Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Nareit REITweek 2015
22 slides from Apartment Investment And Management's conference presentation, Jun 9, 2015
Slide 1: Nareit REITweek Presentation June 2015
1 NAREIT REITWEEK PRESENTATION JUNE 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: Aimco's business plan provides significant value creation
3 Aimco’s business plan provides 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 year
Slide 4: Property Operations: Same Store Expense Growth
4 7.6 % 14.7% 11.9 % -2.3% 90 95 100 105 110 115 120 2008 2009 2010 2011 2012 2013 2014 2015E Same Store Expense Growth 2009 - 2015E Aimco Peer Avg CPI Aimco COE High customer satisfaction, lower turnover philosophy Greater NOI contribution: Renewal lease rate increases are generally higher than n
Slide 5: Strong operating performance
5 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. From 2006 throug
Slide 6: Portfolio strategy seeks revenue growth with lower volatility
6 Portfolio strategy seeks revenue growth with lower volatility PORTFOLIO MANAGEMENT Geographic diversification reduces concentration risk. • Invest in large, liquid markets whose real estate cycles are asynchronous and not closely correlated • Allocate 95% of our total investment to 12 to 15 targ
Slide 7: Geographic and Price Point Diversification
7 Geographic Diversification (% Conv. NOI) Price Point Diversification (% Conv. GAV) Maintaining diversification while moving to higher average price point Los Angeles expected to outperform in 2015, helping to offset slower Mid Atlantic. Allocation to Coastal California increasing to ~33% in co
Slide 8: Methodical approach to investment selection
8 Methodical approach to investment selection Portfolio strategy executed through leverage-neutral, tax-efficient paired trades where 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 9: Significant portfolio upgrade achieved through paired trade activity
9 Significant portfolio upgrade achieved through paired trade activity PORTFOLIO MANAGEMENT Conventional Portfolio Metrics 2011 2012 2013 2014 1Q 2015 Cumulative Number of Conventional communities 198 175 162 144 141 -29% Number of Conventional apartment homes 62,834 55,879 50,486 43,348 42,566 -32%
Slide 10: Redevelopment projects have value-creation margins of ~30%
10 Redevelopment projects have value-creation margins of ~30% REDEVELOPMENT & DEVELOPMENT VALUE CREATION Completed In Process Lincoln Place Pacific Bay Vistas The Preserve at Marin Ocean House on Prospect One Canal Street Park Towne Place The Sterling Total number of apartment homes at completion 79
Slide 11: Lincoln Place, Venice, CA
11 Lincoln Place, Venice, CA REDEVELOPMENT & DEVELOPMENT Vision Location - Lincoln Place is located near world-famous Venice Beach on the west side of Los Angeles. Venice is home to Silicon Beach and offices for Google, Microsoft, Face book, and You Tube in addition to hundreds of startups including
Slide 12: Pacific Bay Vistas, San Bruno, CA
12 Pacific Bay Vistas, San Bruno, CA REDEVELOPMENT & DEVELOPMENT Vision Location - Pacific Bay Vistas is located at the highly visible intersection of Skyline Boulevard and Sharp Park Road, in the heart of San Bruno, CA. This hilltop location offers spectacular views of both the Pacific Ocean and th
Slide 13: Preserve at Marin, Corte Madera, CA
13 Preserve at Marin, Corte Madera, CA REDEVELOPMENT & DEVELOPMENT Vision Location - Preserve at Marin is located in the heart of South Marin County, which is a quick commute to San Francisco's financial district or a 30 mile drive north to the wine country. The property is situated adjacent to Ring
Slide 14: Ocean House on Prospect, La Jolla, CA
14 Ocean House on Prospect, La Jolla, CA REDEVELOPMENT & DEVELOPMENT Vision Location - Ocean House is located on the prestigious and well-known Prospect Street in La Jolla, CA. Ocean House offers panoramic views of the Pacific Ocean and is a short walk from stunning beaches, tide pools, the Museum o
Slide 15: One Canal Street, Boston, MA
15 One Canal Street, Boston, MA REDEVELOPMENT & DEVELOPMENT Vision Location - One Canal is located in the historic Bullfinch Triangle neighborhood of Boston’s West End. The prominent site sits within walking distance of TD Garden Arena and has excellent access to the North End as well as the central
Slide 16: Park Towne Place, Philadelphia, PA
16 Park Towne Place, Philadelphia, PA REDEVELOPMENT & DEVELOPMENT Vision Location - Park Towne is located along the Benjamin Franklin Parkway, in the heart of Philadelphia's world-renowned museum district. The park-like setting offers relief from the congestion of urban living but is within walking
Slide 17: The Sterling, Philadelphia, PA
17 The Sterling, Philadelphia, PA REDEVELOPMENT & DEVELOPMENT Vision Location - Located in the heart of Philadelphia's growing Market West District, and directly adjacent to the expanding Comcast Corporation headquarters, The Sterling offers exceptional access to the central business district, Ritte
Slide 18: Redevelopment opportunities support $200-$300M investment annually
18 REDEVELOPMENT Opportunities within existing portfolio support $200-$300M investment annually Chicago Yorktown Apartments (364 Apartments) Yorktown Apartments Expansion (~100 Apartments) Philadelphia The Sterling (Expanded Scope) Park Towne Place (Expanded Scope) Washington Merrill House (159 Apar
Slide 19: Aimco's balance sheet is the safest in the sector
19 0% 10% 20% 30% 40% 50% 60% 70% 80% 2015 2016 2017 2018 Aimco Peer Wt. Avg. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2015 2015 - 2017 Aimco Peer Wt. Avg. 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-pricin
Slide 20: Quantity of leverage is in line with peers, and declining
20 6.3x 6.9x 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 Debt and Preferred Equity to EBITDA of 6.9x reflects outstanding balances at 3/31/2015, but overstates
Slide 21: Business & Culture
21 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 22: Forward-looking statements
22 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 2015 financial and operating results; Aimco's development and redevelopment project investm
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