Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Nareit REITworld 2022 Annual Conference
38 slides from Apartment Investment And Management's conference presentation, Nov 15, 2022
Slide 1: Aimco Excellent Corporate Citizenship
Aimco EXCELLENT CORPORATE CITIZENSHIP
Slide 2: Aimco Mission
AIMCO MISSION To make real estate investments, primarily focused on the multifamily sector within targeted U.S. markets where outcomes are enhanced through our human capital and substantial value is created for investors, teammates, and the communities in which we operate. WHAT WE INVEST IN: Real es
Slide 3: Aimco
Aimeo
Slide 4: Executing on Strategy
Maximizing Real Estate Investment Performance Prudent and Opportunistic Capital Allocation Maintaining a Strong Balance Sheet and Accessing Capital Markets Accelerated Independence from AIR EXECUTING ON STRATEGY Since separation from AIR in December 2020, total shareholder returns (TSR) for Aimco ha
Slide 5: Simplifying the Relationship with AIR
EXECUTING ON STRATEGY SIMPLIFYING THE RELATIONSHIP WITH AIR AIR Transition / Relationship Items Separation Now Notes Payable to AIR $534M @ 5.2% due Jan 2024 Paid in full AIR Lease Liabilities Four leases for $469M One lease for $6.1M Purchase option/ROFO Purchase option on any stabilized asset Aimc
Slide 6: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding: Aimco’s business strategy, pipeline, and targeted opportunities. Forward-looking statements include all statements t
Slide 7: Senior Leadership Team
SENIOR LEADERSHIP TEAM Jennifer Johnson EVP, CHIEF ADMINISTRATIVE OFFICER, GENERAL COUNSEL 18 Years with Aimco Wes Powell PRESIDENT & CHIEF EXECUTIVE OFFICER 18 Years with Aimco Lynn Stanfield EVP & CHIEF FINANCIAL OFFICER 21 Years with Aimco Lee Hodges SENIOR VICE PRESIDENT SOUTHEAST REGION 7 Years
Slide 8: Value Proposition
VALUE PROPOSITION Aimco provides a significant value proposition given the intrinsic value of its platform and its assets relative to the current share price. Aimco’s 50-day moving average = $8.05 per share1 The Aimco board and management team are committed to narrowing the gap and unlocking shareho
Slide 9: Aimco Investments
AIMCO INVESTMENTS Investment in Value Add and Opportunistic Real Estate Provides outsized growth opportunities compared to a primarily stabilized apartment portfolio Aimco invests where it has the local knowledge and expertise that provides a comparative advantage over other developers and mitigates
Slide 10: Investment Thesis: Value Proposition
Aimco INVESTMENT THE: SIS: VALUE PROPOSITION
Slide 11: Environmental Stewardship: The Hamilton Miami, FL
EXCELLENT CORPORATE CITIZENSHIP REDEVELOPMENT OF THE HAMILTON IN MIAMI, FL Retained the building's original footprint, significantly reducing construction waste Converted enclosed atrium to an open-air lobby with extensive plantings Waterproofed building using high impact glass throughout the buildi
Slide 12: Pipeline Details: Edgewater Assemblage
PIPELINE DETAILS EDGEWATER ASSEMBLAGE MIAMI / FL Acres: 8.3 GSF of Development: ~2,300,000 Green Street Submarket Grade: A- Aimco’s Financial Interest: Aimco is sole owner of The Hamilton and the adjacent land which can accommodate ~1.3M sf. Aimco has a 20% interest in the remaining assemblage.
