Strategies for Multi-Family Real Estate Capital Allocation slide image

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 Calculation of Same Store Revenue to Free Cash Flow Conversion (1) ($in 000s, unless noted) AIR ESS UDR AVB EQR CPT MAA Q1 2022 Actuals Same Store Revenue $138,108 $356,273 $321,514 $546,839 $618,357 $277,838 $454,477 Same Store NOI $100,605 $247,761 $223,502 $371,119 $408,366 $181,278 $294,642 Property Management (Net) (5,342) (10,172) (10,491) (28,113) (30,747) (5,939) (16,537) General & Administrative (5,034) (12,242) (14,908) (17,421) (17,238) (14,790) (16,323) Revenue Converted to Free Cash Flow $90,229 $225,347 $198,103 $325,585 $360,381 $160,549 $261,782 Same Store Revenue FCF Conversion % 65% 63% 62% 60% 58% 58% 58% Average Implied Revenue % Increase for Breakeven with AIR 61% 8% 58% 13% 2021 Actuals Same Store Revenue $525,436 $1,288,238 $1,160,938 $2,046,173 Same Store NOI Property Management (Net) General & Administrative $379,042 $891,404 $799,079 $1,370,282 $2,342,257 $1,538,262 $971,872 $620,662 $1,702,741 $1,064,308 (25,241) (27,050) (14,087) (51,838) (32,438) (57,541) (98,665) (69,611) (98,155) (20,318) (55,732) (56,506) (59,368) (52,884) Revenue Converted to Free Cash Flow $339,714 $812,516 $709,100 $1,202,006 $1,383,601 $540,976 $955,692 Same Store Revenue FCF Conversion % 65% 63% 61% 59% 59% 56% 56% Average 60% 56% Implied Revenue % Increase for Breakeven with AIR 7% 16% (1) AIR Communities Coastal Peer Avg. Sunbelt Peer Avg. 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. 29 29
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