Denver, Colorado- February 8, 2008
Apartment Investment and Management Company
Announces Fourth Quarter 2007 Results
SUMMARY FINANCIAL RESULTS: Apartment Investment and Management Company (Aimco) (NYSE:AIV) today announced results for the fourth quarter 2007. In accordance with Generally Accepted Accounting Principles (GAAP), all reported per share data has been adjusted to take into account the special dividend declared on December 21, 2007, and paid on January 30, 2008, which resulted in the issuance of approximately 4.6 million additional shares of Aimco’s Class A Common Stock.
| • | | Net loss for the quarter was $26.6 million, compared with net income of $66.1 million in the fourth quarter 2006. Lower results in the fourth quarter 2007 were due to various items including: lower gains on dispositions of real estate and other of $101.0 million, higher interest expense of $9.0 million and real estate impairment charges of $6.6 million, which were partially offset by higher property net operating income of $15.1 million and higher activity and asset management revenues of $17.6 million. Earnings per share (EPS) was a loss of $0.27 on a diluted basis, compared with income of $0.66 per share in the fourth quarter 2006. |
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| • | | Funds from operations (diluted) (FFO) is a non-GAAP financial measure defined in the glossary in the Supplemental Information (the Glossary). FFO calculated in accordance with the definition prescribed by the National Association of Real Estate Investment Trusts (NAREIT) was $83.8 million, or $0.83 per share, compared with $88.0 million, or $0.84 per share, in the fourth quarter 2006. FFO before impairment and preferred redemption charges was $0.88 per share, which was at the mid-point of guidance as restated for the special dividend. |
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| • | | Adjusted funds from operations (diluted) (AFFO; a non-GAAP financial measure defined in the Glossary) was $61.3 million, or $0.62 per share, compared with $72.8 million, or $0.70 per share, in the fourth quarter 2006. AFFO includes deductions of $0.26 and $0.14 per share for capital replacement expenditures in the fourth quarter 2007 and the fourth quarter 2006, respectively. |
Diluted Per Share Results*
| | | | | | | | | | | | | | | | | |
| | | FOURTH QUARTER | | | FULL YEAR | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| Earnings (loss) — EPS | | ($ | 0.27 | ) | | $ | 0.66 | | | ($ | 0.36 | ) | | $ | 0.95 | |
| Funds from operations — FFO | | $ | 0.83 | | | $ | 0.84 | | | $ | 3.17 | | | $ | 2.90 | |
| FFO before impairment and preferred redemption charges | | $ | 0.88 | | | $ | 0.84 | | | $ | 3.25 | | | $ | 2.95 | |
| Adjusted funds from operations — AFFO | | $ | 0.62 | | | $ | 0.70 | | | $ | 2.34 | | | $ | 2.28 | |
*Adjusted to reflect January 30, 2008, special dividend (see Special Supplement)
Contact
Investor Relations 303.691.4350, Investor@Aimco.com
Elizabeth Coalson, Vice President Investor Relations 303.691.4327
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| AIMCO 4th Quarter 2007 | | | | Page 1 |
Management Comments
Chairman and Chief Executive Officer Terry Considine comments: “Aimco had a solid 2007. Property operating results improved on a Same Store basis by 4.5%. We invested more than $300 million in value-adding redevelopments. A highlight of the quarter for our asset management and transactions team was the formation of a joint venture with a fund managed by J.P. Morgan Asset Management to invest in certain Los Angeles properties. Given the current choppiness of the economy, we expect more moderate growth in 2008.”
Chief Financial Officer Tom Herzog adds: “Fourth quarter FFO of $0.88 per share was in-line with guidance, as restated for the special dividend, and full year 2007 FFO of $3.25 per share was 10% higher than in 2006. During the fourth quarter 2007 and January 2008, Aimco repurchased, on an accretive basis, approximately 8.5 million shares of its Common Stock for approximately $302 million, or an average price of $35.19 per share. Looking ahead to 2008, we expect FFO of $0.68 to $0.72 per share in the first quarter and $3.22 to $3.38 per share for the year.”
Property Operations
Conventional Real Estate Operations
Aimco is among the nation’s largest owners and operators of market rate apartment communities. Conventional real estate operations consist of Aimco’s diversified portfolio of market rate apartment communities. At the end of the fourth quarter 2007, this portfolio included 439 properties with 127,532 units in which Aimco had a weighted average ownership of 88%. During the fourth quarter 2007, conventional real estate operations generated net operating income of $179.9 million.
“Same Store” Results
In the fourth quarter 2007, the Same Store portfolio included 357 communities with 94,047 Effective Units (see the Glossary) based on Aimco’s weighted average ownership of 88% (See Supplemental Schedules 6a through 7).
Comparing Same Store results in the fourth quarter 2007 with the fourth quarter 2006, total revenue increased $9.9 million, or 4.0%. The increase in revenue was primarily generated by higher average rent, up $24 per unit, or 2.8%, from $862 per unit to $886 per unit, higher occupancy, which was up 0.3% from 94.4% to 94.7%, and increased utility reimbursements, up $2.2 million. Same Store expenses of $105.5 million increased $5.6 million, or 5.7%, compared with the prior year period as a result of higher payroll, marketing, insurance, contract services and utilities. Same Store portfolio net operating income was $152.6 million for the fourth quarter 2007, up 2.9% from the fourth quarter 2006.
Same Store Operating Results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | FOURTH QUARTER | | | FULL YEAR | |
| | | Year-over-year | | | Sequential | | | | | | | | | | | | |
| | | 2007 | | | 2006 | | | Variance | | | 3rd Qtr | | | Variance | | | 2007 | | | 2006 | | | Variance | |
| Same Store Operating Measures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average Physical Occupancy | | | 94.7 | % | | | 94.4 | % | | | 0.3 | % | | | 94.8 | % | | | -0.1 | % | | | 94.7 | % | | | 94.5 | % | | | 0.2 | % |
| Average Rent Per Unit | | $ | 886 | | | $ | 862 | | | | 2.8 | % | | $ | 881 | | | | 0.6 | % | | $ | 862 | | | $ | 831 | | | | 3.7 | % |
| Total Same Store ($mm) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | $ | 258.1 | | | $ | 248.2 | | | | 4.0 | % | | $ | 255.2 | | | | 1.1 | % | | $ | 988.1 | | | $ | 946.7 | | | | 4.4 | % |
| Expenses | | | (105.5 | ) | | | (99.9 | ) | | | 5.7 | % | | | (107.1 | ) | | | -1.5 | % | | | (409.2 | ) | | | (392.7 | ) | | | 4.2 | % |
| NOI ($mm) | | $ | 152.6 | | | $ | 148.3 | | | | 2.9 | % | | $ | 148.1 | | | | 3.0 | % | | $ | 578.9 | | | $ | 554.0 | | | | 4.5 | % |
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| AIMCO 4th Quarter 2007 | | | | Page 2 |
Comparing Same Store results on a sequential basis, total revenue increased $2.9 million in the fourth quarter 2007 compared with the third quarter of 2007, driven by a $5 per unit increase in average rental rates, partially offset by a decrease in occupancy of 10 basis points. Expenses decreased $1.6 million, or 1.5%, primarily due to lower turnover, contract services, repairs and maintenance costs and taxes. Net operating income increased $4.5 million, or 3.0%, on a sequential basis.
Comparing Same Store results on a full year basis, total revenue increased $41.4 million in 2007 compared with 2006, driven by a 3.7% increase in average rental rates per unit, a 20 basis point increase in occupancy and a 20.6% increase in utility reimbursements. Expenses increased $16.5 million, or 4.2%, primarily due to higher payroll, utilities, contract services, marketing, administrative expenses, taxes and insurance, partially offset by lower turnover and repairs and maintenance. Net operating income increased $24.9 million, or 4.5%, on a year-over-year basis.
Affordable Real Estate Operations
Aimco is among the nation’s largest owners and operators of affordable apartment communities. At the end of the fourth quarter 2007, Aimco’s owned affordable portfolio included 312 properties with 37,104 units in which Aimco had an average ownership of 51%. During the fourth quarter 2007, affordable property operations generated net operating income of $19.2 million. Average month-end occupancy for the affordable portfolio decreased 60 basis points from 96.9% for the fourth quarter 2006 to 96.3% for the fourth quarter 2007, while average rent per unit increased 5.1% from $719 to $756 per unit. Average month-end occupancy also decreased 60 basis points from 97.2% in 2006 to 96.6% for the full year 2007, while rents increased $28 per unit, or 3.9%, from $711 to $739 per unit.
Aimco Capital
Aimco Capital, a division led by a dedicated management team, oversees Aimco’s portfolio management activities including acquisitions, dispositions and joint venture efforts, as well as asset management and partnership transactions.
Asset Management and Transactions
Asset management income is earned from the financial management of partnerships. Transaction income is earned from activities such as tax credit syndications, dispositions, refinancings and land sales. Proceeds received in exchange for the transfer of tax credits are recognized ratably as the tax benefits are delivered, and syndication fees are recognized upon completion of tax credit syndications. Consolidated asset management and transaction net operating income, net of tax, was $28.7 million in the fourth quarter 2007 compared to $13.3 million in the fourth quarter 2006. Consolidated asset management and transaction net operating income, net of tax, for the full year 2007 was $58.8 million, an increase of $18.1 million, or 44.3%, when compared to 2006. See Supplemental Schedule 11 for additional information on asset management and transaction income.
During the fourth quarter 2007, Aimco formed a joint venture with a fund managed by J.P. Morgan Asset Management. Aimco contributed to the venture The Palazzo at Park La Brea, The Palazzo East at Park La Brea and The Villas at Park La Brea at a value of $725.7 million, or approximately $525,000 per unit. Aimco received $202.2 million in cash from J.P. Morgan in exchange for an approximate 47% interest in the joint venture. Aimco receives property management and other fees for its continued operation of the properties.
Portfolio Management
ACQUISITIONS — During the fourth quarter 2007, Aimco had no significant acquisition activity.
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| AIMCO 4th Quarter 2007 | | | | Page 3 |
DISPOSITIONS — Aimco regularly reviews its portfolio to identify properties that do not meet its long-term investment criteria. In the fourth quarter 2007, Aimco sold eight non-core conventional properties and ten affordable properties with 1,675 and 689 units, respectively, for $101.5 million in gross proceeds (Aimco share $66.8 million). Aimco’s share of net proceeds after repayment of existing property debt and transaction costs was $27.7 million.
Aimco’s property dispositions resulted in gains on dispositions of real estate (including gains on dispositions of unconsolidated real estate and other and gains within discontinued operations) of $12.9 million for the fourth quarter 2007, compared with gains of $113.9 million for the fourth quarter 2006.
See Supplemental Schedule 8 for additional information on acquisition and disposition activity.
Redevelopment
Aimco actively reinvests in and upgrades its portfolio through property redevelopments. At the end of the fourth quarter 2007, Aimco had 48 active conventional redevelopment projects and 11 active tax credit redevelopment projects in process. Aimco’s share of total redevelopment expenditures was $121.5 million during the fourth quarter 2007. Conventional redevelopment project expenditures totaled $99.8 million and tax credit redevelopment project expenditures totaled $21.7 million for the quarter. Further information on redevelopment projects is provided in Supplemental Schedule 10.
Additional Financial Information
PROPERTY MANAGEMENT INCOME — Income from property management is generated when Aimco provides property management services to properties with unaffiliated partners. Income from consolidated properties is eliminated in Aimco’s consolidated GAAP financial statements and the related economic benefit is reflected in minority interest.
INTEREST INCOME — Consolidated interest income was $11.1 million for the fourth quarter 2007 compared with $12.7 million for the fourth quarter 2006. Interest income is earned in part from money market and interest bearing accounts as well as on notes receivable from unconsolidated partnerships and non-affiliates.
DEBT ACTIVITY — During the fourth quarter 2007, Aimco closed 28 property loans generating gross proceeds of $398.0 million at a weighted average interest rate of 6.24%. This included refinancing $121.6 million in existing mortgage loans, reducing the average interest rate from 6.74% to 6.08%. After repayment of existing property debt, transaction costs and distributions to limited partners, Aimco’s share of net proceeds was $248.9 million.
As of December 31, 2007, Aimco had $7.5 billion of consolidated debt outstanding, which consisted of: $5.7 billion of fixed rate mortgage debt, which is primarily non-recourse; $1.7 billion of floating rate property and corporate debt; and $75.1 million of other borrowings. In addition, Aimco had $100.0 million of floating rate preferred stock outstanding. Aimco’s FFO exposure to changes in floating interest rates is mitigated by $698.4 million of tax-exempt bonds with rates tied to the Bond Market Association Index, which moves at approximately 0.68% for a 1.00% change in LIBOR. Aimco’s exposure is further offset by floating rate assets, such as cash and notes receivable, and interest capitalized on entitlement and redevelopment properties. Based on Aimco’s proportionate share of quarter-end balances (see Supplemental Schedule 3), Aimco estimates its sensitivity to a 100 basis point change in LIBOR to be approximately $0.02 per share per quarter.
See Supplemental Schedule 5 for more detail on debt characteristics and activity.
INTEREST EXPENSE — Consolidated interest expense was $110.5 million for the fourth quarter 2007 compared with $101.5 million for the fourth quarter 2006. The $9.0 million increase in interest expense is the result of higher balances on property debt, offset by lower weighted average interest rates and higher capitalized interest.
STOCKHOLDERS’ EQUITY — During the fourth quarter 2007, Aimco repurchased approximately 4.0 million shares of its Class A Common Stock at an average price of $37.28 per share for a total cost of $150.4 million, bringing full-year 2007 common stock repurchases to 7.5 million shares at an average price of $43.70 per share for a total cost of $325.8 million.
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| AIMCO 4th Quarter 2007 | | | | Page 4 |
During the month of January 2008, Aimco repurchased approximately 4.5 million shares of its Class A Common Stock at an average price of $33.33 per share for a total cost of $151.2 million. Since Aimco began repurchasing shares during the third quarter 2006, the company has repurchased approximately 14.3 million shares, or approximately 14.7% of shares outstanding on July 31, 2006, at an average price of $41.79 per share for a total cost of $597.3 million.
On January 29, 2008, the Aimco Board of Directors increased our existing share repurchase authorization by 25 million shares. We are currently authorized to repurchase approximately 28.7 million additional shares. Repurchases may be made from time to time in the open market or in privately negotiated transactions.
Aimco issued approximately 4.6 million shares of its Class A Common Stock on January 30, 2008, in connection with the payment of the special dividend declared on December 21, 2007. See additional details regarding dividends on Common Stock below, and further information regarding the impact of the special dividend on share count contained in the Special Supplement.
G&A — General and administrative expenses for the fourth quarter 2007 of $23.9 million increased $0.5 million or 2.3% when compared with the fourth quarter 2006.
Outlook
For the first quarter 2008, FFO, before impairment and preferred redemption charges, is expected to be in a range from $0.68 to $0.72 per share. For the full year 2008, FFO, before impairment and preferred redemption charges, is expected to be in a range between $3.22 and $3.38 per share. Please refer to the Outlook Schedule, which follows the Consolidated Financial Statements in this release, for more detail on first quarter and full year 2008 guidance.
Dividends on Common Stock
As announced on December 21, 2007, the Aimco Board of Directors declared a special dividend of $2.51 per share of Class A Common Stock, paid on January 30, 2008, to stockholders of record on December 31, 2007. The special dividend was paid in a combination of approximately $55.0 million of cash and 4.6 million shares of Class A Common Stock. The dividend is taxable to the stockholders in 2007 without regard to whether a particular stockholder receives the dividend in the form of cash or shares. The special dividend allowed Aimco to satisfy its REIT distribution requirement while preserving cash for other corporate purposes, including share repurchases.
Cash dividends paid on Class A Common Stock during the year ended December 31, 2007, totaled $2.40 per share, or 96% of AFFO (undiluted, excluding special dividend) and 70% of FFO (diluted, excluding special dividend), on a per share basis, and a 6.9% cash yield based on the $34.73 closing price of Aimco’s Class A Common Stock on December 31, 2007.
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| AIMCO 4th Quarter 2007 | | | | Page 5 |
Earnings Conference Call
Please join Aimco management for the Fourth Quarter 2007 earnings conference call to be held Friday, February 8, 2008, at 1:00 p.m. Eastern time. You may join the conference call through an Internet audiocast by clicking on the Webcast link on Aimco’s Website athttp://www.aimco.com/CorporateInformation/About/Financial/4Q2007. Alternatively, you may join the conference call via telephone by dialing 866-700-5192 with passcode 39039038, or dialing 617-213-8833 for international callers. Please call approximately five minutes before the conference call is scheduled to begin. If you are unable to join the live conference call, you may access the replay for 30 days on Aimco’s Website or by dialing 888-286-8010, 617-801-6888 for international callers, and using passcode 70772669.
Supplemental Information
The Supplemental Information referenced in this release is available on Aimco’s Website at the linkhttp://www.aimco.com/CorporateInformation/About/Financial/4Q2007 or by calling Investor Relations at 303-691-4350.
Forward-looking Statements
This earnings release and Supplemental Information contain forward-looking statements, including statements regarding projected results and specifically forecasts of first quarter and full year 2008 results. These forward-looking statements are based on management’s judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to, Aimco’s ability to maintain current or meet projected occupancy levels, rent levels and Same Store results and Aimco’s ability to close transactions necessary to generate fee income as anticipated. Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors that are beyond the control of Aimco including, without limitation: severe weather such as hurricanes; national and local economic conditions; the general level of interest rates; energy costs; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which Aimco operates and competition for tenants in such markets; insurance risk; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; the timing of acquisitions and dispositions; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by Aimco. Readers should carefully review Aimco’s financial statements and notes thereto, as well as the risk factors described in Aimco’s Annual Report on Form 10-K for the year ended December 31, 2006, and the other documents Aimco files from time to time with the Securities and Exchange Commission. These forward-looking statements reflect management’s judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances.
About Aimco
Aimco is a real estate investment trust headquartered in Denver, Colorado that owns and operates a geographically diversified portfolio of apartment communities through 19 regional operating centers. Aimco, through its subsidiaries and affiliates, is the largest owner and operator of apartment communities in the United States with 1,169 properties, including 203,040 apartment units, and serves approximately 750,000 residents each year. Aimco’s properties are located in 46 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500. For more information about Aimco, please visit our web site atwww.aimco.com.
