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
3 AIR Edge emphasis on productivity drives NOI margin performance...
100.0 100.1
Indexed to 2009
Focus creates outperformance in AIR's Same Store portfolio, while making
possible acquisitions with attractive returns on a risk-adjusted basis
Same Store COE Growth (%)(1)(2)
Same Store NOI Margin (%) (2) (3)
99.9
100.6 100.6
99.5 99.2
98.6
98.3
98.1
95.7
95.7
95.1
Negative 10 bps growth CAGR
in Same Store COE measured
over more than a decade (1)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
5-Year COE Growth CAGR (%)
1-Year COE Growth CAGR (%)
4.0%
-0.1%
AIR
COMMUNITIES
(1)
(3)
2.1%
1.6%
-0.3%
AIR
COMMUNITIES
1.4%
AIR Communities
Coastal Peer Avg.
Peer-leading(2) Same Store NOI Margin
over 20+ consecutive quarters
2016
2017
2018
2019
2020
2021
Sunbelt Peer Avg.
Controllable operating expense ("COE") defined as total same-store operating expenses less taxes, insurance, and utilities. Based on reported full year financials for 2009-2021.
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.
Same Store NOI Margin for Q1 2022 is presented net of $7.1M of utility reimbursements. Historical data is presented net of utility reimbursements as well. AIR views this metric as the best measure of
real estate profitability given utility costs are a pass-through to the resident.
AIR
COMMUNITIES
(3)
72.8%
68.2%
65.0%
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