Core Insights - 2nd Market Capital Advisory Corporation specializes in the analysis and trading of real estate securities, with a focus on REITs [1] - The firm has over 50 years of collective experience in the industry, emphasizing fiduciary responsibility [1] - Portfolio Income Solutions, led by the firm, provides access to actively managed portfolios and extensive analysis for REIT investment ideas [1] Company Overview - Simon Bowler serves as the Chief Communications Officer at 2nd Market Capital Advisory Corporation [1] - The company operates as a Wisconsin-registered investment advisor [1] - The investment strategy includes utilizing discounts to fair value, price dislocations, and arbitrages to enhance return potential [1]

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, 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 Management ...

Asset Sales and Dispositions - Aimco closed $1.26 billion in strategic asset sales during 2025, including a suburban Boston property for $250 million and the Brickell Assemblage for $520 million[11]. - Aimco has ten properties under contract to sell for approximately $510 million, with expected closings in Q1 2026[8]. - The company plans to market all remaining stabilized properties and development assets by mid-2026[19]. - Aimco disposed of the Suburban Boston portfolio for gross proceeds of $740 million, with a cap rate of 6.6%[70]. - The total property dispositions for 2025 amounted to $1,260 million, with net sales proceeds after debt repayment of $399 million[70]. - Gross sales price for assets sold in 2026 is estimated at $177.5 million, with an additional $501.5 million for assets under contract[72]. - Non-recourse property debt, net, is estimated at $(411.3) million for assets sold in 2026[72]. Financial Performance - Net income attributable to common stockholders per share was $2.08 for Q4 2025 and $3.87 for the full year 2025[12]. - Aimco reported a net income of $318,664,000 for Q4 2025, compared to a loss of $7,637,000 in Q4 2024[52]. - Net income attributable to Aimco for Q4 2025 was $300,517,000, a substantial recovery from a loss of $9,820,000 in Q4 2024[49]. - Income before income tax benefit for the three months ended December 31, 2025, was $101,892,000, compared to a loss of $17,964,000 for the same period in 2024[98]. - Total rental income for the twelve months ended December 31, 2025, was $138,486,000, a slight increase from $137,700,000 in 2024[99]. - Total Property NOI for the twelve months ended December 31, 2025, was $70,131,000, reflecting an increase from $69,623,000 in 2024[99]. Distributions and Shareholder Returns - Aimco expects to distribute between $5.75 and $7.10 per share in total liquidating distributions, with an initial distribution of $1.45 per share scheduled for March 2026[10]. - Aimco announced an initial liquidating distribution of $1.45 per share, totaling approximately $220 million, to be paid on March 13, 2026[33]. - In 2025, Aimco paid $2.83 per share in special cash dividends[33]. - Estimated total distributions for 2Q 2026 are projected to be between $5.75 and $7.10 per share[72]. - Expected distribution from remaining stabilized assets is projected to be between $0.25 and $0.30 per share[72]. - Estimated distribution from land holdings, development, and lease-up properties is projected to be between $2.30 and $3.30 per share[72]. - Cash and other assets are estimated to be valued between $135.8 million and $165.9 million, with an expected distribution from these assets between $0.90 and $1.10 per share[72]. Operational Metrics - Property Net Operating Income (NOI) from Stabilized Operating Properties was $9.9 million in Q4 2025, up 0.5% year-over-year, and $38.0 million for the full year, down 0.3% year-over-year[12]. - Average Daily Occupancy for Stabilized Operating Properties was 96.9% in Q4 2025, down from 97.9% year-over-year[27]. - Aimco's revenue from Stabilized Operating Properties increased by 1.8% year-over-year to $14.5 million in Q4 2025[27]. - Average revenue per apartment home in Q4 2025 was $2,509, a slight increase from $2,448 in Q4 2024[67]. - Aimco's occupancy rate for stabilized properties was 96.9% in Q4 2025, compared to 97.9% in Q4 2024[67]. - The company reported a 36.1% increase in NOI for held-for-sale properties, reaching $1,398 million in Q4 2025[67]. Debt and Financial Health - Aimco's total cash on hand as of December 31, 2025, was $394.9 million, with an additional $11.7 million in restricted cash[32]. - The company plans to retire approximately $110 million of construction debt and preferred equity borrowings as part of its ongoing strategy[18]. - Aimco's total indebtedness decreased to $738,625,000 in 2025 from $829,666,000 in 2024, demonstrating effective debt management[51]. - Aimco's total non-recourse debt amounts to $3.612 billion, with property debt secured by assets held for sale totaling $746.293 million[54]. - Cash and cash equivalents increased significantly to $394,891,000 in 2025 from $141,072,000 in 2024, enhancing liquidity[51]. Development Projects - The company has three active development projects totaling 1,023 units, with Upton Place in Washington, D.C. having a pre-leased occupancy of 76%[64]. - Aimco's development land includes 20.8 acres for future projects, with significant parcels located in Fort Lauderdale and Aurora, Colorado[61]. - The estimated stabilization for Upton Place is projected for 2Q 2026, while Strathmore Square is expected to stabilize in 2Q 2027[64]. - Projected annual stabilized Property NOI for development and lease-up properties is estimated to be between $33.9 million and $36.8 million for 2027[72]. - Aimco expects to stabilize NOI for the 34th Street development at $18.0 million by 2029[74]. Share Repurchase and Equity - Since the start of 2022, Aimco has repurchased 14.5 million shares at an average price of $7.53 per share[33]. - In Q4 2025, Aimco Operating Partnership redeemed 12,493 units of equity securities for cash at a weighted average price of $7.43 per unit[33]. - For the year 2025, Aimco redeemed 76,383 units for cash at a weighted average price of $8.48 per unit[33]. - The total shares and potentially dilutive share equivalents outstanding as of December 31, 2025, is 150.982 million[55]. - Total shares, units, and maximum dilutive share equivalents amount to 151.4 million[72]. Impairments and Expenses - The company recorded an impairment on real estate of $90,082,000 in Q4 2025, impacting overall profitability[49]. - Total operating expenses surged to $131,125,000 in Q4 2025, compared to $46,646,000 in Q4 2024, reflecting a significant increase due to impairment charges[49]. - Property operating expenses for the three months ended December 31, 2025, totaled $17,163,000, compared to $18,466,000 in 2024, indicating a reduction of about 7%[99]. - Impairment on real estate for the twelve months ended December 31, 2025, was $147,456,000, with no impairment recorded in the previous year[98]. - Interest expense for the twelve months ended December 31, 2025, was $59,429,000, consistent with $59,364,000 in 2024[98]. - The company reported a credit loss expense of $22,899,000 for the three months ended December 31, 2025, with no such expense in the prior year[98]. Strategic Plans - Aimco's strategic liquidation plan was approved by common stockholders on February 6, 2026, aimed at maximizing stockholder returns[38]. - The company plans to sell all assets in an orderly fashion and return net proceeds to stockholders after settling liabilities[40]. - Aimco intends to maintain its listing on the New York Stock Exchange, subject to compliance with listing requirements[36]. - The company is focused on diversifying its real estate portfolio across price points, geography, and opportunity, with ongoing developments and stabilized operations[102].

