Apartment Investment and Management pany(AIV)

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These REITs Look Great As Fed Starts Cutting Cycle
Seeking Alpha· 2025-09-26 20:39
In a recent analysis, we discussed that Stephen Miran and follow-up appointees are likely to take the Fed Funds rate lower. This of course, has implications on much of the investment universe, but this article will be focused on the individual securities that stand to benefit the most. There are 3 main topics we want to cover: Will cuts to the short end of the interest rate curve impact the long end? Investment dollars pushed out the risk curve Interest expense savings of capital-intensive companies Curve ...
Aimco Completes the Sale of Four Suburban Boston Assets and Announces Special Dividend
Prnewswire· 2025-09-15 21:17
Core Viewpoint - Aimco has successfully closed the sale of four properties in suburban Boston for $490 million and declared a special cash dividend of $2.23 per share to be paid on October 15, 2025, to stockholders of record as of September 30, 2025 [1][2]. Group 1: Property Sales and Financial Impact - The properties sold include Royal Crest Estates (Marlboro), Royal Crest Estates (Warwick), Waterford Village, and Wexford Village, with proceeds partially used to retire mortgage loans and pay off Aimco's revolving credit facility [2]. - Aimco is distributing approximately $330 million to stockholders through the special dividend, which represents a significant return of capital [2]. - Aimco's remaining property in the Boston market, Royal Crest Estates (Nashua), is under contract for sale at $250 million, expected to close within 30 days [3]. Group 2: Future Transactions and Financial Strategy - Aimco's sale of two assets in the Brickell neighborhood of Miami is on track to close in Q4 2025 for $520 million, contributing to a total of $1.26 billion in dispositions for 2025 [4]. - The company anticipates generating approximately $785 million in net proceeds after retiring associated liabilities, with plans to pay off about $100 million of incremental debt and return between $4.00 and $4.20 per share to stockholders [4]. - Aimco is focused on maximizing stockholder value through additional strategic transactions, which may include further asset sales or a potential merger [5]. Group 3: Dividend and Trading Information - The special dividend payment represents more than 25% of the price of Aimco's common shares, leading to the NYSE advising that shares will trade with "due bills" from the record date through the payment date [1][7]. - Stockholders selling shares during the Dividend Right Period will forfeit their right to the special dividend, which will be settled between brokers [8][9].
Apartment Investment and Management pany(AIV) - 2025 Q2 - Quarterly Report
2025-08-11 20:26
PART I. FINANCIAL INFORMATION This part presents the company's unaudited condensed consolidated financial statements and management's discussion for the quarter ended June 30, 2025 [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Apartment Investment and Management Company (Aimco) and Aimco OP L.P. for the quarter ended June 30, 2025, and comparative periods. It includes balance sheets, statements of operations, equity/partners' capital, and cash flows, along with detailed notes explaining the company's organization, accounting policies, commitments, earnings per share, fair value measurements, variable interest entities, lease arrangements, business segments, and subsequent events [Apartment Investment and Management Company: Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Apartment%20Investment%20and%20Management%20Company:%20Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) This section presents the unaudited condensed consolidated balance sheets for Aimco as of June 30, 2025, and December 31, 2024 Total real estate, net (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Total real estate, net | $1,269,558 | $1,247,833 | | Cash and cash equivalents | $41,385 | $141,072 | | Assets held for sale, net | $275,892 | $276,079 | | Total assets | $1,869,810 | $1,956,910 | | LIABILITIES AND EQUITY (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Total indebtedness | $1,098,432 | $1,070,660 | | Total liabilities | $1,587,362 | $1,644,613 | | Total Aimco equity | $91,650 | $122,957 | | Total equity | $136,342 | $169,366 | [Apartment Investment and Management Company: Condensed Consolidated Statements of Operations (Unaudited)](index=6&type=section&id=Apartment%20Investment%20and%20Management%20Company:%20Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) This section presents Aimco's unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025, and comparative periods Rental and other property revenues (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Rental and other property revenues | $52,758 | $51,148 | $105,110 | $101,350 | | Total operating expenses | $47,353 | $52,244 | $95,019 | $101,460 | | Net income (loss) attributable to Aimco | $(19,305) | $(60,526) | $(33,221) | $(70,712) | | Net income (loss) attributable to Aimco per common share – basic | $(0.14) | $(0.43) | $(0.24) | $(0.50) | - Net loss attributable to Aimco decreased by **$41.2 million** for the three months ended June 30, 2025, and by **$37.5 million** for the six months ended June 30, 2025, compared to the same periods in 2024[162](index=162&type=chunk) [Apartment Investment and Management Company: Condensed Consolidated Statements of Equity (Unaudited)](index=7&type=section&id=Apartment%20Investment%20and%20Management%20Company:%20Condensed%20Consolidated%20Statements%20of%20Equity%20(Unaudited)) This section presents Aimco's unaudited condensed consolidated statements of equity for the six months ended June 30, 2025, and comparative periods Total Aimco Equity (in thousands) | (in thousands) | Balances at June 30, 2025 | Balances at June 30, 2024 | | :------------- | :------------------------ | :------------------------ | | Total Aimco Equity | $91,650 | $253,536 | | Total Equity | $136,342 | $317,905 | - Aimco's total equity decreased from **$169,366 thousand** at December 31, 2024, to **$136,342 thousand** at June 30, 2025, primarily due to net loss attributable to Aimco[28](index=28&type=chunk) [Apartment Investment and Management Company: Condensed Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Apartment%20Investment%20and%20Management%20Company:%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This section presents Aimco's unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025, and comparative periods Net cash provided by operating activities (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $13,494 | $29,718 | | Net cash used in investing activities | $(45,737) | $(77,441) | | Net cash provided by (used in) financing activities | $(72,448) | $17,854 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $(104,691) | $(29,869) | | Cash, cash equivalents and restricted cash at end of period | $68,265 | $109,398 | - Net cash provided by operating activities decreased by **$16.2 million** for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to timing of changes in operating assets/liabilities and increased interest expense, partially offset by higher rents[205](index=205&type=chunk) - Net cash used in financing activities significantly changed from a **$17.8 million inflow** in 2024 to a **$72.4 million outflow** in 2025, mainly due to dividend payments and decreased proceeds from non-recourse construction loans[208](index=208&type=chunk) [Aimco OP L.P.: Condensed Consolidated Balance Sheets (Unaudited)](index=10&type=section&id=Aimco%20OP%20L.P.:%20Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) This section presents the unaudited condensed consolidated balance sheets for Aimco OP L.P. as of June 30, 2025, and December 31, 2024 Total real estate, net (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Total real estate, net | $1,269,558 | $1,247,833 | | Cash and cash equivalents | $41,385 | $141,072 | | Assets held for sale, net | $275,892 | $276,079 | | Total assets | $1,869,810 | $1,956,910 | | LIABILITIES AND PARTNERS' CAPITAL (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Total indebtedness | $1,098,432 | $1,070,660 | | Total liabilities | $1,587,362 | $1,644,613 | | Total partners' capital | $136,342 | $169,366 | [Aimco OP L.P.: Condensed Consolidated Statements of Operations (Unaudited)](index=11&type=section&id=Aimco%20OP%20L.P.:%20Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) This section presents Aimco OP L.P.'s unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025, and comparative periods Rental and other property revenues (in thousands, except per unit data) | (in thousands, except per unit data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Rental and other property revenues | $52,758 | $51,148 | $105,110 | $101,350 | | Total operating expenses | $47,353 | $52,244 | $95,019 | $101,460 | | Net income (loss) attributable to Aimco Operating Partnership | $(20,364) | $(63,890) | $(35,045) | $(74,630) | | Net income (loss) attributable to Aimco Operating Partnership per common unit – basic | $(0.14) | $(0.43) | $(0.24) | $(0.50) | [Aimco OP L.P.: Condensed Consolidated Statements of Partners' Capital (Unaudited)](index=12&type=section&id=Aimco%20OP%20L.P.:%20Condensed%20Consolidated%20Statements%20of%20Partners'%20Capital%20(Unaudited)) This section presents Aimco OP L.P.'s unaudited condensed consolidated statements of partners' capital for the six months ended June 30, 2025, and comparative periods Total Partners' Capital (in thousands) | (in thousands) | Balances at June 30, 2025 | Balances at June 30, 2024 | | :------------- | :------------------------ | :------------------------ | | Total Partners' Capital | $136,342 | $317,905 | [Aimco OP L.P.: Condensed Consolidated Statements of Cash Flows (Unaudited)](index=14&type=section&id=Aimco%20OP%20L.P.:%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This section presents Aimco OP L.P.'s unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025, and comparative periods Net cash provided by operating activities (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $13,494 | $29,718 | | Net cash used in investing activities | $(45,737) | $(77,441) | | Net cash provided by (used in) financing activities | $(72,448) | $17,854 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $(104,691) | $(29,869) | | Cash, cash equivalents and restricted cash at end of period | $68,265 | $109,398 | [Notes to Condensed Consolidated Financial Statements of Apartment Investment and Management Company and Aimco OP L.P. (Unaudited)](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20of%20Apartment%20Investment%20and%20Management%20Company%20and%20Aimco%20OP%20L.P.%20(Unaudited)) This section provides detailed notes to the unaudited condensed consolidated financial statements of Aimco and Aimco OP L.P. [Note 1 — Organization](index=15&type=section&id=Note%201%20%E2%80%94%20Organization) This note describes Aimco's structure as a REIT, its separation from AIR, and its primary business focus on multifamily properties - Aimco is a self-administered and self-managed real estate investment trust (REIT), which completed a separation of its businesses on **December 15, 2020**, creating Aimco and Apartment Income REIT Corp. (AIR)[45](index=45&type=chunk) - As of **June 30, 2025**, Aimco owned **92.4% legal interest** and **94.8% economic interest** in Aimco Operating Partnership, serving as its sole general partner with exclusive control over day-to-day management[46](index=46&type=chunk) - The company's portfolio primarily focuses on the U.S. multifamily sector, including **5,243 apartment homes** across **20 consolidated stabilized operating properties**, several communities in lease-up, a luxury hotel, and land parcels for development[48](index=48&type=chunk) [Note 2 — Basis of Presentation and Summary of Significant Accounting Policies](index=15&type=section&id=Note%202%20%E2%80%94%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis of financial statement preparation and summarizes key accounting policies, including consolidation, redeemable noncontrolling interests, and asset classifications - The unaudited condensed consolidated financial statements are prepared in accordance with Form 10-Q and Article 10 of Regulation S-X, with certain GAAP disclosures condensed or omitted[49](index=49&type=chunk) - Aimco consolidates entities where it is the primary beneficiary of a Variable Interest Entity (VIE) or controls through a majority voting interest, including Aimco Operating Partnership[53](index=53&type=chunk) - Redeemable noncontrolling interests, classified as temporary equity, include preferred equity interests with specified preferred returns (**8.0%**, **9.7%**, **14.5%**) in various real estate partnerships[56](index=56&type=chunk) - The Mezzanine Investment, a **$275.0 million loan** to Parkmerced Apartments, was in maturity default as of **June 30, 2025**, but the associated liability from a partial sale in 2023 is not derecognized[59](index=59&type=chunk)[60](index=60&type=chunk) - Income tax expense for the three and six months ended **June 30, 2025**, was **$5.6 million** and **$5.5 million**, respectively, a change from a benefit in 2024, primarily due to a non-cash partial valuation allowance against deferred tax assets of TRS entities[64](index=64&type=chunk) - The Brickell Assemblage