Slide 13: Prudent and Opportunistic Capital Allocation
$1Bn of Asset Dispositions at Favorable Pricing $669M of leasehold development assets monetized at more than $750k per unit $265M from the sale of three assets at a premium to our internal NAV estimate and by selling a partial interest in our passive IQHQ investment, generating >50% IRR Accessed the
Slide 14: Optimizing Growth: Target Allocation by Segment & Sector
OPTIMIZING GROWTH AIMCO TARGET ALLOCATION BY SEGMENT & SECTOR Approximate Current Allocation Target Allocation Target Leverage Avg. Annualized Project-Level Return on Equity [2] Value Add & Opportunistic Real Estate 25% 40% - 60% 65% ~18% Core & Core Plus Real Estate [1] 55% 35% - 45% 50% ~9% Altern
Slide 15: Highly Engaged Team
EXCELLENT CORPORATE CITIZENSHIP HIGHLY ENGAGED TEAM Record 4.52 (out of 5 stars) team engagement for 2022: 92% employee response rate SUPPORTING OUR COMMUNITIES WITH PARTNERSHIPS, OPPORTUNITIES FOR TEAMMATES TO VOLUNTEER Providing teammates with 15 hours of paid volunteer hours through Aimco Cares P
Slide 16: Aimco Overview
Aimco is a diversified real estate investment company with a 28+ year history of growth and innovation in the multifamily sector. Since completing a strategic business separation in late 2020, the Aimco platform has been focused on a total return strategy that includes value add, opportunistic, and
Slide 17: Asset List
ASSET LIST Operating Apartment Communities Operating Office Building Property Name Location Apartment Homes Property Name Location Square Feet 118-122 West 23rd Street New York, NY 42 1001 Brickell Bay Drive Miami, FL 300k 173 E. 90th Street New York, NY 72 237-239 Ninth Avenue New York, NY 36 Activ
Slide 18: Pipeline Details: Broward
PIPELINE DETAILS BROWARD FORT LAUDERDALE / FL Acres: 4.2 GSF of Development: ~2,000,000 Green Street Submarket Grade: A- Aimco’s Financial Interest: Aimco owns 51% of the venture.
Slide 19: Utilizing 3rd Party Equity to Fund Projects and Scale
UTILIZING 3rd PARTY EQUITY TO FUND PROJECTS AND SCALE EXECUTING ON STRATEGY Hypothetical Project Example Aimco 100% of Development Equity Aimco 20% GP with 80% LP Capital Uses Amico Land Basis $35 $35 Development Costs $180 $180 Development Fee (3%) $5 $5 Closing Costs (2%) $4 $4 Accrued Interest $1
Slide 20: Development and Redevelopment Expertise
EXECUTING ON STRATEGY Development and Redevelopment Expertise Since the separation from AIR: Aimco has successfully invested more than $400M of capital in development and major redevelopment projects Aimco executed 1,200 leases on newly constructed and delivered apartment homes at rental rates avera
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property management revenues, primarily from affiliates; casualties; p
Slide 22: Execute on Pipeline Investments
Benson Hotel and Faculty Club Flying Horse Fitzsimons 4 Fitzsimons add’l phases Oak Shore Upton Place Strathmore Phase 1 Strathmore Phase 2 Strathmore add'l phases The Hamilton Hamilton House 300 Broward One Edgewater 3333 Biscayne Flagler Village Phase 1 Flagler Village add'l phases Brickell Assemb
Slide 23: Aimco Accomplishments
Aimco ACCOMPLISHMENTS: O £8 Kk 22 ws Lu O > 1) Lu = re = (ep)
Slide 24: Presentation Overview: Key Takeaways
Key takeaways from the following presentation: Aimco has created considerable shareholder value since the separation from AIR Communities as evidenced by Total Shareholder Return (TSR), significantly outpacing peers and major indices. Aimco has substantial embedded value and growth opportunities in
Slide 25: Simplifying Through Geographic Focus
OPTIMIZING GROWTH SIMPLIFYING THROUGH GEOGRAPHIC FOCUS Aimco will focus new investment activity within three target markets where fundamentals are sound, the opportunity set is large and Aimco has local market expertise offering a comparative advantage. Source: U.S. Census Bureau 2021 MSA Data, Gree
Slide 26: Board of Directors
Michael A. Stein FORMER CFO ICOS CORPORATION, NORDSTROM, INC., & MARRIOTT INTERNATIONAL, INC. Appointed 2004 Robert A. Miller CHAIRMAN OF THE BOARD SINCE 2020 Appointed 2007 Terry Considine CEO, APARTMENT INCOME REIT CORP. CHAIRMAN AND CEO, AIMCO 1994-2020 Appointed 1994 Wesley Powell PRESIDENT, CHI
Slide 27: Pipeline Details: Brickell Assemblage
PIPELINE DETAILS BRICKELL ASSEMBLAGE MIAMI / FL Acres: 4.25 GSF of Development: ~3,000,000 Green Street Submarket Grade: A+ Aimco’s Financial Interest: Aimco is sole owner of Yacht Club Apartments and 1001 Brickell Bay Drive.
