Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (November 2019)
20 slides from Apartment Investment And Management's investor presentation, Nov 12, 2019
Slide 1: Net Asset Value Presentation as of September 30, 2019
Slide 2: Introduction
INTRODUCTION Net Asset Value is calculated as the market value of a company's assets less its liabilities and obligations. Net Asset Value is considered useful by some investors because the value of company assets can be readily estimated, even for non-earning assets such as land or properties under
Slide 3: General Disclosures
GENERAL DISCLOSURES The information provided in this presentation is intended to assist users in estimating Aimco’s Net Asset Value per share. This is not an offer to sell securities and does not constitute legal, tax, investment or other professional advice on any subject matter. Information provid
Slide 4: General Disclosures (continued)
GENERAL DISCLOSURES (CONTINUED) This Net Asset Value per share information is intended to measure Aimco’s value as a going concern, consistent with International Financial Reporting Standards (“IFRS”), and is not necessarily representative of the amount a stockholder could expect to receive in a liq
Slide 5: General Disclosures (continued)
GENERAL DISCLOSURES (CONTINUED) Insurance risk, including the cost of insurance; and natural disasters and severe weather such as hurricanes; and Legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of governmental regulation
Slide 6: Valuation Methodology
VALUATION METHODOLOGY Real Estate - Aimco estimated the value of its communities using methods management believes to be appropriate based on the characteristics of the communities. For valuation purposes, Aimco segregated its portfolio into the following categories: Stabilized Portfolio; Redevelopm
Slide 7: Valuation Methodology (continued)
VALUATION METHODOLOGY (CONTINUED) Other Tangible Assets - consist of cash, restricted cash, accounts receivable and other assets for which Aimco reasonably expects to receive cash through the normal course of operations. Debt - the fair value of Aimco's debt considers the duration of the property de
Slide 8: Valuation Methodology (continued)
VALUATION METHODOLOGY (CONTINUED) Other Items of Note Real estate values are based on Aimco’s current uses and most importantly do not include the value of unused or underused land or air rights. Real estate values generally do not take into consideration transaction costs or other items such as rea
Slide 9: September 30, 2019 Estimated Net Asset Value: $58 per share
September 30, 2019 Estimated Net Asset Value: $58 per share* $85 $1 -$28 Fair Value of Real Estate Fair Value of Other Tangible Assets and Liabilities Cash and restricted cash + Other tangible assets - Other tangible liabilities Fair Value of Leverage Carrying value of debt + Mark-to-market adjustme
Slide 10: September 30, 2019 Estimated Fair Value of Real Estate: $85 per share
September 30, 2019 Estimated Fair Value of Real Estate: $85 per share* Stabilized Real Estate Portfolio Less: Annualized 3Q 2019 NOI Management fee of 2% of revenue Divided By: NOI cap rate of 4.9% Redevelopment and Development Portfolio Cash flows discounted from property stabilization to September
Slide 11: Fair Value of Real Estate as of September 30, 2019
Fair Value of Real Estate as of September 30, 2019 ($M) Stabilized Portfolio NOI, less management fee $568 (1) NOI cap rate 4.9% (2) Stabilized Portfolio Value $11,592 Non-Stabilized Portfolio Redevelopment and Development $1,431 (3) Other Real Estate 275 (4) Non-Stabilized Portfolio Value $1,706 Fa
Slide 12: Fair Value of Other Assets and Liabilities, Preferred Equity and Debt
Fair Value of Other Assets and Liabilities, Preferred Equity and Debt as of September 30, 2019 ($M) Consolidated Amounts as Reported Ownership Adjustments (5) Fair Value Adjustments Adjusted Amounts (6 ) (7 ) (8 ) (7 ) (9 ) *Refer to Footnotes beginning on page 14. Other Tangible Assets Cash and cas
Slide 13: Net Asset Value as of September 30, 2019
Net Asset Value as of September 30, 2019 ($M, except per share amounts) Fair Value of Real Estate$13,298 Fair Value of Other Tangible Assets and Liabilities, Net$182 Fair Value of Debt$(4,430) Net Asset Value $9,050 Total Shares, Units and Dilutive Share Equivalents Outstanding 157 (10) Net Asset Va
Slide 14: Footnotes
Footnotes Stabilized Portfolio NOI ($000s) Consolidated Amount Ownership Adjustments Adjustments Adjusted Amounts Rental and other property revenues Same Store $179,727 $(672) $— $179,055 Acquisitions, Redevelopment and Development 28,547 — (16,193) a 12,354 Other Real Estate 13,613 370 (3,453) b 10
Slide 15: Footnotes (continued)
Footnotes (continued) (continued) Represents revenues and expenses related to three development and four redevelopment communities: Parc Mosaic, located in Boulder, Colorado; The Fremont, located in North Aurora, Colorado; Elm Creek Townhomes, located in Elmhurst, Illinois; Flamingo Point, located i
Slide 16: Footnotes (continued)
Footnotes (continued) 2. Represents Aimco’s estimated current NOI cap rate for its Stabilized Portfolio, which was calculated by Aimco on a property-by- property basis, based primarily on information published by CBRE in its 1H 2019 Cap Rate Survey. CBRE is a nationally recognized provider of real e
Slide 17: Footnotes (continued): Cap Rates by Market
Footnotes (continued) 2.(continued) 3Q 2019 Stabilized Portfolio Range of CBRE Cap Rates for Aimco's Portfolio Average Revenue Apartmentper Apartment CommunitiesHomesHome Average Rent as a Percentage of Market Average Average Quality Grade Low High Aimco Selected Cap Rate Atlanta 5 817 $ 1,720 140 %
Slide 18: Footnotes (continued)
Footnotes (continued) Represents the value of three communities under development and four communities under redevelopment: Parc Mosaic, located in Boulder, Colorado; The Fremont, located in North Aurora, Colorado; Elm Creek Townhomes, located in Elmhurst, Illinois; Flamingo Point & Bay Parc Plaza,
Slide 19: Footnotes (continued)
Footnotes (continued) Represents certain land holdings and four recently purchased buildings, 1001 Brickell Bay Drive, One Ardmore, 50 Rogers, and Avery Row. Represents adjustments to reflect Aimco’s share of the financial results of unconsolidated real estate partnerships and to exclude the noncont
Slide 20: Definitions
Definitions AIMCO OPERATING PARTNERSHIP (OP): AIMCO Properties, L.P., a Delaware limited partnership, is the operating partnership in Aimco’s UPREIT structure. Aimco owns approximately 94% of the common partnership units of the Aimco OP. PORTFOLIO QUALITY RATINGS: Aimco measures the quality of apart
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