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Section 1: 8-K (8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________________________
FORM 8-K
_____________________________________________
CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) May 2, 2019
_____________________________________________
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
(Exact name of registrant as specified in its charter)
_____________________________________________
MARYLAND
 
1-13232
 
84-1259577
(State or other jurisdiction
 
(Commission
 
(I.R.S. Employer
of incorporation or organization)
 
File Number)
 
Identification No.)
4582 SOUTH ULSTER STREET
SUITE 1100, DENVER, CO 80237
_____________________________________________
(Address of principal executive offices)
  
(Zip Code)
 
Registrant’s telephone number, including area code: (303) 757-8101
NOT APPLICABLE
 (Former name or Former Address, if changed since last report)
_____________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company o
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the exchange act. o
Securities registered pursuant to section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Aimco Investment and Management Company Class A Common Stock
AIV
New York Stock Exchange






ITEM 2.02.    Results of Operations and Financial Condition.
The earnings release of Apartment Investment and Management Company (“Aimco”), dated May 2, 2019, attached hereto as Exhibit 99.1 is furnished herewith. Aimco will hold its first quarter 2019 earnings conference call on May 3, 2019, at 1:00 p.m. Eastern time. You may join the conference call through an internet webcast accessed through Aimco’s website at investors.aimco.com. Alternatively, you may join the conference call by telephone by dialing 888-317-6003, or 412-317-6061 for international callers, and using passcode 9077982. If you wish to participate, please call approximately five minutes before the conference call is scheduled to begin.
If you are unable to join the live conference call, you may access the replay until August 3, 2019, by dialing 877-344-7529, or 412-317-0088 for international callers, and using passcode 10130487, or you may access the audiocast replay on Aimco’s website at investors.aimco.com. Please note that the full text of the earnings release and supplemental schedules are available through Aimco’s website at investors.aimco.com. The information contained on Aimco’s website is not incorporated by reference herein.
ITEM 9.01.     Financial Statements and Exhibits.
The following exhibits are furnished with this report:
Exhibit Number
Description
First Quarter 2019 Earnings Release dated May 2, 2019

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: May 2, 2019

APARTMENT INVESTMENT AND MANAGEMENT COMPANY


/s/ Paul Beldin
___________________________________________
Paul Beldin
Executive Vice President and Chief Financial Officer



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
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Page
 
Earnings Release
 
 
 
Consolidated Statements of Operations
 
 
 
Consolidated Balance Sheets
 
 
 
 
Schedule 1    –   Funds From Operations and Adjusted Funds From Operations Reconciliation
 
 
 
Schedule 2    –   Funds From Operations and Adjusted Funds From Operations Information
 
 
 
Schedule 3    –   Property Net Operating Income
 
 
 
 
Schedule 4    –   Apartment Home Summary
 
 
 
Schedule 5    –   Capitalization and Financial Metrics
 
 
 
Schedule 6    –   Same Store Operating Results
 
 
 
Schedule 7    –   Portfolio Data by Market
 
 
 
Schedule 8    –   Apartment Community Disposition and Acquisition Activity
 
 
 
Schedule 9    –   Capital Additions Information
 
 
 
Schedule 10  –   Redevelopment and Development Portfolio
 
 
 
Glossary and Reconciliations of Non-GAAP Financial and Operating Measures





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Aimco Reports First Quarter Results
Denver, Colorado, May 2, 2019 - Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today first quarter results for 2019.
Chairman and Chief Executive Officer Terry Considine comments: “Aimco has started 2019 with solid results, the product of an intentional strategy to create Net Asset Value per share. In our Same Store portfolio, we maintained 97.0% occupancy for the entire quarter, increased net operating income by 5.5%, and posted peer-leading net operating income margins of 73.2%. In Redevelopment, we started the renovation of 707 Leahy, located in Redwood City, California; adding another start to this highly accretive business. In Portfolio Management, we sold seven apartment communities at prices above our internal estimated gross asset values for proceeds sufficient to complete the paired trade funding for the value-creating share repurchases in last year’s fourth quarter. And last month, we acquired One Ardmore, the fifth and final community in the Philadelphia portfolio acquisition announced one year ago.”
Chief Financial Officer Paul Beldin adds: “First quarter 2019 AFFO of $0.55 per share and Pro forma FFO of $0.61 per share were $0.02 and $0.01 ahead of the midpoint of our respective guidance ranges due to better than expected operating results at our Same Store, Redevelopment and Acquisition communities and the timing of general and administrative expenses. First quarter Same Store revenue growth of 4.2% was ahead of the assumptions underpinning the midpoint of our full-year 2019 revenue growth guidance of 3.3%, leaving us well positioned as we enter the important summer leasing season.”
“Aimco’s balance sheet is safe and liquid, which creates opportunity and flexibility. Aimco used proceeds from first quarter sales to pay down borrowings on our revolving credit facility, ending the quarter with cash on hand of $198 million and the capacity to borrow $723 million under our revolving credit facility. On April 1, we prepaid, at par, $168 million of property-level debt maturing during the third quarter of 2019. This repayment of debt added $740 million of property value to Aimco’s pool of unencumbered properties, now estimated at $3.3 billion.”
Financial Results: First Quarter Pro forma FFO Up 3%; AFFO Up 2%
 
FIRST QUARTER
(all items per common share - diluted)
2019
 
2018
 
Variance
Net income
$
1.88

 
$
0.54

 
248
%
Pro forma Funds From Operations (Pro forma FFO)
$
0.61

 
$
0.59

 
3
%
Deduct Capital Replacements
$
(0.06
)
 
$
(0.05
)
 
20
%
Adjusted Funds From Operations (AFFO)
$
0.55

 
$
0.54

 
2
%
Net Income (per diluted common share) - Year-over-year, first quarter net income increased primarily due to higher gains on the sale of apartment communities.
Pro forma FFO (per pro forma diluted common share) - Aimco’s first quarter Pro forma FFO per share increased $0.02 year-over-year due to the following items:
$0.04 from Same Store Property Net Operating Income growth of 5.5%, driven by a 4.2% increase in revenue, offset by a 0.8% increase in expenses;
$0.05 from Net Operating Income contributions from redevelopment communities and 2018 property acquisitions; and
$0.01 lower interest expense; offset by
($0.08) contribution eliminated following the 2018 sale of the Asset Management business and sales in 2018 and 2019 of apartment communities to fund Aimco’s investment activities.

