• | Funds From Operations (FFO, as defined below) — FFO, before operating real estate impairment recoveries, of $0.42 per share was $0.09 above the mid-point of guidance of $0.33 per share primarily due to favorable property operating results and lower general and administrative expenses. |
• | Same Store Results (as defined below) — When comparing first quarter 2009 to first quarter 2008, Same Store property operations generated net operating income growth of 0.2%, exceeding the mid-point of guidance of negative 1.5%. Same Store revenue declined 0.6% and expenses declined 1.9%. Occupancy declined 1.3% from 94.8% for the first quarter 2008 to 93.5% for the first quarter 2009. |
• | Property Sales and Asset Allocation — During the first quarter 2009, Aimco sold ten properties for $83.1 million, generating $14.3 million in net proceeds to Aimco, after distributions to limited partners, repayment of existing property debt and transaction costs. Aimco continues to market properties located in its non-target markets and lower rated locations within its target markets. |
• | Capital Markets Activity — During the first quarter 2009, Aimco refinanced property loans totaling $110.1 million generating net proceeds to Aimco of $55.6 million. The new loans had a weighted average maturity of ten years and weighted average interest rate of 5.87%. Approximately $99.0 million of the property loans refinanced during the first quarter represented accelerated refinancing of loans maturing in future periods. Debt service coverage and fixed charge coverage ratios, as defined in the credit facility, were 1.63:1 and 1.42:1 for the first quarter 2009 compared to bank compliance levels of 1.50:1 and 1.30:1, respectively, and consistent with the ratios of 1.63:1 and 1.43:1 for the fourth quarter 2008. |
• | Redevelopment — During the first quarter 2009, Aimco invested $20.4 million in conventional redevelopment projects and completed seven of the 37 projects that were active at the end of 2008. Additionally, Aimco elected to reduce the scope of certain projects, resulting in a $21.5 million reduction in their estimated cost of completion. Aimco also invested $8.2 million in seven tax credit redevelopment projects during the first quarter 2009. Net operating income generated by redevelopment properties increased approximately $3.0 million during the first quarter 2009. |
• | Investment Management — Investment management income, net of tax, for the first quarter 2009 totaled $6.9 million with 86% of investment management revenue generated from recurring asset management activities and deferred tax credit income. |
• | Dividend — Aimco’s Board of Directors declared a cash dividend of $0.10 per share on its Class A Common Stock for the quarter ended March 31, 2009. The dividend is payable May 29, 2009, to shareholders of record on May 15, 2009. |
• | Property Operations — Given the challenging market conditions, Aimco remains focused on retaining its existing residents and maintaining tight expense control. For the second quarter 2009, Same Store net operating income is expected to decline 2.0% to 3.0% when compared to second quarter 2008. For the full year 2009, expectations are unchanged at 0% to down 5.0% compared to full year 2008. |
• | Property Sales and Asset Allocation — Aimco continues to increase its allocation of capital to well located properties within its target markets and continues to market approximately $2.0 billion of non-target conventional and affordable assets. |
• | Balance Sheet and Liquidity — Aimco also continues to focus on maintaining a sound balance sheet with balanced sources and uses of cash, ample liquidity and coverage ratios adequate to satisfy bank debt covenants. Aimco is financed primarily with long-term, non-recourse property debt, which represented 84% of Aimco’s leverage at March 31, 2009, with a weighted average maturity of 9.6 years. Aimco is also financed with perpetual preferred equity, which represented approximately 11% of Aimco’s leverage at March 31, 2009. On average, approximately 4%, or $290.0 million, of Aimco’s leverage is subject to refunding in any one year. In order to limit refunding risk, during 2009 Aimco intends to refinance 26 property loans totaling $434.2 million that mature during the balance of 2009 through 2011. The remaining balance of property debt maturities through 2011 totals $99.9 million and is related to four loans, all of which mature in 2011. In addition, net cash proceeds from asset sales are expected to be used first to reduce Aimco’s $350.0 million bank term debt that matures the first quarter of 2011 and to increase cash reserves. |
• | FFO Outlook — For the second quarter 2009, FFO, before operating real estate impairments, is expected to range from $0.37 to $0.43 per share and full year 2009 FFO expectations are unchanged from a range of $1.65 to $1.95 per share. |
AIMCO 1st Quarter 2009 | Page 1 |
• | Net loss attributable to common stockholders for the quarter was $37.7 million, compared with a loss of $38.9 million for the first quarter 2008. Higher gains on dispositions of unconsolidated real estate of $11.0 million, an increase in property operating income of $10.5 million, a decrease in other expenses of $4.3 million and lower general and administrative expenses of $1.3 million were offset by higher depreciation and amortization of $19.7 million, lower interest income of $4.8 million and lower asset management and tax credit revenues of $3.3 million. Earnings per share (EPS) attributable to common stockholders was a loss of $0.33 on a diluted basis, compared with a loss of $0.30 per share in the first quarter 2008. |
• | 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 $51.9 million, or $0.45 per share, compared with $67.3 million, or $0.51 per share, in the first quarter 2008. FFO, before net operating real estate impairment recoveries, was $49.4 million, or $0.42 per share. |
• | Adjusted funds from operations (diluted) (AFFO; a non-GAAP financial measure defined in the Glossary) was $35.0 million, or $0.30 per share, compared with $46.7 million, or $0.36 per share, in the first quarter 2008. AFFO includes deductions of $0.12 and $0.15 per share for capital replacement expenditures in the first quarter 2009 and the first quarter 2008, respectively. |
FIRST QUARTER | ||||||||
2009 | 2008 | |||||||
Earnings (loss)- EPS | $ | (0.33 | ) | $ | (0.30 | ) | ||
Funds from operations- FFO | $ | 0.45 | $ | 0.51 | ||||
FFO before operating real estate impairment recoveries | $ | 0.42 | $ | 0.51 | ||||
Adjusted funds from operations- AFFO | $ | 0.30 | $ | 0.36 |
* | These per share results reflect the cumulative effect of the shares issued as part of Aimco’s special dividends paid in 2008 and on January 29, 2009 To estimate the approximate per share results before the effect of Aimco’s special dividends, multiply the reported per share results by a factor of 1.48. |
Management Comments
Chairman and Chief Executive Officer Terry Considine comments: “Aimco executed its plan successfully during the first quarter. Same Store property operating results were essentially equal to the first quarter 2008 despite a challenging operating environment. Corporate overhead expenses have been reduced significantly, redevelopment expenditures in 2009 are expected to be 75% lower than in 2008 and the reduction in Aimco’s regular quarterly dividend allows Aimco to retain a substantial amount of cash. Over the coming quarters, we will remain focused on serving our customers, upgrading our portfolio and strengthening our balance sheet.”
President, Chief Investment Officer and Chief Financial Officer David Robertson adds: “Balance sheet safety and liquidity are being enhanced by the sale of non-core assets and the accelerated refinancing of property mortgage debt. We sold $83 million of assets during the quarter at an average cap rate of 7.1% and continue to market other non-core assets. We refinanced $110 million of property debt, $99 million of which represented accelerated refinancing of property loans maturing subsequent to the first quarter, generating excess proceeds to Aimco of $56 million. We will continue to focus on taking the actions necessary to ensure that we maintain appropriate liquidity and balance sheet risk.”
AIMCO 1st Quarter 2009 | Page 2 |
FIRST QUARTER | ||||||||||||||||||||
Year-over-year | Sequential | |||||||||||||||||||
2009 | 2008 | Variance | 4th Qtr | Variance | ||||||||||||||||
Same Store Operating Measures | ||||||||||||||||||||
Average Physical Occupancy | 93.5 | % | 94.8 | % | -1.3 | % | 94.7 | % | -1.2 | % | ||||||||||
Average Rent Per Unit | $ | 966 | $ | 965 | 0.1 | % | $ | 969 | -0.3 | % | ||||||||||
Total Same Store ($mm) | ||||||||||||||||||||
Revenue | $ | 192.7 | $ | 193.9 | -0.6 | % | $ | 194.9 | -1.1 | % | ||||||||||
Expenses | (76.0 | ) | (77.4 | ) | -1.9 | % | (73.2 | ) | 3.8 | % | ||||||||||
NOI | $ | 116.7 | $ | 116.5 | 0.2 | % | $ | 121.7 | -4.1 | % |
AIMCO 1st Quarter 2009 | Page 3 |
AIMCO 1st Quarter 2009 | Page 4 |
International Dial-In Number: 1-412-317-9250
Passcode: 8355202
Webcast:http://www.aimco.com/CorporateInformation/Overview.aspx
International Dial-In Number: 1-412-317-0088
Passcode: 429339
AIMCO 1st Quarter 2009 | Page 5 |
Investor Relations 303.691.4350,Investor@Aimco.com
Elizabeth Coalson, Vice President Investor Relations 303.691.4327
AIMCO 1st Quarter 2009 | Page 6 |
Three Months Ended | ||||||||
March 31, | ||||||||
2009 | 2008 | |||||||
REVENUES: | ||||||||
Rental and other property revenues | $ | 338,093 | $ | 332,892 | ||||
Property management revenues, primarily from affiliates | 1,644 | 2,104 | ||||||
Asset management and tax credit revenues | 9,539 | 12,852 | ||||||
Total revenues | 349,276 | 347,848 | ||||||
OPERATING EXPENSES: | ||||||||
Property operating expenses | 156,489 | 161,764 | ||||||
Property management expenses | 1,433 | 1,335 | ||||||
Investment management expenses | 3,789 | 4,387 | ||||||
Depreciation and amortization | 123,215 | 103,500 | ||||||
General and administrative expenses | 20,072 | 21,366 | ||||||
Other expenses, net | 2,292 | 5,751 | ||||||
Total operating expenses | 307,290 | 298,103 | ||||||
Operating income | 41,986 | 49,745 | ||||||
Interest income | 3,340 | 8,115 | ||||||
Provision for losses on notes receivable | (150 | ) | (223 | ) | ||||
Interest expense | (91,511 | ) | (91,533 | ) | ||||
Equity losses of unconsolidated real estate partnerships | (2,040 | ) | (1,029 | ) | ||||
Provision for operating real estate impairment losses | (1,760 | ) | — | |||||
Gain (loss) on dispositions of unconsolidated real estate and other | 10,862 | (137 | ) | |||||
