Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — NAREIT REITweek 2014
15 slides from Apartment Investment And Management's conference presentation, Jun 2, 2014
Slide 1: Investor Presentation NAREIT REITweek – June 2014
1 INVESTOR PRESENTATION NAREIT REITWEEK – JUNE 2014
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 for significant value creation
3 Aimco’s business plan provides for significant value creation AIMCO VALUE CREATION Shares priced at a discount while NAV continues to grow Net Asset Value per Share Consensus NAV Estimate (1) $33.73 Aimco Share Price May 30, 2014 $31.48 Price / NAV 93% Peer Average Price / NAV (2) 100% Shares trad
Slide 4: High customer service, lower turnover philosophy
4 High customer service, lower turnover philosophy Greater NOI contribution: Renewal lease rate increases are generally higher than new lease rate increases; renewals avoid costs associated with higher vacancy, refurbishment and marketing. More predictable operating results: Renewal lease rate i
Slide 5: Strong operating performance
5 Strong operating performance Aimco’s operating results are above average. PROPERTY OPERATIONS * Peer group consists of AvalonBay, Camden, Equity Residential, Essex, Home Properties, Post Properties and UDR. Individual market peers vary based on geographic exposure. % Aimco NOI Revenue NOI Revenu
Slide 6: Maintaining diversification while moving to higher average price point
6 Price Point Diversification (% Conv GAV) Geographic Diversification (% Conv NOI) Maintaining diversification while moving to higher average price point Los Angeles expected to outperform in 2014, helping to offset slower Mid Atlantic. Allocation to Coastal California increasing to ~33% in comi
Slide 7: Methodical approach to investment selection
7 Methodical approach to investment selection Portfolio strategy executed through leverage-neutral, tax-efficient paired trades when: 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 8: Capital recycling contributes to high rate of Free Cash Flow/AFFO growth
8 Capital recycling contributes to high rate of Free Cash Flow/AFFO growth Sell Affordable properties and lowest rated Conventional properties: Lower average revenues per apartment home; lower NOI margins; located in submarkets with lower projected revenue growth. Invest in redevelopment, proper
Slide 9: Earnings and Dividend Growth 2010-2014E
9 8% 5% 14% 100 120 140 160 180 2010 2011 2012 2013 2014E Earnings and Dividend Growth 2010 - 2014E AFFO per share FFO per share NOI High rate of increase in average revenues per apartment home, high rate of AFFO growth Owning fewer apartment homes with higher rents, higher margins and higher proj
Slide 10: Current redevelopments add approximately $1.50 to NAV per share
10 REDEVELOPMENT Current redevelopments add approximately $1.50 to NAV per share Chicago Elm Creek ($12M) Philadelphia The Sterling ($25M) Seattle 2900 on First ($7M) Los Angeles Area The Palazzo at Park La Brea ($15M) Lincoln Place ($365M) Bay Area Pacific Bay Vistas ($121M) Preserve at Marin ($125
Slide 11: Redevelopment opportunities support $200-$250M investment annually
11 REDEVELOPMENT Opportunities within existing portfolio support $200-$250M investment annually San Diego Ocean House on Prospect (60 Apartments) Chicago Yorktown Apartments (Expansion Approx. 100 Apartments) Manhattan Tempo (200 Apartments) Philadelphia Park Towne Place (959 Apartments) Washington
Slide 12: Quantity of leverage is in line with peers, and declining
12 Quantity of leverage is in line with peers, and declining We achieved our target for lower leverage two years ahead of plan. Aimco’s leverage of 7.4x reflects outstanding balances at 3/31/2014, but overstates the refunding risk of our leverage. With a lower AFFO payout ratio, Aimco’s level of
Slide 13: Quality of leverage is superior
13 Quality of leverage is superior BALANCE SHEET (1) Peer group consists of AvalonBay, Camden, Equity Residential, Essex, Home Properties, MAA, Post Properties and UDR. Data as of 3/31/2014. (2) Represents the sum of (a) variable rate debt outstanding and (b) fixed rate debt maturing within one year
Slide 14: We live our values, foster a culture of success and work collaboratively
14 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, strong financial performance, and outstanding corporate citizen
Slide 15: Forward-looking statements
15 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 2014 financial and operating results; Aimco's development and redevelopment project investm
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