was classified as held for sale as of **June 30, 2025**, with a net real estate value of **$273.15 million** and related liabilities of **$159.84 million**[68](index=68&type=chunk) Cash, Cash Equivalents, and Restricted Cash (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $41,385 | $141,072 | | Restricted cash | $26,428 | $31,367 | | Restricted cash held for sale | $452 | $517 | | **Total Cash, Cash Equivalents, and Restricted Cash** | **$68,265** | **$172,956** | - The investment in IQHQ, a life sciences real estate development company, had a carrying value of **$11.07 million** as of **June 30, 2025**, after a non-cash impairment charge of **$48.6 million** in 2024[78](index=78&type=chunk)[79](index=79&type=chunk) - A special cash dividend of **$0.60 per share** was paid in **January 2025**, distributing net proceeds from 2024 asset sales[81](index=81&type=chunk) - The Benson Hotel generated revenues of **$2.1 million** and **$3.5 million** for the three and six months ended **June 30, 2025**, respectively, showing growth from 2024[83](index=83&type=chunk) - New accounting pronouncements, ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Disaggregation of Income Statement Expenses), are being evaluated for potential impact[84](index=84&type=chunk)[85](index=85&type=chunk) [Note 3 — Commitments and Contingencies](index=23&type=section&id=Note%203%20%E2%80%94%20Commitments%20and%20Contingencies) This note details the company's remaining commitments for construction contracts, unfunded investment commitments, and legal proceedings - As of **June 30, 2025**, the company had remaining commitments for construction-related contracts of **$125.1 million**, with **$133.2 million** undrawn on non-recourse construction loans[86](index=86&type=chunk) - Unfunded commitments related to investments in property technology funds totaled **$1.2 million** as of **June 30, 2025**[87](index=87&type=chunk) - No legal proceedings are pending that are believed to have a material effect on the company's financial condition or results of operations[89](index=89&type=chunk) [Note 4 — Earnings per Share and per Unit](index=24&type=section&id=Note%204%20%E2%80%94%20Earnings%20per%20Share%20and%20per%20Unit) This note provides a breakdown of earnings per share and per unit for Aimco and Aimco Operating Partnership for the reported periods Net income (loss) attributable to Aimco common stockholders (in thousands, except per share/unit data) | (in thousands, except per share/unit data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to Aimco common stockholders | $(19,305) | $(60,526) | $(33,221) | $(70,712) | | Earnings (loss) per share - basic | $(0.14) | $(0.43) | $(0.24) | $(0.50) | | Net income (loss) attributable to Aimco Operating Partnership's common unit holders | $(20,364) | $(63,890) | $(35,045) | $(74,630) | | Earnings (loss) per unit - basic | $(0.14) | $(0.43) | $(0.24) | $(0.50) | - Dilutive share equivalents and participating securities were not included in EPS/EPU computations for the periods presented as their effect would have been antidilutive[91](index=91&type=chunk)[92](index=92&type=chunk) [Note 5 — Fair Value Measurements and Disclosures](index=25&type=section&id=Note%205%20%E2%80%94%20Fair%20Value%20Measurements%20and%20Disclosures) This note details the fair value measurements of financial instruments, including interest rate contracts and debt, as of June 30, 2025 - The company uses interest rate caps to protect against increases in variable interest rates, holding instruments with a maximum notional value of **$464.3 million** and a fair value of **$0.5 million** as of **June 30, 2025**[96](index=96&type=chunk)[214](index=214&type=chunk) Fair Value of Financial Instruments (in thousands) | Category | As of June 30, 2025 (Total) | As of December 31, 2024 (Total) | | :------------------------------------ | :-------------------------- | :------------------------------ | | Interest rate contracts | $504 | $862 | | Investments in stock | $890 | $1,573 | | Investments in real estate technology funds | $3,809 | $3,468 | Carrying Value and Fair Value of Debt (in thousands) | Description | As of June 30, 2025 (Carrying Value) | As of June 30, 2025 (Fair Value) | As of December 31, 2024 (Carrying Value) | As of December 31, 2024 (Fair Value) | | :------------------------------ | :----------------------------------- | :------------------------------- | :--------------------------------------- | :------------------------------- | | Non-recourse property debt | $689,155 | $662,778 | $689,885 | $641,563 | | Non-recourse construction loans | $377,251 | $380,557 | $393,750 | $393,756 | | Total | $1,066,406 | $1,043,335 | $1,083,635 | $1,035,319 | [Note 6 — Variable Interest Entities](index=26&type=section&id=Note%206%20%E2%80%94%20Variable%20Interest%20Entities) This note describes Aimco's consolidated and unconsolidated variable interest entities, including its primary beneficiary role in Aimco Operating Partnership - Aimco consolidates Aimco Operating Partnership and **five other VIEs** that own real estate, for which it is the primary beneficiary[103](index=103&type=chunk)[104](index=104&type=chunk)[106](index=106&type=chunk) - The company has **seven unconsolidated VIEs**, including **four real estate partnerships**, the Mezzanine Investment, IQHQ, and land held for development, where it is not the primary decision maker[105](index=105&type=chunk) - Maximum exposure to loss from unconsolidated VIEs is limited to the carrying value of their assets[105](index=105&type=chunk) [Note 7 — Lease Arrangements](index=28&type=section&id=Note%207%20%E2%80%94%20Lease%20Arrangements) This note provides details on the company's lease arrangements, including apartment home leases, commercial space leases, and its role as a lessee - Apartment home leases generally have initial terms of **24 months or less**, while commercial space leases range from **5 to 15 years** and contribute **6% to 7% of total revenue**[107](index=107&type=chunk) Total Lease Income (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Fixed lease income | $46,568 | $45,772 | $92,824 | $91,705 | | Variable lease income | $4,107 | $3,381 | $8,757 | $7,580 | | **Total lease income** | **$50,675** | **$49,153** | **$101,581** | **$99,285** | - Aimco is a lessee for finance leases on land underlying properties (Upton Place, Strathmore Square, Oak Shore) and operating leases for corporate office space[111](index=111&type=chunk) Total Lease Costs, Net of Capitalized Amounts (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease costs | $411 | $383 | $849 | $762 | | Finance lease costs (Amortization + Interest) | $2,180 | $1,861 | $4,354 | $3,104 | | **Total lease costs, net of capitalized amounts** | **$2,591** | **$2,244** | **$5,203** | **$3,866** | [Note 8 — Business Segments](index=30&type=section&id=Note%208%20%E2%80%94%20Business%20Segments) This note outlines the company's three business segments: Development and Redevelopment, Operating, and Other, and their respective financial performance - The company operates in three segments: Development and Redevelopment (**9 properties**, including one under construction, two in lease-up, one stabilizing), Operating (**20 consolidated stabilized operating properties** with **5,243 homes**), and Other (The Benson Hotel and properties not in other segments)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - Property Net Operating Income (PNOI) is the key measure for evaluating segment performance and allocating resources[119](index=119&type=chunk) Property Net Operating Income (PNOI) by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Development and Redevelopment | $3,034 | $(149) | $4,757 | $(772) | | Operating | $24,228 | $23,972 | $49,291 | $48,371 | | Other | $(340) | $207 | $(984) | $(365) | | **Total PNOI** | **$26,922** | **$24,030** | **$53,064** | **$47,234** | - Development and Redevelopment PNOI significantly increased due to the lease-up of Upton Place, Strathmore Square, and Oak Shore[174](index=174&type=chunk)[184](index=184&type=chunk) - Operating PNOI increased by **1.1%** for the three months and **1.9%** for the six months, driven by higher rental revenues, partially offset by increased real estate taxes[174](index=174&type=chunk)[184](index=184&type=chunk) Capital Additions by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Development and Redevelopment | $22,134 | $29,995 | $42,393 | $72,466 | | Operating | $5,455 | $3,855 | $8,151 | $6,099 | | Other | $0 | $0 | $160 | $0 | | Corporate and Amounts Not Allocated to Segments | $105 | $567 | $211 | $1,486 | | **Total capital additions** | **$27,694** | **$34,417** | **$50,915** | **$80,051** | [Note 9 — Subsequent Events](index=34&type=section&id=Note%209%20%E2%80%94%20Subsequent%20Events) This note discloses significant events occurring after the quarter-end, including property sales agreements and credit facility retirement plans - In **July 2025**, the buyer of the Brickell Assemblage exercised its final closing extension, increasing the non-refundable deposit to **$50.0 million**, with closing scheduled for **Q4 2025**[126](index=126&type=chunk) - The suburban Boston portfolio of **five properties** is under contract for **$740.0 million**, with the buyer's **$20.0 million deposit** becoming non-refundable in **August 2025**. **Four sales** are expected in **Q3 2025**, and the final one in **Q4 2025**[127](index=127&type=chunk) - The revolving credit facility, secured by the Boston portfolio, will be retired upon the sale, with proceeds used to repay the **May 2025** borrowings[128](index=128&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=37&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial condition and operating results, including forward-looking statements, an executive overview of its mission and strategy, and a detailed analysis of financial performance for the three and six months ended June 30, 2025. It also covers critical accounting estimates, non-GAAP measures like EBITDAre, and a comprehensive discussion of liquidity and capital resources [Forward Looking Statements](index=37&type=section&id=Forward%20Looking%20Statements) This section highlights forward-looking statements regarding future plans, financial goals, and potential risks and uncertainties - The report contains forward-looking statements regarding future plans, goals, capital returns, pipeline investments, debt maturities, value creation, revenue/expense growth, joint ventures, acquisitions/dispositions, and strategic partnerships[132](index=132&type=chunk) - These statements are subject to risks and uncertainties, including geopolitical conditions, rising interest rates, inflation, real estate market fluctuations, competition, financing risks, and regulatory changes[133](index=133&type=chunk) [Executive Overview](index=38&type=section&id=Executive%20Overview) This section outlines Aimco's mission, strategic goals, financial objectives, and capital allocation strategy for value creation - Aimco's mission is to make real estate investments, primarily in the U.S. multifamily sector, to create substantial value for investors, teammates, and communities[139](index=139&type=chunk) - The primary goal is outsized risk-adjusted returns and accelerating growth for stockholders, mainly through capital appreciation, with no current intent to pay a regular quarterly cash dividend[140](index=140&type=chunk) - Financial objectives are measured by investment period Internal Rate of Return (IRR) and project-level Multiple on Invested Capital (MOIC), with broader performance based on Net Asset Value (NAV) growth[141](index=141&type=chunk) - The capital allocation strategy targets a balanced mix of 'Value Add' and 'Opportunistic' multifamily real estate in Southeast Florida, Washington D.C. Metro Area, and Colorado's Front Range, alongside a diversified portfolio of 'Core' and 'Core-Plus' apartment communities[142](index=142&type=chunk) - The company maintains policies to support its strategy, including holding a sizable portion of net equity in stabilized cash-flowing assets and requiring committed capital for development projects[144](index=144&type=chunk) [Results for the three and six months ended June 30, 2025](index=39&type=section&id=Results%20for%20the%20three%20and%20six%20months%20ended%20June%2030,%202025) This section summarizes Aimco's financial performance and key operational highlights for the three and six months ended June 30, 2025 [Financial Results and Highlights](index=39&type=section&id=Financial%20Results%20and%20Highlights) This section presents key financial results, including net loss per share and significant property sale agreements, for the reported periods - Net loss attributable to Aimco common stockholders per share was **$(0.14)** for the three months and **$(0.24)** for the six months ended **June 30, 2025**[150](index=150&type=chunk) - Net operating income from the Operating segment increased by **1.1%** year-over-year to **$24.2 million** for the three months and by **1.9%** to **$49.3 million** for the six months[150](index=150&type=chunk) - Subsequent to quarter end, Aimco agreed to sell its suburban Boston portfolio for **$740.0 million** and the Brickell Assemblage for **$520.0 million**, with closings expected in **Q3 2025** and **Q4 2025**[150](index=150&type=chunk) - Development properties (Strathmore Square, Upton Place, Oak Shore) are on track to reach stabilized