Significant Transactions

9 Months Ended

Sep. 30, 2022

Note 3 — Significant Transactions

Apartment Community Acquisitions

During the nine months ended September 30, 2022, we acquired three apartment communities in South Florida and one in the Washington, D.C. area. Summarized information regarding these acquisitions is set forth in the table below (dollars in thousands):


	Three Months Ended September 30, 2022			Nine Months Ended September 30, 2022
Number of apartment communities		1			4
Number of apartment homes		350			1,351

Purchase price	$	173,000		$	640,067
Capitalized transaction costs		1,551			7,325
Total consideration	$	174,551		$	647,392
Land	$	14,480		$	54,918
Building and improvements		156,980			577,712
Right-of-use lease asset		—			80,651
Intangible assets (1)		3,465			17,203
Lease liability		—			(80,651	)
Below-market lease liabilities (1)		(103	)		(613	)
Real estate tax liability assumed		(271	)		(1,828	)
Total consideration	$	174,551		$	647,392

(1)

Intangible assets and below-market lease liabilities have a weighted-average term of 2.2 years and 1.4 years, respectively.

Apartment Community Dispositions

During the three months ended September 30, 2022, we did not sell any apartment communities. During the nine months ended September 30, 2022, we sold 12 apartment communities with 2,050 homes for gross proceeds of $781.1 million.

From time to time we may be marketing for sale certain communities that are inconsistent with our long-term investment strategy. At the end of each reporting period we evaluate whether such communities meet the criteria to be classified as held for sale. As of September 30, 2022, we had six apartment communities with 1,314 apartment homes that were classified as held for sale.

Lease Cancellation

On September 1, 2022, we canceled existing master leases at four properties owned by AIR and previously leased to Apartment Investment and Management Company (“Aimco”) for the purpose of their development. As part of the cancellation, AIR paid $200 million to Aimco for the improvements added during the development period in accordance with the lease agreement. As AIR accounted for these leases as sales-type leases, we held a $466 million leased real estate asset on the consolidated balance sheet as of August 31, 2022. The total consideration of the added improvement value payment, leased real estate asset, and related costs were allocated to the underlying assets returned to AIR based on the following allocation (dollars in thousands):


Number of apartment communities		4
Number of apartment homes		865

Land	$	133,471
Building and improvements		520,448
Intangible assets (1)		13,470
Below-market lease liabilities (1)		(866	)
Total consideration (2)	$	666,523

(1)

Intangible assets and below-market lease liabilities have a weighted-average term of less than a year.

(2)

Includes the leased real estate asset as of the cancellation date and the added improvement value payment.

Capital Allocation – Share Repurchases

During the three months ended September 30, 2022, AIR repurchased 1.2 million shares for $47 million, at an average price of $39.07 per share. Subsequent to quarter end and through November 2, 2022 we have purchased an additional 3.1 million shares for $115 million. In aggregate, we have repurchased 7.2 million shares during 2022 at an average price of $39.96. We are authorized by the AIR Board of Directors to repurchase an additional $213 million of shares. We consider share buybacks as part of a balanced investment program.