AIV Apartment Investment and Management Company

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): February 24, 2025

 

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. ☐

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ITEM 2.02. Results of Operations and Financial Conditions.

 

On February 24, 2025 Apartment Investment and Management Company and Aimco OP L.P. (the “Company”) issued a press release announcing results for the period ended December 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 February 24, 2025
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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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: February 24, 2025
		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

 

 

 

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Table of Contents

 

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

 

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February 24, 2025

Dear fellow and prospective stockholders,

I am pleased to report on Aimco’s 2024 results and outline our plans and goals for the year ahead.

During 2024, Aimco delivered strong operational results across our apartment portfolio, remained disciplined in the allocation of capital and made significant progress toward our broader strategic goals by executing and advancing key transactions.

Aimco's Stabilized Operating portfolio continued to benefit from its geographic composition, consisting of primarily established suburban submarkets, which experienced limited competitive new supply and steady renter demand. The portfolio produced $99 million of net operating income ("NOI") in 2024, an increase of 4.5% over 2023, with revenues increasing 4.5% and expenses up 4.4%. During the fourth quarter, average daily occupancy increased to 97.9%, revenue per home was up 2.9% year-over-year, and rents were up 3.6% on all transacted leases.

Our regional development teams continued to add value as construction was completed on three multifamily assets, including 933 residential units and more than 100K sf of commercial space. Total direct costs for these projects are now expected to be approximately $10 million lower than our original projection. In addition, nearly 400 newly delivered homes were leased at rental rates that put these projects on track to deliver an average yield on cost of approximately 7% when fully stabilized. During the fourth quarter, Aimco increased its ownership in its Upton Place property as our development partner exercised the option to sell their 10% interest in the asset.

As announced in September 2024, we commenced construction on one new development project located in Miami’s Edgewater neighborhood. Financing for the $240 million waterfront project is fully committed with Aimco having contributed the land and an incremental $5 million of equity to a newly formed, project-level, venture. At year end 2024, Aimco’s exposure to active construction was reduced by $340 million, or nearly 60%, as compared to year end 2023.

Aimco made significant progress in our efforts to realize value through accretive dispositions during 2024. In December, Aimco sold The Hamilton, our recently completed redevelopment in Miami, and our partial ownership interest in the 3333 Biscayne Boulevard development site for a combined $204 million. These transactions generated approximately $90 million of net proceeds, after retiring the associated asset level debt. Also, during the fourth quarter, we entered into a binding agreement to sell the Aimco properties located at 1001 & 1111 Brickell Bay Drive (together known as the “Brickell Assemblage”) for $520 million.

The Aimco balance sheet remains solid, with no maturities prior to June 2027 (after consideration for contractual extension options and announced transactions) and with our assumable, fixed-rate property loans having an average duration of 6.8 years at favorable interest rates. During 2024, we retired $110 million of property debt associated with the asset sales described above and, during the fourth quarter, refinanced our Upton Place asset with a new $215 million bridge loan. The new loan carries a 6.39% fixed interest rate, approximately 280 bps lower than the weighted average cost of the construction loan and preferred equity which it replaced.

In keeping with our previously stated capital allocation priorities, we directed nearly $40 million of capital to the repurchase of 4.9 million Aimco shares, representing an average price per share of $8.01, during 2024. Further, Aimco returned the net proceeds from the 2024 asset sales, approximately $90 million, to stockholders in the form of a special dividend during the first quarter of 2025.

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Last year’s good results were the product of a high-performing and dedicated team, committed to adding value across all aspects of our business and who are eager to ‘do it again’ in 2025.

As we look to the year ahead, the fundamentals of the apartment business, and the Aimco portfolio in particular, are expected to remain strong as renter demand continues to exceed supply. Real estate capital markets are fully functioning, with credit spreads having narrowed over the past year and U.S. multifamily housing remaining a favored investment class for many institutional investors.

At Aimco we plan to drive continued growth from our Stabilized Operating portfolio which consists of more than 5,200 apartment homes, predominantly located in the Northeast and Midwest markets. These properties are projected to realize revenue growth of 3%, at the mid-point of our guidance range for 2025. We expect expenses to be up 5.5% at the mid-point of our guidance range, primarily driven by non-annual real estate tax reassessments. This results in projected full year NOI growth of between 1% to 3%.

Within our development business we expect to complete the lease-up of three multifamily projects. These projects are on track to stabilize occupancy by year end 2025 and NOI approximately one year later. We will advance construction at our one active development project, 34th Street in Miami, Florida, with those efforts funded entirely through draws from its committed construction loan and preferred equity partner. We will selectively invest in our existing development pipeline, by advancing plans for future projects, but do not anticipate any new construction starts during 2025.