occupancy in 2025[150](index=150&type=chunk) - In **May**, Aimco purchased its development partner's interest in Strathmore Square and used its revolving credit facility to pay off a higher interest rate mezzanine loan for the property[150](index=150&type=chunk) [Operating Property Results](index=40&type=section&id=Operating%20Property%20Results) This section details the financial performance of the Operating segment, including revenue, occupancy, and expense changes - Operating segment revenue increased by **1.9%** year-over-year to **$35.4 million** for the three months ended **June 30, 2025**, with average monthly revenue per apartment home rising by **$57 to $2,349**[157](index=157&type=chunk) - Operating segment occupancy was **95.8%**, a **50 basis point decrease** year-over-year, partly due to a commercial tenant vacancy in New York City[157](index=157&type=chunk) - Operating segment expenses increased by **3.9%** year-over-year to **$11.2 million**, primarily due to higher real estate taxes at the Nashville property[157](index=157&type=chunk) [Value Add and Opportunistic Investments](index=40&type=section&id=Value%20Add%20and%20Opportunistic%20Investments) This section describes the status of multifamily development projects, future pipeline opportunities, and capital investments - The company had one multifamily development project under construction, two substantially completed and in lease-up, and one stabilizing operations as of **June 30, 2025**[152](index=152&type=chunk) - A pipeline of future value-add opportunities totals approximately **7.7 million gross square feet** of development in target markets[153](index=153&type=chunk) - Investments in development and redevelopment activities were **$22.1 million** for the three months and **$42.4 million** for the six months ended **June 30, 2025**, primarily funded by construction loans and preferred equity[154](index=154&type=chunk) - Upton Place (**689 units**) was **69% leased/pre-leased** and **56% occupied**, with **92% of retail space leased** as of **June 30, 2025**[158](index=158&type=chunk) - Strathmore Square (**220 units**) was **75% leased** and **63% occupied** as of **June 30, 2025**[158](index=158&type=chunk) - Oak Shore (**24 single-family homes**) was **96% leased and occupied** as of **June 30, 2025**[158](index=158&type=chunk) - Construction at 34th Street in Miami is on schedule and budget, with first residents expected in **Q3 2027** and stabilization in **Q4 2028**[158](index=158&type=chunk) [Investment and Disposition Activity](index=40&type=section&id=Investment%20and%20Disposition%20Activity) This section outlines recent and planned property sales, including the Boston portfolio and Brickell Assemblage, and a strategic equity purchase - Subsequent to quarter end, Aimco entered a definitive agreement to sell its suburban Boston portfolio (**2,719 units**) for **$740.0 million**, with a **$20.0 million non-refundable deposit**. **Four sales** are expected in **Q3 2025**, and the final one in **Q4 2025**[156](index=156&type=chunk)[159](index=159&type=chunk) - In **December 2024**, an agreement was made to sell the Brickell Assemblage for **$520.0 million**. The buyer increased its non-refundable deposit to **$50.0 million** in **July 2025**, with closing scheduled for **Q4 2025**[168](index=168&type=chunk) - In **May**, Aimco purchased its development partner's **5% common equity interest** in Strathmore Square for **$2.1 million** and the subordinated interest for **$2.9 million**[168](index=168&type=chunk) [Balance Sheet and Financing Activities](index=42&type=section&id=Balance%20Sheet%20and%20Financing%20Activities) This section provides an overview of the company's liquidity, revolving credit facility usage, and collateral arrangements - As of **June 30, 2025**, available liquidity was **$173.5 million**, comprising **$41.4 million cash**, **$26.4 million restricted cash**, and **$105.7 million available** on the **$150.0 million revolving credit facility**[160](index=160&type=chunk)[199](index=199&type=chunk) - Aimco borrowed **$42.8 million** on its revolving credit facility in **May 2025** to pay off a mezzanine loan for Strathmore Square, which had a **13.0% interest rate** (**650 bps** higher than the credit facility)[168](index=168&type=chunk) - The Boston portfolio, under contract for sale, serves as collateral for the revolving credit facility, which will be retired upon the sale's closing[168](index=168&type=chunk) [Financial Results of Operations](index=42&type=section&id=Financial%20Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance, including property results, expenses, and income tax impacts [Property Results](index=42&type=section&id=Property%20Results) This section categorizes properties into Development and Redevelopment, Operating, and Other segments, detailing their composition and performance metrics - Net loss attributable to Aimco common stockholders decreased by **$41.2 million** and **$37.5 million** for the three and six months ended **June 30, 2025**, respectively, compared to the same periods in 2024[162](index=162&type=chunk) - The Development and Redevelopment segment includes **9 properties**, with one under construction, two in lease-up, and one stabilizing operations[164](index=164&type=chunk) - The Operating segment consists of **20 stabilized residential apartment communities** with **5,243 apartment homes**[165](index=165&type=chunk) - The Other segment includes The Benson Hotel and other properties not classified in the other two segments[166](index=166&type=chunk) - Property Net Operating Income (PNOI) is used to assess segment operating performance, excluding utility reimbursements, property management costs, and casualty gains/losses[167](index=167&type=chunk)[169](index=169&type=chunk) [Property Net Operating Income](index=44&type=section&id=Property%20Net%20Operating%20Income) This section presents a detailed breakdown of Property Net Operating Income (PNOI) across the company's business segments Property Net Operating Income (PNOI) by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Development and Redevelopment | $3,034 | $(149) | $4,757 | $(772) | | Operating | $24,228 | $23,972 | $49,291 | $48,371 | | Other | $(340) | $207 | $(984) | $(365) | | **Total PNOI** | **$26,922** | **$24,030** | **$53,064** | **$47,234** | - Development and Redevelopment PNOI increased by **$3.2 million** (three months) and **$5.5 million** (six months) due to lease-up of Upton Place, Strathmore Square, and Oak Shore[174](index=174&type=chunk)[184](index=184&type=chunk) - Operating PNOI increased by **$0.3 million (1.1%)** for the three months and **$0.9 million (1.9%)** for the six months, driven by higher rental revenues (**$57 to $2,349** increase in average monthly revenue per apartment home), offset by increased real estate taxes[174](index=174&type=chunk)[184](index=184&type=chunk) - Other PNOI decreased by **$0.5 million** (three months) and **$0.6 million** (six months) due to higher real estate taxes from a 2025 property assessment[174](index=174&type=chunk)[184](index=184&type=chunk) [Non-Segment Real Estate Operations](index=45&type=section&id=Non-Segment%20Real%20Estate%20Operations) This section details operating expenses not allocated to specific segments and PNOI from properties sold or held for sale - Other property operating expenses not allocated to segments were **$1.8 million** and **$3.3 million** for the three and six months ended **June 30, 2025**, respectively[176](index=176&type=chunk)[177](index=177&type=chunk) - Properties sold or held for sale generated PNOI of **$4.5 million** (three months) and **$9.1 million** (six months) for the periods ended **June 30, 2025**[176](index=176&type=chunk)[177](index=177&type=chunk) [Depreciation and Amortization](index=45&type=section&id=Depreciation%20and%20Amortization) This section explains the changes in depreciation and amortization expense due to asset dispositions and new property completions - Depreciation and amortization expense decreased by **$5.7 million (26.0%)** for the three months and **$8.8 million (21.2%)** for the six months ended **June 30, 2025**, primarily due to the disposition of The Hamilton and classification of the Brickell Assemblage as held for sale, partially offset by completion of Upton Place, Strathmore Square, and Oak Shore[178](index=178&type=chunk) [General and Administrative Expenses](index=45&type=section&id=General%20and%20Administrative%20Expenses) This section outlines the changes in general and administrative expenses for the three and six months ended June 30, 2025 - General and administrative expenses increased by **$0.2 million (2.9%)** for the three months ended **June 30, 2025**, but decreased by **$0.1 million (0.9%)** for the six months[179](index=179&type=chunk) [Interest Income](index=45&type=section&id=Interest%20Income) This section details the decrease in interest income, primarily attributed to reduced interest earned on invested cash - Interest income decreased by **$1.0 million (39.0%)** for the three months and **$1.5 million (29.8%)** for the six months ended **June 30, 2025**, primarily due to a decrease in interest earned on invested cash[180](index=180&type=chunk) [Interest Expense](index=45&type=section&id=Interest%20Expense) This section explains the increase in interest expense due to construction loan draws and reduced capitalization - Interest expense increased by **$1.2 million (7.0%)** for the three months and **$5.3 million (17.4%)** for the six months ended **June 30, 2025**, mainly due to increased non-recourse construction loan draws and reduced capitalization, partially offset by loan repayments and use of the revolving credit facility[181](index=181&type=chunk) [Realized and Unrealized Gains (Losses) on Interest Rate Contracts](index=45&type=section&id=Realized%20and%20Unrealized%20Gains%20(Losses)%20on%20Interest%20Rate%20Contracts) This section reports realized gains and unrealized losses on interest rate contracts for the reported periods - Unrealized losses on interest rate contracts were **$0.3 million** (three months) and **$0.8 million** (six months) for **June 30, 2025**, compared to losses of **$1.3 million** and **$1.5 million** in 2024[182](index=182&type=chunk) - Realized gains were **$0.2 million** (three months) and **$0.5 million** (six months) for **June 30, 2025**, down from **$1.9 million** and **$3.8 million** in 2024[182](index=182&type=chunk) [Realized and Unrealized Gains (Losses) on Equity Investments](index=45&type=section&id=Realized%20and%20Unrealized%20Gains%20(Losses)%20on%20Equity%20Investments) This section details unrealized gains and losses on equity investments, including a significant impairment charge in 2024 - Unrealized losses on equity investments were **$0.2 million** (three months) and **$0.6 million** (six months) for **June 30, 2025**[185](index=185&type=chunk) - This compares to significant unrealized losses of **$47.3 million** (three months) and **$47.5 million** (six months) in 2024, primarily due to a **$47.0 million non-cash impairment** on the IQHQ investment[185](index=185&type=chunk) [Other Income (Expense), Net](index=47&type=section&id=Other%20Income%20(Expense),%20Net) This section explains the changes in other income and expense, net, driven by the Mezzanine Investment and strategic review costs - Other income (expense), net, changed by **$1.2 million (94.4%)** for the three months and **$2.3 million (80.8%)** for the six months ended **June 30, 2025**, primarily due to increased income from the Mezzanine Investment, offset by strategic review costs[186](index=186&type=chunk) [Income Tax Benefit (Expense)](index=47&type=section&id=Income%20Tax%20Benefit%20(Expense)) This section details the income tax expense, primarily due to a valuation allowance against deferred tax assets and reduced depreciation - Income tax expense was **$5.6 million** (three months) and **$5.5 million** (six months) for **June 30, 2025**, compared to a benefit in 2024[190](index=190&type=chunk) - The change is mainly due to a non-cash partial valuation allowance against deferred tax assets of TRS entities and reduced depreciation[190](index=190&type=chunk) - The company is evaluating the tax consequences of the recently signed One Big Beautiful Bill Act (OBBBA)[191](index=191&type=chunk) [Critical Accounting Estimates](index=48&type=section&id=Critical%20Accounting%20Estimates) This section confirms no significant changes to critical accounting estimates from the prior annual report - No significant changes have occurred in critical accounting estimates from those reported in the Annual Report on Form 10-K for the year ended **December 31, 2024**[192](index=192&type=chunk) [Non-GAAP Measures](index=48&type=section&id=Non-GAAP%20Measures) This section defines and presents non-GAAP financial measures, including EBITDAre and Adjusted EBITDAre, used for performance assessment [Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization for Real Estate ("EBITDAre")](index=48&type=section&id=Earnings%20Before%20Interest%20Expense,%20Income%20Taxes,%20Depreciation%20and%20Amortization%20for%20Real%20Estate%20(%22EBITDAre%22)) This section provides a reconciliation and explanation of EBITDAre and Adjusted EBITDAre as non-GAAP performance indicators - EBITDAre and Adjusted EBITDAre are non-GAAP measures used to assess the company's ability to incur and service debt, providing comparability