Investment in Unconsolidated Real Estate Partnerships

9 Months Ended

Sep. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Real Estate Partnerships

Investment in Unconsolidated Real Estate Partnerships

Unconsolidated Joint Ventures

As of September 30, 2025, we have equity investments in three significant unconsolidated joint ventures: the joint venture with an affiliate of Blackstone Inc. (“Virginia JV”), the joint venture with a global asset manager (“Value-Add JV”), and the joint venture with a global institutional investor (“Core JV”) (collectively, the “Joint Ventures”). We account for these Joint Ventures using the equity method of accounting and our ownership interests meet the definition of a VIE. However, we are not the primary beneficiary and do not consolidate these entities.

	Virginia JV	Value-Add JV (1)	Core JV
Initial formation date	October 2021	June 2023	July 2023
AIR ownership	20%	30%	53%
Outside entities' ownership	80%	70%	47%
Number of apartment communities	3	1	12
Apartment homes	1,748	444	3,909

(1)Our partner holds a 70% legal ownership in the Value-Add JV, however, we are entitled to 50% of the net cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture.

The carrying value of our investment in each Joint Venture is included in investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets. Our exposure to the obligations of the Joint Ventures is limited to the carrying value of the limited partnership interests and our interest of the joint ventures' guarantor non-recourse liabilities. The following tables summarize certain relevant information with respect to our investments in unconsolidated real estate partnerships (in thousands):

	September 30, 2025
	Virginia JV		Value-Add JV		Core JV
Third-party debt	$	395,000	$	88,219	$	890,970
AIR Operating Partnership's investment in balance (1)	$	9,949	$	29,033	$	268,201

	December 31, 2024
	Virginia JV	Value-Add JV	Core JV
Third-party debt	$395,000	$89,282	$891,097
AIR Operating Partnership's investment in balance (1)	$13,501	$30,039	$276,588

(1)Our investment in balance includes certain basis differences that are subject to amortization. Our investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets also includes $21.2 million related to two immaterial unconsolidated investments as of September 30, 2025 and December 31, 2024, respectively.

We recognize earnings or losses from our investments in unconsolidated real estate partnerships consisting of our proportionate share of the net earnings or losses of the Joint Ventures. In addition, we earn various fees for providing property management, construction, and corporate services to the Joint Ventures, presented within other revenues in our condensed consolidated statements of operations. The table below presents loss from unconsolidated real estate partnerships within our condensed consolidated statements of operations (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Virginia JV	$	(971)	$	(2,425)	$	(2,382)	$	(2,992)
Value-Add JV	(680)		(163)		(1,464)		(552)
Core JV	(2,805)		(2,750)		(7,141)		(10,844)
Total	$	(4,456)	$	(5,338)	$	(10,987)	$	(14,388)