8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 8, 2024

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

AIMCO OP L.P.

(Exact name of registrant as specified in its charter)

Maryland (Apartment Investment and Management Company)	1-13232	84-1259577
Delaware (Aimco OP L.P.)	0-56223	85-2460835
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation or organization)	File Number)	Identification No.)

4582 SOUTH ULSTER STREET

SUITE 1450, DENVER, CO 80237

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (303) 224-7900

NOT APPLICABLE

(Former name or Former Address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Apartment Investment and Management Company Class A Common Stock	AIV	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the exchange act. ☐

ITEM 2.02. Results of Operations and Financial Conditions.

On May 8, 2024 Apartment Investment and Management Company and Aimco OP L.P. (the “Company”) issued a press release announcing results for the period ended March 31, 2024. A copy of the press release is attached as exhibit 99.1 to this report.

The information under this Item 2.02 and Exhibit 99.1 is furnished by the Company in accordance with the rules of the Securities and Exchange Commission. This information shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01. Financial Statements and Exhibits.

(d) The following exhibits are filed with this report:

Exhibit No.	Description
99.1	Press release dated May 8, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: May 8, 2024
	APARTMENT INVESTMENT AND MANAGEMENT COMPANY
		/s/ H. Lynn C. Stanfield
		H. Lynn C. Stanfield
		Executive Vice President and Chief Financial Officer
	AIMCO OP L.P.
	By: Aimco OP GP, LLC, its general partner By: Apartment Investment and Management Company, its managing member
		/s/ H. Lynn C. Stanfield
		H. Lynn C. Stanfield
		Executive Vice President and Chief Financial Officer

EX-99.1

 

 

Table of Contents

Page
3	Earnings Release
7	Outlook
10	Consolidated Statements of Operations
11	Consolidated Balance Sheets
12	Schedule 1 – EBITDAre and Adjusted EBITDAre
13	Schedule 2 – Aimco Leverage and Maturities
14	Schedule 3 – Aimco Portfolio
15	Schedule 4 – Aimco Capital Additions
16	Schedule 5 – Aimco Development and Redevelopment Project Summaries
18	Schedule 6 – Stabilized Operating Properties
19	Schedule 7 – Acquisitions, Dispositions, and Leased Communities
20	Schedule 8 – Net Asset Value Components
21	Glossary and Reconciliations of Non-GAAP Financial and Operating Measures

2

 

Aimco Reports First Quarter Results and Provides Highlights on

Recent Activities

Denver, Colorado, May 8, 2024 – Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today first quarter results for 2024 and provided highlights on recent and planned activities.

Financial Results and Highlights

•Net loss attributable to common stockholders per share, on a fully dilutive basis, was $(0.07) for the quarter ended March 31, 2024, compared to net loss per share of $(0.06), for the same period in 2023. Higher net operating income (NOI) and gains related to our interest rate hedging instruments were offset by higher interest expense and depreciation related to advancing and completing development projects.

•First Quarter 2024 revenue, expenses, and NOI from Aimco’s Stabilized Operating Properties increased 5.4%, 2.8%, and 6.5%, respectively, year-over-year, with average monthly revenue per apartment home increasing by 5.4% to $2,348.

•During the first quarter, construction of Aimco's three active development projects advanced on plan. Following quarter end, Aimco substantially completed construction at Upton Place in Upper Northwest Washington, D.C. and, as of April 30, 2024, had leased 112 of the 689 units at rates ahead of underwriting.

•Aimco acquired 0.9 million shares of its common stock during the first quarter 2024 at an average cost of $7.49 per share.

CEO Commentary

Wes Powell, Aimco President and Chief Executive Officer, comments: "Aimco delivered solid first quarter results and made steady progress towards the plans and objectives that we outlined for 2024. Demand for rental housing continues to outpace supply in the vast majority of Aimco’s markets, investment activity focused on multifamily assets has accelerated in recent months, and our regional development teams are executing well.

“Net operating income produced by our Stabilized portfolio was $107.4 million over the trailing twelve-month period and continues to grow, up 6.5% year-over-year during the first quarter. We remain on track to complete construction on our current class of development projects by year-end. These projects remain on budget, with total direct costs projected to be $648 million, and are expected to produce $44 million of NOI annually upon their stabilization. While our regional development teams are planning for select new project starts, total Aimco equity allocated to development and related activities is projected to be substantially reduced when compared to prior years.

“Consistent with our overarching goal to create and unlock value for Aimco stockholders, our previously announced plans to sell our 1001 Brickell Bay Drive office building and the adjacent Yacht Club apartment building in Miami, Florida are advancing steadily. As expected, these extraordinary assets have generated broad interest and our broker plans to solicit offers over the coming weeks. In addition, during the second quarter we plan to market for sale The Hamilton, our fully renovated waterfront asset in Miami’s Edgewater neighborhood. As sales are closed, and associated liabilities are retired, net proceeds will be prudently allocated with a preference for returning capital to stockholders.

First Quarter 2024 Earnings Release and Supplemental Schedules | 3

 

“Aimco continues to benefit from a well-structured balance sheet. Property-level borrowings on our Stabilized portfolio (representing two-thirds of Aimco’s total debt) are at favorable fixed-rates, are assumable, and have, on average, seven years of term remaining.

“Finally, I offer my thanks and appreciation to the Aimco team for their dedication and for continuing to produce strong results.”

Operating Property Results

Aimco owns a diversified portfolio of operating apartment communities located in eight major U.S. markets with average rents in line with local market averages.

Results at Aimco’s Stabilized Operating Properties were as follows:

	First Quarter
Stabilized Operating Properties	Year-over-Year			Sequential
($ in millions)	2024	2023	Variance	4Q 2023	Variance
Average Daily Occupancy	97.9%	98.0%	(0.1)%	97.5%	0.4%
Revenue, before utility reimbursements	$38.6	$36.7	5.4%	$38.4	0.7%
Expenses, net of utility reimbursements	11.5	11.2	2.8%	10.6	8.3%
Net operating income (NOI)	27.1	25.5	6.5%	27.7	(2.2)%

•Revenue in the first quarter 2024 was $38.6 million, up 5.4% year-over-year, resulting from a 5.4% increase in average monthly revenue per apartment home to $2,348 and a 10-basis point decrease in Average Daily Occupancy to 97.9%.

•Effective rents on all leases during the first quarter 2024 were 4.7% higher, on average, than the previous lease and 62.5% of residents whose leases were expiring signed renewals.

•The median annual household income of new residents was $123,000 in the first quarter 2024, representing a rent-to-income ratio of 20.3%, up 80 bps from the same period last year.

•Expenses in the first quarter 2024 were up 2.8% year-over-year primarily from higher real estate taxes and insurance.

