Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (January 2016)
19 slides from Apartment Investment And Management's investor presentation, Jan 6, 2016
Slide 1: Investor Presentation January 2016
INVESTOR PRESENTATION JANUARY 2016
Slide 2: Strategic Areas of Focus
2 STRATEGIC AREAS OF FOCUS REDEVELOPMENT • Redevelopment is a core business activity • Robust pipeline of redevelopment opportunities within existing portfolio • Occasional development when warranted by risk-adjusted returns • Above-average property operating results over cycle • Above-average resid
Slide 3: Aimco Value Creation
3 AIMCO VALUE CREATION ECONOMIC INCOME: year-over-year NAV growth plus annual dividend Returns > 13% of current share price $3.00 Property Operations Aimco’s 2015 projected Same Store NOI growth of 5.6% creates ~$3.00 of NAV per share. $0.50 Redevelopment Annual investment of $200-$300M, at value cr
Slide 4: Property Operations
5.5% 5.1% 4.9% 4.7% 6.3% 5.7% 5.3% 5.6% 5.6% 2.4% 0.7% 0.1% 5.2% 3.4% 1.1% 1.5% 5.6% 3.8% 2.8% 2.4% 5.8% 4.4% 2.7% 3.5% Sep-14 Oct-14 Nov-14 Dec-14 Sep-15 Oct-15 Nov-15 Dec-15 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Same Store Rental Rates Renewals New Leases Wt. Avg. PROPERTY OPERATIONS • Greater N
Slide 5: Peer-Leading Expense Control
PEER-LEADING EXPENSE CONTROL 5 (1) For Aimco and peers, results include all property operating costs, which is comprised of COE, taxes, insurance and utilities. Peer group consists of AvalonBay, Camden, Equity Residential, Essex, MAA, Post Properties and UDR. Data Sources: SNL Financial, company rep
Slide 6: Strong Operating Performance
STRONG OPERATING PERFORMANCE (1) Source: SNL Financial. Peer group consists of AvalonBay, Camden, Equity Residential, Essex, MAA, Post Properties and UDR. Company reports. Individual market peers vary based on geographic exposure. • From 2010 through 2014, the compound annual growth rate for Aimco S
Slide 7: Redevelopment Strategy
REDEVELOPMENT STRATEGY 7 BUY RIGHT • Own and operate real estate in special locations where land value appreciates faster than buildings depreciate • Higher-growth markets support strategic redevelopment opportunities REDEVELOP WITHIN PORTFOLIO • Reposition existing operating properties through phas
Slide 8: Redevelopment Value Creation
8 REDEVELOPMENT VALUE CREATION VALUE CREATION FROM 2012 - 2015 REDEVELOPMENTS (1) Based on market NOI capitalization rates reported in CBRE North America’s Cap Rate Survey for First Half 2015. (2) During 2008, Aimco recognized impairment losses on two of its redevelopment properties totaling approxi
Slide 9: What's Next for Redevelopment?
9 WHAT’S NEXT FOR REDEVELOPMENT? REDEVELOPMENT PIPELINE BAY AREA 707 Leahy (110 Apartments) CHICAGO Yorktown Apartments (364 Apartments) Yorktown Apartments Expansion (~100 Apartments) MIAMI Yacht Club at Brickell (357 Apartments) GREATER DC Merrill House (159 Apartments) PHILADELPHIA The Sterling (
Slide 10: Portfolio Strategy
10 PORTFOLIO STRATEGY To continuously upgrade our portfolio through redevelopment, property upgrades, acquisitions, and limited development activity. We do this through a strict paired-trade discipline with: DISPOSITION of 5-10% of our portfolio annually, primarily from submarkets with lower revenue
Slide 11: Aimco Investment Committee
AIMCO INVESTMENT COMMITTEE 11 Aimco portfolio strategy execution is overseen by an Investment Committee: • Lisa Cohn, EVP & General Counsel, Chair • Terry Considine, Chief Executive Officer • Miles Cortez, Chief Administrative Officer • John Bezzant, Chief Investment Officer • Paul Beldin, Chief Fin
Slide 12: Portfolio Strategy Execution
PORTFOLIO STRATEGY EXECUTION 12 LEVERAGE IMPACT ASSET SALES $598 6% $269 2012 $406 4% $203 2013 $689 7% $435 2014 $413 4% $258 2015E $2,107 5% $1,165 Total/ Wt. Avg. Gross proceeds % of Portfolio Net proceeds REINVESTMENT, NET OF FINANCING* $78 47 69 $194 $97 39 24 $160 $139 50 284 $473 $124 51 111
Slide 13: 2012 - October 2015 Paired Trade Activity
2012 - October 2015 Paired Trade Activity • Selective investments through acquisition, and in limited circumstances development, are made in markets where we are under-allocated (for example, the Bay Area and Manhattan) and/or where we seek to upgrade our locations within a market (for example, Bost
Slide 14: Portfolio Transformation
• Aimco’s portfolio management activities have resulted in a significant improvement in portfolio quality. • Over the last four years, Aimco has exited: Dallas; Daytona Beach; Detroit; Fort Wayne, IN; Grand Rapids, MI; Houston; Jacksonville; Lexington, MD; Naples, FL; Orlando; Palm Beach, FL; Phoeni
Slide 15: Bay Area Acquisition Paired Trade Asset Quality Analysis
BAY AREA ACQUISITION PAIRED TRADE ASSET QUALITY ANALYSIS (1) FCF IRR assumes capital replacements of $1,200 per apartment home for the communities sold and for the community acquired. (2) For acquisition property, represents stabilized average revenue per apartment home based on market rents as of J
Slide 16: Bay Area Acquisition Paired Trade Financial Analysis
BAY AREA ACQUISITION PAIRED TRADE FINANCIAL ANALYSIS FCF Break-Even Projected in 2018 16 (1) FCF assumes capital replacements of $1,200 per apartment home for the communities sold and for the community acquired. (2) Source: REIS NOI Yield STABILIZED PROJECTIONS 4.9% FCF Yield(1) 4.4% Avg Revenue Per
Slide 17: High Quality Balance Sheet
6.1x 7.1x 5.1x Peer Wt. Avg. Aimco Aimco Adj for Refunding Risk HIGH QUALITY BALANCE SHEET • Aimco Debt and Preferred Equity to EBITDA of 7.1x reflects outstanding balances at 9/30/2015, but overstates the refunding risk of our leverage. • Our property debt balances at maturity are more than $800 mi
Slide 18: We Live Our Values
Integrity Respect Collaboration Customer Focus Performance Our Vision To be the best owner and operator of apartment communities, inspired by a talented team committed to exceptional customer service, strong financial performance, and outstanding corporate citizenship. Aimco Cares In 2014, we celebr
Slide 19: Forward Looking Statements & Other Information
19 FORWARD LOOKING STATEMENTS & OTHER INFORMATION 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'
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