Financial Data and Key Metrics Changes - FFO for Q3 2023 was $0.64 per share, exceeding the midpoint of guidance by $0.01, with run rate FFO at $0.59 per share, up 7.3% year-over-year [21] - AFFO was $0.52 per share, reflecting a 4% year-over-year increase, with excess AFFO over dividends expected to be about $80 million for the full year [21][22] - Revenue increased by 6.8% year-over-year, while expenses rose by 8%, primarily due to timing [9] Business Line Data and Key Metrics Changes - New lease rates increased by 3.6%, renewals by 6%, and blended lease rates by 4.7% in Q3 [9] - The acquisition portfolio, now 20% of the business, saw revenue growth of 10.3% and net operating income growth of 15.2% [10] - Same-store net operating income grew by 6.3%, with an operating margin of 73.4% [9] Market Data and Key Metrics Changes - Occupancy rates improved from 94.6% in July to 96% in September, with October's average daily occupancy at 96.9% [11] - The company anticipates a strong start to 2024, with bad debt showing improvement and diversified portfolio mitigating pressures from new supply [11][12] Company Strategy and Development Direction - The company emphasizes a diversified portfolio across markets and price points, focusing on operational excellence and customer selection to enhance stability [5][6] - AIR is actively pursuing profitable acquisitions, having raised over $600 million through joint ventures and property sales [8][13] - The investment philosophy remains focused on generating positive spreads to the cost of capital and improving portfolio quality [14] Management's Comments on Operating Environment and Future Outlook - Management noted that interest rates have disrupted property pricing but created acquisition opportunities [5] - The company expects continued strong same-store NOI growth and a favorable outlook for 2024, despite potential headwinds from higher interest rates [38][39] - Management remains cautious about certain markets, particularly Northern California, but sees potential for recovery [48][56] Other Important Information - The company declared a quarterly cash dividend of $0.45 per share, reflecting an annualized yield of approximately 5.8% [22] - AIR's balance sheet is robust, with no debt maturities until Q2 2025 and $2.1 billion in available liquidity [20] Q&A Session Summary Question: Breakdown of NOI growth by properties - Management confirmed that 89% of GAV will be in the same-store pool next year, with expectations for growth from reacquired properties [25][26] Question: Impact of late fees on growth - Management acknowledged potential headwinds from reduced late fees but highlighted other initiatives to offset this [27][28] Question: Future joint venture activities - Management indicated that while joint ventures add complexity, they are necessary due to changes in capital markets and will continue to be a part of the strategy [29][30] Question: Guidance on same-store revenue - Management maintained that the midpoint of guidance is achievable, with expectations for blended lease rate growth remaining consistent [34][35] Question: Bad debt recovery efforts - Management emphasized their focus on resident quality and ongoing efforts to pursue delinquent accounts, with some success in small claims court [66][68]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-39686 (Apartment Income REIT Corp.) Commission File Number: 0-24497 (Apar ...

Financial Data and Key Metrics Changes - The second quarter FFO was $0.58 per share, up 13.7% year-over-year, adjusted for a non-recurring benefit from the Aimco note prepayment [24] - Revenue increased by 8.8% year-over-year, while expenses rose by 4.1%, leading to a net operating income (NOI) increase of 10.6% [13][24] - AIR's operating margin reached 74.2%, up 120 basis points from 2022, marking the highest second quarter margin in the company's history [13] Business Line Data and Key Metrics Changes - Same-store and acquisition portfolios contributed to property NOI growth at low double digits [6] - The AIR Edge model resulted in revenue growth of 19% and NOI growth of 30.5% for acquisitions from 2021, outperforming the same-store portfolio [14] - Customer retention rates reached a record 62%, with only 38% turnover in the past 12 months [12] Market Data and Key Metrics Changes - New lease rates increased by 6% and renewals by 7%, leading to a blended average increase of 6.5% [12] - The company noted that rental rates and inflation are dropping rapidly, with some new lease rents being negative [9] - The occupancy rate was reported at 94.6%, with expectations of a 2% increase by the end of the third quarter [15] Company Strategy and Development Direction - AIR aims to acquire properties at distressed prices due to a slowdown in transaction markets, leveraging abundant equity