•NOI in the first quarter 2024 was $27.1 million, up 6.5% year-over-year.

•Year to date, as of April 30, 2024, effective rents on all transacted leases were 4.3% higher, on average, than the previous lease.

Value Add and Opportunistic Investments

Development and Redevelopment

Aimco generally seeks development and redevelopment opportunities where barriers to entry are high, target customers can be clearly defined, and Aimco has a comparative advantage over others in the market. Aimco’s value add and opportunistic investments may also target portfolio acquisitions, operational turnarounds, and re-entitlements.

First Quarter 2024 Earnings Release and Supplemental Schedules | 4

 

As of March 31, 2024, Aimco had three active development multifamily projects located in two U.S. markets, in varying phases of construction and lease-up. These projects remain on track, as measured by construction budget and lease-up metrics. Additionally, Aimco has a pipeline of future value add opportunities totaling approximately 13 million gross square feet of development in Aimco's target markets of Southeast Florida, the Washington D.C. Metro, and Colorado's Front Range.

During the first quarter, Aimco invested $42.8 million in development and redevelopment activities, inclusive of construction debt and third-party equity. Updates on active development and redevelopment projects include:

•In Upper Northwest Washington D.C., construction at Upton Place is substantially complete. As of April 30, 2024, Aimco has delivered all 689 apartment homes with 112 units leased or pre-leased and 74 homes occupied, at rates ahead of our initial projections. To provide additional revenue and vibrancy during lease up, Aimco is collaborating with Placemakr for the temporary use of 150 units as short-term furnished rentals. Additionally, as of April 30, 2024, more than 82% of the project's 105K square feet of retail space had been leased, and Aimco was in final lease negotiations with, or had letters of intent from, retailers on another 15% of the square footage.

•In Bethesda, Maryland, construction is progressing on plan at the first phase of Strathmore Square, which will contain 220 highly tailored apartment homes with initial delivery on track for the second half of 2024.

•In Corte Madera, California, construction is ongoing at Oak Shore where 16 luxury single-family rental homes and eight accessory dwelling units are being developed. As of April 30, 2024, four of the residences were occupied and Aimco had pre-leased another five at rates ahead of our initial projections.

•In the first quarter 2024, Aimco invested $1 million into programming, design, documentation, and entitlement efforts related to select pipeline projects located in South Florida and on the Anschutz Medical Campus in Aurora, Colorado. Consistent with Aimco's capital allocation strategy, it may choose to monetize certain of these assets prior to vertical construction in an effort to maximize value add and risk-adjusted returns.

Investment & Disposition Activity

Aimco is focused on prudently allocating capital and delivering strong investment returns. Consistent with Aimco's capital allocation philosophy, it monetizes the value within its assets when accretive uses of the proceeds are identified and invests when the risk-adjusted returns are superior to other uses of capital.

•In the first quarter, Aimco, along with CBRE serving as sales broker, brought to market a two-property waterfront assemblage located in Miami, Florida. The properties include 1001 Brickell Bay Drive, a 605K gross square foot office building and 1111 Brickell Bay Drive (aka Yacht Club Apartments), a 357-unit multifamily asset. Combined, the 4.25-acre site can accommodate 3.1 million gross square feet of development, nearly 2.5 times the size of the current improvements. Additionally, during the second quarter 2024, Aimco plans to market for sale The Hamilton, its recently completed waterfront redevelopment in Miami’s Edgewater neighborhood. If pricing and terms are acceptable, Aimco plans to close on these dispositions by the end of 2024.

First Quarter 2024 Earnings Release and Supplemental Schedules | 5

 

Balance Sheet and Financing Activity

Aimco is highly focused on maintaining a strong balance sheet, including ample liquidity at all times. As of March 31, 2024, Aimco had access to $290.4 million, including $121.8 million of cash on hand, $18.6 million of restricted cash, and the capacity to borrow up to $150.0 million on its revolving credit facility.

Aimco’s net leverage as of March 31, 2024, was as follows:

	as of March 31, 2024
Aimco Share, $ in thousands	Amount			Weighted Avg. Maturity (Yrs.) [1]
Total non-recourse fixed rate debt	$	775,463			7.0
Total non-recourse floating rate debt		89,843			1.5
Total non-recourse construction loan debt		313,193			1.6
Cash and restricted cash		(140,018	)
Net Leverage	$	1,038,481

[1] Weighted average maturities presented exclude contractual extension rights.

As of March 31, 2024, 100% of Aimco's total debt was either fixed rate or hedged with interest rate cap protection and, including contractual extensions, Aimco has only $8.5 million, or less than 1% of its total debt, maturing prior to May 2026.

Public Market Equity

Common Stock Repurchases

•In the first quarter, Aimco repurchased 0.9 million shares of its common stock at a weighted average price of $7.49 per share. Since the start of 2022 and through April 30, 2024, Aimco has repurchased 10.6 million shares at an average cost of $7.31 per share.

•In the first quarter, approximately 36,907 units of the Aimco Operating Partnership's equity securities were redeemed in exchange for cash at a weighted average price per unit of $7.74.

Commitment to Enhance Stockholder Value

The Aimco Board of Directors, in coordination with management, remains intently focused on maximizing and unlocking value for Aimco stockholders and continues to engage regularly with several leading advisory firms, including Morgan Stanley & Co. LLC.

Aimco’s announced plans to reduce exposure to development activity and monetize certain assets represent a commitment to simplify the portfolio and unlock embedded value when there are opportunities to do so. These efforts will further improve Aimco’s positioning in the market and provide increased flexibility as the Board of Directors continues its review and consideration of broader strategic actions to maximize stockholder value. In addition, in conjunction with our contemplated asset sales, we will prioritize return of capital to our stockholders as a key component of our capital allocation philosophy.

There can be no assurance that the ongoing review will result in any particular transaction or transactions or other strategic changes or outcomes and the timing of any such event is similarly uncertain. The Company does not intend to disclose or comment on developments related to the foregoing unless or until it determines that further disclosure is appropriate or required.

