Le Lézard
Classified in: Covid-19 virus
Subjects: Proxy/Proxy Vote, Statement

Aimco Files Investor Presentation Highlighting Successful Execution of Value-Add Strategy Under Leadership of New Board of Directors and Management Team


Apartment Investment and Management Company (NYSE: AIV) ("Aimco" or the "Company"), today filed an investor presentation with the U.S. Securities and Exchange Commission in connection with its 2022 Annual Meeting of Stockholders ("Annual Meeting"), which is scheduled to be held on December 16, 2022. The presentation is available on the investor relations section of the Company's website.

The Company issued the following statement:

Over the past two years, Aimco has put in place a new, reconstituted Board of Directors with individuals who have the right skills and expertise to lead the Company forward. Alongside an all-new executive management team, the Board has overseen the development and successful execution of Aimco's clearly defined value creation strategy following the spin-off of Apartment Income REIT Corp. ("AIR") in December 2020.

As a result, during this time Aimco has delivered outstanding total stockholder returns of 45%1, significantly outperforming Aimco's custom developer proxy peer group2, the FTSE NAREIT Equity Apartments Index, the MSCI US REIT Index, the S&P 500 Index and the Russell 2000 Index.

In addition, over the past 13 months the Company has met with stockholders representing more than 80% of Aimco's outstanding shares of common stock. Following these discussions, the Company has implemented several governance enhancements that demonstrate Aimco's commitment to stockholder engagement and value creation. The New Aimco Board is also overseeing the evaluation of a broad range of options to enhance stockholder value. The Board is responsive to the feedback of stockholders and is committed to leaving no stone unturned.

Aimco believes the claims made by Land & Buildings are largely baseless and about the predecessor company with an entirely different leadership team and a substantially different board. The New Aimco Board reviewed the candidates proposed by Land & Buildings and determined they would not bring any relevant expertise that is not already well represented on the New Aimco Board and that election of Land & Buildings' candidates would remove expertise from the New Aimco Board that is critical to the Company's success.

Highlights of the presentation include:

PROTECT THE VALUE OF YOUR INVESTMENT AND AIMCO'S FUTURE GROWTH PROSPECTS.
USE THE UNIVERSAL WHITE PROXY CARD TODAY TO VOTE FOR ALL THREE
OF AIMCO'S QUALIFIED AND EXPERIENCED DIRECTORS

If you have questions or require any assistance with voting your shares,
please contact the Company's proxy solicitor listed below:

MacKenzie
Partners, Inc.

1407 Broadway, 27th Floor
New York, New York 10018
Call Collect: (212) 929-5500
or
Toll-Free (800) 322-2885
Email: [email protected]

_________________________

1 Spin date as of December 14, 2020; TSR calculation as of October 31, 2022
2 Includes AHH, CLPR, CSR, ELME, FOR, FPH, HHC, IRT, JBGS, JOE, STRS, TRC, and VRE (per AIV 2021 10-K); represents simple average
3 $469 million relief of leasehold obligation and $65 million direct capital
4 Gross transaction price includes $469 million relief of leasehold obligation and $200 million net cash proceeds
5 Spin date as of December 14, 2020; TSR calculation as of October 31, 2022
6 Includes AHH, CLPR, CSR, ELME, FOR, FPH, HHC, IRT, JBGS, JOE, STRS, TRC, and VRE (per AIV 2021 10-K); represents simple average
7 Per nomination supplement provided to Aimco on November 1, 2022

Glossary and Reconciliations of Non-GAAP Financial and Operating Measures

This document includes certain financial and operating measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP Aimco's definitions and calculations of these Non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These Non-GAAP financial and operating measures should not be considered an alternative to GAAP net income or any other GAAP measurement of performance and should not be considered an alternative measure of liquidity.

NET OPERATING INCOME (NOI) MARGIN: Represents an apartment community's net operating income as a percentage of the apartment community's rental and other property revenues.

PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes NOI does not include property management revenues, primarily from affiliates casualties property management expenses depreciation or interest expense NOI is helpful because it helps both investors and management to understand the operating performance of real estate excluding costs associated with decisions about acquisition pricing, overhead allocations, and financing arrangements NOI is also considered by many in the real estate industry to be a useful measure for determining the value of real estate Reconciliations of NOI as presented in this report to Aimco's consolidated GAAP amounts are provided below.

STABILIZED OPERATING PROPERTIES Apartment communities that (a.) are owned and asset managed by Aimco, Aimco,(b.) had reached a stabilized level of operations as of January 1 2021 and maintained it throughout the current and the comparable prior periods, and (c.) are not expected to be sold within 12 months.

VALUE CREATION, NET OF COSTS: Value Creation, net of costs is defined by Aimco, in particular, as it relates to the termination of leases with AIR, as the lease termination payment less development and financing costs, net of operating revenues and expenses during the leasehold period.

Due to the diversity of its economic ownership interests in its apartment communities in the periods presented, Aimco evaluates the performance of the apartment communities in its segments using Property NOI, which represents the NOI for the apartment communities that Aimco consolidates and excludes apartment communities that it does not consolidate. Property NOI is defined as rental and other property revenue less property operating expenses. In its evaluation of community results, Aimco excludes utility cost reimbursement from rental and other property revenues and reflects such amount as a reduction of the related utility expense within property operating expenses. The following table presents the reconciliation of GAAP rental and other property revenue to the revenues before utility reimbursements and GAAP property operating expenses to expenses, net of utility reimbursements as presented on Supplemental Schedule 6 of Aimco's Third Quarter 2022 Earnings Release and Supplemental Schedules.