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| AIMCO 4th Quarter 2007 | | | | Page 6 |
GAAP Income Statements
Consolidated Statements of Income
(in thousands, except per share data) (unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
REVENUES: | | | | | | | | | | | | | | | | |
| Rental and other property revenues | | $ | 419,072 | | | $ | 395,794 | | | $ | 1,640,506 | | | $ | 1,540,500 | |
| Property management revenues, primarily from affiliates | | | 1,731 | | | | 3,091 | | | | 6,923 | | | | 12,312 | |
| Activity fees and asset management revenues | | | 34,201 | | | | 16,582 | | | | 73,755 | | | | 48,893 | |
| | | | | | | | | | | | | |
| Total revenues | | | 455,004 | | | | 415,467 | | | | 1,721,184 | | | | 1,601,705 | |
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OPERATING EXPENSES: | | | | | | | | | | | | | | | | |
| Property operating expenses | | | 199,053 | | | | 190,877 | | | | 768,457 | | | | 709,694 | |
| Property management expenses | | | 753 | | | | 1,385 | | | | 5,506 | | | | 5,111 | |
| Activity and asset management expenses | | | 5,345 | | | | 5,819 | | | | 23,102 | | | | 17,342 | |
| Depreciation and amortization | | | 120,978 | | | | 121,532 | | | | 487,822 | | | | 452,741 | |
| General and administrative expenses | | | 23,930 | | | | 23,402 | | | | 89,251 | | | | 90,149 | |
| Other (income) expenses, net | | | 4,003 | | | | 3,177 | | | | (212 | ) | | | 7,403 | |
| | | | | | | | | | | | | |
| Total operating expenses | | | 354,062 | | | | 346,192 | | | | 1,373,926 | | | | 1,282,440 | |
| | | | | | | | | | | | | |
Operating income | | | 100,942 | | | | 69,275 | | | | 347,258 | | | | 319,265 | |
| Interest income | | | 11,079 | | | | 12,724 | | | | 42,539 | | | | 34,043 | |
| Recoveries of (provisions for) losses on notes receivable, net | | | (1,827 | ) | | | (2,067 | ) | | | (3,951 | ) | | | (2,785 | ) |
| Interest expense | | | (110,482 | ) | | | (101,453 | ) | | | (422,130 | ) | | | (391,465 | ) |
| Deficit distributions to minority partners | | | (24,016 | ) | | | (856 | ) | | | (39,150 | ) | | | (20,802 | ) |
| Equity in earnings (losses) of unconsolidated real estate partnerships | | | 1,432 | | | | 536 | | | | (277 | ) | | | (2,070 | ) |
| Recoveries of (provisions for) real estate impairment losses, net | | | (6,638 | ) | | | — | | | | (6,638 | ) | | | 813 | |
| Gain on dispositions of unconsolidated real estate and other | | | 4,874 | | | | 7,329 | | | | 31,777 | | | | 26,845 | |
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| | | | | | | | | | | | | | | | | |
Loss before minority interests and discontinued operations | | | (24,636 | ) | | | (14,512 | ) | | | (50,572 | ) | | | (36,156 | ) |
| Minority interests: | | | | | | | | | | | | | | | | |
| Minority interest in consolidated real estate partnerships | | | 2,426 | | | | 4,551 | | | | (2,036 | ) | | | (12,338 | ) |
| Minority interest in Aimco Operating Partnership, preferred [1] | | | (1,782 | ) | | | (1,785 | ) | | | (7,128 | ) | | | (7,153 | ) |
| Minority interest in Aimco Operating Partnership, common [1] | | | 3,560 | | | | 2,726 | | | | 11,682 | | | | 13,172 | |
| | | | | | | | | | | | | |
| Total minority interests | | | 4,204 | | | | 5,492 | | | | 2,518 | | | | (6,319 | ) |
| | | | | | | | | | | | | |
Loss from continuing operations | | | (20,432 | ) | | | (9,020 | ) | | | (48,054 | ) | | | (42,475 | ) |
| Income from discontinued operations, net [3] | | | 8,147 | | | | 91,519 | | | | 77,965 | | | | 219,262 | |
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Net (loss) income | | | (12,285 | ) | | | 82,499 | | | | 29,911 | | | | 176,787 | |
| Net income attributable to preferred stockholders | | | 14,302 | | | | 16,388 | | | | 66,016 | | | | 81,132 | |
| | | | | | | | | | | | | |
Net (loss) income attributable to common stockholders | | $ | (26,587 | ) | | $ | 66,111 | | | $ | (36,105 | ) | | $ | 95,655 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Weighted average number of common shares outstanding [2] | | | 97,986 | | | | 100,245 | | | | 99,629 | | | | 100,280 | |
| | | | | | | | | | | | | |
| Weighted average number of common shares and common share equivalents outstanding [2] | | | 97,986 | | | | 100,245 | | | | 99,629 | | | | 100,280 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Earnings (loss) per common share — basic [2]: | | | | | | | | | | | | | | | | |
| Loss from continuing operations (net of income attributable to preferred stockholders) | | $ | (0.35 | ) | | $ | (0.25 | ) | | $ | (1.14 | ) | | $ | (1.23 | ) |
| Income from discontinued operations | | | 0.08 | | | | 0.91 | | | $ | 0.78 | | | | 2.18 | |
| | | | | | | | | | | | | |
| Net (loss) income attributable to common stockholders | | $ | (0.27 | ) | | $ | 0.66 | | | $ | (0.36 | ) | | $ | 0.95 | |
| | | | | | | | | | | | | |
| Earnings (loss) per common share — diluted [2]: | | | | | | | | | | | | | | | | |
| Loss from continuing operations (net of income attributable to preferred stockholders) | | $ | (0.35 | ) | | $ | (0.25 | ) | | $ | (1.14 | ) | | $ | (1.23 | ) |
| Income from discontinued operations | | | 0.08 | | | | 0.91 | | | | 0.78 | | | | 2.18 | |
| | | | | | | | | | | | | |
| Net (loss) income attributable to common stockholders | | $ | (0.27 | ) | | $ | 0.66 | | | $ | (0.36 | ) | | $ | 0.95 | |
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| AIMCO 4th Quarter 2007 | | Page 7 |
GAAP Income Statements (continued)
Notes to Consolidated Statements of Income
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| [1] | | The Aimco Operating Partnership is AIMCO Properties, L.P., the operating partnership in Aimco’s UPREIT structure. |
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| [2] | | Weighted average share, common share equivalent and earnings per share amounts for each of the periods presented above have been retroactively adjusted for the effect of shares of Common Stock issued on January 30, 2008, pursuant to the special dividend declared by Aimco’s Board of Directors on December 21, 2007. |
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| [3] | | Income from discontinued operations of consolidated properties consists of the following (in thousands): |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| Rental and other property revenues | | $ | 3,694 | | | $ | 31,722 | | | $ | 52,456 | | | $ | 164,733 | |
| Property operating expenses | | | (1,435 | ) | | | (16,252 | ) | | | (29,677 | ) | | | (86,005 | ) |
| Depreciation and amortization | | | (735 | ) | | | (8,740 | ) | | | (12,518 | ) | | | (46,036 | ) |
| Other expenses | | | (356 | ) | | | (1,968 | ) | | | (3,066 | ) | | | (5,956 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | 1,168 | | | | 4,762 | | | | 7,195 | | | | 26,736 | |
| Interest income | | | 236 | | | | 551 | | | | 993 | | | | 2,126 | |
| Interest expense | | | (679 | ) | | | (5,762 | ) | | | (9,959 | ) | | | (32,896 | ) |
| Gain on extinguishment of debt | | | — | | | | — | | | | 22,852 | | | | — | |
| Minority interest in consolidated real estate partnerships | | | (176 | ) | | | 5 | | | | 1,107 | | | | 3,561 | |
| | | | | | | | | | | | | |
| Income (loss) before gain on dispositions of real estate, impairment recoveries, (deficit distributions) recoveries of deficit distributions to minority partners, income tax and minority interests in Aimco Operating Partnership | | | 549 | | | | (444 | ) | | | 22,188 | | | | (473 | ) |
| | | | | | | | | | | | | | | | | |
| Gain on dispositions of real estate, net of minority partners’ interests | | | 8,065 | | | | 106,600 | | | | 65,378 | | | | 259,855 | |
| Real estate impairment recoveries, net | | | 911 | | | | 311 | | | | 128 | | | | 434 | |
| (Deficit distributions) recoveries of deficit distributions to minority partners | | | (19 | ) | | | (2,476 | ) | | | 390 | | | | 15,724 | |
| Income tax arising from disposals | | | (525 | ) | | | (2,721 | ) | | | (2,135 | ) | | | (32,918 | ) |
| Minority interests in Aimco Operating Partnership | | | (834 | ) | | | (9,751 | ) | | | (7,984 | ) | | | (23,360 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income from discontinued operations, net | | $ | 8,147 | | | $ | 91,519 | | | $ | 77,965 | | | $ | 219,262 | |
| | | | | | | | | | | | | |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | Page 8 |
GAAP Balance Sheets
Consolidated Balance Sheets
(in thousands) (unaudited)
| | | | | | | | | |
| | | December 31, 2007 | | | December 31, 2006 | |
ASSETS | | | | | | | | |
| Buildings and improvements | | $ | 9,724,669 | | | $ | 9,105,284 | |
| Land | | | 2,659,265 | | | | 2,355,497 | |
| Accumulated depreciation | | | (3,035,242 | ) | | | (2,702,092 | ) |
| | | | | | | |
| NET REAL ESTATE | | | 9,348,692 | | | | 8,758,689 | |
| Cash and cash equivalents | | | 210,461 | | | | 229,824 | |
| Restricted cash | | | 318,959 | | | | 346,029 | |
| Accounts receivable, net | | | 71,463 | | | | 87,166 | |
| Accounts receivable from affiliates, net | | | 34,958 | | | | 19,370 | |
| Deferred financing costs | | | 79,923 | | | | 70,418 | |
| Notes receivable from unconsolidated real estate partnerships, net | | | 35,186 | | | | 40,641 | |
| Notes receivable from non-affiliates, net | | | 143,054 | | | | 139,352 | |
| Investment in unconsolidated real estate partnerships | | | 117,217 | | | | 39,000 | |
| Other assets | | | 207,857 | | | | 202,759 | |
| Deferred income tax asset, net | | | 14,426 | | | | — | |
| Assets held for sale | | | 24,336 | | | | 356,527 | |
| | | | | | | |
| TOTAL ASSETS | | $ | 10,606,532 | | | $ | 10,289,775 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| Property tax-exempt bond financing | | $ | 941,555 | | | $ | 926,952 | |
| Property loans payable | | | 6,040,170 | | | | 5,098,916 | |
| Term loans | | | 475,000 | | | | 400,000 | |
| Credit facility | | | — | | | | 140,000 | |
| Other borrowings | | | 75,057 | | | | 67,660 | |
| | | | | | | |
| TOTAL INDEBTEDNESS | | | 7,531,782 | | | | 6,633,528 | |
| Accounts payable | | | 56,792 | | | | 54,972 | |
| Accrued liabilities and other | | | 449,485 | | | | 409,990 | |
| Deferred income | | | 202,392 | | | | 142,260 | |
| Security deposits | | | 49,469 | | | | 42,401 | |
| Deferred income tax liability, net | | | — | | | | 4,379 | |
| Liabilities related to assets held for sale | | | 11,867 | | | | 264,757 | |
| | | | | | | |
| TOTAL LIABILITIES | | | 8,301,787 | | | | 7,552,287 | |
| | | | | | | |
| | | | | | | | | |
| Minority interests in consolidated real estate partnerships | | | 441,778 | | | | 212,149 | |
| Minority interests in Aimco Operating Partnership | | | 113,263 | | | | 185,447 | |
| | | | | | | | | |
| STOCKHOLDERS’ EQUITY | | | | | | | | |
| Perpetual preferred stock | | | 723,500 | | | | 723,500 | |
| Convertible preferred stock | | | — | | | | 100,000 | |
| Class A Common Stock | | | 961 | | | | 968 | |
| Additional paid-in capital | | | 3,050,212 | | | | 3,095,430 | |
| Notes due on common stock purchases | | | (5,441 | ) | | | (4,714 | ) |
| Distributions in excess of earnings | | | (2,019,528 | ) | | | (1,575,292 | ) |
| | | | | | | |
| TOTAL STOCKHOLDERS’ EQUITY | | | 1,749,704 | | | | 2,339,892 | |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 10,606,532 | | | $ | 10,289,775 | |
| | | | | | | |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | Page 9 |
GAAP Statements of Cash Flows
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| | | | | | | | | |
| | | Year Ended
December 31, | |
| | | 2007 | | | 2006 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | |
| Net income | | $ | 29,911 | | | $ | 176,787 | |
| Depreciation and amortization | | | 487,822 | | | | 452,741 | |
| Adjustments to income from discontinued operations | | | (68,527 | ) | | | (210,178 | ) |
| Other adjustments to reconcile net income | | | 2,958 | | | | 33,090 | |
| Changes in operating assets and liabilities | | | 13,372 | | | | 66,470 | |
| | | | | �� | | |
| Net cash provided by operating activities | | | 465,536 | | | | 518,910 | |
| | | | | | | |
| | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
| Purchases of real estate | | | (201,434 | ) | | | (153,426 | ) |
| Capital expenditures | | | (689,719 | ) | | | (512,564 | ) |
| Proceeds from dispositions of real estate | | | 431,863 | | | | 958,604 | |
| Change in funds held in escrow from tax-free exchanges | | | 25,863 | | | | (19,021 | ) |
| Cash from newly consolidated properties | | | 7,549 | | | | 23,269 | |
| Proceeds from sale of interests in real estate partnerships | | | 194,329 | | | | 45,662 | |
| Purchases of partnership interests | | | (86,204 | ) | | | (37,570 | ) |
| Originations of notes receivable | | | (10,812 | ) | | | (94,640 | ) |
| Proceeds from repayment of notes receivable | | | 14,370 | | | | 9,604 | |
| Other investing activities | | | 42,596 | | | | 13,122 | |
| | | | | | | |
| Net cash (used in) provided by investing activities | | | (271,599 | ) | | | 233,040 | |
| | | | | | | |
| | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
| Proceeds from property loans | | | 1,552,048 | | | | 1,185,670 | |
| Principal repayments on property loans | | | (850,484 | ) | | | (1,004,142 | ) |
| Proceeds from tax-exempt bonds | | | 82,350 | | | | 75,568 | |
| Principal repayments on tax-exempt bond financing | | | (70,029 | ) | | | (229,287 | ) |
| Borrowings under term loans | | | 75,000 | | | | — | |
| Repayments on revolving credit facility | | | (140,000 | ) | | | (77,000 | ) |
| Proceeds (paydowns) on other borrowings | | | (8,468 | ) | | | (22,838 | ) |
| Proceeds from issuance of preferred stock | | | — | | | | 97,491 | |
| Redemption of preferred stock | | | (100,000 | ) | | | (286,750 | ) |
| Repurchase of Class A Common Stock | | | (307,382 | ) | | | (109,937 | ) |
| Proceeds from Class A Common Stock option exercises | | | 53,887 | | | | 107,603 | |
| Principal payments on Class A stock notes | | | 1,659 | | | | 21,844 | |
| Payment of Class A Common Stock dividends | | | (230,806 | ) | | | (231,697 | ) |
| Payment of preferred stock dividends | | | (69,100 | ) | | | (74,700 | ) |
| Payment of distributions to minority interests | | | (180,684 | ) | | | (117,216 | ) |
| Other financing activities | | | (21,291 | ) | | | (18,465 | ) |
| | | | | | | |
| Net cash used in financing activities | | | (213,300 | ) | | | (683,856 | ) |
| | | | | | | |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | | | (19,363 | ) | | | 68,094 | |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | 229,824 | | | | 161,730 | |
| | | | | | | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | 210,461 | | | $ | 229,824 | |
| | | | | | | |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | Page 10 |
Outlook and Forward Looking Statement
First Quarter and Full Year 2008
(unaudited)
This Earnings Release and Supplemental Information contain forward-looking statements, including statements regarding projected results and specifically forecasts of first quarter and full year 2008 results. These forward-looking statements are based on management’s judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to, Aimco’s ability to maintain current or meet projected occupancy, rent levels and Same Store results and Aimco’s ability to close transactions necessary to generate transactional income as anticipated.
Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors that are beyond the control of Aimco including, without limitation: natural disasters such as hurricanes; national and local economic conditions; the general level of interest rates; energy costs; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets; insurance risk; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; the timing of acquisitions and dispositions; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by Aimco.
Readers should carefully review Aimco’s financial statements and notes thereto, as well as the risk factors described in Aimco’s Annual Report on Form 10-K for the year ended December 31, 2006, and the other documents Aimco files from time to time with the Securities and Exchange Commission. These forward-looking statements reflect management’s judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances.
| | | | | |
| | | First Quarter 2008 | | Full Year 2008 |
| GAAP earnings per share [1] [4] | | -$0.57 to -$0.53 | | -$1.78 to -$1.62 |
| Add: Depreciation and other | | $1.25 | | $5.00 |
| FFO per share [2] [5] | | $0.68 to $0.72 | | $3.22 to $3.38 |
| AFFO per share [3] [5] | | | | greater than $2.40 |
| 2008 Same Store operating assumptions: | | | | |
| Weighted average daily occupancy | | 94% to 95% | | 94% to 95% |
| NOI change — sequential | | -3.5% to -2.5% | | |
| NOI change - 2008 vs. 2007 | | 0.5% to 1.5% | | 2.5% to 4.5% |
| | |
| [1] | | Aimco’s earnings per share guidance does not include estimates for (i) gains on dispositions or impairment losses due to the unpredictable timing of transactions, (ii) gains or losses on early repayment of debt or (iii) preferred stock redemption related costs. |
| |
| [2] | | FFO per share represents FFO before impairment and preferred redemption related charges. |
| |
| [3] | | Outlook for AFFO is provided on an annual basis. |
| |
| [4] | | The GAAP earnings per share is calculated based on 90.9 million and 90.6 million weighted average common shares (diluted) for the first quarter 2008 and full year 2008, respectively. |
| |
| [5] | | FFO per share and AFFO per share is calculated based on 91.6 million and 91.8 million weighted average common shares (diluted) for the first quarter 2008 and full year 2008, respectively. |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | Page 11 |
| AIMCO 4th Quarter 2007 SUPPLEMENTAL INFORMATION |
| | | | | |
| PAGE |
| | | | | |
| | 3 | | | Schedule 1 – Funds From Operations and Adjusted Funds From Operations |
| | | | | |
| | 5 | | | Schedule 2 – Proportionate Operating Results Presentation |
| | | | | |
| | 7 | | | Schedule 3 – Proportionate Balance Sheet Presentation |
| | | | | |
| | 8 | | | Schedule 4 – Share Data |
| | | | | |
| | 9 | | | Schedule 5 – Selected Debt Structure and Maturity Data |
| | | | | |
| | 11 | | | Schedule 6a – Same Store Operating Results (4Q 2007 v. 4Q 2006) |
| | | | | |
| | 12 | | | Schedule 6b – Same Store Operating Results (4Q 2007 v. 3Q 2007) |
| | | | | |
| | 13 | | | Schedule 6c – Same Store Operating Results (YTD 2007 v. YTD 2006) |
| | | | | |
| | 14 | | | Schedule 7 – Selected Conventional Portfolio Performance Data |
| | | | | |
| | 15 | | | Schedule 8 – Property Sales and Acquisition Activity |
| | | | | |
| | 16 | | | Schedule 9 – Capital Expenditures |
| | | | | |
| | 17 | | | Schedule 10 – Summary of Redevelopment Activity |
| | | | | |
| | 18 | | | Schedule 11 – Aimco Capital |
| | | | | |
| | 19 | | | Schedule 12 – Apartment Unit Summary |
| | | | | |
| | 20 | | | Special Supplement |
| | | | | |
| | 21 | | | Glossary |
Supplemental Schedule 1
Funds From Operations and Adjusted Funds From Operations
(in thousands, except per share data) (unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Net (loss) income attributable to common stockholders [1] | | $ | (26,587 | ) | | $ | 66,111 | | | $ | (36,105 | ) | | $ | 95,655 | |
| Adjustments: | | | | | | | | | | | | | | | | |
| Depreciation and amortization [2] | | | 120,978 | | | | 121,532 | | | | 487,822 | | | | 452,741 | |
