UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13232 (Apartment Investment and Management Company) Commission File Number: 0-56223 (Aimco OP L.P.) Apartment Investment and Manag ...

[Earnings Release and Outlook](index=3&type=section&id=Earnings%20Release%20and%20Outlook) This section details Aimco's Q2 2024 financial performance, strategic initiatives, and updated full-year guidance, highlighting operational strengths despite a net loss [Financial Results and Highlights](index=3&type=section&id=Financial%20Results%20and%20Highlights) Aimco reported a net loss of $(0.43) per share for Q2 2024 due to an impairment charge, but saw positive operational performance with a 4.1% year-over-year increase in Stabilized Operating Properties NOI Q2 2024 Key Performance Indicators | Metric | Value | Note | | :--- | :--- | :--- | | Net Loss per Share (diluted) | $(0.43) | Primarily due to a non-cash impairment charge on IQHQ investment | | Stabilized Operating Properties NOI Growth (YoY) | 4.1% | Revenue increased 4.6%, expenses increased 5.7% | | Average Monthly Revenue per Apartment Home | $2,392 | An increase of 4.4% YoY | | Common Stock Repurchased (Q2) | 3.0 million shares | At an average cost of $8.02 per share | - Construction at key development projects, including Upton Place, Strathmore Square, and Oak Shore, advanced as planned, with Upton Place substantially complete and leasing exceeding initial underwriting[9](index=9&type=chunk) [CEO Commentary](index=3&type=section&id=CEO%20Commentary) CEO Wes Powell highlighted solid Q2 results driven by NOI growth, strong leasing, on-schedule development, and active asset marketing, with significant stock repurchases returning capital to shareholders - Full-year guidance for 2024 has been revised upwards, with NOI growth now expected to be between **1.50% and 2.75%**, an increase of over 100 basis points at the midpoint[6](index=6&type=chunk) - Active development projects are progressing on schedule and budget, with over **600 new apartment homes** brought online and **250 new leases** executed year-to-date through July[7](index=7&type=chunk) - The company is advancing the sale of its two-property assemblage in Miami's Brickell neighborhood and The Hamilton redevelopment, with a preference for returning net proceeds to stockholders[8](index=8&type=chunk)[10](index=10&type=chunk) - Year-to-date as of July 31, 2024, Aimco has repurchased **4.2 million shares** at an average price of **$7.93 per share**, signaling confidence in the stock's value[10](index=10&type=chunk) [Operating Property Results](index=4&type=section&id=Operating%20Property%20Results) Aimco's Stabilized Operating Properties showed strong Q2 2024 performance with a 4.1% year-over-year NOI increase, driven by 4.6% revenue growth and stable occupancy, despite a 5.7% rise in expenses Stabilized Operating Properties Performance (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | Variance | | :--- | :--- | :--- | :--- | | Revenue | $38.7M | $37.0M | +4.6% | | Expenses | $12.2M | $11.5M | +5.7% | | Net Operating Income (NOI) | $26.5M | $25.5M | +4.1% | | Average Daily Occupancy | 96.3% | 96.2% | +0.1% | - Leasing activity remained robust, with effective rents on all new and renewal leases increasing by an average of **3.5%** over the previous lease, and a strong renewal rate of **65.8%**[14](index=14&type=chunk) - The financial profile of new residents is strong, with a median annual household income of **$126,000** and a rent-to-income ratio of **20.0%**[14](index=14&type=chunk) [Value Add and Opportunistic Investments](index=4&type=section&id=Value%20Add%20and%20Opportunistic%20Investments) Aimco is actively pursuing value-add and opportunistic investments, focusing on development projects with high barriers to entry and strategic dispositions, investing $29.8 million in Q2 development activities [Development and Redevelopment](index=4&type=section&id=Development%20and%20Redevelopment) Aimco's active development projects are progressing on schedule and budget, with significant leasing activity at newly delivered properties like Upton Place, Strathmore Square, and Oak Shore, and continued investment in a substantial future pipeline - **Upton Place (Washington D.C.):** Substantially complete with all **689 apartment homes** delivered; as of July 31, 2024, **240 units** were leased and **150 occupied**, with **88%** of the **105K sq ft** of retail space also leased[19](index=19&type=chunk) - **Strathmore Square (Bethesda, MD):** Construction is on plan; as of July 31, 2024, **175 of 220 homes** were delivered and **40 units** were leased at rates ahead of projections[19](index=19&type=chunk) - **Oak Shore (Corte Madera, CA):** Construction is ongoing; as of July 31, 2024, **13 of 24 residences** were delivered, with **7 occupied** and **2 pre-leased**[19](index=19&type=chunk) - In Q2 2024, Aimco invested **$3.3 million** in planning and entitlement for future pipeline projects in South Florida and Colorado[19](index=19&type=chunk) [Investment & Disposition Activity](index=5&type=section&id=Investment%20%26%20Disposition%20Activity) Aimco is actively marketing three properties for sale in the Miami market: the two-property Brickell Assemblage and The Hamilton, engaging in discussions with interested parties without commenting on specifics until definitive agreements are in place - The company is focused on monetizing assets when accretive uses for the proceeds are identified, aligning with its capital allocation strategy[16](index=16&type=chunk)[17](index=17&type=chunk) [Balance Sheet and Financing Activity](index=5&type=section&id=Balance%20Sheet%20and%20Financing%20Activity) Aimco maintains a strong balance sheet with $259.4 million in liquidity as of June 30, 2024, well-managed debt that is 100% fixed-rate or hedged, and no significant debt maturities until May 2026 Net Leverage as of June 30, 2024 (Aimco Share) | Debt Type | Amount (in thousands) | | :--- | :--- | | Total non-recourse fixed rate debt | $774,474 | | Total non-recourse floating rate debt | $90,660 | | Total non-recourse construction loan debt | $337,539 | | Cash and restricted cash | $(108,995) | | **Net Leverage** | **$1,093,678** | - As of June 30, 2024, Aimco had access to **$259.4 million** in liquidity, comprising **$88.5 million** in cash, **$20.9 million** in restricted cash, and **$150.0 million** in borrowing capacity[18](index=18&type=chunk) - Including contractual extensions, less than **1% ($9.4 million)** of total debt matures before May 2026, providing significant financial flexibility[21](index=21&type=chunk) [Public Market Equity](index=6&type=section&id=Public%20Market%20Equity) Aimco demonstrated its commitment to enhancing shareholder value through significant common stock repurchases, buying back 3.0 million shares in Q2, while the Board reviews