Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (June 2016)
21 slides from Apartment Investment And Management's investor presentation, Jun 7, 2016
Slide 1: Net Asset Value Presentation June 2016
NET ASSET VALUE PRESENTATION JUNE 2016 1 ONE CANAL, BOSTON, MA
Slide 2: General Disclosures
2 AIMCO NET ASSET VALUE PRESENTATION GENERAL DISCLOSURES The information provided in this presentation is intended to assist users in estimating Aimco Net Asset Value per share. Aimco is providing this presentation at this time in order to provide consistent disclosure to all investors as to Aimco v
Slide 3: General Disclosures (continued)
3 AIMCO NET ASSET VALUE PRESENTATION GENERAL DISCLOSURES (CONTINUED) This Net Asset Value per share information should not be relied upon as representative of the amount a stockholder could expect to receive in a liquidation event, now or in the future. Certain assets are excluded as are certain lia
Slide 4: General Disclosures (continued)
4 AIMCO NET ASSET VALUE PRESENTATION GENERAL DISCLOSURES (CONTINUED) penalties that may be incurred due to necessary remediation of contamination of apartment communities presently or previously owned by Aimco. In addition, Aimco's current and continuing qualification as a real estate investment tru
Slide 5: Valuation Methodology
5 AIMCO NET ASSET VALUE PRESENTATION VALUATION METHODOLOGY Real Estate - Aimco estimated the value of its properties using methods management believes to be appropriate based on the characteristics of the properties. For valuation purposes, Aimco segregated its portfolio into the following categorie
Slide 6: Valuation Methodology (continued)
6 AIMCO NET ASSET VALUE PRESENTATION VALUATION METHODOLOGY (CONTINUED) Other Tangible Assets - consist of cash, restricted cash, accounts receivable and other assets for which Aimco reasonably expects to receive cash through the normal course of operations or another future event. Debt - the fair va
Slide 7: Valuation Methodology (continued): Other Items of Note
7 AIMCO NET ASSET VALUE PRESENTATION VALUATION METHODOLOGY (CONTINUED) Other Items of Note • Real estate values are based on Aimco's current uses and do not include the value of unused or underused land or air rights. • Real estate values do not take into consideration transaction costs or other ite
Slide 8: Estimated Fair Value of Real Estate: $75 per share
8 AIMCO NET ASSET VALUE March 31, 2016 Estimated Fair Value of Real Estate: $75 per share* * See additional details and disclosures beginning on page 10. Lease-Up Portfolio Cash flows discounted from property stabilization to March 31, 2016 Redevelopment Portfolio Cash flows discounted from property
Slide 9: Estimated Net Asset Value: $51 per share
9 AIMCO NET ASSET VALUE March 31, 2016 Estimated Net Asset Value: $51 per share* $75 $3 -$24 -$3 Fair Value of Real Estate Fair Value of Other Tangible Assets Cash and restricted cash + Other tangible assets Fair Value of Debt Book value of debt + Mark-to-market adjustment Fair Value of Other Tangib
Slide 10: Fair Value of Real Estate as of March 31, 2016
10 Fair Value of Real Estate as of March 31, 2016 ($M) Stabilized Conventional Portfolio Annualized 1Q 2016 NOI, less 2% management fee 515$ 1 NOI cap rate 5.0% 2 Stabilized Conventional Portfolio Value 10,287$ Non-Stabilized Conventional Portfolio Redevelopment properties under construction 616$ 3
Slide 11: Fair Value of Other Assets, Debt and Other Liabilities
11 Fair Value of Other Assets, Debt and Other Liabilities as of March 31, 2016 ($M) 9 See notes beginning on page 13. AIMCO NET ASSET VALUE BUILD-UP Proportionate Amount Adjustments As Adjusted Other Tangible Assets Cash and cash equivalents 63$ -$ 63$ Restricted cash 90 - 90 Goodwill 44 (44) - 10 O
Slide 12: Net Asset Value as of March 31, 2016
12 Net Asset Value as of March 31, 2016 ($M, except per share amounts) See notes beginning on page 13. AIMCO NET ASSET VALUE BUILD-UP Fair Value of Real Estate 12,440$ Fair Value of Other Intangible Assets, Debt and Other Liabilities (4,003) Net Asset Value 8,437$ Total Shares, Units and Dilutive Sh
Slide 13: Footnotes
13 Footnotes 1. Represents Stabilized Conventional Property NOI for the three months ended March 31, 2016, annualized, and adjusted for an assumed property management fee. Market management fees range between 1.5% and 3.0% with larger, higher quality portfolios at the lower end of that range. For th
Slide 14: Footnotes (continued)
14 Footnotes (continued) 1. (continued) a. Represents residential revenues and expenses related to Aimco's Tremont community acquired by Aimco in December 2014. Residential operations have been stabilized for more than one year and are included in Same Store results. Commercial operations are includ
Slide 15: Footnotes (continued)
15 Footnotes (continued) 1. (continued) d. Represents revenue and expenses related primarily to Tremont commercial operations and treated for the purposes of this Net Asset Value calculation as described in (a) above, and to two for-sale communities: Riverside, located in Alexandria, Virginia, which
Slide 16: Footnotes (continued)
16 Footnotes (continued) 2. (continued) a. Based on the quality of its communities and locations within the market, Aimco estimates the current NOI cap rates for its Chicago and San Diego portfolios are slightly higher than the high end of the range of cap rates that is indicated by the results of A
Slide 17: Footnotes (continued)
17 Footnotes (continued) 2. (continued) Aimco also estimated current NOI cap rates for its Stabilized Conventional Portfolio using market cap rates reported by Real Capital Analytics ("RCA"). While individual market NOI cap rates differ, the weighted average cap rate for Aimco's Stabilized Conventio
Slide 18: Footnotes (continued)
18 5. Represents the sale price of Aimco's Riverside community located in Alexandria, Virginia, which was sold in May 2016; and the expected sale price of Aimco's Grand Pointe community located in Columbia, Maryland, which is under contract to close in summer 2016. 6. Represents the value of two rec
Slide 19: Footnotes (continued)
19 11. Represents the carrying value of Aimco's non-recourse property debt, adjusted for the mark-to-market liability on Aimco's fixed rate property debt as of March 31, 2016. Such mark-to-market has been computed by Aimco using a Money-Weighted Average Interest Rate of 4.65% on Aimco's fixed rate p
Slide 20: Aimco Operating Partnership and Proportionate Financial Information
20 AIMCO OPERATING PARTNERSHIP (OP): AIMCO Properties, L.P., a Delaware limited partnership, is the operating partnership in Aimco's UPREIT structure. Aimco owns approximately 95% of the common partnership units of the Aimco OP. AIMCO PROPORTIONATE FINANCIAL INFORMATION: Non-GAAP measures representi
Slide 21: Definitions and Reconciliations
21 DEFINITIONS AND RECONCILIATIONS Reconciliations to Non-GAAP Financial Measures $ in Thousands Consolidated Amount Proportionate Share of Unconsolidated Partnerships Noncontrolling Interests Proportionate Amount Real estate operations: Rental and other property revenues Conventional Same Store 180
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