Aimco Reports Third Quarter Results, Updates 2024 Guidance, and Provides Highlights on Recent Activities

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