strategic actions to maximize value and return capital - In Q2 2024, Aimco repurchased **3.0 million shares** at an average price of **$8.02 per share**[25](index=25&type=chunk) - Year-to-date as of July 31, 2024, repurchases totaled **4.2 million shares** at an average cost of **$7.93 per share**[25](index=25&type=chunk) - The Board of Directors is actively considering strategic actions to maximize stockholder value, with a focus on portfolio simplification and returning capital to shareholders following contemplated asset sales[22](index=22&type=chunk)[23](index=23&type=chunk) [2024 Outlook](index=7&type=section&id=2024%20Outlook) Aimco updated its full-year 2024 forecast, projecting a larger net loss per share due to a Q2 impairment charge, but raising its guidance for Net Operating Income (NOI) growth and narrowing revenue and expense growth ranges Updated 2024 Full-Year Guidance | Metric | 2024 Forecast | Prior Forecast | | :--- | :--- | :--- | | Net loss per share – diluted | $(0.80) - $(0.75) | $(0.50) - $(0.40) | | Revenue Growth | 3.25% - 3.75% | 1.75% - 3.75% | | Operating Expense Growth | 6.00% - 7.50% | 6.00% - 8.00% | | Net Operating Income Growth | 1.50% - 2.75% | -0.75% - 2.75% | - The updated guidance does not include any potential gains from transactions in 2024, such as the planned Miami asset sales[26](index=26&type=chunk)[28](index=28&type=chunk) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) This section presents Aimco's detailed financial statements, including income and balance sheet data, reflecting the company's Q2 2024 performance and financial position [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2024, Aimco reported a net loss of $61.1 million, or $(0.43) per diluted share, primarily due to a $47.3 million non-cash impairment charge on its IQHQ equity investment, despite total revenues growing to $51.1 million Q2 2024 Statement of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Rental and other property revenues | $51,148 | $45,674 | | Total operating expenses | $52,244 | $43,704 | | Realized and unrealized losses on equity investments | $(47,264) | $1,094 | | **Net income (loss)** | **$(61,103)** | **$144** | | **Net loss attributable to Aimco** | **$(60,526)** | **$(3,602)** | | **Net loss per share – diluted** | **$(0.43)** | **$(0.02)** | - The primary driver for the Q2 2024 net loss was a **$47.3 million** non-cash impairment charge on the company's passive equity investment in IQHQ[44](index=44&type=chunk) [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, Aimco's balance sheet showed total assets of $2.06 billion and total liabilities of $1.56 billion, with total Aimco equity decreasing to $253.5 million due to net loss and share repurchases, and total indebtedness increasing to $1.21 billion Balance Sheet Summary (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net real estate | $1,675,129 | $1,633,821 | | **Total assets** | **$2,057,114** | **$2,089,475** | | Total indebtedness | $1,211,315 | $1,147,741 | | **Total liabilities** | **$1,564,360** | **$1,497,865** | | **Total Aimco equity** | **$253,536** | **$349,652** | [Supplemental Information](index=12&type=section&id=Supplemental%20Information) This section provides detailed supplemental financial and operational schedules, including non-GAAP reconciliations, debt profiles, portfolio overviews, and development project specifics [Schedule 1 – EBITDAre and Adjusted EBITDAre](index=12&type=section&id=Schedule%201%20%E2%80%93%20EBITDAre%20and%20Adjusted%20EBITDAre) This schedule reconciles Net Income (Loss) to non-GAAP measures, showing Aimco's Q2 2024 Net Loss of $61.1 million translated to an EBITDAre of $(24.1) million, and an Adjusted EBITDAre of $19.1 million after further adjustments EBITDAre and Adjusted EBITDAre Reconciliation (Q2 2024, in thousands) | Metric | Amount | | :--- | :--- | | Net Income (loss) | $(61,103) | | Adjustments (Interest, Tax, D&A, etc.) | $36,959 | | **EBITDAre** | **$(24,144)** | | Further Adjustments (NCI, IQHQ losses, etc.) | $43,244 | | **Adjusted EBITDAre** | **$19,100** | [Schedule 2 – Aimco Leverage and Maturities](index=13&type=section&id=Schedule%202%20%E2%80%93%20Aimco%20Leverage%20and%20Maturities) This schedule details Aimco's debt profile, showing a total non-recourse debt (Aimco share) of $1.2 billion with a weighted average maturity of 4.8 years, a well-staggered maturity schedule, and net leverage of $1.09 billion - Total Aimco Share of non-recourse debt is **$1.20 billion** with a weighted average maturity of **4.8 years** (**5.4 years** including extensions)[48](index=48&type=chunk)[50](index=50&type=chunk) - The debt maturity profile is favorable, with no significant maturities until 2025, and including extension options, only **0.8%** of debt matures before May 2026[49](index=49&type=chunk)[50](index=50&type=chunk) [Schedule 3 – Aimco Portfolio](index=14&type=section&id=Schedule%203%20%E2%80%93%20Aimco%20Portfolio) As of Q2 2024, Aimco's total portfolio comprises 39 properties, including 6,951 apartment homes, over 436,000 square feet of commercial space, and 106 hotel keys, diversified across stabilized properties, development projects, and land Total Portfolio Overview | Category | Count | | :--- | :--- | | Number of Properties | 39 | | Apartment Homes | 6,951 | | Office and Retail Sq Ft | 436,200 | | Hotel Keys | 106 | | Development Land (Acres) | 24.7 | [Schedule 4 – Aimco Capital Additions](index=15&type=section&id=Schedule%204%20%E2%80%93%20Aimco%20Capital%20Additions) Aimco's capital additions totaled $36.8 million in Q2 2024 and $82.7 million for the first six months of the year, with the majority, $29.8 million for the quarter, directed towards development and redevelopment projects Capital Additions (in thousands) | Category | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Capital Replacements and Casualty | $4,319 | $7,046 | | Development and Redevelopment | $29,809 | $72,568 | | **Total Capital Additions** | **$36,785** | **$82,655** | [Schedule 5 – Aimco Development and Redevelopment Projects](index=16&type=section&id=Schedule%205%20%E2%80%93%20Aimco%20Development%20and%20Redevelopment%20Projects) This schedule outlines Aimco's active and pipeline development projects, including 933 units across three active projects with estimated direct costs of $648.2 million, and a substantial future pipeline of nearly 6,000 multifamily units [Active Development Project Summaries](index=16&type=section&id=Active%20Development%20Project%20Summaries) Aimco has three active development projects in lease-up or under construction: Upton Place (689 units), Strathmore Square (220 units), and Oak Shore (24 units), with a total planned direct capital investment of $456.1 million and projected NOI stabilization between 2025 and 2026 Active Projects Leasing Status (as of July 31, 