Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 03, 2015 | |
Entity Registrant Name | APARTMENT INVESTMENT & MANAGEMENT CO | |
Entity Central Index Key | 922,864 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 156,423,545 | |
AIMCO PROPERTIES, L.P [Member] | ||
Entity Registrant Name | AIMCO PROPERTIES LP | |
Entity Central Index Key | 926,660 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 163,972,576 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Buildings and improvements | $ 6,421,572 | $ 6,259,318 |
Land | 1,878,350 | 1,885,640 |
Total real estate | 8,299,922 | 8,144,958 |
Accumulated depreciation | (2,719,651) | (2,672,179) |
Net real estate ($342,568 and $360,160 related to VIEs) | 5,580,271 | 5,472,779 |
Cash and cash equivalents ($19,944 and $17,108 related to VIEs) | 45,241 | 28,971 |
Restricted cash ($34,930 and $36,196 related to VIEs) | 93,230 | 91,445 |
Other assets ($170,046 and $182,108 related to VIEs) | 478,961 | 476,727 |
Assets held for sale | 19,959 | 27,106 |
Total assets | 6,217,662 | 6,097,028 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt ($327,403 and $336,471 related to VIEs) | 3,807,699 | 4,022,809 |
Revolving credit facility borrowings | 128,200 | 112,330 |
Total indebtedness | 3,935,899 | 4,135,139 |
Accounts payable | 37,311 | 41,919 |
Accrued liabilities and other ($172,290 and $135,644 related to VIEs) | 324,746 | 279,077 |
Deferred income | 65,694 | 81,882 |
Liabilities related to assets held for sale | 17,311 | 28,969 |
Total liabilities | 4,380,961 | 4,566,986 |
Preferred noncontrolling interests in Aimco Operating Partnership | $ 87,937 | $ 87,937 |
Commitments and contingencies (Note 6) | ||
Equity/Partners' Capital: | ||
Perpetual Preferred Stock | $ 159,126 | $ 186,126 |
Common Stock, $0.01 par value, 500,787,260 shares authorized, 156,421,276 and 146,403,274 shares issued/outstanding at September 30, 2015 and December 31, 2014, respectively | 1,564 | 1,464 |
Additional paid-in capital | 4,064,729 | 3,696,143 |
Accumulated other comprehensive loss | (6,810) | (6,456) |
Distributions in excess of earnings | (2,616,919) | (2,649,542) |
Total Aimco equity | 1,601,690 | 1,227,735 |
Noncontrolling interests in consolidated real estate partnerships | 164,439 | 233,296 |
Common noncontrolling interests in Aimco Operating Partnership | (17,365) | (18,926) |
Total equity | 1,748,764 | 1,442,105 |
Total liabilities and equity/partners' capital | 6,217,662 | 6,097,028 |
AIMCO PROPERTIES, L.P [Member] | ||
ASSETS | ||
Buildings and improvements | 6,421,572 | 6,259,318 |
Land | 1,878,350 | 1,885,640 |
Total real estate | 8,299,922 | 8,144,958 |
Accumulated depreciation | (2,719,651) | (2,672,179) |
Net real estate ($342,568 and $360,160 related to VIEs) | 5,580,271 | 5,472,779 |
Cash and cash equivalents ($19,944 and $17,108 related to VIEs) | 45,241 | 28,971 |
Restricted cash ($34,930 and $36,196 related to VIEs) | 93,230 | 91,445 |
Other assets ($170,046 and $182,108 related to VIEs) | 478,961 | 476,727 |
Assets held for sale | 19,959 | 27,106 |
Total assets | 6,217,662 | 6,097,028 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt ($327,403 and $336,471 related to VIEs) | 3,807,699 | 4,022,809 |
Revolving credit facility borrowings | 128,200 | 112,330 |
Total indebtedness | 3,935,899 | 4,135,139 |
Accounts payable | 37,311 | 41,919 |
Accrued liabilities and other ($172,290 and $135,644 related to VIEs) | 324,746 | 279,077 |
Deferred income | 65,694 | 81,882 |
Liabilities related to assets held for sale | 17,311 | 28,969 |
Total liabilities | 4,380,961 | 4,566,986 |
Preferred noncontrolling interests in Aimco Operating Partnership | $ 87,937 | $ 87,937 |
Commitments and contingencies (Note 6) | ||
Equity/Partners' Capital: | ||
Preferred units | $ 159,126 | $ 186,126 |
General Partner and Special Limited Partner | 1,442,564 | 1,041,609 |
Limited Partners | (17,365) | (18,926) |
Partners’ capital attributable to the Aimco Operating Partnership | 1,584,325 | 1,208,809 |
Noncontrolling interests in consolidated real estate partnerships | 164,439 | 233,296 |
Total partners’ capital | 1,748,764 | 1,442,105 |
Total liabilities and equity/partners' capital | $ 6,217,662 | $ 6,097,028 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Real estate, net | $ 5,580,271 | $ 5,472,779 |
Cash and cash equivalents | 45,241 | 28,971 |
Restricted cash | 93,230 | 91,445 |
Other assets | 478,961 | 476,727 |
Non-recourse property debt | 3,807,699 | 4,022,809 |
Accrued liabilities and other | $ 324,746 | $ 279,077 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 500,787,260 | 500,787,260 |
Common Stock, shares issued (in shares) | 156,421,276 | 146,403,274 |
Common Stock, shares outstanding (in shares) | 156,421,276 | 146,403,274 |
AIMCO PROPERTIES, L.P [Member] | ||
Real estate, net | $ 5,580,271 | $ 5,472,779 |
Cash and cash equivalents | 45,241 | 28,971 |
Restricted cash | 93,230 | 91,445 |
Other assets | 478,961 | 476,727 |
Non-recourse property debt | 3,807,699 | 4,022,809 |
Accrued liabilities and other | 324,746 | 279,077 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Real estate, net | 342,568 | 360,160 |
Cash and cash equivalents | 19,944 | 17,108 |
Restricted cash | 34,930 | 36,196 |
Other assets | 170,046 | 182,108 |
Non-recourse property debt | 327,403 | 336,471 |
Accrued liabilities and other | 172,290 | 135,644 |
Variable Interest Entity, Primary Beneficiary [Member] | AIMCO PROPERTIES, L.P [Member] | ||
Real estate, net | 342,568 | 360,160 |
Cash and cash equivalents | 19,944 | 17,108 |
Restricted cash | 34,930 | 36,196 |
Other assets | 170,046 | 182,108 |
Non-recourse property debt | 327,403 | 336,471 |
Accrued liabilities and other | $ 172,290 | $ 135,644 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
REVENUES | ||||
Rental and other property revenues | $ 240,382 | $ 239,873 | $ 717,308 | $ 719,501 |
Tax credit and asset management revenues | 6,005 | 6,970 | 18,127 | 22,684 |
Total revenues | 246,387 | 246,843 | 735,435 | 742,185 |
OPERATING EXPENSES | ||||
Property operating expenses | 88,621 | 95,240 | 272,043 | 289,008 |
Investment management expenses | 1,905 | 1,279 | 4,594 | 3,552 |
Depreciation and amortization | 77,237 | 69,437 | 226,819 | 211,143 |
Impairment of Real Estate | 0 | 1,413 | 0 | 1,413 |
General and administrative expenses | 11,013 | 10,658 | 33,727 | 31,304 |
Other expenses, net | 3,590 | 1,349 | 7,521 | 7,223 |
Total operating expenses | 182,366 | 179,376 | 544,704 | 543,643 |
Operating income | 64,021 | 67,467 | 190,731 | 198,542 |
Interest income | 1,737 | 1,787 | 5,167 | 5,187 |
Interest expense | (48,285) | (57,806) | (151,410) | (168,613) |
Other, net | (1,983) | 1,733 | 631 | (57) |
Income before income taxes and gain on dispositions | 15,490 | 13,181 | 45,119 | 35,059 |
Income tax benefit | 8,279 | 5,005 | 21,014 | 13,110 |
Income from continuing operations | 23,769 | 18,186 | 66,133 | 48,169 |
Gain on dispositions of real estate, net of tax | 0 | 126,329 | 130,474 | 262,483 |
Net income | 23,769 | 144,515 | 196,607 | 310,652 |
Noncontrolling interests: | ||||
Net loss (income) attributable to noncontrolling interests in consolidated real estate partnerships | 785 | (8,337) | (4,082) | (21,952) |
Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership | (1,736) | (1,601) | (5,208) | (4,808) |
Net income attributable to common noncontrolling interests in Aimco Operating Partnership | (893) | (6,549) | (8,263) | (13,895) |
Net income attributable to noncontrolling interests | (1,844) | (16,487) | (17,553) | (40,655) |
Net income attributable to the company | 21,925 | 128,028 | 179,054 | 269,997 |
Net income attributable to the company's preferred equity holders | (2,757) | (2,875) | (9,037) | (5,087) |
Net loss (income) attributable to participating securities | 11 | (447) | (690) | (962) |
Net income attributable to the company's common equity holders | $ 19,179 | $ 124,706 | $ 169,327 | $ 263,948 |
Earnings attributable to the company per common share/unit – basic (Note 7): | ||||
Income from continuing operations (in dollars per share/unit) | $ 0.12 | $ 0.86 | $ 1.09 | $ 1.81 |
Net Income (in dollars per share/unit) | 0.12 | 0.86 | 1.09 | 1.81 |
Earnings attributable to the company per common share/unit – diluted (Note 7): | ||||
Income from continuing operations (in dollars per share/unit) | 0.12 | 0.85 | 1.09 | 1.81 |
Net income (in dollars per share/unit) | 0.12 | 0.85 | 1.09 | 1.81 |
Dividends declared per common share/unit | $ 0.30 | $ 0.26 | $ 0.88 | $ 0.78 |
AIMCO PROPERTIES, L.P [Member] | ||||
REVENUES | ||||
Rental and other property revenues | $ 240,382 | $ 239,873 | $ 717,308 | $ 719,501 |
Tax credit and asset management revenues | 6,005 | 6,970 | 18,127 | 22,684 |
Total revenues | 246,387 | 246,843 | 735,435 | 742,185 |
OPERATING EXPENSES | ||||
Property operating expenses | 88,621 | 95,240 | 272,043 | 289,008 |
Investment management expenses | 1,905 | 1,279 | 4,594 | 3,552 |
Depreciation and amortization | 77,237 | 69,437 | 226,819 | 211,143 |
Impairment of Real Estate | 0 | 1,413 | 0 | 1,413 |
General and administrative expenses | 11,013 | 10,658 | 33,727 | 31,304 |
Other expenses, net | 3,590 | 1,349 | 7,521 | 7,223 |
Total operating expenses | 182,366 | 179,376 | 544,704 | 543,643 |
Operating income | 64,021 | 67,467 | 190,731 | 198,542 |
Interest income | 1,737 | 1,787 | 5,167 | 5,187 |
Interest expense | (48,285) | (57,806) | (151,410) | (168,613) |
Other, net | (1,983) | 1,733 | 631 | (57) |
Income before income taxes and gain on dispositions | 15,490 | 13,181 | 45,119 | 35,059 |
Income tax benefit | 8,279 | 5,005 | 21,014 | 13,110 |
Income from continuing operations | 23,769 | 18,186 | 66,133 | 48,169 |
Gain on dispositions of real estate, net of tax | 0 | 126,329 | 130,474 | 262,483 |
Net income | 23,769 | 144,515 | 196,607 | 310,652 |
Noncontrolling interests: | ||||
Net loss (income) attributable to noncontrolling interests in consolidated real estate partnerships | 785 | (8,337) | (4,082) | (21,952) |
Net income attributable to noncontrolling interests | 785 | (8,337) | (4,082) | (21,952) |
Net income attributable to the company | 24,554 | 136,178 | 192,525 | 288,700 |
Net income attributable to the company's preferred equity holders | (4,493) | (4,476) | (14,245) | (9,895) |
Net loss (income) attributable to participating securities | 11 | (447) | (690) | (962) |
Net income attributable to the company's common equity holders | $ 20,072 | $ 131,255 | $ 177,590 | $ 277,843 |
Earnings attributable to the company per common share/unit – basic (Note 7): | ||||
Income from continuing operations (in dollars per share/unit) | $ 0.12 | $ 0.86 | $ 1.09 | $ 1.81 |
Net Income (in dollars per share/unit) | 0.12 | 0.86 | 1.09 | 1.81 |
Earnings attributable to the company per common share/unit – diluted (Note 7): | ||||
Income from continuing operations (in dollars per share/unit) | 0.12 | 0.85 | 1.09 | 1.81 |
Net income (in dollars per share/unit) | 0.12 | 0.85 | 1.09 | 1.81 |
Dividends declared per common share/unit | $ 0.30 | $ 0.26 | $ 0.88 | $ 0.78 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 23,769 | $ 144,515 | $ 196,607 | $ 310,652 |
Other comprehensive (loss) income: | ||||
Unrealized losses on interest rate swaps | (892) | (61) | (1,517) | (1,488) |
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss | 418 | 421 | 1,260 | 1,265 |
Unrealized gains (losses) on debt securities classified as available-for-sale | 1,111 | (566) | (51) | (618) |
Other comprehensive income (loss) | 637 | (206) | (308) | (841) |
Comprehensive income | 24,406 | 144,309 | 196,299 | 309,811 |
Comprehensive income attributable to noncontrolling interests | (1,888) | (16,555) | (17,597) | (40,728) |
Comprehensive income attributable to Aimco/Operating Partnership | 22,518 | 127,754 | 178,702 | 269,083 |
AIMCO PROPERTIES, L.P [Member] | ||||
Net income | 23,769 | 144,515 | 196,607 | 310,652 |
Other comprehensive (loss) income: | ||||
Unrealized losses on interest rate swaps | (892) | (61) | (1,517) | (1,488) |
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss | 418 | 421 | 1,260 | 1,265 |
Unrealized gains (losses) on debt securities classified as available-for-sale | 1,111 | (566) | (51) | (618) |
Other comprehensive income (loss) | 637 | (206) | (308) | (841) |
Comprehensive income | 24,406 | 144,309 | 196,299 | 309,811 |
Comprehensive income attributable to noncontrolling interests | 770 | (8,419) | (4,143) | (22,073) |
Comprehensive income attributable to Aimco/Operating Partnership | $ 25,176 | $ 135,890 | $ 192,156 | $ 287,738 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 196,607 | $ 310,652 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 226,819 | 211,143 |
Gain on dispositions of real estate, net of tax | (130,474) | (262,483) |
Other adjustments | (17,137) | 204 |
Net changes in operating assets and operating liabilities | (17,371) | (26,127) |
Net cash provided by operating activities | 258,444 | 233,389 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of real estate | (142,207) | (132,463) |
Capital expenditures | (277,575) | (277,214) |
Proceeds from dispositions of real estate | 227,911 | 564,687 |
Purchases of corporate assets | (4,625) | (6,405) |
Change in restricted cash | 2,900 | (33,784) |
Other investing activities | (22,123) | 854 |
Net cash (used in) provided by investing activities | (215,719) | 115,675 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from non-recourse property debt | 232,994 | 83,130 |
Principal repayments on non-recourse property debt | (418,744) | (376,713) |
Net borrowings (repayments) on revolving credit facility | 15,870 | (35,950) |
Proceeds from issuance of preferred securities | 0 | 123,620 |
Proceeds from issuance of common securities | 366,580 | 0 |
Redemption and repurchase of preferred securities | (27,000) | (9,516) |
Payment of dividends to holders of preferred securities | (8,342) | (3,481) |
Payment of dividends to holders of Common Stock | (137,268) | (113,988) |
Payment of distributions to noncontrolling interests | (46,026) | (42,969) |
Other financing activities | (4,519) | 238 |
