DENVER, Aug. 11, 2025 /PRNewswire/ -- Apartment Investment and Management Company ("Aimco") (NYSE: AIV) announced today second quarter results for 2025 and provided highlights on recent activities.Financial Results Aimco's net loss attributable to common stockholders per share, on a fully dilutive basis, was $(0.14) for the three months ended and $(0.24) for the six months ended June 30, 2025. Property Net Operating Income ("NOI") from Aimco's Stabilized Operating Properties was $24.2 million in the second ...

Financial Data and Key Metrics Changes - CenterSpace reported a core FFO of $1.28 per diluted share for Q2 2025, driven by a 2.9% year-on-year increase in same-store NOI [16] - Same-store revenues increased by 2.7% year-on-year, with a 60 basis point increase in occupancy and a 2.1% increase in average monthly revenue per occupied home [16] - Same-store expenses rose by 2.4% year-on-year, with controllable expenses up 3.2% and non-controllable expenses up 1.2% [16] Business Line Data and Key Metrics Changes - The same-store portfolio experienced a 2.7% year-on-year revenue increase, contributing to a 2.9% growth in NOI [4] - Leasing spreads in Minneapolis increased by 2.7%, with new leases up 2.5% and renewals up 2.8% [7] - In Denver, leasing spreads remained challenged due to record supply, although there are expectations for improvement in the future [7] Market Data and Key Metrics Changes - The occupancy rate reached 96.1% in the quarter, supported by high retention of 60.2% [5] - The rent-to-income ratio for residents was reported at 22.5%, with same-store bad debt at approximately 40 basis points for the quarter [7] - Salt Lake City showed strong momentum with the second highest level of effective rent change among institutional markets [11] Company Strategy and Development Direction - The company is focused on capital recycling to improve portfolio metrics and increase exposure to institutional markets [5] - Recent acquisitions in Colorado and Utah, along with dispositions in Minnesota, are part of the strategy to enhance growth profiles [5] - The company aims to maintain best-in-class operations while driving shareholder results through continued earnings growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational platform's readiness for market repositioning efforts, with strong absorption rates in many markets [5] - The anticipated drop in supply in Denver, combined with expected job growth, is expected to turn current headwinds into tailwinds [7] - Management remains optimistic about the future despite macro volatility affecting stock prices [8] Other Important Information - An impairment charge of $14.5 million was booked due to the shorter holding period for properties being marketed for sale [17] - The company expanded its line of credit capacity by $150 million to facilitate recent acquisitions [19] Q&A Session Summary Question: Can you talk about any guardrails around dilution to offset organic growth? - Management indicated they are monitoring the balance sheet closely and aim to continue growing earnings year over year while managing temporary upticks in leverage [22][23] Question: Do you have any July leasing stats? - Management noted that trends from June continued, with Denver showing signs of improvement, although overall leasing remains healthy [24][25] Question: How have your expectations for top-line growth changed? - Expectations for Denver have been adjusted downward, but strong performance in tertiary markets has offset this [30] Question: Can you discuss the types of buyers for the assets being sold? - There is strong buyer interest with multiple offers from both local and national capital sources [32][33] Question: What is the long-term plan for leverage? - Management aims to reduce leverage below seven times over time, ideally targeting the low fives [36][37] Question: What are the cap rates on recent acquisitions? - Recent acquisitions had cap rates in the high fours, with specific rates of 4.8% for Railway and 4.65% for Sugar Mountain [42] Question: How is the company thinking about timing of capital allocation? - Management is not racing against a clock but is focused on taking advantage of opportunities as they arise [81][82]

Core Insights - Centerspace reported a net loss of $0.87 per diluted share for Q2 2025, compared to a net loss of $0.19 per diluted share in Q2 2024 [7] - Funds from Operations (FFO) per diluted share for Q2 2025 was $1.24, a decrease from $1.28 in Q2 2024 [2][7] - Core FFO per diluted share increased by 0.8% to $1.28 for Q2 2025, compared to $1.27 for the same period in 2024 [7] Financial Performance - Revenue for Q2 2025 increased by $3.5 million or 5.4% to $68.5 million, compared to $65.0 million for Q2 2024 [7] - Same-store revenues increased by 2.7% for Q2 2025 compared to Q2 2024, contributing to a 2.9% increase in same-store Net Operating Income (NOI) [7] - Same-store expenses rose by 2.4% year-over-year, while sequentially they decreased by 1.3% [2] Operational Metrics - Weighted average occupancy for Q2 2025 was 96.1%, up from 95.5% in Q2 2024 [2] - New lease rate growth was 2.1% for Q2 2025, while renewal lease rate growth was 2.6% [2] - The retention rate improved to 60.2% in Q2 2025 from 49.2% in Q2 2024 [2] Balance Sheet and Liquidity - As of the end of Q2 2025, Centerspace had total liquidity of $206.3 million, including $194.0 million available under lines of credit and $12.4 million in cash [5] - The company updated its 2025 financial outlook, projecting a net loss per share of $(0.71) to $(0.45) and FFO per share of $4.70 to $4.83 [9] Recent Developments - Centerspace acquired Sugarmont, its first apartment community in Salt Lake City, for $149.0 million [7] - On July 29, 2025, the company closed on the acquisition of Railway Flats, a 420-home apartment community in Loveland, CO, for $132.2 million [10]

