APRT INV : Aimco Reports Second Quarter 2011 Results: Rental Rates Accelerating, Pro forma FFO Ex-Items Up 16% Year-to-Date
07/29/2011| 07:05am US/Eastern
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Apartment Investment and Management Company ("Aimco") (NYSE: AIV)
announced today its second quarter and year-to-date 2011 results.
Chairman and Chief Executive Officer Terry Considine comments: "Aimco's
business improved significantly during the second quarter with rising
rental rates, continued high average daily occupancy and sustainable
expense reductions. We begin the second half of the year in a strong
position to generate competitive earnings growth through solid operating
performance, further reductions in off-site costs, lower cost of
leverage and accretive investment activities."
Chief Financial Officer Ernie Freedman adds: "Aimco's second quarter Pro
forma FFO of $0.27 per share exceeded the upper end of Aimco's guidance
range by $0.05 per share, primarily as a result of strong operating
results. Total Same Store NOI increased 5.1% compared to second quarter
2010, with revenue growth of 2.6% and sustainable expense reductions of
1.4%. Rental rate increases accelerated during the quarter with 5.1%
growth in new lease rates and renewal rate increases of 3.6%. Based on
results year-to-date, we expect Total Same Store NOI growth relative to
2010 to be in a range of 5.0% to 6.0% and, accordingly, we are
increasing Pro forma FFO guidance to $1.45 to $1.51 per share, or an
increase of $0.09 per share at the mid-point."
Financial Results
Pro forma FFO, Excluding One-Time Items, Up 16% Year-to-Date*
SECOND QUARTER
YEAR TO DATE
2011
2010
2011
2010
Net loss per share
($0
.28)
($0
.15)
($0
.55)
($0
.50)
Funds from Operations (FFO)
$0
.27
$0
.40
$0
.65
$0
.65
Add back Aimco's share of operating real estate impairment losses
$0
.02
$0
.03
$0
.03
$0
.10
Deduct Aimco's share of preferred equity redemption related amounts
($0
.02)
($0
.02)
($0
.02)
($0
.02)
Pro forma Funds from Operations (Pro forma FFO)
$0
.27
$0
.41
$0
.66
$0
.73
Deduct Aimco's share of Capital Replacements
($0
.13)
($0
.14)
($0
.23)
($0
.24)
Adjusted Funds From Operations (AFFO)
$0
.14
$0
.27
$0
.43
$0
.49
* Year-to-date 2011 Pro forma FFO of $0.66 per share includes a
one-time charge of $0.15 per share related to debt prepayment penalties
and write-off of deferred loan costs incurred in connection with a
refinancing and securitization transaction completed during the quarter.
This transaction is described in further detail in the Balance Sheet and
Liquidity section of this release. Year-to-date 2010 Pro forma FFO of
$0.73 per share includes a net benefit of $0.03 per share related to
several, mostly offsetting, one-time items during second quarter 2010.
Excluding these one-time items from each period, year-to-date 2011 Pro
forma FFO increased 16% when compared to the same period last year.
Net loss -Net loss attributable to Aimco common
stockholders for the quarter was $33.2 million, compared to net loss of
$18.0 million for second quarter 2010. Second quarter 2011 net loss
increased as compared to second quarter 2010 primarily due to: an
increase of $20.5 million in interest expense, substantially all of
which is related to debt prepayment penalties and write-off of deferred
loan costs; a decrease of $11.6 million in income from discontinued
operations as a result of 2010 and 2011 property sales; and a decrease
of $9.7 million in other income, primarily as a result of $7.6 million
of legal settlements, net of tax, which occurred during second quarter
2010 that did not recur in second quarter 2011. These decreases in
income were offset by an increase of $12.4 million in property net
operating income, a decrease of $8.7 million in depreciation and
amortization and a decrease of $2.8 million in general and
administrative expenses.
