Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Nareit REITworld 2019
22 slides from Apartment Investment And Management's conference presentation, Nov 12, 2019
Slide 1: Investor Presentation Nareit REITworld 2019
Investor Presentation Nareit REITworld 2019 November 12-14 Preserve at Marin Corte Madera, CA
Slide 2: Economic Income and earnings
Economic Income and earnings Aimco’s primary measure of long-term financial performance is Economic Income. Measuring Aimco shareholder value creation by the per share change in Net Asset Value (NAV) plus Cash Dividends paid, Aimco Economic Income has compounded: Since IPO through 3Q 2019(1), at 14%
Slide 3: Strategic focus
Market-rate acquisition IRRs based on weighted-average, risk-adjusted IRRs in Aimco markets as published by Green Street Advisors. Aimco Economic Income is the result of performance in five key business areas. Operations Drive rent growth based on high levels of resident retention, through superior
Slide 4: Peer-leading same store operations
PEER-LEADING SAME STORE OPERATIONS YTD through Sept 30, 2019, Aimco has: Revenue growth of 4.0%, 30 bps better than any peer; Expense growth of 1.9%, 60 bps better than any peer; Net operating income (NOI) growth of 4.7%, 50 bps better than any peer; and Same Store NOI margin of 73.2%, 100 bps ahead
Slide 5: Innovation & Productivity
Innovation & Productivity Focus on efficient, productive operations: Aimco considers Controllable Operating Expenses ("COE"), defined as property level expenses before taxes, insurance, and utilities, as one measure of operating efficiency. 2019 Same Store COE growth is expected to be 50 bps. For th
Slide 6: Redevelopment Cycle
Redevelopment Cycle “SMALL PHASE” REDEVELOPMENTS - INVENTORY MANAGEMENT When practical, Aimco prefers “small phase” redevelopments which provide optionality to improve the offering and flexibility to adjust the volume to market demand. Current examples include Bay Parc and the Center Tower at Flamin
Slide 7: Redevelopment: 2019 Starts Leahy, Redwood City, CA
Redevelopment: 2019 Starts 707 Leahy, Redwood City, CA BEFORE: Aged improvements mask the quality of the location and the opportunity for higher rents. AFTER: Completely rebuilt top-down and inside-out, commanding rents that provide an accretive return on the incremental investment. In the second qu
Slide 8: Redevelopment: 2019 Starts Flamingo Point, Miami Beach, FL
Redevelopment: 2019 Starts Flamingo Point, Miami Beach, FL Aimco will complete, by year-end, the initial $40M phase of redevelopment which includes the creation of a 43,000 square foot entry plaza, new retail offerings, common area upgrades, plus extensive landscaping and exterior amenities. Aimco h
Slide 9: Redevelopment Pipeline
Redevelopment Pipeline POTENTIAL REDEVELOPMENT PROJECTS Aimco plans future starts to backfill its redevelopment pipeline taken from opportunities illustrated below. Aimco evaluates projects in a disciplined risk-adjusted manner. In appropriate instances, Aimco uses third-party developers to benefit
Slide 10: Portfolio Management
Portfolio Management Aimco continues to be active in the pursuit of value-creating opportunities both inside and outside its portfolio. Capital Allocation Category Description Aimco Example Covered-land investments Land value that approaches or exceeds the current developed value. Eastpointe/Parc Mo
Slide 11: Portfolio Management
Portfolio Management In 2019 Aimco has RE-ALLOCATED CAPITAL from submarkets with lower-growth prospects, such as Suburban Chicago, to submarkets with HIGHER-GROWTH PROSPECTS, such as Miami Beach (through redevelopment of Flamingo Point) and Brickell (through acquisition of 1001 Brickell Bay Drive).
Slide 12: Portfolio Management: 1001 Brickell Bay Drive
Portfolio Management 1001 BRICKELL BAY DRIVE Aimco evaluated this acquisition several different ways: Defensive – 1001 Brickell, contiguous to our Yacht Club apartments, was for-sale with existing entitlements to increase density. Aimco considered that a possible redevelopment of the site would disr
Slide 13: High quality balance sheet
High quality balance sheet Aimco limits risk through balance sheet structure Manage refunding risk by property debt with low leverage, long duration, and regular amortization: 32% LTV 25% LTV refunding risk at maturity after consideration of perpetual preferred securities and annual amortization of
Slide 14: High quality balance sheet
High quality balance sheet $247M of property debt is payable at par in 2020 but does not mature until 2021; Aimco intends to repay this debt in 2020. Refunding risk is lower than total leverage due to principal amortization paid from retained earnings. Since September 2018, through net leverage deci
Slide 15: Team and Culture
TEAM AND CULTURE TEAM ENGAGEMENT Out of hundreds of participating companies, Aimco is one of seven recognized as a "Top Place to Work" in Colorado for each of the past seven years. In 2019, Aimco, for the first time, was also recognized as a “Top Place to Work” in the Bay Area. For the past five yea
Slide 16: Management team
Paul Beldin EVP & Chief Financial Officer 11 Years John Bezzant EVP & Chief Investment Officer 13 Years Lisa Cohn EVP & General Counsel 17 Years Miles Cortez EVP & Chief Administrative Officer 18 Years Matt Eilen Property Operations Finance 9 Years Patti Fielding EVP: Debt & Treasurer President: Aim
Slide 17: Why invest in Aimco?
Why invest in Aimco? Best-in-Class Operations: Lower resident turnover through intentional focus on customer selection and satisfaction drives peer-leading margins. Paired-Trade Capital Allocation Discipline: Aimco adheres to a disciplined paired-trade strategy comparing expected unlevered returns o
Slide 18: Appendix A - Supply outlook
Appendix A - Supply outlook Aimco considers competitive new supply to be significant primarily to “A” price point communities in submarkets with completions projected to be more than 2.0% of existing stock. Even where markets face elevated new supply, the quality of the Aimco offering or its locatio
Slide 19: Appendix B - Preliminary 2020 outlook
Appendix B - Preliminary 2020 outlook In late September, Aimco published a preliminary outlook for 2020 to communicate its “Base Case Model” for AFFO and NAV for 2020. Aimco will provide 2020 guidance with the issuance of its fourth quarter 2019 Earnings Release, early in 2020. 2020 AFFO OUTLOOK Aim
Slide 20: Appendix B - Preliminary 2020 outlook
Appendix B - Preliminary 2020 outlook 2020 NAV & ECONOMIC INCOME OUTLOOK Aimco publishes semi-annually its internal estimate of Net Asset Value. As of 3Q 2019, Aimco estimated its NAV at $58 per share, up $2 from 3Q 2018. Given Aimco’s forecast of 4Q results and assuming unchanged market pricing, Ai
Slide 21: Appendix C - Upcoming events
Appendix C – upcoming events Aimco Fourth Quarter 2019 Earnings Conference Call Friday, January 31, 2020 – 1pm ET One-on-One meetings Call to schedule Come see Aimco’s most recent investment in Miami Beach and Brickell. Aimco invites you to tour the Flamingo Point redevelopment and Brickell Bay Driv
Slide 22: Forward Looking Statements & Other Information
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 2019 and 2020 expectations, including but not li
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