Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — NAREIT November 2005
17 slides from Apartment Investment And Management's conference presentation, Nov 2, 2005
Slide 1: NAREIT November 2005
NAREIT November 2005
Slide 2: Table of Contents
Table of Contents A. Aimco Overview B. Seven Ways Aimco Makes Money 2005 Outlook Assumptions 2006 Strategy
Slide 3: A. Aimco Overview
A. Aimco Overview Largest owner/operator of multi-family properties in U.S. Own approximately 200,000 units, at over 900 properties Manage an additional 47,000 units (principally asset managed) Enterprise value approximately $12 billion S & P 500 company Market capitalization more than $4 billion Ge
Slide 4: A. Aimco Overview: Well diversified asset base
A. Aimco Overview Well diversified asset base A to C properties Focus on B properties in A locations Conventional portfolio includes: Core Property Portfolio with 328 properties having 99,000 units in 38 markets Non-Core Portfolio with 238 properties having 61,000 units in 27 markets (to be sold ove
Slide 5: B. Seven Ways Aimco Makes Money
B. Seven Ways Aimco Makes Money Operating multi-family properties Conventional Affordable University Communities Generating fee income Redeveloping / reinvesting in properties Managing portfolio Increasing land values through entitlements Managing cost of capital Managing G&A / productivity MSPhotoE
Slide 6: 1. Operating Multi-family Properties: Conventional Operations - Same Store
1. Operating Multi-family Properties Conventional Operations - Same Store: Strong improvement in occupancy and average rental rates 3Q average daily occupancy 93.4% September and October occupancies 94.4% and 94.7%, respectively 3Q rental rates up 2.7% YOY Pricing and resident quality business rules
Slide 7: 1. Operating Multi-family Properties: Conventional Operations - Core
1. Operating Multi-family Properties Conventional Operations - Core Core portfolio Accounted for 80% of conventional NOI September occupancy 95.6%, in line with peer average Rents $872, up 3.2% year-over-year Operating margin 58% Top markets predominantly coastal Average home prices 55% higher than
Slide 8: 1. Operating Multi-family Properties: Affordable and University
1. Operating Multi-family Properties Affordable: Stable business Focused on approximately 125 core properties with average rents over $780 located in major urban areas University: Currently 20 properties with 5,596 units September occupancy at 96.6% Rents up 5% over 2004/2005 school year
Slide 9: 2. Fee Income
2. Fee Income Fee income: Generated from tax credit syndication, dispositions, refinancings Aimco owned properties are captive pipeline of ongoing activity Strong pipeline increases predictability of income stream Year to date, awarded 10 tax credit allocations for $52 million compared with 7 and $3
Slide 10: 3. Redevelopment
3. Redevelopment Creekside - Denver, CO Belmont Place - Marietta, GA Stabilized in 3Q05, five quarters ahead of schedule Identified pipeline 120 properties WITHIN our existing portfolio $1 B estimated spend at $150-200 million per year Tim Beaudin to Lead Development Team Assets with potential to in
Slide 11: 4. Portfolio Management
4. Portfolio Management Investing in desirable markets yet maintaining focus on long-term value Concentrate portfolio in fewer markets Reduce from 65 to approximately 38 markets total, targeting by the end of 2008 Expect to exit 8 markets in 2005 By year-end 2006, Aimco expects that 85% of conventio
Slide 12: 5. Entitlement
5. Entitlement Realize upside in land values through increasing density of use Aimco portfolio of B properties in A locations provides deep pipeline of opportunities Older properties built at lower densities Focus on locations where land is scarce Underlying land value may be greater than current im
Slide 13: 6. Cost of Capital
6. Cost of Capital Floating rate exposure Partially offset by floating rate assets Variability < $0.02/quarter based on Bloomberg compilations Leverage level good Aimco's capital structure is by design Property level debt offers the lowest risk WACC among lowest of REITs Capitalization plan To fund
Slide 14: 7. G&A / Productivity
7. G&A / Productivity We are very focused on driving a disciplined approach to expense controls through process and technology improvements Actions will reduce G&A and operating costs in 2006 Focus on process, automation and routinization to increase efficiency and take advantage of scale Continue t
Slide 15: C. 2005 Outlook (Guidance Assumptions)
C. 2005 Outlook (Guidance Assumptions) 2005 projections demonstrate strong same store performance and include: 4th quarter mid-point occupancy of 94.0% driving a 190 bp increase in full-year average occupancy from 90.3% in 2004 to 92.2% mid-point 2005 4th quarter NOI growth mid-point of 8.6% over 4Q
Slide 16: D. 2006 Strategy
D. 2006 Strategy Going into 2006, Aimco will be focused on: Property operations: Leveraging higher occupancy to drive increased rent. Disciplined expense control Fee income: Growing tax credit redevelopment stream to improve asset quality and generate continued strong fee income Redevelopment: Execu
Slide 17: This Presentation Contains Forward-looking Statements
This Presentation Contains Forward-looking Statements This presentation contains forward-looking statements, including statements regarding future results and specifically fourth quarter 2005 expected results. These statements are subject to certain risks and uncertainties, including but not limited
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