Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Aimco — Investor Presentation (February 2023)
42 slides from Apartment Investment And Management's investor presentation, February 2023
Slide 1: Investor Presentation First Quarter 2023
INVESTOR PRESENTATION First Quarter 2023
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding: Aimco’s business strategy, pipeline, and targeted opportunities. Forward-looking statements include all statements t
Slide 3: Total Shareholder Return 40.5%
Wells Fargo Real Estate Securities Conference 2023 Active Development Projects Future Development Pipeline Stabilized Portfolio # of Residential Units 1,315 Potential Residential Units ~ 6,500 US Markets 8 Commercial Space 114K sf Potential Commercial Space ~ 1.7M # of Residential Units 5,640 Total
Slide 4: Presentation Overview
PRESENTATION OVERVIEW Key takeaways from the following presentation: 1. Aimco has created considerable shareholder value since the separation from AIR Communities as evidenced by Total Shareholder Return (TSR), significantly outpacing peers and major indices. 2. Aimco has substantial embedded value
Slide 5: About Aimco
ABOUT AIMCO
Slide 6: Aimco Overview
AIMCO OVERVIEW Aimco is a diversified real estate investment company with a 28+ year history of growth and innovation in the multifamily sector. Aimco targets a balanced allocation of investments including value add and opportunistic multifamily real estate, primarily located in Southeast Florida, t
Slide 7: Aimco Mission
AIMCO MISSION To make real estate investments, primarily focused on the multifamily sector within targeted U.S. markets where outcomes are enhanced through our human capital and substantial value is created for investors, teammates, and the communities in which we operate. WHAT WE INVEST IN: WHERE W
Slide 8: Aimco Investments
AIMCO INVESTMENTS Aimco couples outsized growth prospects from opportunistic investments with the safety of a stable multifamily portfolio resulting in a nimble platform that can move the needle quickly. Investment in Value Add and Opportunistic Real Estate Current Allocation • Provides outsized gro
Slide 9: Executing on Aimco Strategy
ACCOMPLISHMENTS: EXECUTING ON AIMCO STRATEGY
Slide 10: Executing on Strategy
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix Aimco has created substantial value for shareholders by executing its plan focused on: Maximizing Real Estate Investment Performance Prudent and Opportunistic Capital Allocation Maintaining a Strong Balance Sheet and Acc
Slide 11: Executing on Strategy: Real Estate Investments
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix REAL ESTATE INVESTMENTS Developments and Redevelopments Completed and Monetized in 2022 Flamingo Point North The Fremont Prism 707 Leahy 366-Unit Major Redevelopment 256-Unit Development 136-Unit Development 110-Unit Major Red
Slide 12: Active Project Summaries
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix REAL ESTATE INVESTMENTS Active Project Summaries As of 4Q 2022 (dollars in millions) (unaudited) Direct Investment Number of units approved Land Cost/ Expected NOI for development or Leasehold Stabilization redevelopment Value
Slide 13: Select Stabilized Operating Communities
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix REAL ESTATE INVESTMENTS Select Stabilized Operating Communities Plantation Gardens Elm Creek Hillmeade Hyde Park Tower Royal Crest Estates (Nashua) 372 Units – Plantation, FL 400 Units – Elmhurst, IL 288 Units – Nashville, TN
Slide 14: Real Estate Portfolio
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix REAL ESTATE PORTFOLIO Aimco owns a portfolio of 20 stabilized apartment communities with 5,542 apartment homes diversified by geography and price point. PORTFOLIO STATS 2022 RESULTS 2023 OUTLOOK 64% 26% 10% 97.4% 5% - 7% Class
Slide 15: Prudent and Opportunistic Capital Allocation
