Apartment Investment and Management : First Quarter 2025 Earnings Release & Supplemental Information

Published: 2025-05-08 17:08:40 ET AIV

Published on 05/08/2025 at 17:08

Page

Earnings Release

Outlook

Consolidated Statements of Operations

Consolidated Balance Sheets

Schedule 1 - EBITDAre and Adjusted EBITDAre

Schedule 2 - Aimco Leverage and Maturities

Schedule 3 - Aimco Portfolio

Schedule 4 - Aimco Capital Additions

Schedule 5 - Aimco Development and Redevelopment Project Summaries

Schedule 6 - Stabilized Operating Properties

Schedule 7 - Acquisitions, Dispositions, and Leased Communities

Schedule 8 - Net Asset Value Components

Glossary and Reconciliations of Non-GAAP Financial and Operating Measures

Aimco's net loss attributable to common stockholders per share, on a fully dilutive basis, was $(0.10) for the quarter ended March 31, 2025.

Net Operating Income ("NOI") from Aimco's Stabilized Operating Properties was $25.1 million in the first quarter 2025, up 2.7% year-over-year.

Wes Powell, Aimco President and Chief Executive Officer, comments:

"We continue to see strong demand for rental housing across the Aimco portfolio.

"At our stabilized properties, primarily located in suburban Boston and Chicago, average revenue per home is now greater than $2,300 per month and effective rental rate growth accelerated in April, increasing 5.8% over the prior lease. In addition, 2025 average daily occupancy has remained strong through April at greater than 97%, in line with 2024.

"In April, we completed the lease-up of our luxury single-family-rental community in Corte Madera, California and expect to reach stabilized occupancy later this quarter. Aimco's two newly constructed apartment communities in the Washington, D.C. market remain on track to reach stabilized occupancy by year end. Leasing at these properties has been in line with expectations thus far through 2025 and they are well positioned given their high quality and the broad customer segments they attract.

"Aimco has one development project currently under construction, financed in partnership with a leading investment firm and located on Miami's waterfront. The ultra-luxury tower remains on schedule and budget, with more than 97% of the project having been bought out and pricing protected via a guaranteed maximum price construction contract.

"In addition, the Aimco balance sheet remains strong and flexible, with appropriate liquidity and contractual options extending our debt's weighted average maturity to more than five years.

"We remain committed to accretive and disciplined capital allocation. During the first quarter, Aimco returned

$0.60 per share to stockholders in the form of a special dividend, an amount representing the net proceeds received from 2024 asset sales. Further, the previously announced $520 million contract to sell Aimco's assets located on Brickell Bay Drive in Miami, Florida ("the Brickell Assemblage") is scheduled to close later this year with the buyer having increased its non-refundable deposit to $43 million. Additionally, and in collaboration with Aimco's Board and advisory team, we continue to actively explore opportunities to further unlock and maximize stockholder value.

"Finally, Aimco's performance is made possible by a committed team and proven platform which has recently been selected to receive several awards for culture, engagement, and performance. I offer my sincere appreciation for the team's commitment to create value for Aimco stockholders, their fellow teammates and the communities in which we operate."

Aimco's Stabilized Operating revenue, expenses, and NOI increased 2.7%, 2.7%, and 2.7%, respectively, year-over-year in the first quarter, with average daily occupancy flat year-over-year at 97.9% and average monthly revenue per apartment home increasing by 2.7% to $2,309.

Aimco's three recently completed residential development projects currently in lease-up, containing a total of 933 units, remain on plan to reach stabilized occupancy in 2025.

In March, the buyer, with which Aimco is under agreement to sell the Brickell Assemblage for $520 million, exercised a contractual closing extension option that required its non-refundable deposit to be increased by $5 million, from $38 million to $43 million.

In January, Aimco paid a special cash dividend of $0.60 per share to stockholders, distributing the net proceeds from 2024 asset sales.

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.

