<PAGE>
EXHIBIT 99.1
FORWARD-LOOKING STATEMENTS AND QUALIFICATIONS
In addition to historical information, this document contains forward-looking
statements under the federal securities law. These statements are based on
current expectations, estimates and projections about the industry and markets
in which Archstone operates, management's beliefs and assumptions made by
management. Forward-looking statements are not guarantees of future performance
and involve certain risks and uncertainties which are difficult to predict.
Actual operating results may differ materially from what is expressed or
forecasted in this Form 8-K. See "Risk Factors" in Archstone's 1999 Annual
Report on Form 10-K for factors which could affect Archstone's future financial
performance.
This presentation contains projections and statements regarding trends in the
real estate industry which exist as of today. By their nature, there can be no
assurance as to how accurate these projections will turn out to be, and other
observers of the real estate industry could discern different trends or draw
different conclusions from these trends. This report includes data and
projections prepared by third parties. Archstone does not endorse or confirm
such data and projections and is not suggesting that the sources of those
projections are experts. Additional cautions apply to data and projections
prepared by third parties, because Archstone cannot independently verify these
data and projections. Archstone is undertaking no obligation to update these
projections or statements and can provide no assurance that they will remain
accurate at any particular point in time in the future.
Readers should review this presentation in conjunction with a review of
Archstone's Form 10-K for the fiscal year ended December 31, 1999 and subsequent
reports on Form 10-Q.
Important Notes
Because the opening presentation was prepared as a slide show, the text on
each page was kept to a minimum to facilitate visual communication and to
emphasize major points. A summary of all of the information presented at the
November 16, 2000 exposition is also included in this report.
This presentation is dated November 15 and 16, 2000, and the information and
analyses presented should be read as of that date with the understanding that
Archstone is not undertaking to update this presentation or the third party data
and projections included in this presentation.
5
<PAGE>
[LETTERHEAD OF ARCHSTONE COMMUNITIES]
Archstone Hosts Investor Conference in Boston
Opening Session to be Webcast on Archstone's Website
DENVER -- November 15, 2000 -- Archstone Communities (NYSE:ASN), one of the
nation's largest apartment developers, owners and operators, will provide an
update on the company's investment strategy, its operating and financial
performance and innovative use of technology, in a meeting today with analysts
and investors in Boston. A webcast of the opening session presentation will be
broadcast live on the company's website at 11 a.m. EST on November 15, 2000.
The opening session will be hosted by R. Scot Sellers, chairman and chief
executive officer; Charles E. Mueller, Jr., chief financial officer; Daniel E.
Amedro, chief information officer; and Dana K. Hamilton, senior vice president.
Mr. Sellers will discuss Archstone's investment strategy, operating performance
and management team. Mr. Mueller will provide an overview of the company's
financial strategy. Mr. Amedro and Ms. Hamilton will cover the company's
operating and technology initiatives.
For access to the opening session presentation:
----------------------------------------------
. Visit www.archstonecommunities.com
----------------------------
. Select "Investors" from the top menu
. Click on the Hear the opening session from Archstone's Boston Investor
---------------------------------------------------------
Conference from November 15, 2000. The presentation will be archived for
----------------------------------
approximately one month. The event will also be archived on www.prnewswire.com.
As part of its investor meeting, Archstone is hosting an exposition, which
highlights the company's investment and operating activities and its use of
technology to enhance its core business. The exposition covers the following
areas:
. West Region Investments . East Region Investments
. Northeast Presence . Revenue Management and Online Lease
. Web-enabled Accounting Tools . Training and Development
. Taxable REIT Subsidiaries . Creating a Retail Environment
. The Archstone Brand
-more-
6
<PAGE>
Archstone Hosts Investor Conference in Boston
Page 2
A summary of the all of the information presented at the exposition--including
profile information on certain Archstone communities, investments in the East
and West Regions, and the company's various operating and technology
initiatives--is available on the company's website at
www.archstonecommunities.com in the Investors section under Press Releases, or
by calling (800) 982-9293.
Archstone Communities is a leading real estate operating company focused on the
operation, development, acquisition, redevelopment and long-term ownership of
apartment communities in markets and sub-markets with high barriers to entry
throughout the United States. With a total market capitalization of $5.7
billion, Archstone has a strategic national presence with 235 communities
representing 72,318 units, including 8,875 units in its development pipeline, as
of September 30, 2000, in markets that include 31 of the nation's 50 largest
metropolitan markets.
# # #
Archstone's press releases are available on the company's web site at
www.archstonecommunities.com or by calling (800) 982-9293.
In addition to historical information, this press release contains forward-
looking statements under the federal securities law. These statements are based
on current expectations, estimates and projections about the industry and
markets in which Archstone operates, management's beliefs and assumptions made
by management. Forward-looking statements are not guarantees of future
performance and involve certain risks and uncertainties which are difficult to
predict. Actual operating results may differ materially from what is expressed
or forecasted in this press release. See "Risk Factors" in Archstone's 1999
Annual Report on Form 10-K for factors which could affect Archstone's future
financial performance.