Core Insights - Aimco announced its fourth quarter results for 2025 and updates on its Plan of Sale and Liquidation, which was approved by stockholders on February 6, 2026 [1][3]. Financial Performance - Aimco's net income attributable to common stockholders per share was $2.08 for Q4 2025 and $3.87 for the full year 2025 [8]. - Property Net Operating Income (NOI) from stabilized properties was $9.9 million in Q4 2025, a 0.5% increase year-over-year, while full-year NOI was $38.0 million, down 0.3% year-over-year [8][21]. - Aimco sold $1.26 billion in real estate assets during 2025, including significant sales such as a suburban Boston property for $250 million and the Brickell Assemblage for $520 million [8][16]. Asset Sales and Liquidation Plan - In 2026, Aimco has already closed the sale of three properties for approximately $178 million and has ten properties under contract for about $510 million, with most expected to close in Q1 2026 [4][10]. - The initial liquidating distribution of $1.45 per share was declared on February 9, 2026, to be paid on March 13, 2026 [5][29]. - Total estimated liquidating distributions to stockholders are projected to be between $5.75 and $7.10 per share, considering ongoing sales and market conditions [6][17]. Strategic Focus - Aimco's strategic plan emphasizes the orderly sale of remaining assets to maximize stockholder returns, which have outperformed the FTSE NAREIT Equity Apartments Index over the past five, three, and one years [3][14]. - The company is actively marketing its remaining stabilized properties and plans to bring all land, development, and lease-up properties to market by mid-2026 [4][14]. Development Projects - Aimco's high-rise development project, 34 Street in Miami, is on schedule and budget, with initial occupancy expected in Q3 2027 [9][27]. - The company is also completing the lease-up of two multifamily communities in Washington, D.C., with significant occupancy rates reported [27]. Balance Sheet and Financing - As of December 31, 2025, Aimco had $394.9 million in cash and $11.7 million in restricted cash, with a focus on maintaining a strong balance sheet during the liquidation process [26][49]. - Aimco's net leverage was reported at $449.5 million, reflecting its financial strategy during the asset liquidation phase [25].