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

First Quarter

Stabilized Operating Properties

Year-over-Year

Sequential

($ in millions)

2025

2024

Variance

4Q 2024

Variance

Average Daily Occupancy

97.9%

Revenue, before utility reimbursements

$35.6

$34.6

2.7%

$35.5

0.1%

Expenses, net of utility reimbursements

10.5

10.2

2.7%

9.6

9.6%

Net operating income (NOI)

25.1

24.4

2.7%

25.9

(3.4)%

Revenue in the first quarter 2025 was $35.6 million, up 2.7% year-over-year, resulting from a 2.7% increase in average monthly revenue per apartment home to $2,309 and Average Daily Occupancy of 97.9%, flat year-over-year.

Effective rents during the first quarter 2025 were 5.2% higher, on average, than the previous lease, with new leases up 4.6% and renewals up 6.6%. For residents whose leases were expiring, 62.7% signed renewals. In April, effective rents were 5.8% higher, on average, than the previous lease.

The median annual household income of new residents was $120,600 in the first quarter 2025, representing a rent-to-income ratio of 21%.

Expenses in the first quarter 2025 were up 2.7% year-over-year and 9.6% compared to the fourth quarter 2024, primarily due to seasonal related expenses and higher real estate taxes expected from 2025 property assessments and prior period adjustments recorded in the fourth quarter 2024.

NOI in the first quarter 2025 was $25.1 million, up 2.7% year-over-year.

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 March 31, 2025, 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 Area, and Colorado's Front Range.

During the first quarter, $20.6 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:

In Upper Northwest Washington D.C., all 689 apartment homes at Upton Place were delivered in 2024 and construction is substantially complete. As of April 30, 2025, 413 units were leased or pre-leased and 344 were occupied. Additionally, as of April 30, 2025, approximately 92% of the project's 105K square feet of retail space had been leased with our two large anchor tenants open for business.

In Bethesda, Maryland, all 220 of the highly tailored apartment homes at the first phase of Strathmore Square were delivered in 2024 and construction is substantially complete. As of April 30, 2025, 132 units had been leased or pre-leased and 109 were occupied.

In Corte Madera, California, construction is complete at Oak Shore. As of April 30, 2025, the ultra-luxury single-family rental community was 96% leased, with 22 of the 24 homes occupied.

In Miami's Edgewater neighborhood, construction remains on schedule and budget at 34th Street, an ultra-luxury waterfront residential tower that will include rental homes averaging more than 2,500 square feet, with oversized private terraces, top-of-the-line finishes, and unobstructed views of Biscayne Bay. As of April 30, 2025, more than 97% of the project has been bought out with pricing protected via a guaranteed maximum price construction contract. Aimco expects to welcome the first residents in 3Q 2027 and to stabilize occupancy in 4Q 2028.

In the first quarter 2025, Aimco invested $1.4 million into programming, design, documentation, and entitlement efforts primarily related to its 901 North development site, located in Fort Lauderdale, Florida.

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.

In December 2024, Aimco entered into an agreement to sell, during 2025, the Brickell Assemblage for a gross price of $520 million.

The buyer's initial non-refundable deposit of $38 million was increased in March 2025 to $43 million in exchange for the buyer extending closing to August of 2025, as allowed under the terms of the contract.

The sale remains subject to certain closing conditions and one remaining extension option that would extend closing at the buyer's option to the fourth quarter of 2025, with such extension requiring the buyer to further increase its non-refundable deposit.

Prior to closing, the buyer has the right to exercise an option to finance, for a period of 18 months, up to $115 million of the purchase price with a transferable seller financing note from Aimco. If exercised, the purchase price increases by $20 million, to $540 million, and the note would carry an annual interest rate of 12%.

Net proceeds from the transaction, accounting for the associated property-level debt and deferred tax liability, are estimated to range from $300 to $320 million depending on the buyer's election regarding seller financing. Upon receipt, Aimco intends to return the majority of the net proceeds from the transaction to stockholders.

Aimco is highly focused on maintaining a strong balance sheet, including ample liquidity. As of March 31, 2025, Aimco had access to $225.2 million, including $49.1 million of cash on hand, $27.6 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 March 31, 2025, was as follows:

as of March 31, 2025

Aimco Share, $ in thousands

Amount

Weighted Avg. Maturity (Yrs.) [1]

Total non-recourse fixed rate debt

693,506

6.5

Total non-recourse construction loan debt

397,573

2.4

Total property debt secured by assets held for sale

159,226

Cash and restricted cash

(76,417

)

Net Leverage

1,173,888

Weighted average maturities presented exclude contractual extension rights.

