Investor Presentaiton
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INNOVATION & PRODUCTIVITY
Focus on efficient, productive operations: Aimco considers Controllable Operating Expenses ("COE"), defined as property
level expenses before taxes, insurance, and utilities, as one measure of operating efficiency.
О 2019 Same Store COE growth is expected to be 50 bps.
О
For the five years ended 2018, Aimco Same Store COE growth was 1.1%, 100 bps below the peer average. (1)
For the five years ended 2018, Aimco Same Store Expense growth was 2.0%, 110 bps below the peer average.(1)
For the ten years ended 2018, Aimco Same Store COE growth was flat. (2)
О For the ten years ended 2018, Aimco Same Store Expense growth was 1.2%, 120 bps below the peer average. (1)
Disciplined innovation is the foundation of Aimco cost
control efforts. Innovative activities include:
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Redesign work: moving administrative tasks to the
Shared Service Center reduces cost and allows site
teams to focus on sales and service.
Standardize processes and purchases: reducing
complexity, enhancing productivity, and increasing
volume discounts.
Invest consistently: focus on total lifecycle costs by
installing more durable in-unit materials such as plank
flooring instead of carpet, and granite countertops
instead of laminate.
Leverage Technology: meet today's customer
preference for on-line self-service and convenience,
while also reducing costs through such innovations as
software controls, package lockers, and smart home
technology.
120
115
110
105
100
96
Same Store Expense Growth
2013-2018
95
2013
2014 2015 2016
2017
2018
120
115
110
105
100
Same Store COE Growth
2013-2018
CAGR
3.1% Peer Avg
2.0% Aimco
CAGR
2.1% Peer Avg COE
1.1% Aimco COE
95
2013
2014
2015
2016
2017 2018
(1)
Peer group consists of AVB, CPT, EQR, ESS, MAA, and UDR. Peer average COE is calculated, per Aimco's COE definition, as the CAGR of peer averages. SS Expense breakout is not publicly reported by MAA
in 2014, therefore it was excluded from the 5-year COE average. For the four years ended 2018, Aimco COE growth was 1.3%, 70 bps below peer average (including MAA).
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(2)
Due to inadequate public Same Store COE disclosure from peers a ten-year comparison is not available.View entire presentation