Exhibit 99.1
Denver, Colorado- November 2, 2006
Apartment Investment and Management Company
Announces Third Quarter 2006 Results
SUMMARY FINANCIAL RESULTS: Apartment Investment and Management Company (Aimco) (NYSE:AIV) announced third quarter 2006 results including:
| • | | Net loss for the quarter of $24.9 million declined $51.3 million from net income of $26.4 million in the third quarter 2005. Lower results are primarily due to higher gains on property sales in the third quarter last year of $32.1 million and increases in interest and depreciation expense totaling $37.6 million, partially offset by improved property operations. Earnings per share (EPS) was a loss of $0.48 on a diluted basis, compared with earnings of $0.05 in the third quarter 2005. |
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| • | | Funds from operations (diluted) (FFO) is a non-GAAP financial measure defined in the glossary in the Supplemental Information (the Glossary). FFO calculated in accordance with the definition prescribed by the National Association of Real Estate Investment Trusts (NAREIT) was $74.3 million, or $0.74 per share, compared with $55.2 million, or $0.58 per share, in the third quarter 2005. FFO before impairment (including recovery of impairment charges) and preferred redemption charges was $78.2 million, or $0.78 per share. FFO results are $0.03 above the mid-point of guidance and include the benefit of Same Store operating performance above the mid-point of guidance and a $0.025 adjustment for the revised accounting application of FIN 46 as it relates to tax credit fee income (see Special Supplement for further information). |
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| • | | Adjusted funds from operations (diluted) (AFFO; a non-GAAP financial measure defined in the Glossary) was $57.6 million, or $0.58 per share, compared with $37.5 million, or $0.40 per share, in the third quarter 2005. AFFO includes deductions of $0.20 and $0.25 per share for capital replacement expenditures in the third quarter 2006 and third quarter 2005, respectively. |
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| • | | In the first quarter 2006, Aimco adopted the accounting requirement EITF 04-5 that resulted in the consolidation of an additional 149 properties, nine of which were sold as of September 30, 2006. These properties are consolidated in the 2006 GAAP financial statements but not the prior year period. In comparing the third quarter 2006 with the third quarter 2005 certain categories of revenues and expenses are higher in the third quarter 2006 in comparison with the third quarter 2005, due in part to the accounting change. |
Diluted Per Share Results
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| | | THIRD QUARTER | | | YEAR-TO-DATE | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
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Earnings (loss)- EPS | | $ | (0.48 | ) | | $ | 0.05 | | | $ | 0.31 | | | $ | (0.11 | ) |
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Funds from operations- FFO | | $ | 0.74 | | | $ | 0.58 | | | $ | 2.16 | | | $ | 1.88 | |
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| FFO before impairment and preferred redemption charges | | $ | 0.78 | | | $ | 0.65 | | | $ | 2.21 | | | $ | 1.99 | |
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Adjusted funds from operations- AFFO | | $ | 0.58 | | | $ | 0.40 | | | $ | 1.66 | | | $ | 1.33 | |
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Contact
Investor Relations 303.691.4350, Investor@Aimco.com
Jennifer Martin, Vice President-Investor Relations 303.691.4440
Management Comments
Chairman and Chief Executive Officer Terry Considine comments: “Operating performance continued strong in the third quarter with Same Store NOI up 10% over the third quarter last year. Our ninth consecutive quarter of NOI growth was driven by significant rent growth as well as process improvement and discipline on the expense side. The acceleration of our development program, both conventional and funded by tax credits, provides a second source of future growth.”
Chief Financial Officer Tom Herzog adds: “2006 is shaping up to be a very good year for Aimco. Consistent strength in our property operations coupled with favorable operating and financial leverage are all contributing to continued FFO and NAV growth. Per share results have continued to exceed our expectations despite a 5.6% increase in fully diluted share count since the first of the year due to the increase in Aimco’s share price. This reduced third quarter FFO per share by more than $0.04 since our initial guidance. For the fourth quarter we expect FFO to range from $0.80 to $0.84 per share, which increases our full year guidance to $3.01 to $3.05 per share excluding impairment and Topic D-42 charges of $0.05 per share year-to-date. For the fourth quarter we expect AFFO to range from $0.70 to $0.74 per share, which increases our full year guidance to $2.36 to $2.40 per share. We are well positioned as we look forward to 2007 given solid operations, growth in the tax credit business, strengthened redevelopment infrastructure and pipeline, stability of the balance sheet, productivity improvements, and dividend coverage.”
Property Operations
CONVENTIONAL REAL ESTATE OPERATIONS — Conventional real estate operations include Aimco’s diversified portfolio of market rate apartment communities. At the end of the third quarter 2006, this portfolio had 496 properties with 142,770 units in which Aimco had a weighted average ownership of 82%. During the third quarter 2006, conventional real estate operations generated net operating income of $167.2 million.
“Same Store” Results
The Same Store portfolio is a sub-set of total conventional properties (see the Glossary). In the third quarter 2006, the Same Store portfolio included 431 communities with 102,045 effective units based on Aimco’s weighted average ownership of 82% (see Supplemental Schedules 6a through 7).
Comparing Same Store results in the third quarter 2006 with the third quarter 2005, total revenue increased $13.7 million, or 5.6%. The increase in revenue was primarily generated by: higher average rent, up $32 per unit, or 4.1%, from $785 per unit to $817 per unit; higher occupancy, up 100 basis points from 93.2% to 94.2% and increased utility reimbursements, up $1.1 million. Same Store expenses of $108.2 million were essentially flat with the prior year period and included savings in turnover and marketing offset by higher costs in utilities (mostly offset by higher utility reimbursement revenue), maintenance and property taxes. Same Store portfolio net operating income was $151.9 million for the third quarter 2006, up 10.0% from the third quarter 2005.
Same Store Operating Results
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| | | THIRD QUARTER | |
| | | Year-over-year | | | Sequential | |
| | | 2006 | | | 2005 | | | Variance | | | 2nd Qtr | | | Variance | |
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| Same Store Operating Measures | | | | | | | | | | | | | | | | | | | | |
| Average Physical Occupancy | | | 94.2 | % | | | 93.2 | % | | | 1.0 | % | | | 94.2 | % | | | — | |
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| Average Rent Per Unit | | $ | 817 | | | $ | 785 | | | | 4.1 | % | | $ | 801 | | | | 2.0 | % |
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| Total Same Store ($mm) | | | | | | | | | | | | | | | | | | | | |
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| Revenue | | $ | 260.1 | | | $ | 246.4 | | | | 5.6 | % | | $ | 257.0 | | | | 1.2 | % |
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| Expenses | | | (108.2 | ) | | | (108.3 | ) | | | -0.1 | % | | | (105.7 | ) | | | 2.4 | % |
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| NOI ($mm) | | $ | 151.9 | | | $ | 138.1 | | | | 10.0 | % | | $ | 151.3 | | | | 0.4 | % |
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Comparing Same Store results on a sequential basis, total revenue increased $3.1 million in the third quarter 2006 compared with the second quarter 2006, driven primarily by a $16 per unit increase in average rental rates. Expenses increased $2.6 million or 2.4%, primarily due to higher turnover and payroll expenses partially offset by improved insurance and property tax expenses. Net operating income increased $0.5 million, or 0.4%, on a sequential basis.
Core Properties
Core properties (defined in the Glossary) offer the potential for higher long-term growth. Core operations are focused in 27 markets located predominantly in coastal states as well as the Rocky Mountain region and Chicago. In the third quarter 2006, core properties within the “Same Store” portfolio accounted for 58% of effective units, yet accounted for 73% of net operating income. The core “Same Store” properties had the following operating characteristics compared with non-core properties (defined in the Glossary): average rents of $960 per month versus $639 per month; average occupancy of 94.8% versus 93.3%; and an average operating margin of 61.8% versus 51.0%. The average rental rate growth for “Same Store” core versus non-core properties in the third quarter 2006 compared with the third quarter 2005 was 6.3% versus 2.9%, respectively. See Supplemental Schedule 7 for additional information on core and non-core property operations.
AIMCO CAPITAL PROPERTY OPERATIONS — Aimco is among the largest owners and operators of affordable properties in the United States. Aimco Capital has been organized to oversee Aimco’s affordable property operations, asset management and transactional activities, and is led by a management team dedicated to this sector.
At the end of the third quarter 2006, Aimco’s owned affordable portfolio included 334 properties with 39,179 units in which Aimco had an average ownership of 48%, up from 38% at the end of the second quarter 2006, due to Aimco’s revised accounting treatment of certain properties, which resulted in increasing its effective ownership in certain tax credit redevelopment properties to reflect revisions to our tax credit accounting (see Special Supplement for further information). During the third quarter 2006, affordable property operations including property management generated net operating income of $24.6 million. On a year-over-year basis, third quarter average month-end occupancy for the owned and managed portfolio increased 110 basis points from 96.1% to 97.2%, and average rent per unit increased 6.6% from $671 to $715 per unit.
Portfolio Management and Redevelopment Activity
Acquisitions — Aimco acquired two properties in the third quarter 2006 for $31 million, both of which are located in Pacifica, California, approximately 15 minutes south of downtown San Francisco. Acquisitions included: Ocean View, which consists of two adjacent, waterfront communities with 63 units that Aimco purchased for $12.1 million, or $192,000 per unit; and Pacifica Park with 104 units purchased for $19.2 million, or $184,600 per unit. These properties were built 43 and 29 years ago, respectively, and present upside opportunity by repositioning the assets through redevelopment in this growing sub-market.
During the third quarter 2006, Aimco purchased additional limited partnership interests in 26 partnerships that own 76 properties for an aggregate of $0.7 million.
See Supplemental Schedule 8 for additional information on acquisition activity.
Dispositions — Non-core sales: Aimco regularly reviews its portfolio to identify properties that do not meet its long-term investment criteria and are typically located in markets that Aimco seeks to exit. These properties are considered non-core but Aimco will hold them over the intermediate term.
In the third quarter 2006, Aimco sold eight (seven non-core and one core) conventional properties and five affordable properties with 1,556 and 610 units, respectively, for $117 million in gross proceeds (Aimco share $90 million). Aimco’s share of net proceeds after repayment of existing property debt and transaction costs was $42 million. Year-to-date Aimco has sold 33 non-core conventional properties, one core property, the South Tower at its Flamingo South Beach property, and 20 affordable properties for gross proceeds of $716 million (Aimco share $577 million) and exited one market. See Supplemental Schedule 8 for additional information on disposition activity.
Gain on Dispositions — Aimco’s property dispositions resulted in gross gains on dispositions of real estate (including gains related to sales of unconsolidated entities and other and gains within discontinued operations), of $19.3 million for the third quarter 2006, compared with gains of $52.1 million for the third quarter 2005.
REDEVELOPMENT ACTIVITY — Aimco is reinvesting in and upgrading its portfolio through property redevelopments. At the end of the third quarter, Aimco had 37 active conventional projects and 13 active affordable projects. Aimco invested $54.6 million in conventional redevelopment during the third quarter and $129.0 million year-to-date, with an average ownership of approximately 88%. Aimco expects to invest $150 million to $200 million in conventional redevelopment projects during 2006. Affordable redevelopment project expenditures totaled $18.6 million in the third quarter and $51.0 million year-to-date, with these projects predominantly funded by tax credit investors. Further information on redevelopment projects is provided in Supplemental Schedule 10.
ENTITLEMENT ACTIVITY — Aimco has additional development opportunities tied to successful property re-entitlement activity. In July, Aimco received final approval to increase the density at Treetops in San Bruno, California. Located with views of San Francisco Bay and the Pacific, density was increased 66% from 308 to 510 units. Aimco also received final approval in August to rezone the 9.5-acre Creekside Apartments in Denver, Colorado. Aimco was successful in increasing density 74% from 328 to 570 units.
Additional Financial Information
PROPERTY MANAGEMENT INCOME — Income from property management is generated when Aimco provides property management services to properties with unaffiliated partners. On a GAAP basis, income from consolidated properties is eliminated in Aimco’s consolidated financial statements and the related economic benefit is reflected in minority interest in consolidated real estate partnerships. Property management net operating income under GAAP was $1.6 million in the third quarter 2006 compared with $4.2 million in the third quarter 2005. As discussed on page one, the consolidation of an additional 149 properties in the first quarter 2006 in connection with the adoption of EITF 04-5 reduced the reported amounts of property management revenues from previously unconsolidated properties.
ACTIVITY FEE AND ASSET MANAGEMENT INCOME — Activity fees are generated from transactions (including tax credit redevelopments, syndications, dispositions, refinancings and partnership promotes) and are earned primarily by Aimco Capital. Aimco Capital earns asset management income from the financial management of partnerships, rather than property management of day-to-day operations. Activity fee and asset management net operating income from both conventional and Aimco Capital operations was $9.4 million in the third quarter 2006 compared with $5.2 million in the third quarter 2005, or $6.8 and $3.8 million net of the effective tax rate, respectively. Year-to-date activity fee and asset management income net of tax was approximately $18.3 million. In connection with the ownership adjustment to tax credit redevelopment properties discussed above, Aimco revised its accounting treatment for certain activity fees related to those properties. Effective July 1, 2006, FFO is recognized on the real estate, based on the economic ownership of the asset. Proceeds received in exchange for the transfer of the tax credits are recognized ratably as the tax benefits are delivered to the investor, and syndication fees are recognized upon completion of the syndication. (see Special Supplement for further information.)
INTEREST INCOME — Interest income was $7.6 million for the third quarter 2006 compared with $7.3 million for the third quarter 2005. Interest income is earned in part from money market and interest bearing accounts as well as notes receivable from unconsolidated partnerships.
DEBT ACTIVITY — During the third quarter 2006, Aimco closed 18 property loans generating total proceeds of $214.6 million at a weighted average interest rate of 5.91%. This included refinancing $78.3 million in existing mortgage loans, reducing the average rate from 7.27% to 5.91%. After repayment of existing property debt, transaction costs and distributions to limited partners, Aimco’s share of net proceeds was $110.8 million.
At quarter-end, Aimco’s corporate debt balance was $555.0 million, down from $617.0 million at year-end 2005, and carried a weighted average interest rate of 6.93%. The balance on Aimco’s revolving credit facility was $155.0 million, leaving $262.3 million (after $32.7 million in outstanding letters of credit) in available capacity. Please refer to Schedule 5 of the Supplemental Information for more detail on debt activity.
As of September 30, 2006, Aimco had $6.8 billion total consolidated debt outstanding of which $5.0 billion was fixed rate mortgage debt and $1.8 billion was floating rate debt. The floating rate debt included $555 million corporate debt, $524 million floating rate property loans and $726 million of tax-exempt bonds. In addition, Aimco had $100 million in floating rate preferred stock (CRAs). Aimco’s floating rate exposure to changes in interest rates is mitigated by: tax-exempt bonds, which move at approximately 0.68% for a 1.00% change in interest rates; the offsetting effect of floating rate assets such as cash and notes receivable; and interest capitalized on redevelopment properties. Based on Aimco’s proportionate share of quarter-end balances (see Supplemental Schedule 3), Aimco estimates its sensitivity to a 1% change in LIBOR to be less than $0.02 per share per quarter.
INTEREST EXPENSE — Consolidated interest expense was $105.9 million for the third quarter 2006 compared with $90.7 million for the third quarter 2005. The $15.2 million increase in interest expense was due to: $9.5 million representing interest on property loans that were consolidated in 2006 primarily as a result of adopting accounting requirement EITF 04-5; and $6.7 million related to increased rates and balances on property debt net of higher capitalized interest; partially offset by a ($1.0) million improvement in interest expense related to a lower average balance on corporate debt net of increased rates.
STOCKHOLDERS’ EQUITY — During the third quarter 2006, Aimco’s average daily shares outstanding were 100.0 million, representing increases of 3.6% and 2.5% over the average daily shares outstanding during the first and second quarters, respectively. During the third quarter 2006, Aimco repurchased 1.9 million shares of its Class A Common stock at an average price of $51.68 per share for a total repurchase value of $100 million.
G&A — General and administrative expenses for the third quarter 2006 of $25.3 million were up $2.2 million compared with $23.1 million in the third quarter 2005. The year-over-year increase in G&A of $2.2 million is due to higher accruals of approximately $4.6 million for incentive compensation based on year-to-date results above the prior year, partially offset by lower personnel, legal and consulting fees.
Outlook
For the fourth quarter 2006, FFO is forecast in a range from $0.80 to $0.84 per share, before impairment and preferred redemption charges, and AFFO is forecast in a range from $0.70 to $0.74 per share.
For the full year 2006, the FFO forecast is increased to range between $3.01 and $3.05 per share, before impairment and preferred redemption charges, and AFFO is forecast in a range from $2.36 to $2.40 per share. Please refer to the Outlook Schedule, which follows the Consolidated Financial Statements in this release, for more detail on the fourth quarter and full year 2006.
Dividends on Common Stock
As announced on October 31, 2006, the Aimco Board of Directors declared a quarterly cash dividend of $0.60 per share of Class A Common Stock for the quarter ended September 30, 2006, payable on November 30, 2006, to stockholders of record on November 17, 2006. The dividend represents 103% of AFFO (diluted) and 81% of FFO (diluted), on a per share basis, and a 4.4% annualized yield based on the $54.41 closing price of Aimco’s Class A Common Stock on September 29, 2006.
Earnings Conference Call
Please join Aimco management for the Third Quarter 2006 earnings conference call to be held Thursday, November 2, 2006, at 1:00 p.m. Eastern time. You may join the conference call through an Internet audiocast via Aimco’s Website at http://www.aimco.com/CorporateInformation/About/Financial/3Q2006 then click on the Webcast link. Alternatively, you may join the conference call via telephone by dialing 866-713-8562 with passcode 26318270, or dialing 617-597-5310 for international callers. Please call approximately five minutes before the conference call is scheduled to begin. If you are unable to join the live conference call, you may access the replay for 30 days on Aimco’s Website or by dialing 888-286-8010 (617-801-6888 for international callers) and using passcode 42128966.
Supplemental Information
The Supplemental Information referenced in this release is available at Aimco’s Website at the link http://www.aimco.com/CorporateInformation/About/Financial/3Q2006 or by calling Investor Relations at 303-691-4350.
Forward-looking Statements
This earnings release and Supplemental Information contain forward-looking statements, including statements regarding projected results and specifically forecasts of fourth quarter and full year 2006 results. These forward-looking statements are based on management’s judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to, Aimco’s ability to maintain current or meet projected occupancy, rent levels and Same Store results and Aimco’s ability to close transactions necessary to generate fee income as anticipated. 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 that are beyond the control of Aimco including, without limitation: natural disasters such as hurricanes; national and local economic conditions; the general level of interest rates; energy costs; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets; insurance risk; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; the timing of acquisitions and dispositions; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; 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. Readers should carefully review Aimco’s financial statements and notes thereto, as well as the risk factors described in Aimco’s Annual Report on Form 10-K for the year ended December 31, 2005, 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.
About Aimco
Aimco is a real estate investment trust headquartered in Denver, Colorado that owns and operates a geographically diversified portfolio of apartment communities through 19 regional operating centers. Aimco, through its subsidiaries, operates 1,290 properties, including approximately 225,000 apartment units, and serves approximately one million residents each year. Aimco’s properties are located in 47 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.