Company Overview - Centerspace (NYSE: CSR) is an owner and operator of apartment communities, focusing on providing quality homes with an emphasis on integrity and service [2]. - Founded in 1970, the company currently owns 72 apartment communities comprising 13,353 homes across several states including Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah [2]. Upcoming Financial Results - Centerspace will release its operating results for the quarter ended June 30, 2025, after market close on August 4, 2025 [1]. - A conference call to discuss these results is scheduled for August 5, 2025, at 10:00 a.m. Eastern Time [1]. Recognition - Centerspace was recognized as a top workplace for the sixth consecutive year in 2025 by the Minneapolis Star Tribune [2].

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Core Insights - Centerspace reported a net loss of $0.22 per diluted share for Q1 2025, an improvement from a net loss of $0.37 per diluted share in Q1 2024 [2][5] - Funds from Operations (FFO) per diluted share increased slightly to $1.17 in Q1 2025 from $1.16 in Q1 2024, while Core FFO per diluted share decreased by 1.6% to $1.21 from $1.23 [2][5] - Same-store revenues rose by 3.5% year-over-year, contributing to a 2.1% increase in same-store Net Operating Income (NOI) [2][5] Financial Performance - Total revenue for Q1 2025 was $67.1 million, up by $2.6 million or 4.0% compared to $64.5 million in Q1 2024 [5] - Same-store expenses increased by 5.8% year-over-year, while same-store NOI saw a 2.1% increase [2][5] - The weighted average occupancy rate improved to 95.8% in Q1 2025 from 94.6% in Q1 2024 [2][5] Lease Metrics - New lease rate growth declined by 1.1% in Q1 2025, while renewal lease rate growth increased to 3.5% from 3.1% in Q4 2024 [2][5] - The retention rate dropped to 49.2% in Q1 2025 from 54.7% in Q4 2024 [2][5] Balance Sheet - As of the end of Q1 2025, Centerspace had total liquidity of $223.2 million, comprising $211.3 million available under lines of credit and $11.9 million in cash and cash equivalents [4] Updated Financial Outlook - Centerspace maintained its 2025 financial outlook, projecting same-store revenue growth between 1.50% and 3.50% and same-store NOI growth between 1.25% and 3.25% [7] - The updated outlook for FFO per diluted share remains between $4.73 and $4.97, and for Core FFO per diluted share between $4.86 and $5.10 [7]

Financial Data and Key Metrics Changes - The company reported core FFO for Q1 2025 of $2.20 per diluted share, which was $0.04 above the midpoint of guidance [21] - Same store revenue growth for the quarter was 0.1%, with net delinquency representing just 0.3% of billed rents [13][21] - Average effective rent per unit decreased by $9 compared to Q1 2024, while occupancy increased by 30 basis points year-over-year to 95.6% [5][13] Business Line Data and Key Metrics Changes - Blended lease pricing for Q1 2025 was negative 0.5%, showing a 160 basis point improvement sequentially from Q4 2024 [13] - Renewal rates grew by 4.5% on a lease-over-lease basis, a 30 basis point increase from the previous quarter [13] - The lease-up portfolio had a combined occupancy of 71.6%, with one property reaching stabilization [16] Market Data and Key Metrics Changes - Virginia markets, including Richmond and Northern Virginia, outperformed the portfolio average, while Austin, Phoenix, and Nashville continued to struggle with supply pressures [14][15] - The company noted strong demand trends with record absorption levels in its markets, indicating a favorable environment for recovery as supply declines [19] Company Strategy and Development Direction - The company is focused on high-growth markets and plans to start three to four new developments in 2025, with a suburban project in Charleston, SC, set to begin construction in Q2 [8][9] - Investments in technology initiatives and property-wide WiFi are expected to enhance operational efficiencies and support future earnings growth [8][17] - The company aims to recycle its portfolio by selling underperforming assets, as evidenced by the recent exit from Columbia, SC [9][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery cycle and the ability of their diversified portfolio to absorb new supply [10][66] - The company remains cautious about macroeconomic uncertainties but believes its operational efficiencies and market positioning will allow it to capitalize on growth opportunities [5][66] - Management noted that migration trends and single-family home affordability challenges are expected to support strong renewal performance [19][68] Other Important Information - The company has a development pipeline valued at $1.5 billion, with a comfortable funding level of $1 billion to $1.2 billion expected for the year [8][9] - The balance sheet remains strong, with $1 billion in cash and borrowing capacity, and 94% of outstanding debt fixed at an average rate of 3.8% [22] Q&A Session Summary Question: Visibility on new lease spreads for late May or early June - Management indicated they have good visibility on new lease rates, with a focus on pre-leasing efforts providing additional clarity [25][26] Question: Confidence in inflection in rent growth - Management noted a steady acceleration in new lease rates, expecting continued improvement into Q2 [29] Question: Development lease-up expectations and supply impact - Management expressed confidence in lease-up performance, with some properties experiencing slower leasing but outperforming on rent expectations [33][34] Question: Changes in acquisition volumes and pricing expectations - Management observed a reduction in deal volume but consistent pricing, with sub-five percent cap rates prevailing [97][98] Question: Impact of immigration policy on demand trends - Management reported no significant impact from immigration policy changes on operations or construction at this time [86] Question: Cadence of comps throughout the year - Management expects easier comps in Q4, with some benefits from seasonality in Q2 and Q3 [100]

