INVESTOR PRESENTATION SEPTEMBER 2017 1
AIMCO QUICK FACTS Shareholder Goal Aimco seeks to earn long-term returns on equity that are superior to those of the equity REIT and S&P 500 indices by investing in a portfolio of high quality multifamily communities, diversified by both geography and price point, whose cash flows are predictable and rising. 12 10% 5-year 1994 $51 NAV Primary Markets AFFO CAGR Aimco IPO per share 141 12% 5-year 2003 $12 B Gross Asset Value Apartment Communities Economic Income (1) CAGR Added to S&P 500 Valuation Metrics (2) Total Shareholder Return Since IPO As of Sept 15, 2017 7/22/94 - 12/31/16 Peer AIV, 12.2% Aimco Average MSCI US REIT Index, 10.6% Price-to-Earnings (3) 21.50x 23.05x S&P 500, 9.5% 2017 AFFO Growth Rate 7.6% 2.5% Price-to-NAV 89% 100% DJIA, 7.7% PEG Ratio (4) 2.82 9.36 (1) Economic Income represents the annual change in NAV per share plus cash dividends per share. (2) Peer group consists of AvalonBay, Camden, Equity Residential, Essex, MAA and UDR. Source for peer simple average: KeyBanc Capital Markets in its Leaderboard. (3) Represents price-to-projected 2017 AFFO. 2 (4) Price-to-Earnings to AFFO Growth Rate ratio.
AIMCO QUICK FACTS Consistent Growth Over Time; Better Than Peer Average Outsized Growth in Quality of Portfolio and Earnings (1) Peer group consists of AvalonBay, Camden, Equity Residential, Essex, MAA and UDR. Source for peer simple average: SNL Financial. (2) Source for peer average: Company financials. 3 (3) Source for peer simple average: KeyBanc Capital Markets in its Leaderboard.
AIMCO QUICK FACTS Components of 2016-to-2017 AFFO per Share Growth • Aimco’s projected 2017 AFFO per share growth of 7.6% is expected from NOI increases of $0.10 per share from its Same Store portfolio and $0.19 per share primarily from its lease-up and redevelopment communities. The lease-up communities are substantially leased and on track to deliver their planned contribution to 2017 AFFO per share. • The NOI increases from Same Store, lease-up, redevelopment and other communities more than offset both the decline in NOI from 2016 property sales (the proceeds of which were used to fund the acquisition of Indigo and to pre-fund redevelopment activities) and the decline in Other Earnings related to the runoff of the Asset Management business and lower tax-related benefits. • Aimco’s allocation of capital to accretive redevelopment is an investment in future earnings growth and will more than offset any further reduction in Other Earnings. 4
LEADERSHIP TEAM Lisa Cohn Terry Considine Miles Cortez Steve Crane Matt Eilen Paul Beldin John Bezzant EVP & EVP & EVP & Chairman & EVP & Real Estate Tax Property Operations 14 Years Chief Financial Officer Chief Investment General Counsel CEO Chief Administrative Finance 9 Years Officer 15 Years 42 Years Officer 7 Years 11 Years 16 Years Andrew Higdon Evan Hoffman Jennifer Johnson Keith Kimmel Michael Englhard Patti Fielding Kristina Howe Human Resources Redevelopment Chief Accounting Property Operations Property Operations EVP EVP Revenue Management 13 Years Property Operations Construction Services Redevelopment Officer Shared Services 4 Years 10 Years 9 Years 15 Years 15 Years 20 Years Stephanie Lambert Didi Meredith Leann Morein Kevin Mosher Susan Pickens Wes Powell Patti Shwayder Lynn Stanfield Property Operations Communications Redevelopment Property Operations Compliance IT Strategy Redevelopment Finance & Tax Finance West Operations 23 Years East Operations 13 Years 15 Years 17 Years 23 Years 16 Years 11 Years 10 Years 5