| Depreciation and amortization related to non-real estate assets | | | (6,216 | ) | | | (5,046 | ) | | | (21,258 | ) | | | (25,511 | ) |
| Depreciation of rental property related to minority partners and unconsolidated entities [3] | | | (8,546 | ) | | | 3,010 | | | | (32,150 | ) | | | 63 | |
| Gain on dispositions of unconsolidated real estate and other | | | (4,874 | ) | | | (7,329 | ) | | | (12,404 | ) | | | (26,845 | ) |
| Gain on dispositions of non-depreciable assets and other | | | 1,328 | | | | 2,265 | | | | 7,329 | | | | 11,526 | |
| Deficit distributions to minority partners [4] | | | 24,016 | | | | 856 | | | | 39,150 | | | | 20,802 | |
| Discontinued operations: | | | | | | | | | | | | | | | | |
| Gain on dispositions of real estate, net of minority partners’ interests [3] | | | (8,065 | ) | | | (106,600 | ) | | | (65,378 | ) | | | (259,855 | ) |
| Depreciation of rental property, net of minority partners’ interests [3] | | | 663 | | | | 10,373 | | | | (8,385 | ) | | | 35,487 | |
| Deficit distributions (recoveries of deficit distributions) to minority partners [4] | | | 19 | | | | 2,476 | | | | (390 | ) | | | (15,724 | ) |
| Income tax arising from disposals | | | 525 | | | | 2,721 | | | | 2,135 | | | | 32,918 | |
| Minority interests in Aimco Operating Partnership’s share of above adjustments | | | (11,215 | ) | | | (2,395 | ) | | | (36,830 | ) | | | (21,721 | ) |
| Preferred stock dividends | | | 14,302 | | | | 16,388 | | | | 63,381 | | | | 74,284 | |
| Preferred stock redemption related costs | | | — | | | | — | | | | 2,635 | | | | 6,848 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds From Operations | | $ | 96,328 | | | $ | 104,362 | | | $ | 389,552 | | | $ | 380,668 | |
| Preferred stock dividends | | | (14,302 | ) | | | (16,388 | ) | | | (63,381 | ) | | | (74,284 | ) |
| Preferred stock redemption related costs | | | — | | | | — | | | | (2,635 | ) | | | (6,848 | ) |
| Dividends/distributions on dilutive preferred securities | | | 1,759 | | | | 60 | | | | 1,875 | | | | 202 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds From Operations Attributable to Common Stockholders — Diluted | | $ | 83,785 | | | $ | 88,034 | | | $ | 325,411 | | | $ | 299,738 | |
| Real estate impairment losses (recoveries), continuing operations [5] | | | 6,638 | | | | — | | | | 6,638 | | | | (813 | ) |
| Real estate impairment losses (recoveries), discontinued operations [5] | | | (911 | ) | | | (311 | ) | | | (128 | ) | | | (434 | ) |
| Preferred stock redemption related costs [6] | | | — | | | | — | | | | 2,635 | | | | 6,848 | |
| Minority interests in Aimco Operating Partnership’s share of above adjustments | | | (533 | ) | | | 28 | | | | (849 | ) | | | (539 | ) |
| Dividends/distributions on dilutive preferred securities | | | — | | | | — | | | | — | | | | 41 | |
| | | | | | | | | | | | | |
Funds From Operations Attributable to Common Stockholders — Diluted (excluding impairment losses and preferred stock redemption related costs) | | $ | 88,979 | | | $ | 87,751 | | | $ | 333,707 | | | $ | 304,841 | |
| | | | | | | | | | | | | | | | | |
| Capital Replacements | | | (28,634 | ) | | | (16,466 | ) | | | (102,612 | ) | | | (76,599 | ) |
| Minority interest in Aimco Operating Partnership’s share of Capital Replacements | | | 2,682 | | | | 1,603 | | | | 9,532 | | | | 7,375 | |
| Dividends/distributions on non-dilutive preferred securities | | | (1,701 | ) | | | (60 | ) | | | (1,817 | ) | | | (244 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Adjusted Funds From Operations Attributable to Common Stockholders — Diluted | | $ | 61,326 | | | $ | 72,828 | | | $ | 238,810 | | | $ | 235,373 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds From Operations Attributable to Common Stockholders — Diluted: | | | | | | | | | | | | | | | | |
| Weighted average common shares, common share equivalents and dilutive preferred securities outstanding [8]: | | | | | | | | | | | | | | | | |
| Common shares and equivalents [7] | | | 98,841 | | | | 104,534 | | | | 102,017 | | | | 103,161 | |
| Dilutive preferred securities | | | 2,268 | | | | 76 | | | | 609 | | | | 75 | |
| | | | | | | | | | | | | |
| | | | 101,109 | | | | 104,610 | | | | 102,626 | | | | 103,236 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds From Operations (excluding impairment losses and preferred stock redemption related costs): | | | | | | | | | | | | | | | | |
| Weighted average common shares, common share equivalents and dilutive preferred securities outstanding [8]: | | | | | | | | | | | | | | | | |
| Common shares and equivalents [7] | | | 98,841 | | | | 104,534 | | | | 102,017 | | | | 103,161 | |
| Dilutive preferred securities | | | 2,268 | | | | 76 | | | | 609 | | | | 89 | |
| | | | | | | | | | | | | |
| | | | 101,109 | | | | 104,610 | | | | 102,626 | | | | 103,250 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Adjusted Funds From Operations Attributable to Common Stockholders — Diluted: | | | | | | | | | | | | | | | | |
| Weighted average common shares, common share equivalents and dilutive preferred securities outstanding [8]: | | | | | | | | | | | | | | | | |
| Common shares and equivalents [7] | | | 98,841 | | | | 104,534 | | | | 102,017 | | | | 103,161 | |
| Dilutive preferred securities | | | 100 | | | | — | | | | 25 | | | | — | |
| | | | | | | | | | | | | |
| | | | 98,941 | | | | 104,534 | | | | 102,042 | | | | 103,161 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Per Share [8]: | | | | | | | | | | | | | | | | |
| Funds From Operations — Diluted | | $ | 0.83 | | | $ | 0.84 | | | $ | 3.17 | | | $ | 2.90 | |
| Funds From Operations — Diluted (excluding impairment losses and preferred stock redemption related costs) | | $ | 0.88 | | | $ | 0.84 | | | $ | 3.25 | | | $ | 2.95 | |
| Adjusted Funds From Operations — Diluted | | $ | 0.62 | | | $ | 0.70 | | | $ | 2.34 | | | $ | 2.28 | |
| Dividends paid [9] | | $ | 0.60 | | | $ | 0.60 | | | $ | 2.40 | | | $ | 2.40 | |
Supplemental Schedule 1 (continued)
Notes to Funds From Operations and Adjusted Funds From Operations
| | |
| [1] | | Represents the numerator for calculating basic earnings per common share in accordance with GAAP. |
| |
| [2] | | Includes amortization of management contracts where Aimco is the general partner. Such management contracts were established in certain instances where Aimco acquired a general partner interest in either a consolidated or an unconsolidated partnership. Because the recoverability of these management contracts depends primarily on the operations of the real estate owned by the limited partnerships, Aimco believes it is consistent with NAREIT’s April 1, 2002 White Paper to add back such amortization, as the White Paper directs the add back of amortization of assets uniquely significant to the real estate industry. |
| |
| [3] | | “Minority partners’ interests” means minority interests in our consolidated real estate partnerships. |
| |
| [4] | | In accordance with GAAP, deficit distributions to minority partners are charges recognized in Aimco’s income statement when cash is distributed to a non-controlling partner in a consolidated real estate partnership in excess of the positive balance in such partner’s capital account, which is classified as minority interest on the balance sheet. Aimco records these charges for GAAP purposes even though there is no economic effect or cost. Deficit distributions to minority partners occur when the fair value of the underlying real estate exceeds its depreciated net book value because the underlying real estate has appreciated or maintained its value. As a result, the recognition of expense for deficit distributions to minority partners represents, in substance, either (1) recognition of depreciation previously allocated to the non-controlling partner or (2) a payment related to the non-controlling partner’s share of real estate appreciation. Based on NAREIT’s White Paper guidance that requires real estate depreciation and gains to be excluded from FFO, Aimco adds back deficit distributions and subtracts related recoveries in its reconciliation of net income to FFO. |
| |
| [5] | | 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. FFO for the three months and year ended December 31, 2007 includes net impairment losses of $5.7 million and $6.5 million, respectively. FFO for the three months and year ended December 31, 2006 includes recoveries of impairment losses of $0.3 million and $1.2 million, respectively. |
| |
| [6] | | In accordance with the Securities and Exchange Commission’s July 31, 2003 interpretation of the Emerging Issues Task Force Topic D-42, Aimco includes redemption related preferred stock costs in FFO. As a result, FFO for the years ended December 31, 2007 and 2006, includes redemption premiums and issuance costs of $2.6 million and $6.8 million, respectively. |
| |
| [7] | | Represents the denominator for calculating Aimco’s diluted earnings per common share in accordance with GAAP plus additional common share equivalents that are dilutive for FFO or AFFO. |
| |
| [8] | | Weighted average common shares, common share equivalents, dilutive preferred securities and per share funds from operations amounts for each of the periods presented above have been retroactively adjusted for the effect of shares of Common Stock issued on January 30, 2008 pursuant to the special dividend declared by Aimco’s Board of Directors on December 21, 2007. |
| |
| [9] | | Dividends paid per share for the periods presented have not been adjusted to give effect to shares of Common Stock issued on January 30, 2008 pursuant to the special dividend declared by Aimco’s Board of Directors on December 21, 2007. |
Supplemental Schedule 2
| | |
| | | |
| Proportionate Operating Results Presentation | | (page 1 of 2) |
| (in thousands) (unaudited) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, 2007 | | | Year Ended December 31, 2007 | |
| | | Aimco | | | Share of | | | Minority | | | Proportionate | | | Aimco | | | Share of | | | Minority | | | Proportionate | |
| | | GAAP Income | | | Unconsolidated | | | Partners' | | | Income | | | GAAP Income | | | Unconsolidated | | | Partners' | | | Income | |
| | | Statement | | | Partnerships | | | Interest | | | Statement | | | Statement | | | Partnerships | | | Interest | | | Statement | |
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Rental and other property revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Same Store properties [1] [2] | | $ | 292,777 | | | $ | 420 | | | $ | (25,108 | ) | | $ | 268,089 | | | $ | 1,153,507 | | | $ | 1,727 | | | $ | (117,248 | ) | | $ | 1,037,986 | |
| Acquisition properties [1] | | | 7,607 | | | | — | | | | — | | | | 7,607 | | | | 23,571 | | | | — | | | | — | | | | 23,571 | |
| Redevelopment properties [1] | | | 50,005 | | | | — | | | | (4,445 | ) | | | 45,560 | | | | 192,541 | | | | — | | | | (17,841 | ) | | | 174,700 | |
| Other properties [1] | | | 9,348 | | | | 207 | | | | (860 | ) | | | 8,695 | | | | 37,311 | | | | 1,025 | | | | (3,252 | ) | | | 35,084 | |
| Affordable properties [1] | | | 59,335 | | | | 5,884 | | | | (20,469 | ) | | | 44,750 | | | | 233,576 | | | | 23,416 | | | | (76,737 | ) | | | 180,255 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues | | | 419,072 | | | | 6,511 | | | | (50,882 | ) | | | 374,701 | | | | 1,640,506 | | | | 26,168 | | | | (215,078 | ) | | | 1,451,596 | |
| Property management revenues, primarily from affiliates [3] | | | 1,731 | | | | (259 | ) | | | 2,120 | | | | 3,592 | | | | 6,923 | | | | (1,118 | ) | | | 11,214 | | | | 17,019 | |
| Activity fees and asset management revenues | | | 34,201 | | | | — | | | | — | | | | 34,201 | | | | 73,755 | | | | — | | | | — | | | | 73,755 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenues | | | 455,004 | | | | 6,252 | | | | (48,762 | ) | | | 412,494 | | | | 1,721,184 | | | | 25,050 | | | | (203,864 | ) | | | 1,542,370 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Same Store properties [2] | | | 121,633 | | | | 213 | | | | (11,272 | ) | | | 110,574 | | | | 485,218 | | | | 834 | | | | (53,065 | ) | | | 432,987 | |
| Acquisition properties | | | 3,310 | | | | — | | | | — | | | | 3,310 | | | | 10,319 | | | | — | | | | — | | | | 10,319 | |
| Redevelopment properties | | | 21,695 | | | | — | | | | (2,348 | ) | | | 19,347 | | | | 83,731 | | | | 2 | | | | (9,220 | ) | | | 74,513 | |
| Other properties | | | 4,680 | | | | 107 | | | | (361 | ) | | | 4,426 | | | | 19,450 | | | | 619 | | | | (1,633 | ) | | | 18,436 | |
| Affordable properties | | | 32,893 | | | | 2,744 | | | | (11,615 | ) | | | 24,022 | | | | 121,698 | | | | 12,410 | | | | (40,089 | ) | | | 94,019 | |
| Casualties, Conventional | | | 3,734 | | | | 101 | | | | 363 | | | | 4,198 | | | | 7,952 | | | | (306 | ) | | | 1,979 | | | | 9,625 | |
| Casualties, Affordable | | | 355 | | | | (42 | ) | | | 132 | | | | 445 | | | | 1,005 | | | | (122 | ) | | | 523 | | | | 1,406 | |
| Property management expenses, Conventional [4] | | | 9,331 | | | | — | | | | (1,106 | ) | | | 8,225 | | | | 33,310 | | | | — | | | | (1,376 | ) | | | 31,934 | |
| Property management expenses, Affordable [4] | | | 1,422 | | | | — | | | | (307 | ) | | | 1,115 | | | | 5,774 | | | | — | | | | (1,488 | ) | | | 4,286 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total property operating expenses | | | 199,053 | | | | 3,123 | | | | (26,514 | ) | | | 175,662 | | | | 768,457 | | | | 13,437 | | | | (104,369 | ) | | | 677,525 | |
| Property management expenses [5] | | | 753 | | | | — | | | | 1,413 | | | | 2,166 | | | | 5,506 | | | | — | | | | 2,864 | | | | 8,370 | |
| Activity and asset management expenses | | | 5,345 | | | | — | | | | — | | | | 5,345 | | | | 23,102 | | | | — | | | | — | | | | 23,102 | |
| Depreciation and amortization | | | 120,978 | | | | 1,176 | | | | (9,801 | ) | | | 112,353 | | | | 487,822 | | | | 4,935 | | | | (37,392 | ) | | | 455,365 | |
| General and administrative expenses | | | 23,930 | | | | 22 | | | | (1,106 | ) | | | 22,846 | | | | 89,251 | | | | 99 | | | | (4,579 | ) | | | 84,771 | |
| Other expenses (income), net | | | 4,003 | | | | (369 | ) | | | (2,284 | ) | | | 1,350 | | | | (212 | ) | | | 2,241 | | | | (6,419 | ) | | | (4,390 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total operating expenses | | | 354,062 | | | | 3,952 | | | | (38,292 | ) | | | 319,722 | | | | 1,373,926 | | | | 20,712 | | | | (149,895 | ) | | | 1,244,743 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 100,942 | | | | 2,300 | | | | (10,470 | ) | | | 92,772 | | | | 347,258 | | | | 4,338 | | | | (53,969 | ) | | | 297,627 | |
| Interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| General partner loan interest | | | 2,659 | | | | (67 | ) | | | 2,407 | | | | 4,999 | | | | 11,662 | | | | (330 | ) | | | 22,606 | | | | 33,938 | |
| Money market and interest bearing accounts | | | 6,367 | | | | 355 | | | | (1,174 | ) | | | 5,548 | | | | 24,387 | | | | 928 | | | | (4,376 | ) | | | 20,939 | |
| Accretion on discounted notes receivable | | | 2,053 | | | | — | | | | — | | | | 2,053 | | | | 6,490 | | | | — | | | | — | | | | 6,490 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest income | | | 11,079 | | | | 288 | | | | 1,233 | | | | 12,600 | | | | 42,539 | | | | 598 | | | | 18,230 | | | | 61,367 | |
| Provision for losses on notes receivable | | | (1,827 | ) | | | — | | | | — | | | | (1,827 | ) | | | (3,951 | ) | | | — | | | | — | | | | (3,951 | ) |
| Interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property debt (primarily non-recourse) | | | (106,669 | ) | | | (1,158 | ) | | | 12,053 | | | | (95,774 | ) | | | (407,600 | ) | | | (5,224 | ) | | | 50,631 | | | | (362,193 | ) |
| Corporate credit facility | | | (11,826 | ) | | | — | | | | — | | | | (11,826 | ) | | | (45,249 | ) | | | — | | | | — | | | | (45,249 | ) |
| Capitalized interest | | | 8,013 | | | | 2 | | | | (390 | ) | | | 7,625 | | | | 30,719 | | | | 11 | | | | (1,827 | ) | | | 28,903 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | (110,482 | ) | | | (1,156 | ) | | | 11,663 | | | | (99,975 | ) | | | (422,130 | ) | | | (5,213 | ) | | | 48,804 | | | | (378,539 | ) |
| Deficit distributions to minority partners | | | (24,016 | ) | | | — | | | | — | | | | (24,016 | ) | | | (39,150 | ) | | | — | | | | — | | | | (39,150 | ) |
| Equity in earnings (losses) of unconsolidated real estate partnerships | | | 1,432 | | | | (1,432 | ) | | | — | | | | — | | | | (277 | ) | | | 277 | | | | — | | | | — | |
| Real estate impairment (losses) recoveries, net | | | (6,638 | ) | | | — | | | | — | | | | (6,638 | ) | | | (6,638 | ) | | | — | | | | — | | | | (6,638 | ) |
| Gain on dispositions of unconsolidated real estate and other | | | 4,874 | | | | — | | | | — | | | | 4,874 | | | | 31,777 | | | | — | | | | (15,101 | ) | | | 16,676 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loss before minority interests and discontinued operations | | | (24,636 | ) | | | — | | | | 2,426 | | | | (22,210 | ) | | | (50,572 | ) | | | — | | | | (2,036 | ) | | | (52,608 | ) |
| Minority interest in consolidated real estate partnerships | | | 2,426 | | | | — | | | | (2,426 | ) | | | — | | | | (2,036 | ) | | | — | | | | 2,036 | | | | — | |
| Minority interest in Aimco Operating Partnership | | | 1,778 | | | | — | | | | — | | | | 1,778 | | | | 4,554 | | | | — | | | | — | | | | 4,554 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loss from continuing operations | | | (20,432 | ) | | | — | | | | — | | | | (20,432 | ) | | | (48,054 | ) | | | — | | | | — | | | | (48,054 | ) |
| Income from discontinued operations, net | | | 8,147 | | | | — | | | | — | | | | 8,147 | | | | 77,965 | | | | — | | | | — | | | | 77,965 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | (12,285 | ) | | | — | | | | — | | | | (12,285 | ) | | | 29,911 | | | | — | | | | — | | | | 29,911 | |
| Net income attributable to preferred stockholders | | | 14,302 | | | | — | | | | — | | | | 14,302 | | | | 66,016 | | | | — | | | | — | | | | 66,016 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss attributable to common stockholders | | $ | (26,587 | ) | | $ | — | | | $ | — | | | $ | (26,587 | ) | | $ | (36,105 | ) | | $ | — | | | $ | — | | | $ | (36,105 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
(See footnotes on page 2 of 2)
Supplemental Schedule 2
| | |
| | | |
| Proportionate Operating Results Presentation | | (page 2 of 2) |
| (in thousands) (unaudited) | | |
| | | | | | | | | |
| | | Three Months | | | | |
| | | Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2007 | |
Components of FFO: | | | | | | | | |
| Real estate operations: | | | | | | | | |
| Rental and other property revenues | | $ | 374,701 | | | $ | 1,451,596 | |
| Property operating expenses | | | (175,662 | ) | | | (677,525 | ) |
| | | | | | | |
| Net real estate operations | | | 199,039 | | | | 774,071 | |
| Property management, net | | | 1,426 | | | | 8,649 | |
| Activity and asset management, net | | | 28,856 | | | | 50,653 | |
| Depreciation and amortization related to non-real estate assets | | | (6,139 | ) | | | (20,950 | ) |
| General and administrative expenses | | | (22,846 | ) | | | (84,771 | ) |
| Other (expenses) income, net | | | (1,350 | ) | | | 4,390 | |
| Interest income | | | 12,600 | | | | 61,367 | |