As of March 31, 2025, 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.

On December 19, 2024, Aimco's Board of Directors declared a $0.60 per share special cash dividend to distribute the net proceeds from 2024 asset sales to stockholders. The dividend was paid on January 31, 2025, to holders of record as of January 14, 2025.

In January, prior to the $0.60 dividend distribution and Aimco's Board of Directors announcing the expansion of its strategic review process, Aimco repurchased 29,498 shares of its common stock at a weighted average price of $8.66 per share. Since the start of 2022, Aimco has repurchased 14.5 million shares.

In the first quarter 2025, Aimco Operating Partnership redeemed 11,477 units of its equity securities for cash at a weighted average price of $9.22 per unit, inclusive of the $0.60 dividend distribution.

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 Aimco's assets and investment platform. This disconnect has limited Aimco's ability to fund new investment opportunities and accelerate growth.

Therefore, Aimco's Board of Directors announced its decision to explore additional alternatives in an effort to further unlock and maximize stockholder value. The strategic process has expanded upon Aimco's ongoing efforts such as reducing exposure to development activity and monetizing certain assets, and includes, but is not limited to, the 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 Directors' guiding principle is to produce an outcome that delivers maximum value to Aimco stockholders. 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.

1Q 2025

2025

$ in millions (except per share amounts) Forecast is full year unless otherwise noted

Results

Forecast

Net income (loss) per share - diluted [1]

$(0.10)

$1.50 - $1.60

Operating Properties

Revenue Growth, before utility reimbursements

2.7%

2.5% - 3.5%

Operating Expense Growth, net of utility reimbursements

2.7%

5.0% - 6.0%

Net Operating Income Growth

2.7%

1.0% - 3.0%

Recurring Capital Expenditures

$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

Direct Project Costs on Active Developments [3]

$15

$50 - $60

Direct Planning Costs [4]

$7 - $10

Real Estate Transactions

Acquisitions

None

Dispositions [5]

None

$520 - $540

General and Administrative

$33 - $34

Leverage

Interest Expense, net of capitalization [6]

$16

$63 - $65

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

Includes land or leasehold value.

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.

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

Includes the Brickell Assemblage which is under contract to sell in 2025. Aimco does not provide specific guidance regarding future transactions prior to a contract being executed and the buyer's deposit becoming nonrefundable.

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.

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.

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.

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 https://www.aimco.com.

Aimco has a national presence with corporate headquarters in Denver, Colorado and Washington, D.C. Our investment platform is managed by experienced regional professionals who leverage in-depth local market knowledge, 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.

Matt Foster, Vice President, Investor Relations and Capital Markets Investor Relations 303-793-4661, [email protected]

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; the impact of tariffs and global trade disruptions on us; 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.

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

Three Months Ended

March 31,

2025

2024

REVENUES:

Rental and other property revenues

52,352

50,203

OPERATING EXPENSES:

Property operating expenses

23,065

21,199

Depreciation and amortization

16,421

19,468

General and administrative expenses

8,180

8,549

Total operating expenses

47,666

49,216

Interest income

2,092

2,648

Interest expense

(17,438

)

(13,370

)

Realized and unrealized gains (losses) on interest rate contracts

(261

)

1,672

Realized and unrealized gains (losses) on equity investments

(397

)

(271

)

Other income (expense), net

(479

)

(1,592

)

Income (loss) before income tax benefit

(11,797

)

(9,926

)

Income tax benefit (expense)

2,730

Net income (loss)

(11,712

)

(7,196

)

Net (income) loss attributable to redeemable noncontrolling interests in consolidated real estate partnerships

(2,673

)

(3,560

)

Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships

(296

)

Net (income) loss attributable to common noncontrolling interests in Aimco Operating Partnership

765

554

Net income (loss) attributable to Aimco

(13,916

)

(10,186

)

Net income (loss) attributable to common stockholders per share - basic

(0.10

)

(0.07

)

