EX-99.1 2 d407758dex991.htm EX-99.1 EX-99.1

Exhibit 99.1 The most efficient and most effective way to allocate capital to multi-family real estate The District at Flagler Village Investor Presentation Fort Lauderdale, FL November 2022 0


The most efficient and most effective way to allocate capital to multi-family real estate Key Takeaways 1 2 AIR’s portfolio is high-quality with an affluent AIR’s simple, efficient business model, driven by resident base; emphasis on customer the AIR Edge, provides a considerable and satisfaction ensures high rates of retention durable advantage - Portfolio enhanced through ~$5.4 billion of capital - Strong organic Same Store growth, in combination with recycling since Q4 2020; average revenue per low G&A, results in ~9% higher conversion of rent to (1) apartment home has increased 19% in that time FCF than peer average , a durable advantage - Highly affluent residents with average and median - AIR Edge provides opportunity for excess returns household income of $251,000 and $170,000, through disciplined, accretive paired trades respectively, in Q3 2022 3 4 AIR’s prospects for 2023 are excellent Clear, transparent capital allocation framework - ~5% earn-in for 2023 projected from 2022 leasing - Paired trades ensure accretive, profitable growth based on the current cost of capital - Well positioned to address risks presented by inflation, possible recession, and high interest rates - Opportunity set for new capital includes new acquisitions, capital enhancements, and further share - Simplicity of AIR allows for 2023 to be underwritten, repurchases allowing for perspectives on key economic factors 1 (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA.


The most efficient and most effective way to allocate capital to multi-family real estate Additional Q3 2022 Highlights High-quality portfolio (1) • GAV (A / B) = 52% / 48% • Retention (A / B): 60.2% / 62.7% • ~$5.4 billion of capital recycled in highly favorable markets of the last 24 months • Rent-to-Income (A / B): 17.2% / 18.9% Aimco Peer Average / (1) (Q4 2019 or 2019A) (Q3 2022 or 2022E) Change Observation Average Household Income ($) $165,000 $251,000 +52% <$150,000 in Q3 2022 P Median Household Income ($) $116,000 $170,000 +47% n/a (2) Retention (%) 56.8% 61.5% +470 bps ~53-60% P CSAT Score (out of 5) 4.30 4.33 (2021) +0.03 n/a Kingsley Index 4.09 4.05 -0.04 n/a Note: AIR named Kingsley Elite Five in 2022, #2 among all operators and #1 for public REITs # Properties 124 80 -35% ~250 # Apartment Homes 32,598 23,499 -28% ~75,000 (3) Average Revenue per Apartment Home $2,272 $2,711 +19% $2,433 P (4) (Re-)Development ($M) $230 $- -$230M ~4% of TEV (4) Mezzanine Investments ($M) $280 $- -$280M ~1% of TEV (5) 2022E Same Store Revenue Growth (%) 3.8% 10.3% +650 bps 11.4% (5) 2022E Same Store NOI Growth (%) 4.3% 13.9% +960 bps 14.6% (5) Estimated 2022E Same Store NOI Margin (%) 73.7% 74.5% +8 bps 68.2% P G&A as % of Assets (GSA) 36 bps 21 bps -15 bps 25 bps Net G&A as % of GAV AIR Cap: <15 bps No commitment P Corporate Governance Score (GSA) 36 68 +32 pts 57 P Net Leverage / EBITDA (x) 7.6x 5.9x -1.7x 4.9x Refunding: Through 2024 (% Total Debt) 23% -% (2022E) -23% 17% P Weighted Average Maturity (Yrs) 7.3 6.4 -0.9 7.6 Repricing: Through 2024 (% Total Debt) 23% 3% (2022E) -20% n/a Unencumbered Properties ($B) $2.4 $8.3 $5.9 n/a (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA. (2) Retention reflects 2021 for AVB, CPT, EQR, and UDR as TTM data not provided. ESS reflects the average retention in the prior four quarters. (3) Reflects average monthly rental revenue for EQR, ESS, and MAA. (4) (Re-)development for peers at total cost. Mezzanine Investments includes all commitments. TEV as of 11/11/2022. 2 (5) Based on peer guidance. Estimated 2022E Same Store NOI Margin reflects revenue and NOI guidance as applied to Same Store Revenue in Same Store NOI for 2021. Balance Sheet Efficiency Portfolio Residents


The most efficient and most effective way to allocate capital to multi-family real estate The AIR Edge drives attractive organic growth, and conversion of rents… Simple, efficient, and predictable business model (1) (+) Revenue • Emphasis on “good neighbor” policies (-) Operating • Peer-leading COE track record promotes relationship building among Expense The AIR Edge is the • Additional efficiency through G&A cap residents, community stability, and cumulative result of our positive network effects… leading to focus on resident • As a result, ~9% more Same Store (2) retention of high-quality, affluent Revenue converted to FCF selection, satisfaction, and residents retention, as well as – Durable advantage in growth created relentless innovation in • Diversification supports stable growth by the AIR Edge compounds over delivering best-in-class over cycles time property management AIR’s business continues to perform; • external growth demonstrates value of the AIR Edge (1) (2) Same Store Revenue Growth (%) Free Cash Flow Conversion (%) 431 bps outperformance relative to ~9% higher rents required from peers to equal Coastal peers with 2019 as an index AIR’s Free Cash Flow Conversion % 120.0 65.9% 64.7% 60.5% 109.4 59.0% 105.1 2019 2020 2021 2022 2021 Q3 YTD 2021 Q3 YTD Midpoint (1) AIR Coastal Sunbelt Peer Average Guidance (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA. (2) Reflects Q3 2022 YTD, 2021, and 2020 financials as reported in company filings. Free Cash Flow Conversion % defined as Same Store NOI less Net Property Management and G&A Expense, and 3 divided by Same Store Revenue. Please see appendix for additional detail.


