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

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

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

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

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

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

Financial Performance - Aimco reported a net loss attributable to common stockholders of $(0.16) per share for Q3 2024, impacted by increased interest expenses and depreciation despite higher contributions from multifamily property operations[3]. - Net income (loss) attributable to Aimco for Q3 2024 was $(21,936,000), compared to $(2,260,000) in Q3 2023, indicating a significant decline[10]. - Adjusted EBITDAre for Q3 2024 was $19,201,000, down from $73,176,000 for the twelve months ended September 30, 2023[12]. - Cash and cash equivalents decreased to $82,620,000 as of September 30, 2024, from $122,601,000 at the end of 2023, a decline of 32.6%[11]. - Aimco's cash and restricted cash position is reported at $(110.4) million, indicating a need for liquidity management[33]. Revenue and Occupancy - Revenue from Stabilized Operating Properties increased by 4.1% year-over-year to $39.3 million, with average monthly revenue per apartment home rising by 2.4% to $2,415 and average daily occupancy increasing by 160 basis points to 96.8%[3][12]. - Total revenues for Q3 2024 reached $39.281 million, a 4.1% increase compared to Q3 2023[40]. - Average revenue per apartment home in Q3 2024 was $2,418, up from $2,358 in Q3 2023, indicating a 2.5% increase[40]. - Daily occupancy rate for Q3 2024 was 96.8%, slightly improved from 95.2% in Q3 2023[40]. - The median annual household income of new residents was $137,000 in Q3 2024, resulting in a rent-to-income ratio of 19.3%, a decline of 70 basis points from the previous quarter[14]. Operating Expenses - Total operating expenses increased to $54,632,000 in Q3 2024 from $44,330,000 in Q3 2023, representing a 23.2% rise[10]. - Operating expense growth, net of utility reimbursements, was 6.3% in Q3 2024, with a forecast range of 5.50% to 6.50% for the full year[24]. - Interest expense for Q3 2024 was $19,031,000, significantly higher than $8,252,000 in Q3 2023, marking an increase of 130.5%[10]. - Aimco's total expenses for utility reimbursements in September 2024 were $67.1 million, compared to $54.6 million in September 2023, marking a significant increase[51]. Debt and Financing - Aimco's total non-recourse fixed-rate debt was $773.5 million as of September 30, 2024, with a weighted average maturity of 6.5 years[19]. - Total indebtedness rose to $1,250,619,000 in Q3 2024, up from $1,147,741,000 at the end of 2023, reflecting an increase of 9.0%[11]. - Non-recourse construction loans increased to $405,840,000 in Q3 2024 from $301,443,000 at the end of 2023, an increase of 34.5%[11]. - Aimco secured commitments for $56 million of preferred equity and a $172 million construction loan for the financing of its 34th Street development in Miami[20]. Capital Allocation and Strategy - Aimco plans to prioritize return of capital to stockholders as part of its capital allocation strategy[23]. - The company has no acquisitions planned for 2024 but is considering dispositions, including recent agreements to sell properties in Miami[24]. - Aimco's commitment to simplify its portfolio and monetize certain assets aims to unlock embedded value and improve market positioning[23]. - Aimco's strategy includes potential future construction on land parcels held for development, enhancing growth opportunities[53]. Development and Future Projects - Aimco began construction on a $240 million ultra-luxury residential tower in Miami, with initial occupancy projected for mid-2027 and expected NOI yields exceeding 7% at stabilization[3][6]. - The development pipeline includes 12,700,000 square feet of future projects, with an estimated total future cost of $1.7 billion[38]. - The company plans to start vertical construction on several projects in 2025, including 3333 Biscayne Boulevard with 650 multifamily units[39]. - Aimco is expanding its market presence with new developments in Southeast Florida and Colorado's Front Range, including multiple projects scheduled for 2025 to 2028[39]. Portfolio and Asset Management - Aimco's total capital additions for Q3 2024 amounted to $34.4 million, with $29.6 million allocated to development and redevelopment projects[35]. - Aimco's total unconsolidated properties include 142 apartment homes and 6 properties, contributing to a total portfolio of 7,065 apartment homes[34]. - Aimco's pipeline size at period end included 12.7 million gross square feet and 5,858 multifamily units[24]. - Aimco sold a majority of its partnership interest in St. George Villas, a 40-unit property, with the remaining 1% under contract for disposition in Q1 2025[43].

Financial Results and Highlights - Aimco reported a net loss attributable to common stockholders per share of $(0.16) for Q3 2024, impacted by higher interest expenses and depreciation despite increased contributions from multifamily property operations [2] - Revenue from Stabilized Operating Properties increased by 4.1% year-over-year to $39.3 million, with average monthly revenue per apartment home rising by 2.4% to $2,415 and average daily occupancy increasing by 160 basis points to 96.8% [2][10] - NOI for Q3 2024 was $27.4 million, up 1.6% year-over-year, while year-to-date NOI reached $81.1 million, a 4.0% increase compared to the same period in 2023 [10][2] Development and Redevelopment Activities - Aimco began construction on a $240 million ultra-luxury residential tower in Miami's Edgewater neighborhood, expected to be completed by mid-2027 with projected NOI yields exceeding 7% at stabilization [2][5] - The company has two multifamily development projects under construction and two that are substantially completed, with all projects on track for delivery by year-end 2024 [12][6] - Aimco's total direct project costs for Upton Place and Strathmore Square are now expected to be $6 million less than prior estimates, enhancing the value of these projects [6] Capital Allocation and Stockholder Returns - Aimco announced agreements to sell its interests in two Miami investments for a total of $203.8 million, which will provide approximately $90 million to return to stockholders in Q1 2025 after retiring associated liabilities [8][17] - The company repurchased 4.5 million shares of common stock year-to-date at an average cost of $7.98 per share, continuing its strategy to utilize excess capital effectively [9][23] - Aimco's focus on prudent capital allocation includes monetizing assets when opportunities arise and investing in high-return projects [7][16] Market Outlook and Guidance - For the full year 2024, Aimco expects revenue growth between 3.75% and 4.25% and NOI growth between 2.50% and 3.75%, reflecting an increase of over 200 basis points at the mid-point compared to initial expectations [4][28] - The company continues to see strong consumer demand and limited new supply in its markets, contributing to positive revenue trends [4][10] - Aimco's strategic focus on reducing exposure to development activity and simplifying its portfolio is aimed at unlocking embedded value and enhancing stockholder returns [26][32]

DENVER, Oct. 28, 2024 /PRNewswire/ -- Apartment Investment and Management Company ("Aimco") (NYSE: AIV) announced today that it plans to report 2024 third quarter results on Thursday, November 7, 2024, after the market closes. Aimco's earnings release will be available in the Investor Relations section of its website at investors.aimco.com. About Aimco Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco's missi ...

DENVER, Oct. 9, 2024 /PRNewswire/ -- Apartment Investment and Management Company ("Aimco") (NYSE: AIV) announced today that it is under agreement to sell, for $204 million, its interests in two real estate investments in the Edgewater neighborhood of Miami, Florida. The two investments include the recently completed redevelopment of a 276-unit waterfront apartment building, known as The Hamilton, and Aimco's partnership interest in a 2.8-acre development site at 3333 Biscayne Boulevard.The Hamilton, where A ...