7
<PAGE>
ARCHSTONE
Investor and Analyst Conference
Boston Harbor Hotel at Rowes Wharf
November 15 - 16, 2000
8
<PAGE>
Archstone Communities
Redefining the apartment industry through:
. Capital allocation
. Innovation
. People
9
<PAGE>
Capital allocation
Relentless focus on intelligent investments
. Key point of differentiation for truly great companies
. Archstone began recycling capital long before equity markets closed to
REITs
. Measure, report and reward accordingly
. Value creation defines long-term success
. Focus on long-term gains, not short-term accretion
. National presence in protected markets
. Core investments in supply-constrained markets with strong economies
. Opportunistic investments in high-growth, liquid markets
10
<PAGE>
Apartments are a very attractive investment
. Housing is a necessity
. In Archstone's protected markets, demand is 2 to 3 times supply
. Operating margins are 60% to 70%
11
<PAGE>
Investment acumen
Archstone has made the right moves
. Conventional wisdom typically produces mediocre returns
. Making the right investment decisions can invite criticism, but the value
creation can be tremendous
. Timely decisions
. 1995: Aggressively investing in California
. 1996: Selling Dallas/Phoenix
. 1997: Selling Houston
. 1998: Investing in Atlanta, Washington, D.C. and Boston
. Controlling land early in the cycle in target markets
12
<PAGE>
The value of owning apartments in protected markets
Lowest apartment occupancy 1980 - 2000
PROTECTED MARKETS OTHER MARKETS
-------------------------------------- ------------------------------------
Bay Area/San Jose 95.6% Dallas 83.5%
L. A. County 93.8% Houston 81.6%
San Diego 92.9% Phoenix 84.3%
Boston 94.6% Denver 87.1%
Washington, D.C. 94.5% Atlanta 88.8%
Seattle 93.1%
13
<PAGE>
Capital redeployment - West Region
Concentrating Archstone's capital in protected markets
[The following table was depicted as a bar graph in the presentation.]
Market 12/31/95 12/31/00
--------------------------------------------------------------------------------
Southern California $44.3 million $1,080.9 million
Bay Area $38.6 million $608.0 million
Seattle $80.7 million $331.1 million
Texas $786.3 million $408.1 million
Arizona $476.7 million $229.7 million
New Mexico $179.2 million $104.9 million
14
<PAGE>
Capital redeployment - East Region
Concentrating Archstone's capital in protected markets
[The following table was depicted as a bar graph in the presentation.]
Market 6/30/98 12/31/00
------------------------------------------------------------------------------
Washington D.C. $160.3 million $493.3 million
Northeast/Midwest $0 $582.1 million
Florida $534.8 million $426.3 million
Atlanta $443.5 million $283.5 million
15
<PAGE>
Enhancing our core growth rate
Same-store revenue growth rate has improved dramatically
. Archstone's same-store revenue growth
. 1997: 2.7%
. 1998: 3.6%
. 1999: 3.6%
. 2000 YTD: 6.5%
. Third quarter 2000 same-store revenue growth
. Archstone: 7.6%
. Camden: 3.9%
. Equity Residential: 5.1% (1)
. AIMCO: 5.5%
(1) Includes utility reimbursements
16
<PAGE>
Building a presence in supply-constrained markets
[The following information was presented on a United States map in the
presentation.]
Primary Target Markets:
-----------------------
Atlanta New York City metro area
Boston Orange County
Chicago San Diego
Denver (Headquarters) San Francisco Bay area
Ft. Lauderdale / West Palm Beach Seattle
Inland Empire Ventura County
Los Angeles County Washington D. C.
Minneapolis
Operating Communities:
----------------------
Austin Portland
Charlotte Salt Lake City
Dallas Phoenix
Houston Tampa
Orlando Raleigh
Markets to be Exited:
---------------------
Albuquerque Reno
Indianapolis Richmond
Nashville San Antonio
Markets Exited:
---------------
Asheville Jacksonville
Birmingham Kansas City
Columbia
Columbus Memphis
El Paso Santa Fe
Ft. Myers Sarasota
Greensville Tucson
17
<PAGE>
Capital allocation creates value
Value creation through acquisitions and development/(1)/
<TABLE>
<CAPTION>
Market Market Value /(2)/ Total Investment /(3)/ Value Created % Value Created
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Northern California $ 536.6 $ 293.6 $243.0 82.8%
Southern California 521.5 359.5 162.0 45.1%
Washington D.C. 336.3 210.5 125.8 59.8%
Northeast/Midwest 315.6 245.9 69.7 28.3%
Seattle 258.6 211.1 47.5 22.5%
Denver 196.1 142.1 54.0 38.0%
------------ ----------------- -------------- ----------------
Total $2,164.7 $1,462.7 $702.0 48.0%
============ ================= ============== ================
</TABLE>
(1) Stabilized acquisitions and developments through 12/31/00; in millions
(2) Based on projected yields and management's estimates of capitalization
rates
(3) Represents Archstone's gross book basis before accumulated depreciation
18
<PAGE>
Components of development pipeline
57% of construction activity already funded
Investment
(millions)
-----------------
Under construction at 9/30/00
Total expected investment $548
In "Lease-up" - 49% leased
Total expected investment 273
Funded to date 202
-----------------
Balance to fund 71
"Pre-Lease-up"
Total expected investment 275
Funded to date 110
-----------------
Balance to fund 165
Total funding commitments $236
In Planning - no commitment to fund $688
19
<PAGE>
Development Pipeline
Communities in planning
<TABLE>
<CAPTION>
Start Dates
---------------------------------------------------------------------------
Total Investment 1H2001 2H2001 1H2002 After 1H2002
----------------- ---------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
West Region
San Francisco $ 33 $ - $ 33 $ - $ -
Los Angeles 142 - 142 - -
Ventura County 74 - 24 - 50
Seattle 11 - 11 - -
----------------- ---------------- --------------- ------------- ---------------
Total West Region $260 $ - $ 210 $ - $ 50
----------------- ---------------- --------------- ------------- ---------------
East Region
Washington D.C. $111 $ - $ 56 $ 55 $ -
Southeast Florida 10 - 10 - -
New York City Metro Area 172 - 172 -
Boston 30 30 - -
Denver 105 42 - 63
----------------- ---------------- --------------- ------------- ---------------
Total East Region $428 $72 $ 66 $ 227 $ 63
----------------- ---------------- --------------- ------------- ---------------
TOTAL $688 $72 $ 276 $ 277 $ 113
================= ================ =============== ============= ===============
</TABLE>
(in millions)
20
<PAGE>
Our view of equity capital
. A scarce resource we manage judiciously
. We view our cost of equity as 13% to 14%
. Weighted average cost of capital is 10.5%
. Raise equity only when there is a compelling opportunity to create
incremental value - and its cost is lower than the cost of internal capital
(dispositions)
. $584 million in net dispositions since 1995
. $2.3 billion of dispositions at an unleveraged IRR of 13.0%
. Repurchased 17% of our outstanding common shares
. $505 million since February 1999, at an average price of $21.39 per
share
21
<PAGE>
Significant long-term value creation
. Net asset value per share has increased 15.4% in last 12 months
. Current Archstone net asset value: $28.57
. Current share price: $22.69/(1)/
. Current discount to NAV: 20.6%
(1) Closing share price on November 10, 2000.