We expect to close on the sale of the Brickell Assemblage during the year and estimate the transaction to deliver approximately $300 million of net proceeds, after retiring associated property-level debt and accounting for tax liabilities. Upon receipt, we intend to return the majority of the net proceeds to stockholders.

Finally, and as announced earlier this year, Aimco’s executive management and Board of Directors has decided to explore additional strategic alternatives in an effort to further unlock and maximize stockholder value. While the strategic process unfolds, the Aimco team remains committed to delivering strong operational results, creating value through select development investment, prudent capital allocation, efficient cost management, and fostering a culture of integrity, respect, and collaboration.

Take care, and thank you for your interest in Aimco!

 

 

Wes Powell

President and Chief Executive Officer

 

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Aimco Reports Fourth Quarter and Full Year 2024 Results and

Establishes 2025 Guidance

 

Denver, Colorado, February 24, 2025 – Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today fourth quarter and full year 2024 results and established 2025 guidance.

 

Financial Results

 

Highlights

 

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.

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

	Fourth Quarter							FULL YEAR
Stabilized Operating Properties	Year-over-Year				Sequential			Year-over-Year
($ in millions)	2024	2023	Variance		3Q 2024	Variance		2024	2023	Variance
Average Daily Occupancy	97.9%	97.4%	0.5%		96.8%	1.1%		97.2%	96.6%	0.6%
Revenue, before utility reimbursements	$35.5	$34.3	3.5%		$35.2	0.9%		$140.1	$134.1	4.5%
Expenses, net of utility reimbursements	9.6	9.5	0.8%		10.5	(8.8)%		41.1	39.4	4.4%
Net operating income (NOI)	25.9	24.8	4.5%		24.7	5.1%		99.0	94.7	4.5%

 

 

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.

As of December 31, 2024, Aimco had one multifamily development project under construction and three multifamily communities that have been substantially completed and are now in lease-up. In addition to Aimco's core multifamily developments, The Benson Hotel and Faculty Club was completed in 2023 and remains in the stabilization process.

Aimco also has a pipeline of future value add opportunities in Southeast Florida, the Washington D.C. Metro, and Colorado's Front Range.

During the fourth quarter, $23.9 million of capital was invested in Aimco's development and redevelopment activities, primarily funded through construction loan draws. Updates on active development projects and Aimco's pipeline include:

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Investment & Disposition Activity

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

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Balance Sheet and Financing Activity

Aimco is highly focused on maintaining a strong balance sheet, including ample liquidity. As of December 31, 2024, Aimco had access to $321.0 million, including $141.1 million of cash on hand, $31.4 million of restricted cash, and the capacity to borrow up to $148.5 million on its 150.0 million revolving credit facility.

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

		as of December 31, 2024
Aimco Share, $ in thousands		Amount				Weighted Avg. Maturity (Yrs.) [1]
Total non-recourse fixed rate debt		$	693,993				6.8
Total non-recourse construction loan debt			385,959				2.6
Total property debt secured by assets held for sale			159,769				1.1
Cash and restricted cash			(172,057	)
Net Leverage		$	1,067,664

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

 

 

As of December 31, 2024, 100% of Aimco's total debt was either fixed rate or hedged with interest rate cap protection. Considering investments under contract to sell and including contractual extensions, Aimco has no debt maturing prior to June 2027.

 

 

Public Market Equity

Common Stock Repurchases

Dividend

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2025 Outlook

 

	2024			2025
$ in millions (except per share amounts) Forecast is full year unless otherwise noted	Results			Forecast
Net income (loss) per share – diluted [1]		$(0.75)		$1.50 - $1.60
Operating Properties
Revenue Growth, before utility reimbursements		4.5%		2.5% - 3.5%
Operating Expense Growth, net of utility reimbursements		4.4%		5.0% - 6.0%
Net Operating Income Growth		4.5%		1.0% - 3.0%
Recurring Capital Expenditures		$14		$11 - $13
Developments and Redevelopments
Total Direct Costs of Projects in Occupancy Stabilization at Period End [2]		$638		$68
Total Direct Costs of Projects Under Construction at Period End [2]		$240		$240
Direct Project Costs on Active Developments [3]		$94		$50 - $60
Direct Planning Costs [4]		$4		$7 - $10
Real Estate Transactions
Acquisitions		None		None
Dispositions [5]		$204		$520 - $540
General and Administrative		$33		$33 - $34
Leverage
Interest Expense, net of capitalization [6]		$57		$63 - $65

[1] Net income (loss) per share - diluted includes estimated gains from the announced transactions which are under contract.

[2] Includes land or leasehold value.

[3] Aimco's planned costs on active developments is primarily related to its 34th Street development project and will be funded through committed construction loan and preferred equity draws. Aimco funded its equity commitment to the joint venture through the contribution of land plus an incremental $5 million in 3Q 2024.