| Provision for losses on notes receivable | | | (1,827 | ) | | | (3,951 | ) |
| Interest expense | | | (99,975 | ) | | | (378,539 | ) |
| Gain on dispositions of non-depreciable assets | | | 1,328 | | | | 7,329 | |
| Gain on extinguishment of debt | | | — | | | | 4,271 | |
| Discontinued operations: | | | | | | | | |
| Operations and other | | | 1,735 | | | | 14,293 | |
| Interest expense | | | (521 | ) | | | (5,529 | ) |
| Gain on extinguishment of debt | | | — | | | | 5,039 | |
| Preferred stock dividends | | | (14,302 | ) | | | (63,381 | ) |
| Preferred partnership unit distributions | | | (1,782 | ) | | | (7,128 | ) |
| Dividends/distributions on dilutive preferred securities | | | 1,759 | | | | 1,875 | |
| | | | | | | |
Subtotal before minority interest in Aimco Operating Partnership | | $ | 98,001 | | | $ | 367,688 | |
| Minority interest in common units of Aimco Operating Partnership | | | (9,022 | ) | | | (33,980 | ) |
| | | | | | | |
FFO Attributable to Common Stockholders — Diluted (excluding impairment losses and preferred stock redemption related costs) | | $ | 88,979 | | | $ | 333,707 | |
| | | | | | | |
| | | | | | | | | |
Reconciliation of Net Income to FFO and AFFO: | | | | | | | | |
Net (loss) income | | $ | (12,285 | ) | | $ | 29,911 | |
| Depreciation and amortization | | | 112,353 | | | | 455,365 | |
| Depreciation and amortization related to non-real estate assets | | | (6,139 | ) | | | (20,950 | ) |
| Deficit distributions to minority partners | | | 24,016 | | | | 39,150 | |
| Gain on dispositions of unconsolidated real estate and other | | | (4,874 | ) | | | (16,676 | ) |
| Gain on dispositions of non-depreciable assets | | | 1,328 | | | | 7,329 | |
| Gain on extinguishment of debt | | | — | | | | 4,271 | |
| Discontinued operations | | | (6,856 | ) | | | (72,018 | ) |
| Real estate impairment losses (recoveries), continuing operations | | | 6,638 | | | | 6,638 | |
| Real estate impairment losses (recoveries), discontinued operations | | | (911 | ) | | | (128 | ) |
| Minority interest in Aimco Operating Partnership’s share of adjustments | | | (11,748 | ) | | | (37,679 | ) |
| Preferred stock dividends | | | (14,302 | ) | | | (63,381 | ) |
| Dividends/distributions on dilutive preferred securities | | | 1,759 | | | | 1,875 | |
| | | | | | | |
FFO Attributable to Common Stockholders — Diluted (excluding impairment losses and preferred stock redemption related costs) | | $ | 88,979 | | | $ | 333,707 | |
| Capital Replacements | | | (28,634 | ) | | | (102,612 | ) |
| Minority interest in Aimco Operating Partnership’s share of Capital Replacements | | | 2,682 | | | | 9,532 | |
| Dividends/distributions on non-dilutive preferred securities | | | (1,701 | ) | | | (1,817 | ) |
| | | | | | | |
AFFO Attributable to Common Stockholders — Diluted | | $ | 61,326 | | | $ | 238,810 | |
| | | | | | | |
Notes to Schedule 2:
| | |
| [1] | | See definitions and descriptions in Glossary. |
| |
| [2] | | Same store amounts in this schedule differ from the same store amounts in Schedule 6. Any such differences are the result of (a) certain variations in the treatment of intercompany eliminations in GAAP versus non-GAAP measures; (b) the effect of changing ownership percentages over time due to Aimco’s acquisition of additional partnership interests and (c) the elimination of non-recurring items that if included in Schedule 6 would distort Schedule 6 same store results. |
| |
| [3] | | Property management revenues reported in Aimco’s GAAP income statement reflect fees charged to unconsolidated properties. Property management revenues reported in the proportionate income statement reflect the minority partners’ share of fees charged to both consolidated and unconsolidated properties. |
| |
| [4] | | Property management expenses reported on this line in Aimco’s GAAP income statement reflect expenses related to the management of consolidated properties. Property management expenses reported on this line in the proportionate income statement reflect Aimco’s share of both consolidated and unconsolidated property management expenses. |
| |
| [5] | | Property management expenses reported on this line in Aimco’s GAAP income statement reflect expenses related to the management of unconsolidated properties. Property management expenses reported on this line in the proportionate income statement reflect minority partners’ share of both consolidated and unconsolidated property management expenses. |
Supplemental Schedule 3
Proportionate Balance Sheet Presentation
(in thousands) (unaudited)
| | | | | | | | | | | | | | | | | |
| | | Consolidated | | | Proportionate | | | | | | | |
| | | GAAP | | | Share of | | | Minority | | | Proportionate | |
| | | Balance Sheet | | | Unconsolidated | | | Partners' | | | Balance | |
| | | December 31, 2007 | | | Partnerships [1] | | | Interest [2] | | | Sheet [3] | |
ASSETS | | | | | | | | | | | | | | | | |
| Buildings and improvements | | $ | 9,724,669 | | | $ | 50,892 | | | $ | (1,400,913 | ) | | $ | 8,374,648 | |
| Land | | | 2,659,265 | | | | 2,055 | | | | (148,658 | ) | | | 2,512,662 | |
| Accumulated depreciation | | | (3,035,242 | ) | | | (33,804 | ) | | | 750,135 | | | | (2,318,911 | ) |
| | | | | | | | | | | | | |
| NET REAL ESTATE | | | 9,348,692 | | | | 19,143 | | | | (799,436 | ) | | | 8,568,399 | |
| Cash and cash equivalents | | | 210,461 | | | | 1,343 | | | | (43,949 | ) | | | 167,855 | |
| Restricted cash | | | 318,959 | | | | 4,978 | | | | (67,142 | ) | | | 256,795 | |
| Accounts receivable, net | | | 71,463 | | | | 544 | | | | — | | | | 72,007 | |
| Accounts receivable from affiliates, net | | | 34,958 | | | | — | | | | — | | | | 34,958 | |
| Deferred financing costs | | | 79,923 | | | | — | | | | — | | | | 79,923 | |
| Notes receivable from unconsolidated real estate partnerships, net | | | 35,186 | | | | — | | | | — | | | | 35,186 | |
| Notes receivable from non-affiliates, net | | | 143,054 | | | | — | | | | — | | | | 143,054 | |
| Investment in unconsolidated real estate partnerships | | | 117,217 | | | | 21,488 | | | | — | | | | 138,705 | |
| Other assets | | | 207,857 | [4] | | | 14,536 | | | | — | | | | 222,393 | |
| Deferred income tax asset, net | | | 14,426 | | | | — | | | | — | | | | 14,426 | |
| Assets held for sale | | | 24,336 | | | | — | | | | — | | | | 24,336 | |
| | | | | | | | | | | | | |
| TOTAL ASSETS | | $ | 10,606,532 | | | $ | 62,032 | | | $ | (910,527 | ) | | $ | 9,758,037 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | |
| Property tax-exempt bond financing | | $ | 941,555 | | | $ | 127 | | | $ | (25,462 | ) | | $ | 916,220 | |
| Property loans payable | | | 6,040,170 | | | | 53,674 | | | | (866,010 | ) | | | 5,227,834 | |
| Term loans | | | 475,000 | | | | — | | | | — | | | | 475,000 | |
| Credit facility | | | — | | | | — | | | | — | | | | — | |
| Other borrowings | | | 75,057 | | | | — | | | | — | | | | 75,057 | |
| | | | | | | | | | | | | |
| TOTAL INDEBTEDNESS | | | 7,531,782 | | | | 53,801 | | | | (891,472 | ) | | | 6,694,111 | |
| Accounts payable | | | 56,792 | | | | 8,231 | | | | — | | | | 65,023 | |
| Accrued liabilities and other | | | 449,485 | | | | — | | | | — | | | | 449,485 | |
| Deferred income | | | 202,392 | [5] | | | — | | | | — | | | | 202,392 | |
| Security deposits | | | 49,469 | | | | — | | | | — | | | | 49,469 | |
| Liabilities related to assets held for sale | | | 11,867 | | | | — | | | | — | | | | 11,867 | |
| | | | | | | | | | | | | |
| TOTAL LIABILITIES | | | 8,301,787 | | | | 62,032 | | | | (891,472 | ) | | | 7,472,347 | |
| | | | | | | | | | | | | |
| Minority interest in consolidated real estate partnerships | | | 441,778 | | | | — | | | | (19,055 | ) | | | 422,723 | |
| Minority interest in Aimco Operating Partnership | | | 113,263 | | | | — | | | | — | | | | 113,263 | |
| | | | | | | | | | | | | | |
| NET OPERATING ASSETS | | | | | | $ | — | | | $ | — | | | $ | 1,749,704 | |
| | | | | | | | | | | | | | |
| STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | |
| Perpetual preferred stock | | | 723,500 | | | | | | | | | | | | | |
| Class A Common Stock | | | 961 | | | | | | | | | | | | | |
| Additional paid-in capital | | | 3,050,212 | | | | | | | | | | | | | |
| Notes due on common stock purchases | | | (5,441 | ) | | | | | | | | | | | | |
| Distributions in excess of earnings | | | (2,019,528 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| TOTAL STOCKHOLDERS’ EQUITY | | | 1,749,704 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 10,606,532 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | |
| [1] | | Total of Aimco’s proportionate share of selected unconsolidated balance sheet data. |
| |
| [2] | | Total of minority partners’ share of selected balance sheet data. Additionally, Aimco has notes receivable from consolidated partnerships which are eliminated in the GAAP balance sheet. The minority partners’ share of amounts payable to Aimco pursuant to those notes is $73.3 million. |
| |
| [3] | | Aimco’s proportionate consolidated balance sheet, which includes the GAAP balance sheet as of December 31, 2007, plus Aimco’s proportionate share of selected unconsolidated balance sheet data and less minority partners’ share of selected balance sheet data. |
| |
| [4] | | Other assets includes $81.9 million in goodwill and $2.2 million in investments in management contracts. |
| |
| [5] | | Deferred income includes $139.4 million of tax credit equity received that will be recognized in earnings as the related low income housing tax credits and other tax benefits are delivered to the tax credit investors. |
Supplemental Schedule 4
| |
Share Data
As of December 31, 2007
(in thousands) (unaudited) |
Preferred Securities |
| | | | | | | | | | | | | | | | | |
| | | Shares/Units | | | | | | | | | | |
| | | Outstanding | | | | | | | | | | |
| | | as of | | | | | | | | | | |
| | | December 31, | | | Redemption | | | | | | | |
| | | 2007 | | | Date [1] | | | Coupon | | | Amount | |
| Perpetual Preferred Stock [2]: | | | | | | | | | | | | | | | | |
| Class G | | | 4,050 | | | | 7/15/2008 | | | | 9.375 | % | | $ | 101,000 | |
| Class T | | | 6,000 | | | | 7/31/2008 | | | | 8.000 | % | | | 150,000 | |
| Class U | | | 8,000 | | | | 3/24/2009 | | | | 7.750 | % | | | 200,000 | |
| Class V | | | 3,450 | | | | 9/29/2009 | | | | 8.000 | % | | | 86,250 | |
| Class Y | | | 3,450 | | | | 12/21/2009 | | | | 7.875 | % | | | 86,250 | |
| Series A Community Reinvestment Act | | | 0 | [3] | | | 6/30/2011 | | | | 6.380 | % | [4] | | 100,000 | |
| | | | | | | | | | | | | | | | |
| Total perpetual preferred stock | | | | | | | | | | | | | | | 723,500 | |
| | | | | | | | | | | | | | | | | |
| Preferred Partnership Units [5] | | | 3,253 | | | | | | | | 7.988 | % | | | 89,107 | |
| | | | | | | | | | | | | | | | |
| Total outstanding preferred securities | | | | | | | | | | | | | | $ | 812,607 | |
| | | | | | | | | | | | | | | | |
Common Stock and Equivalents
| | | | | | | | | | | | | | | | | | | | | |
| | | Shares/Units | | | | |
| | | Outstanding | | | Weighted Average Shares / Units | |
| | | as of | | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, 2007 | | | December 31, 2007 | |
| | | 2007 | | | Diluted EPS | | | Diluted FFO | | | Diluted EPS | | | Diluted FFO | |
| Class A Common Stock [6] | | | 90,484 | | | | 93,463 | | | | 93,463 | | | | 95,106 | | | | 95,106 | |
| Shares of Class A Common Stock issued January 30, 2008 pursuant to Special Dividend [11] | | | 4,523 | | | | 4,523 | | | | 4,523 | | | | 4,523 | | | | 4,523 | |
| Dilutive securities: | | | — | | | | — | | | | — | | | | — | | | | — | |
| Options, restricted stock and non-recourse shares [7][11] | | | 410 | | | | — | | | | 855 | | | | — | | | | 1,967 | |
| High Performance Units [8] | | | — | | | | — | | | | — | | | | — | | | | 421 | |
| Convertible preferred securities [9][11] | | | — | | | | — | | | | 2,268 | | | | — | | | | 609 | |
| | | | | | | | | | | | | | | | |
| Total shares and dilutive share equivalents | | | 95,417 | | | | 97,986 | | | | 101,109 | | | | 99,629 | | | | 102,626 | |
| | | | | | | | | | | | | | | | |
| Common Partnership Units [10] | | | 9,683 | | | | 9,688 | | | | 9,688 | | | | 9,746 | | | | 9,746 | |
| | | | | | | | | | | | | | | | |
| Common Partnership Units and equivalents | | | 9,683 | | | | 9,688 | | | | 9,688 | | | | 9,746 | | | | 9,746 | |
| | | | | | | | | | | | | | | | |
| Total shares, units and dilutive share equivalents | | | 105,100 | | | | 107,674 | | | | 110,797 | | | | 109,375 | | | | 112,372 | |
| | | | | | | | | | | | | | | | |
Notes:
| | |
| [1] | | The redemption date is the date the securities are first eligible for redemption by Aimco. |
| |
| [2] | | Preferred stock amounts are shown net of any eliminations required by GAAP. |
| |
| [3] | | Represents 200 shares at a liquidation preference per share of $500,000. |
| |
| [4] | | The dividend rate is a variable rate per annum equal to the Three-Month LIBOR Rate plus 1.25%, calculated as of the beginning of each quarterly dividend period. |
| |
| [5] | | Coupon is based on a weighted average. |
| |
| [6] | | Includes a deduction of 1,068,000 for non-recourse shares and unvested restricted stock as of December 31, 2007. |
| |
| [7] | | Stock options, restricted stock and non-recourse shares are presumed to be dilutive as of December 31, 2007 and reflect the options and shares outstanding at the end of the period and the $34.73 share price at the end of the period. Dilution for the three and twelve months ended December 31, 2007 reflects the weighted average amounts during the period. |
| |
| [8] | | Represents the number of equivalent common OP units that would be issued if the applicable measurement period for Class IX HPUs, which ends on December 31, 2008, had ended on December 31, 2007 (if dilutive). For the year ended December 31, 2007, HPUs are included as the average number dilutive during each of the quarterly periods during the year. |
| |
| [9] | | For the year ended December 31, 2007, represents the number of common shares that would be issued upon conversion, if dilutive, considering the reduction in preferred dividends/distributions that would result from conversion. The dilutive effect of convertible preferred securities is less than $0.001 per share for the year ended December 31, 2007. The remaining class of convertible preferred stock was redeemed on September 30, 2007 and thus does not impact the determination of shares/units outstanding as of December 31, 2007 and for the three months ended December 31, 2007. |
| |
| [10] | | Includes Common Partnership Units and Class I High Performance Units. |
| |
| [11] | | Class A Common Stock, options, restricted stock and non-recourse shares and convertible preferred securities amounts for each of the periods presented have been retroactively adjusted for the effect of shares of Common Stock issued on January 30, 2008, pursuant to the special dividend declared by Aimco’s Board of Directors on December 21, 2007. |
Supplemental Schedule 5
Selected Debt Structure and Maturity Data
As of December 31, 2007
(dollars in thousands)
(unaudited)
I. Debt Balances and Data
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Weighted | | | | |
| | | | | | | Proportionate | | | | | | | | | | | Average | | | | |
| | | | | | | Share of | | | Minority | | | Total Aimco | | | Maturity | | | Weighted | |
| Debt | | Consolidated | | | Unconsolidated | | | Interest | | | Share | | | (years) | | | Average Rate | |
Property Debt (primarily non-recourse): | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Conventional Portfolio: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed rate loans payable | | $ | 4,815,118 | | | $ | 6,671 | | | $ | (579,695 | ) | | $ | 4,242,094 | | | | 9.1 | | | | 6.23 | % |
| Floating rate loans payable [1] | | | 558,933 | | | | — | | | | (42,207 | ) | | | 516,726 | | | | 2.6 | | | | 6.18 | % |
| | | | | | | | | | | | | | | | | | | |
Total property loans payable | | | 5,374,051 | | | | 6,671 | | | | (621,902 | ) | | | 4,758,820 | | | | 8.4 | | | | 6.22 | % |
| Fixed rate tax-exempt bonds | | | 168,957 | | | | — | | | | (6,209 | ) | | | 162,748 | | | | 14.5 | | | | 5.83 | % |
| Floating rate tax-exempt bonds [1] | | | 605,590 | | | | — | | | | (5,342 | ) | | | 600,248 | | | | 14.0 | | | | 3.58 | % |
| | | | | | | | | | | | | | | | | | | |
Total property tax-exempt bond financing | | | 774,547 | | | | — | | | | (11,551 | ) | | | 762,996 | | | | 14.1 | | | | 4.06 | % |
| | | | | | | | | | | | | | | | | | | |
Total Conventional portfolio | | | 6,148,598 | | | | 6,671 | | | | (633,453 | ) | | | 5,521,816 | | | | 9.2 | | | | 5.92 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Affordable Portfolio: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed rate loans payable | | | 652,532 | | | | 39,032 | | | | (244,109 | ) | | | 447,455 | | | | 16.9 | | | | 5.59 | % |
| Floating rate loans payable | | | 13,587 | | | | 7,972 | | | | — | | | | 21,559 | | | | 2.9 | | | | 5.25 | % |
| | | | | | | | | | | | | | | | | | | |
Total property loans payable | | | 666,119 | | | | 47,004 | | | | (244,109 | ) | | | 469,014 | | | | 16.2 | | | | 5.57 | % |
| Fixed rate tax-exempt bonds | | | 74,183 | | | | 127 | | | | (11,462 | ) | | | 62,848 | | | | 28.1 | | | | 5.04 | % |
| Floating rate tax-exempt bonds [1] | | | 92,825 | | | | — | | | | (2,449 | ) | | | 90,376 | | | | 27.0 | | | | 4.08 | % |
| | | | | | | | | | | | | | | | | | | |
Total property tax-exempt bond financing | | | 167,008 | | | | 127 | | | | (13,911 | ) | | | 153,224 | | | | 27.4 | | | | 4.48 | % |
| | | | | | | | | | | | | | | | | | | |
Total Affordable portfolio | | | 833,127 | | | | 47,131 | | | | (258,020 | ) | | | 622,238 | | | | 19.0 | | | | 5.30 | % |
| | | | | | | | | | | | | | | | | | | |
Total property debt | | $ | 6,981,725 | | | $ | 53,802 | | | $ | (891,473 | ) | | $ | 6,144,054 | | | | 10.2 | | | | 5.86 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Debt: | | | | | | | | | | | | | | | | | | | | | | | | |
| Term Loans | | $ | 475,000 | | | $ | — | | | $ | — | | | $ | 475,000 | | | | — | | | | 6.38 | % |
| Credit Facility | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total corporate debt | | $ | 475,000 | | | $ | — | | | $ | — | | | $ | 475,000 | | | | — | | | | 6.38 | % |
| | | | | | | | | | | | | | | | | | | |
Other borrowings [2] | | $ | 75,057 | | | $ | — | | | $ | — | | | $ | 75,057 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total debt | | $ | 7,531,782 | | | $ | 53,802 | | | $ | (891,473 | ) | | $ | 6,694,111 | | | | | | | | 5.90 | % |
| | | | | | | | | | | | | | | | | | | |
| | |
| [1] | | Floating rate debt presented above includes $487.2 million of fixed rate debt that is effectively converted to floating rates using total rate of return swaps. |
| |
| [2] | | Other borrowings consists primarily of unsecured notes payable and obligations under sale and leaseback arrangements accounted for as financings. At December 31, 2007, other borrowings includes $66.5 million of fixed rate obligations with interest rates ranging from zero to 10.0% and $8.5 million of variable rate obligations bearing interest at the prime rate plus 1.75%. |
II. Debt Maturities
Consolidated Property Debt:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Percent | | | Average | |