capital [10] - The company is focused on disciplined capital allocation, targeting high-quality properties that can benefit from the AIR Edge [21] - The Board is recommending amendments to strengthen shareholder rights, reflecting a shareholder-centric approach [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and capitalize on opportunities in the current market [21] - The normalization of the operating environment post-COVID is expected to enhance the effectiveness of AIR's operational strategies [16] - Management anticipates continued growth in property NOI and a strong leasing season in the second half of the year [27] Other Important Information - AIR has approximately $2.3 billion in available liquidity, significantly above the peer average [24] - The company declared a quarterly cash dividend of $0.45 per share, reflecting a yield of over 5% based on the current share price [29] Q&A Session Summary Question: Sequential increase in FFO growth - Management clarified that the sequential growth is primarily driven by incremental property NOI contributions from both same-store and acquisition portfolios [32] Question: Bad debt levels in California - Management noted that bad debt is being managed effectively, with many delinquent residents having left the portfolio, contributing to improved occupancy levels [37] Question: Contribution of fees to FFO - Management confirmed that the anticipated contribution of fees from services provided to third parties was included in the annual plan, with a breakdown of sustainable versus episodic contributions [44][46] Question: Lease rate assumptions for the second half of the year - Management indicated that blended lease rate assumptions for the second half are expected to be in the mid-four to five range to achieve revenue guidance [48]

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Apartment Income REIT Corp. (NYSE:AIRC) Q1 2023 Earnings Conference Call May 2, 2023 1:00 PM ET Company Participants Lisa Cohn - President and General Counsel, AIR Communities Terry Considine - CEO Keith Kimmel - President of Property Operations John McGrath - Co-CIO and Chairman of Investment Committee Paul Beldin - CFO Conference Call Participants Eric Wolfe - Citi Haendel St. Juste - Mizuho John Kim - BMO Capital Markets Chandni Luthra - Goldman Sachs John Pawlowski - Green Street Operator Welcome, and t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 APARTMENT INCOME REIT CORP. APARTMENT INCOME REIT, L.P. For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-39686 (Apartment Income REIT Corp.) Commission File Num ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-39686 (Apartment Income REIT Corp.) Commission file number 0-24497 (Apartment Income REIT, L.P.) APARTMENT INCOME REI ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) Presents unaudited condensed consolidated financial statements for AIR and its operating partnership, including balance sheets, income, and cash flows, with notes on policies and transactions [Apartment Income REIT Corp. Financial Statements](index=5&type=section&id=Apartment%20Income%20REIT%20Corp.%20Financial%20Statements) Provides core financial statements for AIR, highlighting increased net income from real estate dispositions and reduced total indebtedness in Q2 2022 Apartment Income REIT Corp. Balance Sheet Highlights (in thousands) | Metric | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Assets | $6,433,285 | $6,440,360 | | Total Liabilities | $4,065,130 | $4,421,835 | | Total Indebtedness | $3,368,457 | $3,743,286 | | Total AIR Equity | $2,132,449 | $1,813,025 | Apartment Income REIT Corp. Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $183,500 | $178,333 | $364,978 | $354,746 | | Gain on dispositions of real estate | $175,606 | $3,353 | $587,609 | $87,385 | | Net income (loss) attributable to AIR common stockholders | $196,722 | $(18,030) | $572,603 | $65,166 | | Net income (loss) per common share – diluted | $1.26 | $(0.12) | $3.66 | $0.43 | Apartment Income REIT Corp. Cash Flow Highlights (in thousands) | Metric | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $201,496 | $93,797 | | Net cash provided by (used in) investing activities | $574,667 | $(199,483) | | Net cash (used in) provided by financing activities | $(768,033) | $112,907 | [Apartment Income REIT, L.P. Financial Statements](index=11&type=section&id=Apartment%20Income%20REIT,%20L.P.