within the real estate industry[194](index=194&type=chunk) EBITDAre and Adjusted EBITDAre (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(16,976) | $(61,103) | $(28,688) | $(68,299) | | **EBITDAre** | **$23,207** | **$(24,144)** | **$45,580** | **$(1,016)** | | **Adjusted EBITDAre** | **$18,894** | **$19,100** | **$38,628** | **$37,064** | [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's available liquidity, leverage, capital resources, and changes in cash flows [Liquidity](index=49&type=section&id=Liquidity) This section details the company's available cash, restricted cash, and revolving credit facility, assessing sufficiency for future operations - As of **June 30, 2025**, available liquidity was **$173.5 million**, consisting of **$41.4 million cash**, **$26.4 million restricted cash**, and **$105.7 million available** on the revolving secured credit facility[198](index=198&type=chunk)[199](index=199&type=chunk) - The company believes current liquidity sources are sufficient for operational needs for the next **twelve months**, with additional liquidity generation options available if needed[200](index=200&type=chunk) - The revolving secured credit facility, maturing in **December 2025**, will be retired upon the sale of the Boston portfolio[200](index=200&type=chunk) [Leverage and Capital Resources](index=50&type=section&id=Leverage%20and%20Capital%20Resources) This section outlines the company's debt structure, interest rates, credit facility status, and compliance with financial covenants - All outstanding non-recourse property debt had a fixed interest rate as of **June 30, 2025**, with a weighted-average contractual rate of **4.4%** and an average remaining term to maturity of **6.3 years**[202](index=202&type=chunk) - The **$150.0 million revolving secured credit facility** had **$42.8 million outstanding borrowings** and **$1.5 million in letters of credit** as of **June 30, 2025**[203](index=203&type=chunk) - The company is in compliance with credit facility covenants, including a fixed charge coverage ratio of **1.25X**, minimum tangible net worth of **$625.0 million**, and maximum leverage of **60.0%**[203](index=203&type=chunk) [Changes in Cash, Cash Equivalents, and Restricted Cash](index=50&type=section&id=Changes%20in%20Cash,%20Cash%20Equivalents,%20and%20Restricted%20Cash) This section analyzes the changes in cash flows from operating, investing, and financing activities for the reported periods [Operating Activities](index=50&type=section&id=Operating%20Activities) This section details the decrease in net cash provided by operating activities, influenced by operating assets/liabilities and interest expense - Net cash provided by operating activities was **$13.5 million** for the six months ended **June 30, 2025**, a decrease of **$16.2 million** compared to 2024, primarily due to timing of changes in operating assets/liabilities and increased interest expense, partially offset by higher rents[205](index=205&type=chunk) [Investing Activities](index=50&type=section&id=Investing%20Activities) This section explains the decrease in net cash used in investing activities, primarily due to reduced capital expenditures - Net cash used in investing activities was **$45.7 million** for the six months ended **June 30, 2025**, a decrease of **$31.7 million** compared to 2024, primarily due to decreased capital expenditures[206](index=206&type=chunk) [Financing Activities](index=51&type=section&id=Financing%20Activities) This section outlines the significant shift to net cash used in financing activities, driven by dividends and construction loan changes - Net cash used in financing activities was **$72.4 million** for the six months ended **June 30, 2025**, a change of **$90.3 million** compared to 2024, primarily due to dividend payments and decreased proceeds from non-recourse construction loans, partially offset by increased contributions from redeemable noncontrolling interests[208](index=208&type=chunk) [Future Capital Needs](index=51&type=section&id=Future%20Capital%20Needs) This section discusses the expected funding sources for future capital needs, including operating cash flows and debt/equity financing - Future capital needs are expected to be funded by operating cash flows, short-term borrowings, and debt/equity financing, with no current plans for equity issuance[209](index=209&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=52&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section outlines the company's primary market risks, including refunding risk and repricing risk, and describes its strategies for managing these risks, such as using long-dated, fixed-rate debt and derivative financial instruments [Market Risk](index=52&type=section&id=Market%20Risk) This section identifies primary market risks, such as refunding and repricing risk, and the strategies employed to mitigate them - Primary market risks are refunding risk (availability of debt to refund maturing debt) and repricing risk (increases in interest rates and credit risk spreads)[211](index=211&type=chunk) - The company uses long-dated, fixed-rate, non-recourse property debt on stabilized properties and derivative financial instruments (interest rate caps) to manage these risks[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk) - As of **June 30, 2025**, there was no variable-rate property-level debt, but **$155.8 million** in variable-rate construction loans were outstanding, with interest rate caps providing protection[213](index=213&type=chunk) - An estimated **100 basis point increase** or decrease in variable rate indices would have no material impact on interest expense as of **June 30, 2025**[213](index=213&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=52&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting for both Apartment Investment and Management Company (Aimco) and Aimco OP L.P. for the quarter ended June 30, 2025 [Aimco](index=52&type=section&id=Aimco) This section confirms the effectiveness of Aimco's disclosure controls and internal control over financial reporting - Aimco's disclosure controls and procedures were evaluated as effective as of **June 30, 2025**[215](index=215&type=chunk) - No material changes in Aimco's internal control over financial reporting occurred during the quarter ended **June 30, 2025**[216](index=216&type=chunk) [Aimco Operating Partnership](index=52&type=section&id=Aimco%20Operating%20Partnership) This section confirms the effectiveness of Aimco Operating Partnership's disclosure controls and internal control over financial reporting - Aimco Operating Partnership's disclosure controls and procedures were evaluated as effective as of **June 30, 2025**[217](index=217&type=chunk) - No material changes in Aimco Operating Partnership's internal control over financial reporting occurred during the quarter ended **June 30, 2025**[218](index=218&type=chunk) PART II. OTHER INFORMATION This part provides additional information including risk factors, equity security activities, dividend policies, and required exhibits [ITEM 1A. RISK FACTORS](index=53&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section confirms no material changes to the risk factors previously disclosed in the company's annual report - No material changes to risk factors have occurred since the **December 31, 2024**, Annual Report on Form 10-K[220](index=220&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES](index=53&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES,%20USE%20OF%20PROCEEDS,%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) This section details equity security activities for Aimco and Aimco Operating Partnership, including outstanding shares/units and repurchases [Aimco](index=53&type=section&id=Aimco) This section provides details on Aimco's outstanding common stock, unregistered sales, and share repurchase program - As of **August 8, 2025**, there were **142,331,227 shares** of Class A Common Stock outstanding, held by **888 stockholders** of record[6](index=6&type=chunk)[222](index=222&type=chunk) - No shares of Common Stock were issued in exchange for OP Units or through other unregistered sales during the three months ended **June 30, 2025**[224](index=224&type=chunk) - Aimco did not repurchase any shares of its outstanding Common Stock during the three months ended **June 30, 2025**[226](index=226&type=chunk) - As of **June 30, 2025**, Aimco was authorized to repurchase up to an additional **16.2 million shares** of its outstanding Common Stock under a program with no expiration date[225](index=225&type=chunk) [Aimco Operating Partnership](index=53&type=section&id=Aimco%20Operating%20Partnership) This section provides details on Aimco Operating Partnership's outstanding OP Units, unregistered issuances, and unit redemptions - As of **August 8, 2025**, there were **153,192,728 OP Units** and equivalents outstanding, with **142,331,227** held by Aimco[227](index=227&type=chunk) - No unregistered OP Units were issued during the three months ended **June 30, 2025**[228](index=228&type=chunk) - **8,609 OP Units** were redeemed for cash at an aggregate weighted average price of **$8.10 per unit** during the three months ended **June 30, 2025**[229](index=229&type=chunk)[230](index=230&type=chunk) [Dividend and Distribution Payments](index=55&type=section&id=Dividend%20and%20Distribution%20Payments) This section outlines Aimco's REIT dividend distribution requirements and the factors influencing dividend determinations - As a REIT, Aimco must distribute at least **90.0%** of its 'real estate investment trust taxable income' annually to common stockholders[231](index=231&type=chunk) - Dividend determinations by Aimco's Board consider REIT distribution requirements, market conditions, liquidity needs, and other cash uses like deleveraging and accretive investments[231](index=231&type=chunk) [ITEM 6. EXHIBITS](index=56&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q report, including corporate charters, bylaws, partnership agreements, purchase and sale contracts, and certifications required by the Securities Exchange Act of 1934 and Sarbanes-Oxley Act of 2002 - Exhibits include corporate governance documents (Charter, Bylaws), partnership agreements, a Purchase and Sale Contract for Royal Crest Estates, and various certifications (CEO/CFO certifications under Sections 302 and 906 of Sarbanes-Oxley)[233](index=233&type=chunk) - The report also includes financial statements formatted in iXBRL (Inline Extensible Business Reporting Language) and the Cover Page Interactive Data File[234](index=234&type=chunk) [SIGNATURES](index=57&type=section&id=SIGNATURES) This section contains the official signatures of authorized representatives for Apartment Investment and Management Company and Aimco OP L.P., certifying the filing of the report pursuant to the Securities Exchange Act of 1934 - The report is signed by H. Lynn C. Stanfield, Executive Vice President and Chief Financial Officer, and Kellie E. Dreyer, Senior Vice President and Chief Accounting Officer, for both Aimco and Aimco OP L.P. (via its General Partner, Aimco OP GP, LLC)[237](index=237&type=chunk)[238](index=238&type=chunk) - The filing date for the report is **August 11, 2025**[238](index=238&type=chunk)
Apartment Investment and Management pany(AIV) - 2025 Q2 - Quarterly Results
2025-08-11 20:20
[Earnings Release](index=3&type=section&id=Earnings%20Release) This section presents Aimco's second quarter 2025 financial results, highlighting strategic asset sales, plans for significant stockholder returns, and ongoing efforts in portfolio management and development [Second Quarter 2025 Results and Recent Highlights](index=3&type=section&id=Second%20Quarter%202025%20Results%20and%20Recent%20Highlights) Aimco announced its second quarter 2025 financial results, highlighting strategic asset sales totaling $1.26 billion and plans to return $4.00-$4.20 per share to stockholders. The company continues to focus on effective portfolio management, development projects, and exploring opportunities to maximize stockholder value through a strategic review process - Aimco's net loss attributable to common stockholders per share, on a fully dilutive basis, was **$(0.14)** for the three months ended June 30, 2025, and **$(0.24)** for the six months ended June 30, 2025[10](index=10&type=chunk) - Property Net Operating Income ("NOI") from Aimco's Stabilized Operating Properties was **$24.2 million** in the second quarter 2025, up **1.1%** year-over-year, and **$49.3 million** year-to-date, up **1.9%** year-over-year[10](index=10&type=chunk) - Aimco has executed a contract to sell its five-property suburban Boston portfolio for **$740 million**, and combined with the pending sale of the Brickell Assemblage, expects to close **$1.26 billion** of asset sales in 2025[7](index=7&type=chunk) - These sales are expected to deliver net proceeds of approximately **$785 million** or **$5.21 per share**, with plans to return between **$4.00 and $4.20** to stockholders[7](index=7&type=chunk) [CEO Commentary](index=3&type=section&id=CEO%20Commentary) The CEO emphasizes Aimco's commitment to value creation through active portfolio management, strategic development, and capital allocation, including significant asset sales and debt reduction - Aimco is focused on creating **value** through effective management of its apartment portfolio and development projects, while