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Adjusted Funds from Operations (per pro forma diluted common share) - AFFO per share increased $0.01 year-over-year due to the $0.02 increase in Pro forma FFO, offset $0.01 by an acceleration of capital replacement spending as compared to the previous year. For the full year, Aimco expects total capital replacement spending to decline year-over-year as the Aimco portfolio continues to be upgraded with Aimco capital invested in fewer, but more valuable, properties.
Operating Results: First Quarter Same Store NOI Up 5.5%
 
FIRST QUARTER
 
Year-over-Year
Sequential
 
2019
2018
Variance
4th Qtr.
Variance
Average Rent per Apartment Home
$2,041
$1,977
3.2
%
$2,031
0.5
%
Other Income per Apartment Home
124
120
3.3
%
126
(1.6
%)
Average Revenue per Apartment Home
$2,165
$2,097
3.2
%
$2,157
0.4
%
Average Daily Occupancy
97.0
%
96.1
%
0.9
%
97.0
%
%
 
 
 
 
 
 
$ in Millions
 
 
 
 
 
Revenue, before utility reimbursements
$175.7
$168.6
4.2
%
$175.1
0.4
%
Expenses, net of utility reimbursements
47.1
46.8
0.8
%
43.9
7.3
%
NOI
$128.6
$121.8
5.5
%
$131.2
(1.9
%)
Same Store Rental Rates - 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 as a renewal. The table below details changes in new and renewal lease rates.
2019
Jan
Feb
Mar
1st Qtr.
Renewal rent increases
4.9
%
5.3
%
5.5
%
5.2
%
New lease rent increases
(0.2
%)
1.2
%
1.5
%
0.8
%
Weighted average rent increases
2.1
%
3.1
%
3.4
%
2.9
%
Average Daily Occupancy
97.1
%
97.0
%
97.0
%
97.0
%
Redevelopment and Development
Redevelopment is Aimco’s second line of business where Aimco creates value by repositioning communities within the Aimco portfolio. Aimco also undertakes limited ground-up development when warranted by risk-adjusted investment returns, either directly or in connection with the redevelopment of an existing apartment community. Aimco invests to earn leverage-neutral risk-adjusted returns in excess of those expected from the apartment communities sold in “paired trades” to fund the redevelopment and development. Of these two activities, Aimco generally favors redevelopment because it permits adjustment of the scope and timing of spending to align with changing market conditions and customer preferences.
During the first quarter, Aimco invested $45 million in redevelopment and development. Aimco continued phased redevelopment activities in Miami at its Flamingo South Beach and Bay Parc communities, and ground-up construction at Parc Mosaic in Boulder, Colorado, The Fremont on the Anschutz Medical Campus in Denver, Colorado, and Elm Creek Townhomes in Elmhurst, Illinois.
Aimco also began a $24 million full redevelopment of 707 Leahy in Redwood City, California. This 110-home community is located in one of the most dynamic job markets in the world and benefits from higher density than permitted under the current zoning code. Aimco expects this investment to generate a Free Cash Flow internal rate of return of approximately 9%.

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Portfolio Management: Revenue Per Apartment Home Up 6% to $2,181
Aimco’s portfolio of apartment communities is diversified across “A,” “B,” and “C+” price points, averaging “B/B+” in quality and is also diversified across several of the largest markets in the United States.
As part of its portfolio strategy, Aimco seeks to sell up to 10% of its portfolio annually and to reinvest the proceeds from such sales in accretive uses such as capital enhancements, redevelopments, some developments, and selective acquisitions with projected Free Cash Flow internal rates of return higher than expected from the communities being sold. Through this disciplined approach to capital recycling, Aimco significantly increases the quality and expected growth rate of its portfolio.
 
FIRST QUARTER
 
2019
2018
Variance
Apartment Communities
128

134

(6
)
Apartment Homes
34,349

37,228

(2,879
)
Average Revenue per Apartment Home
$
2,181

$
2,052

6
%
Portfolio Average Rents as a Percentage of Local Market Average Rents
113
%
113
%
%
Percentage A (1Q 2019 Average Revenue per Apartment Home $2,839)
52
%
49
%
3
%
Percentage B (1Q 2019 Average Revenue per Apartment Home $1,918)
32
%
35
%
(3
%)
Percentage C+ (1Q 2019 Average Revenue per Apartment Home $1,727)
16
%
16
%
%
NOI Margin
72
%
71
%
1
%
Free Cash Flow Margin
67
%
66
%
1
%
First Quarter Portfolio - For its entire portfolio, Aimco’s average monthly revenue per apartment home was $2,181 for first quarter 2019, a 6% increase compared to first quarter 2018. This increase is due to year-over-year growth in Same Store revenue as well as Aimco’s acquisition activities, lease-up of redevelopment communities, and sales of communities with average monthly revenues per apartment home lower than those of the retained portfolio.
Acquisitions - Aimco evaluates potential acquisitions with an eye for unique and opportunistic investments and funds acquisitions pursuant to its strict “paired trade” discipline.
In the first quarter, Aimco made no acquisitions.
In April, Aimco closed the $65 million acquisition of One Ardmore, the fifth and final community included in the Philadelphia portfolio acquisition announced one year ago. This 110-home community is located in the heart of one of Philadelphia’s Main Line suburbs and most desirable submarkets. Aimco acquired One Ardmore at the completion of construction, and expects the community to be fully occupied before year-end.
Dispositions - In the first quarter, Aimco sold seven apartment communities with 2,206 apartment homes for gross proceeds of $409 million. Proceeds, net of debt repayment and transaction costs, were $340 million. Three communities are located in suburban Chicago, one in Alexandria, Virginia, one in Virginia Beach, Virginia, and two in Nashville, Tennessee. Proceeds from the sales were used to complete the leverage-neutral, “paired trade” funding for the fourth quarter 2018 common stock repurchases.

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Balance Sheet
Aimco Leverage
Aimco’s leverage strategy seeks to increase financial returns by using leverage with appropriate caution. Aimco limits risk through its balance sheet structure, employing low leverage, primarily non-recourse and long-dated property debt; and Aimco builds financial flexibility by maintaining ample unused and available credit as well as holding properties with substantial value unencumbered by property debt; and uses partners’ capital when it enhances financial returns or reduces investment risk.
Aimco total leverage includes the Aimco share of long-term, non-recourse, property debt encumbering apartment communities, outstanding borrowings under its revolving credit facility, and outstanding preferred equity.
 
