APRT INV : Apartment Investment and Management Company Announces Fourth Quarter 2010 Results
02/04/2011| 07:05am US/Eastern
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Apartment Investment and Management Company (NYSE: AIV) announced today
its fourth quarter 2010 results.
Chairman, Chief Executive Officer and President Terry Considine
comments: ?Aimco had a solid 2010. Full year Same Store, Conventional
Same Store and Total Portfolio net operating income were all up from the
prior year. Total Portfolio revenue was up 1.0% and Conventional Same
Store revenue was essentially flat, notwithstanding the fragile economy.
Aimco upgraded its portfolio with the sale of 51 properties and ended
the year with a strong balance sheet and no recourse debt. Looking
forward, the Aimco business plan is straightforward and unchanged: own
and operate B/B+ quality apartments in the 20 largest U.S. markets to
provide predictable returns for shareholders.?
Chief Financial Officer Ernie Freedman adds: ?Fourth quarter Pro forma
FFO of $0.39 per share exceeded the upper end of our guidance range by
$0.01 per share, primarily as a result of better than expected operating
results. We expect 2011 FFO to be in a range from $1.46 to $1.56 per
share with first quarter 2011 FFO projected to be $0.33 to $0.37 per
share. With a solid 2010 behind us, Aimco is looking ahead to 2011 with
a quality portfolio, a strong balance sheet and a focus on future growth
opportunities.?
Financial Results
Diluted Per Share Results
FOURTH QUARTER
FULL YEAR
2010
2009
2010
2009
Earnings (loss) per share
($0.33
)
($0.06
)
($1.08
)
($1.00
)
Funds from Operations (FFO)
$0.31
$0.14
$1.38
$1.09
Add back Aimco's share of operating real estate impairment losses
$0.05
$0.12
$0.13
$0.47
Add back / deduct Aimco's share of preferred equity redemption
related amounts
$0.03
-
-
($0.01
)
Pro forma Funds from Operations (Pro forma FFO)
$0.39
$0.26
$1.51
$1.55
Deduct Aimco's share of capital replacements
($0.14
)
($0.13
)
($0.51
)
($0.56
)
Adjusted Funds From Operations (AFFO)
$0.25
$0.13
$1.00
$0.99
Net income (loss) – Net loss attributable to Aimco common stockholders
for the quarter was $38.4 million, compared to net loss of $6.7 million
for fourth quarter 2009. Fourth quarter 2010 net loss increased as
compared to fourth quarter 2009 primarily due to a decrease of $60.7
million in income from discontinued operations as a result of 2009 and
2010 property sales, partially offset by lower provision for losses on
notes receivable of $20.4 million, lower restructuring costs of $8.7
million and an increase of $9.9 million in net operating income of our
properties included in continuing operations.
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 $35.7 million,
or $0.31 per share, compared to $16.1 million, or $0.14 per share, in
fourth quarter 2009. Pro forma FFO, which represents FFO as prescribed
by NAREIT but excludes operating real estate impairment losses and
preferred equity redemption related amounts, was $45.3 million, or $0.39
per share, compared to $30.2 million, or $0.26 per share, in fourth
quarter 2009. Fourth quarter 2010 Pro forma FFO of $0.39 per share was
$0.03 per share above the midpoint of Aimco's guidance range primarily
as a result of higher than expected Conventional Same Store average
daily occupancy and a reduction in previously estimated real estate tax
obligations due to successful appeals completed during the fourth
quarter.
Property Operations
Property operating results discussed below represent Aimco's
Proportionate Share of reported amounts, which reflects property
operating results adjusted for Aimco's ownership in each property. This
non-GAAP measure is defined in the Glossary.
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. Conventional
Property operations generated 88% of Aimco's fourth quarter 2010
property net operating income (NOI). See Supplemental Schedules 7a and
7b for detailed information on Aimco's Conventional real estate
portfolio, including selected operating results.
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. Affordable
Property operations generated 12% of Aimco's fourth quarter 2010 NOI.