Funds from Operations - FFO is a non-GAAP financial measure
defined in the glossary in Aimco's Supplemental Information (the
Glossary). FFO calculated in accordance with the definition prescribed
by the National Association of Real Estate Investment Trusts (NAREIT)
was $32.3 million, or $0.27 per share, compared to $46.9 million, or
$0.40 per share, in second quarter 2010. Pro forma FFO, which represents
FFO as prescribed by NAREIT but excludes operating real estate
impairment losses and preferred equity redemption related amounts, was
$32.3 million, or $0.27 per share, compared to $47.8 million, or $0.41
per share, in second quarter 2010. Second quarter 2011 Pro forma FFO of
$0.27 per share, including prepayment penalties and write-off of
deferred loan costs totaling $0.15 per share, was $0.05 per share above
the upper end of Aimco's guidance range, primarily as a result of better
than expected property operating results.
Property Operations
Property operating results discussed below, including property net
operating income (NOI), relate to properties that Aimco owns and
manages, and that are classified within continuing operations. To ensure
comparability between periods, results are based on Aimco's current
period ownership. See the Glossary for property definitions and
reconciliation of non-GAAP measures and Schedules 1 and 2 in the
Supplemental Information for financial and statistical information for
these portfolios.
Diversified Operating Portfolio - Aimco's property operations
consist primarily of Conventional, with some Affordable, real estate
operations. Conventional real estate operations relate to Aimco's
diversified portfolio of market rate apartment communities and include
Same Store Properties, Redevelopment Properties, and Other Properties.
Affordable real estate operations consist of Aimco's portfolio of
properties with rents that are generally paid, in whole or in part, by a
government agency. Affordable properties tend to have more stable rents
and higher occupancy than Conventional properties due to government rent
payments and thus are less affected by market fluctuations.
Total Same Store NOI Up 6.8% Year-to-Date
SECOND QUARTER
YEAR TO DATE
Year-over-year Variance
Year-over-year Variance
% NOI
Revenue
Expenses
NOI
% NOI
Revenue
Expenses
NOI
Conventional Same Store
79
%
2.4
%
-1.3
%
4.6
%
79
%
2.0
%
-3.9
%
5.8
%
Affordable Same Store
13
%
3.7
%
-2.3
%
8.4
%
12
%
4.5
%
-6.7
%
14.2
%
Total Same Store
92
%
2.6
%
-1.4
%
5.1
%
91
%
2.3
%
-4.3
%
6.8
%
Other Conventional
8
%
3.0
%
-2.1
%
7.4
%
8
%
1.0
%
-0.2
%
1.9
%
Affordable Redevelopment
-
-
-
-
1
%
6.7
%
9.9
%
4.4
%
Total Portfolio
100
%
2.6
%
-1.5
%
5.3
%
100
%
2.3
%
-3.7
%
6.4
%
During second quarter 2011, total revenue across Aimco's portfolio
increased 2.6% when compared to second quarter 2010 while expenses
declined 1.5%. Portfolio-wide expense savings were primarily the result
of decreases in insurance expense, personnel expenses, turnover costs
and marketing. These decreases were partially offset by an increase in
real estate taxes as a result of successful appeals recognized in second
quarter 2010 that did not recur in second quarter 2011.
Conventional Same Store Results - In second quarter 2011, the
Conventional Same Store portfolio included 171 communities with 58,459
units, in which Aimco had a weighted average ownership of 94%.
Conventional Same Store NOI Growth Exceeds Upper End of Guidance Range
SECOND QUARTER
Year-over-year
SECOND QUARTER
Sequential
YEAR-TO-DATE
Year-over-year
2011
2010
Variance
1st Qtr
Variance
2011
2010
Variance
Average Daily Occupancy
95.9
%
95.7
%
0.2
%
96.4
%
-0.5
%
96.2
%
95.8
%
0.4
%
Average Rent Per Unit
$
1,070
$
1,052
1.7
%
$
1,058
1.1
%
$
1,066
$
1,054
1.1
%
$ in Millions
Revenue
$
187.0
$
182.6
2.4
%
$
185.9
0.6
%
$
371.8
$
364.4
2.0
%
Expenses
(68.0
)
(68.9
)
-1.3
%
(69.1
)
-1.6
%
(136.6
)
(142.1
)
-3.9
%
NOI
$
119.0
$
113.7
4.6
%
$
116.8
1.9
%
$
235.2
$
222.3
5.8
%
Rental Rates Accelerating
Aimco measures changes in rental rates by comparing, on a lease-by-lease
basis, the rate on a newly executed lease to the rate on the expiring
lease for that same apartment. Newly executed leases are classified as
either a new lease, where a vacant apartment is leased to a new
customer, or a renewal of an existing lease. Average increases in
Conventional Same Store new lease and renewal rental rates for the first
half of 2011 are as follows:
SECOND QUARTER
FIRST QUARTER
YEAR-TO-DATE
New lease
5.1%
1.9%
3.8%
Renewal
3.6%
3.0%
3.4%
Refer to Supplemental Schedules 6a through 6c for additional details on
Conventional Same Store operating results.