[4] Includes direct costs related to advancing planning efforts for certain pipeline projects.

[5] Includes the Brickell Assemblage which is under contract to sell in 2025.

[6] 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.

 

 

Operating Properties

Aimco's Stabilized Operating Portfolio includes properties with rents, on average, in line with local market rents, generally considered class B apartment communities. These properties are primarily located in suburban residential areas of Boston and Chicago with other select assets in Manhattan and single assets in Southeast Florida, Denver, Nashville, Atlanta, and San Francisco.

In 2025, Aimco forecasts revenues to grow between 2.5% and 3.5%, which, at the midpoint, assumes residential occupancy is flat year-over-year, a -40 bps impact from downtime associated with the turnover of commercial space, and blended residential lease rates of +5%. Operating expenses are expected to increase between 5.0% and 6.0%, primarily due to the expected impact from tri-annual assessments for real estate taxes at certain of our properties in Illinois. The result is anticipated NOI growth between 1.0% and 3.0%.

 

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Developments and Redevelopments

In 2025, Aimco plans to stabilize occupancy at its three recently completed residential developments and continue construction activities at its 34th Street ground up development in Miami, Florida. Aimco does not anticipate any new development starts in 2025.

Aimco expects to invest, at its one active development project, between $50 and $60 million to advance construction, down from a total of $94 million in 2024 and $197 million in 2023. Aimco does not expect any substantial incremental equity investment at this project with funding for planned activity through third party debt and equity.

Aimco is prudently advancing planning efforts at its pipeline projects such that incremental time and cost add value independent of a decision to commence construction. During 2025, Aimco expects to invest between $7 and $10 million to advance planning and entitlement of certain of its potential development projects currently within the pipeline.

 

Real Estate Transactions

As previously announced, Aimco is under contract to close the sale of its Brickell Assemblage in 2025. Proceeds generated from this transaction are expected to eliminate associated liabilities with the majority of the remainder returned to stockholders.

General and Administrative

Aimco expects G&A expense, measured in accordance with GAAP, in 2025 to be $33 to $34 million, with inflationary increases offset with efficiencies gained by targeted workforce reductions implemented at the onset of 2025.

Leverage

Aimco uses leverage to capitalize its real estate portfolio and construction activities so that Aimco preserves liquidity and so that Aimco equity is invested in diverse projects and markets, mitigating concentration risk. Aimco prefers non-recourse property-level financing with fixed, or rate-capped floating interest rates. In addition, Aimco has a secured revolving credit facility providing additional liquidity.

In 2025, assuming that Aimco closes its announced disposition, Aimco expects total debt balances to be lower than ending balances for 2024 with no loans maturing in 2025. Aimco plans to fund costs related to its active development project with draws from a fully committed construction loan and its preferred equity partner. In accordance with GAAP, interest expense, net of capitalization, is expected to be $63 to $65 million, an increase from $57 million in 2024.

 

Commitment to Enhance Stockholder Value

On January 9, 2025, Aimco and its Board of Directors announced that, while pleased with the transformation and simplification of the Aimco portfolio and the objective results delivered over the past four years, shares of AIV continue to trade at a meaningful discount to Aimco's estimate of the private market value of its assets and investment platform. This disconnect has limited Aimco's ability to fund new investment opportunities and accelerate growth.

 

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Therefore, Aimco's Board of Directors has decided to explore additional alternatives in an effort to further unlock and maximize shareholder value. The exploration will expand upon Aimco's ongoing efforts such as reducing exposure to development activity and monetizing certain assets, and include, but not be limited to, exploration of a sale or merger of Aimco as a whole, potential sales of the major components of the business (in one or a series of transactions), and an acceleration of individual asset sales. The Board of Director's guiding principle will be to produce an outcome that delivers maximum value to Aimco shareholders. The strategic process is being overseen by Aimco's Investment Committee, comprised of four independent Aimco Board Members. Morgan Stanley & Co. LLC is serving as financial advisor to Aimco.

 

There can be no assurance that this expanded strategic process will result in any transaction or transactions or other strategic changes or outcomes, and the timing or outcome of any such event is similarly uncertain. Aimco 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.

 

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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 regional professionals, with a pipeline supporting new investment activity in 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, Vice President, Investor Relations and Capital Markets

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

 

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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 the timing and amount of capital expected to be returned to stockholders, 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 2025 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, 2024, 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.