actively exploring opportunities to unlock value for stockholders through **strategic transactions** and **prudent capital allocation**[6](index=6&type=chunk) - Following the Boston and Brickell asset sales, Aimco's remaining portfolio will consist of **15 Stabilized Operating Properties** (2,524 homes, **$46 million** annualized Property NOI in Q2), three newly completed residential communities (933 homes, 114K sq ft retail, projected **$40 million** Property NOI when stabilized in 2027), one active development project (Miami waterfront, completion 2027), and an experienced development and investment management platform and pipeline[8](index=8&type=chunk) - Aimco plans to utilize a portion of sales proceeds to repay its revolving credit facility and reduce third-party preferred equity funding, reducing the cost of leverage by approximately **$7 million annually**[9](index=9&type=chunk) [Highlights](index=4&type=section&id=Highlights) This section details key operational and strategic achievements, including the performance of stabilized properties, updates on development projects, significant disposition activities, balance sheet management, and the ongoing strategic review to enhance stockholder value [Operating Property Results](index=4&type=section&id=Operating%20Property%20Results) This section details the performance of stabilized operating properties, including occupancy rates, revenue growth, expense management, and effective rent increases for Q2 2025 Stabilized Operating Properties Performance (Q2 2025 vs. Q2 2024) | Metric | 2025 | 2024 | Variance | | :-------------------------------- | :----- | :----- | :------- | | Average Daily Occupancy | 95.8% | 96.3% | (0.5)% | | Revenue, before utility reimbursements (in millions) | $35.4 | $34.7 | 1.9% | | Expenses, net of utility reimbursements (in millions) | 11.2 | 10.7 | 3.9% | | Property NOI (in millions) | 24.2 | 24.0 | 1.1% | - Average monthly revenue per apartment home increased by **2.5%** to **$2,349** in Q2 2025[13](index=13&type=chunk)[14](index=14&type=chunk) - Effective rents during Q2 2025 were **6.2%** higher on average than the previous lease, with new leases up **5.5%** and renewals up **6.5%**[14](index=14&type=chunk) - The median annual household income of new residents was **$124,000** in Q2 2025, representing a rent-to-income ratio of **20%**[14](index=14&type=chunk) [Value Add and Opportunistic Investments](index=5&type=section&id=Value%20Add%20and%20Opportunistic%20Investments) This section outlines the status of Aimco's multifamily development projects, including those under construction, in lease-up, or stabilizing operations, along with capital investment details - As of June 30, 2025, Aimco had **one multifamily development project** under construction (34th Street), **two substantially completed communities** in lease-up (Upton Place, Strathmore Square), and **one that completed lease-up** and is stabilizing operations (Oak Shore)[16](index=16&type=chunk)[19](index=19&type=chunk) - During Q2 2025, **$21.4 million** of capital was invested in development and redevelopment activities, primarily funded through construction loan and preferred equity draws[17](index=17&type=chunk) - Upton Place (Washington D.C.) was **73% leased/pre-leased** and **61% occupied** as of July 31, 2025, with **92% of retail space leased**[19](index=19&type=chunk) - Construction at 34th Street (Miami) remains **on schedule and on budget**, with first residents expected in 3Q 2027 and stabilization in 4Q 2028[19](index=19&type=chunk) [Investment & Disposition Activity](index=6&type=section&id=Investment%20%26%20Disposition%20Activity) This section reports on significant asset disposition activities, including the sales of the Boston portfolio and Brickell Assemblage, and the expected net proceeds and planned stockholder returns - Aimco entered into a definitive agreement in August 2025 to sell its portfolio of five apartment properties in suburban Boston for **$740 million**, with four sales expected to close in Q3 and the final asset in Q4 2025[23](index=23&type=chunk) - The buyer of the Brickell Assemblage exercised its final closing extension option in July, increasing the non-refundable deposit to **$50 million**, with closing now scheduled for Q4 2025[23](index=23&type=chunk) - Gross proceeds from the Boston and Brickell transactions are expected to equal **$1.26 billion**, with net proceeds of approximately **$785 million**, or **$5.21 per share**[23](index=23&type=chunk) - Aimco plans to return between **$4.00 and $4.20 per share** to stockholders following the closing of the Brickell and Boston Portfolio transactions[23](index=23&type=chunk) [Balance Sheet and Financing Activity](index=6&type=section&id=Balance%20Sheet%20and%20Financing%20Activity) This section provides an overview of Aimco's liquidity, net leverage, and debt structure as of June 30, 2025, highlighting fixed-rate debt and recent financing actions - As of June 30, 2025, Aimco had access to **$173.5 million** in liquidity, including **$41.4 million** of cash on hand and **$105.7 million** capacity on its revolving credit facility[22](index=22&type=chunk) Aimco Net Leverage as of June 30, 2025 (in thousands) | Aimco Share, $ in thousands | Amount | | :---------------------------------- | :------------- | | Total non-recourse fixed rate debt | $693,017 | | Total non-recourse construction loan debt | 376,918 | | Total property debt secured by assets held for sale | 158,690 | | Revolving Credit Facility | 42,800 | | Cash and restricted cash | (67,542) | | Net Leverage | $1,203,883 | - **100%** of Aimco's total debt was either fixed rate or hedged with interest rate cap protection as of June 30, 2025, with **no debt maturing prior to June 2027** (including contractual extensions)[24](index=24&type=chunk) - In May, Aimco borrowed **$42.8 million** on its revolving credit facility to pay off a mezzanine loan with a **13.0% interest rate**, approximately **650 basis points** higher than the credit facility's average rate[28](index=28&type=chunk) [Commitment to Enhance Stockholder Value](index=7&type=section&id=Commitment%20to%20Enhance%20Stockholder%20Value) This section details Aimco's strategic review process initiated to maximize stockholder value, exploring potential sales, mergers, or accelerated asset dispositions, alongside share repurchase activities - Aimco's Board of Directors announced on January 9, 2025, its decision to **explore additional alternatives** to unlock and **maximize stockholder value**, including a potential sale or merger of Aimco, sales of major business components, or an acceleration of individual asset sales[26](index=26&type=chunk) - The strategic process was initiated due to AIV shares trading at a **meaningful discount** to Aimco's estimate of the private market value of its assets and investment platform[25](index=25&type=chunk) - Morgan Stanley & Co. LLC is serving as financial advisor to Aimco for the strategic process[26](index=26&type=chunk) - In January 2025, prior to the strategic review announcement, Aimco repurchased **29,498 shares** of its common stock at a weighted average price of **$8.66 per share**. Since the start of 2022, Aimco has repurchased **14.5 million shares**[28](index=28&type=chunk) [2025 Outlook](index=8&type=section&id=Outlook) Aimco updated its 2025 outlook, withdrawing prior guidance for Stabilized Operating Properties due to the substantial impact of the Boston transaction. The revised forecast includes a significantly higher diluted net income per share range, reflecting estimated gains from announced asset sales - Aimco **withdraws prior guidance** for revenue, expense, and Property NOI for its Stabilized Operating Properties due to the Boston transaction's substantial impact on the portfolio composition[29](index=29&type=chunk) 2025 Forecast (Full Year, $ in millions except per share amounts) | Metric | YTD Results (2Q 2025) | Forecast (2025) | Prior Forecast (2025) | | :------------------------------------------ | :-------------------- | :---------------- | :-------------------- | | Net income (loss) per share – diluted | $(0.24) | $5.20 - $5.40 | $1.50 - $1.60 | | Total Direct Costs of Projects in Occupancy Stabilization at Period End | $585 | $68 | $68 | | Total Direct Costs of Projects Under Construction at Period End | $240 | $240 | $240 | | Direct Project Costs on Active Developments | $29 | $50 - $60 | $50 - $60 | | Direct Planning Costs | $4 | $7 - $10 | $7 - $10 | | Acquisitions | None | None | None | | Dispositions | None | $1,260 - $1,280 | $520 - $540 | | General and Administrative | $16 | $32 - $33 | $33 - $34 | | Interest Expense, net of capitalization | $33 | $60 - $62 | $63 - $65 | - The diluted net income (loss) per share forecast includes **estimated gains** from the announced transactions which are under contract[30](index=30&type=chunk) [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations for the three and six months ended June 30, 2025, show a net loss attributable to Aimco of $(19.3) million and $(33.2) million, respectively, representing an improvement compared to the prior year. Rental and other property revenues increased year-over-year Consolidated Statements of Operations (Selected Data, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Rental and other property revenues | $52,758 | $51,148 | $105,110 | $101,350 | | Total operating expenses | $47,353 | $52,244 | $95,019 | $101,460 | | Net income (loss) attributable to Aimco | $(19,305) | $(60,526) | $(33,221) | $(70,712) | | Net income (loss) attributable to common stockholders per share – diluted | $(0.14) | $(0.43) | $(0.24) | $(0.50) | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Aimco's total assets were $1.87 billion, with total liabilities of $1.59 billion. The company reported a decrease in cash and cash equivalents compared to December 31, 2024, while total indebtedness slightly increased Consolidated Balance Sheets (Selected Data, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Total real estate (net) | $1,269,558 | $1,247,833 | | Cash and cash equivalents | $41,385 | $141,072 | | Assets held for sale, net | $275,892 | $276,079 | | Total assets | $1,869,810 | $1,956,910 | | Total indebtedness | $1,098,432 | $1,070,660 | | Total liabilities | $1,587,362 | $1,644,613 | | Total equity | $136,342 | $169,366 | [Supplemental Schedule 1 – EBITDAre and Adjusted EBITDAre](index=13&type=section&id=Schedule%201%20%E2%80%93%20EBITDAre%20and%20Adjusted%20EBITDAre) Aimco reported EBITDAre of $23.2 million for the three months ended June 30, 2025, and $88.7 million for the twelve months ended June 30, 2025. Adjusted EBITDAre for the same periods was $18.9 million and $76.6 million, respectively EBITDAre and Adjusted EBITDAre (in thousands) | Metric | Three Months Ended June 30, 2025 | Twelve Months Ended June 30, 2025 | | :-------------------- | :------------------------------- | :-------------------------------- | | Net income (loss) | $(16,976) | $(56,389) | | EBITDAre | $23,207 | $88,662 | | Adjusted EBITDAre | $18,894 | $76,562 | [Supplemental Schedule 2 – Aimco Leverage and Maturities](index=14&type=section&id=Schedule%202%20%E2%80%93%20Aimco%20Leverage%20and%20Maturities) As of June 30, 2025, Aimco's net leverage was $1.2 billion, with a weighted average maturity of 4.9 years for total non-recourse debt. The schedule details the composition of debt, including fixed rate and construction loans, and outlines debt maturities through 2033, as well as common stock and partnership units Aimco Net Leverage as of June 30, 2025 (in thousands) | Aimco Share, $ in thousands | Amount | Weighted Avg. Maturity (Yrs.) | | :---------------------------------- | :------------- | :---------------------------- | | Total non-recourse fixed rate debt | $693,017 | 6.3 | | Total non-recourse construction loan debt | 376,918 | 2.4 | | Total property debt secured by assets held for sale | 158,690 | | | Revolving Credit Facility | 42,800 | | | Cash and restricted cash | (67,542) | | | Net Leverage | $1,203,883 | | - Total non-recourse debt (Aimco Share) was **$1,069,935 thousand** with a weighted average maturity of **4.9 years** and a weighted average stated interest rate of **5.25%** (**5.20%** capped)[51](index=51&type=chunk) Aimco Share Non-Recourse Debt Maturities (Excluding Assets Held for Sale, in thousands) | Year | Total (in thousands) | Percent of Total | Average Rate (Capped) | | :--- | :------------------- | :--------------- | :-------------------- | | 2025 | $94,992 | 8.79% | 6.60% | | 2026 | $24,092 | 2.06% | 7.91% | | 2027 | $2,115 | — | — | | 2028 | $256,892 | 23.80% | 6.69% | | 2029 | $181,923 | 16.79% | 4.66% | | 2030 | $2,363 | — | — | | 2031 | $106,204 | 9.77% | 3.20% | | 2032 | $221,751 | 20.72% | 4.62% | | 2033 | $173,435 | 16.21% | 4.60% | | Thereafter | $6,168 | 0.58% | 3.25% | Common Stock, Partnership Units, and Equivalents (as of June 30, 2025, in thousands) | Metric | Amount (in thousands) | | :------------------------------------------ | :------- | | Class A Common Stock Outstanding | 137,377 | | Participating unvested restricted stock | 1,938 | | Potentially dilutive options, share equivalents, and non-participating unvested restricted stock | 2,323 | | Total shares and potentially dilutive share equivalents | 141,638 | | Common Partnership Units and equivalents outstanding | 9,050 | | Total shares, units and potentially dilutive share equivalents | 150,688 | [Supplemental