Table of Contents

Page

3Earnings Release

92023 Outlook

  1. Consolidated Statements of Operations
  2. Consolidated Balance Sheets
  3. Schedule 1 - EBITDAre and Adjusted EBITDAre
  4. Schedule 2 - Aimco Leverage and Maturities
  5. Schedule 3 - Aimco Portfolio
  6. Schedule 4 - Aimco Capital Additions
  7. Schedule 5 - Aimco Development and Redevelopment Project Summaries
  1. Schedule 6 - Stabilized Operating Properties
  2. Schedule 7 - Acquisitions, Dispositions, and Leased Communities
  3. Schedule 8 - Net Asset Value Components
  4. Glossary and Reconciliations of Non-GAAP Financial and Operating Measures

2

Aimco Reports Second Quarter Results, Updates Guidance, and

Provides Recent Highlights

- Apartment Investment and Management Company ("Aimco") (NYSE: AIV)Denver,announcedColoradtoday, Augustsecond7,quarter2023 results for 2023, updated guidance, and provided highlights on recent activities.

Wes Powell, Aimco President and Chief Executive Officer, comments: "Rental housing fundamentals remain

strong and the Aimco team continued to deliver solid results across our two principal lines of business: the ownership of a diversified portfolio of stabilized apartment communities and value-add investing, primarily in the development and redevelopment of multifamily properties. In addition, we made significant progress in our plans to reduce exposure to alternative assets and further bolstered what was already a solid balance sheet.

"Aimco's operating apartment communities continue to experience high demand and broadly benefit from their 'B' price point and locations within mature submarkets that face limited competitive new supply. During the first half of the year, our stabilized portfolio delivered NOI growth of 11.4% and we have increased our projection for year-over-year NOI growth by 225 basis points at the midpoint.

"Our active development projects remain on time, on budget, and are projected to produce more than $55 million of NOI annually upon stabilization, with more than half of that income expected to be online within the next 12 months. Planning and entitlement investment in Aimco's pipeline assets are adding value as we prepare sites for future development but maintain the optionality to monetize those assets at various points in the process, as needed to maximize our risk adjusted returns.

"Furthering our efforts to simplify the Aimco business and prudently allocate capital, we reduced our allocation to alternative investments during the quarter by closing on a partial sale of our Parkmerced mezzanine loan. Together with the unwinding our related interest rate swaption, we monetized $92 million and have a path to realize an additional $156 million under the terms of our agreement with the loan's purchaser.

"Also during the quarter, we proactively retired $60 million of higher-cost floating rate debt. Our balance sheet benefits from ample liquidity and attractive in place financing with minimal near-term maturities.

"The Aimco board and management team remain committed to maximizing and unlocking value for Aimco shareholders. Year to date, through July 31, we acquired more than 3.1 million shares of Aimco common stock at an average price of $7.54 per share and have authorization to purchase an additional nine million shares.

"I am thankful to work with a committed team whose relentless focus and hard work continues to result in solid performance for Aimco."

FinancialNet lossResultsattributableand Recentto commonHighligstockholdersts per share, on a fully dilutive basis, was $(0.02) for the

• quarter ended June 30, 2023, compared to net income per share of $1.57 for the same period in 2022, due primarily to the second quarter 2022 recognition of income resulting from the agreement to

Second Quarter 2023 Earnings Release and Supplemental Schedules | 3

terminate the leased property agreements with AIR Communities and gains in the same period related

•

to the sale of an apartment community.

Second Quarter 2023 revenue, expenses, and NOI from Aimco's Stabilized Operating Properties were

up 9.5%, 8.8%, and 9.8%, respectively, year-over-year, with average monthly revenue per apartment

home of $2,291, up $230 year-over-year and an average rent to income of 19.2% for new Aimco

•

residents, down 100 basis points year-over-year.

Aimco updated full year 2023 guidance for revenue, expense, and NOI from Aimco's Stabilized

Operating Properties, raising the revenue outlook after completing more than 80% of our lease

transactions for the year at favorable rates, and raising the expense outlook primarily due to higher

real estate taxes following a substantial increase in the assessed value of Yacht Club at Brickell, located

in Miami, Florida, as well as higher than anticipated insurance cost increases following our policy

renewal earlier this year. The net impact is an increase in our 2023 NOI growth of 225 bps at the

midpoint as compared to prior guidance.