Net cash used in financing activities | (26,455) | (375,629) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 16,270 | (26,565) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 28,971 | 55,751 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 45,241 | 29,186 |
AIMCO PROPERTIES, L.P [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 196,607 | 310,652 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 226,819 | 211,143 |
Gain on dispositions of real estate, net of tax | (130,474) | (262,483) |
Other adjustments | (17,137) | 204 |
Net changes in operating assets and operating liabilities | (17,371) | (26,127) |
Net cash provided by operating activities | 258,444 | 233,389 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of real estate | (142,207) | (132,463) |
Capital expenditures | (277,575) | (277,214) |
Proceeds from dispositions of real estate | 227,911 | 564,687 |
Purchases of corporate assets | (4,625) | (6,405) |
Change in restricted cash | 2,900 | (33,784) |
Other investing activities | (22,123) | 854 |
Net cash (used in) provided by investing activities | (215,719) | 115,675 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from non-recourse property debt | 232,994 | 83,130 |
Principal repayments on non-recourse property debt | (418,744) | (376,713) |
Net borrowings (repayments) on revolving credit facility | 15,870 | (35,950) |
Proceeds from issuance of preferred securities | 0 | 123,620 |
Proceeds from issuance of common securities | 366,580 | 0 |
Redemption and repurchase of preferred securities | (27,000) | (9,516) |
Payment of dividends to holders of preferred securities | (13,550) | (8,289) |
Payment of distributions to General Partner and Special Limited Partner | (137,268) | (113,988) |
Payment of distributions to Limited Partners | (6,701) | (6,020) |
Payment of distributions to noncontrolling interests | (34,117) | (32,141) |
Other financing activities | (4,519) | 238 |
Net cash used in financing activities | (26,455) | (375,629) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 16,270 | (26,565) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 28,971 | 55,751 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 45,241 | $ 29,186 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Apartment Investment and Management Company, or Aimco, is a Maryland corporation incorporated on January 10, 1994. Aimco is a self-administered and self-managed real estate investment trust, or REIT. AIMCO Properties, L.P., or the Aimco Operating Partnership, is a Delaware limited partnership formed on May 16, 1994, to conduct our business, which is focused on the ownership and management of quality apartment communities located in the largest coastal and job growth markets in the United States. Aimco, and through its wholly-owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, owns a majority of the ownership interests in the Aimco Operating Partnership. Aimco conducts all of its business and owns all of its assets through the Aimco Operating Partnership. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are referred to as “OP Units.” OP Units include common partnership units, high performance partnership units and partnership preferred units, which we refer to as common OP Units, HPUs and preferred OP Units, respectively. We also refer to HPUs as common OP Unit equivalents. At September 30, 2015 , after eliminations for units held by consolidated entities, the Aimco Operating Partnership had 164,005,054 common partnership units and equivalents outstanding. At September 30, 2015 , Aimco owned 156,421,276 of the common partnership units ( 95.4% of the common partnership units and equivalents) of the Aimco Operating Partnership and Aimco had outstanding an equal number of shares of its Class A Common Stock, which we refer to as Common Stock. Except as the context otherwise requires, “we,” “our” and “us” refer to Aimco, the Aimco Operating Partnership and their consolidated subsidiaries, collectively. As of September 30, 2015 , we owned an equity interest in 143 conventional apartment communities with 41,429 apartment homes and 56 affordable apartment communities with 8,685 apartment homes. Of these, we consolidated 139 conventional apartment communities with 41,287 apartment homes and 49 affordable apartment communities with 7,998 apartment homes. Conventional and affordable apartment communities generated 90% and 10% , respectively, of the proportionate property net operating income (as defined in Note 8 and excluding amounts related to apartment communities sold or classified as held for sale) during the nine months ended September 30, 2015 . |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2015 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . The balance sheets of Aimco and the Aimco Operating Partnership at December 31, 2014 , have been derived from their respective audited financial statements at that date, but do not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the financial statements and notes thereto included in Aimco’s and the Aimco Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2014 . Except where indicated, the footnotes refer to both Aimco and the Aimco Operating Partnership. Principles of Consolidation Aimco’s accompanying condensed consolidated financial statements include the accounts of Aimco, the Aimco Operating Partnership, and their consolidated subsidiaries. The Aimco Operating Partnership’s condensed consolidated financial statements include the accounts of the Aimco Operating Partnership and its consolidated entities. We consolidate all variable interest entities for which we are the primary beneficiary. Generally, a variable interest entity, or VIE, is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to our business activities and the business activities of the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. As of September 30, 2015 , we were the primary beneficiary of, and therefore consolidated, 61 VIEs, which owned 47 apartment communities with 7,459 apartment homes. Substantially all these VIEs are partnerships that are involved in the ownership or operation of qualifying affordable housing apartment communities and which are structured to provide for the pass-through of low-income housing tax credits and deductions to their partners. Real estate with a carrying value of $342.6 million collateralized $327.4 million of debt of those VIEs. Any significant amounts of assets and liabilities related to our consolidated VIEs are identified parenthetically on our accompanying condensed consolidated balance sheets. The creditors of the consolidated VIEs do not have recourse to our general credit. In addition to the consolidated VIEs discussed above, at September 30, 2015 , our consolidated financial statements included certain consolidated and unconsolidated VIEs that are part of the legacy asset management business we sold during 2012, which is discussed in Note 4 . The assets and liabilities related to these consolidated and unconsolidated VIEs are each condensed into single line items within other assets and accrued liabilities and other, respectively, in our condensed consolidated balance sheets. Generally, we consolidate real estate partnerships and other entities that are not variable interest entities when we own, directly or indirectly, a majority voting interest in the entity or are otherwise able to control the entity. All significant intercompany balances and transactions have been eliminated in consolidation. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are reflected in Aimco’s accompanying balance sheets as noncontrolling interests in Aimco Operating Partnership. Interests in partnerships consolidated into the Aimco Operating Partnership that are held by third parties are reflected in our accompanying balance sheets as noncontrolling interests in consolidated real estate partnerships. The assets of consolidated real estate partnerships owned or controlled by the Aimco Operating Partnership generally are not available to pay creditors of Aimco or the Aimco Operating Partnership. Temporary Equity and Partners’ Capital The following table presents a reconciliation of the Aimco Operating Partnership’s Preferred OP Units from December 31, 2014 to September 30, 2015 (in thousands). These amounts are presented within temporary equity in Aimco’s condensed consolidated balance sheets as preferred noncontrolling interests in the Aimco Operating Partnership, and within temporary capital in the Aimco Operating Partnership’s condensed consolidated balance sheets as redeemable preferred units. Balance, December 31, 2014 $ 87,937 Distributions to preferred unitholders (5,208 ) Net income 5,208 Balance, September 30, 2015 $ 87,937 Aimco Equity (including Noncontrolling Interests) The following table presents a reconciliation of Aimco’s consolidated permanent equity accounts from December 31, 2014 to September 30, 2015 (in thousands): Aimco Equity Noncontrolling interests in consolidated real estate partnerships Common noncontrolling interests in Aimco Operating Partnership Total Equity Balance, December 31, 2014 $ 1,227,735 $ 233,296 $ (18,926 ) $ 1,442,105 Issuance of Common Stock 366,580 — — 366,580 Repurchase of preferred stock (27,000 ) — — (27,000 ) Preferred stock dividends (8,342 ) — — (8,342 ) Common dividends and distributions (137,493 ) (72,873 ) (6,701 ) (217,067 ) Redemptions of common OP Units — — (2,612 ) (2,612 ) Amortization of stock-based compensation cost 5,572 — — 5,572 Effect of changes in ownership for consolidated entities (4,328 ) — 2,628 (1,700 ) Change in accumulated other comprehensive loss (352 ) 61 (17 ) (308 ) Other 264 (127 ) — 137 Net income 179,054 4,082 8,263 191,399 Balance, September 30, 2015 $ 1,601,690 $ 164,439 $ (17,365 ) $ 1,748,764 Partners’ Capital attributable to the Aimco Operating Partnership The following table presents a reconciliation of the consolidated partners’ capital balances in permanent capital that are attributable to the Aimco Operating Partnership from December 31, 2014 to September 30, 2015 (in thousands): Partners’ capital attributable to the Partnership Balance, December 31, 2014 $ 1,208,809 Issuance of common partnership units to Aimco 366,580 Repurchase of Preferred Units from Aimco (27,000 ) Distributions to preferred units held by Aimco (8,342 ) Distributions to common units held by Aimco (137,493 ) Distributions to common units held by Limited Partners (6,701 ) Redemption of common OP Units (2,612 ) Amortization of Aimco stock-based compensation cost 5,572 Effect of changes in ownership for consolidated entities (1,700 ) Change in accumulated other comprehensive loss (369 ) Other 264 Net income 187,317 Balance, September 30, 2015 $ 1,584,325 A separate reconciliation of noncontrolling interests in consolidated real estate partnerships and total partners’ capital for the Aimco Operating Partnership is not presented as these amounts are identical to the corresponding noncontrolling interests in consolidated real estate partnerships and total equity for Aimco, which are presented above. Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates. Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update 2015-02, which significantly changes the consolidation analysis required under GAAP for VIEs. Under this revised guidance, it is less likely that certain fees, such as asset management fees, would be considered variable interests and therefore fewer entities may be considered VIEs. Additionally, limited partnerships may no longer be viewed as VIEs if the limited partners hold certain rights over the general partner. Alternatively, limited partnerships not previously viewed as VIEs may now be considered VIEs in the absence of such rights. For public companies, the guidance in ASU 2015-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. We have not yet determined the effect ASU 2015-02 will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 to revise the presentation of debt issuance costs. Under ASU 2015-03, entities generally will present debt issuance costs in their balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the deferred costs will continue to be included in interest expense. In August 2015, the FASB issued ASU 2015-15 to clarify the SEC staff’s position regarding the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements due to the lack of guidance on this topic in the recently issued ASU 2015-03. The SEC staff recently announced that it would not object to an entity deferring and presenting debt issuance costs associated with line-of-credit arrangements as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings under the arrangement. For public companies, the guidance in ASUs 2015-03 and 2015-15, which is to be applied retrospectively to all prior periods, is effective for fiscal years beginning after December 15, 2015, with early adoption permitted for financial statements that have not been previously issued. We do not expect ASUs 2015-03 and 2015-15 to have a significant effect on our consolidated financial statements. |
Disposals and Assets Held for S
