Investor Presentaiton
REDEVELOPMENT CYCLE
"SMALL PHASE" REDEVELOPMENTS - INVENTORY MANAGEMENT
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When practical, Aimco prefers "small phase" redevelopments which provide optionality to improve the offering and flexibility
to adjust the volume to market demand. Current examples include Bay Parc and the Center Tower at Flamingo Point.
Managing inventory to meet demand optimizes pricing and allows for predictable NOI growth proportional to value creation.
"MAJOR" REDEVELOPMENTS
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Aimco engages in “large phase" or "major" redevelopments when the scope of the project, or structure of the community,
requires investment in larger building systems.
Major redevelopments have comparable value creation, but their longer cycle time increases current period earnings dilution.
Recent examples include The Sterling, Park Towne Place, and the North Tower at Flamingo Point.
REDEVELOPMENT CYCLE
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Redevelopment contribution of value creation to Aimco Economic Income is largely consistent, while current period contribution
to AFFO is more volatile, often reduced during construction and increasing as the redevelopment becomes stabilized, as
described below.
Stabilized
Pre-Construction
Value Creation
Opportunity
•Based on location and
ability to reposition the
asset in the market
AFFO Growth Opportunity
•Stabilized NOI, with the
potential to outpace the
market through
repositioning
Current Example
• Villas at Park La Brea
Construction
Phase
Initial Value Creation
•GAV is created as
redevelopment dollars
are spent
AFFO Dilution
•Down units and
disruption to leasing
from construction,
partially offset w/
capitalized interest
Current Example
⚫707 Leahy, Flamingo
Point
Lease-Up
Continued Value Creation
•GAV increases as
construction is completed
and lease-up begins
AFFO Dilution
•Vacancy during lease up,
increased marketing
expenses, and minimal or
no capitalized interest offset
Current Example
• Parc Mosaic
Post Redev
NOI Stabilization
Value Creation Fully
Realized
•Full accretion from investment
and incremental value
creation
Full AFFO Earnings
•Maximized earnings potential
through intentional community
design, targeted marketing,
and successful repositioning
•Achieved up to 2 years after
construction completion
Current Example
•The Sterling
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