Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Wachovia Real Estate Securities Conference December 2005
17 slides from Apartment Investment And Management's conference presentation, Dec 7, 2005
Slide 1: Wachovia Real Estate Securities Conference December 2005
Wachovia Real Estate Securities Conference December 2005
Slide 2: Aimco Overview
A. Aimco Overview Largest owner/operator of multi-family properties in U.S. Own approximately 200,000 units, at over 900 properties Manage an additional 47,000 units (principally asset managed) Enterprise value approximately $12 billion S & P 500 company Market capitalization more than $4 billion Ge
Slide 3: Aimco Overview: Well diversified asset base
A. Aimco Overview Well diversified asset base A to C properties Focus on B properties in A locations Conventional portfolio includes: Core Property Portfolio with 328 properties having 99,000 units in 38 markets Non-Core Portfolio with 238 properties having 61,000 units in 27 markets (to be sold ove
Slide 4: Key Themes
A. Key Themes A, B and C properties in A locations... benefit from latent land value through redevelopment or land sales Operational excellence through continuous process improvement, standardization and simplicity. Four consecutive quarters of revenue growth greater than peers Enhancement of financ
Slide 5: Seven Ways Aimco Makes Money
B. Seven Ways Aimco Makes Money Operating multi-family properties Conventional Affordable University Communities Generating fee income Redeveloping / reinvesting in properties Managing portfolio Increasing land values through entitlements Managing cost of capital Managing G&A / productivity MSPhotoE
Slide 6: Operating Multi-family Properties: Conventional Operations - Same Store
1. Operating Multi-family Properties Operating performance demonstrating continued positive trend Revenue up 6.4% 3Q05 versus 3Q04 and up 5.7% year to date Occupancy up 2.7% to 93.4% in 3Q05 versus 3Q04 Average rental rate up 2.7% in 3Q05 versus 3Q04 Pricing and resident quality business rules and p
Slide 7: Operating Multi-family Properties: Conventional Operations - Core
1. Operating Multi-family Properties Conventional Operations - Core Core portfolio accounted for 80% of conventional NOI SSS Core: September occupancy 95.6%, in line with peer average Rents $872, up 3.2% year-over-year Operating margin 58% Top markets predominantly coastal Average home prices 55% hi
Slide 8: Operating Multi-family Properties: Affordable and University
1. Operating Multi-family Properties Affordable: Stable business Approximately 125 core properties with average rents over $780 located in major urban areas 3Q05 occupancy 96% Redevelop select properties using tax credits and investor equity University: Currently 20 properties with 5,596 units Septe
Slide 9: Fee Income
2. Fee Income Fee income - a consistent source of annual income, where Aimco has the expertise and asset base to drive income growth: Generated from tax credit syndication, dispositions, refinancings Tax credit business is a sizable piece of the real estate industry at $5 billion/year Aimco owned pr
Slide 10: Redevelopment
3. Redevelopment Creekside - Denver, CO Belmont Place - Marietta, GA Stabilized in 3Q05, five quarters ahead of schedule Identified pipeline 120 properties WITHIN our existing portfolio $1 B estimated spend at $150-200 million per year Tim Beaudin to Lead Development Team Further opportunity from 22
Slide 11: Portfolio Management
4. Portfolio Management Investing in desirable markets yet maintaining focus on long-term value Concentrate portfolio in fewer markets Reduce from 65 to approximately 38 markets, targeting by the end of 2008 Currently considering further consolidation resulting in fewer markets Expect to exit 8 mark
Slide 12: Portfolio Management: Conventional Portfolio Core vs Non-Core
4. Portfolio Management Core Non-Core Total Rent, average 3Q $901 $588 $783 Occupancy, average 3Q 93.0% 90.9% 92.2% Total # of Properties 328 238 566 Total # of Units 99,114 61,213 160,327 Proportionate Owned Units 84,801 45,513 130,314 Average Home Value* $214,089 $138,384 $182,679 REIS Growth Rate
Slide 13: Entitlement
5. Entitlement Realize upside in land values through increasing density of use Aimco portfolio of B and C properties in A locations provides deep pipeline of opportunities Older properties built at lower densities Focus on locations where land is scarce Underlying land value may be greater than curr
Slide 14: Cost of Capital
6. Cost of Capital Floating rate exposure Partially offset by floating rate assets Variability < $0.02/quarter based on Bloomberg compilations Leverage level good Aimco's capital structure is by design Property level debt offers the lowest risk WACC among lowest of REITs Capitalization plan To fund
Slide 15: G&A / Productivity
7. G&A / Productivity We are very focused on driving a disciplined approach to expense controls through process and technology improvements Actions will reduce G&A and operating costs in 2006 Focus on process, automation and routinization to increase efficiency and take advantage of scale Continue t
Slide 16: 2006 Strategy
D. 2006 Strategy Going into 2006, Aimco will be focused on: Property operations: Leveraging higher occupancy to drive increased rent. Disciplined expense control Fee income: Growing tax credit redevelopment stream to improve asset quality and generate continued strong fee income Redevelopment: Execu
Slide 17: This Presentation Contains Forward-looking Statements
This Presentation Contains Forward-looking Statements This presentation contains forward-looking statements, including statements regarding future results and specifically fourth quarter 2005 expected results. These statements are subject to certain risks and uncertainties, including but not limited
Apartment Investment & Management — Wachovia Real Estate Securities Conference December 2005 on 6ix