Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (September 2017)
24 slides from Apartment Investment And Management's investor presentation, Sep 25, 2017
Slide 1: Investor Presentation September 2017
1 INVESTOR PRESENTATION SEPTEMBER 2017
Slide 2: Aimco Quick Facts
2 12 Primary Markets 141 Apartment Communities AIMCO QUICK FACTS Aimco seeks to earn long-term returns on equity that are superior to those of the equity REIT and S&P 500 indices by investing in a portfolio of high quality multifamily communities, diversified by both geography and price point, whose
Slide 3: Consistent Growth Over Time; Better Than Peer Average
3 AIMCO QUICK FACTS Consistent Growth Over Time; Better Than Peer Average (1) Peer group consists of AvalonBay, Camden, Equity Residential, Essex, MAA and UDR. Source for peer simple average: SNL Financial. (2) Source for peer average: Company financials. (3) Source for peer simple average: KeyBanc
Slide 4: Projected 2017 AFFO per share growth
4 • Aimco’s projected 2017 AFFO per share growth of 7.6% is expected from NOI increases of $0.10 per share from its Same Store portfolio and $0.19 per share primarily from its lease-up and redevelopment communities. The lease-up communities are substantially leased and on track to deliver their plan
Slide 5: Leadership Team
5 LEADERSHIP TEAM Paul Beldin EVP & Chief Financial Officer 9 Years John Bezzant EVP & Chief Investment Officer 11 Years Lisa Cohn EVP & General Counsel 15 Years Miles Cortez EVP & Chief Administrative Officer 16 Years Steve Crane Real Estate Tax 14 Years Matt Eilen Property Operations Finance 7 Yea
Slide 6: Multifamily Landscape
6 MULTIFAMILY LANDSCAPE (1) Green Street Advisors, 2017 U.S. Apartment Outlook, January 2017 (2) Bureau of Labor Statistics (3) Moody’s Economy.com (4) U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey HOUSING DEMAND IS HEALTHY New Households Job Growth Income Growth(1) • Greater
Slide 7: Strategic Objectives
7 STRATEGIC OBJECTIVES Operational Excellence Redevelopment Focus on Total Contribution to AFFO • Lower resident turnover through careful customer selection and emphasis on measured customer satisfaction • Control costs by focusing on productivity while maintaining asset quality and a high level of
Slide 8: Property Operations Strategy
8 PROPERTY OPERATIONS STRATEGY Customer Selection Customer Satisfaction Resident Retention Centralizing and Standardizing Activities Investing in longer-lived materials Superior Cost Control Focus on Innovation and Efficiency Greater NOI Contribution Predictable Operating Results Selecting and Retai
Slide 9: Predictable Revenue Growth
9 PREDICTABLE REVENUE GROWTH (1) Peer group consists of AvalonBay, Camden, Equity Residential, Essex and UDR. Source for peer information: Bank of America Merrill Lynch, which does not track MAA turnover. Retention is calculated as the difference between 100% and turnover. (2) Volatility as measured
Slide 10: Peer-Leading Expense Control
10 PEER-LEADING EXPENSE CONTROL • Focus on efficient operations: Aimco uses Controllable Operating Expenses ("COE"), which are property level operating expenses before taxes, insurance, and utilities, as a measure of operating efficiency. o For the five years ended 2017, Aimco COE growth is 0.9%. o
Slide 11: Strong Operating Performance
11 STRONG OPERATING PERFORMANCE Aimco 2017 Same Store NOI guidance range is a 3.75% to 4.75% increase over the prior year. At the guidance midpoint, Aimco 2017 Same Store NOI growth of 4.25% is #1 among its peers and 145 bps higher than peer average. While multiple factors impact NOI growth, Aimco r
Slide 12: Redevelopment Strategy
12 REDEVELOPMENT STRATEGY REDEVELOPMENT APPROACH • Own communities where land value is a high percentage of total value. Lower price-point communities with high land values support redevelopment and entitlement activities. • Provide predictable cash flows through excellence in property operations an
Slide 13: Redevelopment Value Creation
13 REDEVELOPMENT VALUE CREATION CONSISTENT VALUE CREATION • The portfolio of Aimco redevelopment and limited development activities predictably results in value creation of 25% to 35%. REDEVELOPMENT PIPELINE • Aimco has eight projects currently under construction including four started in 2017. • Cu
Slide 14: What's Next for Redevelopment?