Net income (loss) attributable to common stockholders per share - diluted

(0.10

)

(0.07

)

Weighted-average common shares outstanding -basic

136,903

140,594

Weighted-average common shares outstanding -diluted

136,903

140,594

(in thousands) (unaudited)

March 31,

December 31,

2025

2024

Assets

Buildings and improvements

1,372,255

1,348,925

Land

397,968

398,182

Total real estate

1,770,223

1,747,107

Accumulated depreciation

(513,868

)

(499,274

)

Net real estate

1,256,355

1,247,833

Cash and cash equivalents

49,147

141,072

Restricted cash

27,575

31,367

Notes receivable

59,360

58,794

Right-of-use lease assets - finance leases

107,395

107,714

Other assets, net

97,004

94,051

Assets held for sale, net

275,929

276,079

Total assets

1,872,765

1,956,910

Liabilities and Equity

Non-recourse property debt, net

685,226

685,420

Non-recourse construction loans, net

397,769

385,240

Total indebtedness

1,082,995

1,070,660

Deferred tax liabilities

101,721

101,457

Lease liabilities - finance leases

122,882

121,845

Dividends payable

1,006

89,182

Accrued liabilities and other

101,276

100,849

Liabilities related to assets held for sale, net

160,331

160,620

Total liabilities

1,570,211

1,644,613

Redeemable noncontrolling interests in consolidated real estate partnerships

146,391

142,931

Equity:

Common Stock

1,372

1,364

Additional paid-in capital

426,309

425,002

Retained earnings (deficit)

(317,195

)

(303,409

)

Total Aimco equity

110,486

122,957

Noncontrolling interests in consolidated real estate partnerships

39,600

39,560

Common noncontrolling interests in Aimco Operating Partnership

6,077

6,849

Total equity

156,163

169,366

Total liabilities and equity

1,872,765

1,956,910

(in thousands) (unaudited)

Three Months Ended

March 31, 2025

Twelve Months Ended

March 31, 2025

Net income (loss)

(11,712

)

(100,516

)

Adjustments:

Interest expense

17,438

74,124

Income tax (benefit) expense

(85

)

(8,427

)

Gains on dispositions of real estate

(10,749

)

Unrealized (gains) losses from investment in unconsolidated partnerships

2,597

Depreciation and amortization

16,421

83,312

Adjustment related to EBITDAre of unconsolidated partnerships

312

970

EBITDAre

22,374

41,311

Net (income) loss attributable to redeemable noncontrolling interests consolidated real estate partnerships

(2,673

)

(13,071

)

Net (income) loss attributable to noncontrolling interests consolidated real estate partnerships

(296

)

1,537

EBITDAre adjustments attributable to noncontrolling interests

(328

)

(4,006

)

Mezzanine investment (income) loss, net

1,804

Realized and unrealized (gains) losses on interest rate contracts

261

181

Unrealized (gains) losses on passive equity investments

397

49,012

Adjusted EBITDAre

19,735

76,768

(dollars in thousands) (unaudited)

Aimco Share of

Total

Weighted Average

Interest Rate

Debt

Consolidated

Unconsolidated

Partnerships

Noncontrolling

Interests

Aimco

Maturity

(Years) [2]

Stated

Capped

Fixed rate loans payable

689,521

3,985

693,506

6.5

4.39

Floating rate loans payable

Construction loan debt

405,096

(7,523

)

397,573

2.4

7.40

7.28

Total non-recourse debt [1]

1,094,617

3,985

(7,523

)

1,091,079

5.0

5.50

5.46

Property debt secured by assets held for

sale

159,226

Revolving Credit Facility

Cash and restricted cash

(76,722

)

305

(76,417

)

Net Leverage

1,177,121

3,985

(7,218

)

1,173,888

Excludes property debt secured by assets held for sale

Average Rate on Maturing Debt

Amortization

Maturities [2]

