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Page
Earnings Release | ||
Consolidated Statements of Operations | ||
Consolidated Balance Sheets | ||
Schedule 1a – Funds From Operations (3Q 2012 v. 3Q 2011) | ||
Schedule 1b – Funds From Operations (YTD 3Q 2012 v. YTD 3Q 2011) | ||
Schedule 2 – Portfolio Summary | ||
Schedule 3 – Net Asset Value Supplemental Information | ||
Schedule 4 – Non-Recourse Property Debt Information | ||
Schedule 5 – Share Data | ||
Schedule 6a – Conventional Same Store Operating Results (3Q 2012 v. 3Q 2011) | ||
Schedule 6b – Conventional Same Store Operating Results (3Q 2012 v. 2Q 2012) | ||
Schedule 6c – Conventional Same Store Operating Results (YTD 3Q 2012 v. YTD 3Q 2011) | ||
Schedule 6d – Conventional Same Store Operating Expense Detail | ||
Schedule 7a – Total Conventional Portfolio Data by Market (3Q 2012 v. 3Q 2011) | ||
Schedule 7b – Total Conventional Portfolio Data by Market (2Q 2012 v. Local Market Average) | ||
Schedule 8 – Property Disposition and Acquisition Activity | ||
Schedule 9 – Capital Additions | ||
Schedule 10 – Summary of Redevelopment Activity | ||
Glossary and Reconciliations |
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Aimco Reports Third Quarter 2012 Results
Denver, Colorado, November 1, 2012 - Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today its third quarter 2012 results.
Chairman and Chief Executive Officer Terry Considine comments: “We are on track for the solid execution of our 2012 plans. Conventional Same Store operating income year-to-date has increased 6.7% over last year due to consistent renewal rent gains and good success in controlling costs. Our portfolio is much improved with average rents of $1,332, up 8% year-over-year, due to investment in property upgrades, sale of lower-rated properties, and the quality of our acquisitions. We have restarted our redevelopment program with clear plans, high-quality locations and attractive expected returns. Our balance sheet is much improved with leverage reduced by approximately $700 million.”
Chief Financial Officer Ernie Freedman adds: “Third quarter Pro forma FFO of $0.46 per share exceeded the midpoint of our guidance range by $0.01 per share, primarily as a result of better than expected property operating results. At the midpoint of our guidance, we are projecting full year FFO and AFFO per share growth of approximately 11% and 31%, respectively.”
Financial Results
Third Quarter Pro forma FFO Up 12%, AFFO Up 38%
THIRD QUARTER | YEAR-TO-DATE | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income (loss) per common share | $ | 0.17 | $ | (0.12 | ) | $ | 0.11 | $ | (0.67 | ) | |||||
Funds from Operations (FFO) | $ | 0.38 | $ | 0.41 | $ | 1.15 | $ | 1.09 | |||||||
Add back (deduct) preferred equity redemption related amounts | $ | 0.08 | $ | — | $ | 0.17 | $ | (0.02 | ) | ||||||
Pro forma Funds from Operations (Pro forma FFO) | $ | 0.46 | $ | 0.41 | $ | 1.32 | $ | 1.07 | |||||||
Deduct Aimco's share of Capital Replacements | $ | (0.13 | ) | $ | (0.17 | ) | $ | (0.36 | ) | $ | (0.40 | ) | |||
Adjusted Funds From Operations (AFFO) | $ | 0.33 | $ | 0.24 | $ | 0.96 | $ | 0.67 |
Year-to-date 2011 financial results include a deduction of $0.15 per share related to debt prepayment penalties and write-off of deferred loan costs incurred in connection with a refinancing and securitization transaction during second quarter 2011. Excluding these charges, comparable year-to-date Pro forma FFO and AFFO per share were $1.22 and $0.82, respectively.
Pro forma FFO - Pro forma FFO increased 12% when compared to third quarter 2011 as a result of: improved property operating results; additional income generated by investments in partnership tenders and mergers; and lower preferred stock dividends due to $600.9 million of redemptions during 2012. These positive results were somewhat offset by lower interest income and lower income from discontinued operations. Pro forma FFO was within Aimco's guidance range of $0.43 to $0.47 per share.
Adjusted Funds from Operations - AFFO increased 38% when compared to third quarter 2011. Capital Replacements continue to decline year-over-year in line with the reduced number of apartment units as Aimco's portfolio is concentrated in fewer properties with higher margins, generating AFFO growth at a faster rate than Pro forma FFO growth.
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Property Operations
Aimco's property operations consist primarily of Conventional real estate operations, which relate to Aimco's diversified portfolio of market-rate apartment communities. Aimco also operates a portfolio of Affordable Properties, which consists of properties with rents that are generally paid, in whole or in part, by a government agency. Over the next four to five years, Aimco expects to dispose of these Affordable Properties and reinvest capital in its Conventional portfolio.
Third Quarter Total Same Store NOI Up 6.9%, Up 6.4% Year-to-Date
THIRD QUARTER | YEAR-TO-DATE | ||||||
Year-over-Year | Year-over-Year | ||||||
% NOI | Revenue | Expenses | NOI | Revenue | Expenses | NOI | |
Conventional Same Store | 82% | 4.9% | 0.5% | 7.4% | 4.5% | 0.8% | 6.7% |
Affordable Same Store | 12% | 4.4% | 6.2% | 3.4% | 4.0% | 3.5% | 4.4% |
Total Same Store | 94% | 4.8% | 1.3% | 6.9% | 4.5% | 1.2% | 6.4% |
Conventional Same Store Results
THIRD QUARTER | YEAR-TO-DATE | ||||||||||||||||||||||
Year-over-Year | Sequential | Year-over-Year | |||||||||||||||||||||
2012 | 2011 | Variance | 2nd Qtr | Variance | 2012 | 2011 | Variance | ||||||||||||||||
Average Rent Per Unit | $ | 1,184 | $ | 1,134 | 4.4 | % | $ | 1,167 | 1.5 | % | $ | 1,168 | $ | 1,119 | 4.4 | % | |||||||
Other Income Per Unit | 128 | 118 | 8.5 | % | 121 | 5.8 | % | 121 | 111 | 9.0 | % | ||||||||||||
Average Revenue Per Unit | $ | 1,312 | $ | 1,252 | 4.8 | % | $ | 1,288 | 1.9 | % | $ | 1,289 | $ | 1,230 | 4.8 | % | |||||||
Average Daily Occupancy | 95.3 | % | 95.2 | % | 0.1 | % | 95.5 | % | -0.2 | % | 95.6 | % | 95.8 | % | -0.2 | % | |||||||
$ in Millions | |||||||||||||||||||||||
Revenue | $ | 190.9 | $ | 182.1 | 4.9 | % | $ | 187.8 | 1.7 | % | $ | 564.7 | $ | 540.2 | 4.5 | % | |||||||
Expenses | 68.1 | 67.8 | 0.5 | % | 66.3 | 2.8 | % | 200.3 | 198.7 | 0.8 | % | ||||||||||||
NOI | $ | 122.8 | $ | 114.3 | 7.4 | % | $ | 121.5 | 1.0 | % | $ | 364.4 | $ | 341.5 | 6.7 | % |
Rental Rates
2012 | 1st Qtr | 2nd Qtr | Jul | Aug | Sept | 3rd Qtr | Year-to-Date |
Renewal rent increases | 5.1% | 5.7% | 6.3% | 6.4% | 5.6% | 6.0% | 5.6% |
New lease rent increases | 2.0% | 4.3% | 4.5% | 4.3% | 2.6% | 3.8% | 3.7% |
Weighted average rent increases | 3.4% | 5.0% | 5.3% | 5.3% | 4.1% | 4.8% | 4.6% |
Affordable Same Store Results - For third quarter 2012, average daily occupancy for the Affordable portfolio was 98.9%, an increase of 1.2% from third quarter 2011, while average revenue per unit increased 3.2% from $960 to $991 per unit.
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Portfolio Management
Aimco's portfolio strategy seeks predictable rent growth from a portfolio of A, B and C-quality conventional properties, averaging B/B+ in quality, and diversified among the largest coastal and job growth markets in the U.S., as measured by total apartment value.
Aimco measures Conventional Property asset quality based on rents compared to local market average rents as reported by REIS, a third-party provider of commercial real estate performance information and analysis. Aimco defines asset quality as follows: A-quality assets are those with rents greater than 125% of local market average; B-quality assets are those with rents 90% to 125% of local market average; and C-quality assets are those with rents less than 90% of local market average. For second quarter 2012, the most recent period for which REIS information is available, Aimco's Conventional Property rents averaged 101% of local market average rents, unchanged from first quarter 2011.
Aimco's target markets are primarily coastal markets, and also include several Sun Belt cities and Chicago, Illinois. In executing its portfolio strategy, Aimco expects to sell each year the lowest-rated 5% to 10% of its portfolio and to invest the proceeds from such sales in redevelopment and acquisition of higher-quality properties. Through this disciplined approach to capital recycling, from 2006 through 2011, Aimco increased its year-end conventional portfolio average revenue per unit at a compound annual growth rate of 5.5%. Approximately one-quarter of the revenue growth is attributable to market rent growth, notwithstanding two consecutive years of market rent declines, with the balance representing the impact of portfolio improvements through dispositions, redevelopment and acquisitions. Aimco expects to sell down its Affordable portfolio over the next four-to-five years.
Conventional Property Revenue per Unit Up 8.0% to $1,332
Third quarter 2012 Conventional portfolio average revenue per unit was $1,332, an 8.0% increase compared to third quarter 2011, as a result of year-over-year revenue growth of 4.9% and the sale of Conventional Properties during 2011 and 2012 with average revenues per unit substantially lower than those of the retained portfolio.
Dispositions - In third quarter 2012, Aimco sold eight Conventional Properties and 14 Affordable Properties with 2,349 and 1,562 units, respectively, for $235.4 million in gross proceeds. Average revenue per unit for the Conventional Properties sold during the quarter was $795, compared to the retained portfolio average of $1,332 per unit. Aimco's share of net sales proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $62.3 million.
Acquisitions - During the third quarter, Aimco acquired for $19.7 million a property located in Downtown San Diego, adjacent to the Gaslamp District. The acquisition was funded in part by the assumption of $9.7 million of non-recourse property debt, and in part by the tax-free exchange of proceeds from the sale of lower-rated properties. The acquired property consists of 84 apartment homes and approximately 8,000 square feet of commercial space. The property's average residential revenue per unit is $1,880, and its average rents are approximately 15% greater than the local market average. Aimco intends to add value to the acquisition through property upgrades and operational improvements.
Redevelopment
During the third quarter, Aimco began the redevelopment of The Preserve at Marin located in Corte Madera, California. The Preserve at Marin has unobstructed views of San Francisco Bay and Mount Tamalpais, and direct access to nearby nature preserves. Aimco acquired this vacant 126-unit property in August 2011, and, including its purchase price, expects to invest a total of $85 million in the property. First occupancy is anticipated in the second quarter 2013 and current market rents for comparable product are estimated to average $3,880 per unit.
Also during the third quarter, Aimco continued the redevelopment of its Elm Creek property in Chicago, where 28 new townhomes are being constructed on a vacant land parcel contiguous to the property. During the
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quarter, Aimco also completed construction of an exclusive roof-top patio and lounge area and amenity upgrades at its Palazzo at Park La Brea property, located in West Los Angeles. Redevelopment of the property's four penthouse model units was substantially complete at quarter-end. Also during third quarter, Aimco began a multi-phase capital project at its 2900 on First property in Seattle. The initial phase of this project consists of Capital Replacement and Capital Improvement investments, with redevelopment beginning in 2013.
As Aimco previously announced, Aimco started in the fourth quarter the redevelopment of its Lincoln Place property in Venice, California. An earlier phase began last year with the redevelopment of four buildings with 65 apartment homes. Work was completed earlier this year and 50 of the apartment homes have been re-leased to returning residents. Over the next two years, Aimco will redevelop another 41 buildings including 631 now-vacant apartment homes, together with common areas and landscaping. Aimco will also construct on now-vacant land 13 new buildings with 99 apartment homes, a 5,000 square foot leasing center and a 6,100 square foot fitness center and pool area.
The Lincoln Place redevelopment is being funded by a $190.7 million FHA-insured loan that closed in October. The loan bears interest at 2.73% and is interest-only until 2014, when it converts to a 40-year fully amortizing loan that is freely pre-payable after 10 years. At closing, Aimco prepaid a $63 million loan secured by the property that required interest at 7.5% and that was due in fourth quarter 2013. Additionally, because of its historic significance, the property has been approved for historic tax credits, which Aimco intends to sell, expecting to raise $16 million.
During fourth quarter 2012, Aimco expects to begin multi-phase capital projects at Park Towne Place and The Sterling, both located in Center-City Philadelphia. Similar to the 2900 on First project, the initial phases of the Philadelphia projects will consist of Capital Replacement and Capital Improvement investments, with redevelopment beginning in 2013.
During 2012, Aimco expects to invest $100 million in redevelopment at ten properties. At the end of the third quarter, construction was underway at nine of these properties, including the three properties undergoing multi-phase capital projects. Over the next few years, Aimco expects to invest approximately $400 million in redevelopment of these ten properties and generate on average initial cash returns before projected market rent growth greater than 7% and Free Cash Flow Internal Rates of Return in excess of 10%.
Balance Sheet and Liquidity
Components of Aimco Leverage
AS OF SEPTEMBER 30, 2012 | |||||||
$ in Millions | Amount | % of Total | Weighted Avg Maturity (Yrs) | Weighted Avg Rate | |||
Aimco's share of long-term, non-recourse property debt | $ | 4,567.0 | 96 | % | 7.7 | 5.49% | |
Outstanding borrowings on revolving line of credit | 66.2 | 1 | % | 4.2 | 4.48% | ||
Preferred securities | 148.1 | 3 | % | Perpetual | 6.27% | ||
Total leverage | $ | 4,781.3 | 100 | % | n/a | 5.50% |
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Leverage Ratios
Aimco's leverage targets are: Debt and Preferred Equity to EBITDA of less than 7.0x; and EBITDA Coverage of Interest and Preferred Dividends of greater than 2.5x. Aimco also focuses on Debt to EBITDA and EBITDA Coverage of Interest ratios. See the Glossary for definitions of these metrics.
Trailing- Twelve- Month | Annualized 3rd Qtr | Expected Annualized 4th Qtr 2012 | |||
2012 | 2011 | 2012 | 2011 | ||
Debt to EBITDA | 7.9x | 8.3x | 7.7x | 8.2x | 7.5x |
Debt and Preferred Equity to EBITDA | 8.1x | 9.7x | 8.0x | 9.6x | 7.7x |
EBITDA Coverage of Interest | 2.3x | 2.1x | 2.3x | 2.2x | 2.5x |
EBITDA Coverage of Interest and Preferred Dividends | 2.2x | 1.7x | 2.2x | 1.8x | 2.3x |
EBITDA Coverage of Interest and Preferred Dividends ratios are provided on a pro forma basis to exclude dividends on preferred stock redeemed during 2012.
Future leverage reduction is expected from earnings growth generated by the current portfolio and by regularly scheduled property debt amortization funded from retained earnings.
Liquidity
Aimco's recourse debt at September 30, 2012, was limited to its revolving credit facility, which Aimco uses for working capital purposes and to secure letters of credit. At the end of third quarter, Aimco had outstanding borrowings on its revolving credit facility of $66.2 million and available capacity was $406.8 million, net of $27.0 million of letters of credit backed by the facility. Also at the end of the quarter, Aimco had on hand $102.5 million of cash.
Equity Activity
Common Stock Offerings - Pursuant to an option granted to underwriters of a $240.7 million equity offering completed in June, Aimco sold in July 1,350,000 shares of Common Stock for net proceeds of $36.1 million, or $26.74 per share.
Preferred Stock Redemption - Also during third quarter, using primarily the proceeds from the June and July equity offerings, Aimco redeemed for $300.0 million all of the outstanding shares of its Class U Cumulative Preferred Stock. In connection with the redemption, Aimco recognized redemption related charges of $12.1 million, consisting of previously deferred issuance costs and discounts.
Dividend - As announced on October 30, 2012, Aimco's Board of Directors declared a quarterly cash dividend of $0.20 per share of Class A Common Stock for the quarter ended September 30, 2012. The third quarter 2012 dividend is payable on November 30, 2012, to stockholders of record on November 16, 2012.
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2012 Outlook
FOURTH QUARTER | CURRENT FULL YEAR | PREVIOUS FULL YEAR | |
Net income (loss) per share | -$0.04 to $0.02 | $0.06 to $0.12 | -$0.29 to -$0.22 |
Pro forma FFO per share | $0.47 to $0.53 | $1.79 to $1.85 | $1.78 to $1.86 |
AFFO per share | $1.31 to $1.37 | $1.30 to $1.38 | |
Conventional Same Store Operating Measures | |||
NOI change compared to third quarter 2012 | 3.0% to 4.0% | ||
NOI change compared to same period 2011 | 5.0% to 6.0% | 6.50% | 6.0% to 7.0% |
Revenue change compared to 2011 | 4.60% | 4.75% to 5.25% | |
Expense change compared to 2011 | 1.25% | 2.0% to 2.5% | |
Average daily occupancy | 95.6% | 95.5% to 96.0% | |
Affordable Same Store NOI change compared to 2011 | 4.00% | 2.5% to 3.5% | |
Total Same Store NOI change compared to 2011 | 6.00% | 5.5% to 6.5% |
Change in Guidance for Conventional Same Store NOI Growth Compared to 2011
REVENUE | EXPENSE | NOI | |
Current full year | 4.60% | 1.25% | 6.50% |
Previous full year at the midpoint | 5.00% | 2.25% | 6.50% |
Change | (0.40)% | (1.00)% | 0.00% |
Change due to utilities experience | (0.20)% | (0.80)% | 0.17% |
Change due to 30 bps decrease in second half average daily occupancy | (0.20)% | n/a | (0.30)% |
Other | n/a | (0.20)% | 0.13% |
Total change | (0.40)% | (1.00)% | 0.00% |
Aimco currently expects full year 2012 Conventional Same Store revenue to increase 4.6% when compared to 2011, which is 0.4% lower than the midpoint projected by Aimco in second quarter 2012. This decrease is the result of: a decrease in previously projected tenant utility reimbursements, which are accounted for in other rental income; and a decrease in expected second half average daily occupancy. Lower projected utility reimbursements are more than offset by expected utility expense savings, generating a positive impact to NOI of 0.17% compared to Aimco's prior forecast.
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2012 Outlook (continued)
$ in Millions | CURRENT FULL YEAR | PREVIOUS FULL YEAR |
Asset Management and Tax Credit Activities | ||
Recurring Revenues | $32 | $30 |
Recurring Expenses | $8 | $5 |
Non-Recurring Revenues | $9 | $6 |
Non-Recurring Expenses, including pursuit costs of $1.5 | $3 | $4 |
Offsite Costs | ||
Property Management Expenses | $35 | $35 |
General and Administrative Expenses | $48 | $47 |
Capital Expenditures | ||
Conventional Redevelopment | $100 | $125 - $150 |
Property Upgrades | $55 | $30 - $40 |
Transaction Activities (Aimco Share) | ||
Acquisitions (100% Aimco Share) | $130 | $130 |
Real Estate Value of Partnership Tenders and Mergers | $143 | $160 |
Dispositions, before transaction expenses and repayment of property debt | $600 - $700 | $600 - $700 |
Earnings Conference Call
Friday, November 2, 2012 at 1:00 p.m. EDT | Replay available until 9:00 a.m. EDT on November 19, 2012 |
Domestic Dial-In Number: 1-866-843-0890 | Domestic Dial-In Number: 1-877-344-7529 |
International Dial-In Number: 1-412-317-9250 | International Dial-In Number: 1-412-317-0088 |
Passcode: 7511607 | Passcode: 10018923 |
Live webcast and replay: http://www.aimco.com/investors/events-presentations/webcasts
Supplemental Information
The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco's website http://www.aimco.com/investors/financial-reports/quarterly-earning-reports.
