Investor Presentaiton
PORTFOLIO MANAGEMENT
Aimco allocates capital on a leverage-neutral basis in accordance with its FCF IRR paired-trade discipline.
Aimco considers unlevered risk-
adjusted returns from a menu of capital
uses including:
•
Capital Enhancements
•
Redevelopment
•
Development
•
Acquisitions
·
Leverage reduction
Share buybacks
Aimco considers portfolio implications and
execution risks such as:
•
Geographic market concentrations
•
Price point concentrations
•
Competitive new supply
•
Entitlement risk
• Construction risk
.
Lease-up risk
Aimco considers its cost of
unlevered equity capital, including:
• Sale of lower-rated properties
.
Sale of partial interests in higher-
rated properties
Issuance of shares or OP units
Aimco continues to be active in the pursuit of value-creating opportunities both inside and outside its portfolio.
Capital Allocation Category
Covered-land investments
Under-managed communities
OP unit transactions
Acquisition of new construction
Stock buybacks
Description
Land value that approaches or exceeds the current
developed value.
Communities that benefit from Aimco's peer-leading
operating platform and property management.
Tax-advantaged transactions where Aimco's UP-
REIT platform offers benefit to the seller.
Aimco bears lease-up risk but has no construction
risk.
Selling assets at market prices to reinvest in the
Aimco portfolio at a meaningful discount to NAV.
Aimco Example
Eastpointe/Parc Mosaic & 1001
Brickell Bay Drive/Yacht Club
Bent Tree & Avery Row
Philadelphia portfolio
Vivo & Cambridge acquisition
2018 purchases of 8.7M shares at
prices averaging $45 per share
AIV has existing authorization to
repurchase 10.6M shares
10View entire presentation