Total

Maturities as a Percent of Total

Stated

Capped

2025 2Q

489

21,221

21,710

1.94

8.74

7.91

2025 3Q

494

2025 4Q

498

128,320

128,818

11.76

8.79

8.57

Total 2025

1,481

149,541

151,022

13.70

8.78

8.47

2026 1Q

503

2026 2Q

507

2026 3Q

512

2026 4Q

517

Total 2026

2,039

2027

2,115

2028

2,195

242,195

244,390

22.20

6.61

2029

2,277

179,646

181,923

16.46

4.66

2030

2,363

2031

1,696

104,508

106,204

9.58

3.20

2032

112

221,639

221,751

20.31

4.62

2033

173,435

15.90

4.60

Thereafter

5,837

0.53

3.25

Total Aimco Share

14,278

1,076,801

1,091,079

Common Stock, Partnership Units, and Equivalents

(in thousands) (unaudited)

March 31, 2025

Class A Common Stock Outstanding

137,161

Participating unvested restricted stock

2,400

Potentially dilutive options, share equivalents, and non-participating unvested restricted stock

2,464

Total shares and potentially dilutive share equivalents

142,025

Common Partnership Units and equivalents outstanding

9,103

Total shares, units and potentially dilutive share equivalents [3]

151,128

Consolidated total non-recourse debt excludes $11.6 million of deferred financing costs.

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 5.3 years.

Represents outstanding Common Stock and Common Partnership units, forfeitable time-based restricted equity awards, options for which dilution is computed based on quarter-end stock price, and the impact of forfeitable market-based equity awards based on stock price performance through March 31, 2025. See Note 4 to Aimco's First Quarter 2025 SEC Form 10-Q, filed May 8, 2025 and Note 11 to Aimco's 2024 SEC Form 10-K, filed February 24, 2025 for more information.

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

Number of

Properties

Number of Apartment

Homes [5]

Office and

Retail Sq Ft

Hotel

Keys

Development

Land [6]

Consolidated

Stabilized Operating Properties

5,243

26.4

Other Real Estate [1]

106

Development and Redevelopment - Owned [2]

1,023

121.1

Development and Redevelopment - Land [3]

20.8

Development and Redevelopment - Leased

Held for Sale [4]

357

295.7

Total Consolidated

6,647

443.2

106

20.8

Unconsolidated

142

Total Portfolio

6,789

443.2

106

20.8

Total Consolidated (Aimco Share)

6,636

442.7

106

19.5

Total Unconsolidated (Aimco Share)

Total Portfolio (Aimco Share)

6,709

442.7

106

19.5

Other Real Estate includes:

The Benson Hotel and Faculty Club on the Anschutz Medical Campus in Aurora, Colorado.

Development and Redevelopment - Owned includes:

34th Street a 114-unit apartment building being constructed in Miami, Florida with 7,000 square feet of retail, Upton Place a 689-unit substantially completed development in Upper Northwest Washington, D.C. with 105,053 square feet of retail, and Strathmore Square a substantially complete 220-unit apartment community with 9,000 square feet of retail in Bethesda, Maryland.

Development and Redevelopment - Land includes:

Flying Horse, developable land in Colorado Springs, Colorado;

One land parcel in Miami, Florida for potential future development adjacent to 34th Street;

One land parcel along Broward Boulevard and the land in Flagler Village in Fort Lauderdale, Florida for potential future developments; and

One land parcel for multifamily development on the Anschutz Medical Campus in Aurora, Colorado.

As of March 31, 2025, Aimco's 1001 Brickell Bay Drive office tower and Yacht Club Apartments were classified as Held for Sale.

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

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.

(consolidated amounts in thousands) (unaudited)

Three Months Ended

March 31, 2025

Capital Replacements and Casualty

2,738

Property Upgrades

Tenant Improvements

Development and Redevelopment

20,609

Total Capital Additions [1]

23,447

First quarter 2025 total capital additions include $15.8 million of Direct Capital Investment ($14.4 million on active projects and $1.4 million on projects in planning) and certain other costs capitalized in accordance with GAAP.

(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

54%

105,053

92%

4Q 2023

4Q 2025

4Q 2026

Strathmore Square

Bethesda, MD

220

53%

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

83%

4Q 2023

2Q 2025

2Q 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

46.3

165.4

Oak Shore

Lease-up

100%

6.1

47.5

Total

$152.1

$657.7

$490.8

$166.9

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

The ground lease for Upton Place is presented at its initial GAAP value recorded at the formation of the joint venture. To-date spend includes accrual adjustments as we finalize the project which is nearing completion with approximately $1.0 million of remaining investment expected.

