Form: 8-K

Current report filing

June 19, 2002

Exhibit 99.2

 

Planned Evolution

Customer Evolution

 

Knowing and Serving Our Customer

 

•                            Projected growth from “empty nester” baby boomers and
“echo-boomers”

 

 

 

 

1



 

Planned Evolution

Outsized Performance

 

Dividends - Safety and Growth

 

 

 

 

2



 

Market Research: Application

Short-Term

 

Corporate Profits % Change vs. Year Ago

 

 

 

3



 

Market Research: Application

Short-Term

 

Consumer Confidence

 

 

 

4



 

Market Research: Application

Short-Term

 

GDP Growth

 

 

 

5



 

Market Research: Application

Short-Term

 

Annual Employment Growth

 

 

 

 

6



 

Market Research: Application

Short-Term

 

Single-Family Home Sales

 

 

 

7



 

Market Research: Application

Short-Term

 

New Supply as a % Total Inventory

 

 

 

 

8



 

Market Research: Application

Short-Term

 

Demand/Supply Ratio

 

 

 

9



 

Market Research: Application

Short-Term

 

Occupancy (REIS)

 

 

 

10



 

Market Research: Application

Short-Term

 

Annualized Rental Rate Growth (REIS)

 

 

 

11



 

Market Research: Application

Short-Term

 

Traffic/Available Homes

 

 

 

 

12



 

Market Research: Application

Short-Term

 

Economic Occupancy

 

 

 

 

13



 

Market Research: Application

Short-Term

 

Market Rent Growth

 

 

 

 

14



 

Market Research:  Application

Longer-Term

 

Average Annual Employment Growth (1998 – 2003)

 

 

Source:  Economy.com (non-farm, non-construction employment)

 

 

 

15



 

Market Research:  Application

Longer-Term

 

Completions as % of Inventory (1998-2003)

 

 

Defined as New Supply as % Total Apartment Inventory

Source:  Reis Reports/AVB

 

 

 

16



 

Market Research:  Application

Longer-Term

 

Demand/Supply (1998 – 2003)

 

 

Source:  REIS, Economy.com, AVB

D/S= (Household Growth/Employ. Growth) x Employ. ) / New Supply

 

 

 

17



 

Market Research:  Application

Longer-Term

 

Housing Affordability  (4Q01)

 

 

Source:  NAHB. Based on % of households that can afford median sales price.

 

 

 

18



 

Market Research:  Application

Longer-Term

 

Market Rent Growth (1998 – 2003)

 

 

Source:  REIS Reports

 

 

 

19



 

AVB Resident Profile

 

73% of Residents in $50,000+ Income Bracket

 

 

Household Income

 

Percent

 

< $25,000

 

7%

 

$25,000 - $49,999

 

20%

 

$50,000 - $74,999

 

24%

 

$75,000 - $99,999

 

20%

 

$100,000 or more

 

29%

 

 

 

 

 

20



 

 

What is the right approach at AVB?

 

 

Ø

Operating Excellence is our Competitive Advantage

 

 

 

 

Ø

Operating Excellence will Maximize Shareholder Value

 

 

 

 

Ø

Customer Knowledge and Service fall within Operating Excellence

 

 

 

 

 

21



 

 

What is the right approach at AVB?

 

 

 

 

 

 

 

 

 

 

 

Where we want to be
in the Future

 

 

 

 

 

 

 

 

22



 

 

The Customer Focus Journey

 

 

 

 

 

 

23



 

 

How will this affect our Residents?

 

 

Customer Focus

Emotional Bond with Brand

Customer
Loyalty

 

 

 

 

 

24



 

 

How will Customer Focus benefit AVB?

 

 

 

 

 

25



 

Decentralized Execution

 

 

 

 

 

 

 

26



 

Experienced Management Team

 

 

 

 

27



 

Business Update

Market & Operating Trends

Employment Growth (by sequential quarter)

 

 

1999       |         2000      |         2001       |       2002          |        2003

 

 

28


 


 

Business Update

Average Economic Occupancy

 

 

 

29


 


 

Business Update

Annual Market Rent Growth

 

May 2002

 

 

 

 

30


 


 

Business Update

Market Rent & Gross Potential Per Apt

 

 

 

31


 


Business Update

Same Store Revenue

Historical

$ Millions per month

 

 

 

 

32