2024) | Project Name | Location | Units | % Leased or Pre-Leased | | :--- | :--- | :--- | :--- | | Upton Place | Washington, D.C. | 689 | 28% | | Strathmore Square | Bethesda, MD | 220 | 11% | | Oak Shore | Corte Madera, CA | 24 | 38% | - The total estimated direct costs for the development portfolio (including active projects and those in occupancy stabilization) is **$648.2 million**, with an estimated stabilized NOI of **$44.1 million**[58](index=58&type=chunk) [Development and Redevelopment Pipeline Projects](index=17&type=section&id=Development%20and%20Redevelopment%20Pipeline%20Projects) Aimco controls a significant future development pipeline totaling 13.3 million gross square feet, planned to deliver 5,972 multifamily units and nearly 1.7 million square feet of commercial space, primarily in Southeast Florida, D.C. Metro, and Colorado Total Future Pipeline Summary | Metric | Total | | :--- | :--- | | Gross Sq Ft | 13,260,000 | | Multifamily Units | 5,972 | | Leasable Commercial Sq Ft | 1,693,500 | - The earliest potential construction starts for pipeline projects are in late 2024, with the majority planned for 2025 and beyond[63](index=63&type=chunk) [Schedule 6 – Stabilized Operating Properties](index=18&type=section&id=Schedule%206%20%E2%80%93%20Stabilized%20Operating%20Properties) This schedule details operating results for Aimco's 21 stabilized properties (5,600 homes), showing Q2 2024 total NOI grew 4.1% year-over-year to $26.5 million, driven by strong revenue growth in Boston and Southeast Florida, despite a sequential decrease from Q1 2024 Stabilized Properties NOI Growth by Market (Q2 2024 vs Q2 2023) | Market | NOI Growth (YoY) | | :--- | :--- | | Boston | 4.0% | | Chicago | 4.2% | | New York City | 11.6% | | SE Florida | 6.2% | | Other Markets | -4.4% | | **Total** | **4.1%** | - Year-to-date, total NOI for the stabilized portfolio was up **5.3%** compared to the first half of 2023[66](index=66&type=chunk) [Schedule 7 – Acquisitions, Dispositions, and Leased Communities](index=19&type=section&id=Schedule%207%20%E2%80%93%20Acquisitions%2C%20Dispositions%2C%20and%20Leased%20Communities) Transaction activity was minimal in early 2024, with Aimco selling a majority of its partnership interest in St. George Villas, a 40-unit income-restricted property, in February, and the remaining 1% interest under contract for disposition in Q1 2025 - In February 2024, Aimco sold most of its interest in St. George Villas, a **40-unit property** in South Carolina[68](index=68&type=chunk) [Schedule 8 – Net Asset Value Components](index=20&type=section&id=Schedule%208%20%E2%80%93%20Net%20Asset%20Value%20Components) This schedule presents the pre-tax components of Aimco's Net Asset Value (NAV), including $106.2 million in annualized NOI from stabilized properties, $44.1 million in projected NOI from development projects, and $154.0 million in land investments, offset by over $1.2 billion in property and construction debt Key NAV Components (in millions) | Category | Value | | :--- | :--- | | **Assets** | | | Annualized NOI for Stabilized Properties | $106.2 | | Projected Annual NOI for Development Projects | $44.1 | | Land, Planning and Entitlement Investment | $154.0 | | Cash and cash equivalents | $88.5 | | **Liabilities** | | | Non-recourse property debt, net | $851.4 | | Non-recourse construction loans, net | $371.6 | | Preferred equity interests | $174.8 | - Aimco notes that the value of its Brickell Assemblage is estimated to be **$125 - $175 million** higher than the value implied by a capitalization of its current NOI, based on comparable sales[71](index=71&type=chunk) [Glossary and Reconciliations of Non-GAAP Financial and Operating Measures](index=21&type=section&id=Glossary%20and%20Reconciliations%20of%20Non-GAAP%20Financial%20and%20Operating%20Measures) This section defines non-GAAP financial measures and other terms, such as EBITDAre and Property NOI, and provides detailed reconciliations of segment NOI to consolidated GAAP financial statements, ensuring clarity on key metric calculations - Key non-GAAP measures defined include EBITDAre (Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate) and Property NOI (Net Operating Income)[80](index=80&type=chunk)[89](index=89&type=chunk) - The section provides detailed reconciliations of segment NOI to GAAP revenues and expenses, clarifying adjustments for items like utility reimbursements[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)

Core Viewpoint - Aimco reported a net loss of $(0.43) per share for Q2 2024, primarily due to a non-cash impairment charge related to its investment in IQHQ, while showing growth in revenue and net operating income from its stabilized properties [2][3][29]. Financial Results and Highlights - Aimco's revenue for Q2 2024 was $38.7 million, a 4.6% increase year-over-year, with net operating income (NOI) rising 4.1% to $26.5 million [2][8]. - Average monthly revenue per apartment home increased by 4.4% to $2,392, with effective rents on all leases up 3.5% compared to previous leases [2][8]. - Expenses rose by 5.7% year-over-year, mainly due to higher real estate taxes [8]. CEO Commentary - The CEO highlighted solid performance and progress towards 2024 objectives, with NOI growth of 4.1% year-over-year and a leasing renewal rate of nearly 66% [3][4]. - Full-year guidance was revised to expect revenue growth between 3.25% and 3.75% and NOI growth of 1.50% to 2.75% [3][4]. Operating Property Results - Average daily occupancy for stabilized properties was 96.3%, with a slight increase from the previous year [8]. - Year-to-date effective rents were 3.7% higher than previous leases, with a median annual household income of new residents at $126,000, resulting in a rent-to-income ratio of 20.0% [8]. Development and Redevelopment - Aimco has two multifamily development projects under construction and a pipeline of future opportunities totaling approximately 13 million gross square feet [9][10]. - As of July 31, 2024, Aimco has delivered all 689 apartment homes at Upton Place, with 240 units leased at rates ahead of projections [10]. Investment & Disposition Activity - Aimco is actively marketing three assets for sale in the Miami market, including The Brickell Assemblage and The Hamilton [11]. - The company aims to unlock value from its assets and prioritize returning capital to stockholders [5][11]. Balance Sheet and Financing Activity - As of June 30, 2024, Aimco had access to $259.4 million in liquidity, including $88.5 million in cash [12]. - Aimco's net leverage was reported at $1.09 billion, with 100% of total debt either fixed rate or hedged [12][14]. Public Market Equity - In Q2 2024, Aimco repurchased 3.0 million shares at an average price of $8.02 per share, totaling 4.2 million shares repurchased year-to-date at an average cost of $7.93 [13][14].