AS OF MARCH 31, 2019
$ in Millions
Amount
% of Total
Weighted Avg. Maturity (Yrs.)
Aimco share of long-term, non-recourse property debt
$
3,870

96
%
7.8
Outstanding borrowings on revolving credit facility
70

2
%
2.8
Pro forma Preferred Equity*
101

2
%
40.0**
Pro forma Total Leverage*
$
4,041

100
%
8.5**
Pro forma cash, restricted cash and investments in securitization trust assets*
(162
)
 
 
Net Leverage
$
3,879

 
 
*
Aimco has adjusted Preferred Equity and cash on a pro forma basis to reflect the redemption of its Class A Perpetual Preferred Stock as if it had been redeemed with cash on hand on March 31, 2019.
**
Aimco’s Preferred Equity is perpetual in nature; however, for illustrative purposes, Aimco has computed the weighted average maturity of its Pro forma Total Leverage assuming a 40-year maturity for its Preferred Equity. Aimco has calculated the weighted average maturity of its Pro forma Total Leverage assuming that its Class A Perpetual Preferred Stock, which on April 15, 2019 Aimco called for redemption on May 16, 2019, was redeemed on March 31, 2019.
Leverage Ratios
Aimco target leverage ratios are Proportionate Debt and Preferred Equity to Adjusted EBITDAre below 7.0x and Adjusted EBITDAre to Interest Expense and Preferred Dividends greater than 2.5x. Aimco calculates Adjusted EBITDAre and Adjusted Interest Expense used in its leverage ratios based on current quarter amounts, annualized.
Proportionate Debt to Adjusted EBITDAre
 7.0x
Proportionate Debt and Pro forma Preferred Equity to Adjusted EBITDAre
 7.2x
Adjusted EBITDAre to Pro forma Adjusted Interest Expense
 3.3x
Adjusted EBITDAre to Pro forma Adjusted Interest Expense and Pro forma Preferred Dividends
 3.2x
Aimco’s leverage ratios have been calculated on a pro forma basis. Please refer to Supplemental Schedule 5 and the Glossary for additional information and supporting calculations.

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During first quarter 2019, Aimco retitled its Adjusted EBITDA measure to Adjusted EBITDAre in its calculation of leverage ratios. The computation of Adjusted EBITDAre has been modified from Aimco’s prior measure to include the amortization of debt issuance costs as a component of interest expense in both the computation of Adjusted Interest Expense and Adjusted EBITDAre. The impact of this change is less than 0.1x to each ratio. Aimco also added to the Glossary a reconciliation of Net Income to EBITDAre, as defined by Nareit.
Liquidity
At March 31, 2019, Aimco held cash and restricted cash of $198 million and had the capacity to borrow $723 million under its revolving credit facility, after consideration of $7 million of letters of credit backed by the facility. Aimco uses its credit facility primarily for working capital and other short-term purposes and to secure letters of credit.
Aimco also manages its financial flexibility by maintaining an investment grade rating and holding apartment communities that are unencumbered by property debt. At March 31, 2019, Aimco held unencumbered apartment communities with an estimated fair market value of approximately $2.5 billion. In April 2019, Aimco prepaid, at par, $168 million of property-level debt maturing during the third quarter 2019, increasing the estimated value of its pool of unencumbered apartment communities by $740 million to $3.3 billion.
Equity Capital Activities
As previously announced, on February 3, 2019, Aimco's Board of Directors declared a special dividend valued at $2.02 per share of common stock that consisted of $67.1 million in cash and 4.5 million shares of common stock, which was distributed on March 22, 2019.
In order to facilitate comparisons with previous periods, Aimco authorized a reverse split to neutralize the effect of the stock dividend. Taken together, the total number of shares outstanding after the stock dividend and reverse-split was unchanged by the two actions.
On April 29, 2019, the Aimco Board of Directors declared a quarterly cash dividend of $0.39 per share of Class A Common Stock for the quarter ended March 31, 2019, representing an increase of 3% compared to the dividends paid in second quarter 2018. This dividend is payable on May 31, 2019, to stockholders of record on May 17, 2019.

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2019 Outlook
Aimco is herein maintaining Full Year guidance established in the Fourth Quarter 2018 Earnings Release.

($ Amounts represent Aimco Share)
YEAR-TO-DATE MARCH 31, 2019
FULL YEAR 2019
 
 
 
 
Net Income per share
$1.88
$3.13 to $3.63
Pro forma FFO per share
$0.61
$2.41 to $2.51
AFFO per share
$0.55
$2.12 to $2.22
 
 
 
Select Components of Nareit FFO
 
 
Same Store Operating Measures
 
 
Revenue change compared to prior year
4.2%
2.80% to 3.80%
Expense change compared to prior year
0.8%
2.00% to 3.00%
NOI change compared to prior year
5.5%
2.70% to 4.50%
 
 
 
Other Earnings
 
 
Tax Benefit
$4M
$7M to $9M
 
 
 
Offsite Costs
 
 
Property management expenses
$5M
$20M
General and administrative expenses
$10M
$47M
Total Offsite Costs
$15M
$67M
 
 
 
Capital Investments
 
 
Redevelopment/Development
$45M
$225M to $275M
Capital Enhancements
$16M
$80M to $100M
 
 
 
Transactions
 
 
Property dispositions
$409M
$750M to $850M
Property acquisitions [1]
$0M
$65M
 
 
 
Portfolio Quality
 
 
Average revenue per apartment home
$2,181
~$2,220
 
 
 
Balance Sheet
 
 
Proportionate Debt to Adjusted EBITDAre [2]
 7.0x
~6.7x
Proportionate Debt and Preferred Equity to Adjusted EBITDAre [2]
 7.2x
~6.9x
[1]
Aimco does not predict or guide to acquisitions. Full year 2019 acquisition guidance represents the purchase price for One Ardmore, which was acquired in April 2019. Aimco monitors potential transactions with an eye for unique and opportunistic investments and funds acquisitions pursuant to its strict “paired trade” discipline.
[2]
Aimco has calculated pro forma leverage ratios at March 31, 2019 assuming that its Class A Perpetual Preferred Stock, which on April 15, 2019 Aimco called for redemption on May 16, 2019, was redeemed March 31, 2019.
($ Amounts represent Aimco Share)
SECOND QUARTER 2019
 
 
Net income per share
$0.39 to $0.43
Pro forma FFO per share
$0.57 to $0.61
AFFO per share
$0.48 to $0.52

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Earnings Conference Call Information
Live Conference Call:
Conference Call Replay:
Friday, May 3, 2019 at 1:00 p.m. ET
Replay available until August 3, 2019
Domestic Dial-In Number: 1-888-317-6003
Domestic Dial-In Number: 1-877-344-7529
International Dial-In Number: 1-412-317-6061
International Dial-In Number: 1-412-317-0088
Passcode: 9077982
Passcode: 10130487
Live webcast and replay: investors.aimco.com
Supplemental Information
The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco’s website at investors.aimco.com.
Glossary & Reconciliations of Non-GAAP Financial and Operating Measures
Financial and operating measures found in this Earnings Release and the Supplemental Information include certain financial measures used by Aimco management that are measures not defined under accounting principles generally accepted in the United States, or GAAP. Certain Aimco terms and Non-GAAP measures are defined in the Glossary in the Supplemental Information and Non-GAAP measures reconciled to the most comparable GAAP measures.
About Aimco
Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with ownership interests in 129 communities in 17 states and the District of Columbia. 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.
Contact
Matt Foster, Director, Investor Relations
Investor Relations 303-793-4661, investor@aimco.com