Glossary & Reconciliations of Non-GAAP Financial and Operating Measures
Financial and operating measures found in this Earnings Release and the Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. These measures are defined in the glossary in the Supplemental Information and, where appropriate, reconciled to the most comparable GAAP measures.
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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: fourth quarter and full year 2012 results; redevelopment project investments, timelines and stabilized rents; and annualized fourth quarter 2012 leverage ratios. These forward-looking statements are based on management's judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to: Aimco's ability to maintain current or meet projected occupancy, rental rates and property operating results; the effect of acquisitions, dispositions and redevelopments; and our 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 the control of Aimco, including, without limitation: financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; the timing of acquisitions, dispositions and redevelopments; insurance risk, including the cost of insurance; natural disasters and severe weather such as hurricanes; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; energy costs; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by Aimco. In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code and depends on our ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership. Readers should carefully review Aimco's financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Aimco's Annual Report on Form 10-K for the year ended December 31, 2011, and the other documents Aimco files from time to time with the Securities and Exchange Commission. These forward-looking statements reflect management's judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances. This press release does not constitute an offer of securities for sale.
About Aimco
Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the largest markets in the United States. Aimco is one of the country's largest owners and operators of apartments, with 319 communities in 29 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.
Contact
Elizabeth Coalson, Vice President Investor Relations
Investor Relations 303-691-4350, investor@aimco.com
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Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data) (unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
REVENUES: | ||||||||||||||||
Rental and other property revenues | $ | 256,752 | $ | 242,574 | $ | 760,155 | $ | 725,090 | ||||||||
Asset management and tax credit revenues | 10,696 | 11,885 | 27,681 | 28,772 | ||||||||||||
Total revenues | 267,448 | 254,459 | 787,836 | 753,862 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Property operating expenses | 106,462 | 106,458 | 309,515 | 316,943 | ||||||||||||
Investment management expenses | 2,817 | 2,311 | 9,445 | 7,397 | ||||||||||||
Depreciation and amortization | 87,444 | 87,687 | 264,978 | 259,069 | ||||||||||||
Provision for real estate impairment losses | 2,453 | — | 10,801 | — | ||||||||||||
General and administrative expenses | 12,311 | 12,741 | 37,491 | 36,370 | ||||||||||||
Other expense, net | 5,230 | 3,838 | 11,514 | 12,328 | ||||||||||||
Total operating expenses | 216,717 | 213,035 | 643,744 | 632,107 | ||||||||||||
Operating income | 50,731 | 41,424 | 144,092 | 121,755 | ||||||||||||
Interest income, net | 2,079 | 3,372 | 7,088 | 7,295 | ||||||||||||
Interest expense | (64,585 | ) | (68,068 | ) | (193,370 | ) | (228,251 | ) | ||||||||
Equity in income (losses) of unconsolidated real estate partnerships | 206 | (4,987 | ) | (2,800 | ) | (8,432 | ) | |||||||||
Gain on dispositions of interests in unconsolidated real estate and other, net | 16,024 | 3,095 | 20,635 | 5,115 | ||||||||||||
Income (loss) before income taxes and discontinued operations | 4,455 | (25,164 | ) | (24,355 | ) | (102,518 | ) | |||||||||
Income tax benefit | 114 | 893 | 586 | 4,913 | ||||||||||||
Income (loss) from continuing operations | 4,569 | (24,271 | ) | (23,769 | ) | (97,605 | ) | |||||||||
Income from discontinued operations, net | 48,766 | 28,928 | 121,882 | 48,014 | ||||||||||||
Net income (loss) | 53,335 | 4,657 | 98,113 | (49,591 | ) | |||||||||||
Noncontrolling interests: | ||||||||||||||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | (11,334 | ) | (5,464 | ) | (28,764 | ) | 4,612 | |||||||||
Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership | (1,609 | ) | (1,670 | ) | (4,890 | ) | (5,012 | ) | ||||||||
Net (income) loss attributable to common noncontrolling interests in Aimco Operating Partnership | (1,611 | ) | 1,035 | (929 | ) | 5,838 | ||||||||||
Total noncontrolling interests | (14,554 | ) | (6,099 | ) | (34,583 | ) | 5,438 | |||||||||
Net income (loss) attributable to Aimco | 38,781 | (1,442 | ) | 63,530 | (44,153 | ) | ||||||||||
Net income attributable to Aimco preferred stockholders | (14,515 | ) | (13,301 | ) | (49,136 | ) | (35,429 | ) | ||||||||
Net income attributable to participating securities | (103 | ) | (58 | ) | (317 | ) | (169 | ) | ||||||||
Net income (loss) attributable to Aimco common stockholders | $ | 24,163 | $ | (14,801 | ) | $ | 14,077 | $ | (79,751 | ) | ||||||
Weighted average common shares outstanding - basic and diluted | 144,959 | 120,339 | 130,960 | 118,939 | ||||||||||||
Earnings (loss) per common share - basic and diluted: | ||||||||||||||||
Loss from continuing operations attributable to Aimco common stockholders | $ | (0.07 | ) | $ | (0.26 | ) | $ | (0.60 | ) | $ | (0.91 | ) | ||||
Income from discontinued operations attributable to Aimco common stockholders | 0.24 | 0.14 | 0.71 | 0.24 | ||||||||||||
Net income (loss) attributable to Aimco common stockholders | $ | 0.17 | $ | (0.12 | ) | $ | 0.11 | $ | (0.67 | ) |
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Consolidated Statements of Operations (continued) | ||||||||||||||||
Income from Discontinued Operations | ||||||||||||||||
Income from discontinued operations consists of the following (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Rental and other property revenues | $ | 7,297 | $ | 30,365 | $ | 37,244 | $ | 104,551 | ||||||||
Property operating expenses | (5,020 | ) | (17,279 | ) | (16,970 | ) | (54,643 | ) | ||||||||
Depreciation and amortization | (2,549 | ) | (10,565 | ) | (15,013 | ) | (36,365 | ) | ||||||||
Provision for real estate impairment losses | (2,453 | ) | (5,671 | ) | (8,837 | ) | (11,979 | ) | ||||||||
Operating (loss) income | (2,725 | ) | (3,150 | ) | (3,576 | ) | 1,564 | |||||||||
Interest income | 55 | 180 | 185 | 1,019 | ||||||||||||
Interest expense | (1,872 | ) | (5,946 | ) | (6,605 | ) | (20,171 | ) | ||||||||
Loss before gain on dispositions of real estate and income taxes | (4,542 | ) | (8,916 | ) | (9,996 | ) | (17,588 | ) | ||||||||
Gain on dispositions of real estate | 55,721 | 37,467 | 139,925 | 64,901 | ||||||||||||
Income tax (expense) benefit | (2,413 | ) | 377 | (8,047 | ) | 701 | ||||||||||
Income from discontinued operations, net | $ | 48,766 | $ | 28,928 | $ | 121,882 | $ | 48,014 | ||||||||
Income from discontinued operations attributable to: | ||||||||||||||||
Noncontrolling interests in consolidated real estate partnerships | $ | (11,683 | ) | $ | (11,838 | ) | $ | (22,902 | ) | $ | (16,924 | ) | ||||
Noncontrolling interests in Aimco Operating Partnership | (2,141 | ) | (1,127 | ) | (6,012 | ) | (2,063 | ) | ||||||||
Total noncontrolling interests | (13,824 | ) | (12,965 | ) | (28,914 | ) | (18,987 | ) | ||||||||
Income from discontinued operations attributable to Aimco | $ | 34,942 | $ | 15,963 | $ | 92,968 | $ | 29,027 |
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Consolidated Balance Sheets | ||||||||
(in thousands) (unaudited) | ||||||||
September 30, 2012 | December 31, 2011 | |||||||
ASSETS | ||||||||
Buildings and improvements | $ | 6,593,894 | $ | 6,372,683 | ||||
Land | 2,006,360 | 1,968,433 | ||||||
Total real estate | 8,600,254 | 8,341,116 | ||||||
Accumulated depreciation | (2,849,046 | ) | (2,633,242 | ) | ||||
Net real estate | 5,751,208 | 5,707,874 | ||||||
Cash and cash equivalents | 102,515 | 91,066 | ||||||
Restricted cash | 158,649 | 184,626 | ||||||
Accounts receivable, net | 36,540 | 41,796 | ||||||
Notes receivable, net | 103,288 | 111,205 | ||||||
Investment in unconsolidated real estate partnerships | 38,249 | 47,790 | ||||||
Other assets | 328,464 | 339,403 | ||||||
Assets held for sale | 46,475 | 348,102 | ||||||
Total assets | $ | 6,565,388 | $ | 6,871,862 | ||||
LIABILITIES AND EQUITY | ||||||||
Non-recourse property debt | $ | 4,871,981 | $ | 4,870,426 | ||||
Revolving credit facility borrowings | 66,200 | — | ||||||
Total indebtedness | 4,938,181 | 4,870,426 | ||||||
Accounts payable | 28,488 | 32,607 | ||||||
Accrued liabilities and other | 235,881 | 283,247 | ||||||
Deferred income | 133,054 | 139,606 | ||||||
Liabilities related to assets held for sale | 46,729 | 317,918 | ||||||
Total liabilities | 5,382,333 | 5,643,804 | ||||||
Preferred noncontrolling interests in Aimco Operating Partnership | 80,077 | 83,384 | ||||||
Equity: | ||||||||
Perpetual Preferred Stock | 68,114 | 657,114 | ||||||
Class A Common Stock | 1,456 | 1,209 | ||||||
Additional paid-in capital | 3,714,674 | 3,098,333 | ||||||
Accumulated other comprehensive loss | (6,397 | ) | (6,860 | ) | ||||
Distributions in excess of earnings | (2,902,175 | ) | (2,841,467 | ) | ||||
Total Aimco equity | 875,672 | 908,329 | ||||||
Noncontrolling interests in consolidated real estate partnerships | 264,286 | 270,666 | ||||||
Common noncontrolling interests in Aimco Operating Partnership | (36,980 | ) | (34,321 | ) | ||||
Total equity | 1,102,978 | 1,144,674 | ||||||
Total liabilities and equity | $ | 6,565,388 | $ | 6,871,862 |
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Supplemental Schedule 1(a) | ||||||||||||||||||||||||||||||||
Funds From Operations | (Page 1 of 2) | |||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 Compared to Three Months Ended September 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands, except per share data) (unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | |||||||||||||||||||||||||
Real estate operations: | ||||||||||||||||||||||||||||||||
Rental and other property revenues | ||||||||||||||||||||||||||||||||
Conventional Same Store | $ | 199,868 | $ | — | $ | (8,861 | ) | $ | 191,007 | $ | 191,082 | $ | — | $ | (13,663 | ) | $ | 177,419 | ||||||||||||||
Affordable Same Store | 34,036 | 175 | (5,940 | ) | 28,271 | 32,574 | 161 | (5,672 | ) | 27,063 | ||||||||||||||||||||||
Total Same Store | 233,904 | 175 | (14,801 | ) | 219,278 | 223,656 | 161 | (19,335 | ) | 204,482 | ||||||||||||||||||||||
Other Conventional | 17,598 | 1,260 | — | 18,858 | 14,052 | 1,739 | — | 15,791 | ||||||||||||||||||||||||
Other Affordable | 5,122 | 5,234 | (8,462 | ) | 1,894 | 4,673 | 12,382 | (14,114 | ) | 2,941 | ||||||||||||||||||||||
Property management revenues, primarily from affiliates | 128 | (112 | ) | 978 | 994 | 193 | (176 | ) | 1,361 | 1,378 | ||||||||||||||||||||||
Total rental and other property revenues | 256,752 | 6,557 | (22,285 | ) | 241,024 | 242,574 | 14,106 | (32,088 | ) | 224,592 | ||||||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||||||||||
Conventional Same Store | 71,219 | — | (3,220 | ) | 67,999 | 70,776 | — | (5,155 | ) | 65,621 | ||||||||||||||||||||||
Affordable Same Store | 13,542 | 86 | (2,521 | ) | 11,107 | 12,856 | 107 | (2,546 | ) | 10,417 | ||||||||||||||||||||||
Total Same Store | 84,761 | 86 | (5,741 | ) | 79,106 | 83,632 | 107 | (7,701 | ) | 76,038 | ||||||||||||||||||||||
Other Conventional | 8,770 | 639 | (2 | ) | 9,407 | 6,828 | 867 | — | 7,695 | |||||||||||||||||||||||
Other Affordable | 2,818 | 3,219 | (5,106 | ) | 931 | 2,426 | 7,031 | (7,902 | ) | 1,555 | ||||||||||||||||||||||
Casualties | 1,975 | 3 | 17 | 1,995 | 2,848 | — | (471 | ) | 2,377 | |||||||||||||||||||||||
Property management expenses | 8,138 | — | — | 8,138 | 10,724 | — | — | 10,724 | ||||||||||||||||||||||||
Total property operating expenses | 106,462 | 3,947 | (10,832 | ) | 99,577 | 106,458 | 8,005 | (16,074 | ) | 98,389 | ||||||||||||||||||||||
Net real estate operations | 150,290 | 2,610 | (11,453 | ) | 141,447 | 136,116 | 6,101 | (16,014 | ) | 126,203 | ||||||||||||||||||||||
Amortization of deferred tax credit income | 7,207 | — | — | 7,207 | 7,038 | — | — | 7,038 | ||||||||||||||||||||||||
Asset management revenues | 100 | — | 2,291 | 2,391 | (19 | ) | — | 1,363 | 1,344 | |||||||||||||||||||||||
Non-recurring revenues | 3,389 | — | — | 3,389 | 4,866 | — | 489 | 5,355 | ||||||||||||||||||||||||
Total asset management and tax credit revenues | 10,696 | — | 2,291 | 12,987 | 11,885 | — | 1,852 | 13,737 | ||||||||||||||||||||||||
Investment management expenses | (2,817 | ) | — | — | (2,817 | ) | (2,311 | ) | — | — | (2,311 | ) | ||||||||||||||||||||
Depreciation and amortization related to non-real estate assets | (3,259 | ) | (1 | ) | 20 | (3,240 | ) | (3,306 | ) | (1 | ) | 30 | (3,277 | ) | ||||||||||||||||||
General and administrative expenses | (12,311 | ) | (2 | ) | 98 | (12,215 | ) | (12,741 | ) | (6 | ) | 229 | (12,518 | ) | ||||||||||||||||||
Other expense, net | (5,230 | ) | 26 | 667 | (4,537 | ) | (3,838 | ) | (253 | ) | 509 | (3,582 | ) | |||||||||||||||||||
Interest income | 2,079 | 4 | (302 | ) | 1,781 | 3,372 | 10 | 272 | 3,654 | |||||||||||||||||||||||
Interest expense | (64,585 | ) | (1,420 | ) | 3,529 | (62,476 | ) | (68,068 | ) | (2,942 | ) | 8,968 | (62,042 | ) | ||||||||||||||||||
Income tax benefit | 684 | — | — | 684 | 898 | — | — | 898 | ||||||||||||||||||||||||
Discontinued operations, net of non-FFO items | 402 | — | 2,235 | 2,637 | 7,603 | — | (641 | ) | 6,962 | |||||||||||||||||||||||
Preferred dividends and distributions | (4,071 | ) | — | — | (4,071 | ) | (14,183 | ) | — | — | (14,183 | ) | ||||||||||||||||||||
Preferred redemption related amounts | (12,053 | ) | — | — | (12,053 | ) | (788 | ) | — | — | (788 | ) | ||||||||||||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (3,174 | ) | — | — | (3,174 | ) | (3,557 | ) | — | — | (3,557 | ) | ||||||||||||||||||||
Amounts allocated to participating securities | (196 | ) | — | — | (196 | ) | (196 | ) | — | — | (196 | ) | ||||||||||||||||||||
Funds From Operations | $ | 56,455 | $ | 1,217 | $ | (2,915 | ) | $ | 54,757 | $ | 50,886 | $ | 2,909 | $ | (4,795 | ) | $ | 49,000 | ||||||||||||||
Preferred stock redemption related amounts | 12,053 | — | — | 12,053 | 788 | — | — | 788 | ||||||||||||||||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (698 | ) | — | — | (698 | ) | (54 | ) | — | — | (54 | ) | ||||||||||||||||||||
Amounts allocated to participating securities | (41 | ) | — | — | (41 | ) | (3 | ) | — | — | (3 | ) | ||||||||||||||||||||
Pro forma Funds From Operations | $ | 67,769 | $ | 1,217 | $ | (2,915 | ) | $ | 66,071 | $ | 51,617 | $ | 2,909 | $ | (4,795 | ) | $ | 49,731 | ||||||||||||||
Weighted average shares - diluted FFO | 145,119 | Weighted average shares - diluted FFO | 120,670 | |||||||||||||||||||||||||||||
Per Share: | Per Share: | |||||||||||||||||||||||||||||||
Funds From Operations | $ | 0.38 | Funds From Operations | $ | 0.41 | |||||||||||||||||||||||||||
Pro forma Funds From Operations | $ | 0.46 | Pro forma Funds From Operations | $ | 0.41 |
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Supplemental Schedule 1(a) (continued) | ||||||||||||||||||||||||||||||||
Pro Forma Funds From Operations Reconciliation to GAAP | (Page 2 of 2) | |||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 Compared to Three Months Ended September 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | |||||||||||||||||||||||||