Financial Data and Key Metrics Changes - The company reported a core FFO per share of $0.27 for Q1 2025, flat compared to the prior year, reflecting the impact of portfolio optimization and deleveraging strategy completed last year [14] - Same store NOI grew by 2.7%, driven by a 2.3% increase in same store revenue and a 1.6% increase in operating expenses year-over-year [14][19] - The average occupancy increased by 100 basis points year-over-year, contributing to the same store NOI growth [6][14] Business Line Data and Key Metrics Changes - The company completed value-add renovations on 275 units with a weighted average return on investment of 16.2% [6] - The company has 28 communities with over 4,600 units in the ongoing value-add program, expecting to complete between 505,000 units this year [6] - The company sold its final asset in Birmingham, Alabama for $111 million, completing its exit from that market [7] Market Data and Key Metrics Changes - In 2020, approximately 79,000 new apartment units were delivered across the company's submarkets, representing 6.1% of existing supply [10] - The company expects only 32,000 new deliveries in 2025 and 24,000 units in 2026, representing a 60% annual decrease in 2025 and an additional 24% decrease in 2026 [10] - The company forecasts positive net absorption of 8.5% in its submarkets for 2025, significantly higher than the national average of 1.5% [11][65] Company Strategy and Development Direction - The company is focused on a long-term investment strategy, capitalizing on strong population and employment growth in its communities [5][12] - The company aims to maintain pricing power and expects ongoing rental rate gains without sacrificing occupancy [12][19] - The acquisition pipeline remains strong, with ample liquidity to fund accretive investments [8][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but remains confident in supply and demand fundamentals driving operations [12][19] - The company expects to enter 2026 with solid earnings momentum and growth opportunities [20] - Management noted that demand for Class B communities has proven resilient, with stable occupancy rates and positive blended rent growth [11][52] Other Important Information - The company ended the quarter with a net debt to adjusted EBITDA ratio of 6.3 times, with plans to achieve a mid-five ratio by year-end 2025 [17] - The company has nearly $750 million of liquidity available for investments [18] Q&A Session Summary Question: Can you walk through the leasing spreads for the first quarter? - New leases were down 4.6%, while renewals were up 4.8%. The company did not experience the same level of decline in rental rates as some peers due to its Class B portfolio [23][24] Question: Have you seen any evidence of stress from tariffs or macro uncertainty? - The company has not felt significant effects from tariffs or deportations and has seen a decrease in bad debt by 50 basis points year-over-year [25][27] Question: Can you speak to trends in leasing traffic and conversion? - Demand is up 25% compared to the same time last year, with conversion rates remaining stable [31] Question: What are your expectations for new lease rates and renewals? - The company anticipates positive trends in blended rental rates, with improvements noted month-to-month [36][38] Question: How are you thinking about the revenue guidance for the full year? - The company expects continued strong demand and significant declines in new supply, maintaining its revenue guidance [19][65] Question: Can you discuss the impact of insurance renewals on expenses? - The company expects a net decrease in insurance premiums despite initially assuming a 10% increase [72][75] Question: Are there any other markets you expect to exit by year-end? - Currently, there are no expected changes to the company's market dispositions [81] Question: How do you expect the performance between Class A and Class B to trend? - Class B properties are showing better rental rate growth compared to Class A properties, which are facing more competition from new supply [88][89]