Full Year 2023 Year-Over-Year Growth Rates

Stabilized Operating Properties

Revised Guidance Range

Prior Guidance Range

Low

High

Low

High

Revenue, before utility reimbursements

7.75%

-

8.75%

5.00%

-

7.00%

Expenses, net of utility reimbursements

8.00%

-

9.00%

5.25%

-

7.25%

•

Net operating income (NOI)

7.50%

-

9.00%

5.00%

-

7.00%

In June, Aimco closed on the partial sale of the Parkmerced mezzanine loan, making significant

progress on its planned reduction of capital allocated to alternative investments. In total, Aimco has

monetized $91.5 million of its Parkmerced investments and,

subject to closing the

remaining

•

investment, may realize additional proceeds of approximately $156 million.

In June, Aimco repaid a $60 million floating interest rate land loan at par, reducing the weighted

average cost of debt for Aimco's developments and

land holdings, at the

time of

payoff, by

•

approximately 90 basis points.

Aimco acquired 1.0 million shares of its common stock during the second quarter 2023 at an average

cost of $7.97 per share. Year to date, as of July 31, 2023, Aimco acquired more than 3.1 million shares

•

at an average price of $7.54 per share.

As of July 31, 2023, total shareholder return ("TSR") since the December 15, 2020 spin-off of AIR

Communities was 52.6% and year-to-date was 17.0%.

Value Add, Opportunistic & Alternative Investments

AimcoDevelopmentgenerallyandseeksRedevelopmentand 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.

Second Quarter 2023 Earnings Release and Supplemental Schedules | 4

As of June 30, 2023, Aimco had five active development and redevelopment projects located in four U.S. markets, in varying phases of construction and lease-up. These projects remain on track, as measured by construction budget and lease-up metrics. Additionally, Aimco has a pipeline of future value-add opportunities totaling approximately 14 million gross square feet of development in Aimco's target markets of Southeast Florida, the Washington D.C. Metro, and Colorado's Front Range. During the second quarter, Aimco invested

•

$81.1 million in development and redevelopment activities. Updates include:

In Miami, Florida, construction and repositioning of The Hamilton is now complete. Demand for rental

housing in Southeast Florida remains robust, especially for unique waterfront properties, such as The

Hamilton. As of July 31, 2023, 96% of the building's 276 units were leased or pre-leased at rates more

than 20% ahead of underwritten rents. Aimco now expects occupancy to stabilize in the third quarter

•

2023, ahead of prior expectations.

In Bethesda, Maryland, construction is progressing on plan at the first phase of Strathmore Square,

which will contain 220 highly tailored apartment homes with initial delivery on track for the second

half of 2024. This suburban infill project is located adjacent to the Grosvenor-Strathmore Metro station

and the Strathmore Performing Arts Campus, and is 1.5 miles from The National Institutes of Health

main campus. Funding for the $164.0 million project is fully secured with Aimco having already funded

•

100% of its equity commitment.

In upper northwest Washington D.C., construction at Upton Place continues on schedule and on

budget. Aimco began pre-leasing efforts for Upton's 689 apartment homes in July 2023 in anticipation

of initial delivery in the fourth quarter of 2023. To date, 80% of the project's 105K square feet of retail

space has been leased and Aimco has received letters of intent from, or is in lease negotiations with,

•

retailers on another 18%.

In Corte Madera, California, construction is ongoing at Oak Shore where 16 luxury single family rental

homes and eight accessory dwelling units are being developed. Aimco expects to deliver the first

•

homes in the third quarter 2023 with pre-leasing efforts underway.

In Aurora, Colorado, The Benson Hotel and Faculty Club, a 106-key boutique hotel and event center

with 18K square feet of event space, is complete and open to guests. As the only 'on campus'

accommodations, The Benson is garnering strong interest from the many departments and offices

located on the surrounding Anschutz Medical Campus, which includes The University of Colorado

Medical School, UC Health Hospital, Children's Hospital Colorado, The Rocky Mountain VA Medical

•

Center and the burgeoning Fitzsimons Innovation Community.

In the second quarter 2023, Aimco invested $5.6 million into future development pipeline projects

located in Southeast Florida, the Washington D.C. Metro, and Colorado's Front Range. Programming,

design, documentation and entitlement efforts continue. As part of Aimco's capital allocation strategy, it may choose to monetize certain pipeline assets prior to vertical construction in an effort to maximize value add and risk adjusted returns.

Second Quarter 2023 Earnings Release and Supplemental Schedules | 5

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AIMCO - Apartment Investment & Management Company published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2023 20:25:37 UTC.