Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (September 2015)
23 slides from Apartment Investment And Management's investor presentation, Sep 14, 2015
Slide 1: Investor Presentation September 2015
1 INVESTOR PRESENTATION SEPTEMBER 2015
Slide 2: Strategic Areas of Focus
2 STRATEGIC AREAS OF FOCUS • Peer-leading operating cost control • Above-average resident retention • Above-average property operating results over cycle • Diversified across markets and price points to reduce volatility in revenue • Disciplined capital recycling to upgrade portfolio • Peer-leading
Slide 3: Aimco's business plan provides significant value creation
3 Aimco’s business plan provides significant value creation AIMCO VALUE CREATION Portfolio Management • Portfolio quality, as measured by average revenue per unit, increasing at a rate significantly higher than peers. • Free cash flow margins increasing at a rate of 2% per year for the last ten year
Slide 4: High customer satisfaction, lower turnover philosophy
4 High customer satisfaction, lower turnover philosophy Greater NOI contribution: Renewal lease rate increases are generally higher than new lease rate increases; renewals avoid costs associated with turnover: higher vacancy, refurbishment, and marketing. More predictable operating results: Rene
Slide 5: Strong operating performance
5 Strong operating performance PROPERTY OPERATIONS (1) Source: SNL Financial. Peer group consists of AvalonBay, Camden, Equity Residential, Essex, MAA, Post Properties and UDR. (2) Source: Company reports. Individual market peers vary based on geographic exposure. From 2006 through 2014, the compo
Slide 6: Portfolio strategy seeks revenue growth with lower volatility
6 Portfolio strategy seeks revenue growth with lower volatility PORTFOLIO MANAGEMENT Geographic diversification reduces concentration risk. • Invest in large, liquid markets whose real estate cycles are asynchronous and not closely correlated • Allocate 95% of our total investment to 12 to 15 targ
Slide 7: Geographic and price point diversification
7 Geographic Diversification (% Conv. NOI) Price Point Diversification (% Conv. GAV) Maintaining diversification while moving to higher average price point Los Angeles expected to outperform in 2015, helping to offset slower Mid Atlantic. Avoid concentration risk by maintaining allocation to Mid
Slide 8: Methodical approach to investment selection
8 Methodical approach to investment selection Portfolio strategy executed through leverage-neutral, tax-efficient paired trades where the projected Free Cash Flow IRR of an investment is greater than the projected Free Cash Flow IRR of the property sold; and portfolio quality is enhanced. Select
Slide 9: Significant portfolio upgrade achieved through paired trade activity
9 Significant portfolio upgrade achieved through paired trade activity PORTFOLIO MANAGEMENT Conventional Portfolio Metrics 2011 2012 2013 2014 2Q 2015 Cumulative Number of Conventional communities 198 175 162 144 143 -28% Number of Conventional apartment homes 62,834 55,879 50,486 43,348 41,425 -34%
Slide 10: Redevelopment projects have value-creation margins of ~30%
10 Redevelopment projects have value-creation margins of ~30% REDEVELOPMENT & DEVELOPMENT VALUE CREATION Completed In Process Lincoln Place Pacific Bay Vistas The Preserve at Marin 270 on Third Ocean House on Prospect One Canal Park Towne Place The Sterling Total number of apartment homes at complet
Slide 11: Lincoln Place, Venice, CA
11 Lincoln Place, Venice, CA REDEVELOPMENT & DEVELOPMENT Vision Location - Lincoln Place is located near world-famous Venice Beach on the west side of Los Angeles. Venice is home to Silicon Beach and offices for Google, Microsoft, Face book, and You Tube in addition to hundreds of startups including
Slide 12: Pacific Bay Vistas, San Bruno, CA
