Apartment Income REIT — Investor Presentation (November 2023)
19 slides from Apartment Income REIT's investor presentation, Nov 14, 2023
Slide 1: Investor Presentation November 2023
0 The most efficient and most effective way to allocate capital to multi-family real estate Investor Presentation November 2023 The Elm Bethesda, MD Ocean House, 707 Leahy, and One Ardmore Place were recognized in Q1 2023 as Top 100 Multifamily Properties as part of the Kingsley Excellence Awards Ex
Slide 2: Key takeaways
1 The most efficient and most effective way to allocate capital to multi-family real estate Key takeaways Operations matter • AIR enjoyed peer-leading(1) (i) customer retention, (ii) rental rate growth, (iii) Same Store NOI growth, and (iv) Same Store NOI margin YTD • Emphasis on renewal business… w
Slide 3: Portfolio update
2 The most efficient and most effective way to allocate capital to multi-family real estate Portfolio update • Paired trades of older properties with long-term trend growth for newer properties with higher growth prospects Unlevered IRR Expectation Share Repurchases ~4%De-Leveraging Capital Enhancem
Slide 4: 2023 FFO per share guidance
3 The most efficient and most effective way to allocate capital to multi-family real estate 2022 2023 Guidance (Midpoint) % Δ AIR Reported / Initial FFO per Share Guidance (Midpoint) $2.41 $2.41 -% Less: Contribution of Aimco Note Prepayment(1) (0.22) n/a n/a Less: 2023 Recurring FFO Impacts n/a (0.
Slide 5: Macro perspective on apartments
4 The most efficient and most effective way to allocate capital to multi-family real estate Macro perspective on apartments • Much about today’s business is familiar and predictable – Apartment demand > supply following the GFC – Builders responded… amplified by low debt costs… and now supply > dema
Slide 6: AIR positioned for attractive growth in 2024
5 The most efficient and most effective way to allocate capital to multi-family real estate AIR positioned for attractive growth in 2024 • Expected growth supported by (i) 2023 results, (ii) 2024 opportunities, (iii) levered by low offsite costs and a low risk, fixed-rate balance sheet Balance Sheet
Slide 7: Supply impacts in line with historical experience
6 The most efficient and most effective way to allocate capital to multi-family real estate Supply impacts in line with historical experience • Competitive new supply is familiar to AIR; historical experience of ~20-30% of NOI impacted by new supply • Supply and demand are highly local; analysis bel
Slide 8: Safe, highly liquid balance sheet
7 The most efficient and most effective way to allocate capital to multi-family real estate • $2.1B of liquidity (3x peer-average(1)) • No debt maturing until Q2 2025 – Weighted-average maturity of 6.9 years • Sufficient committed liquidity to repay all maturities through 2027 • Net Leverage to EBIT
Slide 9: Corporate responsibility highlights
8 The most efficient and most effective way to allocate capital to multi-family real estate Corporate responsibility highlights • AIR’s 2022-2023 Corporate Responsibility Report is posted to our corporate responsibility site Social GovernanceEnvironmental • Kingsley Elite Five winner – 2nd consecuti
Slide 10: Appendix
9 The most efficient and most effective way to allocate capital to multi-family real estate Brizo Durham, NC Appendix
Slide 11: AIR is focused on recurring and growing NOI and FCF, and FFO and AFFO
10 The most efficient and most effective way to allocate capital to multi-family real estate AIR is focused on recurring and growing NOI and FCF, and FFO and AFFO The AIR business model is distinctive: • AIR emphasizes customer selection with an emphasis on stability (measured by high FICO scores) t
Slide 12: AIR's distinctive business model provides for peer-leading results
11 The most efficient and most effective way to allocate capital to multi-family real estate AIR’s distinctive business model provides for peer-leading(1) results Same Store NOI Growth (%)(1)(2) Property EBITDA Growth (%)(1)(2)(3)Same Store Revenue Growth (%)(1)(2) 122.1 113.8 126.8 2019 2020 2021 2
Slide 13: Comparison of Same Store NOI and Property EBITDA margins
12 The most efficient and most effective way to allocate capital to multi-family real estate (1) Property EBITDA defined as Same Store NOI less Net Property Management and G&A Expense and divided by Same Store Revenue. This metric is tracked internally by AIR as a key measure of efficiency with resp
Slide 14: Turn costs and annual capital replacement in line with peers
13 The most efficient and most effective way to allocate capital to multi-family real estate Turn costs and annual capital replacement(1) in line with peers(2) • Expectation that recurring capital needs will continue to improve as paired trades reduce average age of AIR portfolio (1) Capital Replace
Slide 15: Programmatic property upgrades drive long-term value and FFO accretion
14 The most efficient and most effective way to allocate capital to multi-family real estate Programmatic property upgrades drive long-term value and FFO accretion • Invest only where expected NOI enhancement generates long-term IRR of > 10% (generally ~10% yield in Year 1) • Funded by retained earn
Slide 16: Additional commentary on supply
15 The most efficient and most effective way to allocate capital to multi-family real estate Additional commentary on supply • There is no “national” market for apartment supply and demand; rather, there are numerous submarkets and specific locations. The charts that follow show TTM permitting by me
Slide 17: Trailing 12-month permit activity
16 The most efficient and most effective way to allocate capital to multi-family real estate Trailing 12-month permit activity(1) (1) Reflects GSA 5+ permit data through October 2023. Trailing 12-month permits(1) MiamiLos AngelesFort Lauderdale DenverDC MetroBoston 0 200 400 600 800 1,000 1,200 1,40
Slide 18: Trailing 12-month permit activity (cont'd)
17 The most efficient and most effective way to allocate capital to multi-family real estate Trailing 12-month permit activity(1) (cont’d) (1) Reflects GSA 5+ permit data through October 2023. Orange County Philadelphia San JoseSan FranciscoSan Diego Raleigh Durham 0 200 400 600 800 1,000 1,200 1,40
Slide 19: Forward-Looking Statements / Non-GAAP Measures
18 The most efficient and most effective way to allocate capital to multi-family real estate Forward-Looking Statements / Non-GAAP Measures This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding pro
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