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
Simple, transparent business with a high-quality portfolio driving attractive organic growth
April/May Operating Update
Compounded SS Revenue Growth (1)
SS Revenue to FCF Conversion (%) (2)
Indexed to 2019
17.6%
10.3%
14.4%
18.2%
13.5%
10.7%
118.1
64.7%
65.3%
59.0%
59.7%
109.0
104.1
Apr 2022
May 2022
2019
2020
2021
New Leases
Renewals
Wtd. Avg.
AIR
Coastal Avg.
Sunbelt Avg.
2022
Midpoint
Guidance
2021
Q1 2022
AIR
2021
Q1 2022
Peer Average (1)
(+) Revenue
(1)
(2)
•
•
Emphasis on "good neighbor" policies and stable
communities continues to attract strong demand,
and retain high-quality, affluent residents
Diversification supports stable growth over cycles
AIR's business continues to perform; external
growth demonstrates the value of the AIR Edge
Class of 2021 acquisitions outperforming with
blended signed leases up 26.6% at City Center
and 27.3% in the DC Portfolio
.
Expect to sustain momentum in 2022 and 2023
given (i) earn in, (ii) low teens loss-to-lease, and
(iii) current indications of sustained leasing
through peak season
(-) Operating
Expense
.
•
COMMUNITIES
•
Peer-leading (1) COE track record
Additional efficiency through G&A cap in place
As a result, ~9-10% more Same Store Revenue
converted to FCF
-
Durable advantage in growth created by the
AIR Edge compounds over time
Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA.
Reflects Q1 2022 and 2021 financials as reported in company filings. Free Cash Flow Conversion % defined as Same Store NOI less Net Property Management and G&A Expense, and divided by Same
Store Revenue. Please see appendix for additional detail.
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