Pro forma Funds From Operations | $ | 67,769 | $ | 1,217 | $ | (2,915 | ) | $ | 66,071 | $ | 51,617 | $ | 2,909 | $ | (4,795 | ) | $ | 49,731 | ||||||||||||||
Adjustments related to continuing operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | (87,444 | ) | (1,795 | ) | 6,612 | (82,627 | ) | (87,687 | ) | (3,725 | ) | 9,401 | (82,011 | ) | ||||||||||||||||||
Depreciation and amortization related to non-real estate assets | 3,259 | 1 | (20 | ) | 3,240 | 3,306 | 1 | (30 | ) | 3,277 | ||||||||||||||||||||||
Provision for impairment losses on depreciable assets | (2,453 | ) | (388 | ) | 449 | (2,392 | ) | (50 | ) | (4,523 | ) | 4,475 | (98 | ) | ||||||||||||||||||
Gain on dispositions of and impairments related to unconsolidated entities and other, net of tax | 15,456 | 1,171 | (1,703 | ) | 14,924 | 3,127 | 351 | (3,233 | ) | 245 | ||||||||||||||||||||||
Adjustments related to discontinued operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization related to real estate | (2,534 | ) | — | (1,332 | ) | (3,866 | ) | (10,495 | ) | — | 1,985 | (8,510 | ) | |||||||||||||||||||
Provision for operating real estate impairment losses, net of tax | (2,453 | ) | — | — | (2,453 | ) | (5,671 | ) | — | — | (5,671 | ) | ||||||||||||||||||||
Gain on dispositions of real estate, net of tax | 53,349 | — | (12,425 | ) | 40,924 | 37,504 | — | (13,267 | ) | 24,237 | ||||||||||||||||||||||
Total adjustments | $ | (22,820 | ) | $ | (1,011 | ) | $ | (8,419 | ) | $ | (32,250 | ) | $ | (59,966 | ) | $ | (7,896 | ) | $ | (669 | ) | $ | (68,531 | ) | ||||||||
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments | 2,261 | — | — | 2,261 | 4,646 | — | — | 4,646 | ||||||||||||||||||||||||
Amounts allocable to participating securities | 134 | — | — | 134 | 141 | — | — | 141 | ||||||||||||||||||||||||
Preferred stock redemption related amounts | (12,053 | ) | — | — | (12,053 | ) | (788 | ) | — | — | (788 | ) | ||||||||||||||||||||
Equity in income (losses) of unconsolidated real estate partnerships | 206 | (206 | ) | — | — | (4,987 | ) | 4,987 | — | — | ||||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated real estate partnerships | (11,334 | ) | — | 11,334 | — | (5,464 | ) | — | 5,464 | — | ||||||||||||||||||||||
Net loss attributable to Aimco common stockholders | $ | 24,163 | $ | — | $ | — | $ | 24,163 | $ | (14,801 | ) | $ | — | $ | — | $ | (14,801 | ) |
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Supplemental Schedule 1(b) | ||||||||||||||||||||||||||||||||
Funds From Operations | (Page 1 of 2) | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands, except per share data) (unaudited) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | |||||||||||||||||||||||||
Real estate operations: | ||||||||||||||||||||||||||||||||
Rental and other property revenues | ||||||||||||||||||||||||||||||||
Conventional Same Store | $ | 591,117 | $ | — | $ | (28,858 | ) | $ | 562,259 | $ | 567,243 | $ | — | $ | (41,934 | ) | $ | 525,309 | ||||||||||||||
Affordable Same Store | 101,530 | 537 | (17,725 | ) | 84,342 | 97,499 | 493 | (16,928 | ) | 81,064 | ||||||||||||||||||||||
Total Same Store | 692,647 | 537 | (46,583 | ) | 646,601 | 664,742 | 493 | (58,862 | ) | 606,373 | ||||||||||||||||||||||
Other Conventional | 47,867 | 4,954 | — | 52,821 | 43,953 | 4,126 | (136 | ) | 47,943 | |||||||||||||||||||||||
Other Affordable | 19,260 | 17,061 | (30,373 | ) | 5,948 | 15,346 | 31,186 | (38,119 | ) | 8,413 | ||||||||||||||||||||||
Property management revenues, primarily from affiliates | 381 | (404 | ) | 2,803 | 2,780 | 1,049 | (491 | ) | 3,464 | 4,022 | ||||||||||||||||||||||
Total rental and other property revenues | 760,155 | 22,148 | (74,153 | ) | 708,150 | 725,090 | 35,314 | (93,653 | ) | 666,751 | ||||||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||||||||||
Conventional Same Store | 209,279 | — | (10,543 | ) | 198,736 | 207,941 | — | (16,029 | ) | 191,912 | ||||||||||||||||||||||
Affordable Same Store | 39,979 | 328 | (7,433 | ) | 32,874 | 38,705 | 378 | (7,394 | ) | 31,689 | ||||||||||||||||||||||
Total Same Store | 249,258 | 328 | (17,976 | ) | 231,610 | 246,646 | 378 | (23,423 | ) | 223,601 | ||||||||||||||||||||||
Other Conventional | 23,433 | 2,689 | (3 | ) | 26,119 | 20,923 | 2,413 | (76 | ) | 23,260 | ||||||||||||||||||||||
Other Affordable | 8,896 | 11,131 | (16,909 | ) | 3,118 | 8,190 | 19,419 | (22,763 | ) | 4,846 | ||||||||||||||||||||||
Casualties | 2,099 | 4 | 26 | 2,129 | 9,401 | (11 | ) | (220 | ) | 9,170 | ||||||||||||||||||||||
Property management expenses | 25,829 | — | — | 25,829 | 31,783 | — | — | 31,783 | ||||||||||||||||||||||||
Total property operating expenses | 309,515 | 14,152 | (34,862 | ) | 288,805 | 316,943 | 22,199 | (46,482 | ) | 292,660 | ||||||||||||||||||||||
Net real estate operations | 450,640 | 7,996 | (39,291 | ) | 419,345 | 408,147 | 13,115 | (47,171 | ) | 374,091 | ||||||||||||||||||||||
Amortization of deferred tax credit income | 21,892 | — | — | 21,892 | 21,204 | — | — | 21,204 | ||||||||||||||||||||||||
Asset management revenues | 100 | — | 4,206 | 4,306 | 1,504 | — | 2,561 | 4,065 | ||||||||||||||||||||||||
Non-recurring revenues | 5,689 | — | 2 | 5,691 | 6,064 | — | 491 | 6,555 | ||||||||||||||||||||||||
Total asset management and tax credit revenues | 27,681 | — | 4,208 | 31,889 | 28,772 | — | 3,052 | 31,824 | ||||||||||||||||||||||||
Investment management expenses | (9,445 | ) | — | — | (9,445 | ) | (7,397 | ) | — | — | (7,397 | ) | ||||||||||||||||||||
Depreciation and amortization related to non-real estate assets | (9,845 | ) | — | 67 | (9,778 | ) | (9,645 | ) | (3 | ) | 85 | (9,563 | ) | |||||||||||||||||||
General and administrative expenses | (37,491 | ) | (6 | ) | 378 | (37,119 | ) | (36,370 | ) | (8 | ) | 830 | (35,548 | ) | ||||||||||||||||||
Other expense, net | (11,514 | ) | 10 | 2,385 | (9,119 | ) | (12,328 | ) | (116 | ) | 5,169 | (7,275 | ) | |||||||||||||||||||
Interest income | 7,088 | 17 | (307 | ) | 6,798 | 7,295 | (105 | ) | (302 | ) | 6,888 | |||||||||||||||||||||
Interest expense | (193,370 | ) | (4,649 | ) | 9,414 | (188,605 | ) | (228,251 | ) | (7,476 | ) | 29,845 | (205,882 | ) | ||||||||||||||||||
Gain (loss) on disposition of non-depreciable assets and other | 2 | — | — | 2 | (69 | ) | — | — | (69 | ) | ||||||||||||||||||||||
Income tax benefit | 1,194 | — | — | 1,194 | 4,958 | — | — | 4,958 | ||||||||||||||||||||||||
Discontinued operations, net of non-FFO items | 14,114 | — | (3,183 | ) | 10,931 | 31,454 | — | (3,322 | ) | 28,132 | ||||||||||||||||||||||
Preferred dividends and distributions | (31,443 | ) | — | — | (31,443 | ) | (42,402 | ) | — | — | (42,402 | ) | ||||||||||||||||||||
Preferred redemption related amounts | (22,583 | ) | — | — | (22,583 | ) | 1,961 | — | — | 1,961 | ||||||||||||||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (9,878 | ) | — | — | (9,878 | ) | (9,586 | ) | — | — | (9,586 | ) | ||||||||||||||||||||
Amounts allocated to participating securities | (645 | ) | — | — | (645 | ) | (569 | ) | — | — | (569 | ) | ||||||||||||||||||||
Funds From Operations | $ | 174,505 | $ | 3,368 | $ | (26,329 | ) | $ | 151,544 | $ | 135,970 | $ | 5,407 | $ | (11,814 | ) | $ | 129,563 | ||||||||||||||
Preferred stock redemption related amounts | 22,583 | — | — | 22,583 | (1,961 | ) | — | — | (1,961 | ) | ||||||||||||||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (1,377 | ) | — | — | (1,377 | ) | 134 | — | — | 134 | ||||||||||||||||||||||
Amounts allocated to participating securities | (90 | ) | — | — | (90 | ) | 8 | — | — | 8 | ||||||||||||||||||||||
Pro forma Funds From Operations | $ | 195,621 | $ | 3,368 | $ | (26,329 | ) | $ | 172,660 | $ | 134,151 | $ | 5,407 | $ | (11,814 | ) | $ | 127,744 | ||||||||||||||
Weighted average shares - diluted FFO | 131,265 | Weighted average shares - diluted FFO | 119,269 | |||||||||||||||||||||||||||||
Per Share: | Per Share: | |||||||||||||||||||||||||||||||
Funds From Operations | $ | 1.15 | Funds From Operations | $ | 1.09 | |||||||||||||||||||||||||||
Pro forma Funds From Operations | $ | 1.32 | Pro forma Funds From Operations | $ | 1.07 |
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Supplemental Schedule 1(b) (continued) | ||||||||||||||||||||||||||||||||
Pro Forma Funds From Operations Reconciliation to GAAP | (Page 2 of 2) | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | |||||||||||||||||||||||||
Pro forma Funds From Operations | $ | 195,621 | $ | 3,368 | $ | (26,329 | ) | $ | 172,660 | $ | 134,151 | $ | 5,407 | $ | (11,814 | ) | $ | 127,744 | ||||||||||||||
Adjustments related to continuing operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | (264,978 | ) | (6,128 | ) | 21,517 | (249,589 | ) | (259,069 | ) | (9,782 | ) | 29,135 | (239,716 | ) | ||||||||||||||||||
Depreciation and amortization related to non-real estate assets | 9,845 | — | (67 | ) | 9,778 | 9,645 | 3 | (85 | ) | 9,563 | ||||||||||||||||||||||
Provision for impairment losses on depreciable assets | (10,977 | ) | (2,911 | ) | 3,417 | (10,471 | ) | (33 | ) | (5,536 | ) | 5,492 | (77 | ) | ||||||||||||||||||
Gain on dispositions of and impairments related to unconsolidated entities and other, net of tax | 20,202 | 2,871 | (7,830 | ) | 15,243 | 5,175 | 1,476 | (5,614 | ) | 1,037 | ||||||||||||||||||||||
Adjustments related to discontinued operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization related to real estate | (14,900 | ) | — | 706 | (14,194 | ) | (36,142 | ) | — | 6,693 | (29,449 | ) | ||||||||||||||||||||
Provision for operating real estate impairment losses, net of tax | (8,837 | ) | — | 1,701 | (7,136 | ) | (11,979 | ) | — | 2,569 | (9,410 | ) | ||||||||||||||||||||
Gain on dispositions of real estate, net of tax | 131,504 | — | (21,879 | ) | 109,625 | 64,678 | — | (21,764 | ) | 42,914 | ||||||||||||||||||||||
Total adjustments | $ | (138,141 | ) | $ | (6,168 | ) | $ | (2,435 | ) | $ | (146,744 | ) | $ | (227,725 | ) | $ | (13,839 | ) | $ | 16,426 | $ | (225,138 | ) | |||||||||
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments | 10,326 | — | — | 10,326 | 15,290 | — | — | 15,290 | ||||||||||||||||||||||||
Amounts allocable to participating securities | 418 | — | — | 418 | 392 | — | — | 392 | ||||||||||||||||||||||||
Preferred stock redemption related amounts | (22,583 | ) | — | — | (22,583 | ) | 1,961 | — | — | 1,961 | ||||||||||||||||||||||
Equity in losses of unconsolidated real estate partnerships | (2,800 | ) | 2,800 | — | — | (8,432 | ) | 8,432 | — | — | ||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | (28,764 | ) | — | 28,764 | — | 4,612 | — | (4,612 | ) | — | ||||||||||||||||||||||
Net loss attributable to Aimco common stockholders | $ | 14,077 | $ | — | $ | — | $ | 14,077 | $ | (79,751 | ) | $ | — | $ | — | $ | (79,751 | ) |
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Supplemental Schedule 2 | |||||||||||||
Portfolio Summary | |||||||||||||
As of September 30, 2012 | |||||||||||||
(unaudited) | |||||||||||||
Number of Properties | Number of Units | Effective Units | Average Ownership | ||||||||||
Real Estate Portfolio: | |||||||||||||
Conventional Same Store | 145 | 52,691 | 50,914 | 97 | % | ||||||||
Affordable Same Store | 84 | 11,946 | 9,620 | 81 | % | ||||||||
Total Same Store | 229 | 64,637 | 60,534 | 94 | % | ||||||||
Conventional Redevelopment | 4 | 1,502 | 1,502 | 100 | % | ||||||||
Conventional Acquisition | 7 | 756 | 686 | 91 | % | ||||||||
Other Conventional | 26 | 2,398 | 2,398 | 100 | % | ||||||||
Other Affordable | 48 | 4,923 | 733 | 15 | % | ||||||||
Conventional Held for Sale | 1 | 397 | 397 | 100 | % | ||||||||
Affordable Held for Sale | 4 | 228 | 22 | 10 | % | ||||||||
Total real estate portfolio | 319 | 74,841 | 66,272 | 89 | % | ||||||||
Total Conventional portfolio | 183 | 57,744 | 55,897 | 97 | % | ||||||||
Total Affordable portfolio | 136 | 17,097 | 10,375 | 61 | % | ||||||||
* At December 31, 2011, Aimco asset-managed for a fee 147 properties with 10,184 units. In February 2012, Aimco entered into an agreement to transfer asset management of this portfolio and to sell its interests in these assets to the new asset manager upon satisfaction of certain conditions and regulatory approvals. Under the agreement, Aimco is paying the new manager a fee comparable to its historical cost to manage these properties until such time as sale of the portfolio is completed. |
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Supplemental Schedule 3 | |||||||||||||
Net Asset Value Supplemental Information | (Page 1 of 2) | ||||||||||||
(in thousands) (unaudited) | |||||||||||||
One measure of stockholder value is Net Asset Value (NAV), which is assets, net of debt and preferred equity, at their estimated fair values. The information provided below is intended to assist users of Aimco’s financial information in making their own estimates of Aimco’s NAV. See the following page for notes to the Supplemental Information provided below. | |||||||||||||
Trailing Twelve Month Net Operating Income Data | |||||||||||||
Proportionate Property Net Operating Income | |||||||||||||
Conventional Same Store and Other | Affordable | Total | |||||||||||
Rental and other property revenues [1] | $ | 810,198 | $ | 120,245 | $ | 930,443 | |||||||
Property operating expenses [1] | (292,984 | ) | (47,938 | ) | (340,922 | ) | |||||||
Property NOI [1] | 517,214 | 72,307 | 589,521 | ||||||||||
Assumed property management fee (3.0% of revenues) | (24,306 | ) | (3,607 | ) | (27,913 | ) | |||||||
Property NOI net of assumed property management fee | $ | 492,908 | $ | 68,700 | $ | 561,608 |
Proportionate Balance Sheet Data | ||||||||||||||||
As of September 30, 2012 | ||||||||||||||||
Consolidated GAAP Balance Sheet | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Balance Sheet | |||||||||||||
Assets | ||||||||||||||||
Real estate | $ | 8,600,254 | $ | 61,015 | $ | (551,709 | ) | $ | 8,109,560 | |||||||
Accumulated depreciation | (2,849,046 | ) | (8,924 | ) | 102,308 | (2,755,662 | ) | |||||||||
Net real estate [2] | 5,751,208 | 52,091 | (449,401 | ) | 5,353,898 | |||||||||||
Cash and cash equivalents | 102,515 | 683 | (40,763 | ) | 62,435 | |||||||||||
Restricted cash | 158,649 | 2,145 | (17,741 | ) | 143,053 | |||||||||||
Accounts receivable, net | 36,540 | 93 | (3,510 | ) | 33,123 | |||||||||||
Notes receivable, net | 103,288 | — | (1,133 | ) | 102,155 | |||||||||||
Investment in unconsolidated real estate partnerships | 38,249 | (13,753 | ) | (23,172 | ) | 1,324 | ||||||||||
Deferred financing costs, net | 40,883 | 243 | (3,864 | ) | 37,262 | |||||||||||
Goodwill | 56,955 | — | — | 56,955 | ||||||||||||
Investment in management contracts | 457 | — | — | 457 | ||||||||||||
Other assets | 230,169 | 245 | 7,636 | 238,050 | ||||||||||||
Assets held for sale | 46,475 | — | (3,200 | ) | 43,275 | |||||||||||
Total assets | $ | 6,565,388 | $ | 41,747 | $ | (535,148 | ) | $ | 6,071,987 | |||||||
Liabilities and Equity | ||||||||||||||||
Non-recourse property debt | $ | 4,871,981 | $ | 32,149 | $ | (337,125 | ) | $ | 4,567,005 | |||||||
Revolving credit facility borrowings | 66,200 | — | — | 66,200 | ||||||||||||
Deferred income [3] | 133,054 | 32 | — | 133,086 | ||||||||||||
Other liabilities | 264,369 | 9,566 | (43,978 | ) | 229,957 | |||||||||||
Liabilities related to assets held for sale | 46,729 | — | (5,778 | ) | 40,951 | |||||||||||
Total liabilities | 5,382,333 | 41,747 | (386,881 | ) | 5,037,199 | |||||||||||
Preferred noncontrolling interests in Aimco Operating Partnership | 80,077 | — | — | 80,077 | ||||||||||||
Perpetual preferred stock | 68,114 | — | — | 68,114 | ||||||||||||
Other Aimco equity | 807,558 | — | 116,019 | 923,577 | ||||||||||||