The most efficient and most effective way to allocate capital to multi-family real estate …while providing the opportunity for accretive growth (1) (+) Disciplined • Class of 2021 acquisitions now represent ~8% of YTD Change In Transacted Lease Rates (%) External Growth AIR’s portfolio by GAV, and is growing at ~2x the rate ~8% expected earn-in in 2023 from 2022 leases in the Class of 2021 Opportunity of the Same Store compares to ~5% in Same Store (1) • Class of 2022 and 2023 increase the percentage allocation to ~17% 26.2% 25.2% 24.3% AIR targets ~30% of portfolio in properties new to • 17.5% the AIR platform with NOI growth at ~2-3x market levels in Years 2-4 under AIR’s ownership 14.0% 11.0% – Key assumption: AIR’s ability to source new properties with excess return potential as Classes revert to market after Year 4 New Renewal Blended Share Repurchase Update (3) Class of 2021 AIR Same Store • $302 million shares repurchased over the year-to-date at an average price per share of $39.77 – Represents unlevered IRR of >10% • ~18% of capital deployed in 2021 and 2022 into repurchases – Expect to maintain balanced allocation with incremental capital, assuming hurdles are satisfied th (1) Class of 2021 acquisitions defined as City Center on 7 , North Park, Huntington Gateway, Vaughan Place, and Residences at Capital Crescent Trail. Class of 2022 acquisitions defined as the Reserve at 4 Coconut Point, Watermarc at Biscayne Bay, Willard Towers, and The District at Flagler Village. Class of 2023 acquisitions defined as Southgate Towers.


The most efficient and most effective way to allocate capital to multi-family real estate Highly accretive capital deployment in 2022 within AIR’s clear paired trade framework • Cost of capital informed by $780 million of dispositions year-to-date at long-term expected IRRs of <7% (1) (1) Class of 2022 amounts to $640 million of GAV Class of 2021 performing ahead of expectations • Underwritten at IRRs >9% • Q4 22 revenue growth projected 50% higher than Same Store • Expected NOI growth of >35% from Year 1 though Year 3 with deployment of the AIR Edge • ~8% 2023 earn-in compares to ~5% in Same Store Willard Towers Watermarc at Biscayne Bay • Purchase price: $185M • Purchase price: $210M • 525-unit property with large floor plans, 10’+ ceiling • Newly developed 296 apartment community heights and large windows – Located in Miami, FL – Located in Chevy Chase, MD where AIR owns two other – Situated in the Edgewater neighborhood of Miami with properties proximity to premier entertainment, cultural, and – Significant upside potential from physical value add employment attractions of Miami-Dade County improvements – Proximity to Bay Parc additionally benefits AIR The District at Flagler Village The Reserve at Coconut Point • Purchase price: $173M • Purchase price: $72M • Newly developed 350 apartment home community • Newly developed 180 apartment community – Located in Fort Lauderdale, FL – Located in Estero, FL – Part of the affluent and growing Flagler Village – Submarket between Naples and Fort Myers that is part neighborhood with access to the Brightline train station of a 500-acre master planned community – Adjacent to empty Sears box owned by Aimco with – Short walk to Hertz’ corporate HQ plans for major mixed use redevelopment th (1) Class of 2021 acquisitions defined as City Center on 7 , North Park, Huntington Gateway, Vaughan Place, and Residences at Capital Crescent Trail. Class of 2022 acquisitions defined as the Reserve at 5 Coconut Point, Watermarc at Biscayne Bay, Willard Towers, and The District at Flagler Village. Class of 2023 acquisitions defined as Southgate Towers.


The most efficient and most effective way to allocate capital to multi-family real estate AIR perspective on macroeconomic factors • 2022 has shown the ability of apartment owners (including AIR) to reprice rents in a high inflationary environment • AIR’s focus on efficiency expected to maintain stability in expenses – Expect flat controllable operating expenses in 2022 – Track record of negative 10 bps annual growth in controllable operating expenses over 13-years – Commitment to net G&A expense at <15 bps of GAV (~18 bps based on AUM) • Relative outperformance expected for apartment owners, and AIR in particular should inflation remain “higher for longer” • AIR’s high-quality, diversified portfolio, and high credit resident base are well GFC positioned should recession impact the US economy AIR Coastal Avg. (1) Sunbelt Avg. (1) Year SSRev SSNOI SSRev SSNOI SSRev SSNOI – Average and median household income of $251,000 and $170,000, respectively 2008 2.1% 3.5% 3.6% 4.1% 1.8% 0.3% – Rent to income ratio of 17% in the “A” portfolio (52% of GAV) and 19% in “B” 2009 -2.5% -4.2% -2.9% -4.7% -2.2% -3.8% 2010 -0.2% 0.2% -1.3% -2.5% -1.3% -2.4% – Resident FICO scores average 90 points higher than the national renter average 2011 2.8% 5.3% 4.5% 6.8% 4.8% 6.0% – “B” portfolio positioned to attract price sensitive residents Pandemic • Experience of the Great Financial Crisis (“GFC”) and pandemic may be instructive AIR Coastal Avg. (1) Sunbelt Avg. (1) – Bad debt increased 50 bps before reverting to then long-term trend of 60 bps in Year SSRev SSNOI SSRev SSNOI SSRev SSNOI 17 months 2019 3.8% 4.3% 3.3% 3.5% 3.6% 4.3% 2020 -2.4% -4.0% -3.0% -5.5% 1.8% 0.4% – Now returning to a new normal of <50 bps outside CA, and expected inside CA 2021 1.7% 1.6% -2.4% -4.8% 4.9% 5.5% subject to sunset of eviction moratoria and timing of eviction proceedings 2022E 10.3% 13.9% 11.0% 14.0% 12.4% 15.9% • ~5% earn-in from leases in 2022 as a baseline for 2023 Same Store Revenue growth • Exposure to Federal Reserve policies, and their broad market impact, mitigated through low leverage • AIR has limited refunding and repricing risk with no maturities before 2025 • Floating rate exposure measured at 3% of total leverage; primarily line of credit borrowings that average ~$225 million 6 (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA. Interest Possible Inflation Rates Recession