First Quarter 2024 Earnings Release and Supplemental Schedules | 6

 

2024 Outlook

	1Q 2024		2024	2024
$ in millions (except per share amounts), Square Feet in millions Forecast is full year unless otherwise noted	Results		Forecast	Prior Forecast
Net income (loss) per share – diluted [1]		$(0.07)	$(0.50) - $(0.40)	$(0.50) - $(0.40)
Operating Properties
Revenue Growth, before utility reimbursements		5.4%	1.75% - 3.75%	1.75% - 3.75%
Operating Expense Growth, net of utility reimbursements		2.8%	6.00% - 8.00%	6.00% - 8.00%
Net Operating Income Growth		6.5%	-0.75% - 2.75%	-0.75% - 2.75%
Recurring Capital Expenditures		$3	$11 - $13	$11 - $13
Active Developments and Redevelopments
Total Direct Costs of Projects in Occupancy Stabilization at Period End [2]		$68	$648	$648
Total Direct Costs of Projects Under Construction at Period End [2]		$580	$0 - $250	$0 - $250
Direct Project Costs		$30.2	$70 - $100	$70 - $100
Other Capitalized Costs		$7.0	$15 - $20	$15 - $20
Construction Loan Draws [3]		$33.6	$85 - $90	$85 - $90
JV Partner Equity Funding		$0	$0 - $25	$0 - $25
AIV Equity Funding [4]		$3.6	$0 - $5	$0 - $5
Pipeline Projects
Pipeline Size Gross Square Feet at Period End [5]		13.3	9.5 - 13.3	9.5 - 13.3
Pipeline Size Multifamily Units at Period End [5]		5,972	4,358 - 5,972	4,358 - 5,972
Pipeline Size Commercial Sq Ft at Period End [5]		1.7	1.2 - 1.7	1.2 - 1.7
Planning Costs		$0.8	$8 - $15	$12 - $17
Real Estate Transactions
Acquisitions		None	None	None
Dispositions [6]		None	See Below	See Below
General and Administrative		$8.5	$33 - $35	$33 - $35
Leverage
Interest Expense, net of capitalization [7]		$10	$52 - $57	$52 - $57

[1] Net income (loss) per share - diluted does not include any gains associated with potential transactions in 2024.

[2] Includes land or leasehold value.

[3] Construction loan draws at Aimco Share in first quarter 2024 were $29.5 million.

[4] Full year AIV equity funding is expected to be between $0 and $5 million. Quarter-end balances may fluctuate depending on timing of construction loan draws.

[5] Includes pipeline projects as presented on Supplemental Schedule 5b.

[6] In the first quarter 2024, Aimco, along with CBRE serving as sales broker, brought to market, its Brickell Assemblage, a two-property waterfront assemblage located in Miami, Florida. Additionally, during the second quarter 2024, Aimco plans to market for sale The Hamilton, its recently completed waterfront redevelopment in Miami’s Edgewater neighborhood. While Aimco does not provide specific guidance related to future transactions, if pricing and terms are acceptable, Aimco expects to complete the transactions by year end.

[7] Includes GAAP interest expense, exclusive of the amortization of deferred financing costs, and reduced by interest rate option payments which are included in the Realized and unrealized gains (losses) on interest rate options line on Aimco's income statement.

First Quarter 2024 Earnings Release and Supplemental Schedules | 7

 

Supplemental Information

The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco’s website at investors.aimco.com.

Glossary & Reconciliations of Non-GAAP Financial and Operating Measures

Financial and operating measures found in this Earnings Release and the Supplemental Information include certain financial measures used by Aimco management that are measures not defined under accounting principles generally accepted in the United States, or GAAP. Certain Aimco terms and Non-GAAP measures are defined in the Glossary in the Supplemental Information and Non-GAAP measures reconciled to the most comparable GAAP measures.

About Aimco

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco’s mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV. For more information about Aimco, please visit our website www.aimco.com.

Team and Culture

Aimco has a national presence with corporate headquarters in Denver, Colorado and Washington, D.C. Our investment platform is managed by experienced professionals based in three regions, where it will focus its new investment activity: Southeast Florida, the Washington D.C. Metro Area and Colorado's Front Range. By regionalizing this platform, Aimco can leverage the in-depth local market knowledge of each regional leader, creating a comparative advantage when sourcing, evaluating, and executing investment opportunities.

Above all else, Aimco is committed to a culture of integrity, respect, and collaboration.

Contact

Matt Foster, Sr. Director, Capital Markets and Investor Relations

Investor Relations 303-793-4661, investor@aimco.com

First Quarter 2024 Earnings Release and Supplemental Schedules | 8

 

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. The forward-looking statements in this document include, without limitation, statements regarding our future plans and goals, including our pipeline investments and projects, our plans to eliminate certain near term debt maturities, our estimated value creation and potential, our timing, scheduling and budgeting, projections regarding revenue and expense growth, our plans to form joint ventures, our plans for new acquisitions or dispositions, our strategic partnerships and value added therefrom, the potential for adverse economic and geopolitical conditions, which negatively impact our operations, including on our ability to maintain current or meet projected occupancy, rental rate and property operating results; the effect of acquisitions, dispositions, developments, and redevelopments; our ability to meet budgeted costs and timelines, and achieve budgeted rental rates related to our development and redevelopment investments; expectations regarding sales of our apartment communities and the use of proceeds thereof; the availability and cost of corporate debt; and our ability to comply with debt covenants, including financial coverage ratios. We caution investors not to place undue reliance on any such forward-looking statements.

These forward-looking statements are based on management’s judgment as of this date, which is subject to risks and uncertainties that could cause actual results to differ materially from our expectations, including, but not limited to: the risk that the 2024 plans and goals may not be completed, as expected, in a timely manner or at all; geopolitical events which may adversely affect the markets in which our securities trade, and other macro-economic conditions, including, among other things, rising interest rates and inflation, which heightens the impact of the other risks and factors described herein; real estate and operating risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the amount, location and quality of competitive new housing supply; the timing and effects of acquisitions, dispositions, developments and redevelopments; expectations regarding sales of apartment communities and the use of proceeds thereof; insurance risks, including the cost of insurance, and natural disasters and severe weather such as hurricanes; supply chain disruptions, particularly with respect to raw materials such as lumber, steel, and concrete; financing risks, including the availability and cost of financing; the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; the risk that earnings may not be sufficient to maintain compliance with debt covenants, including financial coverage ratios; legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of laws and governmental regulations that affect us and interpretations of those laws and regulations; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently owned by us.

In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended (the “Code”) and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership.

Readers should carefully review Aimco’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Aimco’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent Quarterly Reports on Form 10-Q and other documents Aimco files from time to time with the SEC. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.

