Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Citi Global Property CEO Conference 2011
17 slides from Apartment Investment And Management's conference presentation, Mar 14, 2011
Slide 1: Aimco at the Citi Global Property CEO Conference, March 2011
AIMCO Apartment Investment and Management Company Citi Global Property CEO Conference March 2011
Slide 2: Forward-looking statements
2 This presentation contains forward-looking statements within the meaning of the federal securities laws, including statements regarding projected results and specifically forecasts of 2011 financial results. These forward-looking statements are based on management's judgment as of this date and in
Slide 3: Aimco Key Valuation Factors
3 Aimco Key Valuation Factors Aimco holds high quality assets concentrated in 20 target markets. Aimco is a reliable operator with clear operating objectives. Aimco has limited balance sheet risk, good liquidity and virtually no near-term refunding risk. Apartment supply and demand fundamentals are
Slide 4: Aimco Has a Simple Business Strategy
4 Aimco Has a Simple Business Strategy Own and operate B/B+ quality apartments Well located in 20 largest U.S. markets Opportunistic redevelopment Finance with lower risk, property-level, non-recourse, long- dated, fixed-rate and amortizing debt
Slide 5: Asset Quality in Aimco's Markets
5 * Represents Aimco average 4Q 2010 rents for all conventional properties held at quarter-end, including same store properties, redevelopment properties and other conventional properties compared to REIS average for each market. Asset Quality in Aimco's Markets Aimco defines quality by comparing re
Slide 6: Aimco Asset Quality is Comparable to Peers
6 * 4Q 2010 Average Rents as % of Market in Aimco Target Markets for peer companies has been computed based on 1) local average market rents as reported by REIS as of 4Q 2010 and 2) 4Q 2010 average rents by market as reported by peer companies, which Aimco has weighted by revenue in each of Aimco's
Slide 7: Capital Recycling Improves Portfolio
7 Excludes casualties and property management expenses. NOI less assumed capital replacement expenditures of $850 per unit. $8.5 billion of sales of lower-rated assets from 2004 through 2010 have improved overall portfolio quality. Average rents ? 42% NOI margin ? 8% Free Cash Flow margin ? 20% Capi
Slide 8: Aimco is a Reliable Operator
8 Aimco is a Reliable Operator * Average of AvalonBay, Camden, Equity Residential, Essex, Home Properties and UDR results as reported individually by SNL Financial. Operating performance exceeds peer average over the last one, three and five years.
Slide 9: 2011 Property Operations Objectives Build on 2010 Success
9 2011 Property Operations Objectives Build on 2010 Success Revenue Growth: Total Same Store #2 of 10 apartment REITs* Conventional Same Store #3 of 10 NOI Growth: Total Same Store #2 of 10 Conventional Same Store #2 of 10 Total Portfolio: Revenue 1.0% Expenses -0.9% NOI 2.3% Average Daily Occupancy
Slide 10: Aimco Has Limited Balance Sheet Risk
10 * For purposes of this analysis, peer group is comprised of BRE, Camden, Equity Residential, Colonial Properties, Home Properties, Post Properties and UDR, companies that report weighted- average maturity. Data as of 12/31/2010 as reported by SNL Financial. Aimco Has Limited Balance Sheet Risk Ai
Slide 11: Favorable Demographics Drive Demand
Favorable Demographics Drive Demand 60% to 70% of people aged 20 to 34 opt for rental housing.* This age cohort is projected to increase by 2.5 million people in the next three years, and 3.5 million over the next five years. * Source: Green Street Advisors 11 Historically, people aged 60 and over h
Slide 12: The Labor Market is Expanding Again
The Labor Market is Expanding Again Source: Moody's Economy.com. Source: BLS Current Population Survey, January 2011. Represents year-over-year change in the civilian labor force, as defined by the BLS and used in the computation of BLS's unemployment rate. Chart does not refer to nonfarm payroll da
Slide 13: Limited Supply, Homeownership Unattractive
Long-term average Limited Supply, Homeownership Unattractive Homeownership is at a 10-year low, but still 1.2% above the long-term average. Every 1% decline in the homeownership rate translates into more than 1 million rental households. 13 Source: U.S. Census Bureau, Housing and Household Economic
Slide 14: Growth Projections Positive & Comparable to Peer Group
14 * Represents average revenue growth computed by Aimco based on 1) the average of revenue growth projections published by REIS, PPR and AXIOMetrics as of 4Q 2010, and 2) peer market allocation based on 4Q 2010 company reports. Aimco does not endorse or affirm the projected revenue growth published
Slide 15: Aimco's Shares Are Priced at a Discount
15 Aimco's Shares Are Priced at a Discount Measure* Average rents NOI margin Free cash flow margin Non-recurring revenue as % of total revenue Recourse debt G&A as a % of property revenues Discount to peer median EV / Revenue Discount to peer median Price / Consensus NAV 2005 $811 55% 47% 2.4% $617M
Slide 16: Aimco's Shares Are Priced at a Discount
16 Measure(1) Average rents NOI margin G&A as a % of property revenues Aimco Change + 30% + 8% - 17% Peer Median(2) + 17% + 1% - 1% * Data Sources: Green Street Advisors, Apartment REITs: February '06 Update, 2/15/06; Company reports; SNL Financial Operating statistics for Aimco's conventional portf
Slide 17: Property Operations Update
17 Property Operations Update Asking for renewal rate increase of 5 - 6%, on average, for April and May. Aimco's focus is NOI growth, which takes into consideration the balance between rate, occupancy levels and turnover costs.
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