12 Pacific Bay Vistas, San Bruno, CA REDEVELOPMENT & DEVELOPMENT Vision Location - Pacific Bay Vistas is located at the highly visible intersection of Skyline Boulevard and Sharp Park Road, in the heart of San Bruno, CA. This hilltop location offers spectacular views of both the Pacific Ocean and th
Slide 13: Preserve at Marin, Corte Madera, CA
13 Preserve at Marin, Corte Madera, CA REDEVELOPMENT & DEVELOPMENT Vision Location - Preserve at Marin is located in the heart of South Marin County, which is a quick commute to San Francisco's financial district or a 30 mile drive north to the wine country. The property is situated adjacent to Ring
Slide 14: 270 on Third, Cambridge, MA
14 270 on Third, Cambridge, MA REDEVELOPMENT & DEVELOPMENT Vision Location - 270 on Third is located in Kendall Square in Cambridge, MA. In the last three decades, Kendall Square has been transformed from a former industrial district to one of the world’s leading centers for biotechnology research a
Slide 15: Ocean House on Prospect, La Jolla, CA
15 Ocean House on Prospect, La Jolla, CA REDEVELOPMENT & DEVELOPMENT Vision Location - Ocean House is located on the prestigious and well-known Prospect Street in La Jolla, CA. Ocean House offers panoramic views of the Pacific Ocean and is a short walk from stunning beaches, tide pools, the Museum o
Slide 16: One Canal, Boston, MA
16 One Canal, Boston, MA REDEVELOPMENT & DEVELOPMENT Vision Location - One Canal is located in the historic Bullfinch Triangle neighborhood of Boston’s West End. The prominent site sits within walking distance of TD Garden Arena and has excellent access to the North End as well as the central busine
Slide 17: Park Towne Place, Philadelphia, PA
17 Park Towne Place, Philadelphia, PA REDEVELOPMENT & DEVELOPMENT Vision Location - Park Towne is located along the Benjamin Franklin Parkway, in the heart of Philadelphia's world-renowned museum district. The park-like setting offers relief from the congestion of urban living but is within walking
Slide 18: The Sterling, Philadelphia, PA
18 The Sterling, Philadelphia, PA REDEVELOPMENT & DEVELOPMENT Vision Location - Located in the heart of Philadelphia's growing Market West District, and directly adjacent to the expanding Comcast Corporation headquarters, The Sterling offers exceptional access to the central business district, Ritte
Slide 19: Redevelopment opportunities support $200-$300M investment annually
19 REDEVELOPMENT Opportunities within existing portfolio support $200-$300M investment annually Chicago Yorktown Apartments (364 Apartments) Yorktown Apartments Expansion (~100 Apartments) Philadelphia The Sterling (Expanded Scope) Park Towne Place (Expanded Scope) Washington Merrill House (159 Apar
Slide 20: Aimco's balance sheet is the safest in the sector
20 0% 10% 20% 30% 40% 50% 60% 70% 2015 2016 2017 2018 Aimco Peer Wt. Avg. 0% 5% 10% 15% 20% 25% 30% 35% 2015 2015 - 2017 Aimco Peer Wt. Avg. 20% 40% 60% 80% 100% Aimco Peer Wt. Avg. % Non-Recourse % Recourse Aimco’s balance sheet is the safest in the sector Limit entity risk by avoiding recourse d
Slide 21: Quantity of leverage is in line with peers, and declining
21 6.1x 7.0x 5.0x Peer Wt. Avg. AIV AIV Adj for Refunding Risk Quantity of leverage is in line with peers, and declining We achieved our target for lower leverage two years ahead of plan. Aimco Debt and Preferred Equity to EBITDA of 7.0x reflects outstanding balances at 6/30/2015, but overstates
Slide 22: We live our values, foster a culture of success
22 Integrity Respect Collaboration Customer Focus Performance We live our values, foster a culture of success and work collaboratively BUSINESS & CULTURE Our Vision To be the best owner and operator of apartment communities, inspired by a talented team committed to exceptional customer service, stro
Slide 23: Forward-looking statements
23 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 2015 financial and operating results; Aimco's development and redevelopment project investm
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