Adler Fall 2008 Operations Presentation Revised

History of Apartment Investment & Management Company (“Aimco”) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Gross Book Value of Real Estate Number of Aimco Employees

Background & Context – How Aimco Creates Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Customer Segment 1 Customer Segment 3 Customer Segment 2 Customer Segment 1 Customer Segment 2 Customer Segment 3 Market Selection Operational Excellence Capitalization Strategy Measuring Success - NAV Sell at Gain Redevelopment, Entitlement and Tax Credits Lease Up Acquire High Land Value Assets Operate and Incubate

Portfolio Overview Aimco owns a high quality portfolio that is well diversified by price point. Conventional Portfolio by Property Class as % of NAV Aimco Property Rent v. Market (4Q 2006) ‘ A’ Property: Average rent greater than 125% of REIS market average ‘ B’ Property: Average rent between 90-125% of REIS market average ‘ C’ Property: Average rent less than 90% of REIS market average Source: Market Rents provided by REIS, 2006. Used with permission from Reis.com

AIMCO Operations Philosophy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Aimco’s Conventional Strategy Roadmap Revenue Expense, Capital & Service Mgt Style/Design & Community Building Customer Information as Competitive Advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2004/5 2006/7 2007/8 2008/9 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Resident Quality is the Moral Imperative- Selection of Neighbors is the Unique function of a management company

The Market Description - 2004 2007 data indicates 30-40% of market

A Fragmented Market – the Aimco Target Bullseye ,[object Object],Tapestry Segments % Who Rent: Rentals (Fragmented Market) AIMCO Target Global Roots = 60-80% Solo Acts = 60-70% Upscale Avenues = 30-60% ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],30-40% of available market House Townhome Condo - Management Company Condo- Landlord Sublet 2-3 Flat Apartment Building with Professional Management Company

Consumer Housing Choices The components of strategy must enhance positives , while mitigating negatives as much as possible 30-40% of available market 60-70% of available market “ Perception” of uniqueness and personalization Professional Management Company Landlord Ownership Positive ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Negative ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Market Value Equation-2007 CUSTOMER PRIORITIES Rational Drivers Emotional Drivers Service Security Location Respect/Pride & Care Price Friendly Community/ Value System Amenities Updates

The Market Value Equation Consumers Priorities are Rational Drivers + Emotional Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Emotional Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Rational Drivers Fear/Risk: Consumers have fear/risk about Service and Security, these 2 drivers are the cost of entry (visual proof of guarantee needed) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Emotion: Pride & Care

To a Segmented Approach ,[object Object],[object Object],[object Object]

Improvement to Resident Quality ,[object Object],[object Object],[object Object],Aimco Average Physical Occupancy Results from Improving Resident Quality 2003 Current Annualized Skip/Eviction % 9-10% 6-7% Accounts Receivable > 12.0% < 2.5% Bad Debt 3.0% < 1.0%

Operational Excellence ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2006/7 Accomplishments 2008 Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],43% of leases from web >50% growth in web demand 23% of apps on line and growing On-line leasing live in Atl/Orl

How Customers Search ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Efficiencies from Scalability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Goal is to eliminate the back office from Aimco’s leasing centers Timeline for Move to Off-Site Responsibility 2005 2005 2005 2005 2006 2006 2007 2007 payment, service in place Transaction Category Incoming leasing calls Incoming leasing e-mails Outbound Appointment Confirmation Utility Bill payments Electronic procurement Electronic revenue management Electronic Lease documentation Centralized accounts payable Web Customer Self-Service

Utilization of Technological Systems ,[object Object],[object Object],[object Object],[object Object],Aimco has strategically invested in technological systems which have SIGNIFICANTLY IMPROVED operating efficiency

Highest Emphasis Placed on Customer Experience ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Customer Experience Measurement Metric 2005 2006 2007 2008 Net Promoter Score 18% 18% 31% 38% Office Courtesy 90% 90% 93% 94% Maintenance Overall Rating 82% 86% 90% Customer Average Duration (months) 16 17 17 19 Willingness to Renew 70% 75% 75% 93% Move-in Defect Rate 14% 8% 11% 11% Unit Turn Cycle Time 34 days 15 days 15 15 Unit Availability 40% 90% >90% >90%

The Team Member Experience – Extending the Operating Platform ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Employees are at the Heart of Quality Customer Service ,[object Object],[object Object],[object Object],[object Object],Indicator 2005 2007 Increase Engagement Job Satisfaction, Retention, Recommending Aimco as a place to work 57% 65% 8% On the Job Training, Role Clarity, Information, Resources, Using Skills & Abilities 81% 88% 7% Work Life 57% 78% 21% Compensation (Pay & Benefits) 57% 67% 10% ,[object Object],[object Object],66% 75% 9% Values (Believe In) 97% 99% 2%

Customer Service Improved Through Training Model ,[object Object],[object Object],[object Object],[object Object],Move-in Net Promoter Score Office Courtesy Scores

Team Member Experience- CM Training Results (at 120 days post hire vs. prior year) Measure Rating Comments 1 Sales Effectiveness Strong improvement New CM sales performance- 10.7% point increase 3.2% improvement vs. month average 2 Office Courtesy Improvement Office Courtesy scores 10.5% improvement to above 93% 3 Employee Retention Strong Improvement Employee turnover improvement +30% vs. baseline 4 FSG Tickets Strong Improvement Reductions of FOCUS tickets vs. benchmark improvement of 2.9 tickets per 100 units

Results of the Operating Improvements Aimco versus REIS Occupancy & Rent Source: REIS. Used with permission from Reis.com The operating improvements are further evidenced through above-market rents and occupancies.

Adler Fall 2008 Operations Presentation Revised

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