The most efficient and most effective way to allocate capital to multi-family real estate Looking forward to 2023 • A starting point for 2023 is $2.19 Pro forma Run Rate FFO per share, which adjusts for the prepayment of Aimco transactions identified in our Q1 2022 earnings release; 2023 expectations will begin with this number, and incorporate subsequent transactions as well as, importantly, expectations of economic conditions for 2023; the information below is provided to assist investors who have conviction as to 2023 macro- economic circumstances, and formal guidance will be provided in our Q4 2022 earnings release Inflation Recession Interest Rates • Forecasts for CPI over 2022-2026 generally average 3.9% (8.1% in 2022, 4.4% in • Reasonable to expect declining rents • Subject to broad economic impact on Market rents over time 2023, and reverting to 2.3% from 2024-2026) which may be understated given key employers within specific • Pandemic: AIR’s new lease rates typically track CPI; high employment and high liquidity that characterize the US economy; annual CPI submarkets declined ~6.4% in 2020 (2.0% decline changes in market rents increases during the Great Inflation, by example, peaked at 11.8% in 1981, in blended); occ’y declined 150 bps earn into rental revenue declined to 8.3% in 1982, and then averaged 3.9% from 1983-1986 • GFC: Similar rent decline and 90 bps over the related lease • If forecasts prove correct that inflation (i) has peaked in 2022 and (ii) will be 4.4% of occ’y impact terms, typically 12 in 2023, then market rents might rise by an equal amount, with market rent growth months increasing ±6% Earn-In • ~5% from 2022 leasing activities ~ ~ ~ ~5% at year-end, contributing ~1-2% to • Loss-to-Lease ÇÈ ~ 2023 growth Market Rent Growth • ±1% equates to ~40 bps to 2023 growth ÇÈ ~ / È Same Store Revenue ADO • Consistent YoY ~È ~ Class of 2021 • Expected at ~2-3x rate of Same Store Ç ~ / ÇÇ Low Double-Digits Low/Mid Single Digits Mid/High Single Digits Total (assuming ~9% CPI) (declining rents; -150 bps occ’y) (assuming ~4% CPI) Controllable • ~2%± 100 bps; 13-year track record of ~ / Ç ~ / È ~ negative 10 bps annual growth Operating Expense • ~7%±; ~40% GAV subject to 2% cap in CA; remaining ~60% at trailing NOI Real Estate Taxes Same Store ~ ~ / È ~ growth with lag for timing of revaluations Operating Expense Insurance • ~25%± ~ ~ ~ • ~3%±; ~75% of utility expenses Utilities, Net ~ / Ç ~ / È ~ reimbursed by residents Class of 2022/2023, • Contribution from 2022 / 2023 acquisitions offset by cost of capital Other Transactions, ~ ~ ~ and de-leveraging & Deleveraging G&A Expense • Committed to low G&A at <15 bps of GAV (or ~18 bps of AUM) ~ ~ ~ • Maintain leverage at ~5-6x with 97% of debt at fixed interest rates Interest Expense • Key variable at SOFR + 110 bps on LoC borrowings (averaging ~$225 ~ ~ ~ million annual balance historically) 7


The most efficient and most effective way to allocate capital to multi-family real estate Prism Apartments Appendix Cambridge, MA 8


The Fremont Residences A Investment Case for AIR Aurora, CO


The most efficient and most effective way to allocate capital to multi-family real estate What makes AIR a compelling investment? • High-quality, stabilized multi-family portfolio with focus on the same for external growth; no development Simple, predictable • Emphasis on productivity: (i) the AIR Edge and (ii) G&A at less than 15 bps of GAV drive higher FCF conversion 1 business model • Low debt • Diversified by geography, location (urban vs. suburban), and price point, in high-quality markets where Diversification, focus, demand generates continued organic growth and strategy merit 2 • Focus on stable communities with great residents produces high retention, and revenue stability a low risk premium • Attractive growth profile with limited operating and financial risk (1) • Peer-leading track record of cost control with (i) flat onsite controllable operating expenses and (ii) G&A at Market leading AIR less than 15 bps of GAV Edge operating platform 3 • Durable advantage through (i) NOI margin performance and (ii) conversion of Same Store Revenue to FCF at drives earnings growth (1) ~9% higher than the peer average compounds over time • Substantial spread (~200 bps+) over our weighted average cost of capital (“WACC”) required for investments – Recent investments underwritten at ~8-11% unlevered IRRs which compare to 2021 and 2022 property Disciplined capital sales at expected IRRs of <7% allocation enhances 4 • Access to the full spectrum of debt and equity capital, both public and private, for broadest choice with FFO growth respect to the lowest WACC – Anticipate funding near-term growth through property sales and/or JVs given current trading levels Exceptional governance • Refreshed Board with diverse and relevant expertise; elected annually; average tenure of ~4 years and fully aligned 5 • “At risk” compensation, primarily tied to TSR, aligns CEO and Management in driving value for shareholders Management • Attractive absolute and relative valuation Attractive valuation • A $100 investment in AIR by a taxable investor today would yield $2.88 on a post-tax basis, or $0.81 (+39%) 6 (1)(2) more than peer average (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA. (2) AIR’s dividend in 2021 was ~67% return of capital and ~33% capital gain. Peers averaged ~62% ordinary income and ~28% capital gain. Analysis assumes a 40 / 60 split between ordinary income and capital gains for AIR, and 60 / 40 split for peers. Assumed tax rates: (i) federal ordinary income of 37% (29.6% for qualified 199A income), (ii) federal LTCG of 20%, and (iii) federal 1250 recapture of 25%. 10 A 3.8% Net Investment Income Tax and illustrative 6.65% state tax is added to each respective federal rate.