22
<PAGE>
ARCHSTONE
Financial Strategy
Chaz Mueller
Chief Financial Officer
23
<PAGE>
Financial strategy update
Disciplined financial management
. Continue to fund growth internally
. Minimal common equity sold in last five years
. Active capital recycling program
. Steady reduction in dividend payout ratio
. Ability to finance investment plans without new common equity
. Current market capitalization of $5.7 billion ($3.2 billion of equity)
24
<PAGE>
Conservative financial strategy
Strong balance sheet and financial flexibility /(1)/
. Strong investment grade ratings
. Standard & Poor's: BBB+
. Moody's: Baa1
. Fitch: A-
. 2.7x fixed charge coverage
. 69% of assets unencumbered
. Represents $3.5 billion
. Relatively level principal amortization schedule
. $600 million of available capacity on credit facilities
(1) As of September 30, 2000
25
<PAGE>
Our dividend provides current income and future growth
Annual dividend per common share
[The following information was depicted as a line graph in the presentation]
Common share dividend per share in 1991: $0.64
Common share dividend per share in 1992: $0.70
Common share dividend per share in 1993: $0.82
Common share dividend per share in 1994: $1.00
Common share dividend per share in 1995: $1.15
Common share dividend per share in 1996: $1.24
Common share dividend per share in 1997: $1.30
Common share dividend per share in 1998: $1.39
Common share dividend per share in 1999: $1.48
Common share dividend per share in 2000 (E): $1.54
. 6.6% current dividend yield
. 141% increase in dividend since 1991
. Q4 2000 will represent the 100/th/ consecutive common share dividend paid
Source: Bloomberg. Data as of November 9, 2000.
26
<PAGE>
A proven track record
Average annual return last 10 years /(1)/
[The following information was depicted as a bar chart in the presentation]
Russell 2000 /(2)/: 15.31%
Dow Jones Industrial Average: 18.64%
S&P 500: 19.33%
Archstone: 21.98%
(1) Source: Bloomberg. Data from December 31, 1990 through November 9, 2000.
(2) Data is only available from December 31, 1995 to November 9, 2000.
27
<PAGE>
ARCHSTONE
Innovation
Dana Hamilton, Senior Vice President
28
<PAGE>
Innovation is one of Archstone's core values
Innovation is also a core tenet of our brand
[The following information was depicted as a picture in the presentation]
. Associate Satisfaction
. Customer Satisfaction
. Company Performance
29
<PAGE>
The right people focused on the right things
Recruiting, selection, and training make a critical difference
. Online Recruiting
. Selecting for Success(TM)
. Training Communities
. Customer-Centered Selling
. Operations Simulation
30
<PAGE>
SafeRent improves efficiency
Innovative idea becomes a successful company
. Reduces credit approval time to 30 seconds - potential to move residents in
up to two days sooner
. $500,000 in annual savings
. Increased accuracy
. Amount owed per lease down 22%
. Closings ratios increased from 29% to 33%
. Able to accept 17% more "good" applicants
. Seven of the 10 top apartments companies use SafeRent
. Additional products under development
31
<PAGE>
Online Lease and Web Communities
The first truly online transactions in the apartment industry
. Online apartment search
. Virtual tours/360-degree views
. Real-time pricing and availability
. Online application and approval
. Collection of all fees and deposits
. Lease generation and acceptance
. Renewals and transfers
Reduces lease completion time to less than 15 minutes!
32
<PAGE>
Archstone is creating a retail customer experience
Integrating brand and technology to create a "self-sell" environment
[The following information is shown on a picture of a leasing office.]
. Plasma monitor to create and launch the sales process
. Less space devoted to "living room" feel
. "Self-sell" tools are critically important
. Kiosk to greet customers and support Online Lease
. Greater emphasis on sales environment
33
<PAGE>
ARCHSTONE
Revenue Management & Technology
Dan Amedro, Chief Information Officer
34
<PAGE>
Revenue management will change our industry
Our services and brand offering should command a premium
. Allows Archstone to react faster to market conditions, giving us a distinct
competitive advantage
. Efficiently matches consumer buying behavior with available inventory to
maximize revenues
. Improves forecasting accuracy by retaining knowledge and predicting
behavior
. Lease rates will have more dimensions
. Provides Archstone with a tool to:
. Monitor and manage field pricing actions
. Develop and measure effectiveness of new marketing programs and promotions
. Special promotions will be much more precisely targeted
35
<PAGE>
Technological infrastructure
Leveraging technology to improve our core business
. Key infrastructure accomplishments
. Networked communities
. Centralized applications and data
. Web-delivered services
. Benefits
. Lower equipment costs
. Lower support costs
. Increased reliability and performance
. Quicker, cheaper deployment of new services
36
<PAGE>
System development principles
Minimize risk and maximize return
. Focus on the customer
. Incremental improvement
. Time to market
37
<PAGE>
2001 will be a revolutionary year for Archstone
Online Lease and Revenue Management are defining events
. Products are currently being tested in Denver
. 12 communities have been identified for pilot
. Rollout expected to be completed by year-end 2001
. Re-invents the sales process
. Associates are extremely excited about these programs
. Approximately $2 million of expense to be included in 2001 FFO
38
<PAGE>
Taxable REIT subsidiaries - AMERITON Property Inc.
