Apartment Investment and Management pany(AIV) - 2025 Q2 - Quarterly Results

Earnings Release 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 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] - 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] - 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] - 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] CEO Commentary 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] - 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] - 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] 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 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][14] - 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] - The median annual household income of new residents was $124,000 in Q2 2025, representing a rent-to-income ratio of 20%[14] Value Add and Opportunistic Investments 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][19] - 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] - 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] - Construction at 34th Street (Miami) remains on schedule and on budget, with first residents expected in 3Q 2027 and stabilization in 4Q 2028[19] Investment & Disposition Activity 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] - 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] - 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] - 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] Balance Sheet and Financing Activity 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] 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] - 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] Commitment to Enhance Stockholder Value 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] - 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] - Morgan Stanley & Co. LLC is serving as financial advisor to Aimco for the strategic process[26] - 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] 2025 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] 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] Consolidated Statements of Operations 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 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 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 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] 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 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] Supplemental Schedule 4 – Aimco Capital Additions 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] Supplemental Schedule 5 – Aimco Development and Redevelopment Project Summaries 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 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][65] Aimco Development and Redevelopment Pipeline Projects 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] Supplemental Schedule 6 – Stabilized Operating Properties 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] - 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] Supplemental Schedule 7 – Acquisitions, Dispositions, and Leased Communities 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] Supplemental Schedule 8 – Net Asset Value Components 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] Supplemental Schedule 9 – Asset List 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] - Recently Completed Developments include Oak Shore (Corte Madera, CA), Upton Place (Washington, DC), and Strathmore Square Phase 1 (Bethesda, MD)[84] - Active Development is 34th Street in Miami, FL[84] - 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] Glossary and Reconciliations of Non-GAAP Financial and Operating Measures 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 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][95] - 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][102] - 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] 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 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 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] - 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] - Assets Held for Sale include those assets that, as of the last day of the quarter, were under contract with non-refundable deposits[112]