Affordable Same Store Results - In second quarter 2011, the
Affordable Same Store portfolio included 147 communities with 18,478
units, in which Aimco had a weighted average ownership of 69%. For
second quarter 2011, average month-end occupancy for the affordable
portfolio was 97.6%, an increase of 0.1% from second quarter 2010, while
average rent per unit increased 4.0% from $810 to $842 per unit.
Portfolio
Aimco's portfolio strategy focuses on B/B+ quality Conventional
apartment communities located in the 20 largest U.S. markets as measured
by total apartment value, with a target capital allocation of 10% to
Affordable apartment communities.
Aimco measures Conventional Property asset quality based on average
rents compared to local market average rents as reported by REIS, a
third-party provider of commercial real estate performance information
and analysis. Aimco defines A-quality assets as those with rents greater
than 125% of local market average, B-quality assets as those with rents
90% to 125% of local market average and C-quality assets as those with
rents less than 90% of local market average. For first quarter 2011, the
most recent period for which REIS information is available, Aimco's
Conventional Property rents averaged 99% of local market average rents.
For second quarter 2011, average rents for the Conventional portfolio
were $1,079 per unit, a 3.8% increase compared to second quarter 2010,
as a result of year-over-year rent growth and the sale of Conventional
properties during 2010 and 2011 with rents substantially lower than
those of the retained portfolio.
Aimco's geographic allocation strategy focuses on the 20 largest U.S.
markets. Aimco believes these markets to be deep, relatively liquid and
possessing desirable long-term growth characteristics. These target
markets are primarily coastal markets, and also include a number of Sun
Belt cities and Chicago, Illinois. In executing this strategy, Aimco
expects to reduce its investment in markets outside the 20 largest
markets and to increase its investment in the 20 largest markets through
redevelopment, acquisitions and increasing ownership in properties Aimco
already owns through limited partnerships. During second quarter 2011,
net operating income generated by Conventional properties located in
Aimco's target markets accounted for 85% of total Conventional Property
net operating income, an increase of 2% compared to second quarter 2010.
In second quarter 2011, Aimco sold seven Conventional properties and
seven Affordable properties with 1,741 and 646 units, respectively, for
$109.8 million in gross proceeds. Aimco's share of net proceeds after
distributions to limited partners, repayment of existing property debt
and transaction costs was $31.3 million.
See Supplemental Schedules 7a and 7b for additional details regarding
Aimco's Conventional portfolio quality and capital allocation, and
Supplemental Schedule 8 for additional details on disposition activity.
Balance Sheet and Liquidity
Components of Aimco Leverage
AS OF JUNE 30, 2011
Amount
% of Total
Weighted Avg Maturity (Yrs)
Weighted Avg Rate
Aimco leverage ($ in millions)
Aimco's share of long-term, non-recourse property debt
$ 4,808.8
86%
8.1
5.39%
Aimco's share of other borrowings
30.9
<1%
n/a
4.57%
Revolving credit facility
21.5
<1%
2.1
6.25%
Subtotal debt
$ 4,861.2
87%
8.1
5.36%
Preferred securities
752.0
13%
Perpetual
7.49%
Total leverage
$ 5,613.2
100%
n/a
5.67%
See Supplemental Schedule 4 for additional details about Aimco's
non-recourse property debt and Supplemental Schedule 5 for information
related to Aimco's preferred securities.