Core Viewpoint - Aimco plans to report its fourth quarter 2025 earnings on March 2, 2026, after market close, following the approval of its Plan of Sale and Liquidation aimed at maximizing shareholder returns [1]. Group 1: Earnings Announcement - Aimco will release its fourth quarter 2025 results on March 2, 2026, after the market closes [1]. - The earnings release will be accessible in the Investor Relations section of Aimco's website [1]. Group 2: Strategic Liquidation - On February 6, 2026, Aimco's common stockholders approved the Plan of Sale and Liquidation [1]. - The strategic liquidation is intended solely to maximize shareholder returns [1]. - Aimco plans to sell all assets in an orderly manner and return net proceeds from asset sales and cash on hand to stockholders, after settling liabilities and creating necessary reserves [1]. Group 3: Company Background - Prior to the liquidation plan, Aimco focused on real estate investments, particularly in the multifamily sector within targeted U.S. markets [1]. - The company aimed to enhance outcomes through human capital and create substantial value for investors, teammates, and communities [1].

Core Insights - The REIT sector started 2026 with an average total return of +1.09% in January, underperforming the S&P 500 (+1.4%) and Dow Jones Industrial Average (+1.8%), but outperforming the NASDAQ (+1.0%) [1] - Large-cap REITs saw a widening spread in FFO multiples compared to small-cap REITs, with large caps at 16.4x and small caps at 12.8x, indicating a 28.1% premium for large-cap REITs [1] - 63.46% of REITs achieved a positive total return in January, marking a significant improvement from the previous year's -1.29% return [9] REIT Performance - REITs averaged a total return of +1.09% in January 2026, with large caps (+2.35%) trailing small caps (+3.27%) and mid caps (+2.65%) [3] - The Vanguard Real Estate Index Fund ETF (VNQ) outperformed the average REIT with a return of +2.61% [1] - The average P/FFO for the REIT sector increased from 13.4x to 13.6x during January, with 72.2% of property types experiencing multiple expansion [4] Property Type Performance - Two-thirds of REIT property types had positive returns in January, with a notable spread of 23.59% between the best (Land +15.36%) and worst (Single Family Housing -8.24%) performing types [4] - Data Centers (+8.49%) and Land (+15.36%) were the top performers, while Office (-7.24%) and Single Family Housing (-8.24%) lagged [4][5] Individual Securities - City Office REIT, Inc. was taken private at $7.00/share, while Plymouth Industrial REIT, Inc. was acquired at $22.00/share [7][8] - Gladstone Land Corporation (+22.45%) and Farmland Partners Inc. (+20.56%) led the sector in January [8] - Office Properties Income Trust (OPITQ) saw a drastic decline of -96.09% following a Chapter 11 bankruptcy filing [9] Dividend Yield Insights - High dividend yields remain a key attraction for investors in the REIT sector, with many REITs trading below their NAV [13] - Innovative Industrial Properties, Inc. leads with a dividend yield of 15.7%, followed by NewLake Capital Partners at 11.4% [15]

Core Insights - Apartment Management and Investment Company (AIV), also known as AIMCO, has undergone significant updates since the last profile in October [1] Company Updates - The article serves as an update on AIMCO, reflecting on developments that have occurred in the months following the initial analysis [1]