GAAP Income Statements
Consolidated Statements of Income
(in thousands, except per share data) (unaudited)
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| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
REVENUES: | | | | | | | | | | | | | | | | |
| Rental and other property revenues | | $ | 422,602 | | | $ | 354,262 | | | $ | 1,245,679 | | | $ | 1,025,891 | |
| Property management revenues, primarily from affiliates | | | 2,599 | | | | 6,094 | | | | 9,221 | | | | 18,684 | |
| Activity fees and asset management revenues, primarily from affiliates | | | 10,470 | | | | 8,018 | | | | 32,143 | | | | 22,715 | |
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| Total revenues | | | 435,671 | | | | 368,374 | | | | 1,287,043 | | | | 1,067,290 | |
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EXPENSES: | | | | | | | | | | | | | | | | |
| Property operating expenses | | | 194,749 | | | | 169,181 | | | | 571,895 | | | | 480,704 | |
| Property management expenses | | | 984 | | | | 1,928 | | | | 3,627 | | | | 5,674 | |
| Activity and asset management expenses | | | 1,073 | | | | 2,778 | | | | 6,744 | | | | 7,697 | |
| Depreciation and amortization | | | 126,112 | | | | 103,717 | | | | 352,624 | | | | 287,648 | |
| General and administrative expenses | | | 25,262 | | | | 23,095 | | | | 72,769 | | | | 65,663 | |
| Other expenses (income), net | | | (30 | ) | | | 330 | | | | 9,843 | | | | 5,717 | |
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| Total expenses | | | 348,150 | | | | 301,029 | | | | 1,017,502 | | | | 853,103 | |
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Operating income | | | 87,521 | | | | 67,345 | | | | 269,541 | | | | 214,187 | |
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| Interest income | | | 7,580 | | | | 7,279 | | | | 20,209 | | | | 21,989 | |
| Recovery of (provision for) losses on notes receivable | | | 46 | | | | (206 | ) | | | (718 | ) | | | 1,352 | |
| Interest expense | | | (105,889 | ) | | | (90,700 | ) | | | (309,396 | ) | | | (261,318 | ) |
| Deficit distributions to minority partners | | | (14,072 | ) | | | (2,849 | ) | | | (20,129 | ) | | | (5,719 | ) |
| Equity in losses of unconsolidated real estate partnerships | | | (169 | ) | | | (552 | ) | | | (2,606 | ) | | | (1,871 | ) |
| Recovery of impairment losses (impairment losses) related to real estate | | | (158 | ) | | | (1,178 | ) | | | 813 | | | | (1,709 | ) |
| Gain on dispositions of real estate related to unconsolidated entities and other | | | 7,641 | | | | 8,387 | | | | 21,397 | | | | 13,670 | |
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Loss before minority interests and discontinued operations | | | (17,500 | ) | | | (12,474 | ) | | | (20,889 | ) | | | (19,419 | ) |
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| Minority interests: | | | | | | | | | | | | | | | | |
| Minority interest in consolidated real estate partnerships | | | (23,611 | ) | | | 3,836 | | | | (18,063 | ) | | | 7,381 | |
| Minority interest in Aimco Operating Partnership, preferred [a] | | | (1,785 | ) | | | (1,806 | ) | | | (5,368 | ) | | | (5,424 | ) |
| Minority interest in Aimco Operating Partnership, common [a] | | | 6,548 | | | | 3,287 | | | | 10,549 | | | | 8,547 | |
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| Total minority interests | | | (18,848 | ) | | | 5,317 | | | | (12,882 | ) | | | 10,504 | |
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Loss from continuing operations | | | (36,348 | ) | | | (7,157 | ) | | | (33,771 | ) | | | (8,915 | ) |
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| Income from discontinued operations, net [b] | | | 11,473 | | | | 33,509 | | | | 128,058 | | | | 64,865 | |
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Net income (loss) | | | (24,875 | ) | | | 26,352 | | | | 94,287 | | | | 55,950 | |
| Net income attributable to preferred stockholders | | | 21,656 | | | | 21,693 | | | | 64,744 | | | | 66,255 | |
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| Net income (loss) attributable to common stockholders | | $ | (46,531 | ) | | $ | 4,659 | | | $ | 29,543 | | | $ | (10,305 | ) |
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| Weighted average number of common shares outstanding | | | 96,061 | | | | 94,041 | | | | 95,772 | | | | 93,765 | |
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| Weighted average number of common shares and common share equivalents outstanding | | | 96,061 | | | | 94,041 | | | | 95,772 | | | | 93,765 | |
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| Earnings (loss) per common share — basic: | | | | | | | | | | | | | | | | |
| Loss from continuing operations (net of income attributable to preferred stockholders) | | $ | (0.60 | ) | | $ | (0.31 | ) | | $ | (1.03 | ) | | $ | (0.80 | ) |
| Income from discontinued operations | | | 0.12 | | | | 0.36 | | | | 1.34 | | | | 0.69 | |
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| Net income (loss) attributable to common stockholders | | $ | (0.48 | ) | | $ | 0.05 | | | $ | 0.31 | | | $ | (0.11 | ) |
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| Earnings (loss) per common share — diluted: | | | | | | | | | | | | | | | | |
| Loss from continuing operations (net of income attributable to preferred stockholders) | | $ | (0.60 | ) | | $ | (0.31 | ) | | $ | (1.03 | ) | | $ | (0.80 | ) |
| Income from discontinued operations | | | 0.12 | | | | 0.36 | | | | 1.34 | | | | 0.69 | |
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| Net income (loss) attributable to common stockholders | | $ | (0.48 | ) | | $ | 0.05 | | | $ | 0.31 | | | $ | (0.11 | ) |
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GAAP Income Statements (continued)
Notes to Consolidated Statements of Income
| | | [a] The Aimco Operating Partnership is AIMCO Properties, L.P., the operating partnership in Aimco’s UPREIT structure |
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| | | [b] Income from discontinued operations of consolidated properties is broken down as follows (in thousands): |
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| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| Rental and other property revenues | | $ | 2,876 | | | $ | 42,620 | | | $ | 33,800 | | | $ | 141,287 | |
| Property operating expenses | | | (1,881 | ) | | | (23,274 | ) | | | (18,438 | ) | | | (73,776 | ) |
| Other (expenses) income, net | | | 60 | | | | (495 | ) | | | (3,307 | ) | | | (1,587 | ) |
| Depreciation and amortization | | | (549 | ) | | | (9,284 | ) | | | (8,088 | ) | | | (37,934 | ) |
| Interest expense | | | (646 | ) | | | (8,838 | ) | | | (7,475 | ) | | | (30,887 | ) |
| Interest income | | | 57 | | | | 128 | | | | 335 | | | | 426 | |
| Minority interest in consolidated real estate partnerships | | | 1,189 | | | | 23 | | | | 2,454 | | | | 1,733 | |
| | | | | | | | | | | | | |
| Income (loss) from operations | | | 1,106 | | | | 880 | | | | (719 | ) | | | (738 | ) |
| | | | | | | | | | | | | | | | | |
| Gain on dispositions of real estate, net of minority partners’ interest | | | 11,647 | | | | 43,758 | | | | 154,180 | | | | 80,316 | |
| Recovery of impairment losses (impairment losses) on real estate assets sold or held for sale | | | 131 | | | | (6,208 | ) | | | 123 | | | | (8,395 | ) |
| Recovery of deficit distributions to minority partners | | | 2,193 | | | | 543 | | | | 18,384 | | | | 3,904 | |
| Income tax arising from disposals | | | (2,211 | ) | | | (1,630 | ) | | | (30,197 | ) | | | (2,849 | ) |
| Minority interest in Aimco Operating Partnership | | | (1,393 | ) | | | (3,834 | ) | | | (13,713 | ) | | | (7,373 | ) |
| | | | | | | | | | | | | |
| Income from discontinued operations | | $ | 11,473 | | | $ | 33,509 | | | $ | 128,058 | | | $ | 64,865 | |
| | | | | | | | | | | | | |
GAAP Balance Sheets
Consolidated Balance Sheets
(in thousands)
(unaudited)
| | | | | | | | | |
| | | September 30, 2006 | | | December 31, 2005 | |
ASSETS | | | | | | | | |
| Buildings and improvements | | $ | 9,690,408 | | | $ | 8,255,582 | |
| Land | | | 2,340,744 | | | | 2,233,630 | |
| Accumulated depreciation | | | (2,894,820 | ) | | | (2,097,966 | ) |
| | | | | | | |
| NET REAL ESTATE | | | 9,136,332 | | | | 8,391,246 | |
| Cash and cash equivalents | | | 182,283 | | | | 161,730 | |
| Restricted cash | | | 348,320 | | | | 283,955 | |
| Accounts receivable | | | 56,569 | | | | 59,889 | |
| Accounts receivable from affiliates | | | 24,534 | | | | 43,070 | |
| Deferred financing costs | | | 75,173 | | | | 64,873 | |
| Notes receivable from unconsolidated real estate partnerships | | | 46,937 | | | | 177,200 | |
| Notes receivable from non-affiliates | | | 52,124 | | | | 23,760 | |
| Investment in unconsolidated real estate partnerships | | | 54,671 | | | | 167,818 | |
| Other assets | | | 233,259 | | | | 216,863 | |
| Deferred income tax asset, net | | | — | | | | 9,835 | |
| Assets held for sale | | | 11,163 | | | | 418,921 | |
| | | | | | | |
| TOTAL ASSETS | | $ | 10,221,365 | | | $ | 10,019,160 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| Property tax-exempt bond financing | | $ | 1,036,582 | | | $ | 1,035,584 | |
| Property loans payable | | | 5,197,393 | | | | 4,404,699 | |
| Term loans | | | 400,000 | | | | 400,000 | |
| Credit facility | | | 155,000 | | | | 217,000 | |
| | | | | | | |
| TOTAL INDEBTEDNESS | | | 6,788,975 | | | | 6,057,283 | |
| Accounts payable | | | 39,280 | | | | 34,381 | |
| Accrued liabilities and other | | | 406,306 | | | | 423,633 | |
| Deferred income | | | 158,156 | | | | 46,837 | |
| Security deposits | | | 44,623 | | | | 37,577 | |
| Deferred income tax liability, net | | | 3,934 | | | | — | |
| Liabilities related to assets held for sale | | | 958 | | | | 267,937 | |
| | | | | | | |
| TOTAL LIABILITIES | | | 7,442,232 | | | | 6,867,648 | |
| | | | | | | |
| | | | | | | | | |
| Minority interest in consolidated real estate partnerships | | | 215,099 | | | | 217,679 | |
| Minority interest in Aimco Operating Partnership | | | 190,634 | | | | 217,729 | |
| | | | | | | | | |
| STOCKHOLDERS’ EQUITY | | | | | | | | |
| Class A Common Stock | | | 959 | | | | 957 | |
| Additional paid-in capital | | | 3,063,361 | | | | 3,081,707 | |
| Perpetual preferred stock | | | 723,500 | | | | 860,250 | |
| Convertible preferred stock | | | 100,000 | | | | 150,000 | |
| Distributions in excess of earnings | | | (1,509,391 | ) | | | (1,350,899 | ) |
| Notes due on common stock purchases | | | (5,029 | ) | | | (25,911 | ) |
| | | | | | | |
| TOTAL STOCKHOLDERS’ EQUITY | | | 2,373,400 | | | | 2,716,104 | |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 10,221,365 | | | $ | 10,019,160 | |
| | | | | | | |
GAAP Statements of Cash Flows
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| | | | | | | | | |
| | | Nine Months | | | Nine Months | |
| | | Ended | | | Ended | |
| | | September 30, 2006 | | | September 30, 2005 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | |
| Net income | | $ | 94,287 | | | $ | 55,950 | |
| Depreciation and amortization | | | 352,624 | | | | 287,648 | |
| Adjustments to income from discontinued operations | | | (153,355 | ) | | | (70,185 | ) |
| Other adjustments to reconcile net income | | | 45,646 | | | | 9,054 | |
| Changes in operating assets and liabilities | | | 52,577 | | | | (4,789 | ) |
| | | | | | | |
| Net cash provided by operating activities | | | 391,779 | | | | 277,678 | |
| | | | | | | |
| | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
| Purchases of real estate | | | (63,240 | ) | | | (243,996 | ) |
| Capital expenditures | | | (366,887 | ) | | | (324,046 | ) |
| Proceeds from dispositions of real estate | | | 639,924 | | | | 390,808 | |
| Cash from newly consolidated properties | | | 22,432 | | | | 2,211 | |
| Purchases of non-real estate related corporate assets | | | (5,738 | ) | | | (11,090 | ) |
| Purchases of partnership interests and other assets | | | (12,516 | ) | | | (85,267 | ) |
| Originations of notes receivable from unconsolidated real estate partnerships | | | (8,062 | ) | | | (28,042 | ) |
| Proceeds from repayment of notes receivable | | | 6,074 | | | | 16,402 | |
| Distributions received from investments in unconsolidated real estate partnerships | | | 11,071 | | | | 40,131 | |
| Other investing activities | | | (13,419 | ) | | | (13,442 | ) |
| | | | | | | |
| Net cash provided by (used in) investing activities | | | 209,639 | | | | (256,331 | ) |
| | | | | | | |
| | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
| Proceeds from property loans | | | 882,854 | | | | 550,243 | |
| Principal repayments on property loans | | | (798,008 | ) | | | (452,310 | ) |
| Principal repayments on tax-exempt bond financing | | | (33,541 | ) | | | (40,431 | ) |
| Net borrowings (repayments) on term loans and revolving credit facility | | | (62,000 | ) | | | 263,300 | |
| Redemption of mandatorily redeemable preferred securities | | | — | | | | (15,019 | ) |
| Proceeds from issuance of preferred stock, net | | | 97,517 | | | | — | |
| Redemption of preferred stock | | | (286,750 | ) | | | (31,250 | ) |
| Repurchase of Class A Common Stock | | | (100,000 | ) | | | — | |
| Proceeds from Class A Common Stock option exercises | | | 62,288 | | | | — | |
| Principal repayments received on notes due on Class A Common Stock purchases | | | 21,529 | | | | 11,245 | |
| Payment of Class A Common Stock dividends | | | (173,532 | ) | | | (169,967 | ) |
| Payment of preferred stock dividends | | | (58,261 | ) | | | (64,889 | ) |
| Contributions from minority interest | | | 3,075 | | | | 25,453 | |
| Payment of distributions to minority interest | | | (107,533 | ) | | | (52,516 | ) |
| | | | | | | |
| Other financing activities | | | (28,503 | ) | | | (10,913 | ) |
| | | | | | | |
| | | | | | | | | |
| Net cash provided by (used in) financing activities | | | (580,865 | ) | | | 12,946 | |
| | | | | | | |
| NET INCREASE IN CASH AND CASH EQUIVALENTS | | | 20,553 | | | | 34,293 | |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | 161,730 | | | | 105,343 | |
| | | | | | | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | 182,283 | | | $ | 139,636 | |
| | | | | | | |
Outlook and Forward Looking Statement
Fourth Quarter and Full Year 2006
(unaudited)
This earnings release and Supplemental Information contain forward-looking statements, including statements regarding projected results and specifically forecasts of fourth quarter and full year 2006 results. These forward-looking statements are based on management’s judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to, Aimco’s ability to maintain current or meet projected occupancy, rent levels and Same Store results and Aimco’s ability to close transactions necessary to generate fee income as anticipated. 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 that are beyond the control of Aimco including, without limitation: natural disasters such as hurricanes; national and local economic conditions; the general level of interest rates; energy costs; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets; insurance risk; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; the timing of acquisitions and dispositions; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; 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. Readers should carefully review Aimco’s financial statements and notes thereto, as well as the risk factors described in Aimco’s Annual Report on Form 10-K for the year ended December 31, 2005 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.
| | | | | | | |
| | | Fourth Quarter 2006 | | Full Year 2006 | | |
| GAAP earnings per share (1) | | -$0.44 to -$0.40 | | $0.02 to $0.06 | | |
| Add: Depreciation and other | | $1.24 | | $2.99 | | |
| FFO per share (2) | | $0.80 to $0.84 | | $3.01 to $3.05 | | |
| AFFO per share | | $0.70 to $0.74 | | $2.36 to $2.40 | | |
| | | | | | | |
| 2006 Same Store operating assumptions: | | | | | | |
| Weighted average daily occupancy | | 94% to 95% | | 94% to 95% | | |
| NOI change — sequential | | 1.0% to 2.0% | | | | |
| NOI change - 2006 vs. 2005 | | 6.5% to 7.5% | | 9.25% to 9.75% | | |
| | | | | | | |
| Gross dispositions (3) | | | | $1,200M to $1,400M | | (Aimco share $875M - $1,000M) |
| | | | | | | |
| Gross acquisitions (4) | | | | $160M to $170M | | |
| | |
| (1) | | Aimco’s earnings per share guidance does not include estimates for (i) unrecognized gains on dispositions or impairment losses due to the unpredictable timing of transactions or (ii) unrecognized deferred costs on early repayment of debt or redemption related preferred stock issuance charges. |
| |
| (2) | | FFO per share represents FFO before impairments and redemption related preferred stock issuance charges. Impairments and redemption related preferred stock issuance charges were $0.05 per share year to date 2006. No preferred stock issuance charges are projected to occur in the fourth quarter. |
| |
| (3) | | Aimco anticipates gross sales proceeds of $1,200 to $1,400 million for 2006 ($1,050 to $1,175 million related to conventional properties and $150 to $225 million related to affordable properties). Aimco share of proceeds is expected to be $875 to $1,000 million ($800 to $875 million related to conventional properties and $75 to $125 million related to affordable properties). Aimco estimates that its share of cash from these dispositions, net of mortgage debt and third-party equity interests, will be $450 to $550 million ($425 to $500 million related to conventional properties and $25 to $50 million related to affordable properties). |
| |
| (4) | | Gross acquisitions include property acquisitions and limited partnership acquisitions. |
SUPPLEMENTAL INFORMATION
| | | | | |
| Schedule 1 | | — | | Funds From Operations and Adjusted Funds From Operations |
| | | | | |
| Schedule 2a | | — | | Business Component Proportionate Income Statement Presentation, 3Q |
| | | | | |
| Schedule 2b | | — | | Business Component Proportionate Income Statement Presentation, Year-to-Date |
| | | | | |
| Schedule 3 | | — | | Business Component Proportionate Balance Sheet Presentation |
| | | | | |
| Schedule 4 | | — | | Share Data |
| | | | | |
| Schedule 5 | | — | | Selected Debt Information |
| | | | | |
| Schedule 6a | | — | | Same Store Sales (3Q 2006 v. 3Q 2005) |
| | | | | |
| Schedule 6b | | — | | Same Store Sales (3Q 2006 v. 2Q 2006) |
| | | | | |
| Schedule 6c | | — | | Same Store Sales (Year-to-Date 2006 v. 2005) |
| | | | | |
| Schedule 7 | | — | | Selected Portfolio Performance Data |
| | | | | |
| Schedule 8 | | — | | Property Sales and Acquisitions Activity |
| | | | | |
| Schedule 9 | | — | | Capital Expenditures |
| | | | | |
| Schedule 10 | | — | | Summary of Redevelopment Activity |
| | | | | |
| Schedule 11 | | — | | Apartment Unit Summary |
| | | | | |
| Special Supplement |
| | | | | |
| Glossary |
Supplemental Schedule 1
Funds From Operations and Adjusted Funds From Operations
(in thousands, except per share data) (unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
Net income (loss) attributable to common stockholders [a] | | $ | (46,531 | ) | | $ | 4,659 | | | $ | 29,543 | | | $ | (10,305 | ) |
| Adjustments: | | | | | | | | | | | | | | | | |
| Depreciation and amortization [b] | | | 126,112 | | | | 103,717 | | | | 352,624 | | | | 287,648 | |
| Depreciation and amortization related to non-real estate assets | | | (5,318 | ) | | | (4,276 | ) | | | (14,585 | ) | | | (12,591 | ) |
| Depreciation of rental property related to minority partners’ interest [c] | | | (5,543 | ) | | | (10,139 | ) | | | (19,101 | ) | | | (27,910 | ) |
| Depreciation of rental property related to minority partners’ interest — adjustment [h] | | | 18,831 | | | | — | | | | 7,377 | | | | — | |
| Depreciation of rental property related to unconsolidated entities | | | 2,130 | | | | 5,038 | | | | 3,984 | | | | 15,627 | |
| Gain on dispositions of real estate related to unconsolidated entities and other | | | (7,641 | ) | | | (8,387 | ) | | | (21,397 | ) | | | (13,670 | ) |
| Gain on dispositions of non-depreciable assets | | | 2,887 | | | | 1,657 | | | | 9,259 | | | | 2,449 | |
| Deficit distributions to minority partners [d] | | | 14,072 | | | | 2,849 | | | | 20,129 | | | | 5,719 | |
| Discontinued operations: | | | | | | | | | | | | | | | | |
| Gain on dispositions of real estate, net of minority partners’ interest [c] | | | (11,647 | ) | | | (43,758 | ) | | | (154,180 | ) | | | (80,316 | ) |
| Depreciation of rental property, net of minority partners’ interest [c] | | | (466 | ) | | | 8,337 | | | | 5,417 | | | | 33,148 | |
| Recovery of deficit distributions to minority partners [d] | | | (2,193 | ) | | | (543 | ) | | | (18,384 | ) | | | (3,904 | ) |
| Income tax arising from disposals | | | 2,211 | | | | 1,630 | | | | 30,197 | | | | 2,849 | |
| Minority interest in Aimco Operating Partnership’s share of above adjustments | | | (12,626 | ) | | | (5,615 | ) | | | (19,325 | ) | | | (21,377 | ) |
| Preferred stock dividends | | | 17,382 | | | | 21,693 | | | | 57,896 | | | | 65,132 | |
| Redemption related preferred stock issuance costs | | | 4,274 | | | | — | | | | 6,848 | | | | 1,123 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds From Operations | | $ | 95,934 | | | $ | 76,862 | | | $ | 276,302 | | | $ | 243,622 | |
| Preferred stock dividends | | | (17,382 | ) | | | (21,693 | ) | | | (57,896 | ) | | | (65,132 | ) |
| Redemption related preferred stock issuance costs | | | (4,274 | ) | | | — | | | | (6,848 | ) | | | (1,123 | ) |
| Dividends/distributions on dilutive preferred securities | | | 19 | | | | — | | | | 142 | | | | 104 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds From Operations Attributable to Common Stockholders — Diluted | | $ | 74,297 | | | $ | 55,169 | | | $ | 211,700 | | | $ | 177,471 | |
| Impairment losses (recovery of impairments losses) related to real estate [e] | | | 158 | | | | 1,178 | | | | (813 | ) | | | 1,709 | |
| (Recovery of impairment losses) impairment losses on real estate assets sold or held for sale [e] | | | (131 | ) | | | 6,208 | | | | (123 | ) | | | 8,395 | |
| Redemption related preferred stock issuance costs [f] | | | 4,274 | | | | — | | | | 6,848 | | | | 1,123 | |
| Minority interest in Aimco Operating Partnership’s share of above adjustments | | | (409 | ) | | | (753 | ) | | | (567 | ) | | | (1,149 | ) |
| Dividends/distributions on non-dilutive preferred securities | | | 42 | | | | 64 | | | | 42 | | | | 64 | |
| | | | | | | | | | | | | |
Funds From Operations Attributable to Common Stockholders - Diluted (excluding impairment losses and redemption related preferred stock issuance costs) | | $ | 78,231 | | | $ | 61,866 | | | $ | 217,087 | | | $ | 187,613 | |
| Capital Replacements | | | (22,609 | ) | | | (26,984 | ) | | | (60,134 | ) | | | (69,340 | ) |
| Minority interest in Aimco Operating Partnership’s share of Capital Replacements | | | 2,071 | | | | 2,726 | | | | 5,771 | | | | 7,095 | |
| Dividends/distributions on non-dilutive preferred securities | | | (61 | ) | | | (64 | ) | | | (184 | ) | | | (168 | ) |
| | | | | | | | | | | | | |
Adjusted Funds From Operations Attributable to Common Stockholders — Diluted | | $ | 57,632 | | | $ | 37,544 | | | $ | 162,540 | | | $ | 125,200 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds From Operations Attributable to Common Stockholders — Diluted: | | | | | | | | | | | | | | | | |
| Weighted average common shares, common share equivalents and dilutive preferred securities outstanding: | | | | | | | | | | | | | | | | |
| Common shares and equivalents [g] | | | 99,957 | | | | 95,013 | | | | 97,990 | | | | 94,377 | |
| Dilutive preferred securities | | | 27 | | | | — | | | | 71 | | | | 92 | |
| | | | | | | | | | | | | |
| | | | 99,984 | | | | 95,013 | | | | 98,061 | | | | 94,469 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds From Operations (excluding impairment losses and redemption related preferred stock issuance costs): | | | | | | | | | | | | | | | | |
| Weighted average common shares, common share equivalents and dilutive preferred securities outstanding: | | | | | | | | | | | | | | | | |
| Common shares and equivalents [g] | | | 99,957 | | | | 95,013 | | | | 97,990 | | | | 94,377 | |
| Dilutive preferred securities | | | 81 | | | | 104 | | | | 90 | | | | 96 | |
| | | | | | | | | | | | | |
| | | | 100,038 | | | | 95,117 | | | | 98,080 | | | | 94,473 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Adjusted Funds From Operations Attributable to Common Stockholders — Diluted | | | | | | | | | | | | | | | | |
| Weighted average common shares, common share equivalents and dilutive preferred securities outstanding: | | | | | | | | | | | | | | | | |
| Common shares and equivalents [g] | | | 99,957 | | | | 95,013 | | | | 97,990 | | | | 94,377 | |
| Dilutive preferred securities | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | |
| | | | 99,957 | | | | 95,013 | | | | 97,990 | | | | 94,377 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Per Share: | | | | | | | | | | | | | | | | |
| Funds From Operations — Diluted | | $ | 0.74 | | | $ | 0.58 | | | $ | 2.16 | | | $ | 1.88 | |
| Funds From Operations — Diluted (excluding impairment losses and redemption related preferred stock issuance costs) | | $ | 0.78 | | | $ | 0.65 | | | $ | 2.21 | | | $ | 1.99 | |
| Adjusted Funds From Operations — Diluted | | $ | 0.58 | | | $ | 0.40 | | | $ | 1.66 | | | $ | 1.33 | |
| Dividends paid | | $ | 0.60 | | | $ | 0.60 | | | $ | 1.80 | | | $ | 1.80 | |
Supplemental Schedule 1 (continued)
Notes to Funds From Operations and Adjusted Funds From Operations
[a] Represents Aimco’s numerator for basic earnings per common share calculated in accordance with GAAP.
[b] Includes amortization of management contracts where Aimco is the general partner. Such management contracts were established in certain instances where Aimco acquired a general partner interest in either a consolidated or an unconsolidated partnership. Because the recoverability of these management contracts depends primarily on the operations of the real estate owned by the limited partnerships, Aimco believes it is consistent with NAREIT’s April 1, 2002 White Paper to add back such amortization, as the White Paper directs the add back of amortization of assets uniquely significant to the real estate industry.
[c] “Minority partners’ interest” means minority interest in our consolidated real estate partnerships.
[d] In accordance with GAAP, deficit distributions to minority partners are charges recognized in Aimco’s income statement when cash is distributed to a non-controlling partner in a consolidated real estate partnership in excess of the positive balance in such partner’s capital account, which is classified as minority interest on the balance sheet. Aimco records these charges for GAAP purposes even though there is no economic effect or cost. Deficit distributions to minority partners occur when the fair value of the underlying real estate exceeds its depreciated net book value because the underlying real estate has appreciated or maintained its value. As a result, the recognition of expense for deficit distributions to minority partners represents, in substance, either (1) recognition of depreciation previously allocated to the non-controlling partner or (2) a payment related to the non-controlling partner’s share of real estate appreciation. Based on White Paper guidance that requires real estate depreciation and gains to be excluded from FFO, Aimco adds back deficit distributions and subtracts related recoveries in its reconciliation of net income to FFO.
[e] On October 1, 2003, NAREIT clarified its definition of FFO to include impairment losses, which previously had been added back to calculate FFO. Although Aimco’s presentation conforms with the NAREIT definition, Aimco considers such approach to be inconsistent with the treatment of gains on dispositions of real estate, which are not included in FFO. Aimco no longer adds back impairment losses when computing FFO in accordance with this clarification. As a result, FFO for the three and nine months ended September 30, 2006 includes $27,000 net impairment losses and $936,000 of net recoveries of impairment losses, respectively. FFO for the three and nine months ended September 30, 2005 includes $7.4 million and $10.1 million of net impairment losses, respectively.
[f] In accordance with the Securities and Exchange Commission’s July 31, 2003 interpretation of the Emerging Issues Task Force Topic D-42, Aimco includes redemption related preferred stock issuance costs in FFO. As a result, FFO for the three and nine months ended September 30, 2006 includes issuance costs of $4.3 million and $6.8 million, respectively. FFO for the three and nine months ended September 30, 2005 includes issuance costs of zero and $1.1 million, respectively.
[g] Represents Aimco’s denominator for earnings per common share — diluted calculated in accordance with GAAP plus additional common share equivalents that are dilutive for FFO/AFFO.
[h] Represents prior period depreciation of certain tax credit redevelopment properties that Aimco included in an adjustment to minority interest in real estate partnerships for the three months ended September 30, 2006. This prior period depreciation is added back to determine FFO in accordance with the NAREIT White Paper. See Special Supplement for additional information.
