Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Nareit REITworld 2018 Conference
14 slides from Apartment Investment And Management's conference presentation, Nov 7, 2018
Slide 1: Nareit REITworld 2018 Conference Investor Presentation
Indigo Redwood City, CA Nareit REITworld 2018 Conference Investor Presentation November 2018
Slide 2: Creating Value Over Time: The Record
CREATING VALUE OVER TIME: THE RECORD Aimco’s primary measure of long-term financial performance is Economic Income. This metric reflects Aimco shareholder value creation as measured by the per share change in Net Asset Value plus Cash Dividends paid. • Since IPO through 3Q 2018(1), Aimco Economic In
Slide 3: Creating Value Over Time: The Promise
CREATING VALUE OVER TIME: THE PROMISE Going forward, Aimco maintains its commitment to excellence in operations, disciplined capital allocation via its paired trade philosophy, and guarding its safe and flexible balance sheet. • 2019 Same Store revenue will benefit from 30 bps YOY increase based on
Slide 4: Aimco Culture & Leadership Team
AIMCO CULTURE & LEADERSHIP TEAM Aimco is defined by its intentional focus on a collaborative and productive culture based on respect for others and personal responsibility, reinforced by a preference for promotion from within based on talent development and succession planning to produce a strong, s
Slide 5: Operations Update
OPERATIONS UPDATE COMPLETED A STRONG 2018 SUMMER LEASING SEASON • May-September 2018 blended lease rate growth was 3.4% and Average Daily Occupancy (“ADO”) was 96.3%. • 2018 Same Store Revenue growth expected to be 3.0% and Same Store NOI growth between 2.9% and 3.1%. • Strong operating results led
Slide 6: Redevelopment Provides Consistent Value Creation
REDEVELOPMENT REDEVELOPMENT PROVIDES CONSISTENT VALUE CREATION • For the five years ended 2017, Aimco spent $1B on Redevelopment and Development, creating ~$400M of value. • In 2018, Aimco will spend $180M on Redevelopment and Development, targeting 40% value creation. • In 2019, Aimco plans to incr
Slide 7: Portfolio Management: 2018 Capital Allocation Decisions
PORTFOLIO MANAGEMENT 2018 CAPITAL ALLOCATION DECISIONS • In 2018, Aimco sold $825M of lower-rated properties and issued $65M of OP units at NAV of $53 per share(1) for a total $890M in sources of capital. • 2018 dispositions included the $590M sale of its Asset Management business and Hunters Point
Slide 8: Portfolio Management: Looking Towards 2019
PORTFOLIO MANAGEMENT LOOKING TOWARDS 2019 Aimco allocates capital in accordance with its FCF IRR paired trade discipline and on a leverage-neutral basis. Aimco considers unlevered risk- Aimco considers execution risks Aimco considers its cost of equity adjusted returns from a menu of capital such as
Slide 9: High Quality Balance Sheet: Limits Risk Through Structure
HIGH QUALITY BALANCE SHEET AIMCO LIMITS RISK THROUGH BALANCE SHEET STRUCTURE • Employ low leverage: 35% property debt loan-to- value at 3Q 2018 • Finance primarily with non-recourse property debt and preferred equity: 94% and 6%, respectively, of Aimco total leverage at 3Q 2018 • Maintain financial
Slide 10: Further Balance Sheet Improvements Expected in 2019
HIGH QUALITY BALANCE SHEET FURTHER BALANCE SHEET IMPROVEMENTS EXPECTED IN 2019 During 4Q18, Aimco expects to address ~$1B of its $1.6B of 2019-2021 debt maturities, which will: • IMPROVE MATURITY LADDER so that no single year has more than 10% of total maturities(1) • Maintain LOW ENTITY RISK as the
Slide 11: Potential 2019 Risks
POTENTIAL 2019 RISKS Aimco regularly assesses risks that may impact its business and takes prudent precautions to ensure that the company is well-positioned. Mitigating Factors • Aimco maintains a portfolio that is diversified by geography and price point to mitigate the New Supply impact of competi
Slide 12: Exposure to New Supply
EXPOSURE TO NEW SUPPLY • Aimco considers competitive new supply to be significant primarily to “A” price point communities in submarkets with projected completions of more than 2.0% of existing stock. Based on third-party forecasts of new supply, Aimco properties representing 9% of GAV will be so af
Slide 13: 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 unlevered expected retu
Slide 14: 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 2018 results and 2019 expectations, including bu
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