Segment NOI Reconciliation

Three Months Ended (in thousands)

September 30, 2022

September 30, 2021

Total Real Estate Operations

Revenues,
Before Utility
Reimbursements [1]

Expenses,
Net of Utility
Reimbursements

Revenues,
Before Utility
Reimbursements [1]

Expenses,
Net of Utility
Reimbursements

 

Total (per consolidated statements of operations)

 

$

 

47,683

$

17,455

 

$

42,893

$

18,155

 

 

Adjustment: Utilities reimbursement

 

(1,318

)

 

(1,318

)

 

(1,246

)

 

(1,246

)

 

Adjustment: Other Real Estate

 

(4,263

)

 

1,286

 

 

(3,472

)

 

1,136

 

 

Adjustment: Non-stabilized and other amounts not allocated [2]

 

(7,428

)

 

(7,213

)

 

(7,066

)

 

(7,759

)

 

Total Stabilized Operating (per Schedule 6)

$

34,674

 

$

10,210

 

$

31,110

 

$

10,287

 

[1] Approximately two-thirds of Aimco's utility costs are reimbursed by residents. These reimbursements are included in rental and other property revenues on Aimco's consolidated statements of operations prepared in accordance with GAAP. This adjustment represents the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results and as presented on Supplemental Schedule 6. Aimco also excludes the reimbursement amounts from the calculation of Average Revenue per Apartment Home throughout this Earnings Release and Supplemental Schedules.

[2] Properties not included in the Stabilized Operating Portfolio and other amounts not allocated includes operating results of properties not presented in the Stabilized Operation Portfolio as presented on Supplemental Schedule 6 during the periods shown, as well as property management and casualty expense, which are not included in property operating expenses, net of utility reimbursements in the Supplemental Schedule 6 presentation.

About Aimco

Aimco is a diversified real estate company primarily focused on value add, opportunistic, and alternative investments, targeting the U.S. multifamily sector. Aimco's mission is to make real estate investments where outcomes are enhanced through its human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV. For more information about Aimco, please visit its website www.aimco.com.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to, the statements in this document regarding future financing plans, including the Company's expected leverage and capital structure; business strategies, prospects, and projected operating and financial results (including earnings), including facts related thereto, such as expected costs; future share repurchases; expected investment opportunities; and our 2022 pipeline investments and projects. We caution investors not to place undue reliance on any such forward-looking statements.

Words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "believe(s)," "plan(s)," "may," "will," "would," "could," "should," "seek(s)," "forecast(s)," and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are not guarantees of future performance, condition or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, among others, that may affect actual results or outcomes include, but are not limited to: (i) the risk that the 2023 preliminary plans and goals may not be completed in a timely manner or at all, (ii) the inability to recognize the anticipated benefits of pipeline investments and projects, (iii) changes in general economic conditions, including as a result of the COVID-19 pandemic. Although we believe that the assumptions underlying the forward-looking statements, which are based on management's expectations and estimates, are reasonable, we can give no assurance that our expectations will be attained.

Risks and uncertainties that could cause actual results to differ materially from our expectations include, but are not limited to: the effects of the coronavirus pandemic on the Company's business and on the global and U.S. economies generally; real estate and operating risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the amount, location and quality of competitive new housing supply; the timing and effects of acquisitions, dispositions, redevelopments and developments; changes in operating costs, including energy costs; negative economic conditions in our geographies of operation; loss of key personnel; the Company's ability to maintain current or meet projected occupancy, rental rate and property operating results; the Company's ability to meet budgeted costs and timelines, and, if applicable, achieve budgeted rental rates related to redevelopment and development investments; expectations regarding sales of apartment communities and the use of proceeds thereof; insurance risks, including the cost of insurance, and natural disasters and severe weather such as hurricanes; financing risks, including the availability and cost of financing; the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; the risk that earnings may not be sufficient to maintain compliance with debt covenants, including financial coverage ratios; legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of laws and governmental regulations that affect us and interpretations of those laws and regulations; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently or previously owned by the Company; activities by stockholder activists, including a proxy contest; the risk of the timing of our stockholder value enhancement review and the risk that we will not identify any value enhancing options or that we will not successfully execute or achieve the potential benefits of any such options.

In addition, the Company's current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code and depends on the Company's ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership. Readers should carefully review the Company's financial statements and the notes thereto, as well as the section entitled "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and in Item 1A of the Company's Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2022, June 30, 2022, and September 30, 2022, and the other documents the Company files from time to time with the SEC. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.

These forward-looking statements reflect management's judgment as of this date, and the Company assumes no (and disclaims any) obligation to revise or update them to reflect future events or circumstances.

We make no representations or warranties as to the accuracy of any projections, estimates, targets, statements or information contained in this document. It is understood and agreed that any such projections, estimates, targets, statements and information are not to be viewed as facts and are subject to significant business, financial, economic, operating, competitive and other risks, uncertainties and contingencies many of which are beyond our control, that no assurance can be given that any particular financial projections or targets will be realized, that actual results may differ from projected results and that such differences may be material. While all financial projections, estimates and targets are necessarily speculative, we believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this presentation should not be regarded as an indication that we or our representatives, considered or consider the financial projections, estimates and targets to be a reliable prediction of future events.


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News published on 21 november 2022 at 07:00 and distributed by: