AIMCO 3rd Quarter 2004
Denver, Colorado – November 4, 2004
Apartment Investment and Management Company
Announces Third Quarter 2004 Results
SUMMARY FINANCIAL RESULTS Apartment Investment and Management Company (Aimco) (NYSE:AIV) announced third quarter 2004 results including:
| Net income was $163.2 million, compared with $40.6 million in the third quarter 2003. The $122.6 million increase in net income is primarily a result of an increase in net gains on dispositions of real estate (net of impairment losses, income tax and minority interests) totaling $151.6 million, somewhat offset by $21.4 million lower operating income in the third quarter 2004 compared with the third quarter 2003. Earnings per share (EPS) was $1.48 on a diluted basis, compared with $0.15 in the third quarter 2003, based on net income attributable to common shareholders. | ||||
| Funds from operations (diluted) (FFO; a non-GAAP financial measure defined in the glossary in the Supplemental Information (the Glossary)) was $73.8 million, or $0.78 per share, compared with $77.0 million, or $0.80 per share, in the third quarter 2003. These FFO results were calculated in accordance with the definition of FFO prescribed by the National Association of Real Estate Investment Trusts (NAREIT). | ||||
| Adjusted funds from operations (diluted) (AFFO; a non-GAAP financial measure defined in the Glossary) was $62.2 million, or $0.66 per share, compared with $63.7 million, or $0.66 per share, in the third quarter 2003. AFFO includes deductions of $0.23 and $0.20 per share for capital replacement expenditures in the third quarter 2004 and third quarter 2003, respectively. | ||||
DILUTED PER SHARE RESULTS
| Third Quarter | Year to Date | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| Earnings — EPS | $ | 1.48 | $ | 0.15 | $ | 1.34 | $ | 0.51 | ||||||||
| Funds from operations — FFO | $ | 0.78 | $ | 0.80 | $ | 2.07 | $ | 2.52 | ||||||||
| FFO before impairment and preferred redemption charges | $ | 0.89 | $ | 0.86 | $ | 2.21 | $ | 2.69 | ||||||||
| Adjusted funds from operations — AFFO | $ | 0.66 | $ | 0.66 | $ | 1.69 | $ | 2.01 | ||||||||
Third quarter FFO per share of $0.78 includes ($0.11) for impairment and Topic-D-42 charges and a net benefit of $0.22 from transactional activity and storm related charges. Excluding the effect of these items, third quarter FFO would have been $64 million, or $0.67 per share, meeting Aimco’s guidance for the quarter, and AFFO would have been $45 million, or $0.45 per share, less than Aimco’s guidance. Details of these items are listed below:
| • | $0.11 per share in charges related to the treatment of issuance costs associated with preferred share redemptions (commonly referred to as Topic D-42 charges) and impairment losses on real estate assets sold or held for sale. These charges are considered in the NAREIT definition of FFO but are excluded in Aimco’s guidance due to the unpredictable timing of transactions. This includes $0.02 per share for Topic D-42 charges associated with the redemptions and exchanges of the 9.0% Class N and 9.0% Class O preferred stocks and $0.09 per share for impairment charges associated with non-core properties held for sale. These charges are added back in the calculation of AFFO. | |||
| • | $0.32 per share gain from the sale of a vacant land parcel suitable for development associated with the Bay Club property in Aventura, Florida. | |||
| • | $0.03 per share in charges on other transactional activity including payment of a premium associated with the redemption of $50 million of the Class N preferred stock and write-off of deferred and prepayment costs related to retiring debt with proceeds from property sales and property refinancings. | |||
| • | $0.07 per share in charges incurred as a result of hurricanes and severe storms that affected Florida and surrounding areas. | |||
FFO and AFFO PER SHARE RESULTS | ||||
FFO as reported (in accordance with NAREIT definition) | $ | 0.78 | ||
| Addback: | ||||
| Redemption related preferred stock issuance costs (Topic D-42); (Classes N & O) | 0.02 | |||
| Impairment loss on real estate assets sold or held for sale (NAREIT definition) | 0.09 | |||
FFO before impairment and Topic D-42 Charges | $ | 0.89 | ||
| Adjust for transactional net gains and storm-related charges | ||||
| Land sale gain | (0.32 | ) | ||
| Redemption premium on Class N | 0.01 | |||
| Debt charges (including prepayment penalties) | 0.02 | |||
| Hurricane/storm charges | 0.07 | |||
FFO after transactional net gains and storm-related charges | $ | 0.67 | ||
| FFO before impairment and Topic D-42 Charges | $ | 0.89 | ||
| Less capital replacements | (0.23 | ) | ||
AFFO as reported | $ | 0.66 | ||
| Subtract: | ||||
| Adjust for transactional net gains and storm- related charges, net of rounding | (0.21 | ) | ||
AFFO after transactional net gains and storm-related charges | $ | 0.45 | ||
Management Comments
Chairman and Chief Executive Officer Terry Considine comments: “In operations, our rental revenue continues to improve. In our same store portfolio, improvements were widespread with increases year-over-year in 23 of Aimco’s 40 reported markets and a narrowing of the decline in same store portfolio revenue to less than $2 million or 0.7%. Sequentially, there were increases in 37 of the 40 markets and a portfolio wide increase of almost 4% or $10 million. This is due, in part, to seasonality and better markets; it is also due, in part, to improving Aimco operations as the result of hard work by Jeff Adler and his team. While revenues are improving, we have work to do in controlling expenses which were inflated everywhere by the high number of move-ins and, in Florida and the Southeast, by hurricanes. In this latter regard, special thanks are due to our property teams for their hard work to keep our residents safe and to limit damages in the face of the record number of hurricanes and tropical storms.”
Mr. Considine continues: “Also during the third quarter, we undertook a number of transactions that advanced our portfolio management strategy. Under the direction of Harry Alcock, our chief investment officer, Aimco completed property dispositions totaling nearly $600 million including strategic sales of three core properties to condo converters for cap rates averaging 4.1%. Aimco reinvested a portion of sales proceeds by acquiring properties in desirable markets such as New York and Miami at higher expected returns.”
“Paul McAuliffe, our chief financial officer, used the balance of sales proceeds to reduce total debt by $376 million during the quarter. In addition, Paul replaced or exchanged $236 million in preferred stock reducing the annual preferred dividends by almost $2 million. On Tuesday of this week, Paul completed the restructure of our corporate line and term debt increasing capacity and reducing interest costs by 120 basis points.”
Business Components — Conventional Operations and Aimco Capital
CONVENTIONAL REAL ESTATE OPERATIONS — Conventional real estate operations include Aimco’s diversified portfolio of market rate apartment communities. At quarter end, this portfolio had 611 properties with 169,162 units in which Aimco had a weighted average 80% ownership. During the third quarter 2004, conventional real estate operations generated free cash flow (FCF; a non-GAAP financial measure defined in the Glossary and presented and reconciled to GAAP on Supplemental Schedule 2) of $126.3 million. Conventional operations also generated property management income of $1.6 million, principally from unconsolidated partnerships.
“Same Store” Results
The “Same Store” portfolio is a sub-set of total conventional properties. In the third quarter 2004, the “Same Store” portfolio included 539 communities with 120,852 effective units based on Aimco’s weighted average ownership of 79.9% (see Supplemental Schedules 6a through 7). Third quarter 2004 revenue from the “Same Store” portfolio was $260.3 million compared with
$262.1 million in the third quarter 2003, a decline of $1.8 million or 0.7%. Comparing the third quarter 2004 with the third quarter 2003, the “Same Store” portfolio experienced flat occupancy at 92.9% and an $8 per unit decline in average rent from $722 to $714. Lower net rental income was somewhat offset by $2.0 million in lower bad debt. “Same Store” expenses of $117.4 million increased by $6.8 million, or 6.1%, compared with the third quarter 2003. Increased expenses were primarily related to efforts to increase occupancy and improve the properties’ physical appearance including expenditures related to unit turnover, marketing, personnel and repairs and maintenance. Expenses also increased due to $1.2 million of uninsured hurricane and storm related expenses. These increased expenses were partially offset by lower property taxes. “Same Store” portfolio net operating income was $142.9 million for the third
SAME STORE OPERATING RESULTS (1)
| Third Quarter | Sequential | |||||||||||||||||||
| 2004 | 2003 | Variance | 2nd Qtr | Variance | ||||||||||||||||
| Same Store Operating Measures: | ||||||||||||||||||||
| Average Physical Occupancy | 92.9 | % | 92.9 | % | — | 87.9 | % | +500 | bp | |||||||||||
| Average Rent/unit | $ | 714 | $ | 722 | -1.1 | % | $ | 724 | -1.4 | % | ||||||||||
| Total Same Store | ||||||||||||||||||||
| Revenue | $ | 260.3 | $ | 262.1 | -0.7 | % | $ | 250.5 | 3.9 | % | ||||||||||
| Expenses | (117.4 | ) | (110.6 | ) | 6.1 | % | (109.5 | ) | 7.2 | % | ||||||||||
| NOI ($mm) | $ | 142.9 | $ | 151.5 | -5.6 | % | $ | 141.0 | 1.3 | % | ||||||||||
(1) Aimco reports occupancy as of the 25th of the month. Average occupancy for a quarter is the arithmetic average of the three month end occupancies. Average rent per unit is calculated based on average occupancy for the quarter. In the third quarter, the substantial increase in occupancy resulted in a distortion of average rent per unit because month end occupancy was higher than average daily occupancy. If average occupancy had been calculated on a daily average, third quarter occupancy would have been 90.7% and average rent per unit $731.
quarter 2004, down 5.6% from the third quarter 2003. Excluding the effect of the uninsured storm-related costs, “Same Store” net operating income would have been $144.1 million, down 4.9% from the third quarter 2003.
Comparing “Same Store” results on a sequential basis, total revenue increased $9.8 million in the third quarter 2004 compared with the second quarter 2004, driven primarily by a 5.0 percentage point increase in average occupancy from 87.9% to 92.9% partially offset by a $10 decrease in average rent per unit and increased bad debt associated with higher seasonal move-out activity. Expenses increased $7.9 million due primarily to higher resident turnover, marketing and personnel costs associated with increased occupancy, seasonal maintenance, and hurricane and storm related damage, somewhat offset by lower property taxes. Net operating income increased $1.9 million, or 1.3%, on a sequential basis. Excluding the effect of the uninsured storm-related costs, “Same Store” net operating income would have increased 2.2% on a sequential basis, meeting Aimco’s “Same Store” guidance.
AIMCO CAPITAL — Aimco Capital oversees affordable property operations, asset management and transactional activities, and is led by a management team dedicated to this sector. Aimco is among the largest owners and operators of affordable properties in the United States. During the third quarter 2004, affordable property operations included 453 properties with 55,212 units.
Aimco has a weighted average 39% ownership in its affordable properties. Occupancy and rents in the affordable sector were stable and averaged 94% and $637, respectively, in the third quarter 2004, consistent with the first half of 2004. Aimco Capital generated net operating income of $23.0 million from property operations. Aimco Capital also generated property management income of $4.7 million and contributed activity and asset management income of $3.6 million.
Portfolio Management and Redevelopment Activity
ACQUISITIONS — Aimco made four acquisitions during the third quarter 2004 for a total purchase price of $128 million. The properties include: Bay Parc Plaza, a 471-unit high-rise built in 2000, located in Miami, Florida purchased for $64 million; two properties located in Manhattan, including a 200-unit high-rise located on West 73rd Street and a 20-unit property located on East 89th Street, purchased for $51 million and $3.4 million, respectively; and Talbot Woods, a 121-unit garden community located in Middleboro, Massachusetts purchased for $10 million. During the third quarter Aimco also purchased for an aggregate of $5.5 million additional limited partnership interests in 71 partnerships that own 134 properties.
DISPOSITIONS — Strategic sales: Aimco completed three strategic property sales for gross proceeds of $473 million (Aimco share $414 million) at an average 4.1% cap rate and $207,000 per unit. Aimco’s share of net proceeds from strategic property sales after payment of property debt and transaction costs was $239 million. “Strategic sales” include sales of properties suitable for conversion to condominiums, allowing Aimco to take advantage of current market conditions and obtain favorable pricing. These sales included: Warner Center, a 1,279-unit garden community located in Woodland Hills, California; Bay Club, a 702-unit high-rise located in Aventura, Florida; and River Reach a 298-unit garden community located in Jacksonville, Florida.
Non-core sales: Aimco regularly reviews its portfolio to identify properties that do not meet its long-term investment criteria. Aimco considers these properties as “Non-Core” (defined in the Glossary) and seeks to hold them over the intermediate term.
In addition to strategic sales dicussed above, Aimco sold five non-core conventional properties and 14 affordable properties with 1,023 and 1,847 units, respectively, in the third quarter 2004 for $109 million in gross proceeds (Aimco share $65 million). Aimco’s share of net proceeds after payment of property debt and transaction costs was $37 million. See Supplemental Schedule 8 for additional information on disposition activity.
GAIN ON DISPOSITIONS — Aimco’s property dispositions resulted in total gains on dispositions of real estate (including gains from sales of unconsolidated entities, land sale gains and discontinued operations), net of related taxes, of $201.2 million for the third quarter 2004, compared with a gain of $23.6 million for the third quarter 2003.
REDEVELOPMENT ACTIVITY — At quarter end, Aimco’s Redevelopment and Construction Services groups had 37 projects at various stages of redevelopment, including 26 conventional projects and 11 affordable projects. Further information on redevelopment projects is provided in Supplemental Schedule 10.
Additional Financial Information
PROPERTY MANAGEMENT INCOME — Income from property management is generated from management of properties in which Aimco has unconsolidated interests. Property management income was $6.3 million in the third quarter 2004 compared with $7.7 million in the third quarter 2003. Property management income declined primarily due to sales of unconsolidated properties that generated management income.
ACTIVITY FEE AND ASSET MANAGEMENT INCOME — Activity fees are generated from transactional activities including dispositions, refinancings, tax credit syndications and redevelopment, and are earned primarily by Aimco Capital. Asset management income is earned by Aimco Capital from the financial management of properties, rather than management of day-to-day operations. Activity fee and asset management income from both conventional and Aimco Capital operations was $3.7 million in the third quarter 2004 compared with $1.3 million in the third quarter 2003. The amount of this income may vary each quarter depending upon the nature and timing of transactional activity.
INTEREST INCOME — Interest income (which includes transactional accretion income of $2.5 million) was $10.2 million for the third quarter, an increase of $5.2 million compared with the third quarter 2003. The increase is primarily due to the accretion and a higher notes receivable balance in the third quarter 2004 compared with the third quarter 2003. Interest income is generated from notes receivable totaling $206.5 million at September 30, 2004.
DEBT ACTIVITY — During the third quarter 2004, Aimco closed 13 mortgage loans, including 12 refinancings of existing mortgage debt and one new mortgage on an acquired property. Total proceeds were $381.4 million at a weighted average interest rate of 4.49%. After repayment of existing debt, transaction costs, distributions to limited partners and funding new debt on the acquisition totaling $294.6 million, Aimco’s share of net proceeds was $86.8 million.
During the third quarter 2004 Aimco reduced its variable rate corporate debt by $210.2 million from $628.6 million to $418.4 million including a payoff of the $93 million term loan associated with the Casden merger and a $117.2 million pay down of the revolving credit facility.
CORPORATE DEBT MODIFICATION — On November 4, 2004 Aimco modified its term loan and revolving credit facility. The modification provides a lower interest rate spread, extended maturity dates, and more operating and financial flexibility. The interest rate spread on the new term loan and revolving credit facility is reduced on average to 190 basis points over LIBOR compared with the old term loan and revolving credit facility at 310 basis points over LIBOR. Assuming an average outstanding balance of $300 million on the term loan and $200 million on the revolving credit facility, the modification will result in annualized interest savings of $6.0 million. Capacity on the new revolving credit facility is $450 million compared with $445 million on the old facility and the new term loan was increased to $300 million from $250 million. Improved terms include 95% payout on the common dividend as a percent of FFO, compared with 90% provided for in the previous term loan and revolving credit facility, and the ability to apply up to 80% of net asset sale proceeds to repurchase common stock. Completion of the corporate debt modification will result in a fourth quarter 2004 charge of $1.1 million for unamortized financing costs.
Total consolidated property debt decreased by $201 million during the quarter primarily as a result of property sales. Please refer to Schedule 5 of the Supplemental Information for more detail on debt activity.
INTEREST EXPENSE — Consolidated interest expense was $95.9 million for the third quarter 2004, an increase of $9.9 million from $86.0 million in the third quarter 2003. The increase in interest expense is primarily the result of: (i) $4.7 million due to increased property debt balances, partially offset by a lower weighted average rate on property debt (ii) $3.2 million related to higher average corporate debt balances; and (iii) $1.9 million in lower capitalized interest.
PREFERRED STOCK ACTIVITY — As previously announced, during the third quarter Aimco completed the public offering of 3.45 million shares of newly issued 8.0% Class V Cumulative Preferred Stock for gross proceeds of $86.25 million. Proceeds from this offering were used to: (i) redeem 2 million shares of 9.0% Class N Convertible Cumulative Preferred Stock (“Class N”) with a liquidation preference of $50 million; (ii) redeem 1.45 million shares of 8.75% Class D Cumulative Preferred Stock with a liquidation preference of $36.25 million. This Class N redemption was made on September 30, 2004 and the Class D redemption will be made November 5, 2004. There will be a $1.3 million Topic D-42 charge in the fourth quarter 2004 associated with the Class D partial redemption.
In addition, Aimco completed the exchange of 2 million shares of Aimco’s 9.0% Class N with a $50 million liquidation preference for an equal amount of newly issued 8.5% Class X Cumulative Convertible Preferred Stock (“Class X”). The Class X is redeemable on or after March 31, 2006 at its liquidation preference. Aimco also completed the exchange of 1.9 million shares of Aimco’s 9.0% Class O Cumulative Convertible Preferred Stock with a $100 million liquidation preference for an equal amount of newly issued 8.1% Class W Cumulative Convertible Preferred Stock (“Class W”). The Class W is redeemable on or after September 30, 2007 at 102% of liquidation preference. In combination, this preferred stock activity is expected to generate savings on preferred dividends of $1.9 million on an annualized basis.
G&A — General and administrative expenses for the third quarter 2004 of $18.8 million were up compared with $10.9 million in the third quarter 2003, $17.6 million in the second quarter 2004 and $18.3 million in the first quarter 2004. The year-over-year increase is primarily due to: $6.3 million of higher compensation related to increased staffing levels, merit increases and variable compensation; $3.2 million related to increased health insurance costs and the effect of a favorable change in our claims incurred in the third quarter of 2003; somewhat offset by $1.9 million lower consulting, legal and compliance costs.
OTHER INCOME (EXPENSE), NET — Other income (expense), net was $0.2 million for the third quarter 2004 compared with $2.3 million in the third quarter 2003. This line item primarily includes income tax provisions/benefits, partnership expenses and risk management activities related to unconsolidated partnerships. The $2.1 million net change in the third quarter 2004 compared with the third quarter 2003 is primarily due to a lower income tax benefit and the effect of costs related to hurricane and storm damage at unconsolidated properties.
Outlook
For the fourth quarter 2004, FFO is forecast to range from $0.68 to $0.72 per share, and AFFO is forecast to range from $0.54 to $0.58 per share. The fourth quarter FFO forecast includes $0.01 per share charge for Topic D-42 preferred stock issuance costs for the Class D redemption and $0.01 per share for the write off of deferred debt costs associated with Aimco’s corporate debt modification. Before these charges, the FFO forecast would be $0.70 to $0.74
per share. For the full year 2004, FFO is forecast to range from $2.75 to $2.79 per share and AFFO is forecast to range from $2.23 to $2.27 per share. Please refer to the Outlook Schedule for more detail on the fourth quarter and full year 2004, which follows the Consolidated Financial Statements in this release.
Dividends on Common Stock
As announced on October 29, 2004, 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, 2004, payable on November 30, 2004 to stockholders of record on November 19, 2004. The dividend represents 91% of AFFO (diluted) and 77% of FFO (diluted), on a per share basis, for the quarter ended September 30, 2004 and a 6.6% annualized yield based on the $36.52 closing price of Aimco’s Class A Common Stock on October 28, 2004.
Earnings Conference Call
Please join Aimco management for the Third Quarter 2004 earnings conference call to be held Thursday, November 4, 2004 at 3:00 p.m. Eastern Time. You may join the conference call through an Internet audiocast via Aimco’s Website atwww.aimco.com/about/financial/3Q2004.asp, then click on the Webcast link. Alternatively, you may join the conference call by telephone by dialing 800-218-0713, or 303-262-2075 for international callers. Please call approximately five minutes before the conference call is scheduled to begin and indicate that you wish to join the Apartment Investment and Management Company Third Quarter 2004 earnings conference call. 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 800-405-2236 (303-590-3000 for international callers) and using access code 11008844#.
Supplemental Information
The Supplemental Information referenced in this release is available at Aimco’s Website at the link www.aimco.com/about/financial/3Q2004.asp 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. These forward-looking statements are based on certain risks and uncertainties, including but not limited to Aimco’s ability to improve upon current occupancy, rent levels and “Same Store” results and the economic environment in which Aimco operates. Actual results may differ materially from those described in these forward-looking statements and will be affected by a variety of risks and factors including, without limitation: national and local economic conditions; the general level of interest rates; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; financial risks, including the risk that Aimco’s cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including variations of real estate values and the general economic climate in local markets and competition for tenants in such markets; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; litigation,
including costs associated with prosecuting or defending claims and any adverse outcomes; and possible environmental liabilities, including costs that may be incurred due to necessary remediation of contamination or properties presently owned or previously owned by Aimco. 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 owning and operating a geographically diversified portfolio of apartment communities through 21 regional operating centers. Aimco, through its subsidiaries, operates nearly 1,550 properties, including approximately 272,000 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 included in the S&P 500.
GAAP Income Statements
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
REVENUES: | ||||||||||||||||
| Rental and other property revenues | $ | 359,416 | $ | 340,408 | $ | 1,037,381 | $ | 1,003,509 | ||||||||
| Property management revenues, primarily from affiliates | 8,713 | 9,652 | 26,032 | 28,498 | ||||||||||||
| Activity fees and asset management revenues, primarily from affiliates | 5,985 | 3,285 | 24,381 | 12,184 | ||||||||||||
| Total revenues | 374,114 | 353,345 | 1,087,794 | 1,044,191 | ||||||||||||
EXPENSES: | ||||||||||||||||
| Property operating expenses | 176,090 | 153,365 | 492,080 | 440,030 | ||||||||||||
| Property management expenses | 2,406 | 1,961 | 6,737 | 6,003 | ||||||||||||
| Activity and asset management expenses | 2,272 | 2,003 | 9,299 | 5,810 | ||||||||||||
| Depreciation and amortization | 90,298 | 81,508 | 265,981 | 245,305 | ||||||||||||
| General and administrative expenses | 18,765 | 10,926 | 54,612 | 27,802 | ||||||||||||
| Other income, net | (215 | ) | (2,265 | ) | (1,093 | ) | (9,160 | ) | ||||||||
| Total expenses | 289,616 | 247,498 | 827,616 | 715,790 | ||||||||||||
Operating income | 84,498 | 105,847 | 260,178 | 328,401 | ||||||||||||
| Interest income | 10,221 | 5,048 | 25,196 | 18,160 | ||||||||||||
| Provision for losses on notes receivable | (672 | ) | 23 | (1,773 | ) | (1,465 | ) | |||||||||
| Interest expense | (95,930 | ) | (86,029 | ) | (276,452 | ) | (254,893 | ) | ||||||||
| Deficit distributions to minority partners | (7,824 | ) | (11,827 | ) | (14,907 | ) | (20,928 | ) | ||||||||
| Equity in losses of unconsolidated real estate partnerships | (1,197 | ) | (1,767 | ) | (3,669 | ) | (6,581 | ) | ||||||||
| Impairment loss on investment in unconsolidated real estate partnerships | (583 | ) | — | (2,316 | ) | — | ||||||||||
| Gain on dispositions of real estate related to unconsolidated entities and other | 39,138 | 1,449 | 41,218 | 2,209 | ||||||||||||
Income before minority interests, discontinued operations and cumulative effect of change in accounting principle | 27,651 | 12,744 | 27,475 | 64,903 | ||||||||||||
| Minority interests: | ||||||||||||||||
| Minority interest in consolidated real estate partnerships | 1,575 | (1,198 | ) | 6,911 | (3,242 | ) | ||||||||||
| Minority interest in Aimco Operating Partnership, preferred [a] | (1,968 | ) | (2,102 | ) | (5,908 | ) | (7,327 | ) | ||||||||
| Minority interest in Aimco Operating Partnership, common [a] | (257 | ) | 2,091 | 4,498 | 2,192 | |||||||||||
| Total minority interests | (650 | ) | (1,209 | ) | 5,501 | (8,377 | ) | |||||||||
Income from continuing operations | 27,001 | 11,535 | 32,976 | 56,526 | ||||||||||||
| Income from discontinued operations, net [b] | 136,207 | 29,100 | 162,203 | 65,162 | ||||||||||||
Income before cumulative effect of change in accounting principle | 163,208 | 40,635 | 195,179 | 121,688 | ||||||||||||
| Cumulative effect of change in accounting principle | — | — | (3,957 | ) | — | |||||||||||
Net income | 163,208 | 40,635 | 191,222 | 121,688 | ||||||||||||
| Net income attributable to preferred stockholders | 24,667 | 26,930 | 66,307 | 74,032 | ||||||||||||
| Net income attributable to common stockholders | $ | 138,541 | $ | 13,705 | $ | 124,915 | $ | 47,656 | ||||||||
| Weighted average number of common shares outstanding | 93,247 | 92,839 | 93,041 | 92,759 | ||||||||||||
| Weighted average number of common shares and common share equivalents outstanding | 93,394 | 92,839 | 93,041 | 92,759 | ||||||||||||
| Earnings (loss) per common share — basic: | ||||||||||||||||
| Income (loss) from continuing operations (net of preferred dividends) | $ | 0.03 | $ | (0.16 | ) | $ | (0.36 | ) | $ | (0.19 | ) | |||||
| Income from discontinued operations | 1.46 | 0.31 | 1.74 | 0.70 | ||||||||||||
| Cumulative effect of change in accounting principle | — | — | (0.04 | ) | — | |||||||||||
| Net income attributable to common stockholders | $ | 1.49 | $ | 0.15 | $ | 1.34 | $ | 0.51 | ||||||||
| Earnings (loss) per common share — diluted: | ||||||||||||||||
| Income (loss) from continuing operations (net of preferred dividends) | $ | 0.02 | $ | (0.16 | ) | $ | (0.36 | ) | $ | (0.19 | ) | |||||
| Income from discontinued operations | 1.46 | 0.31 | 1.74 | 0.70 | ||||||||||||
| Cumulative effect of change in accounting principle | — | — | (0.04 | ) | — | |||||||||||
| Net income attributable to common stockholders | $ | 1.48 | $ | 0.15 | $ | 1.34 | $ | 0.51 | ||||||||
[a] The Aimco Operating Partnership is AIMCO Properties, L.P., the operating partnership in Aimco’s UPREIT structure
[b] Income from discontinued operations of consolidated properties is broken down as follows (in thousands):
| Quarter Ended | Quarter Ended | Year Ended | Year Ended | |||||||||||||
| 30-Sep-04 | 30-Sep-03 | 30-Sep-04 | 30-Sep-03 | |||||||||||||
| Income from operations | $ | 314 | $ | 7,678 | $ | 5,802 | $ | 15,605 | ||||||||
| Gain on dispositions of real estate, net of minority partners’ interest | 174,497 | 22,921 | 196,066 | 67,459 | ||||||||||||
| Impairment loss on real estate assets sold or held for sale, net of minority partners’ interest | (9,451 | ) | (619 | ) | (9,942 | ) | (8,560 | ) | ||||||||
| (Deficit distributions) recovery of deficit distributions to minority partners | (5 | ) | 3,579 | 3,308 | 4,079 | |||||||||||
| Income tax arising from disposals | (12,446 | ) | (806 | ) | (13,235 | ) | (5,112 | ) | ||||||||
| Minority interest in Aimco Operating Partnership | (16,702 | ) | (3,653 | ) | (19,796 | ) | (8,309 | ) | ||||||||
| Income from discontinued operations | $ | 136,207 | $ | 29,100 | $ | 162,203 | $ | 65,162 | ||||||||
GAAP Balance Sheets
Consolidated Balance Sheets
(in thousands)
(unaudited)
| As of | As of | |||||||
| September 30, 2004 | December 31, 2003 | |||||||
ASSETS | ||||||||
| Buildings and improvements | $ | 8,423,560 | $ | 7,899,164 | ||||
| Land | 2,162,735 | 1,960,984 | ||||||
| Accumulated depreciation | (1,934,939 | ) | (1,704,737 | ) | ||||
| TOTAL REAL ESTATE | 8,651,356 | 8,155,411 | ||||||
| Cash and cash equivalents | 122,570 | 114,432 | ||||||
| Restricted cash | 269,223 | 239,662 | ||||||
| Accounts receivable | 56,327 | 66,868 | ||||||
| Accounts receivable from affiliates | 54,451 | 56,874 | ||||||
| Deferred financing costs | 67,139 | 69,360 | ||||||
| Notes receivable from unconsolidated real estate partnerships | 155,206 | 139,930 | ||||||
| Notes receivable from non-affiliates | 51,318 | 68,771 | ||||||
| Investment in unconsolidated real estate partnerships | 183,276 | 236,144 | ||||||
| Other assets | 309,568 | 265,953 | ||||||
| Assets held for sale | 264,541 | 684,971 | ||||||
| TOTAL ASSETS | $ | 10,184,975 | $ | 10,098,376 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Secured tax-exempt bond financing | $ | 1,092,607 | $ | 1,064,250 | ||||
| Secured notes payable | 4,477,074 | 4,126,080 | ||||||
| Mandatorily redeemable preferred securities | 15,019 | 113,619 | ||||||
| Term loans | 250,000 | 354,387 | ||||||
| Credit facility | 168,400 | 81,000 | ||||||
| TOTAL INDEBTEDNESS | 6,003,100 | 5,739,336 | ||||||
| Accounts payable | 46,369 | 35,004 | ||||||
| Accrued liabilities and other | 375,081 | 364,025 | ||||||
| Deferred income | 25,289 | 25,589 | ||||||
| Security deposits | 37,879 | 38,169 | ||||||
| Deferred income taxes payable, net | 29,613 | 26,065 | ||||||
| Liabilities related to assets held for sale | 209,023 | 511,164 | ||||||
| TOTAL LIABILITIES | 6,726,354 | 6,739,352 | ||||||
| Minority interest in consolidated real estate partnerships | 221,896 | 194,462 | ||||||
| Minority interest in Aimco Operating Partnership | 278,184 | 303,905 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Class A Common Stock | 948 | 939 | ||||||
| Additional paid-in capital | 3,068,069 | 3,053,312 | ||||||
| Perpetual preferred stock | 841,500 | 555,250 | ||||||
| Convertible preferred stock | 150,000 | 299,992 | ||||||
| Distributions in excess of earnings | (1,043,052 | ) | (998,018 | ) | ||||
| Unvested restricted stock | (19,336 | ) | (10,772 | ) | ||||
| Notes due on common stock purchases | (39,588 | ) | (40,046 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 2,958,541 | 2,860,657 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 10,184,975 | $ | 10,098,376 | ||||
GAAP Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Nine Months Ended | Nine Months Ended | |||||||
| September 30, 2004 | September 30, 2003 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 191,222 | $ | 121,688 | ||||
| Depreciation and amortization | 265,981 | 245,305 | ||||||
| Adjustments to net income from discontinued operations | (155,532 | ) | (20,008 | ) | ||||
| Other adjustments to reconcile net income | (10,816 | ) | 32,671 | |||||
| Changes in operating assets and liabilities | 11,783 | 24,399 | ||||||
| Net cash provided by operating activities | 302,638 | 404,055 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of real estate | (223,495 | ) | (117,907 | ) | ||||
| Capital expenditures | (191,379 | ) | (187,755 | ) | ||||
| Proceeds from dispositions of real estate | 628,073 | 479,220 | ||||||
| Purchases of general and limited partnership interests and other assets | (67,437 | ) | (36,676 | ) | ||||
| Originations of notes receivable from unconsolidated real estate partnerships | (64,491 | ) | (47,833 | ) | ||||
| Distributions received from investments in unconsolidated real estate partnerships | 44,973 | 51,106 | ||||||
| Other investing activities | 22,627 | 16,538 | ||||||
| Net cash provided by investing activities | 148,871 | 156,693 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from secured notes payable borrowings | 407,620 | 351,964 | ||||||
| Principal repayments on secured notes payable | (465,555 | ) | (553,020 | ) | ||||
| Proceeds from tax-exempt bond financing | 69,471 | 14,505 | ||||||
| Principal repayments on tax-exempt bond financing | (169,945 | ) | (62,774 | ) | ||||
| Net borrowings (paydowns) on term loans and revolving credit facility | (16,987 | ) | 108,376 | |||||
| Proceeds from issuance (redemption) of mandatorily redeemable preferred securities | (98,875 | ) | 97,250 | |||||
| Proceeds from issuance of preferred stock | 276,750 | 144,808 | ||||||
| Redemption of preferred stock | (149,926 | ) | (239,770 | ) | ||||
| Payment of Class A Common Stock dividends | (169,179 | ) | (228,933 | ) | ||||
| Payment of preferred stock dividends | (64,978 | ) | (68,509 | ) | ||||
| Contributions from minority interest | 27,697 | — | ||||||
| Payment of distributions to minority interest | (71,315 | ) | (87,161 | ) | ||||
| Other financing activities | (18,149 | ) | (6,954 | ) | ||||
| Net cash used in financing activities | (443,371 | ) | (530,218 | ) | ||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 8,138 | 30,530 | ||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 114,432 | 99,550 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 122,570 | $ | 130,080 | ||||
Outlook and Forward Looking Statement
Fourth Quarter and Full Year 2004
(unaudited)
The Outlook information provided on this Schedule contains information that is forward-looking, including statements concerning projected fourth quarter and full year 2004 results. These forward-looking statements are based on current expectations, estimates, and projections about the markets and the industry in which Aimco operates as well as management’s beliefs and assumptions. These forward-looking statements are also based on certain risks and uncertainties, including but not limited to Aimco’s ability to improve upon current occupancy, rent levels and “same store” results and the economic environment in which Aimco operates. Actual results may differ materially from those described in these forward-looking statements and will be affected by a variety of risks and factors including, without limitation: national and local economic conditions; the general level of interest rates; 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 Aimco’s cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including variations of real estate values and the general economic climate in local markets and competition for tenants in such markets; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and possible environmental liabilities, including costs 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, 2003 and the other documents Aimco files from time to time with the Securities and Exchange Commission.
| Fourth Quarter 2004 | Full Year 2004 | |||||||
| GAAP Earnings per share (1) | -$0.16 to -$0.12 | $1.19 to $1.23 | ||||||
| Add: Depreciation and other | $0.84 | $1.56 | ||||||
| FFO per share (2) | $0.68 to $0.72 | $2.75 to $2.79 | ||||||
| FFO per share before adjustments (2) | $0.70 to $0.74 | $2.69 to $2.73 | ||||||
| AFFO per share | $0.54 to $0.58 | $2.23 to $2.27 | ||||||
| 2004 Same Store Operating Assumptions | ||||||||
| Expected physical occupancy (weighted average) | 91.5% to 92.0% | 90.3% to 90.4% | ||||||
| NOI change — sequential and 2004 vs. 2003 | 3.5% to 5.0% | -5.0% to -5.3% | ||||||
| Gross dispositions (3) | $1.05B to $1.15B | (Aimco Share $800MM - $900MM) | ||||||
| Gross acquisitions (4) | $440MM to $560MM | (Aimco Share $440MM - $560MM) | ||||||
(1) Aimco’s fourth quarter earnings per share guidance does not include estimates for (i) gain on dispositions or impairment losses due to the unpredictable timing of transactions or (ii) deferred costs recognized on early repayment of debt or upon redemption of preferred securities.
(2) The fourth quarter FFO per share guidance includes Topic D-42 preferred stock redemption charges of $1.3 million for the Preferred Class D redemption and the write off of $1.1 million in deferred debt costs associated with Aimco’s corporate debt modification. The fourth quarter FFO per share before adjustments does not include the Topic D-42 charges and the deferred debt costs write off. The full year FFO per share before adjustments is before impairments, Topic D-42 preferred stock redemption charges, net gains from transactional activity and storm-related charges.
(3) Aimco has sold or is currently marketing for sale approximately 40 conventional properties (approximately 8,500 units) and 200 affordable properties (approximately 21,000 units). These properties consist of both consolidated and unconsolidated properties, some of which are not accounted for as assets held for sale and treated as a discontinued operation as they do not meet the required criteria as set forth in SFAS 144. Aimco anticipates gross sales proceeds of approximately $1.05 to $1.15 billion for 2004 (Aimco share $800 to $900 million). Aimco expects that its share of cash from these dispositions, net of limited partner interests and after repayment of mortgage debt, will be approximately $446 to $496 million.
(4) Acquisitions include property acquisitions, limited partnership acquisitions, preferred stock redemptions, and common stock repurchases.
AIMCO 3rd Quarter 2004
Financial Statements and Supplemental Information
TABLE OF CONTENTS
Glossary
Schedule 1 – Funds From Operations and Adjusted Funds From Operations
Schedule 2a – Business Component Proportionate Income Statement Presentation, Q3
Schedule 2b – Business Component Proportionate Income Statement, 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 (Q3 2004 v. Q3 2003)
Schedule 6b – Same Store Sales (Q3 2004 v. Q2 2004)
Schedule 6c – Same Store Sales (Year-to-date 2004 v. 2003)
Schedule 7 – Selected Portfolio Performance Data
Schedule 8 – Property Sales Activity
Schedule 9 – Capital Expenditures
Schedule 10 – Summary of 2004 Redevelopment Activity
Schedule 11 – Apartment Unit Summary
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: Consolidated properties owned less than one year as of the beginning of the most recent quarter.
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. From the second quarter 2002 through the fourth quarter 2003, the calculation of AFFO also deducted Capital Enhancements (CE) expenditures. CE was Aimco’s categorization of expenditures made to improve Aimco’s assets by adding a new feature or revenue source; however, as part of changes effective as of the first quarter 2004, these expenditures are included within the capital improvements category. Capital improvement expenditures are not deducted in the calculation of AFFO and FCF.
Please see Supplemental Schedule I for AFFO data reconciled to net income as determined in accordance with GAAP.
CAPITAL IMPROVEMENTS (CI): As of the first quarter 2004, 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. Effective January 1, 2004 Aimco refined its methodology in calculating CR. Please refer to Schedule 9 for further detail.
CR expenditures are a component of Capital expenditures in the GAAP Statement of Cash Flows.
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, as defined by Aimco, is net operating income from real estate minus CR spending. FCF also includes cash flows generated from the investment management business, interest income, general and administrative expenses, provision for losses on notes receivable and other expenses (income), net incurred by Aimco. FCF measures profitability of operations and is prior to the cost of capital. 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.
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 (loss), computed in accordance with GAAP, excluding gains and losses from extraordinary items, cumulative effect of change in accounting principle, gains on dispositions of depreciable real estate related to unconsolidated entities and other, gains on dispositions of real estate from discontinued operations, net of related income taxes, plus real estate related depreciation and amortization (excluding amortization of financing costs), including depreciation for unconsolidated real estate partnerships, joint ventures and discontinued operations. Aimco calculates FFO based on the NAREIT definition, as further adjusted for amortization of management contracts and deficit distributions to minority partners. Aimco calculates FFO (diluted) by subtracting redemption related preferred stock issuance costs and dividends on preferred stock, adding back dividends/distributions on dilutive preferred securities and adding back the interest expense on dilutive mandatorily redeemable convertible 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.
NET RENTAL INCOME (NRI): NRI is an operating measure calculated as the product of the number of rental units in Aimco’s “Same Store” portfolio multiplied by average occupancy multiplied by average effective rent per unit. NRI does not reflect income from all sources and does not reflect operating expenses. Therefore, NRI is not a measure of net operating income or earnings.
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 PROPERTIES: Properties that are not multi-family such as commercial properties or fitness facilities.
PARTNERSHIP EXPENSES: Expenses incurred at the partnership level, either directly or indirectly, for services such as audit, tax and legal.
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 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. 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.
UNCONSOLIDATED BALANCE SHEET ITEMS: Unconsolidated balance sheet items such as Aimco’s share of unconsolidated cash, unconsolidated restricted cash, unconsolidated accounts receivable, unconsolidated current liabilities and unconsolidated debt are components of Balance Sheet line items on the GAAP financial statements that are useful in understanding Aimco’s proportionate share of assets and liabilities, prior to consolidation in the GAAP financial statements.
Supplemental Schedule 1
Funds From Operations and Adjusted Funds From Operations [a]
(in thousands, except per share data)
(unaudited)
| For the Three Months | For the Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
Net income attributable to common stockholders | $ | 138,541 | $ | 13,705 | $ | 124,915 | $ | 47,656 | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization | 90,298 | 81,508 | 265,981 | 245,305 | ||||||||||||
| Depreciation and amortization related to non-real estate assets | (4,271 | ) | (4,882 | ) | (13,481 | ) | (15,639 | ) | ||||||||
| Depreciation of rental property related to minority partners’ interest | (10,017 | ) | (6,751 | ) | (32,132 | ) | (21,206 | ) | ||||||||
| Depreciation of rental property related to unconsolidated entities | 5,472 | 6,289 | 17,116 | 19,331 | ||||||||||||
| Gain on dispositions of real estate related to unconsolidated entities and other | (39,138 | ) | (1,449 | ) | (41,218 | ) | (2,209 | ) | ||||||||
| Gain on dispositions of land | 34,580 | — | 35,455 | — | ||||||||||||
| Deficit distributions to minority partners | 7,824 | 11,827 | 14,907 | 20,928 | ||||||||||||
| Cumulative effect of change in accounting principle | — | — | 3,957 | — | ||||||||||||
| Discontinued operations: | — | |||||||||||||||
| Gain on dispositions of real estate, net of minority partners’ interest | (174,497 | ) | (22,921 | ) | (196,066 | ) | (67,459 | ) | ||||||||
| Depreciation of rental property, net of minority partners’ interest | 3,339 | 7,903 | 12,075 | 29,702 | ||||||||||||
| Deficit distributions (recovery of deficit distributions) to minority partners | 5 | (3,579 | ) | (3,308 | ) | (4,079 | ) | |||||||||
| Income tax arising from disposals | 12,446 | 806 | 13,235 | 5,112 | ||||||||||||
| Minority interest in Aimco Operating Partnership’s share of above adjustments | 8,104 | (7,753 | ) | (8,235 | ) | (23,881 | ) | |||||||||
| Preferred stock dividends | 22,569 | 21,440 | 64,121 | 66,387 | ||||||||||||
| Redemption related preferred stock issuance costs | 2,098 | 5,490 | 2,186 | 7,645 | ||||||||||||
Funds From Operations | 97,353 | 101,633 | 259,508 | 307,593 | ||||||||||||
| Preferred stock dividends | (22,569 | ) | (21,440 | ) | (64,121 | ) | (66,387 | ) | ||||||||
| Redemption related preferred stock issuance costs | (2,098 | ) | (5,490 | ) | (2,186 | ) | (7,645 | ) | ||||||||
| Dividends/distributions on dilutive preferred securities | 1,069 | 2,097 | 2,757 | 10,253 | ||||||||||||
| Interest expense on dilutive mandatorily redeemable convertible preferred securities | — | 247 | — | 741 | ||||||||||||
Funds From Operations Attributable to Common Stockholders — Diluted | $ | 73,755 | $ | 77,047 | $ | 195,958 | $ | 244,555 | ||||||||
| Capital Replacements | (23,948 | ) | (20,957 | ) | (54,417 | ) | (67,929 | ) | ||||||||
| Capital Enhancements [b] | — | (213 | ) | — | (2,377 | ) | ||||||||||
| Impairment loss on investment in unconsolidated real estate partnerships | 583 | — | 2,316 | — | ||||||||||||
| Impairment loss on real estate assets sold or held for sale, net of minority partners’ interest | 9,451 | 619 | 9,942 | 8,560 | ||||||||||||
| Redemption related preferred stock issuance costs | 2,098 | 5,490 | 2,186 | 7,645 | ||||||||||||
| Minority interest in Aimco Operating Partnership’s share of above adjustments | 1,244 | 1,691 | 4,301 | 6,155 | ||||||||||||
| Dividends/distributions on non-dilutive preferred securities | (1,016 | ) | — | (2,621 | ) | (4,066 | ) | |||||||||
Adjusted Funds From Operations Attributable to Common Stockholders — Diluted | $ | 62,167 | $ | 63,677 | $ | 157,665 | $ | 192,543 | ||||||||
Funds From Operations: | ||||||||||||||||
| Weighted average common shares, common share equivalents and dilutive preferred securities outstanding: | ||||||||||||||||
| Common shares and equivalents | 93,394 | 93,049 | 93,110 | 92,889 | ||||||||||||
| Dilutive preferred securities | 1,590 | 2,995 | 1,450 | 4,273 | ||||||||||||
| 94,984 | 96,044 | 94,560 | 97,162 | |||||||||||||
Adjusted Funds From Operations: | ||||||||||||||||
| Weighted average common shares, common share equivalents and dilutive preferred securities outstanding: | ||||||||||||||||
| Common shares and equivalents | 93,394 | 93,049 | 93,110 | 92,889 | ||||||||||||
| Dilutive preferred securities | 114 | 2,995 | 97 | 2,879 | ||||||||||||
| 93,508 | 96,044 | 93,207 | 95,768 | |||||||||||||
Per Share: | ||||||||||||||||
| Funds From Operations — Diluted | $ | 0.78 | $ | 0.80 | $ | 2.07 | $ | 2.52 | ||||||||
| Funds From Operations — Diluted (excluding impairment losses and redemption related preferred stock issuance costs) [c] [d] | $ | 0.89 | $ | 0.86 | $ | 2.21 | $ | 2.69 | ||||||||
| Adjusted Funds From Operations — Diluted | $ | 0.66 | $ | 0.66 | $ | 1.69 | $ | 2.01 | ||||||||
| Dividends Declared | $ | 0.60 | $ | 0.60 | $ | 1.80 | $ | 2.24 | ||||||||
[a] Effective with the fourth quarter 2003 and for all periods presented, Aimco has adjusted its presentation of Funds From Operations (FFO) to conform to the NAREIT definition to deduct the Aimco Operating Partnership’s share of all adjustments and remove the common partnership units in the Aimco Operating Partnership, which had previously been assumed to have been redeemed in exchange for Aimco’s Class A Common Stock.
[b] Effective January 1, 2004 and on a prospective basis, Capital Enhancements are now included as part of Capital Improvements (See Supplemental Schedule 9 for further details).
[c] 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, 2004 includes impairment losses of $10.0 million and $12.3 million, respectively. FFO for the three and nine months ended September 30, 2003 includes impairment losses of $0.6 million and $8.6 million, respectively.
[d] In accordance with the Securities and Exchange Commission’s July 31, 2003 interpretation of the Emerging Issues Task Force Topic D-42, Aimco now includes redemption related preferred stock issuance costs in FFO. As a result, FFO for the three and nine months ended September 30, 2004 includes issuance costs of $2.1 million and $2.2 million, respectively. FFO for the three and nine months ended September 30, 2003 includes issuance costs of $5.5 million and $7.6 million, respectively.
Supplemental Schedule 2(a)
Business Component Proportionate Income Statement Presentation
For the Three Months Ended September 30, 2004
(in thousands)
(unaudited)
| Total | Total | |||||||||||||||||||||||||||||||
| Proportionate | Proportionate | Proportionate | ||||||||||||||||||||||||||||||
| Aimco | Share of | Minority | Consolidated | Consolidated | ||||||||||||||||||||||||||||
| GAAP Income | Unconsolidated | Partners’ | Income | Aimco | Income | |||||||||||||||||||||||||||
| Statement | Partnerships | Interest | Statement | Conventional (1) | Capital (1) | Corporate | Statement | |||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
| Rental and other property revenues: (1) | ||||||||||||||||||||||||||||||||
| Same store properties (2) | $ | 295,905 | $ | 9,199 | $ | (44,782 | ) | $ | 260,322 | $ | 260,322 | $ | — | $ | — | $ | 260,322 | |||||||||||||||
| Acquisition properties | 8,076 | 441 | — | 8,517 | 8,517 | — | — | 8,517 | ||||||||||||||||||||||||
| Redevelopment properties | 13,620 | 376 | (2,801 | ) | 11,195 | 11,195 | — | — | 11,195 | |||||||||||||||||||||||
| Disposition properties | — | 39 | — | 39 | 39 | — | — | 39 | ||||||||||||||||||||||||
| Other properties | 7,419 | 792 | (980 | ) | 7,231 | 7,231 | — | — | 7,231 | |||||||||||||||||||||||
| Affordable properties | 34,396 | 15,197 | (5,348 | ) | 44,245 | — | 44,245 | — | 44,245 | |||||||||||||||||||||||
| Total rental and other property revenues | 359,416 | 26,044 | (53,911 | ) | 331,549 | 287,304 | 44,245 | — | 331,549 | |||||||||||||||||||||||
| Property management revenues, primarily from affiliates | 8,713 | — | — | 8,713 | 2,442 | 6,271 | 8,713 | |||||||||||||||||||||||||
| Activity fees and asset management revenues, primarily from affiliates | 5,985 | — | — | 5,985 | 73 | 5,912 | — | 5,985 | ||||||||||||||||||||||||
| Total revenues | 374,114 | 26,044 | (53,911 | ) | 346,247 | 289,819 | 56,428 | — | 346,247 | |||||||||||||||||||||||
Expense: | ||||||||||||||||||||||||||||||||
| Property operating expenses: (1) | ||||||||||||||||||||||||||||||||
| Same store properties (2) | 134,756 | 4,017 | (21,687 | ) | 117,086 | 117,086 | — | — | 117,086 | |||||||||||||||||||||||
| Acquisition properties | 3,837 | 362 | — | 4,199 | 4,199 | — | — | 4,199 | ||||||||||||||||||||||||
| Redevelopment properties | 6,193 | 202 | (1,270 | ) | 5,125 | 5,125 | — | — | 5,125 | |||||||||||||||||||||||
| Disposition properties | — | 98 | — | 98 | 98 | — | — | 98 | ||||||||||||||||||||||||
| Other properties | 4,955 | 660 | (549 | ) | 5,066 | 5,066 | — | — | 5,066 | |||||||||||||||||||||||
| Affordable properties | 16,266 | 6,737 | (2,683 | ) | 20,320 | — | 20,320 | — | 20,320 | |||||||||||||||||||||||
| Casualties | 4,118 | 47 | (306 | ) | 3,859 | 3,994 | (135 | ) | — | 3,859 | ||||||||||||||||||||||
| Property management expenses (consolidated properties) | 5,965 | 1,433 | (2,459 | ) | 4,939 | 3,907 | 1,032 | — | 4,939 | |||||||||||||||||||||||
| Total property operating expenses | 176,090 | 13,556 | (28,954 | ) | 160,692 | 139,475 | 21,217 | — | 160,692 | |||||||||||||||||||||||
| Property management expenses (unconsolidated and third party properties) | 2,406 | — | — | 2,406 | 807 | 1,599 | — | 2,406 | ||||||||||||||||||||||||
| Activity and asset management expenses | 2,272 | — | — | 2,272 | — | 2,272 | — | 2,272 | ||||||||||||||||||||||||
| Depreciation and amortization | 90,298 | 5,472 | (10,017 | ) | 85,753 | 74,325 | 11,428 | — | 85,753 | |||||||||||||||||||||||
| General and administrative expenses | 18,765 | — | — | 18,765 | 11,822 | 6,943 | — | 18,765 | ||||||||||||||||||||||||
| Other (income) expenses, net | (215 | ) | 978 | (2,102 | ) | (1,339 | ) | 395 | (1,734 | ) | — | (1,339 | ) | |||||||||||||||||||
| Total expenses | 289,616 | 20,006 | (41,073 | ) | 268,549 | 226,824 | 41,725 | — | 268,549 | |||||||||||||||||||||||
Operating income | 84,498 | 6,038 | (12,838 | ) | 77,698 | 62,995 | 14,703 | — | 77,698 | |||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||
| General partner loan interest | 6,194 | — | — | 6,194 | 5,419 | 775 | — | 6,194 | ||||||||||||||||||||||||
| Money market and interest bearing accounts | 1,492 | 354 | (73 | ) | 1,773 | 665 | 1,108 | — | 1,773 | |||||||||||||||||||||||
| Accretion on discounted notes receivable | 2,535 | — | — | 2,535 | 1,560 | 975 | — | 2,535 | ||||||||||||||||||||||||
| Total interest income | 10,221 | 354 | (73 | ) | 10,502 | 7,644 | 2,858 | — | 10,502 | |||||||||||||||||||||||
| Provision for losses on notes receivable | (672 | ) | — | — | (672 | ) | (36 | ) | (636 | ) | — | (672 | ) | |||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||
| Property debt (primarily non-recourse) | (86,884 | ) | (7,643 | ) | 14,686 | (79,841 | ) | (70,052 | ) | (9,789 | ) | — | (79,841 | ) | ||||||||||||||||||
| Lines of credit | (10,863 | ) | — | — | (10,863 | ) | — | — | (10,863 | ) | (10,863 | ) | ||||||||||||||||||||
| Interest expense on mandatorily redeemable convertible preferred securities | (244 | ) | — | — | (244 | ) | — | — | (244 | ) | (244 | ) | ||||||||||||||||||||
| Capitalized interest | 2,061 | 54 | (200 | ) | 1,915 | 1,601 | 314 | — | 1,915 | |||||||||||||||||||||||
| Total interest expense | (95,930 | ) | (7,589 | ) | 14,486 | (89,033 | ) | (68,451 | ) | (9,475 | ) | (11,107 | ) | (89,033 | ) | |||||||||||||||||
| Deficit distributions to minority partners | (7,824 | ) | — | — | (7,824 | ) | (7,763 | ) | (61 | ) | — | (7,824 | ) | |||||||||||||||||||
| Equity in losses of unconsolidated real estate partnerships | (1,197 | ) | 1,197 | — | — | — | — | — | — | |||||||||||||||||||||||
| Impairment loss on investment in unconsolidated real estate partnerships | (583 | ) | — | — | (583 | ) | — | (583 | ) | — | (583 | ) | ||||||||||||||||||||
| Gain on dispositions of real estate related to unconsolidated entities and other | 39,138 | — | — | 39,138 | 34,765 | 4,373 | — | 39,138 | ||||||||||||||||||||||||
Income before minority interests, discontinued operations and cumulative effect of change in accounting principle | 27,651 | — | 1,575 | 29,226 | 29,154 | 11,179 | (11,107 | ) | 29,226 | |||||||||||||||||||||||
| Minority interests: | ||||||||||||||||||||||||||||||||
| Minority interest in consolidated real estate partnerships | 1,575 | — | (1,575 | ) | — | — | — | — | — | |||||||||||||||||||||||
| Minority interest in Aimco Operating Partnership | (2,225 | ) | — | — | (2,225 | ) | — | — | (2,225 | ) | (2,225 | ) | ||||||||||||||||||||
| Total minority interests | (650 | ) | — | (1,575 | ) | (2,225 | ) | — | — | (2,225 | ) | (2,225 | ) | |||||||||||||||||||
Income from continuing operations | 27,001 | — | — | 27,001 | 29,154 | 11,179 | (13,332 | ) | 27,001 | |||||||||||||||||||||||
| Income from discontinued operations, net | 136,207 | — | — | 136,207 | 153,460 | (551 | ) | (16,702 | ) | 136,207 | ||||||||||||||||||||||
Net income | $ | 163,208 | $ | — | $ | — | $ | 163,208 | $ | 182,614 | $ | 10,628 | $ | (30,034 | ) | $ | 163,208 | |||||||||||||||
| (1) | See definitions and descriptions in Glossary | |||
| (2) | Same store amounts in this schedule may differ from the same store amounts in Schedules 6a-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. | |||
Supplemental Schedule 2(a)
Business Component Proportionate Income Statement Presentation
For the Three Months Ended September 30, 2004
(in thousands)
(unaudited)
| Total | Total | |||||||||||||||||||
| Proportionate | Proportionate | |||||||||||||||||||
| Consolidated | Consolidated | |||||||||||||||||||
| Income | Aimco | Income | ||||||||||||||||||
| Statement | Conventional (1) | Capital (1) | Corporate | Statement | ||||||||||||||||
Reconciliation of Net Income to FFO, AFFO and FCF: | ||||||||||||||||||||
Net income (see above) | 163,208 | 182,614 | 10,628 | (30,034 | ) | 163,208 | ||||||||||||||
| Proportionate share of depreciation and amortization | 85,753 | 74,325 | 11,428 | — | 85,753 | |||||||||||||||
| Depreciation and amortization related to non-real estate assets | (4,271 | ) | (4,271 | ) | — | — | (4,271 | ) | ||||||||||||
| Deficit distributions to minority partners | 7,824 | 7,763 | 61 | — | 7,824 | |||||||||||||||
| Gain on dispositions of real estate related to unconsolidated entities and other | (39,138 | ) | (34,765 | ) | (4,373 | ) | — | (39,138 | ) | |||||||||||
| Gain on disposition of land | 34,580 | 34,580 | — | — | 34,580 | |||||||||||||||
| Discontinued operations | (158,707 | ) | (158,178 | ) | (529 | ) | — | (158,707 | ) | |||||||||||
| Minority interest in Aimco Operating Partnership’s share of adjustments | 8,104 | — | — | 8,104 | 8,104 | |||||||||||||||
| Preferred stock dividends | (22,569 | ) | — | — | (22,569 | ) | (22,569 | ) | ||||||||||||
| Redemption related preferred stock issuance costs | (2,098 | ) | — | — | (2,098 | ) | (2,098 | ) | ||||||||||||
| Dividends/distributions on dilutive preferred securities | 1,069 | — | — | 1,069 | 1,069 | |||||||||||||||
FFO Attributable to Common Stockholders — Diluted | 73,755 | 102,068 | 17,215 | (45,528 | ) | 73,755 | ||||||||||||||
| Capital Replacements | (23,948 | ) | (21,522 | ) | (2,426 | ) | — | (23,948 | ) | |||||||||||
| Impairment loss on investment in unconsolidated real estate partnerships | 583 | — | 583 | — | 583 | |||||||||||||||
| Impairment loss on real estate assets sold or held for sale, net of minority partners’ interest | 9,451 | 8,451 | 1,000 | — | 9,451 | |||||||||||||||
| Redemption related preferred stock issuance costs | 2,098 | — | — | 2,098 | 2,098 | |||||||||||||||
| Minority interest in Aimco Operating Partnership’s share of adjustments | 1,244 | — | — | 1,244 | 1,244 | |||||||||||||||
| Dividends/distributions on non-dilutive preferred securities | (1,016 | ) | — | — | (1,016 | ) | (1,016 | ) | ||||||||||||
AFFO Attributable to Common Stockholders — Diluted | 62,167 | 88,997 | 16,372 | (43,202 | ) | 62,167 | ||||||||||||||
| Interest expense | 89,033 | 68,451 | 9,475 | 11,107 | 89,033 | |||||||||||||||
| Discontinued operations | 13,049 | (3,733 | ) | 80 | 16,702 | 13,049 | ||||||||||||||
| Gain on disposition of land | (34,580 | ) | (34,580 | ) | — | — | (34,580 | ) | ||||||||||||
| Preferred stock dividends and distributions | 22,569 | — | — | 22,569 | 22,569 | |||||||||||||||
| Depreciation and amortization related to non-real estate assets | 4,271 | 4,271 | — | — | 4,271 | |||||||||||||||
| Dividends/distributions on non-dilutive preferred securities | (53 | ) | — | — | (53 | ) | (53 | ) | ||||||||||||
| Minority interest in Aimco Operating Partnership | 2,225 | — | — | 2,225 | 2,225 | |||||||||||||||
| Minority interest in Aimco Operating Partnership’s share of adjustments | (9,348 | ) | — | — | (9,348 | ) | (9,348 | ) | ||||||||||||
FCF | $ | 149,333 | $ | 123,406 | $ | 25,927 | $ | — | $ | 149,333 | ||||||||||
FCF Breakdown: | ||||||||||||||||||||
| Real estate | 146,909 | |||||||||||||||||||
| Property management | 6,307 | |||||||||||||||||||
| Activity and asset management | 3,713 | |||||||||||||||||||
| Interest income | 10,502 | |||||||||||||||||||
| Provision for losses on notes receivable | (672 | ) | ||||||||||||||||||
| General and administrative expenses | (18,765 | ) | ||||||||||||||||||
| Other income, net | 1,339 | |||||||||||||||||||
Total FCF | $ | 149,333 | ||||||||||||||||||
| Reconciliation of Net Income to FFO, AFFO and FCF: | For the Three Months Ended September 30, 2004 | |||||||||||
| FFO | AFFO | FCF | ||||||||||
| Net income | $ | 163,208 | $ | 163,208 | $ | 163,208 | ||||||
| Total interest expense after minority partners’ share | — | — | 89,033 | |||||||||
| Dividends on preferred stock | (22,569 | ) | (22,569 | ) | — | |||||||
| Redemption related preferred stock issuance costs | (2,098 | ) | — | — | ||||||||
| Proportionate share of depreciation and amortization | 85,753 | 85,753 | 85,753 | |||||||||
| Depreciation and amortization related to non-real estate assets | (4,271 | ) | (4,271 | ) | — | |||||||
| Gain on dispositions of real estate related to unconsolidated entities and other | (39,138 | ) | (39,138 | ) | (39,138 | ) | ||||||
| Gain on disposition of land | 34,580 | 34,580 | — | |||||||||
| Impairment loss on investment in unconsolidated real estate partnerships | — | 583 | 583 | |||||||||
| Discontinued operations: | ||||||||||||
| Income from discontinued operations, net | — | — | (136,207 | ) | ||||||||
| Depreciation of rental property, net of minority partners’ interest | 3,339 | 3,339 | — | |||||||||
| Gain on dispositions of real estate, net of minority partners’ interest | (174,497 | ) | (174,497 | ) | — | |||||||
| Impairment loss on real estate assets sold or held for sale, net of minority partners’ interest | — | 9,451 | — | |||||||||
| Deficit distributions to minority partners | 5 | 5 | — | |||||||||
| Income tax arising from disposals | 12,446 | 12,446 | — | |||||||||
| Deficit distributions to minority partners | 7,824 | 7,824 | 7,824 | |||||||||
| Capital Replacements | — | (23,948 | ) | (23,948 | ) | |||||||
| Dividends/distributions on dilutive preferred securities | 1,069 | 53 | — | |||||||||
| Minority interest in Aimco Operating Partnership’s share of above adjustments | 8,104 | 9,348 | — | |||||||||
| Minority interest in Aimco Operating Partnership | — | — | 2,225 | |||||||||
Total | $ | 73,755 | $ | 62,167 | $ | 149,333 | ||||||
Supplemental Schedule 2(b)
Business Component Proportionate Income Statement Presentation
For the Nine Months Ended September 30, 2004
(in thousands)
(unaudited)
| Total | Total | |||||||||||||||||||||||||||||||
| Proportionate | Proportionate | Proportionate | ||||||||||||||||||||||||||||||
| Aimco | Share of | Minority | Consolidated | Consolidated | ||||||||||||||||||||||||||||
| GAAP Income | Unconsolidated | Partners' | Income | Aimco | Income | |||||||||||||||||||||||||||
| Statement | Partnerships | Interest | Statement | Conventional (1) | Capital (1) | Corporate | Statement | |||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
| Rental and other property revenues: (1) | ||||||||||||||||||||||||||||||||
| Same store properties (2) | $ | 844,663 | 28,804 | $ | (129,213 | ) | $ | 744,254 | $ | 744,254 | $ | — | $ | — | $ | 744,254 | ||||||||||||||||
| Acquisition properties | 20,409 | 1,328 | (58 | ) | 21,679 | 21,679 | — | — | 21,679 | |||||||||||||||||||||||
| Redevelopment properties | 55,772 | 1,029 | (9,346 | ) | 47,455 | 47,455 | — | — | 47,455 | |||||||||||||||||||||||
| Disposition properties | — | 1,141 | �� | — | 1,141 | 1,141 | — | — | 1,141 | |||||||||||||||||||||||
| Other properties | 20,021 | 2,468 | (3,592 | ) | 18,897 | 18,897 | — | — | 18,897 | |||||||||||||||||||||||
| Affordable properties | 96,516 | 46,016 | (11,548 | ) | 130,984 | — | 130,984 | — | 130,984 | |||||||||||||||||||||||
| Total rental and other property revenues | 1,037,381 | 80,786 | (153,757 | ) | 964,410 | 833,426 | 130,984 | — | 964,410 | |||||||||||||||||||||||
| Property management revenues, primarily from affiliates | 26,032 | — | — | 26,032 | 7,996 | 18,036 | — | 26,032 | ||||||||||||||||||||||||
| Activity fees and asset management revenues, primarily from affiliates | 24,381 | — | — | 24,381 | 670 | 23,711 | — | 24,381 | ||||||||||||||||||||||||
| Total revenues | 1,087,794 | 80,786 | (153,757 | ) | 1,014,823 | 842,092 | 172,731 | — | 1,014,823 | |||||||||||||||||||||||
Expense: | ||||||||||||||||||||||||||||||||
| Property operating expenses: (1) | ||||||||||||||||||||||||||||||||
| Same store properties (2) | 374,509 | 12,758 | (60,703 | ) | 326,564 | 326,564 | — | — | 326,564 | |||||||||||||||||||||||
| Acquisition properties | 9,220 | 1,030 | (44 | ) | 10,206 | 10,206 | — | — | 10,206 | |||||||||||||||||||||||
| Redevelopment properties | 26,827 | 582 | (4,568 | ) | 22,841 | 22,841 | — | — | 22,841 | |||||||||||||||||||||||
| Disposition properties | — | 870 | — | 870 | 870 | — | — | 870 | ||||||||||||||||||||||||
| Other properties | 13,877 | 2,602 | (3,314 | ) | 13,165 | 13,165 | — | — | 13,165 | |||||||||||||||||||||||
| Affordable properties | 49,029 | 21,433 | (6,069 | ) | 64,393 | — | 64,393 | — | 64,393 | |||||||||||||||||||||||
| Casualties | 2,567 | 86 | 6 | 2,659 | 2,897 | (238 | ) | — | 2,659 | |||||||||||||||||||||||
| Property management expenses (consolidated properties) | 16,051 | 4,558 | (7,125 | ) | 13,484 | 10,010 | 3,474 | — | 13,484 | |||||||||||||||||||||||
| Total property operating expenses | 492,080 | 43,919 | (81,817 | ) | 454,182 | 386,553 | 67,629 | — | 454,182 | |||||||||||||||||||||||
| Property management expenses (unconsolidated and third party properties) | 6,737 | — | — | 6,737 | 2,258 | 4,479 | — | 6,737 | ||||||||||||||||||||||||
| Activity and asset management expenses | 9,299 | — | — | 9,299 | — | 9,299 | — | 9,299 | ||||||||||||||||||||||||
| Depreciation and amortization | 265,981 | 17,116 | (32,132 | ) | 250,965 | 220,334 | 30,631 | — | 250,965 | |||||||||||||||||||||||
| General and administrative expenses | 54,612 | — | — | 54,612 | 33,641 | 20,971 | — | 54,612 | ||||||||||||||||||||||||
| Other (income) expenses, net | (1,093 | ) | 2,559 | (5,270 | ) | (3,804 | ) | 5,953 | (9,757 | ) | — | (3,804 | ) | |||||||||||||||||||
| Total expenses | 827,616 | 63,594 | (119,219 | ) | 771,991 | 648,739 | 123,252 | — | 771,991 | |||||||||||||||||||||||
Operating income | 260,178 | 17,192 | (34,538 | ) | 242,832 | 193,353 | 49,479 | — | 242,832 | |||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||
| General partner loan interest | 16,363 | — | — | 16,363 | 13,760 | 2,603 | — | 16,363 | ||||||||||||||||||||||||
| Money market and interest bearing accounts | 4,120 | 1,093 | (147 | ) | 5,066 | 2,020 | 3,046 | — | 5,066 | |||||||||||||||||||||||
| Accretion on discounted notes receivable | 4,713 | — | — | 4,713 | 3,330 | 1,383 | — | 4,713 | ||||||||||||||||||||||||
| Total interest income | 25,196 | 1,093 | (147 | ) | 26,142 | 19,110 | 7,032 | — | 26,142 | |||||||||||||||||||||||
| Recovery of (provision for) losses on notes receivable | (1,773 | ) | — | — | (1,773 | ) | 77 | (1,850 | ) | — | (1,773 | ) | ||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||
| Property debt (primarily non-recourse) | (252,484 | ) | (22,010 | ) | 42,034 | (232,460 | ) | (204,606 | ) | (27,854 | ) | — | (232,460 | ) | ||||||||||||||||||
| Lines of credit | (26,430 | ) | — | — | (26,430 | ) | — | — | (26,430 | ) | (26,430 | ) | ||||||||||||||||||||
| Interest expense on mandatorily redeemable preferred securities | (1,161 | ) | — | — | (1,161 | ) | — | — | (1,161 | ) | (1,161 | ) | ||||||||||||||||||||
| Interest expense on mandatorily redeemable convertible preferred securities | (735 | ) | — | — | (735 | ) | — | — | (735 | ) | (735 | ) | ||||||||||||||||||||
| Capitalized interest | 4,358 | 56 | (438 | ) | 3,976 | 3,156 | 820 | — | 3,976 | |||||||||||||||||||||||
| Total interest expense | (276,452 | ) | (21,954 | ) | 41,596 | (256,810 | ) | (201,450 | ) | (27,034 | ) | (28,326 | ) | (256,810 | ) | |||||||||||||||||
| Deficit distributions to minority partners | (14,907 | ) | — | — | (14,907 | ) | (13,977 | ) | (930 | ) | — | (14,907 | ) | |||||||||||||||||||
| Equity in losses of unconsolidated real estate partnerships | (3,669 | ) | 3,669 | — | — | — | — | — | — | |||||||||||||||||||||||
| Impairment loss on investment in unconsolidated real estate partnerships | (2,316 | ) | — | — | (2,316 | ) | 396 | (2,712 | ) | — | (2,316 | ) | ||||||||||||||||||||
| Gain on dispositions of real estate related to unconsolidated entities and other | 41,218 | — | — | 41,218 | 33,160 | 8,058 | — | 41,218 | ||||||||||||||||||||||||
Income before minority interests, discontinued operations and cumulative effect of change in accounting principle | 27,475 | — | 6,911 | 34,386 | 30,669 | 32,043 | (28,326 | ) | 34,386 | |||||||||||||||||||||||
| Minority interests: | ||||||||||||||||||||||||||||||||
| Minority interest in consolidated real estate partnerships | 6,911 | — | (6,911 | ) | — | — | — | — | — | |||||||||||||||||||||||
| Minority interest in Aimco Operating Partnership | (1,410 | ) | — | — | (1,410 | ) | — | — | (1,410 | ) | (1,410 | ) | ||||||||||||||||||||
| Total minority interests | 5,501 | — | (6,911 | ) | (1,410 | ) | — | — | (1,410 | ) | (1,410 | ) | ||||||||||||||||||||
Income from continuing operations | 32,976 | — | — | 32,976 | 30,669 | 32,043 | (29,736 | ) | 32,976 | |||||||||||||||||||||||
| Income from discontinued operations, net | 162,203 | — | — | 162,203 | 179,049 | 2,950 | (19,796 | ) | 162,203 | |||||||||||||||||||||||
Income before cumulative effect of change in accounting principle | 195,179 | — | — | 195,179 | 209,718 | 34,993 | (49,532 | ) | 195,179 | |||||||||||||||||||||||
| Cumulative effect of change in accounting principle | (3,957 | ) | — | — | (3,957 | ) | (512 | ) | (3,445 | ) | — | (3,957 | ) | |||||||||||||||||||
Net income | $ | 191,222 | $ | — | $ | — | $ | 191,222 | $ | 209,206 | $ | 31,548 | $ | (49,532 | ) | $ | 191,222 | |||||||||||||||
| (1) | See definitions and descriptions in Glossary | |||
| (2) | Same store amounts in this schedule may differ from the same store amounts in Schedules 6a-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. | |||
Supplemental Schedule 2(b)
Business Component Proportionate Income Statement Presentation
For the Nine Months Ended September 30, 2004
(in thousands)
(unaudited)
| Total | Total | |||||||||||||||||||
| Proportionate | Proportionate | |||||||||||||||||||
| Consolidated | Consolidated | |||||||||||||||||||
| Income | Aimco | Income | ||||||||||||||||||
| Statement | Conventional (1) | Capital (1) | Corporate | Statement | ||||||||||||||||
Reconciliation of Net Income to FFO, AFFO and FCF: | ||||||||||||||||||||
Net income (see above) | 191,222 | 209,206 | 31,548 | (49,532 | ) | 191,222 | ||||||||||||||
| Proportionate share of depreciation and amortization | 250,965 | 220,334 | 30,631 | — | 250,965 | |||||||||||||||
| Depreciation and amortization related to non-real estate assets | (13,481 | ) | (13,481 | ) | — | — | (13,481 | ) | ||||||||||||
| Deficit distributions to minority partners | 14,907 | 13,977 | 930 | — | 14,907 | |||||||||||||||
| Gain on dispositions of real estate related to unconsolidated entities and other | (41,218 | ) | (33,160 | ) | (8,058 | ) | — | (41,218 | ) | |||||||||||
| Gain on dispositions of land | 35,455 | 35,455 | — | — | 35,455 | |||||||||||||||
| Cumulative effect of change in accounting principle | 3,957 | 512 | 3,445 | — | 3,957 | |||||||||||||||
| Discontinued operations | (174,064 | ) | (170,822 | ) | (3,242 | ) | — | (174,064 | ) | |||||||||||
| Minority interest in Aimco Operating Partnership’s share of adjustments | (8,235 | ) | — | — | (8,235 | ) | (8,235 | ) | ||||||||||||
| Preferred stock dividends and distributions | (64,121 | ) | — | — | (64,121 | ) | (64,121 | ) | ||||||||||||
| Redemption related preferred stock issuance costs | (2,186 | ) | — | — | (2,186 | ) | (2,186 | ) | ||||||||||||
| Dividends/distributions on dilutive preferred securities | 2,757 | — | — | 2,757 | 2,757 | |||||||||||||||
FFO Attributable to Common Stockholders — Diluted | 195,958 | 262,021 | 55,254 | (121,317 | ) | 195,958 | ||||||||||||||
| Capital Replacements | (54,417 | ) | (47,635 | ) | (6,782 | ) | — | (54,417 | ) | |||||||||||
| Impairment loss on investment in unconsolidated real estate partnerships | 2,316 | (396 | ) | 2,712 | — | 2,316 | ||||||||||||||
| Impairment loss on real estate assets sold or held for sale, net of minority partners’ interest | 9,942 | 8,451 | 1,491 | — | 9,942 | |||||||||||||||
| Redemption related preferred stock issuance costs | 2,186 | — | — | 2,186 | 2,186 | |||||||||||||||
| Minority interest in Aimco Operating Partnership’s share of adjustments | 4,301 | — | — | 4,301 | 4,301 | |||||||||||||||
| Dividends/distributions on non-dilutive preferred securities | (2,621 | ) | — | — | (2,621 | ) | (2,621 | ) | ||||||||||||
AFFO Attributable to Common Stockholders — Diluted | 157,665 | 222,441 | 52,675 | (117,451 | ) | 157,665 | ||||||||||||||
| Interest expense | 256,810 | 201,450 | 27,034 | 28,326 | 256,810 | |||||||||||||||
| Discontinued operations | 1,919 | (16,678 | ) | (1,199 | ) | 19,796 | 1,919 | |||||||||||||
| Gain on dispositions of land | (35,455 | ) | (35,455 | ) | — | — | (35,455 | ) | ||||||||||||
| Preferred stock dividends and distributions | 64,121 | — | — | 64,121 | 64,121 | |||||||||||||||
| Depreciation and amortization related to non-real estate assets | 13,481 | 13,481 | — | — | 13,481 | |||||||||||||||
| Dividends/distributions on non-dilutive preferred securities | (136 | ) | — | — | (136 | ) | (136 | ) | ||||||||||||
| Minority interest in Aimco Operating Partnership | 1,410 | — | — | 1,410 | 1,410 | |||||||||||||||
| Minority interest in Aimco Operating Partnership’s share of adjustments | 3,934 | — | — | 3,934 | 3,934 | |||||||||||||||
FCF | $ | 463,749 | $ | 385,239 | $ | 78,510 | $ | — | $ | 463,749 | ||||||||||
FCF Breakdown: | ||||||||||||||||||||
| Real estate | 455,811 | |||||||||||||||||||
| Property management | 19,295 | |||||||||||||||||||
| Activity and asset management | 15,082 | |||||||||||||||||||
| Interest income | 26,142 | |||||||||||||||||||
| Provision for losses on notes receivable | (1,773 | ) | ||||||||||||||||||
| General and administrative expenses | (54,612 | ) | ||||||||||||||||||
| Other income, net | 3,804 | |||||||||||||||||||
Total FCF | $ | 463,749 | ||||||||||||||||||
| Reconciliation of Net Income to FFO, AFFO and FCF: | For the Nine Months Ended September 30, 2004 | |||||||||||
| FFO | AFFO | FCF | ||||||||||
| Net income | $ | 191,222 | $ | 191,222 | $ | 191,222 | ||||||
| Total interest expense after minority partners’ share | — | — | 256,810 | |||||||||
| Dividends on preferred stock | (64,121 | ) | (64,121 | ) | — | |||||||
| Redemption related preferred stock issuance costs | (2,186 | ) | — | — | ||||||||
| Proportionate share of depreciation and amortization | 250,965 | 250,965 | 250,965 | |||||||||
| Depreciation and amortization related to non-real estate assets | (13,481 | ) | (13,481 | ) | — | |||||||
| Gain on dispositions of real estate related to unconsolidated entities and other | (41,218 | ) | (41,218 | ) | (41,218 | ) | ||||||
| Gain on dispositions of land | 35,455 | 35,455 | — | |||||||||
| Impairment loss on investment in unconsolidated real estate partnerships | — | 2,316 | 2,316 | |||||||||
| Cumulative effect of change in accounting principle | 3,957 | 3,957 | 3,957 | |||||||||
| Discontinued operations: | ||||||||||||
| Income from discontinued operations, net | — | — | (162,203 | ) | ||||||||
| Depreciation of rental property, net of minority partners’ interest | 12,075 | 12,075 | — | |||||||||
| Gain on dispositions of real estate, net of minority partners’ interest | (196,066 | ) | (196,066 | ) | — | |||||||
| Impairment loss on real estate assets sold or held for sale, net of minority partners’ interest | — | 9,942 | — | |||||||||
| Recovery of deficit distributions to minority partners | (3,308 | ) | (3,308 | ) | — | |||||||
| Income tax arising from disposals | 13,235 | 13,235 | — | |||||||||
| Deficit distributions to minority partners | 14,907 | 14,907 | 14,907 | |||||||||
| Capital Replacements | — | (54,417 | ) | (54,417 | ) | |||||||
| Dividends/distributions on dilutive preferred securities | 2,757 | 136 | — | |||||||||
| Minority interest in Aimco Operating Partnership’s share of above adjustments | (8,235 | ) | (3,934 | ) | — | |||||||
| Minority interest in Aimco Operating Partnership | — | — | 1,410 | |||||||||
Total | $ | 195,958 | $ | 157,665 | $ | 463,749 | ||||||
Supplemental Schedule 3
Business Component Proportionate Balance Sheet Presentation
As of September 30, 2004 (in thousands)
(unaudited)
| Consolidated | Total | Total | ||||||||||||||||||||||||||||||
| GAAP | Proportionate | Proportionate | Proportionate | |||||||||||||||||||||||||||||
| Balance Sheet | Share of | Minority | Consolidated | Consolidated | ||||||||||||||||||||||||||||
| As of | Unconsolidated | Partners' | Balance | Aimco | Balance | |||||||||||||||||||||||||||
| September 30, 2004 | Partnerships [a] | Interest [b] | Sheet [c] | Conventional | Capital | Corporate | Sheet [c] | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
| Buildings and improvements | $ | 8,423,560 | $ | 542,543 | $ | (1,309,238 | ) | $ | 7,656,865 | $ | 6,878,496 | $ | 778,369 | $ | — | $ | 7,656,865 | |||||||||||||||
| Land | 2,162,735 | 70,894 | (127,517 | ) | 2,106,112 | 1,981,264 | 124,848 | — | 2,106,112 | |||||||||||||||||||||||
| Accumulated depreciation | (1,934,939 | ) | (138,933 | ) | 588,244 | (1,485,628 | ) | (1,321,453 | ) | (164,175 | ) | — | (1,485,628 | ) | ||||||||||||||||||
| TOTAL REAL ESTATE | 8,651,356 | 474,504 | (848,511 | ) | 8,277,349 | 7,538,307 | 739,042 | — | 8,277,349 | |||||||||||||||||||||||
| Cash and cash equivalents | 122,570 | 16,350 | (21,474 | ) | 117,446 | 91,896 | 25,550 | 117,446 | ||||||||||||||||||||||||
| Restricted cash | 269,223 | 42,838 | (38,449 | ) | 273,612 | 181,309 | 92,303 | — | 273,612 | |||||||||||||||||||||||
| Accounts receivable | 56,327 | 2,766 | — | 59,093 | 40,395 | 18,698 | — | 59,093 | ||||||||||||||||||||||||
| Accounts receivable from affiliates | 54,451 | — | — | 54,451 | 5,445 | 49,006 | — | 54,451 | ||||||||||||||||||||||||
| Deferred financing costs | 67,139 | — | — | 67,139 | 60,810 | 6,329 | — | 67,139 | ||||||||||||||||||||||||
| Notes receivable from unconsolidated real estate partnerships | 155,206 | — | — | 155,206 | 95,454 | 59,752 | — | 155,206 | ||||||||||||||||||||||||
| Notes receivable from non-affiliates | 51,318 | — | — | 51,318 | 21,006 | 30,312 | — | 51,318 | ||||||||||||||||||||||||
| Investment in unconsolidated real estate partnerships | 183,276 | (135,355 | ) | — | 47,921 | 54,869 | (6,948 | ) | — | 47,921 | ||||||||||||||||||||||
| Other assets | 309,568 | [d] | 23,442 | — | 333,010 | 293,365 | 39,645 | — | 333,010 | |||||||||||||||||||||||
| Assets held for sale | 264,541 | — | — | 264,541 | 235,813 | 28,728 | 264,541 | |||||||||||||||||||||||||
| TOTAL ASSETS | $ | 10,184,975 | $ | 424,545 | $ | (908,434 | ) | $ | 9,701,086 | $ | 8,618,669 | $ | 1,082,417 | $ | — | $ | 9,701,086 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
| Secured tax-exempt bond financing | $ | 1,092,607 | $ | 36,205 | $ | (64,580 | ) | $ | 1,064,232 | $ | 1,054,659 | $ | 9,573 | $ | — | $ | 1,064,232 | |||||||||||||||
| Secured notes payable | 4,477,074 | 311,784 | (724,130 | ) | 4,064,728 | 3,502,620 | 562,108 | — | 4,064,728 | |||||||||||||||||||||||
| Mandatorily redeemable preferred securities | 15,019 | — | — | 15,019 | — | — | 15,019 | 15,019 | ||||||||||||||||||||||||
| Term loans | 250,000 | — | — | 250,000 | — | — | 250,000 | 250,000 | ||||||||||||||||||||||||
| Credit facility | 168,400 | — | — | 168,400 | — | — | 168,400 | 168,400 | ||||||||||||||||||||||||
| TOTAL INDEBTEDNESS | 6,003,100 | 347,989 | (788,710 | ) | 5,562,379 | 4,557,279 | 571,681 | 433,419 | 5,562,379 | |||||||||||||||||||||||
| Accounts payable | 46,369 | 76,556 | — | 122,925 | 78,978 | 43,947 | — | 122,925 | ||||||||||||||||||||||||
| Accrued liabilities and other | 375,081 | — | — | 375,081 | 287,446 | 87,635 | — | 375,081 | ||||||||||||||||||||||||
| Deferred income | 25,289 | — | — | 25,289 | 21,850 | 3,439 | — | 25,289 | ||||||||||||||||||||||||
| Security deposits | 37,879 | — | — | 37,879 | 34,223 | 3,656 | — | 37,879 | ||||||||||||||||||||||||
| Deferred income taxes payable | 29,613 | — | — | 29,613 | 29,613 | — | — | 29,613 | ||||||||||||||||||||||||
| Liabilities related to assets held for sale | 209,023 | — | — | 209,023 | 185,253 | 23,770 | — | 209,023 | ||||||||||||||||||||||||
| TOTAL LIABILITIES | 6,726,354 | 424,545 | (788,710 | ) | 6,362,189 | 5,194,642 | 734,128 | 433,419 | 6,362,189 | |||||||||||||||||||||||
| . | ||||||||||||||||||||||||||||||||
| Minority interest in consolidated real estate partnerships | 221,896 | — | (119,724 | ) | 102,172 | 103,416 | (1,244 | ) | — | 102,172 | ||||||||||||||||||||||
| Minority interest in Aimco Operating Partnership | 278,184 | — | — | 278,184 | — | — | 278,184 | 278,184 | ||||||||||||||||||||||||
| NET OPERATING ASSETS | �� | $ | — | $ | — | $ | 2,958,541 | $ | 3,320,611 | $ | 349,533 | $ | (711,603 | ) | $ | 2,958,541 | ||||||||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
| Class A Common Stock | 948 | |||||||||||||||||||||||||||||||
| Additional paid-in capital | 3,068,069 | |||||||||||||||||||||||||||||||
| Perpetual preferred stock | 841,500 | |||||||||||||||||||||||||||||||
| Convertible preferred stock | 150,000 | |||||||||||||||||||||||||||||||
| Distributions in excess of earnings | (1,043,052 | ) | ||||||||||||||||||||||||||||||
| Unvested restricted stock | (19,336 | ) | ||||||||||||||||||||||||||||||
| Notes due on common stock purchases | (39,588 | ) | ||||||||||||||||||||||||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 2,958,541 | |||||||||||||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 10,184,975 | ||||||||||||||||||||||||||||||
| [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, minority partners’ share of notes receivable is $90.6 million. | |||
| [c] | Aimco’s proportionate consolidated balance sheet, which includes the GAAP balance sheet as of September 30, 2004, plus Aimco’s proportionate share of selected unconsolidated and less minority partners’ share of selected balance sheet data. | |||
| [d] | Other assets includes $190.6 million related to goodwill and $20.1 million related to investment in management contracts. | |||
Supplemental Schedule 4
Share Data
As of September 30, 2004
(in thousands)
(unaudited)
| Shares/Units | Current Quarter | Current Quarter | Current Quarter | |||||||||||||||||||||
| Outstanding | Weighted Average | Weighted Average | Weighted Average | |||||||||||||||||||||
| at September | Outstanding Shares | Outstanding Shares | Outstanding Shares | |||||||||||||||||||||
| Coupon | Amount | 30, 2004 | (EPS) | (FFO) | (AFFO) | |||||||||||||||||||
| Class A Common Stock | 94,762 | 93,247 | (1) | 93,247 | 93,247 | |||||||||||||||||||
| Common stock equivalents | — | 147 | 147 | 147 | ||||||||||||||||||||
| Common partnership units and equivalents | 10,864 | — | — | — | ||||||||||||||||||||
| Total | 105,626 | 93,394 | 93,394 | 93,394 | ||||||||||||||||||||
Perpetual Preferred Stock (2): | ||||||||||||||||||||||||
| Class D (3) | 8.75 | % | $ | 67,500 | 2,700 | — | — | — | ||||||||||||||||
| Class G | 9.375 | % | 101,250 | 4,050 | — | — | — | |||||||||||||||||
| Class Q | 10.10 | % | 63,250 | 2,530 | — | — | — | |||||||||||||||||
| Class R | 10.00 | % | 173,500 | 6,940 | — | — | — | |||||||||||||||||
| Class T | 8.00 | % | 150,000 | 6,000 | — | — | — | |||||||||||||||||
| Class U | 7.75 | % | 200,000 | 8,000 | — | — | — | |||||||||||||||||
| Class V (4) | 8.00 | % | 86,250 | 3,450 | — | — | — | |||||||||||||||||
| Total perpetual | $ | 841,750 | 33,670 | — | — | — | ||||||||||||||||||
Convertible Preferred Stock: | ||||||||||||||||||||||||
| Class W (4) | 8.10 | % | 100,000 | 1,905 | (5) | — | — | — | ||||||||||||||||
| Class X (4) | 8.50 | % | 50,000 | 2,000 | (5) | — | — | — | ||||||||||||||||
| 150,000 | 3,905 | — | — | — | ||||||||||||||||||||
| Preferred Partnership Units | 8.76 | %(6) | 90,550 | 3,311 | — | 1,590 | 114 | |||||||||||||||||
| Total convertible | $ | 240,550 | 7,216 | — | 1,590 | 114 | ||||||||||||||||||
| Total preferred securities | $ | 1,082,300 | 40,886 | — | 1,590 | 114 | ||||||||||||||||||
| Mandatorily redeemable convertible securities | 6.50 | % | $ | 15,019 | 300 | — | — | — | ||||||||||||||||
| Total common, common equivalents and dilutive securities | 93,394 | 94,984 | 93,508 | |||||||||||||||||||||
| (1) | Includes a deduction of 1,461 for non-recourse shares and unvested restricted stock. | |||
| (2) | Preferred stock amounts are shown gross of any eliminations necessary for the GAAP Consolidated Balance Sheet. | |||
| (3) | On November 5, 2004, 1,450 shares ($36,250) of Class D will be redeemed. | |||
| (4) | Classes V, W and X were issued at the end of September 2004. | |||
| (5) | Conversion ratio for Class W is 1.0 and for Class X is 0.4762. | |||
| (6) | Coupon is based on a weighted average. | |||
Supplemental Schedule 5
Selected Debt Structure and Maturity Data
As of September 30, 2004
(dollars in thousands)
(unaudited)
I. Debt Balances and Data
| Proportionate Share | Total Aimco | Weighted Average | Weighted | |||||||||||||||||||||
| Debt | Consolidated | of Unconsolidated | Minority Interest | Share | Maturity | Average Rate | ||||||||||||||||||
Property Debt: | ||||||||||||||||||||||||
Conventional Portfolio: | ||||||||||||||||||||||||
| Fixed rate secured notes payable | $ | 3,633,703 | $ | 127,237 | $ | (604,022 | ) | $ | 3,156,918 | 13.2 | 7.01 | % | ||||||||||||
| Floating rate secured notes payable | 390,262 | 3,512 | (48,072 | ) | 345,702 | 3.8 | 3.07 | % | ||||||||||||||||
Total secured notes payable: | 4,023,965 | 130,749 | (652,094 | ) | 3,502,620 | 12.3 | 6.62 | % | ||||||||||||||||
| Fixed rate tax-exempt bonds | 319,829 | 16,919 | (9,012 | ) | 327,736 | 16.7 | 5.84 | % | ||||||||||||||||
| Floating rate tax-exempt bonds | 727,245 | 11,738 | (12,060 | ) | 726,923 | 11.8 | 1.79 | % | ||||||||||||||||
Total tax-exempt bonds: | 1,047,074 | 28,657 | (21,072 | ) | 1,054,659 | 13.3 | 3.05 | % | ||||||||||||||||
Total Property Debt on Conventional Portfolio | 5,071,039 | 159,406 | (673,166 | ) | 4,557,279 | 12.5 | 5.79 | % | ||||||||||||||||
Affordable Portfolio: | ||||||||||||||||||||||||
| Fixed rate secured notes payable | 444,173 | 172,713 | (72,036 | ) | 544,850 | 18.1 | 6.08 | % | ||||||||||||||||
| Floating rate secured notes payable | 8,936 | 8,322 | — | 17,258 | 4.4 | 3.19 | % | |||||||||||||||||
Total secured notes payable: | 453,109 | 181,035 | (72,036 | ) | 562,108 | 17.7 | 5.99 | % | ||||||||||||||||
| Fixed rate tax-exempt bonds | 45,533 | 5,965 | (43,508 | ) | 7,990 | 25.1 | 8.43 | % | ||||||||||||||||
| Floating rate tax-exempt bonds | — | 1,583 | — | 1,583 | 10.0 | 5.70 | % | |||||||||||||||||
Total tax-exempt bonds: | 45,533 | 7,548 | (43,508 | ) | 9,573 | 22.6 | 7.98 | % | ||||||||||||||||
Total Property Debt on Affordable Portfolio | 498,642 | 188,583 | (115,544 | ) | 571,681 | 17.8 | 6.03 | % | ||||||||||||||||
Total Property Debt(1) (2) | $ | 5,569,681 | $ | 347,989 | $ | (788,710 | ) | $ | 5,128,960 | 13.1 | 5.81 | % | ||||||||||||
Corporate Debt: | ||||||||||||||||||||||||
| Term Loan | $ | 250,000 | $ | — | $ | — | $ | 250,000 | — | 4.70 | %(3) | |||||||||||||
| Credit Facility | 168,400 | — | — | 168,400 | — | 4.95 | %(3) | |||||||||||||||||
Total Corporate Debt | $ | 418,400 | $ | — | $ | — | $ | 418,400 | — | 4.80 | % | |||||||||||||
| Mandatorily Redeemable Securities | $ | 15,019 | $ | — | $ | — | $ | 15,019 | — | 6.50 | % | |||||||||||||
Total Debt | $ | 6,003,100 | $ | 347,989 | $ | (788,710 | ) | $ | 5,562,379 | — | 5.74 | % | ||||||||||||
| (1) | At September 30, 2004, Aimco’s consolidated property debt includes 127 non-recourse loans with a carrying value in excess of 90% of the carrying value of the related collateral real estate assets. Such property debt and real estate assets reported in the consolidated balance sheet total $1,214 million and $1,064 million, respectively, at September 30, 2004. As a result of appreciation in real estate market values, the fair value of our real estate assets typically exceeds the related carrying value. | |||
| (2) | The total consolidated property debt shown above excludes $201.8 million of consolidated property debt, with a weighted average interest rate of 7.21%, classified as liabilities related to assets held for sale on Aimco’s consolidated balance sheet. | |||
| (3) | Effective in May 2004, the LIBOR spread on Aimco’s credit facility and term loans increased 25 basis points from 285 to 310. On November 2, 2004, Aimco completed a modification of its credit facility and term loan, reducing the interest rate spread on the term loan to 200 basis points over LIBOR and the credit facility to 175 basis points over LIBOR. | |||
II. Debt Maturities
| Consolidated Property Debt | ||||||||||||||||||||
| Percent | Average | |||||||||||||||||||
| Amortization | Maturities | Total | of Total | Rate | ||||||||||||||||
| 2004 (remaining) | $ | 31,468 | $ | 54,465 | $ | 85,933 | 1.5 | % | 6.77 | % | ||||||||||
| 2005 | 132,289 | 128,087 | 260,376 | 4.7 | % | 5.82 | % | |||||||||||||
| 2006 | 134,699 | 473,767 | 608,466 | 10.9 | % | 5.59 | % | |||||||||||||
| 2007 | 142,061 | 224,251 | 366,312 | 6.6 | % | 3.77 | % | |||||||||||||
| 2008 | 146,462 | 181,200 | 327,662 | 5.9 | % | 5.32 | % | |||||||||||||
| Thereafter | 3,920,932 | 70.4 | % | |||||||||||||||||
Total Property Debt: | $ | 586,979 | $ | 1,061,770 | $ | 5,569,681 | 100.0 | % | ||||||||||||
| Corporate Debt | Percent | Average | ||||||||||||||||||
| Amortization | Maturities | Total | of Total | Rate | ||||||||||||||||
| 2005 | $ | — | $ | 168,400 | $ | 168,400 | 40.2 | % | 4.95 | % | ||||||||||
| 2008 | — | 250,000 | 250,000 | 59.8 | % | 4.70 | % | |||||||||||||
Total Corporate Debt: | $ | — | $ | 418,400 | $ | 418,400 | 100.0 | % | ||||||||||||
Proforma of Corporate Debt with Credit Facility and Term Loan Modifications
| Corporate Debt | Percent | Average | ||||||||||||||||||
| Amortization | Maturities | Total | of Total | Rate | ||||||||||||||||
| 2007 | $ | — | $ | 168,400 | $ | 168,400 | 36.0 | % | LIBOR + 175 | bps | ||||||||||
| 2009(1) | — | 300,000 | 300,000 | 64.0 | % | LIBOR + 200 | bps | |||||||||||||
Total Corporate Debt: | $ | — | $ | 468,400 | $ | 468,400 | 100.0 | % | ||||||||||||
| (1) | Effective with the November 2, 2004 modification, the term loan increased from $250 million to $300 million. |
Supplemental Schedule 5 (Continued)
Selected Debt Structure and Maturity Data
As of September 30, 2004
(in millions)
(unaudited)
III. Loan Closings
THIRD QUARTER LOAN CLOSINGS
| Original | New | Aimco | Aimco | Aimco | ||||||||||||||||||||||||
| Loan | Loan | Share | Share | Net | Prior | New | ||||||||||||||||||||||
| Mortgage Type (all non-recourse) | Amount | Amount | Original Loan | New Loan | Proceeds (1) | Rate | Rate | |||||||||||||||||||||
| Refinancings: | ||||||||||||||||||||||||||||
| Fixed Rate | $ | 105.1 | $ | 142.0 | $ | 105.1 | $ | 142.0 | $ | 37.2 | 6.79 | % | 6.71 | % | ||||||||||||||
| Floating Rate | 140.0 | 186.0 | 119.9 | 165.0 | 50.0 | 3.42 | % | 2.73 | % | |||||||||||||||||||
| Affordable Mark-to-Market and other | 23.8 | 26.9 | 6.6 | 7.4 | (0.4 | ) | 10.70 | % | 4.35 | % | ||||||||||||||||||
| Loans relating to acquisitions: | ||||||||||||||||||||||||||||
| Fixed Rate | — | 26.5 | — | 26.5 | 26.3 | — | 5.13 | % | ||||||||||||||||||||
Totals | $ | 268.9 | $ | 381.4 | $ | 231.6 | $ | 340.9 | $ | 113.1 | 5.38 | % | 4.49 | % | ||||||||||||||
| YEAR-TO-DATE LOAN CLOSINGS | Original | New | Aimco | Aimco | Aimco | |||||||||||||||||||||||
| Loan | Loan | Share | Share | Net | Prior | New | ||||||||||||||||||||||