Supplemental Schedule 2(a)
| | |
| |
| Business Component Proportionate Income Statement Presentation | | (page 1 of 3) |
| Three Months Ended September 30, 2006 | | |
| (in thousands) (unaudited) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Proportionate | | | | | | | | | | | | | | | | | | | | | | |
| | | Aimco | | | Share of | | | Minority | | | Proportionate | | | | | | | | | | | | | | | Proportionate | |
| | | GAAP Income | | | Unconsolidated | | | Partners’ | | | Income | | | | | | | Aimco | | | | | | | Income | |
| | | Statement | | | Partnerships | | | Interest (6) | | | Statement | | | Conventional | | | Capital | | | Corporate | | | Statement | |
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Rental and other property revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Same Store properties (1) (2) | | $ | 310,245 | | | $ | 437 | | | $ | (51,248 | ) | | $ | 259,434 | | | $ | 259,434 | | | $ | — | | | $ | — | | | $ | 259,434 | |
| Acquisition properties (1) | | | 6,611 | | | | 760 | | | | — | | | | 7,371 | | | | 7,371 | | | | — | | | | — | | | | 7,371 | |
| Redevelopment properties (1) | | | 35,094 | | | | — | | | | (7,081 | ) | | | 28,013 | | | | 28,013 | | | | — | | | | — | | | | 28,013 | |
| Other properties (1) | | | 10,819 | | | | 1,396 | | | | (890 | ) | | | 11,325 | | | | 11,325 | | | | — | | | | — | | | | 11,325 | |
| Affordable properties (1) | | | 59,833 | | | | 4,570 | | | | (21,112 | ) | | | 43,291 | | | | — | | | | 43,291 | | | | — | | | | 43,291 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues | | | 422,602 | | | | 7,163 | | | | (80,331 | ) | | | 349,434 | | | | 306,143 | | | | 43,291 | | | | — | | | | 349,434 | |
| Property management revenues, primarily from affiliates (3) | | | 2,599 | | | | (292 | ) | | | 4,013 | | | | 6,320 | | | | 3,079 | | | | 3,241 | | | | — | | | | 6,320 | |
| Activity fees and asset management revenues, primarily from affiliates | | | 10,470 | | | | — | | | | — | | | | 10,470 | | | | 1,031 | | | | 9,439 | | | | — | | | | 10,470 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenues | | | 435,671 | | | | 6,871 | | | | (76,318 | ) | | | 366,224 | | | | 310,253 | | | | 55,971 | | | | — | | | | 366,224 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Same Store properties (2) | | | 130,706 | | | | 187 | | | | (23,043 | ) | | | 107,850 | | | | 107,850 | | | | — | | | | — | | | | 107,850 | |
| Acquisition properties | | | 2,456 | | | | 331 | | | | — | | | | 2,787 | | | | 2,787 | | | | — | | | | — | | | | 2,787 | |
| Redevelopment properties | | | 15,536 | | | | — | | | | (3,240 | ) | | | 12,296 | | | | 12,296 | | | | — | | | | — | | | | 12,296 | |
| Other properties | | | 5,852 | | | | 774 | | | | (587 | ) | | | 6,039 | | | | 6,039 | | | | — | | | | — | | | | 6,039 | |
| Affordable properties | | | 29,406 | | | | 2,400 | | | | (10,257 | ) | | | 21,549 | | | | — | | | | 21,549 | | | | — | | | | 21,549 | |
| Casualties | | | 2,507 | | | | 2 | | | | 172 | | | | 2,681 | | | | 2,676 | | | | 5 | | | | — | | | | 2,681 | |
| Property management expenses (4) | | | 8,286 | | | | — | | | | (813 | ) | | | 7,473 | | | | 7,307 | | | | 166 | | | | — | | | | 7,473 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total property operating expenses | | | 194,749 | | | | 3,694 | | | | (37,768 | ) | | | 160,675 | | | | 138,955 | | | | 21,720 | | | | — | | | | 160,675 | |
| Property management expenses (5) | | | 984 | | | | — | | | | 813 | | | | 1,797 | | | | 1,620 | | | | 177 | | | | — | | | | 1,797 | |
| Activity and asset management expenses | | | 1,073 | | | | — | | | | �� | | | | 1,073 | | | | — | | | | 1,073 | | | | — | | | | 1,073 | |
| Depreciation and amortization | | | 126,112 | | | | 2,130 | | | | (5,543 | ) | | | 122,699 | | | | 104,975 | | | | 17,724 | | | | — | | | | 122,699 | |
| General and administrative expenses | | | 25,262 | | | | 26 | | | | (1,049 | ) | | | 24,239 | | | | 6,715 | | | | 1,478 | | | | 16,046 | | | | 24,239 | |
| Other expenses (income), net | | | (30 | ) | | | (123 | ) | | | (3,173 | ) | | | (3,326 | ) | | | 6,253 | | | | (9,579 | ) | | | — | | | | (3,326 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total expenses | | | 348,150 | | | | 5,727 | | | | (46,720 | ) | | | 307,157 | | | | 258,518 | | | | 32,593 | | | | 16,046 | | | | 307,157 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 87,521 | | | | 1,144 | | | | (29,598 | ) | | | 59,067 | | | | 51,735 | | | | 23,378 | | | | (16,046 | ) | | | 59,067 | |
| Interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| General partner loan interest | | | 855 | | | | (133 | ) | | | 9,175 | | | | 9,897 | | | | 8,207 | | | | 1,690 | | | | — | | | | 9,897 | |
| Money market and interest bearing accounts | | | 5,116 | | | | 185 | | | | (958 | ) | | | 4,343 | | | | 1,577 | | | | 1,125 | | | | 1,641 | | | | 4,343 | |
| Accretion on discounted notes receivable | | | 1,609 | | | | — | | | | — | | | | 1,609 | | | | 46 | | | | 1,563 | | | | — | | | | 1,609 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest income | | | 7,580 | | | | 52 | | | | 8,217 | | | | 15,849 | | | | 9,830 | | | | 4,378 | | | | 1,641 | | | | 15,849 | |
| Recovery of losses on notes receivable | | | 46 | | | | — | | | | — | | | | 46 | | | | — | | | | 46 | | | | — | | | | 46 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property debt (primarily non-recourse) | | | (101,741 | ) | | | (1,381 | ) | | | 17,589 | | | | (85,533 | ) | | | (76,994 | ) | | | (8,539 | ) | | | — | | | | (85,533 | ) |
| Lines of credit | | | (10,399 | ) | | | — | | | | — | | | | (10,399 | ) | | | — | | | | — | | | | (10,399 | ) | | | (10,399 | ) |
| Capitalized interest | | | 6,251 | | | | 16 | | | | (265 | ) | | | 6,002 | | | | 5,708 | | | | 294 | | | | — | | | | 6,002 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | (105,889 | ) | | | (1,365 | ) | | | 17,324 | | | | (89,930 | ) | | | (71,286 | ) | | | (8,245 | ) | | | (10,399 | ) | | | (89,930 | ) |
| Deficit distributions to minority partners | | | (14,072 | ) | | | — | | | | — | | | | (14,072 | ) | | | (10,772 | ) | | | (3,300 | ) | | | — | | | | (14,072 | ) |
| Equity in losses of unconsolidated real estate partnerships | | | (169 | ) | | | 169 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Impairment losses related to real estate partnerships | | | (158 | ) | | | — | | | | — | | | | (158 | ) | | | — | | | | (158 | ) | | | — | | | | (158 | ) |
| Gain on dispositions of real estate related to unconsolidated entities and other | | | 7,641 | | | | — | | | | — | | | | 7,641 | | | | 7,506 | | | | 135 | | | | — | | | | 7,641 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before minority interests and discontinued operations | | | (17,500 | ) | | | — | | | | (4,057 | ) | | | (21,557 | ) | | | (12,987 | ) | | | 16,234 | | | | (24,804 | ) | | | (21,557 | ) |
| Minority interests: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Minority interest in consolidated real estate partnerships (6) | | | (23,611 | ) | | | — | | | | 4,057 | | | | (19,554 | ) | | | — | | | | (19,554 | ) | | | — | | | | (19,554 | ) |
| Minority interest in Aimco Operating Partnership | | | 4,763 | | | | — | | | | — | | | | 4,763 | | | | 1,247 | | | | 319 | | | | 3,197 | | | | 4,763 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total minority interests | | | (18,848 | ) | | | — | | | | 4,057 | | | | (14,791 | ) | | | 1,247 | | | | (19,235 | ) | | | 3,197 | | | | (14,791 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | (36,348 | ) | | | — | | | | — | | | | (36,348 | ) | | | (11,740 | ) | | | (3,001 | ) | | | (21,607 | ) | | | (36,348 | ) |
| Income from discontinued operations, net | | | 11,473 | | | | — | | | | — | | | | 11,473 | | | | 13,259 | | | | (1,786 | ) | | | — | | | | 11,473 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (24,875 | ) | | $ | — | | | $ | — | | | $ | (24,875 | ) | | $ | 1,519 | | | $ | (4,787 | ) | | $ | (21,607 | ) | | $ | (24,875 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
(See footnotes on page 3 of 3)
Supplemental Schedule 2(a)
| | |
| |
| Business Component Proportionate Income Statement Presentation | | (page 2 of 3) |
| Three Months Ended September 30, 2006 | | |
| (in thousands) (unaudited) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Proportionate | | | | | | | | | | | | | | | Proportionate | |
| | | Income | | | | | | | Aimco | | | | | | | Income | |
| | | Statement | | | Conventional | | | Capital | | | Corporate | | | Statement | |
Reconciliation of Net Income to FFO, AFFO and FCF: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) — see above | | $ | (24,875 | ) | | $ | 1,519 | | | $ | (4,787 | ) | | $ | (21,607 | ) | | $ | (24,875 | ) |
| Real estate depreciation and amortization | | | 122,699 | | | | 104,975 | | | | 17,724 | | | | — | | | | 122,699 | |
| Depreciation and amortization related to non-real estate assets | | | (5,318 | ) | | | (4,009 | ) | | | (1,309 | ) | | | — | | | | (5,318 | ) |
| Depreciation and amortization — ownership adjustment (7) | | | 18,831 | | | | — | | | | 18,831 | | | | — | | | | 18,831 | |
| Deficit distributions to minority partners | | | 14,072 | | | | 10,772 | | | | 3,300 | | | | — | | | | 14,072 | |
| Gain on dispositions of real estate related to unconsolidated entities and other | | | (7,641 | ) | | | (7,506 | ) | | | (135 | ) | | | — | | | | (7,641 | ) |
| Gain on dispositions of non-depreciable assets | | | 2,887 | | | | 2,887 | | | | — | | | | — | | | | 2,887 | |
| Discontinued operations | | | (12,095 | ) | | | (14,871 | ) | | | 2,776 | | | | — | | | | (12,095 | ) |
| Minority interest in Aimco Operating Partnership’s share of adjustments | | | (12,626 | ) | | | (8,729 | ) | | | (3,897 | ) | | | — | | | | (12,626 | ) |
| Preferred stock dividends | | | (17,382 | ) | | | — | | | | — | | | | (17,382 | ) | | | (17,382 | ) |
| Redemption related preferred stock issuance costs | | | (4,274 | ) | | | — | | | | — | | | | (4,274 | ) | | | (4,274 | ) |
| Dividends/distributions on dilutive preferred securities | | | 19 | | | | — | | | | — | | | | 19 | | | | 19 | |
| | | | | | | | | | | | | | | | |
FFO Attributable to Common Stockholders — Diluted | | $ | 74,297 | | | $ | 85,038 | | | $ | 32,503 | | | $ | (43,244 | ) | | $ | 74,297 | |
| | | | | | | | | | | | | | | | |
| Capital Replacements | | | (22,609 | ) | | | (20,430 | ) | | | (2,179 | ) | | | — | | | | (22,609 | ) |
| Impairment losses related to real estate partnerships | | | 158 | | | | — | | | | 158 | | | | — | | | | 158 | |
| (Recovery of impairment losses) impairment losses on real estate assets sold or held for sale | | | (131 | ) | | | 78 | | | | (209 | ) | | | — | | | | (131 | ) |
| Redemption related preferred stock issuance costs | | | 4,274 | | | | — | | | | — | | | | 4,274 | | | | 4,274 | |
| Minority interest in Aimco Operating Partnership’s share of adjustments | | | 1,662 | | | | 1,498 | | | | 164 | | | | — | | | | 1,662 | |
| Dividends/distributions on non-dilutive preferred securities | | | (19 | ) | | | — | | | | — | | | | (19 | ) | | | (19 | ) |
| | | | | | | | | | | | | | | | |
AFFO Attributable to Common Stockholders — Diluted | | $ | 57,632 | | | $ | 66,184 | | | $ | 30,437 | | | $ | (38,989 | ) | | $ | 57,632 | |
| | | | | | | | | | | | | | | | |
| Interest expense | | | 89,930 | | | | 71,287 | | | | 8,244 | | | | 10,399 | | | | 89,930 | |
| Interest expense — ownership adjustment (7) | | | 10,831 | | | | — | | | | 10,831 | | | | — | | | | 10,831 | |
| Discontinued operations | | | 1,930 | | | | 428 | | | | 108 | | | | 1,394 | | | | 1,930 | |
| Preferred stock dividends | | | 17,382 | | | | — | | | | — | | | | 17,382 | | | | 17,382 | |
| Minority interest in Aimco Operating Partnership | | | (4,763 | ) | | | (1,247 | ) | | | (319 | ) | | | (3,197 | ) | | | (4,763 | ) |
| Minority interest in Aimco Operating Partnership’s share of adjustments | | | 10,965 | | | | 7,231 | | | | 3,734 | | | | — | | | | 10,965 | |
| | | | | | | | | | | | | | | | |
Free Cash Flow (FCF, see Glossary for updated definition) | | $ | 183,907 | | | $ | 143,883 | | | $ | 53,035 | | | $ | (13,011 | ) | | $ | 183,907 | |
| | | | | | | | | | | | | | | | |
FCF Breakdown: | | | | | | | | | | | | | | | | | | | | |
| Real estate operations | | | 166,150 | | | | | | | | | | | | | | | | | |
| Real estate operations and other — ownership adjustment (7) | | | 10,110 | | | | | | | | | | | | | | | | | |
| Property management | | | 4,523 | | | | | | | | | | | | | | | | | |
| Activity and asset management | | | 9,397 | | | | | | | | | | | | | | | | | |
| Interest income | | | 15,849 | | | | | | | | | | | | | | | | | |
| Recovery of losses on notes receivable | | | 46 | | | | | | | | | | | | | | | | | |
| General and administrative expenses | | | (24,239 | ) | | | | | | | | | | | | | | | | |
| Other (expenses) income, net | | | 3,326 | | | | | | | | | | | | | | | | | |
| Discontinued operations | | | 1,176 | | | | | | | | | | | | | | | | | |
| Gain on dispositions of non-depreciable assets | | | 2,887 | | | | | | | | | | | | | | | | | |
| Depreciation and amortization related to non-real estate assets | | | (5,318 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total FCF | | $ | 183,907 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(See footnotes on page 3 of 3)
Supplemental Schedule 2(a)
| | |
| |
| Business Component Proportionate Income Statement Presentation | | (page 3 of 3) |
| Three Months Ended September 30, 2006 | | |
| (in thousands) (unaudited) | | |
| | | | | | | | | | | | | |
| | | Three Months Ended September 30, 2006 | |
| | | FFO | | | AFFO | | | FCF | |
Reconciliation of Net Income to FFO, AFFO and FCF: | | | | | | | | | | | | |
| Net income | | $ | (24,875 | ) | | $ | (24,875 | ) | | $ | (24,875 | ) |
| Interest expense | | | — | | | | — | | | | 89,930 | |
| Interest expense — ownership adjustment (7) | | | — | | | | — | | | | 10,831 | |
| Preferred stock dividends | | | (17,382 | ) | | | (17,382 | ) | | | — | |
| Redemption related preferred stock issuance costs | | | (4,274 | ) | | | — | | | | — | |
| Proportionate share of depreciation and amortization | | | 122,699 | | | | 122,699 | | | | 122,699 | |
| Depreciation and amortization related to non-real estate assets | | | (5,318 | ) | | | (5,318 | ) | | | (5,318 | ) |
| Depreciation and amortization — ownership adjustment (7) | | | 18,831 | | | | 18,831 | | | | 18,831 | |
| Gain on dispositions of real estate related to unconsolidated entities and other | | | (7,641 | ) | | | (7,641 | ) | | | (7,641 | ) |
| Gain on dispositions of non-depreciable assets | | | 2,887 | | | | 2,887 | | | | 2,887 | |
| Impairment losses related to real estate partnerships | | | — | | | | 158 | | | | 158 | |
| Discontinued operations: | | | | | | | | | | | | |
| Minority interest in Aimco Operating Partnership and interest expense, net of minority partners’ interest | | | — | | | | — | | | | 1,931 | |
| Depreciation of rental property, net of minority partners’ interest | | | (466 | ) | | | (466 | ) | | | (466 | ) |
| Gain on dispositions of real estate, net of minority partners’ interest | | | (11,647 | ) | | | (11,647 | ) | | | (11,647 | ) |
| Recovery of impairment losses on real estate assets sold or held for sale | | | — | | | | (131 | ) | | | (131 | ) |
| Recovery of deficit distributions to minority partners | | | (2,193 | ) | | | (2,193 | ) | | | (2,193 | ) |
| Income tax arising from dispositions | | | 2,211 | | | | 2,211 | | | | 2,211 | |
| Deficit distributions to minority partners | | | 14,072 | | | | 14,072 | | | | 14,072 | |
| Capital Replacements | | | — | | | | (22,609 | ) | | | (22,609 | ) |
| Dividends/distributions on dilutive preferred securities | | | 19 | | | | — | | | | — | |
| Minority interest in Aimco Operating Partnership’s share of above adjustments | | | (12,626 | ) | | | (10,964 | ) | | | — | |
| Minority interest in Aimco Operating Partnership | | | — | | | | — | | | | (4,763 | ) |
| | | | | | | | | | |
Total | | $ | 74,297 | | | $ | 57,632 | | | $ | 183,907 | |
| | | | | | | | | | |
Notes to Schedule 2(a):
(1) See definitions and descriptions in Glossary.
(2) Same store amounts in this schedule may differ from the same store amounts in Schedules 6a-6b. Any such differences are the result of (a) certain variations in the treatment of intercompany eliminations in GAAP versus non-GAAP measures and (b) the effect of changing ownership percentages over time due to Aimco’s acquisition of additional partnership interests.
(3) Property management revenues reported in Aimco’s GAAP income statement reflect fees charged to consolidated properties. Property management revenues reported in the proportionate income statement reflect the third party share of fees charged to both consolidated and unconsolidated properties.
(4) Property management expenses reported on this line in Aimco’s GAAP income statement reflect expenses related to the management of consolidated properties. Property management expenses reported on this line in the proportionate income statement reflect Aimco’s share of both consolidated and unconsolidated property management expenses.
(5) Property management expenses reported on this line in Aimco’s GAAP income statement reflect expenses related to the management of unconsolidated properties. Property management expenses reported on this line in the proportionate income statement reflect minority partners’ share of both consolidated and unconsolidated property management expenses.
(6) Minority interest in real estate partnerships as reported in the Aimco’s GAAP income statement includes $4,057,000 for the three months ended September 30, 2006 and, as discussed in the Special Supplement, a $19,554,000 adjustment related to the period April 1, 2004 through June 30, 2006. The adjustment is not allocated to individual components of revenues and expenses to ensure that the other amounts in the proportionate income statement consist only of activity for the three months ended September 30, 2006.
(7) The effects of prior period ownership adjustments (see Special Supplement) on real estate operations, depreciation and amortization, and interest expense are presented separately in the reconciliations of net income to FFO, AFFO and FCF, and in the breakdown of FCF.