The most efficient and most effective way to allocate capital to multi-family real estate 1 Simple, predictable business model… Focus on high-quality, stabilized multi-family properties Eight core, high-quality US markets (1) Organic growth through peer-leading operating efficiency of our AIR Edge Cash flow conversion enhanced by net G&A cap at less than 15 bps of GAV Low leverage No development Clearly articulated view of cost of capital and required returns for external growth Target dividend payout ratio at ~75% of FFO 11 (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA.


The most efficient and most effective way to allocate capital to multi-family real estate 2 Diversification, and focus on creating stable communities limits operating risk • Emphasis on “good neighbor” policies promotes relationship building and resident satisfaction • High-quality residents prefer compatible neighbors, stable Customer Satisfaction communities, can afford higher rents, and reduce AIR costs • We ask our residents to grade our every interaction to ensure through high rates of renewal that we are customer-focused – Drives financial stability and NOI margin performance (1) • “World class” customer satisfaction (“CSAT”) scores of 4.30 – Positive community network effect attracts new demand (out of 5) improved during and through COVID (2) • Among Coastal peers , AIR fell less in 2020… recovered • TTM retention of 61.5% a record high for AIR more in 2021… and has sustained momentum in 2022 AIR named in the Kingsley Elite Five in 2022, #2 (2) – Only REIT among Coastal peers to generate positive Same among all operators and #1 for public REITs Store Revenue growth in 2021 (2) (2) Year-Over-Year Same Store Revenue Growth (%) Same Store Revenue Growth (%) 2020 2021 2022 Midpoint Guidance Indexed to 2019 120.0 12.4% 11.0% 10.3% 431 bps 109.4 outperformance 4.9% relative to 105.1 1.8% 1.7% Coastal peers -2.4% -2.4% -3.0% 2019 2020 2021 2022 Midpoint Guidance AIR Communities Coastal Peers Sunbelt Peers (1) AIR CSAT score based on ~59K resident responses in 2021. Kingsley Index is a proprietary index and is the standard for measuring customer satisfaction in the multi-family sector. 12 (2) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA.


The most efficient and most effective way to allocate capital to multi-family real estate 3 The AIR Edge is our ability to provide exceptional service consistently due to our focus on culture, resident satisfaction, innovative technology, and continuous process improvement • The AIR Edge is a durable operating advantage in driving organic growth, and scalable as our portfolio grows Resident Selection Revenue Management Technology Staffing Physical Upgrades • “Good neighbor” emphasis • Pricing every unit, every day • Artificial Intelligence (“AI”) • Work allocated to where it is • Capital Replacements: promotes community and based on pipeline of informs decision making at HQ most efficient and effective In depth and regular review of satisfaction, which encourages prospective residents, and physical property conditions; • Service technology platform • Proprietary in-house rapid renewals by high-quality balancing supply and demand longstanding local market allows for efficient work order response teams support residents within markets relationships that ensure completion and supports teammates both onsite and access to contract labor • Use of AI to target identified • Pricing determined at HQ, integration of robotics offsite market segments predisposed informed by coordination • Capital Enhancements: • Smart home technology • Specialization leads to better to be stable residents with between offsite expert revenue Disciplined offsite underwriting installed in all units – lowers performance, for example in longer than average tenure, management and local to identify opportunities to turn, utility, and insurance offsite collections and in turn income to pay property management teams increase organic growth costs, while boosting revenue higher rents if earned by CSAT Physical Properties & Upgrades Real Time IT & Technology Analytics & Tools People & Culture Organizational Passion for continuous Design & Staffing improvement 13


The most efficient and most effective way to allocate capital to multi-family real estate 3 AIR Edge emphasis on productivity drives operating margin performance… (1) Same Store COE Growth (%) (Indexed to 2009) Indexed to 2009 (1) Negative 10 bps CAGR measured over 13-years 100.6 100.6 100.1 100.0 99.9 99.5 99.2 99.2 98.6 98.3 98.1 95.7 95.7 95.1 On track for flat COE growth in 2022 during heightened inflationary period 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (1)(2) (1)(2) 5-Year COE CAGR (%) 1-Year COE CAGR (%) 4.0% 2.1% (+) Commitment to organizational 1.6% 1.4% efficiency with net G&A capped at 15 bps of GAV -0.1% -0.3% AIR Communities Coastal Peer Avg. Sunbelt Peer Avg. (1) Controllable operating expense (“COE”) defined as total same-store operating expenses less taxes, insurance, and utilities. Peer analysis based on reported full year financials for 2009-2021. 14 (2) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA.


The most efficient and most effective way to allocate capital to multi-family real estate 3 …producing an efficient, durable business model for public multi-family ownership… (1) (1) (1)(2) Same Store Revenue Growth (%) Same Store NOI Growth (%) Free Cash Flow Growth (%) (1) Diversification, and emphasis on stability AIR Edge has driven peer-leading SSNOI Commitment to low G&A provides considerable, ensures top-line performance across cycles margins for over 20+ consecutive quarters durable advantage for AIR 122.7 119.9 120.0 117.6 111.0 109.4 105.1 102.6 97.5 Indexed to 2019 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 Q3 2022 Midpoint Midpoint Year-to- Guidance Guidance Date AIR Communities Coastal Peers Sunbelt Peers Focus creates outperformance in AIR’s Same Store portfolio, while making possible acquisitions with attractive returns on a risk-adjusted basis (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA. (2) Reflects Q3 2022 YTD, 2021, and 2020 financials as reported in company filings. Free Cash Flow Conversion % defined as Same Store NOI less Net Property Management and G&A Expense, and 15 divided by Same Store Revenue. Please see appendix for additional detail.


