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 For the quarterly period ended March 31, 2025 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: 1-13232 (Apartment Investment and Management Company) Commission File Number: 0-56223 (Aimco OP L.P.) Apartment Investment and Mana ...

Financial Results CEO Commentary Wes Powell, Aimco President and Chief Executive Officer, comments: "We continue to see strong demand for rental housing across the Aimco portfolio. "At our stabilized properties, primarily located in suburban Boston and Chicago, average revenue per home is now greater than $2,300 per month and effective rental rate growth accelerated in April, increasing 5.8% over the prior lease. In addition, 2025 average daily occupancy has remained strong through April at greater than 97% ...

Financial Reporting and Analysis - Aimco and Aimco Operating Partnership provide separate consolidated financial statements to clarify their financial positions and performance metrics [17]. - The combined Management's Discussion and Analysis section includes discrete information relevant to each entity, enhancing clarity and reducing redundancy [18]. - The report emphasizes the importance of reviewing financial statements and risk factors to understand potential uncertainties affecting performance [27]. Future Plans and Economic Conditions - Aimco's future plans include eliminating certain near-term debt maturities and forming joint ventures to enhance capital efficiency [24]. - The company anticipates potential adverse economic conditions, including rising interest rates and inflation, which may impact occupancy and rental rates [25]. Compliance and Performance Metrics - Aimco's qualification as a real estate investment trust depends on compliance with complex provisions of the Internal Revenue Code, affecting operational results and distribution levels [26]. - Aimco's management uses certain non-GAAP financial measures to provide additional insights into operational performance, which are reconciled to GAAP measures [29].

Financial Performance - Aimco's net operating income (NOI) for 2024 was $99 million, reflecting a 4.5% increase compared to 2023[4]. - Revenue for the fourth quarter of 2024 was $35.5 million, a 3.5% increase year-over-year, with average monthly revenue per apartment home rising to $2,307[25]. - Rental and other property revenues for Q4 2024 were $54,171,000, an increase of 9.8% from $49,352,000 in Q4 2023[61]. - Total revenues for the real estate operations reached $208,679,000 for the twelve months ended December 31, 2024, compared to $186,995,000 for the same period in 2023, reflecting a year-over-year increase of approximately 11.0%[110]. - The total stabilized operating revenue for the twelve months ended December 31, 2024, was $140,099,000, up from $134,078,000 in 2023, indicating a growth of about 4.0%[110]. - The total net operating income (NOI) for stabilized operating properties was $35,539,000 for the three months ended December 31, 2024, compared to $34,339,000 in 2023, showing a growth of approximately 3.5%[110]. Expenses and Income - Aimco's expenses increased by 4.4% year-over-year in 2024, primarily due to non-annual real estate tax reassessments[12]. - Total operating expenses for Q4 2024 were $54,088,000, up 19.7% from $45,171,000 in Q4 2023[61]. - The total expenses for real estate operations were $90,984,000 for the twelve months ended December 31, 2024, compared to $73,712,000 in 2023, marking a rise of around 23.3%[110]. - Aimco's interest expense for 2025 is projected to be between $63 million and $65 million, an increase from $57 million in 2024[43]. Shareholder Returns - The company plans to return approximately $300 million in net proceeds from the sale of the Brickell Assemblage to stockholders[14]. - Aimco's Board declared a special cash dividend of $0.60 per share, paid on January 31, 2025[30]. - A special cash dividend of $0.60 per share was declared in December 2024, to be distributed from net proceeds of asset sales[93]. Sales and Acquisitions - Aimco sold The Hamilton and a partial interest in the 3333 Biscayne Boulevard site for a total of $204 million, generating approximately $90 million in net proceeds[7]. - In the fourth quarter, Aimco sold interests in two real estate investments for $203.8 million and returned approximately $90 million of capital to stockholders[27]. - Aimco's total partnership acquisitions in 2024 included a 10% ownership increase in Upton Place, valued at $19.1 million[85]. Debt and Leverage - Aimco's net leverage as of December 31, 2024, was $1,067.7 million, with total non-recourse fixed rate debt of $693.993 million[29]. - Total indebtedness decreased to $1,070,660,000 in Q4 2024 from $1,147,741,000 in Q4 2023, a reduction of 6.7%[63]. - Aimco's total non-recourse debt stands at $1,079,952,000 with a weighted average interest rate of 5.49% and a maturity of 5.3 years[65]. Development Projects - Aimco plans to invest between $50 and $60 million in its active development project in 2025, down from $94 million in 2024[38]. - Aimco's active development projects include Upton Place in Washington, D.C., with 689 units and a projected stabilization in Q4 2026[75]. - The total estimated direct costs of Aimco's development portfolio amount to $878.1 million, with an estimated stabilized NOI of $61.6 million[75]. - The company has multiple projects scheduled to start construction in 2025, including One Edgewater in Miami with 533,000 sq ft and 204 units[80]. Market Performance - Average daily occupancy in the fourth quarter of 2024 reached 97.9%, up 50 basis points year-over-year[25]. - The median annual household income of new residents in the fourth quarter of 2024 was $130,000, resulting in a rent-to-income ratio of 20.9%[25]. - Aimco's Chicago market saw a 13.0% revenue growth in Q4 2024 compared to Q4 2023[83]. - New York City's average revenue per apartment home decreased by 4.3% in Q4 2024 compared to Q4 2023[83]. Financial Position - Aimco's balance sheet remains strong with no debt maturities prior to June 2027 and an average duration of 6.8 years for fixed-rate property loans[8]. - Cash and cash equivalents increased to $141,072,000 in Q4 2024 from $122,601,000 in Q4 2023, a rise of 15.0%[63]. - Aimco's net asset value is calculated as the market value of assets less liabilities, with a focus on maintaining a strong balance sheet[102].