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

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

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.

Aimco equity ownership presented as estimated upon construction completion, net of debt and ground lease financing, unless otherwise noted.

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.

Occupancy timing and stabilization are estimates subject to change.

(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

Southeast Florida

300 Broward Boulevard (Fort Lauderdale)

300 Broward [3]

2.31

1,700,000

935

40,000

2026

901 N Federal Highway (Fort Lauderdale)

901 North (Flagler Village Phase I)

5.70

1,830,000

690

230,000

2026

510-532 NE 34th Street (Miami)

One Edgewater

0.50

533,000

204

2027

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 [3]

1.35

525,000

399

11,000

2026

Colorado's Front Range

E 23rd Avenue & N Scranton Street (Aurora)

Fitzsimons 4 [3]

1.77

415,000

285

2026

1765 Silversmith Road (Colorado Springs)

Flying Horse

7.45

300,000

2026

E 23rd Avenue & N Scranton Street (Aurora)

Bioscience 4

1.53

232,000

225,000

2026

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 March 31, 2025, was under contract to sell.

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

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.

Owned in a joint venture structure.

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

1Q 2025 v. 1Q 2024

Revenues, Before Utility

Reimbursements

Expenses, Net of Utility

Reimbursements

Net Operating Income

Margin

Average Daily Occupancy

During Period

Average Revenue per

Aimco Apartment

Home

Apartment Communities

Apartment Homes

1Q 2025

1Q 2024

Growth

1Q 2025

1Q 2024

Growth

1Q 2025

1Q 2024

Growth

1Q 2025

1Q 2024

2025

2024

Boston

2,719

17,546

16,888

3.9

4,681

4,549

2.9

12,865

12,339

4.3

73.3%

98.3%

98.2%

2,188

2,109

Chicago

1,495

10,486

10,255

2.3

3,025

2,952

2.5

7,461

7,303

2.2

71.2%

97.8%

98.1%

2,390

2,332

New York City

150

2,189

2,091

4.7

1,058

967

9.4

1,131

1,124

0.6

51.7%

99.7%

98.8%

4,878

4,704

Other Markets [1]

879

5,352

5,401

(0.9

1,746

1,769

(1.3

3,606

3,632

(0.7

67.4%

96.6%

96.8%

2,101

2,116

Total

5,243

35,573

34,635

2.7

10,510

10,237

2.7

25,063

24,398

2.7

70.5%

97.9%

2,309

2,249

1Q 2025 v. 4Q 2024

Revenues, Before Utility

Reimbursements

Expenses, Net of Utility

Reimbursements

Net Operating Income

Margin

Average Daily Occupancy

During Period

Average Revenue per

Aimco Apartment

Home

Apartment Communities

Apartment Homes

1Q 2025

4Q 2024

Growth

1Q 2025

4Q 2024

Growth

1Q 2025

4Q 2024

Growth

1Q 2025

4Q 2024

2025

2024

Boston

2,719

17,546

17,429

0.7

4,681

4,147

12.9

12,865

13,282

(3.1

73.3%

98.3%

98.1%

2,188

2,177

Chicago

1,495

10,486

10,626

(1.3

3,025

2,989

1.2

7,461

7,637

(2.3

71.2%

97.8%

98.8%

2,390

2,397

New York City

150

2,189

2,160

1.3

1,058

961

10.1

1,131

1,199

(5.7

51.7%

99.7%

98.8%

4,878

4,859

Other Markets [1]

879

5,352

5,324

0.5

1,746

1,494

16.9

3,606

3,830

(5.8

67.4%

96.6%

95.6%

2,101

2,111

Total

5,243

35,573

35,539

0.1

10,510

9,591

9.6

25,063

25,948

(3.4

70.5%

97.9%

2,309

2,307

[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.

(dollars in millions) (unaudited)

No transactions were completed during the first quarter 2025.