Supplemental Schedule 2(b)
| | |
| |
Business Component Proportionate Income Statement Presentation | | (page 1 of 3) |
Nine Months Ended September 30, 2006 | | |
(in thousands) (unaudited) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Proportionate | | | | | | | | | | | | | | | | | | | | | | |
| | | Aimco | | | Share of | | | Minority | | | Proportionate | | | | | | | | | | | | | | | Proportionate | |
| | | GAAP Income | | | Unconsolidated | | | Partners’ | | | Income | | | | | | | Aimco | | | | | | | Income | |
| | | Statement | | | Partnerships | | | Interest (6) | | | Statement | | | Conventional | | | Capital | | | Corporate | | | Statement | |
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Rental and other property revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Same Store properties (1) (2) | | $ | 918,119 | | | $ | 1,382 | | | $ | (144,419 | ) | | $ | 775,082 | | | $ | 775,082 | | | $ | — | | | $ | — | | | $ | 775,082 | |
| Acquisition properties (1) | | | 15,965 | | | | 2,247 | | | | — | | | | 18,212 | | | | 18,212 | | | | — | | | | — | | | | 18,212 | |
| Redevelopment properties (1) | | | 102,666 | | | | — | | | | (14,292 | ) | | | 88,374 | | | | 88,374 | | | | — | | | | — | | | | 88,374 | |
| Other properties (1) | | | 30,493 | | | | 5,036 | | | | (2,713 | ) | | | 32,816 | | | | 32,816 | | | | — | | | | — | | | | 32,816 | |
| Affordable properties (1) | | | 178,436 | | | | 13,699 | | | | (63,520 | ) | | | 128,615 | | | | — | | | | 128,615 | | | | — | | | | 128,615 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues | | | 1,245,679 | | | | 22,364 | | | | (224,944 | ) | | | 1,043,099 | | | | 914,484 | | | | 128,615 | | | | — | | | | 1,043,099 | |
| Property management revenues, primarily from affiliates (3) | | | 9,221 | | | | (943 | ) | | | 11,369 | | | | 19,647 | | | | 9,623 | | | | 10,024 | | | | — | | | | 19,647 | |
| Activity fees and asset management revenues, primarily from affiliates | | | 32,143 | | | | — | | | | — | | | | 32,143 | | | | 3,743 | | | | 28,400 | | | | — | | | | 32,143 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenues | | | 1,287,043 | | | | 21,421 | | | | (213,575 | ) | | | 1,094,889 | | | | 927,850 | | | | 167,039 | | | | — | | | | 1,094,889 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Same Store properties (2) | | | 389,082 | | | | 598 | | | | (65,878 | ) | | | 323,802 | | | | 323,802 | | | | — | | | | — | | | | 323,802 | |
| Acquisition properties | | | 6,084 | | | | 781 | | | | — | | | | 6,865 | | | | 6,865 | | | | — | | | | — | | | | 6,865 | |
| Redevelopment properties | | | 46,089 | | | | — | | | | (6,979 | ) | | | 39,110 | | | | 39,110 | | | | — | | | | — | | | | 39,110 | |
| Other properties | | | 16,818 | | | | 2,504 | | | | (1,525 | ) | | | 17,797 | | | | 17,797 | | | | — | | | | — | | | | 17,797 | |
| Affordable properties | | | 90,387 | | | | 8,009 | | | | (32,510 | ) | | | 65,886 | | | | — | | | | 65,886 | | | | — | | | | 65,886 | |
| Casualties | | | (668 | ) | | | 17 | | | | 823 | | | | 172 | | | | 947 | | | | (775 | ) | | | — | | | | 172 | |
| Property management expenses (4) | | | 24,103 | | | | — | | | | (2,805 | ) | | | 21,298 | | | | 20,008 | | | | 1,290 | | | | — | | | | 21,298 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total property operating expenses | | | 571,895 | | | | 11,909 | | | | (108,874 | ) | | | 474,930 | | | | 408,529 | | | | 66,401 | | | | — | | | | 474,930 | |
| Property management expenses (5) | | | 3,627 | | | | — | | | | 2,805 | | | | 6,432 | | | | 4,434 | | | | 1,998 | | | | — | | | | 6,432 | |
| Activity and asset management expenses | | | 6,744 | | | | — | | | | — | | | | 6,744 | | | | — | | | | 6,744 | | | | — | | | | 6,744 | |
| Depreciation and amortization | | | 352,624 | | | | 7,211 | | | | (22,328 | ) | | | 337,507 | | | | 284,081 | | | | 53,426 | | | | — | | | | 337,507 | |
| General and administrative expenses | | | 72,769 | | | | 86 | | | | (3,522 | ) | | | 69,333 | | | | 22,058 | | | | 8,632 | | | | 38,643 | | | | 69,333 | |
| Other expenses (income), net | | | 9,843 | | | | 676 | | | | (6,763 | ) | | | 3,756 | | | | 10,267 | | | | (6,511 | ) | | | — | | | | 3,756 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total expenses | | | 1,017,502 | | | | 19,882 | | | | (138,682 | ) | | | 898,702 | | | | 729,369 | | | | 130,690 | | | | 38,643 | | | | 898,702 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 269,541 | | | | 1,539 | | | | (74,893 | ) | | | 196,187 | | | | 198,481 | | | | 36,349 | | | | (38,643 | ) | | | 196,187 | |
| Interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| General partner loan interest | | | 3,413 | | | | (266 | ) | | | 20,246 | | | | 23,393 | | | | 18,615 | | | | 4,778 | | | | — | | | | 23,393 | |
| Money market and interest bearing accounts | | | 15,133 | | | | 686 | | | | (2,613 | ) | | | 13,206 | | | | 4,251 | | | | 3,472 | | | | 5,483 | | | | 13,206 | |
| Accretion on discounted notes receivable | | | 1,663 | | | | — | | | | — | | | | 1,663 | | | | 89 | | | | 1,574 | | | | — | | | | 1,663 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest income | | | 20,209 | | | | 420 | | | | 17,633 | | | | 38,262 | | | | 22,955 | | | | 9,824 | | | | 5,483 | | | | 38,262 | |
| Recovery of losses on notes receivable | | | (718 | ) | | | — | | | | — | | | | (718 | ) | | | (91 | ) | | | (627 | ) | | | — | | | | (718 | ) |
| Interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property debt (primarily non-recourse) | | | (296,915 | ) | | | (4,616 | ) | | | 49,132 | | | | (252,399 | ) | | | (226,589 | ) | | | (25,810 | ) | | | — | | | | (252,399 | ) |
| Lines of credit | | | (30,700 | ) | | | — | | | | — | | | | (30,700 | ) | | | — | | | | — | | | | (30,700 | ) | | | (30,700 | ) |
| Capitalized interest | | | 18,219 | | | | 51 | | | | (905 | ) | | | 17,365 | | | | 16,196 | | | | 1,169 | | | | — | | | | 17,365 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | (309,396 | ) | | | (4,565 | ) | | | 48,227 | | | | (265,734 | ) | | | (210,393 | ) | | | (24,641 | ) | | | (30,700 | ) | | | (265,734 | ) |
| Deficit distributions to minority partners | | | (20,129 | ) | | | — | | | | — | | | | (20,129 | ) | | | (16,167 | ) | | | (3,962 | ) | | | — | | | | (20,129 | ) |
| Equity in losses of unconsolidated real estate partnerships | | | (2,606 | ) | | | 2,606 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Impairment losses related to real estate partnerships | | | 813 | | | | — | | | | — | | | | 813 | | | | 1,043 | | | | (230 | ) | | | — | | | | 813 | |
| Gain on dispositions of real estate related to unconsolidated entities and other | | | 21,397 | | | | — | | | | — | | | | 21,397 | | | | 14,859 | | | | 6,538 | | | | — | | | | 21,397 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before minority interests and discontinued operations | | | (20,889 | ) | | | — | | | | (9,033 | ) | | | (29,922 | ) | | | 10,687 | | | | 23,251 | | | | (63,860 | ) | | | (29,922 | ) |
| Minority interests: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Minority interest in consolidated real estate partnerships (6) | | | (18,063 | ) | | | — | | | | 9,033 | | | | (9,030 | ) | | | — | | | | (9,030 | ) | | | — | | | | (9,030 | ) |
| Minority interest in Aimco Operating Partnership | | | 5,181 | | | | — | | | | — | | | | 5,181 | | | | (1,081 | ) | | | (1,409 | ) | | | 7,671 | | | | 5,181 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total minority interests | | | (12,882 | ) | | | — | | | | 9,033 | | | | (3,849 | ) | | | (1,081 | ) | | | (10,439 | ) | | | 7,671 | | | | (3,849 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | (33,771 | ) | | | — | | | | — | | | | (33,771 | ) | | | 9,606 | | | | 12,812 | | | | (56,189 | ) | | | (33,771 | ) |
| Income from discontinued operations, net | | | 128,058 | | | | — | | | | — | | | | 128,058 | | | | 148,491 | | | | (20,433 | ) | | | — | | | | 128,058 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 94,287 | | | $ | — | | | $ | — | | | $ | 94,287 | | | $ | 158,097 | | | $ | (7,621 | ) | | $ | (56,189 | ) | | $ | 94,287 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
(See footnotes on page 3 of 3)
Supplemental Schedule 2(b)
| | |
| |
Business Component Proportionate Income Statement Presentation | | (page 2 of 3) |
Nine Months Ended September 30, 2006 | | |
(in thousands) (unaudited) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Proportionate | | | | | | | | | | | | | | | Proportionate | |
| | | Income | | | | | | | Aimco | | | | | | | Income | |
| | | Statement | | | Conventional | | | Capital | | | Corporate | | | Statement | |
Reconciliation of Net Income to FFO, AFFO and FCF: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) — see above | | $ | 94,287 | | | $ | 158,097 | | | $ | (7,621 | ) | | $ | (56,189 | ) | | $ | 94,287 | |
| Real estate depreciation and amortization | | | 337,507 | | | | 284,080 | | | | 53,427 | | | | — | | | | 337,507 | |
| Depreciation and amortization related to non-real estate assets | | | (14,585 | ) | | | (10,690 | ) | | | (3,895 | ) | | | — | | | | (14,585 | ) |
| Depreciation and amortization — ownership adjustment (7) | | | 7,377 | | | | — | | | | 7,377 | | | | — | | | | 7,377 | |
| Deficit distributions to minority partners | | | 20,129 | | | | 16,166 | | | | 3,963 | | | | — | | | | 20,129 | |
| Gain on dispositions of real estate related to unconsolidated entities and other | | | (21,397 | ) | | | (14,859 | ) | | | (6,538 | ) | | | — | | | | (21,397 | ) |
| Gain on dispositions of non-depreciable assets | | | 9,259 | | | | 9,261 | | | | (2 | ) | | | — | | | | 9,259 | |
| Discontinued operations | | | (136,950 | ) | | | (160,899 | ) | | | 23,949 | | | | — | | | | (136,950 | ) |
| Minority interest in Aimco Operating Partnership’s share of adjustments | | | (19,325 | ) | | | (11,782 | ) | | | (7,543 | ) | | | — | | | | (19,325 | ) |
| Preferred stock dividends | | | (57,896 | ) | | | — | | | | — | | | | (57,896 | ) | | | (57,896 | ) |
| Redemption related preferred stock issuance costs | | | (6,848 | ) | | | — | | | | — | | | | (6,848 | ) | | | (6,848 | ) |
| Dividends/distributions on dilutive preferred securities | | | 142 | | | | — | | | | — | | | | 142 | | | | 142 | |
| | | | | | | | | | | | | | | | |
FFO Attributable to Common Stockholders — Diluted | | $ | 211,700 | | | $ | 269,374 | | | $ | 63,117 | | | $ | (120,791 | ) | | $ | 211,700 | |
| | | | | | | | | | | | | | | | |
| Capital Replacements | | | (60,134 | ) | | | (54,839 | ) | | | (5,295 | ) | | | — | | | | (60,134 | ) |
| Impairment losses related to real estate partnerships | | | (813 | ) | | | (1,043 | ) | | | 230 | | | | — | | | | (813 | ) |
| (Recovery of impairment losses) impairment losses on real estate assets sold or held for sale | | | (123 | ) | | | 495 | | | | (618 | ) | | | — | | | | (123 | ) |
| Redemption related preferred stock issuance costs | | | 6,848 | | | | — | | | | — | | | | 6,848 | | | | 6,848 | |
| Minority interest in Aimco Operating Partnership’s share of adjustments | | | 5,204 | | | | 4,718 | | | | 486 | | | | — | | | | 5,204 | |
| Dividends/distributions on non-dilutive preferred securities | | | (142 | ) | | | — | | | | — | | | | (142 | ) | | | (142 | ) |
| | | | | | | | | | | | | | | | |
AFFO Attributable to Common Stockholders — Diluted | | $ | 162,540 | | | $ | 218,705 | | | $ | 57,920 | | | $ | (114,085 | ) | | $ | 162,540 | |
| | | | | | | | | | | | | | | | |
| Interest expense | | | 265,734 | | | | 210,393 | | | | 24,641 | | | | 30,700 | | | | 265,734 | |
| Interest expense — ownership adjustment (7) | | | 7,171 | | | | — | | | | 7,171 | | | | — | | | | 7,171 | |
| Discontinued operations | | | 19,366 | | | | 4,736 | | | | 918 | | | | 13,712 | | | | 19,366 | |
| Preferred stock dividends | | | 57,896 | | | | — | | | | — | | | | 57,896 | | | | 57,896 | |
| Minority interest in Aimco Operating Partnership | | | (5,181 | ) | | | 1,081 | | | | 1,409 | | | | (7,671 | ) | | | (5,181 | ) |
| Minority interest in Aimco Operating Partnership’s share of adjustments | | | 14,121 | | | | 7,065 | | | | 7,056 | | | | — | | | | 14,121 | |
| | | | | | | | | | | | | | | | |
Free Cash Flow (FCF, see Glossary for updated definition) | | $ | 521,647 | | | $ | 441,980 | | | $ | 99,115 | | | $ | (19,448 | ) | | $ | 521,647 | |
| | | | | | | | | | | | | | | | |
FCF Breakdown: | | | | | | | | | | | | | | | | | | | | |
| Real estate operations | | | 508,035 | | | | | | | | | | | | | | | | | |
| Real estate operations and other — ownership adjustment (7) | | | 5,518 | | | | | | | | | | | | | | | | | |
| Property management | | | 13,214 | | | | | | | | | | | | | | | | | |
| Activity and asset management | | | 25,399 | | | | | | | | | | | | | | | | | |
| Interest income | | | 38,262 | | | | | | | | | | | | | | | | | |
| Recovery of losses on notes receivable | | | (718 | ) | | | | | | | | | | | | | | | | |
| General and administrative expenses | | | (69,333 | ) | | | | | | | | | | | | | | | | |
| Other (expenses) income, net | | | (3,755 | ) | | | | | | | | | | | | | | | | |
| Discontinued operations | | | 10,351 | | | | | | | | | | | | | | | | | |
| Gain on dispositions of non-depreciable assets | | | 9,259 | | | | | | | | | | | | | | | | | |
| Depreciation and amortization related to non-real estate assets | | | (14,585 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total FCF | | $ | 521,647 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| |
(See footnotes on page 3 of 3) |
Supplemental Schedule 2(b)
| | |
| |
Business Component Proportionate Income Statement Presentation | | (page 3 of 3) |
Nine Months Ended September 30, 2006 | | |
(in thousands) (unaudited) | | |
| | | | | | | | | | | | | |
| | | Nine Months Ended September 30, 2006 | |
| | | FFO | | | AFFO | | | FCF | |
Reconciliation of Net Income to FFO, AFFO and FCF: | | | | | | | | | | | | |
| Net income | | $ | 94,287 | | | $ | 94,287 | | | $ | 94,287 | |
| Interest expense | | | — | | | | — | | | | 265,734 | |
| Interest expense — ownership adjustment (7) | | | — | | | | — | | | | 7,171 | |
| Preferred stock dividends | | | (57,896 | ) | | | (57,896 | ) | | | — | |
| Redemption related preferred stock issuance costs | | | (6,848 | ) | | | — | | | | — | |
| Proportionate share of depreciation and amortization | | | 337,507 | | | | 337,507 | | | | 337,507 | |
| Depreciation and amortization related to non-real estate assets | | | (14,585 | ) | | | (14,585 | ) | | | (14,585 | ) |
| Depreciation and amortization — ownership adjustment (7) | | | 7,377 | | | | 7,377 | | | | 7,377 | |
| Gain on dispositions of real estate related to unconsolidated entities and other | | | (21,397 | ) | | | (21,397 | ) | | | (21,397 | ) |
| Gain on dispositions of non-depreciable assets | | | 9,259 | | | | 9,259 | | | | 9,259 | |
| Impairment losses related to real estate partnerships | | | — | | | | (813 | ) | | | (813 | ) |
| Discontinued operations: | | | | | | | | | | | | |
| Minority interest in Aimco Operating Partnership and interest expense, net of minority partners’ interest | | | — | | | | — | | | | 19,366 | |
| Depreciation of rental property, net of minority partners’ interest | | | 5,417 | | | | 5,417 | | | | 5,417 | |
| Gain on dispositions of real estate, net of minority partners’ interest | | | (154,180 | ) | | | (154,180 | ) | | | (154,180 | ) |
| Recovery of impairment losses on real estate assets sold or held for sale | | | — | | | | (123 | ) | | | (123 | ) |
| Recovery of deficit distributions to minority partners | | | (18,384 | ) | | | (18,384 | ) | | | (18,384 | ) |
| Income tax arising from dispositions | | | 30,197 | | | | 30,197 | | | | 30,197 | |
| Deficit distributions to minority partners | | | 20,129 | | | | 20,129 | | | | 20,129 | |
| Capital Replacements | | | — | | | | (60,134 | ) | | | (60,134 | ) |
| Dividends/distributions on dilutive preferred securities | | | 142 | | | | — | | | | — | |
| Minority interest in Aimco Operating Partnership’s share of above adjustments | | | (19,325 | ) | | | (14,121 | ) | | | — | |
| Minority interest in Aimco Operating Partnership | | | — | | | | — | | | | (5,181 | ) |
| | | | | | | | | | |
Total | | $ | 211,700 | | | $ | 162,540 | | | $ | 521,647 | |
| | | | | | | | | | |
Notes to Schedule 2(b):
| | |
| (1) | | See definitions and descriptions in Glossary. |
| |
| (2) | | Same store amounts in this schedule may differ from the same store amounts in Schedule 6c. Any such differences are the result of (a) certain variations in the treatment of intercompany eliminations in GAAP versus non-GAAP measures and (b) the effect of changing ownership percentages over time due to Aimco’s acquisition of additional partnership interests. |
| |
| (3) | | Property management revenues reported in Aimco’s GAAP income statement reflect fees charged to consolidated properties. Property management revenues reported in the proportionate income statement reflect the third party share of fees charged to both consolidated and unconsolidated properties. |
| |
| (4) | | Property management expenses reported on this line in Aimco’s GAAP income statement reflect expenses related to the management of consolidated properties. Property management expenses reported on this line in the proportionate income statement reflect Aimco’s share of both consolidated and unconsolidated property management expenses. |
| |
| (5) | | Property management expenses reported on this line in Aimco’s GAAP income statement reflect expenses related to the management of unconsolidated properties. Property management expenses reported on this line in the proportionate income statement reflect minority partners’ share of both consolidated and unconsolidated property management expenses. |
| |
| (6) | | Minority interest in real estate partnerships as reported in the Aimco’s GAAP income statement includes $9,033,000 for the nine months ended September 30, 2006 and, as discussed in the Special Supplement, a $9,030,000 adjustment related to the period April 1, 2004 through December 31, 2005. The adjustment is not allocated to individual components of revenues and expenses to ensure that the other amounts in the proportionate income statement consist only of activity for the nine months ended September 30, 2006. |
| |
| (7) | | The effects of prior period ownership adjustments (see Special Supplement) on real estate operations, depreciation and amortization, and interest expense are presented separately in the reconciliations of net income to FFO, AFFO and FCF, and in the breakdown of FCF. |
Supplemental Schedule 3
Business Component Proportionate Balance Sheet Presentation
As of September 30, 2006
(in thousands) (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Consolidated | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | GAAP | | | | | | | Proportionate | | | | | | | | | | | | | | | | | | | | | | |
| | | Balance Sheet | | | | | | | Share of | | | Minority | | | Proportionate | | | | | | | | | | | | | | | Proportionate | |
| | | as of | | | | | | | Unconsolidated | | | Partners’ | | | Balance | | | | | | | Aimco | | | | | | | Balance | |
| | | September 30, 2006 | | | | | | | Partnerships [a] | | | Interest [b][e] | | | Sheet [c][e] | | | Conventional | | | Capital [e] | | | Corporate | | | Sheet[c][e] | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Buildings and improvements | | $ | 9,690,408 | | | | | | | $ | 99,154 | | | $ | (1,624,223 | ) | | $ | 8,165,339 | | | $ | 7,268,001 | | | $ | 897,338 | | | $ | — | | | $ | 8,165,339 | |
| Land | | | 2,340,744 | | | | | | | | 20,741 | | | | (130,009 | ) | | | 2,231,476 | | | | 2,126,333 | | | | 105,143 | | | | — | | | | 2,231,476 | |
| Accumulated depreciation | | | (2,894,820 | ) | | | | | | | (35,938 | ) | | | 996,981 | | | | (1,933,777 | ) | | | (1,735,244 | ) | | | (198,533 | ) | | | — | | | | (1,933,777 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NET REAL ESTATE | | | 9,136,332 | | | | | | | | 83,957 | | | | (757,251 | ) | | | 8,463,038 | | | | 7,659,090 | | | | 803,948 | | | | — | | | | 8,463,038 | |
| Cash and cash equivalents | | | 182,283 | | | | | | | | 3,537 | | | | (47,198 | ) | | | 138,622 | | | | 79,653 | | | | 58,969 | | | | — | | | | 138,622 | |
| Restricted cash | | | 348,320 | | | | | | | | 6,235 | | | | (75,089 | ) | | | 279,466 | | | | 166,619 | | | | 112,847 | | | | — | | | | 279,466 | |
| Accounts receivable | | | 56,569 | | | | | | | | 986 | | | | — | | | | 57,555 | | | | 35,521 | | | | 22,034 | | | | — | | | | 57,555 | |
| Accounts receivable from affiliates | | | 24,534 | | | | | | | | — | | | | — | | | | 24,534 | | | | 11,839 | | | | 12,695 | | | | — | | | | 24,534 | |
| Deferred financing costs | | | 75,173 | | | | | | | | — | | | | — | | | | 75,173 | | | | 58,501 | | | | 16,672 | | | | — | | | | 75,173 | |
| Notes receivable from unconsolidated real estate partnerships | | | 46,937 | | | | | | | | — | | | | — | | | | 46,937 | | | | 7,177 | | | | 39,760 | | | | — | | | | 46,937 | |
| Notes receivable from non-affiliates | | | 52,124 | | | | | | | | — | | | | — | | | | 52,124 | | | | 17,332 | | | | 34,792 | | | | — | | | | 52,124 | |
| Investment in unconsolidated real estate partnerships | | | 54,671 | | | | | | | | (4,124 | ) | | | — | | | | 50,547 | | | | 14,606 | | | | 35,941 | | | | — | | | | 50,547 | |
| Other assets | | | 233,259 | | [d] | | | | | | 15,228 | | | | — | | | | 248,487 | | | | 121,006 | | | | 127,481 | | | | — | | | | 248,487 | |
| Assets held for sale | | | 11,163 | | | | | | | | — | | | | — | | | | 11,163 | | | | 11,039 | | | | 124 | | | | — | | | | 11,163 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL ASSETS | | $ | 10,221,365 | | | | | | | $ | 105,819 | | | $ | (879,538 | ) | | $ | 9,447,646 | | | $ | 8,182,383 | | | $ | 1,265,263 | | | $ | — | | | $ | 9,447,646 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property tax-exempt bond financing | | $ | 1,036,582 | | | | | | | $ | 151 | | | $ | (27,087 | ) | | $ | 1,009,646 | | | $ | 945,423 | | | $ | 64,223 | | | $ | — | | | $ | 1,009,646 | |
| Property loans payable | | | 5,197,393 | | | | | | | | 91,920 | | | | (931,302 | ) | | | 4,358,011 | | | | 3,843,628 | | | | 514,385 | | | | — | | | | 4,358,013 | |
| Term loans | | | 400,000 | | | | | | | | — | | | | — | | | | 400,000 | | | | — | | | | — | | | | 400,000 | | | | 400,000 | |
| Credit facility | | | 155,000 | | | | | | | | — | | | | — | | | | 155,000 | | | | — | | | | — | | | | 155,000 | | | | 155,000 | |
| | | | | | | | | | | | | | | |
| TOTAL INDEBTEDNESS | | | 6,788,975 | | | | | | | | 92,071 | | | | (958,389 | ) | | | 5,922,657 | | | | 4,789,051 | | | | 578,608 | | | | 555,000 | | | | 5,922,659 | |
| Accounts payable | | | 39,280 | | | | | | | | 13,748 | | | | — | | | | 53,028 | | | | 35,534 | | | | 17,493 | | | | — | | | | 53,027 | |