Significant growth opportunity
Opportunistic investments/shorter-term ownership
. Develop and acquire apartments for sale to third parties
. Emphasizes Archstone's core strengths:
. Investments
. Development
. Operations
. $200 to $300 million of annual investments
. Target IRR of 18% to 20%
. Potential for positive impact on Archstone's earnings
39
<PAGE>
Taxable REIT subsidiaries - Archstone Management Services
Significant growth opportunity
Third -party property management arm leverages Archstone's operating expertise
. Provides the platform to expand the Archstone brand without significant
acquisition or development investments
. Extends reach and scale of Archstone's technology initiatives
. No true competitors
. Potential for positive impact on Archstone's earnings
40
<PAGE>
A word about our values
. Leadership
. Camaraderie
. Innovation
. Enterprising
. Honest & Ethical
"Strong values allow everything to change, and they unleash passion because
people care about them, and want to be associated with them."
- Lew Platt
Former Chairman and CEO
Hewlett-Packard
41
<PAGE>
Archstone Communities
"Combine a great idea with a great manager and you're certain to obtain a great
result."
- Warren Buffet
42
<PAGE>
The best in the business
Archstone's management team
West Region:
Dick Banks, Managing Director
John Jordano, Investments
Joe Dominguez, Development
Larry Levitt, Dispositions
Scott Monroe, Operations
East Region:
Lindsay Freeman, Managing Director
Neil Brown, Investments
Chris Nolan, Acquisitons/Dispositions
Chris Hughes, Development
Northeast Presence:
Rick Dickason, Investments
Gary Truitt, Development
Scott Schaull, Development
Henry Bunis, Acquisitions
Rick Campbell, Investments
Revenue Management and Online Lease:
Dan Amedro, Chief Information Officer
Dana Hamilton, National Operations
Dan Ogden, West Region Operations
Dennis Littlewood, Information Technology
ArchPay:
William Kell, Controller
Making the Seal Real:
Joe Durzo, National Training and Development
Tom Klaess, East Region Operations
Taxable REIT Subsidiaries:
Carrie Brower, General Counsel
Jeff Jones, AMERITON
Glenn Rand, Archstone Management Services
Creating a Retail Experience:
Capey Lester, East Region Operations
The Archstone Brand:
Toni Lopez, East Region Operations
Others:
Scot Sellers, Chairman and CEO
Chaz Mueller, Chief Financial Officer
Jack Callison, Investor Relations
Heather Campbell, Communications
43
<PAGE>
Archstone Communities
"One thing that the truly great companies of the world have in common,
regardless of the diversity of their industries, is a total business focus on
servicing customers."
Jack Welsh, Jr.
Chairman and CEO
General Electric
44
<PAGE>
As part of Archstone's Investor Conference today in Boston, the company is
hosting an exposition, which highlights the company's investment and operating
activities and its use of technology to improve its core business. The
exposition covers the following areas:
. West Region Investments . East Region Investments
. Northeast Presence . Revenue Management and Online
Lease
. Web-enabled Accounting Tools . Training and Development
. Taxable REIT Subsidiaries . Creating a Retail Environment
. The Archstone Brand
A summary of the all of the information presented in the exposition--including
profile information on certain Archstone communities, investments in the East
and West Regions, and the company's various operating and technology
initiatives--follows below:
WEST REGION INVESTMENTS
Hosted by Richard Banks, Managing Director; John Jordano, Investments; Joseph
Dominguez, Development; Larry Levitt, Dispositions; and Scott Monroe, Operations
Archstone's communities in its West Region comprise 46.9% of its portfolio and
represent a total investment of $2.7 billion, including operating communities,
communities under construction and communities in planning as of September 30,
2000. The company focuses its West Region investments in protected, supply-
constrained locations in markets that include Southern California, the San
Francisco Bay area and Seattle.
Archstone provided information on its West Region capital allocation strategy,
through which the company is selling communities in non-core, secondary markets,
and is redeploying the proceeds into investments in protected locations in its
primary target markets. As of September 30, 2000, Archstone's West Region
comprised:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
WEST REGION - CAPITAL ALLOCATION
----------------------------------------------------------------------------------------------------------------
Primary Operating Markets to be
Target Markets Markets Exited Markets
(34.3% of total Archstone (8.1% of total Archstone (4.5% of total Archstone Exited
portfolio) portfolio) portfolio)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Los Angeles Phoenix Albuquerque Santa Fe
San Diego Salt Lake City Las Vegas Tucson
San Francisco Bay Area Portland Reno
Seattle
Orange County
Ventura County
Inland Empire
----------------------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
In addition, the following West Region communities were featured at the
exposition:
<TABLE>
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
WEST REGION - FEATURED OPERATING COMMUNITIES
---------------------------------------------------------------------------------------------------------------------------
Community Redwood Shores Harborside The Cambrian
---------------------------------------------------------------------------------------------------------------------------
City Redwood City, CA Redwood City, CA Redmond, WA
---------------------------------------------------------------------------------------------------------------------------
Market San Francisco Bay area San Francisco Bay area Seattle
---------------------------------------------------------------------------------------------------------------------------
Date Acquired September 1996 December 1996 June 1997
---------------------------------------------------------------------------------------------------------------------------
Total Units 304 148 422
---------------------------------------------------------------------------------------------------------------------------
Rental Rates $2,090 - $3,000 $2,200 - $3,000 $ 915 - $1,540
---------------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 759 sq. ft. 831 sq. ft. 1,018 sq. ft.