Loss before income taxes and discontinued operations | (39,273 | ) | (35,062 | ) | ||||
Income tax benefit | 3,016 | 1,772 | ||||||
Loss from continuing operations | (36,257 | ) | (33,290 | ) | ||||
Income from discontinued operations, net [1] | 3,688 | 8,159 | ||||||
Net loss | (32,569 | ) | (25,131 | ) | ||||
Noncontrolling interests [2]: | ||||||||
Net loss (income) attributable to noncontrolling interests in consolidated real estate partnerships | 6,273 | (1,843 | ) | |||||
Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership [3] | (1,069 | ) | (1,782 | ) | ||||
Net loss attributable to common noncontrolling interests in Aimco Operating Partnership [3] | 2,835 | 4,108 | ||||||
Total noncontrolling interests | 8,039 | 483 | ||||||
Net loss attributable to Aimco | (24,530 | ) | (24,648 | ) | ||||
Net income attributable to Aimco preferred stockholders | 13,166 | 14,208 | ||||||
Net loss attributable to Aimco common stockholders | $ | (37,696 | ) | $ | (38,856 | ) | ||
Weighted average common shares outstanding — basic and diluted [4] | 115,099 | 127,961 | ||||||
Earnings (loss) per common share — basic and diluted [4]: | ||||||||
Loss from continuing operations (net of income attributable to noncontrolling interests and Aimco preferred stockholders) | $ | (0.33 | ) | $ | (0.34 | ) | ||
Income from discontinued operations (net of income attributable to noncontrolling interests) | — | 0.04 | ||||||
Net loss attributable to Aimco common stockholders | $ | (0.33 | ) | $ | (0.30 | ) | ||
AIMCO 1st Quarter 2009 | Page 7 |
Three Months Ended | ||||||||
March 31, | ||||||||
2009 | 2008 | |||||||
Rental and other property revenues [5] | $ | 1,840 | $ | 91,724 | ||||
Property operating expenses [5] [6] | (3,998 | ) | (46,126 | ) | ||||
Depreciation and amortization | (379 | ) | (24,930 | ) | ||||
Other expenses, net | (1,096 | ) | (644 | ) | ||||
Operating income | (3,633 | ) | 20,024 | |||||
Interest income | 19 | 526 | ||||||
Interest expense | (1,230 | ) | (16,863 | ) | ||||
(Loss) income before gain on dispositions of real estate, impairment losses and income taxes | (4,844 | ) | 3,687 | |||||
Gain on dispositions of real estate | 4,550 | 4,239 | ||||||
Real estate impairment recoveries | 4,613 | — | ||||||
Income tax (expense) benefit | (631 | ) | 233 | |||||
Income from discontinued operations, net | $ | 3,688 | $ | 8,159 | ||||
Income from discontinued operations attributable to noncontrolling interests: | ||||||||
Noncontrolling interests in consolidated real estate partnerships [5] | $ | (3,662 | ) | $ | (3,635 | ) | ||
Noncontrolling interests in Aimco Operating Partnership | (278 | ) | (449 | ) | ||||
Total income from discontinued operations attributable to noncontrolling interests | $ | (3,940 | ) | $ | (4,084 | ) | ||
[2] | Noncontrolling interests refers to interests in consolidated partnerships held by parties other than Aimco. | |
[3] | The Aimco Operating Partnership is AIMCO Properties, L.P., the operating partnership in Aimco’s UPREIT structure. | |
[4] | Weighted average share and earnings per share amounts for the periods presented above have been retroactively adjusted for the effect of shares of common stock issued pursuant to the special dividends paid in 2008 and January 2009. | |
[5] | Income from discontinued operations for the three months ended March 31, 2009, attributable to properties classified as held for sale at March 31, 2009, includes $0.9 million of rental and other property revenues and $0.7 million of property operating expenses. Noncontrolling interests in consolidated real estate partnerships’ share of these amounts totaled less than $0.1 million. | |
[6] | Property operating expenses for the three months ended March 31, 2009, includes $1.9 million of net casualty losses. |
AIMCO 1st Quarter 2009 | Page 8 |
(in thousands)
(unaudited)
March 31, 2009 | December 31, 2008 | |||||||
ASSETS | ||||||||
Buildings and improvements | $ | 8,568,442 | $ | 8,520,382 | ||||
Land | 2,337,853 | 2,326,671 | ||||||
Accumulated depreciation | (2,883,910 | ) | (2,771,131 | ) | ||||
Total real estate | 8,022,385 | 8,075,922 | ||||||
Cash and cash equivalents | 93,233 | 299,676 | ||||||
Restricted cash | 265,639 | 258,156 | ||||||
Accounts receivable | 80,689 | 92,923 | ||||||
Accounts receivable from affiliates | 32,833 | 36,372 | ||||||
Deferred financing costs | 58,388 | 59,070 | ||||||
Notes receivable from unconsolidated real estate partnerships | 24,267 | 22,567 | ||||||
Notes receivable from non-affiliates | 139,949 | 139,897 | ||||||
Investment in unconsolidated real estate partnerships | 121,322 | 119,036 | ||||||
Other assets | 199,203 | 188,764 | ||||||
Deferred income tax asset, net | 27,052 | 28,326 | ||||||
Assets held for sale | 17,258 | 94,157 | ||||||
Total assets | $ | 9,082,218 | $ | 9,414,866 | ||||
LIABILITIES AND EQUITY | ||||||||
Property tax-exempt bond financing | $ | 720,722 | $ | 721,971 | ||||
Property loans payable | 5,558,506 | 5,545,893 | ||||||
Term loans | 350,000 | 400,000 | ||||||
Credit facility | 15,000 | — | ||||||
Other borrowings | 90,941 | 95,981 | ||||||
Total indebtedness | 6,735,169 | 6,763,845 | ||||||
Accounts payable | 32,902 | 64,241 | ||||||
Accrued liabilities and other | 291,081 | 411,209 | ||||||
Deferred income | 184,796 | 195,202 | ||||||
Security deposits | 42,774 | 43,088 | ||||||
Liabilities related to assets held for sale | 5,176 | 70,599 | ||||||
Total liabilities | 7,291,898 | 7,548,184 | ||||||
Preferred noncontrolling interests in Aimco Operating Partnership | 87,247 | 88,148 | ||||||
Equity: | ||||||||
Perpetual preferred stock | 696,500 | 696,500 | ||||||
Class A Common Stock | 1,165 | 1,162 | ||||||
Additional paid-in capital | 3,061,099 | 3,056,550 | ||||||
Notes due on common stock purchases | (2,148 | ) | (3,607 | ) | ||||
Distributions in excess of earnings | (2,372,038 | ) | (2,335,628 | ) | ||||
Total Aimco equity | 1,384,578 | 1,414,977 | ||||||
Noncontrolling interests in consolidated real estate partnerships | 323,414 | 363,557 | ||||||
Common noncontrolling interests in Aimco Operating Partnership | (4,919 | ) | — | |||||
Total equity | 1,703,073 | 1,778,534 | ||||||
Total liabilities and equity | $ | 9,082,218 | $ | 9,414,866 | ||||
AIMCO 1st Quarter 2009 | Page 9 |
Second Quarter and Full Year 2009
(unaudited)
Second Quarter 2009 | Full Year 2009 | |||||||
GAAP earnings per share [1][3] | -$0.48 to -$0.42 | -$1.68 to -$1.37 | ||||||
FFO per share [2][4] | $0.37 to $0.43 | $1.65 to $1.95 | ||||||
2009 Same Store operating assumptions: | ||||||||
Weighted average daily occupancy | 93.0% to 94.0% | 93.5% to 94.5% | ||||||
NOI change — sequential | -1.25% to -0.25% | |||||||
NOI change — 2009 vs. 2008 | -3.0% to -2.0% | -5.0% to 0.0% |
[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, (iii) preferred stock redemption related costs or gains or (iv) potential future share repurchases or special dividends. | |
[2] | FFO per share represents FFO before operating real estate impairment losses and preferred redemption related costs or gains. | |
[3] | The GAAP earnings per share is calculated based on 115.2 million weighted average common shares (diluted) for second quarter and full year 2009. | |
[4] | FFO per share is calculated based on 116.6 million weighted average common shares (diluted) for second quarter and 116.5 million weighted average common shares (diluted) for full year 2009. |
AIMCO 1st Quarter 2009 | Page 10 |
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 (1Q 2009 v. 1Q 2008) | |
12 | Schedule 6b — Same Store Operating Results (1Q 2009 v. 4Q 2008) | |
13 | Schedule 7 — Total Conventional Portfolio Data by Market | |
14 | Schedule 8 — Property Sales and Acquisition Activity | |
15 | Schedule 9 — Capital Expenditures | |
16 | Schedule 10 — Summary of Redevelopment Activity | |
17 | Schedule 11 — Aimco Capital | |
18 | Schedule 12 — Apartment Unit Summary | |
19 | Glossary |
AIMCO 1st Quarter 2009 | 2 |
(in thousands, except per share data) (unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2009 | 2008 | |||||||
Net loss attributable to Aimco common stockholders [1] | $ | (37,696 | ) | $ | (38,856 | ) | ||
Adjustments: | ||||||||
Depreciation and amortization | 123,215 | 103,500 | ||||||
Depreciation and amortization related to non-real estate assets | (4,393 | ) | (3,817 | ) | ||||
Depreciation of rental property related to noncontrolling partners and unconsolidated entities [2] | (12,280 | ) | (8,697 | ) | ||||
(Gain) loss on dispositions of unconsolidated real estate and other | (10,862 | ) | 137 | |||||
Loss (gain) on dispositions of non-depreciable assets and other | 682 | (16 | ) | |||||
Deficit distributions to noncontrolling partners [3] | — | 3,931 | ||||||
Discontinued operations: | ||||||||
Loss (gain) on dispositions of real estate, net of noncontrolling partners’ interest [2] | 76 | (1,436 | ) | |||||
Depreciation of rental property, net of noncontrolling partners’ interest [2] | 269 | 22,154 | ||||||
Recovery of deficit distributions to noncontrolling partners [3] | — | 273 | ||||||
Income tax expense (benefit) arising from disposals | 215 | (86 | ) | |||||
Noncontrolling interests in Aimco Operating Partnership’s share of above adjustments | (7,317 | ) | (11,114 | ) | ||||
Preferred stock dividends | 13,166 | 14,208 | ||||||
Funds From Operations | $ | 65,075 | $ | 80,181 | ||||
Preferred stock dividends | (13,166 | ) | (14,208 | ) | ||||
Dividends/distributions on dilutive preferred securities | — | 1,333 | ||||||
Funds From Operations Attributable to Aimco Common Stockholders — Diluted | $ | 51,909 | $ | 67,306 | ||||
Operating real estate impairment losses, continuing operations [4] | 1,760 | — | ||||||
Operating real estate impairment recoveries, discontinued operations, net of noncontrolling partners’ interest [4] | (4,518 | ) | — | |||||
Noncontrolling interests in Aimco Operating Partnership’s share of above adjustments | 208 | — | ||||||
Funds From Operations Attributable to Aimco Common Stockholders — Diluted (excluding operating real estate impairments/recoveries) | $ | 49,359 | $ | 67,306 | ||||
Capital Replacements | (15,542 | ) | (21,358 | ) | ||||
Noncontrolling interests in Aimco Operating Partnership’s share of Capital Replacements | 1,173 | 2,047 | ||||||
Dividends/distributions on non-dilutive preferred securities | — | (1,333 | ) | |||||
Adjusted Funds From Operations Attributable to Aimco Common Stockholders — Diluted | $ | 34,990 | $ | 46,662 | ||||
Funds From Operations Attributable to Aimco Common Stockholders — Diluted: | ||||||||