Disposals and Assets Held for Sale | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposals and Assets Held for Sale | Disposals and Assets Held for Sale During the three months ended September 30, 2015 , we did not sell any consolidated apartment communities, and during the nine months ended September 30, 2015 , we sold eight consolidated apartment communities with an aggregate of 2,891 apartment homes and during the year ended December 31, 2014 , we sold 30 consolidated apartment communities with an aggregate of 9,067 apartment homes. In addition to the apartment communities we sold, we are currently marketing for sale certain apartment communities that are inconsistent with our long-term investment strategy. At the end of each reporting period, we evaluate whether such apartment communities meet the criteria to be classified as held for sale. As of September 30, 2015 , we had two apartment communities with 476 apartment homes classified as held for sale. The results of operations for the apartment communities sold or classified as held for sale are reflected within income from continuing operations in our condensed consolidated statements of operations. The apartment communities sold or classified as held for sale during 2015 generated $1.1 million and $6.6 million of net income (before gains on dispositions) during the three and nine months ended September 30, 2015 , respectively. The apartment communities sold or classified as held for sale during 2015 and 2014 , generated $6.7 million and $29.0 million of net income (before gains on dispositions) during the three and nine months ended September 30, 2014 , respectively. The sale of these apartment communities resulted in gains on disposition of real estate of $130.5 million for the nine months ended September 30, 2015 . For the three and nine months ended September 30, 2014 , the sale of apartment communities resulted in gains on disposition of real estate of $126.3 million and $262.5 million , respectively, which are net of $21.1 million and $29.8 million of related income taxes. We report gains on disposition net of incremental direct costs incurred in connection with the transactions, including any prepayment penalties incurred upon repayment of property debt collateralized by the apartment communities being sold. Such prepayment penalties totaled $19.8 million for consolidated dispositions during the nine months ended September 30, 2015 ( $13.2 million of which represented the mark-to-market adjustment), and $13.6 million and $22.1 million for consolidated dispositions during the three and nine months ended September 30, 2014 , respectively ( $9.4 million and $15.1 million of which represented the mark-to-market adjustments). In connection with sales of apartment communities during the nine months ended September 30, 2015 , the purchasers assumed $6.1 million of non-recourse property debt. In connection with sales of apartment communities during the nine months ended September 30, 2014 , the purchasers assumed $56.9 million of non-recourse property debt. |
Other Significant Transactions
Other Significant Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Other Significant Transactions [Abstract] | |
Other Significant Transactions | Other Significant Transactions Investments in Apartment Communities In March 2015, we acquired for $38.3 million a 94 -apartment home community located in Atlanta, Georgia. In April 2015, we acquired for $63.0 million a 115 -apartment home community located in Cambridge, Massachusetts at the completion of its construction. At September 30, 2015 , 77% of the apartment homes were occupied. In June 2015, we purchased a 91 -apartment home community under construction at the time of acquisition. This community is also located in Cambridge, Massachusetts, and is two blocks from the apartment community described in the prior paragraph. At closing, we paid $27.9 million and agreed to fund the remaining construction costs. We expect a total investment of $45.0 million in this community, of which $38.8 million has been invested through September 30, 2015 . Construction of the apartment homes was completed during the third quarter, and we began lease-up in October. Construction of the community's amenities is expected to be complete by year end. Asset Management Business Disposition In December 2012, we sold the Napico portfolio, our legacy asset management business. The transaction was primarily seller-financed, and the associated notes are scheduled to be repaid over several years. The notes will be repaid from the operation and liquidation of the portfolio and are collateralized by the buyer’s interests in the portfolio. In accordance with the provisions of GAAP applicable to sales of real estate or interests therein, for accounting purposes, we have not recognized the sale and are accounting for the transaction under the profit sharing method. Until full payment has been received for the seller-financed notes, we will continue to recognize the portfolio’s assets and liabilities, each condensed into single line items within other assets and accrued liabilities and other, respectively, in our consolidated balance sheets, for all dates following the transaction. Similarly, we will continue to recognize the portfolio’s results of operations, also condensed into a single line item within our consolidated statements of operations, for periods subsequent to the transaction. To date we have received all required payments under the seller-financed notes. At September 30, 2015 , the Napico portfolio consisted of 14 partnerships that held investments in 12 apartment communities that were consolidated and 47 apartment communities that were accounted for under the equity or cost methods of accounting. The portfolio’s assets and liabilities included in our condensed consolidated balance sheets are summarized below (in thousands): September 30, 2015 December 31, 2014 Real estate, net $ 107,407 $ 117,851 Cash and cash equivalents 33,715 23,133 Investment in unconsolidated real estate partnerships 766 8,392 Other assets 16,419 11,759 Total assets $ 158,307 $ 161,135 Total indebtedness $ 143,987 $ 113,641 Accrued and other liabilities 9,299 4,417 Total liabilities $ 153,286 $ 118,058 Noncontrolling interests in consolidated real estate partnerships 697 44,106 Equity attributable to Aimco and the Aimco Operating Partnership 4,324 (1,029 ) Total liabilities and equity $ 158,307 $ 161,135 During the nine months ended September 30, 2015, Napico sold a property, resulting in a reduction of real estate, and Napico refinanced a property, resulting in an increase in indebtedness and a reduction in noncontrolling interests in consolidated real estate partnerships, following distribution of the proceeds. Summarized information regarding the Napico portfolio’s results of operations, including any expense we recognize under the profit sharing method, is shown below in thousands. The net income (loss) related to Napico (before income taxes and noncontrolling interests) is included in other, net in our condensed consolidated statements of operations. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenues $ 6,120 $ 9,884 $ 19,054 $ 21,234 Expenses (5,399 ) (5,114 ) (15,876 ) (15,992 ) Equity in loss of unconsolidated entities, gains or losses on dispositions and other, net (2,614 ) (3,246 ) (2,420 ) (5,198 ) Net (loss) income related to legacy asset management business (1,893 ) 1,524 758 44 Income tax benefit (expense) associated with legacy asset management business 108 101 (1,916 ) 411 Loss (income) allocated to noncontrolling interests in consolidated real estate partnerships 2,161 (1,768 ) 4,672 (1,580 ) Net income (losses) of legacy asset management business attributable to Aimco and the Aimco Operating Partnership $ 376 $ (143 ) $ 3,514 $ (1,125 ) Revenues decreased during the three and nine months ended September 30, 2015 , as compared to the three and nine months ended September 30, 2014 , due to an adjustment in 2014 to increase rent subsidies to reflect current market rates for one of the apartment communities in this portfolio. Based on our limited economic ownership in this portfolio, most of the assets and liabilities are allocated to noncontrolling interests and do not significantly affect our consolidated equity and partners’ capital. Additionally, the operating results of this portfolio generally have an insignificant effect on the amounts of income or loss attributable to us. Income or loss attributable to these noncontrolling interests will continue to be recognized commensurate with the recognition of the results of operations of the portfolio. If full payment is received on the notes and we meet the requirements to recognize the sale for accounting purposes, we expect to recognize a gain attributable to Aimco and the Aimco Operating Partnership. Equity and Partners’ Capital Transactions During the nine months ended September 30, 2015 , Aimco issued 9,430,000 shares of its Common Stock, par value $0.01 per share, in an underwritten public offering, for net proceeds per share of $38.90 . The offering generated net proceeds to Aimco of $366.6 million , net of issuance costs. Aimco contributed the net proceeds from the sale of Common Stock to the Aimco Operating Partnership in exchange for a number of common partnership units equal to the number of shares of Common Stock issued. Using the proceeds from this offering, during the nine months ended September 30, 2015 , we repaid the then outstanding balance on our Credit Agreement, expanded our unencumbered asset pool, funded redevelopment and property upgrades investments that would otherwise have been funded with property debt on a leverage-neutral basis, and Aimco redeemed the remaining outstanding shares of its Series A Community Reinvestment Act Preferred Stock at its par value of $27.0 million . In connection with Aimco’s redemption of preferred stock, the Aimco Operating Partnership redeemed from Aimco an equal number of the corresponding class of partnership preferred units. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements We measure at fair value on a recurring basis our investment in the securitization trust that holds certain of our property debt, which we classify as available for sale, or AFS, securities, and our interest rate swaps. Information regarding these items measured at fair value, both of which are classified within Level 2 of the GAAP fair value hierarchy, is presented below (in thousands): AFS Investments Interest Rate Swaps Total Fair value at December 31, 2013 $ 58,408 $ (4,604 ) $ 53,804 Investment accretion included in interest income 2,833 — 2,833 Unrealized losses included in interest expense — (36 ) (36 ) Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss — 1,265 1,265 Unrealized losses included in equity and partners’ capital (618 ) (1,488 ) (2,106 ) Fair value at September 30, 2014 $ 60,623 $ (4,863 ) $ 55,760 Fair value at December 31, 2014 $ 61,043 $ (5,273 ) $ 55,770 Investment accretion included in interest income 3,142 — 3,142 Unrealized losses included in interest expense — (36 ) (36 ) Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss — 1,260 1,260 Unrealized losses included in equity and partners’ capital (51 ) (1,517 ) (1,568 ) Fair value at September 30, 2015 $ 64,134 $ (5,566 ) $ 58,568 Our investments classified as AFS are presented within other assets in the accompanying consolidated balance sheets. We hold several positions in the securitization which pay interest currently, and we also hold the first loss position in the securitization which accrues interest over the term of the investment. We are accreting the discount to the $100.9 million face value of the investments into interest income using the effective interest method over the remaining expected term of the investments, which, as of September 30, 2015 , was approximately 5.7 years. Our amortized cost basis for these investments, which represents the original cost adjusted for interest accretion less interest payments received, was $66.7 million and $63.6 million at September 30, 2015 and December 31, 2014 , respectively. We estimate the fair value of these investments in accordance with GAAP using an income and market approach with primarily observable inputs, including yields and other information regarding similar types of investments, and adjusted for certain unobservable inputs specific to these investments. The fair value of the positions that pay interest currently, which typically moves in an inverse relationship with movements in interest rates, exceeded the amortized cost of these investments at the balance sheet dates. The fair value of the first loss position, which is less correlated to movements in interest rates, was less than the amortized cost at the balance sheet dates. We currently expect to hold each of the investments to their maturity dates and we believe we will fully recover our basis in the investments. Accordingly, we believe the current impairment in the fair value, as compared to the amortized cost basis, of the most subordinate tranche of these investments is temporary and we have not recognized any of the decline in value in earnings. For our variable rate debt, we are sometimes required by limited partners in our consolidated real estate partnerships to limit our exposure to interest rate fluctuations by entering into interest rate swap agreements, which moderate our exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. We estimate the fair value of interest rate swaps using an income approach with primarily observable inputs including information regarding the hedged variable cash flows and forward yield curves relating to the variable interest rates on which the hedged cash flows are based. As of September 30, 2015 and December 31, 2014 , we had interest rate swaps with aggregate notional amounts of $50.0 million and $50.3 million , respectively. As of September 30, 2015 , these swaps had a weighted average remaining term of 5.2 years . We have designated these interest rate swaps as cash flow hedges. The fair value of these swaps is presented within accrued liabilities and other in our condensed consolidated balance sheets, and we recognize any changes in the fair value as an adjustment of accumulated other comprehensive loss within equity and partners’ capital to the extent of their effectiveness. If the forward rates at September 30, 2015 , remain constant, we estimate that during the next 12 months , we would reclassify into earnings approximately $1.7 million of the unrealized losses in accumulated other comprehensive loss. If market interest rates increase above the 3.43% weighted average fixed rate under these interest rate swaps we will benefit from net cash payments due to us from our counterparty to the interest rate swaps. Fair Value Disclosures We believe that the aggregate fair value of our cash and cash equivalents, receivables and payables approximates their aggregate carrying amounts at September 30, 2015 and December 31, 2014 , due to their relatively short-term nature and high probability of realization. The estimated aggregate fair value of our consolidated total indebtedness was approximately $4.1 billion and $4.4 billion at September 30, 2015 and December 31, 2014 , respectively, as compared to aggregate carrying amounts of $3.9 billion and $4.1 billion , respectively. Substantially all of the difference between the fair value and the carrying value of our consolidated indebtedness relates to loans secured by apartment communities we wholly own. We estimate the fair value of our consolidated debt using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, contractual interest rates, remaining periods to maturity, collateral quality and loan to value ratios on similarly encumbered assets within our portfolio. We classify the fair value of our consolidated debt within Level 3 of the GAAP valuation hierarchy based on the significance of certain of the unobservable inputs used to estimate their fair values. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In connection with our development, redevelopment and capital improvement activities, we have entered into various construction-related contracts and we have made commitments to complete certain projects, pursuant to financing or other arrangements. As of September 30, 2015 , our commitments related to these capital activities totaled approximately $114.8 million , most of which we expect to incur during the next 12 months . Our commitments related to our One Canal Street development project will be funded in part by a $114.0 million non-recourse property loan, of which $48.5 million was available to draw at September 30, 2015 . During the three months ended September 30, 2015 , we also entered into a contract to acquire an apartment community currently under construction in Northern California for $320.0 million . Closing of the acquisition is expected to occur upon completion of construction in the summer of 2016. Consistent with our paired-trade discipline, we intend to fund the acquisition on a leverage neutral basis through a ten-year property loan with the balance funded primarily by proceeds from sales of lower-rated apartment communities. We also enter into certain commitments for future purchases of goods and services in connection with the operations of our apartment communities. Those commitments generally have terms of one year or less and reflect expenditure levels comparable to our historical expenditures. Tax Credit Arrangements We are required to manage certain consolidated real estate partnerships in compliance with various laws, regulations and contractual provisions that apply to our historic and low-income housing tax credit syndication arrangements. In some instances, noncompliance with applicable requirements could result in projected tax benefits not being realized and require a refund or reduction of investor capital contributions, which are reported as deferred income in our condensed consolidated balance sheet, until such time as our obligation to deliver tax benefits is relieved. The remaining compliance periods for our tax credit syndication arrangements range from less than one year to 11 years . We do not anticipate that any material refunds or reductions of investor capital contributions will be required in connection with these arrangements. Income Taxes On March 19, 2014, the Internal Revenue Service notified the Aimco Operating Partnership of its intent to audit the 2011 and 2012 tax years. We do not believe the audit will have any material effect on our unrecognized tax benefits, financial condition or results of operations. Legal Matters In addition to the matters described below, we are a party to various legal actions and administrative proceedings arising in the ordinary course of business, some of which are covered by our general liability insurance program, and none of which we expect to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Limited Partnerships In connection with our acquisitions of interests in real estate partnerships, we are sometimes subject to legal actions, including allegations that such activities may involve breaches of fiduciary duties to the partners of such real estate partnerships or violations of the relevant partnership agreements. We may incur costs in connection with the defense or settlement of such litigation. We believe that we comply with our fiduciary obligations and relevant partnership agreements. Although the outcome of any litigation is uncertain, we do not expect any such legal actions to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Environmental Various Federal, state and local laws subject apartment community owners or operators to liability for management, and the costs of removal or remediation, of certain potentially hazardous materials that may be present in the land or buildings of an apartment community. Potentially hazardous materials may include polychlorinated biphenyls, petroleum-based fuels, lead-based paint, or asbestos. Such laws often impose liability without regard to fault or whether the owner or operator knew of, or was responsible for, the presence of such materials. The presence of, or the failure to manage or remediate properly, these materials may adversely affect occupancy at such apartment communities as well as the ability to sell or finance such apartment communities. In addition, governmental agencies may bring claims for costs associated with investigation and remediation actions, damages to natural resources and for potential fines or penalties in connection with such damage or with respect to the improper management of hazardous materials. Moreover, private plaintiffs may potentially make claims for personal injury, disease, disability or other infirmities related to the alleged presence of hazardous materials at an apartment community. In addition to potential environmental liabilities or costs associated with our current apartment communities, we may also be responsible for such liabilities or costs associated with communities we acquire or manage in the future, or apartment communities we no longer own or operate. We are engaged in discussions with the Environmental Protection Agency, or EPA, regarding contaminated groundwater in a residential area in the vicinity of an Indiana apartment community that has not been owned by us since 2008. The EPA alleges that we are liable for addressing the contamination in the residential area because a dry cleaner that operated on our former property, prior to our ownership, discharged hazardous materials into the sanitary sewers and the environment. We have undertaken a voluntary remediation of the dry cleaner contamination at our former property under the oversight of the Indiana Department of Environmental Management, or IDEM. However, IDEM has formally terminated us from the voluntary remediation, and we are presently appealing that termination. Based on our review of the scientific data, we believe that the presence of hazardous materials in the separate residential area under review by the EPA is attributable to neighboring property owners (including an auto parts manufacturer), and not the dry cleaner. The EPA is now proposing to list the area on the National Priorities List (i.e., as a Superfund site), which would make the site eligible for additional Federal funding. Were the site to be listed, the EPA could use the funding to further investigate and clean-up the residential area and could then seek to recoup its costs from responsible parties. Although the outcome of this process is uncertain, we do not expect the resolution to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We also have been contacted by regulators and the current owner of a property in Lake Tahoe regarding environmental issues allegedly stemming from the historic operation of a dry cleaner on the site. An entity owned by us was the former general partner of a now-dissolved company that previously owned the dry cleaner site. The Lahontan Regional Water Quality Control Board, or Board, recently tested domestic wells in the area and found two wells with contaminants linked to dry cleaning. We entered into an agreement with the Board and the current owner to pay for an alternative water connection at an insignificant cost. During the three months ended September 30, 2015, the Board sent us and the current owner a proposed cleanup and abatement order that, if entered, would require us and the current owner to perform additional groundwater investigation and corrective actions. We are currently assessing potential legal and technical grounds for challenging and/or narrowing the scope of the proposed order. Although the outcome of this process is uncertain, we do not expect the resolution to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We have determined that our legal obligations to remove or remediate certain potentially hazardous materials may be conditional asset retirement obligations, as defined in GAAP. Except in limited circumstances where the asset retirement activities are expected to be performed in connection with a planned construction project or apartment community casualty, we believe that the fair value of our asset retirement obligations cannot be reasonably estimated due to significant uncertainties in the timing and manner of settlement of those obligations. Asset retirement obligations that are reasonably estimable as of September 30, 2015, are immaterial to our consolidated financial condition, results of operations and cash flows. |
Earnings per Share_Unit
Earnings per Share/Unit | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share/Unit | Earnings per Share/Unit Aimco Aimco calculates earnings per share based on the weighted average number of shares of Common Stock, participating securities, common stock equivalents and dilutive convertible securities outstanding during the period. The following table illustrates Aimco’s calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ 23,769 $ 18,186 $ 66,133 $ 48,169 Gain on dispositions of real estate, net of tax — 126,329 130,474 262,483 Income from continuing operations and gain on dispositions attributable to noncontrolling interests (1,844 ) (16,487 ) (17,553 ) (40,655 ) Income attributable to preferred stockholders (2,757 ) (2,875 ) (9,037 ) (5,087 ) Loss (income) attributable to participating securities 11 (447 ) (690 ) (962 ) Income from continuing operations attributable to Aimco common stockholders $ 19,179 $ 124,706 $ 169,327 $ 263,948 Net income $ 23,769 $ 144,515 $ 196,607 $ 310,652 Net income attributable to noncontrolling interests (1,844 ) (16,487 ) (17,553 ) (40,655 ) Net income attributable to preferred stockholders (2,757 ) (2,875 ) (9,037 ) (5,087 ) Net loss (income) attributable to participating securities 11 (447 ) (690 ) (962 ) Net income attributable to Aimco common stockholders $ 19,179 $ 124,706 $ 169,327 $ 263,948 Denominator: Weighted average common shares outstanding – basic 155,639 145,672 154,994 145,601 Dilutive potential common shares 369 432 418 323 Weighted average common shares outstanding – diluted 156,008 146,104 155,412 145,924 Earnings attributable to Aimco per common share – basic: Income from continuing operations $ 0.12 $ 0.86 $ 1.09 $ 1.81 Net income $ 0.12 $ 0.86 $ 1.09 $ 1.81 Earnings attributable to Aimco per common share – diluted: Income from continuing operations $ 0.12 $ 0.85 $ 1.09 $ 1.81 Net income $ 0.12 $ 0.85 $ 1.09 $ 1.81 The Aimco Operating Partnership The Aimco Operating Partnership calculates earnings per unit based on the weighted average number of common partnership units and equivalents, participating securities and dilutive convertible securities outstanding during the period. The Aimco Operating Partnership considers both common OP Units and HPUs, which have identical rights to distributions and undistributed earnings, to be common units for purposes of the earnings per unit data presented below. The following table illustrates the Aimco Operating Partnership’s calculation of basic and diluted earnings per unit for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per unit data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ 23,769 $ 18,186 $ 66,133 $ 48,169 Gain on dispositions of real estate, net of tax — 126,329 130,474 262,483 Loss (income) from continuing operations and gain on dispositions attributable to noncontrolling interests 785 (8,337 ) (4,082 ) (21,952 ) Income attributable to the Aimco Operating Partnership’s preferred unitholders (4,493 ) (4,476 ) (14,245 ) (9,895 ) Loss (income) attributable to participating securities 11 (447 ) (690 ) (962 ) Income from continuing operations attributable to the Aimco Operating Partnership’s common unitholders $ 20,072 $ 131,255 $ 177,590 $ 277,843 Net income $ 23,769 $ 144,515 $ 196,607 $ 310,652 Net loss (income) attributable to noncontrolling interests 785 (8,337 ) (4,082 ) (21,952 ) Net income attributable to the Aimco Operating Partnership’s preferred unitholders (4,493 ) (4,476 ) (14,245 ) (9,895 ) Net loss (income) attributable to participating securities 11 (447 ) (690 ) (962 ) Net income attributable to the Aimco Operating Partnership’s common unitholders $ 20,072 $ 131,255 $ 177,590 $ 277,843 Denominator: Weighted average common units outstanding – basic 163,241 153,337 162,616 153,326 Dilutive potential common units 369 432 418 323 Weighted average common units outstanding – diluted 163,610 153,769 163,034 153,649 Earnings attributable to the Aimco Operating Partnership per common unit – basic: Income from continuing operations $ 0.12 $ 0.86 $ 1.09 $ 1.81 Net income $ 0.12 $ 0.86 $ 1.09 $ 1.81 Earnings attributable to the Aimco Operating Partnership per common unit – diluted: Income from continuing operations $ 0.12 $ 0.85 $ 1.09 $ 1.81 Net income $ 0.12 $ 0.85 $ 1.09 $ 1.81 Aimco and the Aimco Operating Partnership As of September 30, 2015 , the common share equivalents or common partnership unit equivalents that could potentially dilute basic earnings per share or unit in future periods totaled 1.4 million . These securities represent options to purchase shares of Common Stock, which, if exercised, would result in Aimco’s issuance of additional shares and the Aimco Operating Partnership’s issuance to Aimco of additional common partnership units equal to the number of shares purchased under the options. The effect of these securities was dilutive for the three and nine months ended September 30, 2015 and 2014 , and accordingly has been included in the denominator for calculating diluted earnings per share and unit during these periods. Participating securities, consisting of unvested restricted shares of Common Stock, receive dividends similar to shares of Common Stock and common partnership units and totaled 0.7 million shares and 0.5 million shares at September 30, 2015 and 2014 , respectively. The effect of participating securities is included in basic and diluted earnings per share and unit computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings. 