---------------------------------------------------------------------------------------------------------------------------
Total Investment/(1)/ $40.4 million $22.1 million $43.9 million
---------------------------------------------------------------------------------------------------------------------------
Current Yield/(2)/ 14.9% 14.2% 10.1%
---------------------------------------------------------------------------------------------------------------------------
Value Created/(3)/ $45.6 million $22.7 million $13.3 million
---------------------------------------------------------------------------------------------------------------------------
% Value Created 112.9% 102.7% 30.3%
---------------------------------------------------------------------------------------------------------------------------
WEST REGION - FEATURED DEVELOPMENT COMMUNITIES
---------------------------------------------------------------------------------------------------------------------------
Community Archstone Hacienda Archstone Torrey Hills Archstone Mission Valley
---------------------------------------------------------------------------------------------------------------------------
City Pleasanton, CA San Diego, CA San Diego, CA
---------------------------------------------------------------------------------------------------------------------------
Market San Francisco Bay area Southern California Southern California
---------------------------------------------------------------------------------------------------------------------------
Total Units 540 340 736
---------------------------------------------------------------------------------------------------------------------------
Rental Rates $1,736 - $2,881 $1,220 - $2,140 $1,135 - $2,056
---------------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 999 sq. ft. 957 sq. ft. 936 sq. ft.
---------------------------------------------------------------------------------------------------------------------------
Lease-up Absorption/(4)(5)/ 47 units/mo. 40 units/mo. 53 units/mo.
Rental Rates Ahead of 24.3% 11.7% 4.4%
Budget
---------------------------------------------------------------------------------------------------------------------------
Stabilization/(6)/ Date Aug. 2000 Aug. 2000 Projected 2Q 2002
---------------------------------------------------------------------------------------------------------------------------
Total Investment $75.9 million $43.2 million $106.3 million
---------------------------------------------------------------------------------------------------------------------------
Current Yield 11.8% 11.0% 10.2% (projected)
---------------------------------------------------------------------------------------------------------------------------
Value Created $52.0 million $24.7 million $48.6 million
---------------------------------------------------------------------------------------------------------------------------
% Value Created 68.5% 57.2% 45.7%
---------------------------------------------------------------------------------------------------------------------------
WEST REGION - FEATURED FUTURE DEVELOPMENT STARTS
---------------------------------------------------------------------------------------------------------------------------
Community Archstone Westside Archstone Playa Del Ray
---------------------------------------------------------------------------------------------------------------------------
City Los Angeles, CA Los Angeles, CA
---------------------------------------------------------------------------------------------------------------------------
Market Southern California Southern California
---------------------------------------------------------------------------------------------------------------------------
Total Units 204 305
---------------------------------------------------------------------------------------------------------------------------
Projected Rental Rates 1,405 - $2,0.5 $1,525 - $2,550
---------------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 865 sq. ft. 886 sq. ft.
---------------------------------------------------------------------------------------------------------------------------
Projected Stabilization Date 3Q 2003 3Q 2003
---------------------------------------------------------------------------------------------------------------------------
Total Investment $44.9 million $71.0 million
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
46
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
WEST REGION - FEATURED REDEVELOPMENT COMMUNITY
---------------------------------------------------------------------------------------------------------------------
Community Ashton Place
---------------------------------------------------------------------------------------------------------------------
<S> <C>
City San Jose, CA
---------------------------------------------------------------------------------------------------------------------
Market San Francisco Bay area
---------------------------------------------------------------------------------------------------------------------
Date Acquired September 1996
---------------------------------------------------------------------------------------------------------------------
Total Units 948
---------------------------------------------------------------------------------------------------------------------
Rental Rates 1,461 - $3,281
---------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 917 sq. ft.
---------------------------------------------------------------------------------------------------------------------
Initial purchase price in 1996 $64.8 million
---------------------------------------------------------------------------------------------------------------------
Incremental capital invested $36.5 million
---------------------------------------------------------------------------------------------------------------------
Current market value $193.1 million
---------------------------------------------------------------------------------------------------------------------
Value created $91.8 million
---------------------------------------------------------------------------------------------------------------------
% Value created 90.6%
---------------------------------------------------------------------------------------------------------------------
</TABLE>
EAST REGION INVESTMENTS
Hosted by Lindsay Freeman, Managing Director; Neil Brown, Investments; Chris
Nolan, Acquisitions and Dispositions; and Chris Hughes, Development
Archstone's communities in its East Region comprise 53.1% of its portfolio, and
represent a total investment of $3.1 billion, including operating communities,
communities under construction and communities in planning as of September 30,
2000. The company focuses its East Region investments in protected, supply-
constrained locations in markets that include the Washington, D.C. metro area,
Boston, the New York City metro area, Southeast Florida and Atlanta.