The most efficient and most effective way to allocate capital to multi-family real estate 3 …with a durable advantage in flow-through for the benefit of shareholders (1) ~6% and ~14% higher revenue required by Coastal and Sunbelt peers , respectively, to equal AIR’s Free Cash Flow conversion margin (2) Same Store Revenue to Free Cash Flow Conversion (%) Focus on efficiency results in higher share of AIR’s rent growth being available for accretive uses 65.9% 64.7% 62.0% 60.6% 57.7% 55.9% 2021 Q322 YTD 2021 Q322 YTD 2021 Q322 YTD AIR Communities Coastal Peer Avg. Sunbelt Peer Avg. (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA. (2) Reflects Q3 2022 YTD and 2021 GAAP financials as reported in company filings. Free Cash Flow Conversion % defined as Same Store NOI less Net Property Management and G&A Expense, and 16 divided by Same Store Revenue.


The most efficient and most effective way to allocate capital to multi-family real estate 4 We employ a highly disciplined approach to capital allocation • View of AIR’s WACC, expressed as an unlevered IRR, in a range of ~7-8% informed by current markets • A substantial spread to our WACC, generally ~200+ bps of IRR or more, is required for all investment activity • Each transaction is recommended first by our Investment Committee, then decided by our independent directors – Our Investment Committee – chaired by John McGrath – includes AIR’s executive leadership team External Growth Capital Enhancements • Invest where the expected rent premium (relative to • Framework for assessing quality of target opportunities: market) drives long-term value – Markets: Expected growth in local economies, submarket supply • Long-term IRR minimum target of ~10% on average constraints, and predictable laws and regulations – Equates to low double digit NOI yields – Portfolio: Diversification across markets, type, and price point – Rents: Relative to local market averages Share Repurchases – Operations: Ability to drive higher growth through the AIR Edge, • $302 million shares repurchased over the year-to-date especially when first added to our platform at an average price per share of $39.77 • Acquisitions must be accretive to near-term FFO – Represents an unlevered IRR of >10% – Underwriting reflects deployment of the AIR Edge to ensure performance • Expect to continue share repurchases with incremental levels and returns are achieved capital as part of a balanced program, and assuming • We will use leverage only within our targeted range of ~5.0x to ~6.0x long-term return hurdles are satisfied We aim to source capital from the broadest range, and develop a menu of low-cost options for AIR Debt Equity • Bank debt: line of credit and term loans • Sale of lower rated properties • Corporate debt: private and public • Sale of JV interest(s) • Secured debt • Issuance of common shares / OP units 17


The most efficient and most effective way to allocate capital to multi-family real estate 4 Investment results demonstrate the value of the AIR Edge (1) • Class of 2021 trending at low double-digit IRRs (vs. underwriting at ~9%) (2) • Execution of business plans driven by the AIR Edge expected to generate ~30% or higher uplift in property values (1)(3) Class of 2021 / 2022 Underwritten NOI Yields Projected NOI Growth (%) +22% +14% +7% +3% 5.9% 5.8% 5.4% 4.8% 4.0% Timing of NOI Year 1 Year 2 Year 3 Year 4 Year 5 Growth Impact Align Rent with Submarket P Properties AIR Platform Onboarding PP Expected to Return to Market Lease Roll Optimization PP Trend Growth Initial Capital Enhancements PP Capital Enhancements PP th (1) Class of 2021 acquisitions defined as City Center on 7 , North Park, Huntington Gateway, Vaughan Place, and Residences at Capital Crescent Trail. Class of 2022 acquisitions defined as the Reserve at Coconut Point, Watermarc at Biscayne Bay, Willard Towers, and The District at Flagler Village. Class of 2023 acquisitions defined as Southgate Towers. (2) Property value uplift assumes that Year 1 NOI cap rate is used for valuation based on Year 3 NOI, net of capital. 18 (3) Reflects aggregated underwritten Year 1 to Year 5 NOI yield for each respective acquisition, inclusive of incremental capital spend.


The most efficient and most effective way to allocate capital to multi-family real estate 5 Our Board has depth in expertise, and reflects a best-in-class approach to governance Governance Highlights Experienced Board of Directors Terry Considine Margarita Paláu-Hernández ✓ Refreshed Board with five new • Director since 1994 • Director since 2021 • CEO, AIR Communities • Founder and CEO, Hernández Ventures independent directors in the last two • Prior experience includes Chairman & CEO of Aimco • Nominated to serve as Representative of the US to the years, with eight (of nine) independent rd through the December 2020 Separation 73 Session of the General Assembly of the UN with the • In 1975, founded and managed predecessor companies personal rank of Ambassador that became Aimco at its IPO in 1994 • Member of the Boards of Occidental, Xerox and Conduent – Diverse and relevant expertise • Member of the Board of Aimco • Member of the Boards of Reagan UCLA Medical Center & Nat’l Museum of the American Latino at the Smithsonian – Average independent director tenure of ~4 years, and age of 63 Thomas Keltner John Rayis • Director since 2007 • Director since 2020 – Directors elected annually • Prior experience includes EVP and CEO-Americas and • Senior Strategic Advisor, Lockton Global Brands at Hilton Hotels, various leadership roles • Prior experience includes Partner, Tax, Skadden, Arps, (incl. President, Brand Performance & Development) with Slate, Meagher & Flom LLP – Chairman and CEO separated Promus Hotels, various leadership roles with Holiday Inn • Adjunct Professor of Law at Stetson University College of Worldwide, President of Saudi Marriott Company, and Law and Member ✓ Cannot stagger the Board without management consulting with Cresap, McCormick & Paget • Member of the Board of The University of Chicago Medical Center shareholder approval Thomas Bohjalian Ann Sperling ✓ Shareholder proxy access and ability to • Director since 2021 • Director since 2018 call special meetings • Prior experience incudes EVP and Senior Portfolio • Prior experience includes Senior Director of Trammell Manager, as well as Head of US Real Estate and Trading Crow, President, Markets West of JLL, Managing Director departments at Cohen & Steers where he was of Catellus, and Senior Managing Director & Area Director ✓ Majority vote standard (incl. director consistently ranked in the top decile of all real estate fund of Trammell Crow resignation in a majority against vote) managers • Member of the Board of SmartRent, and Advisory Boards of Cadence Capital and the Gates Center for Regenerative (1) Medicine ✓ Peer-leading “Say on Pay” with highest level of support among multi- Kristin Finney-Cooke Nina Tran family peers over the last five years • Director since 2021 • Director since 2016 • Managing Director, JP Morgan Multi Asset Solutions Group • CFO of Pacaso • Prior experience includes Senior Consultant and Co-Chair • Prior experience includes CFO of Veritas Investments, ✓ Direct engagement with ~70% of of Diverse Manager Advisory Committee at NEPC, CFO of Starwood Waypoint Residential Trust, various shareholders in Q3 2022 Principal at Mercer, and Credit Suisse First Boston leadership roles focused on the merger integration of AMB • Member of the Boards of Chicago State University and Prologis, and PricewaterhouseCoopers Foundation and Ann & Robert Lurie Children’s Hospital of • Member of the Board of American Assets Trust, and ✓ Directors actively making open market Chicago Medical Center Advisory Board of the Asian Pacific Fund purchases of AIR shares Devin Murphy • Director since 2020 • President, Phillips Edison & Company • Prior experience includes Vice Chairman, Morgan Stanley, Recognized by Women’s Recipient of 2022 Gender Global Head of Real Estate Investment Banking, Deutsche Forum of New York for Balanced Board award from Bank, and various leadership roles at Morgan Stanley having at least 30% of Board Boardbound by Women’s including Co-Head of US Real Estate Investment Banking and Head of Real Estate Private Capital Markets seats held by women Leadership Foundation • Member of the Board of CoreCivic 19 (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA.