These forward-looking statements reflect management’s judgment and expectations as of this date, and Aimco undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

First Quarter 2024 Earnings Release and Supplemental Schedules | 9

 

Consolidated Statements of Operations

(in thousands, except per share data) (unaudited)

	Three Months Ended March 31,
	2024			2023
REVENUES:
Rental and other property revenues	$	50,203		$	44,268
OPERATING EXPENSES:
Property operating expenses		21,199			17,504
Depreciation and amortization		19,468			16,271
General and administrative expenses		8,549			8,403
Total operating expenses		49,216			42,178
Interest income		2,648			2,058
Interest expense [1]		(13,370	)		(9,725	)
Realized and unrealized gains (losses) on interest rate options		1,672			(1,057	)
Realized and unrealized gains (losses) on        equity investments		(271	)		137
Income from unconsolidated real estate partnerships		312			174
Other income (expense), net		(1,904	)		(3,626	)
Income (loss) before income tax benefit		(9,926	)		(9,949	)
Income tax benefit (expense)		2,730			4,196
Net income (loss)		(7,196	)		(5,753	)
Net (income) loss attributable to redeemable noncontrolling      interests in consolidated real estate partnerships		(3,560	)		(3,274	)
Net (income) loss attributable to noncontrolling interests      in consolidated real estate partnerships		16			(264	)
Net (income) loss attributable to common noncontrolling      interests in Aimco Operating Partnership		554			474
Net income (loss) attributable to Aimco	$	(10,186	)	$	(8,817	)
Net income (loss) attributable to common stockholders per share – basic	$	(0.07	)	$	(0.06	)
Net income (loss) attributable to common stockholders per share – diluted	$	(0.07	)	$	(0.06	)
Weighted-average common shares outstanding – basic		140,594			145,827
Weighted-average common shares outstanding – diluted		140,594			145,827

[1] Interest expense increased in the three months ended March 31, 2024 from the same periods ending March 31, 2023, due primarily to interest on construction loan draws.

First Quarter 2024 Earnings Release and Supplemental Schedules | 10

 

Consolidated Balance Sheets

(in thousands) (unaudited)

	March 31,			December 31,
	2024			2023
Assets
Buildings and improvements	$	1,638,190		$	1,593,802
Land		620,488			620,821
Total real estate		2,258,678			2,214,623
Accumulated depreciation		(597,380	)		(580,802	)
Net real estate		1,661,298			1,633,821
Cash and cash equivalents		121,814			122,601
Restricted cash		18,589			16,666
Interest rate options		5,072			5,255
Unconsolidated real estate partnerships		23,282			23,125
Notes receivable		58,187			57,554
Right-of-use lease assets - finance leases		108,673			108,992
Other assets, net		122,976			121,461
Total assets	$	2,119,891		$	2,089,475
Liabilities and Equity
Non-recourse property debt, net	$	845,671		$	846,298
Non-recourse construction loans, net		336,332			301,443
Total indebtedness		1,182,003			1,147,741
Deferred tax liabilities		108,487			110,284
Lease liabilities - finance leases		119,269			118,697
Accrued liabilities and other		131,554			121,143
Total liabilities		1,541,313			1,497,865
Redeemable noncontrolling interests in consolidated real estate partnerships		173,158			171,632
Equity:
Common Stock		1,402			1,406
Additional paid-in capital		460,907			464,538
Retained earnings (deficit)		(126,478	)		(116,292	)
Total Aimco equity		335,831			349,652
Noncontrolling interests in consolidated real estate partnerships		51,333			51,265
Common noncontrolling interests in Aimco Operating Partnership		18,256			19,061
Total equity		405,420			419,978
Total liabilities and equity	$	2,119,891		$	2,089,475

First Quarter 2024 Earnings Release and Supplemental Schedules | 11

 

Supplemental Schedule 1

EBITDAre and Adjusted EBITDAre

(in thousands) (unaudited)

	Three Months Ended March 31, 2024			Twelve Months Ended March 31, 2024
Net Income (loss)	$	(7,196	)	$	(158,746	)
Adjustments:
Interest expense		13,370			41,363
Income tax (benefit) expense		(2,730	)		(11,286	)
Gains on dispositions of real estate		-			(7,984	)
Depreciation and amortization		19,468			72,031
Adjustment related to EBITDAre of unconsolidated partnerships		215			799
EBITDAre	$	23,127		$	(63,823	)
Net (Income) loss attributable to redeemable noncontrolling Interests consolidated real estate partnerships		(3,560	)		(14,211	)
Net (Income) loss attributable to noncontrolling interests consolidated real estate partnerships		16			(3,710	)
EBITDAre adjustments attributable to noncontrolling interests		(575	)		(832	)
Mezzanine investment (income) loss, net		628			156,313
Realized and unrealized (gains) losses on interest rate options		(1,672	)		(3,848	)
Adjusted EBITDAre	$	17,964		$	69,891

First Quarter 2024 Earnings Release and Supplemental Schedules | 12

 

Supplemental Schedule 2

Aimco Leverage and Maturities

(dollars in thousands) (unaudited)

				Aimco Share of					Total			Weighted Average		Weighted Average Interest Rate
Debt	Consolidated			Unconsolidated Partnerships		Noncontrolling Interests			Aimco Share			Maturity (Years) [3]		Stated			Capped
Fixed rate loans payable	$	771,000		$	4,463		—		$	775,463			7.0		4.25	%		4.25	%
Floating rate loans payable		81,300			8,543		—			89,843			1.5		9.83	%		8.00	%
Construction loan debt [1]		342,817			—		(29,624	)		313,193			1.6		9.43	%		7.76	%
Total non-recourse debt [2]	$	1,195,117		$	13,005	$	(29,624	)	$	1,178,499			5.0		6.12	%		5.51	%
Revolving Credit Facility		—			—		—			—
Cash and restricted cash		(140,403	)		—		385			(140,018	)
Net Leverage	$	1,054,714		$	13,005	$	(29,239	)	$	1,038,481

Aimco Share Non-Recourse Debt

										Average Rate on Maturing Debt
	Amortization		Maturities [3]		Total		Maturities as a Percent of Total			Stated			Capped
2024 2Q	$	989	$	8,543	$	9,532		0.72	%		12.75	%		10.86	%
2024 3Q		999		100,700		101,699		8.54	%		8.64	%		6.31	%
2024 4Q		1,014		—		1,014		—			—			—
Total 2024		3,002		109,243		112,245		9.27	%		8.96	%		6.67	%
2025 1Q		1,028		—		1,028		—			—			—
2025 2Q		1,025		129,102		130,127		10.95	%		9.89	%		8.06	%
2025 3Q		1,035		—		1,035		—			—			—
2025 4Q		1,050		159,548		160,598		13.54	%		9.91	%		8.56	%
Total 2025		4,138		288,650		292,788		24.49	%		9.90	%		8.34	%
2026		2,816		75,519		78,335		6.41	%		3.10	%		3.10	%
2027		2,116		—		2,116		—			—			—
2028		2,195		—		2,195		—			—			—
2029		2,278		179,646		181,924		15.24	%		4.66	%		4.66	%
2030		2,363		—		2,363		—			—			—
2031		1,696		104,508		106,204		8.87	%		3.20	%		3.20	%
2032		112		221,639		221,751		18.81	%		4.62	%		4.62	%
2033		—		173,435		173,435		14.72	%		4.60	%		4.60	%
Thereafter		—		5,143		5,143		0.44	%		3.25	%		3.25	%
Total Aimco Share	$	20,716	$	1,157,783	$	1,178,499

[1] Aimco’s construction loan debt consists primarily of non-recourse, floating rate loans.