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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 second quarter and full year 2019 results, including but not limited to: Nareit FFO, Pro forma FFO and selected components thereof; AFFO; Aimco redevelopment and development investments and projected yield on such investments, timelines and Net Operating Income contribution; expectations regarding sales of Aimco apartment communities and the use of proceeds thereof; and Aimco liquidity and leverage metrics.
These forward-looking statements are based on management’s judgment as of this date, which is subject to risks and uncertainties. Risks and uncertainties include, but are not limited to: Aimco’s ability to maintain current or meet projected occupancy, rental rate and property operating results; the effect of acquisitions, dispositions, redevelopments and developments; Aimco’s ability to meet budgeted costs and timelines, and achieve budgeted rental rates related to Aimco redevelopment and development investments; expectations regarding Aimco sales of apartment communities and the use of proceeds thereof; and Aimco’s ability to comply with debt covenants, including financial coverage ratios.
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 Aimco’s control, including, without limitation:
Real estate and operating risks, including fluctuations in real estate values and the general economic climate in the markets in which Aimco operates 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 of acquisitions, dispositions, redevelopments and developments; and changes in operating costs, including energy costs;
Financing risks, including the availability and cost of capital markets’ financing; the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; and the risk that earnings may not be sufficient to maintain compliance with debt covenants;
Insurance risks, including the cost of insurance, and natural disasters and severe weather such as hurricanes; and
Legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of governmental regulations that affect Aimco and interpretations of those regulations; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently or previously owned by Aimco.
In addition, Aimco’s 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 Aimco’s 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, 2018, 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.

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Consolidated Statements of Operations
 
 
 
 
(in thousands, except per share data) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
REVENUES
 
 
 
 
Rental and other property revenues attributable to real estate
 
$
230,235

 
$
225,393

Asset Management business rental and tax credit revenues
 

 
22,327

Total revenues
 
230,235

 
247,720

 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
Property operating expenses attributable to real estate
 
79,184

 
78,287

Property operating expenses of partnerships served by Asset Management business
 

 
9,195

Depreciation and amortization
 
93,565

 
92,548

General and administrative expenses
 
10,369

 
11,355

Other expenses, net
 
5,703

 
2,958

Total operating expenses
 
188,821

 
194,343

 
 
 
 
 
Interest income
 
2,726

 
2,172

Interest expense
 
(41,409
)
 
(47,795
)
Gain on dispositions of real estate
 
291,473

 
53,195

Other, net
 
72

 
224

Income before income tax (expense) benefit
 
294,276

 
61,173

Income tax (expense) benefit
 
(2,981
)
 
34,517

Net income
 
291,295

 
95,690

Noncontrolling interests:
 
 
 
 
Net income attributable to noncontrolling interests in consolidated real estate partnerships
 
(91
)
 
(6,206
)
Net income attributable to preferred noncontrolling interests in Aimco OP
 
(1,934
)
 
(1,937
)
Net income attributable to common noncontrolling interests in Aimco OP
 
(15,137
)
 
(3,755
)
Net income attributable to noncontrolling interests
 
(17,162
)
 
(11,898
)
Net income attributable to Aimco
 
274,133

 
83,792

Net income attributable to Aimco preferred stockholders
 
(2,148
)
 
(2,148
)
Net income attributable to participating securities
 
(417
)
 
(119
)
Net income attributable to Aimco common stockholders
 
$
271,568

 
$
81,525

 
 
 
 
 
Net income attributable to Aimco per common share – basic and diluted
 
$
1.88

 
$
0.54

 
 
 
 
 
Weighted average common shares outstanding – basic [1]
 
144,232

 
151,872

 
 
 
 
 
Weighted average common shares outstanding – diluted [1]
 
144,445

 
152,000

 
 
 
 
 
[1]
2018 basic and diluted weighted average common shares outstanding have been restated to reflect the impact of the February 20, 2019, reverse stock split. Basic and diluted weighted average common shares outstanding were 156,609 and 156,740, respectively, as previously reported for the three months ended March 31, 2018.

397779147_builcom-2018q3a02.jpg
10

397779147_portraita-2018q3a02.jpg

Consolidated Balance Sheets
(in thousands) (unaudited)
 
 
 
March 31,
 
December 31,
 
 
 
2019
 
2018
Assets
 
 
 
 
Real estate
 
$
8,225,519

 
$
8,308,590

Accumulated depreciation
 
(2,581,666
)
 
(2,585,115
)
Net real estate
 
5,643,853

 
5,723,475

Cash and cash equivalents
 
162,286

 
36,858

Restricted cash
 
36,103

 
35,737

Goodwill
 
37,808

 
37,808

Other assets
 
403,719

 
313,733

Assets held for sale
 

 
42,393

Total Assets
 
$
6,283,769

 
$
6,190,004

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
Non-recourse property debt
 
$
3,879,453

 
$
3,937,000

Debt issue costs
 
(20,430
)
 
(21,695
)
Non-recourse property debt, net
 
3,859,023

 
3,915,305

Revolving credit facility borrowings
 
70,000

 
160,360

Accrued liabilities and other
 
293,279

 
226,230

Liabilities related to assets held for sale
 

 
23,177

 
 
 
 
 
 
Total Liabilities
 
4,222,302

 
4,325,072

 
 
 
 
 
 
Preferred noncontrolling interests in Aimco OP
 
101,195

 
101,291

Equity:
 
 
 
 
Perpetual preferred stock
 
125,000

 
125,000

Class A Common Stock
 
1,488

 
1,446

Additional paid-in capital
 
3,495,295

 
3,515,686

Accumulated other comprehensive income
 
4,851

 
4,794

Distributions in excess of earnings
 
(1,742,998
)
 
(1,947,507
)
Total Aimco equity
 
1,883,636

 
1,699,419

Noncontrolling interests in consolidated real estate partnerships
 
(2,857
)
 
(2,967
)
Common noncontrolling interests in Aimco OP
 
79,493

 
67,189

Total Equity
 
1,960,272

 
1,763,641

Total Liabilities and Equity
 
$
6,283,769

 
$
6,190,004

 
 

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11

397779147_portraita-2018q3a02.jpg

Supplemental Schedule 1
 
 
 
 
 
 
 
 
 
 
Funds From Operations and Adjusted Funds From Operations Reconciliation
(Page 1 of 2)
 
Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018
(in thousands, except per share data) (unaudited)
 
 
 
 
 
 
Aimco believes that Economic Income (defined as Net Asset Value, or NAV, growth plus dividends) is an important measure of long-term financial performance. NAV is used by many investors because the value of company assets can be readily estimated, even for non-earning assets such as land or properties under development. NAV has the advantage of incorporating the investment decisions of thousands of real estate investors, enhancing comparability among companies that have differences in their accounting, and avoiding disparity that can result from application of GAAP to investment properties and various ownership structures. Some investors focus on multiples of AFFO and FFO. Aimco’s disclosure of AFFO and FFO complements its focus on Economic Income.
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2019
 