Archstone provided information on its East Region capital allocation strategy,
through which the company is selling communities in non-core, secondary markets,
and is redeploying the proceeds into investments in protected locations in its
primary target markets. As of September 30, 2000, Archstone's East Region
comprised:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
EAST REGION - CAPITAL ALLOCATION
------------------------------------------------------------------------------------------------------------------
Primary Target Operating Markets to be
Markets Markets Exited Markets
(33.5% of total (15.6% of total (4.0% of total Archstone Exited
Archstone portfolio) Archstone portfolio) portfolio)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Atlanta Dallas Nashville Asheville
Boston Houston Richmond Birmingham
Chicago Austin San Antonio Columbia
Denver Charlotte Columbus
Ft. Lauderdale/West Palm Beach Orlando El Paso
Minneapolis Raleigh Ft. Myers
New York City metro area Tampa Jacksonville
Washington, D.C. Kansas City
Memphis
Sarasota
------------------------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE>
In addition, the following East Region communities were featured at the
exposition:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
EAST REGION - FEATURED OPERATING COMMUNITIES
--------------------------------------------------------------------------------------------------------------------------
Community Fair Lakes Virginia Highlands Park Place at Turtle Run
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
City Fairfax, VA Atlanta, GA Coral Springs, FL
--------------------------------------------------------------------------------------------------------------------------
Market Washington, D.C. Atlanta Southeast Florida
--------------------------------------------------------------------------------------------------------------------------
Date Acquired December 1998 April 1994 April 1994
--------------------------------------------------------------------------------------------------------------------------
Total Units 282 348 350
--------------------------------------------------------------------------------------------------------------------------
Rental Rates $1,070 - $1,475 $760 - $1,440 $720 - $915
--------------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 920 sq. ft. 744 sq. ft. 870 sq. ft.
--------------------------------------------------------------------------------------------------------------------------
Total Investment $25.7 million $20.9 million $17.5 million
--------------------------------------------------------------------------------------------------------------------------
Current Yield 12.4% 13.6% 10.6%
--------------------------------------------------------------------------------------------------------------------------
Value Created $16.8 million $12.5 million $4.3 million
--------------------------------------------------------------------------------------------------------------------------
% Value Created 65.4% 59.8% 24.6%
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
EAST REGION - FEATURED DEVELOPMENT COMMUNITY
---------------------------------------------------------------------------------------------------------------------
Community Woodland Park
---------------------------------------------------------------------------------------------------------------------
<S> <C>
City Herndon, VA
---------------------------------------------------------------------------------------------------------------------
Market Washington, D.C.
---------------------------------------------------------------------------------------------------------------------
Total Units 392
---------------------------------------------------------------------------------------------------------------------
Rental Rates 1,150 - $1,600
---------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 1,033 sq. ft.
---------------------------------------------------------------------------------------------------------------------
Lease-up Absorption 45 units/mo.
Rental Rates Ahead of 20.9%
Budget
---------------------------------------------------------------------------------------------------------------------
Stabilization Date 4Q 2000
---------------------------------------------------------------------------------------------------------------------
Total Investment $42.6 million
---------------------------------------------------------------------------------------------------------------------
Current Yield 12.3%
---------------------------------------------------------------------------------------------------------------------
Value Created $27.3 million
---------------------------------------------------------------------------------------------------------------------
% Value Created 64.1%
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
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EAST REGION - FEATURED FUTURE DEVELOPMENT START
---------------------------------------------------------------------------------------------------------------------
Community Archstone Van Dorn
---------------------------------------------------------------------------------------------------------------------
<S> <C>
City Fairfax County, VA
---------------------------------------------------------------------------------------------------------------------
Market Washington, D.C.
---------------------------------------------------------------------------------------------------------------------
Total Units 400
---------------------------------------------------------------------------------------------------------------------
Projected Rental Rates 1,150 - $1,600
---------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 1,046 sq. ft.
---------------------------------------------------------------------------------------------------------------------
Projected Stabilization Date 3Q 2003
---------------------------------------------------------------------------------------------------------------------
Total Investment $39.7 million
---------------------------------------------------------------------------------------------------------------------
</TABLE>
48
<PAGE>
NORTHEAST PRESENCE
Hosted by Richard Dickason, Investments; Gary Truitt, Development; Scott Shaull,
Development; and Henry Bunis, Acquisitions
Archstone entered the greater Northeast market in May 1999. Since that time, the
company has made significant progress in building a strategic presence here, and
now has 10 communities, representing 2,686 units in markets that include Boston
and the New York City metro area. The following communities were featured at the
exposition:
<TABLE>
<CAPTION>
NORTHEAST MARKET - FEATURED OPERATING COMMUNITIES
-----------------------------------------------------------------------------------------------------------------------
Community Village at Bear Hill The Arboretum Springdale Manor
-----------------------------------------------------------------------------------------------------------------------
City Waltham, MA Burlington, MA Canton, MA
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Market Boston Boston Boston
-----------------------------------------------------------------------------------------------------------------------
Date Acquired January 2000 May 1999 April 2000
-----------------------------------------------------------------------------------------------------------------------
Total units 324 312 227
-----------------------------------------------------------------------------------------------------------------------
Rental Rates $1,645 - $3,045 $1,545 - $2,350 $1,100 - $1,735
-----------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 1,208 sq. ft. 1,011 sq. ft. 1,170 sq. ft.
-----------------------------------------------------------------------------------------------------------------------
Total investment $77.7 million $46.3 million $32.9 million
-----------------------------------------------------------------------------------------------------------------------
Current Yield 8.6% 9.9% 8.9%
-----------------------------------------------------------------------------------------------------------------------
Value Created $15.5 million $14.8 million $6.1 million
-----------------------------------------------------------------------------------------------------------------------
% Value Created 19.9% 32.0% 18.5%
-----------------------------------------------------------------------------------------------------------------------
NORTHEAST MARKET - FEATURED DEVELOPMENT COMMUNITY
-----------------------------------------------------------------------------------------------------------------------
Community Archstone Stamford
-----------------------------------------------------------------------------------------------------------------------
City Stamford, Conn
-----------------------------------------------------------------------------------------------------------------------
Market New York City metro area
-----------------------------------------------------------------------------------------------------------------------
Total Units 160
-----------------------------------------------------------------------------------------------------------------------
Rental Rates 1,750 - $2.200
-----------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 888 sq. ft.