| | | Amortization | | | Maturities | | | Total | | | of Total | | | Rate | |
| Q1 2008 | | $ | 29,609 | | | $ | 40,706 | | | $ | 70,315 | | | | 1.0 | % | | | 6.80 | % |
| Q2 2008 | | | 29,812 | | | | 33,566 | | | | 63,378 | | | | 0.9 | % | | | 5.68 | % |
| Q3 2008 | | | 29,841 | | | | 80,117 | | | | 109,958 | | | | 1.6 | % | | | 5.68 | % |
| Q4 2008 | | | 30,127 | | | | 165,813 | | | | 195,940 | | | | 2.8 | % | | | 6.00 | % |
| Q1 2009 | | | 30,232 | | | | 138,136 | | | | 168,368 | | | | 2.4 | % | | | 5.23 | % |
| Q2 2009 | | | 30,780 | | | | 171,102 | | | | 201,882 | | | | 2.9 | % | | | 5.63 | % |
| Q3 2009 | | | 31,621 | | | | — | | | | 31,621 | | | | 0.4 | % | | | — | |
| Q4 2009 | | | 32,389 | | | | 86,654 | | | | 119,043 | | | | 1.7 | % | | | 4.38 | % |
| 2010 | | | 134,876 | | | | 505,467 | | | | 640,343 | | | | 9.2 | % | | | 6.10 | % |
| 2011 | | | 141,423 | | | | 366,742 | | | | 508,165 | | | | 7.3 | % | | | 5.46 | % |
| 2012 | | | 145,154 | | | | 320,359 | | | | 465,513 | | | | 6.7 | % | | | 6.18 | % |
| Thereafter | | | | | | | | | | | 4,407,199 | | | | 63.1 | % | | | | |
| | | | | | | | | | | | | | | | |
Total property debt | | | | | | | | | | $ | 6,981,725 | | | | 100.0 | % | | | | |
| | | | | | | | | | | | | | | | |
Corporate Debt:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Percent | | | Average | |
| | | Amortization | | | Maturities | | | Total | | | of Total | | | Rate | |
| 2009 [1] | | $ | — | | | $ | 75,000 | | | $ | 75,000 | | | | 15.8 | % | | | 6.48 | % |
| 2011 | | | — | | | | 400,000 | | | | 400,000 | | | | 84.2 | % | | | 6.37 | % |
| | | | | | | | | | | | | | | | |
Total corporate debt | | $ | — | | | $ | 475,000 | | | $ | 475,000 | | | | 100.0 | % | | | 6.38 | % |
| | | | | | | | | | | | | | | | |
| | |
| [1] | | The $75.0 million term loan that matures September 14, 2008 is included in 2009 due to the one-year extension option. |
Supplemental Schedule 5 (continued)
Selected Debt Structure and Maturity Data
As of December 31, 2007
(dollars in millions)
(unaudited)
III. Loan Closings
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FOURTH QUARTER LOAN CLOSINGS [1] | | Original | | | New | | | Aimco | | | Aimco | | | Aimco | | | | | | | |
| | | Loan | | | Loan | | | Share | | | Share | | | Net | | | Prior | | | New | |
| Property Loan Type (all non-recourse) | | Amount [2] | | | Amount | | | Original Loan | | | New Loan | | | Proceeds [3] | | | Rate | | | Rate | |
Refinancings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Rate | | $ | 83.2 | | | $ | 251.1 | | | $ | 76.9 | | | $ | 223.8 | | | $ | 144.7 | | | | 6.69 | % | | | 5.93 | % |
| Floating Rate | | | 35.4 | | | $ | 138.4 | | | | 30.5 | | | | 130.9 | | | | 98.9 | | | | 6.75 | % | | | 6.84 | % |
| Affordable, Mark-to-Market and Other | | | 3.0 | | | | 8.0 | | | | 3.0 | | | | 8.0 | | | | 4.8 | | | | 7.97 | % | | | 5.68 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans Relating to Acquisitions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Rate | | | — | | | | 0.5 | | | | — | | | | 0.5 | | | | 0.5 | | | | — | | | | 6.05 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Totals | | $ | 121.6 | | | $ | 398.0 | | | $ | 110.4 | | | $ | 363.2 | | | $ | 248.9 | | | | 6.74 | % | | | 6.24 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| YEAR-TO-DATE LOAN CLOSINGS [1] | | Original | | | New | | | Aimco | | | Aimco | | | Aimco | | | | | | | |
| | | Loan | | | Loan | | | Share | | | Share | | | Net | | | Prior | | | New | |
| Property Loan Type (all non-recourse) | | Amount [2] | | | Amount | | | Original Loan | | | New Loan | | | Proceeds [3] | | | Rate | | | Rate | |
Refinancings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Rate | | $ | 478.5 | | | $ | 1,181.8 | | | $ | 397.7 | | | $ | 975.3 | | | $ | 568.8 | | | | 6.96 | % | | | 6.06 | % |
| Floating Rate | | | 252.0 | | | | 385.1 | | | | 203.2 | | | | 325.0 | | | | 119.0 | | | | 7.18 | % | | | 6.69 | % |
| Affordable, Mark-to-Market and Other | | | 26.3 | | | | 115.7 | | | | 18.6 | | | | 102.3 | | | | 60.4 | | | | 8.38 | % | | | 4.93 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans Relating to Acquisitions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Rate | | | 16.0 | | | | 134.0 | | | | 16.0 | | | | 134.0 | | | | 116.0 | | | | 5.25 | % | | | 5.77 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Totals | | $ | 772.8 | | | $ | 1,816.6 | | | $ | 635.5 | | | $ | 1,536.6 | | | $ | 864.2 | | | | 7.05 | % | | | 6.10 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| [1] | | Loan activity includes new loans and the refinancing and recasting of existing loans on consolidated and unconsolidated properties. |
| |
| [2] | | Original Loan Amount represents the principal balance outstanding at the time of the refinance. |
| |
| [3] | | Aimco net proceeds is after transaction costs and any release of escrow funds. |
IV. Capitalization
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2007 | | | September 30, 2007 | | | December 31, 2007 | |
| | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | |
| Corporate debt | | $ | 554 | | | | 4.5 | % | | $ | 550 | | | | 4.7 | % | | $ | 475 | | | | 4.4 | % |
| Property debt (Aimco’s share) | | | 5,830 | | | | 47.5 | % | | | 6,068 | | | | 51.5 | % | | | 6,144 | | | | 57.1 | % |
| Other borrowings | | | 60 | | | | 0.5 | % | | | 65 | | | | 0.6 | % | | | 75 | | | | 0.7 | % |
| | | | | | | | | | | | | | | | | | | |
Total debt | | | 6,444 | | | | 52.5 | % | | | 6,683 | | | | 56.8 | % | | | 6,694 | | | | 62.2 | % |
| Less cash and restricted cash (Aimco’s share) | | | (454 | ) | | | -3.7 | % | | | (485 | ) | | | -4.1 | % | | | (425 | ) | | | -3.9 | % |
| | | | | | | | | | | | | | | | | | | |
Net debt | | | 5,990 | | | | 48.8 | % | | | 6,198 | | | | 52.7 | % | | | 6,269 | | | | 58.3 | % |
| Preferred equity | | | 913 | | | | 7.4 | % | | | 813 | | | | 6.9 | % | | | 813 | | | | 7.6 | % |
| Common equity at market [1] | | | 5,366 | | | | 43.8 | % | | | 4,752 | | | | 40.4 | % | | | 3,675 | | | | 34.2 | % |
| | | | | | | | | | | | | | | | | | | |
Total capitalization | | $ | 12,269 | | | | 100.0 | % | | $ | 11,763 | | | | 100.0 | % | | $ | 10,757 | | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | |
| | |
| [1] | | Common equity at market at December 31, 2007, September 30, 2007 and June 30, 2007 was calculated using 105.810 million, 105.285 million, and 106.433 million shares of Class A Common Stock and common partnership units outstanding multiplied by the closing price of $34.73, $45.13 and $50.42 per share/unit as of December 31, 2007, September 28, 2007 and June 29, 2007, respectively. The total number of shares of Class A Common Stock and common partnership units outstanding as of December 31, 2007 has been adjusted for the effect of the shares issued under Aimco’s special dividend paid on January 30, 2008. |
V. Credit Ratings
| | | | | | | | | |
| | | Moody’s Investor Service
Standard and Poor’s
Fitch | | Senior Unsecured Shelf
Corporate Credit Rating
Bank Credit Facility | | (P) Ba1 (stable outlook)
BB+ (stable outlook)
BBB- (stable outlook) | | |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 10 |
Supplemental Schedule 6(a)
Same Store Operating Results
Fourth Quarter 2007 Compared to Fourth Quarter 2006
(unaudited) (in thousands, except site and unit data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Three Months Ended | | | Three Months Ended | | | Change | |
| | | | | | | | | | | | | | | December 31, 2007 | | | December 31, 2006 | | | Revenue | | | Expenses | | | NOI | |
| | | Sites | | | Units | | | Ownership | | | Revenue | | | Expenses | | | NOI | | | Occ % | | | Revenue | | | Expenses | | | NOI | | | Occ % | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | |
California | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Bay Area — Sacramento | | | 6 | | | | 1,395 | | | | 96 | % | | $ | 5,234 | | | $ | 2,085 | | | $ | 3,149 | | | | | | | $ | 4,900 | | | $ | 1,903 | | | $ | 2,997 | | | | | | | $ | 334 | | | | 6.8 | % | | $ | 182 | | | | 9.6 | % | | $ | 152 | | | | 5.1 | % |
| Los Angeles — Long Beach — Ventura | | | 12 | | | | 3,538 | | | | 82 | % | | | 16,090 | | | | 4,947 | | | | 11,143 | | | | | | | | 15,251 | | | | 4,573 | | | | 10,678 | | | | | | | | 839 | | | | 5.5 | % | | | 374 | | | | 8.2 | % | | | 465 | | | | 4.4 | % |
| Orange County — Riverside | | | 6 | | | | 1,017 | | | | 84 | % | | | 2,602 | | | | 987 | | | | 1,615 | | | | | | | | 2,541 | | | | 930 | | | | 1,611 | | | | | | | | 61 | | | | 2.4 | % | | | 57 | | | | 6.1 | % | | | 4 | | | | 0.2 | % |
| San Diego | | | 4 | | | | 1,622 | | | | 96 | % | | | 5,483 | | | | 1,744 | | | | 3,739 | | | | | | | | 5,186 | | | | 1,640 | | | | 3,546 | | | | | | | | 297 | | | | 5.7 | % | | | 104 | | | | 6.3 | % | | | 193 | | | | 5.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 28 | | | | 7,572 | | | | 87.6 | % | | | 29,409 | | | | 9,763 | | | | 19,646 | | | | 95.5 | % | | | 27,878 | | | | 9,046 | | | | 18,832 | | | | 95.9 | % | | | 1,531 | | | | 5.5 | % | | | 717 | | | | 7.9 | % | | | 814 | | | | 4.3 | % |
Florida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jacksonville | | | 2 | | | | 592 | | | | 100 | % | | | 1,290 | | | | 602 | | | | 688 | | | | | | | | 1,330 | | | | 528 | | | | 802 | | | | | | | | (40 | ) | | | -3.0 | % | | | 74 | | | | 14.0 | % | | | (114 | ) | | | -14.2 | % |
| Miami — Fort Lauderdale | | | 10 | | | | 3,226 | | | | 86 | % | | | 10,450 | | | | 4,229 | | | | 6,221 | | | | | | | | 10,366 | | | | 4,045 | | | | 6,321 | | | | | | | | 84 | | | | 0.8 | % | | | 184 | | | | 4.5 | % | | | (100 | ) | | | -1.6 | % |
| Orlando — Daytona | | | 19 | | | | 4,422 | | | | 94 | % | | | 9,734 | | | | 5,442 | | | | 4,292 | | | | | | | | 10,246 | | | | 4,335 | | | | 5,911 | | | | | | | | (512 | ) | | | -5.0 | % | | | 1,107 | | | | 25.5 | % | | | (1,619 | ) | | | -27.4 | % |
| Tampa — St. Petersburg | | | 14 | | | | 3,536 | | | | 86 | % | | | 7,395 | | | | 3,745 | | | | 3,650 | | | | | | | | 7,455 | | | | 3,267 | | | | 4,188 | | | | | | | | (60 | ) | | | -0.8 | % | | | 478 | | | | 14.6 | % | | | (538 | ) | | | -12.8 | % |
| West Palm Beach — Boca | | | 5 | | | | 1,505 | | | | 100 | % | | | 4,159 | | | | 1,930 | | | | 2,229 | | | | | | | | 4,258 | | | | 1,725 | | | | 2,533 | | | | | | | | (99 | ) | | | -2.3 | % | | | 205 | | | | 11.9 | % | | | (304 | ) | | | -12.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 50 | | | | 13,281 | | | | 91.1 | % | | | 33,028 | | | | 15,948 | | | | 17,080 | | | | 91.9 | % | | | 33,655 | | | | 13,900 | | | | 19,755 | | | | 92.6 | % | | | (627 | ) | | | -1.9 | % | | | 2,048 | | | | 14.7 | % | | | (2,675 | ) | | | -13.5 | % |
Midwest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Chicago | | | 15 | | | | 3,849 | | | | 86 | % | | | 11,122 | | | | 4,083 | | | | 7,039 | | | | | | | | 10,523 | | | | 4,330 | | | | 6,193 | | | | | | | | 599 | | | | 5.7 | % | | | (247 | ) | | | -5.7 | % | | | 846 | | | | 13.7 | % |
| Cincinnati — Dayton | | | 5 | | | | 1,441 | | | | 69 | % | | | 2,414 | | | | 937 | | | | 1,477 | | | | | | | | 2,280 | | | | 945 | | | | 1,335 | | | | | | | | 134 | | | | 5.9 | % | | | (8 | ) | | | -0.8 | % | | | 142 | | | | 10.6 | % |
| Columbus | | | 8 | | | | 1,884 | | | | 79 | % | | | 3,044 | | | | 1,382 | | | | 1,662 | | | | | | | | 2,802 | | | | 1,342 | | | | 1,460 | | | | | | | | 242 | | | | 8.6 | % | | | 40 | | | | 3.0 | % | | | 202 | | | | 13.8 | % |
| Detroit — Ann Arbor | | | 4 | | | | 1,665 | | | | 94 | % | | | 3,635 | | | | 1,878 | | | | 1,757 | | | | | | | | 3,493 | | | | 1,737 | | | | 1,756 | | | | | | | | 142 | | | | 4.1 | % | | | 141 | | | | 8.1 | % | | | 1 | | | | 0.1 | % |
| Grand Rapids — Lansing | | | 11 | | | | 4,404 | | | | 77 | % | | | 7,036 | | | | 3,184 | | | | 3,852 | | | | | | | | 6,482 | | | | 3,351 | | | | 3,131 | | | | | | | | 554 | | | | 8.5 | % | | | (167 | ) | | | -5.0 | % | | | 721 | | | | 23.0 | % |
| Indianapolis | | | 24 | | | | 9,781 | | | | 92 | % | | | 16,368 | | | | 7,633 | | | | 8,735 | | | | | | | | 15,771 | | | | 7,300 | | | | 8,471 | | | | | | | | 597 | | | | 3.8 | % | | | 333 | | | | 4.6 | % | | | 264 | | | | 3.1 | % |
| Minneapolis — St. Paul | | | 4 | | | | 1,223 | | | | 84 | % | | | 3,536 | | | | 1,525 | | | | 2,011 | | | | | | | | 3,346 | | | | 1,343 | | | | 2,003 | | | | | | | | 190 | | | | 5.7 | % | | | 182 | | | | 13.6 | % | | | 8 | | | | 0.4 | % |
| Midwest other | | | 2 | | | | 704 | | | | 44 | % | | | 623 | | | | 307 | | | | 316 | | | | | | | | 609 | | | | 295 | | | | 314 | | | | | | | | 14 | | | | 2.3 | % | | | 12 | | | | 4.1 | % | | | 2 | | | | 0.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 73 | | | | 24,951 | | | | 84.6 | % | | | 47,778 | | | | 20,929 | | | | 26,849 | | | | 94.7 | % | | | 45,306 | | | | 20,643 | | | | 24,663 | | | | 94.6 | % | | | 2,472 | | | | 5.5 | % | | | 286 | | | | 1.4 | % | | | 2,186 | | | | 8.9 | % |
Northeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Baltimore | | | 9 | | | | 1,772 | | | | 87 | % | | | 5,157 | | | | 1,855 | | | | 3,302 | | | | | | | | 4,976 | | | | 1,787 | | | | 3,189 | | | | | | | | 181 | | | | 3.6 | % | | | 68 | | | | 3.8 | % | | | 113 | | | | 3.5 | % |
| New England | | | 16 | | | | 5,745 | | | | 100 | % | | | 19,830 | | | | 6,786 | | | | 13,044 | | | | | | | | 19,696 | | | | 6,692 | | | | 13,004 | | | | | | | | 134 | | | | 0.7 | % | | | 94 | | | | 1.4 | % | | | 40 | | | | 0.3 | % |
| Philadelphia — New York | | | 13 | | | | 5,522 | | | | 87 | % | | | 18,599 | | | | 6,718 | | | | 11,881 | | | | | | | | 17,812 | | | | 6,058 | | | | 11,754 | | | | | | | | 787 | | | | 4.4 | % | | | 660 | | | | 10.9 | % | | | 127 | | | | 1.1 | % |
| Washington | | | 17 | | | | 8,890 | | | | 96 | % | | | 29,483 | | | | 10,567 | | | | 18,916 | | | | | | | | 28,008 | | | | 10,093 | | | | 17,915 | | | | | | | | 1,475 | | | | 5.3 | % | | | 474 | | | | 4.7 | % | | | 1,001 | | | | 5.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 55 | | | | 21,929 | | | | 94.1 | % | | | 73,069 | | | | 25,926 | | | | 47,143 | | | | 95.9 | % | | | 70,492 | | | | 24,630 | | | | 45,862 | | | | 95.5 | % | | | 2,577 | | | | 3.7 | % | | | 1,296 | | | | 5.3 | % | | | 1,281 | | | | 2.8 | % |
Southeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Atlanta | | | 9 | | | | 2,513 | | | | 82 | % | | | 5,033 | | | | 2,201 | | | | 2,832 | | | | | | | | 4,752 | | | | 2,570 | | | | 2,182 | | | | | | | | 281 | | | | 5.9 | % | | | (369 | ) | | | -14.4 | % | | | 650 | | | | 29.8 | % |
| Savannah — Augusta | | | 2 | | | | 416 | | | | 100 | % | | | 922 | | | | 410 | | | | 512 | | | | | | | | 971 | | | | 317 | | | | 654 | | | | | | | | (49 | ) | | | -5.0 | % | | | 93 | | | | 29.3 | % | | | (142 | ) | | | -21.7 | % |
| Columbia — Charleston | | | 2 | | | | 440 | | | | 85 | % | | | 844 | | | | 344 | | | | 500 | | | | | | | | 830 | | | | 320 | | | | 510 | | | | | | | | 14 | | | | 1.7 | % | | | 24 | | | | 7.5 | % | | | (10 | ) | | | -2.0 | % |
| Nashville | | | 7 | | | | 2,166 | | | | 81 | % | | | 4,299 | | | | 1,696 | | | | 2,603 | | | | | | | | 4,131 | | | | 1,792 | | | | 2,339 | | | | | | | | 168 | | | | 4.1 | % | | | (96 | ) | | | -5.4 | % | | | 264 | | | | 11.3 | % |
| Norfolk | | | 9 | | | | 2,747 | | | | 84 | % | | | 6,423 | | | | 2,037 | | | | 4,386 | | | | | | | | 6,308 | | | | 2,106 | | | | 4,202 | | | | | | | | 115 | | | | 1.8 | % | | | (69 | ) | | | -3.3 | % | | | 184 | | | | 4.4 | % |
| Raleigh — Durham — Chapel Hill | | | 8 | | | | 2,247 | | | | 77 | % | | | 3,416 | | | | 1,588 | | | | 1,828 | | | | | | | | 3,248 | | | | 1,486 | | | | 1,762 | | | | | | | | 168 | | | | 5.2 | % | | | 102 | | | | 6.9 | % | | | 66 | | | | 3.7 | % |
| Richmond — Petersburg | | | 3 | | | | 744 | | | | 91 | % | | | 1,736 | | | | 562 | | | | 1,174 | | | | | | | | 1,695 | | | | 589 | | | | 1,106 | | | | | | | | 41 | | | | 2.4 | % | | | (27 | ) | | | -4.6 | % | | | 68 | | | | 6.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 40 | | | | 11,273 | | | | 82.8 | % | | | 22,673 | | | | 8,838 | | | | 13,835 | | | | 94.0 | % | | | 21,935 | | | | 9,180 | | | | 12,755 | | | | 93.6 | % | | | 738 | | | | 3.4 | % | | | (342 | ) | | | -3.7 | % | | | 1,080 | | | | 8.5 | % |
Texas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Austin — San Marcos | | | 7 | | | | 1,497 | | | | 100 | % | | | 3,261 | | | | 1,614 | | | | 1,647 | | | | | | | | 3,092 | | | | 1,487 | | | | 1,605 | | | | | | | | 169 | | | | 5.5 | % | | | 127 | | | | 8.5 | % | | | 42 | | | | 2.6 | % |
| Dallas — Fort Worth | | | 16 | | | | 3,710 | | | | 88 | % | | | 6,654 | | | | 3,373 | | | | 3,281 | | | | | | | | 6,382 | | | | 3,068 | | | | 3,314 | | | | | | | | 272 | | | | 4.3 | % | | | 305 | | | | 9.9 | % | | | (33 | ) | | | -1.0 | % |
| Houston — Galveston | | | 30 | | | | 8,008 | | | | 83 | % | | | 13,894 | | | | 7,261 | | | | 6,633 | | | | | | | | 13,093 | | | | 6,552 | | | | 6,541 | | | | | | | | 801 | | | | 6.1 | % | | | 709 | | | | 10.8 | % | | | 92 | | | | 1.4 | % |
| San Antonio | | | 8 | | | | 1,727 | | | | 100 | % | | | 3,145 | | | | 1,696 | | | | 1,449 | | | | | | | | 2,981 | | | | 1,473 | | | | 1,508 | | | | | | | | 164 | | | | 5.5 | % | | | 223 | | | | 15.1 | % | | | (59 | ) | | | -3.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 61 | | | | 14,942 | | | | 88.0 | % | | | 26,954 | | | | 13,944 | | | | 13,010 | | | | 94.9 | % | | | 25,548 | | | | 12,580 | | | | 12,968 | | | | 93.8 | % | | | 1,406 | | | | 5.5 | % | | | 1,364 | | | | 10.8 | % | | | 42 | | | | 0.3 | % |
West | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Colorado Front Range | | | 23 | | | | 5,109 | | | | 84 | % | | | 10,527 | | | | 4,253 | | | | 6,274 | | | | | | | | 9,684 | | | | 3,947 | | | | 5,737 | | | | | | | | 843 | | | | 8.7 | % | | | 306 | | | | 7.8 | % | | | 537 | | | | 9.4 | % |
| Phoenix — Mesa | | | 15 | | | | 3,936 | | | | 94 | % | | | 7,962 | | | | 3,395 | | | | 4,567 | | | | | | | | 7,582 | | | | 3,249 | | | | 4,333 | | | | | | | | 380 | | | | 5.0 | % | | | 146 | | | | 4.5 | % | | | 234 | | | | 5.4 | % |
| Salt Lake City — Ogden | | | 4 | | | | 1,511 | | | | 87 | % | | | 2,810 | | | | 867 | | | | 1,943 | | | | | | | | 2,548 | | | | 970 | | | | 1,578 | | | | | | | | 262 | | | | 10.3 | % | | | (103 | ) | | | -10.6 | % | | | 365 | | | | 23.1 | % |
| Seattle | | | 3 | | | | 364 | | | | 60 | % | | | 653 | | | | 254 | | | | 399 | | | | | | | | 576 | | | | 243 | | | | 333 | | | | | | | | 77 | | | | 13.4 | % | | | 11 | | | | 4.5 | % | | | 66 | | | | 19.8 | % |
| West other | | | 5 | | | | 1,621 | | | | 100 | % | | | 3,235 | | | | 1,403 | | | | 1,832 | | | | | | | | 2,991 | | | | 1,487 | | | | 1,504 | | | | | | | | 244 | | | | 8.2 | % | | | (84 | ) | | | -5.6 | % | | | 328 | | | | 21.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 50 | | | | 12,541 | | | | 88.6 | % | | | 25,187 | | | | 10,172 | | | | 15,015 | | | | 95.6 | % | | | 23,381 | | | | 9,896 | | | | 13,485 | | | | 94.5 | % | | | 1,806 | | | | 7.7 | % | | | 276 | | | | 2.8 | % | | | 1,530 | | | | 11.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SAME STORE TOTALS | | | 357 | | | | 106,489 | [2] | | | 88.3 | % | | $ | 258,098 | | | $ | 105,520 | | | $ | 152,578 | | | | 94.7 | % | | $ | 248,195 | | | $ | 99,875 | | | $ | 148,320 | | | | 94.4 | % | | $ | 9,903 | | | | 4.0 | % | | $ | 5,645 | | | | 5.7 | % | | $ | 4,258 | | | | 2.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reconciliation to total rental and other property revenues and property operating expenses per GAAP income statement [1] | | | | | | | | | | | | | | | 160,974 | | | | 93,533 | | | | 67,441 | | | | | | | | 147,599 | | | | 91,002 | | | | 56,597 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues and property operating expenses per GAAP income statement | | | | | | | | | | | | | | $ | 419,072 | | | $ | 199,053 | | | $ | 220,019 | | | | | | | $ | 395,794 | | | $ | 190,877 | | | $ | 204,917 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| [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) elimination and other adjustments made in accordance with GAAP; and (iv) non-recurring adjustments that would distort results if not adjusted. |