Noncontrolling interests in consolidated real estate partnerships | 264,286 | — | (264,286 | ) | — | |||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (36,980 | ) | — | — | (36,980 | ) | ||||||||||
Total liabilities and equity | $ | 6,565,388 | $ | 41,747 | $ | (535,148 | ) | $ | 6,071,987 |
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Supplemental Schedule 3 (continued) | |||||||
Net Asset Value Supplemental Information | (Page 2 of 2) | ||||||
(in thousands) (unaudited) | |||||||
[1] | Refer to the Glossary for the definition of Proportionate Property Net Operating Income, as well as a reconciliation of the trailing twelve month amounts of Rental and other property revenues, Property operating expenses and Proportionate Property Net Operating Income to the corresponding amounts computed in accordance with GAAP. | ||||||
[2] | Net real estate includes three vacant redevelopment properties, Lincoln Place, Pacific Bay Vistas and The Preserve at Marin, that have September 30, 2012 net book values of $307 million in total. These properties are included in Aimco’s redevelopment pipeline. | ||||||
[3] | Deferred income includes $85.2 million of unamortized cash contributions received by Aimco in exchange for the sale of tax credit and related tax benefits. These cash contributions are deferred upon receipt and amortized into earnings in future periods as Aimco delivers the tax credits and related benefits to the investors. | ||||||
Deferred income and the future earnings associated with the deferred income are excluded from Aimco’s internal estimates of NAV. However, amortization of deferred tax credit income is included in net income and, as such, FFO. Projected amortization of deferred tax credit contributions received and to be received, as well as the estimated income taxes thereon, are presented below. |
September 30, 2012 | ||||||||||||||
Deferred tax credit income balance | $ | 85,231 | ||||||||||||
Cash contributions to be received in the future | 45,708 | |||||||||||||
Total to be amortized | $ | 130,939 | ||||||||||||
Amortization of Deferred Income | Estimated Income Taxes | Projected Income, net of tax | ||||||||||||
2012 Q4 | $ | 6,993 | $ | (2,727 | ) | $ | 4,266 | |||||||
2013 | 27,403 | (10,687 | ) | 16,716 | ||||||||||
2014 | 26,431 | (10,308 | ) | 16,123 | ||||||||||
2015 | 22,498 | (8,774 | ) | 13,724 | ||||||||||
2016 | 17,266 | (6,734 | ) | 10,532 | ||||||||||
Thereafter | 30,348 | (11,836 | ) | 18,512 | ||||||||||
Total | $ | 130,939 | $ | (51,066 | ) | $ | 79,873 |
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Supplemental Schedule 4 | ||||||||||||||||||||||
Non-Recourse Property Debt Information | (Page 1 of 2) | |||||||||||||||||||||
As of September 30, 2012 | ||||||||||||||||||||||
(dollars in thousands) (unaudited) | ||||||||||||||||||||||
Non-Recourse Property Debt Balances and Characteristics | ||||||||||||||||||||||
Debt | Consolidated | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Total Aimco Share | Weighted Average Maturity (years) | Weighted Average Rate | ||||||||||||||||
Conventional Portfolio: | ||||||||||||||||||||||
Fixed rate loans payable [1] | $ | 4,194,398 | $ | 8,722 | $ | (186,935 | ) | $ | 4,016,185 | 7.0 | 5.75 | % | ||||||||||
Fixed rate tax-exempt bonds | 16,580 | — | (3,338 | ) | 13,242 | 1.8 | 6.32 | % | ||||||||||||||
Floating rate tax-exempt bonds | 59,205 | — | (45 | ) | 59,160 | 7.1 | 0.19 | % | ||||||||||||||
Total property tax-exempt bond financing | 75,785 | — | (3,383 | ) | 72,402 | 5.9 | 1.53 | % | ||||||||||||||
Total Conventional portfolio | 4,270,183 | 8,722 | (190,318 | ) | 4,088,587 | 7.0 | 5.67 | % | ||||||||||||||
Affordable Portfolio: | ||||||||||||||||||||||
Fixed rate loans payable | 373,275 | 23,427 | (109,960 | ) | 286,742 | 10.8 | 4.49 | % | ||||||||||||||
Floating rate loans payable | 28,336 | — | (12,088 | ) | 16,248 | 6.6 | 2.83 | % | ||||||||||||||
Total property loans payable | 401,611 | 23,427 | (122,048 | ) | 302,990 | 10.5 | 4.38 | % | ||||||||||||||
Fixed rate tax-exempt bonds | 102,152 | — | (24,759 | ) | 77,393 | 26.2 | 4.98 | % | ||||||||||||||
Floating rate tax-exempt bonds | 98,035 | — | — | 98,035 | 5.3 | 2.81 | % | |||||||||||||||
Total property tax-exempt bond financing | 200,187 | — | (24,759 | ) | 175,428 | 16.0 | 3.92 | % | ||||||||||||||
Total Affordable portfolio | 601,798 | 23,427 | (146,807 | ) | 478,418 | 12.3 | 4.22 | % | ||||||||||||||
Total non-recourse property debt | $ | 4,871,981 | $ | 32,149 | $ | (337,125 | ) | $ | 4,567,005 | 7.7 | 5.49 | % | ||||||||||
Aimco Share Non-Recourse Property Debt |
Amount | % of Total | ||||||
Fixed rate property debt | $ | 4,393,562 | 96.2 | % | |||
Floating rate tax-exempt bonds | 157,195 | 3.4 | % | ||||
Floating rate loans payable | 16,248 | 0.4 | % | ||||
Total | $ | 4,567,005 |
Amortization | Maturities | Total | Maturities as a Percent of Total Debt | Average Rate on Maturing Debt | ||||||||||||||
2012 Q4 | $ | 20,569 | $ | 31 | $ | 20,600 | 0.00 | % | 5.50 | % | ||||||||
2013 Q1 | 20,602 | 77,256 | 97,858 | 1.69 | % | 5.10 | % | |||||||||||
2013 Q2 | 20,605 | 23,487 | 44,092 | 0.51 | % | 5.36 | % | |||||||||||
2013 Q3 | 20,817 | 65,816 | 86,633 | 1.44 | % | 5.67 | % | |||||||||||
2013 Q4 | 21,025 | 68,706 | 89,731 | 1.50 | % | 6.89 | % | |||||||||||
Total 2013 | 83,049 | 235,265 | 318,314 | 5.15 | % | 5.81 | % | |||||||||||
2014 | 84,753 | 272,995 | 357,748 | 5.98 | % | 4.70 | % | |||||||||||
2015 | 84,754 | 156,482 | 241,236 | 3.43 | % | 4.71 | % | |||||||||||
2016 | 83,058 | 365,202 | 448,260 | 8.00 | % | 5.66 | % | |||||||||||
2017 | 78,027 | 446,367 | 524,394 | 9.77 | % | 5.95 | % | |||||||||||
2018 | 72,443 | 201,123 | 273,566 | 4.40 | % | 4.62 | % | |||||||||||
2019 | 66,347 | 524,371 | 590,718 | 11.48 | % | 5.78 | % | |||||||||||
2020 | 59,045 | 391,482 | 450,527 | 8.57 | % | 6.53 | % | |||||||||||
2021 [2] | 37,913 | 725,990 | 763,903 | 15.90 | % | 5.71 | % | |||||||||||
2022 | 25,833 | 175,556 | 201,389 | 3.84 | % | 5.16 | % | |||||||||||
Thereafter | 245,921 | 130,429 | 376,350 | 2.86 | % | 3.23 | % | |||||||||||
Total | $ | 941,712 | $ | 3,625,293 | $ | 4,567,005 | ||||||||||||
[1] | In 2011, $673.8 million of fixed rate loans payable were securitized and Aimco purchased for $51.5 million the first loss and two mezzanine positions in the trust that holds these loans. The investments, which have a face value of $100.9 million, are presented in other assets on Aimco’s consolidated balance sheet. | ||||||||
[2] | 2021 maturities include property loans that will repay Aimco’s first loss and mezzanine positions in the securitization. After consideration of the repayment of these investments, the net effective maturities exposure for 2021 is $625.1 million, or 14.0% of maturities as a percentage of total debt. |
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Supplemental Schedule 4 (continued) | ||||||||||||||||||
(page 2 of 2) | ||||||||||||||||||
Year-to-Date Property Loan Closings (Aimco Share) | ||||||||||||||||||
Original Loan Maturity Year | Loan Amount Refinanced | New Loan Amount | Net Proceeds [1] | Prior Rate | New Rate | |||||||||||||
2012 | $ | 55.0 | $ | 72.0 | $ | 16.9 | 6.85 | % | 4.54 | % | ||||||||
2016 | 0.9 | 6.1 | 5.3 | 4.75 | % | 4.72 | % | |||||||||||
2028 | 14.3 | 14.5 | 0.2 | 1.50 | % | 4.16 | % | |||||||||||
New loans | — | 2.6 | 2.6 | — | 4.72 | % | ||||||||||||
Acquisition [2] | — | 58.8 | — | — | 5.00 | % | ||||||||||||
Totals | $ | 70.2 | $ | 154.0 | $ | 25.0 | 5.74 | % | 4.69 | % | ||||||||
Debt Ratios | ||||||||||||||||||
Trailing Twelve Months | Annualized Third Quarter | |||||||||||||||||
Debt to EBITDA | 7.9x | 7.7x | ||||||||||||||||
Debt and Preferred Equity to EBITDA | 8.1x | 8.0x | ||||||||||||||||
EBITDA Coverage of Interest | 2.3x | 2.3x | ||||||||||||||||
EBITDA Coverage of Interest and Preferred Dividends [3] | 2.2x | 2.2x | ||||||||||||||||
Revolving Line of Credit Debt Coverage Covenants | ||||||||||||||||||
Amount | Covenant | |||||||||||||||||
Debt Service Coverage Ratio | 1.63x | 1.50x | ||||||||||||||||
Fixed Charge Coverage Ratio | 1.44x | 1.30x | ||||||||||||||||
Credit Ratings | ||||||||||||||||||
Moody’s Investor Service | Corporate Family Rating | Ba1 (stable outlook) | ||||||||||||||||
Standard and Poor’s | Corporate Credit Rating | BB+ (stable) | ||||||||||||||||
Notes | ||||||||||||||||||
[1] Net Proceeds is after transaction costs, prepayment penalties and payment of distributions to noncontrolling limited partners. | ||||||||||||||||||
[2] Includes a new non-recourse property loan for $20.0 million and $38.8 million of non-recourse property debt obligations assumed in connection with property acquisitions (see Supplemental Schedule 8 for further details). At the date of acquisition, the assumed loans had a fair value of $44.0 million, and a weighted average effective interest rate of 3.35%. | ||||||||||||||||||
[3] EBITDA Coverage of Interest and Preferred Dividends ratios are provided on a pro forma basis to exclude dividends on preferred stock redeemed during 2012. |
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Supplemental Schedule 5 | |||||||||||
Share Data | |||||||||||
(in thousands) (unaudited) | |||||||||||
Preferred Securities | |||||||||||
Shares/Units Outstanding as of September 30, 2012 | Date First Available for Redemption by Aimco | Coupon | Amount | ||||||||
Perpetual Preferred Stock: | |||||||||||
Class Z | 1,274 | 7/29/2016 | 7.000% | $ | 31,856 | ||||||
Series A Community Reinvestment Act | — | 6/30/2011 | 1.710% | 37,000 | |||||||
Total perpetual preferred stock | 68,856 | ||||||||||
Preferred Partnership Units | 2,931 | 8.111% | 79,261 | ||||||||
Total preferred securities | $ | 148,117 | |||||||||
Common Stock, Partnership Units and Equivalents | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
As of | September 30, 2012 | September 30, 2012 | |||||||||||||
September 30, 2012 | EPS | FFO | EPS | FFO | |||||||||||
Class A Common Stock outstanding | 145,029 | 144,959 | 144,959 | 130,960 | 130,960 | ||||||||||
Dilutive securities: | |||||||||||||||
Options and restricted stock | 285 | — | 160 | — | 305 | ||||||||||
Total shares and dilutive share equivalents | 145,314 | 144,959 | 145,119 | 130,960 | 131,265 | ||||||||||
Common Partnership Units and equivalents | 8,013 | ||||||||||||||
Total shares, units and dilutive share equivalents | 153,327 | ||||||||||||||
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Supplemental Schedule 6(a) | |||||||||||||||||||||||||||||||||||||||||
Conventional Same Store Operating Results | |||||||||||||||||||||||||||||||||||||||||
Third Quarter 2012 Compared to Third Quarter 2011 | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except site, unit and per unit data) (unaudited) | |||||||||||||||||||||||||||||||||||||||||
Revenue | Expenses | Net Operating Income | Operating Margin | Average Daily Occupancy During Period | Average Revenue per Unit | ||||||||||||||||||||||||||||||||||||
Properties | Units | Effective Units | 3Q 2012 | 3Q 2011 | Growth | 3Q 2012 | 3Q 2011 | Growth | 3Q 2012 | 3Q 2011 | Growth | 3Q 2012 | 3Q 2012 | 3Q 2011 | 3Q 2012 | 3Q 2011 | |||||||||||||||||||||||||
Target Markets | |||||||||||||||||||||||||||||||||||||||||
Los Angeles | 12 | 3,552 | 2,901 | $ | 18,478 | $ | 17,903 | 3.2% | $ | 5,495 | $ | 5,063 | 8.5% | $ | 12,983 | $ | 12,840 | 1.1% | 70.3% | 95.1% | 96.5% | $ | 2,232 | $ | 2,133 | ||||||||||||||||
Orange County | 4 | 1,213 | 1,213 | 6,148 | 5,859 | 4.9% | 1,892 | 1,867 | 1.3% | 4,256 | 3,992 | 6.6% | 69.2% | 97.2% | 97.0% | 1,739 | 1,660 | ||||||||||||||||||||||||
San Diego | 6 | 2,144 | 2,144 | 8,803 | 8,519 | 3.3% | 2,639 | 2,589 | 1.9% | 6,164 | 5,930 | 3.9% | 70.0% | 95.3% | 95.6% | 1,436 | 1,386 | ||||||||||||||||||||||||
Southern CA Total | 22 | 6,909 | 6,257 | 33,429 | 32,281 | 3.6% | 10,026 | 9,519 | 5.3% | 23,403 | 22,762 | 2.8% | 70.0% | 95.6% | 96.3% | 1,864 | 1,786 | ||||||||||||||||||||||||
East Bay | 2 | 413 | 413 | 1,818 | 1,656 | 9.8% | 689 | 576 | 19.6% | 1,129 | 1,080 | 4.5% | 62.1% | 97.1% | 97.3% | 1,512 | 1,373 | ||||||||||||||||||||||||
San Jose | 1 | 224 | 224 | 1,162 | 1,078 | 7.8% | 396 | 249 | 59.0% | 766 | 829 | (7.6)% | 65.9% | 96.1% | 95.5% | 1,799 | 1,679 | ||||||||||||||||||||||||
San Francisco | 5 | 774 | 774 | 4,355 | 3,964 | 9.9% | 1,434 | 1,314 | 9.1% | 2,921 | 2,650 | 10.2% | 67.1% | 96.7% | 96.5% | 1,939 | 1,769 | ||||||||||||||||||||||||
Northern CA Total | 8 | 1,411 | 1,411 | 7,335 | 6,698 | 9.5% | 2,519 | 2,139 | 17.8% | 4,816 | 4,559 | 5.6% | 65.7% | 96.7% | 96.6% | 1,792 | 1,638 | ||||||||||||||||||||||||
Seattle | 1 | 104 | 104 | 441 | 416 | 6.0% | 187 | 193 | (3.1)% | 254 | 223 | 13.9% | 57.6% | 96.9% | 96.4% | 1,461 | 1,383 | ||||||||||||||||||||||||
Pacific Total | 31 | 8,424 | 7,772 | 41,205 | 39,395 | 4.6% | 12,732 | 11,851 | 7.4% | 28,473 | 27,544 | 3.4% | 69.1% | 95.8% | 96.3% | 1,845 | 1,754 | ||||||||||||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 4,751 | 4,346 | 9.3% | 2,064 | 1,688 | 22.3% | 2,687 | 2,658 | 1.1% | 56.6% | 95.5% | 95.7% | 1,427 | 1,303 | ||||||||||||||||||||||||
Washington - NoVa - MD | 14 | 6,547 | 6,462 | 27,306 | 26,129 | 4.5% | 8,611 | 9,035 | (4.7)% | 18,695 | 17,094 | 9.4% | 68.5% | 95.7% | 96.2% | 1,472 | 1,401 | ||||||||||||||||||||||||
Boston | 9 | 3,068 | 3,068 | 11,616 | 11,081 | 4.8% | 4,321 | 4,228 | 2.2% | 7,295 | 6,853 | 6.4% | 62.8% | 95.8% | 96.8% | 1,318 | 1,243 | ||||||||||||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 16,202 | 15,711 | 3.1% | 6,646 | 6,689 | (0.6)% | 9,556 | 9,022 | 5.9% | 59.0% | 93.9% | 94.5% | 1,509 | 1,455 | ||||||||||||||||||||||||
Northeast Total | 32 | 14,665 | 14,501 | 59,875 | 57,267 | 4.6% | 21,642 | 21,640 | 0.0% | 38,233 | 35,627 | 7.3% | 63.9% | 95.2% | 95.8% | 1,445 | 1,373 | ||||||||||||||||||||||||
Miami | 5 | 2,471 | 2,460 | 13,554 | 12,595 | 7.6% | 4,496 | 4,920 | (8.6)% | 9,058 | 7,675 | 18.0% | 66.8% | 96.5% | 96.1% | 1,903 | 1,776 | ||||||||||||||||||||||||
Palm Beach - Fort Lauderdale | 2 | 704 | 704 | 1,929 | 1,820 | 6.0% | 902 | 854 | 5.6% | 1,027 | 966 | 6.3% | 53.2% | 95.2% | 94.9% | 960 | 908 | ||||||||||||||||||||||||
Orlando | 5 | 1,481 | 1,481 | 3,587 | 3,531 | 1.6% | 1,600 | 1,605 | (0.3)% | 1,987 | 1,926 | 3.2% | 55.4% | 94.6% | 95.7% | 853 | 831 | ||||||||||||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 4,396 | 4,207 | 4.5% | 1,915 | 2,033 | (5.8)% | 2,481 | 2,174 | 14.1% | 56.4% | 95.6% | 95.0% | 933 | 898 | ||||||||||||||||||||||||
Florida Total | 16 | 6,299 | 6,288 | 23,466 | 22,153 | 5.9% | 8,913 | 9,412 | (5.3)% | 14,553 | 12,741 | 14.2% | 62.0% | 95.7% | 95.6% | 1,300 | 1,229 | ||||||||||||||||||||||||
Houston | 5 | 2,237 | 2,168 | 5,096 | 4,819 | 5.7% | 2,447 | 2,187 | 11.9% | 2,649 | 2,632 | 0.6% | 52.0% | 95.1% | 92.0% | 824 | 806 | ||||||||||||||||||||||||
Denver | 8 | 2,177 | 2,104 | 6,819 | 6,487 | 5.1% | 2,137 | 2,113 | 1.1% | 4,682 | 4,374 | 7.0% | 68.7% | 96.2% | 97.1% | 1,123 | 1,058 | ||||||||||||||||||||||||
Phoenix | 6 | 1,446 | 1,146 | 2,797 | 2,703 | 3.5% | 1,063 | 1,085 | (2.0)% | 1,734 | 1,618 | 7.2% | 62.0% | 94.7% | 95.5% | 858 | 823 | ||||||||||||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 3,514 | 3,227 | 8.9% | 1,322 | 899 | 47.1% | 2,192 | 2,328 | (5.8)% | 62.4% | 96.4% | 96.0% | 1,081 | 996 | ||||||||||||||||||||||||
Sunbelt Total | 40 | 13,454 | 12,831 | 41,692 | 39,389 | 5.8% | 15,882 | 15,696 | 1.2% | 25,810 | 23,693 | 8.9% | 61.9% | 95.6% | 95.3% | 1,133 | 1,074 | ||||||||||||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 15,163 | 14,513 | 4.5% | 5,579 | 5,505 | 1.3% | 9,584 | 9,008 | 6.4% | 63.2% | 94.9% | 93.8% | 1,355 | 1,313 | ||||||||||||||||||||||||