Weighted average common shares, participating securities, common share equivalents and dilutive preferred securities outstanding [5]: | ||||||||
Common shares, participating securities and common share equivalents [6] | 116,343 | 128,352 | ||||||
Dilutive preferred securities [7] | — | 2,674 | ||||||
116,343 | 131,026 | |||||||
Funds From Operations Attributable to Aimco Common Stockholders (excluding operating real estate impairments/recoveries) | ||||||||
Weighted average common shares, participating securities, common share equivalents and dilutive preferred securities outstanding [5]: | ||||||||
Common shares, participating securities and common share equivalents [6] | 116,343 | 128,352 | ||||||
Dilutive preferred securities [7] | — | 2,674 | ||||||
116,343 | 131,026 | |||||||
Adjusted Funds From Operations Attributable to Aimco Common Stockholders — Diluted | ||||||||
Weighted average common shares, participating securities, common share equivalents and dilutive preferred securities outstanding [5]: | ||||||||
Common shares, participating securities and common share equivalents [6] | 116,343 | 128,352 | ||||||
Dilutive preferred securities [7] | — | — | ||||||
116,343 | 128,352 | |||||||
Per Share [5]: | ||||||||
Funds From Operations — Diluted | $ | 0.45 | $ | 0.51 | ||||
Funds From Operations — Diluted (excluding operating real estate impairments/recoveries) | $ | 0.42 | $ | 0.51 | ||||
Adjusted Funds From Operations — Diluted | $ | 0.30 | $ | 0.36 | ||||
Dividends paid [8] | $ | 2.08 | $ | 2.51 |
AIMCO 1st Quarter 2009 | 3 |
[1] | Represents the numerator for calculating basic earnings per common share in accordance with GAAP. | |
[2] | “Noncontrolling partners” refers to noncontrolling partners in our consolidated real estate partnerships. | |
[3] | Prior to adoption of SFAS 160, Aimco recognized deficit distributions to noncontrolling partners as charges in its income statement when cash was distributed to a noncontrolling partner in a consolidated partnership in excess of the positive balance in such partner’s capital account, which is classified as noncontrolling interests on our balance sheet. Aimco recorded these charges for GAAP purposes even though there is no economic effect or cost. Deficit distributions to noncontrolling 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 noncontrolling partners represented, in substance, either (a) Aimco’s recognition of depreciation previously allocated to the noncontrolling partner or (b) a payment related to the noncontrolling partner’s share of real estate appreciation. Based on NAREIT’s FFO White Paper guidance that requires real estate depreciation and gains to be excluded from FFO, Aimco added back deficit distributions and subtracted related recoveries in its reconciliation of net income to FFO. Subsequent to adoption of SFAS 160, effective January 1, 2009, Aimco may reduce the balance in noncontrolling partner’s capital accounts below zero in such situations and is no longer required to recognize deficit distribution charges in its income statement. | |
[4] | On October 1, 2003, NAREIT clarified its definition of FFO to include operating real estate 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 operating real estate, which are not included in FFO. Aimco does not add back operating real estate impairment losses when computing FFO in accordance with NAREIT’s definition. FFO for the three months ended March 31, 2009 includes operating real estate impairment recoveries of $2.8 million. | |
[5] | Weighted average common shares, participating securities, common share equivalents, dilutive preferred securities and per share funds from operations and adjusted funds from operations amounts for each of the periods presented above have been retroactively adjusted for the effect of shares of Common Stock issued pursuant to the special dividends paid in 2008 and January 2009. | |
[6] | Represents the denominator for calculating Aimco’s diluted earnings per common share in accordance with GAAP, plus additional participating securities and common share equivalents that are dilutive for FFO, FFO (excluding operating real estate impairment losses) or AFFO. In this FFO presentation, we have presented participating securities similar to outstanding shares which has the same effect on per share FFO amounts as allocating undistributed FFO amounts to the participating securities. | |
[7] | AIMCO Properties, L.P.’s Preferred Partnership Units (PPU) are redeemable at the option of the holder. Upon a requested redemption, Aimco, in its sole discretion, may redeem these units for cash or shares of common stock. During 2008, Aimco implemented a policy that establishes criteria for determining when such redemptions will be settled in cash or common stock. Pursuant to such policy, during the first quarter 2009, 11.8 million potential shares were excluded from diluted FFO, FFO (excluding operating real estate impairment losses) and AFFO share equivalents. | |
[8] | Dividends paid per share for the periods presented have not been adjusted to give effect to shares of Common Stock issued pursuant to the special dividends paid in 2008 and January 2009. |
AIMCO 1st Quarter 2009 | 4 |
Proportionate Operating Results Presentation (in thousands) (unaudited) | (page 1 of 2) |
Three Months Ended March 31, 2009 | ||||||||||||||||
Proportionate | ||||||||||||||||
Aimco | Share of | Proportionate | ||||||||||||||
GAAP Income | Unconsolidated | Noncontrolling | Income | |||||||||||||
Statement | Partnerships | Interests | Statement | |||||||||||||
Revenues: | ||||||||||||||||
Rental and other property revenues: | ||||||||||||||||
Same Store properties [1] [2] | $ | 212,093 | $ | 474 | $ | (22,725 | ) | $ | 189,842 | |||||||
Acquisition properties [1] | 6,841 | — | — | 6,841 | ||||||||||||
Redevelopment properties [1] | 47,351 | — | (4,617 | ) | 42,734 | |||||||||||
Other properties [1] | 16,087 | 168 | (1,332 | ) | 14,923 | |||||||||||
Affordable properties [1] | 55,721 | 2,369 | (17,324 | ) | 40,766 | |||||||||||
Total rental and other property revenues | 338,093 | 3,011 | (45,998 | ) | 295,106 | |||||||||||
Property management revenues, primarily from affiliates [3] | 1,644 | (163 | ) | 2,628 | 4,109 | |||||||||||
Asset management and tax credit revenues | 9,539 | — | 399 | 9,938 | ||||||||||||
Total revenues | 349,276 | 2,848 | (42,971 | ) | 309,153 | |||||||||||
Operating expenses: | ||||||||||||||||
Property operating expenses: | ||||||||||||||||
Same Store properties [2] | 83,890 | 234 | (9,301 | ) | 74,823 | |||||||||||
Acquisition properties | 2,929 | — | — | 2,929 | ||||||||||||
Redevelopment properties | 19,947 | — | (2,008 | ) | 17,939 | |||||||||||
Other properties | 8,544 | 89 | (599 | ) | 8,034 | |||||||||||
Affordable properties | 28,811 | 1,546 | (9,714 | ) | 20,643 | |||||||||||
Casualties, Conventional | 2,421 | (38 | ) | (160 | ) | 2,223 | ||||||||||
Casualties, Affordable | 878 | (14 | ) | (58 | ) | 806 | ||||||||||
Property management expenses, Conventional [4] | 6,655 | — | 327 | 6,982 | ||||||||||||
Property management expenses, Affordable [4] | 2,414 | — | (955 | ) | 1,459 | |||||||||||
Total property operating expenses | 156,489 | 1,817 | (22,468 | ) | 135,838 | |||||||||||
Property management expenses [5] | 1,433 | — | 629 | 2,062 | ||||||||||||
Investment management expenses | 3,789 | — | — | 3,789 | ||||||||||||
Depreciation and amortization | 123,215 | 642 | (12,991 | ) | 110,866 | |||||||||||
General and administrative expenses | 20,072 | (29 | ) | (942 | ) | 19,101 | ||||||||||
Other expenses (income), net | 2,292 | 1,862 | (4,712 | ) | (558 | ) | ||||||||||
Total operating expenses | 307,290 | 4,292 | (40,484 | ) | 271,098 | |||||||||||
Operating income | 41,986 | (1,444 | ) | (2,487 | ) | 38,055 | ||||||||||
Interest income: | ||||||||||||||||
General partner loan interest | 1,723 | — | 1,065 | 2,788 | ||||||||||||
Money market and interest bearing accounts | 1,660 | 45 | (179 | ) | 1,526 | |||||||||||
Accretion on discounted notes receivable | (43 | ) | — | 38 | (5 | ) | ||||||||||
Total interest income | 3,340 | 45 | 924 | 4,309 | ||||||||||||
Provision for losses on notes receivable | (150 | ) | — | 732 | 582 | |||||||||||
Interest expense: | ||||||||||||||||
Property debt (primarily non-recourse) | (89,068 | ) | (642 | ) | 11,078 | (78,632 | ) | |||||||||
Corporate debt | (4,810 | ) | — | — | (4,810 | ) | ||||||||||
Capitalized interest | 2,367 | 1 | (59 | ) | 2,309 | |||||||||||
Total interest expense | (91,511 | ) | (641 | ) | 11,019 | (81,133 | ) | |||||||||
Equity in losses of unconsolidated real estate partnerships | (2,040 | ) | 2,040 | — | — | |||||||||||
Provision for operating real estate impairment losses | (1,760 | ) | — | — | (1,760 | ) | ||||||||||
Gain on dispositions of unconsolidated real estate and other | 10,862 | — | (253 | ) | 10,609 | |||||||||||
Loss before income taxes and discontinued operations | (39,273 | ) | — | 9,935 | (29,338 | ) | ||||||||||
Income tax benefit | 3,016 | — | — | 3,016 | ||||||||||||
Loss from continuing operations | (36,257 | ) | — | 9,935 | (26,322 | ) | ||||||||||
Income from discontinued operations, net | 3,688 | — | (3,662 | ) | 26 | |||||||||||
Net loss | (32,569 | ) | — | 6,273 | (26,296 | ) | ||||||||||
Noncontrolling interests: | ||||||||||||||||
Noncontrolling interests in consolidated real estate partnerships | 6,273 | — | (6,273 | ) | — | |||||||||||
Noncontrolling interests in Aimco Operating Partnership | 1,766 | — | — | 1,766 | ||||||||||||
Total net income attributable to noncontrolling interests | 8,039 | — | (6,273 | ) | 1,766 | |||||||||||
Net loss attributable to Aimco | (24,530 | ) | — | — | (24,530 | ) | ||||||||||
Net income attributable to Aimco preferred stockholders | 13,166 | — | — | 13,166 | ||||||||||||
Net loss attributable to Aimco common stockholders | $ | (37,696 | ) | $ | — | $ | — | $ | (37,696 | ) | ||||||
AIMCO 1st Quarter 2009 | 5 |
Proportionate Operating Results Presentation (in thousands) (unaudited) | (page 2 of 2) |
Three Months | ||||
Ended | ||||
March 31, 2009 | ||||
Components of FFO: | ||||
Real estate operations: | ||||
Rental and other property revenues | $ | 295,106 | ||
Property operating expenses | (135,838 | ) | ||
Net real estate operations | 159,268 | |||
Property management, net | 2,047 | |||
Asset management and tax credit revenues, net of investment management expenses | 6,149 | |||
Depreciation and amortization related to non-real estate assets | (4,324 | ) | ||
General and administrative expenses | (19,101 | ) | ||
Other income, net | 558 | |||
Interest income | 4,309 | |||
Provision for losses on notes receivable | 582 | |||
Interest expense | (81,133 | ) | ||