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 the Aimco Operating Partnership’s option, Common Stock, and are paid distributions varying from 1.9% to 8.8% per annum per unit. As of September 30, 2015 , a total of 3.3 million preferred OP Units were outstanding with an aggregate redemption value of $87.9 million and were potentially redeemable for approximately 2.4 million shares of Common Stock (based on the period end market price), or cash at the Aimco Operating Partnership’s option. The Aimco Operating Partnership has a redemption policy that requires cash settlement of redemption requests for the preferred OP Units, subject to limited exceptions. Accordingly, we have excluded these securities from earnings per share and unit computations for the periods presented above, and we expect to exclude them in future periods. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We have two reportable segments: conventional real estate operations and affordable real estate operations. Our conventional real estate operations consist of market-rate apartment communities with rents paid by the residents and included 143 apartment communities with 41,429 apartment homes at September 30, 2015 . Our affordable real estate operations consisted of 56 apartment communities with 8,685 apartment homes at September 30, 2015 , with rents that are generally paid, in whole or part, by a government agency. Due to the diversity of our economic ownership interests in our apartment communities, our chief executive officer, who is our chief operating decision maker, uses proportionate property net operating income to assess the operating performance of our apartment communities. Proportionate property net operating income reflects our share of rental and other property revenues less direct property operating expenses, including real estate taxes, for the consolidated and unconsolidated apartment communities that we own. The following tables present the revenues, net operating income (loss) and income (loss) from continuing operations of our conventional and affordable real estate operations segments on a proportionate basis (excluding amounts related to apartment communities sold or classified as held for sale) for the three and nine months ended September 30, 2015 and 2014 (in thousands): Conventional Real Estate Operations Affordable Real Estate Operations Proportionate Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated Three Months Ended September 30, 2015: Rental and other property revenues $ 204,246 $ 24,388 $ 10,219 $ 1,529 $ 240,382 Tax credit and asset management revenues — — — 6,005 6,005 Total revenues 204,246 24,388 10,219 7,534 246,387 Property operating expenses 68,456 9,631 3,434 7,100 88,621 Investment management expenses — — — 1,905 1,905 Depreciation and amortization — — — 77,237 77,237 General and administrative expenses — — — 11,013 11,013 Other expenses, net — — — 3,590 3,590 Total operating expenses 68,456 9,631 3,434 100,845 182,366 Net operating income (loss) 135,790 14,757 6,785 (93,311 ) 64,021 Other items included in continuing operations — — — (40,252 ) (40,252 ) Income (loss) from continuing operations $ 135,790 $ 14,757 $ 6,785 $ (133,563 ) $ 23,769 Conventional Real Estate Operations Affordable Real Estate Operations Proportionate Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated Three Months Ended September 30, 2014: Rental and other property revenues $ 187,063 $ 23,724 $ 7,337 $ 21,749 $ 239,873 Tax credit and asset management revenues — — — 6,970 6,970 Total revenues 187,063 23,724 7,337 28,719 246,843 Property operating expenses 63,869 9,274 2,422 19,675 95,240 Investment management expenses — — — 1,279 1,279 Depreciation and amortization — — — 69,437 69,437 Provision for real estate impairment losses — — — 1,413 1,413 General and administrative expenses — — — 10,658 10,658 Other expenses, net — — — 1,349 1,349 Total operating expenses 63,869 9,274 2,422 103,811 179,376 Net operating income (loss) 123,194 14,450 4,915 (75,092 ) 67,467 Other items included in continuing operations — — — (49,281 ) (49,281 ) Income (loss) from continuing operations $ 123,194 $ 14,450 $ 4,915 $ (124,373 ) $ 18,186 Conventional Real Estate Operations Affordable Real Estate Operations Proportionate Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated Nine Months Ended September 30, 2015: Rental and other property revenues $ 599,977 $ 72,779 $ 28,269 $ 16,283 $ 717,308 Asset management and tax credit revenues — — — 18,127 18,127 Total revenues 599,977 72,779 28,269 34,410 735,435 Property operating expenses 200,660 28,965 10,274 32,144 272,043 Investment management expenses — — — 4,594 4,594 Depreciation and amortization — — — 226,819 226,819 General and administrative expenses — — — 33,727 33,727 Other expenses, net — — — 7,521 7,521 Total operating expenses 200,660 28,965 10,274 304,805 544,704 Net operating income (loss) 399,317 43,814 17,995 (270,395 ) 190,731 Other items included in continuing operations — — — (124,598 ) (124,598 ) Income (loss) from continuing operations $ 399,317 $ 43,814 $ 17,995 $ (394,993 ) $ 66,133 Conventional Real Estate Operations Affordable Real Estate Operations Proportionate Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated Nine Months Ended September 30, 2014: Rental and other property revenues $ 546,381 $ 70,717 $ 21,704 $ 80,699 $ 719,501 Asset management and tax credit revenues — — — 22,684 22,684 Total revenues 546,381 70,717 21,704 103,383 742,185 Property operating expenses 187,881 29,129 6,820 65,178 289,008 Investment management expenses — — — 3,552 3,552 Depreciation and amortization — — — 211,143 211,143 Provision for real estate impairment losses — — — 1,413 1,413 General and administrative expenses — — — 31,304 31,304 Other expenses, net — — — 7,223 7,223 Total operating expenses 187,881 29,129 6,820 319,813 543,643 Net operating income (loss) 358,500 41,588 14,884 (216,430 ) 198,542 Other items included in continuing operations — — — (150,373 ) (150,373 ) Income (loss) from continuing operations $ 358,500 $ 41,588 $ 14,884 $ (366,803 ) $ 48,169 (1) Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of our consolidated apartment communities and the results of consolidated apartment communities that we do not manage, which are excluded from our measurement of segment performance but included in the related consolidated amounts, and our share of the results of operations of our unconsolidated real estate partnerships that we manage, which are included in our measurement of segment performance but excluded from the related consolidated amounts. (2) Our basis for assessing segment performance excludes the results of apartment communities sold or classified as held for sale. In the segment presentation above, the current year and prior year operating results for apartment communities sold or classified as held for sale during 2015 or 2014 are presented within the Corporate and Amounts Not Allocated to Segments column. Proportionate property net operating income, our key measurement of segment profit or loss, also excludes property management expenses and casualty gains and losses (which are included in property operating expenses) and depreciation and amortization. Accordingly, we do not allocate these amounts to our segments and they are presented within the Corporate and Amounts Not Allocated to Segments column. For the nine months ended September 30, 2015 and 2014 , capital additions related to our conventional segment totaled $258.7 million and $270.4 million , respectively, and capital additions related to our affordable segment totaled $6.5 million and $6.6 million , respectively. |
Basis of Presentation and Sum15
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2015 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . The balance sheets of Aimco and the Aimco Operating Partnership at December 31, 2014 , have been derived from their respective audited financial statements at that date, but do not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the financial statements and notes thereto included in Aimco’s and the Aimco Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2014 . Except where indicated, the footnotes refer to both Aimco and the Aimco Operating Partnership. |
Principles of Consolidation | Principles of Consolidation Aimco’s accompanying condensed consolidated financial statements include the accounts of Aimco, the Aimco Operating Partnership, and their consolidated subsidiaries. The Aimco Operating Partnership’s condensed consolidated financial statements include the accounts of the Aimco Operating Partnership and its consolidated entities. We consolidate all variable interest entities for which we are the primary beneficiary. Generally, a variable interest entity, or VIE, is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to our business activities and the business activities of the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. As of September 30, 2015 , we were the primary beneficiary of, and therefore consolidated, 61 VIEs, which owned 47 apartment communities with 7,459 apartment homes. Substantially all these VIEs are partnerships that are involved in the ownership or operation of qualifying affordable housing apartment communities and which are structured to provide for the pass-through of low-income housing tax credits and deductions to their partners. Real estate with a carrying value of $342.6 million collateralized $327.4 million of debt of those VIEs. Any significant amounts of assets and liabilities related to our consolidated VIEs are identified parenthetically on our accompanying condensed consolidated balance sheets. The creditors of the consolidated VIEs do not have recourse to our general credit. In addition to the consolidated VIEs discussed above, at September 30, 2015 , our consolidated financial statements included certain consolidated and unconsolidated VIEs that are part of the legacy asset management business we sold during 2012, which is discussed in Note 4 . The assets and liabilities related to these consolidated and unconsolidated VIEs are each condensed into single line items within other assets and accrued liabilities and other, respectively, in our condensed consolidated balance sheets. Generally, we consolidate real estate partnerships and other entities that are not variable interest entities when we own, directly or indirectly, a majority voting interest in the entity or are otherwise able to control the entity. All significant intercompany balances and transactions have been eliminated in consolidation. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are reflected in Aimco’s accompanying balance sheets as noncontrolling interests in Aimco Operating Partnership. Interests in partnerships consolidated into the Aimco Operating Partnership that are held by third parties are reflected in our accompanying balance sheets as noncontrolling interests in consolidated real estate partnerships. The assets of consolidated real estate partnerships owned or controlled by the Aimco Operating Partnership generally are not available to pay creditors of Aimco or the Aimco Operating Partnership. |
Temporary Equity and Partners' Capital | These amounts are presented within temporary equity in Aimco’s condensed consolidated balance sheets as preferred noncontrolling interests in the Aimco Operating Partnership, and within temporary capital in the Aimco Operating Partnership’s condensed consolidated balance sheets as redeemable preferred units. |
Use of Estimates | Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update 2015-02, which significantly changes the consolidation analysis required under GAAP for VIEs. Under this revised guidance, it is less likely that certain fees, such as asset management fees, would be considered variable interests and therefore fewer entities may be considered VIEs. Additionally, limited partnerships may no longer be viewed as VIEs if the limited partners hold certain rights over the general partner. Alternatively, limited partnerships not previously viewed as VIEs may now be considered VIEs in the absence of such rights. For public companies, the guidance in ASU 2015-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. We have not yet determined the effect ASU 2015-02 will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 to revise the presentation of debt issuance costs. Under ASU 2015-03, entities generally will present debt issuance costs in their balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the deferred costs will continue to be included in interest expense. In August 2015, the FASB issued ASU 2015-15 to clarify the SEC staff’s position regarding the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements due to the lack of guidance on this topic in the recently issued ASU 2015-03. The SEC staff recently announced that it would not object to an entity deferring and presenting debt issuance costs associated with line-of-credit arrangements as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings under the arrangement. For public companies, the guidance in ASUs 2015-03 and 2015-15, which is to be applied retrospectively to all prior periods, is effective for fiscal years beginning after December 15, 2015, with early adoption permitted for financial statements that have not been previously issued. We do not expect ASUs 2015-03 and 2015-15 to have a significant effect on our consolidated financial statements. |
