Aimco Files Preliminary Proxy Statement
Aimco (NYSE: AIV) has filed preliminary proxy materials with the SEC for its 2022 Annual Meeting of Stockholders. The company has undergone a significant transformation since the December 2020 spin-off of Apartment Income REIT Corp, appointing a new majority-independent Board of Directors and executive management team. Aimco reports a total stockholder return of 56% since the spin-off, outperforming major indices. The company recommends its nominees for director amid competing nominations from Land & Buildings Investment Management, asserting its current board is well-equipped to drive future growth.
- Total stockholder returns of 56% since December 2020 spin-off.
- Addition of six independent directors in the last 21 months.
- Creation of $100 million in value from successful development projects.
- Tripled controlled pipeline to over 15 million square feet.
- Retired or refinanced over $1 billion in near-term liabilities.
- Strategic partnership with Alaska Permanent Fund for up to $1 billion in projects.
- Sold assets generating a 50% internal rate of return.
- Competing director nominations could disrupt momentum.
Company Executing Clearly Defined Strategy Under New Board and Leadership Team
Highlights Strong
Recommends FOR all three Company nominees for director
Aimco has undergone a comprehensive transformation following the
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Aimco’s new post-spin majority-independent and reconstituted Board of Directors (the “New Aimco Board”) was appointed following the closing of the
December 2020 spin-off of AIR, whereby two-thirds of the pre-spin-off Board resigned and was replaced following a thorough search process assisted by a leading executive and board search firm. - Aimco has appointed six of its eight independent directors within the past 21 months, adding a fresh perspective with relevant skills in the areas of real estate finance, capital markets, development and transactions, business operations and board leadership, while retaining three directors with complementary skillsets and important historical knowledge of Aimco’s business operations.
- Aimco also appointed an all-new executive management team following the spin-off, comprising experienced real estate executives with fresh perspectives as well as a deep understanding of the industry, Aimco and its assets.
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Aimco developed and communicated a new strategy for growth, focused on value-add, opportunistic and alternative investments, targeting the
U.S. multifamily sector.
The New Aimco Board and leadership team have delivered significant stockholder value during their short tenure
Since the
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Creating
of value from the monetization of successfully executed development and redevelopment projects;$100 million - Securing significant, high-quality, future development opportunities, more than tripling Aimco's controlled pipeline to a total potential of more than 15 million square feet, located in high-growth markets;
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Retiring or refinancing more than
of near-term liabilities, eliminating substantially all of its floating rate exposure;$1 billion -
Entering into a strategic capital partnership with
Alaska Permanent Fund Corporation providing core equity capital for up to of Aimco-led multifamily development projects and creating the opportunity to earn third-party management fees and incentive income;$1 billion -
Unlocking
of asset value by selling three stabilized multifamily assets at prices above the values in Aimco’s internal Net Asset Value estimate and by selling a partial interest in our passive minority investment in the life science developer, IQHQ, generating a greater than$265 million 50% internal rate of return; -
Eliminating various legacy entanglements with AIR through the early repayment of the
purchase money note, the reduction of leasehold liabilities from$534 million down to$475.1 million , and the amendment of key provisions of the master leasing agreement with AIR;$6.1 million -
Acquiring approximately 742,164 Aimco shares at a weighted average price of
per share and increasing the Company’s share repurchase authorization from 10 million to 15 million shares; and$5.93 - Building and maintaining a highly qualified and dedicated team of real estate investment professionals, achieving an all-time Company record employee engagement score of 4.52, out of 5, based on independent third-party surveys.
Notwithstanding Aimco’s superior results and the appointment of the New Aimco Board, Aimco stockholder Land & Buildings has provided a notice of competing director nominations
In the preliminary proxy statement filed today, Aimco disclosed that
The New Aimco Board is comprised of highly skilled, diverse and dedicated directors who have deep experience and a diversity of viewpoints and are unwavering in their commitment to enhance value for all stockholders.
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1 TSR calculation as of
About Aimco
Aimco is a diversified real estate company primarily focused on value add, opportunistic, and alternative investments, targeting the
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 2022 preliminary plans and goals may not be completed in a timely manner or at all, (ii) the inability to recognize the anticipated benefits of the pipeline investments and projects, and (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
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
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.
Important Additional Information and Where to Find It
The Company has filed a preliminary proxy statement with the
Participants in the Solicitation
The Company, its directors and certain of its executive officers and other employees may be deemed to be participants in the solicitation of proxies from stockholders in connection with the Solicitation. Additional information regarding the identity of these potential participants, none of whom, other than
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Sr. Director, Capital Markets and Investor Relations
(303) 793-4661
investor@aimco.com
212-929-5748
Dburch@mackenziepartners.com
(212) 355-4449
Source:
FAQ
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