[2] Consolidated total non-recourse debt excludes $13.1 million of deferred financing costs.

[3] Debt maturities are presented with the earliest maturity date and do not include contractual extension options. Including extensions, the weighted average maturity is 5.7 years and Aimco has only $8.5 million of loans, at Aimco share, maturing prior to May 2026.

Common Stock, Partnership Units, and Equivalents

(in thousands) (unaudited)

	March 31, 2024
Class A Common Stock Outstanding		140,211
Participating unvested restricted stock		2,464
Potentially dilutive options, share equivalents, and non-participating unvested restricted stock		1,788
Total shares and potentially dilutive share equivalents		144,463
Common Partnership Units and equivalents outstanding		8,468
Total shares, units and potentially dilutive share equivalents		152,931

First Quarter 2024 Earnings Release and Supplemental Schedules | 13

 

Supplemental Schedule 3

Aimco Portfolio

(square feet in thousands) (land in acres) (unaudited)

	Number of Properties		Number of Apartment Homes [3]		Office and Retail Sq Ft		Hotel Keys		Development Land [4]
Consolidated
Stabilized Operating Properties		21		5,600		27.1		-		-
Other Real Estate [1]		2		-		295.0		106		-
Development and Redevelopment - Owned		3		965		103.6		-		-
Development and Redevelopment - Land [2]		6		-		-		-		21.9
Development and Redevelopment - Leased		1		24		-		-		-
Total Consolidated		33		6,589		425.7		106		21.9
Unconsolidated		6		142		-		-		2.9
Total Portfolio		39		6,731		425.7		106		24.8
Total Consolidated (Aimco Share)				6,520		415.3		106		19.5
Total Unconsolidated (Aimco Share)				73		-		-		0.6
Total Portfolio (Aimco Share)				6,593		415.3		106		20.2

[1] Other Real Estate includes:

•1001 Brickell Bay Drive, Aimco’s office building adjacent to Yacht Club Apartments in the Brickell neighborhood of Miami, Florida; and The Benson Hotel and Faculty Club on the Anschutz Medical Campus in Aurora, Colorado.

[2] Development and Redevelopment – Land includes:

•Flying Horse, developable land in Colorado Springs, Colorado;

•Two land parcels in Miami, Florida where 26 units were razed in preparation for potential future developments adjacent to The Hamilton;

•One land parcel along Broward Boulevard and the land in Flagler Village in Fort Lauderdale, Florida for potential future developments; and

•One land parcel for multifamily development on the Anschutz Medical Campus in Aurora, Colorado.

[3] Number of apartment homes includes all current apartments and those authorized for development.

[4] Development land includes the number of acres of land held by Aimco for future development, land with projects in active development is not included in this presentation.

First Quarter 2024 Earnings Release and Supplemental Schedules | 14

 

Supplemental Schedule 4

Aimco Capital Additions

(consolidated amounts in thousands) (unaudited)

	Three Months Ended
	March 31, 2024
Capital Replacements and Casualty	$	2,727
Property Upgrades		108
Tenant Improvements		275
Development and Redevelopment		42,759
Total Capital Additions [1]	$	45,870

[1] First quarter 2024 total capital additions include $31 million of Direct Capital Investment ($30 million on active projects and $1 million on projects in planning) and certain other costs capitalized in accordance with GAAP.

First Quarter 2024 Earnings Release and Supplemental Schedules | 15

 

Supplemental Schedule 5(a)

Aimco Active Development Project Summaries

(dollars in millions) (unaudited)

										Estimated / Actual
Project Name	Location	Units		Units Leased or Pre-Leased		Commercial Sq Ft		Commercial Pre-Leased		Initial Occupancy [6]		Stabilized Occupancy [6]	NOI Stabilization [6]
Upton Place [1]	Washington, D.C.		689	15%			105,053	82%		4Q 2023		4Q 2025	4Q 2026
Strathmore Square	Bethesda, MD		220	—			9,000	—		3Q 2024		4Q2025	4Q 2026
Oak Shore	Corte Madera, CA		24	33%		—		—		4Q 2023		4Q 2024	4Q 2025
Total			933				114,053
						Direct Capital Investment
Project Name	Status	Aimco Ownership [5]		Land Cost/ Leasehold Value		Planned		To-Date		Remaining
Upton Place [2]	Lease-up / Active Construction	90%			92.8		245.0		231.6		13.4
Strathmore Square	Active Construction	95%			24.9		164.0		135.6		28.4
Oak Shore	Lease-up / Active Construction	100%			6.1		47.1		37.8		9.3
Total				$	123.8	$	456.1	$	405.1	$	51.0
Estimated Direct Costs of Projects Under Construction [3]				$	579.9
Estimated Direct Costs of Projects in Occupancy Stabilization [4]				$	68.3
Total Estimated Direct Costs of Development Portfolio				$	648.2
Estimated Stabilized NOI				$	44.1

[1] As of April 30, 2024, the commercial space at Upton Place was 82% pre-leased and Aimco was in final negotiation with, or had letters of intent from, retailers for another 15% of the square footage.

[2] The ground lease for Upton Place is presented at its initial GAAP value recorded at the formation of the joint venture.

[3] Estimated Direct Costs of Projects Under Construction represents the total of the land cost or property valuation for leasehold and the planned Direct Capital Investment.

[4] Includes the land cost and Direct Capital Investment for The Benson Hotel and Faculty Club, a 106-key hotel and event space on the Anschutz Medical Campus in Aurora, Colorado.

[5] Aimco ownership presented as estimated upon construction completion.

[6] Occupancy timing and stabilization are estimates subject to change.

First Quarter 2024 Earnings Release and Supplemental Schedules | 16

 

Supplemental Schedule 5(b)

Aimco Development and Redevelopment Pipeline Projects

(unaudited)

Aimco controls a robust pipeline with opportunity for significant value creation. Aimco expects to fund pipeline development projects with 50% to 60% loan-to-cost construction loans, Aimco equity of 10% to 15% of the total development cost, and the remaining costs funded with Co-GP and/or LP equity. In the aggregate, Aimco's equity currently embedded in these pipeline assets exceeds the Aimco equity required to fund construction of the pipeline in full. In addition, annual pipeline carry costs (exclusive of incremental investment) are fully covered by the cash flow from operating properties on the Brickell Assemblage. As previously announced, Aimco is marketing for sale the Brickell Assemblage and expects the sale to be completed by the end of 2024, pending favorable pricing and terms.