Basis of Presentation and Sum16
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Equity [Line Items] | |
Reconciliation of consolidated temporary equity accounts | The following table presents a reconciliation of the Aimco Operating Partnership’s Preferred OP Units from December 31, 2014 to September 30, 2015 (in thousands). These amounts are presented within temporary equity in Aimco’s condensed consolidated balance sheets as preferred noncontrolling interests in the Aimco Operating Partnership, and within temporary capital in the Aimco Operating Partnership’s condensed consolidated balance sheets as redeemable preferred units. Balance, December 31, 2014 $ 87,937 Distributions to preferred unitholders (5,208 ) Net income 5,208 Balance, September 30, 2015 $ 87,937 |
Reconciliation of consolidated permanent equity accounts | The following table presents a reconciliation of Aimco’s consolidated permanent equity accounts from December 31, 2014 to September 30, 2015 (in thousands): Aimco Equity Noncontrolling interests in consolidated real estate partnerships Common noncontrolling interests in Aimco Operating Partnership Total Equity Balance, December 31, 2014 $ 1,227,735 $ 233,296 $ (18,926 ) $ 1,442,105 Issuance of Common Stock 366,580 — — 366,580 Repurchase of preferred stock (27,000 ) — — (27,000 ) Preferred stock dividends (8,342 ) — — (8,342 ) Common dividends and distributions (137,493 ) (72,873 ) (6,701 ) (217,067 ) Redemptions of common OP Units — — (2,612 ) (2,612 ) Amortization of stock-based compensation cost 5,572 — — 5,572 Effect of changes in ownership for consolidated entities (4,328 ) — 2,628 (1,700 ) Change in accumulated other comprehensive loss (352 ) 61 (17 ) (308 ) Other 264 (127 ) — 137 Net income 179,054 4,082 8,263 191,399 Balance, September 30, 2015 $ 1,601,690 $ 164,439 $ (17,365 ) $ 1,748,764 |
AIMCO PROPERTIES, L.P [Member] | |
Schedule of Equity [Line Items] | |
Reconciliation of consolidated permanent equity accounts | Partners’ capital attributable to the Partnership Balance, December 31, 2014 $ 1,208,809 Issuance of common partnership units to Aimco 366,580 Repurchase of Preferred Units from Aimco (27,000 ) Distributions to preferred units held by Aimco (8,342 ) Distributions to common units held by Aimco (137,493 ) Distributions to common units held by Limited Partners (6,701 ) Redemption of common OP Units (2,612 ) Amortization of Aimco stock-based compensation cost 5,572 Effect of changes in ownership for consolidated entities (1,700 ) Change in accumulated other comprehensive loss (369 ) Other 264 Net income 187,317 Balance, September 30, 2015 $ 1,584,325 |
Other Significant Transactions
Other Significant Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Significant Transactions [Abstract] | |
Schedule of Financial Position Related to Legally Sold Portfolio | The portfolio’s assets and liabilities included in our condensed consolidated balance sheets are summarized below (in thousands): September 30, 2015 December 31, 2014 Real estate, net $ 107,407 $ 117,851 Cash and cash equivalents 33,715 23,133 Investment in unconsolidated real estate partnerships 766 8,392 Other assets 16,419 11,759 Total assets $ 158,307 $ 161,135 Total indebtedness $ 143,987 $ 113,641 Accrued and other liabilities 9,299 4,417 Total liabilities $ 153,286 $ 118,058 Noncontrolling interests in consolidated real estate partnerships 697 44,106 Equity attributable to Aimco and the Aimco Operating Partnership 4,324 (1,029 ) Total liabilities and equity $ 158,307 $ 161,135 |
Statement of Income Related to Legally Sold Portfolio | Summarized information regarding the Napico portfolio’s results of operations, including any expense we recognize under the profit sharing method, is shown below in thousands. The net income (loss) related to Napico (before income taxes and noncontrolling interests) is included in other, net in our condensed consolidated statements of operations. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenues $ 6,120 $ 9,884 $ 19,054 $ 21,234 Expenses (5,399 ) (5,114 ) (15,876 ) (15,992 ) Equity in loss of unconsolidated entities, gains or losses on dispositions and other, net (2,614 ) (3,246 ) (2,420 ) (5,198 ) Net (loss) income related to legacy asset management business (1,893 ) 1,524 758 44 Income tax benefit (expense) associated with legacy asset management business 108 101 (1,916 ) 411 Loss (income) allocated to noncontrolling interests in consolidated real estate partnerships 2,161 (1,768 ) 4,672 (1,580 ) Net income (losses) of legacy asset management business attributable to Aimco and the Aimco Operating Partnership $ 376 $ (143 ) $ 3,514 $ (1,125 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Information regarding these items measured at fair value, both of which are classified within Level 2 of the GAAP fair value hierarchy, is presented below (in thousands): AFS Investments Interest Rate Swaps Total Fair value at December 31, 2013 $ 58,408 $ (4,604 ) $ 53,804 Investment accretion included in interest income 2,833 — 2,833 Unrealized losses included in interest expense — (36 ) (36 ) Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss — 1,265 1,265 Unrealized losses included in equity and partners’ capital (618 ) (1,488 ) (2,106 ) Fair value at September 30, 2014 $ 60,623 $ (4,863 ) $ 55,760 Fair value at December 31, 2014 $ 61,043 $ (5,273 ) $ 55,770 Investment accretion included in interest income 3,142 — 3,142 Unrealized losses included in interest expense — (36 ) (36 ) Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss — 1,260 1,260 Unrealized losses included in equity and partners’ capital (51 ) (1,517 ) (1,568 ) Fair value at September 30, 2015 $ 64,134 $ (5,566 ) $ 58,568 |
Earnings per Share_Unit (Tables
Earnings per Share/Unit (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates Aimco’s calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ 23,769 $ 18,186 $ 66,133 $ 48,169 Gain on dispositions of real estate, net of tax — 126,329 130,474 262,483 Income from continuing operations and gain on dispositions attributable to noncontrolling interests (1,844 ) (16,487 ) (17,553 ) (40,655 ) Income attributable to preferred stockholders (2,757 ) (2,875 ) (9,037 ) (5,087 ) Loss (income) attributable to participating securities 11 (447 ) (690 ) (962 ) Income from continuing operations attributable to Aimco common stockholders $ 19,179 $ 124,706 $ 169,327 $ 263,948 Net income $ 23,769 $ 144,515 $ 196,607 $ 310,652 Net income attributable to noncontrolling interests (1,844 ) (16,487 ) (17,553 ) (40,655 ) Net income attributable to preferred stockholders (2,757 ) (2,875 ) (9,037 ) (5,087 ) Net loss (income) attributable to participating securities 11 (447 ) (690 ) (962 ) Net income attributable to Aimco common stockholders $ 19,179 $ 124,706 $ 169,327 $ 263,948 Denominator: Weighted average common shares outstanding – basic 155,639 145,672 154,994 145,601 Dilutive potential common shares 369 432 418 323 Weighted average common shares outstanding – diluted 156,008 146,104 155,412 145,924 Earnings attributable to Aimco per common share – basic: Income from continuing operations $ 0.12 $ 0.86 $ 1.09 $ 1.81 Net income $ 0.12 $ 0.86 $ 1.09 $ 1.81 Earnings attributable to Aimco per common share – diluted: Income from continuing operations $ 0.12 $ 0.85 $ 1.09 $ 1.81 Net income $ 0.12 $ 0.85 $ 1.09 $ 1.81 |
AIMCO PROPERTIES, L.P [Member] | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the Aimco Operating Partnership’s calculation of basic and diluted earnings per unit for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per unit data): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ 23,769 $ 18,186 $ 66,133 $ 48,169 Gain on dispositions of real estate, net of tax — 126,329 130,474 262,483 Loss (income) from continuing operations and gain on dispositions attributable to noncontrolling interests 785 (8,337 ) (4,082 ) (21,952 ) Income attributable to the Aimco Operating Partnership’s preferred unitholders (4,493 ) (4,476 ) (14,245 ) (9,895 ) Loss (income) attributable to participating securities 11 (447 ) (690 ) (962 ) Income from continuing operations attributable to the Aimco Operating Partnership’s common unitholders $ 20,072 $ 131,255 $ 177,590 $ 277,843 Net income $ 23,769 $ 144,515 $ 196,607 $ 310,652 Net loss (income) attributable to noncontrolling interests 785 (8,337 ) (4,082 ) (21,952 ) Net income attributable to the Aimco Operating Partnership’s preferred unitholders (4,493 ) (4,476 ) (14,245 ) (9,895 ) Net loss (income) attributable to participating securities 11 (447 ) (690 ) (962 ) Net income attributable to the Aimco Operating Partnership’s common unitholders $ 20,072 $ 131,255 $ 177,590 $ 277,843 Denominator: Weighted average common units outstanding – basic 163,241 153,337 162,616 153,326 Dilutive potential common units 369 432 418 323 Weighted average common units outstanding – diluted 163,610 153,769 163,034 153,649 Earnings attributable to the Aimco Operating Partnership per common unit – basic: Income from continuing operations $ 0.12 $ 0.86 $ 1.09 $ 1.81 Net income $ 0.12 $ 0.86 $ 1.09 $ 1.81 Earnings attributable to the Aimco Operating Partnership per common unit – diluted: Income from continuing operations $ 0.12 $ 0.85 $ 1.09 $ 1.81 Net income $ 0.12 $ 0.85 $ 1.09 $ 1.81 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary information for the reportable segments | The following tables present the revenues, net operating income (loss) and income (loss) from continuing operations of our conventional and affordable real estate operations segments on a proportionate basis (excluding amounts related to apartment communities sold or classified as held for sale) for the three and nine months ended September 30, 2015 and 2014 (in thousands): Conventional Real Estate Operations Affordable Real Estate Operations Proportionate Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated Three Months Ended September 30, 2015: Rental and other property revenues $ 204,246 $ 24,388 $ 10,219 $ 1,529 $ 240,382 Tax credit and asset management revenues — — — 6,005 6,005 Total revenues 204,246 24,388 10,219 7,534 246,387 Property operating expenses 68,456 9,631 3,434 7,100 88,621 Investment management expenses — — — 1,905 1,905 Depreciation and amortization — — — 77,237 77,237 General and administrative expenses — — — 11,013 11,013 Other expenses, net — — — 3,590 3,590 Total operating expenses 68,456 9,631 3,434 100,845 182,366 Net operating income (loss) 135,790 14,757 6,785 (93,311 ) 64,021 Other items included in continuing operations — — — (40,252 ) (40,252 ) Income (loss) from continuing operations $ 135,790 $ 14,757 $ 6,785 $ (133,563 ) $ 23,769 Conventional Real Estate Operations Affordable Real Estate Operations Proportionate Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated Three Months Ended September 30, 2014: Rental and other property revenues $ 187,063 $ 23,724 $ 7,337 $ 21,749 $ 239,873 Tax credit and asset management revenues — — — 6,970 6,970 Total revenues 187,063 23,724 7,337 28,719 246,843 Property operating expenses 63,869 9,274 2,422 19,675 95,240 Investment management expenses — — — 1,279 1,279 Depreciation and amortization — — — 69,437 69,437 Provision for real estate impairment losses — — — 1,413 1,413 General and administrative expenses — — — 10,658 10,658 Other expenses, net — — — 1,349 1,349 Total operating expenses 63,869 9,274 2,422 103,811 179,376 Net operating income (loss) 123,194 14,450 4,915 (75,092 ) 67,467 Other items included in continuing operations — — — (49,281 ) (49,281 ) Income (loss) from continuing operations $ 123,194 $ 14,450 $ 4,915 $ (124,373 ) $ 18,186 Conventional Real Estate Operations Affordable Real Estate Operations Proportionate Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated Nine Months Ended September 30, 2015: Rental and other property revenues $ 599,977 $ 72,779 $ 28,269 $ 16,283 $ 717,308 Asset management and tax credit revenues — — — 18,127 18,127 Total revenues 599,977 72,779 28,269 34,410 735,435 Property operating expenses 200,660 28,965 10,274 32,144 272,043 Investment management expenses — — — 4,594 4,594 Depreciation and amortization — — — 226,819 226,819 General and administrative expenses — — — 33,727 33,727 Other expenses, net — — — 7,521 7,521 Total operating expenses 200,660 28,965 10,274 304,805 544,704 Net operating income (loss) 399,317 43,814 17,995 (270,395 ) 190,731 Other items included in continuing operations — — — (124,598 ) (124,598 ) Income (loss) from continuing operations $ 399,317 $ 43,814 $ 17,995 $ (394,993 ) $ 66,133 Conventional Real Estate Operations Affordable Real Estate Operations Proportionate Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated Nine Months Ended September 30, 2014: Rental and other property revenues $ 546,381 $ 70,717 $ 21,704 $ 80,699 $ 719,501 Asset management and tax credit revenues — — — 22,684 22,684 Total revenues 546,381 70,717 21,704 103,383 742,185 Property operating expenses 187,881 29,129 6,820 65,178 289,008 Investment management expenses — — — 3,552 3,552 Depreciation and amortization — — — 211,143 211,143 Provision for real estate impairment losses — — — 1,413 1,413 General and administrative expenses — — — 31,304 31,304 Other expenses, net — — — 7,223 7,223 Total operating expenses 187,881 29,129 6,820 319,813 543,643 Net operating income (loss) 358,500 41,588 14,884 (216,430 ) 198,542 Other items included in continuing operations — — — (150,373 ) (150,373 ) Income (loss) from continuing operations $ 358,500 $ 41,588 $ 14,884 $ (366,803 ) $ 48,169 (1) Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of our consolidated apartment communities and the results of consolidated apartment communities that we do not manage, which are excluded from our measurement of segment performance but included in the related consolidated amounts, and our share of the results of operations of our unconsolidated real estate partnerships that we manage, which are included in our measurement of segment performance but excluded from the related consolidated amounts. (2) Our basis for assessing segment performance excludes the results of apartment communities sold or classified as held for sale. In the segment presentation above, the current year and prior year operating results for apartment communities sold or classified as held for sale during 2015 or 2014 are presented within the Corporate and Amounts Not Allocated to Segments column. Proportionate property net operating income, our key measurement of segment profit or loss, also excludes property management expenses and casualty gains and losses (which are included in property operating expenses) and depreciation and amortization. Accordingly, we do not allocate these amounts to our segments and they are presented within the Corporate and Amounts Not Allocated to Segments column. |