Fourth Quarter Portfolio Operating Measures*
FOURTH QUARTER 2010
% Aimco NOI
Revenue
Year-over-year Variance Expenses
NOI
Conventional Same Store
80
%
1.6
%
-3.7
%
5.0
%
Affordable Same Store
11
%
4.9
%
-6.0
%
15.3
%
Total Same Store
91
%
2.1
%
-4.0
%
6.1
%
Conventional Redevelopment and Other
8
%
8.6
%
4.8
%
12.0
%
Affordable Redevelopment
1
%
11.8
%
-3.1
%
24.2
%
Total Portfolio
100
%
2.7
%
-3.2
%
6.8
%
Year-to-Date Portfolio Operating Measures*
FULL YEAR 2010
% Aimco NOI
Revenue
Year-over-year Variance Expenses
NOI
Conventional Same Store
80
%
-0.2
%
-1.0
%
0.2
%
Affordable Same Store
11
%
2.6
%
0.1
%
4.8
%
Total Same Store
91
%
0.2
%
-0.8
%
0.8
%
Conventional Redevelopment
1
%
5.4
%
-3.1
%
10.9
%
Other Conventional
6
%
1.9
%
2.1
%
1.8
%
Affordable Redevelopment
2
%
8.0
%
-8.0
%
22.3
%
Total Portfolio
100
%
1.0
%
-0.9
%
2.3
%
*The information in these tables relates to properties that
Aimco owns and manages, and are classified within continuing operations.Results exclude properties that Aimco owns but does not manage and
properties classified within discontinued operations. To ensure
comparability between periods, the year-over-year change in Revenue,
Expenses and NOI in these tables is based on Aimco's current period
ownership.See the Glossary for additional information about the
property categories included in these tables and Schedules 1 and 2 in
the Supplemental Information for financial and statistical information
for these portfolios.
Conventional Same Store Results – In fourth quarter 2010, the
Conventional Same Store portfolio included 180 communities with 61,397
units, in which Aimco had a weighted average ownership of 92%.
Conventional Same Store Operating Measures
FOURTH QUARTER Year-over-year
FOURTH QUARTER Sequential
FULL YEAR Year-over-year
2010
2009
Variance
3rd Qtr
Variance
2010
2009
Variance
$ in millions except rent per unit
Average Daily Occupancy
96.7
%
95.3
%
1.4
%
96.0
%
0.7
%
96.1
%
94.1
%
2.0
%
Average Rent Per Unit
$1,045
$1,053
-0.8
%
$1,044
0.1
%
$1,021
$1,055
-3.2
%
Revenue
$189.4
$186.4
1.6
%
$187.9
0.8
%
$641.3
$642.8
-0.2
%
Expenses
(69.6
)
(72.3
)
-3.7
%
(70.8
)
-1.7
%
(247.7
)
(250.1
)
-1.0
%
NOI
$119.8
$114.1
5.0
%
$117.1
2.4
%
$393.6
$392.7
0.2
%
Comparing Conventional Same Store results in fourth quarter 2010 with
fourth quarter 2009, total revenue increased $3.0 million, or 1.6%. The
increase in revenue was primarily the result of higher average daily
occupancy of 96.7% for fourth quarter 2010 compared to 95.3% for fourth
quarter 2009. Higher average daily occupancy was offset by lower average
rent per unit, down 0.8% or $8 per unit, from $1,053 per unit to $1,045
per unit.
New and renewal lease rates have steadily improved throughout the year.
Rental rates on new leases during the fourth quarter were higher than
expiring lease rates each month during the quarter and, on average,
fourth quarter new lease rates were 0.9% higher than expiring lease
rates. By comparison, new lease rates were 7.0% below expiring lease
rates in the first quarter, 2.3% below expiring lease rates in the
second quarter, and 1.4% below expiring lease rates in the third
quarter. For the full year, new lease rates were on average 2.3% below
expiring lease rates.
Fourth quarter renewal rates were 1.6% higher than expiring lease rates.
This compares to renewal rates that were 0.1% higher than expiring lease
rates in the first quarter, 1.9% higher than expiring lease rates in the
second quarter, and 1.5% higher than expiring lease rates in the third
quarter. For the full year, renewal rates were on average 1.5% higher
than expiring lease rates.