| Accrued liabilities and other | | | 406,306 | | | | | | | | — | | | | — | | | | 406,306 | | | | 333,376 | | | | 72,930 | | | | — | | | | 406,306 | |
| Deferred income | | | 158,156 | | | | | | | | — | | | | — | | | | 158,156 | | | | 92,614 | | | | 65,542 | | | | — | | | | 158,156 | |
| Security deposits | | | 44,623 | | | | | | | | — | | | | — | | | | 44,623 | | | | 38,826 | | | | 5,797 | | | | — | | | | 44,623 | |
| Deferred income tax liability, net | | | 3,934 | | | | | | | | — | | | | — | | | | 3,934 | | | | 3,934 | | | | — | | | | — | | | | 3,934 | |
| Liabilities related to assets held for sale | | | 958 | | | | | | | | — | | | | — | | | | 958 | | | | 946 | | | | 12 | | | | — | | | | 958 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL LIABILITIES | | | 7,442,232 | | | | | | | | 105,819 | | | | (958,389 | ) | | | 6,589,662 | | | | 5,294,281 | | | | 740,382 | | | | 555,000 | | | | 6,589,663 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Minority interest in consolidated real estate partnerships | | | 215,099 | | | | | | | | — | | | | 78,851 | | | | 293,950 | | | | 259,599 | | | | 34,350 | | | | — | | | | 293,949 | |
| Minority interest in Aimco Operating Partnership | | | 190,634 | | | | | | | | — | | | | — | | | | 190,634 | | | | — | | | | — | | | | 190,634 | | | | 190,634 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NET OPERATING ASSETS | | | | | | | | | | $ | — | | | $ | — | | | $ | 2,373,400 | | | $ | 2,628,503 | | | $ | 490,531 | | | $ | (745,634 | ) | | $ | 2,373,400 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Common Stock | | | 959 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Additional paid-in capital | | | 3,063,361 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Perpetual preferred stock | | | 723,500 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Convertible preferred stock | | | 100,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions in excess of earnings | | | (1,509,391 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notes due on common stock purchases | | | (5,029 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL STOCKHOLDERS’ EQUITY | | | 2,373,400 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 10,221,365 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| [a] | | Total of Aimco’s proportionate share of selected unconsolidated balance sheet data. |
| |
| [b] | | Total of minority partners’ share of selected balance sheet data. Additionally, Aimco has notes receivable from consolidated partnerships which are eliminated in the GAAP balance sheet. The minority partners’ share of amounts payable to Aimco pursuant to those notes is $171.2 million. |
| |
| [c] | | Aimco’s proportionate consolidated balance sheet, which includes the GAAP balance sheet as of September 30, 2006, plus Aimco’s proportionate share of selected unconsolidated balance sheet data and less minority partners’ share of selected balance sheet data. |
| |
| [d] | | Other assets includes $81.9 million related to goodwill and $10.6 million related to investment in management contracts. |
| |
| [e] | | As discussed in the Special Supplement, Aimco’s ownership of certain tax credit redevelopment properties was adjusted to 100% in the third quarter of 2006. |
Supplemental Schedule 4
Share Data
As of September 30, 2006
(in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Shares/Units | | | Current Quarter | | | Current Quarter | | | Current Quarter | |
| | | | | | | | | | | | | | | Outstanding | | | Weighted Average | | | Weighted Average | | | Weighted Average | |
| | | Redemption | | | | | | | | | | | As of September 30, | | | Outstanding Shares | | | Outstanding Shares | | | Outstanding Shares | |
| | | Date (1) | | | Coupon | | | Amount | | | 2006 | | | (EPS) | | | (FFO) | | | (AFFO) | |
| Class A Common Stock | | | | | | | | | | | | | | | 95,910 | | | | 96,061 | (2) | | | 96,061 | (2) | | | 96,061 | (2) |
| Common Partnership Units and equivalents | | | | | | | | | | | | | | | 10,175 | (7) | | | — | | | | — | | | | — | |
| Other dilutive common stock equivalents | | | | | | | | | | | | | | | — | | | | — | | | | 3,896 | (8) | | | 3,896 | (8) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | | | | | | | | | | | 106,085 | | | | 96,061 | | | | 99,957 | | | | 99,957 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Perpetual Preferred Stock (3): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class G | | | 7/15/2008 | | | | 9.375 | % | | $ | 101,250 | | | | 4,050 | | | | — | | | | — | | | | — | |
| Class T | | | 7/31/2008 | | | | 8.00 | % | | | 150,000 | | | | 6,000 | | | | — | | | | — | | | | — | |
| Class U | | | 3/24/2009 | | | | 7.75 | % | | | 200,000 | | | | 8,000 | | | | — | | | | — | | | | — | |
| Class V | | | 9/29/2009 | | | | 8.00 | % | | | 86,250 | | | | 3,450 | | | | — | | | | — | | | | — | |
| Class Y | | | 12/21/2009 | | | | 7.875 | % | | | 86,250 | | | | 3,450 | | | | — | | | | — | | | | — | |
| Series A Community Reinvestment Act | | | 6/30/2011 | | | | 6.750 | % | | | 100,000 | | | | — | (5) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total perpetual preferred stock | | | | | | | | | | | 723,750 | | | | 24,950 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
Convertible Preferred Stock: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class W (4) | | | 9/30/2007 | | | | 8.10 | % | | | 100,000 | | | | 1,905 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total convertible preferred stock | | | | | | | | | | | 100,000 | | | | 1,905 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Preferred Partnership Units (6) | | | | | | | 8.05 | % | | | 89,486 | | | | 3,268 | | | | — | | | | 27 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Total preferred securities | | | | | | | | | | $ | 913,236 | | | | 30,123 | | | | — | | | | 27 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total common, common equivalents and dilutive securities | | | | | | | | | | | | | | | | | | | 96,061 | | | | 99,984 | | | | 99,957 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | The redemption date is the date the securities are first eligible for redemption by Aimco. |
| |
| (2) | | Includes a deduction of 1,015,000 for non-recourse shares and unvested restricted stock. |
| |
| (3) | | Preferred stock amounts are shown gross of any eliminations necessary for the GAAP Consolidated Balance Sheet. |
| |
| (4) | | Conversion ratio for Class W is 1.0 to 1.0. |
| |
| (5) | | Represents 200 shares at a liquidation preference per share of $500,000. The dividend rate is a variable rate per annum equal to the Three-Month LIBOR Rate plus 1.25%, calculated as of the beginning of each quarterly dividend period. |
| |
| (6) | | Coupon is based on a weighted average. |
| |
| (7) | | Consists of 7,796,000 Common Partnership Units and 2,379,000 Class I High Performance Partnership Units. |
| |
| (8) | | Other dilutive common stock equivalents includes 2,456,000 for the potential dilutive effects of stock options, unvested restricted stock and non-recourse shares and 1,440,000 for the number of equivalent common OP units that would be issued if the applicable measurement periods for
Class VIII and IX HPUs, which end on December 31, 2007 and 2008, respectively, had ended on September 30, 2006. |
Supplemental Schedule 5
Selected Debt Structure and Maturity Data
As of September 30, 2006
(dollars in thousands)
(unaudited)
I. Debt Balances and Data
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Weighted | | |
| | | | | | | Proportionate | | | | | | | | | | Average | | |
| | | | | | | Share of | | Minority | | Total Aimco | | Maturity | | Weighted |
| Debt | | Consolidated | | Unconsolidated | | Interest | | Share | | (years) | | Average Rate |
| |
Property Debt (primarily non-recourse): | | | | | | | | | | | | | | | | | | | | | | | | |
Conventional Portfolio: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed rate loans payable | | $ | 3,979,684 | | | $ | 43,187 | | | $ | (635,289 | ) | | $ | 3,387,583 | | | | 10.6 | | | | 6.48 | % |
| Floating rate loans payable | | | 510,651 | | | | — | | | | (54,606 | ) | | | 456,045 | | | | 2.2 | | | | 6.52 | % |
| | | |
Total property loans payable: | | | 4,490,336 | | | | 43,187 | | | | (689,895 | ) | | | 3,843,628 | | | | 9.6 | | | | 6.48 | % |
| Fixed rate tax-exempt bonds | | | 234,651 | | | | — | | | | (9,771 | ) | | | 224,880 | | | | 17.0 | | | | 5.96 | % |
| Floating rate tax-exempt bonds | | | 725,961 | | | | — | | | | (5,418 | ) | | | 720,543 | | | | 11.1 | | | | 4.07 | % |
| | | |
Total property tax-exempt bond financing: | | | 960,612 | | | | — | | | | (15,189 | ) | | | 945,423 | | | | 12.5 | | | | 4.52 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Property Debt on Conventional Portfolio | | | 5,450,947 | | | | 43,187 | | | | (705,084 | ) | | | 4,789,051 | | | | 10.2 | | | | 6.10 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Affordable Portfolio: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed rate loans payable | | | 693,269 | | | | 40,619 | | | | (241,406 | ) | | | 492,482 | | | | 17.8 | | | | 5.60 | % |
| Floating rate loans payable | | | 13,788 | | | | 8,114 | | | | — | | | | 21,903 | | | | 4.2 | | | | 5.65 | % |
| | | |
Total property loans payable: | | | 707,057 | | | | 48,733 | | | | (241,406 | ) | | | 514,385 | | | | 17.3 | | | | 5.61 | % |
| Fixed rate tax-exempt bonds | | | 75,971 | | | | 151 | | | | (11,898 | ) | | | 64,223 | | | | 28.8 | | | | 5.07 | % |
| Floating rate tax-exempt bonds | | | — | | | | — | | | | — | | | | — | | | | — | | | | | |
| | | |
Total property tax-exempt bond financing: | | | 75,971 | | | | 151 | | | | (11,898 | ) | | | 64,223 | | | | 28.8 | | | | 5.07 | % |
| | | |
Total Property Debt on Affordable Portfolio | | | 783,028 | | | | 48,884 | | | | (253,304 | ) | | | 578,608 | | | | 18.5 | | | | 5.55 | % |
| | | |
Total Property Debt(1) | | $ | 6,233,975 | | | $ | 92,071 | | | $ | (958,387 | ) | | $ | 5,367,659 | | | | 11.1 | | | | 6.04 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Debt: | | | | | | | | | | | | | | | | | | | | | | | | |
| Term Loan | | $ | 400,000 | | | $ | — | | | $ | — | | | $ | 400,000 | | | | — | | | | 7.01 | % |
| Credit Facility | | | 155,000 | | | | — | | | | — | | | | 155,000 | | | | — | | | | 6.70 | % |
| | | |
Total Corporate Debt | | $ | 555,000 | | | $ | — | | | $ | — | | | $ | 555,000 | | | | — | | | | 6.93 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Debt | | $ | 6,788,975 | | | $ | 92,071 | | | $ | (958,387 | ) | | $ | 5,922,659 | | | | — | | | | 6.13 | % |
| | | |
| | |
| (1) | | The total consolidated property debt shown above excludes $.9 million of consolidated property debt, with a weighted average interest rate of 7.64%, classified as liabilities related to assets held for sale on Aimco’s consolidated balance sheet. |
II. Debt Maturities
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Percent | | Average |
| Consolidated Property Debt | | Amortization | | Maturities | | Total | | of Total | | Rate |
| | | |
| Q4 2006 | | $ | 32,685 | | | $ | 223,239 | | | $ | 255,925 | | | | 4.1 | % | | | 6.14 | % |
| Q1 2007 | | | 35,141 | | | | 21,373 | | | | 56,513 | | | | 0.9 | % | | | 6.60 | % |
| Q2 2007 | | | 35,750 | | | | 15,294 | | | | 51,044 | | | | 0.8 | % | | | 4.86 | % |
| Q3 2007 | | | 35,937 | | | | 127,384 | | | | 163,321 | | | | 2.6 | % | | | 6.31 | % |
| Q4 2007 | | | 36,804 | | | | 118,803 | | | | 155,606 | | | | 2.5 | % | | | 6.91 | % |
| Q1 2008 | | | 34,470 | | | | 129,102 | | | | 163,572 | | | | 2.6 | % | | | 8.00 | % |
| Q2 2008 | | | 34,650 | | | | 68,280 | | | | 102,930 | | | | 1.7 | % | | | 6.03 | % |
| Q3 2008 | | | 34,675 | | | | 73,713 | | | | 108,389 | | | | 1.7 | % | | | 5.70 | % |
| Q4 2008 | | | 34,968 | | | | 113,195 | | | | 148,163 | | | | 2.4 | % | | | 5.72 | % |
| 2009 | | | 143,129 | | | | 386,156 | | | | 529,285 | | | | 8.5 | % | | | 5.31 | % |
| 2010 | | | 148,447 | | | | 187,589 | | | | 336,036 | | | | 5.4 | % | | | 6.32 | % |
| Thereafter | | | | | | | | | | | 4,163,191 | | | | 66.8 | % | | | | |
| |
Total Property Debt: | | | | | | | | | | $ | 6,233,975 | | | | 100.0 | % | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Percent | | Average |
| Corporate Debt | | Amortization | | Maturities | | Total | | of Total | | Rate |
| | | |
| 2011 | | $ | — | | | $ | 400,000 | | | $ | 400,000 | | | | 72.1 | % | | | 7.01 | % |
| 2009 | | $ | — | | | $ | 155,000 | | | $ | 155,000 | | | | 27.9 | % | | | 6.70 | % |
| |
Total Corporate Debt: | | $ | — | | | $ | 555,000 | | | $ | 555,000 | | | | 100.0 | % | | | 6.93 | % |
| |
Supplemental Schedule 5 (continued)
Selected Debt Structure and Maturity Data
As of September 30, 2006
(in millions)
(unaudited)
III. Loan Closings
THIRD QUARTER LOAN CLOSINGS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Original | | New | | Aimco | | Aimco | | Aimco | | | | |
| | | Loan | | Loan | | Share | | Share | | Net | | Prior | | New |
| Property Loan Type (all non-recourse) | | Amount | | Amount | | Original Loan | | New Loan | | Proceeds (1) | | Rate | | Rate |
| |
| Refinancings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Rate | | $ | 78.3 | | | $ | 172.4 | | | $ | 68.8 | | | $ | 147.3 | | | $ | 76.3 | | | | 7.27 | % | | | 5.83 | % |
| Affordable, Mark-to-Market and Other | | | — | | | | 18.2 | | | | — | | | | 16.4 | | | | 10.8 | | | | — | | | | 6.40 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans Relating to Acquisitions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Rate | | | — | | | | 24.0 | | | | — | | | | 24.0 | | | | 23.7 | | | | — | | | | 6.05 | % |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Totals | | $ | 78.3 | | | $ | 214.6 | | | $ | 68.8 | | | $ | 187.7 | | | $ | 110.8 | | | | 7.27 | % | | | 5.91 | % |
| |
YEAR-TO-DATE LOAN CLOSINGS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Original | | New | | Aimco | | Aimco | | Aimco | | | | |
| | | Loan | | Loan | | Share | | Share | | Net | | Prior | | New |
| Property Loan Type (all non-recourse) | | Amount | | Amount | | Original Loan | | New Loan | | Proceeds (1) | | Rate | | Rate |
| |
| Refinancings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Rate | | $ | 335.4 | | | $ | 710.9 | | | $ | 318.3 | | | $ | 666.2 | | | $ | 340.4 | | | | 6.24 | % | | | 5.69 | % |
| Floating Rate | | | 45.2 | | | | 108.6 | | | | 40.3 | | | | 105.9 | | | | 64.6 | | | | 7.93 | % | | | 5.53 | % |
| Affordable, Mark-to-Market and Other | | | 5.7 | | | | 38.6 | | | | 3.6 | | | | 30.4 | | | | 22.3 | | | | 6.52 | % | | | 5.71 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans Relating to Acquisitions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Rate | | | — | | | | 34.3 | | | | — | | | | 27.4 | | | | 27.1 | | | | — | | | | 4.87 | % |
| |
Totals | | $ | 386.3 | | | $ | 892.4 | | | $ | 362.2 | | | $ | 829.9 | | | $ | 454.4 | | | | 6.44 | % | | | 5.66 | % |
| |
| | |
| (1) | | Aimco net proceeds is after transaction costs and any release of escrow funds. |
IV. Capitalization
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | March 31,2006 | | June 30, 2006 | | September 30, 2006 |
| | | Amount | | Percent | | Amount | | Percent | | Amount | | Percent |
| |
| Corporate debt | | $ | 442 | | | | 4 | % | | $ | 400 | | | | 4 | % | | $ | 555 | | | | 5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Property debt (Aimco’s share) | | | 5,188 | | | | 46 | % | | | 5,222 | | | | 43 | % | | | 5,368 | | | | 44 | % |
| |
Total Debt | | | 5,630 | | | | 50 | % | | | 5,622 | | | | 47 | % | | | 5,923 | | | | 49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Less: Cash and restricted cash | | | (406 | ) | | | -4 | % | | | (492 | ) | | | -5 | % | | | (418 | ) | | | -3 | % |
| |
Net Debt | | | 5,224 | | | | 46 | % | | | 5,130 | | | | 47 | % | | | 5,505 | | | | 45 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred equity | | | 987 | | | | 9 | % | | | 1,087 | | | | 10 | % | | | 913 | | | | 7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Common equity at market (1) | | | 5,041 | | | | 45 | % | | | 4,668 | | | | 43 | % | | | 5,772 | | | | 47 | % |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capitalization | | $ | 11,252 | | | | 100 | % | | $ | 10,885 | | | | 100 | % | | $ | 12,190 | | | | 100 | % |
| |
| | |
| (1) | | Common equity at market at September 30, 2006 was calculated using 106.085 million shares of Class A Common Stock and common partnership units outstanding multiplied by the closing price of $54.41 per share/unit on September 30, 2006. |
V. Credit Ratings
| | | | | | | |
| | | Moody’s Investor Service | | Senior Unsecured Shelf | | (P) Ba1 (stable outlook) |
| | | Standard and Poor’s | | Corporate Credit Rating | | BB+ (stable outlook) |
| | | Fitch | | Bank Credit Facility | | BBB- (stable outlook) |
Supplemental Schedule 6(a)
Same Store Sales
Third Quarter 2006 Compared to Third Quarter 2005
(unaudited) (in thousands, except site and unit data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | Three Months Ended | | | | | | Change |
| | | | | | | | | | | | | | | September 30, 2006 | | September 30, 2005 | | Revenue | | Expenses | | NOI |
| | | Sites | | Units | | Ownership | | Revenue | | Expenses | | NOI | | Occ % | | Revenue | | Expenses | | NOI | | Occ % | | Amount | | Percent | | Amount | | Percent | | Amount | | Percent |
| | | | | | | | | | | |
California | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Bay Area & Sacramento | | | 5 | | | | 1,291 | | | | 44 | % | | $ | 1,836 | | | $ | 703 | | | $ | 1,134 | | | | | | | $ | 1,700 | | | $ | 699 | | | $ | 1,001 | | | | | | | $ | 137 | | | | 8.0 | % | | $ | 4 | | | | 0.5 | % | | $ | 133 | | | | 13.3 | % |
| Los Angeles-Long Beach — Ventura | | | 12 | | | | 2,638 | | | | 88 | % | | | 13,311 | | | | 4,232 | | | | 9,078 | | | | | | | | 12,077 | | | | 3,996 | | | | 8,081 | | | | | | | | 1,234 | | | | 10.2 | % | | | 237 | | | | 5.9 | % | | | 997 | | | | 12.3 | % |
| Orange County — Riverside | | | 7 | | | | 1,651 | | | | 82 | % | | | 5,518 | | | | 1,747 | | | | 3,771 | | | | | | | | 5,244 | | | | 1,632 | | | | 3,612 | | | | | | | | 274 | | | | 5.2 | % | | | 115 | | | | 7.0 | % | | | 159 | | | | 4.4 | % |
| San Diego | | | 5 | | | | 1,719 | | | | 92 | % | | | 5,352 | | | | 1,679 | | | | 3,674 | | | | | | | | 5,214 | | | | 1,615 | | | | 3,599 | | | | | | | | 138 | | | | 2.6 | % | | | 64 | | | | 3.9 | % | | | 74 | | | | 2.1 | % |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 29 | | | | 7,299 | | | | 79.9 | % | | | 26,017 | | | | 8,360 | | | | 17,657 | | | | 96.3 | % | | | 24,235 | | | | 7,942 | | | | 16,293 | | | | 96.0 | % | | | 1,783 | | | | 7.4 | % | | | 419 | | | | 5.3 | % | | | 1,364 | | | | 8.4 | % |
Florida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jacksonville | | | 2 | | | | 592 | | | | 100 | % | | | 1,340 | | | | 556 | | | | 783 | | | | | | | | 1,307 | | | | 450 | | | | 857 | | | | | | | | 33 | | | | 2.5 | % | | | 106 | | | | 23.7 | % | | | (74 | ) | | | -8.6 | % |
| Miami/Fort Lauderdale | | | 10 | | | | 3,225 | | | | 84 | % | | | 10,155 | | | | 4,152 | | | | 6,003 | | | | | | | | 9,401 | | | | 3,945 | | | | 5,456 | | | | | | | | 754 | | | | 8.0 | % | | | 207 | | | | 5.3 | % | | | 547 | | | | 10.0 | % |
| Orlando — Daytona | | | 21 | | | | 5,390 | | | | 93 | % | | | 12,422 | | | | 4,952 | | | | 7,469 | | | | | | | | 11,370 | | | | 4,809 | | | | 6,561 | | | | | | | | 1,052 | | | | 9.2 | % | | | 143 | | | | 3.0 | % | | | 909 | | | | 13.9 | % |
| Tampa-St. Petersburg | | | 16 | | | | 3,983 | | | | 68 | % | | | 6,461 | | | | 2,768 | | | | 3,692 | | | | | | | | 5,924 | | | | 2,502 | | | | 3,422 | | | | | | | | 536 | | | | 9.1 | % | | | 266 | | | | 10.6 | % | | | 270 | | | | 7.9 | % |
| West Palm Beach-Boca | | | 5 | | | | 1,505 | | | | 100 | % | | | 4,216 | | | | 1,729 | | | | 2,487 | | | | | | | | 4,045 | | | | 1,578 | | | | 2,468 | | | | | | | | 170 | | | | 4.2 | % | | | 152 | | | | 9.6 | % | | | 19 | | | | 0.8 | % |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 54 | | | | 14,695 | | | | 85.3 | % | | | 34,593 | | | | 14,158 | | | | 20,435 | | | | 94.8 | % | | | 32,047 | | | | 13,284 | | | | 18,764 | | | | 97.3 | % | | | 2,546 | | | | 7.9 | % | | | 874 | | | | 6.6 | % | | | 1,671 | | | | 8.9 | % |
Midwest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Chicago | | | 21 | | | | 5,863 | | | | 82 | % | | | 14,110 | | | | 6,294 | | | | 7,816 | | | | | | | | 13,424 | | | | 6,224 | | | | 7,200 | | | | | | | | 686 | | | | 5.1 | % | | | 70 | | | | 1.1 | % | | | 616 | | | | 8.6 | % |
| Cincinnati — Dayton | | | 6 | | | | 1,587 | | | | 54 | % | | | 1,992 | | | | 894 | | | | 1,098 | | | | | | | | 1,936 | | | | 773 | | | | 1,163 | | | | | | | | 57 | | | | 2.9 | % | | | 121 | | | | 15.7 | % | | | (65 | ) | | | -5.6 | % |
| Columbus | | | 9 | | | | 2,012 | | | | 72 | % | | | 2,678 | | | | 1,423 | | | | 1,255 | | | | | | | | 2,342 | | | | 1,304 | | | | 1,038 | | | | | | | | 336 | | | | 14.4 | % | | | 119 | | | | 9.2 | % | | | 217 | | | | 20.9 | % |
| Detroit — Ann Arbor | | | 6 | | | | 1,665 | | | | 62 | % | | | 2,102 | | | | 1,085 | | | | 1,017 | | | | | | | | 2,165 | | | | 1,093 | | | | 1,072 | | | | | | | | (62 | ) | | | -2.9 | % | | | (8 | ) | | | -0.7 | % | | | (55 | ) | | | -5.1 | % |
| Grand Rapids-Lansing | | | 11 | | | | 4,402 | | | | 65 | % | | | 5,423 | | | | 2,876 | | | | 2,547 | | | | | | | | 5,304 | | | | 2,823 | | | | 2,481 | | | | | | | | 119 | | | | 2.2 | % | | | 53 | | | | 1.9 | % | | | 66 | | | | 2.7 | % |
| Indianapolis | | | 24 | | | | 9,518 | | | | 92 | % | | | 15,057 | | | | 6,622 | | | | 8,435 | | | | | | | | 14,526 | | | | 7,771 | | | | 6,756 | | | | | | | | 531 | | | | 3.7 | % | | | (1,149 | ) | | | -14.8 | % | | | 1,680 | | | | 24.9 | % |
| Minneapolis — St. Paul | | | 4 | | | | 1,222 | | | | 81 | % | | | 3,233 | | | | 1,489 | | | | 1,744 | | | | | | | | 3,219 | | | | 1,541 | | | | 1,679 | | | | | | | | 14 | | | | 0.4 | % | | | (51 | ) | | | -3.3 | % | | | 65 | | | | 3.9 | % |
| Midwest other | | | 7 | | | | 1,773 | | | | 43 | % | | | 1,469 | | | | 664 | | | | 806 | | | | | | | | 1,456 | | | | 697 | | | | 759 | | | | | | | | 13 | | | | 0.9 | % | | | (33 | ) | | | -4.7 | % | | | 46 | | | | 6.1 | % |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 88 | | | | 28,042 | | | | 76.5 | % | | | 46,065 | | | | 21,348 | | | | 24,717 | | | | 93.5 | % | | | 44,371 | | | | 22,225 | | | | 22,147 | | | | 92.3 | % | | | 1,694 | | | | 3.8 | % | | | (877 | ) | | | -3.9 | % | | | 2,570 | | | | 11.6 | % |
Northeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Baltimore | | | 9 | | | | 1,772 | | | | 85 | % | | | 4,752 | | | | 1,797 | | | | 2,955 | | | | | | | | 4,492 | | | | 1,677 | | | | 2,815 | | | | | | | | 261 | | | | 5.8 | % | | | 120 | | | | 7.2 | % | | | 141 | | | | 5.0 | % |