Gain on disposition of non-depreciable assets | 682 | |||
Income tax benefit | 3,016 | |||
Discontinued operations: | ||||
Operations and other | (3,191 | ) | ||
Interest expense | (994 | ) | ||
Preferred stock dividends and redemption related amounts | (13,166 | ) | ||
Preferred partnership unit distributions | (1,069 | ) | ||
Subtotal before noncontrolling interests in Aimco Operating Partnership | $ | 53,633 | ||
Common noncontrolling interests in Aimco Operating Partnership | (4,274 | ) | ||
FFO Attributable to Aimco Common Stockholders — Diluted (excluding operating real estate impairments/recoveries) | $ | 49,359 | ||
Reconciliation of Net Loss to FFO and AFFO: | ||||
Net loss | $ | (26,296 | ) | |
Depreciation and amortization | 110,866 | |||
Depreciation and amortization related to non-real estate assets | (4,324 | ) | ||
Gain on dispositions of unconsolidated real estate and other | (10,609 | ) | ||
Income tax benefit arising from disposition of unconsolidated real estate and other | 682 | |||
Discontinued operations | 307 | |||
Operating real estate impairment losses, continuing operations | 1,760 | |||
Operating real estate impairment recoveries, discontinued operations | (4,518 | ) | ||
Noncontrolling interests in Aimco Operating Partnership’s share of adjustments | (7,109 | ) | ||
Noncontrolling interests in Aimco Operating Partnership’s share of net loss | 1,766 | |||
Preferred stock dividends | (13,166 | ) | ||
FFO Attributable to Aimco Common Stockholders — Diluted (excluding operating real estate impairments/recoveries) | $ | 49,359 | ||
Capital Replacements | (15,542 | ) | ||
Noncontrolling interests in Aimco Operating Partnership’s share of Capital Replacements | 1,173 | |||
AFFO Attributable to Aimco Common Stockholders — Diluted | $ | 34,990 | ||
[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 noncontrolling interest 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 noncontrolling interest partners’ share of both consolidated and unconsolidated property management expenses. |
AIMCO 1st Quarter 2009 | 6 |
As of March 31, 2009
(in thousands) (unaudited)
Proportionate | ||||||||||||||||
Consolidated | Share of | Proportionate | ||||||||||||||
GAAP | Unconsolidated | Noncontrolling | Balance | |||||||||||||
Balance Sheet | Partnerships | Interests | Sheet | |||||||||||||
ASSETS | ||||||||||||||||
Real estate, net of depreciation | $ | 8,022,385 | $ | 53,705 | $ | (614,018 | ) | $ | 7,462,072 | |||||||
Cash, cash equivalents and restricted cash | 358,872 | 6,100 | (81,647 | ) | 283,325 | |||||||||||
Accounts receivable | 113,522 | 711 | (10,585 | ) | 103,648 | |||||||||||
Notes receivable [1] | 164,216 | (3,451 | ) | 71,723 | 232,488 | |||||||||||
Investment in unconsolidated real estate partnerships | 121,322 | (30,909 | ) | (50,457 | ) | 39,956 | ||||||||||
Other assets [2] | 301,901 | (1,571 | ) | (33,568 | ) | 266,762 | ||||||||||
Total assets | $ | 9,082,218 | $ | 24,585 | $ | (718,552 | ) | $ | 8,388,251 | |||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Total indebtedness | $ | 6,735,169 | $ | 18,457 | $ | (717,456 | ) | $ | 6,036,170 | |||||||
Other liabilities [3] | 556,729 | 6,128 | (100,771 | ) | 462,086 | |||||||||||
Total liabilities | 7,291,898 | 24,585 | (818,227 | ) | 6,498,256 | |||||||||||
Preferred noncontrolling interests in Aimco Operating Partnership [4] | 87,247 | — | — | 87,247 | ||||||||||||
Total Aimco equity [5] | 1,384,578 | — | 423,089 | 1,807,667 | ||||||||||||
Noncontrolling interests in consolidated real estate partnerships | 323,414 | — | (323,414 | ) | — | |||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (4,919 | ) | — | — | (4,919 | ) | ||||||||||
Total liabilities and equity | $ | 9,082,218 | $ | 24,585 | $ | (718,552 | ) | $ | 8,388,251 | |||||||
[1] | Aimco has notes receivable from consolidated partnerships which are eliminated in the GAAP balance sheet. The noncontrolling partners’ share of amounts payable to Aimco pursuant to those notes is $72.8 million. | |
[2] | Other assets consists of the following proportionate amounts: |
Deferred financing costs | $ | 48,129 | ||
Goodwill | 81,880 | |||
Investment in management contracts | 1,616 | |||
Intangible assets | 131,625 | |||
Deferred income tax asset | 27,052 | |||
Assets held for sale | 16,415 | |||
Other | 91,670 | |||
Total other assets | $ | 266,762 | ||
[3] | Other liabilities includes deferred income of $137.2 million of tax credit equity 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. | |
[4] | Various classes of preferred OP Units of the Aimco Operating Partnership are outstanding. Depending on the terms of each class, these preferred OP Units are convertible into common OP Units or redeemable for cash, or at Aimco’s option, Common Stock. As of March 31, 2009 a total of 3.2 million preferred OP Units were outstanding with a redemption value of $86.4 million. | |
[5] | Amount includes perpetual preferred stock outstanding of $696.5 million at March 31, 2009. |
AIMCO 1st Quarter 2009 | 7 |
(in thousands) (unaudited)
Shares/Units | ||||||||||||||||
Outstanding | ||||||||||||||||
as of | Redemption | |||||||||||||||
March 31, 2009 | Date [1] | Coupon | Amount | |||||||||||||
Perpetual Preferred Stock: | ||||||||||||||||
Class G | 4,040 | 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 | [2] | 6/30/2011 | 2.710 | %[3] | 73,000 | ||||||||||
Total perpetual preferred stock | 696,500 | |||||||||||||||
Preferred Partnership Units | 3,175 | 8.075 | %[4] | 86,421 | ||||||||||||
Total outstanding preferred securities | $ | 782,921 | ||||||||||||||
Shares/Units | ||||||||||||
Outstanding | Weighted Average Shares/Units | |||||||||||
as of | Three Months Ended March 31, 2009 | |||||||||||
March 31, 2009 | Diluted EPS | Diluted FFO | ||||||||||
Class A Common Stock [5] [10] | 115,463 | 115,099 | 115,099 | |||||||||
Participating and dilutive securities: | ||||||||||||
Participating securities [6] [10] | — | — | 1,159 | |||||||||
Options [7] [10] | 85 | — | 85 | |||||||||
Convertible preferred securities [8] [10] | — | — | — | |||||||||
Total shares and dilutive share equivalents | 115,548 | 115,099 | 116,343 | |||||||||
Common Partnership Units and equivalents [9] | 9,343 | 9,399 | 9,399 | |||||||||
Total shares, units and dilutive share equivalents | 124,891 | 124,498 | 125,742 | |||||||||
[1] | The redemption date is the date the securities are first eligible for redemption by Aimco. | |
[2] | Represents 146 shares at a liquidation preference per share of $500,000. | |
[3] | 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 period. | |
[4] | Coupon is based on a weighted average. | |
[5] | Includes a deduction of 1.0 million for unvested restricted stock and officer loan shares as of March 31, 2009. | |
[6] | Participating securities consist of unvested restricted stock and officer loan shares and had no effect on earnings per share for the three months ended March 31, 2009. | |
[7] | Stock options, restricted stock and officer loan shares are presumed to be dilutive as of March 31, 2009, and reflect the options and shares outstanding at the end of the period and the $5.48 share price at the end of the period. Dilution for the three months ended March 31, 2009, reflects the weighted average amounts during the period. | |
[8] | AIMCO Properties, L.P.’s Preferred Partnership Units (PPU) are redeemable at the option of the holder. Upon a requested redemption, Aimco, in its sole discretion, may redeem these units for cash or shares of common stock. During the fourth quarter 2008, Aimco implemented a policy that established criteria for determining when such redemptions will be settled in cash or shares of common stock. Pursuant to such policy, during the first quarter 2009, 11.8 million potential shares were excluded from diluted FFO share equivalents. These potential shares were excluded from diluted EPS equivalents because their effect was antidilutive. The potential common shares from an assumed stock settlement are ignored in the determination of shares/units outstanding as of March 31, 2009. | |
[9] | Includes common OP Units and Class I High Performance Units. | |
[10] | Class A Common Stock, options, restricted stock and officer loan shares and convertible preferred securities amounts for the periods presented have been retroactively adjusted for the effect of the shares of Common Stock issued pursuant to the special dividend paid in 2009. |
AIMCO 1st Quarter 2009 | 8 |
Supplemental Schedule 5 | ||
Selected Debt Structure and Maturity Data As of March 31, 2009 (dollars in thousands) (unaudited) | (page 1 of 2) |
Proportionate | Weighted | |||||||||||||||||||||||
Share of | Noncontrolling | Total Aimco | Average | Weighted | ||||||||||||||||||||
Debt | Consolidated | Unconsolidated | Interests | Share | Maturity (years) | Average Rate | ||||||||||||||||||
Property Debt (primarily non-recourse): | ||||||||||||||||||||||||
Conventional Portfolio: | ||||||||||||||||||||||||
Fixed rate loans payable | $ | 4,651,664 | $ | 6,566 | $ | (466,557 | ) | $ | 4,191,673 | 8.2 | 6.19 | % | ||||||||||||
Floating rate loans payable [1] | 317,183 | — | (17,474 | ) | 299,709 | 2.4 | 4.32 | % | ||||||||||||||||
Total property loans payable | 4,968,847 | 6,566 | (484,031 | ) | 4,491,382 | 7.8 | 6.07 | % | ||||||||||||||||
Fixed rate tax-exempt bonds | 83,730 | — | (3,338 | ) | 80,392 | 12.2 | 6.10 | % | ||||||||||||||||
Floating rate tax-exempt bonds [1] | 436,486 | — | (5,242 | ) | 431,244 | 14.6 | 0.95 | % | ||||||||||||||||
Total property tax-exempt bond financing | 520,216 | — | (8,580 | ) | 511,636 | 14.3 | 1.76 | % | ||||||||||||||||
Total Conventional portfolio | 5,489,063 | 6,566 | (492,611 | ) | 5,003,018 | 8.4 | 5.63 | % | ||||||||||||||||
Affordable Portfolio: | ||||||||||||||||||||||||
Fixed rate loans payable | 575,034 | 11,272 | (190,094 | ) | 396,212 | 16.0 | 5.30 | % | ||||||||||||||||
Floating rate loans payable | 14,625 | 10 | (8,117 | ) | 6,518 | 6.9 | 3.19 | % | ||||||||||||||||
Total property loans payable | 589,659 | 11,282 | (198,211 | ) | 402,730 | 15.8 | 5.26 | % | ||||||||||||||||
Fixed rate tax-exempt bonds | 74,242 | 33 | (12,964 | ) | 61,311 | 27.0 | 5.01 | % | ||||||||||||||||
Floating rate tax-exempt bonds [1] | 126,264 | — | (2,055 | ) | 124,209 | 26.8 | 3.03 | % | ||||||||||||||||
Total property tax-exempt bond financing | 200,506 | 33 | (15,019 | ) | 185,520 | 26.9 | 3.68 | % | ||||||||||||||||
Total Affordable portfolio | 790,165 | 11,315 | (213,230 | ) | 588,250 | 19.3 | 4.77 | % | ||||||||||||||||
Total property debt | $ | 6,279,228 | $ | 17,881 | $ | (705,841 | ) | $ | 5,591,268 | 9.6 | 5.54 | % | ||||||||||||