Schedule 3 – Aimco Portfolio](index=15&type=section&id=Schedule%203%20%E2%80%93%20Aimco%20Portfolio) Aimco's total portfolio consists of 37 properties, including 6,789 apartment homes, 443.2 thousand square feet of office and retail space, and 106 hotel keys. The portfolio is diversified across stabilized operating properties, development projects, and land held for future development Aimco Portfolio (as of June 30, 2025) | Category | Number of Properties | Apartment Homes | Office and Retail Sq Ft | Hotel Keys | Development Land (Acres) | | :-------------------------------- | :------------------- | :-------------- | :---------------------- | :--------- | :----------------------- | | Stabilized Operating Properties | 20 | 5,243 | 26.4 | - | - | | Other Real Estate | 1 | - | - | 106 | - | | Development and Redevelopment - Owned | 3 | 1,023 | 121.1 | - | - | | Development and Redevelopment - Land | 5 | - | - | - | 20.8 | | Development and Redevelopment - Leased | 1 | 24 | - | - | - | | Held for Sale | 2 | 357 | 295.7 | - | - | | **Total Consolidated** | **32** | **6,647** | **443.2** | **106** | **20.8** | | Unconsolidated | 5 | 142 | - | - | - | | **Total Portfolio** | **37** | **6,789** | **443.2** | **106** | **20.8** | - Assets classified as Held for Sale as of June 30, 2025, include Aimco's 1001 Brickell Bay Drive office tower and Yacht Club Apartments[60](index=60&type=chunk) [Supplemental Schedule 4 – Aimco Capital Additions](index=16&type=section&id=Schedule%204%20%E2%80%93%20Aimco%20Capital%20Additions) Aimco's total capital additions for the second quarter of 2025 amounted to $28.1 million, with $21.4 million allocated to development and redevelopment activities. Year-to-date capital additions totaled $51.6 million Total Capital Additions (in thousands) | Category | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :-------------------------- | :------------------------------- | :------------------------------- | | Capital Replacements and Casualty | $5,063 | $7,801 | | Property Upgrades | $819 | $865 | | Tenant Improvements | $833 | $887 | | Development and Redevelopment | $21,430 | $42,039 | | **Total Capital Additions** | **$28,145** | **$51,592** | - Second quarter 2025 total capital additions include **$16.6 million** of Direct Capital Investment (**$14.1 million** on active projects and **$2.5 million** on projects in planning)[61](index=61&type=chunk) [Supplemental Schedule 5 – Aimco Development and Redevelopment Project Summaries](index=17&type=section&id=Schedule%205%20%E2%80%93%20Aimco%20Development%20and%20Redevelopment%20Project%20Summaries) This schedule provides detailed summaries of Aimco's active development projects and future pipeline, outlining units, commercial space, and estimated timelines for construction and stabilization [Aimco Active Development Project Summaries](index=17&type=section&id=Aimco%20Active%20Development%20Project%20Summaries) Aimco has four active development projects: Upton Place, Strathmore Square, 34th Street, and Oak Shore. Most are in lease-up or nearing completion, with 34th Street in Miami being the primary active construction project. The total estimated stabilized Property NOI for the development portfolio is $60.5 million Aimco Active Development Project Summaries (as of June 30, 2025, dollars in millions) | Project Name | Location | Units | Units Leased or Pre-Leased | Retail Sq Ft | Initial Occupancy | Stabilized Occupancy | Planned Direct Capital Investment | To-Date Direct Capital Investment | Remaining Direct Capital Investment | | :---------------- | :--------------- | :---- | :----------------------- | :----------- | :---------------- | :------------------- | :------------------------------- | :------------------------------ | :-------------------------------- | | Upton Place | Washington, D.C. | 689 | 69% | 105,053 | 4Q 2023 | 4Q 2025 | $242.0 | $241.2 | $0.8 | | Strathmore Square | Bethesda, MD | 220 | 75% | 9,000 | 2Q 2024 | 4Q 2025 | $156.5 | $156.1 | $0.4 | | 34th Street | Miami, FL | 114 | — | 7,000 | 3Q 2027 | 4Q 2028 | $211.7 | $60.3 | $151.4 | | Oak Shore | Corte Madera, CA | 24 | 96% | — | 4Q 2023 | 2Q 2025 | $47.2 | $47.2 | - | | **Total** | | **1,047** | | **121,053** | | | **$657.4** | **$504.8** | **$152.6** | - The estimated Stabilized Property NOI for the total development portfolio is **$60.5 million**[63](index=63&type=chunk)[65](index=65&type=chunk) [Aimco Development and Redevelopment Pipeline Projects](index=18&type=section&id=Aimco%20Development%20and%20Redevelopment%20Pipeline%20Projects) Aimco controls a robust pipeline of future development projects, primarily in Southeast Florida, the Washington D.C. Metro Area, and Colorado's Front Range, with the potential to deliver 3,708 multifamily units and over 1 million square feet of commercial space Aimco Development and Redevelopment Pipeline Projects (Estimated / Currently Planned) | Project Name/Property Location | Multifamily Units | Commercial Sq Ft | Earliest Vertical Construction Start | | :------------------------------------ | :---------------- | :--------------- | :----------------------------------- | | **Southeast Florida** | | | | | 300 Broward (Fort Lauderdale) | 935 | 40,000 | 2026 | | 901 North (Flagler Village Phase I) | 690 | 230,000 | 2026 | | One Edgewater (Miami) | 204 | — | 2027 | | Flagler Village Phase II (Fort Lauderdale) | 300 | — | 2027 | | Flagler Village Phase III (Fort Lauderdale) | 300 | — | 2028 | | **Washington D.C. Metro Area** | | | | | Strathmore Square Phase II (Bethesda) | 399 | 11,000 | 2026 | | **Colorado's Front Range** | | | | | Fitzsimons 4 (Aurora) | 285 | — | 2026 | | Flying Horse (Colorado Springs) | 95 | — | 2026 | | Bioscience 4 (Aurora) | — | 225,000 | 2026 | | Fitzsimons 2 (Aurora) | 275 | — | 2026 | | Bioscience 5 (Aurora) | — | 190,000 | 2026 | | Fitzsimons 3 (Aurora) | 225 | — | 2027 | | Bioscience 6 (Aurora) | — | 315,000 | 2028 | | **Total Future Pipeline** | **3,708** | **1,011,000** | | - Aimco expects to fund pipeline development projects with **50% to 60% loan-to-cost** construction loans, **10% to 15% Aimco equity**, and the remaining costs funded with Co-GP and/or LP equity[68](index=68&type=chunk) [Supplemental Schedule 6 – Stabilized Operating Properties](index=19&type=section&id=Schedule%206%20%E2%80%93%20Stabilized%20Operating%20Properties) Aimco's Stabilized Operating Properties generated $24.2 million in Property NOI in Q2 2025, a 1.1% increase year-over-year. Performance varied by market, with Boston showing 5.4% NOI growth, while New York City experienced a 12.6% decline due to commercial tenant vacancy, and Other Markets saw a 10.4% decline due to higher real estate taxes Stabilized Operating Results (Q2 2025 vs. Q2 2024, in thousands) | Market | Apartment Homes | Revenues, Before Utility Reimbursements (2025, in thousands) | Revenues, Before Utility Reimbursements (2024, in thousands) | Revenue Growth | Expenses, Net of Utility Reimbursements (2025, in thousands) | Expenses, Net of Utility Reimbursements (2024, in thousands) | Expense Growth | Property NOI (2025, in thousands) | Property NOI (2024, in thousands) | NOI Growth | Average Daily Occupancy (2025) | Average Daily Occupancy (2024) | Average Revenue per Apartment Home (2025) | Average Revenue per Apartment Home (2024) | | :------------- | :-------------- | :--------------------------------------------- | :--------------------------------------------- | :------------- | :--------------------------------------------- | :--------------------------------------------- | :------------- | :-------------------- | :-------------------- | :--------- | :----------------------------- | :----------------------------- | :----------------------------------------- | :----------------------------------------- | | Boston | 2,719 | $17,434 | $16,850 | 3.5% | $4,687 | $4,760 | (1.5%) | $12,747 | $12,090 | 5.4% | 96.4% | 96.4% | $2,217 | $2,142 | | Chicago | 1,495 | $10,586 | $10,356 | 2.2% | $3,476 | $3,385 | 2.7% | $7,110 | $6,971 | 2.0% | 95.5% | 96.8% | $2,472 | $2,386 | | New York City | 150 | $2,060 | $2,129 | (3.2%) | $946 | $855 | 10.6% | $1,114 | $1,274 | (12.6%) | 98.6% | 98.4% | $4,644 | $4,809 | | Other Markets | 879 | $5,314 | $5,384 | (1.3%) | $2,057 | $1,747 | 17.7% | $3,257 | $3,637 | (10.4%) | 93.9% | 94.8% | $2,146 | $2,153 | | **Total** | **5,243** | **$35,394** | **$34,719** | **1.9%** | **$11,166** | **$10,747** | **3.9%** | **$24,228** | **$23,972** | **1.1%** | **95.8%** | **96.3%** | **$2,349** | **$2,292** | - Total Property NOI for Stabilized Operating Properties was **$49,291 thousand** year-to-date June 30, 2025, up **1.9%** compared to the same period in 2024[72](index=72&type=chunk) - Expenses in 'Other Markets' in Q2 2025 were unfavorably impacted primarily due to a multi-year property assessment at the Nashville property, which is being appealed[72](index=72&type=chunk) [Supplemental Schedule 7 – Acquisitions, Dispositions, and Leased Communities](index=20&type=section&id=Schedule%207%20%E2%80%93%20Acquisitions%2C%20Dispositions%2C%20and%20Leased%20Communities) In Q2 2025, Aimco's primary acquisition activity involved purchasing its development partner's interests in Strathmore Square for $2.1 million. This schedule also implicitly covers the significant dispositions discussed elsewhere, such as the Boston portfolio and Brickell Assemblage Partnership Acquisitions (May 2025) | Partnership Acquisitions | Location | Equity Acquired (in millions) | | :----------------------- | :----------- | :-------------- | | Strathmore Square | Bethesda, MD | $2.1 | | Total Partnership Acquisitions | | $2.1 | - In May, Aimco purchased its development partner's **5% common equity interest** in Strathmore Square for **$2.1 million** and the same partner's subordinated interest for **$2.9 million**[74](index=74&type=chunk) [Supplemental Schedule 8 – Net Asset Value Components](index=21&type=section&id=Schedule%208%20%E2%80%93%20Net%20Asset%20Value%20Components) This schedule provides a pre-tax breakdown of Aimco's Net Asset Value components as of Q2 2025, including annualized NOI from operating properties and developments, associated leverage, land investments, and expected proceeds from asset sales Net Asset Value Components (Q2 2025, in millions, pre-tax) | Component | Amount (in millions) | | :------------------------------------------------------------------------------------------------ | :----- | | Annualized NOI for Stabilized Operating Properties (proforma Boston sale) | $45.9 | | Annualized NOI for unconsolidated real estate at AIV share | $2.6 | | Projected annual NOI for DC Metro lease ups | $37.1 | | Projected annual NOI for other properties stabilizing operations | $5.4 | | Projected annual NOI for Aimco's 34th Street development | $18.0 | | Non-recourse property debt, net | $(451.8) | | Non-recourse construction loans, net | $(376.9) | | Preferred equity interests | $(146.1) | | Land, Planning and Entitlement Investment at cost (901 North) | $100.0 | | Land, Planning and Entitlement Investment at cost (Other land and development pipeline) | $41.0 | | Expected proceeds from assets held for sale | $1,260.0 | | Liabilities associated with assets held for sale (debt, taxes, transaction costs) | $(474.2) | | IQHQ and Real Estate Tech Fund Investments | $15.8 | | Cash and cash equivalents | $41.4 | | Restricted cash | $26.4 | | Notes receivable | $59.8 | | Fair value adjustment on fixed rate property debt & preferred equity | $36.5 | | Amounts drawn on Aimco's revolving secured credit facility | $(42.8) | | Other liabilities, net | $(135.9) | | Common Stock, Partnership Units and Equivalents (in millions) | 150.7 | - Aimco estimates the value of entitlements secured or accretive planning investment, not included in land inventory, to be at least **$30 million**[80](index=80&type=chunk) [Supplemental Schedule 9 – Asset List](index=22&type=section&id=Schedule%209%20%E2%80%93%20Asset%20List) This schedule provides a comprehensive list of Aimco's operating apartment communities, recently completed developments, active development projects, development land, partnership-owned properties, non-core & alternative investments, and planned/announced dispositions - Operating Apartment Communities include properties in New York, Chicago, Denver, Nashville, Atlanta, and various locations in Illinois and California[84](index=84&type=chunk) - Recently Completed Developments include Oak Shore (Corte Madera, CA), Upton Place (Washington, DC), and Strathmore Square Phase 1 (Bethesda, MD)[84](index=84&type=chunk) - Active Development is 34th Street in Miami, FL[84](index=84&type=chunk) - Planned / Announced Dispositions include the Brickell Assemblage (1001 Brickell Bay Drive, Yacht Club at Brickell) and the Boston Portfolio (Royal Crest Estates in Warwick, Nashua, Marlborough; Waterford Village; Wexford Village)[86](index=86&type=chunk) [Glossary and Reconciliations of Non-GAAP Financial and Operating Measures](index=23&type=section&id=Glossary%20and%20Reconciliations%20of%20Non-GAAP%20Financial%20and%20Operating%20Measures) This section defines key non-GAAP financial and operating measures used by Aimco and provides reconciliations to their most directly comparable GAAP measures [Non-GAAP Financial and Operating Measures Definitions](index=23&type=section&id=Non-GAAP%20Financial%20and%20Operating%20Measures%20Definitions) This subsection provides definitions for various non-GAAP financial and operating