2018
Net income attributable to Aimco common stockholders
 
$
271,568

 
$
81,525

Adjustments:
 
 
 
 
Real estate depreciation and amortization, net of noncontrolling partners’ interest
 
91,374

 
90,394

Gain on dispositions and other, net of noncontrolling partners’ interest
 
(291,473
)
 
(47,023
)
Income tax adjustments related to gain on dispositions and other tax-related items [1]
 
6,526

 
(30,720
)
Common noncontrolling interests in Aimco OP’s share of above adjustments
 
10,249

 
(557
)
Amounts allocable to participating securities
 
316

 
(15
)
Nareit FFO Attributable to Aimco common stockholders
 
$
88,560

 
$
93,604

Adjustments, all net of common noncontrolling interests in Aimco OP and participating securities:
 
 
 
 
Litigation, net [2]
 
25

 
349

Change in lease accounting [3]
 

 
(707
)
Straight-line rent [4]
 
2,307

 

Pro forma FFO Attributable to Aimco common stockholders
 
$
90,892

 
$
93,246

Capital Replacements, net of common noncontrolling interests in Aimco OP and participating securities
 
(9,711
)
 
(9,060
)
AFFO Attributable to Aimco common stockholders
 
$
81,181

 
$
84,186

 
 
 
 
 
 
Weighted average common shares outstanding - basic
 
144,232

 
151,872

Dilutive common share equivalents
 
213

 
128

Total shares and dilutive share equivalents used to calculate Net income and Nareit FFO per share
 
144,445

 
152,000

 
Adjustment to weight reverse stock split [5]
 
3,888

 
4,740

Pro forma shares and dilutive share equivalents used to calculate Pro forma FFO and AFFO per share
 
148,333

 
156,740

 
 
 
 
 
 
 
Net income attributable to Aimco per common share – diluted
 
$
1.88

 
$
0.54

 
Nareit FFO per share – diluted
 
$
0.61

 
$
0.62

 
Pro forma FFO per share – diluted
 
$
0.61

 
$
0.59

 
AFFO per share – diluted
 
$
0.55

 
$
0.54
















Please see the following page for footnote descriptions


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12

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Supplemental Schedule 1
 
 
 
 
 
 
 
 
 
 
Funds From Operations and Adjusted Funds From Operations Reconciliation
(Page 2 of 2)
[1]
Income taxes related to gain on dispositions and other items for the three months ended March 31, 2018, included a $33.6 million tax benefit related to an intercompany transfer of assets related to the Asset Management business, which was sold in July 2018. Upon completion of the sale the deferred tax asset that resulted from the intercompany transaction was realized. Accordingly, Aimco excluded the benefit related to the reorganization from Nareit FFO.
[2]
During 2018, Aimco was engaged in litigation with Airbnb, which was resolved in December 2018. Due to the unpredictable nature of these proceedings, related amounts recognized, net of income tax effect, are excluded from Pro forma FFO. These costs are included in other expenses, net, on Aimco’s Consolidated Statements of Operations.
[3]
Effective January 1, 2019, Aimco adopted accounting guidance that changed how Aimco recognizes costs incurred to obtain resident leases. For comparability of Pro forma FFO between periods, Aimco has recast 2018 as if the new standard was effective January 1, 2018. AFFO, which Aimco uses to measure profitability, is unchanged by the new standard.
[4]
In 2018, Aimco assumed a 99-year ground lease with scheduled rent increases. Due to the terms of the lease, GAAP rent expense will exceed cash rent payments until 2076. Aimco includes the cash rent payments for this ground lease in Pro forma FFO, but excludes the incremental straight-line non-cash rent expense. The rent expense for this lease is included in other expenses, net, on Aimco’s Consolidated Statements of Operations.
[5]
During first quarter 2019, Aimco completed a reverse stock split and a special dividend paid primarily in stock. For stock splits, GAAP requires the restatement of weighted average shares as if the reverse stock split occurred at the beginning of the period presented; while shares issued in the special dividend are included in weighted average shares outstanding from the date issued. To minimize confusion and facilitate comparison of period-over-period Pro forma FFO and AFFO, Aimco calculated pro forma weighted average shares for first quarter 2019 based on the effective date of the reverse stock split and ex-dividend date for the shares issued in the special dividend, thereby eliminating the per share impact of the GAAP treatment to Aimco’s reported Pro forma FFO and AFFO.

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13

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Supplemental Schedule 2(a)
 
 
 
 
 
Funds From Operations and Adjusted Funds From Operations Information
 
(Page 1 of 2)

Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018
(consolidated amounts, in thousands) (unaudited)
 
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
Real Estate [1]
 
 
 
 
Revenues, before utility reimbursements
 
 
 
 
Same Store
 
$
176,405

 
$
169,274

Redevelopment/Development
 
20,414

 
18,145

Acquisition
 
9,993

 
1,580

Other Real Estate
 
9,508

 
9,353

Total revenues, before utility reimbursements
 
216,320

 
198,352

Expenses, net of utility reimbursements
 
 
 
 
Same Store
 
47,316

 
46,958

Redevelopment/Development
 
7,310

 
6,522

Acquisition
 
2,853

 
523

Other Real Estate
 
3,919

 
3,880

Total expenses, net of utility reimbursements
 
61,398

 
57,883

Real Estate net operating income
 
154,922

 
140,469

 
 
 
 
 
Property management expenses
 
(5,371
)
 
(5,163
)
Casualties
 
(2,136
)
 
(1,059
)
Other (expenses) income, net
 
(3,699
)
 
165

Interest expense on non-recourse property debt [2]
 
(39,748
)
 
(41,184
)
Interest income
 
2,002

 
1,849

NOI related to Sold and Held for Sale communities [3]
 
3,635

 
12,119

Contribution from Real Estate
 
109,605

 
107,196

 
 
 
 
 
Contribution from Asset Management [4]
 

 
9,587

 
 
 
 
 
General and administrative and investment management expenses
 
(10,369
)
 
(11,355
)
Depreciation and amortization related to non-real estate assets
 
(2,081
)
 
(2,200
)
Other expenses, net
 
(1,463
)
 
(1,838
)
Interest expense on corporate borrowings
 
(1,661
)
 
(3,324
)
Tax benefit, net
 
3,545

 
3,797

Preferred dividends and distributions
 
(4,082
)
 
(4,085
)
Common noncontrolling interests in Aimco OP
 
(4,888
)
 
(4,312
)
Proportionate adjustments
 
(46
)
 