Corporate Debt: | ||||||||||||||||||||||||
Term Loan | $ | 350,000 | $ | — | $ | — | $ | 350,000 | — | 2.06 | % [2] | |||||||||||||
Credit Facility | 15,000 | — | — | 15,000 | — | 1.65 | % | |||||||||||||||||
Total corporate debt | $ | 365,000 | $ | — | $ | — | $ | 365,000 | — | 2.05 | % | |||||||||||||
Other borrowings [3] | $ | 90,941 | $ | 576 | $ | (11,615 | ) | $ | 79,902 | |||||||||||||||
Total Debt | $ | 6,735,169 | $ | 18,457 | $ | (717,456 | ) | $ | 6,036,170 | 5.32 | % | |||||||||||||
[1] | Floating rate debt presented above includes $419.7 million of fixed rate debt that is effectively converted to floating rates using total rate of return swaps. At March 31, 2009, the carrying amount of this debt totaled $391.0 million, after recognition of changes in the debt’s fair value in accordance with fair value hedge accounting under SFAS 133. | |
[2] | The Term Loan bears interest at LIBOR plus a spread of 1.50%, or at our option, a base rate equal to the Prime rate. At March 31, 2009, the interest rate on the Term Loan was based on LIBOR. | |
[3] | Other borrowings consists primarily of notes payable collateralized by assets other than direct interests in real estate and obligations under sale and leaseback arrangements accounted for as financings. At March 31, 2009, other borrowings includes $82.3 million in fixed rate obligations with interest rates ranging from zero to 10.0% and $8.6 million in variable rate obligations bearing interest at the Prime rate plus 1.75% to 2.0%. |
Consolidated Property Debt | Aimco Share | |||||||||||||||||||||||||||||||
Percent | Average | |||||||||||||||||||||||||||||||
Amortization | Maturities | Total | of Total | Rate | Amortization | Maturities | Total | |||||||||||||||||||||||||
2009 Q2 | 25,202 | — | 25,202 | 0.4 | % | 21,237 | — | 21,237 | ||||||||||||||||||||||||
2009 Q3 | 26,279 | 133,000 | 159,279 | 2.5 | % | 8.00 | % | 22,229 | 130,367 | 152,596 | ||||||||||||||||||||||
2009 Q4 | 27,155 | 106,104 | 133,259 | 2.1 | % | 3.03 | % | 23,009 | 103,487 | 126,496 | ||||||||||||||||||||||
2010 Q1 | 28,194 | 171,364 | 199,558 | 3.2 | % | 6.63 | % | 23,920 | 169,015 | 192,935 | ||||||||||||||||||||||
2010 Q2 | 28,794 | 56 | 28,850 | 0.5 | % | 7.88 | % | 24,438 | 56 | 24,494 | ||||||||||||||||||||||
2010 Q3 | 29,438 | 11,729 | 41,167 | 0.6 | % | 4.79 | % | 25,056 | 7,570 | 32,626 | ||||||||||||||||||||||
2010 Q4 | 29,757 | 25,197 | 54,954 | 0.9 | % | 6.63 | % | 25,348 | 26,732 | 52,080 | ||||||||||||||||||||||
2011 Q1 | 30,907 | 65 | 30,972 | 0.5 | % | 8.50 | % | 26,459 | 48 | 26,507 | ||||||||||||||||||||||
Balance 2011 | 95,109 | 174,008 | 269,117 | 4.3 | % | 5.68 | % | 81,676 | 98,999 | 180,675 | ||||||||||||||||||||||
2012 [1] | 130,581 | 352,365 | 482,946 | 7.7 | % | 4.56 | % | 112,913 | 311,323 | 424,236 | ||||||||||||||||||||||
2013 | 124,213 | 474,761 | 598,974 | 9.5 | % | 5.60 | % | 107,449 | 438,181 | 545,630 | ||||||||||||||||||||||
Thereafter | 4,254,950 | 67.8 | % | 3,811,756 | ||||||||||||||||||||||||||||
Total property debt: | $ | 6,279,228 | 100.0 | % | $ | 5,591,268 | ||||||||||||||||||||||||||
Percent | Average | |||||||||||||||||||
Amortization | Maturities | Total | of Total | Rate | ||||||||||||||||
Corporate Debt: | ||||||||||||||||||||
2010 [2] | — | 15,000 | 15,000 | 4.1 | % | 1.65 | % | |||||||||||||
2011 | — | 350,000 | 350,000 | 95.9 | % | 2.06 | % | |||||||||||||
Total corporate debt: | $ | — | $ | 365,000 | $ | 365,000 | 100.0 | % | 2.05 | % | ||||||||||
[1] | In September 2007, Aimco entered into a credit facility with a major life company that provides for short-term, fully pre-payable, non-recourse property borrowings of up to $200.0 million. This facility, which matures October 1, 2010, includes two one-year extension options for a $500,000 fee per extension. At March 31, 2009, outstanding borrowings of $112.1 million related to properties classified as held for use are included in 2012 maturities based on assumed exercise of the extension options. | |
[2] | The $635.0 million credit facility that matures May 1, 2009 is included in 2010 due to the one-year extension option Aimco may exercise. |
AIMCO 1st Quarter 2009 | 9 |
Supplemental Schedule 5 (continued) | ||
Selected Debt Structure and Maturity Data As of March 31, 2009 (in millions) (unaudited) | (page 2 of 2) |
YEAR-TO-DATE LOAN CLOSINGS | Original | New | Aimco | |||||||||||||||||||||
Property Loan Type (all | Loan | Loan | Net | Net | Prior | New | ||||||||||||||||||
non-recourse) | Amount [1] | Amount | Proceeds [2] | Proceeds [3] | Rate | Rate | ||||||||||||||||||
Consolidated Loan Closings: | ||||||||||||||||||||||||
Fixed Rate | $ | 110.1 | $ | 164.0 | $ | 58.6 | $ | 55.6 | 5.82 | % | 5.94 | % | ||||||||||||
Floating Rate | — | 8.9 | — | — | — | 4.57 | % | |||||||||||||||||
Totals | $ | 110.1 | $ | 172.9 | $ | 58.6 | $ | 55.6 | 5.82 | % | 5.87 | % | ||||||||||||
[1] | Original Loan Amount represents the principal balance outstanding at the time of the refinance. | |
[2] | Net Proceeds is after transaction costs and prepayment penalties. | |
[3] | Aimco Net Proceeds is after payment of distributions to noncontrolling partners and any release of escrow funds. |
September 30, 2008 | December 31, 2008 | March 31, 2009 | ||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
Corporate debt | $ | 480 | 4.8 | % | $ | 400 | 5.2 | % | $ | 365 | 5.1 | % | ||||||||||||
Property debt (Aimco’s share) | 5,606 | 55.9 | % | 5,599 | 72.7 | % | 5,591 | 77.4 | % | |||||||||||||||
Other borrowings (Aimco’s share) | 82 | 0.8 | % | 96 | 1.2 | % | 80 | 1.1 | % | |||||||||||||||
Total debt | 6,168 | 61.5 | % | 6,095 | 79.1 | % | 6,036 | 83.6 | % | |||||||||||||||
Less cash and restricted cash (Aimco’s share) | (411 | ) | -4.1 | % | (451 | ) | -5.9 | % | (283 | ) | -3.9 | % | ||||||||||||
Net debt | 5,757 | 57.4 | % | 5,644 | 73.2 | % | 5,753 | 79.7 | % | |||||||||||||||
Preferred equity | 786 | 7.8 | % | 785 | 10.2 | % | 783 | 10.8 | % | |||||||||||||||
Common equity at market [1] | 3,492 | 34.8 | % | 1,272 | 16.6 | % | 689 | 9.5 | % | |||||||||||||||
Total capitalization | $ | 10,035 | 100.0 | % | $ | 7,701 | 100.0 | % | $ | 7,225 | 100.0 | % | ||||||||||||
[1] | Common equity at market at March 31, 2009, December 31, 2008 and September 30, 2008, was calculated using 125.820 million, 110.116 million and 99.720 million shares of Class A Common Stock and common partnership units outstanding multiplied by the closing price of $5.48, $11.55 and $35.02 per share/unit as of March 31, 2009, December 31, 2008 and September 30, 2008, respectively. |
Moody’s Investor Service Standard and Poor’s Fitch | Corporate Family Rating Corporate Credit Rating Bank Credit Facility | Ba1 (stable outlook) BB+ (negative) BBB- (negative outlook) |
AIMCO 1st Quarter 2009 | 10 |
Same Store Operating Results
First Quarter 2009 Compared to First Quarter 2008
(unaudited) (in thousands, except site and unit data)
Operating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective | Revenue | Expenses | Net Operating Income | Margin | Occupancy | Rental Rates | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Properties | Units | Units | 1Q 2009 | 1Q 2008 | Growth | 1Q 2009 | 1Q 2008 | Growth | 1Q 2009 | 1Q 2008 | Growth | 1Q 2009 | 1Q 2009 | 1Q 2008 | 1Q 2009 | 1Q 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Markets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles | 11 | 3,407 | 2,856 | $ | 15,626 | $ | 16,506 | -5.3 | % | $ | 5,116 | $ | 5,280 | -3.1 | % | $ | 10,510 | $ | 11,226 | -6.4 | % | 67.3 | % | 93.9 | % | 96.2 | % | $ | 2,032 | $ | 2,090 | |||||||||||||||||||||||||||||||||||||
Orange County | 3 | 443 | 373 | 1,376 | 1,410 | -2.4 | % | 463 | 463 | 0.0 | % | 913 | 947 | -3.6 | % | 66.4 | % | 96.0 | % | 98.7 | % | 1,197 | 1,180 | |||||||||||||||||||||||||||||||||||||||||||||
San Diego | 4 | 1,622 | 1,552 | 5,682 | 5,531 | 2.7 | % | 1,624 | 1,667 | -2.6 | % | 4,058 | 3,864 | 5.0 | % | 71.4 | % | 94.8 | % | 95.0 | % | 1,195 | 1,160 | |||||||||||||||||||||||||||||||||||||||||||||
Southern CA Total | 18 | 5,472 | 4,781 | 22,684 | 23,447 | -3.3 | % | 7,203 | 7,410 | -2.8 | % | 15,481 | 16,037 | -3.5 | % | 68.2 | % | 94.3 | % | 96.0 | % | 1,714 | 1,742 | |||||||||||||||||||||||||||||||||||||||||||||
East Bay | 2 | 413 | 353 | 1,416 | 1,467 | -3.5 | % | 561 | 582 | -3.6 | % | 855 | 885 | -3.4 | % | 60.4 | % | 94.2 | % | 98.3 | % | 1,268 | 1,257 | |||||||||||||||||||||||||||||||||||||||||||||
San Francisco | 2 | 522 | 522 | 2,505 | 2,474 | 1.3 | % | 907 | 815 | 11.3 | % | 1,598 | 1,659 | -3.7 | % | 63.8 | % | 95.4 | % | 98.1 | % | 1,579 | 1,534 | |||||||||||||||||||||||||||||||||||||||||||||
Northern CA Total | 4 | 935 | 875 | 3,921 | 3,941 | -0.5 | % | 1,468 | 1,397 | 5.1 | % | 2,453 | 2,544 | -3.6 | % | 62.6 | % | 94.9 | % | 98.2 | % | 1,443 | 1,412 | |||||||||||||||||||||||||||||||||||||||||||||
Seattle | 1 | 174 | 109 | 388 | 368 | 5.4 | % | 150 | 116 | 29.3 | % | 238 | 252 | -5.6 | % | 61.3 | % | 89.6 | % | 99.0 | % | 1,149 | 1,042 | |||||||||||||||||||||||||||||||||||||||||||||
Pacific Total | 23 | 6,581 | 5,765 | 26,993 | 27,756 | -2.7 | % | 8,821 | 8,923 | -1.1 | % | 18,172 | 18,833 | -3.5 | % | 67.3 | % | 94.3 | % | 96.4 | % | 1,661 | 1,675 | |||||||||||||||||||||||||||||||||||||||||||||
Suburban New York — New Jersey | 7 | 2,578 | 2,143 | 7,867 | 8,108 | -3.0 | % | 2,677 | 2,903 | -7.8 | % | 5,190 | 5,205 | -0.3 | % | 66.0 | % | 94.3 | % | 97.4 | % | 1,170 | 1,167 | |||||||||||||||||||||||||||||||||||||||||||||
Washington — NoVA — MD | 14 | 6,014 | 5,960 | 21,432 | 21,435 | 0.0 | % | 6,735 | 6,887 | -2.2 | % | 14,697 | 14,548 | 1.0 | % | 68.6 | % | 94.9 | % | 96.9 | % | 1,172 | 1,154 | |||||||||||||||||||||||||||||||||||||||||||||
Boston | 11 | 4,147 | 4,147 | 14,751 | 14,752 | 0.0 | % | 5,607 | 5,689 | -1.4 | % | 9,144 | 9,063 | 0.9 | % | 62.0 | % | 94.5 | % | 96.3 | % | 1,193 | 1,175 | |||||||||||||||||||||||||||||||||||||||||||||
Philadelphia | 4 | 1,791 | 1,523 | 6,220 | 6,306 | -1.4 | % | 2,284 | 2,447 | -6.7 | % | 3,936 | 3,859 | 2.0 | % | 63.3 | % | 92.7 | % | 95.8 | % | 1,281 | 1,252 | |||||||||||||||||||||||||||||||||||||||||||||
Northeast Total | 36 | 14,530 | 13,773 | 50,270 | 50,601 | -0.7 | % | 17,303 | 17,926 | -3.5 | % | 32,967 | 32,675 | 0.9 | % | 65.6 | % | 94.4 | % | 96.7 | % | 1,191 | 1,174 | |||||||||||||||||||||||||||||||||||||||||||||
Miami | 5 | 1,548 | 1,344 | 6,036 | 6,174 | -2.2 | % | 2,476 | 2,624 | -5.6 | % | 3,560 | 3,550 | 0.3 | % | 59.0 | % | 93.7 | % | 94.4 | % | 1,396 | 1,454 | |||||||||||||||||||||||||||||||||||||||||||||
