AIR Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

AIR Equity

Note 7 — AIR Equity

Common Stock

During the years ended December 31, 2022, 2021, and 2020, we declared regular, recurring cash dividends per common share of $1.80, $1.74, and $1.64, respectively. During the year ended December 31, 2020, we declared an $8.20 special dividend, which also included the regular fourth quarter 2020 dividend and the acceleration of Aimco’s first quarter 2021 dividend.

Share Repurchases

During the year ended December 31, 2022, we repurchased 8.0 million shares of Common Stock for $316.7 million, at an average price of $39.49. We are authorized by the AIR Board of Directors to purchase an additional $183.3 million of shares. We consider share buybacks as part of a balanced investment program.

Equity Issuance

On April 23, 2021, we issued and sold 7.825 million shares of our Class A Common Stock for $43.766 per share in a private placement to a large global real estate-focused investment firm and received cash proceeds of $342.2 million, net of fees. Proceeds raised were used to repay $318.4 million of property debt with a weighted-average interest rate of 4.6%.

Separation from Aimco

On December 15, 2020, we completed the Separation, which was effected through a pro rata distribution, in which stockholders received one share of AIR Common Stock for every one share of Aimco common stock held as of the close of business on December 5, 2020.

2020 Special Stock Dividend and Reverse Stock Split

Property sales in 2020, including the California joint venture, generated taxable gains in excess of our regular quarterly dividend. On October 21, 2020, Aimco’s Board of Directors declared a special dividend and reverse stock split on its Common Stock in which every 1.23821 common share was combined into one common share, effective on the close of business on November 30, 2020. The special dividend consisted of $121.8 million in cash and 35.4 million shares of Aimco’s Common Stock. The special dividend was paid on November 30, 2020 to stockholders of record as of November 4, 2020. The special dividend amount of $8.20 per share included the regular quarterly cash dividend for the fourth quarter of 2020 and accelerated into 2020 what would have been Aimco’s first regular quarterly cash dividend for 2021.

As a result of the 2020 reverse stock split, the total number of shares outstanding after the stock dividend and reverse split was unchanged from the number of shares outstanding immediately prior to the two actions.

Preferred Stock

As of December 31, 2022 and 2021, we had a single class of perpetual Preferred Stock outstanding, our Class A Preferred Stock, with twenty shares issued and outstanding and a balance of $2.0 million.

Our Class A Preferred Stock has a $0.01 per share par value, is senior to our Common Stock, has a liquidation preference per share of $100,000, and is redeemable at our option on or after December 15, 2025. The holders of our Class A Preferred Stock are generally not entitled to vote on matters submitted to stockholders. Dividends in an amount per share equal to 8.5% per annum are subject to declaration by our Board of Directors.