Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — NAREIT Annual Convention November 2007
24 slides from Apartment Investment And Management's conference presentation, Nov 14, 2007
Slide 1: NAREIT Annual Convention November 2007
NAREIT Annual Convention November 2007 Greenspoint Phoenix, AZ Broadcast Center Los Angeles, CA Elm Creek Elmhurst, IL Flamingo South Beach Miami, FL Calhoun Beach Club Minneapolis, MN The Palazzo East at Park La Brea Los Angeles, CA
Slide 2: Forward-looking Statements and Other Information
This presentation contains forward-looking statements, including statements regarding future results. These statements are subject to certain risks and uncertainties, including but not limited to Aimco's ability to maintain occupancy, maintain and increase rental rates, lease-up redevelopment and ac
Slide 3: Presentation Topics
Property Operations Redevelopment Asset Management and Transactions Net Asset Value Additional Information Presentation Topics
Slide 4: Property Operations: A History of Outperformance in Most Markets
Property Operations A History of Outperformance in Most Markets
Slide 5: Property Operations: Overall Outperformance in 2007
Property Operations Overall Outperformance in 2007
Slide 6: Redevelopment: Building the Program
Redevelopment Building the Program Made substantial hires in 2006 to build our redevelopment team with the experienced personnel necessary to manage a world-class redevelopment program Developed processes and teams to manage redevelopment operations and provide for repositioning of assets as an inte
Slide 7: Redevelopment: Conventional Redevelopment Snapshot
Significant Returns on Equity - Projects are typically financed 90% or more with non- recourse property debt, secured by the value created. Projected ROE on 2007 spend ~ 20%. Redevelopment Conventional Redevelopment Snapshot Full Year 2007 Expenditures - Expect to invest $300M in 2007. NAV creation
Slide 8: Redevelopment: Conventional Redevelopment Work-In-Progress
Redevelopment Conventional Redevelopment Work-In-Progress Pacific Division 21 Properties 6,093 Units ~$1.1B GAV $223.3M Est Cost East Division 5 Properties 4,027 Units ~$544M GAV $244.4M Est Cost Gulf Division 19 Properties 6,372 Units ~$569M GAV $209.4M Est Cost Midwest Division 8 Properties 4,497
Slide 9: Redevelopment: HillCreste - Los Angeles, California
Redevelopment HillCreste - Los Angeles, California After Units: 315 Scope of Work: Interiors: New gourmet kitchens and bathrooms, new flooring, closet organizers and granite fireplace surrounds Exteriors: New entry drive, upscale landscaping/lighting and new paint Common Areas: New clubhouse with me
Slide 10: Redevelopment: Yorktown - Lombard, Illinois
Redevelopment Yorktown - Lombard, Illinois After Before Units: 364 Scope of Work: Interiors: New kitchens and baths and flooring upgrades Exteriors: Updated landscaping, new signage and upgraded entry treatments Common Areas: Renovated clubroom, common corridors and lobby Return on Capital: 8.1%
Slide 11: Redevelopment: The Lodge on the Chattahoochee - Atlanta, Georgia
Redevelopment The Lodge on the Chattahoochee - Atlanta, Georgia After Before Before After Units: 312 Scope of Work: Interiors: Renovated kitchens and bathrooms, new lighting, paint and carpet Exteriors: New roofs, siding, windows, railings, landscaping and site amenities including a nature trail, sp
Slide 12: Redevelopment: Latrobe - Washington DC
Redevelopment Latrobe - Washington DC After Before Units: 176 Scope of Work: Interiors: New kitchens and baths, flooring and lighting upgrades Exteriors: New signage, new windows and enhanced resident patios and balconies Common Areas: Expanded fitness center and added community entertainment room a
Slide 13: Asset Management and Transaction Income
Asset Management and Transaction Income
Slide 14: Asset Management and Transaction Income
Asset Management and Transaction Income Amortization of deferred income represents the periodic recognition of deferred revenue and costs relating to Aimco's existing tax credit arrangements Deferred revenue reflects cash received but not yet recognized as revenue, as well as cash expected to be rec
Slide 15: NAV Growth Drivers: Aimco is Well Positioned for Growth
NAV Growth Drivers Aimco is Well Positioned for Growth Growth Driver Potential NAV Creation Property Operations Each 1% increase in NOI generates approximately $1. 20 NAV per share Redevelopment Redevelopment spending in low cap markets drives value Each $100M (7.5% yield) in a 5.25% cap market gene
Slide 16: NAV: Share Price Discount to NAV
NAV Share Price Discount to NAV Aimco's shares are trading at a significant discount to NAV, and at a 7.7% implied cap rate Aimco continues to generate additional value through NOI growth, redevelopment, entitlement and our tax credit business, though these benefits have been partially offset by mod
Slide 17: Share Repurchase Program
Share Repurchase Program Share Repurchase Program Disconnect between public value of stock and private value of real estate makes share repurchases a highly accretive use of funds Aimco is currently authorized to purchase up to approximately 12.3 million additional shares
Slide 18: Additional Information
Additional Information
Slide 19: How Aimco Creates Value
How Aimco Creates Value Aimco Value Drivers Property Operations Redevelopment Entitlement Tax Credit Transactions Finance Strategy Joint Ventures Joint Ventures Joint Ventures Joint Ventures Joint Ventures Joint Ventures Joint Ventures Joint Ventures
Slide 20: Redevelopment: Driving Value Creation from Owned Assets
Redevelopment Driving Value Creation from Owned Assets Aimco portfolio has job and population growth exceeding US average Housing values near Aimco properties are nearly 1.5 times the national average1 Well located properties with average rent levels in growth markets provide opportunities to increa
Slide 21: Aimco Portfolio Overview
Aimco Portfolio Overview We own a well diversified asset base Portfolio is of high quality, supporting strong NOI growth, supplemented by redevelopment and tax credit activities Conventional portfolio: 446 communities with 129,199 units Affordable portfolio: 315 communities with 36,685 units Propert
Slide 22: Aimco Portfolio Geographic Diversification
Aimco Portfolio Geographic Diversification No single market represents more than 12.5% of gross asset value. More Than 76% of Estimated Gross Asset Value Is in 15 Markets. Aimco Geographic Diversification - Conventional Portfolio
Slide 23: NAV Calculation Methodology: 12/31/2006
NAV Calculation Methodology: 12/31/2006 Footnotes on following page (in millions)
Slide 24: NAV Calculation Methodology (continued)
NAV Calculation Methodology (continued) Property NOI from Supplemental Schedule 2b (trailing 12 months), or $783.8M, less a management fee assumed to equal to $350 per unit (AIV effective units from Supplemental Schedule 11), or $47.1M. This result is divided by the weighted average property cap rat
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