%20Financial%20Statements) Presents financial statements for AIR Operating Partnership, largely identical to AIR Corp. except for the equity section, reflecting the partnership structure - The assets and liabilities of the AIR Operating Partnership are identical to those of AIR Corp. The main difference lies in the equity section, where the AIR Operating Partnership's balance sheet shows **'Partners' capital' of $2.29 billion**, while AIR Corp.'s shows 'Total equity'[30](index=30&type=chunk) AIR Operating Partnership Statement of Operations Highlights (in thousands, except per unit data) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Total Revenues | $183,500 | $178,333 | | Net income (loss) attributable to common unitholders | $209,471 | $(18,975) | | Net income (loss) per common unit – diluted | $1.26 | $(0.12) | [Notes to the Condensed Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and supplementary information for financial statements, covering accounting policies, major transactions, debt, leases, and segment reporting - During the three months ended June 30, 2022, the company acquired **three apartment communities with 1,001 homes** for a total consideration of **$472.3 million**[55](index=55&type=chunk)[56](index=56&type=chunk) - During the six months ended June 30, 2022, the company sold **twelve apartment communities with 2,050 homes** for gross proceeds of **$781.1 million**[59](index=59&type=chunk) - In Q2 2022, the company reached an agreement with Aimco to cancel existing master leases at four properties for a payment of **$200 million**[60](index=60&type=chunk) - In Q2 2022, the company issued **three tranches of guaranteed, senior unsecured notes totaling $400 million** at a weighted-average effective interest rate of **4.3%**. Total indebtedness as of June 30, 2022, was **$3.37 billion**[69](index=69&type=chunk)[72](index=72&type=chunk) - The company operates **two reportable segments**: Same Store, which includes **64 stabilized apartment communities**, and Other Real Estate, which includes **11 recently acquired or non-stabilized communities**[95](index=95&type=chunk)[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=26&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, strategic initiatives, and outlook, highlighting strong operational results, capital allocation, balance sheet improvements, liquidity, and non-GAAP measures [Executive Overview](index=27&type=section&id=Executive%20Overview) Outlines AIR's strategic objectives, highlighting strong Q2 operational performance, portfolio management activities, and significant balance sheet improvements - Strategic objectives include pursuing a simple business model, maintaining a high-quality diversified portfolio, improving property operations, maintaining an efficient cost structure, and sustaining a **low-leverage balance sheet**[110](index=110&type=chunk)[111](index=111&type=chunk) Q2 2022 Same Store Operational Highlights (YoY) | Metric | Change | | :--- | :--- | | Revenue | +11.6% | | NOI | +16.4% | | NOI Margins | 73.6% (+304 bps) | | New Lease Rents | +18.9% | | Renewal Rents | +11.1% | - The company uses a "paired trade" strategy to fund acquisitions, requiring the unlevered IRR on purchased communities to be at least **200 basis points higher** than on the communities sold[119](index=119&type=chunk) - During Q2 2022, AIR repurchased **2.9 million shares for $125 million** at an average price of **$42.93 per share**[125](index=125&type=chunk) - The company is transitioning from a secured to a primarily unsecured borrower, issuing **$400 million in senior unsecured notes** in Q2 2022 to repay borrowings on its revolving credit facility[127](index=127&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Provides detailed comparative analysis of operating results, highlighting increased net income from dispositions, strong Same Store NOI growth, and boosted interest income Same Store Proportionate Property NOI Change (YoY) | Period | Revenue Change (excl. ownership changes) | NOI Change (excl. ownership changes) | Key Drivers | | :--- | :--- | :--- | :--- | | **Q2 2022** | +11.6% | +16.4% | 750 bps increase in rental rates, 160 bps increase in ADO, 200 bps decrease in bad debt | | **6-Months 2022** | +10.4% | +14.1% | 620 bps increase in rental rates, 210 bps increase in ADO, 130 bps decrease in bad debt | - Interest income for the three and six months ended June 30, 2022, increased by **$10.0 million** and **$7.5 million**, respectively, primarily due to a **$12.9 million prepayment penalty** received from Aimco's partial note repayment[153](index=153&type=chunk) - The company recognized a **$175.6 million gain on dispositions** for the three months and **$587.6 million** for the six months ended June 30, 2022, which was the main driver for the increase in net income[156](index=156&type=chunk) [Non-GAAP Measures](index=34&type=section&id=Non-GAAP%20Measures) Defines and reconciles key non-GAAP financial measures like FFO and leverage ratios, showing a notable increase in Pro forma FFO per share in Q2 2022 Pro forma FFO per Share (Diluted) | Period | 2022 | 2021 | | :--- | :--- | :--- | | **Three Months Ended June 30** | $0.66 | $0.52 | | **Six Months Ended June 