Financial Data and Key Metrics Changes - Aimco reported a solid first quarter with AFFO of $0.55 per share, which was $0.02 ahead of the midpoint of guidance due to better-than-expected operating results [19] - The company ended the first quarter with $198 million in cash and the capacity to borrow $723 million on its revolving credit facility, indicating a strong balance sheet [18] - Net operating income (NOI) was up 5.5% for the quarter, reflecting effective revenue and expense management [11] Business Line Data and Key Metrics Changes - Same-store revenues increased by 4.2% for the quarter, with top markets like Washington DC, The Bay Area, Boston, Los Angeles, and Philadelphia showing growth over 4.5% [11] - Daily occupancy averaged 97%, which is 90 basis points better than the first quarter of 2018, indicating strong operational performance [10] - New leases were up 80 basis points, renewals increased by 5.2%, and same-store blended lease rates rose by 2.9% [12] Market Data and Key Metrics Changes - The company experienced solid performances in markets such as San Diego, Seattle, and Chicago, with growth rates of 3% [11] - Preliminary April same-store results showed continued momentum with blended lease rates up 3.4% and new lease rates up 1.6% [12] Company Strategy and Development Direction - Aimco's strategy focuses on creating net asset value per share through operational excellence, accretive redevelopment, and disciplined capital allocation [7] - The company is maintaining its target investment range for redevelopment and development at between $225 million and $275 million for the year [13] - Aimco is actively pursuing acquisitions that offer high free cash flow IRRs on a risk-adjusted basis, with a focus on unique opportunities rather than specific asset classes [79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the U.S. economy and strong consumer demand, expecting 2019 to be another good year [8] - The company is cautious about raising guidance due to being only a third of the way through its leasing activities for the year [25] - Management highlighted the importance of culture and teamwork in driving operational improvements and achieving strategic goals [75] Other Important Information - Aimco declared a quarterly cash dividend of $0.39 per share, a 3% increase over the quarterly dividend paid in 2018 [21] - The company adopted a new accounting standard affecting how indirect costs related to resident leases are recognized, which has been reflected in the financial results [20] Q&A Session Summary Question: Why is there hesitation to raise guidance despite strong results? - Management believes the current guidance range is appropriate as they are only a third of the way through leasing activities for the year [25] Question: What are the latest thoughts on rent control and affordability initiatives? - Management expressed concern over the political discussions surrounding rent control, noting recent developments in states like Oregon and California [27] Question: Can you provide details on the 707 Leahy redevelopment? - The redevelopment is expected to yield a cash-on-cash return of about 5% and is positioned to attract higher-income residents [33] Question: What is the impact of turnover on NOI? - A lease that renews is 20% to 30% more profitable than a new lease, indicating significant savings from reduced turnover [38] Question: What is the rationale for maintaining a 16% weighting in C properties? - These properties serve primarily as a land bank for future redevelopment opportunities [42] Question: What are the leasing trends in the Los Angeles market? - The Los Angeles market, particularly in Mid-Wilshire, has shown strong performance with occupancy rates above 97% [51] Question: What is the cap rate for recent asset sales? - The sales achieved an NOI cap rate of 5.6% and a free cash flow cap rate of 5% [62] Question: What is the outlook for acquisitions? - The company is looking for opportunities that provide above-average growth potential, regardless of asset class [79]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________ Form 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR o 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 ...

Financial Data and Key Metrics Changes - The company increased net asset value by almost 6% and economic income by more than 8% in 2018 [7] - Fourth quarter pro forma FFO and AFFO per share met the midpoint of guidance at $0.63 and $0.53 respectively [20] - Full year pro forma FFO per share was $2.47 and AFFO per share was $2.16, exceeding original guidance [20] Business Line Data and Key Metrics Changes - Same-store revenues were up 3.4% for the fourth quarter, with a full year increase of 3.1% [11][21] - Fourth quarter NOI margin was 75.6%, the highest performance on record, with a full year result of 74.2% [10][11] - New leases were up 20 basis points, renewals were up 4.3%, and same-store blended lease rates were up 2% [12] Market Data and Key Metrics Changes - Top revenue performers included Boston, the Bay Area, San Diego, and Seattle with increases over 4% [11] - Revenue growth in Los Angeles, Washington D.C., Miami, and Denver was around 3% [11] - Atlanta, Chicago, New York, and Philadelphia had the lowest revenue growth, ranging from flat to 2.5% [11] Company Strategy and Development Direction - The company exited the affordable business and made accretive acquisitions in Philadelphia and Northern Virginia [7] - Plans to increase redevelopment and development spending to between $225 million and $275 million in 2019, a 40% increase over 2018 [15] - The company aims to reduce total leverage by about 10% during the coming year [8] Management's Comments on Operating Environment and Future Outlook - Management expects 2019 market conditions to be the same as or better than last year, despite competitive new building challenges [8] - Economic income growth is expected to be similar to that achieved in 2018, with same-store revenue growth projected between 2.8% and 3.8% [21] - The company anticipates a stable and cohesive team, recognized as a best workplace in Colorado for six consecutive years [8] Other Important Information - The company repurchased 6% of its shares at about a 20% discount to net asset value per share [7] - A special dividend was declared, consisting of a regular quarterly revenue of $0.39 per share plus $1.54 per share of additional consideration [19] - The company improved its balance sheet by reducing 2019 to 2021 maturities by more than one-half [8] Q&A Session Summary Question: What is the appetite for executing on larger transactions in selling the company? - Management will consider any such transaction as fiduciaries and what's best for shareholders [26] Question: Will the share repurchase program continue? - Management views share buybacks as a tool to create value and will compare opportunities on a risk-adjusted basis [28] Question: What is the investment thesis on Atlanta? - Atlanta is a competitive real estate market prone to oversupply, and management prefers to redeploy capital to areas with better risk-adjusted growth [31] Question: How is revenue growth expected in Seattle? - Revenue growth in Seattle was strong, but the impact is minimal due to the limited number of buildings [35] Question: What are the expected same-store revenue outcomes for 2019? - The top markets with the most positive outlook are Boston, D.C., and LA [39] Question: What is the timing of the expected dispositions? - About half of the dispositions are expected to occur in the first quarter, with the remainder spread throughout the year [68] Question: What is the expected blended cap rate for dispositions in 2019? - The blended cap rate is expected to be in the mid-5s [71] Question: Will there be any tax benefits post-2019? - The company expects about $8 million of tax benefit in 2019, with a similar run rate going forward [73]