Organization (Details Textual)
Organization (Details Textual) | 9 Months Ended | |
Sep. 30, 2015UnitsPropertyshares | Dec. 31, 2014shares | |
Organization [Line Items] | ||
Common partnership units and equivalents outstanding | shares | 156,421,276 | |
Shares of Common Stock outstanding | shares | 156,421,276 | 146,403,274 |
Percentage of the Aimco Operating Partnership's common partnership units and equivalents owned by Aimco | 95.40% | |
Conventional Real Estate Operations [Member] | ||
Organization [Line Items] | ||
Percentage of proportionate property net operating income generated by segment | 90.00% | |
Affordable Real Estate Operations [Member] | ||
Organization [Line Items] | ||
Percentage of proportionate property net operating income generated by segment | 10.00% | |
Conventional Real Estate Operations [Member] | ||
Organization [Line Items] | ||
Number of owned apartment communities in segments | Property | 143 | |
Number of apartment homes in apartment communities | 41,429 | |
Conventional Real Estate Operations [Member] | Wholly And Partially Owned Consolidated Properties [Member] | ||
Organization [Line Items] | ||
Number of owned apartment communities in segments | Property | 139 | |
Number of apartment homes in apartment communities | 41,287 | |
Affordable Real Estate Operations [Member] | ||
Organization [Line Items] | ||
Number of owned apartment communities in segments | Property | 56 | |
Number of apartment homes in apartment communities | 8,685 | |
Affordable Real Estate Operations [Member] | Wholly And Partially Owned Consolidated Properties [Member] | ||
Organization [Line Items] | ||
Number of owned apartment communities in segments | Property | 49 | |
Number of apartment homes in apartment communities | 7,998 | |
AIMCO PROPERTIES, L.P [Member] | ||
Organization [Line Items] | ||
Common partnership units and equivalents outstanding | shares | 164,005,054 |
Basis of Presentation and Sum22
Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) $ in Thousands | Sep. 30, 2015USD ($)EntityUnitsProperty | Dec. 31, 2014USD ($) |
Variable Interest Entity [Line Items] | ||
Net real estate related to VIEs | $ 5,580,271 | $ 5,472,779 |
Non-recourse property debt related to VIEs | $ 3,807,699 | 4,022,809 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | Entity | 61 | |
Number of Apartment Communities | Property | 47 | |
Number of apartment homes owned by VIEs | Units | 7,459 | |
Net real estate related to VIEs | $ 342,568 | 360,160 |
Non-recourse property debt related to VIEs | $ 327,403 | $ 336,471 |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2014 | $ 87,937 |
Balance, September 30, 2015 | 87,937 |
AIMCO PROPERTIES, L.P [Member] | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2014 | 87,937 |
Distributions to preferred unitholders | (5,208) |
Net income | 5,208 |
Balance, September 30, 2015 | $ 87,937 |
Basis of Presentation and Sum24
Basis of Presentation and Summary of Significant Accounting Policies (Details 1) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, December 31, 2014 | $ 1,442,105 |
Issuance of Common Stock | 366,580 |
Repurchase of preferred stock | (27,000) |
Preferred stock dividends | (8,342) |
Common dividends and distributions | (217,067) |
Redemptions of common OP Units | (2,612) |
Amortization of stock-based compensation cost | 5,572 |
Effect of changes in ownership for consolidated entities | (1,700) |
Change in accumulated other comprehensive loss | (308) |
Other | 137 |
Net income | 191,399 |
Balance, September 30, 2015 | 1,748,764 |
Aimco Equity [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, December 31, 2014 | 1,227,735 |
Issuance of Common Stock | 366,580 |
Repurchase of preferred stock | (27,000) |
Preferred stock dividends | (8,342) |
Common dividends and distributions | (137,493) |
Amortization of stock-based compensation cost | 5,572 |
Effect of changes in ownership for consolidated entities | (4,328) |
Change in accumulated other comprehensive loss | (352) |
Other | 264 |
Net income | 179,054 |
Balance, September 30, 2015 | 1,601,690 |
Noncontrolling Interests in Consolidated Real Estate Partnerships [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, December 31, 2014 | 233,296 |
Issuance of Common Stock | 0 |
Common dividends and distributions | (72,873) |
Change in accumulated other comprehensive loss | 61 |
Other | (127) |
Net income | 4,082 |
Balance, September 30, 2015 | 164,439 |
Common Noncontrolling Interests in Aimco Operating Partnership [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, December 31, 2014 | (18,926) |
Issuance of Common Stock | 0 |
Common dividends and distributions | (6,701) |
Redemptions of common OP Units | (2,612) |
Effect of changes in ownership for consolidated entities | 2,628 |
Change in accumulated other comprehensive loss | (17) |
Net income | 8,263 |
Balance, September 30, 2015 | $ (17,365) |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies (Details 2) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Redemption of common OP Units | $ (2,612) |
Amortization of Aimco stock-based compensation cost | 5,572 |
Effect of changes in ownership for consolidated entities | (1,700) |
Change in accumulated other comprehensive loss | (308) |
Other | 137 |
Net income | 191,399 |
AIMCO PROPERTIES, L.P [Member] | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Balance, December 31, 2014 | 1,208,809 |
Balance, September 30, 2015 | 1,584,325 |
Partners Capital [Member] | AIMCO PROPERTIES, L.P [Member] | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Balance, December 31, 2014 | 1,208,809 |
Issuance of common partnership units to Aimco | 366,580 |
Repurchase of Preferred Units from Aimco | (27,000) |
Distributions to preferred units held by Aimco | (8,342) |
Distributions to common units held by Aimco | (137,493) |
Distributions to common units held by Limited Partners | (6,701) |
Redemption of common OP Units | (2,612) |
Amortization of Aimco stock-based compensation cost | 5,572 |
Effect of changes in ownership for consolidated entities | (1,700) |
Change in accumulated other comprehensive loss | (369) |
Other | 264 |
Net income | 187,317 |
Balance, September 30, 2015 | $ 1,584,325 |
Disposals and Assets Held for26
Disposals and Assets Held for Sale (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)Property | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)UnitsProperty | Sep. 30, 2014USD ($) | Dec. 31, 2014UnitsProperty | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of consolidated apartment communities disposed | Property | 8 | 30 | |||
Number of apartment homes in consolidated apartment communities disposed | Units | 2,891 | 9,067 | |||
Net income (before gains on dispositions) generated by sold properties | $ 23,769 | $ 18,186 | $ 66,133 | $ 48,169 | |
Gain on dispositions of real estate, net of tax | $ 0 | 126,329 | 130,474 | 262,483 | |
Non-recourse property debt assumed in connection with real estate dispositions | $ 6,100 | 56,900 | |||
Wholly And Partially Owned Consolidated Properties [Member] | Assets Held-for-sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of apartment homes in apartment communities | Property | 476 | 476 | |||
Number of Apartment Communities | Property | 2 | 2 | |||
Disposal Group Disposed Of By Sale Not Discontinued Operations [Member] | Wholly And Partially Owned Consolidated Properties [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net income (before gains on dispositions) generated by sold properties | $ 1,100 | 6,700 | $ 6,600 | 29,000 | |
Gain (Loss) on Sale of Properties, Applicable Income Taxes | 21,100 | 29,800 | |||
Debt prepayment penalties associated with apartment community sales included in gain on dispositions | 13,600 | 22,100 | |||
Mark To Market Portion Of Debt Extinguishment Cost Payments | $ 9,400 | $ 15,100 | |||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Wholly And Partially Owned Consolidated Properties [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Debt prepayment penalties associated with apartment community sales included in gain on dispositions | 19,800 | ||||
Mark To Market Portion Of Debt Extinguishment Cost Payments | $ 13,200 |
Other Significant Transaction27
Other Significant Transactions (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Financial Position Related to Legally Sold Portfolio [Line Items] | ||||
Real estate, net | $ 5,580,271 | $ 5,472,779 | ||
Cash and cash equivalents | 45,241 | 28,971 | $ 29,186 | $ 55,751 |
Other assets | 478,961 | 476,727 | ||
Total assets | 6,217,662 | 6,097,028 | ||
Total indebtedness | 3,935,899 | 4,135,139 | ||
Accrued and other liabilities | 324,746 | 279,077 | ||
Total liabilities | 4,380,961 | 4,566,986 | ||
Noncontrolling interests in consolidated real estate partnerships | 164,439 | 233,296 | ||
Equity attributable to Aimco and the Aimco Operating Partnership | (17,365) | (18,926) | ||
Total liabilities and equity/partners' capital | 6,217,662 | 6,097,028 | ||
Napico Portfolio [Member] | ||||
Schedule of Financial Position Related to Legally Sold Portfolio [Line Items] | ||||
Noncontrolling interests in consolidated real estate partnerships | 697 | 44,106 | ||
Equity attributable to Aimco and the Aimco Operating Partnership | 4,324 | (1,029) | ||
Total liabilities and equity/partners' capital | 158,307 | 161,135 | ||
Napico Portfolio [Member] | Other Assets [Member] | ||||
Schedule of Financial Position Related to Legally Sold Portfolio [Line Items] | ||||
Real estate, net | 107,407 | 117,851 | ||
Cash and cash equivalents | 33,715 | 23,133 | ||
Investment in unconsolidated real estate partnerships | 766 | 8,392 | ||
Other assets | 16,419 | 11,759 | ||
Total assets | 158,307 | 161,135 | ||
Napico Portfolio [Member] | Accrued liabilities and other [Member] | ||||
Schedule of Financial Position Related to Legally Sold Portfolio [Line Items] | ||||
Total indebtedness | 143,987 | 113,641 | ||
Accrued and other liabilities | 9,299 | 4,417 | ||
Total liabilities | $ 153,286 | $ 118,058 |
Other Significant Transaction28
Other Significant Transactions (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Income Related to Legally Sold Portfolio [Line Items] | ||||
Revenues | $ 246,387 | $ 246,843 | $ 735,435 | $ 742,185 |
Expenses | (182,366) | (179,376) | (544,704) | (543,643) |
Equity in loss of unconsolidated entities, gains or losses on dispositions and other, net | (1,983) | 1,733 | 631 | (57) |
Income tax benefit (expense) associated with legacy asset management business | 8,279 | 5,005 | 21,014 | 13,110 |
Loss (income) allocated to noncontrolling interests in consolidated real estate partnerships | 785 | (8,337) | (4,082) | (21,952) |
Net income (losses) of legacy asset management business attributable to Aimco and the Aimco Operating Partnership | 21,925 | 128,028 | 179,054 | 269,997 |
Napico Portfolio [Member] | ||||
Statement of Income Related to Legally Sold Portfolio [Line Items] | ||||
Income tax benefit (expense) associated with legacy asset management business | 108 | 101 | (1,916) | 411 |
Loss (income) allocated to noncontrolling interests in consolidated real estate partnerships | 2,161 | (1,768) | 4,672 | (1,580) |
Net income (losses) of legacy asset management business attributable to Aimco and the Aimco Operating Partnership | 376 | (143) | 3,514 | (1,125) |
Napico Portfolio [Member] | Other Nonoperating Income Expense [Member] | ||||
Statement of Income Related to Legally Sold Portfolio [Line Items] | ||||
Revenues | 6,120 | 9,884 | 19,054 | 21,234 |
Expenses | (5,399) | (5,114) | (15,876) | (15,992) |
Equity in loss of unconsolidated entities, gains or losses on dispositions and other, net | (2,614) | (3,246) | (2,420) | (5,198) |
Net (loss) income related to legacy asset management business | $ (1,893) | $ 1,524 | $ 758 | $ 44 |
Other Significant Transaction29
Other Significant Transactions (Details Textual) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)UnitsProperty$ / sharesshares | Sep. 30, 2014USD ($) | |
Other Significant Transactions [Line Items] | ||
Proceeds from issuance of Common Stock | $ 366,580 | $ 0 |
Preferred Stock, Redemption Amount | $ 27,000 | $ 9,516 |
Common Class A [Member] | ||
Other Significant Transactions [Line Items] | ||
Shares of Common Stock Issued (in shares) | shares | 9,430,000 | |
Gross Offering Price Per Share Of Common Stock Issued (in dollars per share) | $ / shares | $ 38.90 | |
Class A Cumulative Preferred Stock [Member] | ||
Other Significant Transactions [Line Items] | ||
Par Value Per Share of Common Stock Issued (in dollars per share) | $ / shares | $ 0.01 | |
Series A Community Reinvestment Act Preferred Stock [Member] | ||
Other Significant Transactions [Line Items] | ||
Preferred Stock, Redemption Amount | $ 27,000 | |
Napico Portfolio [Member] | ||
Other Significant Transactions [Line Items] | ||
Number of partnerships in legally sold portfolio | 14 | |
Napico Portfolio [Member] | Wholly And Partially Owned Consolidated Properties [Member] | ||
Other Significant Transactions [Line Items] | ||
Number of apartment communities | Property | 12 | |
Napico Portfolio [Member] | Unconsolidated Properties [Member] | ||
Other Significant Transactions [Line Items] | ||
Number of apartment communities | Property | 47 | |
Mezzo - Atlanta GA [Member] [Member] | ||
Other Significant Transactions [Line Items] | ||
Apartment Community Acquisition Price | $ 38,300 | |
Number of apartment homes in apartment communities | Units | 94 | |
Axiom Apartment Homes - Cambridge MA [Member] | ||
