Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Apartment Investment and Management Company (AIV)

Company Dividend Discount ModelIndustry: REIT - ResidentialSector: Real Estate

Valuation Snapshot

Stable Growth$12.98 - $18.84$15.82
Multi-Stage$21.98 - $24.14$23.04
Blended Fair Value$19.43
Current Price$7.93
Upside145.04%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.020.000.000.000.001.701.571.42
YoY Growth--0.00%-100.00%0.00%0.00%0.00%0.00%-100.00%8.17%10.82%22.70%
Dividend Yield--0.00%0.00%0.29%0.00%0.00%0.00%0.00%31.35%26.62%25.49%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)243.67
(-) Cash Dividends Paid (M)88.21
(=) Cash Retained (M)155.46
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)48.7330.4618.28
Cash Retained (M)155.46155.46155.46
(-) Cash Required (M)-48.73-30.46-18.28
(=) Excess Retained (M)106.72125.00137.18
(/) Shares Outstanding (M)137.46137.46137.46
(=) Excess Retained per Share0.780.911.00
LTM Dividend per Share0.640.640.64
(+) Excess Retained per Share0.780.911.00
(=) Adjusted Dividend1.421.551.64
WACC / Discount Rate8.70%8.70%8.70%
Growth Rate-2.00%-1.00%0.00%
Fair Value$12.98$15.82$18.84
Upside / Downside63.72%99.54%137.55%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)243.67241.24238.82236.43234.07231.73238.68
Payout Ratio36.20%46.96%57.72%68.48%79.24%90.00%92.50%
Projected Dividends (M)88.21113.29137.85161.91185.48208.56220.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.70%8.70%8.70%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)103.16104.22105.27
Year 2 PV (M)114.31116.66119.03
Year 3 PV (M)122.27126.05129.91
Year 4 PV (M)127.55132.83138.28
Year 5 PV (M)130.60137.40144.48
PV of Terminal Value (M)2,423.662,549.872,681.28
Equity Value (M)3,021.553,167.023,318.24
Shares Outstanding (M)137.46137.46137.46
Fair Value$21.98$23.04$24.14
Upside / Downside177.19%190.53%204.40%

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