| New England | | | 16 | | | | 5,745 | | | | 100 | % | | | 19,626 | | | | 6,757 | | | | 12,869 | | | | | | | | 19,302 | | | | 6,908 | | | | 12,395 | | | | | | | | 324 | | | | 1.7 | % | | | (150 | ) | | | -2.2 | % | | | 474 | | | | 3.8 | % |
| Philadelphia — New York | | | 13 | | | | 5,822 | | | | 88 | % | | | 17,838 | | | | 6,631 | | | | 11,207 | | | | | | | | 17,026 | | | | 6,490 | | | | 10,535 | | | | | | | | 812 | | | | 4.8 | % | | | 140 | | | | 2.2 | % | | | 672 | | | | 6.4 | % |
| Washington | | | 18 | | | | 9,066 | | | | 90 | % | | | 26,762 | | | | 9,924 | | | | 16,838 | | | | | | | | 26,020 | | | | 9,241 | | | | 16,779 | | | | | | | | 742 | | | | 2.9 | % | | | 683 | | | | 7.4 | % | | | 59 | | | | 0.4 | % |
| | | | | | | |
| | | | 56 | | | | 22,405 | | | | 91.8 | % | | | 68,979 | | | | 25,109 | | | | 43,870 | | | | 95.3 | % | | | 66,840 | | | | 24,316 | | | | 42,524 | | | | 96.1 | % | | | 2,138 | | | | 3.2 | % | | | 793 | | | | 3.3 | % | | | 1,346 | | | | 3.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Southeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Atlanta | | | 9 | | | | 2,484 | | | | 80 | % | | | 4,114 | | | | 2,131 | | | | 1,983 | | | | | | | | 4,051 | | | | 1,987 | | | | 2,065 | | | | | | | | 63 | | | | 1.6 | % | | | 144 | | | | 7.3 | % | | | (81 | ) | | | -3.9 | % |
| Savannah/Augusta | | | 2 | | | | 416 | | | | 100 | % | | | 977 | | | | 340 | | | | 637 | | | | | | | | 897 | | | | 360 | | | | 537 | | | | | | | | 80 | | | | 8.9 | % | | | (21 | ) | | | -5.7 | % | | | 100 | | | | 18.7 | % |
| Charlotte-Gastonia | | | 5 | | | | 1,100 | | | | 90 | % | | | 1,607 | | | | 917 | | | | 690 | | | | | | | | 1,501 | | | | 918 | | | | 583 | | | | | | | | 106 | | | | 7.1 | % | | | (1 | ) | | | -0.1 | % | | | 107 | | | | 18.4 | % |
| Columbia/Charleston | | | 6 | | | | 1,238 | | | | 70 | % | | | 1,673 | | | | 849 | | | | 824 | | | | | | | | 1,538 | | | | 847 | | | | 691 | | | | | | | | 135 | | | | 8.8 | % | | | 2 | | | | 0.2 | % | | | 133 | | | | 19.3 | % |
| Nashville | | | 8 | | | | 2,492 | | | | 74 | % | | | 4,203 | | | | 1,513 | | | | 2,690 | | | | | | | | 4,004 | | | | 1,844 | | | | 2,160 | | | | | | | | 198 | | | | 5.0 | % | | | (331 | ) | | | -18.0 | % | | | 530 | | | | 24.5 | % |
| Norfolk | | | 10 | | | | 3,161 | | | | 79 | % | | | 7,144 | | | | 2,118 | | | | 5,026 | | | | | | | | 6,654 | | | | 2,280 | | | | 4,374 | | | | | | | | 491 | | | | 7.4 | % | | | (162 | ) | | | -7.1 | % | | | 652 | | | | 14.9 | % |
| Raleigh-Durham-Chapel Hill | | | 8 | | | | 2,247 | | | | 76 | % | | | 3,136 | | | | 1,639 | | | | 1,496 | | | | | | | | 2,808 | | | | 1,677 | | | | 1,130 | | | | | | | | 328 | | | | 11.7 | % | | | (38 | ) | | | -2.3 | % | | | 366 | | | | 32.4 | % |
| Richmond — Petersburg | | | 3 | | | | 744 | | | | 80 | % | | | 1,340 | | | | 525 | | | | 815 | | | | | | | | 1,289 | | | | 477 | | | | 812 | | | | | | | | 51 | | | | 4.0 | % | | | 48 | | | | 10.1 | % | | | 3 | | | | 0.3 | % |
| Southeast other | | | 12 | | | | 2,617 | | | | 81 | % | | | 4,097 | | | | 2,032 | | | | 2,065 | | | | | | | | 3,826 | | | | 2,007 | | | | 1,819 | | | | | | | | 270 | | | | 7.1 | % | | | 25 | | | | 1.2 | % | | | 246 | | | | 13.5 | % |
| | | | | | | |
| | | | 63 | | | | 16,499 | | | | 79.0 | % | | | 28,290 | | | | 12,064 | | | | 16,226 | | | | 93.4 | % | | | 26,569 | | | | 12,399 | | | | 14,170 | | | | 91.6 | % | | | 1,722 | | | | 6.5 | % | | | (334 | ) | | | -2.7 | % | | | 2,056 | | | | 14.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Texas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Austin-San Marcos | | | 11 | | | | 2,417 | | | | 94 | % | | | 4,400 | | | | 2,325 | | | | 2,075 | | | | | | | | 4,208 | | | | 2,402 | | | | 1,806 | | | | | | | | 191 | | | | 4.5 | % | | | (78 | ) | | | -3.2 | % | | | 269 | | | | 14.9 | % |
| Dallas-Fort Worth | | | 22 | | | | 5,847 | | | | 77 | % | | | 8,444 | | | | 4,187 | | | | 4,257 | | | | | | | | 7,874 | | | | 4,955 | | | | 2,920 | | | | | | | | 570 | | | | 7.2 | % | | | (767 | ) | | | -15.5 | % | | | 1,338 | | | | 45.8 | % |
| Houston — Galveston | | | 36 | | | | 9,570 | | | | 68 | % | | | 12,200 | | | | 6,371 | | | | 5,829 | | | | | | | | 10,831 | | | | 6,824 | | | | 4,007 | | | | | | | | 1,369 | | | | 12.6 | % | | | (452 | ) | | | -6.6 | % | | | 1,821 | | | | 45.5 | % |
| San Antonio | | | 9 | | | | 1,951 | | | | 91 | % | | | 3,048 | | | | 1,668 | | | | 1,380 | | | | | | | | 2,898 | | | | 1,609 | | | | 1,289 | | | | | | | | 150 | | | | 5.2 | % | | | 58 | | | | 3.6 | % | | | 92 | | | | 7.1 | % |
| Texas other | | | 3 | | | | 763 | | | | 65 | % | | | 922 | | | | 404 | | | | 518 | | | | | | | | 849 | | | | 443 | | | | 406 | | | | | | | | 73 | | | | 8.6 | % | | | (39 | ) | | | -8.8 | % | | | 112 | | | | 27.6 | % |
| | | | | | | |
| | | | 81 | | | | 20,548 | | | | 75.6 | % | | | 29,014 | | | | 14,955 | | | | 14,059 | | | | 93.6 | % | | | 26,661 | | | | 16,233 | | | | 10,428 | | | | 89.1 | % | | | 2,353 | | | | 8.8 | % | | | (1,278 | ) | | | -7.9 | % | | | 3,632 | | | | 34.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
West | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Denver | | | 23 | | | | 5,109 | | | | 83 | % | | | 9,508 | | | | 4,094 | | | | 5,414 | | | | | | | | 9,424 | | | | 4,185 | | | | 5,239 | | | | | | | | 84 | | | | 0.9 | % | | | (91 | ) | | | -2.2 | % | | | 176 | | | | 3.4 | % |
| Phoenix-Mesa | | | 21 | | | | 5,671 | | | | 93 | % | | | 10,726 | | | | 5,010 | | | | 5,716 | | | | | | | | 9,799 | | | | 4,715 | | | | 5,083 | | | | | | | | 928 | | | | 9.5 | % | | | 295 | | | | 6.3 | % | | | 633 | | | | 12.5 | % |
| Salt Lake City-Ogden | | | 4 | | | | 1,511 | | | | 86 | % | | | 2,477 | | | | 957 | | | | 1,521 | | | | | | | | 2,305 | | | | 982 | | | | 1,323 | | | | | | | | 172 | | | | 7.5 | % | | | (25 | ) | | | -2.6 | % | | | 197 | | | | 14.9 | % |
| Seattle | | | 4 | | | | 468 | | | | 59 | % | | | 733 | | | | 328 | | | | 405 | | | | | | | | 676 | | | | 315 | | | | 361 | | | | | | | | 57 | | | | 8.5 | % | | | 13 | | | | 4.2 | % | | | 44 | | | | 12.3 | % |
| West other | | | 8 | | | | 2,296 | | | | 86 | % | | | 3,714 | | | | 1,853 | | | | 1,861 | | | | | | | | 3,482 | | | | 1,707 | | | | 1,775 | | | | | | | | 232 | | | | 6.7 | % | | | 146 | | | | 8.5 | % | | | 86 | | | | 4.8 | % |
| | | | | | | |
| | | | 60 | | | | 15,055 | | | | 87.0 | % | | | 27,159 | | | | 12,242 | | | | 14,917 | | | | 93.9 | % | | | 25,686 | | | | 11,905 | | | | 13,781 | | | | 92.7 | % | | | 1,473 | | | | 5.7 | % | | | 337 | | | | 2.8 | % | | | 1,136 | | | | 8.2 | % |
| | | | | | | |
SAME STORE SALES TOTALS | | | 431 | | | | 124,543 | | | | 81.9 | % | | $ | 260,117 | | | $ | 108,237 | | | $ | 151,881 | | | | 94.2 | % | | $ | 246,409 | | | $ | 108,303 | | | $ | 138,106 | | | | 93.2 | % | | $ | 13,708 | | | | 5.6 | % | | $ | (66 | ) | | | -0.1 | % | | $ | 13,775 | | | | 10.0 | % |
| | | | | | | |
| Reconciliation to total rental and other property revenues and property operating expense per GAAP Income Statement (1) | | | 162,485 | | | | 86,512 | | | | 75,972 | | | | | | | | 107,853 | | | | 60,878 | | | | 46,975 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues and property operating expense per GAAP income statement | | $ | 422,602 | | | $ | 194,749 | | | $ | 227,853 | | | | | | | $ | 354,262 | | | $ | 169,181 | | | $ | 185,081 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Includes: (i) minority partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP. |
| |
| (2) | | Same Store Effective Units were approximately 102,000 at September 30, 2006. |
Supplemental Schedule 6(b)
Same Store Sales
Third Quarter 2006 Compared to Second Quarter 2006
(unaudited) (in thousands, except site and unit data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Three Months Ended | | Three Months Ended | | Change |
| | | | | | | | | | | | | | | September 30, 2006 | | June 30, 2006 | | Revenue | | Expenses | | NOI |
| | | Sites | | Units | | Ownership | | Revenue | | Expenses | | NOI | | Occ % | | Revenue | | Expenses | | NOI | | Occ % | | Amount | | Percent | | Amount | | Percent | | Amount | | Percent |
| | | | | | | |
California | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Bay Area & Sacramento | | | 5 | | | | 1,291 | | | | 44 | % | | $ | 1,836 | | | $ | 703 | | | $ | 1,134 | | | | | | | $ | 1,815 | | | $ | 640 | | | $ | 1,175 | | | | | | | $ | 21 | | | | 1.1 | % | | $ | 63 | | | | 9.8 | % | | $ | (42 | ) | | | -3.6 | % |
| Los Angeles-Long Beach — Ventura | | | 12 | | | | 2,638 | | | | 88 | % | | | 13,311 | | | | 4,232 | | | | 9,078 | | | | | | | | 13,017 | | | | 3,995 | | | | 9,022 | | | | | | | | 294 | | | | 2.3 | % | | | 238 | | | | 5.9 | % | | | 56 | | | | 0.6 | % |
| Orange County - Riverside | | | 7 | | | | 1,651 | | | | 82 | % | | | 5,518 | | | | 1,747 | | | | 3,771 | | | | | | | | 5,443 | | | | 1,571 | | | | 3,872 | | | | | | | | 75 | | | | 1.4 | % | | | 176 | | | | 11.2 | % | | | (101 | ) | | | -2.6 | % |
| San Diego | | | 5 | | | | 1,719 | | | | 92 | % | | | 5,352 | | | | 1,679 | | | | 3,674 | | | | | | | | 5,208 | | | | 1,625 | | | | 3,583 | | | | | | | | 145 | | | | 2.8 | % | | | 54 | | | | 3.3 | % | | | 91 | | | | 2.5 | % |
| | | | | | | |
| | | | 29 | | | | 7,299 | | | | 79.9 | % | | | 26,017 | | | | 8,360 | | | | 17,657 | | | | 96.3 | % | | | 25,483 | | | | 7,831 | | | | 17,653 | | | | 96.2 | % | | | 534 | | | | 2.1 | % | | | 530 | | | | 6.8 | % | | | 4 | | | | 0.0 | % |
Florida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jacksonville | | | 2 | | | | 592 | | | | 100 | % | | | 1,340 | | | | 556 | | | | 783 | | | | | | | | 1,322 | | | | 499 | | | | 823 | | | | | | | | 17 | | | | 1.3 | % | | | 57 | | | | 11.4 | % | | | (39 | ) | | | -4.8 | % |
| Miami/Fort Lauderdale | | | 10 | | | | 3,225 | | | | 84 | % | | | 10,155 | | | | 4,152 | | | | 6,003 | | | | | | | | 10,134 | | | | 3,988 | | | | 6,147 | | | | | | | | 21 | | | | 0.2 | % | | | 164 | | | | 4.1 | % | | | (144 | ) | | | -2.3 | % |
| Orlando — Daytona | | | 21 | | | | 5,390 | | | | 93 | % | | | 12,422 | | | | 4,952 | | | | 7,469 | | | | | | | | 12,227 | | | | 4,792 | | | | 7,436 | | | | | | | | 194 | | | | 1.6 | % | | | 161 | | | | 3.4 | % | | | 34 | | | | 0.5 | % |
| Tampa-St. Petersburg | | | 16 | | | | 3,983 | | | | 68 | % | | | 6,461 | | | | 2,768 | | | | 3,692 | | | | | | | | 6,419 | | | | 2,563 | | | | 3,856 | | | | | | | | 42 | | | | 0.6 | % | | | 205 | | | | 8.0 | % | | | (164 | ) | | | -4.2 | % |
| West Palm Beach-Boca | | | 5 | | | | 1,505 | | | | 100 | % | | | 4,216 | | | | 1,729 | | | | 2,487 | | | | | | | | 4,347 | | | | 1,738 | | | | 2,609 | | | | | | | | (131 | ) | | | -3.0 | % | | | (9 | ) | | | -0.5 | % | | | (123 | ) | | | -4.7 | % |
| | | | | | | |
| | | | 54 | | | | 14,695 | | | | 85.3 | % | | | 34,593 | | | | 14,158 | | | | 20,435 | | | | 94.8 | % | | | 34,450 | | | | 13,580 | | | | 20,870 | | | | 96.3 | % | | | 143 | | | | 0.4 | % | | | 578 | | | | 4.3 | % | | | (435 | ) | | | -2.1 | % |
Midwest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Chicago | | | 21 | | | | 5,863 | | | | 82 | % | | | 14,110 | | | | 6,294 | | | | 7,816 | | | | | | | | 14,118 | | | | 6,264 | | | | 7,853 | | | | | | | | (8 | ) | | | -0.1 | % | | | 30 | | | | 0.5 | % | | | (37 | ) | | | -0.5 | % |
| Cincinnati — Dayton | | | 6 | | | | 1,587 | | | | 54 | % | | | 1,992 | | | | 894 | | | | 1,098 | | | | | | | | 1,990 | | | | 831 | | | | 1,159 | | | | | | | | 2 | | | | 0.1 | % | | | 63 | | | | 7.5 | % | | | (61 | ) | | | -5.2 | % |
| Columbus | | | 9 | | | | 2,012 | | | | 72 | % | | | 2,678 | | | | 1,423 | | | | 1,255 | | | | | | | | 2,628 | | | | 1,339 | | | | 1,289 | | | | | | | | 49 | | | | 1.9 | % | | | 84 | | | | 6.3 | % | | | (35 | ) | | | -2.7 | % |
| Detroit — Ann Arbor | | | 6 | | | | 1,665 | | | | 62 | % | | | 2,102 | | | | 1,085 | | | | 1,017 | | | | | | | | 2,092 | | | | 1,066 | | | | 1,025 | | | | | | | | 10 | | | | 0.5 | % | | | 19 | | | | 1.8 | % | | | (8 | ) | | | -0.8 | % |
| Grand Rapids-Lansing | | | 11 | | | | 4,402 | | | | 65 | % | | | 5,423 | | | | 2,876 | | | | 2,547 | | | | | | | | 5,284 | | | | 2,612 | | | | 2,672 | | | | | | | | 139 | | | | 2.6 | % | | | 264 | | | | 10.1 | % | | | (125 | ) | | | -4.7 | % |
| Indianapolis | | | 24 | | | | 9,518 | | | | 92 | % | | | 15,057 | | | | 6,622 | | | | 8,435 | | | | | | | | 14,920 | | | | 7,468 | | | | 7,451 | | | | | | | | 138 | | | | 0.9 | % | | | (846 | ) | | | -11.3 | % | | | 984 | | | | 13.2 | % |
| Minneapolis — St. Paul | | | 4 | | | | 1,222 | | | | 81 | % | | | 3,233 | | | | 1,489 | | | | 1,744 | | | | | | | | 3,247 | | | | 1,397 | | | | 1,850 | | | | | | | | (14 | ) | | | -0.4 | % | | | 93 | | | | 6.6 | % | | | (107 | ) | | | -5.8 | % |
| Midwest other | | | 7 | | | | 1,773 | | | | 43 | % | | | 1,469 | | | | 664 | | | | 806 | | | | | | | | 1,495 | | | | 689 | | | | 807 | | | | | | | | (26 | ) | | | -1.7 | % | | | (25 | ) | | | -3.6 | % | | | (1 | ) | | | -0.1 | % |
| | | | | | | |
| | | | 88 | | | | 28,042 | | | | 76.5 | % | | | 46,065 | | | | 21,348 | | | | 24,717 | | | | 93.5 | % | | | 45,774 | | | | 21,667 | | | | 24,107 | | | | 93.7 | % | | | 291 | | | | 0.6 | % | | | (319 | ) | | | -1.5 | % | | | 610 | | | | 2.5 | % |
Northeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Baltimore | | | 9 | | | | 1,772 | | | | 85 | % | | | 4,752 | | | | 1,797 | | | | 2,955 | | | | | | | | 4,774 | | | | 1,739 | | | | 3,035 | | | | | | | | (22 | ) | | | -0.5 | % | | | 58 | | | | 3.3 | % | | | (80 | ) | | | -2.6 | % |
| New England | | | 16 | | | | 5,745 | | | | 100 | % | | | 19,626 | | | | 6,757 | | | | 12,869 | | | | | | | | 19,603 | | | | 6,887 | | | | 12,716 | | | | | | | | 23 | | | | 0.1 | % | | | (130 | ) | | | -1.9 | % | | | 153 | | | | 1.2 | % |
| Philadelphia — New York | | | 13 | | | | 5,822 | | | | 88 | % | | | 17,838 | | | | 6,631 | | | | 11,207 | | | | | | | | 17,744 | | | | 6,691 | | | | 11,053 | | | | | | | | 94 | | | | 0.5 | % | | | (60 | ) | | | -0.9 | % | | | 154 | | | | 1.4 | % |
| Washington | | | 18 | | | | 9,066 | | | | 90 | % | | | 26,762 | | | | 9,924 | | | | 16,838 | | | | | | | | 26,398 | | | | 9,259 | | | | 17,139 | | | | | | | | 364 | | | | 1.4 | % | | | 665 | | | | 7.2 | % | | | (301 | ) | | | -1.8 | % |
| | | | | | | |
| | | | 56 | | | | 22,405 | | | | 91.8 | % | | | 68,979 | | | | 25,109 | | | | 43,870 | | | | 95.3 | % | | | 68,519 | | | | 24,576 | | | | 43,943 | | | | 95.4 | % | | | 460 | | | | 0.7 | % | | | 533 | | | | 2.2 | % | | | (73 | ) | | | -0.2 | % |
Southeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Atlanta | | | 9 | | | | 2,484 | | | | 80 | % | | | 4,114 | | | | 2,131 | | | | 1,983 | | | | | | | | 4,051 | | | | 1,941 | | | | 2,109 | | | | | | | | 63 | | | | 1.6 | % | | | 189 | | | | 9.8 | % | | | (126 | ) | | | -6.0 | % |
| Savannah/Augusta | | | 2 | | | | 416 | | | | 100 | % | | | 977 | | | | 340 | | | | 637 | | | | | | | | 944 | | | | 327 | | | | 617 | | | | | | | | 33 | | | | 3.5 | % | | | 12 | | | | 3.8 | % | | | 20 | | | | 3.3 | % |
| Charlotte-Gastonia | | | 5 | | | | 1,100 | | | | 90 | % | | | 1,607 | | | | 917 | | | | 690 | | | | | | | | 1,559 | | | | 925 | | | | 634 | | | | | | | | 48 | | | | 3.1 | % | | | (8 | ) | | | -0.8 | % | | | 56 | | | | 8.8 | % |
| Columbia/Charleston | | | 6 | | | | 1,238 | | | | 70 | % | | | 1,673 | | | | 849 | | | | 824 | | | | | | | | 1,638 | | | | 785 | | | | 853 | | | | | | | | 34 | | | | 2.1 | % | | | 64 | | | | 8.1 | % | | | (29 | ) | | | -3.4 | % |
| Nashville | | | 8 | | | | 2,492 | | | | 74 | % | | | 4,203 | | | | 1,513 | | | | 2,690 | | | | | | | | 4,100 | | | | 1,786 | | | | 2,314 | | | | | | | | 103 | | | | 2.5 | % | | | (273 | ) | | | -15.3 | % | | | 375 | | | | 16.2 | % |
| Norfolk | | | 10 | | | | 3,161 | | | | 79 | % | | | 7,144 | | | | 2,118 | | | | 5,026 | | | | | | | | 7,020 | | | | 2,347 | | | | 4,673 | | | | | | | | 124 | | | | 1.8 | % | | | (229 | ) | | | -9.7 | % | | | 353 | | | | 7.5 | % |
| Raleigh-Durham-Chapel Hill | | | 8 | | | | 2,247 | | | | 76 | % | | | 3,136 | | | | 1,639 | | | | 1,496 | | | | | | | | 3,003 | | | | 1,514 | | | | 1,489 | | | | | | | | 133 | | | | 4.4 | % | | | 126 | | | | 8.3 | % | | | 7 | | | | 0.5 | % |
| Richmond - Petersburg | | | 3 | | | | 744 | | | | 80 | % | | | 1,340 | | | | 525 | | | | 815 | | | | | | | | 1,338 | | | | 463 | | | | 875 | | | | | | | | 2 | | | | 0.1 | % | | | 63 | | | | 13.5 | % | | | (61 | ) | | | -6.9 | % |
| Southeast other | | | 12 | | | | 2,617 | | | | 81 | % | | | 4,097 | | | | 2,032 | | | | 2,065 | | | | | | | | 4,065 | | | | 1,878 | | | | 2,187 | | | | | | | | 32 | | | | 0.8 | % | | | 154 | | | | 8.2 | % | | | (122 | ) | | | -5.6 | % |
| | | | | | | |
| | | | 63 | | | | 16,499 | | | | 79.0 | % | | | 28,290 | | | | 12,064 | | | | 16,226 | | | | 93.4 | % | | | 27,718 | | | | 11,966 | | | | 15,752 | | | | 92.4 | % | | | 572 | | | | 2.1 | % | | | 98 | | | | 0.8 | % | | | 474 | | | | 3.0 | % |
Texas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Austin-San Marcos | | | 11 | | | | 2,417 | | | | 94 | % | | | 4,400 | | | | 2,325 | | | | 2,075 | | | | | | | | 4,331 | | | | 2,217 | | | | 2,114 | | | | | | | | 69 | | | | 1.6 | % | | | 108 | | | | 4.9 | % | | | (39 | ) | | | -1.9 | % |
| Dallas-Fort Worth | | | 22 | | | | 5,847 | | | | 77 | % | | | 8,444 | | | | 4,187 | | | | 4,257 | | | | | | | | 8,316 | | | | 4,234 | | | | 4,082 | | | | | | | | 129 | | | | 1.5 | % | | | (47 | ) | | | -1.1 | % | | | 175 | | | | 4.3 | % |
| Houston — Galveston | | | 36 | | | | 9,570 | | | | 68 | % | | | 12,200 | | | | 6,371 | | | | 5,829 | | | | | | | | 11,933 | | | | 6,250 | | | | 5,682 | | | | | | | | 267 | | | | 2.2 | % | | | 121 | | | | 1.9 | % | | | 146 | | | | 2.6 | % |
| San Antonio | | | 9 | | | | 1,951 | | | | 91 | % | | | 3,048 | | | | 1,668 | | | | 1,380 | | | | | | | | 3,001 | | | | 1,501 | | | | 1,501 | | | | | | | | 47 | | | | 1.6 | % | | | 167 | | | | 11.1 | % | | | (120 | ) | | | -8.0 | % |
| Texas other | | | 3 | | | | 763 | | | | 65 | % | | | 922 | | | | 404 | | | | 518 | | | | | | | | 905 | | | | 389 | | | | 516 | | | | | | | | 17 | | | | 1.9 | % | | | 15 | | | | 3.9 | % | | | 2 | | | | 0.4 | % |
| | | | | | | |
| | | | 81 | | | | 20,548 | | | | 75.6 | % | | | 29,014 | | | | 14,955 | | | | 14,059 | | | | 93.6 | % | | | 28,486 | | | | 14,591 | | | | 13,895 | | | | 93.5 | % | | | 529 | | | | 1.9 | % | | | 364 | | | | 2.5 | % | | | 164 | | | | 1.2 | % |
West | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Denver | | | 23 | | | | 5,109 | | | | 83 | % | | | 9,508 | | | | 4,094 | | | | 5,414 | | | | | | | | 9,419 | | | | 3,969 | | | | 5,450 | | | | | | | | 89 | | | | 0.9 | % | | | 125 | | | | 3.2 | % | | | (36 | ) | | | -0.7 | % |
| Phoenix-Mesa | | | 21 | | | | 5,671 | | | | 93 | % | | | 10,726 | | | | 5,010 | | | | 5,716 | | | | | | | | 10,376 | | | | 4,642 | | | | 5,735 | | | | | | | | 350 | | | | 3.4 | % | | | 368 | | | | 7.9 | % | | | (18 | ) | | | -0.3 | % |
| Salt Lake City-Ogden | | | 4 | | | | 1,511 | | | | 86 | % | | | 2,477 | | | | 957 | | | | 1,521 | | | | | | | | 2,395 | | | | 893 | | | | 1,502 | | | | | | | | 82 | | | | 3.4 | % | | | 64 | | | | 7.1 | % | | | 19 | | | | 1.2 | % |
| Seattle | | | 4 | | | | 468 | | | | 59 | % | | | 733 | | | | 328 | | | | 405 | | | | | | | | 723 | | | | 327 | | | | 396 | | | | | | | | 10 | | | | 1.4 | % | | | 1 | | | | 0.5 | % | | | 9 | | | | 2.2 | % |
| West other | | | 8 | | | | 2,296 | | | | 86 | % | | | 3,714 | | | | 1,853 | | | | 1,861 | | | | | | | | 3,648 | | | | 1,611 | | | | 2,037 | | | | | | | | 66 | | | | 1.8 | % | | | 242 | | | | 15.1 | % | | | (176 | ) | | | -8.6 | % |
| | | | | | | | | |
| | | | 60 | | | | 15,055 | | | | 87.0 | % | | | 27,159 | | | | 12,242 | | | | 14,917 | | | | 93.9 | % | | | 26,561 | | | | 11,440 | | | | 15,120 | | | | 93.6 | % | | | 598 | | | | 2.3 | % | | | 802 | | | | 7.0 | % | | | (203 | ) | | | -1.3 | % |
| | | | | |
SAME STORE SALES TOTALS | | | 431 | | | | 124,543 | (2) | | | 81.9 | % | | $ | 260,117 | | | $ | 108,237 | | | $ | 151,881 | | | | 94.2 | % | | $ | 256,991 | | | $ | 105,650 | | | $ | 151,341 | | | | 94.2 | % | | $ | 3,126 | | | | 1.2 | % | | $ | 2,586 | | | | 2.4 | % | | $ | 540 | | | | 0.4 | % |
| | | | | |
| Reconciliation to total rental and other property revenues and property operating expense per GAAP Income Statement (1) | | | 162,485 | | | | 86,512 | | | | 75,972 | | | | | | | | 158,733 | | | | 79,414 | | | | 79,319 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues and property operating expense per GAAP Income Statement | | $ | 422,602 | | | $ | 194,749 | | | $ | 227,853 | | | | | | | $ | 415,724 | | | $ | 185,064 | | | $ | 230,660 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Includes: (i) minority partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP. |
| |
| (2) | | Same Store Effective Units were approximately 102,000 at September 30, 2006. |
Supplemental Schedule 6(c)
Same Store Sales
Nine Months Ended 2006 Compared to Nine Months Ended 2005
(unaudited) (in thousands, except site and unit data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Nine Months Ended | | Nine Months Ended | | Change |
| | | | | | | | | | | | | | | September 30, 2006 | | September 30, 2005 | | Revenue | | Expenses | | NOI |
| | | Sites | | Units | | Ownership | | Revenue | | Expenses | | NOI | | Occ % | | Revenue | | Expenses | | NOI | | Occ % | | Amount | | Percent | | Amount | | Percent | | Amount | | Percent |
| | | | | | | | | |
California | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Bay Area & Sacramento | | | 5 | | | | 1,291 | | | | 44 | % | | $ | 5,419 | | | $ | 2,022 | | | $ | 3,397 | | | | | | | $ | 5,017 | | | $ | 2,055 | | | $ | 2,963 | | | | | | | $ | 402 | | | | 8.0 | % | | $ | (32 | ) | | | -1.6 | % | | $ | 434 | | | | 14.6 | % |
| Los Angeles-Long Beach — Ventura | | | 12 | | | | 2,638 | | | | 88 | % | | | 38,973 | | | | 12,344 | | | | 26,630 | | | | | | | | 35,212 | | | | 11,404 | | | | 23,808 | | | | | | | | 3,762 | | | | 10.7 | % | | | 940 | | | | 8.2 | % | | | 2,822 | | | | 11.9 | % |
| Orange County - Riverside | | | 7 | | | | 1,651 | | | | 82 | % | | | 16,326 | | | | 4,910 | | | | 11,416 | | | | | | | | 15,180 | | | | 4,576 | | | | 10,603 | | | | | | | | 1,146 | | | | 7.6 | % | | | 334 | | | | 7.3 | % | | | 812 | | | | 7.7 | % |
| San Diego | | | 5 | | | | 1,719 | | | | 92 | % | | | 15,659 | | | | 4,925 | | | | 10,734 | | | | | | | | 15,144 | | | | 4,622 | | | | 10,522 | | | | | | | | 514 | | | | 3.4 | % | | | 303 | | | | 6.6 | % | | | 211 | | | | 2.0 | % |
| | | | | | | | | |