-----------------------------------------------------------------------------------------------------------------------
Construction Start 2Q 2000
-----------------------------------------------------------------------------------------------------------------------
Projected Stabilization Date 2Q 2002
-----------------------------------------------------------------------------------------------------------------------
Total Investment $30.8 million
-----------------------------------------------------------------------------------------------------------------------
Projected Stabilized Yield 9.5%
-----------------------------------------------------------------------------------------------------------------------
NORTHEAST MARKET - FEATURED FUTURE DEVELOPMENT START
-----------------------------------------------------------------------------------------------------------------------
Community Archstone Roosevelt Raceway
-----------------------------------------------------------------------------------------------------------------------
City Westbury, NY
-----------------------------------------------------------------------------------------------------------------------
Market New York City metro area
-----------------------------------------------------------------------------------------------------------------------
Total Investment $123.0 million
-----------------------------------------------------------------------------------------------------------------------
Projected value created at
stabilization $37.0 million
-----------------------------------------------------------------------------------------------------------------------
Project attributes . Approximately 22 miles from mid-town Manhattan and eight miles from
New York City
. Barriers to entry in the Long Island market are among the highest in the
country due to the lack of available land sites
. There are only five known existing comparable apartment communities on all of
Long Island
. The site is adjacent to approximately 1.0 million sq. ft. of retail
development including Target, Home Depot, Costco, Sony Theaters and
Office Depot
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
REVENUE MANAGEMENT AND ONLINE LEASE
Hosted by Dan Amedro, Chief Information Officer; Dana Hamilton, National
Operations; Dan Ogden, East Region Operations; and Dennis Littlewood,
Information Technology
Revenue Management
Based on techniques employed successfully in the airline and hospitality
industries, revenue management will enable Archstone to more accurately analyze
and forecast future customer demand to optimize pricing for its apartments.
Archstone approached Talus Solutions, a leading global provider of revenue
management software products and services, to develop a software solution that
would help Archstone establish leasing rates that would maximize revenues.
Archstone contributed to the business model design and functionality of Lease
Rent Optimizer(TM), which the revenue management software product is called, by
sharing its industry acumen and actual leasing data. This allowed Talus
Solutions to apply its highly successful revenue management concepts for the
first time to the apartment industry. Archstone began testing Lease Rent
Optimizer in November at its Denver communities and expects full portfolio
implementation by year-end 2001.
Expected benefits of Revenue Management include:
. Efficiently matches consumer buying behavior with available inventory to
maximize revenues
. Improves forecasting accuracy by retaining knowledge and predicting behavior
(move outs, renewals, etc.)
. Analyzes all supply and demand variables at levels of detail far too
difficult to compile manually
. Provides Archstone with a tool to:
. Monitor and manage field pricing actions
. Develop and measure effectiveness of new marketing programs and promotions
Online Lease
With Archstone's Online Lease, prospective Archstone residents will be able to
search for an apartment, review real-time availability and pricing, have their
credit approved and complete a lease transaction--all with a few clicks of the
mouse. Archstone believes it is the first company in the industry to offer such
a service to its customers. In addition to prospective residents, Archstone
associates will also use Online Lease, creating tremendous efficiencies by
virtually eliminating paperwork, easing on-site administrative duties, and
enhancing the company's consolidated reporting capabilities. Online Lease is
currently in testing at Archstone's Denver communities, and is expected to be
fully implemented portfolio-wide by the year-end 2001.
Expected benefits of Online Lease include:
. Significantly reduces paperwork at the communities
. Enhances data collection and consolidated management reporting
. Allows our customers another way to access us when--and how--they want:
. In person
. Through our Customer Service Connection
. Online 24/7
. Facilitates intra-Archstone transfers and lease renewals
. Streamlines Archstone's entire leasing process to make it as easy as possible
for our customers to do business with us--online and offline
. Reduces the leasing process to less than 15 minutes
THE ARCHSTONE BRAND
Hosted by Toni Lopez, East Region Operations
More than a name and a logo, the Archstone Brand ensures the consistent delivery
of superior customer service, improves customer satisfaction, unifies our
associates and enhances our operations. The exposition features all of
Archstone's marketing materials and advertising, as well as current Brand
Metrics that indicate the brand is making an impact among our customers:
50
<PAGE>
Brand metrics:
. Overall satisfaction rating of 88%*
. 86% of residents would recommend Archstone as a place to live*
. 706 residents took advantage of the Archstone Relocation Guarantee during the
quarter, bringing the year-to-date total to 1,912 residents
* based on 2,204 total comment card respondents in the 3Q 2000
ARCHPAY, ARCHPLAN AND ARCHCARD
Hosted by William Kell, Controller
Web-enabled accounts payable, budgeting/forecasting and purchase card reporting
systems allow Archstone's accounting group to work smarter, not harder. Benefits
of incorporating technology into the accounting function include:
ArchPay: Web-enabled accounts payable system
. Automated work flow speeds vendor payment
. Eliminates paper shuffling
. Provides immediate access to real-time cost and budget detail
. Centralized database enhances internal control and payment accuracy
. Estimated annual savings of $500,000
ArchPlan: Web-enabled budget forecasting tool
. Online national access facilitates budget communication and review
. Provides global assumption and mass-change capabilities
. Standardized reporting across the portfolio
. Instantaneous consolidation
. Forecasts reflect most current actual results
ArchCard: Web-enabled purchase card (P-Card) reporting system
. Online statements reduce paper flow, cost and labor expense
. Statements are available every week
. P-Card charges are automatically reconciled to the general ledger
. Enhanced capabilities encourage greater use of P-Cards, which lowers accounts
payable processing costs and speeds payment to vendors
51
<PAGE>
MAKING THE SEAL REAL
Hosted by Joseph Durzo, National Training and Development; and Thomas Klaess,
East Region Operations
Delivering on Archstone's brand promise--providing exceptional customer service
through its Seal of Service(SM) guarantees--is the cornerstone of our operations
strategy. Archstone helps its associates to deliver on this promise through
training tools and systems and customer support. In this portion of the
exposition, Archstone features its Service Training program, enhanced New-hire
Orientation, and Training Communities--a mentor-ship training program through
which new Archstone associates work in an operating community to give superior
customer service from the first day they interact with customers.
