Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Nareit REITweek 2022 Annual Conference
38 slides from Apartment Investment And Management's conference presentation, Nov 15, 2022
Slide 1: Aimco Creating Value Investor Presentation
Aimco CREATING VALUE INVESTOR PRESENTATION Nareit reitworld 2022 Annual Conference November 15-17,2022
Slide 2: Forward Looking Statement
Forward Looking Statement 2 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. Forwardlooking statements include all statements
Slide 3: 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 4: About Aimco
Aimco CREATING VALUE ABOUT AIMCO
Slide 5: 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. Since completing a strategic business separation in late 2020, the Aimco platform has been focused on a total return strategy that includes value add, oppo
Slide 6: 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: Real es
Slide 7: Aimco Investments
Aimco CREATING VALUE 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 Provides outsized gro
Slide 8: Accomplishments: Executing on Aimco Strategy
ACCOMPLISHMENTS: EXECUTING ON AIMCO STRATEGY
Slide 9: Executing on Strategy: Value Created for Shareholders
EXECUTING ON STRATEGY Accomplishments Plan ESG Appendix Investment Thes Aimco has created substantial value for shareholders by executing its plan focused on: Since Separation1 45% (1%) 19% 11% 9% (1%) AIV Developer Peer Group FTSE Apartment Equity Index MSCI US REIT Index S&P 500 Russell 2000 Maxim
Slide 10: Real Estate Investment Performance: Development and Redevelopment
EXECUTING ON STRATEGY Thesis REAL ESTATE INVESTMENT PERFORMANCE Development and Redevelopment Expertise Since the separation from AIR: Aimco has successfully invested more than $400M of capital in development and major redevelopment projects Aimco executed 1,200 leases on newly constructed and deliv
Slide 11: Active Project Summaries
EXECUTING ON STRATEGY Accomplishments Investment Thesis Plan ESG Appendix Active Project Summaries As of 3Q 2022 (dollars in millions) (unaudited) Number of units approved for development or redevelopment Land Cost/Leasehold Value Direct Investment PlannedTo-Date Remaining Expected NOI Stabilization
Slide 12: Stabilized Apartment Portfolio Performance
EXECUTING ON STRATEGY Accomplishments Plan Investment Thesis ESG Appendix REAL ESTATE INVESTMENT PERFORMANCE Aimco owns a portfolio of 20 stabilized apartment communities with 5,542 apartment homes diversified by geography and price point. PORTFOLIO STATS64%26%10%Class B Class C+ Class A21.6%3Q Rent
Slide 13: Prudent Allocation of Capital
Accomplishments Plan Investment ESG AppendixThesis$1Bn of Asset Dispositions at Favorable Pricing•$669Mofleasehold development assets monetized at more than $750k per unit•$265M from the sale of three assets at a premium to our internal NAV estimate and by selling a partial interest in our passive I
Slide 14: Simplifying the Relationship with AIR
SIMPLIFYING THE RELATIONSHIP WITH AIR Accomplishments Plan Investment Thesis ESG AppendixEXECUTING ON STRATEGY14AIR Transition / Relationship Items Separation Now Notes Payable to AIR$534M @ 5.2% due Jan 2024Paid in full AIR Lease Liabilities Four leases for $469MOne lease for $6.1MPurchase option/R
Slide 15: Improving the Balance Sheet
Accomplishments Plan Investment ESG Appendix Thesis EXECUTING ON STRATEGY15 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 September 30, 2022, Aimco had: Lowered tot
Slide 16: Utilizing 3rd Party Equity to Fund Projects and Scale
Accomplishments Plan Investment ESG Appendix Thesis UTILIZING 3rdPARTY EQUITY TO FUND PROJECTS AND SCALEEXECUTING ON STRATEGY16Hypothetical Project Example Aimco 100% of Development Equity Aimco 20% GP with80% LP Capital Uses Amico Land Basis$35$35Development Costs$180$180Development Fee (3%)$5$5Clo
Slide 17: Plan: Optimizing Growth
PLAN: OPTIMIZING GROWTH
Slide 18: Optimizing Growth: Allocate Aimco Capital Accretively
OPTIMIZIN GGROWTH 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 selectively advance pipeline projects RETURN OF CAPITAL T
Slide 19: Target Allocation by Segment & Sector
Accomplishments Plan Investment ESG Appendix Thesis OPTIMIZING GROWTH 19 0% 10% 20% 30% 40% 50% 60% 70% 80% Value Add &Opportunistic Real Estate Core & Core Plus Real Estate Alternative Investments Cash, Hedges, &Other Net Assets Current Target AIMCO TARGET ALLOCATION BY SEGMENT & SECTOR Approximate