138

Nareit FFO Attributable to Aimco common stockholders
 
$
88,560

 
$
93,604

Total pro forma adjustments, net of common noncontrolling interests in Aimco OP and participating securities [5]
 
2,332

 
(358
)
Pro forma FFO Attributable to Aimco common stockholders
 
$
90,892

 
$
93,246

Capital Replacements, net of common noncontrolling interests in Aimco OP and participating securities [6]
 
(9,711
)
 
(9,060
)
AFFO Attributable to Aimco common stockholders
 
$
81,181

 
$
84,186
















Please see the following page for footnote descriptions

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14

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Supplemental Schedule 2(a) (continued)
 
 
 
 
Funds From Operations and Adjusted Funds From Operations Information
(Page 2 of 2)
[1]
Contribution from Real Estate consists of property net operating income and other items of income or expense that relate to Aimco’s portfolio, including property management expenses, casualty losses, interest expense related to non-recourse property debt encumbering the communities in this portfolio, and interest income Aimco earns on its investment in a securitization trust that holds certain Aimco property debt.
[2]
Interest expense for the three months ended March 31, 2019 and 2018 contains $0.6 million and $1.8 million, respectively, of interest expense related to sold properties.
[3]
During the first quarter, Aimco sold apartment communities in the following locations:
Location
Communities Sold
Virginia Beach, Virginia
1
Alexandria, Virginia
1
Nashville, Tennessee
2
Suburban Chicago, Illinois
3
[4]
Aimco sold its Asset Management business and interests in the partnerships served by this business in third quarter 2018.
[5]
Pro forma adjustments are comprised of the detailed adjustments presented in Supplemental Schedule 1.
[6]
Please refer to the Glossary for a reconciliation of the Capital Replacement spending used to compute AFFO to Capital Replacement spending per Supplemental Schedule 9.



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15

397779147_landscape-2018q3a02.jpg


Supplemental Schedule 2(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Partially Owned Entities
 
 
 
 
 
 
Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018
(Proportionate amounts, in thousands) (unaudited)
 
 
 
 
 
Noncontrolling Interests [1]
 
Unconsolidated [2]
 
 
 
Three Months Ended March 31,
 
Three Months Ended March 31,
 
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Revenues, before utility reimbursements
 
$
792

 
$
776

 
$
595

 
$
560

Expenses, net of utility reimbursements
 
233

 
266

 
112

 
171

 
Net operating income
 
559

 
510

 
483

 
389

 
 
 
 
 
 
 
 
 
 
Property management expenses, net
 
(34
)
 
(37
)
 
(18
)
 
(65
)
Casualties
 
3

 
5

 

 

Other Expense, net
 
(3
)
 
(21
)
 

 

Interest expense on non-recourse property debt on Real Estate Operations
 
(171
)
 
(176
)
 
(78
)
 
(82
)
NOI related to Sold Apartment Communities
 

 
(22
)
 

 

 
Contribution from Real Estate
 
354

 
259

 
387

 
242

 
 
 
 
 
 
 
 
 
 
Other non-property expenses, net
 
(22
)
 
(13
)
 

 
1

Pro forma FFO from Real Estate
 
$
332

 
$
246

 
$
387

 
$
243

 
 
 
 
 
 
 
 
 
 
Total apartment communities [3]
 
9
 
4
Total apartment homes [3]
 
3,592
 
142
Noncontrolling interests’ share of consolidated apartment homes/Aimco share of unconsolidated apartment homes [3]
 
187
 
72
[1]
Amounts represent the noncontrolling interests’ proportionate share of consolidated amounts.
[2]
Amounts represent Aimco’s proportionate share of the unconsolidated real estate partnerships’ operations.
[3]
Apartment community information excludes Sold Communities as of March 31, 2019.




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16

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Supplemental Schedule 3
 
 
 
 
 
 
 
 
 
 
 
 
Property Net Operating Income
 
 
 
 
 
 
 
 
Trailing Five Quarters
 
 
 
 
 
 
 
 
(consolidated amounts, in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
Revenues, before utility reimbursements
 
 
 
 
 
 
 
 
 
Same Store
$
176,405

 
$
175,756

 
$
174,737

 
$
172,180

 
$
169,274

Redevelopment/Development
20,414

 
20,318

 
19,944

 
18,549

 
18,145

Acquisition
9,993

 
9,356

 
10,630

 
6,358

 
1,580

Other Real Estate
9,508

 
9,525

 
9,516

 
9,419

 
9,353

Total revenues, before utility reimbursements
216,320

 
214,955

 
214,827

 
206,506

 
198,352

 
 
 
 
 
 
 
 
 
 
 
 
Expenses, net of utility reimbursements
 
 
 
 
 
 
 
 
 
Same Store
47,316

 
44,106

 
47,367

 
46,930

 
46,958

Redevelopment/Development
7,310

 
7,180

 
7,270

 
6,961

 
6,522

Acquisition
2,853

 
2,466

 
2,826

 
1,875

 
523

Other Real Estate
3,919

 
3,767

 
3,690

 
3,716

 
3,880

Total expenses, net of utility reimbursements
61,398

 
57,519

 
61,153

 
59,482

 
57,883

 
 
 
 
 
 
 
 
 
 
 
 
Property Net Operating Income
 
 
 
 
 
 
 
 
 
Same Store
129,089

 
131,650

 
127,370

 
125,250

 
122,316

Redevelopment/Development
13,104

 
13,138

 
12,674

 
11,588

 
11,623

Acquisition
7,140

 
6,890

 
7,804

 
4,483

 
1,057

Other Real Estate
5,589

 
5,758

 
5,826

 
5,703

 
5,473

Total Property Net Operating Income
$
154,922

 
$
157,436

 
$
153,674

 
$
147,024

 
$
140,469

 
 
 
 
 
 
 
 
 
 
 
 
Sold Property Net Operating Income [1]
$
3,635

 
$
6,290

 
$
7,210

 
$
12,460

 
$
12,119

 
Property net operating income in the table above excludes the Property Net Operating Income of apartment communities served by the Asset Management business, which was sold in 2018.
[1]
During the first quarter, Aimco sold apartment communities in the following locations:
Location
Communities Sold
Virginia Beach, Virginia
1
Alexandria, Virginia
1
Nashville, Tennessee
2
Suburban Chicago, Illinois
3

397779147_builcom-2018q3a02.jpg
17

397779147_portraita-2018q3a02.jpg

Supplemental Schedule 4
 
 
 
 
 
 
 
 
 
 
 
 
Apartment Home Summary
 
 
 
 
As of March 31, 2019
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
Number of
Apartment Communities
 
Number of
Apartment Homes
 
Aimco Share of Apartment Homes
 
Consolidated
 
 
 
 
 
 
 
Same Store [1]
96

 
28,039

 
27,892

 
 
Redevelopment/Development
7

 
3,373

 
3,362

 
 