Property Debt Refinancing and Securitization - As Aimco announced
on May 20, 2011, the company completed a series of financing
transactions that repaid 19 non-recourse property loans scheduled to
mature between 2012 and 2016 with proceeds from new long-term,
fixed-rate, non-recourse property loans (the "new loans"). The new
loans, which total $673.8 million, were closed in three parts; $218.6
million closed in December 2010, $120.6 million closed in March 2011,
and $334.6 million closed in May 2011. Each of the new loans has a
ten-year term, and a 30-year amortization schedule.
In June 2011, Freddie Mac securitized the new loans, creating its first
multifamily private label securitization trust. The trust holds only the
new Aimco loans referenced above and trades under the label FREMF
2011-KAIV.
As part of the securitization transaction, Aimco purchased for $51.5
million the first loss position and two mezzanine positions from the
securitization trust, effectively reducing Aimco's debt obligation. The
face value of the notes is $100.9 million and the $49.4 million discount
will be accreted into interest income over the ten-year term of the
notes.
The weighted average interest rate on the 19 new loans is 5.49% while
the net effective cost of the new loans is 5.19%, taking into account
the weighted average interest rate on the new loans, transaction costs
and interest income Aimco will earn from the securitization trust notes.
Property Debt Financing Commitments - Aimco's share of property
debt maturities during the balance of 2011 through 2014 totals $883.7
million, or approximately 18% of total property debt outstanding at June
30, 2011. Aimco has secured firm commitments to refinance $151.3
million, or approximately 17%, of maturities through 2014 as follows:
Aimco's Share of Property Debt Maturities
($ in millions)
Balance of 2011
2012
2013
2014
Total/ Weighted Avg
As of June 30, 2011
$
14.5
$
288.3
$
295.6
$
285.3
$
883.7
Maturing balances with committed financing
-
92.2
-
59.1
151.3
Remaining maturing balances
$
14.5
$
196.1
$
295.6
$
226.2
$
732.4
Weighted average interest rates
Existing loans with committed financing
5.34
%
5.75
%
5.50
%
Committed financing
4.47
%
4.20
%
4.37
%
Revolving Credit Facility - Aimco's recourse debt at June 30,
2011, was limited to its revolving credit facility, which Aimco uses for
working capital purposes and to secure letters of credit. At the end of
second quarter, Aimco had $21.5 million outstanding on its revolving
credit facility and available capacity was $251.5 million, net of $27.0
million of letters of credit backed by the facility.
Coverage Ratios - Aimco's second quarter EBITDA Coverage of
Interest and EBITDA Coverage of Interest and Preferred Dividends ratios
were 2.12:1 and 1.73:1, compared to first quarter 2011 ratios of 2.11:1
and 1.72:1, respectively. Separately, in connection with its revolving
credit facility, Aimco is subject to Debt Service and Fixed Charge
Coverage covenants, as defined in the Glossary. For second quarter 2011,
Aimco's Debt Service and Fixed Charge Coverage ratios were 1.59:1 and
1.35:1, compared to covenants in place during the quarter of 1.40:1 and
1.20:1, respectively, and first quarter 2011 ratios of 1.58:1 and
1.34:1. Aimco expects to remain in compliance with these covenants.
Equity Activity - From April 1, 2011, through the date of this
release, Aimco has issued 1.7 million shares under its At-the-Market
(ATM) offering program at a weighted average price of $25.62 per share,
generating gross proceeds of $42.9 million. The proceeds from the ATM
offering were used primarily to match-fund investment activities during
the period and to fund prepayment penalties described in this release.
From January 1, 2011, through the date of this release, Aimco has issued
2.8 million shares under its ATM offering program at a weighted average
price of $24.69 per share, generating gross proceeds of $70.6 million.