During fourth quarter 2010, Conventional Same Store expenses decreased
$2.7 million or 3.7%, primarily as a result of lower real estate taxes,
reductions in personnel costs, turnover expenses and marketing costs,
partially offset by higher employee-related insurance costs. Refer to
Supplemental Schedules 6a through 6c for additional details on
Conventional Same Store operating results.
Affordable Same Store Results – In fourth quarter 2010, the Affordable
Same Store portfolio included 153 communities with 18,359 units, in
which Aimco had a weighted average ownership of 65%. For the fourth
quarter 2010, average month-end occupancy for the affordable portfolio
was 97.6%, an increase of 0.7% from fourth quarter 2009, while average
rent per unit increased 3.8% from $780 to $810 per unit. During the
fourth quarter 2010, Affordable Same Store expenses decreased 6.0%
primarily as a result of lower contract services and administrative
expenses.
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 the third quarter 2010,
the most recent period for which REIS information is available, Aimco's
Conventional Property rents averaged 100% of local market average rents.
For the fourth quarter 2010, average rents for the Conventional
portfolio were $1,052 per unit, a 1.0% increase compared to fourth
quarter 2009, primarily as a result of the sale of Conventional
properties during 2010 with rents averaging 25% lower than 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 and acquisitions. During fourth quarter 2010, net
operating income generated by Conventional properties located in the 20
largest markets accounted for 84.5% of total Conventional Property net
operating income, an increase of 1.9% compared to fourth quarter 2009.
In fourth quarter 2010, Aimco sold eight Conventional properties and 12
Affordable properties with 1,877 and 1,264 units, respectively, for
$117.9 million in gross proceeds. Aimco's share of net proceeds after
distributions to limited partners, repayment of existing property debt
and transaction costs was $35.8 million.
See Supplemental Schedules 7a and 7b for additional details regarding
Aimco's portfolio quality and capital allocation, and Supplemental
Schedule 8 for additional details on disposition activity.
Partnership Transaction Activity – During fourth quarter 2010, Aimco
purchased the noncontrolling limited partners' interests in two
properties for a total of $19.9 million. Aimco purchased the
noncontrolling limited partners' 25% interest in a property located in
Alexandria, Virginia, for $19.5 million. The property has 1,222 units
and is a candidate for redevelopment in the near term.
Balance Sheet and Liquidity
AS OF DECEMBER 31, 2010
Amount
% of Total Leverage
Weighted Avg Maturity (Yrs)
Weighted Avg Rate
Aimco leverage ($ in millions)
Aimco's share of long-term, non-recourse property debt
$ 4,865.5
86
%
7.8
5.52
%
Aimco's share of other borrowings
34.5
1
%
n/a
5.33
%
Subtotal debt
4,900.0
87
%
7.8
5.52
%
Preferred securities
762.1
13
%
Perpetual
7.41
%
Total leverage
$ 5,662.1
100
%
n/a
5.78
%
See Supplemental Schedules 4a and 4b for additional details about
Aimco's non-recourse property debt and Supplemental Schedule 5 for
information related to Aimco's preferred securities.
Aimco's recourse debt at December 31, 2010, was limited to its revolving
credit facility, which Aimco uses for working capital purposes and to
secure letters of credit. At the end of fourth quarter, Aimco had no
outstanding borrowings on its revolving credit facility and available
capacity was $260.3 million, net of $39.7 million of letters of credit
backed by the facility.
Aimco's fourth quarter EBITDA Coverage of Interest and EBITDA Coverage
of Interest and Preferred Dividends ratios were 2.07:1 and 1.68:1,
compared to third quarter 2010 ratios of 2.05:1 and 1.67:1,
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 fourth quarter 2010, Aimco's
Debt Service and Fixed Charge Coverage ratios were 1.57:1 and 1.33:1,
compared to covenants in place during the quarter of 1.40:1 and 1.20:1,
respectively, and third quarter 2010 ratios of 1.58:1 and 1.34:1. Aimco
expects to remain in compliance with these covenants.