Palm Beach/Fort Lauderdale [1] | 8 | 2,431 | 2,281 | 6,874 | 6,711 | 2.4 | % | 2,752 | 2,820 | -2.4 | % | 4,122 | 3,891 | 5.9 | % | 60.0 | % | 95.0 | % | 92.6 | % | 977 | 997 | |||||||||||||||||||||||||||||||||||||||||||||
Orlando [1] | 11 | 2,712 | 2,495 | 5,746 | 5,970 | -3.8 | % | 2,590 | 2,909 | -11.0 | % | 3,156 | 3,061 | 3.1 | % | 54.9 | % | 90.0 | % | 89.9 | % | 769 | 820 | |||||||||||||||||||||||||||||||||||||||||||||
Tampa [1] | 10 | 3,031 | 2,819 | 6,834 | 7,002 | -2.4 | % | 2,998 | 3,064 | -2.2 | % | 3,836 | 3,938 | -2.6 | % | 56.1 | % | 92.6 | % | 93.9 | % | 780 | 808 | |||||||||||||||||||||||||||||||||||||||||||||
Jacksonville [1] | 1 | 144 | 144 | 381 | 386 | -1.3 | % | 169 | 208 | -18.8 | % | 212 | 178 | 19.1 | % | 55.6 | % | 91.9 | % | 92.9 | % | 866 | 893 | |||||||||||||||||||||||||||||||||||||||||||||
Florida Total | 35 | 9,866 | 9,083 | 25,871 | 26,243 | -1.4 | % | 10,985 | 11,625 | -5.5 | % | 14,886 | 14,618 | 1.8 | % | 57.5 | % | 92.6 | % | 92.5 | % | 926 | 962 | |||||||||||||||||||||||||||||||||||||||||||||
Houston | 15 | 4,896 | 4,124 | 8,999 | 8,701 | 3.4 | % | 4,177 | 4,187 | -0.2 | % | 4,822 | 4,514 | 6.8 | % | 53.6 | % | 95.3 | % | 94.8 | % | 685 | 663 | |||||||||||||||||||||||||||||||||||||||||||||
Denver | 10 | 2,877 | 2,315 | 6,161 | 6,164 | 0.0 | % | 2,119 | 2,262 | -6.3 | % | 4,042 | 3,902 | 3.6 | % | 65.6 | % | 94.8 | % | 97.3 | % | 800 | 769 | |||||||||||||||||||||||||||||||||||||||||||||
Phoenix | 16 | 4,065 | 3,671 | 7,526 | 7,809 | -3.6 | % | 3,207 | 3,624 | -11.5 | % | 4,319 | 4,185 | 3.2 | % | 57.4 | % | 92.1 | % | 95.7 | % | 660 | 673 | |||||||||||||||||||||||||||||||||||||||||||||
Dallas — Fort Worth | 7 | 1,762 | 1,426 | 3,182 | 3,105 | 2.5 | % | 1,392 | 1,543 | -9.8 | % | 1,790 | 1,562 | 14.6 | % | 56.3 | % | 93.0 | % | 95.1 | % | 726 | 702 | |||||||||||||||||||||||||||||||||||||||||||||
Atlanta | 4 | 803 | 697 | 1,918 | 1,885 | 1.8 | % | 871 | 793 | 9.8 | % | 1,047 | 1,092 | -4.1 | % | 54.6 | % | 93.4 | % | 95.2 | % | 885 | 872 | |||||||||||||||||||||||||||||||||||||||||||||
Sunbelt Total | 87 | 24,269 | 21,316 | 53,657 | 53,907 | -0.5 | % | 22,751 | 24,034 | -5.3 | % | 30,906 | 29,873 | 3.5 | % | 57.6 | % | 93.4 | % | 94.4 | % | 801 | 807 | |||||||||||||||||||||||||||||||||||||||||||||
Chicago | 13 | 3,304 | 3,127 | 10,922 | 10,953 | -0.3 | % | 4,573 | 4,292 | 6.5 | % | 6,349 | 6,661 | -4.7 | % | 58.1 | % | 93.2 | % | 95.6 | % | 1,125 | 1,099 | |||||||||||||||||||||||||||||||||||||||||||||
Total Target Markets | 159 | 48,684 | 43,981 | 141,842 | 143,217 | -1.0 | % | 53,448 | 55,175 | -3.1 | % | 88,394 | 88,042 | 0.4 | % | 62.3 | % | 93.8 | % | 95.4 | % | 1,057 | 1,056 | |||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Austin | 4 | 1,143 | 1,143 | 2,447 | 2,528 | -3.2 | % | 1,385 | 1,063 | 30.3 | % | 1,062 | 1,465 | -27.5 | % | 43.4 | % | 89.0 | % | 95.4 | % | 728 | 703 | |||||||||||||||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 993 | 3,310 | 3,377 | -2.0 | % | 1,242 | 1,363 | -8.9 | % | 2,068 | 2,014 | 2.7 | % | 62.5 | % | 93.7 | % | 95.4 | % | 1,063 | 1,044 | |||||||||||||||||||||||||||||||||||||||||||||
Indianapolis/Fort Wayne | 9 | 5,341 | 5,142 | 9,974 | 9,890 | 0.8 | % | 4,412 | 4,345 | 1.5 | % | 5,562 | 5,545 | 0.3 | % | 55.8 | % | 93.6 | % | 94.4 | % | 610 | 599 | |||||||||||||||||||||||||||||||||||||||||||||
Nashville | 5 | 1,504 | 1,231 | 3,203 | 3,248 | -1.4 | % | 1,249 | 1,227 | 1.8 | % | 1,954 | 2,021 | -3.3 | % | 61.0 | % | 94.3 | % | 96.6 | % | 823 | 815 | |||||||||||||||||||||||||||||||||||||||||||||
Norfolk/Richmond | 7 | 1,949 | 1,769 | 4,810 | 4,707 | 2.2 | % | 1,675 | 1,582 | 5.9 | % | 3,135 | 3,125 | 0.3 | % | 65.2 | % | 94.1 | % | 92.3 | % | 867 | 865 | |||||||||||||||||||||||||||||||||||||||||||||
Raleigh/Greenville | 5 | 1,233 | 954 | 2,034 | 2,000 | 1.7 | % | 904 | 868 | 4.1 | % | 1,130 | 1,132 | -0.2 | % | 55.6 | % | 93.3 | % | 93.0 | % | 712 | 708 | |||||||||||||||||||||||||||||||||||||||||||||
Other Markets | 32 | 10,644 | 9,783 | 25,057 | 24,945 | 0.4 | % | 11,646 | 11,775 | -1.1 | % | 13,411 | 13,170 | 1.8 | % | 53.5 | % | 92.6 | % | 92.5 | % | 807 | 814 | |||||||||||||||||||||||||||||||||||||||||||||
Total Other | 67 | 22,994 | 21,015 | 50,835 | 50,695 | 0.3 | % | 22,513 | 22,223 | 1.3 | % | 28,322 | 28,472 | -0.5 | % | 55.7 | % | 93.0 | % | 93.5 | % | 772 | 769 | |||||||||||||||||||||||||||||||||||||||||||||
SAME STORE SALES TOTALS | 226 | 71,678 | 64,996 | 192,677 | 193,912 | -0.6 | % | 75,961 | 77,398 | -1.9 | % | 116,716 | 116,514 | 0.2 | % | 60.6 | % | 93.5 | % | 94.8 | % | $ | 966 | $ | 965 | |||||||||||||||||||||||||||||||||||||||||||
Reconciliation to total rental and other property revenues and property operating expense per GAAP Income Statement [2] | 145,416 | 138,980 | 80,528 | 84,366 | 64,888 | 54,614 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total rental and other property revenues and property operating expense per GAAP Income Statement | $ | 338,093 | $ | 332,892 | $ | 156,489 | $ | 161,764 | $ | 181,604 | $ | 171,128 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville are considered part of the Other Florida market. | |
[2] | Includes: (i) noncontrolling interest partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP. |
AIMCO 1st Quarter 2009 | 11 |
First Quarter 2009 Compared to Fourth Quarter 2008
(unaudited) (in thousands, except site and unit data)
Operating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective | Revenue | Expenses | Net Operating Income | Margin | Occupancy | Rental Rates | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Properties | Units | Units | 1Q 2009 | 4Q 2008 | Growth | 1Q 2009 | 4Q 2008 | Growth | 1Q 2009 | 4Q 2008 | Growth | 1Q 2009 | 1Q 2009 | 4Q 2008 | 1Q 2009 | 4Q 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Markets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles | 11 | 3,407 | 2,856 | $ | 15,626 | $ | 16,031 | -2.5 | % | $ | 5,116 | $ | 5,262 | -2.8 | % | $ | 10,510 | $ | 10,769 | -2.4 | % | 67.3 | % | 93.9 | % | 94.3 | % | $ | 2,032 | $ | 2,070 | |||||||||||||||||||||||||||||||||||||
Orange County | 3 | 443 | 373 | 1,376 | 1,380 | -0.3 | % | 463 | 402 | 15.2 | % | 913 | 978 | -6.6 | % | 66.4 | % | 96.0 | % | 95.8 | % | 1,197 | 1,202 | |||||||||||||||||||||||||||||||||||||||||||||
San Diego | 4 | 1,622 | 1,552 | 5,682 | 5,754 | -1.3 | % | 1,624 | 1,631 | -0.4 | % | 4,058 | 4,123 | -1.6 | % | 71.4 | % | 94.8 | % | 96.1 | % | 1,195 | 1,186 | |||||||||||||||||||||||||||||||||||||||||||||
Southern CA Total | 18 | 5,472 | 4,781 | 22,684 | 23,165 | -2.1 | % | 7,203 | 7,295 | -1.3 | % | 15,481 | 15,870 | -2.5 | % | 68.2 | % | 94.3 | % | 94.9 | % | 1,714 | 1,734 | |||||||||||||||||||||||||||||||||||||||||||||
East Bay | 2 | 413 | 353 | 1,416 | 1,463 | -3.2 | % | 561 | 464 | 20.9 | % | 855 | 999 | -14.4 | % | 60.4 | % | 94.2 | % | 96.6 | % | 1,268 | 1,271 | |||||||||||||||||||||||||||||||||||||||||||||
San Francisco | 2 | 522 | 522 | 2,505 | 2,521 | -0.6 | % | 907 | 927 | -2.2 | % | 1,598 | 1,594 | 0.3 | % | 63.8 | % | 95.4 | % | 95.4 | % | 1,579 | 1,577 | |||||||||||||||||||||||||||||||||||||||||||||
Northern CA Total | 4 | 935 | 875 | 3,921 | 3,984 | -1.6 | % | 1,468 | 1,391 | 5.5 | % | 2,453 | 2,593 | -5.4 | % | 62.6 | % | 94.9 | % | 95.9 | % | 1,443 | 1,441 | |||||||||||||||||||||||||||||||||||||||||||||
Seattle | 1 | 174 | 109 | 388 | 393 | -1.3 | % | 150 | 135 | 11.1 | % | 238 | 258 | -7.8 | % | 61.3 | % | 89.6 | % | 95.0 | % | 1,149 | 1,157 | |||||||||||||||||||||||||||||||||||||||||||||
Pacific Total | 23 | 6,581 | 5,765 | 26,993 | 27,542 | -2.0 | % | 8,821 | 8,821 | 0.0 | % | 18,172 | 18,721 | -2.9 | % | 67.3 | % | 94.3 | % | 95.1 | % | 1,661 | 1,677 | |||||||||||||||||||||||||||||||||||||||||||||
Suburban New York — New Jersey | 7 | 2,578 | 2,143 | 7,867 | 8,090 | -2.8 | % | 2,677 | 2,495 | 7.3 | % | 5,190 | 5,595 | -7.2 | % | 66.0 | % | 94.3 | % | 95.8 | % | 1,170 | 1,176 | |||||||||||||||||||||||||||||||||||||||||||||
Washington — NoVA — MD | 14 | 6,014 | 5,960 | 21,432 | 21,322 | 0.5 | % | 6,735 | 6,655 | 1.2 | % | 14,697 | 14,667 | 0.2 | % | 68.6 | % | 94.9 | % | 95.3 | % | 1,172 | 1,176 | |||||||||||||||||||||||||||||||||||||||||||||
Boston | 11 | 4,147 | 4,147 | 14,751 | 14,960 | -1.4 | % | 5,607 | 5,317 | 5.5 | % | 9,144 | 9,643 | -5.2 | % | 62.0 | % | 94.5 | % | 96.1 | % | 1,193 | 1,192 | |||||||||||||||||||||||||||||||||||||||||||||
Philadelphia | 4 | 1,791 | 1,523 | 6,220 | 6,203 | 0.3 | % | 2,284 | 2,229 | 2.5 | % | 3,936 | 3,974 | -1.0 | % | 63.3 | % | 92.7 | % | 95.7 | % | 1,281 | 1,278 | |||||||||||||||||||||||||||||||||||||||||||||
Northeast Total | 36 | 14,530 | 13,773 | 50,270 | 50,575 | -0.6 | % | 17,303 | 16,696 | 3.6 | % | 32,967 | 33,879 | -2.7 | % | 65.6 | % | 94.4 | % | 95.7 | % | 1,191 | 1,193 | |||||||||||||||||||||||||||||||||||||||||||||
Miami | 5 | 1,548 | 1,344 | 6,036 | 6,036 | 0.0 | % | 2,476 | 2,647 | -6.5 | % | 3,560 | 3,389 | 5.0 | % | 59.0 | % | 93.7 | % | 94.3 | % | 1,396 | 1,420 | |||||||||||||||||||||||||||||||||||||||||||||
Palm Beach/Fort Lauderdale [1] | 8 | 2,431 | 2,281 | 6,874 | 6,821 | 0.8 | % | 2,752 | 2,690 | 2.3 | % | 4,122 | 4,131 | -0.2 | % | 60.0 | % | 95.0 | % | 93.1 | % | 977 | 990 | |||||||||||||||||||||||||||||||||||||||||||||
Orlando [1] | 11 | 2,712 | 2,495 | 5,746 | 5,934 | -3.2 | % | 2,590 | 2,762 | -6.2 | % | 3,156 | 3,172 | -0.5 | % | 54.9 | % | 90.0 | % | 91.9 | % | 769 | 780 | |||||||||||||||||||||||||||||||||||||||||||||
Tampa [1] | 10 | 3,031 | 2,819 | 6,834 | 6,903 | -1.0 | % | 2,998 | 3,078 | -2.6 | % | 3,836 | 3,825 | 0.3 | % | 56.1 | % | 92.6 | % | 93.0 | % | 780 | 791 | |||||||||||||||||||||||||||||||||||||||||||||
Jacksonville [1] | 1 | 144 | 144 | 381 | 389 | -2.1 | % | 169 | 128 | 32.0 | % | 212 | 261 | -18.8 | % | 55.6 | % | 91.9 | % | 92.3 | % | 866 | 881 | |||||||||||||||||||||||||||||||||||||||||||||
Florida Total | 35 | 9,866 | 9,083 | 25,871 | 26,083 | -0.8 | % | 10,985 | 11,305 | -2.8 | % | 14,886 | 14,778 | 0.7 | % | 57.5 | % | 92.6 | % | 92.9 | % | 926 | 939 | |||||||||||||||||||||||||||||||||||||||||||||
Houston | 15 | 4,896 | 4,124 | 8,999 | 8,994 | 0.1 | % | 4,177 | 4,265 | -2.1 | % | 4,822 | 4,729 | 2.0 | % | 53.6 | % | 95.3 | % | 95.1 | % | 685 | 679 | |||||||||||||||||||||||||||||||||||||||||||||
Denver | 10 | 2,877 | 2,315 | 6,161 | 6,378 | -3.4 | % | 2,119 | 2,186 | -3.1 | % | 4,042 | 4,192 | -3.6 | % | 65.6 | % | 94.8 | % | 96.5 | % | 800 | 797 | |||||||||||||||||||||||||||||||||||||||||||||
Phoenix | 16 | 4,065 | 3,671 | 7,526 | 7,875 | -4.4 | % | 3,207 | 3,077 | 4.2 | % | 4,319 | 4,798 | -10.0 | % | 57.4 | % | 92.1 | % | 94.6 | % | 660 | 666 | |||||||||||||||||||||||||||||||||||||||||||||