| Mortgage Type (all non-recourse) | Amount | Amount | Original Loan | New Loan | Proceeds (1) | Rate | Rate | |||||||||||||||||||||
| Refinancings: | ||||||||||||||||||||||||||||
| Fixed Rate | $ | 129.8 | $ | 183.4 | $ | 119.0 | $ | 168.4 | $ | 48.7 | 7.01 | % | 6.65 | % | ||||||||||||||
| Floating Rate | 151.8 | 205.5 | 128.8 | 177.9 | 54.3 | 3.77 | % | 2.87 | % | |||||||||||||||||||
| Tax-Exempt Bonds | 75.8 | 97.5 | 62.6 | 62.5 | 5.8 | 6.97 | % | 3.82 | % | |||||||||||||||||||
| Affordable Mark-to-Market and other | 81.1 | 135.0 | 34.8 | 62.1 | 23.6 | 9.86 | % | 3.72 | % | |||||||||||||||||||
| Loans relating to acquisitions: | ||||||||||||||||||||||||||||
| Fixed Rate | — | 38.7 | — | 38.7 | 38.4 | — | 5.20 | % | ||||||||||||||||||||
| Floating Rate | — | 88.1 | — | 88.1 | 87.4 | — | 2.60 | % | ||||||||||||||||||||
Totals | $ | 438.5 | $ | 748.2 | $ | 345.2 | $ | 597.7 | $ | 258.2 | 6.41 | % | 4.16 | % | ||||||||||||||
| (1) | Aimco net proceeds is after transaction costs |
IV. Capitalization
| At | Percent | At | Percent | At | Percent | |||||||||||||||||||
| March 31, 2004 | of Total | June 30, 2004 | of Total | September 30, 2004 | of Total | |||||||||||||||||||
| Corporate debt | $ | 471 | 5 | % | $ | 629 | 6 | % | $ | 418 | 4 | % | ||||||||||||
| Property debt (Aimco’s share) | 5,380 | 54 | % | 5,294 | 54 | % | 5,129 | 52 | % | |||||||||||||||
| Mandatorily redeemable securities | 15 | 0 | % | 15 | 0 | % | 15 | 0 | % | |||||||||||||||
| Total Debt | 5,866 | 5,938 | 5,562 | |||||||||||||||||||||
| Less: Cash and restricted cash | (396 | ) | -4 | % | (367 | ) | -4 | % | (391 | ) | -4 | % | ||||||||||||
Net Debt | 5,470 | 55 | % | 5,571 | 56 | % | 5,171 | 52 | % | |||||||||||||||
| Preferred equity | 1,146 | 12 | % | 1,046 | 11 | % | 1,082 | 11 | % | |||||||||||||||
| Common equity at market (2) | 3,271 | 33 | % | 3,287 | 33 | % | 3,673 | 37 | % | |||||||||||||||
Total Capitalization | $ | 9,887 | 100 | % | $ | 9,904 | 100 | % | $ | 9,926 | 100 | % | ||||||||||||
| (2) | Common equity at market at September 30, 2004 was calculated using 105.6 million shares of Class A Common Stock and common partnership units outstanding multiplied by the closing price of $34.78 per share/unit, as of September 30, 2004 |
V. Ratings on Preferred Securities
| Moody’s Investor Service Standard and Poors Fitch | Ba3 (negative outlook) BB+ (negative outlook) BB+ (negative outlook) |
Supplemental Schedule 6(a)
Same Store Sales
Third Quarter 2004 versus Third Quarter 2003
(unaudited) (in thousands, except site and unit data)
| Change Three Months Ended September 30, 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | From September 30, 2003 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2004 | September 30, 2003 | Revenue | Expenses | NOI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sites | Units | Owner% | REV | EXP | NOI | REV | EXP | NOI | Amt | % | Amt | % | Amt | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Northeast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Baltimore | 11 | 2,711 | 87.75 | % | 6,588 | 2,239 | 4,349 | 6,673 | 2,245 | 4,428 | (85 | ) | -1.3 | % | (6 | ) | -0.3 | % | (79 | ) | -1.8 | % | ||||||||||||||||||||||||||||||||||||||||
| New England | 14 | 5,384 | 96.84 | % | 16,483 | 5,576 | 10,907 | 16,974 | 5,163 | 11,811 | (491 | ) | -2.9 | % | 413 | 8.0 | % | (904 | ) | -7.7 | % | |||||||||||||||||||||||||||||||||||||||||
| Philadelphia | 12 | 5,734 | 79.47 | % | 14,158 | 5,363 | 8,795 | 14,456 | 5,245 | 9,211 | (298 | ) | -2.1 | % | 118 | 2.2 | % | (416 | ) | -4.5 | % | |||||||||||||||||||||||||||||||||||||||||
| Washington | 28 | 12,456 | 83.57 | % | 30,831 | 11,211 | 19,620 | 30,355 | 10,031 | 20,324 | 476 | 1.6 | % | 1,180 | 11.8 | % | (704 | ) | -3.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| 65 | 26,285 | 85.83 | % | 68,060 | 24,389 | 43,671 | 68,458 | 22,684 | 45,774 | (398 | ) | -0.6 | % | 1,705 | 7.5 | % | (2,103 | ) | -4.6 | % | ||||||||||||||||||||||||||||||||||||||||||
Southeast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 20 | 5,712 | 84.63 | % | 8,499 | 4,539 | 3,960 | 9,125 | 4,684 | 4,441 | (626 | ) | -6.9 | % | (145 | ) | -3.1 | % | (481 | ) | -10.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Augusta-Savannah | 5 | 1,004 | 87.19 | % | 1,612 | 691 | 921 | 1,532 | 607 | 925 | 80 | 5.2 | % | 84 | 13.8 | % | (4 | ) | -0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Charlotte-Gastonia-Rock Hill | 6 | 1,398 | 89.50 | % | 1,920 | 670 | 1,250 | 1,908 | 911 | 997 | 12 | 0.6 | % | (241 | ) | -26.5 | % | 253 | 25.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Columbia-Charleston | 9 | 2,118 | 72.99 | % | 2,820 | 1,404 | 1,416 | 2,775 | 1,238 | 1,537 | 45 | 1.6 | % | 166 | 13.4 | % | (121 | ) | -7.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Nashville | 8 | 2,492 | 72.10 | % | 3,684 | 1,491 | 2,193 | 3,674 | 1,420 | 2,254 | 10 | 0.3 | % | 71 | 5.0 | % | (61 | ) | -2.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Norfolk | 12 | 3,565 | 69.62 | % | 6,163 | 2,015 | 4,148 | 5,831 | 1,903 | 3,928 | 332 | 5.7 | % | 112 | 5.9 | % | 220 | 5.6 | % | |||||||||||||||||||||||||||||||||||||||||||
| Raleigh-Durham-Chapel Hill | 10 | 2,843 | 71.64 | % | 3,380 | 1,966 | 1,414 | 3,412 | 1,614 | 1,798 | (32 | ) | -0.9 | % | 352 | 21.8 | % | (384 | ) | -21.4 | % | |||||||||||||||||||||||||||||||||||||||||
| Richmond-Petersburg | 6 | 1,284 | 76.22 | % | 2,197 | 751 | 1,446 | 2,161 | 741 | 1,420 | 36 | 1.7 | % | 10 | 1.3 | % | 26 | 1.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 22 | 4,766 | 80.17 | % | 6,034 | 3,629 | 2,405 | 6,127 | 3,068 | 3,059 | (93 | ) | -1.5 | % | 561 | 18.3 | % | (654 | ) | -21.4 | % | |||||||||||||||||||||||||||||||||||||||||
| 98 | 25,182 | 77.92 | % | 36,309 | 17,156 | 19,153 | 36,545 | 16,186 | 20,359 | (236 | ) | -0.6 | % | 970 | 6.0 | % | (1,206 | ) | -5.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Florida | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 4 | 1,204 | 83.05 | % | 1,932 | 848 | 1,084 | 1,921 | 785 | 1,136 | 11 | 0.6 | % | 63 | 8.0 | % | (52 | ) | -4.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Miami-Fort Lauderdale | 8 | 2,397 | 76.95 | % | 4,817 | 2,046 | 2,771 | 4,578 | 1,919 | 2,659 | 239 | 5.2 | % | 127 | 6.6 | % | 112 | 4.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Orlando-Daytona | 24 | 6,077 | 90.41 | % | 10,699 | 5,252 | 5,447 | 10,544 | 4,752 | 5,792 | 155 | 1.5 | % | 500 | 10.5 | % | (345 | ) | -6.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Tampa-St. Petersburg | 21 | 5,637 | 70.84 | % | 7,798 | 3,788 | 4,010 | 7,457 | 3,400 | 4,057 | 341 | 4.6 | % | 388 | 11.4 | % | (47 | ) | -1.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| West Palm Beach-Boca | 5 | 1,505 | 100.00 | % | 3,586 | 1,713 | 1,873 | 3,529 | 1,356 | 2,173 | 57 | 1.6 | % | 357 | 26.3 | % | (300 | ) | -13.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 1 | 136 | 72.97 | % | 206 | 92 | 114 | 213 | 79 | 134 | (7 | ) | -3.3 | % | 13 | 16.5 | % | (20 | ) | -14.9 | % | |||||||||||||||||||||||||||||||||||||||||
| 63 | 16,956 | 82.19 | % | 29,038 | 13,739 | 15,299 | 28,242 | 12,291 | 15,951 | 796 | 2.8 | % | 1,448 | 11.8 | % | (652 | ) | -4.1 | % | |||||||||||||||||||||||||||||||||||||||||||
Midwest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 22 | 6,319 | 82.02 | % | 14,008 | 6,601 | 7,407 | 14,494 | 6,561 | 7,933 | (486 | ) | -3.4 | % | 40 | 0.6 | % | (526 | ) | -6.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Cincinnati-Dayton | 19 | 3,733 | 68.17 | % | 4,906 | 2,405 | 2,501 | 4,885 | 2,108 | 2,777 | 21 | 0.4 | % | 297 | 14.1 | % | (276 | ) | -9.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Columbus | 9 | 2,012 | 67.70 | % | 2,244 | 1,109 | 1,135 | 2,418 | 981 | 1,437 | (174 | ) | -7.2 | % | 128 | 13.0 | % | (302 | ) | -21.0 | % | |||||||||||||||||||||||||||||||||||||||||
| Detroit-Ann Arbor | 7 | 1,909 | 61.20 | % | 2,362 | 891 | 1,471 | 2,558 | 1,225 | 1,333 | (196 | ) | -7.7 | % | (334 | ) | -27.3 | % | 138 | 10.4 | % | |||||||||||||||||||||||||||||||||||||||||
| Grand Rapids-Lansing | 13 | 4,734 | 65.31 | % | 5,474 | 3,128 | 2,346 | 5,847 | 2,691 | 3,156 | (373 | ) | -6.4 | % | 437 | 16.2 | % | (810 | ) | -25.7 | % | |||||||||||||||||||||||||||||||||||||||||
| Indianapolis-Fort Wayne | 36 | 12,479 | 89.19 | % | 17,277 | 8,087 | 9,190 | 17,414 | 9,595 | 7,819 | (137 | ) | -0.8 | % | (1,508 | ) | -15.7 | % | 1,371 | 17.5 | % | |||||||||||||||||||||||||||||||||||||||||
| Kansas City | 4 | 953 | 69.31 | % | 1,250 | 531 | 719 | 1,233 | 551 | 682 | 17 | 1.4 | % | (20 | ) | -3.6 | % | 37 | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Minneapolis-St Paul | 5 | 1,430 | 77.98 | % | 3,174 | 1,650 | 1,524 | 4,026 | 1,884 | 2,142 | (852 | ) | -21.2 | % | (234 | ) | -12.4 | % | �� | (618 | ) | -28.9 | % | |||||||||||||||||||||||||||||||||||||||
| Other Markets | 12 | 2,458 | 51.18 | % | 2,225 | 1,043 | 1,182 | 2,208 | 1,034 | 1,174 | 17 | 0.8 | % | 9 | 0.9 | % | 8 | 0.7 | % | |||||||||||||||||||||||||||||||||||||||||||
| 127 | 36,027 | 76.49 | % | 52,920 | 25,445 | 27,475 | 55,083 | 26,630 | 28,453 | (2,163 | ) | -3.9 | % | (1,185 | ) | -4.4 | % | (978 | ) | -3.4 | % | |||||||||||||||||||||||||||||||||||||||||
Texas | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Austin-San Marcos | 10 | 2,217 | 92.59 | % | 3,403 | 1,902 | 1,501 | 3,663 | 2,046 | 1,617 | (260 | ) | -7.1 | % | (144 | ) | -7.0 | % | (116 | ) | -7.2 | % | ||||||||||||||||||||||||||||||||||||||||
| Dallas-Fort Worth | 24 | 6,235 | 72.44 | % | 7,104 | 4,644 | 2,460 | 7,374 | 3,983 | 3,391 | (270 | ) | -3.7 | % | 661 | 16.6 | % | (931 | ) | -27.5 | % | |||||||||||||||||||||||||||||||||||||||||
| Houston-Galveston | 36 | 9,570 | 66.97 | % | 10,540 | 6,699 | 3,841 | 11,034 | 5,689 | 5,345 | (494 | ) | -4.5 | % | 1,010 | 17.8 | % | (1,504 | ) | -28.1 | % | |||||||||||||||||||||||||||||||||||||||||
| San Antonio | 11 | 2,647 | 93.65 | % | 3,991 | 2,254 | 1,737 | 3,891 | 1,940 | 1,951 | 100 | 2.6 | % | 314 | 16.2 | % | (214 | ) | -11.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 7 | 1,500 | 72.98 | % | 1,648 | 912 | 736 | 1,635 | 781 | 854 | 13 | 0.8 | % | 131 | 16.8 | % | (118 | ) | -13.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| 88 | 22,169 | 74.66 | % | 26,686 | 16,411 | 10,275 | 27,597 | 14,439 | 13,158 | (911 | ) | -3.3 | % | 1,972 | 13.7 | % | (2,883 | ) | -21.9 | % | ||||||||||||||||||||||||||||||||||||||||||
West | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver - Front Range | 23 | 5,075 | 81.86 | % | 8,532 | 4,177 | 4,355 | 8,249 | 3,212 | 5,037 | 283 | 3.4 | % | 965 | 30.0 | % | (682 | ) | -13.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 2 | 734 | 100.00 | % | 1,343 | 567 | 776 | 1,222 | 544 | 678 | 121 | 9.9 | % | 23 | 4.2 | % | 98 | 14.5 | % | |||||||||||||||||||||||||||||||||||||||||||
| Phoenix-Mesa | 27 | 7,361 | 92.12 | % | 10,948 | 6,230 | 4,718 | 10,655 | 5,718 | 4,937 | 293 | 2.7 | % | 512 | 9.0 | % | (219 | ) | -4.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Salt Lake City-Ogden | 4 | 1,511 | 83.37 | % | 2,124 | 900 | 1,224 | 2,204 | 803 | 1,401 | (80 | ) | -3.6 | % | 97 | 12.1 | % | (177 | ) | -12.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Seattle | 4 | 468 | 54.54 | % | 569 | 311 | 258 | 559 | 286 | 273 | 10 | 1.8 | % | 25 | 8.7 | % | (15 | ) | -5.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Tucson | 3 | 887 | 100.00 | % | 1,274 | 667 | 607 | 1,202 | 594 | 608 | 72 | 6.0 | % | 73 | 12.3 | % | (1 | ) | -0.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 4 | 760 | 50.97 | % | 677 | 341 | 336 | 677 | 348 | 329 | 0 | 0.0 | % | (7 | ) | -2.0 | % | 7 | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| 67 | 16,796 | 86.08 | % | 25,467 | 13,193 | 12,274 | 24,768 | 11,505 | 13,263 | 699 | 2.8 | % | 1,688 | 14.7 | % | (989 | ) | -7.5 | % | |||||||||||||||||||||||||||||||||||||||||||
California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bay Area | 6 | 1,661 | 57.99 | % | 2,891 | 1,230 | 1,661 | 3,051 | 1,065 | 1,986 | (160 | ) | -5.2 | % | 165 | 15.5 | % | (325 | ) | -16.4 | % | |||||||||||||||||||||||||||||||||||||||||
| Los Angeles-Long Beach-Ventura | 11 | 2,179 | 85.49 | % | 7,984 | 2,377 | 5,607 | 7,679 | 2,393 | 5,286 | 305 | 4.0 | % | (16 | ) | -0.7 | % | 321 | 6.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Orange County-Riverside | 7 | 1,611 | 81.95 | % | 4,775 | 1,549 | 3,226 | 4,608 | 1,605 | 3,003 | 167 | 3.6 | % | (56 | ) | -3.5 | % | 223 | 7.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Sacramento | 1 | 180 | 22.05 | % | 99 | 54 | 45 | 101 | 43 | 58 | (2 | ) | -2.0 | % | 11 | 25.6 | % | (13 | ) | -22.4 | % | |||||||||||||||||||||||||||||||||||||||||
| San Diego | 6 | 2,123 | 93.28 | % | 6,093 | 1,874 | 4,219 | 5,975 | 1,804 | 4,171 | 118 | 2.0 | % | 70 | 3.9 | % | 48 | 1.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| 31 | 7,754 | 79.53 | % | 21,842 | 7,084 | 14,758 | 21,414 | 6,910 | 14,504 | 428 | 2.0 | % | 174 | 2.5 | % | 254 | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| SAME STORE SALES TOTALS | 539 | 151,169 | 79.94 | % | 260,322 | 117,417 | 142,905 | 262,107 | 110,645 | 151,462 | (1,785 | ) | -0.7 | % | 6,772 | 6.1 | %(2) | (8,557 | ) | -5.6 | %(2) | |||||||||||||||||||||||||||||||||||||||||
| Reconciliation to Total Rental and other property revenues and property operating expense per GAAP Income Statement (1) | 99,094 | 58,673 | 40,421 | 78,301 | 42,720 | 35,581 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Rental and other property revenues and property operating expense per GAAP Income Statement | 359,416 | 176,090 | 183,326 | 340,408 | 153,365 | 187,043 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (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) | Excluding the $1.2 million impact related to uninsured hurricane and storm damages, same store sales expenses would have increased 5.0% and NOI would have decreased 4.9%. |
Supplemental Schedule 6(b)
Same Store Sales
Third Quarter 2004 versus Second Quarter 2004
(unaudited) (in thousands, except site and unit data)
| Change Three Months Ended September 30, 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | From June 30, 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2004 | June 30, 2004 | Revenue | Expenses | NOI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sites | Units | Owner% | REV | EXP | NOI | REV | EXP | NOI | Amt | % | Amt | % | Amt | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Northeast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Baltimore | 11 | 2,711 | 87.75 | % | 6,588 | 2,239 | 4,349 | 6,415 | 2,396 | 4,019 | 173 | 2.7 | % | (157 | ) | -6.6 | % | 330 | 8.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| New England | 14 | 5,384 | 96.84 | % | 16,483 | 5,576 | 10,907 | 16,155 | 5,896 | 10,259 | 328 | 2.0 | % | (320 | ) | -5.4 | % | 648 | 6.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Philadelphia | 12 | 5,734 | 79.47 | % | 14,158 | 5,363 | 8,795 | 14,173 | 5,406 | 8,767 | (15 | ) | -0.1 | % | (43 | ) | -0.8 | % | 28 | 0.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Washington | 28 | 12,456 | �� | 83.57 | % | 30,831 | 11,211 | 19,620 | 29,999 | 10,679 | 19,320 | 832 | 2.8 | % | 532 | 5.0 | % | 300 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| 65 | 26,285 | 85.83 | % | 68,060 | 24,389 | 43,671 | 66,742 | 24,377 | 42,365 | 1,318 | 2.0 | % | 12 | 0.0 | % | 1,306 | 3.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Southeast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 20 | 5,712 | 84.63 | % | 8,499 | 4,539 | 3,960 | 8,108 | 4,330 | 3,778 | 391 | 4.8 | % | 209 | 4.8 | % | 182 | 4.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Augusta-Savannah | 5 | 1,004 | 87.19 | % | 1,612 | 691 | 921 | 1,556 | 620 | 936 | 56 | 3.6 | % | 71 | 11.5 | % | (15 | ) | -1.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Charlotte-Gastonia-Rock Hill | 6 | 1,398 | 89.50 | % | 1,920 | 670 | 1,250 | 1,913 | 1,009 | 904 | 7 | 0.4 | % | (339 | ) | -33.6 | % | 346 | 38.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Columbia-Charleston | 9 | 2,118 | 72.99 | % | 2,820 | 1,404 | 1,416 | 2,699 | 1,310 | 1,389 | 121 | 4.5 | % | 94 | 7.2 | % | 27 | 1.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Nashville | 8 | 2,492 | 72.10 | % | 3,684 | 1,491 | 2,193 | 3,491 | 1,366 | 2,125 | 193 | 5.5 | % | 125 | 9.2 | % | 68 | 3.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Norfolk | 12 | 3,565 | 69.62 | % | 6,163 | 2,015 | 4,148 | 5,970 | 2,020 | 3,950 | 193 | 3.2 | % | (5 | ) | -0.2 | % | 198 | 5.