Group 1 - Aimco plans to report its 2024 second quarter results on August 7, 2024, after market close [1] - The earnings release will be accessible in the Investor Relations section of Aimco's website [1] Group 2 - Aimco is a diversified real estate company focused on value add and opportunistic investments in the U.S. multifamily sector [2] - The company'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]

Marcus Lindstrom One apartment REIT after another beat on 1Q24 earnings which was surprising as the sector is undergoing a massive new supply wave with development deliveries as much as 5% of existing inventory hitting the sector in 2024 and the first half of 2025. So how has the sector been able to absorb the new supply so well? In examining the data, it seems there is a perfect storm of demand drivers: Strong employment Low savings rate High cost of houses High cost of construction Mortgage rates Th ...

Financial Performance - Rental and other property revenues for the three months ended March 31, 2024, were $50,203 thousand, up 13.4% from $44,268 thousand in the same period of 2023 [21]. - Total revenues increased to $50,203 thousand in Q1 2024, up 13.9% from $44,268 thousand in Q1 2023, driven by higher rental and other property revenues [30]. - Net income for the three months ended March 31, 2024, was a loss of $7,196 thousand, compared to a loss of $5,753 thousand in the same period of 2023, reflecting an increase in losses of approximately 25.2% [30]. - Net income attributable to Aimco for Q1 2024 was a loss of $10,186 thousand, compared to a loss of $8,817 thousand in Q1 2023, indicating a decline of 15.5% [21]. - Consolidated net losses subject to tax were $6.6 million for the three months ended March 31, 2024, compared to $4.9 million for the same period in 2023 [56]. - For the three months ended March 31, 2024, net income was $(7,196) thousand, compared to $(5,753) thousand for the same period in 2023 [162]. - EBITDAre for the three months ended March 31, 2024, was $23,127 thousand, an increase from $16,270 thousand in 2023, reflecting a growth of 42% [162]. - Adjusted EBITDAre for the three months ended March 31, 2024, was $17,964 thousand, up from $13,901 thousand in 2023, representing a 29% increase [162]. Assets and Liabilities - Total assets increased to $2,119,891 thousand as of March 31, 2024, compared to $2,089,475 thousand at December 31, 2023, reflecting a growth of 1.4% [18]. - Total liabilities increased to $1,541,313 thousand as of March 31, 2024, compared to $1,497,865 thousand at the end of 2023, reflecting a rise in total indebtedness [28]. - Total equity decreased to $405,420 thousand as of March 31, 2024, from $419,978 thousand at December 31, 2023, a decline of 3.5% [19]. - Cash and cash equivalents slightly decreased to $121,814 thousand as of March 31, 2024, from $122,601 thousand at December 31, 2023 [18]. - Cash and cash equivalents at the end of the period were $140,403 thousand, down from $188,634 thousand at the end of Q1 2023, indicating a decrease of 25.5% [25]. - Non-recourse property debt remained stable at $845,671 thousand as of March 31, 2024, compared to $846,298 thousand at December 31, 2023 [19]. - Non-recourse property debt and construction loans, net, totaled $1,182.0 million as of March 31, 2024, compared to $1,147.7 million as of December 31, 2023, indicating an increase of 2.9% [101]. Cash Flow - Net cash provided by operating activities was $21,712 thousand for Q1 2024, significantly higher than $5,599 thousand in Q1 2023, indicating improved cash flow from operations [25]. - Net cash used in investing activities for the three months ended March 31, 2024, was $41.1 million, a decrease of $22.1 million compared to the same period in 2023 [172]. - The company reported a net cash decrease of $1.136 million, contrasting with a decrease of $41.132 million in the same period last year [33]. - As of March 31, 2024, available liquidity was $290.4 million, including $121.8 million in cash and cash equivalents [163]. Capital Expenditures - Capital expenditures for Q1 2024 were $40,936 thousand, a decrease of 36.8% from $64,814 thousand in Q1 2023, suggesting a reduction in investment activities [25]. - The company invested $42.8 million in development and redevelopment activities during the three months ended March 31, 2024, a decrease of 33.9% compared to $64.8 million in the same period of 2023 [126]. - The company had remaining commitments for construction-related contracts of $42.4 million as of March 31, 2024, with $91.7 million undrawn on non-recourse construction loans [64]. Property and Development - The company owned or leased a portfolio of 5,600 apartment homes across 21 consolidated stabilized operating properties as of March 31, 2024 [39]. - The Development and Redevelopment segment includes 10 rental communities, with 3 currently under construction as of March 31, 2024 [92]. - The company has three active development and redevelopment multifamily projects in varying phases of construction and lease-up, all on track according to budget and lease-up metrics [126]. - Construction at Upton Place in Upper Northwest Washington, D.C. is nearing completion, with 100 of the 624 units leased at rates above underwriting [131]. Shareholder Information - The company reported a weighted-average common shares outstanding of 140,594 thousand for Q1 2024, down from 145,827 thousand in Q1 2023, a decrease of 3.6% [21]. - The net income (loss) attributable to Aimco Operating Partnership per common unit was $(0.07) for Q1 2024, compared to $(0.06) for Q1 2023, indicating a slight deterioration in per unit performance [30]. - Basic earnings per share for the first quarter of 2024 was $(0.07), consistent with the $(0.06) reported in the first quarter of 2023 [72]. - For the three months ended March 31, 2024, net loss attributable to Aimco common stockholders per share was ($0.07), compared to ($0.06) for the same period in 2023 [129]. Other Financial Metrics - The company recognized an income tax benefit of $2.7 million for the three months ended March 31, 2024, compared to a benefit of $4.2 million in the same period of 2023 [57]. - Interest expense rose by $3.6 million, or 37.5%, due to increased non-recourse construction loan interest for development properties [148]. - Depreciation and amortization expense increased by $3.2 million, or 19.6%, primarily due to increases at Upton Place and The Benson Hotel [145]. - Proportionate property net operating income for the Operating segment was $27,136 thousand for the three months ended March 31, 2024, compared to $25,486 thousand for the same period in 2023, reflecting a 6.5% increase [96].