As previously announced, on July 26, 2011, Aimco priced an underwritten
public offering of 800,000 shares of its 7.00% Class Z Cumulative
Preferred Stock at $24.25 per share, equating to a yield of 7.216%, for
gross proceeds to Aimco of approximately $19.4 million. Aimco intends to
use the net proceeds from the offering of approximately $18.5 million to
partially redeem outstanding preferred securities with a higher dividend
rate. Aimco expects to close the sale of the Class Z Cumulative
Preferred Stock, subject to customary conditions, on or about July 29,
2011.
The shares of Class Z Cumulative Preferred Stock have a liquidation
preference of $25 per share, have no stated maturity, are not subject to
any sinking fund and are redeemable at par plus accumulated, accrued and
unpaid dividends at Aimco's option at any time after July 29, 2016.
Dividend - Aimco's Board of Directors declared a cash dividend of
$0.12 per share on its Class A Common Stock for the quarter ended June
30, 2011. The dividend is payable August 31, 2011 to shareholders of
record on August 19, 2011.
2011 Outlook
THIRD QUARTER
FULL YEAR *
CHANGE FROM MIDPOINT OF PRIOR OUTLOOK
Net loss per share
-$0.32 to -$0.28
-$1.23 to -$1.17
+ $0.05
Pro forma FFO per share
$0.38 to $0.42
$1.45 to $1.51
+ $0.09
Conventional Same Store Operating Measures
NOI change compared to prior quarter 2011
-0.5% to 0.5%
NOI change compared to same period 2010
3.0% to 4.0%
4.5% to 5.5%
+ 1.0%
Average daily occupancy
95.5% - 96.5%
-
Revenue change compared to 2010
2.5% to 3.0%
+ 0.25%
Expense change compared to 2010
-1.5% to -1.0%
- 1.25%
Affordable Same Store NOI change compared to 2010
10.0% to 11.0%
Total Same Store NOI change compared to 2010
3.5% to 4.5%
5.0% to 6.0%
Total Portfolio NOI change compared to 2010
4.0% to 5.0%
+ 1.0%
* Full year guidance includes a one-time charge of $0.15 per share
related to debt prepayment penalties and write-off of deferred loan
costs incurred in connection with a refinancing and securitization
transaction completed during second quarter, which is described in
further detail in the Balance Sheet and Liquidity section of this
release.
Earnings Conference Call
Live Conference Call Friday, July 29, 2011, at 1:00 p.m.
Eastern time Domestic Dial-In Number: 1-866-843-0890 International
Dial-In Number: 1-412-317-9250 Passcode: 8254791
Conference Call Replay Available until 9:00 a.m. Eastern
time on August 8, 2011 Domestic Dial-In Number: 1-877-344-7529 International
Dial-In Number: 1-412-317-0088 Passcode: 10001841
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 not calculated in accordance with accounting
principles generally accepted in the United States, or GAAP. These
measures are defined in the glossary in the Supplemental Information
and, where appropriate, reconciled to the most comparable GAAP measures.
Forward-looking Statements
This Earnings Release and Supplemental Information contain
forward-looking statements within the meaning of the federal securities
laws, including, without limitation, statements regarding projected
results and specifically forecasts of third quarter and full year 2011
results. These forward-looking statements are based on management's
judgment as of this date and include certain risks and uncertainties.
Risks and uncertainties include, but are not limited to, Aimco's ability
to maintain current or meet projected occupancy, rental rates and
property operating results. Actual results may differ materially from
those described in these forward-looking statements and, in addition,
will be affected by a variety of risks and factors, some of which are
beyond the control of Aimco, including, without limitation: financing
risks, including the availability and cost of capital markets financing
and the risk that our cash flows from operations may be insufficient to
meet required payments of principal and interest; earnings may not be
sufficient to maintain compliance with debt covenants; real estate
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
terms of governmental regulations that affect Aimco and interpretations
of those regulations; the competitive environment in which Aimco
operates; the timing of acquisitions and dispositions; insurance risk,
including the cost of insurance; natural disasters and severe weather
such as hurricanes; litigation, including costs associated with
prosecuting or defending claims and any adverse outcomes; energy costs;
and possible environmental liabilities, including costs, fines or
penalties that may be incurred due to necessary remediation of
contamination of properties presently owned or previously owned by
Aimco. 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 and depends on our
ability to meet the various requirements imposed by the Internal Revenue
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,
2010, and the other documents Aimco files from time to time with the
Securities and Exchange Commission. These forward-looking statements
reflect management's judgment as of this date, and Aimco assumes no
obligation to revise or update them to reflect future events or
circumstances. This press release does not constitute an offer of
securities for sale.