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Consolidated Statements of Operations

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

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
REVENUES:
Rental and other property revenues		$	54,171			$	49,352			$	208,679			$	186,995
OPERATING EXPENSES:
Property operating expenses			23,892				19,065				90,984				73,712
Depreciation and amortization			21,236				17,728				86,359				68,834
General and administrative expenses			8,961				8,379				32,837				32,865
Total operating expenses			54,088				45,171				210,180				175,411
Interest income			2,171				2,709				9,652				9,731
Interest expense [1]			(20,835	)			(10,085	)			(70,057	)			(37,718	)
Mezzanine investment income (loss), net			(548	)			(154,801	)			(2,432	)			(155,814	)
Realized and unrealized gains (losses) on        interest rate contracts			588				(2,161	)			1,752				1,119
Realized and unrealized gains (losses) on        equity investments			(1,403	)			535				(49,504	)			700
Gains on dispositions of real estate			10,749				6,106				10,600				7,984
Other income (expense), net			(779	)			(1,779	)			(5,581	)			(7,657	)
Income (loss) before income tax benefit			(9,976	)			(155,296	)			(107,071	)			(170,071	)
Income tax benefit (expense)			2,340				1,929				11,071				12,752
Net income (loss)			(7,636	)			(153,367	)			(96,000	)			(157,319	)
Net (income) loss attributable to redeemable noncontrolling      interests in consolidated real estate partnerships			(3,141	)			(3,465	)			(13,958	)			(13,924	)
Net (income) loss attributable to noncontrolling interests      in consolidated real estate partnerships			450				(2,931	)			1,849				(3,991	)
Net (income) loss attributable to common noncontrolling      interests in Aimco Operating Partnership			508				8,263				5,641				9,038
Net income (loss) attributable to Aimco		$	(9,820	)		$	(151,500	)		$	(102,468	)		$	(166,196	)
Net income (loss) attributable to common stockholders per share – basic		$	(0.08	)		$	(1.07	)		$	(0.75	)		$	(1.16	)
Net income (loss) attributable to common stockholders per share – diluted		$	(0.08	)		$	(1.07	)		$	(0.75	)		$	(1.16	)
Weighted-average common shares outstanding – basic			136,659				141,203				138,496				143,618
Weighted-average common shares outstanding – diluted			136,659				141,203				138,496				143,618

 

[1] Interest expense increased in the three and twelve months ended December 31, 2024 from the same periods ending December 31, 2023, due primarily to increased construction loan draws and reduced capitalization as development projects are advanced and completed.

 

 

 

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Consolidated Balance Sheets

(in thousands) (unaudited)

		December 31,				December 31,
		2024				2023
Assets
Buildings and improvements		$	1,348,925			$	1,593,802
Land			398,182				620,821
Total real estate			1,747,107				2,214,623
Accumulated depreciation			(499,274	)			(580,802	)
Net real estate			1,247,833				1,633,821
Cash and cash equivalents			141,072				122,601
Restricted cash			31,367				16,666
Notes receivable			58,794				57,554
Right-of-use lease assets - finance leases			107,714				108,992
Other assets, net			94,051				149,841
Assets held for sale, net			276,079				—
Total assets		$	1,956,910			$	2,089,475
Liabilities and Equity
Non-recourse property debt, net		$	685,420			$	846,298
Non-recourse construction loans, net			385,240				301,443
Total indebtedness			1,070,660				1,147,741
Deferred tax liabilities			101,457				110,284
Lease liabilities - finance leases			121,845				118,697
Dividends payable			89,182				—
Accrued liabilities and other			100,849				121,143
Liabilities related to assets held for sale, net			160,620				—
Total liabilities			1,644,613				1,497,865
Redeemable noncontrolling interests in consolidated real estate partnerships			142,931				171,632
Equity:
Common Stock			1,364				1,406
Additional paid-in capital			425,002				464,538
Retained earnings (deficit)			(303,409	)			(116,292	)
Total Aimco equity			122,957				349,652
Noncontrolling interests in consolidated real estate partnerships			39,560				51,265
Common noncontrolling interests in Aimco Operating Partnership			6,849				19,061
Total equity			169,366				419,978
Total liabilities and equity		$	1,956,910			$	2,089,475

 

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Supplemental Schedule 1

 

EBITDAre and Adjusted EBITDAre

(in thousands) (unaudited)

 

	Three Months Ended December 31, 2024				Twelve Months Ended December 31, 2024
Net Income (loss)	$	(7,636	)		$	(96,000	)
Adjustments:
Interest expense		20,835				70,057
Income tax (benefit) expense		(2,340	)			(11,071	)
Gains on dispositions of real estate		(10,749	)			(10,600	)
Unrealized (gains) losses from investment in unconsolidated partnerships		-				2,597
Depreciation and amortization		21,236				86,359
Adjustment related to EBITDAre of unconsolidated partnerships		223				872
EBITDAre	$	21,569			$	42,214
Net (Income) loss attributable to redeemable noncontrolling Interests consolidated real estate partnerships		(3,141	)			(13,958	)
Net (Income) loss attributable to noncontrolling interests consolidated real estate partnerships		450				1,849
EBITDAre adjustments attributable to noncontrolling interests		(1,749	)			(4,254	)
Mezzanine investment (income) loss, net		548				2,432
Realized and unrealized (gains) losses on interest rate contracts		(588	)			(1,752	)
Unrealized (gains) losses on a passive equity investment		1,643				48,615
Adjusted EBITDAre	$	18,732			$	75,146