Table of Contents Page 3 Earnings Release 7 Outlook 10 Consolidated Statements of Operations 11 Consolidated Balance Sheets 12 Schedule 1 – EBITDAre and Adjusted EBITDAre 13 Schedule 2 – Aimco Leverage and Maturities 14 Schedule 3 – Aimco Portfolio 15 Schedule 4 – Aimco Capital Additions 16 Schedule 5 – Aimco Development and Redevelopment Project Summaries 18 Schedule 6 – Stabilized Operating Properties 19 Schedule 7 – Acquisitions, Dispositions, and Leased Communities 20 Schedule 8 – Net Asset Value Compon ...

Company Overview - Aimco is a diversified real estate company focused on value add and opportunistic investments in the U.S. multifamily sector [2] - The company'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 symbol AIV [2] Upcoming Financial Reporting - Aimco plans to report its 2024 first quarter results on May 8, 2024, after market close [1] - The earnings release will be accessible in the Investor Relations section of Aimco's website [1]

Investment Strategy - Aimco has a diversified portfolio consisting of $0.6 billion in value-add investments and a pipeline of 13 million square feet for potential future development[21] - The company aims for superior total-return performance primarily through capital appreciation driven by accretive investment and active portfolio management over multi-year periods[22] - Aimco's financial objectives include producing superior, asset-level, risk-adjusted returns on equity, measured by Internal Rate of Return (IRR) and Multiple on Invested Capital (MOIC)[23] - Aimco plans to maintain sufficient liquidity and utilize safe financial leverage, preferring non-recourse property-level debt to limit risk[29] - The company is focused on reducing its allocation to alternative investments over time, currently holding select investments in real estate-related debt and equity[25] - Aimco's investment strategy includes managing and investing in value-add and opportunistic real estate, with significant future development opportunities secured[28] - The company is committed to a capital redeployment plan that reallocates equity to higher returning investments and returns capital to stockholders when appropriate[21] - The company aims to produce superior returns on equity on a risk-adjusted basis through a balanced allocation strategy focusing on "Value Add" and "Opportunistic" multifamily real estate[23][24] - The company plans to significantly reduce its allocation to alternative investments over time, currently holding a mezzanine loan for 3,165 apartment homes in San Francisco[29] Portfolio Overview - The current portfolio includes 26 apartment communities with average rents aligned with local market averages, primarily targeting B class assets[29] - The portfolio includes 26 apartment communities with average rents aligned with local market averages, primarily targeting B class multifamily assets[29] - The company has secured significant future development opportunities in high-growth markets, with a total potential of 13 million square feet[28] Corporate Responsibility and Employee Well-being - The company is committed to corporate responsibility, focusing on continuous improvement for stockholders, residents, teammates, communities, and the environment[39] - The company emphasizes employee satisfaction and well-being through various benefits, including 16 weeks of paid parental leave and flexible workplace policies[44] - The company has been recognized with Healthiest Employers Awards, ranking 1 in South Florida and 2 in Colorado and Washington, D.C., for promoting employee health and well-being[47] - Aimco's corporate responsibility program focuses on continuous improvement for stakeholders and the environment[39] - Aimco was recognized with Healthiest Employers Awards in multiple regions, highlighting its commitment to employee health and well-being[47] Financial Management and Regulations - The company does not currently intend to pay regular quarterly cash dividends but may pay dividends for REIT tax purposes or to return profits to stockholders[22] - Aimco has elected to be taxed as a REIT, which generally avoids double taxation on distributed taxable income[32] - Aimco Operating Partnership is treated as a pass-through entity for tax purposes, with partners subject to tax on their allocable share of income[33] - The company is subject to various laws and regulations affecting real estate development, which may lead to unanticipated expenditures[36] - Aimco's operations are subject to various laws and regulations affecting real estate development, including zoning and health and safety regulations[34] Team Engagement - The overall team engagement score for the 2023 Annual Lifecycle Surveys was 4.74, exceeding the target score of 4.25 with a 100% response rate[45] - The overall team engagement score for 2023 was 4.74, exceeding the target score of 4.25, with a 100% response rate[45] Competitive Landscape - The competitive landscape includes various developers, REITs, and private companies, impacting the company's ability to achieve real estate development objectives[30] - The company has policies in place to manage risk, including maintaining a sizeable portion of net equity in stabilized cash-flowing assets[26] - The company is focused on enhancing its investment platform by leveraging local and regional expertise in targeted markets[27]

