Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (February 2009)
28 slides from Apartment Investment And Management's investor presentation, Feb 17, 2009
Slide 1: AIMCO February 2009
Palazzo West at Park LaBrea - Los Angeles, CA 3400 Avenue of the Arts - Orange County, CA Riverside Park - Alexandria, VA AIMCO February 2009 Park Towne Place - Philadelphia, PA Monterey Grove - San Jose, CA River Club - Edgewater, NJ
Slide 2: Forward-looking Statements and Other Information
This presentation contains forward-looking statements, including statements regarding projected results and specifically forecasts of 2009 results. These forward-looking statements are based on management's judgment as of this date and include certain risks and uncertainties. Risks and uncertainties
Slide 3: Presentation Topics
Aimco Overview 2008 Highlights and 2009 Objectives Property Operations Investment Management Liquidity and Balance Sheet Conclusions Presentation Topics
Slide 4: Aimco Overview
Aimco Overview Aimco is a multifamily REIT focused on owning, managing and redeveloping properties in the 20 largest markets in the United States Initial Public Offering completed in 1994 with $315 million capitalization Aimco doubled in size every 18 months from 1994 - 2002 through several corporat
Slide 5: Aimco Overview: Portfolio quality has improved significantly
Aimco Overview Portfolio quality has improved significantly over the past several years Properties are well located following net property sales of more than $5 billion since 2002 Average rents are now $1,032, up 43% from $723 five years ago 85% of asset value now concentrated in the 20 largest U.S.
Slide 6: 2008 Highlights and 2009 Objectives
2008 Highlights and 2009 Objectives
Slide 7: 2008 Highlights
2008 Highlights Achieved guidance provided in February 2008 Same Store NOI growth of 3.5% FFO of $2.36 per share (as adjusted for all special dividends) Continued to upgrade the portfolio by selling properties located in non-target markets and less desirable locations within target markets Sold 155
Slide 8: 2009 Objectives
2009 Objectives Continue to provide quality, well-maintained apartment homes Superior customer service to our residents Emphasis on customer retention and disciplined expense control Continue to improve portfolio quality Sell up to $2 billion of non-target conventional and affordable assets Use 1031
Slide 9: 2009 Outlook
2009 Outlook Aimco is planning for a difficult operating environment in 2009 Same Store NOI growth flat to down 5.0% Decline in Investment Management income primarily due to lower promote income Significant reduction in redevelopment activities Committed to maintaining asset quality with appropriate
Slide 10: Property Operations
Property Operations
Slide 11: Property Operations 2008 Results
Property Operations 2008 Results Highlights: Ended the year with strong occupancy of 95% Revenue grew 2.1% in 2008 comprised of rate up 1.7%, occupancy up 0.3% and utility reimbursements and ancillary income up 0.1% Expenses were held flat 2008 vs. 2007; 2007 was up 4.2% from 2006 levels Realized re
Slide 12: Capital Expenditures
Property Operations Our properties are in good repair with approximately $2.2 billion invested over the last four years Plan to invest $1,200 per door in Capital Replacements (CR) and Capital Improvements (CI) in 2009 CR of $800 per door adequate to maintain assets CI reduced to $400 per door as ret
Slide 13: Redevelopment Program Scaled Back
Property Operations $1.2 billion invested in redevelopment over the last four years, 2/3 in 2007 and 2008 Rents from these activities are expected to continue to earn-in during 2009 and 2010 Complete certain existing projects and undertake new projects only to the extent they meet higher return thre
Slide 14: 2009 Plan - Two Primary Objectives
Property Operations 2009 Plan - Two Primary Objectives: Increased Resident Retention - Added Service Touch Points Maintain >90% Customer Experience Scores Increased Frequency of Resident Communication - Well Ahead of Upcoming Lease Expirations Cost Containment - Not a Reduction in Service Aggressive
Slide 15: Target Market Expectations for 2009
Target Market Expectations for 2009 Above Average: San Diego, San Jose, San Francisco, Boston & Washington DC Average: East Bay, Seattle, Denver, Dallas, Houston, Chicago, Philadelphia & Suburban NY/NJ Expected to perform at market level Drivers Relative Revenue Performance Below Average: Los Angele
Slide 16: Investment Management
Investment Management
Slide 17: 2008 Sales Results
$2.6 billion of sales in 2008 generated proceeds in excess of $1 billion, used to pre-fund future loan obligations, repurchase common shares and for other investment purposes Sold Properties Free Cash Flow (FCF) includes a $500 per unit deduction for capital replacements and is before debt service.
Slide 18: Focused Conventional Sales
Focused Conventional Sales 81 properties were sold in non-target markets, a nearly 50% reduction in non-core assets since the start of the year Exposure to the Midwest has been significantly reduced, with sales of 31 properties in Michigan, Indiana, and Ohio. Only 19 properties remain in these marke
Slide 19: Improved Asset Allocation
Improved Asset Allocation 85% of capital now invested in 20 target markets which are deep, liquid and have desirable long-term growth characteristics Conventional Asset Allocation (Estimated % NAV)
Slide 20: 2009 Planned Sales
2009 Planned Sales We plan to sell up to $2 billion of properties in 2009 $1.5 billion of conventional properties that remain in non-target markets $500 million of affordable assets Sales Increase Portfolio Rents * Other Markets includes one property in each of the following markets: Louisville (KY)
Slide 21: Investment Management
Investment Management Investment management activities include Portfolio Management and Asset Management Portfolio Strategy Capital Allocation Acquisitions/Dispositions Joint Ventures Tax Credit Syndications Other Transaction Activities Affiliated Partnerships Owned Portfolio Portfolio Management be
Slide 22: More than 50% of Investment Management revenue is recurring
Investment Management More than 50% of Investment Management revenue is recurring
Slide 23: Liquidity and Balance Sheet
Liquidity and Balance Sheet
Slide 24: Liquidity is Sound
Liquidity is Sound Aimco is financed primarily with non-recourse property debt of $5.6 billion Prepaid $125 million of term debt in December 2008 and January 2009 Balance of recourse bank debt consists of: $350 million due March 2011 is expected to be funded by asset sales and retained cash from ope
Slide 25: Aimco's Improving Balance Sheet
Aimco's Improving Balance Sheet Redeemed $236.8 million of Perpetual Preferred Stock with a weighted average rate of 10.0% Redeemed $150.0 million of Convertible Preferred Stock with a weighted average rate of 8.2% Repurchased $27.0 million of variable rate Series A Community Reinvestment Act Perpet
Slide 26: Property Debt
Property Debt Use of non-recourse property debt reduces risk to the enterprise Property debt is long term with a weighted average maturity of 9.6 years Laddered maturities reduce refunding risk Aimco refinances property debt on a routine basis in our ordinary course of business 38 loans maturing dur
Slide 27: Conclusions
Conclusions
Slide 28: Conclusions
Conclusions Aimco owns hard assets, brick and mortar whose replacement costs greatly exceed current values Our properties are in good markets with approximately 85% invested in the 20 largest U.S. markets and the balance in 20 other markets Our properties are well located within their markets follow
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