Total Target Markets | 116 | 40,536 | 39,033 | 157,935 | 150,564 | 4.9% | 55,835 | 54,692 | 2.1% | 102,100 | 95,872 | 6.5% | 64.6% | 95.4% | 95.5% | 1,413 | 1,346 | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 3,827 | 3,600 | 6.3% | 1,567 | 1,495 | 4.8% | 2,260 | 2,105 | 7.4% | 59.1% | 93.5% | 92.4% | 1,281 | 1,218 | ||||||||||||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 3,340 | 3,134 | 6.6% | 1,263 | 1,301 | (2.9)% | 2,077 | 1,833 | 13.3% | 62.2% | 95.7% | 95.8% | 1,044 | 979 | ||||||||||||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 4,922 | 4,821 | 2.1% | 1,648 | 1,586 | 3.9% | 3,274 | 3,235 | 1.2% | 66.5% | 94.6% | 96.5% | 1,108 | 1,064 | ||||||||||||||||||||||||
Other Markets | 14 | 8,218 | 8,137 | 20,917 | 19,960 | 4.8% | 7,834 | 8,703 | (10.0)% | 13,083 | 11,257 | 16.2% | 62.5% | 94.7% | 93.4% | 904 | 875 | ||||||||||||||||||||||||
Total Other | 29 | 12,155 | 11,881 | 33,006 | 31,515 | 4.7% | 12,312 | 13,085 | (5.9)% | 20,694 | 18,430 | 12.3% | 62.7% | 94.7% | 94.0% | 978 | 941 | ||||||||||||||||||||||||
Grand Total | 145 | 52,691 | 50,914 | $ | 190,941 | $ | 182,079 | 4.9% | $ | 68,147 | $ | 67,777 | 0.5% | $ | 122,794 | $ | 114,302 | 7.4% | 64.3% | 95.3% | 95.2% | $ | 1,312 | $ | 1,252 |
![]() | 22 |
![](https://capedge.com/proxy/8-K/0000922864-12-000016/landscape-2012q3.jpg)
Supplemental Schedule 6(b) | |||||||||||||||||||||||||||||||||||||||||
Conventional Same Store Operating Results | |||||||||||||||||||||||||||||||||||||||||
Third Quarter 2012 Compared to Second Quarter 2012 | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except site, unit and per unit data) (unaudited) | |||||||||||||||||||||||||||||||||||||||||
Revenue | Expenses | Net Operating Income | Operating Margin | Average Daily Occupancy During Period | Average Revenue per Unit | ||||||||||||||||||||||||||||||||||||
Properties | Units | Effective Units | 3Q 2012 | 2Q 2012 | Growth | 3Q 2012 | 2Q 2012 | Growth | 3Q 2012 | 2Q 2012 | Growth | 3Q 2012 | 3Q 2012 | 2Q 2012 | 3Q 2012 | 2Q 2012 | |||||||||||||||||||||||||
Target Markets | |||||||||||||||||||||||||||||||||||||||||
Los Angeles | 12 | 3,552 | 2,901 | $ | 18,478 | $ | 18,299 | 1.0% | $ | 5,495 | $ | 5,260 | 4.5% | $ | 12,983 | $ | 13,039 | (0.4)% | 70.3% | 95.1% | 95.6% | $ | 2,232 | $ | 2,201 | ||||||||||||||||
Orange County | 4 | 1,213 | 1,213 | 6,148 | 5,989 | 2.7% | 1,892 | 1,830 | 3.4% | 4,256 | 4,159 | 2.3% | 69.2% | 97.2% | 95.8% | 1,739 | 1,719 | ||||||||||||||||||||||||
San Diego | 6 | 2,144 | 2,144 | 8,803 | 8,617 | 2.2% | 2,639 | 2,560 | 3.1% | 6,164 | 6,057 | 1.8% | 70.0% | 95.3% | 96.1% | 1,436 | 1,394 | ||||||||||||||||||||||||
Southern CA Total | 22 | 6,909 | 6,257 | 33,429 | 32,905 | 1.6% | 10,026 | 9,650 | 3.9% | 23,403 | 23,255 | 0.6% | 70.0% | 95.6% | 95.8% | 1,864 | 1,830 | ||||||||||||||||||||||||
East Bay | 2 | 413 | 413 | 1,818 | 1,758 | 3.4% | 689 | 622 | 10.8% | 1,129 | 1,136 | (0.6)% | 62.1% | 97.1% | 95.6% | 1,512 | 1,485 | ||||||||||||||||||||||||
San Jose | 1 | 224 | 224 | 1,162 | 1,165 | (0.3)% | 396 | 395 | 0.3% | 766 | 770 | (0.5)% | 65.9% | 96.1% | 97.2% | 1,799 | 1,784 | ||||||||||||||||||||||||
San Francisco | 5 | 774 | 774 | 4,355 | 4,200 | 3.7% | 1,434 | 1,412 | 1.6% | 2,921 | 2,788 | 4.8% | 67.1% | 96.7% | 96.1% | 1,939 | 1,882 | ||||||||||||||||||||||||
Northern CA Total | 8 | 1,411 | 1,411 | 7,335 | 7,123 | 3.0% | 2,519 | 2,429 | 3.7% | 4,816 | 4,694 | 2.6% | 65.7% | 96.7% | 96.1% | 1,792 | 1,751 | ||||||||||||||||||||||||
Seattle | 1 | 104 | 104 | 441 | 444 | (0.7)% | 187 | 171 | 9.4% | 254 | 273 | (7.0)% | 57.6% | 96.9% | 97.9% | 1,461 | 1,452 | ||||||||||||||||||||||||
Pacific Total | 31 | 8,424 | 7,772 | 41,205 | 40,472 | 1.8% | 12,732 | 12,250 | 3.9% | 28,473 | 28,222 | 0.9% | 69.1% | 95.8% | 95.9% | 1,845 | 1,811 | ||||||||||||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 4,751 | 4,691 | 1.3% | 2,064 | 1,555 | 32.7% | 2,687 | 3,136 | (14.3)% | 56.6% | 95.5% | 97.1% | 1,427 | 1,387 | ||||||||||||||||||||||||
Washington - NoVa - MD | 14 | 6,547 | 6,462 | 27,306 | 26,918 | 1.4% | 8,611 | 8,259 | 4.3% | 18,695 | 18,659 | 0.2% | 68.5% | 95.7% | 96.4% | 1,472 | 1,441 | ||||||||||||||||||||||||
Boston | 9 | 3,068 | 3,068 | 11,616 | 11,540 | 0.7% | 4,321 | 4,300 | 0.5% | 7,295 | 7,240 | 0.8% | 62.8% | 95.8% | 96.1% | 1,318 | 1,305 | ||||||||||||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 16,202 | 15,926 | 1.7% | 6,646 | 6,290 | 5.7% | 9,556 | 9,636 | (0.8)% | 59.0% | 93.9% | 94.7% | 1,509 | 1,472 | ||||||||||||||||||||||||
Northeast Total | 32 | 14,665 | 14,501 | 59,875 | 59,075 | 1.4% | 21,642 | 20,404 | 6.1% | 38,233 | 38,671 | (1.1)% | 63.9% | 95.2% | 95.9% | 1,445 | 1,416 | ||||||||||||||||||||||||
Miami | 5 | 2,471 | 2,460 | 13,554 | 13,157 | 3.0% | 4,496 | 4,344 | 3.5% | 9,058 | 8,813 | 2.8% | 66.8% | 96.5% | 96.3% | 1,903 | 1,851 | ||||||||||||||||||||||||
Palm Beach - Fort Lauderdale | 2 | 704 | 704 | 1,929 | 1,910 | 1.0% | 902 | 868 | 3.9% | 1,027 | 1,042 | (1.4)% | 53.2% | 95.2% | 96.2% | 960 | 939 | ||||||||||||||||||||||||
Orlando | 5 | 1,481 | 1,481 | 3,587 | 3,601 | (0.4)% | 1,600 | 1,504 | 6.4% | 1,987 | 2,097 | (5.2)% | 55.4% | 94.6% | 94.6% | 853 | 857 | ||||||||||||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 4,396 | 4,307 | 2.1% | 1,915 | 1,868 | 2.5% | 2,481 | 2,439 | 1.7% | 56.4% | 95.6% | 95.0% | 933 | 919 | ||||||||||||||||||||||||
Florida Total | 16 | 6,299 | 6,288 | 23,466 | 22,975 | 2.1% | 8,913 | 8,584 | 3.8% | 14,553 | 14,391 | 1.1% | 62.0% | 95.7% | 95.6% | 1,300 | 1,275 | ||||||||||||||||||||||||
Houston | 5 | 2,237 | 2,168 | 5,096 | 4,944 | 3.1% | 2,447 | 2,241 | 9.2% | 2,649 | 2,703 | (2.0)% | 52.0% | 95.1% | 93.3% | 824 | 815 | ||||||||||||||||||||||||
Denver | 8 | 2,177 | 2,104 | 6,819 | 6,501 | 4.9% | 2,137 | 2,053 | 4.1% | 4,682 | 4,448 | 5.3% | 68.7% | 96.2% | 95.6% | 1,123 | 1,077 | ||||||||||||||||||||||||
Phoenix | 6 | 1,446 | 1,146 | 2,797 | 2,705 | 3.4% | 1,063 | 1,007 | 5.6% | 1,734 | 1,698 | 2.1% | 62.0% | 94.7% | 95.3% | 858 | 825 | ||||||||||||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 3,514 | 3,425 | 2.6% | 1,322 | 1,217 | 8.6% | 2,192 | 2,208 | (0.7)% | 62.4% | 96.4% | 95.5% | 1,081 | 1,062 | ||||||||||||||||||||||||
Sunbelt Total | 40 | 13,454 | 12,831 | 41,692 | 40,550 | 2.8% | 15,882 | 15,102 | 5.2% | 25,810 | 25,448 | 1.4% | 61.9% | 95.6% | 95.2% | 1,133 | 1,107 | ||||||||||||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 15,163 | 15,315 | (1.0)% | 5,579 | 5,647 | (1.2)% | 9,584 | 9,668 | (0.9)% | 63.2% | 94.9% | 95.7% | 1,355 | 1,358 | ||||||||||||||||||||||||
Total Target Markets | 116 | 40,536 | 39,033 | 157,935 | 155,412 | 1.6% | 55,835 | 53,403 | 4.6% | 102,100 | 102,009 | 0.1% | 64.6% | 95.4% | 95.6% | 1,413 | 1,388 | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 3,827 | 3,706 | 3.3% | 1,567 | 1,368 | 14.5% | 2,260 | 2,338 | (3.3)% | 59.1% | 93.5% | 93.1% | 1,281 | 1,245 | ||||||||||||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 3,340 | 3,284 | 1.7% | 1,263 | 1,193 | 5.9% | 2,077 | 2,091 | (0.7)% | 62.2% | 95.7% | 96.6% | 1,044 | 1,017 | ||||||||||||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 4,922 | 4,849 | 1.5% | 1,648 | 1,571 | 4.9% | 3,274 | 3,278 | (0.1)% | 66.5% | 94.6% | 94.3% | 1,108 | 1,095 | ||||||||||||||||||||||||
Other Markets | 14 | 8,218 | 8,137 | 20,917 | 20,590 | 1.6% | 7,834 | 8,730 | (10.3)% | 13,083 | 11,860 | 10.3% | 62.5% | 94.7% | 95.1% | 904 | 887 | ||||||||||||||||||||||||
Total Other | 29 | 12,155 | 11,881 | 33,006 | 32,429 | 1.8% | 12,312 | 12,862 | (4.3)% | 20,694 | 19,567 | 5.8% | 62.7% | 94.7% | 94.9% | 978 | 958 | ||||||||||||||||||||||||
Grand Total | 145 | 52,691 | 50,914 | $ | 190,941 | $ | 187,841 | 1.7% | $ | 68,147 | $ | 66,265 | 2.8% | $ | 122,794 | $ | 121,576 | 1.0% | 64.3% | 95.3% | 95.5% | $ | 1,312 | $ | 1,288 |
![]() | 23 |
![](https://capedge.com/proxy/8-K/0000922864-12-000016/landscape-2012q3.jpg)
Supplemental Schedule 6(c) | |||||||||||||||||||||||||||||||||||||||||
Conventional Same Store Operating Results | |||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except site, unit and per unit data) (unaudited) | |||||||||||||||||||||||||||||||||||||||||
Revenue | Expenses | Net Operating Income | Operating Margin | Average Daily Occupancy During Period | Average Revenue per Unit | ||||||||||||||||||||||||||||||||||||
Properties | Units | Effective Units | YTD 3Q 2012 | YTD 3Q 2011 | Growth | YTD 3Q 2012 | YTD 3Q 2011 | Growth | YTD 3Q 2012 | YTD 3Q 2011 | Growth | YTD 3Q 2012 | YTD 3Q 2012 | YTD 3Q 2011 | YTD 3Q 2012 | YTD 3Q 2011 | |||||||||||||||||||||||||
Target Markets | |||||||||||||||||||||||||||||||||||||||||
Los Angeles | 12 | 3,552 | 2,901 | $ | 54,797 | $ | 52,920 | 3.5% | $ | 15,826 | $ | 15,621 | 1.3% | $ | 38,971 | $ | 37,299 | 4.5% | 71.1% | 95.6% | 96.6% | $ | 2,197 | $ | 2,098 | ||||||||||||||||
Orange County | 4 | 1,213 | 1,213 | 18,089 | 17,285 | 4.7% | 5,416 | 5,316 | 1.9% | 12,673 | 11,969 | 5.9% | 70.1% | 96.5% | 97.2% | 1,717 | 1,629 | ||||||||||||||||||||||||
San Diego | 6 | 2,144 | 2,144 | 25,837 | 25,042 | 3.2% | 7,608 | 7,213 | 5.5% | 18,229 | 17,829 | 2.2% | 70.6% | 95.4% | 95.7% | 1,404 | 1,357 | ||||||||||||||||||||||||
Southern CA Total | 22 | 6,909 | 6,257 | 98,723 | 95,247 | 3.6% | 28,850 | 28,150 | 2.5% | 69,873 | 67,097 | 4.1% | 70.8% | 95.7% | 96.4% | 1,832 | 1,754 | ||||||||||||||||||||||||
East Bay | 2 | 413 | 413 | 5,328 | 4,890 | 9.0% | 1,960 | 1,809 | 8.3% | 3,368 | 3,081 | 9.3% | 63.2% | 96.8% | 97.7% | 1,481 | 1,346 | ||||||||||||||||||||||||
San Jose | 1 | 224 | 224 | 3,461 | 3,213 | 7.7% | 1,220 | 1,064 | 14.7% | 2,241 | 2,149 | 4.3% | 64.8% | 96.8% | 97.0% | 1,773 | 1,642 | ||||||||||||||||||||||||
San Francisco | 5 | 774 | 774 | 12,711 | 11,494 | 10.6% | 4,222 | 3,830 | 10.2% | 8,489 | 7,664 | 10.8% | 66.8% | 96.6% | 97.0% | 1,890 | 1,702 | ||||||||||||||||||||||||
Northern CA Total | 8 | 1,411 | 1,411 | 21,500 | 19,597 | 9.7% | 7,402 | 6,703 | 10.4% | 14,098 | 12,894 | 9.3% | 65.6% | 96.7% | 97.2% | 1,751 | 1,588 | ||||||||||||||||||||||||
Seattle | 1 | 104 | 104 | 1,318 | 1,235 | 6.7% | 531 | 519 | 2.3% | 787 | 716 | 9.9% | 59.7% | 97.5% | 96.2% | 1,445 | 1,372 | ||||||||||||||||||||||||
Pacific Total | 31 | 8,424 | 7,772 | 121,541 | 116,079 | 6.7% | 36,783 | 35,372 | 4.0% | 84,758 | 80,707 | 5.0% | 69.7% | 95.9% | 96.6% | 1,812 | 1,719 | ||||||||||||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 14,128 | 12,947 | 9.1% | 5,131 | 4,810 | 6.7% | 8,997 | 8,137 | 10.6% | 63.7% | 96.6% | 95.1% | 1,399 | 1,302 | ||||||||||||||||||||||||
Washington - NoVa - MD | 14 | 6,547 | 6,462 | 81,001 | 77,419 | 4.6% | 24,888 | 24,284 | 2.5% | 56,113 | 53,135 | 5.6% | 69.3% | 96.2% | 96.5% | 1,447 | 1,379 | ||||||||||||||||||||||||
Boston | 9 | 3,068 | 3,068 | 34,344 | 32,653 | 5.2% | 12,912 | 13,003 | (0.7)% | 21,432 | 19,650 | 9.1% | 62.4% | 95.9% | 96.4% | 1,297 | 1,227 | ||||||||||||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 48,270 | 46,564 | 3.7% | 19,595 | 20,050 | (2.3)% | 28,675 | 26,514 | 8.2% | 59.4% | 94.8% | 95.3% | 1,485 | 1,425 | ||||||||||||||||||||||||
Northeast Total | 32 | 14,665 | 14,501 | 177,743 | 169,583 | 4.8% | 62,526 | 62,147 | 0.6% | 115,217 | 107,436 | 7.2% | 64.8% | 95.8% | 96.1% | 1,422 | 1,353 | ||||||||||||||||||||||||
Miami | 5 | 2,471 | 2,460 | 39,699 | 37,292 | 6.5% | 13,078 | 14,157 | (7.6)% | 26,621 | 23,135 | 15.1% | 67.1% | 96.8% | 96.9% | 1,853 | 1,739 | ||||||||||||||||||||||||
Palm Beach - Fort Lauderdale | 2 | 704 | 704 | 5,668 | 5,455 | 3.9% | 2,642 | 2,527 | 4.6% | 3,026 | 2,928 | 3.3% | 53.4% | 95.5% | 95.9% | 936 | 898 | ||||||||||||||||||||||||
Orlando | 5 | 1,481 | 1,481 | 10,784 | 10,420 | 3.5% | 4,580 | 4,567 | 0.3% | 6,204 | 5,853 | 6.0% | 57.5% | 94.9% | 95.0% | 852 | 823 | ||||||||||||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 12,979 | 12,308 | 5.5% | 5,643 | 5,883 | (4.1)% | 7,336 | 6,425 | 14.2% | 56.5% | 95.4% | 94.8% | 920 | 878 | ||||||||||||||||||||||||
Florida Total | 16 | 6,299 | 6,288 | 69,130 | 65,475 | 5.6% | 25,943 | 27,134 | (4.4)% | 43,187 | 38,341 | 12.6% | 62.5% | 95.9% | 95.8% | 1,274 | 1,208 | ||||||||||||||||||||||||
Houston | 5 | 2,237 | 2,168 | 14,947 | 14,536 | 2.8% | 6,873 | 6,519 | 5.4% | 8,074 | 8,017 | 0.7% | 54.0% | 94.1% | 93.2% | 815 | 799 | ||||||||||||||||||||||||
Denver | 8 | 2,177 | 2,104 | 19,857 | 18,718 | 6.1% | 6,213 | 6,153 | 1.0% | 13,644 | 12,565 | 8.6% | 68.7% | 96.3% | 97.5% | 1,089 | 1,014 | ||||||||||||||||||||||||
Phoenix | 6 | 1,446 | 1,146 | 8,192 | 7,837 | 4.5% | 3,011 | 3,023 | (0.4)% | 5,181 | 4,814 | 7.6% | 63.2% | 95.5% | 96.5% | 832 | 787 | ||||||||||||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 10,329 | 9,593 | 7.7% | 3,848 | 3,503 | 9.8% | 6,481 | 6,090 | 6.4% | 62.7% | 96.5% | 96.8% | 1,058 | 979 | ||||||||||||||||||||||||
Sunbelt Total | 40 | 13,454 | 12,831 | 122,455 | 116,159 | 5.4% | 45,888 | 46,332 | (1.0)% | 76,567 | 69,827 | 9.7% | 62.5% | 95.7% | 95.8% | 1,109 | 1,050 | ||||||||||||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 45,306 | 43,727 | 3.6% | 16,884 | 15,815 | 6.8% | 28,422 | 27,912 | 1.8% | 62.7% | 95.4% | 95.9% | 1,343 | 1,289 | ||||||||||||||||||||||||
Total Target Markets | 116 | 40,536 | 39,033 | 467,045 | 445,548 | 4.8% | 162,081 | 159,666 | 1.5% | 304,964 | 285,882 | 6.7% | 65.3% | 95.7% | 96.1% | 1,389 | 1,320 | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 11,308 | 11,003 | 2.8% | 4,336 | 4,242 | 2.2% | 6,972 | 6,761 | 3.1% | 61.7% | 94.1% | 94.9% | 1,253 | 1,208 | ||||||||||||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 9,911 | 9,268 | 6.9% | 3,639 | 3,603 | 1.0% | 6,272 | 5,665 | 10.7% | 63.3% | 96.3% | 95.1% | 1,026 | 972 | ||||||||||||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 14,620 | 14,515 | 0.7% | 4,645 | 4,496 | 3.3% | 9,975 | 10,019 | (0.4)% | 68.2% | 94.6% | 95.8% | 1,097 | 1,076 | ||||||||||||||||||||||||
Other Markets | 14 | 8,218 | 8,137 | 61,845 | 59,861 | 3.3% | 25,600 | 26,674 | (4.0)% | 36,245 | 33,187 | 9.2% | 58.6% | 95.2% | 95.0% | 887 | 861 | ||||||||||||||||||||||||
Total Other | 29 | 12,155 | 11,881 | 97,684 | 94,647 | 3.2% | 38,220 | 39,015 | (2.0)% | 59,464 | 55,632 | 6.9% | 60.9% | 95.1% | 95.1% | 960 | 931 | ||||||||||||||||||||||||
Grand Total | 145 | 52,691 | 50,914 | $ | 564,729 | $ | 540,195 | 4.5% | $ | 200,301 | $ | 198,681 | 0.8% | $ | 364,428 | $ | 341,514 | 6.7% | 64.5% | 95.6% | 95.8% | $ | 1,289 | $ | 1,230 |
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Supplemental Schedule 6(d) | |||||||||||||||
Conventional Same Store Operating Expense Detail | |||||||||||||||
Third Quarter and Year-to-Date Third Quarter 2012 | |||||||||||||||
(in thousands) (unaudited) | |||||||||||||||
Third Quarter 2012 Compared to Third Quarter 2011 | |||||||||||||||
3Q 2012 | % of Total | 3Q 2011 | $ Change | % Change | |||||||||||
Real estate taxes | $ | 16,984 | 24.9 | % | $ | 15,803 | $ | 1,181 | 7.5 | % | |||||
Onsite payroll | 13,340 | 19.6 | % | 15,934 | (2,594 | ) | (16.3 | )% | |||||||
Utilities | 11,400 | 16.7 | % | 11,935 | (535 | ) | (4.5 | )% | |||||||
Repairs and maintenance | 10,951 | 16.1 | % | 10,981 | (30 | ) | (0.3 | )% | |||||||
Software, technology and other | 5,007 | 7.3 | % | 4,766 | 241 | 5.1 | % | ||||||||
Insurance | 4,176 | 6.1 | % | 2,495 | 1,681 | 67.4 | % | ||||||||
Marketing | 2,342 | 3.4 | % | 1,989 | 353 | 17.7 | % | ||||||||
Expensed turnover costs | 3,947 | 5.9 | % | 3,874 | 73 | 1.9 | % | ||||||||
Total | $ | 68,147 | 100.0 | % | $ | 67,777 | $ | 370 | 0.5 | % | |||||
Third Quarter 2012 Compared to Second Quarter 2012 | |||||||||||||||
3Q 2012 | % of Total | 2Q 2012 | $ Change | % Change | |||||||||||
Real estate taxes | $ | 16,984 | 24.9 | % | $ | 17,777 | $ | (793 | ) | (4.5 | )% | ||||
Onsite payroll | 13,340 | 19.6 | % | 13,124 | 216 | 1.6 | % | ||||||||
Utilities | 11,400 | 16.7 | % | 11,002 | 398 | 3.6 | % | ||||||||
Repairs and maintenance | 10,951 | 16.1 | % | 10,652 | 299 | 2.8 | % | ||||||||
Software, technology and other | 5,007 | 7.3 | % | 4,572 | 435 | 9.5 | % | ||||||||