[Stockholder Letter](index=3&type=section&id=Stockholder%20Letter) The company highlights strong 2023 operating performance, strategic capital allocation through dispositions and share repurchases, and plans for portfolio simplification in 2024 - In 2023, Aimco's Stabilized Operating Properties generated **$106 million in Net Operating Income (NOI)**, a **9.3% increase** over 2022, with NOI margins expanding by 80 basis points[4](index=4&type=chunk) - The company invested **$234 million** in active development projects in 2023, delivering over 350 new units, with projects expected to achieve an average yield on cost of approximately **7%** upon stabilization[5](index=5&type=chunk) - Strategic dispositions in 2023 included selling a 20% stake in the Parkmerced mezzanine loan for **$91.5 million** and a Fort Lauderdale land parcel for **$31 million**, though the company later recognized a non-cash impairment to fully write off the remaining Parkmerced investment[6](index=6&type=chunk) - Aimco repurchased **6.2 million shares for $45 million** in 2023 at an average price of $7.33 per share, viewing its stock as an attractive investment[7](index=7&type=chunk) - Since late 2020, Aimco has reduced total debt and leasehold liabilities by over **$525 million** and proactively managed interest rate increases[8](index=8&type=chunk) - For 2024, Aimco plans to market for sale its "Brickell Assemblage" and other assets to simplify the portfolio and return capital to stockholders, while substantially reducing capital allocated to new development[13](index=13&type=chunk)[15](index=15&type=chunk) [Earnings Release](index=5&type=section&id=Earnings%20Release) The company details its Q4 and full-year 2023 financial results, operating property performance, investment activities, and balance sheet management [Financial Results and Highlights](index=5&type=section&id=Financial%20Results%20and%20Highlights) The company reported a net loss driven by a non-cash impairment, alongside strong operating NOI growth and strategic capital recycling activities Financial Performance | Metric | Q4 2023 | Full Year 2023 | | :--- | :--- | :--- | | Net loss per share (diluted) | $(1.07) | $(1.16) | | Stabilized Properties NOI Growth (YoY) | 7.2% | 9.3% | - In 2023, Aimco delivered **350 apartment homes** and opened the 106-key Benson Hotel, with signed leases at rates averaging **17% above** initial underwriting[20](index=20&type=chunk) - The company monetized **$122.7 million** of assets in 2023, including a portion of its Parkmerced mezzanine investment and a development land parcel in Fort Lauderdale[20](index=20&type=chunk) - During 2023, Aimco acquired **6.2 million shares** of its common stock at an average price of $7.33 per share[20](index=20&type=chunk) [Operating Property Results](index=6&type=section&id=Operating%20Property%20Results) Stabilized operating properties delivered robust NOI growth for Q4 and the full year, driven by increased revenue per unit and high occupancy Stabilized Operating Properties Performance | Stabilized Operating Properties | Q4 2023 | Q4 2022 | Variance | Full Year 2023 | Full Year 2022 | Variance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue, before utility reimbursements | $38.4M | $35.9M | 6.8% | $149.8M | $138.1M | 8.4% | | Expenses, net of utility reimbursements | $10.6M | $10.1M | 5.6% | $44.1M | $41.4M | 6.4% | | Net operating income (NOI) | $27.7M | $25.9M | 7.2% | $105.7M | $96.7M | 9.3% | | Average Daily Occupancy | 97.5% | 97.4% | 0.1% | 96.7% | 97.4% | (0.7)% | - In Q4 2023, average monthly revenue per apartment home increased by **6.7% year-over-year** to $2,343[24](index=24&type=chunk) - The median annual household income of new residents in Q4 2023 was **$115,000**, with a rent-to-income ratio of **20.8%**[24](index=24&type=chunk) [Value Add, Opportunistic & Alternative Investments](index=7&type=section&id=Value%20Add%2C%20Opportunistic%20%26%20Alternative%20Investments) The company advanced its active development projects but fully wrote off its remaining Parkmerced mezzanine investment due to an expired purchase option - Aimco has four active development and redevelopment projects in progress, which remain on track with construction budgets and lease-up metrics[26](index=26&type=chunk) - Construction at Upton Place in Washington D.C. is nearing completion, with 450 apartment homes delivered and **80% of its retail space leased** as of February 20, 2024[28](index=28&type=chunk) - Regarding the Parkmerced mezzanine investment, a buyer's option to purchase the remaining 80% expired, leading Aimco to record a **$158.0 million non-cash impairment** to fully write off the investment[29](index=29&type=chunk)[32](index=32&type=chunk) [Investment & Disposition Activity](index=8&type=section&id=Investment%20%26%20Disposition%20Activity) A joint venture sold a land parcel in Fort Lauderdale, generating a significant return for the company - In Q4 2023, a joint venture sold a 1.1-acre land parcel in Fort Lauderdale for **$31.2 million** ($15.9 million Aimco share), resulting in a levered IRR of **more than 30%**[30](index=30&type=chunk) [Balance Sheet and Financing Activity](index=8&type=section&id=Balance%20Sheet%20and%20Financing%20Activity) Aimco maintained a strong liquidity position with fully hedged debt and minimal near-term maturities - As of December 31, 2023, Aimco had **$289.3 million in liquidity**, including $122.6 million in cash and $150.0 million available on its revolving credit facility[31](index=31&type=chunk) - In 2023, Aimco retired **$71.7 million** of property loans with a high weighted average cost of **11.2%**[33](index=33&type=chunk) Net Leverage (Aimco Share) | Aimco Share, as of Dec 31, 2023 | Amount (in thousands) | | :--- | :--- | | Total non-recourse fixed rate debt | $776,503 | | Total non-recourse floating rate debt | $89,843 | | Total non-recourse construction loan debt | $283,694 | | Cash and restricted cash | $(137,755) | | **Net Leverage** | **$1,012,285** | [Public Market Equity](index=9&type=section&id=Public%20Market%20Equity) The company continued its share repurchase program, buying back 6.2 million shares throughout 2023 Share Repurchases | Period | Shares Repurchased | Weighted Average Price | | :--- | :--- | :--- | | Q4 2023 | 1.4 million | $6.75 | | Full Year 2023 | 6.2 million | $7.33 | - As of December 31, 2023, Aimco had **21 million