Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — NAREIT REITworld 2020
33 slides from Apartment Investment And Management's conference presentation, Nov 17, 2020
Slide 1: Investor Presentation NAREIT REITworld 2020
Ocean House La Jolla, CA Investor Presentation NAREI REITworld 2020 Apartment
Slide 2: Forward Looking Statements / Non-GAAP Measures
FORWARD LOOKING STATEMENTS / NON-GAAP MEASURES This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, in
Slide 3: Table of Contents
TABLE OF CONTENTS Page Number I. Company Overview & Strategy 1 II. Investment Highlights 4 III. Financial Overview 20 IV. Next Steps 22 Appendix 23
Slide 4: I. Company Overview & Strategy
Waterways Village Aventura, FL I. Company Overview & Strategy
Slide 5: Why Invest in AIR?
WHY INVEST IN AIR? AIR is expected to be an efficient way to invest in U.S. multi-family real estate, due to its simplified business model and diversified portfolio of stabilized apartment communities. 1. High-quality and diversified portfolio of stabilized multi-family properties 2. Best-in-class p
Slide 6: AIR Company Snapshot
AIR COMPANY SNAPSHOT 98 26,599 $2,333 # of Properties # of Units(1) 3Q20 YTD Same Store Average Revenue per Unit(2) 73.3% 90.3% 95.5% 3Q20 YTD Same Top 8 Markets % of GAV(3)(4) 3Q20 YTD Same Store Store NOI Margin(2) Average Daily Occupancy(2) 5.5x $1.72 57/43% Medium-Term 2021 Expected Dividend / S
Slide 7: AIR: Simplified and Pure-Play Business Model
AIR: SIMPLIFIED AND PURE-PLAY BUSINESS MODEL AIR will seek to capitalize on its comparative advantage in property management operations to execute its simplified and pure-play business model. ✓ Invest only in stabilized apartment communities ✓ Own only a high-quality and diversified portfolio of sta
Slide 8: II. Investment Highlights
Shenandoah Crossing Fairfax County, VA II. Investment Highlights
Slide 9: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS AIR will provide a simple and transparent way to invest in the multi-family sector combining narrow focus on allocating capital only to stabilized apartment communities, a high-quality diversified portfolio, best-in-class operations, with low financial leverage, limited exe
Slide 10: Attractive Portfolio, Diversified by Geography and Price Point
ATTRACTIVE PORTFOLIO, DIVERSIFIED BY GEOGRAPHY AND PRICE POINT AIR will own stabilized multi-family properties in top U.S. markets focusing on properties with high land value located in submarkets with outsized growth prospects. AIR will maintain a dynamic capital allocation and market selection pro
Slide 11: AIR's Differentiated Portfolio Strategy
AIR’S DIFFERENTIATED PORTFOLIO STRATEGY Differentiated Market Footprint Targeted Submarket …With a Balance of Suburban vs. Urban Assets And Price Point Strategy Within Each MSA… Market Submarket Commentary Based on Q3’20 Effective Units Venice • Concentration of high Mid-Wilshire paying TAMI jobs Pa
Slide 12: Market Snapshot: Los Angeles
MARKET SNAPSHOT: LOS ANGELES Represents AIR’s Largest Market With 21% of NOI – 13 Assets Totaling ~3,500 Units (at Share) Los Angeles portfolio Key Statistics consists of approximately As of 3Q 2020 3,500 units (at share) Los Angeles across 13 assets Palazzo East at Park La Brea Villas at Park La Br
Slide 13: Market Snapshot: D.C. Metro
MARKET SNAPSHOT: D.C. METRO Represents AIR’s Second Largest Market With 17% of NOI – 11 Assets Totaling ~5,200 Units D.C. Metro portfolio Key Statistics consists of approximately As of 3Q 2020 5,200 units across 11 D.C. Metro assets Price point diversification % of REIT NOI 17% Bent Tree Apartments
Slide 14: Market Snapshot: Philadelphia
MARKET SNAPSHOT: PHILADELPHIA Unique Market Presence for AIR Producing 11% of Total NOI – 9 Assets Totaling ~2,700 Units Approximately 2,700 units Key Statistics across 9 assets As of 3Q 2020 Philadelphia Over 80% of assets were either built or renovated % of REIT NOI 11% One Ardmore Place SouthStar
Slide 15: Market Snapshot: San Diego
MARKET SNAPSHOT: SAN DIEGO Attractive and Stable Lifestyle Market With 9% of NOI – 8 Assets Totaling ~2,100 Units (at Share) (2) San Diego portfolio consists Key Statistics of approximately 2,100 units As of 3Q 2020 across 8 assets San Diego One of the largest presence in the MSA of any large-cap %
Slide 16: Best-in-Class Property Management Operations
BEST-IN-CLASS PROPERTY MANAGEMENT OPERATIONS AIR will continue to drive rent growth based on high levels of resident retention through superior customer selection and satisfaction, coupled with disciplined innovation resulting in sustained cost control, to maximize NOI growth and margins. Best-in-Cl
Slide 17: External Growth Opportunities
EXTERNAL GROWTH OPPORTUNTIES AIR’s low leverage, low cost, simplified business model and expected FFO, NAV, and cash flow growth are expected to lead to a better cost of capital. AIR’s improved cost of capital should create opportunities for accretive external growth by acquiring stabilized properti
