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 |
| |
|
|
|
22
The Customer Focus Journey
23
How will this affect our Residents?
Customer Focus |
| Emotional Bond with Brand |
| Customer |
|
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