| |
| [2] | | Same Store Effective Units were approximately 94,047 at December 31, 2007. |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 11 |
Supplemental Schedule 6(b)
Same Store Operating Results
Fourth Quarter 2007 Compared to Third Quarter 2007
(unaudited) (in thousands, except site and unit data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Three Months Ended | | | Three Months Ended | | | Change | |
| | | | | | | | | | | | | | | December 31, 2007 | | | September 30, 2007 | | | Revenue | | | Expenses | | | NOI | |
| | | Sites | | | Units | | | Ownership | | | Revenue | | | Expenses | | | NOI | | | Occ % | | | Revenue | | | Expenses | | | NOI | | | Occ % | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | |
California | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Bay Area — Sacramento | | | 6 | | | | 1,395 | | | | 96 | % | | $ | 5,234 | | | $ | 2,085 | | | $ | 3,149 | | | | | | | | 5,065 | | | | 1,900 | | | | 3,165 | | | | | | | $ | 169 | | | | 3.3 | % | | $ | 185 | | | | 9.7 | % | | $ | (16 | ) | | | -0.5 | % |
| Los Angeles — Long Beach - Ventura | | | 12 | | | | 3,538 | | | | 82 | % | | | 16,090 | | | | 4,947 | | | | 11,143 | | | | | | | | 15,958 | | | | 4,868 | | | | 11,090 | | | | | | | | 132 | | | | 0.8 | % | | | 79 | | | | 1.6 | % | | | 53 | | | | 0.5 | % |
| Orange County — Riverside | | | 6 | | | | 1,017 | | | | 84 | % | | | 2,602 | | | | 987 | | | | 1,615 | | | | | | | | 2,582 | | | | 987 | | | | 1,595 | | | | | | | | 20 | | | | 0.8 | % | | | — | | | | 0.0 | % | | | 20 | | | | 1.3 | % |
| San Diego | | | 4 | | | | 1,622 | | | | 96 | % | | | 5,483 | | | | 1,744 | | | | 3,739 | | | | | | | | 5,447 | | | | 1,653 | | | | 3,794 | | | | | | | | 36 | | | | 0.7 | % | | | 91 | | | | 5.5 | % | | | (55 | ) | | | -1.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 28 | | | | 7,572 | | | | 87.6 | % | | | 29,409 | | | | 9,763 | | | | 19,646 | | | | 95.5 | % | | | 29,052 | | | | 9,408 | | | | 19,644 | | | | 95.2 | % | | | 357 | | | | 1.2 | % | | | 355 | | | | 3.8 | % | | | 2 | | | | 0.0 | % |
Florida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jacksonville | | | 2 | | | | 592 | | | | 100 | % | | | 1,290 | | | | 602 | | | | 688 | | | | | | | | 1,293 | | | | 495 | | | | 798 | | | | | | | | (3 | ) | | | -0.2 | % | | | 107 | | | | 21.6 | % | | | (110 | ) | | | -13.8 | % |
| Miami — Fort Lauderdale | | | 10 | | | | 3,226 | | | | 86 | % | | | 10,450 | | | | 4,229 | | | | 6,221 | | | | | | | | 10,439 | | | | 3,886 | | | | 6,553 | | | | | | | | 11 | | | | 0.1 | % | | | 343 | | | | 8.8 | % | | | (332 | ) | | | -5.1 | % |
| Orlando — Daytona | | | 19 | | | | 4,422 | | | | 94 | % | | | 9,734 | | | | 5,442 | | | | 4,292 | | | | | | | | 9,843 | | | | 4,503 | | | | 5,340 | | | | | | | | (109 | ) | | | -1.1 | % | | | 939 | | | | 20.9 | % | | | (1,048 | ) | | | -19.6 | % |
| Tampa — St. Petersburg | | | 14 | | | | 3,536 | | | | 86 | % | | | 7,395 | | | | 3,745 | | | | 3,650 | | | | | | | | 7,472 | | | | 3,558 | | | | 3,914 | | | | | | | | (77 | ) | | | -1.0 | % | | | 187 | | | | 5.3 | % | | | (264 | ) | | | -6.7 | % |
| West Palm Beach — Boca | | | 5 | | | | 1,505 | | | | 100 | % | | | 4,159 | | | | 1,930 | | | | 2,229 | | | | | | | | 4,098 | | | | 1,772 | | | | 2,326 | | | | | | | | 61 | | | | 1.5 | % | | | 158 | | | | 8.9 | % | | | (97 | ) | | | -4.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 50 | | | | 13,281 | | | | 91.1 | % | | | 33,028 | | | | 15,948 | | | | 17,080 | | | | 91.9 | % | | | 33,145 | | | | 14,214 | | | | 18,931 | | | | 91.7 | % | | | (117 | ) | | | -0.4 | % | | | 1,734 | | | | 12.2 | % | | | (1,851 | ) | | | -9.8 | % |
Midwest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Chicago | | | 15 | | | | 3,849 | | | | 86 | % | | | 11,122 | | | | 4,083 | | | | 7,039 | | | | | | | | 10,751 | | | | 4,724 | | | | 6,027 | | | | | | | | 371 | | | | 3.5 | % | | | (641 | ) | | | -13.6 | % | | | 1,012 | | | | 16.8 | % |
| Cincinnati — Dayton | | | 5 | | | | 1,441 | | | | 69 | % | | | 2,414 | | | | 937 | | | | 1,477 | | | | | | | | 2,381 | | | | 1,052 | | | | 1,329 | | | | | | | | 33 | | | | 1.4 | % | | | (115 | ) | | | -10.9 | % | | | 148 | | | | 11.1 | % |
| Columbus | | | 8 | | | | 1,884 | | | | 79 | % | | | 3,044 | | | | 1,382 | | | | 1,662 | | | | | | | | 2,982 | | | | 1,526 | | | | 1,456 | | | | | | | | 62 | | | | 2.1 | % | | | (144 | ) | | | -9.4 | % | | | 206 | | | | 14.1 | % |
| Detroit — Ann Arbor | | | 4 | | | | 1,665 | | | | 94 | % | | | 3,635 | | | | 1,878 | | | | 1,757 | | | | | | | | 3,581 | | | | 1,791 | | | | 1,790 | | | | | | | | 54 | | | | 1.5 | % | | | 87 | | | | 4.9 | % | | | (33 | ) | | | -1.8 | % |
| Grand Rapids — Lansing | | | 11 | | | | 4,404 | | | | 77 | % | | | 7,036 | | | | 3,184 | | | | 3,852 | | | | | | | | 6,680 | | | | 3,431 | | | | 3,249 | | | | | | | | 356 | | | | 5.3 | % | | | (247 | ) | | | -7.2 | % | | | 603 | | | | 18.6 | % |
| Indianapolis | | | 24 | | | | 9,781 | | | | 92 | % | | | 16,368 | | | | 7,633 | | | | 8,735 | | | | | | | | 16,402 | | | | 8,315 | | | | 8,087 | | | | | | | | (34 | ) | | | -0.2 | % | | | (682 | ) | | | -8.2 | % | | | 648 | | | | 8.0 | % |
| Minneapolis — St. Paul | | | 4 | | | | 1,223 | | | | 84 | % | | | 3,536 | | | | 1,525 | | | | 2,011 | | | | | | | | 3,573 | | | | 1,581 | | | | 1,992 | | | | | | | | (37 | ) | | | -1.0 | % | | | (56 | ) | | | -3.5 | % | | | 19 | | | | 1.0 | % |
| Midwest other | | | 2 | | | | 704 | | | | 44 | % | | | 623 | | | | 307 | | | | 316 | | | | | | | | 617 | | | | 280 | | | | 337 | | | | | | | | 6 | | | | 1.0 | % | | | 27 | | | | 9.6 | % | | | (21 | ) | | | -6.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | �� | | | | | | | | | | | |
| | | | 73 | | | | 24,951 | | | | 84.6 | % | | | 47,778 | | | | 20,929 | | | | 26,849 | | | | 94.7 | % | | | 46,967 | | | | 22,700 | | | | 24,267 | | | | 94.5 | % | | | 811 | | | | 1.7 | % | | | (1,771 | ) | | | -7.8 | % | | | 2,582 | | | | 10.6 | % |
Northeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Baltimore | | | 9 | | | | 1,772 | | | | 87 | % | | | 5,157 | | | | 1,855 | | | | 3,302 | | | | | | | | 5,159 | | | | 1,861 | | | | 3,298 | | | | | | | | (2 | ) | | | 0.0 | % | | | (6 | ) | | | -0.3 | % | | | 4 | | | | 0.1 | % |
| New England | | | 16 | | | | 5,745 | | | | 100 | % | | | 19,830 | | | | 6,786 | | | | 13,044 | | | | | | | | 20,146 | | | | 6,931 | | | | 13,215 | | | | | | | | (316 | ) | | | -1.6 | % | | | (145 | ) | | | -2.1 | % | | | (171 | ) | | | -1.3 | % |
| Philadelphia — New York | | | 13 | | | | 5,522 | | | | 87 | % | | | 18,599 | | | | 6,718 | | | | 11,881 | | | | | | | | 18,313 | | | | 6,711 | | | | 11,602 | | | | | | | | 286 | | | | 1.6 | % | | | 7 | | | | 0.1 | % | | | 279 | | | | 2.4 | % |
| Washington | | | 17 | | | | 8,890 | | | | 96 | % | | | 29,483 | | | | 10,567 | | | | 18,916 | | | | | | | | 28,835 | | | | 11,039 | | | | 17,796 | | | | | | | | 648 | | | | 2.2 | % | | | (472 | ) | | | -4.3 | % | | | 1,120 | | | | 6.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 55 | | | | 21,929 | | | | 94.1 | % | | | 73,069 | | | | 25,926 | | | | 47,143 | | | | 95.9 | % | | | 72,453 | | | | 26,542 | | | | 45,911 | | | | 96.0 | % | | | 616 | | | | 0.9 | % | | | (616 | ) | | | -2.3 | % | | | 1,232 | | | | 2.7 | % |
Southeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Atlanta | | | 9 | | | | 2,513 | | | | 82 | % | | | 5,033 | | | | 2,201 | | | | 2,832 | | | | | | | | 4,997 | | | | 2,387 | | | | 2,610 | | | | | | | | 36 | | | | 0.7 | % | | | (186 | ) | | | -7.8 | % | | | 222 | | | | 8.5 | % |
| Savannah — Augusta | | | 2 | | | | 416 | | | | 100 | % | | | 922 | | | | 410 | | | | 512 | | | | | | | | 952 | | | | 390 | | | | 562 | | | | | | | | (30 | ) | | | -3.2 | % | | | 20 | | | | 5.1 | % | | | (50 | ) | | | -8.9 | % |
| Columbia — Charleston | | | 2 | | | | 440 | | | | 85 | % | | | 844 | | | | 344 | | | | 500 | | | | | | | | 840 | | | | 344 | | | | 496 | | | | | | | | 4 | | | | 0.5 | % | | | — | | | | 0.0 | % | | | 4 | | | | 0.8 | % |
| Nashville | | | 7 | | | | 2,166 | | | | 81 | % | | | 4,299 | | | | 1,696 | | | | 2,603 | | | | | | | | 4,242 | | | | 1,876 | | | | 2,366 | | | | | | | | 57 | | | | 1.3 | % | | | (180 | ) | | | -9.6 | % | | | 237 | | | | 10.0 | % |
| Norfolk | | | 9 | | | | 2,747 | | | | 84 | % | | | 6,423 | | | | 2,037 | | | | 4,386 | | | | | | | | 6,601 | | | | 2,218 | | | | 4,383 | | | | | | | | (178 | ) | | | -2.7 | % | | | (181 | ) | | | -8.2 | % | | | 3 | | | | 0.1 | % |
| Raleigh — Durham — Chapel Hill | | | 8 | | | | 2,247 | | | | 77 | % | | | 3,416 | | | | 1,588 | | | | 1,828 | | | | | | | | 3,435 | | | | 1,657 | | | | 1,778 | | | | | | | | (19 | ) | | | -0.6 | % | | | (69 | ) | | | -4.2 | % | | | 50 | | | | 2.8 | % |
| Richmond — Petersburg | | | 3 | | | | 744 | | | | 91 | % | | | 1,736 | | | | 562 | | | | 1,174 | | | | | | | | 1,698 | | | | 662 | | | | 1,036 | | | | | | | | 38 | | | | 2.2 | % | | | (100 | ) | | | -15.1 | % | | | 138 | | | | 13.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 40 | | | | 11,273 | | | | 82.8 | % | | | 22,673 | | | | 8,838 | | | | 13,835 | | | | 94.0 | % | | | 22,765 | | | | 9,534 | | | | 13,231 | | | | 95.7 | % | | | (92 | ) | | | -0.4 | % | | | (696 | ) | | | -7.3 | % | | | 604 | | | | 4.6 | % |
Texas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Austin — San Marcos | | | 7 | | | | 1,497 | | | | 100 | % | | | 3,261 | | | | 1,614 | | | | 1,647 | | | | | | | | 3,424 | | | | 1,572 | | | | 1,852 | | | | | | | | (163 | ) | | | -4.8 | % | | | 42 | | | | 2.7 | % | | | (205 | ) | | | -11.1 | % |
| Dallas — Fort Worth | | | 16 | | | | 3,710 | | | | 88 | % | | | 6,654 | | | | 3,373 | | | | 3,281 | | | | | | | | 6,517 | | | | 3,294 | | | | 3,223 | | | | | | | | 137 | | | | 2.1 | % | | | 79 | | | | 2.4 | % | | | 58 | | | | 1.8 | % |
| Houston — Galveston | | | 30 | | | | 8,008 | | | | 83 | % | | | 13,894 | | | | 7,261 | | | | 6,633 | | | | | | | | 13,447 | | | | 7,171 | | | | 6,276 | | | | | | | | 447 | | | | 3.3 | % | | | 90 | | | | 1.3 | % | | | 357 | | | | 5.7 | % |
| San Antonio | | | 8 | | | | 1,727 | | | | 100 | % | | | 3,145 | | | | 1,696 | | | | 1,449 | | | | | | | | 2,961 | | | | 1,759 | | | | 1,202 | | | | | | | | 184 | | | | 6.2 | % | | | (63 | ) | | | -3.6 | % | | | 247 | | | | 20.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 61 | | | | 14,942 | | | | 88.0 | % | | | 26,954 | | | | 13,944 | | | | 13,010 | | | | 94.9 | % | | | 26,349 | | | | 13,796 | | | | 12,553 | | | | 95.4 | % | | | 605 | | | | 2.3 | % | | | 148 | | | | 1.1 | % | | | 457 | | | | 3.6 | % |
West | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Colorado Front Range | | | 23 | | | | 5,109 | | | | 84 | % | | | 10,527 | | | | 4,253 | | | | 6,274 | | | | | | | | 10,244 | | | | 4,292 | | | | 5,952 | | | | | | | | 283 | | | | 2.8 | % | | | (39 | ) | | | -0.9 | % | | | 322 | | | | 5.4 | % |
| Phoenix — Mesa | | | 15 | | | | 3,936 | | | | 94 | % | | | 7,962 | | | | 3,395 | | | | 4,567 | | | | | | | | 7,794 | | | | 3,733 | | | | 4,061 | | | | | | | | 168 | | | | 2.2 | % | | | (338 | ) | | | -9.1 | % | | | 506 | | | | 12.5 | % |
| Salt Lake City — Ogden | | | 4 | | | | 1,511 | | | | 87 | % | | | 2,810 | | | | 867 | | | | 1,943 | | | | | | | | 2,721 | | | | 1,060 | | | | 1,661 | | | | | | | | 89 | | | | 3.3 | % | | | (193 | ) | | | -18.2 | % | | | 282 | | | | 17.0 | % |
| Seattle | | | 3 | | | | 364 | | | | 60 | % | | | 653 | | | | 254 | | | | 399 | | | | | | | | 629 | | | | 233 | | | | 396 | | | | | | | | 24 | | | | 3.8 | % | | | 21 | | | | 9.0 | % | | | 3 | | | | 0.8 | % |
| West other | | | 5 | | | | 1,621 | | | | 100 | % | | | 3,235 | | | | 1,403 | | | | 1,832 | | | | | | | | 3,088 | | | | 1,610 | | | | 1,478 | | | | | | | | 147 | | | | 4.8 | % | | | (207 | ) | | | -12.9 | % | | | 354 | | | | 24.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 50 | | | | 12,541 | | | | 88.6 | % | | | 25,187 | | | | 10,172 | | | | 15,015 | | | | 95.6 | % | | | 24,476 | | | | 10,928 | | | | 13,548 | | | | 95.1 | % | | | 711 | | | | 2.9 | % | | | (756 | ) | | | -6.9 | % | | | 1,467 | | | | 10.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SAME STORE TOTALS | | | 357 | | | | 106,489 | [2] | | | 88.3 | % | | $ | 258,098 | | | $ | 105,520 | | | $ | 152,578 | | | | 94.7 | % | | $ | 255,207 | | | $ | 107,122 | | | $ | 148,085 | | | | 94.8 | % | | $ | 2,891 | | | | 1.1 | % | | $ | (1,602 | ) | | | -1.5 | % | | $ | 4,493 | | | | 3.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reconciliation to total rental and other property revenues and property operating expenses per GAAP income statement [1] | | | | | | | | | | | | | | | 160,974 | | | | 93,533 | | | | 67,441 | | | | | | | | 159,134 | | | | 80,940 | | | | 78,194 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues and property operating expenses per GAAP income statement | | | | | | | | | | | | | | $ | 419,072 | | | $ | 199,053 | | | $ | 220,019 | | | | | | | $ | 414,341 | | | $ | 188,062 | | | $ | 226,279 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| [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) elimination and other adjustments made in accordance with GAAP; and (iv) non-recurring adjustments that would distort results if not adjusted. |
| |
| [2] | | Same Store Effective Units were approximately 94,047 at December 31, 2007. |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 12 |
Supplemental Schedule 6(c)
Same Store Operating Results
Year Ended December 31, 2007 Compared to Year Ended December 31, 2006
(unaudited) (in thousands, except site and unit data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Year Ended | | | Year Ended | | | Change | |
| | | | | | | | | | | | | | | December 31, 2007 | | | December 31, 2006 | | | Revenue | | | Expenses | | | NOI | |
| | | Sites | | | Units | | | Ownership | | | Revenue | | | Expenses | | | NOI | | | Occ % | | | Revenue | | | Expenses | | | NOI | | | Occ % | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | |
California | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Bay Area — Sacramento | | | 5 | | | | 1,291 | | | | 95 | % | | $ | 18,306 | | | $ | 6,825 | | | $ | 11,481 | | | | | | | $ | 17,170 | | | $ | 6,561 | | | $ | 10,609 | | | | | | | $ | 1,136 | | | | 6.6 | % | | $ | 264 | | | | 4.0 | % | | $ | 872 | | | | 8.2 | % |
| Los Angeles — Long Beach - Ventura | | | 11 | | | | 2,927 | | | | 88 | % | | | 51,495 | | | | 15,485 | | | | 36,010 | | | | | | | | 48,492 | | | | 14,785 | | | | 33,707 | | | | | | | | 3,003 | | | | 6.2 | % | | | 700 | | | | 4.7 | % | | | 2,303 | | | | 6.8 | % |
| Orange County — Riverside | | | 6 | | | | 1,017 | | | | 84 | % | | | 10,299 | | | | 3,841 | | | | 6,458 | | | | | | | | 9,812 | | | | 3,591 | | | | 6,221 | | | | | | | | 487 | | | | 5.0 | % | | | 250 | | | | 7.0 | % | | | 237 | | | | 3.8 | % |
| San Diego | | | 4 | | | | 1,622 | | | | 96 | % | | | 21,385 | | | | 6,689 | | | | 14,696 | | | | | | | | 20,632 | | | | 6,500 | | | | 14,132 | | | | | | | | 753 | | | | 3.6 | % | | | 189 | | | | 2.9 | % | | | 564 | | | | 4.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 26 | | | | 6,857 | | | | 90.6 | % | | | 101,485 | | | | 32,840 | | | | 68,645 | | | | 95.5 | % | | | 96,106 | | | | 31,437 | | | | 64,669 | | | | 96.1 | % | | | 5,379 | | | | 5.6 | % | | | 1,403 | | | | 4.5 | % | | | 3,976 | | | | 6.1 | % |
Florida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jacksonville | | | 2 | | | | 592 | | | | 100 | % | | | 5,128 | | | | 2,166 | | | | 2,962 | | | | | | | | 5,295 | | | | 2,053 | | | | 3,242 | | | | | | | | (167 | ) | | | -3.2 | % | | | 113 | | | | 5.5 | % | | | (280 | ) | | | -8.6 | % |
| Miami — Fort Lauderdale | | | 10 | | | | 3,226 | | | | 86 | % | | | 41,958 | | | | 16,426 | | | | 25,532 | | | | | | | | 41,376 | | | | 16,451 | | | | 24,925 | | | | | | | | 582 | | | | 1.4 | % | | | (25 | ) | | | -0.2 | % | | | 607 | | | | 2.4 | % |
| Orlando — Daytona | | | 19 | | | | 4,422 | | | | 94 | % | | | 39,656 | | | | 18,647 | | | | 21,009 | | | | | | | | 40,608 | | | | 16,432 | | | | 24,176 | | | | | | | | (952 | ) | | | -2.3 | % | | | 2,215 | | | | 13.5 | % | | | (3,167 | ) | | | -13.1 | % |
| Tampa — St. Petersburg | | | 13 | | | | 3,212 | | | | 85 | % | | | 26,089 | | | | 12,252 | | | | 13,837 | | | | | | | | 25,932 | | | | 10,793 | | | | 15,139 | | | | | | | | 157 | | | | 0.6 | % | | | 1,459 | | | | 13.5 | % | | | (1,302 | ) | | | -8.6 | % |
| West Palm Beach — Boca | | | 5 | | | | 1,505 | | | | 100 | % | | | 16,936 | | | | 7,183 | | | | 9,753 | | | | | | | | 17,123 | | | | 6,791 | | | | 10,332 | | | | | | | | (187 | ) | | | -1.1 | % | | | 392 | | | | 5.8 | % | | | (579 | ) | | | -5.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 49 | | | | 12,957 | | | | 90.7 | % | | | 129,767 | | | | 56,674 | | | | 73,093 | | | | 92.0 | % | | | 130,334 | | | | 52,520 | | | | 77,814 | | | | 95.3 | % | | | (567 | ) | | | -0.4 | % | | | 4,154 | | | | 7.9 | % | | | (4,721 | ) | | | -6.1 | % |
Midwest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Chicago | | | 15 | | | | 3,849 | | | | 86 | % | | | 43,126 | | | | 17,904 | | | | 25,222 | | | | | | | | 40,845 | | | | 17,889 | | | | 22,956 | | | | | | | | 2,281 | | | | 5.6 | % | | | 15 | | | | 0.1 | % | | | 2,266 | | | | 9.9 | % |
| Cincinnati — Dayton | | | 5 | | | | 1,441 | | | | 69 | % | | | 9,336 | | | | 3,883 | | | | 5,453 | | | | | | | | 8,869 | | | | 4,007 | | | | 4,862 | | | | | | | | 467 | | | | 5.3 | % | | | (124 | ) | | | -3.1 | % | | | 591 | | | | 12.2 | % |
| Columbus | | | 7 | | | | 1,820 | | | | 79 | % | | | 11,355 | | | | 5,257 | | | | 6,098 | | | | | | | | 10,682 | | | | 5,651 | | | | 5,031 | | | | | | | | 673 | | | | 6.3 | % | | | (394 | ) | | | -7.0 | % | | | 1,067 | | | | 21.2 | % |
| Detroit — Ann Arbor | | | 3 | | | | 1,421 | | | | 100 | % | | | 12,453 | | | | 6,559 | | | | 5,894 | | | | | | | | 11,659 | | | | 6,178 | | | | 5,481 | | | | | | | | 794 | | | | 6.8 | % | | | 381 | | | | 6.2 | % | | | 413 | | | | 7.5 | % |
| Grand Rapids — Lansing | | | 11 | | | | 4,404 | | | | 77 | % | | | 27,022 | | | | 13,255 | | | | 13,767 | | | | | | | | 25,273 | | | | 13,266 | | | | 12,007 | | | | | | | | 1,749 | | | | 6.9 | % | | | (11 | ) | | | -0.1 | % | | | 1,760 | | | | 14.7 | % |
| Indianapolis | | | 24 | | | | 9,781 | | | | 92 | % | | | 64,699 | | | | 31,376 | | | | 33,323 | | | | | | | | 62,485 | | | | 30,182 | | | | 32,303 | | | | | | | | 2,214 | | | | 3.5 | % | | | 1,194 | | | | 4.0 | % | | | 1,020 | | | | 3.2 | % |