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Raleigh-Durham-Chapel Hill | 10 | 2,843 | 71.64 | % | 3,380 | 1,966 | 1,414 | 3,206 | 1,657 | 1,549 | 174 | 5.4 | % | 309 | 18.6 | % | (135 | ) | -8.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Richmond-Petersburg | 6 | 1,284 | 76.22 | % | 2,197 | 751 | 1,446 | 2,182 | 765 | 1,417 | 15 | 0.7 | % | (14 | ) | -1.8 | % | 29 | 2.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 22 | 4,766 | 80.17 | % | 6,034 | 3,629 | 2,405 | 5,768 | 3,105 | 2,663 | 266 | 4.6 | % | 524 | 16.9 | % | (258 | ) | -9.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| 98 | 25,182 | 77.92 | % | 36,309 | 17,156 | 19,153 | 34,893 | 16,182 | 18,711 | 1,416 | 4.1 | % | 974 | 6.0 | % | 442 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Florida | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 4 | 1,204 | 83.05 | % | 1,932 | 848 | 1,084 | 1,876 | 762 | 1,114 | 56 | 3.0 | % | 86 | 11.3 | % | (30 | ) | -2.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Miami-Fort Lauderdale | 8 | 2,397 | 76.95 | % | 4,817 | 2,046 | 2,771 | 4,575 | 2,093 | 2,482 | 242 | 5.3 | % | (47 | ) | -2.2 | % | 289 | 11.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Orlando-Daytona | 24 | 6,077 | 90.41 | % | 10,699 | 5,252 | 5,447 | 10,176 | 4,844 | 5,332 | 523 | 5.1 | % | 408 | 8.4 | % | 115 | 2.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Tampa-St. Petersburg | 21 | 5,637 | 70.84 | % | 7,798 | 3,788 | 4,010 | 7,411 | 3,360 | 4,051 | 387 | 5.2 | % | 428 | 12.7 | % | (41 | ) | -1.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| West Palm Beach-Boca Raton | 5 | 1,505 | 100.00 | % | 3,586 | 1,713 | 1,873 | 3,388 | 1,555 | 1,833 | 198 | 5.8 | % | 158 | 10.2 | % | 40 | 2.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 1 | 136 | 72.97 | % | 206 | 92 | 114 | 197 | 75 | 122 | 9 | 4.6 | % | 17 | 22.7 | % | (8 | ) | -6.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| 63 | 16,956 | 82.19 | % | 29,038 | 13,739 | 15,299 | 27,623 | 12,689 | 14,934 | 1,415 | 5.1 | % | 1,050 | 8.3 | % | 365 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Midwest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 22 | 6,319 | 82.02 | % | 14,008 | 6,601 | 7,407 | 13,755 | 6,147 | 7,608 | 253 | 1.8 | % | 454 | 7.4 | % | (201 | ) | -2.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Cincinnati-Dayton | 19 | 3,733 | 68.17 | % | 4,906 | 2,405 | 2,501 | 4,560 | 2,179 | 2,381 | 346 | 7.6 | % | 226 | 10.4 | % | 120 | 5.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Columbus | 9 | 2,012 | 67.70 | % | 2,244 | 1,109 | 1,135 | 2,269 | 989 | 1,280 | (25 | ) | -1.1 | % | 120 | 12.1 | % | (145 | ) | -11.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Detroit-Ann Arbor | 7 | 1,909 | 61.20 | % | 2,362 | 891 | 1,471 | 2,461 | 1,099 | 1,362 | (99 | ) | -4.0 | % | (208 | ) | -18.9 | % | 109 | 8.0 | % | |||||||||||||||||||||||||||||||||||||||||
| Grand Rapids-Lansing | 13 | 4,734 | 65.31 | % | 5,474 | 3,128 | 2,346 | 5,261 | 2,709 | 2,552 | 213 | 4.0 | % | 419 | 15.5 | % | (206 | ) | -8.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Indianapolis-Fort Wayne | 36 | 12,479 | 89.19 | % | 17,277 | 8,087 | 9,190 | 16,634 | 8,198 | 8,436 | 643 | 3.9 | % | (111 | ) | -1.4 | % | 754 | 8.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Kansas City | 4 | 953 | 69.31 | % | 1,250 | 531 | 719 | 1,179 | 517 | 662 | 71 | 6.0 | % | 14 | 2.7 | % | 57 | 8.6 | % | |||||||||||||||||||||||||||||||||||||||||||
| Minneapolis-St Paul | 5 | 1,430 | 77.98 | % | 3,174 | 1,650 | 1,524 | 3,139 | 1,552 | 1,587 | 35 | 1.1 | % | 98 | 6.3 | % | (63 | ) | -4.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 12 | 2,458 | 51.18 | % | 2,225 | 1,043 | 1,182 | 2,178 | 946 | 1,232 | 47 | 2.2 | % | 97 | 10.3 | % | (50 | ) | -4.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| 127 | 36,027 | 76.49 | % | 52,920 | 25,445 | 27,475 | 51,436 | 24,336 | 27,100 | 1,484 | 2.9 | % | 1,109 | 4.6 | % | 375 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Texas | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Austin-San Marcos | 10 | 2,217 | 92.59 | % | 3,403 | 1,902 | 1,501 | 3,276 | 1,782 | 1,494 | 127 | 3.9 | % | 120 | 6.7 | % | 7 | 0.5 | % | |||||||||||||||||||||||||||||||||||||||||||
| Dallas-Fort Worth | 24 | 6,235 | 72.44 | % | 7,104 | 4,644 | 2,460 | 6,735 | 4,090 | 2,645 | 369 | 5.5 | % | 554 | 13.5 | % | (185 | ) | -7.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Houston-Galveston | 36 | 9,570 | 66.97 | % | 10,540 | 6,699 | 3,841 | 9,792 | 5,502 | 4,290 | 748 | 7.6 | % | 1,197 | 21.8 | % | (449 | ) | -10.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| San Antonio | 11 | 2,647 | 93.65 | % | 3,991 | 2,254 | 1,737 | 3,741 | 1,897 | 1,844 | 250 | 6.7 | % | 357 | 18.8 | % | (107 | ) | -5.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 7 | 1,500 | 72.98 | % | 1,648 | 912 | 736 | 1,527 | 788 | 739 | 121 | 7.9 | % | 124 | 15.7 | % | (3 | ) | -0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| 88 | 22,169 | 74.66 | % | 26,686 | 16,411 | 10,275 | 25,071 | 14,059 | 11,012 | 1,615 | 6.4 | % | 2,352 | 16.7 | % | (737 | ) | -6.7 | % | |||||||||||||||||||||||||||||||||||||||||||
West | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver-Front Range | 23 | 5,075 | 81.86 | % | 8,532 | 4,177 | 4,355 | 8,091 | 3,706 | 4,385 | 441 | 5.5 | % | 471 | 12.7 | % | (30 | ) | -0.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 2 | 734 | 100.00 | % | 1,343 | 567 | 776 | 1,262 | 500 | 762 | 81 | 6.4 | % | 67 | 13.4 | % | 14 | 1.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Phoenix-Mesa | 27 | 7,361 | 92.12 | % | 10,948 | 6,230 | 4,718 | 9,971 | 5,175 | 4,796 | 977 | 9.8 | % | 1,055 | 20.4 | % | (78 | ) | -1.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Salt Lake City-Ogden | 4 | 1,511 | 83.37 | % | 2,124 | 900 | 1,224 | 1,967 | 834 | 1,133 | 157 | 8.0 | % | 66 | 7.9 | % | 91 | 8.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Seattle | 4 | 468 | 54.54 | % | 569 | 311 | 258 | 551 | 276 | 275 | 18 | 3.3 | % | 35 | 12.7 | % | (17 | ) | -6.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Tucson | 3 | 887 | 100.00 | % | 1,274 | 667 | 607 | 1,171 | 585 | 586 | 103 | 8.8 | % | 82 | 14.0 | % | 21 | 3.6 | % | |||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 4 | 760 | 50.97 | % | 677 | 341 | 336 | 633 | 319 | 314 | 44 | 7.0 | % | 22 | 6.9 | % | 22 | 7.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| 67 | 16,796 | 86.08 | % | 25,467 | 13,193 | 12,274 | 23,646 | 11,395 | 12,251 | 1,821 | 7.7 | % | 1,798 | 15.8 | % | 23 | 0.2 | % | ||||||||||||||||||||||||||||||||||||||||||||
California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bay Area | 6 | 1,661 | 57.99 | % | 2,891 | 1,230 | 1,661 | 2,909 | 1,098 | 1,811 | (18 | ) | -0.6 | % | 132 | 12.0 | % | (150 | ) | -8.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Los Angeles-Long Beach-Ventura | 11 | 2,179 | 85.49 | % | 7,984 | 2,377 | 5,607 | 7,566 | 2,121 | 5,445 | 418 | 5.5 | % | 256 | 12.1 | % | 162 | 3.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Orange County - Riverside | 7 | 1,611 | 81.95 | % | 4,775 | 1,549 | 3,226 | 4,596 | 1,528 | 3,068 | 179 | 3.9 | % | 21 | 1.4 | % | 158 | 5.1 | % | |||||||||||||||||||||||||||||||||||||||||||
| Sacramento | 1 | 180 | 22.05 | % | 99 | 54 | 45 | 96 | 43 | 53 | 3 | 3.1 | % | 11 | 25.6 | % | (8 | ) | -15.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| San Diego | 6 | 2,123 | 93.28 | % | 6,093 | 1,874 | 4,219 | 5,950 | 1,683 | 4,267 | 143 | 2.4 | % | 191 | 11.3 | % | (48 | ) | -1.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| 31 | 7,754 | 79.53 | % | 21,842 | 7,084 | 14,758 | 21,117 | 6,473 | 14,644 | 725 | 3.4 | % | 611 | 9.4 | % | 114 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| SAME STORE SALES TOTALS | 539 | 151,169 | 79.94 | % | 260,322 | 117,417 | 142,905 | 250,528 | 109,511 | 141,017 | 9,794 | 3.9 | % | 7,906 | 7.2 | %(2) | 1,888 | 1.3 | %(2) | |||||||||||||||||||||||||||||||||||||||||||
| Reconciliation to Total Rental and other property revenues and property operating expense per GAAP Income Statement (1) | 99,094 | 58,673 | 40,421 | 92,142 | 50,717 | 41,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Rental and other property revenues and property operating expense per GAAP Income Statement | 359,416 | 176,090 | 183,326 | 342,670 | 160,228 | 182,442 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (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; and (iii) elimination and other adjustments made in accordance with GAAP. |
| (2) | Excluding the $1.2 million impact related to uninsured hurricane and storm damages, same store sales expenses would have increased 6.1% and NOI would have increased 2.2%. |
Supplemental Schedule 6(c)
Same Store Sales
Nine Months Ended 2004 versus Nine Months Ended 2003
(unaudited) (in thousands, except site and unit data)
Nine Months Ended 2004 versus Nine Months Ended 2003
(unaudited) (in thousands, except site and unit data)
| Change Nine Months Ended September 30, 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended | Nine Months Ended | From September 30, 2003 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2004 | September 30, 2003 | Revenue | Expenses | NOI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sites | Units | Owner% | REV | EXP | NOI | REV | EXP | NOI | Amt | % | Amt | % | Amt | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Northeast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Baltimore | 11 | 2,711 | 87.75 | % | 19,431 | 7,380 | 12,051 | 19,215 | 7,750 | 11,465 | 216 | 1.1 | % | (370 | ) | -4.8 | % | 586 | 5.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| New England | 14 | 5,384 | 96.84 | % | 48,629 | 17,275 | 31,354 | 50,586 | 16,870 | 33,716 | (1,957 | ) | -3.9 | % | 405 | 2.4 | % | (2,362 | ) | -7.0 | % | |||||||||||||||||||||||||||||||||||||||||
| Philadelphia | 10 | 5,338 | 72.57 | % | 37,445 | 14,462 | 22,983 | 37,192 | 14,099 | 23,093 | 253 | 0.7 | % | 363 | 2.6 | % | (110 | ) | -0.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Washington | 28 | 12,456 | 83.57 | % | 90,038 | 32,826 | 57,212 | 89,931 | 30,412 | 59,519 | 107 | 0.1 | % | 2,414 | 7.9 | % | (2,307 | ) | -3.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| 63 | 25,889 | 85.48 | % | 195,543 | 71,943 | 123,600 | 196,924 | 69,131 | 127,793 | (1,381 | ) | -0.7 | % | 2,812 | 4.1 | % | (4,193 | ) | -3.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Southeast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 20 | 5,712 | 84.63 | % | 24,628 | 13,407 | 11,221 | 26,010 | 13,021 | 12,989 | (1,382 | ) | -5.3 | % | 386 | 3.0 | % | (1,768 | ) | -13.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Augusta-Savannah | 5 | 1,004 | 87.19 | % | 4,686 | 1,897 | 2,789 | 4,453 | 1,881 | 2,572 | 233 | 5.2 | % | 16 | 0.9 | % | 217 | 8.4 | % | |||||||||||||||||||||||||||||||||||||||||||
| Charlotte-Gastonia-Rock Hill | 6 | 1,398 | 89.50 | % | 5,741 | 2,750 | 2,991 | 5,698 | 2,615 | 3,083 | 43 | 0.8 | % | 135 | 5.2 | % | (92 | ) | -3.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Columbia-Charleston | 9 | 2,118 | 72.99 | % | 8,225 | 3,909 | 4,316 | 8,252 | 3,481 | 4,771 | (27 | ) | -0.3 | % | 428 | 12.3 | % | (455 | ) | -9.5 | % | |||||||||||||||||||||||||||||||||||||||||
| Nashville | 8 | 2,492 | 72.10 | % | 10,683 | 4,167 | 6,516 | 10,946 | 4,139 | 6,807 | (263 | ) | -2.4 | % | 28 | 0.7 | % | (291 | ) | -4.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Norfolk | 12 | 3,565 | 69.62 | % | 18,003 | 5,945 | 12,058 | 17,012 | 5,664 | 11,348 | 991 | 5.8 | % | 281 | 5.0 | % | 710 | 6.3 | % | |||||||||||||||||||||||||||||||||||||||||||
| Raleigh-Durham-Chapel Hill | 10 | 2,843 | 71.64 | % | 9,833 | 5,045 | 4,788 | 10,289 | 4,565 | 5,724 | (456 | ) | -4.4 | % | 480 | 10.5 | % | (936 | ) | -16.4 | % | |||||||||||||||||||||||||||||||||||||||||
| Richmond-Petersburg | 6 | 1,284 | 76.22 | % | 6,500 | 2,246 | 4,254 | 6,465 | 2,157 | 4,308 | 35 | 0.5 | % | 89 | 4.1 | % | (54 | ) | -1.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 22 | 4,766 | 80.17 | % | 17,675 | 9,567 | 8,108 | 18,418 | 8,979 | 9,439 | (743 | ) | -4.0 | % | 588 | 6.5 | % | (1,331 | ) | -14.1 | % | |||||||||||||||||||||||||||||||||||||||||
| 98 | 25,182 | 77.92 | % | 105,974 | 48,933 | 57,041 | 107,543 | 46,502 | 61,041 | (1,569 | ) | -1.5 | % | 2,431 | 5.2 | % | (4,000 | ) | -6.6 | % | ||||||||||||||||||||||||||||||||||||||||||
Florida | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 4 | 1,204 | 83.05 | % | 5,719 | 2,351 | 3,368 | 5,711 | 2,267 | 3,444 | 8 | 0.1 | % | 84 | 3.7 | % | (76 | ) | -2.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Miami-Fort Lauderdale | 8 | 2,397 | 76.95 | % | 13,907 | 5,967 | 7,940 | 13,724 | 5,522 | 8,202 | 183 | 1.3 | % | 445 | 8.1 | % | (262 | ) | -3.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Orlando-Daytona | 23 | 5,965 | 88.57 | % | 30,372 | 14,263 | 16,109 | 30,341 | 13,618 | 16,723 | 31 | 0.1 | % | 645 | 4.7 | % | (614 | ) | -3.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Tampa-St. Petersburg | 21 | 5,637 | 70.84 | % | 22,496 | 10,358 | 12,138 | 22,252 | 9,829 | 12,423 | 244 | 1.1 | % | 529 | 5.4 | % | (285 | ) | -2.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| West Palm Beach-Boca Raton | 5 | 1,505 | 100.00 | % | 10,475 | 4,591 | 5,884 | 10,593 | 4,077 | 6,516 | (118 | ) | -1.1 | % | 514 | 12.6 | % | (632 | ) | -9.7 | % | |||||||||||||||||||||||||||||||||||||||||
| Other Markets | 1 | 136 | 72.97 | % | 599 | 244 | 355 | 628 | 242 | 386 | (29 | ) | -4.6 | % | 2 | 0.8 | % | (31 | ) | -8.0 | % | |||||||||||||||||||||||||||||||||||||||||
| 62 | 16,844 | 82.07 | % | 83,568 | 37,774 | 45,794 | 83,249 | 35,555 | 47,694 | 319 | 0.4 | % | 2,219 | 6.2 | % | (1,900 | ) | -4.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Midwest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 22 | 6,319 | 82.02 | % | 41,731 | 18,946 | 22,785 | 44,075 | 19,288 | 24,787 | (2,344 | ) | -5.3 | % | (342 | ) | -1.8 | % | (2,002 | ) | -8.1 | % | ||||||||||||||||||||||||||||||||||||||||
| Cincinnati-Dayton | 18 | 3,709 | 67.84 | % | 14,025 | 6,605 | 7,420 | 14,462 | 6,348 | 8,114 | (437 | ) | -3.0 | % | 257 | 4.0 | % | (694 | ) | -8.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Columbus | 9 | 2,012 | 67.70 | % | 6,845 | 3,085 | 3,760 | 7,166 | 2,995 | 4,171 | (321 | ) | -4.5 | % | 90 | 3.0 | % | (411 | ) | -9.9 | % | |||||||||||||||||||||||||||||||||||||||||
| Detroit-Ann Arbor | 7 | 1,909 | 61.20 | % | 7,301 | 3,131 | 4,170 | 7,782 | 3,757 | 4,025 | (481 | ) | -6.2 | % | (626 | ) | -16.7 | % | 145 | 3.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Grand Rapids-Lansing | 13 | 4,734 | 65.31 | % | 15,955 | 8,555 | 7,400 | 17,474 | 8,020 | 9,454 | (1,519 | ) | -8.7 | % | 535 | 6.7 | % | (2,054 | ) | -21.7 | % | |||||||||||||||||||||||||||||||||||||||||
| Indianapolis-Fort Wayne | 36 | 12,479 | 89.19 | % | 51,034 | 24,117 | 26,917 | 52,801 | 25,678 | 27,123 | (1,767 | ) | -3.3 | % | (1,561 | ) | -6.1 | % | (206 | ) | -0.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Kansas City | 4 | 953 | 69.31 | % | 3,609 | 1,839 | 1,770 | 3,824 | 1,424 | 2,400 | (215 | ) | -5.6 | % | 415 | 29.1 | % | (630 | ) | -26.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Minneapolis-St Paul | 4 | 1,098 | 55.65 | % | 4,971 | 2,367 | 2,604 | 5,296 | 2,533 | 2,763 | (325 | ) | -6.1 | % | (166 | ) | -6.6 | % | (159 | ) | -5.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Other Markets | 12 | 2,458 | 51.18 | % | 6,543 | 3,036 | 3,507 | 6,601 | 2,936 | 3,665 | (58 | ) | -0.9 | % | 100 | 3.4 | % | (158 | ) | -4.3 | % | |||||||||||||||||||||||||||||||||||||||||
| 125 | 35,671 | 76.29 | % | 152,014 | 71,681 | 80,333 | 159,481 | 72,979 | 86,502 | (7,467 | ) | -4.7 | % | (1,298 | ) | -1.8 | % | (6,169 | ) | -7.1 | % | |||||||||||||||||||||||||||||||||||||||||
Texas | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Austin-San Marcos | 9 | 1,873 | 77.08 | % | 8,374 | 4,491 | 3,883 | 8,978 | 4,489 | 4,489 | (604 | ) | -6.7 | % | 2 | 0.0 | % | (606 | ) | -13.5 | % | |||||||||||||||||||||||||||||||||||||||||
| Dallas-Fort Worth | 24 | 6,235 | 72.44 | % | 20,759 | 12,448 | 8,311 | 22,385 | 11,327 | 11,058 | (1,626 | ) | -7.3 | % | 1,121 | 9.9 | % | (2,747 | ) | -24.8 | % | |||||||||||||||||||||||||||||||||||||||||
| Houston-Galveston | 35 | 9,261 | 64.57 | % | 29,041 | 16,697 | 12,344 | 31,015 | 15,017 | 15,998 | (1,974 | ) | -6.4 | % | 1,680 | 11.2 | % | (3,654 | ) | -22.8 | % | |||||||||||||||||||||||||||||||||||||||||