The most efficient and most effective way to allocate capital to multi-family real estate 5 Exceptional, long-tenured Management team strengthened with new talent Strong Management Alignment Director & President & President, Executive Vice President Chief Executive Officer General Counsel Property Operations & Chief Financial Officer ✓ 90% of CEO compensation linked to performance with 100% of LTI based on 3-year forward relative TSR performance – Other AIR executives have 66% of LTI “at risk” based on the same 3-year forward relative TSR ✓ Required stock ownership of >5x base salary for our CEO, President/GC, and Terry Considine Lisa Cohn Keith Kimmel Paul Beldin 51+ Years of 20+ Years of 20+ Years of 14+ Years of CFO, and 4x for other executive officers AIR Experience AIR Experience AIR Experience AIR Experience (1) ✓ Peer-leading “Say on Pay” with highest level of support among multi- Core of executive management has spent the last 14+ years working together family peers over the last five years (1) Historical “Say On Pay” Shareholder Support % Senior Vice President, Executive Vice President, Executive Vice President, Senior Vice President, Chief Corporate Strategy, Capital Co-CIO Capital Markets Responsibility Officer Allocation, & Co-CIO 98.7% 98.5% 97.9% 97.8% 97.0% 93.2% 92.6% 92.6% 92.4% 92.0% Patti Shwayder John McGrath Joshua Minix Matthew O’Grady 2017 2018 2019 2020 2021 20+ Years AIR Experience 7+ Years of AIR Experience Joined Q3 2021 Joined Q4 2021 AIR Peer Avg. Identified gaps created by the Separation and strengthened ourselves with new talent to support transactions and external growth 20 (1) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA.


The most efficient and most effective way to allocate capital to multi-family real estate 6 Attractive valuation for AIR in current market environment • Common equity not currently an attractive source of capital for near-term growth – Property sales and/or joint ventures expected to provide the most attractive WACC – We will not pursue investments unless accretive to near-term FFO, and at a substantial IRR spread to our WACC (1)(2) (1)(2) Premium / (Discount) to Implied Trading Metrics Gross Asset Value Net Asset Value Implied Cap Rate (%) 2022E FFO (x) 6.0% 5.8% 5.8% 18.3x 17.2x 16.7x 15.8x -14.5% -15.2% -17.7% -21.0% -21.0% -26.6% Coastal Sunbelt Coastal Sunbelt Coastal Sunbelt Coastal Sunbelt At $2.41 At $2.19 Peers Peers Peers Peers Peers Peers Peers Peers Guidance Pro forma Run Rate (3) Guidance AIR Communities Coastal Peers Sunbelt Peers (1) Per GSA and S&P Cap IQ as of 11/11/2022. (2) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA. 21 (3) Pro forma Run Rate FFO per share of $2.19, at the midpoint, reflects $2.41 FFO per share guidance adjusted for the prepayment of Aimco transactions identified in our Q1 2022 earnings release.


The most efficient and most effective way to allocate capital to multi-family real estate 6 Attractive dividend characteristics for tax sensitive investors • Target payout ratio for 2022 at ~75% of FFO – Currently project a majority of the dividend will be taxed at capital gain rates, with remainder at ordinary income rates (1)(2) (2)(3) Annualized Dividend Yield Illustrative Dividend Analysis Peer Average Illustrative Investment $100 $100 4.8% Average Dividend Yield 4.8% 3.7% Pre-Tax Dividend $4.78 $3.67 3.9% 3.2% Assumed Ordinary Income / Capital Gain Split 40 / 60 60 / 40 Illustrative Tax Impact ($) ($1.91) ($1.61) Post-Tax Dividend $2.88 $2.06 $2.88 Coastal Sunbelt Peers Peers $2.06 Peer Average $0.81 higher yield (+39%) on a post-tax basis (1) Per GSA and S&P Cap IQ as of 11/11/2022. (2) Per company filings. Peers defined as AVB, CPT, EQR, ESS, MAA, and UDR. Coastal peers defined as AVB, EQR, ESS, and UDR. Sunbelt peers defined as CPT and MAA. (3) AIR’s dividend in 2021 was ~67% return of capital and ~33% capital gain. Peers averaged ~62% ordinary income and ~28% capital gain. Analysis assumes a 40 / 60 split between ordinary income and capital gains for AIR, and 60 / 40 split for peers. Assumed tax rates: (i) federal ordinary income of 37% (29.6% for qualified 199A income), (ii) federal LTCG of 20%, and (iii) federal 1250 recapture of 25%. 22 A 3.8% Net Investment Income Tax and illustrative 6.65% state tax is added to each respective federal rate.