 

 

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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		$	689,885			$	4,108				—			$	693,993				6.8				4.39	%			4.39	%
Floating rate loans payable			—				—				—				—				—				—				—
Construction loan debt [1]			393,412				—				(7,453	)			385,959				2.6				7.41	%			7.28	%
Total non-recourse debt [2]		$	1,083,297			$	4,108			$	(7,453	)		$	1,079,952				5.3				5.49	%			5.44	%
Property debt secured by assets held for sale			159,769				—				—				159,769				1.1				6.05	%			5.59	%
Revolving Credit Facility			—				—				—				—
Cash and restricted cash			(172,439	)			—				382				(172,057	)
Net Leverage		$	1,070,627			$	4,108			$	(7,071	)		$	1,067,664

 

Aimco Share Non-Recourse Debt

																		Average Rate on Maturing Debt
		Amortization				Maturities [3]				Total				Maturities as a Percent of Total				Stated				Capped
2025 1Q			485				—				485				—				—				—
2025 2Q			489				19,651				20,140				1.82	%			8.86	%			7.91	%
2025 3Q			494				—				494				—				—				—
2025 4Q			498				127,067				127,565				11.77	%			8.86	%			8.63	%
Total 2025			1,966				146,718				148,684				13.59	%			8.86	%			8.53	%
2026 1Q			503				—				503				—				—				—
2026 2Q			507				—				507				—				—				—
2026 3Q			512				—				512				—				—				—
2026 4Q			517				—				517				—				—				—
Total 2026			2,039				—				2,039				—				—				—
2027			2,116				—				2,116				—				—				—
2028			2,195				233,407				235,602				21.61	%			6.56	%			6.56	%
2029			2,278				179,646				181,924				16.63	%			4.66	%			4.66	%
2030			2,363				—				2,363				—				—				—
2031			1,696				104,508				106,204				9.68	%			3.20	%			3.20	%
2032			112				221,639				221,751				20.52	%			4.62	%			4.62	%
2033			—				173,435				173,435				16.06	%			4.60	%			4.60	%
Thereafter			—				5,834				5,834				0.54	%			3.25	%			3.25	%
Total Aimco Share		$	14,765			$	1,065,187			$	1,079,952

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

[2] Consolidated total non-recourse debt excludes $12.6 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 first maturity in Aimco's total non-recourse debt is in 2Q 2027 and the weighted average maturity is 5.6 years.

 

Common Stock, Partnership Units, and Equivalents

(in thousands) (unaudited)

	December 31, 2024
Class A Common Stock Outstanding		136,352
Participating unvested restricted stock		2,534
Potentially dilutive options, share equivalents, and non-participating unvested restricted stock		1,416
Total shares and potentially dilutive share equivalents		140,302
Common Partnership Units and equivalents outstanding		8,910
Total shares, units and potentially dilutive share equivalents		149,212

 

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Supplemental Schedule 3

 

Aimco Portfolio

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

		Number of Properties				Number of Apartment Homes [4]				Office and Retail Sq Ft				Hotel Keys				Development Land [5]
Consolidated
Stabilized Operating Properties			20				5,243				26.4				-				-
Other Real Estate [1]			1				-				-				106				-
Development and Redevelopment - Owned [2]			3				1,023				121.1				-				-
Development and Redevelopment - Land [3]			5				-				-				-				20.8
Development and Redevelopment - Leased			1				24				-				-				-
Held for Sale [4]			2				357				295.7				-				-
Total Consolidated			32				6,647				443.2				106				20.8
Unconsolidated			5				142				-				-				-
Total Portfolio			37				6,789				443.2				106				20.8
Total Consolidated (Aimco Share)							6,567				432.2				106				19.5
Total Unconsolidated (Aimco Share)							73				-				-				-
Total Portfolio (Aimco Share)							6,640				432.2				106				19.5

 

[1] Other Real Estate includes:

[2] Development and Redevelopment - Owned includes:

[3] Development and Redevelopment – Land includes:

[4] As of December 31, 2024, Aimco's 1001 Brickell Bay Drive office tower and Yacht Club Apartments were classified as Held for Sale.

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

[6] 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.

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Supplemental Schedule 4

 

Aimco Capital Additions

(consolidated amounts in thousands) (unaudited)

 

		Three Months Ended				Twelve Months Ended
		December 31, 2024				December 31, 2024
Capital Replacements and Casualty		$	3,520			$	14,736
Property Upgrades			193				640
Tenant Improvements			1,002				4,175
Development and Redevelopment			23,865				126,078
Total Capital Additions [1]		$	28,580			$	145,629

 

 

[1] Fourth quarter 2024 total capital additions include $18.7 million of Direct Capital Investment ($17.9 million on active projects and $0.8 million on projects in planning) and certain other costs capitalized in accordance with GAAP.