shares** remaining under its repurchase authorization[37](index=37&type=chunk) [2024 Outlook](index=10&type=section&id=2024%20Outlook) The company's 2024 strategy involves reducing development spending, monetizing assets, and prioritizing the return of capital to stockholders [2024 Guidance Table](index=10&type=section&id=2024%20Guidance%20Table) The company forecasts a net loss per share for 2024, with modest NOI growth and a significant reduction in development spending Full-Year 2024 Forecast | Metric | 2023 Results | 2024 Forecast | | :--- | :--- | :--- | | Net income (loss) per share – diluted | $(1.16) | $(0.50) - $(0.40) | | Stabilized NOI Growth | 9.3% | -0.75% - 2.75% | | Direct Project Costs (Development) | $197M | $70M - $100M | | AIV Equity Funding (Development) | $51M | $0M - $5M | | General and Administrative | $33M | $33M - $35M | [Operating Properties Outlook](index=10&type=section&id=Operating%20Properties%20Outlook) Aimco anticipates modest NOI growth in 2024, with revenue gains partially offset by higher expected operating expenses - Over **80%** of Aimco's Stabilized Operating NOI is from markets expected to have below-average new supply pressure in 2024[42](index=42&type=chunk) 2024 Stabilized Operating Properties Forecast | 2024 Stabilized Operating Properties Forecast | Growth Rate | | :--- | :--- | | Revenue Growth | 1.75% - 3.75% | | Operating Expense Growth | 6.00% - 8.00% | | Net Operating Income Growth | -0.75% - 2.75% | [Active Developments and Pipeline Projects Outlook](index=11&type=section&id=Active%20Developments%20and%20Pipeline%20Projects%20Outlook) The company plans a significant reduction in development capital for 2024, focusing on completing current projects with minimal new equity - Planned incremental direct capital investment in development for 2024 is **$70-$100 million**, with Aimco's equity portion being only **$0-$5 million**, a sharp decrease from $51 million in 2023[45](index=45&type=chunk) - In 2024, Aimco plans to complete construction at Oak Shore and Upton Place and commence lease-up of Strathmore Square[47](index=47&type=chunk) - The company expects to invest **$12-$17 million** in 2024 to advance planning and entitlement for its future pipeline, which offers approximately **13 million square feet** of development opportunity[45](index=45&type=chunk)[46](index=46&type=chunk) [Real Estate Transactions and Leverage Outlook](index=11&type=section&id=Real%20Estate%20Transactions%20and%20Leverage%20Outlook) Aimco plans to market key assets for sale in 2024, using proceeds to return capital and reduce leverage while maintaining stable debt levels - Aimco plans to fully market its Brickell Assemblage for sale in Q1 2024 and expects to complete the transaction by year-end, pending favorable terms[47](index=47&type=chunk) - The company does not anticipate needing to draw on its **$150 million** revolving credit facility in 2024[51](index=51&type=chunk) - Interest expense, net of capitalization, is expected to increase in 2024 due to a **$19.5 million reduction** in capitalized interest as development projects are completed[51](index=51&type=chunk) [Commitment to Enhance Stockholder Value](index=12&type=section&id=Commitment%20to%20Enhance%20Stockholder%20Value) Management is focused on maximizing stockholder value through portfolio simplification, asset monetization, and returning capital to stockholders - The Board and management are engaged in a continuous review of strategic actions to maximize stockholder value, working with advisors including Morgan Stanley & Co. LLC[52](index=52&type=chunk) - Plans to reduce development activity and sell assets represent a commitment to simplify the portfolio and unlock embedded value[53](index=53&type=chunk) - Aimco will prioritize the return of capital to stockholders as a key component of its capital allocation philosophy, particularly in conjunction with contemplated asset sales[53](index=53&type=chunk) [Consolidated Financial Statements](index=15&type=section&id=Consolidated%20Financial%20Statements) Presents the company's official statements of operations and balance sheets for the fiscal year ending December 31, 2023 [Consolidated Statements of Operations](index=15&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a significant net loss in 2023, primarily driven by a mezzanine investment loss, contrasting with net income in 2022 Annual Statement of Operations | (in thousands, except per share data) | Twelve Months Ended Dec 31, 2023 | Twelve Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Total Revenues | $186,995 | $190,344 | | Total Operating Expenses | $175,411 | $270,432 | | Mezzanine investment loss, net | $(155,814) | $(179,239) | | Net income (loss) attributable to Aimco | $(166,196) | $75,726 | | Net income (loss) per share – diluted | $(1.16) | $0.49 | [Consolidated Balance Sheets](index=16&type=section&id=Consolidated%20Balance%20Sheets) The company's total assets decreased while liabilities increased, resulting in a lower total equity position at year-end 2023 compared to 2022 Year-End Balance Sheet | (in thousands) | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total assets | $2,089,475 | $2,181,223 | | Total indebtedness | $1,147,741 | $1,048,199 | | Total liabilities | $1,497,865 | $1,389,039 | | Total Aimco equity | $349,652 | $547,852 | [Supplemental Schedules](index=17&type=section&id=Supplemental%20Schedules) Provides detailed schedules breaking down EBITDAre, leverage, portfolio composition, capital spending, and development project status [Schedule 1 – EBITDAre and Adjusted EBITDAre](index=17&type=section&id=Schedule%201%20%E2%80%93%20EBITDAre%20and%20Adjusted%20EBITDAre) This schedule reconciles the company's net loss to an Adjusted EBITDAre of $65.8 million for the full year 2023 EBITDAre Reconciliation | (in thousands) | Twelve Months Ended Dec 31, 2023 | | :--- | :--- | | Net