| San Antonio | 11 | 2,647 | 93.65 | % | 11,545 | 5,921 | 5,624 | 11,251 | 5,522 | 5,729 | 294 | 2.6 | % | 399 | 7.2 | % | (105 | ) | -1.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Markets | 7 | 1,500 | 72.98 | % | 4,767 | 2,419 | 2,348 | 4,951 | 2,175 | 2,776 | (184 | ) | -3.7 | % | 244 | 11.2 | % | (428 | ) | -15.4 | % | |||||||||||||||||||||||||||||||||||||||||
| 86 | 21,516 | 74.26 | % | 74,486 | 41,976 | 32,510 | 78,580 | 38,530 | 40,050 | (4,094 | ) | -5.2 | % | 3,446 | 8.9 | % | (7,540 | ) | -18.8 | % | ||||||||||||||||||||||||||||||||||||||||||
West | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver - Front Range | 22 | 4,743 | 75.32 | % | 22,305 | 10,437 | 11,868 | 22,817 | 8,277 | 14,540 | (512 | ) | -2.2 | % | 2,160 | 26.1 | % | (2,672 | ) | -18.4 | % | |||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 2 | 734 | 100.00 | % | 3,800 | 1,558 | 2,242 | 3,610 | 1,518 | 2,092 | 190 | 5.3 | % | 40 | 2.6 | % | 150 | 7.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Phoenix-Mesa | 27 | 7,361 | 92.12 | % | 31,128 | 16,533 | 14,595 | 31,347 | 16,519 | 14,828 | (219 | ) | -0.7 | % | 14 | 0.1 | % | (233 | ) | -1.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Salt Lake City-Ogden | 4 | 1,511 | 83.37 | % | 6,075 | 2,498 | 3,577 | 6,272 | 2,316 | 3,956 | (197 | ) | -3.1 | % | 182 | 7.9 | % | (379 | ) | -9.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Seattle | 4 | 468 | 54.54 | % | 1,652 | 848 | 804 | 1,624 | 789 | 835 | 28 | 1.7 | % | 59 | 7.5 | % | (31 | ) | -3.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Tucson | 3 | 887 | 100.00 | % | 3,638 | 1,815 | 1,823 | 3,649 | 1,699 | 1,950 | (11 | ) | -0.3 | % | 116 | 6.8 | % | (127 | ) | -6.5 | % | |||||||||||||||||||||||||||||||||||||||||
| Other Markets | 4 | 760 | 50.97 | % | 1,939 | 964 | 975 | 2,021 | 939 | 1,082 | (82 | ) | -4.1 | % | 25 | 2.7 | % | (107 | ) | -9.9 | % | |||||||||||||||||||||||||||||||||||||||||
| 66 | 16,464 | 85.80 | % | 70,537 | 34,653 | 35,884 | 71,340 | 32,057 | 39,283 | (803 | ) | -1.1 | % | 2,596 | 8.1 | % | (3,399 | ) | -8.7 | % | ||||||||||||||||||||||||||||||||||||||||||
California | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bay Area | 6 | 1,661 | 57.99 | % | 8,761 | 3,449 | 5,312 | 9,368 | 3,101 | 6,267 | (607 | ) | -6.5 | % | 348 | 11.2 | % | (955 | ) | -15.2 | % | |||||||||||||||||||||||||||||||||||||||||
| Los Angeles-Long Beach-Ventura | 11 | 2,179 | 85.49 | % | 23,098 | 6,861 | 16,237 | 22,560 | 6,096 | 16,464 | 538 | 2.4 | % | 765 | 12.5 | % | (227 | ) | -1.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Orange County - Riverside | 7 | 1,611 | 81.95 | % | 13,855 | 4,684 | 9,171 | 13,673 | 4,005 | 9,668 | 182 | 1.3 | % | 679 | 17.0 | % | (497 | ) | -5.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Sacramento | 1 | 180 | 22.05 | % | 298 | 133 | 165 | 312 | 129 | 183 | (14 | ) | -4.5 | % | 4 | 3.1 | % | (18 | ) | -9.8 | % | |||||||||||||||||||||||||||||||||||||||||
| San Diego | 6 | 2,123 | 93.28 | % | 17,716 | 5,250 | 12,466 | 17,497 | 4,851 | 12,646 | 219 | 1.3 | % | 399 | 8.2 | % | (180 | ) | -1.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| 31 | 7,754 | 79.53 | % | 63,728 | 20,377 | 43,351 | 63,410 | 18,182 | 45,228 | 318 | 0.5 | % | 2,195 | 12.1 | % | (1,877 | ) | -4.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| SAME STORE SALES TOTALS | 531 | 149,320 | 79.76 | % | 745,850 | 327,337 | 418,513 | 760,527 | 312,936 | 447,591 | (14,677 | ) | -1.9 | % | 14,401 | 4.6 | %(2) | (29,078 | ) | -6.5 | %(2) | |||||||||||||||||||||||||||||||||||||||||
| Reconciliation to Total Rental and other property revenues and property operating expense per GAAP Income Statement (1) | 291,531 | 164,743 | 126,788 | 242,982 | 127,094 | 115,888 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Rental and other property revenues and property operating expense per GAAP Income Statement | 1,037,381 | 492,080 | 545,301 | 1,003,509 | 440,030 | 563,479 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (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; and (iii) elimination and other adjustments made in accordance with GAAP. | |||
| (2) | Excluding the $1.2 million impact related to uninsured hurricane and storm damages, same store sales expenses would have increased 4.2% and NOI would have decreased 6.2%. | |||
Supplemental Schedule 7
Selected Portfolio Performance Data
(unaudited)
PORTFOLIO SUMMARY
SAME STORE PERFORMANCE
| SAME STORE PORTFOLIO | ||||||||||||
| CORE | NON-CORE | TOTAL | ||||||||||
| Rent, average third quarter 2004 | $ | 777 | $ | 566 | $ | 714 | ||||||
| Occupancy, average third quarter 2004 | 93.8 | % | 90.6 | % | 92.9 | % | ||||||
| Total # of Properties | 342 | 197 | 539 | |||||||||
| Total # of Units | 104,922 | 46,247 | 151,169 | |||||||||
| Proportionate Owned Units | 83,119 | 37,733 | 120,852 | |||||||||
| 3rd Quarter 2004 vs. 3rd Quarter 2003 (1) | ||||||||||||
| Revenue | -0.7 | % | -0.7 | % | -0.7 | % | ||||||
| Expenses | 5.3 | % | 8.3 | % | 6.1 | % | ||||||
| NOI | -4.6 | % | -9.7 | % | -5.6 | % | ||||||
| Sequential, 3rd Quarter 2004 vs 2nd Quarter 2004 (1) | ||||||||||||
| Revenue | 3.3 | % | 5.8 | % | 3.9 | % | ||||||
| Expenses | 5.7 | % | 11.1 | % | 7.2 | % | ||||||
| NOI | 1.7 | % | 0.0 | % | 1.3 | % | ||||||
| YTD September 2004 vs. YTD September 2003 (1) | ||||||||||||
| Revenue | -1.7 | % | -2.6 | % | -1.9 | % | ||||||
| Expenses | 4.5 | % | 4.9 | % | 4.6 | % | ||||||
| NOI | -5.6 | % | -9.8 | % | -6.5 | % | ||||||
| (1) | Expenses and NOI in all comparisons include a $1.2 million impact related to uninsured hurricane and storm damages. |
CONVENTIONAL PORTFOLIO: SUMMARY BY MARKET
SELECTED MARKETS
| Quarter ended September 30, 2004 | Quarter ended September 30, 2003 | |||||||||||||||||||||||
| TOTAL CONVENTIONAL PORTFOLIO | TOTAL CONVENTIONAL PORTFOLIO | |||||||||||||||||||||||
| % of Conventional NOI | CORE | NON-CORE | TOTAL | CORE | NON-CORE | TOTAL | ||||||||||||||||||
Top 10 Markets | ||||||||||||||||||||||||
| 1 Washington, D.C. | 11.0 | % | 1.2 | % | 12.2 | % | 10.4 | % | 0.9 | % | 11.3 | % | ||||||||||||
| 2 Los Angeles-Long Beach-Ventura | 7.4 | % | 0.0 | % | 7.4 | % | 7.4 | % | 0.0 | % | 7.4 | % | ||||||||||||
| 3 New England | 7.0 | % | 0.0 | % | 7.0 | % | 6.5 | % | 0.0 | % | 6.5 | % | ||||||||||||
| 4 Indianapolis | 4.0 | % | 1.9 | % | 5.9 | % | 3.2 | % | 1.1 | % | 4.3 | % | ||||||||||||
| 5 Philadelphia | 5.8 | % | 0.0 | % | 5.8 | % | 6.3 | % | 0.0 | % | 6.3 | % | ||||||||||||
| 6 Chicago | 4.4 | % | 0.2 | % | 4.6 | % | 4.5 | % | 0.4 | % | 4.9 | % | ||||||||||||
| 7 Miami-Fort Lauderdale | 3.7 | % | 0.0 | % | 3.7 | % | 2.9 | % | 0.2 | % | 3.1 | % | ||||||||||||
| 8 Orlando-Daytona | 2.8 | % | 0.6 | % | 3.4 | % | 2.4 | % | 0.9 | % | 3.3 | % | ||||||||||||
| 9 Phoenix-Mesa | 1.7 | % | 1.3 | % | 3.0 | % | 1.6 | % | 1.1 | % | 2.7 | % | ||||||||||||
| 10 Atlanta | 2.0 | % | 0.8 | % | 2.8 | % | 1.6 | % | 1.0 | % | 2.6 | % | ||||||||||||
| All Other Markets | 30.1 | % | 14.1 | % | 44.2 | % | 32.1 | % | 15.5 | % | 47.6 | % | ||||||||||||
Total Conventional NOI | 79.9 | % | 20.1 | % | 100.0 | % | 78.9 | % | 21.1 | % | 100.0 | % | ||||||||||||
| Rent, average third quarter | $ | 804 | $ | 560 | $ | 728 | $ | 808 | $ | 569 | $ | 733 | ||||||||||||
| Occupancy, average third quarter | 92.5 | % | 90.8 | % | 92.0 | % | 92.2 | % | 90.5 | % | 91.6 | % | ||||||||||||
| Total # of Properties | 379 | 232 | 611 | 368 | 301 | 669 | ||||||||||||||||||
| Total # of Units | 114,573 | 54,589 | 169,162 | 114,891 | 72,115 | 187,006 | ||||||||||||||||||
| Proportionate Owned Units | 91,376 | 43,467 | 134,843 | 96,950 | 52,500 | 149,450 | ||||||||||||||||||
Supplemental Schedule 8
Property Sales Activity
(unaudited)
THIRD QUARTER 2004 PROPERTY SALES ACTIVITY
| Number | Gross | Property | Net Sales | Aimco Net | Average | |||||||||||||||||||||||||||
| of | Proceeds | FCF (1) | Debt | Proceeds (2) | Proceeds | Rent | ||||||||||||||||||||||||||
| Units | ($mm) | Yield | ($mm) | ($mm) | ($mm) | ($/unit) | ||||||||||||||||||||||||||
| Conventional Core | (3 | ) | 2,279 | $ | 473 | 4.1 | % | $ | 189 | $ | 268 | $ | 239 | $ | 1,228 | |||||||||||||||||
| Conventional Non-Core | (4 | ) | 1,023 | 43 | 7.1 | % | 19 | 23 | 23 | 564 | ||||||||||||||||||||||
| Affordable | (5 | ) | 1,847 | 66 | 5.8 | % | 33 | 29 | 14 | 559 | ||||||||||||||||||||||
| Total Dispositions | 5,149 | $ | 582 | 4.5 | % | $ | 241 | $ | 320 | $ | 276 | $ | 856 | |||||||||||||||||||
YEAR TO DATE 2004 PROPERTY SALES ACTIVITY
| Number | Gross | Property | Net Sales | Aimco Net | Average | |||||||||||||||||||||||||||
| of | Proceeds | FCF(1) | Debt | Proceeds (2) | Proceeds | Rent | ||||||||||||||||||||||||||
| Units | ($mm) | Yield | ($mm) | ($mm) | ($mm) | ($/unit) | ||||||||||||||||||||||||||
| Conventional Core | (3 | ) | 2,279 | $ | 473 | 4.1 | % | $ | 189 | $ | 268 | $ | 239 | $ | 1,228 | |||||||||||||||||
| Conventional Non-Core | (4 | ) | 6,590 | 226 | 6.3 | % | 98 | 116 | 103 | 523 | ||||||||||||||||||||||
| Affordable | (5 | ) | 4,863 | 158 | 6.5 | % | 90 | 57 | 27 | 586 | ||||||||||||||||||||||
| Total Dispositions | 13,732 | $ | 857 | 5.1 | % | $ | 377 | $ | 441 | $ | 369 | $ | 662 | |||||||||||||||||||
| (1) | FCF Yield is calculated as the Free Cash Flow 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 and payment of transaction costs | |||
| (3) | Includes sale of land parcel suitable for development associated with the Bay Club property in Aventura, Florida. | |||
| (4) | Sales activity provided in the table above does not include sales of certain general partner interests that generated net proceeds to Aimco of $2.0 million to date in 2004 | |||
| (5) | Sales activity provided in the table above does not include sales of certain NAPICO properties that generated net proceeds to Aimco of $5.1 million to date in 2004 | |||
Supplemental Schedule 9
Capital Expenditures
For the Nine Months Ended September 30, 2004
(in thousands, except per unit)
(unaudited)
Effective January 1, 2004, all capital spending is classified as either Capital Replacements (“CR”), Capital Improvements (“CI”) or Redevelopment. These categories replace Aimco’s prior capital spending categories — capital replacements, capital enhancements, redevelopment, initial capital expenditures, and disposition capital expenditures. Aimco believes CR, CI and Redevelopment will be simpler to apply, allow more discrete differentiation between categories, facilitate sound economic decisions, and assist investors and analysts in better understanding its capital spending.
Non-redevelopment 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 and Redevelopment for the nine months ended September 30, 2004 (per unit is based on approximately 158,000 units):
| Capital Replacements Detail: | Actual Amount | Per Unit | ||||||
| Building Interiors | $ | 11,664 | $ | 74 | ||||
| Includes: Hot water heaters, kitchen/bath | ||||||||
| Building Exteriors | 8,911 | 56 | ||||||
| Includes: Roofs, exterior painting, electrical, plumbing | ||||||||
| Landscaping and Grounds | 5,765 | 36 | ||||||
| Includes: Parking lot improvements, pool improvements | ||||||||
| Turnover Related | 20,192 | 128 | ||||||
| Includes: Carpet, vinyl, tile, appliance and fixture replacements | ||||||||
| Capitalized payroll and other indirect costs | 7,885 | 50 | ||||||
Total Aimco’s share of Capital Replacements | $ | 54,417 | $ | 344 | ||||
Capital Replacements: | ||||||||
| Conventional | 47,635 | |||||||
| Affordable | 6,782 | |||||||
Total Aimco’s share of Capital Replacements | $ | 54,417 | ||||||
Capital Improvements: | ||||||||
| Conventional | 39,224 | |||||||
| Affordable | 11,863 | |||||||
Total Aimco’s share of Capital Improvements | $ | 51,087 | ||||||
Redevelopment (see Schedule 10 for further project details): | ||||||||
| Conventional | 42,197 | |||||||
| Affordable | 8,365 | |||||||
Total Aimco’s share of Redevelopment | $ | 50,562 | ||||||
Total Aimco’s share of Capital Expenditures | $ | 156,066 | ||||||
| Plus minority partners’ share of consolidated spending | 43,846 | |||||||
| Less Aimco’s share of unconsolidated spending | (8,533 | ) | ||||||
Total Spending per Consolidated Statement of Cash Flows | $ | 191,379 | ||||||
Supplemental Schedule 10
Summary of 2004 Redevelopment Activity
As of September 30, 2004
(in millions, except unit data)
(values are not adjusted for Aimco’s ownership unless indicated)
(unaudited)
| Cost in Millions | Redevelopment Timeline | Number of Units | ||||||||||||||||||||||||||||||||||||||||||||
| Total | Inception | Year to | Year to | |||||||||||||||||||||||||||||||||||||||||||
| Expected | to Date | Date | Date | |||||||||||||||||||||||||||||||||||||||||||
| Ownership | Number of | Spend at | Spend at | Spend at | Spend at | Expected | Construction | Construction | Out of | |||||||||||||||||||||||||||||||||||||
| Property | City, State | % | Units | 100% | 100% | 100% | AIV% | FCF Yield | Acquisition | Start | Complete | Stabilization | Completed | Leased (1) | Service (2) | |||||||||||||||||||||||||||||||
| Redevelopment - Major Project Detail | ||||||||||||||||||||||||||||||||||||||||||||||
| Flamingo South Beach Belmont Place | Miami Beach, FL Marietta, GA | 77.0% 57.2% | 1,688 326 | $ | 283.4 32.2 | $ | 278.1 13.0 | $ | 8.4 10.8 | $ | 6.5 6.2 | 6% 9% | Q3 1997 Q2 1998 | Q3 1997 Q4 2003 | Q1 2004 Q2 2005 | Q2 2005 Q2 2006 | 1,682 - - | 1,220 31 | 6 326 | |||||||||||||||||||||||||||
| Subtotal | 2,014 | $ | 315.6 | $ | 291.1 | $ | 19.2 | $ | 12.7 | 1,682 | 1,251 | 332 | ||||||||||||||||||||||||||||||||||
| Redevelopment - Other Projects | ||||||||||||||||||||||||||||||||||||||||||||||
| Conventional | 20 properties | 9,988 | $ | 186.5 | $ | 92.3 | $ | 17.2 | $ | 15.7 | ||||||||||||||||||||||||||||||||||||
| Affordable | 11 properties | 2,416 | 91.9 | 45.2 | 26.6 | 7.3 | ||||||||||||||||||||||||||||||||||||||||
| Other Redevelopment | 17.3 | 14.9 | ||||||||||||||||||||||||||||||||||||||||||||
| �� | ||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 12,404 | $ | 278.4 | $ | 137.5 | $ | 61.1 | $ | 37.9 | |||||||||||||||||||||||||||||||||||||
| Total | 14,418 | $ | 594.0 | $ | 428.6 | $ | 80.3 | $ | 50.6 | |||||||||||||||||||||||||||||||||||||
| (1) | Leased units include pre-leased (31 units at Belmont Place are pre-leased and not occupied). |
| (2) | Out of service units include those units that have not been turned over to property operations by the redevelopment group. |
Supplemental Schedule 11
Apartment Unit Summary
As of September 30, 2004
(unaudited)
| Aimco's | Aimco's | |||||||||||||||
| Total | Total | Effective | Average | |||||||||||||
| # Properties | # Units | # Units | Ownership % | |||||||||||||
Conventional Real Estate Portfolio: | ||||||||||||||||
| Wholly-owned Consolidated Core Properties | 204 | 60,826 | 60,826 | 100 | % | |||||||||||
| Partially-owned Consolidated Core Properties | 144 | 46,301 | 27,690 | 60 | % | |||||||||||
| Partially-owned Unconsolidated Core Properties | 31 | 7,446 | 2,860 | 38 | % | |||||||||||
| Sub-total Core Properties | 379 | 114,573 | 91,376 | 79 | % | |||||||||||
| Wholly-owned Consolidated Non-Core Properties | 126 | 29,034 | 29,034 | 100 | % | |||||||||||
| Partially-owned Consolidated Non-Core Properties | 71 | 18,410 | 12,147 | 66 | % | |||||||||||
| Partially-owned Unconsolidated Non-Core Properties | 35 | 7,145 | 2,286 | 32 | % | |||||||||||
| Sub-total Non-Core Properties | 232 | 54,589 | 43,467 | 80 | % | |||||||||||
| Total | 611 | 169,162 | 134,843 | 80 | % | |||||||||||
Aimco Capital Real Estate Portfolio: | ||||||||||||||||
| Wholly-owned Consolidated Properties | 82 | 11,127 | 11,127 | 100 | % | |||||||||||
| Partially-owned Consolidated Properties | 66 | 7,202 | 3,891 | 54 | % | |||||||||||
| Partially-owned Unconsolidated Properties | 305 | 36,883 | 6,284 | 17 | % | |||||||||||
| Total | 453 | 55,212 | 21,302 | 39 | % | |||||||||||
Total Owned Real Estate Portfolio: | ||||||||||||||||
| Wholly-owned Consolidated Properties | 412 | 100,987 | 100,987 | 100 | % | |||||||||||
| Partially-owned Consolidated Properties | 281 | 71,913 | 43,728 | 61 | % | |||||||||||
| Partially-owned Unconsolidated Properties | 371 | 51,474 | 11,430 | 22 | % | |||||||||||
| Total | 1,064 | 224,374 | 156,145 | 70 | % | |||||||||||
Management Contracts: | ||||||||||||||||
| Property Managed for Third Parties | 73 | 8,191 | ||||||||||||||
| Asset-Managed for Third Parties | 34 | 5,228 | ||||||||||||||
| Asset-Managed (indirect ownership) | 375 | 34,066 | ||||||||||||||
| Total | 482 | 47,485 | ||||||||||||||
Total Portfolio | 1,546 | 271,859 | ||||||||||||||