| | | | 29 | | | | 7,299 | | | | 79.9 | % | | | 76,376 | | | | 24,201 | | | | 52,175 | | | | 96.2 | % | | | 70,553 | | | | 22,656 | | | | 47,896 | | | | 95.6 | % | | | 5,824 | | | | 8.3 | % | | | 1,545 | | | | 6.8 | % | | | 4,279 | | | | 8.9 | % |
Florida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jacksonville | | | 2 | | | | 592 | | | | 100 | % | | | 3,975 | | | | 1,535 | | | | 2,440 | | | | | | | | 3,791 | | | | 1,353 | | | | 2,438 | | | | | | | | 184 | | | | 4.8 | % | | | 181 | | | | 13.4 | % | | | 2 | | | | 0.1 | % |
| Miami/Fort Lauderdale | | | 10 | | | | 3,225 | | | | 84 | % | | | 30,181 | | | | 11,995 | | | | 18,187 | | | | | | | | 27,177 | | | | 11,111 | | | | 16,066 | | | | | | | | 3,004 | | | | 11.1 | % | | | 883 | | | | 7.9 | % | | | 2,121 | | | | 13.2 | % |
| Orlando — Daytona | | | 21 | | | | 5,390 | | | | 93 | % | | | 36,723 | | | | 14,507 | | | | 22,216 | | | | | | | | 33,137 | | | | 13,729 | | | | 19,409 | | | | | | | | 3,586 | | | | 10.8 | % | | | 779 | | | | 5.7 | % | | | 2,807 | | | | 14.5 | % |
| Tampa-St. Petersburg | | | 16 | | | | 3,983 | | | | 68 | % | | | 19,136 | | | | 7,869 | | | | 11,267 | | | | | | | | 17,268 | | | | 7,138 | | | | 10,130 | | | | | | | | 1,868 | | | | 10.8 | % | | | 731 | | | | 10.2 | % | | | 1,137 | | | | 11.2 | % |
| West Palm Beach-Boca | | | 5 | | | | 1,505 | | | | 100 | % | | | 12,873 | | | | 5,056 | | | | 7,817 | | | | | | | | 11,870 | | | | 4,627 | | | | 7,243 | | | | | | | | 1,003 | | | | 8.5 | % | | | 429 | | | | 9.3 | % | | | 574 | | | | 7.9 | % |
| | | | | | | | | |
| | | | 54 | | | | 14,695 | | | | 85.3 | % | | | 102,888 | | | | 40,961 | | | | 61,927 | | | | 96.3 | % | | | 93,242 | | | | 37,957 | | | | 55,285 | | | | 97.0 | % | | | 9,645 | | | | 10.3 | % | | | 3,004 | | | | 7.9 | % | | | 6,642 | | | | 12.0 | % |
Midwest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Chicago | | | 20 | | | | 5,708 | | | | 81 | % | | | 40,210 | | | | 18,273 | | | | 21,936 | | | | | | | | 37,753 | | | | 17,118 | | | | 20,635 | | | | | | | | 2,457 | | | | 6.5 | % | | | 1,156 | | | | 6.8 | % | | | 1,301 | | | | 6.3 | % |
| Cincinnati — Dayton | | | 6 | | | | 1,587 | | | | 54 | % | | | 5,884 | | | | 2,672 | | | | 3,212 | | | | | | | | 5,722 | | | | 2,335 | | | | 3,387 | | | | | | | | 161 | | | | 2.8 | % | | | 337 | | | | 14.4 | % | | | (176 | ) | | | -5.2 | % |
| Columbus | | | 9 | | | | 2,012 | | | | 72 | % | | | 7,868 | | | | 4,308 | | | | 3,561 | | | | | | | | 6,869 | | | | 3,819 | | | | 3,050 | | | | | | | | 999 | | | | 14.5 | % | | | 488 | | | | 12.8 | % | | | 511 | | | | 16.8 | % |
| Detroit — Ann Arbor | | | 6 | | | | 1,665 | | | | 62 | % | | | 6,371 | | | | 3,223 | | | | 3,148 | | | | | | | | 6,118 | | | | 3,235 | | | | 2,883 | | | | | | | | 254 | | | | 4.1 | % | | | (11 | ) | | | -0.4 | % | | | 265 | | | | 9.2 | % |
| Grand Rapids-Lansing | | | 11 | | | | 4,402 | | | | 65 | % | | | 15,986 | | | | 8,140 | | | | 7,846 | | | | | | | | 15,348 | | | | 8,238 | | | | 7,110 | | | | | | | | 637 | | | | 4.2 | % | | | (98 | ) | | | -1.2 | % | | | 736 | | | | 10.3 | % |
| Indianapolis | | | 24 | | | | 9,518 | | | | 92 | % | | | 44,796 | | | | 20,935 | | | | 23,861 | | | | | | | | 41,741 | | | | 22,328 | | | | 19,413 | | | | | | | | 3,055 | | | | 7.3 | % | | | (1,393 | ) | | | -6.2 | % | | | 4,448 | | | | 22.9 | % |
| Minneapolis — St. Paul | | | 4 | | | | 1,222 | | | | 81 | % | | | 9,676 | | | | 4,468 | | | | 5,208 | | | | | | | | 9,176 | | | | 4,446 | | | | 4,729 | | | | | | | | 500 | | | | 5.5 | % | | | 22 | | | | 0.5 | % | | | 478 | | | | 10.1 | % |
| Midwest other | | | 7 | | | | 1,773 | | | | 43 | % | | | 4,455 | | | | 2,096 | | | | 2,359 | | | | | | | | 4,248 | | | | 2,004 | | | | 2,244 | | | | | | | | 207 | | | | 4.9 | % | | | 92 | | | | 4.6 | % | | | 115 | | | | 5.1 | % |
| | | | | | | | | |
| | | | 87 | | | | 27,887 | | | | 76.4 | % | | | 135,245 | | | | 64,116 | | | | 71,129 | | | | 93.7 | % | | | 126,975 | | | | 63,524 | | | | 63,451 | | | | 91.3 | % | | | 8,270 | | | | 6.5 | % | | | 592 | | | | 0.9 | % | | | 7,678 | | | | 12.1 | % |
Northeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Baltimore | | | 9 | | | | 1,772 | | | | 85 | % | | | 14,150 | | | | 5,342 | | | | 8,807 | | | | | | | | 13,160 | | | | 5,010 | | | | 8,150 | | | | | | | | 990 | | | | 7.5 | % | | | 332 | | | | 6.6 | % | | | 657 | | | | 8.1 | % |
| New England | | | 15 | | | | 5,505 | | | | 100 | % | | | 56,544 | | | | 20,363 | | | | 36,181 | | | | | | | | 54,719 | | | | 20,490 | | | | 34,228 | | | | | | | | 1,825 | | | | 3.3 | % | | | (128 | ) | | | -0.6 | % | | | 1,953 | | | | 5.7 | % |
| Philadelphia — New York | | | 12 | | | | 5,556 | | | | 88 | % | | | 48,721 | | | | 19,140 | | | | 29,582 | | | | | | | | 45,901 | | | | 18,113 | | | | 27,788 | | | | | | | | 2,821 | | | | 6.1 | % | | | 1,027 | | | | 5.7 | % | | | 1,794 | | | | 6.5 | % |
| Washington | | | 18 | | | | 9,066 | | | | 90 | % | | | 79,221 | | | | 29,223 | | | | 49,998 | | | | | | | | 76,100 | | | | 27,712 | | | | 48,388 | | | | | | | | 3,121 | | | | 4.1 | % | | | 1,511 | | | | 5.5 | % | | | 1,610 | | | | 3.3 | % |
| | | | | | | | | |
| | | | 54 | | | | 21,899 | | | | 91.6 | % | | | 198,636 | | | | 74,067 | | | | 124,568 | | | | 95.4 | % | | | 189,879 | | | | 71,325 | | | | 118,555 | | | | 95.7 | % | | | 8,756 | | | | 4.6 | % | | | 2,743 | | | | 3.8 | % | | | 6,014 | | | | 5.1 | % |
Southeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Atlanta | | | 9 | | | | 2,484 | | | | 80 | % | | | 12,194 | | | | 6,028 | | | | 6,166 | | | | | | | | 11,809 | | | | 5,614 | | | | 6,195 | | | | | | | | 385 | | | | 3.3 | % | | | 414 | | | | 7.4 | % | | | (29 | ) | | | -0.5 | % |
| Savannah/Augusta | | | 2 | | | | 416 | | | | 100 | % | | | 2,812 | | | | 983 | | | | 1,830 | | | | | | | | 2,603 | | | | 980 | | | | 1,623 | | | | | | | | 210 | | | | 8.1 | % | | | 3 | | | | 0.3 | % | | | 207 | | | | 12.7 | % |
| Charlotte-Gastonia | | | 5 | | | | 1,100 | | | | 90 | % | | | 4,639 | | | | 2,764 | | | | 1,875 | | | | | | | | 4,524 | | | | 2,601 | | | | 1,923 | | | | | | | | 115 | | | | 2.5 | % | | | 162 | | | | 6.2 | % | | | (48 | ) | | | -2.5 | % |
| Columbia/Charleston | | | 6 | | | | 1,238 | | | | 70 | % | | | 4,904 | | | | 2,445 | | | | 2,459 | | | | | | | | 4,372 | | | | 2,339 | | | | 2,034 | | | | | | | | 531 | | | | 12.2 | % | | | 106 | | | | 4.5 | % | | | 426 | | | | 20.9 | % |
| Nashville | | | 8 | | | | 2,492 | | | | 74 | % | | | 12,345 | | | | 5,071 | | | | 7,273 | | | | | | | | 11,538 | | | | 4,916 | | | | 6,621 | | | | | | | | 807 | | | | 7.0 | % | | | 155 | | | | 3.2 | % | | | 652 | | | | 9.8 | % |
| Norfolk | | | 10 | | | | 3,161 | | | | 79 | % | | | 20,859 | | | | 6,706 | | | | 14,153 | | | | | | | | 19,355 | | | | 6,580 | | | | 12,775 | | | | | | | | 1,504 | | | | 7.8 | % | | | 126 | | | | 1.9 | % | | | 1,379 | | | | 10.8 | % |
| Raleigh-Durham-Chapel Hill | | | 7 | | | | 2,046 | | | | 76 | % | | | 8,141 | | | | 4,293 | | | | 3,848 | | | | | | | | 7,603 | | | | 4,083 | | | | 3,520 | | | | | | | | 538 | | | | 7.1 | % | | | 210 | | | | 5.1 | % | | | 328 | | | | 9.3 | % |
| Richmond — Petersburg | | | 3 | | | | 744 | | | | 80 | % | | | 4,017 | | | | 1,429 | | | | 2,588 | | | | | | | | 3,769 | | | | 1,355 | | | | 2,413 | | | | | | | | 248 | | | | 6.6 | % | | | 74 | | | | 5.4 | % | | | 174 | | | | 7.2 | % |
| Southeast other | | | 12 | | | | 2,617 | | | | 81 | % | | | 12,144 | | | | 5,772 | | | | 6,372 | | | | | | | | 11,051 | | | | 5,596 | | | | 5,455 | | | | | | | | 1,093 | | | | 9.9 | % | | | 176 | | | | 3.1 | % | | | 917 | | | | 16.8 | % |
| | | | | | | | | |
| | | | 62 | | | | 16,298 | | | | 79.0 | % | | | 82,055 | | | | 35,491 | | | | 46,564 | | | | 92.5 | % | | | 76,624 | | | | 34,065 | | | | 42,559 | | | | 91.1 | % | | | 5,431 | | | | 7.1 | % | | | 1,426 | | | | 4.2 | % | | | 4,005 | | | | 9.4 | % |
Texas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Austin-San Marcos | | | 11 | | | | 2,417 | | | | 94 | % | | | 13,001 | | | | 6,760 | | | | 6,241 | | | | | | | | 12,295 | | | | 6,416 | | | | 5,879 | | | | | | | | 706 | | | | 5.7 | % | | | 343 | | | | 5.4 | % | | | 362 | | | | 6.2 | % |
| Dallas-Fort Worth | | | 22 | | | | 5,847 | | | | 77 | % | | | 25,004 | | | | 12,688 | | | | 12,316 | | | | | | | | 22,815 | | | | 12,680 | | | | 10,136 | | | | | | | | 2,189 | | | | 9.6 | % | | | 9 | | | | 0.1 | % | | | 2,180 | | | | 21.5 | % |
| Houston — Galveston | | | 36 | | | | 9,570 | | | | 68 | % | | | 35,921 | | | | 18,958 | | | | 16,963 | | | | | | | | 31,729 | | | | 18,464 | | | | 13,265 | | | | | | | | 4,192 | | | | 13.2 | % | | | 494 | | | | 2.7 | % | | | 3,698 | | | | 27.9 | % |
| San Antonio | | | 9 | | | | 1,951 | | | | 91 | % | | | 9,055 | | | | 4,562 | | | | 4,494 | | | | | | | | 8,470 | | | | 4,273 | | | | 4,197 | | | | | | | | 586 | | | | 6.9 | % | | | 289 | | | | 6.8 | % | | | 297 | | | | 7.1 | % |
| Texas other | | | 3 | | | | 763 | | | | 65 | % | | | 2,713 | | | | 1,209 | | | | 1,504 | | | | | | | | 2,494 | | | | 1,180 | | | | 1,314 | | | | | | | | 219 | | | | 8.8 | % | | | 29 | | | | 2.5 | % | | | 190 | | | | 14.4 | % |
| | | | | | | | | |
| | | | 81 | | | | 20,548 | | | | 75.6 | % | | | 85,695 | | | | 44,177 | | | | 41,518 | | | | 93.7 | % | | | 77,803 | | | | 43,013 | | | | 34,791 | | | | 88.3 | % | | | 7,891 | | | | 10.1 | % | | | 1,164 | | | | 2.7 | % | | | 6,727 | | | | 19.3 | % |
West | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Denver | | | 22 | | | | 4,813 | | | | 84 | % | | | 26,955 | | | | 11,461 | | | | 15,494 | | | | | | | | 25,396 | | | | 11,175 | | | | 14,222 | | | | | | | | 1,559 | | | | 6.1 | % | | | 287 | | | | 2.6 | % | | | 1,272 | | | | 8.9 | % |
| Phoenix-Mesa | | | 21 | | | | 5,671 | | | | 93 | % | | | 31,347 | | | | 13,863 | | | | 17,484 | | | | | | | | 28,077 | | | | 13,288 | | | | 14,789 | | | | | | | | 3,270 | | | | 11.6 | % | | | 575 | | | | 4.3 | % | | | 2,695 | | | | 18.2 | % |
| Salt Lake City-Ogden | | | 4 | | | | 1,511 | | | | 86 | % | | | 7,237 | | | | 2,768 | | | | 4,468 | | | | | | | | 6,682 | | | | 2,750 | | | | 3,932 | | | | | | | | 555 | | | | 8.3 | % | | | 19 | | | | 0.7 | % | | | 536 | | | | 13.6 | % |
| Seattle | | | 4 | | | | 468 | | | | 59 | % | | | 2,142 | | | | 975 | | | | 1,168 | | | | | | | | 1,959 | | | | 919 | | | | 1,040 | | | | | | | | 183 | | | | 9.3 | % | | | 56 | | | | 6.1 | % | | | 127 | | | | 12.2 | % |
| West other | | | 8 | | | | 2,296 | | | | 86 | % | | | 10,926 | | | | 5,068 | | | | 5,858 | | | | | | | | 10,101 | | | | 4,685 | | | | 5,417 | | | | | | | | 825 | | | | 8.2 | % | | | 383 | | | | 8.2 | % | | | 442 | | | | 8.2 | % |
| | | | | | | |
| | | | 59 | | | | 14,759 | | | | 87.3 | % | | | 78,607 | | | | 34,135 | | | | 44,472 | | | | 94.0 | % | | | 72,215 | | | | 32,816 | | | | 39,400 | | | | 91.5 | % | | | 6,392 | | | | 8.9 | % | | | 1,319 | | | | 4.0 | % | | | 5,073 | | | | 12.9 | % |
| | | | | |
SAME STORE SALES TOTALS | | | 426 | | | | 123,385 | | | | 81.9 | % | | $ | 759,501 | | | $ | 317,147 | | | $ | 442,354 | | | | 94.3 | % | | $ | 707,292 | | | $ | 305,356 | | | $ | 401,936 | | | | 92.5 | % | | $ | 52,209 | | | | 7.4 | % | | $ | 11,792 | | | | 3.9 | % | | $ | 40,418 | | | | 10.1 | % |
| | | | | |
| Reconciliation to total rental and other property revenues and property operating expense per GAAP Income Statement (1) | | | 486,178 | | | | 254,748 | | | | 231,430 | | | | | | | | 318,599 | | | | 175,348 | | | | 143,251 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues and property operating expense per GAAP Income Statement | | $ | 1,245,679 | | | $ | 571,895 | | | $ | 673,784 | | | | | | | $ | 1,025,891 | | | $ | 480,704 | | | $ | 545,187 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Includes: (i) minority partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP. |
Supplemental Schedule 7
Selected Portfolio Performance Data
(unaudited)
PORTFOLIO SUMMARY
SAME STORE PERFORMANCE
| | | | | | | | | | | | | |
| | | SAME STORE PORTFOLIO |
| | | CORE | | NON-CORE | | TOTAL |
| Rent, average third quarter 2006 | | $ | 960 | | | $ | 639 | | | $ | 817 | |
| Occupancy, average third quarter 2006 | | | 94.8 | % | | | 93.3 | % | | | 94.2 | % |
| Operating Margin | | | 61.8 | % | | | 51.0 | % | | | 58.4 | % |
| Total number of properties | | | 224 | | | | 207 | | | | 431 | |
| Total number of units | | | 67,498 | | | | 57,045 | | | | 124,543 | |
| Effective Units | | | 59,128 | | | | 42,917 | | | | 102,045 | |
| Percent of total Same Store NOI | | | 72.6 | % | | | 27.4 | % | | | 100.0 | % |
| | | | | | | | | | | | | |
| 3rd Quarter 2006 vs. 3rd Quarter 2005 Change | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Revenue | | | 5.2 | % | | | 6.3 | % | | | 5.6 | % |
| Expenses | | | 2.9 | % | | | -4.7 | % | | | -0.1 | % |
| NOI | | | 6.7 | % | | | 19.7 | % | | | 10.0 | % |
| | | | | | | | | | | | | |
| Sequential, 3rd Quarter 2006 vs. 2nd Quarter 2006 Change | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Revenue | | | 1.0 | % | | | 1.6 | % | | | 1.2 | % |
| Expenses | | | 2.9 | % | | | 1.8 | % | | | 2.4 | % |
| NOI | | | -0.1 | % | | | 1.5 | % | | | 0.4 | % |
| | | | | | | | | | | | | |
| YTD September 2006 vs. YTD September 2005 Change | | | | | | | | | | | | |
| Revenue | | | 6.9 | % | | | 8.4 | % | | | 7.4 | % |
| Expenses | | | 5.2 | % | | | 1.7 | % | | | 3.9 | % |
| NOI | | | 8.0 | % | | | 15.8 | % | | | 10.1 | % |
TOTAL CONVENTIONAL PORTFOLIO: SUMMARY BY MARKET
SELECTED MARKETS
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended September 30, 2006 | | | Quarter Ended September 30, 2005 | |
| | | TOTAL CONVENTIONAL PORTFOLIO | | | TOTAL CONVENTIONAL PORTFOLIO | |
| Percent of Total Conventional NOI | | CORE | | | NON-CORE | | | TOTAL | | | CORE | | | NON-CORE | | | TOTAL | |
Top 20 Markets | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 Washington | | | 10.2 | % | | | 0.0 | % | | | 10.2 | % | | | 10.6 | % | | | 0.0 | % | | | 10.6 | % |
| 2 Los Angeles-Long Beach-Ventura | | | 9.0 | % | | | 0.0 | % | | | 9.0 | % | | | 7.6 | % | | | 0.0 | % | | | 7.6 | % |
| 3 New England | | | 7.2 | % | | | 0.0 | % | | | 7.2 | % | | | 7.2 | % | | | 0.0 | % | | | 7.2 | % |
| 4 Philadelphia | | | 6.3 | % | | | 0.0 | % | | | 6.3 | % | | | 6.3 | % | | | 0.0 | % | | | 6.3 | % |
| 5 Indianapolis/Fort Wayne | | | 0.0 | % | | | 5.4 | % | | | 5.4 | % | | | 0.0 | % | | | 4.3 | % | | | 4.3 | % |
| 6 Chicago | | | 4.7 | % | | | 0.3 | % | | | 5.0 | % | | | 4.7 | % | | | 0.3 | % | | | 5.0 | % |
| 7 Miami/Fort Lauderdale | | | 5.0 | % | | | 0.0 | % | | | 5.0 | % | | | 6.0 | % | | | 0.0 | % | | | 6.0 | % |
| 8 Orlando-Daytona | | | 3.9 | % | | | 0.3 | % | | | 4.2 | % | | | 3.6 | % | | | 0.3 | % | | | 3.9 | % |
| 9 Phoenix-Mesa | | | 2.9 | % | | | 0.6 | % | | | 3.5 | % | | | 2.5 | % | | | 0.5 | % | | | 3.0 | % |
| 10 Houston-Galveston | | | 0.0 | % | | | 3.3 | % | | | 3.3 | % | | | 0.0 | % | | | 2.4 | % | | | 2.4 | % |
| 11 Denver-Front Range | | | 3.0 | % | | | 0.2 | % | | | 3.2 | % | | | 2.9 | % | | | 0.2 | % | | | 3.1 | % |
| 12 New York | | | 3.1 | % | | | 0.0 | % | | | 3.1 | % | | | 2.8 | % | | | 0.0 | % | | | 2.8 | % |
| 13 Tampa-St. Petersburg | | | 2.4 | % | | | 0.6 | % | | | 3.0 | % | | | 2.1 | % | | | 0.5 | % | | | 2.6 | % |
| 14 Norfolk | | | 2.8 | % | | | 0.0 | % | | | 2.8 | % | | | 2.6 | % | | | 0.0 | % | | | 2.6 | % |
| 15 San Diego | | | 2.6 | % | | | 0.0 | % | | | 2.6 | % | | | 2.7 | % | | | 0.0 | % | | | 2.7 | % |
| 16 Dallas-Ft Worth | | | 0.0 | % | | | 2.4 | % | | | 2.4 | % | | | 0.0 | % | | | 1.8 | % | | | 1.8 | % |
| 17 Orange County-Riverside | | | 2.3 | % | | | 0.0 | % | | | 2.3 | % | | | 2.2 | % | | | 0.0 | % | | | 2.2 | % |
| 18 Baltimore | | | 1.6 | % | | | 0.0 | % | | | 1.6 | % | | | 1.7 | % | | | 0.0 | % | | | 1.7 | % |
| 19 Atlanta | | | 1.6 | % | | | 0.0 | % | | | 1.6 | % | | | 1.6 | % | | | 0.4 | % | | | 2.0 | % |
| 20 Nashville | | | 1.3 | % | | | 0.2 | % | | | 1.5 | % | | | 1.1 | % | | | 0.2 | % | | | 1.3 | % |
| | | | | | | | | | | | | | | | | | | |
| Subtotal Top 20 Markets | | | 69.7 | % | | | 13.3 | % | | | 83.0 | % | | | 68.3 | % | | | 11.0 | % | | | 79.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| All Other Markets (38 in 2006 and 50 in 2005) | | | 5.5 | % | | | 11.5 | % | | | 17.1 | % | | | 5.3 | % | | | 15.4 | % | | | 20.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total Conventional NOI | | | 75.2 | % | | | 24.8 | % | | | 100.0 | % | | | 73.6 | % | | | 26.4 | % | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Rent, average third quarter | | $ | 1,028 | | | $ | 644 | | | $ | 864 | | | $ | 847 | | | $ | 626 | | | $ | 821 | |
| Occupancy, average third quarter | | | 94.5 | % | | | 93.2 | % | | | 92.8 | % | | | 90.6 | % | | | 90.3 | % | | | 91.8 | % |
| Total number of properties | | | 275 | | | | 221 | | | | 496 | | | | 270 | | | | 296 | | | | 566 | |
| Total number of units | | | 82,773 | | | | 59,997 | | | | 142,770 | | | | 82,892 | | | | 77,435 | | | | 160,327 | |
| Effective Units | | | 71,428 | | | | 45,129 | | | | 116,557 | | | | 71,502 | | | | 58,813 | | | | 130,315 | |
| Average Home Value* | | $ | 290,858 | | | $ | 158,207 | | | $ | 236,527 | | | | | | | | | | | | | |
| REIS Growth Rate (4 year weighted average)** | | | 3.5 | % | | | 2.9 | % | | | 3.3 | % | | | | | | | | | | | | |
| Number of markets | | | 27 | | | | 31 | | | | 58 | | | | | | | | | | | | | |
| | |
| * | | Source: Claritas, based on 2005 data |
| |
| ** | | Source: REIS, based on Q1 2006 forecasted data |
Supplemental Schedule 8
Property Sales and Acquisition Activity
(unaudited)
THIRD QUARTER 2006 PROPERTY SALES ACTIVITY (dollars in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Number | | Number | | | | | | | | | | | | | | | | | | Aimco | | Aimco | | |
| | | of | | of | | Gross | | FCF | (1) | Property | | Net Sales | (2) | Gross | | Net | | Average |
| | | Properties | | Units | | Proceeds | | Yield | | Debt | | Proceeds | | Proceeds | | Proceeds | | Rent |
| |
| Conventional Non-Core | | | 7 | | | | 1,238 | | | $ | 64 | | | | 3.9 | % | | $ | 24 | | | $ | 32 | | | $ | 44 | | | $ | 25 | | | $ | 659 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Conventional Core | | | 1 | | | | 318 | | | | 27 | | | | 3.2 | % | | | 14 | | | | 13 | | | | 27 | | | | 13 | | | | 670 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affordable | | | 5 | | | | 610 | | | | 26 | | | | 3.5 | % | | | 21 | | | | 4 | | | | 19 | | | | 4 | | | | 985 | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Dispositions | | | 13 | | | | 2,166 | | | $ | 117 | | | | 3.6 | % | | $ | 59 | | | $ | 49 | | | $ | 90 | | | $ | 42 | | | $ | 752 | |
| |
YEAR-TO-DATE 2006 PROPERTY SALES ACTIVITY (dollars in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Number | | Number | | | | | | | | | | | | | | | | | | Aimco | | Aimco | | |
| | | of | | of | | Gross | | FCF | (1) | Property | | Net Sales | (2) | Gross | | Net | | Average |
| | | Properties | | Units | | Proceeds | | Yield | | Debt | | Proceeds | | Proceeds | | Proceeds | | Rent |
| |
| Conventional Non-Core | (3) | | 33 | | | | 8,267 | | | $ | 431 | | | | 5.5 | % | | $ | 181 | | | $ | 216 | | | $ | 338 | | | $ | 182 | | | $ | 696 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Conventional Core | (4) | | 1 | | | | 880 | | | | 178 | | | | 3.7 | % | | | 90 | | | | 84 | | | | 177 | | | | 89 | | | | 1,307 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affordable | | | 20 | | | | 2,557 | | | | 107 | | | | 5.3 | % | | | 80 | | | | 20 | | | | 62 | | | | 15 | | | | 704 | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Dispositions | | | 54 | | | | 11,704 | | | $ | 716 | | | | 5.0 | % | | $ | 351 | | | $ | 320 | | | $ | 577 | | | $ | 286 | | | $ | 684 | |
| |
| | |
| (1) | | Free Cash Flow (FCF) includes a $500 per unit deduction for capital replacements and is before debt service. FCF Yield is calculated as the FCF earned by the properties during the 12 months prior to their sale divided by the sales price. |
| |
| (2) | | Net Sales Proceeds are after repayment of existing debt, net working capital settlements and payment of transaction costs. |
| |
| (3) | | Includes the sale of two student housing properties with 1,222 units for the nine months ended September 30, 2006. |
| |
| (4) | | Includes the sale of the South Tower of the Flamingo South Beach property with 562 units; Aimco net proceeds include $5 million for a non-refundable option to purchase the North and Central Towers. |
THIRD QUARTER 2006 PROPERTY ACQUISITION ACTIVITY (dollars in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Number | | Number | | Gross | | | | |
| | | Ownership | | of | | of | | Purchase | | Property | | Average |
| | | Percent | | Properties | | Units | | Price | | Debt | | Rent |
| |
| Conventional | | | 100 | % | | | 2 | | | | 167 | | | $ | 31 | | | $ | 12 | | | $ | 947 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Student Housing | | | | | | | — | | | | — | | | | — | | | | — | | | | — | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Acquisitions | | | | | | | 2 | | | | 167 | | | $ | 31 | | | $ | 12 | | | $ | 947 | |
| |
YEAR-TO-DATE 2006 PROPERTY ACQUISITION ACTIVITY (dollars in millions) (1)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Number | | Number | | Gross | | | | |
| | | Ownership | | of | | of | | Purchase | | Property | | Average |
| | | Percent | | Properties | | Units | | Price | | Debt | | Rent |
| |
| Conventional | (2) | | 100 | % | | | 3 | | | | 491 | | | $ | 70 | | | $ | 36 | | | $ | 944 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Student Housing | (3) | | | | | | 2 | | | | 386 | | | | 22 | | | | 14 | | | | 632 | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Acquisitions | (4) | | | | | | 5 | | | | 877 | | | $ | 92 | | | $ | 50 | | | $ | 807 | |
| |
| | |
| (1) | | All property acquisitions occurred during the second and third quarters of 2006. |
| |
| (2) | | A property loan of approximately $7 million is expected to close in November 2006 for one of the two acquisitions completed in the third quarter. |
| |
| (3) | | One of the student housing properties was acquired at 100% ownership. The other student housing property was acquired at 33% through Aimco’s joint venture with CalSTRS. |
| |
| (4) | | Properties acquired are located in Pacifica, California, Tampa, Florida, Greenville, North Carolina, and Chico, California (through the CalSTRS joint venture). |
Supplemental Schedule 9
Capital Expenditures
Nine Months Ended September 30, 2006
(in thousands, except per unit data)
(unaudited)
All capital spending is classified as either Capital Replacements (“CR”), Capital Improvements (“CI”), casualties or redevelopment. Non-redevelopment and non-casualty capitalizable expenditures are apportioned between CR and CI based on the useful life of the capital item under consideration and the period 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.