measures, including Average Revenue per Apartment Home, Capital Additions, Direct Capital Investment, EBITDAre, Adjusted EBITDAre, Net Asset Value, NOI Margin, Other Expenses, Net, Other Liabilities, Net, and Preferred Equity Interests - EBITDAre is defined as GAAP net income adjusted for interest expense, income taxes, depreciation and amortization, gains/losses on dispositions of depreciated property, impairment write-downs, and Aimco's share of unconsolidated partnerships' EBITDAre[94](index=94&type=chunk)[95](index=95&type=chunk) - Adjusted EBITDAre further adjusts EBITDAre to exclude net income/loss attributable to noncontrolling interests, realized/unrealized gains/losses on interest rate contracts, unrealized gains/losses on passive equity investments, and mezzanine investment income/loss[97](index=97&type=chunk)[102](index=102&type=chunk) - Property NOI is defined as total rental and other property revenues (excluding utility reimbursements) less property operating expenses (including utility reimbursements) for consolidated apartment communities[101](index=101&type=chunk) Capital Additions Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | | Total Capital additions (per Note 8 in Aimco's 10-Q) | $27,694 | $50,915 | | Adjustment: Incidental revenues and other adjustments that reduce capital expenditures for GAAP | 451 | 677 | | **Total Capital Additions (per Schedule 4)** | **$28,145** | **$51,592** | [Property NOI Reconciliation](index=25&type=section&id=Property%20NOI%20Reconciliation) This section reconciles GAAP income (loss) before income tax benefit to total Property NOI, and further breaks down total Property NOI into Stabilized Operating, Other Real Estate, and Non-stabilized/unallocated amounts Reconciliation of GAAP Income (Loss) Before Income Tax Benefit to Total Property NOI (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Income (loss) before income tax benefit | $(11,405) | $(63,291) | $(23,202) | $(73,216) | | Adjustments (Depreciation, G&A, Interest, Gains/Losses, Other) | 41,000 | 91,882 | 82,055 | 130,810 | | **Total Property NOI** | **$29,566** | **$28,591** | **$58,853** | **$57,594** | Property NOI Breakdown (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Stabilized Operating | $24,228 | $23,972 | $49,291 | $48,371 | | Other Real Estate | (340) | 207 | (984) | (365) | | Non-stabilized and other amounts not allocated | 5,678 | 4,412 | 10,546 | 9,588 | | **Total Property NOI** | **$29,566** | **$28,591** | **$58,853** | **$57,594** | [Real Estate Classifications](index=26&type=section&id=Real%20Estate%20Classifications) This section defines Aimco's classifications for its real estate portfolio, including Development and Redevelopment (Owned, Land, Leased), Stabilized Operating Properties, Other Real Estate, and Assets Held for Sale - Development and Redevelopment - Owned includes apartment communities under construction or in pre-construction that have not achieved a stabilized level of operations[109](index=109&type=chunk) - Stabilized Operating Properties are apartment communities owned and asset managed by Aimco that reached and maintained a stabilized level of operations as of January 1, 2024, and are not expected to be sold within 12 months[111](index=111&type=chunk) - Assets Held for Sale include those assets that, as of the last day of the quarter, were under contract with non-refundable deposits[112](index=112&type=chunk)
Aimco Reports Second Quarter 2025 Results and Recent Highlights
Prnewswire· 2025-08-11 20:15
Financial Results - Aimco reported a net loss attributable to common stockholders per share of $(0.14) for Q2 2025 and $(0.24) for the first half of 2025 [7] - Property Net Operating Income (NOI) from Stabilized Operating Properties was $24.2 million in Q2 2025, a 1.1% increase year-over-year, and $49.3 million year-to-date, up 1.9% year-over-year [7][10] - Revenue for Q2 2025 was $35.4 million, up 1.9% year-over-year, with average monthly revenue per apartment home increasing by 2.5% to $2,349 [13] CEO Commentary - Wes Powell, Aimco's CEO, emphasized the company's focus on value creation through effective management of its apartment portfolio and development projects, while exploring strategic transactions and capital allocation [2] Asset Sales - Aimco executed a contract to sell its five-property suburban Boston portfolio for $740 million, with total expected asset sales in 2025 reaching $1.26 billion [3][19] - The sales are projected to deliver net proceeds of approximately $785 million, or $5.21 per share, with plans to return between $4.00 and $4.20 to stockholders [3][19] Portfolio Overview - Post-sales, Aimco's remaining portfolio will include 15 Stabilized Operating Properties with 2,524 apartment homes, three newly completed residential communities with 933 homes, and one active development project in Miami [4] - The remaining properties produced $46 million of annualized Property NOI in Q2 2025, with rents 5.2% higher on leases transacted in July [4] Balance Sheet and Financing - As of June 30, 2025, Aimco had access to $173.5 million in liquidity, including $41.4 million in cash and $105.7 million available on its revolving credit facility [17] - Aimco's net leverage was $1.2 billion, with 100% of its total debt being fixed rate or hedged [18] Strategic Review Process - Aimco's Board of Directors is exploring additional alternatives to unlock and maximize stockholder value, including potential sales or mergers [22] - The strategic process is overseen by an independent Investment Committee, with Morgan Stanley & Co. LLC serving as financial advisor [22] 2025 Outlook - Aimco has withdrawn prior guidance for revenue, expense, and Property NOI for its Stabilized Operating Properties due to the significant impact of the Boston transaction [24] - The forecast for net income per share for 2025 is projected to be between $5.20 and $5.40 [25]
Aimco Announces Second Quarter 2025 Earnings Date
Prnewswire· 2025-07-31 20:02
Group 1 - Aimco plans to report its 2025 second quarter results on August 11, 2025, after market close [1] - The earnings release will be accessible in the Investor Relations section of Aimco's 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 publicly traded on the New York Stock Exchange under the ticker AIV [2] - Additional information about Aimco can be found on its official website [2]
Apartment Investment and Management pany(AIV) - 2025 Q1 - Quarterly Report
2025-05-08 20:20
[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents Aimco's unaudited Q1 2025 consolidated financial statements, including balance sheets, operations, equity, cash flows, and notes [Aimco: Condensed Consolidated Balance Sheets](index=5&type=section&id=Apartment%20Investment%20and%20Management%20Company%3A%20Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) This section provides a snapshot of Aimco's financial position at March 31, 2025, and December 31, 2024, detailing assets, liabilities, and equity Aimco: Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total real estate | $1,770,223 | $1,747,107 | | Net real estate | $1,256,355 | $1,247,833 | | Cash and cash equivalents | $49,147 | $141,072 | | Assets held for sale, net | $275,929 | $276,079 | | Total assets | $1,872,765 | $1,956,910 | | LIABILITIES AND EQUITY (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total indebtedness | $1,082,995 | $1,070,660 | | Total liabilities | $1,570,211 | $1,644,613 | | Total Aimco equity | $110,486 | $122,957 | | Total equity | $156,163 | $169,366 | | Total liabilities and equity | $1,872,765 | $1,956,910 | - Total assets decreased from **$1.96 billion** at December 31, 2024, to **$1.87 billion** at March 31, 2025, primarily due to a significant reduction in cash and cash equivalents[19](index=19&type=chunk) - Cash and cash equivalents saw a substantial decrease from **$141.07 million** to **$49.15 million**[19](index=19&type=chunk) [Aimco: Condensed Consolidated Statements of Operations](index=6&type=section&id=Apartment%20Investment%20and%20Management%20Company%3A%20Condensed%20Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) This section details Aimco's financial performance for the three months ended March 31, 2025, and the comparative period Aimco: Condensed Consolidated Statements of Operations (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Rental and other property revenues | $52,352 | $50,203 | | Total operating expenses | $47,666 | $49,216 | | Net income (loss) | $(11,712) | $(7,196) | | Net income (loss) attributable to Aimco | $(13,916) | $(10,186) | | Net income (loss) attributable to Aimco per common share – basic | $(0.10) | $(0.07) | - Net loss attributable to Aimco increased from **$(10.19) million** in Q1 2024 to **$(13.92) million** in Q1 2025[21](index=21&type=chunk) - Rental and other property revenues increased by **$2.15 million (4.3%)** year-over-year[21](index=21&type=chunk) [Aimco: Condensed Consolidated Statements of Equity](index=7&type=section&id=Apartment%20Investment%20and%20Management%20Company%3A%20Condensed%20Consolidated%20Statements%20of%20Equity%20%28Unaudited%29) This section outlines changes in Aimco's consolidated equity for the three months ended March 31, 2025 Aimco: Condensed Consolidated Statements of Equity (in thousands) | (in thousands) | Balances at Dec 31, 2024 | Net income (loss) | Share-based compensation expense | Other, net | Balances at Mar 31, 2025 | | :------------- | :----------------------- | :---------------- | :------------------------------- | :--------- | :----------------------- | | Total Aimco Equity | $122,957 | $(13,916) | $1,352 | $(552) | $110,486 | - Total Aimco equity decreased from **$122.96 million** at December 31, 2024, to **$110.49 million** at March 31, 2025, primarily due to net loss[23](index=23&type=chunk) [Aimco: Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Apartment%20Investment%20and%20Management%20Company%3A%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) This section presents Aimco's cash flow activities for the three months ended March 31, 2025, and the comparative period Aimco: Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $3,828 | $21,712 | | Net cash used in investing activities | $(19,748) | $(41,089) |\ | Net cash provided by (used in) financing activities | $(79,799) | $20,513 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $(95,719) | $1,136 | | Cash, cash equivalents and restricted cash at end of period | $77,237 | $140,403 | - Net cash provided by operating activities decreased significantly from **$21.71 million** in Q1 2024 to **$3.83 million** in Q1 2025[25](index=25&type=chunk) - Net cash used in financing activities was **$(79.80) million** in Q1 2025, a substantial change from **$20.51 million** provided in Q1 2024, primarily due to dividend payments[25](index=25&type=chunk) [Aimco OP L.P.: Condensed Consolidated Balance Sheets](index=9&type=section&id=Aimco%20OP%20L.P.%3A%20Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) This section presents the financial position of Aimco OP L.P. at March 31, 2025, and December 31, 2024 Aimco OP L.P.: Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total real estate | $1,770,223 | $1,747,107 | | Net real estate | $1,256,355 | $1,247,833 | | Cash and cash equivalents | $49,147 | $141,072 | | Assets held for sale, net | $275,929 | $276,079 | | Total assets | $1,872,765 | $1,956,910 | | LIABILITIES AND PARTNERS' CAPITAL (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total indebtedness | $1,082,995 | $1,070,660 | | Total liabilities | $1,570,211 | $1,644,613 | | Total partners' capital | $156,163 | $169,366 | | Total liabilities and partners' capital | $1,872,765 | $1,956,910 | - Aimco OP L.P.'s balance sheet mirrors Aimco's, showing a decrease in total assets and cash and cash equivalents, reflecting the consolidated nature of their operations[28](index=28&type=chunk) [Aimco OP L.P.: Condensed Consolidated Statements of Operations](index=10&type=section&id=Aimco%20OP%20L.P.%3A%20Condensed%20Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) This section details the financial performance of Aimco OP L.P. for the three months ended March 31, 2025, and the comparative period Aimco OP L.P.: Condensed Consolidated Statements of Operations (in thousands, except per unit data) | (in thousands, except per unit data) | Three Months Ended March 31, 2025 |
Apartment Investment and Management pany(AIV) - 2025 Q1 - Quarterly Results
2025-05-08 20:15