Core Insights - Aimco reported strong operational results for 2024, with a net operating income (NOI) of $99 million, reflecting a 4.5% increase from 2023, driven by disciplined capital allocation and strategic transactions [3][8][10] Financial Results - In 2024, Aimco's revenues increased by 4.5% year-over-year, while expenses rose by 4.4%, resulting in stable NOI growth [3][15] - The average daily occupancy rate reached 97.9% in Q4 2024, with revenue per home increasing by 2.9% year-over-year [3][19] - Aimco's net loss attributable to common stockholders was $(0.75) per share for the year, an improvement from $(1.16) in 2023 [8][56] Development and Redevelopment - Aimco completed construction on three multifamily assets, adding 933 residential units and over 100,000 square feet of commercial space, with total direct costs expected to be $10 million lower than initially projected [4][20] - The company commenced construction on a $240 million project in Miami's Edgewater neighborhood, fully financing the venture [5][23] Investment and Disposition Activity - Aimco sold The Hamilton and its interest in the 3333 Biscayne Boulevard site for a combined $204 million, generating approximately $90 million in net proceeds [6][23] - The company entered into an agreement to sell the Brickell Assemblage for $520 million, with expected net proceeds of $300 to $320 million after debt and tax liabilities [13][23] Balance Sheet and Financing Activity - Aimco maintained a solid balance sheet with no debt maturities before June 2027, and refinanced its Upton Place asset with a $215 million bridge loan at a fixed interest rate of 6.39% [7][24] - As of December 31, 2024, Aimco had access to $321 million in liquidity, including $141.1 million in cash [22][24] 2025 Outlook - For 2025, Aimco projects revenue growth of 2.5% to 3.5% and NOI growth of 1% to 3%, with expenses expected to rise by 5% to 6% [11][33] - The company plans to stabilize occupancy at three recently completed developments and continue construction at its active project in Miami [34][35] Commitment to Enhance Stockholder Value - Aimco's Board of Directors is exploring strategic alternatives to unlock shareholder value, including potential sales or mergers [41][42] - The company declared a special cash dividend of $0.60 per share, distributing net proceeds from asset sales to stockholders [26][9]