Also featured is Operations Simulation, a new training tool that coaches
Archstone's community managers to develop strategies, apply judgement, take
intelligent risks and respond quickly to change. Simulating a "virtual
dashboard" for community operations, the Simulation takes all the variables
under a community manager's control--such as staffing, marketing, and pricing--
and lets them experiment with different strategies to achieve the best financial
outcome. This program was launched in October 2000 and is being implemented
portfolio-wide.
TRS OPPORTUNITIES
Hosted by Jeffry Jones, President, AMERITON Properties Incorporated; Glenn Rand,
President, Archstone Management Services, Inc.; and Carrie Brower, General
Counsel
Taxable REIT Subsidiaries allow Archstone to extend its investment, development
and operations expertise to other apartment owners.
AMERITON Properties Incorporated
AMERITON Properties, Incorporated utilizes Archstone's national development,
acquisition and operating infrastructure to capitalize on short-term real estate
investment opportunities. AMERITON creates the potential for additional positive
earnings growth for Archstone. The following AMERITON communities were featured
at the exposition:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
AMERITON PROPERTIES - FEATURED COMMUNITIES
-----------------------------------------------------------------------------------------------------------------------
Community The Estates at Park Meadows Canyon Creek
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
City Denver, Colo. Austin, Tex.
-----------------------------------------------------------------------------------------------------------------------
Total Units 518 444
-----------------------------------------------------------------------------------------------------------------------
Avg. Unit Size 1,033 sq. ft. 874 sq. ft.
-----------------------------------------------------------------------------------------------------------------------
Projected stabilization date Q1 2002 Q1 2002
-----------------------------------------------------------------------------------------------------------------------
Expected Yield 10.2% 10.1%
-----------------------------------------------------------------------------------------------------------------------
Current Market Cap Rate 8.25% 8.5%
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
AMERITON PROPERTIES- FEATURED DISPOSITION
-----------------------------------------------------------------------------------------------------------------------
Community Gardens East
-----------------------------------------------------------------------------------------------------------------------
City Palm Beach, Fla.
-----------------------------------------------------------------------------------------------------------------------
Date Purchased March 1999
-----------------------------------------------------------------------------------------------------------------------
Purchase Price $28.3 million
-----------------------------------------------------------------------------------------------------------------------
Date Sold June 2000
-----------------------------------------------------------------------------------------------------------------------
Selling Price $32.5 million
-----------------------------------------------------------------------------------------------------------------------
Leveraged Internal Rate of Return 23.5%
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
Archstone Management Services, Inc.
Archstone Management Services, Inc. (AMS), announced in August 2000, marks
Archstone's entry into third-party property management. Providing another
platform to expand the Archstone brand without significant capital investments,
AMS also provides a parallel career track for Archstone and AMERITON associates
and extends the reach and scale of Archstone's technology and operating
initiatives, creating potential for positive impact on Archstone's earnings
growth. AMS is targeting private and institutional owners of apartment
properties, which can take advantage of the Archstone brand, Seal of Service(SM)
guarantees, recruiting, training and marketing resources. In addition, AMS can
provide its customers with customized financial reports and access to due
diligence, property tax appeal and capital expenditure management services--as
well as revenue management, creating a distinct competitive advantage.
52
<PAGE>
CREATING A RETAIL EXPERIENCE
Hosted by Capey Lester, East Region Operations
At Archstone Tyvola, a new development community in Charlotte, N.C., the
traditional community clubhouse has been transformed into a dynamic sales
environment that supports the Archstone brand, improves sales effectiveness and
provides operational efficiencies. Enhancing the aesthetics and utility of
clubhouse space for the same cost as a traditional leasing office and clubhouse,
Tyvola creates a self-sell sales experience that begins the moment a customer
walks in the door. Benefits of adopting a retail environment for apartment
leasing include:
The retail environment improves the sales process
. Facilitates the delivery of information that is critical to the customer's
decision-making process
. Maximizes marketing appeal
. Proactively integrates technology into the leasing office
. Supports Archstone's web-enabled Online Lease
Provides excellent brand recognition
. Reinforces the brand promise and service offering in a visceral manner
. Transforms brand attributes into a functional retail experience
. Cohesive use of colors, brand registration and marketing materials gives
Archstone a distinct look and feel, different from the competition
* * *
Footnotes:
(1) Total Investment. For development communities, represents the total
expected investment at completion; for operating communities, represents
the total expected investment plus planned capital expenditures.
(2) Yield. Net operating income divided by total investment. Net operating
income is calculated as rental revenues less rental expenses and real
estate taxes.
(3) Value Created. Defined here as market value, based on projected yields and
management's estimates of capitalization rates, less Total Investment.
(4) Lease-up. The phase during which newly constructed apartments are being
leased for the first time, but prior to the community become Stabilized.
(5) Absorption. The number of units leased at a new development community under
construction.
(6) Stabilization. The classification assigned to an apartment community that
has achieved 93% occupancy at market rents, and for which the
redevelopment, new management and new marketing programs (or development
and marketing in the case of a newly developed community) have been
completed. This stabilization process takes up to 12 months except for
major redevelopments, which could take longer.
# # #
53