[Earnings Release](index=3&type=section&id=Earnings%20Release) Aimco reported a Q1 2025 net loss of $(0.10) per share while highlighting strong rental demand, progress on developments, a major asset sale, and the exploration of strategic alternatives [Financial Results and CEO Commentary](index=3&type=section&id=Financial%20Results%20and%20CEO%20Commentary) The CEO highlighted strong portfolio demand, progress on lease-ups and construction, a flexible balance sheet, and key strategic actions including a special dividend and a major asset sale Q1 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Loss per Share (diluted) | $(0.10) | | Stabilized Properties NOI Growth (YoY) | 2.7% | - Effective rental rate growth at stabilized properties accelerated in April, increasing **5.8%** over the prior lease, with average daily occupancy remaining strong at over **97%**[7](index=7&type=chunk) - The company is progressing with the lease-up of newly constructed communities in Corte Madera, CA, and the Washington, D.C. market, with stabilization expected by **year-end 2025**[8](index=8&type=chunk) - A **$520 million** contract to sell the Brickell Assemblage in Miami is scheduled to close later in the year, with the buyer increasing its non-refundable deposit to **$43 million**[11](index=11&type=chunk) - In Q1, Aimco returned **$0.60 per share** to stockholders as a special dividend, representing net proceeds from 2024 asset sales[11](index=11&type=chunk) [Operating Property Results](index=4&type=section&id=Operating%20Property%20Results) Stabilized Operating Properties saw year-over-year revenue, expense, and NOI growth of 2.7% each, with effective rents on new and renewal leases rising 5.2% Stabilized Operating Properties Performance (Q1 2025 vs Q1 2024) | Stabilized Operating Properties (Q1 2025 vs Q1 2024) | 2025 | 2024 | Variance | | :--- | :--- | :--- | :--- | | Average Daily Occupancy | 97.9% | 97.9% | — | | Revenue, before utility reimbursements ($M) | $35.6 | $34.6 | 2.7% | | Expenses, net of utility reimbursements ($M) | $10.5 | $10.2 | 2.7% | | Net operating income (NOI) ($M) | $25.1 | $24.4 | 2.7% | - Effective rents in Q1 2025 were **5.2% higher** on average than the previous lease (new leases up 4.6%, renewals up 6.6%), a trend that accelerated in April to **5.8%**[16](index=16&type=chunk) - Sequentially, NOI decreased by **3.4%** from Q4 2024, primarily due to a 9.6% increase in expenses from seasonal costs and higher real estate taxes[14](index=14&type=chunk)[16](index=16&type=chunk) [Value Add and Opportunistic Investments](index=5&type=section&id=Value%20Add%20and%20Opportunistic%20Investments) Aimco invested $20.6 million in development activities, advanced lease-ups at three communities, and progressed on its Miami waterfront tower and a major asset sale - Upton Place (Washington D.C.): **413 of 689 units** were leased or pre-leased, and **92% of retail space** was leased as of April 30, 2025[20](index=20&type=chunk) - Strathmore Square (Bethesda, MD): **132 of 220 units** were leased or pre-leased as of April 30, 2025[20](index=20&type=chunk) - 34th Street (Miami, FL): The ultra-luxury waterfront tower remains on schedule and budget, with over **97% of the project bought out** under a guaranteed maximum price contract[20](index=20&type=chunk) - The sale of the Brickell Assemblage for **$520 million** is proceeding, with the buyer increasing its non-refundable deposit to **$43 million** to extend the closing to August 2025[19](index=19&type=chunk)[23](index=23&type=chunk) [Balance Sheet and Financing Activity](index=6&type=section&id=Balance%20Sheet%20and%20Financing%20Activity) Aimco maintained a strong liquidity position of $225.2 million, with net leverage of $1.17 billion and no debt maturities before June 2027, including extensions Net Leverage (as of March 31, 2025) | Aimco Share Leverage (as of March 31, 2025) | Amount ($ thousands) | | :--- | :--- | | Total non-recourse fixed rate debt | $693,506 | | Total non-recourse construction loan debt | $397,573 | | Total property debt secured by assets held for sale | $159,226 | | Cash and restricted cash | $(76,417) | | **Net Leverage** | **$1,173,888** | - Total liquidity as of March 31, 2025, was **$225.2 million**, comprising cash, restricted cash, and availability on its revolving credit facility[21](index=21&type=chunk) - **100% of Aimco's total debt** was either fixed rate or hedged; including contractual extensions and pending asset sales, Aimco has no debt maturing before June 2027[22](index=22&type=chunk) [Public Market Equity and Stockholder Value](index=6&type=section&id=Public%20Market%20Equity%20and%20Stockholder%20Value) Aimco is exploring strategic alternatives to address its stock's discount to private market value, paid a special dividend, and repurchased shares in Q1 - The Board of Directors is exploring strategic alternatives to maximize stockholder value, including a **sale or merger of the company**, sales of business components, or accelerated individual asset sales[25](index=25&type=chunk) - A special cash dividend of **$0.60 per share** was paid on January 31, 2025, distributing net proceeds from 2024 asset sales[23](index=23&type=chunk) - In January 2025, Aimco repurchased **29,498 shares** of common stock at an average price of **$8.66 per share**[27](index=27&type=chunk) [2025 Outlook](index=8&type=section&id=Outlook) Aimco forecasts full-year 2025 diluted net income per share of $1.50 to $1.60, including gains from announced transactions, and NOI growth of 1.0% to 3.0% Full-Year 2025 Forecast | 2025 Forecast | Full Year 2025 | | :--- | :--- | | Net income per share – diluted | $1.50 - $1.60 | | **Operating Properties** | | | Revenue Growth | 2.5% - 3.5% | | Operating Expense Growth | 5.0% - 6.0% | | Net Operating Income Growth | 1.0% - 3.0% | | **Real Estate Transactions** | | | Dispositions ($ in millions) | $520 - $540 | - The net income per share forecast includes estimated gains from the announced sale of the **Brickell Assemblage**[28](index=28&type=chunk)[30](index=30&type=chunk) - Planned direct costs on active developments are projected to be **$50 - $60 million**, primarily for the 34th Street project, funded through committed construction loan and preferred equity draws[28](index=28&type=chunk)[29](index=29&type=chunk) [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) The company reported a Q1 net loss of $11.7 million on total assets of $1.87 billion and total liabilities of $1.57 billion as of March 31, 2025 [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, a rise in total revenues to $52.4 million was offset by higher interest expense, resulting in a net loss of $11.7 million, or $(0.10) per share Consolidated Statements of Operations Highlights | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Rental and other property revenues | $52,352 | $50,203 | | Total operating expenses | $47,666 | $49,216 | | Interest expense | $(17,438) | $(13,370) | | **Net income (loss)** | **$(11,712)** | **$(7,196)** | | Net income (loss) per share – diluted | $(0.10) | $(0.07) | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $1.87 billion and total liabilities fell to $1.57 billion, primarily due to a special dividend payment Consolidated Balance Sheets Highlights | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net real estate | $1,256,355 | $1,247,833 | | Assets held for sale, net | $275,929 | $276,079 | | Cash and cash equivalents | $49,147 | $141,072 | | **Total assets** | **$1,872,765** | **$1,956,910** | | Total indebtedness | $1,082,995 | $1,070,660 | | **Total liabilities** | **$1,570,211** | **$1,644,613** | | **Total Aimco equity** | **$110,486** | **$122,957** | [Supplemental Information](index=13&type=section&id=Supplemental%20Information) This section provides detailed schedules on non-GAAP reconciliations, debt, portfolio composition, capital spending, development projects, and Net Asset Value [Schedule 1 – EBITDAre and Adjusted EBITDAre](index=13&type=section&id=Schedule%201%20%E2%80%93%20EBITDAre%20and%20Adjusted%20EBITDAre) For Q1 2025, Aimco's GAAP net loss of $11.7 million reconciled to an EBITDAre of $22.4 million and an Adjusted EBITDAre of $19.7 million Reconciliation to EBITDAre and Adjusted EBITDAre | (in thousands) | Three Months Ended March 31, 2025 | | :--- | :--- | | Net income (loss) | $(11,712) | | Adjustments (Interest, D&A, etc.) | +$34,086 | | **EBITDAre** | **$22,374** | | Further Adjustments | $(2,639) | | **Adjusted EBITDAre** | **$19,735** | [Schedule 2 – Aimco Leverage and Maturities](index=14&type=section&id=Schedule%202%20%E2%80%93%20Aimco%20Leverage%20and%20Maturities) Aimco's $1.09 billion in non-recourse debt has a 5.0-year weighted average maturity, and with extensions, the first maturity is not until Q2 2027 Non-Recourse Debt Summary (Aimco Share) | Debt Type (Aimco Share) | Amount ($ thousands) | W.A. Maturity (Yrs) | W.A. Interest Rate | | :--- | :--- | :--- | :--- | | Fixed rate loans | $693,506 | 6.5 | 4.39% | | Construction loan debt | $397,573 | 2.4 | 7.40% | | **Total non-recourse debt** | **$1,091,079** | **5.0** | **5.50%** | - Including contractual extension options, the first debt maturity is in **Q2 2027**, and the weighted average maturity extends to **5.3 years**[51](index=51&type=chunk) [Schedule 3 – Aimco Portfolio](index=15&type=section&id=Schedule%203%20%E2%80%93%20Aimco%20Portfolio) Aimco's consolidated portfolio consists of 37 properties, including 20 stabilized operating properties with 5,243 apartment homes and multiple development projects Consolidated Portfolio Summary | Portfolio Category | Number of Properties | Apartment Homes | | :--- | :--- | :--- | | Stabilized Operating Properties | 20 | 5,243 | | Development and Redevelopment - Owned | 3 | 1,023 | | Development and Redevelopment - Land | 5 | - | | Held for Sale | 2 | 357 | | **Total Consolidated** | **32** | **6,647** | [Schedule 4 – Aimco Capital Additions](index=16&type=section&id=Schedule%204%20%E2%80%93%20Aimco%20Capital%20Additions) Aimco's total capital additions for Q1 2025 were $23.4 million, with the majority ($20.6 million) allocated to development and redevelopment projects Capital Additions (Q1 2025) | (in thousands) | Three Months Ended March 31, 2025 | | :--- | :--- | | Capital Replacements and Casualty | $2,738 | | Development and Redevelopment | $20,609 | | Other | $100 | | **Total Capital Additions** | **$23,447** | [Schedule 5 – Aimco Development and Redevelopment Project Summaries](index=17&type=section&id=Schedule%205%20%E2%80%93%20Aimco%20Development%20and%20Redevelopment%20Project%20Summaries) Aimco's active development pipeline includes three projects in lease-up and one under construction, with a future pipeline of over 3,700 multifamily units Active Development and Redevelopment Projects | Active Project | Location | Units | Status | Planned Capital ($M) | To-Date ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | | Upton Place | Washington, D.C. | 689 | Lease-up | $242.0 | $241.0 | | Strathmore Square | Bethesda, MD | 220 | Lease-up | $156.5 | $156.0 | | 34th Street | Miami, FL | 114 | Active Construction | $211.7 | $46.3 | | Oak Shore | Corte Madera, CA | 24 | Lease-up | $47.5 | $47.5 | - Aimco's future development pipeline includes projects with the potential for approximately **3,708 multifamily units** and over **1 million square feet** of commercial space[65](index=65&type=chunk) [Schedule 6 – Stabilized Operating Properties](index=19&type=section&id=Schedule%206%20%E2%80%93%20Stabilized%20Operating%20Properties) The 20 stabilized properties saw total NOI grow 2.7% year-over-year, led by Boston, while maintaining a high average occupancy of 97.9% Stabilized Properties Performance by Market (YoY) | Market (Q1 2025 vs Q1 2024) | Revenue Growth | Expense Growth | NOI Growth | Occupancy | | :--- | :--- | :--- | :--- | :--- | | Boston | 3.9% | 2.9% | 4.3% | 98.3% | | Chicago | 2.3% | 2.5% | 2.2% | 97.8% | | New York City | 4.7% | 9.4% | 0.6% | 99.7% | | **Total** | **2.7%** | **2.7%** | **2.7%** | **97.9%** | [Schedule 7 – Acquisitions, Dispositions, and Leased Communities](index=20&type=section&id=Schedule%207%20%E2%80%93%20Acquisitions%2C%20Dispositions%2C%20and%20Leased%20Communities) Aimco did not complete any acquisition or disposition transactions during the first quarter of 2025 - No acquisition or disposition transactions were completed during the first quarter of 2025[70](index=70&type=chunk) [Schedule 8 – Net Asset Value Components](index=21&type=section&id=Schedule%208%20%E2%80%93%20Net%20Asset%20Value%20Components) Aimco's pre-tax NAV components include $100.3 million in annualized NOI from stabilized properties and over $1.09 billion in property and construction debt Key Net Asset Value (NAV) Components | Key NAV Components (in millions) | 1Q 2025 Value | | :--- | :--- | | **Assets** | | | Annualized NOI for Stabilized Properties | $100.3 | | Projected Annual NOI for Development Projects | $61.6 | | Expected proceeds from assets held for sale | $520.0 | | **Liabilities** | | | Non-recourse property debt, net | $689.5 | | Non-recourse construction loans, net | $405.1 | | Liabilities associated with assets held for sale | $220.0 | [Glossary and Reconciliations of Non-GAAP Financial and Operating Measures](index=22&type=section&id=Glossary%20and%20Reconciliations%20of%20Non-GAAP%20Financial%20and%20Operating%20Measures) This section defines non-GAAP measures like EBITDAre and NOI, explains real estate classifications, and provides reconciliations to comparable GAAP figures - Defines key non-GAAP measures used by management, including **EBITDAre, Adjusted EBITDAre, and Property Net Operating Income (NOI)**[77](index=77&type=chunk)[81](index=81&type=chunk)[88](index=88&type=chunk) - Provides reconciliations for non-GAAP measures to their nearest GAAP equivalents, such as the reconciliation of GAAP rental revenues to NOI[91](index=91&type=chunk)[92](index=92&type=chunk) - Explains Aimco's real estate classifications, including **Stabilized Operating Properties, Development and Redevelopment, and Assets Held for Sale**[95](index=95&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)
Apartment Investment and Management pany(AIV) - 2024 Q4 - Annual Report
2025-02-24 22:05
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].
Apartment Investment and Management pany(AIV) - 2024 Q4 - Annual Results
2025-02-24 22:00
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].