Insurance | 4,176 | 6.1 | % | 3,964 | 212 | 5.3 | % | ||||||||
Marketing | 2,342 | 3.4 | % | 2,071 | 271 | 13.1 | % | ||||||||
Expensed turnover costs | 3,947 | 5.9 | % | 3,103 | 844 | 27.2 | % | ||||||||
Total | $ | 68,147 | 100.0 | % | $ | 66,265 | $ | 1,882 | 2.8 | % | |||||
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011 | |||||||||||||||
YTD 3Q 2012 | % of Total | YTD 3Q 2011 | $ Change | % Change | |||||||||||
Real estate taxes | $ | 51,712 | 25.8 | % | $ | 49,522 | $ | 2,190 | 4.4 | % | |||||
Onsite payroll | 40,524 | 20.2 | % | 45,590 | (5,066 | ) | (11.1 | )% | |||||||
Utilities | 35,470 | 17.7 | % | 36,286 | (816 | ) | (2.2 | )% | |||||||
Repairs and maintenance | 31,661 | 15.8 | % | 31,253 | 408 | 1.3 | % | ||||||||
Software, technology and other | 13,873 | 6.9 | % | 12,579 | 1,294 | 10.3 | % | ||||||||
Insurance | 11,037 | 5.5 | % | 8,341 | 2,696 | 32.3 | % | ||||||||
Marketing | 6,710 | 3.3 | % | 6,179 | 531 | 8.6 | % | ||||||||
Expensed turnover costs | 9,314 | 4.8 | % | 8,931 | 383 | 4.3 | % | ||||||||
Total | $ | 200,301 | 100.0 | % | $ | 198,681 | $ | 1,620 | 0.8 | % |
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Supplemental Schedule 7(a) | ||||||||||||||||||||||||||||||||
Total Conventional Portfolio Data by Market | ||||||||||||||||||||||||||||||||
Third Quarter 2012 Compared to Third Quarter 2011 | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Quarter Ended September 30, 2012 | Quarter Ended September 30, 2011 | |||||||||||||||||||||||||||||||
Properties | Units | Effective Units | % Aimco NOI | Average Revenue per Effective Unit | Properties | Units | Effective Units | % Aimco NOI | Average Revenue per Effective Unit | |||||||||||||||||||||||
Target Markets | ||||||||||||||||||||||||||||||||
Los Angeles | 14 | 4,645 | 3,993 | 10.6 | % | $ | 2,119 | 14 | 4,645 | 3,993 | 10.9 | % | $ | 2,027 | ||||||||||||||||||
Orange County | 4 | 1,213 | 1,213 | 3.2 | % | 1,739 | 4 | 1,213 | 1,143 | 3.0 | % | 1,695 | ||||||||||||||||||||
San Diego | 11 | 2,370 | 2,300 | 5.0 | % | 1,436 | 10 | 2,286 | 2,145 | 4.8 | % | 1,404 | ||||||||||||||||||||
Southern CA Total | 29 | 8,228 | 7,506 | 18.8 | % | 1,825 | 28 | 8,144 | 7,281 | 18.7 | % | 1,771 | ||||||||||||||||||||
East Bay | 2 | 413 | 413 | 0.8 | % | 1,512 | 2 | 413 | 353 | 0.8 | % | 1,426 | ||||||||||||||||||||
San Jose | 1 | 224 | 224 | 0.6 | % | 1,799 | 1 | 224 | 224 | 0.7 | % | 1,679 | ||||||||||||||||||||
San Francisco | 7 | 1,208 | 1,208 | 2.1 | % | 1,939 | 7 | 1,208 | 1,208 | 2.1 | % | 1,769 | ||||||||||||||||||||
Northern CA Total | 10 | 1,845 | 1,845 | 3.5 | % | 1,792 | 10 | 1,845 | 1,785 | 3.6 | % | 1,663 | ||||||||||||||||||||
Seattle | 2 | 239 | 239 | 0.2 | % | 1,378 | 2 | 239 | 200 | 0.5 | % | 1,683 | ||||||||||||||||||||
Pacific Total | 41 | 10,312 | 9,590 | 22.5 | % | 1,807 | 40 | 10,228 | 9,266 | 22.8 | % | 1,751 | ||||||||||||||||||||
Manhattan | 23 | 999 | 999 | 3.2 | % | 2,664 | 22 | 957 | 957 | 2.6 | % | 2,285 | ||||||||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 2.0 | % | 1,427 | 2 | 1,162 | 944 | 1.8 | % | 1,360 | ||||||||||||||||||||
New York Total | 25 | 2,161 | 2,161 | 5.2 | % | 1,984 | 24 | 2,119 | 1,901 | 4.4 | % | 1,830 | ||||||||||||||||||||
Washington - NoVA - MD | 14 | 6,547 | 6,462 | 14.1 | % | 1,472 | 17 | 8,015 | 7,048 | 13.9 | % | 1,390 | ||||||||||||||||||||
Boston | 11 | 4,129 | 4,129 | 7.5 | % | 1,335 | 11 | 4,129 | 4,129 | 7.3 | % | 1,258 | ||||||||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 7.2 | % | 1,509 | 7 | 3,888 | 3,664 | 6.9 | % | 1,469 | ||||||||||||||||||||
Northeast Total | 57 | 16,725 | 16,561 | 34.0 | % | 1,512 | 59 | 18,151 | 16,742 | 32.5 | % | 1,426 | ||||||||||||||||||||
Miami | 5 | 2,482 | 2,471 | 6.7 | % | 1,895 | 5 | 2,474 | 2,362 | 5.8 | % | 1,792 | ||||||||||||||||||||
Palm Beach - Fort Lauderdale | 3 | 1,076 | 1,076 | 1.1 | % | 993 | 4 | 1,265 | 1,265 | 1.3 | % | 942 | ||||||||||||||||||||
Orlando | 6 | 1,715 | 1,715 | 1.8 | % | 873 | 8 | 2,651 | 2,651 | 2.4 | % | 840 | ||||||||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 1.9 | % | 933 | 4 | 1,643 | 1,643 | 1.7 | % | 898 | ||||||||||||||||||||
Florida Total | 18 | 6,916 | 6,905 | 11.5 | % | 1,280 | 21 | 8,033 | 7,921 | 11.2 | % | 1,167 | ||||||||||||||||||||
Houston | 5 | 2,237 | 2,168 | 2.0 | % | 824 | 6 | 2,509 | 2,050 | 2.0 | % | 802 | ||||||||||||||||||||
Denver | 8 | 2,177 | 2,104 | 3.5 | % | 1,123 | 8 | 2,177 | 1,731 | 3.0 | % | 1,070 | ||||||||||||||||||||
Phoenix | 7 | 1,934 | 1,634 | 1.9 | % | 910 | 12 | 3,017 | 2,605 | 2.7 | % | 788 | ||||||||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 1.7 | % | 1,081 | 5 | 1,295 | 1,125 | 1.8 | % | 996 | ||||||||||||||||||||
Sunbelt Total | 43 | 14,559 | 13,936 | 20.6 | % | 1,126 | 52 | 17,031 | 15,432 | 20.7 | % | 1,028 | ||||||||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 7.2 | % | 1,355 | 13 | 3,993 | 3,832 | 6.9 | % | 1,318 | ||||||||||||||||||||
Total Target Markets | 154 | 45,589 | 44,016 | 84.3 | % | 1,430 | 164 | 49,403 | 45,272 | 82.9 | % | 1,340 | ||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 1.7 | % | 1,281 | 5 | 1,180 | 993 | 1.5 | % | 1,202 | ||||||||||||||||||||
Inland Empire | — | — | — | — | — | 2 | 376 | 376 | 0.4 | % | 790 | |||||||||||||||||||||
Michigan | 3 | 3,306 | 3,306 | 3.8 | % | 754 | 3 | 3,306 | 3,306 | 3.0 | % | 732 | ||||||||||||||||||||
Minneapolis | 2 | 732 | 651 | 1.6 | % | 1,859 | 2 | 732 | 651 | 1.7 | % | 1,779 | ||||||||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 1.6 | % | 1,044 | 4 | 1,114 | 865 | 1.2 | % | 999 | ||||||||||||||||||||
Non-Target Florida | 3 | 702 | 702 | 0.8 | % | 864 | 5 | 1,202 | 1,202 | 1.2 | % | 799 | ||||||||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 2.5 | % | 1,108 | 6 | 1,643 | 1,554 | 2.5 | % | 1,066 | ||||||||||||||||||||
Providence RI | 2 | 708 | 708 | 1.2 | % | 1,237 | 2 | 708 | 708 | 1.2 | % | 1,180 | ||||||||||||||||||||
Other Markets | 4 | 2,770 | 2,770 | 2.5 | % | 780 | 12 | 5,117 | 4,891 | 4.4 | % | 787 | ||||||||||||||||||||
Total Other | 29 | 12,155 | 11,881 | 15.7 | % | 978 | 41 | 15,378 | 14,546 | 17.1 | % | 912 | ||||||||||||||||||||
Grand Total | 183 | 57,744 | 55,897 | 100.0 | % | $ | 1,332 | 205 | 64,781 | 59,818 | 100.0 | % | $ | 1,233 |
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Supplemental Schedule 7(b) | ||||||||||||||||||||||||||
Total Conventional Portfolio Data by Market | ||||||||||||||||||||||||||
Second Quarter 2012 Market Information | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Aimco's portfolio strategy seeks predictable rent growth from a portfolio of A, B and C-quality conventional properties, averaging B/B+ in quality, and diversified among the largest coastal and job growth markets in the U.S. as measured by total apartment value. Aimco measures Conventional Property asset quality based on rents compared to local market average rents as reported by REIS, a third-party provider of commercial real estate performance information and analysis. Aimco defines asset quality as follows: A-quality assets are those with rents greater than 125% of local market average; B-quality assets are those with rents 90% to 125% of local market average; and C-quality assets are those with rents less than 90% of local market average. The following schedule illustrates Aimco’s Conventional Property portfolio quality and market growth projections based on 2Q 2012 data, the most recent period for which third-party data is available. | ||||||||||||||||||||||||||
Quarter Ended June 30, 2012 | ||||||||||||||||||||||||||
Properties | Units | Effective Units | % Aimco NOI | Average Rent per Unit [1] | Market Rent [2] | Percentage of Market Rent Average | 2012 - 2014 Projected Revenue Growth [3] | |||||||||||||||||||
Target Markets | ||||||||||||||||||||||||||
Los Angeles | 14 | 4,645 | 3,993 | 10.4 | % | $ | 1,947 | $ | 1,396 | 139.5 | % | 5.2 | % | |||||||||||||
Orange County | 4 | 1,213 | 1,143 | 3.0 | % | 1,634 | 1,531 | 106.7 | % | 5.9 | % | |||||||||||||||
San Diego | 10 | 2,286 | 2,146 | 4.7 | % | 1,271 | 1,352 | 94.0 | % | 4.5 | % | |||||||||||||||
Southern CA Total | 28 | 8,144 | 7,282 | 18.1 | % | 1,677 | 1,406 | 119.3 | % | 5.2 | % | |||||||||||||||
East Bay | 2 | 413 | 353 | 0.8 | % | 1,393 | 1,343 | 103.7 | % | 5.4 | % | |||||||||||||||
San Jose | 1 | 224 | 224 | 0.6 | % | 1,631 | 1,920 | 84.9 | % | 6.9 | % | |||||||||||||||
San Francisco | 7 | 1,208 | 1,208 | 2.1 | % | 1,690 | 1,570 | 107.6 | % | 6.9 | % | |||||||||||||||
Northern CA Total | 10 | 1,845 | 1,785 | 3.5 | % | 1,603 | 1,711 | 93.7 | % | 6.5 | % | |||||||||||||||
Seattle | 2 | 239 | 239 | 0.6 | % | 1,422 | 1,032 | 137.8 | % | 5.0 | % | |||||||||||||||
Pacific Total | 40 | 10,228 | 9,306 | 22.2 | % | 1,657 | 1,446 | 114.6 | % | 5.4 | % | |||||||||||||||
Manhattan | 23 | 999 | 999 | 2.9 | % | 2,471 | 2,940 | 84.0 | % | 4.9 | % | |||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 2.3 | % | 1,258 | 1,511 | 83.3 | % | 4.8 | % | |||||||||||||||
New York Total | 25 | 2,161 | 2,161 | 5.2 | % | 1,772 | 2,156 | 82.2 | % | 4.9 | % | |||||||||||||||
Washington - NoVA - MD | 16 | 7,851 | 6,917 | 14.4 | % | 1,321 | 1,471 | 89.8 | % | 4.6 | % | |||||||||||||||
Boston | 11 | 4,129 | 4,129 | 7.3 | % | 1,224 | 1,717 | 71.3 | % | 5.5 | % | |||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 7.2 | % | 1,301 | 1,046 | 124.4 | % | 3.4 | % | |||||||||||||||
Northeast Total | 59 | 18,029 | 17,016 | 34.1 | % | 1,348 | 1,522 | 88.6 | % | 4.6 | % | |||||||||||||||
Miami | 5 | 2,482 | 2,471 | 6.6 | % | 1,636 | 1,063 | 153.9 | % | 3.9 | % | |||||||||||||||
Palm Beach - Fort Lauderdale | 3 | 1,076 | 1,076 | 1.1 | % | 854 | 1,084 | 78.8 | % | 5.2 | % | |||||||||||||||
Orlando | 7 | 2,315 | 2,315 | 2.3 | % | 759 | 834 | 91.0 | % | 5.2 | % | |||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 1.8 | % | 792 | 776 | 102.1 | % | 3.1 | % | |||||||||||||||
Florida Total | 19 | 7,516 | 7,505 | 11.8 | % | 1,080 | 932 | 115.9 | % | 4.3 | % | |||||||||||||||
Houston | 5 | 2,237 | 2,168 | 2.0 | % | 712 | 766 | 93.0 | % | 4.7 | % | |||||||||||||||
Denver | 8 | 2,177 | 2,104 | 3.3 | % | 933 | 856 | 109.0 | % | 5.5 | % | |||||||||||||||
Phoenix | 9 | 2,286 | 1,986 | 2.1 | % | 740 | 708 | 104.5 | % | 4.3 | % | |||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 1.6 | % | 934 | 782 | 119.4 | % | 4.6 | % | |||||||||||||||
Sunbelt Total | 46 | 15,511 | 14,888 | 20.8 | % | 948 | 856 | 110.7 | % | 4.5 | % | |||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 7.2 | % | 1,193 | 1,032 | 115.6 | % | 5.0 | % | |||||||||||||||
Total Target Markets | 158 | 47,761 | 45,139 | 84.3 | % | 1,257 | 1,235 | 101.8 | % | 4.8 | % | |||||||||||||||
Other | ||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 1.7 | % | 1,145 | 1,019 | 112.4 | % | 4.6 | % | |||||||||||||||
Michigan | 3 | 3,306 | 3,306 | 2.9 | % | 616 | 796 | 77.4 | % | 4.2 | % | |||||||||||||||
Minneapolis | 2 | 732 | 651 | 1.6 | % | 1,587 | 965 | 164.5 | % | 5.1 | % | |||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 1.6 | % | 887 | 740 | 119.9 | % | 4.8 | % | |||||||||||||||
Non-Target Florida | 4 | 906 | 906 | 1.0 | % | 711 | 975 | 72.9 | % | 3.7 | % | |||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 2.4 | % | 967 | 864 | 111.9 | % | 3.3 | % | |||||||||||||||
Providence RI | 2 | 708 | 708 | 1.1 | % | 1,102 | 1,198 | 92.0 | % | 3.7 | % | |||||||||||||||
Other Markets | 8 | 3,963 | 3,897 | 3.4 | % | 676 | 736 | 91.8 | % | 3.7 | % | |||||||||||||||
Total Other | 34 | 13,552 | 13,212 | 15.7 | % | 820 | 842 | 97.4 | % | 4.1 | % | |||||||||||||||
Grand Total | 192 | 61,313 | 58,351 | 100.0 | % | $ | 1,155 | $ | 1,144 | 101.0 | % | 4.7 | % | |||||||||||||
[1] Represents rents after concessions and vacancy loss, divided by Effective Units. Does not include other rental income. | ||||||||||||||||||||||||||
[2] 2Q 2012 effective rents per REIS. | ||||||||||||||||||||||||||
[3] Represents the average of annual revenue growth projections published by REIS and AxioMetrics, third-party providers of commercial real estate information and analyses. |
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Supplemental Schedule 8 | ||||||||||||||||||||||||||||||||||||||
Property Disposition and Acquisition Activity | ||||||||||||||||||||||||||||||||||||||
(dollars in millions, except average revenue) (unaudited) | ||||||||||||||||||||||||||||||||||||||
Third Quarter 2012 Dispositions | ||||||||||||||||||||||||||||||||||||||
Number of Properties | Number of Units | Weighted Average Ownership | Gross Proceeds | NOI Cap Rate [1] | Property Debt | Net Sales Proceeds [2] | Aimco Gross Proceeds | Aimco Net Proceeds | Average Revenue per Unit | |||||||||||||||||||||||||||||
Conventional | 8 | 2,349 | 97% | $ | 161.0 | 5.9 | % | $ | 112.0 | $ | 38.8 | $ | 158.8 | $ | 38.0 | $ | 795 | |||||||||||||||||||||
Affordable | 14 | 1,562 | 60% | 74.4 | 7.0 | % | 39.3 | 29.9 | 40.7 | 24.3 | 730 | |||||||||||||||||||||||||||
Total Dispositions | 22 | 3,911 | 82% | $ | 235.4 | 6.2 | % | $ | 151.3 | $ | 68.7 | $ | 199.5 | $ | 62.3 | $ | 775 | |||||||||||||||||||||
Year-to-Date 2012 Dispositions | ||||||||||||||||||||||||||||||||||||||
Number of Properties | Number of Units | Weighted Average Ownership | Gross Proceeds | NOI Cap Rate [1] | Property Debt | Net Sales Proceeds [2] | Aimco Gross Proceeds | Aimco Net Proceeds | Average Revenue per Unit | |||||||||||||||||||||||||||||
Conventional [4] | 16 | 4,408 | 96% | $ | 315.5 | 6.2 | % | $ | 182.7 | $ | 115.1 | $ | 301.4 | $ | 112.6 | $ | 799 | |||||||||||||||||||||
Affordable | 31 | 3,221 | 55% | 132.0 | 7.8 | % | 78.9 | 46.8 | 64.3 | 33.1 | 679 | |||||||||||||||||||||||||||
Total Dispositions | 47 | 7,629 | 79% | $ | 447.5 | 6.5 | % | $ | 261.6 | $ | 161.9 | $ | 365.7 | $ | 145.7 | $ | 762 | |||||||||||||||||||||
Year-to-Date 2012 Acquisitions | ||||||||||||||||||||||||||||||||||||||
Limited Partner Transactions | ||||||||||||||||||||||||||||||||||||||
Year-to-date, Aimco has acquired the noncontrolling limited partnership interests in eleven consolidated real estate partnerships that own 17 properties with average monthly revenue per effective unit of $1,010 and in which Aimco affiliates serve as general partner for a total cost of $50.6 million. The gross estimated fair value of the real estate corresponding to the interests Aimco acquired totaled $142.7 million. | ||||||||||||||||||||||||||||||||||||||
Property Transactions | ||||||||||||||||||||||||||||||||||||||
Non-recourse Property Debt | ||||||||||||||||||||||||||||||||||||||
Location | Units | Purchase Price | Principal | Interest Rate | Weighted Average Term to Maturity | Average Revenue Per Unit (Stabilized) | Percentage of Average Market Rent | |||||||||||||||||||||||||||||||
Phoenix | 488 | $ | 68.8 | $ | 29.1 | 5.55 | % | 7.2 | [3] | $1,100 | 147% | |||||||||||||||||||||||||||
Manhattan | 42 | 39.3 | 20.0 | 3.95 | % | 9.8 | $4,000 | 138% | ||||||||||||||||||||||||||||||
San Diego | 84 | 19.7 | 9.7 | 5.51 | % | 4.5 | [3] | $1,880 | 115% | |||||||||||||||||||||||||||||
Total Acquisitions | 614 | $ | 127.8 | $ | 58.8 | 5.00 | % | 7.6 | $1,405 | 142% | ||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||
[1] NOI Cap Rate is calculated based on Aimco's share of the trailing twelve month NOI prior to sale, less a 3.0% management fee, divided by the gross proceeds, which excludes prepayment penalties associated with the related property debt. | ||||||||||||||||||||||||||||||||||||||
[2] Net Sales Proceeds are after repayment of existing debt, net working capital settlements, payment of transaction costs and debt prepayment penalties. | ||||||||||||||||||||||||||||||||||||||
[3] Non-recourse property debt assumed in connection with acquisition. | ||||||||||||||||||||||||||||||||||||||