				Estimated / Currently Planned [1]
Property Location	Project Name/ Description	Acreage [2]		Gross Sq Ft		Multifamily Units		Leasable Commercial Sq Ft		Earliest Vertical Construction Start
Southeast Florida
556-640 NE 34th Street (Miami)	Hamilton House		1.10		560,000		114		6,500	3Q 2024
3333 Biscayne Boulevard (Miami)	3333 Biscayne [3]		2.80		1,760,000		650		176,000	2025
510-532 NE 34th Street (Miami)	One Edgewater		0.50		533,000		204		—	2025
300 Broward Boulevard (Fort Lauderdale)	300 Broward [3]		2.31		1,700,000		935		40,000	2025
901 N Federal Highway (Fort Lauderdale)	Flagler Village Phase I		5.70		1,830,000		690		230,000	2025
1001-1111 Brickell Bay Drive (Miami)	Brickell Assemblage		4.25		3,200,000		1,500		500,000	2027
NE 9th Street & NE 5th Avenue (Fort Lauderdale)	Flagler Village Phase II		1.70		400,000		300		—	2027
NE 9th Street & NE 5th Avenue (Fort Lauderdale)	Flagler Village Phase III		1.40		400,000		300		—	2028
Washington D.C. Metro Area
5300 Block of Tuckerman Lane (Bethesda)	Strathmore Square Phase II [3]		1.35		525,000		399		11,000	2025
Colorado's Front Range
E 23rd Avenue & N Scranton Street (Aurora)	Fitzsimons 4 [3]		1.77		415,000		285		—	4Q 2024
1765 Silversmith Road (Colorado Springs)	Flying Horse		7.45		300,000		95		—	2025
E 23rd Avenue & N Scranton Street (Aurora)	Bioscience 4		1.53		232,000		—		225,000	2025
E 22nd Avenue & N Scranton Street (Aurora)	Fitzsimons 2		2.29		390,000		275		—	2026
E 23rd Avenue & N Scranton Street (Aurora)	Bioscience 5		1.22		230,000		—		190,000	2026
E 23rd Avenue & Uvalda (Aurora)	Fitzsimons 3		1.11		400,000		225		—	2027
E 23rd Avenue & N Scranton Street (Aurora)	Bioscience 6		2.04		385,000		—		315,000	2028
Total Future Pipeline			38.52		13,260,000		5,972		1,693,500

[1] Project metrics are estimated and could deviate substantially from what is currently planned.

[2] Acreage for the Bioscience project is presented proportionate based on the buildable gross square feet.

[3] Owned in a joint venture structure.

First Quarter 2024 Earnings Release and Supplemental Schedules | 17

 

Supplemental Schedule 6

Stabilized Operating Results

(amounts in thousands, except community, home and per home data) (unaudited)

1Q 2024 v. 1Q 2023					Revenues, Before Utility  Reimbursements							Expenses, Net of Utility  Reimbursements [1]							Net Operating Income							Net Operating Income Margin	Average Daily Occupancy During Period		Average Revenue per Aimco Apartment Home
	Apartment Communities		Apartment Homes		1Q 2024		1Q 2023		Growth			1Q 2024		1Q 2023		Growth			1Q 2024		1Q 2023		Growth			1Q 2024	1Q 2024	1Q 2023	1Q 2024		1Q 2023
Boston		5		2,719	$	16,888	$	15,907		6.2	%	$	4,549	$	4,540		0.2	%	$	12,339	$	11,367		8.6	%	73.1%	98.2%	97.9%	$	2,109	$	1,991
Chicago		7		1,495		10,255		9,687		5.9	%		2,952		3,148		(6.2	%)		7,303		6,539		11.7	%	71.2%	98.1%	98.1%		2,332		2,201
New York City		3		150		2,091		1,990		5.1	%		967		978		(1.1	%)		1,124		1,012		11.1	%	53.8%	98.8%	99.5%		4,704		4,444
SE Florida		2		729		6,329		5,983		5.8	%		2,009		1,592		26.2	%		4,320		4,391		(1.6	%)	68.3%	98.0%	98.2%		2,953		2,787
Other Markets [2]		4		507		3,076		3,105		(0.9	%)		1,026		928		10.6	%		2,050		2,177		(5.8	%)	66.6%	96.0%	97.3%		2,107		2,098
Total		21		5,600	$	38,639	$	36,672		5.4	%	$	11,503	$	11,186		2.8	%	$	27,136	$	25,486		6.5	%	70.2%	97.9%	98.0%	$	2,348	$	2,227

1Q 2024 v. 4Q 2023					Revenues, Before Utility  Reimbursements							Expenses, Net of Utility  Reimbursements							Net Operating Income							Net Operating Income Margin	Average Daily Occupancy During Period		Average Revenue per Aimco Apartment Home
	Apartment Communities		Apartment Homes		1Q 2024		4Q 2023		Growth			1Q 2024		4Q 2023		Growth			1Q 2024		4Q 2023		Growth			1Q 2024	1Q 2024	4Q 2023	1Q 2024		4Q 2023
Boston		5		2,719	$	16,888	$	16,742		0.9	%	$	4,549	$	4,347		4.6	%	$	12,339	$	12,395		(0.5	%)	73.1%	98.2%	97.2%	$	2,109	$	2,111
Chicago		7		1,495		10,255		10,241		0.1	%		2,952		2,644		11.6	%		7,303		7,597		(3.9	%)	71.2%	98.1%	98.7%		2,332		2,314
New York City		3		150		2,091		2,103		(0.6	%)		967		1,004		(3.7	%)		1,124		1,099		2.3	%	53.8%	98.8%	98.1%		4,704		4,764
SE Florida		2		729		6,329		6,159		2.8	%		2,009		1,774		13.2	%		4,320		4,385		(1.5	%)	68.3%	98.0%	97.5%		2,953		2,888
Other Markets [2]		4		507		3,076		3,118		(1.3	%)		1,026		857		19.7	%		2,050		2,261		(9.3	%)	66.6%	96.0%	94.9%		2,107		2,160
Total		21		5,600	$	38,639	$	38,363		0.7	%	$	11,503	$	10,626		8.3	%	$	27,136	$	27,737		(2.2	%)	70.2%	97.9%	97.5%	$	2,348	$	2,343

[1] Expenses, Net of Utility Reimbursements were elevated in Southeast Florida for the first quarter due primarily to higher real estate taxes and insurance.

[2] Other Markets includes markets where Aimco owns a single Stabilized Operating Property: Denver, Colorado; Nashville, Tennessee; Atlanta, Georgia; and San Francisco, California.

First Quarter 2024 Earnings Release and Supplemental Schedules | 18

 

Supplemental Schedule 7

Aimco Transactions

(dollars in millions) (unaudited)

In February 2024, Aimco sold a majority of its partnership interest in St. George Villas, a small, 40-unit, income-restricted property in South Carolina. Aimco's remaining 1% is under contract for disposition in the first quarter 2025.