During fourth quarter 2010, Aimco issued 600,000 shares under its
At-the-Market (ATM) offering program at a weighted average price of
$24.50 per share, generating $14.4 million in proceeds. The proceeds
from the ATM offering were used primarily to fund the cash portion of
the acquisition of the noncontrolling limited partners' 25% interest in
the Alexandria, Virginia property described above.
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 December 31,
2010. The dividend is payable February 28, 2011 to shareholders of
record on February 18, 2011.
2011 Outlook
FIRST QUARTER
FULL YEAR
Net loss per share
-$0.36 to -$0.40
-$1.30 to -$1.40
Pro forma FFO per share
$0.33 to $0.37
$1.46 to $1.56
Conventional Same Store Operating Measures
NOI change compared to fourth quarter 2010
-4.0% to -3.0%
NOI change compared to same period 2010
3.5% to 4.5%
2.5% to 4.5%
Average daily occupancy
95.5% - 96.5%
Revenue change compared to 2010
2.0% to 3.0%
Expense change compared to 2010
0.5% to 1.5%
Total Portfolio NOI Change Compared to 2010
2.0% to 4.0%
Asset Management and Tax Credit Activities
Recurring Revenue
$32 million
Recurring Expenses
$8 million
Non-Recurring Revenue
$3 million
Non-Recurring Expenses, including pursuit costs of $2 million
$3 million
Offsite Costs
Property Management Expenses
$43 million
General and Administrative Expenses
$50 million
Capital Expenditures
Conventional Redevelopment
$50 to $75 million
Property Upgrades
$30 to $45 million
Transaction Activities
Gross Acquisitions
None
Gross Dispositions
$350 to $400 million
GrossPartnership Tenders and Mergers
$250 to $300 million
Property Debt Activity
Floating rate property debt to be refinanced at fixed rates*
$170 million
Spread between 2010 in-place floating rates and future fixed rates*
425 basis points
* As of December 31, 2010, approximately $276.9 million of fixed-rate
debt was subject to floating rate total rate of return swaps that mature
in 2012. During 2010, Aimco refinanced certain of the loans subject to
the swaps, replacing such loans with long-dated, fixed-rate property
debt, and expects to do the same in 2011 with certain other loans
subject to the swaps. The average interest rate associated with the
total rate of return swaps was 1.58% at December 31, 2010. These
activities are expected to increase interest expense in 2011 by $0.06
per share when compared to 2010.
Pro forma Funds from Operations Reconciliation
The following table represents a reconciliation of full year 2010 Pro
forma FFO to the midpoint of Aimco's guidance for full year 2011 Pro
forma FFO provided in the preceding table.
$ per Share (at the midpoint)
2010 Pro forma FFO
$1.51
Total portfolio NOI growth
0.13
Offsite costs, including G&A
0.09
Preferred stock dividends
0.02
2010 and 2011 asset sales
(0.12
)
Total return swap refinancings
(0.06
)
Reduction in non-recurring revenues
(0.05
)
Lower interest income due to repayments
(0.03
)
Other
0.02
Midpoint of 2011 Pro forma FFO Guidance
$1.51
Conventional Same Store Revenue Detail
The following table represents the assumptions used by Aimco in its 2011
guidance for Conventional Same Store revenue growth of 2.0% to 3.0%.
Conventional Same Store Revenue Growth (at the midpoint)
Earn in of 2010 leases (New Leases ? 2.3%, Renewals ?1.5%)
0.4%
2011 Projected renewal and new lease rate growth of 3.6%*
1.6%
Other
0.5%
Midpoint of 2011 Guidance
2.5%
* In establishing guidance, Aimco has taken into consideration 2011
revenue growth in its markets as projected by third party data
providers, which estimates currently range from 3.1% to 6.2%. Aimco
projects that 2011 revenue growth at the low end of this range would
produce 2011 Conventional Same Store revenue growth of approximately
2.3%, or 20 basis points less than the midpoint of Aimco's guidance of
2.5%. Revenue growth at the high end of the third party estimate range
would produce 2011 Conventional Same Store revenue growth of
approximately 3.7%, or 120 basis points greater than the midpoint of
guidance of 2.5%.
