Apartment Investment And Management Company · NYSE:AIV
Apartment Investment And Management — Investor Presentation (July 2012)
14 slides from Apartment Investment And Management's investor presentation, Jul 10, 2012
Slide 1: Investor Presentation July 2012
2900 on First, Seattle, WA Flamingo South Beach, Miami, FL Elm Creek, Elmhurst, IL The Palazzo at Park La Brea, Los Angeles, CA Park Towne Place, Philadelphia, PA Sterling Apartments, Philadelphia, PA Investor Presentation July 2012
Slide 2: Strategic Areas of Focus
Strategic Areas of Focus lo Property Operations Redevelopment ctv f opportunities within existing portflic adjusted etums greater than groundup development,non-value add acquisition Balance Sheet juration fixed-rate, non-recout
Slide 3: 2012 Plan
2012 Plan * Leverage metrics based on annualized projected 4Q 2012 EBITDA.
Slide 4: Property Operations Strategy: Customer Retention is Key
Lower turnover strategy and operating cost discipline produce peer-leading expense experience. Over five years, Aimco's costs are flat while, on average, peer operating expenses have increased approximately 8%(2) and CPI has increased 11% Lower turnover strategy contributes to outperformance Greater
Slide 5: 2012 Plan: Property Operations
2012 Plan: Property Operations 1Q Highlights Conventional Same-Store NOI Revenue ? 4.2% vs. 1Q 2011 and ? 1.2% vs. 4Q 2011 Lease rates ? 3.4% vs. ? 3.0% in 4Q 2011 and ? 2.5% in 1Q 2011 Guidance ? 25 bps to 5.5% - 7.5% driven by lower expenses Affordable Same-Store NOI Guidance ? 50 bps to 0.5% - 1.
Slide 6: Designing portfolio around our target customers
Designing portfolio around our target customers Aged 24 - 40 ? high propensity to rent College-educated ? strongest job and earnings growth, lowest unemployment, annual income of $60,000 - $80,000 Single ? homeownership is a lifestyle choice; not yet motivated by marriage, children Portfolio Strateg
Slide 7: 2012 Plan: Portfolio Strategy, Dispositions and Investments
Aimco Share: $550 - $650M Conventional Properties ($500 - $600M) Sell 25+ properties with average revenues/unit of approximately $785 Year-end 2012 portfolio: Average revenue/unit ? 9% to $1,370 NOI margin ? 1.5% to 64% Free Cash Flow margin* ? 3% to 58% FCF margin ? at rate twice that of NOI margin
Slide 8: Redevelopment Strategy
Redevelopment Strategy Pipeline of opportunities to generate higher risk-adjusted returns Redevelopment philosophy: Land in quality locations appreciates over time Older assets in quality locations provide opportunity for redevelopment Redevelopment is a short-cycle business making it lower-risk tha
Slide 9: Vacant Redevelopment Properties
Vacant Redevelopment Properties The Preserve at Marin, Corte Madera, CA (126 units) Today After Redevelopment Lincoln Place, Venice, CA (696 existing units + 99 new) Today After Redevelopment Pacific Bay Vistas, San Bruno, CA (308 units) Today After Redevelopment
Slide 10: 2012 Plan: Redevelopment
2012 Plan: Redevelopment Redevelopment plan is on track Flamingo South Beach $4M Bay Walk project Plantation Gardens $6M ($16K/unit) 1Q Highlights Redevelopment Total of ten active projects during 2012 Four projects underway at quarter-end: two on West Coast, two in South Florida Pacific Bay Vistas:
Slide 11: Balance sheet designed for safety
Balance sheet designed for safety Limit entity risk by avoiding recourse debt, of which Aimco has very little Reduce re-pricing risk by using fixed-rate loans and refinancing nearer-term maturities to lock-in current low rates Reduce refunding risk by laddering maturities of long-term, non-recourse,
Slide 12: 2012 Plan: Balance Sheet
2012 Plan: Balance Sheet De-levering accelerated by preferred stock redemptions Leverage metrics based on projected annualized 4Q 2012 EBITDA. Based on Green Street Advisors' 2013 NOI growth estimates published in its May 14, 2012 "Residential Sector Update". Accelerated Progress to Targets Equity O
Slide 13: Earnings & Dividend
Earnings & Dividend Increasing earnings, higher dividends FFO $1.76 - $1.84 AFFO $1.24 - $1.34 Dividend* $0.20 per quarter * The Aimco Board intends to increase the company's quarterly dividend 11%, from $0.18 to $0.20 per share, at its next meeting in July. On an annualized basis, this is a 67% inc
Slide 14: Forward-looking statements
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 2012 financial and operating results, asset sales and redevelopment investment; projected retu
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