Other Significant Transactions [Line Items] | ||
Apartment Community Acquisition Price | $ 63,000 | |
Number of apartment homes in apartment communities | Units | 115 | |
Percentage of Apartment Homes Occupied | 77.00% | |
270 on Third - Cambridge MA [Member] | ||
Other Significant Transactions [Line Items] | ||
Payments to Acquire Real Estate | $ 27,900 | |
Expected Investment in Development Project | 45,000 | |
Development in Process | $ 38,800 | |
Number of apartment homes in apartment communities | Units | 91 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Assets and Liabilities Measured on Recurring Basis Fair value and input reconciliation [Roll Forward] | ||
Fair Value, Beginning Balance | $ 55,770 | $ 53,804 |
Investment accretion included in interest income | 3,142 | 2,833 |
Unrealized losses included in interest expense | (36) | (36) |
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss | 1,260 | 1,265 |
Unrealized losses included in equity and partners’ capital | (1,568) | (2,106) |
Fair Value, Ending Balance | 58,568 | 55,760 |
Available-for-sale Securities [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring Basis Fair value and input reconciliation [Roll Forward] | ||
Fair Value, Beginning Balance | 61,043 | 58,408 |
Investment accretion included in interest income | 3,142 | 2,833 |
Unrealized losses included in equity and partners’ capital | (51) | (618) |
Fair Value, Ending Balance | 64,134 | 60,623 |
Interest Rate Swap [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring Basis Fair value and input reconciliation [Roll Forward] | ||
Fair Value, Beginning Balance | (5,273) | (4,604) |
Unrealized losses included in interest expense | (36) | (36) |
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss | 1,260 | 1,265 |
Unrealized losses included in equity and partners’ capital | (1,517) | (1,488) |
Fair Value, Ending Balance | $ (5,566) | $ (4,863) |
Fair Value Measurements (Deta31
Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated fair value of consolidated debt | $ 4,100,000 | $ 4,400,000 |
Total indebtedness | 3,935,899 | 4,135,139 |
Cash Flow Hedging [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional amount of interest rate swaps | $ 50,000 | 50,300 |
Average Remaining Maturity of Interest Rate Swaps | 5 years 2 months | |
Period For Reclassification Into Earnings | 12 months | |
Amount of unrealized gains (losses) estimated to be reclassified from accumulated other comprehensive loss to earnings during the next 12 months | $ (1,700) | |
Weighted average fixed rate of interest rate swaps | 3.43% | |
Available-for-sale Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face amount of investment in available-for-sale debt securities | $ 100,900 | |
Excepted Remaining Term of Available For Sale Securities | 5 years 8 months | |
Amortized cost of the investment in available-for-sale debt securities | $ 63,600 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized cost of the investment in available-for-sale debt securities | $ 66,700 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Long-term construction loan commitment | $ 114 |
Undrawn portion of long term construction loans | 48.5 |
Contract to purchase apartment community currently under construction | 320 |
Commitments related to development, redevelopment and capital improvement activities [Member] | |
Long-term Purchase Commitment [Line Items] | |
Commitments related to capital spending activities | $ 114.8 |
Time Period of Long-term Purchase Commitment | 12 months |
Minimum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Compliance Period For Low Income Housing Tax Credit Syndication Agreements | 1 year |
Maximum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Compliance Period For Low Income Housing Tax Credit Syndication Agreements | 11 years |
Maximum [Member] | Commitments related to operations [Member] | |
Long-term Purchase Commitment [Line Items] | |
Time Period of Long-term Purchase Commitment | 1 year |
Earnings per Share_Unit (Detail
Earnings per Share/Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Income from continuing operations | $ 23,769 | $ 18,186 | $ 66,133 | $ 48,169 |
Gain on dispositions of real estate, net of tax | 0 | 126,329 | 130,474 | 262,483 |
Income from continuing operations and gain on dispositions attributable to noncontrolling interests | (1,844) | (16,487) | (17,553) | (40,655) |
Income attributable to preferred equity holders | (2,757) | (2,875) | (9,037) | (5,087) |
Loss (income) attributable to participating securities | 11 | (447) | (690) | (962) |
Income from continuing operations attributable to the company's common equity holders | 19,179 | 124,706 | 169,327 | 263,948 |
Net income | 23,769 | 144,515 | 196,607 | 310,652 |
Net income attributable to noncontrolling interests | (1,844) | (16,487) | (17,553) | (40,655) |
Net income attributable to preferred equity holders | (2,757) | (2,875) | (9,037) | (5,087) |
Net loss (income) attributable to participating securities | 11 | (447) | (690) | (962) |
Net income attributable to the company's common equity holders | $ 19,179 | $ 124,706 | $ 169,327 | $ 263,948 |
Denominator: | ||||
Weighted average common shares/units outstanding – basic (in shares) | 155,639 | 145,672 | 154,994 | 145,601 |
Dilutive potential common shares/units (in shares) | 369 | 432 | 418 | 323 |
Weighted average common shares/units outstanding – diluted (in shares) | 156,008 | 146,104 | 155,412 | 145,924 |
Earnings attributable to the company per common share/unit – basic: | ||||
Income from continuing operations | $ 0.12 | $ 0.86 | $ 1.09 | $ 1.81 |
Net Income | 0.12 | 0.86 | 1.09 | 1.81 |
Earnings attributable to the company per common share/unit - diluted: | ||||
Income from continuing operations (in dollars per share/unit) | 0.12 | 0.85 | 1.09 | 1.81 |
Net income | $ 0.12 | $ 0.85 | $ 1.09 | $ 1.81 |
AIMCO PROPERTIES, L.P [Member] | ||||
Numerator: | ||||
Income from continuing operations | $ 23,769 | $ 18,186 | $ 66,133 | $ 48,169 |
Gain on dispositions of real estate, net of tax | 0 | 126,329 | 130,474 | 262,483 |
Income from continuing operations and gain on dispositions attributable to noncontrolling interests | 785 | (8,337) | (4,082) | (21,952) |
Income attributable to preferred equity holders | (4,493) | (4,476) | (14,245) | (9,895) |
Loss (income) attributable to participating securities | 11 | (447) | (690) | (962) |
Income from continuing operations attributable to the company's common equity holders | 20,072 | 131,255 | 177,590 | 277,843 |
Net income | 23,769 | 144,515 | 196,607 | 310,652 |
Net income attributable to noncontrolling interests | 785 | (8,337) | (4,082) | (21,952) |
Net income attributable to preferred equity holders | (4,493) | (4,476) | (14,245) | (9,895) |
Net loss (income) attributable to participating securities | 11 | (447) | (690) | (962) |
Net income attributable to the company's common equity holders | $ 20,072 | $ 131,255 | $ 177,590 | $ 277,843 |
Denominator: | ||||
Weighted average common shares/units outstanding – basic (in shares) | 163,241 | 153,337 | 162,616 | 153,326 |
Dilutive potential common shares/units (in shares) | 369 | 432 | 418 | 323 |
Weighted average common shares/units outstanding – diluted (in shares) | 163,610 | 153,769 | 163,034 | 153,649 |
Earnings attributable to the company per common share/unit – basic: | ||||
Income from continuing operations | $ 0.12 | $ 0.86 | $ 1.09 | $ 1.81 |
Net Income | 0.12 | 0.86 | 1.09 | 1.81 |
Earnings attributable to the company per common share/unit - diluted: | ||||
Income from continuing operations (in dollars per share/unit) | 0.12 | 0.85 | 1.09 | 1.81 |
Net income | $ 0.12 | $ 0.85 | $ 1.09 | $ 1.81 |
Earnings per Share_Unit (Deta34
Earnings per Share/Unit (Details Textual) - USD ($) $ in Thousands, shares in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements (in shares) | 1.4 | ||
Participating securities outstanding (in shares) | 0.7 | 0.5 | |
Preferred OP Units, Distributions, Low Range | 1.90% | ||
Preferred OP Units, Distributions, High Range | 8.80% | ||
Preferred OP Units Outstanding (in shares) | 3.3 | ||
Preferred noncontrolling interests in Aimco Operating Partnership | $ 87,937 | $ 87,937 | |
Number of Shares of Common Stock Required to Redeem Preferred OP Units Tendered for Redemption, if Parent Chooses to Redeem in Shares Rather than Cash (in shares) | 2.4 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Summary information for the reportable segments | |||||
Rental and other property revenues | $ 240,382 | $ 239,873 | $ 717,308 | $ 719,501 | |
Tax credit and asset management revenues | 6,005 | 6,970 | 18,127 | 22,684 | |
Total revenues | 246,387 | 246,843 | 735,435 | 742,185 | |
Property operating expenses | 88,621 | 95,240 | 272,043 | 289,008 | |
Investment management expenses | 1,905 | 1,279 | 4,594 | 3,552 | |
Depreciation and amortization | 77,237 | 69,437 | 226,819 | 211,143 | |
Impairment of Real Estate | 0 | 1,413 | 0 | 1,413 | |
General and administrative expenses | 11,013 | 10,658 | 33,727 | 31,304 | |
Other expenses, net | 3,590 | 1,349 | 7,521 | 7,223 | |
Total operating expenses | 182,366 | 179,376 | 544,704 | 543,643 | |
Net operating income (loss) | 64,021 | 67,467 | 190,731 | 198,542 | |
Other items included in continuing operations | (40,252) | (49,281) | (124,598) | (150,373) | |
Income from continuing operations | 23,769 | 18,186 | 66,133 | 48,169 | |
Operating Segments [Member] | Conventional Real Estate Operations [Member] | |||||
Summary information for the reportable segments | |||||
Rental and other property revenues | 204,246 | 187,063 | 599,977 | 546,381 | |
Total revenues | 204,246 | 187,063 | 599,977 | 546,381 | |
Property operating expenses | 68,456 | 63,869 | 200,660 | 187,881 | |
Total operating expenses | 68,456 | 63,869 | 200,660 | 187,881 | |
Net operating income (loss) | 135,790 | 123,194 | 399,317 | 358,500 | |
Income from continuing operations | 135,790 | 123,194 | 399,317 | 358,500 | |
Operating Segments [Member] | Affordable Real Estate Operations [Member] | |||||
Summary information for the reportable segments | |||||
Rental and other property revenues | 24,388 | 23,724 | 72,779 | 70,717 | |
Total revenues | 24,388 | 23,724 | 72,779 | 70,717 | |
Property operating expenses | 9,631 | 9,274 | 28,965 | 29,129 | |
Impairment of Real Estate | 0 | ||||
Total operating expenses | 9,631 | 9,274 | 28,965 | 29,129 | |
Net operating income (loss) | 14,757 | 14,450 | 43,814 | 41,588 | |
Income from continuing operations | 14,757 | 14,450 | 43,814 | 41,588 | |
Proportionate Adjustments [Member] | |||||
Summary information for the reportable segments | |||||
Rental and other property revenues | [1] | 10,219 | 7,337 | 28,269 | 21,704 |
Total revenues | [1] | 10,219 | 7,337 | 28,269 | 21,704 |
Property operating expenses | [1] | 3,434 | 2,422 | 10,274 | 6,820 |
Total operating expenses | [1] | 3,434 | 2,422 | 10,274 | 6,820 |
Net operating income (loss) | [1] | 6,785 | 4,915 | 17,995 | 14,884 |
Income from continuing operations | [1] | 6,785 | 4,915 | 17,995 | 14,884 |
Corporate Nonsegment And Other Reconciling Items Member [Member] | |||||
Summary information for the reportable segments | |||||
Rental and other property revenues | [2] | 1,529 | 21,749 | 16,283 | 80,699 |
Tax credit and asset management revenues | [2] | 6,005 | 6,970 | 18,127 | 22,684 |
Total revenues | [2] | 7,534 | 28,719 | 34,410 | 103,383 |
Property operating expenses | [2] | 7,100 | 19,675 | 32,144 | 65,178 |
Investment management expenses | [2] | 1,905 | 1,279 | 4,594 | 3,552 |
Depreciation and amortization | [2] | 77,237 | 69,437 | 226,819 | 211,143 |
Impairment of Real Estate | 1,413 | 1,413 | |||
General and administrative expenses | [2] | 11,013 | 10,658 | 33,727 | 31,304 |
Other expenses, net | [2] | 3,590 | 1,349 | 7,521 | 7,223 |
Total operating expenses | [2] | 100,845 | 103,811 | 304,805 | 319,813 |
Net operating income (loss) | [2] | (93,311) | (75,092) | (270,395) | (216,430) |
Other items included in continuing operations | [2] | (40,252) | (49,281) | (124,598) | (150,373) |
Income from continuing operations | [2] | $ (133,563) | $ (124,373) | $ (394,993) | $ (366,803) |
[1] | Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of our consolidated apartment communities and the results of consolidated apartment communities that we do not manage, which are excluded from our measurement of segment performance but included in the related consolidated amounts, and our share of the results of operations of our unconsolidated real estate partnerships that we manage, which are included in our measurement of segment performance but excluded from the related consolidated amounts. | ||||
[2] | Our basis for assessing segment performance excludes the results of apartment communities sold or classified as held for sale. In the segment presentation above, the current year and prior year operating results for apartment communities sold or classified as held for sale during 2015 or 2014 are presented within the Corporate and Amounts Not Allocated to Segments column. |
Business Segments (Details Text
Business Segments (Details Textual) $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($)UnitsPropertySegment | Sep. 30, 2014USD ($) | |
Business Segments (Textual) [Abstract] | ||
Number of reportable segments | Segment | 2 | |
Conventional Real Estate Operations [Member] | ||
Business Segments (Textual) [Abstract] | ||
Number of owned apartment communities in segments | Property | 143 | |
Number of apartment homes in apartment communities | 41,429 | |
Affordable Real Estate Operations [Member] | ||
Business Segments (Textual) [Abstract] | ||
Number of owned apartment communities in segments | Property | 56 | |
Number of apartment homes in apartment communities | 8,685 | |
Operating Segments [Member] | Conventional Real Estate Operations [Member] | ||
Business Segments (Textual) [Abstract] | ||
Capital additions related to segments | $ | $ 258.7 | $ 270.4 |
Operating Segments [Member] | Affordable Real Estate Operations [Member] | ||
Business Segments (Textual) [Abstract] | ||
Capital additions related to segments | $ | $ 6.5 | $ 6.6 |