First Quarter 2024 Earnings Release and Supplemental Schedules | 19

 

Supplemental Schedule 8

Net Asset Value Components

(dollars in millions)(pre-tax)(unaudited)

Net Assets	1Q 2024
Annualized NOI for Stabilized Operating Properties [1]	$	108.5
Annualized NOI for other consolidated real estate [1][2]		19.9
Annualized NOI for unconsolidated real estate at AIV share [1]		2.4
Projected Annual NOI for Development Projects upon stabilization [1][3]		44.1
Land, Planning and Entitlement Investment at cost [4]		154.0
IQHQ and Real Estate Tech Fund Investments [5]		64.9
Cash and cash equivalents		121.8
Restricted cash		18.6
Notes receivable		58.2
Fair value adjustment on fixed rate property debt & preferred equity		66.4
Net Liabilities [6]
Non-recourse property debt, net [7]	$	852.3
Non-recourse construction loans, net [7]		342.8
Preferred equity interests		173.2
Investment remaining to complete active developments and redevelopments [3]		51.0
Amounts drawn on Aimco's revolving secured credit facility		-
Other liabilities, net		187.7
Common Stock, Partnership Units and Equivalents (in millions)
Total shares, units and dilutive share equivalents		152.9
Noncontrolling interests in real estate [8]

[1] Property NOI is presented at Aimco share and does not include property management fees of 3% of revenue.

[2] Other consolidated real estate includes 1001 Brickell Bay Drive, Aimco's class A office building located in the Brickell neighborhood of Miami, Florida, and The Hamilton, a 276-unit recently completed redevelopment that reached stabilized occupancy in the third quarter 2023.

[3] See Supplemental Schedule 5 for additional details.

[4] Includes acquisition price for land purchased and held for future development or redevelopment. Not included in Aimco's land inventory is:

•The value for any entitlements secured, or accretive planning investment, since acquisition. Aimco estimates this value to be at least $40 million; and

•The Brickell Assemblage, which is currently improved with two operating assets included in the annualized NOI amounts above. Based on recent comparable sales, Aimco estimates the current value of the 4.25-acre waterfront assemblage to be $125 - $175 million higher than the value of the real estate based on a capitalization of current NOI calculation.

[5] Investment value for IQHQ is based on the 2022 recapitalization value and the Real Estate Tech Funds are based on 1Q 2024 GAAP fair value.

[6] Not included above is the tax liability that may be recognized on the disposition of certain assets, primarily Aimco’s 1001 Brickell Bay Drive office building, held by Aimco’s Taxable REIT Subsidiaries. Aimco’s balance sheet includes a $108.5 million deferred tax liability and a $3.7 million deferred tax asset representing the difference of the tax basis versus the carrying value for GAAP at the effective tax rates. The tax liability at disposition is most likely lower.

[7] Amounts presented exclude deferred financing costs.

[8] Amounts presented at 100% ownership exclusive of noncontrolling interests. Aimco estimates this value to be $40 - $50 million.

First Quarter 2024 Earnings Release and Supplemental Schedules | 20

 

Glossary and Reconciliations of Non-GAAP Financial and Operating Measures

This Earnings Release and Supplemental Information include certain financial and operating measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. Aimco’s definitions and calculations of these Non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These Non-GAAP financial and operating measures should not be considered an alternative to GAAP net income or any other GAAP measurement of performance and should not be considered an alternative measure of liquidity.

AIMCO OPERATING PARTNERSHIP or AIMCO OP: AIMCO OP, L.P., a Delaware limited partnership, is the operating partnership in Aimco’s UPREIT structure. Aimco owns approximately 92.4% of the legal interest in the common partnership units of the Aimco OP and 94.8% of the economic interest in the common partnership units of the Aimco OP.

AVERAGE REVENUE PER APARTMENT HOME: Represents Aimco average monthly rental and other property revenues, excluding utility cost reimbursements, divided by the number of occupied apartment homes as of the end of the period.

DIRECT CAPITAL INVESTMENT: Represents all items related to the planning, construction, and management of development and redevelopment projects paid to third party providers. Direct Capital Investment does not include real estate taxes, insurance, right of use lease payments, and certain costs capitalized in accordance with GAAP, such as financing costs and internal team time.

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION FOR REAL ESTATE (“EBITDAre”): Nareit defines EBITDAre as net income computed in accordance with GAAP, before interest expense, income taxes, depreciation and amortization expense, further adjusted for:

• gains and losses on the dispositions of depreciated property;

• impairment write-downs of depreciated property;

• impairment write-downs of investments in unconsolidated partnerships caused by a decrease in the value of the depreciated property in such partnerships; and

• adjustments to reflect the Aimco share of EBITDAre of investments in unconsolidated entities.

Aimco believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of Aimco’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry and facilitates comparison of credit strength between Aimco and other companies. Aimco presents EBITDAre on Supplemental Schedule 1 of this release.

First Quarter 2024 Earnings Release and Supplemental Schedules | 21

 

ADJUSTED EBITDAre: Adjusted EBITDAre is defined by Aimco, and presented on Supplemental Schedule 1 of this release, as EBITDAre adjusted to exclude the effect of the following items for the reasons set forth below:

• net income attributable to noncontrolling interests in consolidated real estate partnerships and EBITDAre adjustments attributable to noncontrolling interests;

• the amount of realized and unrealized gains or losses recognized by Aimco on its interest rate options, to allow investors to compare a measure of Aimco’s earnings before the effects of Aimco’s capital structure and indebtedness with that of other companies in the real estate industry; and

• the amount of non-cash investment income or loss recognized by Aimco related to the mezzanine loan made by Aimco to a partnership owning Parkmerced Apartments.

MEZZANINE INVESTMENTS: Aimco’s Mezzanine Investments include a mezzanine loan inherited by Aimco from its predecessor. The loan was made to a partnership owning Parkmerced Apartments, located in southwest San Francisco, California, with an initial investment of $275 million. The contractual balance of the loan, including accrued and unpaid interest, at March 31, 2024 was $418.1 million, net of non-cash impairment charges recognized in the fourth quarter 2022 and 2023, the carrying value has been reduced to $0. In June 2023, Aimco closed on the sale of a 20%, non-controlling interest in the mezzanine loan for $33.5 million plus a $4 million payment to secure an option on the remaining portion which has since expired. Separately, Aimco monetized its associated interest rate swaption for $54 million.

NET ASSET VALUE: Net Asset Value is calculated as the market value of a company's assets less its liabilities and obligations. Aimco estimates the value of its portfolio using methods management believes to be appropriate based on the characteristics of the item being valued.

NET OPERATING INCOME (NOI) MARGIN: Represents an apartment community’s net operating income as a percentage of the apartment community’s rental and other property revenues.