MULTIFAMILY LANDSCAPE HOUSING DEMAND IS HEALTHY New Households Job Growth Income Growth (1) • • • Greater than 1 Million New Households Returned to pre-recession levels in 2014 (2) Sluggish income growth was • in both 2015 & 2016 (1) The number of employed people in the experienced during the early part of the prime renting age cohort of 20 to 34 year- economic recovery • • New Household formation is expected olds has increased by ~3.0M since 2014 (2) Income growth accelerated in 2015 & to remain above 1 Million in 2017 (1) 2016 • • • 2018 - 2021 ~4.4M New Households (1) 2018 - 2021 11.6M new jobs projected (3) Incomes are expected to continue to rise • ~45% Renter Households (1) DEMOGRAPHICS FAVOR MULTIFAMILY U.S. Population Age Structure (3) Propensity to Rent • • Cohort of 20 to 34 year-olds projected to Historically, 64% of people aged 20 to 34 choose to rent while 21% of people over the increase by ~1M from 2018 to 2021 age of 55 do so (1) • Aging of population alone translates into ~2.1M potential new renters from 2018 to 2021 • • Share of households renting 5% over last 10 years (4) 55 and older age cohort projected to increase by ~7.5M from 2018 to 2021 GROWTH WILL BE GOVERNED BY NEW SUPPLY • New supply generally impacts rent growth when completions are greater than 2% of existing inventory. • New supply is typically delivered at the highest rents in the market, putting competitive pressure primarily on existing high-rent "A" communities. • Favorable job growth mitigates the impact of new supply. • Supply risk is also reduced through geographic and price point diversification, and careful market selection. (1) Green Street Advisors, 2017 U.S. Apartment Outlook , January 2017 (2) Bureau of Labor Statistics Moody’s Economy.com (3) (4) U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey 6
STRATEGIC OBJECTIVES Portfolio Management Balance Sheet Operational Excellence Redevelopment Focus on Total Contribution to Add Value by Repositioning Reduce Revenue Volatility Limit Risk Through Balance AFFO Properties Within Existing Through Portfolio Design and Sheet Structure Portfolio Customer Selection • • • • Lower resident turnover Invest up to 3% of GAV Diversify by geography Finance with long-term, through careful customer annually across 12 primary markets fixed-rate, amortizing, non- • selection and emphasis on Diversify by price point with recourse property debt and • measured customer Current projects are ~50% "A" communities and preferred securities satisfaction expected to create value ~50% "B/C+" communities • • >35% of our investment Select highly qualified Maintain investment-grade • Control costs by focusing on residents rating o Higher earnings are productivity while maintaining • asset quality and a high level of correlated with an older, Weighted-average maturity customer service more stable customer of more than 8 years is o Median income of new ~20% longer than peer residents in 2Q 2017 average was $100,000, up 5% • year-over-year Aimco has the lowest o Average resident age is refunding and repricing risk 37 with 25% of residents among peer group 45 and older Team and Culture Intentional focus on talent development and succession planning results in a strong, stable team that engenders a collaborative and productive culture which is the underpinning of Aimco's success. 7
PROPERTY OPERATIONS STRATEGY STRAGETIC OBJECTIVE: Produce above-average operating results through focus on customer selection, satisfaction, and retention as well as superior cost control. • Over two-thirds of Aimco residents have a PRIME credit rating, about 50% more than the national average for renters. (1) • Residents awarded Aimco CSAT scores averaging more than 4 (out of 5) during the last five years, reflecting high levels of resident SATISFACTION . • Aimco Same Store expense growth has been LOWER than peer average for the past five years and is projected to lead in the group in 2017. • Aimco Same Store NOI results are once again expected to EXCEED peer average. At the guidance midpoint, Aimco 2017 Same Store NOI growth of 4.25% is 145 bps ahead of peer average. Selecting and Retaining Good Neighbors Resident Customer Customer Selection Satisfaction Retention Greater NOI Contribution Focus on Innovation and Efficiency Predictable Operating Results Superior Centralizing Investing in and longer-lived Cost Standardizing materials Control Activities (1) Prime includes those residents with FICO scores above 660. National average data is from The Urban Institute, as reported in the March 2016 report: Comparing Credit Profiles of American Renters and Owners . 8
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