30** | $1.23 | $1.02 | - The company provides detailed reconciliations from GAAP Net Income to NAREIT FFO and Pro forma FFO, adjusting for items like real estate depreciation, gains on property sales, and other non-recurring costs[168](index=168&type=chunk) - The company targets a Net Leverage to Adjusted EBITDAre ratio **below 6.0x**. As of June 30, 2022, Proportionate Debt was calculated at **$2.76 billion** and Annualized Adjusted EBITDAre was **$464.1 million**[170](index=170&type=chunk)[174](index=174&type=chunk)[178](index=178&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's liquidity, capital management, and cash flow, highlighting $924.5 million in liquidity, debt maturity extensions, and increased operating cash flow - As of June 30, 2022, total available liquidity was **$924.5 million**, which included **$840.9 million** of available capacity under the revolving credit facility[179](index=179&type=chunk) - The weighted-average remaining term to maturity for total leverage was **6.9 years** with a weighted-average interest rate of **3.8%**. Only **7% of debt** will reprice before 2025, after considering interest rate swaps[185](index=185&type=chunk) - For the six months ended June 30, 2022, net cash provided by operating activities increased by **$107.7 million** year-over-year to **$201.5 million**, due to favorable working capital timing and stronger property performance[188](index=188&type=chunk) Capital Additions (in thousands) | Category | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Capital enhancements | $44,002 | $32,778 | | Capital replacements | $13,335 | $13,916 | | Initial capital expenditures | $12,806 | $1,763 | | **Total Capital Additions** | **$89,659** | **$54,230** | [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Outlines the company's primary market risk as interest rate risk from $1.04 billion in variable-rate debt, mitigated by swaps, with a 100 bps change impacting annual interest by $2.1 million - The company's primary market risk is interest rate risk from its variable-rate debt, which totaled approximately **$1.04 billion** as of June 30, 2022 (**$800.0M term loans**, **$88.5M property debt**, and **$148.0M on the revolving credit facility**)[195](index=195&type=chunk) - After considering the effect of interest rate swaps, a **100 basis point change** in the floating interest rate is estimated to increase or decrease annual interest expense by **$2.1 million**[195](index=195&type=chunk) [Controls and Procedures](index=39&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management confirms the effectiveness of disclosure controls and procedures for AIR and its operating partnership as of June 30, 2022, with no material changes in internal controls - Management, including the CEO and CFO, evaluated and concluded that the disclosure controls and procedures for both AIR and the AIR Operating Partnership were **effective** as of June 30, 2022[198](index=198&type=chunk)[199](index=199&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the second quarter of 2022[199](index=199&type=chunk)[200](index=200&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Risk Factors](index=41&type=section&id=ITEM%201A.%20RISK%20FACTORS) States no material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - There have been **no material changes** from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[202](index=202&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECU RITIES%20AND%20USE%20OF%20PROCEEDS) Details AIR's Q2 2022 equity activities, including repurchasing 2.9 million shares for $125 million and no unregistered sales AIR Share Repurchases (Q2 2022) | Total Shares Repurchased | Average Price Paid per Share | Total Cost | | :--- | :--- | :--- | | 2,911,761 | $42.93 | ~$125 million | - The AIR Operating Partnership redeemed **15,680 common OP units** for cash during the three months ended June 30, 2022[206](index=206&type=chunk)[207](index=207&type=chunk) [Exhibits](index=43&type=section&id=ITEM%206.%20EXHIBITS) Provides a list of exhibits filed with Form 10-Q, including legal and financial documents, certifications, and iXBRL data files - The report includes a list of filed exhibits, such as the Note and Guarantee Agreement, amendments to the Master Leasing Agreement with Aimco, CEO/CFO certifications, and iXBRL data files[213](index=213&type=chunk)[214](index=214&type=chunk) [Signatures](index=45&type=section&id=Signatures) Contains formal signatures of authorized officers for Apartment Income REIT Corp. and AIR Operating Partnership, dated July 29, 2022 - The report was signed on **July 29, 2022**, by Paul Beldin, Executive Vice President and Chief Financial Officer, on behalf of both Apartment Income REIT Corp. and Apartment Income REIT, L.P.[217](index=217&type=chunk)[218](index=218&type=chunk)