Income (loss) | $(157,319) | | EBITDAre | $(70,697) | | Mezzanine investment (income) loss, net | $155,814 | | **Adjusted EBITDAre** | **$65,811** | [Schedule 2 – Aimco Leverage and Maturities](index=18&type=section&id=Schedule%202%20%E2%80%93%20Aimco%20Leverage%20and%20Maturities) The company's debt profile shows total non-recourse debt of $1.15 billion with limited near-term maturities Debt Summary (Aimco Share) | Debt (Aimco Share) | Amount (thousands) | W.A. Maturity (Yrs.) | W.A. Capped Interest Rate | | :--- | :--- | :--- | :--- | | Fixed rate loans | $776,503 | 7.2 | 4.25% | | Floating rate loans | $89,843 | 1.8 | 8.00% | | Construction loan debt | $283,694 | 1.8 | 7.78% | | **Total non-recourse debt** | **$1,150,039** | **5.4** | **5.45%** | - Including contractual extension options, Aimco has only **$8.5 million** of loans maturing prior to May 2026[75](index=75&type=chunk) [Schedule 3 – Aimco Portfolio](index=19&type=section&id=Schedule%203%20%E2%80%93%20Aimco%20Portfolio) The company's portfolio consists of over 6,600 apartment homes, with the majority being stabilized operating properties Portfolio Summary (Aimco Share) | Portfolio Component | Number of Properties | Apartment Homes (Aimco Share) | | :--- | :--- | :--- | | Stabilized Operating Properties | 21 | 5,600 | | Development and Redevelopment | 11 | 989 | | Other Real Estate | 2 | 40 | | Unconsolidated | 6 | 73 | | **Total Portfolio (Aimco Share)** | **40** | **6,604** | [Schedule 4 – Aimco Capital Additions](index=20&type=section&id=Schedule%204%20%E2%80%93%20Aimco%20Capital%20Additions) Capital expenditures in 2023 totaled $288.5 million, with the vast majority allocated to development and redevelopment projects Capital Additions Summary | (consolidated amounts in thousands) | Twelve Months Ended Dec 31, 2023 | | :--- | :--- | | Capital Replacements and Casualty | $11,267 | | Property Upgrades | $1,568 | | Tenant Improvements | $856 | | Development and Redevelopment | $274,853 | | **Total Capital Additions** | **$288,543** | [Schedule 5 – Aimco Development and Redevelopment Project Summaries](index=21&type=section&id=Schedule%205%20%E2%80%93%20Aimco%20Development%20and%20Redevelopment%20Project%20Summaries) The company details its four active development projects and a future pipeline with potential for nearly 6,000 multifamily units - Aimco has four active development projects with a total planned direct capital investment of **$518.2 million** and remaining investment of **$80.7 million**[83](index=83&type=chunk) - The future development pipeline totals **13.3 million gross square feet**, with the potential for **5,972 multifamily units** and **1.7 million commercial square feet**[89](index=89&type=chunk) [Schedule 6 – Stabilized Operating Properties](index=23&type=section&id=Schedule%206%20%E2%80%93%20Stabilized%20Operating%20Properties) The stabilized portfolio achieved 9.3% NOI growth in 2023, with strong performance in the Boston, Chicago, and New York City markets Stabilized Portfolio Performance by Market | Full Year 2023 vs. 2022 (YTD) | Revenue Growth | Expense Growth | NOI Growth | | :--- | :--- | :--- | :--- | | Boston | 8.7% | 6.5% | 9.6% | | Chicago | 6.8% | (3.4%) | 11.4% | | New York City | 10.3% | 9.0% | 11.5% | | SE Florida | 13.0% | 23.8% | 9.1% | | **Total** | **8.4%** | **6.4%** | **9.3%** | [Schedule 7 – Acquisitions, Dispositions, and Leased Communities](index=24&type=section&id=Schedule%207%20%E2%80%93%20Acquisitions%2C%20Dispositions%2C%20and%20Leased%20Communities) The company generated $64.7 million in proceeds from the sale of a land parcel and a partial sale of its Parkmerced investment in 2023 2023 Dispositions | 2023 Dispositions | Location | Sales Price / Value Sold | | :--- | :--- | :--- | | 200 Broward (Land) | Fort Lauderdale, FL | $31.2M | | Parkmerced Mezzanine Investment (Partial) | San Francisco, CA | $33.5M | | **TOTAL Dispositions** | | **$64.7M** | [Schedule 8 – Net Asset Value Components](index=25&type=section&id=Schedule%208%20%E2%80%93%20Net%20Asset%20Value%20Components) Management provides a breakdown of Net Asset Value components, highlighting NOI from operating and development properties - The annualized NOI for Stabilized Operating Properties is listed at **$110.9 million**[99](index=99&type=chunk) - Active development projects are projected to contribute **$44.1 million** in annual NOI upon stabilization[99](index=99&type=chunk) - Management estimates the value of the 4.25-acre Brickell Assemblage to be **$125 - $175 million** higher than its value based on a capitalization of current NOI[101](index=101&type=chunk) [Glossary and Reconciliations of Non-GAAP Financial and Operating Measures](index=26&type=section&id=Glossary%20and%20Reconciliations%20of%20Non-GAAP%20Financial%20and%20Operating%20Measures) Defines key non-GAAP financial measures and reconciles them to their nearest GAAP equivalents to clarify performance metrics - This section defines non-GAAP measures used in the report, such as EBITDAre, Adjusted EBITDAre, and Property Net Operating Income (NOI), to provide clarity on how management evaluates performance[104](index=104&type=chunk) - Property Net Operating Income (NOI) is defined as total property rental and other revenues less direct property operating expenses, excluding items like depreciation and interest expense[115](index=115&type=chunk)[116](index=116&type=chunk) - The report provides a detailed reconciliation of GAAP rental revenues and property operating expenses to the non-GAAP measures used in the Stabilized Operating Properties analysis[117](index=117&type=chunk)[118](index=118&type=chunk) - The document defines its real estate classifications, including 'Stabilized Operating Properties', 'Development and Redevelopment', and 'Other Real Estate', which are used throughout the supplemental schedules[121](index=121&type=chunk)[123](index=123&type=chunk)