Core Viewpoint - Aimco's stockholders have overwhelmingly approved the Plan of Sale and Liquidation proposed by the Board of Directors, indicating strong support for the company's strategic direction [1] Group 1: Liquidation and Distributions - Following the approval of the Plan, the Board declared a liquidating distribution of $1.45 per share, funded by the net proceeds from the December 2025 sale of Aimco's Brickell Assemblage, to be paid on March 13, 2026, to stockholders of record as of February 27, 2026 [2] - Aimco expects to distribute between $0.85 and $0.95 per share during the second quarter, contingent on the successful closing of properties currently under contract, after accounting for debt and transaction costs [3] Group 2: Property Sales and Strategy - Aimco has entered into agreements with four buyers to sell 12 properties for a gross price of approximately $680 million, with $30 million in non-refundable deposits already secured [2] - The company is focused on the efficient sale of its holdings to maximize stockholder value and plans to market its remaining stabilized properties and all land, development, and lease-up properties by mid-2026 [4] Group 3: Company Overview - Aimco is a diversified real estate company primarily targeting value-add and opportunistic investments in the U.S. multifamily sector, aiming to create substantial value for investors and communities [7]

Core Viewpoint - Aimco announced the federal income tax allocation of its 2025 distributions for Class A Common Stock, detailing the distribution amounts and their tax implications [1][2]. Distribution Summary - The distribution per share for the record date of January 14, 2025, is $0.60, with a total capital gain distribution of 100% and an unrecaptured Section 1250 gain of 33.7355% [1]. - For the record date of September 30, 2025, the distribution per share is $2.23, also with a total capital gain distribution of 100% and an unrecaptured Section 1250 gain of 33.7355% [1]. - The annual distribution totals $2.83, with 100% classified as total ordinary dividends and capital gains [1]. Tax Information - Aimco's tax return for the year ending December 31, 2025, has not been filed yet, and the income tax character of the distributions is based on the best available information [3]. - The state and local taxation of real estate investment trust distributions may differ from federal tax laws, and shareholders are encouraged to consult their tax advisors [3]. Strategic Review and Future Considerations - The 2025 distributions were made prior to Aimco's Board concluding its strategic review and the announcement of a special stockholder meeting regarding the "Plan of Sale and Liquidation" [4]. - Shareholders should refer to Aimco's Definitive Proxy Statement filed with the SEC for future tax considerations related to the proposed plan [4]. Additional Information - Aimco has filed a proxy statement regarding the proposed plan of sale and liquidation, which has been sent to all shareholders [5]. - Shareholders can access the proxy statement and other documents filed with the SEC for free through the SEC's website or Aimco's investor relations [6]. Company Overview - Aimco is a diversified real estate company focused on value-add and opportunistic investments in the U.S. multifamily sector, aiming to create substantial value for investors and communities [9].

Group 1 - Kingdom Capital Advisors achieved a 17.45% return net of fees in 2025, despite facing significant challenges including a bankruptcy and a cyberattack [1] - The composite return for the fourth quarter was 8.88% net of fees, outperforming the Russell 2000 TR (2.19%), S&P 500 TR (2.68%), and NASDAQ 100 TR (2.47%) [1] - The firm focuses on investing in overlooked microcap companies to yield exceptional returns [1] Group 2 - Apartment Investment and Management Company (NYSE:AIV) had a one-month return of 1.64% but lost 34.17% of its value over the last 52 weeks, closing at $5.93 per share with a market capitalization of $847.885 million on January 8, 2026 [2] - AIV is in the process of selling properties and moving toward full liquidation, having sold the majority of their remaining stabilized apartments [3] - Kingdom Capital Advisors expects dividends in FY26 to cover their cost basis on AIV, anticipating substantial capital returns to shareholders as property sales finalize [3] Group 3 - AIV is not among the 30 Most Popular Stocks Among Hedge Funds, with 35 hedge fund portfolios holding AIV at the end of Q3, up from 26 in the previous quarter [4] - While AIV has potential as an investment, certain AI stocks are believed to offer greater upside potential and less downside risk [4]