Strategies for Multi-Family Real Estate Capital Allocation
AIR
COMMUNITIES
The most efficient and most effective way to allocate capital to multi-family real estate
Low, fixed cost leverage achieved in 15-months following Separation
Balance Sheet Progress Since Separation (1)
Gross leverage reduced by $1.5B
Increased pool of unencumbered properties by
$5.1B to $7.9B
Net Leverage reduced ~2.1x to 5.4x
Accessed the bond market
Key Balance Sheet Metrics (Pro Forma as of 3/31/2022)
Floating Rate %
No floating rate exposure
-%
Wtd. Avg. Maturity (Yrs)
8.0
Debt Repricing in Next 33 Months
Wtd. Avg. Interest (%)
Only 6% debt repricing through 2024
$146M
Attractive rate for 2022+
3.6%
Gross and Net now equal
5.4x
Net & Gross Leverage to EBITDA (x)
(1)
(2)
-
$100M of 5-year notes
-
$100M of 7-year notes
-
-
$200M of 10-year notes
Debentures priced at wtd. avg. YTM of 4.3%
inclusive of treasury lock purchased in
anticipation of the offering
Transaction anticipated to close in late June
•
Share Repurchase Activity
~$72M of opportunistic share repurchases
during Q2 2022 at an average $44.20 per
share, or ~5% implied cap rate (2)
Board authorization to repurchase up to
$500M of common shares
5.4x metric pro forma for (i) $159M of April property sales and (ii) $557.5M from AIV: $534M in payment of the note and $23.5M as a prepayment penalty.
Per GSA and S&P Cap IQ as of 6/3/2022.
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