Best-in-Class Results Outperformed by Total Shareholder Return (“TSR”) Peer Set Rationale The “Right” Peers For New Aimco Aimco Since Spin? • Pre-separation,
Slide 21: New Aimco Has Delivered for Shareholders
The Objective Results New Aimco Has Delivered for Shareholders New Aimco Has Shown Superior Total Returns Since Current Board and Management Have Been in Place (1) (1) Since Spin 2021 New Aimco’s Relative Outperformance New Aimco’s Relative Outperformance 45% (18%) 64% 3% 46% 10% 17% 43% 19% 36% 9%
Slide 22: Strong Execution Has Been The Primary Catalyst for the Stock in 2022
The Objective Results New Aimco’s Strong Execution Has Been The Primary Catalyst for the Stock in 2022 Aimco Outperformance Accelerated Following 6/21 Corporate Announcements and Has Sustained (1) 2022 YTD Total Shareholder Returns Avg. Daily Indexed to 100 Trading Volume st th th th th June 21 , 20
Slide 23: New Aimco Relative Valuation vs. Peers
The Objective Results New Aimco Relative Valuation vs. Peers While We Are Not Satisfied With Our Valuation, New Aimco Trades Approximately In-Line With Or Better Than Its Peers on a Premium / (Discount) to NAV Basis (1) Premium / (Discount) to Consensus NAV • While AIV’s Peer Group 0% comprises a br
Slide 24: Commitment to Further Enhancing Stockholder Value
The Objective Results Commitment to Further Enhancing Stockholder Value Evaluation of a Broad Range of Options to Enhance Stockholder Value • While Aimco’s reconstituted Board and new management team have outlined and implemented a clear strategy for the Company that has delivered strong results, th
Slide 25: 4. Corporate Governance Highlights
4. Corporate Governance Highlights
Slide 26: Recent Governance Enhancements
Corporate Governance Highlights Recent Governance Enhancements New Aimco Board Continues to Focus on Evolving Into Best-in-Class Governance 1 Declassify the Board in 2023 • Given the success of Aimco’s strategic plan, the Aimco Board will accelerate the Company’s previously planned transition to ann
Slide 27: New Aimco Governance Highlights
Corporate Governance Highlights New Aimco Governance Highlights Consistent Focus on Corporate Governance and Shareholder Engagement under the Reconstituted New Board of Directors Six of eight independent directors With mitigating circumstances having Pay is aligned with having been added in the last
Slide 28: Demonstrated Commitment to ESG
Corporate Governance Highlights New Aimco Has a Demonstrated Commitment to ESG Environmental Stewardship: Commitment to Conservation & Sustainability Every development and redevelopment project is built with conservation, sustainability, resilience, and climate-related risks and opportunities in min
Slide 29: Demonstrated Commitment to ESG (Cont'd)
Corporate Governance Highlights New Aimco Has a Demonstrated Commitment to ESG (Cont’d) Social Responsibility: Commitment to Our Teammates, Customers, and Communities A Workforce Rich With Diverse Backgrounds and Investments In Teammates …Showing Tangible Results Perspectives Leads To Improved Outco
Slide 30: Significant Investor Outreach Post Spin-Off
Corporate Governance Highlights Significant Investor Outreach Post Spin-Off New Aimco Actively Engages with Its Shareholders and Prospective Shareholders, Reviewing Potential Opportunities To Enhance Value Active Shareholder Engagement Post-Spin New Aimco Shareholder Engagement Reported to Task Forc
Slide 31: Executive Compensation
Corporate Governance Highlights Executive Compensation Compensation that Incentivizes Relative Outperformance over the Long Term 99% “Say on Pay” Approved Voted for “Say On Pay” Every Year in 2021 Since First Introduced CEO Pay Components CEO 2021 Target Pay Mix Target Total Compensation at 80% of p
Slide 32: 5. Nominee Comparisons
5. Nominee Comparisons
Slide 33: Our Class II Directors Are Key Contributors to New Aimco's Momentum
Nominee Comparisons Our Class II Directors Are Key Contributors to New Aimco’s Momentum Impressive Track Records and Public Company Board Experience Land & Buildings’ Nominees Michelle Applebaum ûBackground primarily focused on the steel industry Jay Paul Leupp ûNo real estate experience Audit Commi
Slide 34: Our Class II Directors Are Key Contributors (Cont'd)
Nominee Comparisons Our Class II Directors Are Key Contributors to New Aimco’s Momentum (Cont’d) Impressive Track Records and Public Company Board Experience Land & Buildings’ Nominees Michelle Applebaum ûBackground primarily focused on the steel industry Michael A. Stein ûNo real estate experience
Slide 35: Our Class II Directors Are Key Contributors (Cont'd)
Nominee Comparisons Our Class II Directors Are Key Contributors to New Aimco’s Momentum (Cont’d) Impressive Track Records and Public Company Board Experience Land & Buildings’ Nominees Michelle Applebaum ûBackground primarily focused on R. Dary Stone the steel industry Nominating, Environmental, Soc
Slide 36: Nominee Qualifications and Expertise Comparison
Nominee Comparisons Our Class II Directors Are Key Contributors to New Aimco’s Momentum (Cont’d) Impressive Track Records and Public Company Board Experience New Aimco’s Nominees L&B’s Nominees Michelle Qualifications and Expertise Jay Paul Leupp Michael A. Stein R. Dary Stone James P. Sullivan Appl
Slide 37: L&B's Unusual Stake-Building Appears Designed to Take Away Votes
Nominee Comparisons L&B’s Unusual Stake-Building Appears Designed to Take Away Votes from Largest Institutional Shareholders Borrow In The Days Before The Record Date Removed ~2.8% of the Vote from Other Shareholders Beneficial Ownership (MM) • L&B’s trading shows a material DEF Proxy Filed At Recor
Slide 38: 6. Concluding Remarks
6. Concluding Remarks
Slide 39: Concluding Remarks
Concluding Remarks New Aimco has demonstrated a successful track record of executing our strategic priorities since 1 the December 2020 spin-off Under the leadership of our reconstituted, majority-independent Board of Directors and all-new 2 executive leadership team, New Aimco has delivered superio
Slide 40: Vote FOR All of New Aimco's Highly Qualified Director Nominees
Vote “FOR” All of New Aimco’s Highly Qualified Director Nominees on the “UNIVERSAL” WHITE Proxy Card Today 40
Slide 41: Appendix
Appendix
Slide 42: Glossary and Reconciliations of Non-GAAP Financial and Operating Measures
Glossary and Reconciliations of Non-GAAP Financial and Operating Measures This document includes certain financial and operating measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. Aimco’s definitions an
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