Group 1 - Aimco plans to report its 2024 fourth quarter and full year results on February 24, 2025, after market close [1] - Aimco's earnings release will be accessible in the Investor Relations section of its website [1] - Aimco is a diversified real estate company focused on value add and opportunistic investments in the U.S. multifamily sector [2] Group 2 - Aimco's mission is to enhance real estate investment outcomes through human capital, creating substantial value for investors, teammates, and communities [2] - Aimco is traded on the New York Stock Exchange under the ticker AIV [2] - More information about Aimco can be found on its official website [2]

Core Viewpoint - Aimco is taking significant steps to simplify its holdings and unlock shareholder value through the sale of the Brickell Assemblage in Miami for a gross price of $520 million, with plans to return most of the net proceeds to shareholders [1][2]. Group 1: Transaction Details - Aimco has entered into an agreement to sell properties at 1001 and 1111 Brickell Bay Drive for $520 million, with a non-refundable deposit of $38 million received from the buyer [1]. - The transaction is subject to certain closing conditions and extension options, and upon completion, Aimco will focus on a portfolio of over 5,200 apartment homes and nearly 1,000 newly constructed homes expected to stabilize within 12 months [2]. Group 2: Operational Performance - Since the spin-off of Apartment Income REIT Corp. in December 2020, Aimco has achieved an average annual same-store NOI growth of over 7.6% and completed more than $1.3 billion in development projects [3]. - Aimco has improved corporate governance and, pro forma for the Brickell sale, will have closed over $1.7 billion in asset sales, returning substantial capital to shareholders, including a special dividend scheduled for January 31, 2025 [3]. Group 3: Strategic Initiatives - The Aimco Board of Directors is exploring additional alternatives to maximize shareholder value, which may include asset sales, a sale or merger of the company, and reducing exposure to development activity [5]. - The strategic process is overseen by an independent Investment Committee, with Morgan Stanley & Co. LLC serving as financial advisor [5].

Core Insights - The article discusses the investment landscape in the real estate sector, particularly focusing on the performance and potential of various real estate investment trusts (REITs) and related securities [2][3]. Group 1: Company Insights - Hoya Capital Research & Index Innovations is affiliated with Hoya Capital Real Estate, which provides investment advisory services and focuses on publicly traded securities in the real estate industry [2]. - The commentary provided by Hoya Capital is intended for informational and educational purposes, emphasizing that it should not be considered as investment advice [2]. Group 2: Industry Insights - The real estate industry is highlighted as having unique risks associated with investments in real estate companies and housing industry companies, as well as in ETFs [2]. - The article notes that past performance of market data does not guarantee future results, indicating the inherent volatility and unpredictability of the real estate market [3].

Core Points - Aimco has successfully closed the sale of its interest in two investments in Miami, Florida for a gross price of $204 million [1] - The company retired $110 million of debt with a weighted average rate of 8.6% and received net proceeds of approximately $90 million from the sale [1] - Aimco plans to return the net proceeds to shareholders, declaring a special cash dividend of $0.60 per share to be paid on January 31, 2025 [2] Company Insights - Aimco's President and CEO highlighted the sales as a significant milestone, emphasizing the value created through the redevelopment of The Hamilton and the planning of 3333 Biscayne Boulevard [3] - Aimco focuses on value-add and opportunistic investments in the U.S. multifamily sector, aiming to enhance outcomes through its human capital [4]