| Minneapolis — St. Paul | | | 4 | | | | 1,223 | | | | 84 | % | | | 14,064 | | | | 6,147 | | | | 7,917 | | | | | | | | 13,267 | | | | 5,928 | | | | 7,339 | | | | | | | | 797 | | | | 6.0 | % | | | 219 | | | | 3.7 | % | | | 578 | | | | 7.9 | % |
| Midwest other | | | 2 | | | | 704 | | | | 44 | % | | | 2,502 | | | | 1,142 | | | | 1,360 | | | | | | | | 2,478 | | | | 1,132 | | | | 1,346 | | | | | | | | 24 | | | | 1.0 | % | | | 10 | | | | 0.9 | % | | | 14 | | | | 1.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 71 | | | | 24,643 | | | | 84.8 | % | | | 184,557 | | | | 85,523 | | | | 99,034 | | | | 94.4 | % | | | 175,558 | | | | 84,233 | | | | 91,325 | | | | 93.8 | % | | | 8,999 | | | | 5.1 | % | | | 1,290 | | | | 1.5 | % | | | 7,709 | | | | 8.4 | % |
Northeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Baltimore | | | 9 | | | | 1,772 | | | | 87 | % | | | 20,629 | | | | 7,390 | | | | 13,239 | | | | | | | | 19,306 | | | | 7,273 | | | | 12,033 | | | | | | | | 1,323 | | | | 6.9 | % | | | 117 | | | | 1.6 | % | | | 1,206 | | | | 10.0 | % |
| New England | | | 16 | | | | 5,745 | | | | 100 | % | | | 79,892 | | | | 28,727 | | | | 51,165 | | | | | | | | 78,133 | | | | 27,876 | | | | 50,257 | | | | | | | | 1,759 | | | | 2.3 | % | | | 851 | | | | 3.1 | % | | | 908 | | | | 1.8 | % |
| Philadelphia — New York | | | 13 | | | | 5,522 | | | | 87 | % | | | 73,332 | | | | 26,818 | | | | 46,514 | | | | | | | | 69,511 | | | | 25,236 | | | | 44,275 | | | | | | | | 3,821 | | | | 5.5 | % | | | 1,582 | | | | 6.3 | % | | | 2,239 | | | | 5.1 | % |
| Washington | | | 17 | | | | 8,890 | | | | 96 | % | | | 115,070 | | | | 43,473 | | | | 71,597 | | | | | | | | 110,346 | | | | 41,145 | | | | 69,201 | | | | | | | | 4,724 | | | | 4.3 | % | | | 2,328 | | | | 5.7 | % | | | 2,396 | | | | 3.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 55 | | | | 21,929 | | | | 94.1 | % | | | 288,923 | | | | 106,408 | | | | 182,515 | | | | 95.8 | % | | | 277,296 | | | | 101,530 | | | | 175,766 | | | | 95.5 | % | | | 11,627 | | | | 4.2 | % | | | 4,878 | | | | 4.8 | % | | | 6,749 | | | | 3.8 | % |
Southeast | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Atlanta | | | 6 | | | | 1,804 | | | | 88 | % | | | 14,642 | | | | 6,598 | | | | 8,044 | | | | | | | | 13,228 | | | | 6,691 | | | | 6,537 | | | | | | | | 1,414 | | | | 10.7 | % | | | (93 | ) | | | -1.4 | % | | | 1,507 | | | | 23.1 | % |
| Savannah — Augusta | | | 2 | | | | 416 | | | | 100 | % | | | 3,699 | | | | 1,515 | | | | 2,184 | | | | | | | | 3,777 | | | | 1,305 | | | | 2,472 | | | | | | | | (78 | ) | | | -2.1 | % | | | 210 | | | | 16.1 | % | | | (288 | ) | | | -11.7 | % |
| Columbia — Charleston | | | 2 | | | | 440 | | | | 85 | % | | | 3,286 | | | | 1,316 | | | | 1,970 | | | | | | | | 3,248 | | | | 1,320 | | | | 1,928 | | | | | | | | 38 | | | | 1.2 | % | | | (4 | ) | | | -0.3 | % | | | 42 | | | | 2.2 | % |
| Nashville | | | 7 | | | | 2,166 | | | | 81 | % | | | 16,815 | | | | 7,082 | | | | 9,733 | | | | | | | | 15,985 | | | | 6,977 | | | | 9,008 | | | | | | | | 830 | | | | 5.2 | % | | | 105 | | | | 1.5 | % | | | 725 | | | | 8.0 | % |
| Norfolk | | | 9 | | | | 2,747 | | | | 84 | % | | | 25,845 | | | | 8,693 | | | | 17,152 | | | | | | | | 25,283 | | | | 8,356 | | | | 16,927 | | | | | | | | 562 | | | | 2.2 | % | | | 337 | | | | 4.0 | % | | | 225 | | | | 1.3 | % |
| Raleigh — Durham — Chapel Hill | | | 8 | | | | 2,247 | | | | 77 | % | | | 13,568 | | | | 6,433 | | | | 7,135 | | | | | | | | 12,383 | | | | 6,308 | | | | 6,075 | | | | | | | | 1,185 | | | | 9.6 | % | | | 125 | | | | 2.0 | % | | | 1,060 | | | | 17.4 | % |
| Richmond — Petersburg | | | 3 | | | | 744 | | | | 91 | % | | | 6,846 | | | | 2,442 | | | | 4,404 | | | | | | | | 6,255 | | | | 2,254 | | | | 4,001 | | | | | | | | 591 | | | | 9.4 | % | | | 188 | | | | 8.3 | % | | | 403 | | | | 10.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 37 | | | | 10,564 | | | | 83.7 | % | | | 84,701 | | | | 34,079 | | | | 50,622 | | | | 94.7 | % | | | 80,159 | | | | 33,211 | | | | 46,948 | | | | 93.0 | % | | | 4,542 | | | | 5.7 | % | | | 868 | | | | 2.6 | % | | | 3,674 | | | | 7.8 | % |
Texas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Austin — San Marcos | | | 7 | | | | 1,497 | | | | 100 | % | | | 12,961 | | | | 6,367 | | | | 6,594 | | | | | | | | 11,879 | | | | 6,059 | | | | 5,820 | | | | | | | | 1,082 | | | | 9.1 | % | | | 308 | | | | 5.1 | % | | | 774 | | | | 13.3 | % |
| Dallas — Fort Worth | | | 16 | | | | 3,710 | | | | 88 | % | | | 26,127 | | | | 13,091 | | | | 13,036 | | | | | | | | 24,871 | | | | 12,698 | | | | 12,173 | | | | | | | | 1,256 | | | | 5.1 | % | | | 393 | | | | 3.1 | % | | | 863 | | | | 7.1 | % |
| Houston — Galveston | | | 30 | | | | 8,008 | | | | 83 | % | | | 53,656 | | | | 27,870 | | | | 25,786 | | | | | | | | 50,388 | | | | 26,575 | | | | 23,813 | | | | | | | | 3,268 | | | | 6.5 | % | | | 1,295 | | | | 4.9 | % | | | 1,973 | | | | 8.3 | % |
| San Antonio | | | 8 | | | | 1,727 | | | | 100 | % | | | 12,118 | | | | 6,507 | | | | 5,611 | | | | | | | | 11,763 | | | | 5,907 | | | | 5,856 | | | | | | | | 355 | | | | 3.0 | % | | | 600 | | | | 10.2 | % | | | (245 | ) | | | -4.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 61 | | | | 14,942 | | | | 87.9 | % | | | 104,862 | | | | 53,835 | | | | 51,027 | | | | 94.9 | % | | | 98,901 | | | | 51,239 | | | | 47,662 | | | | 93.7 | % | | | 5,961 | | | | 6.0 | % | | | 2,596 | | | | 5.1 | % | | | 3,365 | | | | 7.1 | % |
West | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Colorado Front Range | | | 23 | | | | 5,109 | | | | 84 | % | | | 40,727 | | | | 16,690 | | | | 24,037 | | | | | | | | 38,075 | | | | 16,125 | | | | 21,950 | | | | | | | | 2,652 | | | | 7.0 | % | | | 565 | | | | 3.5 | % | | | 2,087 | | | | 9.5 | % |
| Phoenix — Mesa | | | 14 | | | | 3,612 | | | | 93 | % | | | 27,444 | | | | 12,471 | | | | 14,973 | | | | | | | | 26,300 | | | | 12,015 | | | | 14,285 | | | | | | | | 1,144 | | | | 4.3 | % | | | 456 | | | | 3.8 | % | | | 688 | | | | 4.8 | % |
| Salt Lake City — Ogden | | | 4 | | | | 1,511 | | | | 87 | % | | | 10,714 | | | | 3,838 | | | | 6,876 | | | | | | | | 9,887 | | | | 3,808 | | | | 6,079 | | | | | | | | 827 | | | | 8.4 | % | | | 30 | | | | 0.8 | % | | | 797 | | | | 13.1 | % |
| Seattle | | | 3 | | | | 364 | | | | 60 | % | | | 2,473 | | | | 972 | | | | 1,501 | | | | | | | | 2,209 | | | | 994 | | | | 1,215 | | | | | | | | 264 | | | | 12.0 | % | | | (22 | ) | | | -2.2 | % | | | 286 | | | | 23.5 | % |
| West other | | | 5 | | | | 1,621 | | | | 100 | % | | | 12,410 | | | | 5,845 | | | | 6,565 | | | | | | | | 11,890 | | | | 5,629 | | | | 6,261 | | | | | | | | 520 | | | | 4.4 | % | | | 216 | | | | 3.8 | % | | | 304 | | | | 4.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 49 | | | | 12,217 | | | | 88.4 | % | | | 93,768 | | | | 39,816 | | | | 53,952 | | | | 95.0 | % | | | 88,361 | | | | 38,571 | | | | 49,790 | | | | 94.8 | % | | | 5,407 | | | | 6.1 | % | | | 1,245 | | | | 3.2 | % | | | 4,162 | | | | 8.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SAME STORE TOTALS | | | 348 | | | | 104,109 | | | | 88.7 | % | | $ | 988,063 | | | $ | 409,175 | | | $ | 578,888 | | | | 94.7 | % | | $ | 946,715 | | | $ | 392,741 | | | $ | 553,974 | | | | 94.5 | % | | $ | 41,348 | | | | 4.4 | % | | $ | 16,434 | | | | 4.2 | % | | $ | 24,914 | | | | 4.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reconciliation to total rental and other property revenues and property operating expenses per GAAP income statement [1] | | | | | | | | | | | | | | | 652,443 | | | | 359,282 | | | | 293,161 | | | | | | | | 593,785 | | | | 316,953 | | | | 276,832 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total rental and other property revenues and property operating expenses per GAAP income statement | | | | | | | | | | | | | | $ | 1,640,506 | | | $ | 768,457 | | | $ | 872,049 | | | | | | | $ | 1,540,500 | | | $ | 709,694 | | | $ | 830,806 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| [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) elimination and other adjustments made in accordance with GAAP; and (iv) non-recurring adjustments that would distort results if not adjusted. |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 13 |
Supplemental Schedule 7
Selected Conventional Portfolio Performance Data
(unaudited)
SAME STORE PORTFOLIO PERFORMANCE
| | | | | | | | | | | | | |
| | | CORE | | | NON-CORE | | | TOTAL | |
| Rent, average fourth quarter 2007 | | $ | 1,043 | | | $ | 658 | | | $ | 886 | |
| Occupancy, average fourth quarter 2007 | | | 94.8 | % | | | 94.6 | % | | | 94.7 | % |
| Operating margin | | | 62.1 | % | | | 52.1 | % | | | 59.1 | % |
| Total number of properties | | | 211 | | | | 146 | | | | 357 | |
| Total number of units | | | 63,198 | | | | 43,291 | | | | 106,489 | |
| Effective Units | | | 57,037 | | | | 37,010 | | | | 94,047 | |
| Percent of total Same Store NOI | | | 73.9 | % | | | 26.1 | % | | | 100.0 | % |
| | | | | | | | | | | | | |
| 4th Quarter 2007 vs. 4th Quarter 2006 Change | | | | | | | | | | | | |
| Revenue | | | 3.4 | % | | | 5.3 | % | | | 4.0 | % |
| Expenses | | | 5.3 | % | | | 6.2 | % | | | 5.7 | % |
| NOI | | | 2.3 | % | | | 4.5 | % | | | 2.9 | % |
| | | | | | | | | | | | | |
| Sequential, 4th Quarter 2007 vs. 3rd Quarter 2007 Change | | | | | | | | | | | | |
| Revenue | | | 0.9 | % | | | 1.6 | % | | | 1.1 | % |
| Expenses | | | -0.6 | % | | | -3.2 | % | | | -1.5 | % |
| NOI | | | 1.9 | % | | | 6.5 | % | | | 3.0 | % |
| | | | | | | | | | | | | |
| Full year 2007 vs. 2006 Change | | | | | | | | | | | | |
| Revenue | | | 4.0 | % | | | 5.3 | % | | | 4.4 | % |
| Expenses | | | 4.5 | % | | | 3.6 | % | | | 4.2 | % |
| NOI | | | 3.6 | % | | | 7.0 | % | | | 4.5 | % |
TOTAL CONVENTIONAL PORTFOLIO — SUMMARY BY MARKET
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Quarter Ended December 31, 2007 | | | Quarter Ended December 31, 2006 | |
| Percent of Total Conventional NOI | | CORE | | | NON-CORE | | | TOTAL | | | CORE | | | NON-CORE | | | TOTAL | |
Top 20 Markets | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 Washington | | | 10.7 | % | | | 0.0 | % | | | 10.7 | % | | | 10.2 | % | | | 0.0 | % | | | 10.2 | % |
| 2 Los Angeles-Long Beach-Ventura [1] | | | 9.1 | % | | | 0.0 | % | | | 9.1 | % | | | 8.9 | % | | | 0.0 | % | | | 8.9 | % |
| 3 New England | | | 6.7 | % | | | 0.0 | % | | | 6.7 | % | | | 7.1 | % | | | 0.0 | % | | | 7.1 | % |
| 4 Philadelphia | | | 6.2 | % | | | 0.0 | % | | | 6.2 | % | | | 6.5 | % | | | 0.0 | % | | | 6.5 | % |
| 5 Miami/Fort Lauderdale | | | 6.0 | % | | | 0.0 | % | | | 6.0 | % | | | 5.9 | % | | | 0.0 | % | | | 5.9 | % |
| 6 Chicago | | | 5.3 | % | | | 0.6 | % | | | 5.9 | % | | | 4.8 | % | | | 0.5 | % | | | 5.3 | % |
| 7 Indianapolis/Fort Wayne | | | 0.0 | % | | | 4.5 | % | | | 4.5 | % | | | 0.0 | % | | | 4.7 | % | | | 4.7 | % |
| 8 New York | | | 4.1 | % | | | 0.0 | % | | | 4.1 | % | | | 3.1 | % | | | 0.0 | % | | | 3.1 | % |
| 9 Houston-Galveston | | | 0.0 | % | | | 3.6 | % | | | 3.6 | % | | | 0.0 | % | | | 4.0 | % | | | 4.0 | % |
| 10 Colorado Front Range | | | 3.1 | % | | | 0.2 | % | | | 3.3 | % | | | 3.0 | % | | | 0.2 | % | | | 3.2 | % |
| 11 Phoenix-Mesa | | | 2.8 | % | | | 0.1 | % | | | 2.9 | % | | | 2.9 | % | | | 0.2 | % | | | 3.1 | % |
| 12 Tampa-St. Petersburg | | | 2.1 | % | | | 0.8 | % | | | 2.9 | % | | | 2.2 | % | | | 0.8 | % | | | 3.0 | % |
| 13 Norfolk | | | 2.8 | % | | | 0.0 | % | | | 2.8 | % | | | 2.8 | % | | | 0.0 | % | | | 2.8 | % |
| 14 Orlando-Daytona | | | 2.5 | % | | | 0.2 | % | | | 2.7 | % | | | 3.6 | % | | | 0.3 | % | | | 3.9 | % |
| 15 San Diego | | | 2.6 | % | | | 0.0 | % | | | 2.6 | % | | | 2.4 | % | | | 0.0 | % | | | 2.4 | % |
| 16 Grand Rapids-Lansing | | | 0.0 | % | | | 2.2 | % | | | 2.2 | % | | | 0.0 | % | | | 1.8 | % | | | 1.8 | % |
| 17 Orange County-Riverside | | | 2.0 | % | | | 0.0 | % | | | 2.0 | % | | | 2.4 | % | | | 0.0 | % | | | 2.4 | % |
| 18 Bay Area | | | 1.8 | % | | | 0.0 | % | | | 1.8 | % | | | 0.8 | % | | | 0.0 | % | | | 0.8 | % |
| 19 Atlanta | | | 1.8 | % | | | 0.0 | % | | | 1.8 | % | | | 1.6 | % | | | 0.0 | % | | | 1.6 | % |
| 20 Dallas-Ft Worth | | | 0.0 | % | | | 1.7 | % | | | 1.7 | % | | | 0.0 | % | | | 1.9 | % | | | 1.9 | % |
| | | | | | | | | | | | | | | | | | | |
| Subtotal Top 20 markets | | | 69.6 | % | | | 13.9 | % | | | 83.5 | % | | | 68.2 | % | | | 14.4 | % | | | 82.6 | % |
| All other markets (22 in 2007 and 38 in 2006) | | | 8.0 | % | | | 8.5 | % | | | 16.5 | % | | | 7.6 | % | | | 9.8 | % | | | 17.4 | % |
| | | | | | | | | | | | | | | | | | | |
Total Conventional NOI | | | 77.6 | % | | | 22.4 | % | | | 100.0 | % | | | 75.8 | % | | | 24.2 | % | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Rent, average fourth quarter | | $ | 1,085 | | | $ | 660 | | | $ | 931 | | | $ | 1,037 | | | $ | 637 | | | $ | 874 | |
| Occupancy, average fourth quarter | | | 93.2 | % | | | 94.3 | % | | | 93.6 | % | | | 93.4 | % | | | 94.0 | % | | | 93.7 | % |
| Total number of properties | | | 284 | | | | 155 | | | | 439 | | | | 270 | | | | 199 | | | | 469 | |
| Total number of units | | | 82,165 | | | | 45,367 | | | | 127,532 | | | | 81,044 | | | | 54,245 | | | | 135,289 | |
| Effective Units | | | 74,226 | | | | 38,332 | | | | 112,558 | | | | 71,689 | | | | 43,058 | | | | 114,747 | |
| Average home value [2] | | $ | 344,422 | | | $ | 176,148 | | | $ | 285,144 | | | | | | | | | | | | | |
| REIS growth rate (4 year weighted average) [3] | | | 3.3 | % | | | 3.0 | % | | | 3.3 | % | | | | | | | | | | | | |
| Number of markets | | | 27 | | | | 15 | | | | 42 | | | | | | | | | | | | | |
| | |
| [1] | | NOI is calculated with the Palazzo properties at 100% ownership for the periods presented. As a result of the sale of a 47% interest in these properties on December 21, 2007, the NOI contribution from the Los Angeles-Long Beach-Ventura market will decrease in the first quarter of 2008. |
| |
| [2] | | ESRI — 2006 demographic data |
| |
| [3] | | Source: REIS, based on Q4 2007 forecasted data |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 14 |
Supplemental Schedule 8
Property Sales and Acquisition Activity
(unaudited)
FOURTH QUARTER 2007 PROPERTY SALES ACTIVITY (dollars in millions, except average rent) [4]
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Number | | | Number | | | | | | | | | | | | | | | | | | | Aimco | | | Aimco | | | | |
| | | of | | | of | | | Gross | | | FCF[1] | | | Property | | | Net Sales[2] | | | Gross | | | Net | | | Average | |
| | | Properties | | | Units | | | Proceeds | | | Yield | | | Debt | | | Proceeds | | | Proceeds | | | Proceeds | | | Rent | |
| Conventional | | | 8 | | | | 1,675 | | | $ | 75.2 | | | | 5.6 | % | | $ | 27.0 | | | $ | 43.9 | | | $ | 43.7 | | | $ | 24.1 | | | $ | 612 | |
| Affordable | | | 10 | | | | 689 | | | | 26.3 | | | | 5.2 | % | | | 21.4 | | | | 4.3 | | | | 23.1 | | | | 3.6 | | | $ | 635 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Dispositions | | | 18 | | | | 2,364 | | | $ | 101.5 | | | | 5.5 | % | | $ | 48.4 | | | $ | 48.2 | | | $ | 66.8 | | | $ | 27.7 | | | $ | 619 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YEAR-TO-DATE 2007 PROPERTY SALES ACTIVITY (dollars in millions, except average rent) [4]
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Number | | | Number | | | | | | | | | | | | | | | | | | | Aimco | | | Aimco | | | | |
| | | of | | | of | | | Gross | | | FCF[1] | | | Property | | | Net Sales[2] | | | Gross | | | Net | | | Average | |
| | | Properties | | | Units | | | Proceeds | | | Yield | | | Debt | | | Proceeds | | | Proceeds | | | Proceeds | | | Rent | |
| Conventional | | | 46 | | | | 9,068 | | | | 398.2 | | | | 5.5 | % | | $ | 177.4 | | | $ | 181.4 | | | $ | 222.1 | | | $ | 125.5 | | | $ | 604 | |
| Affordable [3] | | | 30 | | | | 2,825 | | | | 89.0 | | | | 4.9 | % | | | 59.5 | | | | 25.1 | | | | 52.7 | | | | 15.4 | | | | 575 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Dispositions | | | 76 | | | | 11,893 | | | $ | 487.2 | | | | 5.4 | % | | $ | 236.9 | | | $ | 206.5 | | | $ | 274.8 | | | $ | 140.9 | | | $ | 597 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| [1] | | Free Cash Flow (FCF) includes a $500 per unit deduction for capital replacements and is before debt service. FCF Yield is calculated as the FCF earned by the properties during the 12 months prior to their sale divided by the sales price. |
| |
| [2] | | Net Sales Proceeds are after repayment of existing debt, net working capital settlements and payment of transaction costs. |
| |
| [3] | | Year-to-date property sales include three unconsolidated properties with 303 units. |
| |
| [4] | | During December 2007, Aimco sold an approximate 47% interest in a partnership owning three previously wholly-owned properties, including The Palazzo at Park La Brea, The Palazzo East at Park La Brea and The Villas at Park La Brea, to the Palazzo JV for approximately $202.0 million. In accordance with GAAP, Aimco did not recognize a gain on this transaction and will continue to consolidate the properties, which are excluded from the property sales activity above. |
FOURTH QUARTER 2007 PROPERTY ACQUISITION ACTIVITY (dollars in millions, except average rent)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Number | | | Number | | | Gross | | | | | | | |
| | | Ownership | | | of | | | of | | | Purchase | | | Property | | | Average | |
| | | Percent | | | Properties | | | Units | | | Price | | | Debt | | | Rent | |
| Conventional | | | 100 | % | | | 1 | | | | 9 | | | $ | 1.3 | | | $ | 0.5 | | | $ | 1,304 | |
| | | | | | | | | | | | | | | | | | | |
YEAR-TO-DATE 2007 PROPERTY ACQUISITION ACTIVITY (dollars in millions, except average rent) [1]
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Number | | | Number | | | Gross | | | | | | | |
| | | Ownership | | | of | | | of | | | Purchase | | | Property | | | Average | |
| | | Percent | | | Properties | | | Units | | | Price | | | Debt | | | Rent | |
| Conventional [2] | | | 100 | % | | | 16 | | | | 1,314 | | | $ | 208.0 | | | $ | 62.7 | | | $ | 1,123 | |
| | | | | | | | | | | | | | | | | | | |
| | |
| [1] | | In addition to the 16 properties acquired from third parties during the year ended December 31, 2007, Aimco acquired seven properties from VMS National Properties Joint Venture, a consolidated real estate partnership in which Aimco held a 22% interest prior to the transaction. The portion of the Venture’s real estate not owned by Aimco prior to the transaction was acquired in exchange for consideration totaling $179.4 million. |
| |
| [2] | | Properties acquired are located in New York, NY; Park Forest, IL; Daytona Beach, FL; Poughkeepsie, NY; Redwood City, CA; and North San Diego, CA. |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 15 |
Supplemental Schedule 9
Capital Expenditures
Year Ended December 31, 2007
(in thousands, except per unit data)
(unaudited)
All capital spending is classified as either Capital Replacements (“CR”), Capital Improvements (“CI”), casualties, redevelopment or entitlement. Non-redevelopment and non-casualty capitalizable expenditures are apportioned between CR and CI based on the useful life of the capital item under consideration and the period Aimco has owned the property (i.e., the portion that was consumed during Aimco’s ownership of the item represents CR; the portion of the item that was consumed prior to Aimco’s ownership represents CI). See the Glossary for further descriptions.