 

 

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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 [7]		Stabilized Occupancy [7]		NOI Stabilization [7]
Upton Place		Washington, D.C.		689		46%		105,053		90%		4Q 2023		4Q 2025		4Q 2026
Strathmore Square		Bethesda, MD		220		38%		9,000		64%		2Q 2024		4Q 2025		4Q 2026
34th Street		Miami, FL		114		—		7,000		—		3Q 2027		4Q 2028		4Q 2029
Oak Shore		Corte Madera, CA		24		67%		—		—		4Q 2023		3Q 2025		3Q 2026
Total				1,047				121,053
								Direct Capital Investment
Project Name		Status		Aimco Ownership [5]		Land Cost/ Leasehold Value		Planned		To-Date		Remaining
Upton Place [1]		Lease-up		100%		92.8		242.0		241.0		1.0
Strathmore Square		Lease-up		95%		24.9		156.5		156.0		0.5
34th Street		Active Construction		44% [6]		28.3		211.7		32.1		179.6
Oak Shore		Lease-up		100%		6.1		47.5		47.3		0.2
Total						$152.1		$657.7		$476.4		$181.3
Estimated Direct Costs of Projects in Active Construction [2]						$240.0
Estimated Direct Costs of Projects in Lease-up [3]						$569.8
Estimated Direct Costs of Projects in Occupancy Stabilization [4]						$68.3
Total Estimated Direct Costs of Development Portfolio						$878.1
Estimated Stabilized NOI						$61.6

 

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

[2] Includes the total of the land cost and the planned Direct Capital Investment for 34th Street.

[3] Includes the total of the land cost or leasehold valuation and the planned Direct Capital Investment for Upton Place, Strathmore Square, and Oak Shore.

[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 equity ownership presented as estimated upon construction completion, net of debt and ground lease financing.

[6] Aimco's investment, representing 44% of the equity capital at project inception, has been fully funded, primarily through the contribution of land and pre-development efforts. The remaining investment will be funded through construction loan and preferred equity draws.

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

 

 

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Supplemental Schedule 5(b)

 

Aimco Development and Redevelopment Pipeline Projects

(unaudited)

Aimco controls a robust pipeline with opportunity for significant value creation. Aimco expects, on average across the development portfolio, 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 currently fully covered by the cash flow from operating properties on the Brickell Assemblage which are under contract to sell in 2025.

 

								Estimated / Currently Planned [1]
Property Location		Project Name/ Description		Acreage [2]				Gross Sq Ft				Multifamily Units				Leasable Commercial Sq Ft				Earliest Vertical Construction Start [3]
Southeast Florida
510-532 NE 34th Street (Miami)		One Edgewater			0.50				533,000				204				—			2025
300 Broward Boulevard (Fort Lauderdale)		300 Broward [4]			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
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 [4]			1.35				525,000				399				11,000			2025
Colorado's Front Range
E 23rd Avenue & N Scranton Street (Aurora)		Fitzsimons 4 [4]			1.77				415,000				285				—			2025
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					30.37				7,740,000				3,708				1,011,000

Excluded from the table is the Brickell Assemblage which, as of December 31, 2024, was under contract to sell.

 

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

[2] Acreage includes land owned and land controlled through options for future development, for the Bioscience project, acreage is presented proportionate based on the buildable gross square feet.

[3] Owned in a joint venture structure.

 

 

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Supplemental Schedule 6

 

Stabilized Operating Results

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

 