Dallas — Fort Worth | 7 | 1,762 | 1,426 | 3,182 | 3,266 | -2.6 | % | 1,392 | 1,453 | -4.2 | % | 1,790 | 1,813 | -1.3 | % | 56.3 | % | 93.0 | % | 95.2 | % | 726 | 724 | |||||||||||||||||||||||||||||||||||||||||||||
Atlanta | 4 | 803 | 697 | 1,918 | 1,927 | -0.5 | % | 871 | 877 | -0.7 | % | 1,047 | 1,050 | -0.3 | % | 54.6 | % | 93.4 | % | 93.8 | % | 885 | 893 | |||||||||||||||||||||||||||||||||||||||||||||
Sunbelt Total | 87 | 24,269 | 21,316 | 53,657 | 54,523 | -1.6 | % | 22,751 | 23,163 | -1.8 | % | 30,906 | 31,360 | -1.4 | % | 57.6 | % | 93.4 | % | 94.3 | % | 801 | 806 | |||||||||||||||||||||||||||||||||||||||||||||
Chicago | 13 | 3,304 | 3,127 | 10,922 | 10,838 | 0.8 | % | 4,573 | 4,143 | 10.4 | % | 6,349 | 6,695 | -5.2 | % | 58.1 | % | 93.2 | % | 93.4 | % | 1,125 | 1,126 | |||||||||||||||||||||||||||||||||||||||||||||
Total Target Markets | 159 | 48,684 | 43,981 | 141,842 | 143,478 | -1.1 | % | 53,448 | 52,823 | 1.2 | % | 88,394 | 90,655 | -2.5 | % | 62.3 | % | 93.8 | % | 94.7 | % | 1,057 | 1,062 | |||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Austin | 4 | 1,143 | 1,143 | 2,447 | 2,589 | -5.5 | % | 1,385 | 1,101 | 25.8 | % | 1,062 | 1,488 | -28.6 | % | 43.4 | % | 89.0 | % | 94.0 | % | 728 | 726 | |||||||||||||||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 993 | 3,310 | 3,313 | -0.1 | % | 1,242 | 1,043 | 19.1 | % | 2,068 | 2,270 | -8.9 | % | 62.5 | % | 93.7 | % | 95.3 | % | 1,063 | 1,062 | |||||||||||||||||||||||||||||||||||||||||||||
Indianapolis/Fort Wayne | 9 | 5,341 | 5,142 | 9,974 | 10,140 | -1.6 | % | 4,412 | 4,275 | 3.2 | % | 5,562 | 5,865 | -5.2 | % | 55.8 | % | 93.6 | % | 95.5 | % | 610 | 608 | |||||||||||||||||||||||||||||||||||||||||||||
Nashville | 5 | 1,504 | 1,231 | 3,203 | 3,212 | -0.3 | % | 1,249 | 1,258 | -0.7 | % | 1,954 | 1,954 | 0.0 | % | 61.0 | % | 94.3 | % | 93.7 | % | 823 | 834 | |||||||||||||||||||||||||||||||||||||||||||||
Norfolk/Richmond | 7 | 1,949 | 1,769 | 4,810 | 4,875 | -1.3 | % | 1,675 | 1,549 | 8.1 | % | 3,135 | 3,326 | -5.7 | % | 65.2 | % | 94.1 | % | 95.8 | % | 867 | 869 | |||||||||||||||||||||||||||||||||||||||||||||
Raleigh/Greenville | 5 | 1,233 | 954 | 2,034 | 2,053 | -0.9 | % | 904 | 851 | 6.2 | % | 1,130 | 1,202 | -6.0 | % | 55.6 | % | 93.3 | % | 94.4 | % | 712 | 719 | |||||||||||||||||||||||||||||||||||||||||||||
Other Markets | 32 | 10,644 | 9,783 | 25,057 | 25,248 | -0.8 | % | 11,646 | 10,299 | 13.1 | % | 13,411 | 14,949 | -10.3 | % | 53.5 | % | 92.6 | % | 94.3 | % | 807 | 809 | |||||||||||||||||||||||||||||||||||||||||||||
Total Other | 67 | 22,994 | 21,015 | 50,835 | 51,430 | -1.2 | % | 22,513 | 20,376 | 10.5 | % | 28,322 | 31,054 | -8.8 | % | 55.7 | % | 93.0 | % | 94.7 | % | 772 | 773 | |||||||||||||||||||||||||||||||||||||||||||||
SAME STORE SALES TOTALS | 226 | 71,678 | 64,996 | 192,677 | 194,908 | -1.1 | % | 75,961 | 73,199 | 3.8 | % | 116,716 | 121,709 | -4.1 | % | 60.6 | % | 93.5 | % | 94.7 | % | $ | 966 | $ | 969 | |||||||||||||||||||||||||||||||||||||||||||
Reconciliation to total rental and other property revenues and property operating expense per GAAP Income Statement [2] | 145,416 | 144,818 | 80,528 | 78,370 | 64,888 | 66,448 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total rental and other property revenues and property operating expense per GAAP Income Statement | $ | 338,093 | $ | 339,726 | $ | 156,489 | $ | 151,569 | $ | 181,604 | $ | 188,157 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville are considered part of the Other Florida market. | |
[2] | Includes: (i) noncontrolling interest partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP. |
AIMCO 1st Quarter 2009 | 12 |
(unaudited)
Quarter Ended March 31, 2009 | Quarter Ended March 31, 2008 | |||||||||||||||||||||||||||||||||||||||||||||||
Properties | Units | Ownership | Effective Units | % AIV NOI | Average Rent | Properties | Units | Ownership | Effective Units | % AIV NOI | Average Rent | |||||||||||||||||||||||||||||||||||||
Target Markets | ||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles | 16 | 4,261 | 85 | % | 3,611 | 9.2 | % | $ | 2,122 | 16 | 4,262 | 85 | % | 3,611 | 7.8 | % | $ | 2,145 | ||||||||||||||||||||||||||||||
Orange County | 4 | 1,213 | 94 | % | 1,143 | 1.7 | % | 1,544 | 4 | 1,213 | 94 | % | 1,143 | 1.6 | % | 1,499 | ||||||||||||||||||||||||||||||||
San Diego | 6 | 2,144 | 97 | % | 2,074 | 3.6 | % | 1,230 | 6 | 2,144 | 97 | % | 2,074 | 2.8 | % | 1,193 | ||||||||||||||||||||||||||||||||
Southern CA Total | 26 | 7,618 | 90 | % | 6,828 | 14.5 | % | 1,782 | 26 | 7,619 | 90 | % | 6,828 | 12.1 | % | 1,779 | ||||||||||||||||||||||||||||||||
East Bay | 2 | 413 | 85 | % | 353 | 0.6 | % | 1,268 | 3 | 693 | 91 | % | 633 | 0.7 | % | 1,135 | ||||||||||||||||||||||||||||||||
San Francisco | 6 | 773 | 100 | % | 773 | 1.4 | % | 1,539 | 6 | 773 | 100 | % | 773 | 1.2 | % | 1,485 | ||||||||||||||||||||||||||||||||
San Jose | 1 | 224 | 100 | % | 224 | 0.5 | % | 1,630 | — | — | 0 | % | — | 0.0 | % | — | ||||||||||||||||||||||||||||||||
Northern CA Total | 9 | 1,410 | 96 | % | 1,350 | 2.4 | % | 1,472 | 9 | 1,466 | 96 | % | 1,406 | 2.0 | % | 1,319 | ||||||||||||||||||||||||||||||||
Seattle | 3 | 413 | 75 | % | 309 | 0.6 | % | 1,350 | 4 | 468 | 60 | % | 283 | 0.2 | % | 958 | ||||||||||||||||||||||||||||||||
Pacific Total | 38 | 9,441 | 90 | % | 8,487 | 17.4 | % | 1,716 | 39 | 9,553 | 89 | % | 8,517 | 14.4 | % | 1,668 | ||||||||||||||||||||||||||||||||
Manhattan | 22 | 956 | 100 | % | 954 | 2.3 | % | 2,293 | 22 | 956 | 100 | % | 954 | 2.4 | % | 2,617 | ||||||||||||||||||||||||||||||||
Suburban New York / New Jersey | 8 | 3,413 | 87 | % | 2,978 | 4.4 | % | 1,168 | 8 | 3,413 | 87 | % | 2,978 | 3.4 | % | 1,162 | ||||||||||||||||||||||||||||||||
New York Total | 30 | 4,369 | 90 | % | 3,932 | 6.6 | % | 1,418 | 30 | 4,369 | 90 | % | 3,932 | 5.8 | % | 1,492 | ||||||||||||||||||||||||||||||||
Washington — NoVA — MD | 16 | 7,411 | 94 | % | 6,989 | 11.5 | % | 1,197 | 17 | 9,067 | 95 | % | 8,643 | 10.5 | % | 1,120 | ||||||||||||||||||||||||||||||||
Boston | 12 | 4,250 | 100 | % | 4,250 | 6.3 | % | 1,203 | 11 | 4,147 | 100 | % | 4,147 | 4.9 | % | 1,175 | ||||||||||||||||||||||||||||||||
Philadelphia | 7 | 3,885 | 91 | % | 3,538 | 5.4 | % | 1,276 | 9 | 4,432 | 92 | % | 4,084 | 5.0 | % | 1,222 | ||||||||||||||||||||||||||||||||
Northeast Total | 65 | 19,915 | 94 | % | 18,709 | 29.7 | % | 1,262 | 67 | 22,015 | 95 | % | 20,806 | 26.1 | % | 1,223 | ||||||||||||||||||||||||||||||||
Miami | 6 | 2,674 | 92 | % | 2,448 | 4.5 | % | 1,608 | 6 | 2,674 | 92 | % | 2,448 | 4.0 | % | 1,686 | ||||||||||||||||||||||||||||||||
Palm Beach/Fort Lauderdale [1] | 9 | 2,627 | 94 | % | 2,477 | 2.9 | % | 974 | 9 | 2,627 | 93 | % | 2,455 | 2.2 | % | 993 | ||||||||||||||||||||||||||||||||
Orlando [1] | 13 | 3,680 | 92 | % | 3,388 | 2.8 | % | 786 | 14 | 3,888 | 92 | % | 3,596 | 2.3 | % | 821 | ||||||||||||||||||||||||||||||||
Tampa [1] | 11 | 3,307 | 90 | % | 2,991 | 2.7 | % | 791 | 17 | 4,449 | 84 | % | 3,738 | 2.7 | % | 810 | ||||||||||||||||||||||||||||||||
Jacksonville [1] | 4 | 1,643 | 85 | % | 1,404 | 1.2 | % | 828 | 6 | 2,235 | 89 | % | 1,996 | 1.4 | % | 816 | ||||||||||||||||||||||||||||||||
Florida Total | 43 | 13,931 | 91 | % | 12,708 | 14.2 | % | 989 | 52 | 15,873 | 90 | % | 14,233 | 12.6 | % | 994 | ||||||||||||||||||||||||||||||||
Houston | 17 | 5,232 | 84 | % | 4,416 | 3.4 | % | 711 | 30 | 8,008 | 84 | % | 6,722 | 3.7 | % | 655 | ||||||||||||||||||||||||||||||||
Denver | 10 | 2,877 | 80 | % | 2,315 | 2.7 | % | 800 | 14 | 3,431 | 83 | % | 2,836 | 2.5 | % | 762 | ||||||||||||||||||||||||||||||||
Phoenix | 20 | 5,164 | 90 | % | 4,658 | 3.3 | % | 690 | 20 | 5,164 | 93 | % | 4,804 | 2.8 | % | 689 | ||||||||||||||||||||||||||||||||
Dallas — Fort Worth | 7 | 1,762 | 81 | % | 1,425 | 1.2 | % | 726 | 16 | 3,710 | 88 | % | 3,256 | 1.8 | % | 661 | ||||||||||||||||||||||||||||||||
Atlanta | 8 | 1,795 | 80 | % | 1,435 | 1.5 | % | 913 | 13 | 3,505 | 80 | % | 2,808 | 1.8 | % | 814 | ||||||||||||||||||||||||||||||||
Sunbelt Total | 105 | 30,761 | 88 | % | 26,957 | 26.2 | % | 855 | 145 | 39,691 | 87 | % | 34,659 | 25.2 | % | 817 | ||||||||||||||||||||||||||||||||
Chicago | 19 | 5,555 | 93 | % | 5,157 | 6.4 | % | 1,117 | 22 | 6,344 | 89 | % | 5,622 | 5.8 | % | 1,044 | ||||||||||||||||||||||||||||||||
Total Target Markets | 227 | 65,672 | 90 | % | 59,310 | 79.8 | % | 1,125 | 273 | 77,603 | 90 | % | 69,604 | 71.5 | % | 1,057 | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Austin | 4 | 1,143 | 100 | % | 1,143 | 0.7 | % | 728 | 7 | 1,497 | 100 | % | 1,497 | 1.0 | % | 709 | ||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 84 | % | 993 | 1.4 | % | 1,063 | 9 | 1,716 | 81 | % | 1,382 | 1.6 | % | 1,099 | ||||||||||||||||||||||||||||||||
Cincinnati | 2 | 504 | 80 | % | 405 | 0.5 | % | 1,214 | 6 | 1,672 | 74 | % | 1,239 | 1.1 | % | 838 | ||||||||||||||||||||||||||||||||
Colorado Springs CO | 3 | 714 | 92 | % | 654 | 0.6 | % | 670 | 5 | 973 | 85 | % | 826 | 0.5 | % | 654 | ||||||||||||||||||||||||||||||||
Indianapolis / Ft Wayne | 9 | 5,341 | 96 | % | 5,142 | 3.7 | % | 610 | 25 | 9,965 | 92 | % | 9,188 | 4.8 | % | 571 | ||||||||||||||||||||||||||||||||
Inland Empire | 3 | 574 | 90 | % | 514 | 0.5 | % | 859 | 3 | 574 | 86 | % | 493 | 0.4 | % | 868 | ||||||||||||||||||||||||||||||||
Michigan | 7 | 4,150 | 95 | % | 3,931 | 2.6 | % | 661 | 15 | 6,067 | 83 | % | 5,037 | 2.6 | % | 651 | ||||||||||||||||||||||||||||||||
Minneapolis | 2 | 732 | 89 | % | 651 | 1.5 | % | 1,554 | 4 | 1,222 | 84 | % | 1,022 | 1.4 | % | 1,200 | ||||||||||||||||||||||||||||||||
Nashville | 6 | 1,830 | 79 | % | 1,449 | 1.5 | % | 842 | 8 | 2,492 | 80 | % | 1,988 | 1.6 | % | 778 | ||||||||||||||||||||||||||||||||
Non-Target Florida | 11 | 2,404 | 98 | % | 2,358 | 1.7 | % | 707 | 12 | 2,570 | 98 | % | 2,524 | 1.6 | % | 757 | ||||||||||||||||||||||||||||||||
Norfolk / Richmond | 8 | 2,363 | 92 | % | 2,183 | 2.8 | % | 923 | 13 | 3,905 | 88 | % | 3,438 | 3.4 | % | 916 | ||||||||||||||||||||||||||||||||
Providence RI | 3 | 948 | 100 | % | 948 | 1.1 | % | 1,102 | 3 | 948 | 100 | % | 948 | 1.1 | % | 1,105 | ||||||||||||||||||||||||||||||||
Raleigh / Greenville | 7 | 1,599 | 79 | % | 1,268 | 0.9 | % | 697 | 10 | 2,613 | 78 | % | 2,040 | 1.1 | % | 666 | ||||||||||||||||||||||||||||||||
Other Markets [2] | 5 | 1,305 | 58 | % | 751 | 0.7 | % | 755 | 42 | 10,761 | 87 | % | 9,381 | 6.3 | % | 694 | ||||||||||||||||||||||||||||||||
Total Other [3][4] | 75 | 24,787 | 90 | % | 22,390 | 20.2 | % | 781 | 162 | 46,975 | 87 | % | 41,003 | 28.5 | % | 730 | ||||||||||||||||||||||||||||||||
Grand Total | 302 | 90,459 | 90 | % | 81,700 | 100.0 | % | $ | 1,030 | 435 | 124,578 | 89 | % | 110,607 | 100.0 | % | $ | 933 | ||||||||||||||||||||||||||||||