Acquisition
6

 
1,480

 
1,480

 
 
Other Real Estate
15

 
1,315

 
1,286

 
Total Consolidated
124

 
34,207

 
34,020

 
Unconsolidated
4

 
142

 
72

 
Total Portfolio
128

 
34,349

 
34,092

[1]
From December 31, 2018 to March 31, 2019, on a net basis, Aimco’s Same Store portfolio increased by three apartment communities and 2,134 apartment homes. These changes consisted of:
the addition of seven redeveloped apartment communities with 2,698 apartment homes and one developed community with 310 apartment homes that were classified as Same Store upon maintaining stabilized operations for the entirety of the periods presented;
the addition of one acquired apartment community with 463 apartment homes that was classified as Same Store because Aimco has now owned it for the entirety of both periods presented;
the addition of one apartment community with 246 apartments homes, which maintained stabilized operations for the entirety of the periods presented following a casualty event;
the addition of one apartment community with 72 apartment homes that Aimco separated into a newly branded stand-alone community from an existing community previously classified as a redevelopment community, resulting in an increase of one community with no change in the total number of apartment homes;
the reduction of two apartment communities with 153 apartment homes, for which Aimco commenced redevelopment during the period and were reclassified to redevelopment and development communities;
the reduction of one apartment community with 78 apartment homes that Aimco expects to sell within 12 months; and
the reduction of five apartment communities with 1,424 apartment homes, which were sold as of March 31, 2019.



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18

397779147_portraita-2018q3a02.jpg

Supplemental Schedule 5(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization and Financial Metrics
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage Balances and Characteristics
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt
 
Consolidated
 
Aimco Share of Unconsolidated Partnerships
 
Noncontrolling Interests
 
Total Aimco Share
 
Pro forma Adjustment [1]
 
Pro forma Leverage
 
Weighted
Average
Maturity 
(Years)
 
Weighted Average Stated Interest Rate
Fixed rate loans payable
 
$
3,619,335

 
$
6,593

 
$
(16,122
)
 
$
3,609,806

 
$

 
$
3,609,806

 
8.0

 
4.19
%
Floating rate loans payable
 
245,613

 

 

 
245,613

 

 
245,613

 
4.4

 
3.69
%
Floating rate tax-exempt bonds
 
14,505

 

 

 
14,505

 

 
14,505

 
14.3

 
3.65
%
Total non-recourse property debt
 
$
3,879,453

 
$
6,593

 
$
(16,122
)
 
$
3,869,924

 
$

 
$
3,869,924

 
7.8

 
4.16
%
Revolving credit facility borrowings
 
70,000

 


 


 
70,000

 

 
70,000

 
2.8

 
3.69
%
Preferred Equity
 
226,195

 

 

 
226,195

 
(125,000
)
 
101,195

 
40.0

[2]
7.64
%
Total Leverage
 
$
4,175,648

 
$
6,593

 
$
(16,122
)
 
$
4,166,119

 
$
(125,000
)
 
$
4,041,119

 
8.5

 
4.24
%
Cash and restricted cash
 
(198,389
)
 

 
891

 
(197,498
)
 
125,000

 
(72,498
)
 
 
 
 
Securitization trust assets [3]
 
(90,064
)
 

 

 
(90,064
)
 

 
(90,064
)
 
 
 
 
Net Leverage
 
$
3,887,195

 
$
6,593

 
$
(15,231
)
 
$
3,878,557

 
$

 
$
3,878,557

 


 
 
Leverage Ratios First Quarter 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage Ratios [4]
 
Pro forma Leverage Ratios [5]
Proportionate Debt to Adjusted EBITDAre
 
6.8x
 
 7.0x
Proportionate Debt and Preferred Equity to Adjusted EBITDAre
 
7.2x
 
 7.2x
Adjusted EBITDAre to Adjusted Interest
 
3.4x
 
 3.3x
Adjusted EBITDAre to Adjusted Interest and Preferred Dividends
 
3.1x
 
 3.2x
 
 
 
 
 
Amount
 
Covenant
Fixed Charge Coverage Ratio
 
 
 
2.05x
 
1.40x
 
 
 
 
 
 
 
Credit Ratings
 
 
 
 
 
 
 
 
 
 
 
 
 
Standard and Poor’s
 
Corporate Credit Rating
 
BBB- (stable)
Fitch Ratings
 
Issuer Default Rating
 
BBB- (stable)
[1]
Aimco has calculated pro forma leverage assuming that its Class A Perpetual Preferred Stock, which on April 15, 2019 Aimco called for redemption on May 16, 2019, was redeemed on March 31, 2019.
[2]
Aimco’s Preferred Equity is perpetual in nature; however, for illustrative purposes, Aimco has computed the weighted average maturity of its total leverage assuming a 40-year maturity for its Preferred Equity.
[3]
In 2011, $673.8 million of Aimco’s loans payable were securitized in a trust holding only these loans. Aimco purchased the subordinate positions in the trust that holds these loans for $51.5 million. These investments have a face value of $100.9 million and a carrying amount of $90.1 million and are included in other assets on Aimco’s Consolidated Balance Sheet at March 31, 2019. The amount of these investments effectively reduces Aimco’s leverage.
[4]
Aimco’s Adjusted EBITDAre has been calculated on a pro forma basis to reflect the disposition of seven apartment communities during the period as if the transactions had closed on January 1, 2019. During first quarter 2019, Aimco retitled its Adjusted EBITDA measure to Adjusted EBITDAre in its calculation of leverage ratios. The computation of Adjusted EBITDAre has been modified from Aimco’s prior measure to include the amortization of debt issuance costs as a component of interest expense in both the computation of Adjusted Interest Expense and Adjusted EBITDAre. The impact of this change is less than 0.1x on each ratio. Aimco also added in the Glossary a reconciliation of Net Income to EBITDAre, as defined by Nareit.
[5]
Aimco’s ratio of Proportionate Debt and Preferred Equity to Adjusted EBITDAre has been calculated on a pro forma basis to reflect the redemption of the Class A Perpetual Preferred Stock as if it had occurred using cash on hand on March 31, 2019. Aimco’s coverage ratios, as presented in the table above, have been calculated on a pro forma basis to reflect the redemption of the Class A Perpetual Preferred Stock as if it had occurred at the beginning of the quarter.