4Q 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				4Q 2024			4Q 2023			Growth				4Q 2024			4Q 2023			Growth				4Q 2024			4Q 2023			Growth					4Q 2024		4Q 2024	4Q 2023		4Q 2024			4Q 2023
Boston		5			2,719			$	17,429		$	16,742			4.1	%		$	4,147		$	4,347			(4.6	%)		$	13,282		$	12,395			7.2	%			76.2%		98.1%	97.2%		$	2,177		$	2,111
Chicago		7			1,495				10,626			10,241			3.8	%			2,989			2,644			13.0	%			7,637			7,597			0.5	%			71.9%		98.8%	98.7%			2,397			2,314
New York City		3			150				2,160			2,103			2.7	%			961			1,004			(4.3	%)			1,199			1,099			9.1	%			55.5%		98.8%	98.1%			4,859			4,764
Other Markets [1]		5			879				5,324			5,253			1.4	%			1,494			1,522			(1.8	%)			3,830			3,731			2.7	%			71.9%		95.6%	95.6%			2,111			2,084
Total		20			5,243			$	35,539		$	34,339			3.5	%		$	9,591		$	9,517			0.8	%		$	25,948		$	24,822			4.5	%			73.0%		97.9%	97.4%		$	2,307		$	2,242
4Q 2024 v. 3Q 2024								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				4Q 2024			3Q 2024			Growth				4Q 2024			3Q 2024			Growth				4Q 2024			3Q 2024			Growth					4Q 2024		4Q 2024	3Q 2024		4Q 2024			3Q 2024
Boston		5			2,719			$	17,429		$	17,243			1.1	%		$	4,147		$	4,586			(9.6	%)		$	13,282		$	12,657			4.9	%			76.2%		98.1%	97.0%		$	2,177		$	2,180
Chicago		7			1,495				10,626			10,613			0.1	%			2,989			3,042			(1.7	%)			7,637			7,571			0.9	%			71.9%		98.8%	97.7%			2,397			2,422
New York City		3			150				2,160			2,067			4.5	%			961			1,003			(4.2	%)			1,199			1,064			12.7	%			55.5%		98.8%	95.2%			4,859			4,824
Other Markets [1]		5			879				5,324			5,284			0.8	%			1,494			1,884			(20.7	%)			3,830			3,400			12.6	%			71.9%		95.6%	94.9%			2,111			2,112
Total		20			5,243			$	35,539		$	35,207			0.9	%		$	9,591		$	10,515			(8.8	%)		$	25,948		$	24,692			5.1	%			73.0%		97.9%	96.8%		$	2,307		$	2,313
4Q 2024 YTD v. 4Q 2023 YTD								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				4Q 2024 YTD			4Q 2023 YTD			Growth				4Q 2024 YTD			4Q 2023 YTD			Growth				4Q 2024 YTD			4Q 2023 YTD			Growth					4Q 2024 YTD		4Q 2024 YTD	4Q 2023 YTD		4Q 2024 YTD			4Q 2023 YTD
Boston		5			2,719			$	68,410		$	64,812			5.6	%		$	18,042		$	17,766			1.6	%		$	50,368		$	47,046			7.1	%			73.6%		97.4%	96.3%		$	2,152		$	2,062
Chicago		7			1,495				41,850			39,941			4.8	%			12,368			11,367			8.8	%			29,482			28,574			3.2	%			70.4%		97.8%	97.6%			2,384			2,281
New York City		3			150				8,447			8,128			3.9	%			3,786			3,884			(2.5	%)			4,661			4,244			9.8	%			55.2%		97.8%	97.7%			4,799			4,622
Other Markets [1]		5			879				21,392			21,197			0.9	%			6,893			6,339			8.7	%			14,499			14,858			(2.4	%)			67.8%		95.5%	95.6%			2,123			2,101
Total		20			5,243			$	140,099		$	134,078			4.5	%		$	41,089		$	39,356			4.4	%		$	99,010		$	94,722			4.5	%			70.7%		97.2%	96.6%		$	2,290		$	2,205

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

[2] Expenses, net of Utility Reimbursements decreased from 3Q 2024 due primarily to typical seasonal reductions and tax bills coming in lower than estimated.

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Supplemental Schedule 7

 

Aimco Transactions

(dollars in millions) (unaudited)

 

 

2024 Acquisitions

Partnership Acquisitions

Location

Closing Date

Ownership Acquired

Equity Acquired

Upton Place

Washington, D.C.

December

10%

19.1

Total Partnership Acquisitions [1]

$

19.1

[1] During the fourth quarter, Aimco increased its ownership in its Upton Place property as its development partner exercised the option to sell their 10% interest in the asset. At the time of closing, the project had $166.8 million drawn on a committed construction loan with a total capacity of $174.2 million.

 

2024 Dispositions
Apartment Dispositions		Location		Closing Date		AIV Ownership		AIV Gross Proceeds				Units				Property Debt				Net Sales Proceeds [3]				NOI Cap Rate [4]
The Hamilton		Miami, FL		December		100%			190.0				276				100.7				84.7				4.9	%
Total Apartment Dispositions								$	190.0				276			$	100.7			$	84.7				4.9	%
Land Dispositions		Location		Closing Date		AIV Ownership		AIV Gross Proceeds				Acres				Property Debt (AIV Share)				Net AIV Sales Proceeds [3]
3333 Biscayne Boulevard (Miami)		Miami, FL		November		20.8%		$	13.8				2.8			$	9.4			$	5.8
Total Land Dispositions								$	13.8				2.8			$	9.4			$	5.8
TOTAL Dispositions [2]								$	203.8

 

[2] 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.

[3] Net Sales Proceeds are after repayment of debt, if any, net working capital settlements, payment of transaction costs and debt prepayment penalties, if applicable.