2011 Property Tour Schedule
Management will be hosting property tours in the following cities on the
dates indicated. Additional details will be communicated in the coming
months.
Markets
Dates
Atlanta/Miami
April 6th – 7th
Philadelphia/Washington DC
July 13th – 14th
Southern California
October 4th – 5th
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 768 communities serving approximately 500,000 residents
in 43 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.
Glossary and 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.
Earnings Conference Call
Aimco's fourth quarter 2010 earnings conference call will be held
Friday, February 4, 2011, at 1:00 p.m. Eastern time.
Live Conference Call
Domestic Dial-In Number: 1-866-843-0890
International Dial-In Number: 1-412-317-9250
Passcode: 0315855
Conference Call Replay
Domestic Dial-In Number: 1-877-344-7529
International Dial-In Number: 1-412-317-0088
Passcode: 447230
The conference call replay will be available until 5:00 p.m. Eastern
time on February 11, 2011.
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 first 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,
2009, 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.
Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2010
2009
2010
2009
REVENUES:
Rental and other property revenues
$
281,474
$
269,362
$
1,109,381
$
1,081,250
Asset management and tax credit revenues
11,994
17,384
35,553
49,853
Total revenues
293,468
286,746
1,144,934
1,131,103
OPERATING EXPENSES:
Property operating expenses
125,004
122,742
510,179
506,803
Investment management expenses
3,508
3,060
14,487
15,779
Depreciation and amortization
108,722
110,746
426,060
427,666
Provision for operating real estate impairment losses
65
694
352
2,329
General and administrative expenses
14,351
13,033
53,365
56,640
Other expenses, net
7,882
5,769
9,982
14,950
Restructuring costs
-
8,661
-
11,241
Total operating expenses
259,532
264,705
1,014,425
1,035,408
Operating income
33,936
22,041
130,509
95,695
Interest income
3,616
1,709
11,131
9,091
Provision for losses on notes receivable
(665
)
(21,097
)
(949
)
(21,549
)
Interest expense
(79,577
)
(78,016
)
(312,576
)
(312,534
)
Equity in losses of unconsolidated real estate partnerships
(11,313
)
(2,983
)
(23,112
)
(11,401
)
Gain on dispositions of unconsolidated real estate and other
5,265
3,754
10,675
21,570
Loss before income taxes and discontinued operations
(48,738
)
(74,592
)
(184,322
)
(219,128
)
Income tax benefit
6,792
11,117
18,433
17,487
Loss from continuing operations
(41,946
)
(63,475
)
(165,889
)
(201,641
)
Income from discontinued operations, net [1]
7,734
68,430
76,265
156,841
Net (loss) income
(34,212
)
4,955
(89,624
)
(44,800
)
Noncontrolling interests:
Net loss (income) attributable to noncontrolling interests in
consolidated real estate partnerships
11,506
2,223
13,301
(22,541
)
Net income attributable to preferred noncontrolling interests in
Aimco Operating Partnership
(1,672
)
(1,730
)
(4,964
)
(6,288
)
Net loss attributable to common noncontrolling interests in
Aimco Operating Partnership
2,915
758
9,559
9,355
Total noncontrolling interests
12,749
1,251
17,896
(19,474
)
Net (loss) income attributable to Aimco
(21,463
)
6,206
(71,728
)
(64,274
)
Net income attributable to Aimco preferred stockholders
(16,964
)
(12,935
)
(53,590
)
(50,566
)
Net loss attributable to Aimco common stockholders
$
(38,427
)
$
(6,729
)
$
(125,318
)
$
(114,840
)
Weighted average common shares outstanding - basic and diluted
116,683
115,871
116,369
114,301
Earnings (loss) per common share - basic and diluted:
Loss from continuing operations attributable to Aimco common
stockholders
$
(0.36
)
$
(0.57
)
$
(1.48
)
$
(1.78
)