Financial Performance - Rental and other property revenues for the three months ended September 30, 2024, were $53,158,000, up 11.5% from $47,701,000 in the same period of 2023[13] - Total operating expenses rose to $54,632,000 for the three months ended September 30, 2024, compared to $44,330,000 in the prior year, marking an increase of 23.2%[13] - Net loss attributable to Aimco for the three months ended September 30, 2024, was $(21,936,000), compared to a loss of $(2,260,000) in the same period of 2023[13] - The company reported a net income (loss) per common share – basic of $(0.16) for the three months ended September 30, 2024, compared to $(0.02) in the same period of 2023[13] - The net loss for the three months ended September 30, 2024, is $23,724,000, compared to a net income of $447,000 for the same period in 2023[14] - Net income for the nine months ended September 30, 2024, was a loss of $88,364,000 compared to a loss of $3,952,000 in 2023[16] - Total revenues for the nine months ended September 30, 2024, increased to $154,508,000 from $137,643,000 in 2023, representing a growth of approximately 12.2%[18] - Operating expenses for the nine months ended September 30, 2024, rose to $156,092,000, up from $130,241,000 in 2023, indicating an increase of about 20%[18] Assets and Liabilities - Total real estate assets increased to $2,311,637,000 as of September 30, 2024, compared to $2,214,623,000 at December 31, 2023, reflecting a growth of 4.4%[12] - Total liabilities increased to $1,600,216,000 as of September 30, 2024, from $1,497,865,000 at December 31, 2023, representing a rise of 6.8%[12] - Cash and cash equivalents decreased to $82,620,000 as of September 30, 2024, down from $122,601,000 at December 31, 2023[12] - Total equity decreased to $292,047,000 as of September 30, 2024, from $419,978,000 at December 31, 2023, indicating a decline of 30.4%[12] - Total assets decreased to $2,067,572,000 as of September 30, 2024, from $2,089,475,000 at the end of 2023, a decline of about 1%[17] Shareholder Information - Weighted-average common shares outstanding decreased to 136,749 for the three months ended September 30, 2024, from 143,299 in the same period of 2023[13] - Common stock repurchased during the nine months ended September 30, 2024, totaled $35,741,000, indicating a significant reduction in outstanding shares[15] - The number of common shares issued decreased from 141,995,000 as of September 30, 2023, to 136,914,000 as of September 30, 2024[14] - The weighted-average common units outstanding decreased to 146,683 for the nine months ended September 30, 2024, from 152,199 in 2023, indicating a reduction of about 3.6%[18] Cash Flow and Investments - Cash provided by operating activities was $46,156,000 for the nine months ended September 30, 2024, compared to $42,551,000 in 2023, reflecting a growth of approximately 3.8%[16] - The company reported a net cash used in investing activities of $114,359,000 for the nine months ended September 30, 2024, compared to $264,124,000 in 2023, showing a significant reduction in cash outflow[16] - The company recognized a non-cash impairment charge of $47.0 million on its investment in IQHQ during the second quarter of 2024, leading to unrealized losses of $0.6 million and $48.1 million for the three and nine months ended September 30, 2024[135] Real Estate Operations - Aimco's portfolio includes 5,600 apartment homes across 21 consolidated stabilized operating properties as of September 30, 2024[25] - Total lease income for the three months ended September 30, 2024, was $51.053 million, a 7.8% increase from $47.577 million in the same period of 2023[82] - Fixed lease income for the nine months ended September 30, 2024, reached $139.096 million, compared to $127.150 million in 2023, reflecting a year-over-year increase of 9.4%[82] - The company operates 21 residential apartment communities with 5,600 stabilized apartment homes as of January 1, 2023[90] Development and Redevelopment - The Development and Redevelopment segment consists of 10 properties, including two under construction and two substantially completed as of September 30, 2024[89] - Capital investment in development and redevelopment activities for the three months ended September 30, 2024, was $29.6 million, a decrease of 60.3% compared to $74.4 million in the same period of 2023[116] - The company has a pipeline of future value-add opportunities in Southeast Florida, the Washington, D.C. Metro Area, and Colorado's Front Range[115] Tax and Compliance - The company recognized an income tax benefit of $3.8 million for Q3 2024, down from $6.2 million in Q3 2023[47] - Aimco is required to distribute at least 90% of its taxable income to holders of its Common Stock as a REIT[173] - There were no changes in Aimco's internal control over financial reporting during the quarter ended September 30, 2024[163] Miscellaneous - Aimco secured a $55.5 million preferred equity commitment for a luxury waterfront rental development in Miami, Florida[35] - The company had remaining commitments for construction-related contracts of $163.7 million[58] - Aimco's cash and cash equivalents, along with restricted cash, totaled $110.4 million as of September 30, 2024[162]