OTHER EXPENSES, NET: Other expenses, net, includes costs associated with our risk management activities, partnership administration expenses, fee income, and certain non-recurring items, as well as activity related to our Mezzanine Investment.

OTHER LIABILITIES, NET: Other liabilities, net, as presented on Supplemental Schedule 8, Net Asset Value Components, generally consists of the land lease for Aimco's Upton Place development, accrued expenses, resident security deposits, accounts payable, and other general liabilities, net of interest rate options and other assets, excluding the fair value of Aimco's investments in IQHQ and real estate technology funds.

Other liabilities, net as of March 31, 2024, as presented in Supplemental Schedule 8, Net Asset Value Components, is calculated as follows (in millions):

Accrued Liabilities and Other (per Consolidated Balance Sheet)	$	131.6
Lease liabilities - finance leases (per Consolidated Balance Sheet)		119.3
Other assets, net (per Consolidated Balance Sheet)		(123.0	)
Interest Rate Options (per Consolidated Balance Sheet)		(5.1	)
Total (per Consolidated Balance Sheet)		122.8
Reduction in assets (reported elsewhere on Schedule 8):
IQHQ and Real Estate Tech Funds		64.9
Other liabilities, net (per Schedule 8)	$	187.7

First Quarter 2024 Earnings Release and Supplemental Schedules | 22

 

PREFERRED EQUITY INTERESTS: Preferred equity interests includes the redeemable non-controlling interests, as presented on Aimco's Balance Sheet in accordance with GAAP, related to third party investment interests.

PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property management revenues, primarily from affiliates; casualties; property management expenses; depreciation; or interest expense. NOI is helpful because it helps both investors and management to understand the operating performance of real estate excluding costs associated with decisions about acquisition pricing, overhead allocations, and financing arrangements. NOI is also considered by many in the real estate industry to be a useful measure for determining the value of real estate. Reconciliations of NOI as presented in this Earnings Release and Supplemental Information to Aimco’s consolidated GAAP amounts are provided below.

Due to the diversity of its economic ownership interests in its apartment communities in the periods presented, Aimco evaluates the performance of the apartment communities in its segments using Property NOI, which represents the NOI for the apartment communities that Aimco consolidates and excludes apartment communities that it does not consolidate. Property NOI is defined as rental and other property revenue less property operating expenses. In its evaluation of community results, Aimco excludes utility cost reimbursement from rental and other property revenues and reflects such amount as a reduction of the related utility expense within property operating expenses. The following table presents the reconciliation of GAAP rental and other property revenue to the revenues before utility reimbursements and GAAP property operating expenses to expenses, net of utility reimbursements as presented on Supplemental Schedule 6.

Segment NOI Reconciliation	Three Months Ended (in thousands)
	March 31, 2024						March 31, 2023
Total Real Estate Operations	Revenues, Before Utility Reimbursements [1]			Expenses, Net of Utility Reimbursements			Revenues, Before Utility Reimbursements [1]			Expenses, Net of Utility Reimbursements
Total (per consolidated statements of operations)	$	50,203		$	21,199		$	44,268		$	17,504
Adjustment: Stabilized Operating utilities reimbursement		(1,865	)		(1,865	)		(1,617	)		(1,617	)
Adjustment: Other Real Estate		(4,764	)		(2,983	)		(3,671	)		(1,529	)
Adjustment: Non-stabilized and other amounts not allocated [2]		(4,935	)		(4,848	)		(2,308	)		(3,172	)
Total Stabilized Operating (per Schedule 6)	$	38,639		$	11,503		$	36,672		$	11,186

[1] Approximately two-thirds of Aimco’s utility costs are reimbursed by residents. These reimbursements are included in rental and other property revenues on Aimco’s consolidated statements of operations prepared in accordance with GAAP. This adjustment represents the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results and as presented on Supplemental Schedule 6. Aimco also excludes the reimbursement amounts from the calculation of Average Revenue per Apartment Home throughout this Earnings Release and Supplemental Schedules.

[2] Properties not included in the Stabilized Operating Portfolio and other amounts not allocated includes operating results of properties not presented in the Stabilized Operation Portfolio as presented on Supplemental Schedule 6 during the periods shown, as well as property management and casualty expense, which are not included in property operating expenses, net of utility reimbursements in the Supplemental Schedule 6 presentation.

REAL ESTATE CLASSIFICATIONS:Aimco’s real estate portfolio is diversified by price point, geography, and opportunity. Aimco’s consolidated portfolio is classified into the following groups:

DEVELOPMENT and REDEVELOPMENT - OWNED: Includes apartment communities currently under construction or in pre-construction that have not achieved a stabilized level of operations and communities that have been completed in recent years that had not achieved and maintained stabilized operations for both the current and the comparable prior periods.

First Quarter 2024 Earnings Release and Supplemental Schedules | 23

 

DEVELOPMENT and REDEVELOPMENT - LAND: Includes land parcels being held for potential future construction of real estate.

DEVELOPMENT and REDEVELOPMENT - LEASED: Includes communities leased from a third party currently under construction or in pre-construction that have not achieved a stabilized level of operations and communities that have been completed in recent years that had not achieved and maintained stabilized operations for both the current and the comparable prior periods.

STABILIZED OPERATING PROPERTIES: Apartment communities that (a) are owned and asset managed by Aimco, (b) had reached a stabilized level of operations as of January 1, 2023 and maintained it throughout the current and the comparable prior periods, and (c) are not expected to be sold within 12 months.

OTHER REAL ESTATE: Includes Aimco’s commercial office building that it owns as part of an assemblage with an adjacent apartment building and a boutique hotel and event center.

ASSETS HELD FOR SALE: Includes those assets, if any, that as of the last day of the quarter being reported, were under contract, with non-refundable deposits.

First Quarter 2024 Earnings Release and Supplemental Schedules | 24

XML

Document and Entity Information	May 08, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 08, 2024
Entity Registrant Name	APARTMENT INVESTMENT AND MANAGEMENT CO
Entity Central Index Key	0000922864
Entity Emerging Growth Company	false
Entity File Number	1-13232
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	84-1259577
Entity Address, Address Line One	4582 SOUTH ULSTER STREET
Entity Address, Address Line Two	SUITE 1450
Entity Address, City or Town	DENVER
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80237
City Area Code	303
Local Phone Number	224-7900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock
Trading Symbol	AIV
Security Exchange Name	NYSE
AIMCO OP L.P. [Member]
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 08, 2024
Entity Registrant Name	AIMCO OP L.P.
Entity Central Index Key	0001820878
Entity Emerging Growth Company	false
Entity File Number	0-56223
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-2460835
Entity Address, Address Line One	4582 SOUTH ULSTER STREET
Entity Address, Address Line Two	SUITE 1450
Entity Address, City or Town	DENVER
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80237
City Area Code	303
Local Phone Number	224-7900