Slide 18: Property Upgrades
PROPERTY UPGRADES AIR’s diversified portfolio is concentrated in markets with favorable long-term growth prospects; AIR’s in-house property enhancement capabilities, including kitchen and bath upgrades, are designed to allow AIR to capture continued upside in its markets Kitchens Bathrooms Before Af
Slide 19: Lowest Relative G&A and Offsite Cost in Peer Group
LOWEST RELATIVE G&A AND OFFSITE COST IN PEER GROUP All G&A costs at ~15 basis points of GAV c Low overhead / G&A costs given focus on investing solely in income producing assets No development / risk exposure (i.e., no FFO “drag” from development) further supporting future earnings Lean Overhead G&A
Slide 20: Strong & Flexible Balance Sheet
STRONG & FLEXIBLE BALANCE SHEET Maintain Low Leverage with 5.5x Medium-Term Diversify Sources of Capital Target Strong Credit Metrics: Over 4.5x Fixed Charge Well Supported Dividend Coverage Ratio Well Laddered Maturity Schedule with Minimal Substantial unencumbered asset pool of Near-Term Property
Slide 21: Stable and Experienced Management Team
STABLE AND EXPERIENCED MANAGEMENT TEAM Director & Chief Executive Executive Vice President & Senior Vice President & Chief President and General Counsel President, Property Operations Officer Chief Financial Officer Investment Officer Terry Considine Lisa Cohn Keith Kimmel Paul Beldin Conor Wagner 4
Slide 22: Shareholder Friendly Corporate Governance
SHAREHOLDER FRIENDLY CORPORATE GOVERNANCE Separation of Chairman and CEO Roles All Directors Other than CEO are Independent Permanent Opt Out of MUTA at Separation - AIR will not be able to reclassify its board without obtaining shareholder approval To Enable AIR’s Management Team to Prioritize Oper
Slide 23: Finite and Narrowly Defined Transition Relationship Between the Two Companies
FINITE AND NARROWLY DEFINED TRANSITION RELATIONSHIP BETWEEN THE TWO COMPANIES Relationship Compensation Term Property Management Customary management fee based on percentage of revenue 1 year (renews annually unless initially provide property management collected and such other fees mutually agreed
Slide 24: Board of Directors
BOARD OF DIRECTORS AIR will have separate Chairman and CEO positions. Tom Keltner will be elected the new Chairman of the Board. Name / Position Class I* Tenure / Chairmanships Experience AIV Board Tenure: 13 years Tom L. Keltner Chairman of the Compensation and Human Resources Chairman & Independen
Slide 25: III. Financial Overview
21 Fitzsimons Aurora, CO III. Financial Overview
Slide 26: Financial Overview: NOI Bridge
FINANCIAL OVERVIEW: NOI BRIDGE AIR’s high-quality and diversified portfolio, coupled with its simple and low-cost business plan, is expected to provide long-term cash flow predictability and stability, resulting in high margins and growing NOI. While NOI is down in 2020 due to the unprecedented impa
Slide 27: AIR Pro Forma Earnings Power
AIR PRO FORMA EARNINGS POWER While the timing of NOI recovery is highly uncertain, the long-term earnings power of is expected to remain strong. AIR’s low cost, low leverage and predictable business model makes it easier to forecast items outside of NOI. 1. AIR share of NOI; adjusted to reflect the
Slide 28: IV. Next Steps
Township at the Highlands Centennial, CO IV. Next Steps
Slide 29: Illustrative Business Separation Timeline
ILLUSTRATIVE BUSINESS SEPARATION TIMELINE Separation Expected to Be Completed in December 2020. Late November Mid December November 5th Expected Public Announcement of Expected Distribution of AIR to Aimco’s Publicly Filed Form 10 Record Date and Intended stockholders, and regular way trading on Dis
Slide 30: Appendix
Palazzo at Park La Brea Los Angeles, CA Appendix
Slide 31: Portfolio Overview by Market
PORTFOLIO OVERVIEW BY MARKET Total Portfolio Overview(1)(2) Apartment Apartment AIR Share of Average Revenue per Rent as % of Market Communities Homes Apartment Homes % AIR NOI(3) AIR Apartment Home Market(4) Property Grade 1 Bay Area 10 2,322 1,767 10.3% $3,220 106% B 2 Boston 12 2,598 2,598 10.9 2
Slide 32: AIR Portfolio
AIR PORTFOLIO Units Units # Property Name (at share) # Property Name (at share) 1 Lincoln Place Apartment Homes 795 51 Waverly Apartments 103 2 Malibu Canyon ✔ ✔ 426 52 Vantage Pointe 96 3 The Palazzo East at Park La Brea 373 53 Vivo Apartment Homes 91 4 The Palazzo at Park La Brea✔ 318 54 Geo
Slide 33: Important Information / Participants in Solicitation
IMPORTANT INFORMATION / PARTICIPANTS IN SOLICITATION Important Additional Information and Where to Find It In connection with any special meeting called by the Company at the demand of certain shareholders of the Company arising from Land & Buildings Investment Management’s consent solicitation (the
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