Income from discontinued operations attributable to Aimco
stockholders
0.03
0.51
0.40
0.78
Net loss attributable to Aimco common stockholders
$
(0.33
)
$
(0.06
)
$
(1.08
)
$
(1.00
)
Notes to Consolidated Statements of Operations
[1] Income from discontinued operations consists of the following
(in thousands):
Three Months Ended
Year Ended
December 31,
December 31,
2010
2009
2010
2009
Rental and other property revenues
$
4,027
$
31,673
$
42,394
$
217,472
Property operating and other expenses
(2,578
)
(19,365
)
(22,988
)
(120,109
)
Depreciation and amortization
(1,136
)
(10,443
)
(10,773
)
(67,902
)
Provision for operating real estate impairment losses
(3,411
)
(13,817
)
(12,674
)
(54,530
)
Operating loss
(3,098
)
(11,952
)
(4,041
)
(25,069
)
Interest income
57
59
271
362
Interest expense
(815
)
(5,797
)
(7,330
)
(42,220
)
Gain on extinguishment of debt
-
-
-
259
Loss before gain on dispositions of real estate and income taxes
(3,856
)
(17,690
)
(11,100
)
(66,668
)
Gain on dispositions of real estate
20,537
88,365
94,901
221,770
Income tax (expense) benefit
(8,947
)
(2,245
)
(7,536
)
1,739
Income from discontinued operations, net
$
7,734
$
68,430
$
76,265
$
156,841
Income from discontinued operations attributable to:
Noncontrolling interests in consolidated real estate partnerships
$
(3,716
)
$
(4,240
)
$
(25,843
)
$
(61,650
)
Noncontrolling interests in Aimco Operating Partnership
(404
)
(4,627
)
(3,518
)
(6,882
)
Total noncontrolling interests
(4,120
)
(8,867
)
(29,361
)
(68,532
)
Aimco
$
3,614
$
59,563
$
46,904
$
88,309
Consolidated Balance Sheets
(in thousands) (unaudited)
December 31, 2010
December 31, 2009
ASSETS
Buildings and improvements
$
7,328,734
$
7,130,309
Land
2,139,431
2,121,044
Accumulated depreciation
(2,934,912
)
(2,540,026
)
Net real estate
6,533,253
6,711,327
Cash and cash equivalents
111,325
81,260
Restricted cash
201,406
218,660
Accounts receivable
49,855
59,822
Accounts receivable from affiliates
8,392
23,744
Deferred financing costs
48,032
50,282
Notes receivable from unconsolidated real estate partnerships
10,896
14,295
Notes receivable from non-affiliates
126,726
125,269
Investment in unconsolidated real estate partnerships
59,282
105,324
Other assets
170,663
185,890
Deferred income tax asset, net
58,736
42,015
Assets held for sale
-
288,580
Total assets
$
7,378,566
$
7,906,468
LIABILITIES AND EQUITY
Non-recourse property tax-exempt bond financing
$
514,506
$
574,926
Non-recourse property loans payable
4,943,277
4,761,493
Term loan
-
90,000
Other borrowings
47,018
53,057
Total indebtedness
5,504,801
5,479,476
Accounts payable
27,322
29,819
Accrued liabilities and other
250,106
286,328
Deferred income
150,815
178,878
Security deposits
35,322
34,052
Liabilities related to assets held for sale
-
246,556
Total liabilities
5,968,366
6,255,109
Preferred noncontrolling interests in Aimco Operating Partnership
83,428
86,656
Preferred stock subject to repurchase agreement
20,000
30,000
Equity:
Perpetual preferred stock
657,601
660,500
Class A Common Stock
1,176
1,165
Additional paid-in capital
3,070,882
3,072,665
Accumulated other comprehensive loss
(2,076
)
(1,138
)
Notes due on common stock purchases
(586
)
(1,392
)
Distributions in excess of earnings
(2,680,955
)
(2,492,082
)
Total Aimco equity
1,046,042
1,239,718
Noncontrolling interests in consolidated real estate partnerships
291,458
316,177
Common noncontrolling interests in Aimco Operating Partnership
(30,728
)
(21,192
)
Total equity
1,306,772
1,534,703
Total liabilities and equity
$
7,378,566
$
7,906,468
Apartment Investment and Management Company Investor Relations,
303-691-4350 Investor@Aimco.com or Elizabeth
Coalson, Vice President Investor Relations 303-691-4327
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