Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (March 2015)
17 slides from Apartment Investment And Management's investor presentation, Mar 2, 2015
Slide 1: Investor Presentation March 2015
1 INVESTOR PRESENTATION MARCH 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 for significant value creation
3 Aimco’s business plan provides for 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
Slide 4: Property operations: same store expense growth and customer service
4 Cumulative Growth 7.5% 17.8% 16.2% 1.8% 95 100 105 110 115 120 2007 2008 2009 2010 2011 2012 2013 2014 2015E Same Store Expense Growth 2008 - 2015E Aimco Peer Avg CPI Aimco COE High customer service, lower turnover philosophy Greater NOI contribution: Renewal lease rate increases are generally h
Slide 5: Strong operating performance
5 Strong operating performance PROPERTY OPERATIONS (1) Source: SNL Financial. Peer group consists of AvalonBay, Camden, Equity Residential, Essex, Home Properties, MAA, Post Properties and UDR. (2) Source: Company reports. Individual market peers vary based on geographic exposure. From 2006 throug
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 with elements of asynchronicity in real estate cycles. • Allocate 95% of our total investment to 12 to 15 target markets. •
Slide 7: Price Point Diversification
7 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. Allocation to Coastal California increasing to ~33% in coming years as redevelopments come online.
Slide 8: Methodical approach to investment selection
8 Methodical approach to investment selection Portfolio strategy executed through leverage-neutral, tax-efficient paired trades when: 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 Cumulative Change Number of Conventional communities 198 175 162 144 -27% Number of Conventional apartment homes 62,834 55,879 50,486 43,348 -31% Average rev
Slide 10: Peer-leading rate of increase in average revenues per apartment home
10 Peer-leading rate of increase in average revenues per apartment home PORTFOLIO MANAGEMENT * Peer group consists of AvalonBay, Camden, Equity Residential, Essex, Home Properties, MAA, Post Properties and UDR. Results based on average revenue per Same Store apartment home for the fourth quarter of
Slide 11: 4Q 2014 Acquisitions
11 4Q 2014 Acquisitions PORTFOLIO MANAGEMENT Saybrook Pointe Apartment Homes was acquired for $118.4 million. This is a 324 apartment home community located in San Jose, California. Revenues per apartment home average $2,240, making this a "B" quality asset for Aimco. Aimco expects to add value th
Slide 12: Redevelopment projects ~30% accretive
12 REDEVELOPMENT Redevelopment projects ~30% accretive Philadelphia The Sterling ($36M) Seattle 2900 on First ($15M) Los Angeles Area Lincoln Place ($365M) Bay Area Pacific Bay Vistas ($120M) Dollar amounts represent Aimco’s estimated net investment in these redevelopments. See additional details of
Slide 13: Redevelopment opportunities support $200-$300M investment annually
13 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 14: Quantity of leverage is in line with peers, and declining
14 6.5x 7.0x 4.7x 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’s Debt and Preferred Equity to EBITDA of 7.0x reflects outstanding balances at 12/31/2014, but overstate
Slide 15: Aimco's balance sheet is the safest in the sector
15 20% 40% 60% 80% 100% Aimco Peer Wt Avg % Non-Recourse % Recourse 0% 5% 10% 15% 20% 25% 30% 35% 40% 2015 2015 - 2017 Aimco Peer Wt Avg Aimco’s balance sheet is the safest in the sector Limit entity risk by avoiding recourse debt, of which Aimco has very little. Reduce re-pricing risk by using
Slide 16: We live our values, foster a culture of success and work collaboratively
16 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 17: Forward-looking statements
17 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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