707 Leahy B Committed to Corporate Responsibility Redwood City, CA


The most efficient and most effective way to allocate capital to multi-family real estate Commitment to corporate responsibility • AIR’s 2021-2022 Corporate Responsibility Report now posted to our updated corporate responsibility site Recent Awards / Updates AIR ESG Highlights GRESB score of 78 Environmental Social Governance • “A” grade for ESG public disclosure and alignment with • Benchmarking to GRESB • AIR Gives volunteer program and • Corporate ESG policies TCFD commitment to service • UN Sustainability Goals alignment • Strict adherence to Code of • “Green Star” for overall • Good Neighbor policies Conduct and Ethics • Established targets for energy, Management and Performance water and GHG reduction by 2025 • Professional training and focus on • Transparency to shareholders and • Perfect score in social internal promotion the public • Goal to certify 95% of portfolio responsibility; near-perfect with third parties by 2024 • Healthcare and benefits, • Corporate Responsibility Task score in corporate governance including industry leading Force reporting to CEO • Performing physical and transition parental leave and flexible hours risk analysis on the portfolio and • Vendor and Supplier Code of 2022 new acquisitions • Benefits for teammates deployed Conduct to include ESG and Elite Five Multifamily Company on active duty adherence to ethics, health and • Smart home technology to safety measures. conserve energy and water use / • Support for teammates seeking 2022 monitor for leaks and other issues US citizenship • Board diverse in background and experience Gender Balanced Board • Disaster preparedness and • Scholarships for teammates and proactive upgrades students living in affordable • Board review of political and housing nonprofit contributions 2022 • Support for teammates facing National Top Workplace Award unexpected crises 2022 Healthiest Employer in Colorado Select Corporate Responsibility Goals Select targets and goals include: “We believe our work is more than a business – it’s a • Reduction in energy consumed – 15% energy intensive savings by 2025 over 2019 baseline high calling to serve others. The AIR Communities team • Reduction in water consumed – 10% savings by 2025 over 2019 baseline takes seriously its responsibility to care for our • 15% GHG savings over 2019 baseline by 2025 customers, our neighbors, and each other as • Materiality Assessment of key stakeholders conducted in alignment with SASB teammates. Our corporate DNA is defined by this • Investment in teammates – promoting within and internal mobility at a minimum of 50% mindset.” • Ongoing assessment of ESG priorities through training, annual surveys, and outreach -Terry Considine, CEO, AIR Communities • Continuing to achieve 4.25 or better annually for Customer Satisfaction scores 24


The most efficient and most effective way to allocate capital to multi-family real estate We invest in our communities to create superior experiences for our residents… (1) CSAT Scores AIR CSAT Score Kingsley Index • AIR is home to 55K+ residents across the US 4.33 4.30 4.30 4.27 4.27 • In 2020, AIR created a Resident Healthy Living Guide customized for each property to help support our residents live a healthy, balanced lifestyle 4.12 4.09 4.06 4.05 4.00 AIR named in the Kingsley Elite Five in 2022 at #2 among all operators and #1 for public REITs 2017 2018 2019 2020 2021 and to provide a great workplace for our 750+ teammates • Recognition by Energage as a Top Workplace in the US – One of only six companies to be 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 recognized as a Denver Post Top Workplace for nine consecutive years AIR Gives – Top Workplace recognition also received Highly Engaged Team in the San Francisco Bay Area and Washington, D.C. • AIR Gives provides teammates with 15 $1,305,000 $67,500+ $405,000+ Nationwide team engagement score paid hours each year to apply to volunteer AIR Gives scholarship AIR Gives scholarship Raised in 2021 benefiting in 2022 was 4.42 (out of 5 stars) with funds to 630 children of funds to 26 students in veterans and providing activities of their choosing, and matches 72% of teammates participating teammates since 2006 2020 scholarships for students charitable giving up to $15 per hour in affordable housing volunteered 25 (1) AIR CSAT score based on ~52K resident responses in 2021. The Kingsley Index is a proprietary index representing the industry standard for measuring customer satisfaction in the multi-family sector.


The most efficient and most effective way to allocate capital to multi-family real estate And we are committed to making our environmental impacts positive • AIR has always operated our communities with a focus on cost optimization, efficiency, and customer experience • 97% of all AIR apartment homes are equipped with smart home technology Solar Energy Energy Efficiency Water Conservation Climate Risk & Resilience • Aggressively pursuing solar • Tracking whole building • Low flow plumbing fixtures have • Disaster preparedness program electric generation across the performance data for ~60% of been the standard for more than that guides all site teams on how portfolio: five projects currently the portfolio in ENERGY STAR a decade to manage their property should in design and construction; four a natural disaster occur projects undergoing feasibility • High efficiency LED lighting in all • Water leak sensors included in AIR communities the smart home technology • Upgrades during renovations that studies installed in all apartment homes include protections from storm • Building automation systems • 1,100 EV charging stations being damage and other impacts of installed at all high- and mid-rise • All cooling towers in high-rise installed across the portfolio natural disasters buildings to optimize efficiency buildings are controlled to and reduce energy consumption minimize evaporation • MSCI analysis of portfolio and acquisitions for physical and • All communities in California and transition risks Denver have smart irrigation systems installed • Excellent bottom line metric is that casualty claims are rare LEED® Certified Ten buildings; 897,266 SF Goal to certify IREM® Certified Sustainable 95% of portfolio 32 properties; 9,698,000 SF by the end of 2024 6,690,852 235,005,148 923,922,393 169,730 therms of natural kWh of electricity gallons of water Metric tons of GHG TM gas conserved saved through saved through emissions avoided NGBS Green Certified efficient fixtures efficiency Four buildings; 398,069 SF 26