Slide 28: Aimco
Aimco x< a Z Lu o o <
Slide 29: Pipeline Details: Fitzsimons Anschutz Medical Campus
PIPELINE DETAILS FITZSIMONS ANSCHUTZ MEDICAL CAMPUS AURORA / CO Acres: 5.2 GSF of Development: ~1,500,000 Green Street Submarket Grade: B+ Aimco’s Financial Interest: Aimco is the sole owner of options to purchase the only multifamily parcels on the campus.
Slide 30: Building Communities Through Design and Planning
EXCELLENT CORPORATE CITIZENSHIP BUILDING COMMUNITIES THROUGH DESIGN AND PLANNING ENVIRONMENTAL STEWARDSHIP: COMMITMENT TO CONSERVATION & SUSTAINABILITY Inaugural Reporting to Task Force on Climate-Related Financial Disclosures (TCFD) in 2022 Corporate Responsibility Report In 2022, Aimco conducted c
Slide 31: Pipeline Details: Strathmore Square
PIPELINE DETAILS STRATHMORE SQUARE BETHESDA / MD Acres: 8.0 GSF of Development: ~1,500,000 Green Street Submarket Grade: A++ Aimco’s Financial Interest: Aimco has a 50% interest in the first two of six phases of development with options to increase participation.
Slide 32: Portfolio Stats YTD 3Q 2022 Results
PORTFOLIO STATS YTD 3Q 2022 RESULTS 64% 26% 10% Class B Class C+ Class A 97.4% Average Daily Occupancy 21.6% 3Q Rent-to-Income Ratio 11.0% Revenue Growth $2,173 3Q Avg Monthly Revenue per Home 15.8% NOI Growth 12 EXECUTING ON STRATEGY REAL ESTATE INVESTMENT PERFORMANCE Aimco owns a portfolio of 20 s
Slide 33: Pipeline Details: Flagler Village
PIPELINE DETAILS FLAGLER VILLAGE FORT LAUDERDALE / FL Acres: 8.8 GSF of Development: ~3,000,000 Green Street Submarket Grade: A- Aimco’s Financial Interest: Aimco is the sole owner.
Slide 34: Aimco Creating Value
Aimco CREATING VALUE INVESTOR PRESENTATION Nareit REITworld 2022 Annual Conference November 15-17, 2022
Slide 35: Plan: Optimizing Growth
Aimco PLAN: OPTIMIZING GROWTH
Slide 36: Improving the Balance Sheet
EXECUTING ON STRATEGY IMPROVING THE BALANCE SHEET Since the separation from AIR, Aimco proactively fortified its balance sheet ahead of what appeared to be worsening conditions in the debt markets. As of September 30, 2022, Aimco had: Lowered total leverage1 from $1.5Bn2 to $1.1Bn Hedged 100% of its
Slide 37: Active Project Summaries
EXECUTING ON STRATEGY REAL ESTATE INVESTMENT PERFORMANCE Active Project Summaries As of 3Q 2022 (dollars in millions) (unaudited) Number of units approved for development or redevelopment Land Cost/ Leasehold Value Direct Investment Expected NOI Stabilization [2] Expected NOI Stabilization [2] Plann
Slide 38: Allocate Aimco Capital Accretively
ALLOCATE AIMCO CAPITAL ACCRETIVELY OPTIMIZING GROWTH DEVELOPMENT FUNDING selectively advance pipeline projects RETURN OF CAPITAL TO SHAREHOLDERS share repurchases and dividend payments DEBT REDUCTION providing reduced costs and optionality INVEST CAPITAL PRUDENTLY balancing growth, opportunistic sha
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