Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (January 2015)
15 slides from Apartment Investment And Management's investor presentation, Jan 7, 2015
Slide 1: Investor Presentation January 2015
1 INVESTOR PRESENTATION JANUARY 2015
Slide 2: Strategic Areas of Focus
2 STRATEGIC AREAS OF FOCUS • Peer-leading operating cost control • Above-average resident retention • Above-average property operating results over cycle • Diversified across markets and price points to reduce volatility in revenue • Disciplined capital recycling to upgrade portfolio • Peer-leading
Slide 3: Property Operations: Expense Control and Rental Rates
3 5.1% 14.1% 14.4% -0.3% 90 95 100 105 110 115 120 2007 2008 2009 2010 2011 2012 2013 2014E Same Store Expense Growth 2008 - 2014E Aimco Peer Avg CPI Aimco COE High customer service, lower turnover philosophy Greater NOI contribution: Renewal lease rate increases are generally higher than new leas
Slide 4: Strong operating performance
4 Strong operating performance PROPERTY OPERATIONS (1) Source: SNL Financial. Peer group consists of AvalonBay, Camden, Equity Residential, Essex, Home Properties, MAA, Post Properties and UDR. (2) Source: Company reports. Individual market peers vary based on geographic exposure. During the most
Slide 5: Portfolio strategy seeks revenue growth with lower volatility
5 Portfolio strategy seeks revenue growth with lower volatility PORTFOLIO MANAGEMENT Geographic diversification reduces concentration risk. • Invest in large, liquid markets with elements of asynchronicity in real estate cycles. • Allocate 95% of our total investment to 12 to 15 target markets. •
Slide 6: Methodical approach to investment selection
6 Methodical approach to investment selection Portfolio strategy executed through leverage-neutral, tax-efficient paired trades when: the projected Free Cash Flow IRR of an investment is greater than the projected Free Cash Flow IRR of the property sold; and portfolio quality is enhanced. Select
Slide 7: Significant portfolio upgrade achieved through paired trade activity
7 Significant portfolio upgrade achieved through paired trade activity PORTFOLIO MANAGEMENT Conventional Portfolio Metrics 2011 2012 2013 2014E Cumulative Change Number of Conventional communities 198 175 162 147 -26% Number of Conventional apartment homes 62,834 55,879 50,486 43,348 -31% Average re
Slide 8: 4Q 2014 Acquisitions
8 4Q 2014 Acquisitions PORTFOLIO MANAGEMENT Saybrook Pointe Apartment Homes, San Jose, CA – 324 apartment home community acquired for $118M. This community, built in 1995, is in a quality location in southern Silicon Valley. Revenues average $2,240 per apartment home or 121% of the local market av
Slide 9: Redevelopment projects ~35% accretive
9 REDEVELOPMENT Redevelopment projects ~35% accretive Chicago Elm Creek ($12M) Philadelphia The Sterling ($25M) Seattle 2900 on First ($15M) Los Angeles Area The Palazzo at Park La Brea ($15M) Lincoln Place ($365M) Bay Area Pacific Bay Vistas ($120M) Dollar amounts represent Aimco’s estimated net in
Slide 10: Redevelopment opportunities support $200-$300M annual investment
10 REDEVELOPMENT Opportunities within existing portfolio support $200-$300M investment annually Chicago Yorktown Apartments (364 Apartments) Yorktown Apartments Expansion (~100 Apartments) Manhattan Tempo (200 Apartments) Philadelphia The Sterling (Expanded Scope) Park Towne Place (Expanded Scope) W
Slide 11: Quantity of leverage in line with peers, and declining
11 6.7x 7.1x 4.9x Peer Wt Avg AIV AIV Adj for Refunding Risk Quantity of leverage is in line with peers, and declining We achieved our target for lower leverage two years ahead of plan. Aimco’s Debt and Preferred Equity to EBITDA of 7.1x reflects outstanding balances at 9/30/2014, but overstates
Slide 12: Aimco's balance sheet is the safest in the sector
12 Aimco’s balance sheet is the safest in the sector Limit entity risk by avoiding recourse debt, of which Aimco has very little. Reduce re-pricing risk by using fixed-rate loans and preferred stock. Reduce refunding risk by laddering maturities of long-term, non-recourse, amortizing property
Slide 13: Business & Culture: We live our values
13 Integrity Respect Collaboration Customer Focus Performance We live our values, foster a culture of success and work collaboratively BUSINESS & CULTURE Our Vision To be the best owner and operator of apartment communities, inspired by a talented team committed to exceptional customer service, stro
Slide 14: Aimco's business plan provides for significant value creation
14 Aimco’s business plan provides for significant value creation AIMCO VALUE CREATION Portfolio Management • Portfolio quality, as measured by average revenue per unit, increasing at a rate significantly higher than peers. • Free cash flow margins increasing at a rate of 2% per year for the last ten
Slide 15: Forward-looking statements
15 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 2014 financial and operating results; Aimco's development and redevelopment project investm
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