[1] | Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville are considered part of the Other Florida market. | |
[2] | Other Markets includes one property in each of the following markets: Louisville (KY), Lexington (KY), Carbondale (IL), Sacramento (CA) and Lexington Park (MD). | |
[3] | For the quarters ended March 31, 2009 and 2008, Aimco’s conventional portfolio included assets in 19 and 26 markets, respectively, in which Aimco invests on an opportunistic basis or that Aimco intends to exit. | |
[4] | During the quarter ended March 31, 2009, Aimco exited the San Antonio (TX) market. |
AIMCO 1st Quarter 2009 | 13 |
(unaudited)
Number | Number | Aimco | Aimco | |||||||||||||||||||||||||||||||||
of | of | Gross | Cap | Property | Net Sales | Gross | Net | Average | ||||||||||||||||||||||||||||
Properties | Units | Proceeds | Rate[ 2] | Debt | Proceeds[ 3] | Proceeds | Proceeds | Rent | ||||||||||||||||||||||||||||
Conventional [4] | 7 | 1,668 | $ | 69.6 | 7.7 | % | $ | 52.1 | $ | 10.7 | $ | 69.6 | $ | 10.7 | $ | 658 | ||||||||||||||||||||
Affordable | 3 | 324 | 13.5 | 3.8 | % | 8.0 | 3.9 | 5.8 | 3.6 | 612 | ||||||||||||||||||||||||||
Total Dispositions | 10 | 1,992 | $ | 83.1 | 7.1 | % | $ | 60.1 | $ | 14.6 | $ | 75.4 | $ | 14.3 | $ | 652 | ||||||||||||||||||||
[1] | First quarter property sales activity does not include a land sale with total Aimco net proceeds of $1.6 million. | |
[2] | Cap Rate is calculated based on the trailing twelve month NOI prior to sale, less a 5% management fee and a $300 per unit deduction for capital replacements, divided by the gross proceeds. | |
[3] | Net Sales Proceeds are after repayment of existing debt, net working capital settlements, payment of transaction costs and prepayment penalties. | |
[4] | The following table presents selected market information regarding the conventional dispositions during the first quarter 2009: |
Market | Properties | Units | ||||||
Target Markets: | ||||||||
Atlanta | 1 | 720 | ||||||
Total Target Markets | 1 | 720 | ||||||
Other: | ||||||||
Indianapolis | 5 | 722 | ||||||
San Antonio [5] | 1 | 226 | ||||||
Total Other | 6 | 948 | ||||||
Total Conventional Dispositions | 7 | 1,668 | ||||||
[5] | During the first quarter 2009, Aimco exited the San Antonio market. |
AIMCO 1st Quarter 2009 | 14 |
Three Months Ended March 31, 2009
(in thousands, except per unit data)
(unaudited)
Aimco’s Share of | Per Effective | |||||||
Expenditures | Unit | |||||||
Capital Replacements Detail: | ||||||||
Building and grounds | $ | 6,368 | $ | 64 | ||||
Turnover related | 6,984 | 70 | ||||||
Capitalized site payroll and indirect costs | 2,190 | 22 | ||||||
Total Aimco’s share of Capital Replacements | $ | 15,542 | $ | 156 | ||||
Capital Replacements: | ||||||||
Conventional | $ | 14,045 | $ | 169 | ||||
Affordable | 1,497 | $ | 93 | |||||
Total Aimco’s share of Capital Replacements | 15,542 | $ | 156 | |||||
Capital Improvements: | ||||||||
Conventional | 9,995 | $ | 120 | |||||
Affordable | 914 | $ | 57 | |||||
�� | ||||||||
Total Aimco’s share of Capital Improvements | 10,909 | $ | 110 | |||||
Casualties: | ||||||||
Conventional | 2,537 | |||||||
Affordable | (87 | ) | ||||||
Total Aimco’s share of Casualties [2] | 2,450 | |||||||
Redevelopment (see Schedule 10) [3]: | ||||||||
Conventional projects | 21,644 | |||||||
Tax Credit projects | 13,858 | |||||||
Total Aimco’s share of Redevelopment | 35,502 | |||||||
Total Aimco’s share of capital expenditures | 64,403 | |||||||
Plus noncontrolling interest partners’ share of consolidated spending | 4,254 | |||||||
Less Aimco’s share of unconsolidated spending | (287 | ) | ||||||
Capital expenditures per consolidated statement of cash flows | $ | 68,370 | ||||||
[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] | Redevelopment expenditures for conventional and tax credit projects may include costs related to pre-construction or other activities on projects other than those included as active on Schedule 10. Therefore the total costs presented on this schedule may exceed those included as Aimco’s share on Schedule 10. |
AIMCO 1st Quarter 2009 | 15 |
Three Months Ended March 31, 2009
(dollars in millions)
(unaudited)
Actual Expenditures | ||||||||||||||||||||||||
Total | Three Months Ended | |||||||||||||||||||||||
Number of | Number of | Estimated | Inception to | March 31, 2009 | ||||||||||||||||||||
Properties | Units | Expenditures[1] | Date | Actual Amount | Aimco’s Share | |||||||||||||||||||
CONVENTIONAL REDEVELOPMENT PROJECTS | ||||||||||||||||||||||||
Active redevelopment projects at December 31, 2008 | 37 | 13,553 | $ | 594.8 | $ | 502.3 | $ | 20.4 | $ | 19.3 | ||||||||||||||
New redevelopment projects started during period | — | — | — | — | — | — | ||||||||||||||||||
Changes in project scope and estimated costs | — | — | (21.5 | )[2] | — | — | — | |||||||||||||||||
Redevelopment expenditures during period | 37 | 13,553 | 573.3 | 502.3 | 20.4 | 19.3 | ||||||||||||||||||
Projects completed during period | (7 | ) | (3,339 | ) | (119.4 | ) | (119.4 | ) | ||||||||||||||||
Active redevelopment projects at March 31, 2009 [3] | 30 | 10,214 | 453.9 | 382.9 | ||||||||||||||||||||
TAX CREDIT REDEVELOPMENT PROJECTS | ||||||||||||||||||||||||
Active redevelopment projects at December 31, 2008 | 4 | 528 | $ | 38.8 | $ | 22.7 | $ | 5.6 | $ | 5.5 | ||||||||||||||
New redevelopment projects started during period | 3 | 546 | 21.2 | 2.6 | 2.6 | 2.6 | ||||||||||||||||||
Changes in estimated costs | — | — | 1.4 | — | — | — | ||||||||||||||||||
Redevelopment expenditures during period | 7 | 1,074 | 61.4 | 25.3 | 8.2 | 8.1 | ||||||||||||||||||
Projects completed during period | (1 | ) | (88 | ) | (3.7 | ) | (3.5 | ) | ||||||||||||||||
Active redevelopment projects at March 31, 2009 | 6 | 986 | 57.7 | 21.8 | ||||||||||||||||||||
TOTAL ACTIVE REDEVELOPMENT PROJECTS | 36 | 11,200 | $ | 511.6 | $ | 404.7 | ||||||||||||||||||
YEAR-TO-DATE REDEVELOPMENT EXPENDITURES | $ | 28.6 | $ | 27.4 | ||||||||||||||||||||
[1] | Represents the forecasted total expenditures anticipated to be incurred in a redevelopment project. | |
[2] | During the first quarter 2009, Aimco elected not to complete portions of previously planned projects resulting in a reduction in estimated costs. | |
[3] | Targeted return on investment in Conventional Redevelopment projects is 7.5% — 8.5%. |
AIMCO 1st Quarter 2009 | 16 |
(in thousands, unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
2009 | 2008 | |||||||
Current asset management fees [1] | $ | 1,096 | $ | 878 | ||||
Deferred asset management fees [2] | — | 512 | ||||||
Promotes | — | 4,152 | ||||||
Other GP transactional fees | 735 | 444 | ||||||
Total asset management revenues | 1,831 | 5,986 | ||||||
Tax credit syndication fees [3] | — | — | ||||||
Deferred tax credit income [4] | 8,107 | 6,866 | ||||||
Total tax credit revenues | 8,107 | 6,866 | ||||||
Total asset management and tax credit revenues | 9,938 | 12,852 | ||||||
Accretion on discounted notes receivable [5] | (51 | ) | 1,665 | |||||
Land gains | 681 | — | ||||||
Other portfolio management income [6] | 1,416 | 1,334 | ||||||
Total portfolio management income | 2,046 | 2,999 | ||||||
Total investment management revenues | 11,984 | 15,851 | ||||||
Investment management expenses | (3,789 | ) | (4,387 | ) | ||||
Net investment management income (pre-tax) | 8,195 | 11,464 | ||||||
Income taxes [7] | (1,250 | ) | (2,477 | ) | ||||
Net investment management income (after tax) | $ | 6,945 | $ | 8,987 | ||||
Remainder | Year Ending December 31, | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | ||||||||||||||||||||||
Amortization of deferred income [8] | $ | 26,276 | $ | 29,742 | $ | 29,117 | $ | 29,124 | $ | 27,713 | $ | 95,016 | $ | 236,988 | ||||||||||||||
Income taxes [9] | (10,248 | ) | (11,599 | ) | (11,356 | ) | (11,358 | ) | (10,808 | ) | (37,056 | ) | (92,425 | ) | ||||||||||||||
Projected income, net of tax | $ | 16,028 | $ | 18,143 | $ | 17,761 | $ | 17,766 | $ | 16,905 | $ | 57,960 | $ | 144,563 | ||||||||||||||
[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. Tax credit income is recognized as tax credits are delivered to the investors, generally over a period of ten years. See Summary of Projected Tax Credit Income. | |
[5] | Aimco holds certain loans extended by predecessors whose positions were 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. Accretion on discounted notes receivable is included in interest income in Aimco’s consolidated statements of income. During the quarter ended March 31, 2009, Aimco revised its estimate of the timing and amount of payment on certain discounted notes and as a result recorded adjustments totaling $0.8 million to accretion income. | |
[6] | Other portfolio management income during 2009 and 2008 includes interest income received under total rate of return swaps, which is included in interest expense in Aimco’s consolidated statements of income. | |
[7] | Investment management 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. Income taxes are recalculated each period. | |
[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 1st Quarter 2009 | 17 |
As of March 31, 2009
(unaudited)
Number of | Number of | Effective | Average | |||||||||||||
Properties | Units | Units | Ownership | |||||||||||||
Conventional Real Estate Portfolio: | ||||||||||||||||
Wholly-owned consolidated properties | 206 | 61,281 | 61,281 | 100 | % | |||||||||||
Partially-owned consolidated properties | 95 | 29,761 | 21,277 | 71 | % | |||||||||||
Partially-owned unconsolidated properties | 2 | 732 | 264 | 36 | % | |||||||||||
Total | 303 | 91,774 | 82,822 | 90 | % | |||||||||||
Affordable Real Estate Portfolio: | ||||||||||||||||
Wholly-owned consolidated properties | 88 | 12,192 | 12,192 | 100 | % | |||||||||||
Partially-owned consolidated properties | 115 | 12,489 | 3,791 | 30 | % | |||||||||||
Partially-owned unconsolidated properties | 82 | 8,699 | 1,587 | 18 | % | |||||||||||
Total | 285 | 33,380 | 17,570 | 53 | % | |||||||||||
Total Owned Real Estate Portfolio: | ||||||||||||||||
Wholly-owned consolidated properties | 294 | 73,473 | 73,473 | 100 | % | |||||||||||
Partially-owned consolidated properties | 210 | 42,250 | 25,068 | 59 | % | |||||||||||
Partially-owned unconsolidated properties | 84 | 9,431 | 1,851 | 20 | % | |||||||||||
Total | 588 | 125,154 | 100,392 | 80 | % | |||||||||||
Management Contracts: | ||||||||||||||||
Property-managed for third parties | 27 | 2,463 | ||||||||||||||
Asset-managed | 361 | 32,501 | ||||||||||||||
Total | 388 | 34,964 | ||||||||||||||
Total Portfolio | 976 | 160,118 | ||||||||||||||
AIMCO 1st Quarter 2009 | 18 |
AIMCO 1st Quarter 2009 | 19 |