Investor Presentaiton
STRATEGIC FOCUS
Aimco Economic Income is the result of performance in five key business areas.
Operations
Redevelopment and
Development
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Drive rent growth based on high levels of resident retention, through superior customer
selection and satisfaction, coupled with disciplined innovation resulting in sustained cost
control, to maximize NOI margins (peer-leading for each of the last eight quarters).
Create value and maximize earnings potential by the renovation and repositioning of
apartment communities through small phase and major redevelopments.
Portfolio Management/
Capital Allocation
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Balance Sheet
Team
Maintain an apartment portfolio diversified by geography and price point with a focus on
properties with high land value located in submarkets with outsized future growth
prospects.
Current capital allocation favors Redevelopment and Development on a risk-adjusted,
leverage-neutral basis with average Free Cash Flow IRRs of ~10%, as compared to
acquisition of stabilized properties with Free Cash Flow IRRS of 6% to 7% (1), and share
repurchases with Free Cash Flow IRRs in the mid-7% range.
Utilize safe property debt that is low-cost, long-dated, amortizing, and non-recourse;
limiting entity and refunding risk while maintaining asset flexibility.
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Focus intentionally on a collaborative and productive culture based on respect for others
and personal responsibility, reinforced by a preference for promotion from within based
on explicit talent development and succession planning to produce the strong, stable
team that is the enduring foundation of Aimco success.
(1)
Market-rate acquisition IRRS based on weighted-average, risk-adjusted IRRS in Aimco markets as published by Green Street Advisors.
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