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

Net Assets

1Q 2025

Annualized NOI for Stabilized Operating Properties [1]

100.3

Annualized NOI for unconsolidated real estate at AIV share [1]

2.9

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]

15.9

Cash and cash equivalents

49.1

Restricted cash

27.6

Notes receivable [5]

59.4

Fair value adjustment on fixed rate property debt & preferred equity

42.8

Expected proceeds from assets held for sale [6]

520.0

Non-recourse property debt, net [7]

689.5

Non-recourse construction loans, net [7]

405.1

Liabilities associated with assets held for sale, including debt and income taxes [6]

220.0

Preferred equity interests

146.4

Investment remaining to complete active developments and redevelopments [2]

166.9

Amounts drawn on Aimco's revolving secured credit facility

Other liabilities, net

131.7

Common Stock, Partnership Units and Equivalents (in millions)

Total shares, units and dilutive share equivalents

151.1

Noncontrolling interests in real estate [8]

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

See Supplemental Schedule 5 for additional details.

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.

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 1Q 2025 GAAP fair value.

Notes receivables presented at book value.

As of March 31, 2025, Aimco was under contract to sell its 1001 Brickell Bay Drive and Yacht Club Apartments. Included in the liabilities are $159 million of property level loans, approximately $60 million of cash tax (included on Aimco's 1Q 2025 balance sheet with a GAAP value of $101.7 million) and transaction costs.

Amounts presented exclude deferred financing costs.

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

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.

Three Months Ended

Segment Capital Additions Reconciliation

March 31, 2025

Total Capital additions (per Note 8 in Aimco's 10-Q)

23,115

Adjustment: Incidental revenues and other adjustments that reduce capital expenditures for GAAP

332

Total Capital Additions (per Schedule 4)

23,447

gains and losses on the dispositions of depreciated property;

impairment write-downs of depreciated property;

impairment write-downs of investments in unconsolidated partnerships caused by a decrease in the value of the depreciated property in such partnerships; and

adjustments to reflect the Aimco share of EBITDAre of investments in unconsolidated entities.

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.

net income or loss attributable to noncontrolling interests in consolidated real estate partnerships and EBITDAre adjustments attributable to noncontrolling interests;

the amount of realized and unrealized gains or losses recognized by Aimco on its interest rate contracts, to allow investors to compare a measure of Aimco's earnings before the effects of Aimco's capital structure and indebtedness with that of other companies in the real estate industry;

the amount of unrealized gains or losses recognized by Aimco on passive equity investments; and

the amount of non-cash investment income or loss recognized by Aimco related to the mezzanine loan made by Aimco to a partnership owning Parkmerced Apartments.

Other liabilities, net as of March 31, 2025, as presented in Supplemental Schedule 8, Net Asset Value Components, is calculated as follows (in millions):

Accrued Liabilities and Other (per Consolidated Balance Sheet)

101.3

Dividends payable

1.0

Lease liabilities - finance leases (per Consolidated Balance Sheet)

122.9

Other assets, net (per Consolidated Balance Sheet)

(97.0

)

Total

128.2

Reduction in assets (reported elsewhere on Schedule 8):

IQHQ and Real Estate Tech Funds

15.9

Unconsolidated real estate partnerships

15.2

Deferred tax assets

5.9

Reduction in liabilities (GAAP amount not reflective of value):

Mezzanine Investment - Participation Sold

(33.5

)

Other liabilities, net (per Schedule 8)

131.7

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)

March 31, 2025

March 31, 2024

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)

52,352

23,065

50,203

21,199

Adjustment: Stabilized Operating utilities reimbursement

(1,707

)

(1,707

)

(1,730

)

(1,730

)

Adjustment: Other Real Estate

(1,446

)

(2,089

)

(1,187

)

(1,763

)

Adjustment: Non-stabilized and other amounts not allocated [2]

(13,626

)

(8,759

)

(12,651

)

(7,469

)

Total Stabilized Operating (per Schedule 6)

35,573

10,510

34,635

10,237

Approximately two-thirds of Aimco's utility costs at stabilized properties are reimbursed by residents. Utility 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.

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.

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, 2024 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.

Disclaimer

AIMCO - Apartment Investment & Management Company published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 20:41 UTC.