About Aimco
Aimco is a real estate investment trust that is focused on the ownership
and management of quality apartment communities located in the 20
largest markets in the United States. Aimco is one of the country's
largest owners and operators of both conventional and affordable
apartments, with 607 communities serving approximately 500,000 residents
in 38 states, the District of Columbia and Puerto Rico. Aimco common
shares are traded on the New York Stock Exchange under the ticker symbol
AIV and are included in the S&P 500. For more information about Aimco,
please visit our website at www.aimco.com.
Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2011
2010
2011
2010
REVENUES:
Rental and other property revenues
$
273,384
$
266,728
$
545,176
$
533,332
Asset management and tax credit revenues
7,651
9,796
16,887
14,497
Total revenues
281,035
276,524
562,063
547,829
OPERATING EXPENSES:
Property operating expenses
117,379
123,126
240,908
250,266
Investment management expenses
2,187
5,141
5,219
8,370
Depreciation and amortization
94,084
102,809
193,117
206,092
General and administrative expenses
12,372
15,184
23,498
26,919
Other expense (income), net
5,222
(4,485
)
9,156
(2,148
)
Total operating expenses
231,244
241,775
471,898
489,499
Operating income
49,791
34,749
90,165
58,330
Interest income
2,254
1,909
4,502
5,080
(Provision for) recovery of losses on notes receivable
(36
)
148
(53
)
(278
)
Interest expense
(96,716
)
(76,203
)
(171,805
)
(152,579
)
Equity in (losses) earnings of unconsolidated real estate
partnerships
(1,798
)
(5,295
)
(3,446
)
3,853
Gain on dispositions of unconsolidated real estate and other, net
808
3,041
2,021
4,485
Loss before income taxes and discontinued operations
(45,697
)
(41,651
)
(78,616
)
(81,109
)
Income tax benefit
2,257
3,385
4,765
7,151
Loss from continuing operations
(43,440
)
(38,266
)
(73,851
)
(73,958
)
Income from discontinued operations, net [1]
16,469
28,096
19,603
47,028
Net loss
(26,971
)
(10,170
)
(54,248
)
(26,930
)
Noncontrolling interests:
Net loss (income) attributable to noncontrolling interests in
consolidated real estate partnerships
2,771
2,716
10,076
(9,418
)
Net income attributable to preferred noncontrolling interests in
Aimco Operating Partnership
(1,671
)
(1,683
)
(3,342
)
(3,376
)
Net loss attributable to common noncontrolling interests in Aimco
Operating Partnership
2,420
1,312
4,803
4,381
Total noncontrolling interests
3,520
2,345
11,537
(8,413
)
Net loss attributable to Aimco
(23,451
)
(7,825
)
(42,711
)
(35,343
)
Net income attributable to Aimco preferred stockholders
(9,672
)
(10,128
)
(22,128
)
(23,050
)
Net income attributable to participating securities
(54
)
(42
)
(111
)
-
Net loss attributable to Aimco common stockholders
$
(33,177
)
$
(17,995
)
$
(64,950
)
$
(58,393
)
Weighted average common shares outstanding - basic and diluted
119,156
116,323
118,238
116,179
Earnings (loss) per common share - basic and diluted:
Loss from continuing operations attributable to Aimco common
stockholders
$
(0.35
)
$
(0.33
)
$
(0.66
)
$
(0.75
)
Income from discontinued operations attributable to Aimco common
stockholders
0.07
0.18
0.11
0.25
Net loss attributable to Aimco common stockholders
$
(0.28
)
$
(0.15
)
$
(0.55
)
$
(0.50
)
Notes to Consolidated Statements of Operations
[1] Income from discontinued operations consists of the following
(in thousands):
Three Months Ended
Six Months Ended