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix PRUDENT AND OPPORTUNISTIC CAPITAL ALLOCATION SOURCED CAPITAL FROM USED CAPITAL TO $1Bn of Asset Dispositions at Favorable Pricing • $669M of leasehold development assets monetized at Expand Investment Pipeline more than $750k
Slide 16: Simplifying the Relationship with AIR
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix SIMPLIFYING THE RELATIONSHIP WITH AIR Since the separation in December 2020, Aimco has simplified the relationship with AIR through the early repayment of the $534 million purchase money note, the reduction of leasehold liabil
Slide 17: Improving the Balance Sheet
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix IMPROVING THE BALANCE SHEET Since the separation from AIR, Aimco proactively fortified its balance sheet ahead of what appeared to be worsening conditions in the debt markets. As of December 31, 2022, Aimco had: Reduced leve
Slide 18: Plan: Optimizing Growth
PLAN: OPTIMIZING GROWTH
Slide 19: Allocate Aimco Capital Accretively
OPTIMIZING GROWTH Accomplishments Plan Investment Thesis ESG Appendix ALLOCATE AIMCO CAPITAL ACCRETIVELY INVEST CAPITAL PRUDENTLY balancing growth, opportunistic share repurchases, while maintaining balance sheet stability DEVELOPMENT FUNDING RETURN OF CAPITAL TO DEBT REDUCTION SHAREHOLDERS selectiv
Slide 20: Aimco Target Allocation by Segment & Sector
OPTIMIZING GROWTH Accomplishments Plan Investment Thesis ESG Appendix AIMCO TARGET ALLOCATION BY SEGMENT & SECTOR 80% Current Target 70% 60% 50% 40% 30% 20% 10% 0% Value Add & Core & Core Plus Alternative Investments Cash, Hedges, & Opportunistic Real Estate Real Estate Other Net Assets Approximate
Slide 21: Simplifying Through Geographic Focus
OPTIMIZING GROWTH Accomplishments Plan Investment Thesis ESG Appendix SIMPLIFYING THROUGH GEOGRAPHIC FOCUS Aimco will focus new investment activity within three target markets where fundamentals are sound, the opportunity set is large and Aimco has local market expertise offering a comparative advan
Slide 22: Execute on Pipeline Investments
OPTIMIZING GROWTH Accomplishments Plan Investment Thesis ESG Appendix EXECUTE ON PIPELINE INVESTMENTS Benson Hotel and Faculty Club Flying Horse Aimco controls a robust pipeline with opportunity Fitzsimons 4 for significant value creation. Bioscience 4 Fitzsimons add’l phases Upton Place The total d
Slide 23: Pipeline Project Summaries
OPTIMIZING GROWTH Accomplishments Plan Investment Thesis ESG Appendix PIPELINE INVESTMENTS Pipeline Project Summaries As of Feb 2023 (unaudited) Estimated / Currently Planned Leasable Earliest Vertical Project Location Project Name / Description Acreage Gross Sq Ft Multifamily Units Commercial Sq Ft
Slide 24: Utilizing 3rd Party Equity to Fund Projects and Scale
OPTIMIZING GROWTH Accomplishments Plan Investment Thesis ESG Appendix UTILIZING 3rd PARTY EQUITY TO FUND PROJECTS AND SCALE Aimco 100% of Aimco 20% GP with Hypothetical Project Example Development Equity 80% LP Capital Uses Aimco Land Basis $35 $35 Development Costs $180 $180 Development Fee (3%) $5
Slide 25: Value Proposition
INVESTMENT THESIS: VALUE PROPOSITION
Slide 26: Share Price Relative to NAV
VALUE PROPOSITION Accomplishments Plan Investment Thesis ESG Appendix SHARE PRICE RELATIVE TO NAV Aimco provides a significant value proposition given the intrinsic value of its platform and its assets relative to the current share price. Month End Share Price Since Separation $14 While there have b
Slide 27: Excellent Corporate Citizenship
ESG: EXCELLENT CORPORATE CITIZENSHIP
Slide 28: Environmental Stewardship: Commitment to Conservation & Sustainability
EXCELLENT CORPORATE CITIZENSHIP Accomplishments Plan Investment Thesis ESG Appendix ENVIRONMENTAL STEWARDSHIP: COMMITMENT TO CONSERVATION & SUSTAINABILITY BUILDING COMMUNITIES THROUGH DESIGN AND PLANNING Inaugural Reporting to In 2022, Aimco conducted Task Force on Climate- climate-risk assessments
Slide 29: Environmental Stewardship Case Study: The Hamilton
EXCELLENT CORPORATE CITIZENSHIP Accomplishments Plan Investment Thesis ESG Appendix ENVIRONMENTAL STEWARDSHIP: CASE STUDY THE HAMILTON MIAMI, FL REDEVELOPMENT OF THE HAMILTON IN MIAMI, FL • Retained the building's original footprint, significantly reducing construction waste • Converted enclosed atr
Slide 30: Social Responsibility
EXCELLENT CORPORATE CITIZENSHIP Accomplishments Plan Investment Thesis ESG Appendix SOCIAL RESPONSIBILITY: COMMITMENT TO OUR TEAMMATES, CUSTOMERS & COMMUNITIES INVESTMENTS IN TEAMMATES …SHOWING TANGIBLE RESULTS A WORKFORCE RICH WITH DIVERSE BACKGROUNDS, & COMPANY CULTURE… PERSPECTIVES LEADS TO IMPRO
Slide 31: Strong Governance: Reconstituted Board
EXCELLENT CORPORATE CITIZENSHIP Accomplishments Plan Investment Thesis ESG Appendix STRONG GOVERNANCE: HIGHLY REGARDED AND RECONSTITUTED BOARD Eight of nine Aimco directors are independent, seven of which were appointed in Quincy L. Allen Patricia L. Gibson Jay Paul Leupp Robert A. Miller CO-FOUNDER
Slide 32: Committed to Best-in-Class Governance
EXCELLENT CORPORATE CITIZENSHIP Accomplishments Plan Investment Thesis ESG Appendix COMMITTED TO BEST-IN-CLASS GOVERNANCE In November 2022, Aimco’s Board of Directors announced the commitment to shareholder friendly governance enhancements: Opt Out of MUTA: The Aimco Board will, prior to the 2023 a
Slide 33: Appendix
Aimco APPENDIX
Slide 34: Senior Leadership Team
SENIOR LEADERSHIP TEAM Accomplishments Plan Investment Thesis ESG Appendix Jennifer Johnson Wes Powell Lynn Stanfield EVP, CHIEF PRESIDENT & CHIEF EVP & CHIEF FINANCIAL ADMINISTRATIVE OFFICER, EXECUTIVE OFFICER OFFICER GENERAL COUNSEL 19 Years with Aimco 21 Years with Aimco 18 Years with Aimco Lee H
Slide 35: Pipeline Details: Brickell Assemblage
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix • Acres: 4.25 BRICKELL ASSEMBLAGE • GSF of Development: ~3,000,000 MIAMI / FL • Green Street Submarket Grade: A+ • Aimco’s Financial Interest: Aimco is sole owner of Yacht Club Apartments and 1001 Brickell Bay Drive. 35
Slide 36: Pipeline Details: Edgewater Assemblage
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix • Acres: 8.3 EDGEWATER ASSEMBLAGE • GSF of Development: ~2,300,000 MIAMI / FL • Green Street Submarket Grade: A- • Aimco’s Financial Interest: Aimco is sole owner of The Hamilton and the adjacent land which can accommodate ~1.3M sf
Slide 37: Pipeline Details: Flagler Village
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix • Acres: 8.8 FLAGLER VILLAGE FORT LAUDERDALE / FL • GSF of Development: ~3,000,000 • Green Street Submarket Grade: A- • Aimco’s Financial Interest: Aimco is the sole owner. 37
Slide 38: Pipeline Details: Broward
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix • Acres: 3.4 BROWARD FORT LAUDERDALE / FL • GSF of Development: ~2,100,000 • Green Street Submarket Grade: A- • Aimco’s Financial Interest: Aimco owns 51% of the venture. 38
Slide 39: Pipeline Details: Strathmore Square
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix • Acres: 1.4 STRATHMORE SQUARE BETHESDA / MD • GSF of Development: 525,000 • Green Street Submarket Grade: A++ • Aimco’s Financial Interest: Aimco has a 50% interest in the first two of six phases of development with options to inc
Slide 40: Pipeline Details: Fitzsimons
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix • Acres: 10.0 FITZSIMONS • GSF of Development: ~2,100,000 ANSCHUTZ MEDICAL CAMPUS AURORA / CO • Green Street Submarket Grade: B+ • Aimco’s Financial Interest: Aimco is the sole owner of options to purchase the only multifamily parc
Slide 41: Asset List
ASSET LIST Accomplishments Plan Investment Thesis ESG Appendix Operating Apartment Communities Operating Office Building Property Name Location Apartment Homes Property Name Location Square Feet 118-122 West 23rd Street New York, NY 42 1001 Brickell Bay Drive Miami, FL 300k 173 E. 90th Street New Yo
Slide 42: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Accomplishments Plan Investment Thesis ESG Appendix PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property managemen