Apartment Investment and Management pany(AIV) - 2024 Q3 - Quarterly Results

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].