14 BAY AREA 707 Leahy Preserve At Marin (Expansion) CHICAGO 100 Forest Place Evanston Place Yorktown Apartments (Expansion) MIAMI Flamingo South Beach (Expanded Scope) Yacht Club at Brickell PHILADELPHIA Park Towne Place (Expanded Scope) Chestnut Hall Chestnut Hill Village Townhomes DENVER 21 Fitzsi
Slide 15: Portfolio Strategy
15 PORTFOLIO STRATEGY To upgrade our portfolio through redevelopment, property upgrades, acquisitions, and limited development activity. • We do this through a strict paired-trade discipline with: • DISPOSITION of up to 10% of our portfolio annually, primarily from submarkets with lower revenue grow
Slide 16: Portfolio Strategy - Capital Allocation
16 PORTFOLIO STRATEGY - CAPITAL ALLOCATION • In 2017, consistent with our portfolio strategy, Aimco plans to sell properties approximating 5% of our GAV, with the proceeds reinvested in redevelopment, property upgrades, and the acquisition of our partner’s 47% interest in the Palazzo communities. •
Slide 17: Portfolio Diversification
17 PORTFOLIO DIVERSIFICATION Aimco defines apartment community quality as follows: "A" quality communities are those earning rents greater than 125% of local market average; "B" quality communities are those earning rents 90% to 125% of local market average; "C+" quality communities are those earnin
Slide 18: Aimco Exposure to New Supply
18 AIMCO EXPOSURE TO NEW SUPPLY • Absent above-average demand, new supply generally impacts rent growth only when completions are greater than 2% of existing inventory. Nationwide, 2017 completions as a percentage of existing inventory are projected to be 2.5%; 2018 is projected to be similar. This
Slide 19: Aimco Exposure to New Supply
19 AIMCO EXPOSURE TO NEW SUPPLY • Where there is new supply, it is typically delivered at the highest rents in the market, putting competitive pressure primarily on existing high-rent "A" communities. • Aimco emphasizes price point and submarket diversification to mitigate the impact of new supply.
Slide 20: Aimco Exposure to New Supply
20 AIMCO EXPOSURE TO NEW SUPPLY • As a result of diversification, Aimco's exposure to competitive new supply is primarily limited to its "A" price point communities in submarkets with projected completions of more than 2% of existing stock during 2018…or approximately 36% of Aimco GAV. The exposure
Slide 21: High Quality Balance Sheet
21 HIGH QUALITY BALANCE SHEET • Aimco has a safe, flexible balance sheet with abundant liquidity. • Aimco leverage consists primarily of non-recourse, amortizing, fixed-rate property debt and perpetual preferred equity. • Aimco forecasted Debt and Preferred Equity to EBITDA ratio of 6.6x overstates
Slide 22: Team and Culture
22 TEAM AND CULTURE TEAM ENGAGEMENT • Out of hundreds of participating companies, Aimco is one of only a dozen recognized as a "Top Place to Work" in Colorado for the past five consecutive years. • For the past five years, Aimco team engagement scores measured on a 1 to 5 scale have averaged better
Slide 23: Aimco Commitment
23 AIMCO COMMITMENT COMMITMENT TO CONSERVATION In 2016, Aimco invested strategically $3.5M in energy conservation. Over the last ten years, Aimco has achieved the following: COMMITMENT TO COMMUNITY Team members turn their passion for community service into action through Aimco Cares, which gives tea
Slide 24: Forward Looking Statements & Other Information
24 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 2017 results, including but not limited to: P
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