Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — NAREIT November 2004
16 slides from Apartment Investment And Management's conference presentation, Nov 17, 2004
Slide 1: NAREIT - November 2004
NAREIT June 2004 NAREIT - November 2004
Slide 2: Topics
Topics 1. Third quarter highlights Operations Portfolio management activity Balance sheet 2. Aimco Capital 3. Redevelopment 4. Fourth quarter
Slide 3: Third quarter highlights - FFO as expected
Third quarter highlights - FFO as expected FFO meets guidance (on a comparable basis) and exceeds guidance including transactional results FFO and AFFO PER SHARE RESULTS FFO as reported (in accordance with NAREIT definition) $0.78 Addback: Redemption related preferred stock issuance 0.02 Impairment
Slide 4: Third quarter results - Operations progressing
Third quarter results - Operations progressing First sequential increase in Same Store NOI since 2Q03, marking progress in turnaround +2.2%* sequential increase in Same Store NOI In line with NOI guidance of +1.5 to 2.5% Driven by revenue: Up 3.9% sequentially, or $10 million. Well above peer averag
Slide 5: Third quarter results - Opportunity on expense side
Third quarter results - Operations progressing Opportunity on expense side Third quarter expenses: Cost per move-in higher than expected by approximately $100 due to "peakload" activity Contract services required to meet 29,000 turns Payroll expenses reflected increased leasing activity Repairs and
Slide 6: Third quarter results - Accretive portfolio management activity
Third quarter results - Accretive portfolio management activity 3Q04 Activity Sales Acquisitions Gross price ($mm) 582 $ 128 $ Number of units 5,149 812 Average cap rate 4.5% 6.7% Average monthly rent 856 $ 1,372 $ Sold 22 properties at average 4.5% cap rate; Acquired 4 properties in most desirable
Slide 7: Accretive portfolio management activity
Accretive portfolio management activity Successful portfolio management activity builds Net Asset Value Portfolio strategy Sales Acquisitions Los Angeles* Gross price ($mm) 325 $ 361 $ Price/unit 254,000 $ 319,000 $ Average age 17 New Average rent 1,350 2,550 $ Miami** Gross price ($mm) 140 $ 121 $
Slide 8: Accretive portfolio management activity - Sold, Acquired
Accretive portfolio management activity - SOLD ACQUIRED Bay Club Bay Parc Yacht Club Miami
Slide 9: Portfolio management activity - Strategy unchanged
Portfolio management activity Strategy unchanged Focus on core properties in selected markets. Hold these properties for the long-term and reinvest in these properties to enhance portfolio value Reduce active markets to approximately 40 by selling non-core properties and reinvest sales proceeds for
Slide 10: Third quarter results - Balance sheet improving safety and liquidity
Third quarter results - Balance sheet improving safety and liquidity Debt reduced by $376 million Property debt down $166 million primarily as a result of core property sales Corporate debt down $210 million Net debt as percent of enterprise value was 52% at end 3Q04 versus 56% at end 2Q04 Corporate
Slide 11: Redevelopment - projects at various stages
Redevelopment - 33 projects at various stages 6 major conventional 16 moderate size conventional (i.e., upgrades completed as units turn) 11 Affordable tax credit (funded by third party tax credit equity of tax exempt debt) Occupancy gains in 3Q04 at 5 major projects in lease up add $3 million to NO
Slide 12: Redevelopment - project examples
Redevelopment - Clubhouse at The Ashford, a 221- unit property in Atlanta Belmont Place, a 326-unit project in suburban Atlanta. Construction on schedule for mid-2005 completion Franklin Oaks in Nashville with 468 units. In-house recording studio part of redevelopment, a unique and widely publicized
Slide 13: Aimco Capital - Affordable
Aimco Capital - Affordable occupancy 94%; rents $637 and expect to remain consistent. 3Q property NOI $23 million Aimco Capital FCF $26 million Property management revenue net of expenses $4.7 million Fee and Asset Management - Strong 120+ transactions YTD Activity fee and asset management revenue $
Slide 14: Fourth quarter - Full year FFO range
Fourth quarter - Full year FFO range $2.75 - $2.79; AFFO $2.23 - $2.27 Fourth quarter assumptions NOI up sequentially 3.5% - 5.0% Acquisitions and LP tender $40 - $160 million; dispositions $200 - $300 million, including core property sales, with net cash proceeds of $75 - $125 million Third quarter
Slide 15: Fourth quarter and full year - Full year 2004 sources and uses
Fourth quarter and full year - Full year 2004 sources and uses SOURCES $ millions AFFO 210 $ Sales proceeds 470 Refinancing proceeds 150 Preferred stock proceeds 278 GE JV proceeds (carryover from 4Q03) 117 NET SOURCES 1,225 $ USES Principal amortization and debt maturities 156 Preferred stock redem
Slide 16: This Presentation Contains Forward-looking Statements
This Presentation Contains Forward-looking Statements This presentation contains forward-looking statements, including statements regarding future results. These statements are subject to certain risks and uncertainties, including but not limited to Aimco's ability to maintain occupancy, maintain an
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