Apartment Income REIT — Nareit REITweek June 2023
18 slides from Apartment Income REIT's conference presentation, June 2023
Slide 1: Investor Presentation June 2023
The most efficient and most effective way to allocate capital to multi-family real estate Southgate Towers Miami, FL Investor Presentation Ocean House, 707 Leahy, and One Ardmore June 2023 Place were recognized in Q1 2023 as Top 100 Multifamily Properties as part of the Kingsley Excellence Awards 0
Slide 2: AIR's distinctive business model provides for peer-leading results
The most efficient and most effective way to allocate capital to multi-family real estate AIR’s distinctive business model provides for peer-leading results Since 2019, AIR leads Coastal peers in Same Store Revenue and NOI growth, and in the conversion of revenue to Free Cash Flow AIR is expected to
Slide 3: Key Takeaways: Peer-leading Same Store performance
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Year-Over-Year Same Store Revenue Growth (%)(1) 1 Peer-leading(1) Same Store performance On track to outperform all peers in 2023 and 2024(2) • Sustained revenue growth across cycles 2023E Guidan
Slide 4: Revenue Growth Starts With High-Quality Residents
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Revenue Growth Starts With High-Quality Residents 1 Peer-leading(1) Same Store performance • AIR attracts high-quality residents with high incomes and strong credit • Sustained revenue growth acr
Slide 5: Peer-leading in Cost Control
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Peer-leading in Cost Control 1 Peer-leading(1) Same Store performance • Sustained revenue growth across cycles 13+ year track record of flat compounded growth in COE Driven by productivity gains
Slide 6: NOI Margin & Cash Flow Conversion
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: NOI Margin & Cash Flow Conversion 1 Peer-leading(1) Same Store performance • Sustained revenue growth across cycles Peer-leading(1) NOI margins for over 20+ consecutive quarters Low G&A at less t
Slide 7: External Growth Through Two New JV Partnerships
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: External Growth Through Two New JV Partnerships 1 Peer-leading Same Store performance • Two of the world’s largest real estate investors have chosen to partner with AIR in • Sustained revenue gro
Slide 8: Joint Ventures Overview
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Global Institutional Investor Global Asset Manager 1 Peer-leading Same Store performance Joint Ventures Overview(1) JV Partnership JV Partnership • Sustained revenue growth across cycles 10 prope
Slide 9: Portfolio Enhanced by Peer-leading Capital Recycling
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Portfolio Enhanced by Peer-leading(1) Capital Recycling 1 Peer-leading Same Store performance 45% of GAV ($4.7B) recycled since Separation(2) • Sustained revenue growth across cycles Average reve
Slide 10: Increased Rate of Growth is Visible in 2023 Performance
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Increased Rate of Growth is Visible in 2023 Performance 1 Peer-leading Same Store performance Acquisition NOI anticipated to grow at rates ~2-3x market levels in years two to • Sustained revenue
Slide 11: Run-Rate FFO per Share
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Run-Rate FFO per Share(2) 1 Peer-leading Same Store performance 2023 FFO per share (at the mid-point) guidance reflects ~10% growth over run-rate • Sustained revenue growth across cycles in 2022,
Slide 12: Looking Forward…
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Looking Forward… 1 Peer-leading Same Store performance Annualization of 2H 2023 FFO (at the mid-point of guidance) would result • Sustained revenue growth across cycles in FFO per share of $2.58
Slide 13: Ample Liquidity & Limited Financial Risk
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Ample Liquidity & Limited Financial Risk 1 Peer-leading Same Store performance • Liquidity of $2B(2), more than 3x the peer average(3) • Sustained revenue growth across cycles • No debt maturitie
Slide 14: Premium / (Discount) to NAV & Implied Cap Rate
The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways: Premium / (Discount) to NAV & Implied Cap Rate(1)(2) 1 Peer-leading Same Store performance Net Asset Value Implied Cap Rate (%) • Sustained revenue growth across cycles 5.9% 5.8% 6.1% • COE is fl
Slide 15: Appendix
The most efficient and most effective way to allocate capital to multi-family real estate Appendix Watermarc at Biscayne Bay Miami, FL 14
Slide 16: Properties contributed to newly created strategic partnerships
The most efficient and most effective way to allocate capital to multi-family real estate Properties contributed to newly created strategic partnerships Average Revenue Property Location Units Ownership Sold per Unit Huntington Gateway Alexandria, VA 443 70%(1) $2,318 Locust on the Park Philadelphia
Slide 17: Calculation of Same Store Revenue to Free Cash Flow Conversion %
The most efficient and most effective way to allocate capital to multi-family real estate Calculation of Same Store Revenue to Free Cash Flow Conversion %(1) ($ in 000s, unless noted) AIR ESS UDR EQR AVB CPT MAA Q1 2023 Actuals Same Store Revenue (GAAP) $157,902 $389,600 $379,439 $681,675 $622,449 $
Slide 18: Forward-Looking Statements / Non-GAAP Measures
The most efficient and most effective way to allocate capital to multi-family real estate Forward-Looking Statements / Non-GAAP Measures This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projec