The table below details Aimco’s share of actual spending, on both consolidated and unconsolidated real estate partnerships, for Capital Replacements, Capital Improvements, casualties, redevelopment and entitlement for the year ended December 31, 2007. Per unit numbers are based on approximately 132,862 average units, including 115,046 conventional and 17,817 affordable units. Average units are weighted for the period and represent Effective Units excluding non-managed units. [1]
| | | | | | | | | |
| | | Aimco's Share of | | | Per Effective | |
| | | Expenditures | | | Unit | |
Capital Replacements Detail: | | | | | | | | |
| Building and grounds | | $ | 43,579 | | | $ | 328 | |
| Turnover related | | | 45,635 | | | | 343 | |
| Capitalized site payroll and indirect costs | | | 13,398 | | | | 101 | |
| | | | | | | |
Total Aimco’s share of Capital Replacements | | $ | 102,612 | | | $ | 772 | |
| | | | | | | |
| | | | | | | | | |
Capital Replacements: | | | | | | | | |
| Conventional | | $ | 95,329 | | | $ | 829 | |
| Affordable | | | 7,283 | | | $ | 409 | |
| | | | | | | | |
Total Aimco’s share of Capital Replacements | | | 102,612 | | | $ | 772 | |
| | | | | | | | |
| | | | | | | | | |
Capital Improvements: | | | | | | | | |
| Conventional | | | 113,977 | | | $ | 991 | |
| Affordable | | | 9,684 | | | $ | 544 | |
| | | | | | | | |
Total Aimco’s share of Capital Improvements | | | 123,661 | | | $ | 931 | |
| | | | | | | | |
| | | | | | | | | |
Casualties: | | | | | | | | |
| Conventional | | | 11,404 | | | | | |
| Affordable | | | 1,313 | | | | | |
| | | | | | | | |
Total Aimco’s share of Casualties [2] | | | 12,717 | | | | | |
| | | | | | | | |
| | | | | | | | | |
Redevelopment (see Schedule 10): | | | | | | | | |
| Active Conventional projects | | | 283,637 | | | | | |
| Active Tax Credit projects | | | 49,725 | | | | | |
| Pre-construction and other activities [3] | | | 19,455 | | | | | |
| | | | | | | | |
Total Aimco’s share of Redevelopment | | | 352,817 | | | | | |
| | | | | | | | |
| | | | | | | | | |
Entitlement [4] | | | 26,304 | | | | | |
| | | | | | | | |
Total Aimco’s share of capital expenditures | | | 618,111 | | | | | |
| | | | | | | | |
| Plus minority partners’ share of consolidated spending | | | 72,358 | | | | | |
| Less Aimco’s share of unconsolidated spending | | | (750 | ) | | | | |
| | | | | | | | |
Capital expenditures per consolidated statement of cash flows | | $ | 689,719 | | | | | |
| | | | | | | | |
| | |
| [1] | | Average units calculated pro rata for the period based on acquisition and disposition timing. |
| |
| [2] | | A portion of expenditures related to casualty losses is reimbursed through insurance. |
| |
| [3] | | Includes consulting, legal, and capitalized labor costs, some physical construction work, and trailing expenditures on projects that were substantially completed in prior periods. |
| |
| [4] | | Entitlement projects consist of Lincoln Place (CA), Pacific Bay Vistas (formerly Treetops) (CA) and Springhill Lake (MD). Lincoln Place and Pacific Bay Vistas are predominantly vacant and have December 31, 2007 net book values of approximately $189 million and $30 million, respectively. |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 16 |
Supplemental Schedule 10
Summary of Redevelopment Activity
Year Ended December 31, 2007
(dollars in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Actual Expenditures | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Year Ended | |
| | | | | | | | | | | Total | | | | | | December 31, 2007 | |
| | | Number of | | | Number of | | | Estimated | | | Inception to | | | Actual | | | Aimco’s | |
| | | Properties | | | Units | | | Expenditures | | | Date | | | Amount | | | Share | |
CONVENTIONAL REDEVELOPMENT PROJECTS | | | | | �� | | | | | | | | | | | | | | | | | | | |
| Active redevelopment projects at December 31, 2006 | | | 45 | | | | 18,628 | | | $ | 517.3 | | | $ | 408.5 | | | $ | 210.8 | | | $ | 183.9 | |
| New redevelopment projects started during period | | | 19 | | | | 6,890 | | | | 306.5 | | | | 108.4 | | | | 108.4 | | | | 99.7 | |
| Changes in project scope and estimated costs | | | | | | | | | | | 50.6 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Redevelopment projects during period | | | 64 | | | | 25,518 | | | | 874.4 | | | | 516.9 | | | | 319.2 | | | | 283.6 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Projects completed during period | | | (16 | ) | | | (6,077 | ) | | | (118.1 | ) | | | (118.1 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Active redevelopment projects at December 31, 2007 [1] | | | 48 | | | | 19,441 | | | | 756.3 | | | | 398.8 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
TAX CREDIT REDEVELOPMENT PROJECTS | | | | | | | | | | | | | | | | | | | | | | | | |
| Active redevelopment projects at December 31, 2006 | | | 5 | | | | 706 | | | | 26.6 | | | | 17.7 | | | | 18.2 | | | | 15.8 | |
| New redevelopment projects started during period | | | 7 | | | | 1,160 | | | | 87.4 | | | | 34.0 | | | | 34.0 | | | | 34.0 | |
| Changes in project scope and estimated costs | | | | | | | | | | | 2.6 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Redevelopment projects during period | | | 12 | | | | 1,866 | | | | 116.6 | | | | 51.7 | | | | 52.2 | | | | 49.8 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Projects completed during period | | | (1 | ) | | | (151 | ) | | | (3.6 | ) | | | (3.6 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Active redevelopment projects at December 31, 2007 | | | 11 | | | | 1,715 | | | | 113.0 | | | | 48.1 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL ACTIVE REDEVELOPMENT PROJECTS | | | 59 | | | | 21,156 | | | $ | 869.3 | | | $ | 446.9 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
YEAR-TO-DATE REDEVELOPMENT EXPENDITURES | | | | | | | | | | | | | | | | | | $ | 371.4 | | | $ | 333.4 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| [1] | | Targeted return on investment in conventional redevelopment projects is 7.5% — 8.5%. |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 17 |
Supplemental Schedule 11
Aimco Capital
(in thousands, unaudited)
Asset Management and Transaction Income
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| Activity fees and asset management revenues: | | | | | | | | | | | | | | | | |
| Current asset management [1] | | $ | 852 | | | $ | (611 | ) | | $ | 2,651 | | | $ | 1,985 | |
| Deferred asset management [2] | | | 8,912 | | | | 30 | | | | 11,924 | | | | 4,001 | |
| Promotes | | | 6,603 | | | | 3,462 | | | | 16,549 | | | | 6,945 | |
| Other GP transactional fees | | | 1,549 | | | | 1,970 | | | | 4,842 | | | | 7,271 | |
| | | | | | | | | | | | | |
| Total asset management revenues | | | 17,916 | | | | 4,851 | | | | 35,966 | | | | 20,202 | |
| Tax credit syndication fees [3] | | | 9,286 | | | | 9,181 | | | | 13,892 | | | | 12,696 | |
| Deferred tax credit income [4] | | | 6,999 | | | | 2,550 | | | | 23,897 | | | | 15,995 | |
| | | | | | | | | | | | | |
| Total tax credit revenues | | | 16,285 | | | | 11,731 | | | | 37,789 | | | | 28,691 | |
| | | | | | | | | | | | | |
| Total activity fees and asset management revenues | | | 34,201 | | | | 16,582 | | | | 73,755 | | | | 48,893 | |
| | | | | | | | | | | | | | | | | |
| Accretion on discounted notes receivable [5] | | | 2,053 | | | | 5,057 | | | | 6,490 | | | | 6,720 | |
| Flamingo option termination fees | | | — | | | | — | | | | 6,000 | | | | — | |
| Land gains | | | 987 | | | | 2,266 | | | | 987 | | | | 11,525 | |
| Other income [6] | | | 1,571 | | | | 1,188 | | | | 5,745 | | | | 3,355 | |
| | | | | | | | | | | | | |
| Total asset management and transaction revenue | | | 38,812 | | | | 25,093 | | | | 92,977 | | | | 70,493 | |
| Activity and asset management expenses | | | (5,345 | ) | | | (5,819 | ) | | | (23,102 | ) | | | (17,342 | ) |
| | | | | | | | | | | | | |
| Net asset management and transaction income (pre-tax) | | | 33,467 | | | | 19,274 | | | | 69,875 | | | | 53,151 | |
| Income taxes [7] | | | (4,720 | ) | | | (5,939 | ) | | | (11,032 | ) | | | (12,380 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net asset management and transaction income (after tax) | | $ | 28,747 | | | $ | 13,335 | | | $ | 58,843 | | | $ | 40,771 | |
| | | | | | | | | | | | | |
Summary of Projected Tax Credit Income as of December 31, 2007
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ending December 31, | | | | | | | |
| | | 2008 | | | 2009 | | | 2010 | | | 2011 | | | 2012 | | | Thereafter | | | Total | |
| Amortization of deferred income [8] | | $ | 25,932 | | | $ | 25,690 | | | $ | 24,953 | | | $ | 24,373 | | | $ | 24,121 | | | $ | 93,265 | | | $ | 218,334 | |
| Income taxes [9] | | | (10,113 | ) | | | (10,019 | ) | | | (9,732 | ) | | | (9,505 | ) | | | (9,407 | ) | | | (36,373 | ) | | | (85,149 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| Projected income, net of tax | | $ | 15,819 | | | $ | 15,671 | | | $ | 15,221 | | | $ | 14,868 | | | $ | 14,714 | | | $ | 56,892 | | | $ | 133,185 | |
| | | | | | | | | | | | | | | | | | | | | | |
Notes
| | |
| [1] | | Current asset management fees represent income earned in exchange for asset management services provided to third parties. |
| |
| [2] | | Deferred asset management fees represent asset management fees earned in prior periods, the collectibility of which was deemed uncertain, and such fees were therefore deferred. Fees are recognized in income when collectibility is probable and reasonably estimable as a result of a completed or pending transaction which generates a reliable source of payment. |
| |
| [3] | | Aimco receives a fee for the syndication of tax credit partnerships which is earned and paid upon completion of the syndication. |
| |
| [4] | | Aimco earns tax credit income in connection with the transfer of tax credits to tax credit investors, a significant portion of which is paid simultaneously with the completion of the syndication. The balance is generally paid within 12 to 24 months. See Summary of Projected Tax Credit Income. |
| |
| [5] | | Aimco holds certain loans extended by predecessors whose positions we generally acquired at a discount. Interest income on these discounted notes is recognized at such time when the collectibility of the income is probable and reasonably estimable as a result of a completed or pending transaction which generates a reliable source of repayment. |
| |
| [6] | | Other income consists primarily of consideration received in exchange for the transfer of certain property rights. |
| |
| [7] | | Asset management and transaction income is earned in part by Aimco’s taxable REIT subsidiaries. The effective tax rate varies
from period to period based on the portion of total income earned by taxable REIT subsidiaries. |
| |
| [8] | | Amortization of deferred income represents the periodic recognition of deferred revenue and costs relating to Aimco’s existing tax credit arrangements. Deferred income is recognized as the related low income housing tax credits and other tax benefits are delivered to tax credit investors. Deferred revenue reflects cash received but not yet recognized as revenue, and cash expected to be received from investors in the future under conditional capital contribution commitments. The amounts to be received in the future are subject to adjustment based on the amounts of tax benefits actually delivered to investors and Aimco’s compliance with applicable regulations and other conditions. Deferred costs reflect costs incurred in structuring these arrangements. The timing of income recognition is subject to change based on the timing of delivery of tax benefits, which timing may be affected by factors related to the development, operations and financing of the related properties. |
| |
| [9] | | An effective income tax rate of 39% is assumed. For GAAP and FFO purposes, income taxes are recognized concurrent with the amortization of deferred income. |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 18 |
Supplemental Schedule 12
Apartment Unit Summary
As of December 31, 2007
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | Number of | | | Number of | | | Effective | | | Average | |
| | | Properties | | | Units | | | Units | | | Ownership | |
Conventional Real Estate Portfolio: | | | | | | | | | | | | | | | | |
| Wholly-owned consolidated properties | | | 288 | | | | 80,719 | | | | 80,719 | | | | 100 | % |
| Partially-owned consolidated properties | | | 149 | | | | 46,081 | | | | 31,575 | | | | 69 | % |
| Partially-owned unconsolidated properties | | | 2 | | | | 732 | | | | 264 | | | | 36 | % |
| | | | | | | | | | | | | |
| Total | | | 439 | | | | 127,532 | | | | 112,558 | | | | 88 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Affordable Real Estate Portfolio: | | | | | | | | | | | | | | | | |
| Wholly-owned consolidated properties | | | 84 | | | | 11,671 | | | | 11,671 | | | | 100 | % |
| Partially-owned consolidated properties | | | 136 | | | | 15,287 | | | | 5,253 | | | | 34 | % |
| Partially-owned unconsolidated properties | | | 92 | | | | 10,146 | | | | 1,923 | | | | 19 | % |
| | | | | | | | | | | | | |
| Total | | | 312 | | | | 37,104 | | | | 18,847 | | | | 51 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total Owned Real Estate Portfolio: | | | | | | | | | | | | | | | | |
| Wholly-owned consolidated properties | | | 372 | | | | 92,390 | | | | 92,390 | | | | 100 | % |
| Partially-owned consolidated properties | | | 285 | | | | 61,368 | | | | 36,828 | | | | 60 | % |
| Partially-owned unconsolidated properties | | | 94 | | | | 10,878 | | | | 2,187 | | | | 20 | % |
| | | | | | | | | | | | | |
| Total | | | 751 | | | | 164,636 | | | | 131,405 | | | | 80 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Management Contracts: | | | | | | | | | | | | | | | | |
| Property-managed for third parties | | | 36 | | | | 3,228 | | | | | | | | | |
| Asset-managed | | | 382 | | | | 35,176 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total | | | 418 | | | | 38,404 | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total Portfolio | | | 1,169 | | | | 203,040 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | |
| | | |
| AIMCO 4th Quarter 2007 | | 19 |
Special Supplement to Fourth Quarter 2007 Earnings Release (continued)
2007 Special Dividend
As announced on December 21, 2007, the Aimco Board of Directors declared a special dividend of $2.51 per share of Class A Common Stock, paid on January 30, 2008, to stockholders of record on December 31, 2007. The special dividend was paid in a combination of approximately $55.0 million of cash and 4.6 million additional shares of Class A Common Stock based on stockholder elections, subject to certain limitations. The dividend is taxable to the stockholders in 2007 without regard to whether a particular stockholder received the dividend in the form of cash or shares. The special dividend allowed Aimco to satisfy its REIT distribution requirement while preserving cash for other corporate purposes, including share repurchases.
A portion of the special dividend in the amount of $0.60 per share represents an accelerated payment of the dividend for the quarter ended December 31, 2007, and a portion represents an additional dividend in the amount of $1.91 based on taxable gains arising from property dispositions during 2007. Summarized results of the special dividend payment are as follows:
| • | | The market value per share of Class A Common Stock for purposes of the special dividend, $38.71, was based on the average closing price per share of our Class A Common Stock on the New York Stock Exchange on January 23 and 24, 2008. |
| |
| • | | To stockholders electing to receive the special dividend in all stock, Aimco paid the dividend in shares. |
| |
| • | | To stockholders electing to receive the special dividend in all cash, Aimco paid the dividend in the form of $0.80811289 per share in cash and $1.70188711 per share in stock. |
| |
| • | | To stockholders failing to make an election, Aimco paid the special dividend in the form of $0.6024 per share in cash and $1.9076 per share in stock. |
| |
| • | | To stockholders making a mixed election, Aimco paid the special dividend in a combination of cash and stock subject to stockholder election and the cash limitation described in the prospectus filed with the Securities and Exchange Commission on January 2, 2008. |
| |
| • | | Aimco paid fractional shares in the form of cash. |
Generally Accepted Accounting Principles require that all reported per share data, for current and prior periods, be adjusted to reflect the issuance of the shares described above. The following table provides Aimco’s reported fourth quarter and full year 2007 and 2006 results and the same results excluding the effect of the additional shares:
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Financial Results | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Earnings (loss) — EPS, excluding special dividend | | $ | (0.28 | ) | | $ | 0.69 | | | $ | (0.38 | ) | | $ | 1.00 | |
| Earnings (loss) — EPS, including special dividend | | $ | (0.27 | ) | | $ | 0.66 | | | $ | (0.36 | ) | | $ | 0.95 | |
| | | | | | | | | | | | | | | | | |
| Funds from operations — FFO, excluding special dividend | | $ | 0.86 | | | $ | 0.88 | | | $ | 3.32 | | | $ | 3.04 | |
| Funds from operations — FFO, including special dividend | | $ | 0.83 | | | $ | 0.84 | | | $ | 3.17 | | | $ | 2.90 | |
| | | | | | | | | | | | | | | | | |
| FFO before impairment and preferred redemption charges, excluding special dividend | | $ | 0.92 | | | $ | 0.88 | | | $ | 3.41 | | | $ | 3.09 | |
| FFO before impairment and preferred redemption charges, including special dividend | | $ | 0.88 | | | $ | 0.84 | | | $ | 3.25 | | | $ | 2.95 | |
| | | | | | | | | | | | | | | | | |
| Adjusted funds from operations — AFFO, excluding special dividend | | $ | 0.65 | | | $ | 0.73 | | | $ | 2.45 | | | $ | 2.39 | |
| Adjusted funds from operations — AFFO, including special dividend | | $ | 0.62 | | | $ | 0.70 | | | $ | 2.34 | | | $ | 2.28 | |
| | | | | | | | | | | | | | | | | |
Calculation of Weighted Average Shares | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Earnings (loss) — EPS | | | | | | | | | | | | | | | | |
| Weighted average common shares — diluted, excluding the special dividend | | | 93,463 | | | | 95,715 | | | | 95,106 | | | | 95,758 | |
| Weighted average common shares — diluted attributable to the special dividend | | | 4,523 | | | | 4,530 | | | | 4,523 | | | | 4,522 | |
| | | | | | | | | | | | | |
| Weighted average common shares — diluted, including the special dividend | | | 97,986 | | | | 100,245 | | | | 99,629 | | | | 100,280 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Funds from operations — FFO | | | | | | | | | | | | | | | | |
| Weighted average common shares — diluted, excluding the special dividend | | | 96,437 | | | | 99,906 | | | | 97,983 | | | | 98,522 | |
| Weighted average common shares — diluted attributable to the special dividend | | | 4,672 | | | | 4,704 | | | | 4,643 | | | | 4,714 | |
| | | | | | | | | | | | | |
| Weighted average common shares — diluted, including the special dividend | | | 101,109 | | | | 104,610 | | | | 102,626 | | | | 103,236 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FFO before impairment and preferred redemption charges | | | | | | | | | | | | | | | | |
| Weighted average common shares — diluted, excluding the special dividend | | | 96,437 | | | | 99,906 | | | | 97,983 | | | | 98,536 | |
| Weighted average common shares — diluted attributable to the special dividend | | | 4,672 | | | | 4,704 | | | | 4,643 | | | | 4,714 | |
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| Weighted average common shares — diluted, including the special dividend | | | 101,109 | | | | 104,610 | | | | 102,626 | | | | 103,250 | |
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Adjusted funds from operations — AFFO | | | | | | | | | | | | | | | | |
| Weighted average common shares — diluted, excluding the special dividend | | | 94,371 | | | | 99,834 | | | | 97,421 | | | | 98,451 | |
| Weighted average common shares — diluted attributable to the special dividend | | | 4,570 | | | | 4,700 | | | | 4,621 | | | | 4,710 | |
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| Weighted average common shares — diluted, including the special dividend | | | 98,941 | | | | 104,534 | | | | 102,042 | | | | 103,161 | |
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| AIMCO 4th Quarter 2007 | | 20 |
Glossary
GLOSSARY OF NON-GAAP FINANCIAL AND OPERATING MEASURES: Financial and operating measures found in the Earnings Release and Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with generally accepted accounting principles, or GAAP. These measures are defined below and, where appropriate, reconciled on the accompanying Supplemental Schedules to the most comparable GAAP measures.
ACQUISITION PROPERTIES: Properties that have not reached a stabilized level of occupancy during both the current and comparable prior year period.
ADJUSTED FUNDS FROM OPERATIONS (AFFO): AFFO is FFO (diluted) less Capital Replacement expenditures, plus non-cash charges for preferred stock redemption related costs and impairment losses, all of which are adjusted for the Aimco Operating Partnership’s share. Similar to FFO, AFFO is helpful to investors in understanding Aimco’s performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. Please see Supplemental Schedule 1 for AFFO data reconciled to net income as determined in accordance with GAAP. There can be no assurance that Aimco’s method for computing AFFO is comparable with that of other real estate investment trusts.
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.
CAPITAL IMPROVEMENTS (CI): CI expenditures include all non-redevelopment capital expenditures that are made to enhance the value, profitability or useful life of an asset from its original purchase condition. CI expenditures are a component of capital expenditures in the GAAP Statements of Cash Flows.
CAPITAL REPLACEMENTS (CR): CR expenditures do not increase the value, profitability or useful life of an asset from its original purchase condition. They represent the share of expenditures that are deemed to replace the consumed portion of acquired capital assets. CR expenditures are deducted in the calculation of AFFO and FCF. Please refer to Supplemental Schedule 9 for further detail. CR expenditures are a component of capital expenditures in the GAAP Statements of Cash Flows.
CASUALTY CAPITAL EXPENDITURES: Casualty capital expenditures represent capitalized costs incurred in connection with casualty losses and are associated with the restoration of the asset. A portion of the restoration costs is reimbursed by insurance carriers based on deductibles associated with each loss.
CORE PROPERTIES: Conventional properties located in selected markets that Aimco intends to hold and improve over the long-term.
EFFECTIVE UNITS: Unit count at 100% ownership multiplied by Aimco’s ownership share.
FREE CASH FLOW (FCF): FCF measures profitability of operations and is prior to the cost of capital. FCF is comprised of AFFO (defined above), with adjustments to add back interest expense, minority interest in the Aimco Operating Partnership, and preferred dividends. Because Aimco has unconsolidated real estate interests, it is useful for management and investors to understand, in addition to consolidated cash flows, cash flows related to Aimco’s unconsolidated real estate holdings.
FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance defined by the National Association of Real Estate Investment Trusts (NAREIT) as net income, computed in accordance with GAAP, excluding gains from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Aimco computes FFO for all periods presented in accordance with the guidance set forth by NAREIT’s April 1, 2002 White Paper. Aimco calculates FFO (diluted) by subtracting preferred stock redemption related redemption related costs and dividends on preferred stock and adding back dividends/ distributions on dilutive preferred securities. FFO is helpful to investors in understanding Aimco’s performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. There can be no assurance that Aimco’s method for computing FFO is comparable with that of other real estate investment trusts. Please see Supplemental Schedule 1 for FFO data reconciled to net income as determined in accordance with GAAP.
NON-CORE PROPERTIES: Properties located in markets that are not considered selected markets or in less favored locations within selected markets, which Aimco intends to hold for the intermediate term.
OTHER EXPENSES (INCOME), NET: Other expenses (income), net includes tax provision/benefit, franchise taxes, risk management activities related to our unconsolidated partnerships and partnership expenses (partnership level expenses incurred directly or indirectly for services such as audit, tax and legal.)
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| AIMCO 4th Quarter 2007 | | 21 |
Glossary (continued)
OTHER PROPERTIES: Conventional properties that have significant rent control restrictions, university housing properties that have been owned for more than one year and properties that are not multi-family such as commercial properties or fitness facilities.
REDEVELOPMENT PROPERTIES: Properties where (1) a substantial number of available units have been vacated for major renovations or have not been stabilized in occupancy for at least one year as of the earliest period presented, or (2) other significant renovation, such as exteriors, common areas or unit improvements (done upon lease expirations), is underway or has been complete for less than one year, as of the earliest period presented. In both cases the properties have been removed from the Same Store portfolio.
SAME STORE: Same Store is used commonly to describe Conventional properties managed by Aimco, in which Aimco’s ownership exceeds 10% and that have reached a stabilized level of occupancy during both the current and comparable prior year period. Properties classified as held for sale are not included in Same Store. These results measure operating performance without variations caused by investment transactions. Aimco provides data for consolidated Same Store properties as well as its proportionate share of consolidated and unconsolidated Same Store properties. To ensure comparability, the information for all periods shown is based on current period ownership. Please see Supplemental Schedules 6a through 6c for Same Store data reconciled to rental and other property revenues and property operating expense as determined in accordance with GAAP.
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| AIMCO 4th Quarter 2007 | | 22 |