June 30,
June 30,
2011
2010
2011
2010
Rental and other property revenues
$
4,019
$
21,695
$
11,538
$
47,639
Property operating expenses
(2,169
)
(9,590
)
(6,288
)
(25,910
)
Depreciation and amortization
(1,647
)
(6,311
)
(4,065
)
(12,839
)
Provision for operating real estate impairment losses
(2,452
)
(895
)
(6,307
)
(8,121
)
Operating (loss) income
(2,249
)
4,899
(5,122
)
769
Interest income
262
101
314
183
Interest expense
(1,009
)
(3,881
)
(2,602
)
(8,308
)
(Loss) income before gain on dispositions of real estate and
income taxes
(2,996
)
1,119
(7,410
)
(7,356
)
Gain on dispositions of real estate
19,716
26,982
27,434
53,321
Income tax (expense) benefit
(251
)
(5
)
(421
)
1,063
Income from discontinued operations, net
$
16,469
$
28,096
$
19,603
$
47,028
Income from discontinued operations attributable to:
Noncontrolling interests in consolidated real estate partnerships
$
(7,196
)
$
(6,383
)
$
(5,943
)
$
(16,241
)
Noncontrolling interests in Aimco Operating Partnership
(653
)
(1,455
)
(945
)
(2,064
)
Total noncontrolling interests
(7,849
)
(7,838
)
(6,888
)
(18,305
)
Income from discontinued operations attributable to Aimco
$
8,620
$
20,258
$
12,715
$
28,723
Consolidated Balance Sheets
(in thousands) (unaudited)
June 30, 2011
December 31, 2010
ASSETS
Buildings and improvements
$
6,993,515
$
7,100,012
Land
2,107,082
2,108,349
Total real estate
9,100,597
9,208,361
Accumulated depreciation
(2,837,896
)
(2,821,935
)
Net real estate
6,262,701
6,386,426
Cash and cash equivalents
85,324
111,325
Restricted cash
196,426
200,503
Accounts receivable, net
41,293
49,855
Accounts receivable from affiliates, net
5,179
8,392
Deferred financing costs, net
46,984
46,953
Notes receivable from unconsolidated real estate partnerships, net
10,209
10,896
Notes receivable from non-affiliates, net
117,078
116,726
Investment in unconsolidated real estate partnerships
74,349
59,282
Other assets
239,797
180,596
Deferred income tax asset, net
61,919
58,736
Assets held for sale
23,713
148,876
Total assets
$
7,164,972
$
7,378,566
LIABILITIES AND EQUITY
Non-recourse property tax-exempt bond financing
$
434,536
$
511,811
Non-recourse property loans payable
4,872,614
4,833,938
Revolving credit facility borrowings
21,500
-
Other borrowings
40,974
47,018
Total indebtedness
5,369,624
5,392,767
Accounts payable
25,988
27,322
Accrued liabilities and other
228,396
250,103
Deferred income
147,082
150,577
Security deposits
34,982
34,308
Liabilities related to assets held for sale
24,177
113,289
Total liabilities
5,830,249
5,968,366
Preferred noncontrolling interests in Aimco Operating Partnership
83,387
83,428
Preferred stock subject to repurchase agreement
10,000
20,000
Equity:
Perpetual Preferred Stock
657,601
657,601
Class A Common Stock
1,205
1,176
Additional paid-in capital
3,095,994
3,070,296
Accumulated other comprehensive loss
(1,147
)
(2,076
)
Distributions in excess of earnings
(2,774,353
)
(2,680,955
)
Total Aimco equity
979,300
1,046,042
Noncontrolling interests in consolidated real estate partnerships
289,865
291,458
Common noncontrolling interests in Aimco Operating Partnership
(27,829
)
(30,728
)
Total equity
1,241,336
1,306,772
Total liabilities and equity
$
7,164,972
$
7,378,566
Apartment Investment and Management Company Elizabeth Coalson, Vice
President Investor Relations Investor Relations 303-691-4350 Investor@Aimco.com
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