Business Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segments

Note 15 — Business Segments

We have two segments: Same Store and Other Real Estate. Our Same Store segment includes communities that are owned and managed by AIR and had reached a stabilized level of operations. Our Other Real Estate segment includes five properties acquired in 2021, four properties acquired in 2022, four properties previously leased to Aimco, and three communities that do not meet the criteria to be classified as Same Store. Communities included in discontinued operations are excluded from our

evaluation of segment performance, as they are no longer included in information used by our chief operating decision maker (“CODM”).

Our CODM uses proportionate property net operating income (“NOI”) to assess the operating performance of our communities. Proportionate property NOI reflects our share of rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, net of utility reimbursements. In our consolidated statements of operations, utility reimbursements are included in rental and other property revenues in accordance with GAAP.

As of December 31, 2022, our Same Store segment included 58 apartment communities with 20,742 apartment homes, our Other Real Estate segment included 16 apartment communities with 4,559 apartment homes. As of December 31, 2022, no communities were classified as held for sale.

The following tables present the total revenues, property operating expenses, proportionate property net operating income (loss), and income (loss) from continuing operations before income tax (expense) benefit of our segments on a proportionate basis, excluding amounts related to communities sold or communities included in discontinued operations. To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of December 31, 2022 (in thousands):

	Same Store		Other Real Estate		Proportionate and Other Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)			Consolidated
Year ended December 31, 2022:
Total revenues	$	544,199	$	100,803	$	81,204	$	47,517		$	773,723
Property operating expenses		139,418		35,863		40,555		45,428			261,264
Other operating expenses not allocated to segments (3)		—		—		—		384,957			384,957
Total operating expenses		139,418		35,863		40,555		430,385			646,221
Proportionate property net operating income (loss)		404,781		64,940		40,649		(382,868	)		127,502
Other items included in income before income tax expense (4)		—		—		—		846,471			846,471
Income from continuing operations before income tax expense	$	404,781	$	64,940	$	40,649	$	463,603		$	973,973

	Same Store		Other Real Estate		Proportionate and Other Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)			Consolidated
Year ended December 31, 2021:
Total revenues	$	516,980	$	22,852	$	78,938	$	122,083		$	740,853
Property operating expenses		143,130		10,697		39,768		74,506			268,101
Other operating expenses not allocated to segments (3)		—		—		—		365,547			365,547
Total operating expenses		143,130		10,697		39,768		440,053			633,648
Proportionate property net operating income (loss)		373,850		12,155		39,170		(317,970	)		107,205
Other items included in income before income tax benefit (4)		—		—		—		366,773			366,773
Income from continuing operations before income tax benefit	$	373,850	$	12,155	$	39,170	$	48,803		$	473,978

	Same Store		Other Real Estate			Proportionate and Other Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)			Consolidated
Year ended December 31, 2020:
Total revenues	$	551,325	$	7,592		$	40,929	$	119,710		$	719,556
Property operating expenses		151,350		7,610			28,115		61,961			249,036
Other operating expenses not allocated to segments (3)		—		—			—		488,461			488,461
Total operating expenses		151,350		7,610			28,115		550,422			737,497
Proportionate property net operating income (loss)		399,975		(18	)		12,814		(430,712	)		(17,941	)
Other items included in income (loss) before income tax expense (4)		—		—			—		(1,194	)		(1,194	)
Income (loss) from continuing operations before income tax expense	$	399,975	$	(18	)	$	12,814	$	(431,906	)	$	(19,135	)

(1)Represents adjustments to: (i) include AIR’s proportionate share of the results of unconsolidated apartment communities, which is excluded in the related consolidated amounts, and (ii) exclude the noncontrolling interests in consolidated real estate partnerships’ proportionate share of the results of communities in our segments, which is included in the related consolidated amounts. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our consolidated statements of operations

prepared in accordance with GAAP. Effective in 2022, corporate and amounts not allocated to segments includes the depreciation of capitalized costs of non-real estate assets.

(2)Includes the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any. Also includes property management revenues, which are not part of our segment performance measure and property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure. The write-off of straight-line rent receivables, recognized due to the impact of COVID-19 and the resulting economic impact on our commercial tenants, are included in consolidated rental and property revenues and are not included in our measurement of segment performance for the year ended December 31, 2020.

(3)Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include provision for real estate impairment loss and write-offs of deferred leasing commissions, which are not included in our measure of segment performance.

(4)Includes gain on dispositions of real estate and derecognition of leased properties, interest income, interest expense, loss from unconsolidated real estate partnerships, and loss on extinguishment of debt.

The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands):

	December 31, 2022		December 31, 2021
Same Store	$	3,867,412	$	3,824,277
Other Real Estate		2,031,506		787,534
Corporate and other assets (1)		652,965		1,828,549
Total consolidated assets	$	6,551,883	$	6,440,360

(1)Includes the assets not allocated to our segments including: (i) corporate assets; (ii) the mezzanine loan investment where the rights and obligations of ownership have been assigned to Aimco; and (iii) properties sold or classified as held for sale. Corporate and other assets as of December 31, 2021, also includes the note receivable from Aimco, which was repaid in 2022, and the lease receivable related to properties leased to Aimco, which was canceled during the third quarter of 2022.

Capital additions related to our segments were as follows (in thousands):

	2022		2021		2020
Same Store	$	145,290	$	119,231	$	94,824
Other Real Estate		44,056		17,314		195,698
Total capital additions	$	189,346	$	136,545	$	290,522