Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Nareit REITweek Conference 2020
16 slides from Apartment Investment And Management's conference presentation, Jun 1, 2020
Slide 1: Nareit REITweek Conference 2020
Investor Presentation Nareit REITweek Conference 2020 June 2-4 Flamingo Point Miami Beach, FL
Slide 2: Financial Performance
Financial PERFORMANCE Economic Income is calculated as the per share change in Net Asset Value (NAV) plus Cash Dividends paid, Aimco uses share price at IPO as a proxy for NAV. Calculated using Aimco’s 12/31/19 Net Asset Value per share estimate of $59. Last July Aimco celebrated 25 Years as a publi
Slide 3: Strategic focus: five key business areas
In Operations, to strengthen relationships with residents that reinforce low resident turnover that is already peer leading; In Redevelopment, to increase annual investment, while maintaining a balance between “long-cycle” and “short-cycle” spending (which can quickly be scaled back when times are u
Slide 4: Operations: cost control and NOI growth
COE refers to Controllable Operating Expenses, defined by Aimco as property level expenses before taxes, insurance, and utilities. Peer group consists of AVB, CPT, EQR, ESS, MAA, and UDR. Peer average COE is calculated, per Aimco’s COE definition, as the CAGR of peer averages. Due to inadequate publ
Slide 5: Residential update: April and May resilience
In April and May, Aimco’s operating platform proved resilient when faced with economic turbulence. RESIDENTIAL UPDATE Aimco customer selection has produced a high quality customer base: In April, Aimco recognized 99% of residential revenue, after a 1% provision for Bad Debt. Of the 99%, 96% was rece
Slide 6: Redevelopment: short-cycle and long-cycle
Aimco prefers redevelopment over development, especially “short-cycle” redevelopments, where common area and amenity upgrades are phased, and apartment homes are renovated in small batches. “SHORT-CYCLE” REDEVELOPMENTS - INVENTORY MANAGEMENT “Short-cycle” redevelopments provide optionality to improv
Slide 7: Portfolio Management
Portfolio MANAGEMENT Aimco’s portfolio is intentionally diversified by geography and price-point. GEOGRAPHY – located in 12 of the largest markets in the nation, and PRICE POINT – allocated now ~50% to properties at the “A” price point and ~50% at the “B/C+” price point. Further diversification is p
Slide 8: Balance Sheet and liquidity
Aimco started 2020 with $650 million of cash and committed credit. At the start of the crisis: Aimco drew down $300 million on its bank lines, now repaid; slowed expected 2020 capital spending by $150 million, or almost one-half; and undertook to increase available credit by another $720 million: a
Slide 9: Team, Culture, & ESG
TEAM, CULTURE, & ESG TEAM ENGAGEMENT Out of hundreds of participating companies, Aimco is ONE OF SIX recognized as a "Top Place to Work" in Colorado for each of the past eight years. In 2019, Aimco was also recognized as a “Top Place to Work” in the Bay Area. For the past five years, Aimco team enga
Slide 10: Why invest in Aimco?
Why invest in Aimco? Aimco is designed to be resilient in hard times and provides shareholder value through: Best-in-Class Operations: Lower resident turnover through intentional focus on customer selection and satisfaction drives peer-leading margins. Paired-Trade Capital Allocation Discipline: Aim
Slide 11: Appendix
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Slide 12: Appendix A – COVID-19 response
Appendix A – covid-19 response 21 Fitzsimons Aurora, CO PRIORITIZED THE HEALTH AND SAFETY OF TEAMMATES Aimco: formed a cross-functional committee that met daily to re-design how work was done on site, to keep the Aimco team safe while continuing to lease apartments and fulfil service requests; made
Slide 13: Appendix A – COVID-19 response: collectable rent
Appendix A – covid-19 response REVISED ITS ESTIMATION OF COLLECTABLE OUTSTANDING RENT Aimco revised its estimation of residential bad debt, effective in April, accelerating the estimate of collectability to month-end based on its assessment of the creditworthiness of the tenants and guarantors, base
Slide 14: Appendix B – Supply outlook
Appendix B - Supply outlook Aimco considers competitive new supply to be significant primarily to “A” price point communities in submarkets where completions are projected to be more than 2.0% of existing stock. Even where markets face elevated new supply, the quality of the Aimco offering or its lo
Slide 15: Appendix C – Parkmerced
Appendix C - Parkmerced Aimco’s investment in Parkmerced is a classic Aimco investment. It is a coin flip scenario where: “Heads we win; tails we don’t lose.” A few facts: Heads we win (Aimco expectation): Aimco expects the mezzanine loan and all accrued interest to be repaid either over time, or up
Slide 16: Forward Looking Statements & Other Information
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 2020 and future expectations, including but not
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