[4] NOI Cap Rate (herein) is calculated based on the trailing twelve months of NOI (inclusive of property management fees) ending with the last full month of operations prior to the sale of asset, divided by the sales price.

 

 

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Supplemental Schedule 8

 

Net Asset Value Components

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

 

Net Assets			4Q 2024
Annualized NOI for Stabilized Operating Properties [1]			$	103.8
Annualized NOI for unconsolidated real estate at AIV share [1]				2.5
Projected Annual NOI for Development Projects upon stabilization [2]				61.6
Land, Planning and Entitlement Investment at cost [3]				141.0
IQHQ and Real Estate Tech Fund Investments [4]				16.1
Cash and cash equivalents				141.1
Restricted cash				31.4
Notes receivable [5]				58.8
Fair value adjustment on fixed rate property debt & preferred equity				64.2
Expected proceeds from assets held for sale [6]				520.0
Net Liabilities
Non-recourse property debt, net [7]			$	689.9
Non-recourse construction loans, net [7]				393.4
Liabilities associated with assets held for sale, including debt and income taxes [6]				220.0
Preferred equity interests				142.9
Investment remaining to complete active developments and redevelopments [2]				181.3
Amounts drawn on Aimco's revolving secured credit facility				-
Dividends payable [8]				89.2
Other liabilities, net				131.6
Common Stock, Partnership Units and Equivalents (in millions)
Total shares, units and dilutive share equivalents				149.2
Noncontrolling interests in real estate [9]

 

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

[2] See Supplemental Schedule 5 for additional details.

[3] 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 $30 million.

[4] Investment value for IQHQ is based on cost, adjusted for any impairment or observable price changes, the Real Estate Tech Funds are valued based on 4Q 2024 GAAP fair value.

[5] Notes receivables presented at book value.

[6] As of December 31, 2024, Aimco was under contract to sell its 1001 Brickell Bay Drive and Yacht Club Apartments. Included in the liabilities are $160 million of property level loans, approximately $60 million of cash tax (included on Aimco's 4Q 2024 balance sheet with a GAAP value of $101.6 million) and transaction costs.

[7] Amounts presented exclude deferred financing costs.

[8] In December, Aimco’s Board of Directors declared a special cash dividend of $0.60 per share to distribute the net proceeds produced from 2024 asset sales to stockholders, which was paid on January 31, 2025.

[9] Amounts presented at 100% ownership exclusive of noncontrolling interests. Aimco estimates this value to be $25 - $35 million.

 

 

 

 

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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 92.3% 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:

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.

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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:

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. Aimco reduced its carrying value of the loan to $0 with two non-cash impairment charges recognized in the fourth quarter 2022 and 2023. 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 in 2023, 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, certain non-recurring items, and activity related to our unconsolidated real estate partnerships.

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 December 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)	$	100.8
Lease liabilities - finance leases (per Consolidated Balance Sheet)		121.8
Other assets, net (per Consolidated Balance Sheet)		(94.1	)
Total		128.5
Reduction in assets (reported elsewhere on Schedule 8):
IQHQ and Real Estate Tech Funds		16.1
Unconsolidated real estate partnerships		15.2
Deferred tax assets		5.2
Reduction in liabilities (GAAP amount not reflective of value):
Mezzanine Investment - Participation Sold		(33.5	)
Other liabilities, net (per Schedule 8)	$	131.6

 

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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)
	December 31, 2024								December 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)	$	54,171			$	23,892			$	49,352			$	19,065
Adjustment: Stabilized Operating utilities reimbursement		(1,721	)			(1,721	)			(1,560	)			(1,560	)
Adjustment: Other Real Estate		(1,802	)			(1,969	)			(1,251	)			(1,348	)
Adjustment: Non-stabilized and other amounts not allocated [2]		(15,110	)			(10,611	)			(12,202	)			(6,640	)
Total Stabilized Operating (per Schedule 6)	$	35,539			$	9,591			$	34,339			$	9,517

 

Segment NOI Reconciliation	Twelve Months Ended (in thousands)
	December 31, 2024								December 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)	$	208,679			$	90,984			$	186,995			$	73,712
Adjustment: Stabilized Operating utilities reimbursement		(6,506	)			(6,506	)			(5,706	)			(5,706	)
Adjustment: Other Real Estate		(6,690	)			(7,712	)			(2,691	)			(4,710	)
Adjustment: Non-stabilized and other amounts not allocated [2]		(55,384	)			(35,676	)			(44,520	)			(23,941	)
Total Stabilized Operating (per Schedule 6)	$	140,099			$	41,089			$	134,078			$	39,356

[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.

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[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.

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 non-apartment real estate owned and asset managed by Aimco.

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.

 

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v3.25.0.1

Document and Entity Information	Feb. 24, 2025
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 24, 2025
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	Feb. 24, 2025
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

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