The table below details Aimco’s share of actual spending, on both consolidated and unconsolidated real estate partnerships, for Capital Replacements, Capital Improvements, casualties and redevelopment for the nine months ended September 30, 2006. Per unit numbers are based on approximately 138,135 average units, including 120,312 conventional and 18,225 affordable units. Average units are weighted for the period and represent Effective Units excluding non-managed units. (1)
| | | | | | | | | |
| Capital Replacements Detail: | | Actual Amount | | | Per Unit | |
| Building and grounds | | $ | 18,061 | | | $ | 130 | |
| | | | | | | | | |
| Turnover related | | | 31,184 | | | | 225 | |
| | | | | | | | | |
| Capitalized site payroll and indirect costs | | | 10,889 | | | | 79 | |
| | | | | | | | | |
| | | | | | | |
Total Aimco’s share of Capital Replacements | | $ | 60,134 | | | $ | 434 | |
| | | | | | | |
| | | | | | | | | |
Capital Replacements: | | | | | | | | |
| Conventional | | $ | 54,845 | | | $ | 456 | |
| Affordable | | | 5,289 | | | | 290 | |
| | | | | | | |
Total Aimco’s share of Capital Replacements | | | 60,134 | | | $ | 434 | |
| | | | | | | |
| | | | | | | | | |
Capital Improvements: | | | | | | | | |
| Conventional | | | 59,854 | | | $ | 497 | |
| Affordable | | | 12,640 | | | | 694 | |
| | | | | | | |
Total Aimco’s share of Capital Improvements | | | 72,494 | | | $ | 524 | |
| | | | | | | |
| | | | | | | | | |
Casualties: | | | | | | | | |
| Conventional | | | 26,206 | | | | | |
| Affordable | | | 2,121 | | | | | |
| | | | | | | | |
Total Aimco’s share of Casualties (2) | | | 28,327 | | | | | |
| | | | | | | | |
| | | | | | | | | |
Redevelopment (see Schedule 10 for further project details): | | | | | | | | |
| Conventional | | | 113,836 | | | | | |
| Affordable | | | 49,803 | | | | | |
| | | | | | | | |
Total Aimco’s share of Redevelopment | | | 163,639 | | | | | |
| | | | | | | | |
| | | | | | | | | |
Total Aimco’s share of capital expenditures | | | 324,594 | | | | | |
| | | | | | | | |
| | | | | | | | | |
| Plus minority partners’ share of consolidated spending | | | 44,884 | | | | | |
| Less Aimco’s share of unconsolidated spending | | | (2,591 | ) | | | | |
| | | | | | | |
Capital expenditures per Consolidated Statement of Cash Flows | | $ | 366,887 | | | | | |
| | | | | | | | |
| | |
| (1) | | Average units calculated pro rata for the quarter based on acquisition and disposition timing. |
| |
| (2) | | A portion of expenditures related to casualty losses is reimbursed through insurance. |
Supplemental Schedule 10
Summary of Redevelopment Activity
Nine Months Ended September 30, 2006
(dollars in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Project Expenditures | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Aimco | | |
| | | | | | | Total | | Total | | | | | | | | | | | | | | Average | | Targeted |
| | | Number of | | Property | | Projected | | Inception to | | Year to Date | | Year to Date | | Ownership | | Return on |
| | | Properties | | Units | | 100% | | Date 100% | | 100% | | AIV% | | (3) | | Investment |
| | | | | | | | | | | | | |
CONVENTIONAL REDEVELOPMENT PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACTIVE REDEVELOPMENT PROJECTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Active redevelopment projects at 6/30/06 | | | 28 | | | | 13,860 | | | $ | 291.6 | | | $ | 144.9 | | | $ | 90.3 | | | $ | 79.8 | | | | 88 | % | | | | |
| Planned adjustments to approved projects | | | — | | | | — | | | | 27.9 | | | | — | | | | — | | | | — | | | | | | | | | |
| Projects completed during the period | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | n/a | | | | | |
| New redevelopment projects started during period | | | 9 | | | | 3,964 | | | | 105.5 | | | | 4.3 | | | | 4.7 | | | | 4.5 | | | | 97 | % | | | | |
| | | | | | | | | | | | | |
| Active redevelopment projects at 9/30/06 | | | 37 | | | | 17,824 | | | | 425.0 | | | | 149.2 | | | | 95.0 | | | | 84.3 | | | | 89 | % | | | 7.5 - 8.5 | % |
| Entitlement projects (1) | | | 3 | | | | 3,940 | | | | — | | | | 59.4 | | | | 18.7 | | | | 18.5 | | | | 99 | % | | | | |
| Costs on projects completed year to date | | | 1 | | | | | | | | | | | | | | | | 0.7 | | | | 0.7 | | | | 100 | % | | | | |
| Pre-construction and other activities (2) | | | | | | | | | | | | | | | | | | | 14.6 | | | | 10.3 | | | | 71 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL CONVENTIONAL | | | | | | | | | | | | | | | | | | | 129.0 | | | | 113.8 | | | | 88 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AFFORDABLE REDEVELOPMENT PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACTIVE REDEVELOPMENT PROJECTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Active redevelopment projects at 6/30/06 | | | 14 | | | | 2,084 | | | $ | 92.3 | | | $ | 69.3 | | | $ | 30.8 | | | $ | 30.5 | | | | 99 | % | | | | |
| Planned adjustments to approved projects | | | — | | | | — | | | | 11.8 | | | | — | | | | — | | | | — | | | | n/a | | | | | |
| Projects completed during the period | | | (2 | ) | | | (257 | ) | | | (13.2 | ) | | | (9.3 | ) | | | (6.2 | ) | | | (6.2 | ) | | | 100 | % | | | | |
| New redevelopment projects started during period | | | 1 | | | | 151 | | | | 5.4 | | | | — | | | | — | | | | — | | | | 0 | % | | | | |
| | | | | | | | | | | | | |
| Active redevelopment projects at 9/30/06 | | | 13 | | | | 1,978 | | | | 96.3 | | | | 60.0 | | | | 24.6 | | | | 24.3 | | | | 99 | % | | | | |
| Costs on projects completed year to date | | | | | | | | | | | | | | | | | | | 21.6 | | | | 21.6 | | | | 100 | % | | | | |
| Pre-construction and other activities (2) | | | | | | | | | | | | | | | | | | | 4.8 | | | | 3.9 | | | | 97 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL AFFORDABLE (4) | | | | | | | | | | | | | | | | | | | 51.0 | | | | 49.8 | | | | 98 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL REDEVELOPMENT EXPENDITURES | | | | | | | | | | | | | | | | | | $ | 180.0 | | | $ | 163.6 | | | | 91 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Entitlement projects consist of Lincoln Place (CA), Treetops (CA) and Springhill Lake (MD). Lincoln Place and Treetops are predominantly vacant and have December 31, 2005 book values of approximately $161 million and $73 million, respectively. |
| |
| (2) | | Pre-construction and other activities include consulting, legal, and capitalized labor costs, as well as some physical construction work. |
| |
| (3) | | Weighted average ownership at the time of the expenditures. As discussed in the Special Supplement our economic ownership of certain low-income housing tax credit partnerships has increased to 100% |
| |
| (4) | | Low-income housing tax credit projects account for approximately 97% of year-to-date 2006 Affordable project expenditures. As discussed in the Special Supplement our economic ownership of certain low-income housing tax credit partnerships has increased to 100% |
Supplemental Schedule 11
Apartment Unit Summary
As of September 30, 2006
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | Number of | | | Number of | | | Effective | | | Average | |
| | | Properties | | | Units | | | Units | | | Ownership | |
Conventional Real Estate Portfolio: | | | | | | | | | | | | | | | | |
| Wholly-owned Consolidated Core Properties | | | 167 | | | | 47,518 | | | | 47,518 | | | | 100 | % |
| Partially-owned Consolidated Core Properties | | | 100 | | | | 32,942 | | | | 23,165 | | �� | | 70 | % |
| Partially-owned Unconsolidated Core Properties | | | 8 | | | | 2,313 | | | | 745 | | | | 32 | % |
| | | | | | | | | | | | | |
| Sub-total Core Properties | | | 275 | | | | 82,773 | | | | 71,428 | | | | 86 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Wholly-owned Consolidated Non-Core Properties | | | 117 | | | | 33,513 | | | | 33,513 | | | | 100 | % |
| Partially-owned Consolidated Non-Core Properties | | | 101 | | | | 25,684 | | | | 11,341 | | | | 44 | % |
| Partially-owned Unconsolidated Non-Core Properties | | | 3 | | | | 800 | | | | 275 | | | | 34 | % |
| | | | | | | | | | | | | |
| Sub-total Non-Core Properties | | | 221 | | | | 59,997 | | | | 45,129 | | | | 75 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Total | | | 496 | | | | 142,770 | | | | 116,557 | | | | 82 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Aimco Capital Real Estate Portfolio: | | | | | | | | | | | | | | | | |
| Wholly-owned Consolidated Properties | | | 89 | | | | 11,836 | | | | 11,836 | | | | 100 | % |
| Partially-owned Consolidated Properties | | | 147 | | | | 15,812 | | | | 5,385 | | | | 34 | % |
| Partially-owned Unconsolidated Properties | | | 98 | | | | 11,531 | | | | 1,693 | | | | 15 | % |
| | | | | | | | | | | | | |
| Total | | | 334 | | | | 39,179 | | | | 18,914 | | | | 48 | % |
| | | | | | | | | | | | | |
Total Owned Real Estate Portfolio: | | | | | | | | | | | | | | | | |
| Wholly-owned Consolidated Properties | | | 373 | | | | 92,867 | | | | 92,867 | | | | 100 | % |
| Partially-owned Consolidated Properties | | | 348 | | | | 74,438 | | | | 39,891 | | | | 54 | % |
| Partially-owned Unconsolidated Properties | | | 109 | | | | 14,644 | | | | 2,713 | | | | 19 | % |
| | | | | | | | | | | | | |
| Total | | | 830 | | | | 181,949 | | | | 135,471 | | | | 74 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Management Contracts: | | | | | | | | | | | | | | | | |
| Property Managed for Third Parties | | | 42 | | | | 3,610 | | | | | | | | | |
| Asset-managed | | | 418 | | | | 39,278 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total | | | 460 | | | | 42,888 | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total Portfolio | | | 1,290 | | | | 224,837 | | | | | | | | | |
| | | | | | | | | | | | | | | |
Special Supplement to Third Quarter 2006 Earnings Release
Accounting for Tax Credit Arrangements
We sponsor certain partnerships that own and operate apartment properties that qualify for tax credits under Section 42 of the Internal Revenue Code and HUD subsidized rents under the Section 8 program. These partnerships acquire, develop and operate qualifying affordable housing properties and are structured to provide for the pass-through of tax credits and deductions to their partners. The tax credits are generally realized ratably over the first ten years of the tax credit arrangement and are subject to the partnership’s compliance with applicable laws and regulations for a period of 15 years. Typically, we are the general partner with a legal ownership interest of one percent or less. We market limited partner interests of at least 99 percent to unaffiliated institutional investors (“tax credit investors” or “investors”) and receive a syndication fee from each investor upon such investor’s admission to the partnership. At inception, each investor agrees to fund capital contributions to the partnerships. We agree to perform various services to the partnerships in exchange for fees over the expected duration of the tax credit service period. The related partnership agreements generally require adjustment of each tax credit investor’s required capital contributions if actual tax benefits to such investor differ from projected amounts.
In connection with our adoption of FIN 46 as of March 31, 2004, we determined that the partnerships in these arrangements are variable interest entities and, where we are general partner, we are the primary beneficiary that is required to consolidate the partnerships. During the period April 1, 2004, through June 30, 2006, we accounted for these partnerships as consolidated subsidiaries with a non-controlling interest (minority interest) of at least 99 percent. Accordingly, we allocated to the minority interest substantially all of the income or losses of the partnerships, including the effect of fees that we charged to the partnerships. In the third quarter of 2006, in consultation with our independent auditors, we determined that we are required to revise our accounting treatment for tax credit transactions to comply with the requirements of FIN 46. We also determined that our accounting treatment did not fully reflect the economic substance of the arrangements wherein we possess substantially all of the economic interests in the partnerships. Based on the contractual arrangements that obligate us to deliver tax benefits to the investors, and that entitle us through fee arrangements to receive substantially all available cash flow from the partnerships, we concluded that these partnerships are most appropriately accounted for by us as wholly owned subsidiaries. We also concluded that capital contributions received by the partnerships from tax credit investors represent, in substance, consideration that we receive in exchange for our obligation to transfer tax credits and other tax benefits to the investors. We have concluded that these receipts are appropriately recognized as income in our consolidated financial statements upon transfer of expected tax benefits to the investors.
In summary, our revised accounting treatment recognizes the income generated by the underlying real estate based on our economic interest in the partnerships. Proceeds received in exchange for the transfer of the tax credits are recognized as revenue proportionately as the tax benefits are delivered to the tax credit investors. Syndication fees and related costs are recognized in income upon completion of the syndication effort. Other direct and incremental costs incurred in structuring these arrangements are deferred and amortized over the expected duration of the arrangement in proportion to the recognition of related income. Investor contributions in excess of recognized revenue are reported as deferred income in our consolidated balance sheet. Our increased interest in the partnerships affects certain proportionate share amounts reported in the accompanying supplemental schedules.
Special Supplement to Third Quarter 2006 Earnings Release (continued)
We recognized the cumulative effect of this revised accounting treatment in our third quarter 2006 financial statements. The cumulative impact of the revised accounting treatment on net income and FFO are reflected in the table below (in thousands):
| | | | | | | | | | | | | |
| | | Increase (Decrease) in Reported Amount | |
| | | April 1, 2004 | | | | | | | Cumulative | |
| | | through | | | Six Months | | | Adjustment | |
| | | December 31, | | | Ended | | | Reflected in Third | |
| | | 2005 | | | June 30, 2006 | | | Quarter 2006 | |
| Activity fees and asset management revenues | | $ | (1,542 | ) | | $ | 962 | | | $ | (580 | ) |
| | | | | | | | | | | | | |
| Property operating expenses | | | (545 | ) | | | (287 | ) | | | (832 | ) |
| Activity and asset management expenses | | | (1,141 | ) | | | (511 | ) | | | (1,652 | ) |
| General and administrative expenses | | | (355 | ) | | | (153 | ) | | | (508 | ) |
| Other expenses (income), net | | | (1,013 | ) | | | (179 | ) | | | (1,192 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Operating income | | | 1,512 | | | | 2,092 | | | | 3,604 | |
| | | | | | | | | | | | | |
| Minority interest in consolidated real estate partnerships | | | (9,030 | ) | | | (10,524 | ) | | | (19,554 | ) |
| Minority interest in Aimco Operating Partnership | | | 734 | | | | 812 | | | | 1,546 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Net income | | | (6,784 | ) | | | (7,620 | ) | | | (14,404 | ) |
| | | | | | | | | | | | | |
| Depreciation of rental property | | | 7,377 | | | | 11,454 | | | | 18,831 | |
| Minority interest in Aimco Operating Partnership’s share of depreciation adjustment | | | (737 | ) | | | (1,136 | ) | | | (1,873 | ) |
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Funds From Operations | | $ | (144 | ) | | $ | 2,698 | | | $ | 2,554 | |
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Glossary
GLOSSARY OF NON-GAAP FINANCIAL AND OPERATING MEASURES: Financial and operating measures found in the Earnings Release and Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with generally accepted accounting principles, or GAAP. These measures are defined below and, where appropriate, reconciled on the accompanying Supplemental Schedules to the most comparable GAAP measures.
ACQUISITION PROPERTIES: Properties that have not reached a stabilized level of occupancy during both the current and comparable prior year period.
AFFORDABLE PROPERTIES: Affordable properties benefit from government programs designed to pay rental income on behalf of people with low or moderate incomes and includes properties that were owned for all periods presented.
ADJUSTED FUNDS FROM OPERATIONS (AFFO): AFFO is FFO (diluted) less Capital Replacement expenditures, plus non-cash charges for redemption related preferred stock issuance costs and impairment losses, all of which are adjusted for the Aimco operating partnership’s share (AIMCO Properties, L.P.). Similar to FFO, AFFO is helpful to investors in understanding Aimco’s performance because it captures 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. Please see Supplemental Schedule 1 for AFFO data reconciled to net income as determined in accordance with GAAP.
CAPITAL IMPROVEMENTS (CI): CI expenditures include all non-redevelopment capital expenditures that are made to enhance the value, profitability or useful life of an asset from its original purchase condition. This category combines certain of Aimco’s prior capital expenditure categories. This new classification, along with Capital Replacements, is intended to be simpler to apply, allow more discrete differentiation between categories, facilitate sound economic decisions, and assist investors and analysts in better understanding capital spending. CI expenditures are a component of capital expenditures in the GAAP Statement of Cash Flows.
CAPITAL REPLACEMENTS (CR): CR expenditures do not increase the value, profitability or useful life of an asset from its original purchase condition. They represent the share of expenditures that are deemed to replace the consumed portion of acquired capital assets. CR expenditures are deducted in the calculation of AFFO and FCF. Please refer to Schedule 9 for further detail. CR expenditures are a component of Capital expenditures in the GAAP Statement of Cash Flows.
CASUALTY CAPITAL EXPENDITURES: Casualty capital expenditures represent capitalized costs incurred in connection with casualty losses and are associated with the restoration of the asset. A portion of the restoration costs is reimbursed by insurance carriers based on deductibles associated with each loss.
CORE PROPERTIES: Conventional properties located in selected markets that Aimco intends to hold and improve over the long-term.
EFFECTIVE UNITS: Unit count at 100% ownership multiplied by Aimco’s ownership share.
FREE CASH FLOW (FCF): FCF measures profitability of operations and is prior to the cost of capital. FCF is comprised of AFFO (defined above), with adjustments to add back interest expense, minority interest in Aimco Operating Partnership, and preferred dividends. Because Aimco has unconsolidated real estate interests, it is useful for management and investors to understand, in addition to consolidated cash flows, cash flows related to Aimco’s unconsolidated real estate holdings. Please see Supplemental Schedule 2 for FCF data reconciled to net income as determined in accordance with GAAP.
Because Aimco has substantial unconsolidated real estate interests, it is useful for management and investors to understand, in addition to consolidated cash flows, cash flows related to Aimco’s unconsolidated real estate holdings. Please see Supplemental Schedule 2 for FCF data reconciled to net income as determined in accordance with GAAP.
Glossary (continued)
FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance defined by the National Association of Real Estate Investment Trusts (NAREIT) as net income, computed in accordance with GAAP, excluding gains from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Aimco computes FFO for all periods presented in accordance with the guidance set forth by NAREIT’s April 1, 2002 White Paper. Aimco calculates FFO (diluted) by subtracting redemption related preferred stock issuance costs and dividends on preferred stock and adding back dividends/ distributions on dilutive preferred securities. FFO is helpful to investors in understanding Aimco’s performance because it captures 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 is comparable with that of other real estate investment trusts. Please see Supplemental Schedule 1 for FFO data reconciled to net income as determined in accordance with GAAP.
NON-CORE PROPERTIES: Properties located in markets that are not considered selected markets or in less favored locations within selected markets, which Aimco intends to hold for the intermediate term.
OTHER EXPENSES (INCOME), NET: Other expenses (income), net includes tax provision/benefit, franchise taxes, risk management activities related to our unconsolidated partnerships and partnership expenses (partnership level expenses incurred directly or indirectly for services such as audit, tax and legal.)
OTHER PROPERTIES: Conventional properties that have significant rent control restrictions, University Housing properties that have been owned for more than one year and properties that are not multi-family such as commercial properties or fitness facilities.
REDEVELOPMENT PROPERTIES: Properties where (1) a substantial number of available units have been vacated for major renovations or have not been stabilized in occupancy for at least one year as of the earliest period presented, or (2) other significant renovation, such as exteriors, common areas or unit improvements (done upon lease expirations), is underway or has been complete for less than one year, as of the earliest period presented. In both cases the properties have been removed from the Same Store portfolio.
SAME STORE: Same Store is used commonly to describe Conventional properties managed by Aimco, in which Aimco’s ownership exceeds 10% and that have reached a stabilized level of occupancy during both the current and comparable prior year period. Properties classified as held for sale are not included in Same Store. These results measure operating performance without variations caused by investment transactions. Aimco provides data for consolidated Same Store properties as well as its proportionate share of consolidated and unconsolidated Same Store properties. To ensure comparability, the information for all periods shown is based on current period ownership. Please see Supplemental Schedules 6a through 6c for Same Store data reconciled to rental and other property revenues and property operating expense as determined in accordance with GAAP.
