| What We Expect How We Plan to Get There Operations A Solid Year Ahead Conventional Same-Store NOI ? 5.25% - 7.25% Affordable Same-Store NOI ? 0.0% - 1.0% Total Same-Store NOI
? 4.5% - 6.25% Revenue ? 4.5% - 5.5%: 2.1% "in the bank" from 2011 and 5.0%+ increase in 2012 lease rates Expenses ? 2.5% - 3.0% due to increases in real estate taxes & insurance; operating expenses flat Portfolio Better Than Ever Conventional
rents ? ~10% to $1,260 from $1,143 today Affordable portfolio < 10% of NAV Conventional NOI margin ? ~1.5% to ~64% Conventional Free Cash Flow margin (1) ? ~3% to ~58% Dispositions $550 - $650M Sell 25+ Conventional properties with average
rents < $700 Sell 60+ Affordable properties with average ownership of 41% Acquisitions $200M+ with $160M in partnerships Redevelopment Full Speed Ahead Conventional redevelopment $125 - $150M Robust pipeline; 5% - 6% of NAV under redevelopment
at one time Eight projects underway in 2012; four in coastal California and four others in Seattle, Chicago and Philadelphia; ~$400M multi-year investment Three vacant properties; ~1,200 units returned to service over next two years; target rents
> $2,400 Current returns on un-trended rents > 7%, Free Cash Flow IRRs > 10% Balance Sheet Lower Leverage EBITDA:Interest 2.5:1 (2) EBITDA:Interest & Preferred Dividends 2.0:1 (2) Debt:EBITDA 7.5x (2) Debt &
Preferreds:EBITDA 9x (2) Continue to be non-recourse, long-term, fixed rate borrower Increasing property income Property debt amortization $83M or ~2% of debt Refinance maturing debt of $118M or ~2.5% of debt Opportunistic redemption of high cost
preferreds Business Simpler Average ownership in Conventional properties ? to 96% Sale of third-party asset management business; ~$0.01 per share of 2011 and 2012 FFO Average ownership in Affordable properties ? to 74% Tender or merge 11
partnerships with 19 properties; 7 public partnerships with average annual administration costs of ~$1M Earn-in of technology initiatives, scale reductions and efficiency gains Earnings & Dividend Moving Up FFO of $1.72 - $1.82 per share ? 8%
AFFO of $1.17 - $1.29 per share ? 21% Dividend ? 50% to $0.72 per share per year; ~60% AFFO payout Stick to the plan Aimco 2012 Plan |