Slide 20: Execute on Pipeline Investments
Accomplishments Plan Investment ESG Appendix Thesis Benson Hotel and Faculty Club Flying Horse Fitzsimons 4Fitzsimons add’l phases Oak Shore Upton Place Strathmore Phase 1Strathmore Phase 2Strathmore add'l phases The Hamilton Hamilton House300 Broward One Edgewater3333 Biscayne Flagler Village Phase
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: Investment Thesis: Value Proposition
INVESTMENT THESIS: VALUE PROPOSITION
Slide 23: Value Proposition: Share Price Relative to NAV
VALUE PROPOSITION Accomplishments Plan Investment Thesis ESG Appendix SHARE PRICE RELATIVE TO NAV 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 Separa
Slide 24: ESG: Excellent Corporate Citizenship
ESG: EXCELLENT CORPORATE CITIZENSHIP
Slide 25: 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 LEADERSHIP IN ENERGY & ENVIRONMENTALDESIGN LEED GOLD 2021 LEADERSIP IN ENERGY & ENVIRONMENTAL DE
Slide 26: 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 atrium t
Slide 27: Social Responsibility: Commitment to Teammates, Customers & Communities
EXCELLENT CORPORATE CITIZENSHIP Accomplishments Plan Investment Thesis ESG Appendix SOCIAL RESPONSIBILITY: COMMITMENT TO OUR TEAMMATES, CUSTOMERS & COMMUNITIES INVESTMENTS IN TEAMMATES & COMPANY CULTURE… Workplace flexibility Parental leave –16 weeks paid leave Healthy work environments …SHOWING TAN
Slide 28: Strong Governance: Reconstituted Board
EXCELLENT CORPORATE CITIZENSHIP Accomplishments Plan Investment Thesis ESG Appendix STRONG GOVERNANCE: HIGHLY REGARDED AND RECONSTITUTED BOARD Eight of ten Aimco directors are independent, six of which were appointed within the past 2 years Quincy L. AllenCO-FOUNDER AND MANAGING PARTNER,ARC CAPITAL
Slide 29: Appendix
APPENDIX
Slide 30: Senior Leadership Team
SENIOR LEADERSHIP TEAM Accomplishments Plan Investment Thesis ESG Appendix Jennifer Johnson EVP, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL 18 Years with Aimco Wes Powell PRESIDENT & CHIEF EXECUTIVE OFFICER 18 Years with Aimco Lynn Stanfield EVP & CHIEF FINANCIAL OFFICER 21 Years with Aimco Lee H
Slide 31: Pipeline Details: Brickell Assemblage
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix BRICKELL ASSEMBLAGEMIAMI / FL Acres: 4.25• GSF of Development: ~3,000,000• Green Street Submarket Grade: A+• Aimco’s Financial Interest: Aimco is sole owner of Yacht Club Apartments and 1001 Brickell Bay Drive. 31
Slide 32: Pipeline Details: Edgewater Assemblage
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix EDGEWATER ASSEMBLAGEMIAMI / FL Acres: 8.3• GSF of Development: ~2,300,000• 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. Aimc
Slide 33: Pipeline Details: Flagler Village
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix FLAGLER VILLAGEFORT LAUDERDALE / FL Acres: 8.8• GSF of Development: ~3,000,000• Green Street Submarket Grade: A-• Aimco’s Financial Interest: Aimco is the sole owner. 33
Slide 34: Pipeline Details: Broward
PIPELINE DETAILS Accomplishments Plan investment ESG Appendix BROWARDFORT LAUDERDALE / FL Acres: 4.2• GSF of Development: ~2,000,000• Green Street Submarket Grade: A-• Aimco’s Financial Interest: Aimco owns 51% of the venture. 34
Slide 35: Pipeline Details: Strathmore Square
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix STRATHMORE SQUAREBETHESDA / MD Acres: 8.0 • GSF of Development: ~1,500,000• 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 incre
Slide 36: Pipeline Details: Fitzsimons
PIPELINE DETAILS Accomplishments Plan Investment Thesis ESG Appendix FITZSIMONSANSCHUTZ MEDICAL CAMPUS AURORA / CO Acres: 5.2• GSF of Development: ~1,500,000• Green Street Submarket Grade: B+• Aimco’s Financial Interest: Aimco is the sole owner of options to purchase the only multifamily parcels on
Slide 37: 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 Feet118-122 West 23rd Street New York, NY 42 1001 Brickell Bay Drive Miami, FL 300k173 E. 90th Street New York
Slide 38: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Accomplishments Plan ESG Appendix Investment Thesis 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
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