397779147_builcom-2018q3a02.jpg
19

397779147_portraita-2018q3a02.jpg

Supplemental Schedule 5(b)
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization and Financial Metrics
 
 
 
 
 
 
As of March 31, 2019
 
 
 
 
 
(share, unit and dollar amounts in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aimco Share Non-Recourse Property Debt
 
 
 
Amortization
 
Maturities
 
Total
 
Maturities as a 
Percent of Total
 
Average Rate on
Maturing Debt
2019 2Q
 
$
19,658

 
$

 
$
19,658

 
%
 
%
2019 3Q
 
18,840

 
167,534

[1]
186,374

 
4.44
%
 
5.82
%
2019 4Q
 
19,051

 

 
19,051

 
%
 
%
Total 2019
 
57,549

 
167,534

 
225,083

 
4.44
%
 
5.82
%
 
 
 
 
 
 
 
 
 
 
 
 
2020 1Q
 
19,275

 

 
19,275

 
%
 
%
2020 2Q
 
19,462

 

 
19,462

 
%
 
%
2020 3Q
 
19,668

 

 
19,668

 
%
 
%
2020 4Q
 
19,732

 
78,930

 
98,662

 
2.09
%
 
3.88
%
Total 2020
 
78,137

 
78,930

 
157,067

 
2.09
%
 
3.88
%
 
 
 
 
 
 
 
 
 
 
 
 
2021
 
69,009

 
493,490

[2]
562,499

 
13.09
%
 
5.23
%
2022
 
65,357

 
260,671

 
326,028

 
6.92
%
 
4.65
%
2023
 
55,696

 
337,649

 
393,345

 
8.96
%
 
4.19
%
2024
 
50,039

 
319,879

 
369,918

 
8.49
%
 
3.44
%
2025
 
44,253

 
241,963

 
286,216

 
6.42
%
 
3.67
%
2026
 
36,548

 
238,734

 
275,282

 
6.33
%
 
3.61
%
2027
 
27,500

 
266,202

 
293,702

 
7.06
%
 
3.53
%
2028
 
19,354

 
305,576

 
324,930

 
8.11
%
 
3.73
%
Thereafter
 
243,275

 
311,727

 
555,002

 
8.27
%
 
4.22
%
Total
 
$
746,717

 
$
3,022,355

 
$
3,769,072

 
 
 
 
Securitization Trust Assets
 
 
 
100,852

[2]
 
 
 
Aimco share non-recourse property debt
 
$
3,869,924

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares/Units Outstanding as of March 31, 2019
 
Date First Available for Redemption by Aimco
 
Coupon
 
Amount
Class A Perpetual Preferred Stock [3]
 
5,000

 
5/16/2019
 
6.875
%
 
$
125,000

Preferred Partnership Units
 
3,809

 
 
 
7.641
%
 
101,195

Total Preferred Equity
 
 
 
 
 
7.217
%
 
$
226,195

Common Stock, Partnership Units and Equivalents
 
 
 
 
March 31, 2019
 
Class A Common Stock outstanding [4]
148,310

 
Participating unvested restricted stock
202

 
Dilutive options, share equivalents and non-participating unvested restricted stock
350

 
Total shares and dilutive share equivalents
148,862

 
Common Partnership Units and equivalents
8,397

 
Total shares, units and dilutive share equivalents
157,259

 
[1]
Non-recourse property debt maturing during the third quarter 2019 was repaid at par on April 1, 2019.
[2]
The securitized property loans mature in 2021, and will repay Aimco’s subordinate positions in the securitization trust, which reduces Aimco’s 2021 refunding requirements from $594.3 million to $493.5 million.
[3]
On April 15, 2019, Aimco called its Class A Perpetual Preferred Stock for redemption on May 16, 2019.
[4]
As previously announced, during first quarter 2019 Aimco's Board of Directors declared a special dividend valued at $2.02 per share of common stock that consisted of $67.1 million in cash and 4.5 million shares of common stock paid in the aggregate on March 22, 2019. The reverse stock split neutralized the effect of the stock issued in the special dividend, as a result total shares outstanding prior to and following both transactions were unchanged.

397779147_builcom-2018q3a02.jpg
20

397779147_landscape-2018q3a02.jpg


Supplemental Schedule 6(a)
 
Same Store Operating Results
Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018
(proportionate amounts, in thousands, except community, home and per home data) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues, Before Utility Reimbursements
 
Expenses, Net of Utility Reimbursements
 
Net Operating Income
 
 
Net Operating Income
Margin
 
Average Daily
Occupancy
During Period
 
Average
Revenue per
Aimco Apartment Home
 
 
Apartment Communities
Apartment Homes
Aimco Share of Apartment Homes
 
1Q
2019
1Q
2018
Growth
 
1Q
2019
1Q
2018
Growth
 
1Q
2019
1Q
2018
Growth
 
 
1Q
2019
 
1Q
2019
1Q
2018
 
1Q
2019
1Q
2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
3
645

645

 
$
2,695

$
2,642

2.0
%
 
$
894

$
886

0.9
%
 
$
1,801

$
1,756

2.6
%
 
 
66.8%
 
96.7%
96.8%
 
$
1,440

$
1,411

Bay Area
 
10
2,355

2,355

 
21,640

20,553

5.3
%
 
4,970

5,057

(1.7
%)
 
16,670

15,496

7.6
%
 
 
77.0%
 
97.5%
96.3%
 
3,140

3,022

Boston
 
15
4,689

4,689

 
27,123

25,859

4.9
%
 
8,783

8,757

0.3
%
 
18,340

17,102

7.2
%
 
 
67.6%
 
96.8%
95.9%
 
1,992

1,917

Chicago
 
8
2,070

2,070

 
10,765

10,433

3.2
%
 
3,103

3,097

0.2
%
 
7,662

7,336

4.4
%
 
 
71.2%
 
96.6%
95.4%
 
1,794

1,761

Denver
 
7
1,925

1,886

 
8,911

8,727

2.1
%
 
2,590

2,748

(5.7
%)
 
6,321

5,979

5.7
%
 
 
70.9%
 
96.6%
94.9%
 
1,630

1,626

Greater New York
 
8
453

453

 
4,072

3,963

2.8
%
 
1,400

1,375

1.8
%
 
2,672

2,588

3.2
%
 
 
65.6%
 
96.9%
96.5%
 
3,093

3,023

Greater Washington, DC
 
11
4,945

4,917

 
23,128

21,972

5.3
%
 
6,169

6,035

2.2
%
 
16,959

15,937

6.4
%
 
 
73.3%
 
97.7%
96.4%
 
1,606

1,545

Los Angeles
 
12
4,097

4,096

 
36,114

34,451

4.8
%
 
7,904

7,796

1.4
%
 
28,210

26,655

5.8
%
 
 
78.1%
 
97.1%
96.6%
 
3,027

2,902

Miami
 
3
873

873

 
5,706

5,603

1.8
%
 
1,421

1,529

(7.1
%)
 
4,285

4,074

5.2
%
 
 
75.1%
 
97.3%
97.9%
 
2,239

2,185

Philadelphia
 
3
1,033

954

 
6,836

6,536

4.6
%
 
1,856

1,834

1.2
%
 
4,980

4,702

5.9
%
 
 
72.8%