[4] Year-to-date, Aimco has disposed of Conventional Properties in the following markets: | ||||||||||||||||||||||||||||||||||||||
Market | Properties | Units | ||||
Target: | ||||||
Tampa | 5 | 1,493 | ||||
Phoenix | 6 | 1,571 | ||||
Orlando | 1 | 600 | ||||
Washington D.C. | 1 | 164 | ||||
Total Target | 13 | 3,828 | ||||
Other Markets: | ||||||
Daytona Beach | 1 | 204 | ||||
Inland Empire [5] | 2 | 376 | ||||
Total Other | 3 | 580 | ||||
Total Sales | 16 | 4,408 | ||||
[5] Aimco has now exited the Inland Empire. |
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Supplemental Schedule 9 | ||||||||||||||||||||||||
Capital Additions | ||||||||||||||||||||||||
(in thousands, except per unit data) (unaudited) | ||||||||||||||||||||||||
Capital additions are classified as either Capital Replacements (“CR”), Capital Improvements (“CI”), Redevelopment or Casualties. Non-Redevelopment and non-Casualty capital additions are apportioned between CR and CI based on the useful life of the capital item under consideration and the period over which Aimco has owned the property (i.e., the portion that was consumed during Aimco’s ownership of the item represents CR; the portion of the item that was consumed prior to Aimco’s ownership represents CI). See the Glossary for further descriptions. | ||||||||||||||||||||||||
Amounts below represent actual additions related to residential properties that are owned and managed by Aimco at the end of the period. These amounts include consolidated and unconsolidated properties and are not adjusted for Aimco’s ownership interest in such properties. Amounts do not include capital additions related to: - properties sold during the period or properties held for sale at the end of the period; - properties that are not multi-family such as commercial operations or fitness facilities at Aimco's multi-family properties; and - properties that Aimco owns but does not manage. See the Glossary for a reconciliation of these amounts to GAAP capital additions. | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||
Conventional | Affordable | Total | Conventional | Affordable | Total | |||||||||||||||||||
Capital Additions | ||||||||||||||||||||||||
Capital Replacements | ||||||||||||||||||||||||
Buildings and grounds | $ | 10,131 | $ | 1,676 | $ | 11,807 | $ | 22,856 | $ | 4,769 | $ | 27,625 | ||||||||||||
Turnover capital additions | 5,518 | 555 | 6,073 | 13,739 | 1,812 | 15,551 | ||||||||||||||||||
Capitalized site payroll and indirect costs | 1,179 | 93 | 1,272 | 3,810 | 315 | 4,125 | ||||||||||||||||||
Total Capital Replacements | 16,828 | 2,324 | 19,152 | 40,405 | 6,896 | 47,301 | ||||||||||||||||||
Capital Improvements | 22,438 | 351 | 22,789 | 54,485 | 1,492 | 55,977 | ||||||||||||||||||
Redevelopment Additions | 30,369 | — | 30,369 | 70,599 | — | 70,599 | ||||||||||||||||||
Casualty | 1,109 | 532 | 1,641 | 3,618 | 2,043 | 5,661 | ||||||||||||||||||
Total Capital Additions | $ | 70,744 | $ | 3,207 | $ | 73,951 | $ | 169,107 | $ | 10,431 | $ | 179,538 | ||||||||||||
Total units | 57,602 | 12,871 | 70,473 | 57,602 | 12,871 | 70,473 | ||||||||||||||||||
Total Capital Replacements per unit | $ | 292 | $ | 181 | $ | 272 | $ | 701 | $ | 536 | $ | 671 |
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Supplemental Schedule 10 | ||||||||||||||||||||
Summary of Redevelopment Activity | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(dollars in millions) (unaudited) | ||||||||||||||||||||
Schedule | Average Rents | |||||||||||||||||||
Total Number of Units | Total Project Cost | Inception-to-Date Investment [1] | Construction Start | Initial Occupancy | Construction Complete | Stabilized/ Restabilized Operations | Pre- Redevelopment [2] | Stabilized [3] | Change in Market Rents Since Start [4] | Occupancy [5] | ||||||||||
Under Redevelopment | ||||||||||||||||||||
Elm Creek, Elmhurst, IL [6] | 28 | $ | 9.9 | $ | 2.0 | 2Q 2012 | 4Q 2012 | 2Q 2013 | 3Q 2013 | n/a | $2,946 | 1.8 | % | n/a | ||||||
Flamingo South Beach, Miami, FL | 1,127 | 4.1 | 2.9 | 3Q 2011 | n/a - exterior only | 4Q 2012 | 1Q 2013 | $1,770 | $1,800 | 5.2 | % | 95.4% | ||||||||
Lincoln Place, Venice, CA [7] | 795 | 328.0 | 188.0 | Multiple | Multiple | 4Q 2014 | 1Q 2015 | n/a | $2,470 | n/a | 7.9% | |||||||||
Pacific Bay Vistas, San Bruno, CA [8] | 308 | 106.5 | 69.0 | 4Q 2011 | 2Q 2013 | 3Q 2013 | 4Q 2013 | n/a | $2,200 | 7.7 | % | Vacant | ||||||||
The Palazzo at Park La Brea, Los Angeles, CA [9] | 521 | 15.7 | 4.5 | 1Q 2012 | 4Q 2012 | 3Q 2014 | 4Q 2014 | $2,861 | $3,171 | 4.5 | % | 93.1% | ||||||||
Plantation Gardens, Plantation, FL | 372 | 6.4 | 5.5 | 3Q 2011 | 3Q 2012 | 4Q 2012 | 1Q 2013 | $892 | $977 | 3.4 | % | 74.4% | ||||||||
The Preserve at Marin, Corte Madera, CA | 126 | 85.0 | 50.2 | 4Q 2012 | 2Q 2013 | 4Q 2013 | 1Q 2014 | n/a | $3,880 | n/a | Vacant | |||||||||
Grand Total | 3,277 | $ | 555.6 | $ | 322.1 | |||||||||||||||
Actual 2012 Investment | ||||||||||||||||||||
First Quarter 2012 | Second Quarter 2012 | Third Quarter 2012 | Year-to-Date | |||||||||||||||||
Under Redevelopment | 15.4 | 23.0 | 29.1 | 67.5 | ||||||||||||||||
Other Redevelopment [10] | 0.2 | 1.6 | 1.3 | 3.1 | ||||||||||||||||
Total | $ | 15.6 | $ | 24.6 | $ | 30.4 | $ | 70.6 | ||||||||||||
[1] Lincoln Place and Pacific Bay Vistas amounts are net of 4Q 2008 impairment losses of $85.4 million and $5.7 million, respectively. | ||||||||||||||||||||
[2] Average rents for the quarter preceding construction start. | ||||||||||||||||||||
[3] Rents based on market rents for comparable product for the quarter preceding redevelopment start. Does not include future market rent growth. | ||||||||||||||||||||
[4] Represents change in submarket rents from the quarter in which construction started to second quarter 2012, based on the average of REIS and AxioMetrics. | ||||||||||||||||||||
[5] Represents average daily occupancy during the quarter except as it relates to vacant or previously vacant properties, in which case quarter-end physical occupancy is reported. | ||||||||||||||||||||
As of September 30, 2012, such vacant or previously vacant properties are: Lincoln Place; Pacific Bay Vistas; and The Preserve at Marin. | ||||||||||||||||||||
[6] Aimco's Elm Creek project involves the construction of 28 townhomes to be built on a now-vacant land parcel contiguous to the Elm Creek community. | ||||||||||||||||||||
[7] An earlier phase of the Lincoln Place redevelopment began in 4Q 2011, and 50 units were re-leased to returning residents in 2Q 2012. Beginning in October 2012 and over the next two years, Aimco will | ||||||||||||||||||||
redevelop the remaining buildings, construct 13 new buildings with 99 units, a 5,000 square foot leasing center and a 6,100 square foot fitness center and pool area. Aimco | ||||||||||||||||||||
expects initial occupancy of remaining existing units to occur in 2Q 2013, and that the first newly constructed units will begin to be occupied in 1Q 2014. | ||||||||||||||||||||
[8] Since the inception of the Pacific Bay Vistas redevelopment, estimated total project costs have increased approximately $12.4 million. The increase in anticipated costs is due to changes in scope to prevent moisture | ||||||||||||||||||||
intrusion. The changes have delayed delivery of the property's residential buildings. The property's leasing center and community center have been completed. | ||||||||||||||||||||
[9] The Palazzo is owned in a joint venture in which Aimco has an approximate 53% interest. Aimco’s share of this $15.7 million investment is $8.3 million. | ||||||||||||||||||||
[10] Amount represents capitalizable costs associated with projects in our redevelopment pipeline that are not listed above. |
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GLOSSARY AND RECONCILIATIONS OF NON-GAAP FINANCIAL AND OPERATING MEASURES
This Earnings Release and Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. 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.
ACQUISITION PROPERTIES: Properties acquired since January 1, 2011.
ADJUSTED INTEREST EXPENSE: Adjusted Interest Expense represents Aimco's proportionate share of interest expense less (i) prepayment penalties and amortization of deferred financing costs and (ii) the amount of interest income recognized by Aimco related to its investment in the subordinated tranches in a securitization trust holding only Aimco property debt.
AFFORDABLE PROPERTIES: Affordable Properties benefit from governmental programs intended to provide housing to people with low or moderate incomes. These programs, which are usually administered by the U.S. Department of Housing and Urban Development (HUD) or state housing finance agencies, typically provide mortgage insurance, favorable financing terms, tax credit equity, or rental assistance payments to the property owners. Under these programs, rent adjustments are made in accordance with property-specific contracts between Aimco and HUD, with rent increases generally based on an adjustment factor set by HUD annually.
AIMCO OPERATING PARTNERSHIP: AIMCO Properties, L.P., a Delaware limited partnership, is the operating partnership in Aimco's UPREIT structure. Aimco owns approximately 95% of the common partnership units of the Aimco Operating Partnership.
AIMCO PROPORTIONATE FINANCIAL INFORMATION: Non-GAAP measures representing Aimco's share of financial information discussed in this Earnings Release and Supplemental Information. Aimco's proportionate share of financial information includes Aimco's share of unconsolidated real estate partnerships and excludes noncontrolling interests in consolidated real estate partnerships. Proportionate reporting benefits the users of Aimco's financial information by providing the amount of revenues, expenses, assets and liabilities attributable only to Aimco stockholders. Aimco also refers to this measure as “Aimco's Share” of financial information. See Supplemental Schedules 1, 3 and 4 for reconciliation of Aimco's proportionate share of financial results to Aimco's consolidated financial statements.
CAPITAL ADDITIONS DEFINITIONS AND RECONCILIATION
CAPITAL IMPROVEMENTS (CI): CI includes all non-Redevelopment capital additions that are made to enhance the value, profitability or useful life of an asset from its original purchase condition.
CAPITAL REPLACEMENTS (CR): Unlike CI, CR does not increase the useful life of an asset from its original purchase condition. CR represents the portion of capital additions that are deemed to replace the consumed portion of acquired capital assets. CR is deducted in the calculation of AFFO.
CASUALTY CAPITAL ADDITIONS: Casualty capital additions represent capitalized costs incurred in connection with the restoration of an asset after a casualty event such as a hurricane, tornado or flood.
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Supplemental Schedule 9 contains capital additions information related to (1) residential properties that Aimco owns and manages at the end of the period, (2) properties that are consolidated in Aimco's GAAP financial statements, and (3) properties that are accounted for under the equity method of accounting in Aimco's GAAP financial statements. Amounts do not include capital additions related to:
- consolidated properties sold during the period or classified as held for sale at the end of the period;
- consolidated properties that are not multi-family such as commercial properties or fitness facilities; or
- consolidated properties that Aimco owns but does not manage.
Aimco believes the capital addition detail provided in Supplemental Schedule 9 provides an enhanced understanding of capital additions related to our primary business of owning and operating apartment communities. A reconciliation of capital additions presented on Supplemental Schedule 9 to Aimco's consolidated GAAP information is presented below.
(in thousands) (unaudited) | Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||
Capital Additions per Schedule 9 | $ | 73,951 | $ | 179,538 | |||
Capital additions related to: | |||||||
Unconsolidated real estate partnerships | (181 | ) | (1,525 | ) | |||
Consolidated sold and held for sale properties | 408 | 7,588 | |||||
Consolidated properties Aimco owns but does not manage | 130 | 176 | |||||
Consolidated capital additions | $ | 74,308 | $ | 185,777 | |||
CONVENTIONAL PROPERTIES: Conventional Properties represent Aimco's portfolio of market-rate apartment communities. Aimco's portfolio strategy seeks predictable rent growth from a portfolio of A, B and C-quality conventional properties, averaging B/B+ in quality, and diversified among the largest coastal and job growth markets in the United States, as measured by apartment value.
DEBT TO EBITDA RATIO: The ratio of (a) Aimco's proportionate share of debt net of Aimco's proportionate share of cash and restricted cash, and Aimco's investment in the subordinated tranches in a securitization trust holding only Aimco property debt to (b) EBITDA.
DEBT AND PREFERRED EQUITY TO EBITDA RATIO: The ratio of (a) Aimco's proportionate share of debt net of Aimco's proportionate share of cash and restricted cash, and Aimco's investment in the subordinated tranches in a securitization trust holding only Aimco property debt, plus Aimco's preferred stock and the preferred units of the Aimco Operating Partnership to (b) EBITDA.
DEBT SERVICE COVERAGE RATIO: As defined in Aimco's credit agreement, the ratio of (a) Earnings Before Interest, Taxes, Depreciation and Amortization (Compliance EBITDA), reduced by certain capital expenditure reserves, to (b) debt service, which represents the sum of (i) Aimco's proportionate share of interest expense (excluding prepayment penalties and amortization of deferred financing costs) and (ii) debt amortization, for the four fiscal quarters preceding the date of calculation.
EFFECTIVE UNITS: The number of actual property units multiplied by Aimco's ownership interest in the property as of the end of the current period. Effective Units may be used to analyze Aimco's proportionate financial measures on a per-unit basis.
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EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA): EBITDA is the numerator used in Aimco's calculation of EBITDA Coverage of Interest Ratio and EBITDA Coverage of Preferred Dividends and Interest Ratio. EBITDA is computed by adding to Aimco's Pro forma FFO (a) Aimco's proportionate share of interest expense, taxes, depreciation and amortization related to non-real estate assets, non-cash stock compensation expense and (b) Preferred Dividends.
EBITDA COVERAGE OF INTEREST RATIO: The ratio of (a) EBITDA to (b) Adjusted Interest Expense. Aimco's management uses this ratio as one measure of leverage.
EBITDA COVERAGE OF INTEREST AND PREFERRED DIVIDENDS RATIO: The ratio of (a) EBITDA to (b) the sum of Adjusted Interest Expense and Preferred Dividends. Aimco's management uses this ratio as one measure of leverage.
FIXED CHARGE COVERAGE RATIO: As defined by Aimco's credit agreement, the ratio of (a) EBITDA computed in accordance with the terms of Aimco's credit agreement, which differs from EBITDA defined above, to (b) fixed charges, which represent the sum of (i) Aimco's proportionate share of interest expense (excluding prepayment penalties and amortization of deferred financing costs), (ii) debt amortization and (iii) Preferred Dividends, for the four fiscal quarters preceding the date of calculation.
FREE CASH FLOW INTERNAL RATE OF RETURN: Free Cash Flow represents a property's net operating income less capital spending required to maintain the condition of the property, and a Free Cash Flow Internal Rate of Return represents the rate of return generated by discounting the expected Free Cash Flow from the property and the proceeds from its eventual sale.
FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance, which the National Association of Real Estate Investment Trusts (NAREIT) defines as net income, computed in accordance with GAAP, excluding gains from sales of, and impairment losses recognized with respect to, depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Aimco computes FFO for all periods presented in accordance with the guidance set forth by NAREIT. In October 2011, NAREIT revised its definition of FFO to exclude operating real estate impairments effective for the fourth quarter 2011. All prior period FFO results included in this Earnings Release have been restated accordingly.
In addition to FFO, Aimco uses PRO FORMA FUNDS FROM OPERATIONS (Pro forma FFO) and ADJUSTED FUNDS FROM OPERATIONS (AFFO) to measure performance. Pro forma FFO represents FFO as defined above, excluding preferred equity redemption related amounts (adjusted for noncontrolling interests). Preferred equity redemption related amounts (gains or losses) are items that periodically affect Aimco's operating results. Aimco excludes preferred equity redemption related amounts (gains or losses) from Pro forma FFO because such amounts are not representative of operating performance. AFFO represents Pro forma FFO reduced by Capital Replacements (also adjusted for noncontrolling interests).
FFO, Pro forma FFO and AFFO are helpful to investors in understanding Aimco's performance because they capture features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. There can be no assurance that Aimco's method for computing FFO, Pro forma FFO or AFFO is comparable with that of other real estate investment trusts. Net income (loss) attributable to Aimco common stockholders as determined in accordance with GAAP is reconciled to FFO and Pro forma FFO as presented on Supplemental Schedule 1 and reconciled to AFFO on the following page.
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in thousands, except per share data) (unaudited) | ||||||||||||||||
Net income (loss) attributable to Aimco common stockholders | $ | 24,163 | $ | (14,801 | ) | $ | 14,077 | $ | (79,751 | ) | ||||||
Adjustments: | ||||||||||||||||
Depreciation and amortization | 87,444 | 87,687 | 264,978 | 259,069 | ||||||||||||
Depreciation and amortization related to non-real estate assets | (3,259 | ) | (3,306 | ) | (9,845 | ) | (9,645 | ) | ||||||||
Depreciation of rental property related to noncontrolling partners and unconsolidated entities | (4,798 | ) | (5,647 | ) | (15,322 | ) | (19,271 | ) | ||||||||
Gain on dispositions of unconsolidated real estate and other, net of noncontrolling partners' interest | (14,924 | ) | (245 | ) | (15,243 | ) | (1,037 | ) | ||||||||
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest | 2,392 | 98 | 10,471 | 77 | ||||||||||||
Discontinued operations: | ||||||||||||||||
Gain on dispositions of real estate, net of income taxes and noncontrolling partners' interest | (40,924 | ) | (24,237 | ) | (109,625 | ) | (42,914 | ) | ||||||||
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest | 2,453 | 5,671 | 7,136 | 9,410 | ||||||||||||
Depreciation of rental property, net of noncontrolling partners' interest | 3,866 | 8,510 | 14,194 | 29,449 | ||||||||||||
Common noncontrolling interests in Aimco Operating Partnership's share of above adjustments | (1,563 | ) | (4,592 | ) | (8,949 | ) | (15,424 | ) | ||||||||
Amounts allocable to participating securities | (93 | ) | (138 | ) | (328 | ) | (400 | ) | ||||||||
FFO Attributable to Aimco Common Stockholders - Diluted | $ | 54,757 | $ | 49,000 | $ | 151,544 | $ | 129,563 | ||||||||
Preferred equity redemption related amounts | 12,053 | 788 | 22,583 | (1,961 | ) | |||||||||||
Common noncontrolling interests in Aimco Operating Partnership's share of above adjustments | (698 | ) | (54 | ) | (1,377 | ) | 134 | |||||||||
Amounts allocable to participating securities | (41 | ) | (3 | ) | (90 | ) | 8 | |||||||||
Pro forma Funds From Operations Attributable to Aimco Common Stockholders - Diluted | $ | 66,071 | $ | 49,731 | $ | 172,660 | $ | 127,744 | ||||||||
Capital Replacements, net of common noncontrolling interests in Aimco Operating Partnership | (18,317 | ) | (20,416 | ) | (46,697 | ) | (48,111 | ) | ||||||||
Amounts allocable to participating securities | 52 | 142 | 186 | 392 | ||||||||||||
AFFO Attributable to Aimco Common Stockholders - Diluted | $ | 47,806 | $ | 29,457 | $ | 126,149 | $ | 80,025 | ||||||||
Weighted average shares - diluted FFO | 145,119 | 120,670 | 131,265 | 119,269 | ||||||||||||
FFO per share (diluted) | $ | 0.38 | $ | 0.41 | $ | 1.15 | $ | 1.09 | ||||||||
Pro forma FFO per share (diluted) | $ | 0.46 | $ | 0.41 | $ | 1.32 | $ | 1.07 | ||||||||
AFFO per share (diluted) | $ | 0.33 | $ | 0.24 | $ | 0.96 | $ | 0.67 | ||||||||
NEW LEASE AND RENEWAL 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 a renewal of an existing lease.
OTHER AFFORDABLE PROPERTIES: Affordable Properties that do not meet the Same Store Property definition because they are not managed by Aimco and/or Aimco's ownership interest is less than 10%.
OTHER CONVENTIONAL PROPERTIES: Conventional Properties that have significant rent control restrictions, non-multi-family such as commercial operations or fitness facilities at Aimco's multi-family properties, and properties that had not reached and maintained a stabilized level of occupancy as of January 1, 2011, often due to a casualty event.
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OTHER EXPENSES, NET: Other expenses, net includes franchise taxes, risk management activities related to our unconsolidated partnerships, certain other corporate expenses and partnership expenses (partnership level expenses incurred directly or indirectly for services such as audit, tax and legal).
PREFERRED DIVIDENDS: Preferred dividends include dividends paid with respect to Aimco's Preferred Stock and the Aimco Operating Partnership Preferred Partnership Units.
PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property management revenues, primarily from affiliates; casualties; property management expenses; depreciation; or interest expense. NOI is helpful because it helps both investors and management to understand the operating performance of real estate excluding costs associated with decisions about acquisition pricing, overhead allocations and financing arrangements. NOI is considered by many in the real estate industry to be a useful measure for determining the value of real estate. A reconciliation of NOI as presented in this Earnings Release and Supplemental Information to Aimco's consolidated GAAP amounts is provided below and on the following page.
Reconciliation of Proportionate Property NOI Amounts in Supplemental Schedule 1(a) to Proportionate Property NOI Amounts Included in Aimco's Earnings Release and Supplemental Schedule 6(a) | ||||||||||||||||||||||||||||||||
Third Quarter 2012 Compared to Third Quarter 2011 | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||
Proportionate Amount | Properties Owned but Not Managed | Ownership Adjustments | Proportionate Property Amount | Proportionate Amount | Properties Owned but Not Managed | Ownership Adjustments | Proportionate Property Amount | |||||||||||||||||||||||||
Real estate operations: | ||||||||||||||||||||||||||||||||
Rental and other property revenues | ||||||||||||||||||||||||||||||||
Conventional Same Store | $ | 191,007 | $ | — | $ | (66 | ) | $ | 190,941 | $ | 177,419 | $ | — | $ | 4,660 | $ | 182,079 | |||||||||||||||
Affordable Same Store | 28,271 | — | 6 | 28,277 | 27,063 | — | 10 | 27,073 | ||||||||||||||||||||||||
Total Same Store | 219,278 | — | (60 | ) | 219,218 | 204,482 | — | 4,670 | 209,152 | |||||||||||||||||||||||
Other Conventional | 18,858 | (786 | ) | — | 18,072 | 15,791 | (1,309 | ) | (150 | ) | 14,332 | |||||||||||||||||||||
Other Affordable | 1,894 | (1,894 | ) | — | — | 2,941 | (2,941 | ) | — | — | ||||||||||||||||||||||
Total rental and other property revenues | 240,030 | (2,680 | ) | (60 | ) | 237,290 | 223,214 | (4,250 | ) | 4,520 | 223,484 | |||||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||||||||||
Conventional Same Store | 67,999 | — | 148 | 68,147 | 65,621 | — | 2,156 | 67,777 | ||||||||||||||||||||||||
Affordable Same Store | 11,107 | — | 54 | 11,161 | 10,417 | — | 97 | 10,514 | ||||||||||||||||||||||||
Total Same Store | 79,106 | — | 202 | 79,308 | 76,038 | — | 2,253 | 78,291 | ||||||||||||||||||||||||
Other Conventional | 9,407 | (476 | ) | — | 8,931 | 7,695 | (747 | ) | (278 | ) | 6,670 | |||||||||||||||||||||
Other Affordable | 931 | (931 | ) | — | — | 1,555 | (1,555 | ) | — | — | ||||||||||||||||||||||
Total property operating expenses | 89,444 | (1,407 | ) | 202 | 88,239 | 85,288 | (2,302 | ) | 1,975 | 84,961 | ||||||||||||||||||||||
Property NOI: | ||||||||||||||||||||||||||||||||
Conventional Same Store | 123,008 | — | (214 | ) | 122,794 | 111,798 | — | 2,504 | 114,302 | |||||||||||||||||||||||
Affordable Same Store | 17,164 | — | (48 | ) | 17,116 | 16,646 | — | (87 | ) | 16,559 | ||||||||||||||||||||||
Total Same Store | 140,172 | — | (262 | ) | 139,910 | 128,444 | — | 2,417 | 130,861 | |||||||||||||||||||||||
Other Conventional | 9,451 | (310 | ) | — | 9,141 | 8,096 | (562 | ) | 128 | 7,662 | ||||||||||||||||||||||
Other Affordable | 963 | (963 | ) | — | — | 1,386 | (1,386 | ) | — | — | ||||||||||||||||||||||
Net real estate operations | $ | 150,586 | $ | (1,273 | ) | $ | (262 | ) | $ | 149,051 | $ | 137,926 | $ | (1,948 | ) | $ | 2,545 | $ | 138,523 | |||||||||||||
% Aimco | ||||||||||||||||||||||||||||||||
3Q 2012 NOI | Revenue | Expenses | NOI | |||||||||||||||||||||||||||||
Year-over-Year Change: | ||||||||||||||||||||||||||||||||
Conventional Same Store | 82 | % | 4.9 | % | 0.5 | % | 7.4 | % | ||||||||||||||||||||||||
Affordable Same Store | 12 | % | 4.4 | % | 6.2 | % | 3.4 | % | ||||||||||||||||||||||||
Total Same Store | 94 | % | 4.8 | % | 1.3 | % | 6.9 | % | ||||||||||||||||||||||||
Other Conventional | 6 | % | 26.1 | % | 33.9 | % | 19.3 | % | ||||||||||||||||||||||||
Net real estate operations | 100 | % | 6.2 | % | 3.9 | % | 7.6 | % |
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![](https://capedge.com/proxy/8-K/0000922864-12-000016/portraita-2012q3.jpg)
Reconciliation of GAAP to Supplemental Schedule 6(b) Proportionate Conventional Same Store NOI Amounts | ||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2012 | ||||||||||||||||||||||||
Consolidated Amounts | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Ownership Adjustments | Proportionate Property Amount | |||||||||||||||||||
Conventional Same Store: | ||||||||||||||||||||||||
Rental and other property revenues | $ | 196,641 | $ | — | $ | (9,132 | ) | $ | 187,509 | $ | 332 | $ | 187,841 | |||||||||||
Property operating expenses | 69,147 | — | (3,182 | ) | 65,965 | 300 | 66,265 | |||||||||||||||||
Property NOI | $ | 127,494 | $ | — | $ | (5,950 | ) | $ | 121,544 | $ | 32 | $ | 121,576 |
Reconciliation of Proportionate Property NOI Amounts in Supplemental Schedule 1(b) to Proportionate Property NOI Amounts Included in Aimco's Earnings Release and Supplemental Schedule 6(c) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||
Proportionate Amount | Properties Owned but Not Managed | Ownership Adjustments | Proportionate Property Amount | Proportionate Amount | Properties Owned but Not Managed | Ownership Adjustments | Proportionate Property Amount | |||||||||||||||||||||||||
Real estate operations: | ||||||||||||||||||||||||||||||||
Rental and other property revenues | ||||||||||||||||||||||||||||||||
Conventional Same Store | $ | 562,259 | $ | — | $ | 2,470 | $ | 564,729 | $ | 525,309 | $ | — | $ | 14,886 | $ | 540,195 | ||||||||||||||||
Affordable Same Store | 84,342 | — | 25 | 84,367 | 81,064 | — | 29 | 81,093 | ||||||||||||||||||||||||
Total Same Store | 646,601 | — | 2,495 | 649,096 | 606,373 | — | 14,915 | 621,288 | ||||||||||||||||||||||||
Other Conventional | 52,821 | (3,606 | ) | — | 49,215 | 47,943 | (3,696 | ) | (14 | ) | 44,233 | |||||||||||||||||||||
Other Affordable | 5,948 | (5,948 | ) | — | — | 8,413 | (8,413 | ) | — | — | ||||||||||||||||||||||
Total rental and other property revenues | 705,370 | (9,554 | ) | 2,495 | 698,311 | 662,729 | (12,109 | ) | 14,901 | 665,521 | ||||||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||||||||||
Conventional Same Store | 198,736 | — | 1,565 | 200,301 | 191,912 | — | 6,769 | 198,681 | ||||||||||||||||||||||||
Affordable Same Store | 32,874 | — | 201 | 33,075 | 31,689 | — | 258 | 31,947 | ||||||||||||||||||||||||
Total Same Store | 231,610 | — | 1,766 | 233,376 | 223,601 | — | 7,027 | 230,628 | ||||||||||||||||||||||||
Other Conventional | 26,119 | (2,264 | ) | — | 23,855 | 23,260 | (2,294 | ) | (729 | ) | 20,237 | |||||||||||||||||||||
Other Affordable | 3,118 | (3,118 | ) | — | — | 4,846 | (4,846 | ) | — | — | ||||||||||||||||||||||
Total property operating expenses | 260,847 | (5,382 | ) | 1,766 | 257,231 | 251,707 | (7,140 | ) | 6,298 | 250,865 | ||||||||||||||||||||||
Property NOI: | ||||||||||||||||||||||||||||||||
Conventional Same Store | 363,523 | — | 905 | 364,428 | 333,397 | — | 8,117 | 341,514 | ||||||||||||||||||||||||
Affordable Same Store | 51,468 | — | (176 | ) | 51,292 | 49,375 | — | (229 | ) | 49,146 | ||||||||||||||||||||||
Total Same Store | 414,991 | — | 729 | 415,720 | 382,772 | — | 7,888 | 390,660 | ||||||||||||||||||||||||
Other Conventional | 26,702 | (1,342 | ) | — | 25,360 | 24,683 | (1,402 | ) | 715 | 23,996 | ||||||||||||||||||||||
Other Affordable | 2,830 | (2,830 | ) | — | — | 3,567 | (3,567 | ) | — | — | ||||||||||||||||||||||
Net real estate operations | $ | 444,523 | $ | (4,172 | ) | $ | 729 | $ | 441,080 | $ | 411,022 | $ | (4,969 | ) | $ | 8,603 | $ | 414,656 | ||||||||||||||
% Aimco | ||||||||||||||||||||||||||||||||
YTD 2012 NOI | Revenue | Expenses | NOI | |||||||||||||||||||||||||||||
Year-over-Year Change: | ||||||||||||||||||||||||||||||||
Conventional Same Store | 82 | % | 4.5 | % | 0.8 | % | 6.7 | % | ||||||||||||||||||||||||
Affordable Same Store | 12 | % | 4.0 | % | 3.5 | % | 4.4 | % | ||||||||||||||||||||||||
Total Same Store | 94 | % | 4.5 | % | 1.2 | % | 6.4 | % | ||||||||||||||||||||||||
Other Conventional | 6 | % | 11.3 | % | 17.9 | % | 5.7 | % | ||||||||||||||||||||||||
Net real estate operations | 100 | % | 4.9 | % | 2.5 | % | 6.4 | % |
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Reconciliation of GAAP to Supplemental Schedule 3 Trailing Twelve Month (TTM) Proportionate NOI Amounts | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Subtract | Add | |||||||||||||||||||||||||||||||
Year Ended December 31, 2011 | Y2011 to Y2012 | Nine Months Ended September 30, 2011 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Property Classification, Discontinued Operations and GAAP Consolidation Accounting Changes | Proportionate Amount | Proportionate Amount | TTM Proportionate Amount | |||||||||||||||||||||||||
Rental and other property revenues: | ||||||||||||||||||||||||||||||||
Conventional Same Store properties | $ | 800,269 | $ | — | $ | (56,987 | ) | $ | 743,282 | $ | (38,665 | ) | $ | 525,309 | $ | 562,259 | $ | 741,567 | ||||||||||||||
Other Conventional properties | 59,414 | 5,744 | (136 | ) | 65,022 | (1,269 | ) | 47,943 | 52,821 | 68,631 | ||||||||||||||||||||||
Affordable properties | 180,046 | 39,458 | (85,546 | ) | 133,958 | (14,526 | ) | 89,477 | 90,290 | 120,245 | ||||||||||||||||||||||
Total rental and other property revenues | 1,039,729 | 45,202 | (142,669 | ) | 942,262 | (54,460 | ) | 662,729 | 705,370 | 930,443 | ||||||||||||||||||||||
Property operating expenses: | ||||||||||||||||||||||||||||||||
Conventional Same Store properties | 289,241 | — | (21,690 | ) | 267,551 | $ | (15,347 | ) | 191,912 | 198,736 | 259,028 | |||||||||||||||||||||
Other Conventional properties | 29,118 | 3,345 | (77 | ) | 32,386 | (1,289 | ) | 23,260 | 26,119 | 33,956 | ||||||||||||||||||||||
Affordable properties | 78,620 | 24,641 | (46,598 | ) | 56,663 | (8,182 | ) | 36,535 | 35,992 | 47,938 | ||||||||||||||||||||||
Total property operating expenses | 396,979 | 27,986 | (68,365 | ) | 356,600 | (24,818 | ) | 251,707 | 260,847 | 340,922 | ||||||||||||||||||||||
Net operating income: | ||||||||||||||||||||||||||||||||
Conventional Same Store properties | 511,028 | — | (35,297 | ) | 475,731 | (23,318 | ) | 333,397 | 363,523 | 482,539 | ||||||||||||||||||||||
Other Conventional properties | 30,296 | 2,399 | (59 | ) | 32,636 | 20 | 24,683 | 26,702 | 34,675 | |||||||||||||||||||||||
Affordable properties | 101,426 | 14,817 | (38,948 | ) | 77,295 | (6,344 | ) | 52,942 | 54,298 | 72,307 | ||||||||||||||||||||||
Total rental and other property revenues | $ | 642,750 | $ | 17,216 | $ | (74,304 | ) | $ | 585,662 | $ | (29,642 | ) | $ | 411,022 | $ | 444,523 | $ | 589,521 | ||||||||||||||
REDEVELOPMENT PROPERTIES: Properties where (1) a substantial number of available units have been vacated for major renovations or (2) occupancy was not stabilized as of January 1, 2011 due to ongoing or completed renovations, such as exteriors, common areas or unit improvements.
SAME STORE PROPERTIES: Same Store properties are those properties (1) that are managed by Aimco, (2) in which Aimco's ownership exceeds 10%, and (3) that have reached and maintained a stabilized level of occupancy as of January 1, 2011. Same Store properties are classified as either Conventional or Affordable and properties classified in the consolidated financial statements as held for sale are not included in Same Store.
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