Willard Towers C Additional AIR Background Chevy Chase, MD


The most efficient and most effective way to allocate capital to multi-family real estate (1) Calculation of Same Store Revenue to Free Cash Flow Conversion AIR ESS UDR EQR AVB CPT MAA ($ in 000s, unless noted) Q3 2022 YTD Actuals Same Store Revenue $402,827 $1,110,166 $983,213 $1,882,181 $1,652,297 $850,167 $1,422,014 Same Store NOI $297,061 $784,624 $681,784 $1,281,194 $1,139,668 $555,629 $910,496 Property Management (Net) ( 16,730) ( 22,219) (32,425) ( 83,035) (88,108) ( 19,061) ( 48,429) General & Administrative (14,668) ( 40,541) (47,333) ( 47,033) (53,323) (44,526) ( 44,091) Revenue Converted to Free Cash Flow $265,663 $721,864 $602,026 $1,151,126 $998,237 $492,042 $817,976 66% 65% 61% 61% 60% 58% 58% Same Store Revenue FCF Conversion % Average 62% 58% Implied Revenue % Increase for Breakeven with AIR 6% 14% 2021 Actuals Same Store Revenue $525,436 $1,288,238 $1,137,863 $2,342,257 $2,024,861 $971,872 $1,702,741 Same Store NOI $379,042 $891,404 $781,102 $1,538,262 $1,370,282 $620,662 $1,064,308 Property Management (Net) ( 25,241) (27,050) (32,438) ( 98,155) ( 98,646) ( 20,318) ( 55,732) General & Administrative ( 14,087) ( 51,838) (57,541) (56,506) ( 69,611) ( 59,368) (52,884) Revenue Converted to Free Cash Flow $339,714 $812,516 $691,123 $1,383,601 $1,202,025 $540,976 $955,692 Same Store Revenue FCF Conversion % 65% 63% 61% 59% 59% 56% 56% Average 61% 56% Implied Revenue % Increase for Breakeven with AIR 7% 16% AIR Communities Coastal Peer Avg. Sunbelt Peer Avg. (1) Reflects Q3 2022 YTD and 2021 GAAP financials as reported in company filings. Free Cash Flow Conversion % defined as Same Store NOI less Net Property Management and G&A Expense, and 28 divided by Same Store Revenue.


The most efficient and most effective way to allocate capital to multi-family real estate Financial risk reduced by a flexible, low leverage balance sheet (1) Balance Sheet Highlights AIR Debt Profile ($M) Repricing Schedule • De-leveraging fully achieved • Wtd. avg. repricing duration of 6.9 years after $830 million of interest (1) rate swaps placed in Q2 2022 – 3% floating rate exposure – Weighted average refunding and repricing $472 risk of 6.4 and 6.9 years, respectively $350 $314 $286 $268 $267 $249 $159 $149 $- $- – 3.9% weighted average interest rate 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ – $8.3 billion of unencumbered properties Refunding Schedule • Priced three tranches of senior unsecured • $170 million maturing • $600 million of 2025 maturities relate to term loans with repricing risk notes in July 2022 at a weighted average before 2025 expected to extended to 2027 through interest rate swaps yield to maturity of 4.3% be refunded before year- • To extend weighted average maturity and better balance its refunding $886 end; no other debt ladder, AIR is considering extending the duration, or refinancing the maturing before Q2 2025 term loans maturing in 2025 – Oversubscribed on inaugural offering $299 $268 $267 $228 $184 $149 (1) • $1B+ of available liquidity pro forma $89 $94 $53 $28 – Significant cushion under LoC covenants 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ • Anticipate receiving Issuer Credit Rating from Moody’s during Q4 2022 BBB/Stable 5.9x $8.3B 26% S&P Global Net Leverage Unencumbered Net Leverage (1) (2) Ratings to EBITDA Property Pool to GAV (1) Metrics pro forma for anticipated Q4 2022 property sales. Floating rate exposure excludes leverage subject to interest rate caps and revolving credit facility borrowings. 29 (2) Reflects AIR total asset value assuming GSA Total Assets as of 6/30/2022.


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 projected results and specifically forecasts of 2022 and 2023 results, including but not limited to: Pro forma FFO and selected components thereof; AIR’s ability to maintain current or meet projected occupancy, rental rate, and property operating results; operating performance of acquisition communities; expectations regarding dispositions and the use of proceeds thereof; expectations regarding acquisitions; and liquidity and leverage metrics. We caution investors not to place undue reliance on any such forward-looking statements. These forward-looking statements are based on management’s judgment as of this date, which is subject to risks and uncertainties. Risks and uncertainties that could cause actual results to differ materially from our expectations include, but are not limited to, 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 inflation, the pace of job growth and the level of unemployment; the timing and effects of acquisitions and dispositions; changes in operating costs, insurance risks, including the cost of insurance, and those described from time to time in filings by AIR with the Securities and Exchange Commission (“SEC”), including in the section entitled “Risk Factors” in Item 1A of AIR’s Annual Report on Form 10-K for the year ended December 31, 2021, and the “Risk Factors” section of registration statements filed with the Securities and Exchange Commission. Readers should carefully review AIRs financial statements and the notes thereto, as well as the documents AIR files from time to time with the SEC. These filings identify and address other 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 AIR assumes no obligation to revise or update them to reflect future events or circumstances. 30