Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-39686 | |
Entity Registrant Name | APARTMENT INCOME REIT CORP. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 84-1299717 | |
Entity Address, Address Line One | 4582 South Ulster Street | |
Entity Address, Address Line Two | Suite 1700 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 303 | |
Local Phone Number | 757-8101 | |
Title of 12(b) Security | Class A Common Stock (Apartment Income REIT Corp.) | |
Trading Symbol | AIRC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 145,104,221 | |
Entity Central Index Key | 0001820877 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Apartment Income REIT, L.P. | ||
Document Information [Line Items] | ||
Entity File Number | 0-24497 | |
Entity Registrant Name | APARTMENT INCOME REIT, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1275621 | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 303 | |
Local Phone Number | 757-8101 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000926660 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Buildings and improvements | $ 6,428,478 | $ 6,324,857 |
Land | 1,297,414 | 1,285,710 |
Total real estate | 7,725,892 | 7,610,567 |
Accumulated depreciation | (2,319,064) | (2,245,589) |
Net real estate | 5,406,828 | 5,364,978 |
Cash and cash equivalents | 87,795 | 91,401 |
Restricted cash | 26,942 | 26,090 |
Investment in unconsolidated real estate partnerships | 324,876 | 336,077 |
Goodwill | 32,286 | 32,286 |
Other assets, net | 319,579 | 283,920 |
Total assets | 6,198,306 | 6,134,752 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt, net | 2,217,191 | 2,223,791 |
Term loans, net | 473,915 | 473,701 |
Revolving credit facility borrowings | 260,000 | 115,000 |
Unsecured notes payable, net | 397,943 | 397,852 |
Total indebtedness | 3,349,049 | 3,210,344 |
Accrued liabilities and other | 303,442 | 296,894 |
Total liabilities | 3,652,491 | 3,507,238 |
Commitments and Contingencies | ||
Preferred noncontrolling interests in AIR Operating Partnership | 77,140 | 77,140 |
Equity: | ||
Perpetual Preferred Stock | 2,000 | 2,000 |
Common Stock, $0.01 par value, 1,021,175,000 shares authorized at March 31, 2024 and December 31, 2023, and 145,104,220 and 144,925,604 shares issued/outstanding at March 31, 2024 and December 31, 2023, respectively | 1,451 | 1,449 |
Additional paid-in capital | 3,285,257 | 3,284,716 |
Accumulated other comprehensive income | 20,473 | 22,392 |
Distributions in excess of earnings | (1,029,944) | (958,661) |
Total AIR equity | 2,279,237 | 2,351,896 |
Noncontrolling interests in consolidated real estate partnerships | (89,261) | (85,973) |
Common noncontrolling interests in AIR Operating Partnership | 278,699 | 284,451 |
Total equity | 2,468,675 | 2,550,374 |
Total liabilities, preferred noncontrolling interests in AIR Operating Partnership, and equity | $ 6,198,306 | $ 6,134,752 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,021,175,000 | 1,021,175,000 |
Common stock, shares issued | 145,104,220 | 144,925,604 |
Common stock, shares outstanding | 145,104,220 | 144,925,604 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operation - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUES | ||
Total revenues | $ 195,622 | $ 211,993 |
EXPENSES | ||
Property operating expenses | 59,542 | 67,777 |
Property management expenses | 8,197 | 7,676 |
Depreciation and amortization | 79,754 | 95,666 |
General and administrative expenses | 10,336 | 7,180 |
Other expenses, net | 11,246 | 3,660 |
Operating expenses | 169,075 | 181,959 |
Interest income | 2,052 | 1,525 |
Interest expense | (35,282) | (36,187) |
Loss on extinguishment of debt | 0 | (2,008) |
Gain (loss) on derivative instruments, net | 9,574 | (2,138) |
Loss from unconsolidated real estate partnerships | (6,850) | (1,035) |
Loss before income tax expense | (3,959) | (9,809) |
Income tax expense | (319) | (139) |
Net loss | (4,278) | (9,948) |
Noncontrolling interests: | ||
Net income attributable to noncontrolling interests in consolidated real estate partnerships | (1,101) | (685) |
Net income attributable to preferred noncontrolling interests in AIR Operating Partnership | (1,570) | (1,570) |
Net loss attributable to common noncontrolling interests in AIR Operating Partnership | 357 | 826 |
Net income attributable to noncontrolling interests | (2,314) | (1,429) |
Net loss attributable to AIR | (6,592) | (11,377) |
Net income attributable to AIR preferred stockholders | (44) | (43) |
Net loss (income) attributable to participating securities | 66 | (37) |
Net loss attributable to AIR common stockholders | $ (6,570) | $ (11,457) |
Net loss attributable to AIR common stockholders per share - basic (in dollars per share) | $ (0.05) | $ (0.08) |
Net loss attributable to AIR common stockholders per share - diluted (in dollars per share) | $ (0.05) | $ (0.08) |
Weighted average common shares/units outstanding - basic (in shares) | 144,550,000 | 148,810,000 |
Weighted average common shares/units outstanding - diluted | 144,550,000 | 148,810,000 |
Rental and other property revenues | ||
REVENUES | ||
Total revenues | $ 192,382 | $ 209,923 |
Other revenues | ||
REVENUES | ||
Total revenues | $ 3,240 | $ 2,070 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (4,278) | $ (9,948) |
Unrealized loss on derivative instruments, net | 0 | (19,748) |
Reclassification of interest rate derivative (gain) loss to net loss | (2,101) | 4,154 |
Comprehensive loss | (6,379) | (25,542) |
Comprehensive income attributable to noncontrolling interests | (2,132) | (327) |
Comprehensive loss attributable to the AIR Operating Partnership | $ (8,511) | $ (25,869) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Total AIR Equity | Perpetual Preferred Stock | Common Stock | Additional Paid- in Capital | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Earnings | Noncontrolling Interests in Consolidated Real Estate Partnerships | Common Noncontrolling Interests in AIR Operating Partnership |
Beginning balance (in shares) at Dec. 31, 2022 | 20 | ||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 149,086,548 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 2,319,306 | $ 2,156,417 | $ 2,000 | $ 1,491 | $ 3,436,635 | $ 43,562 | $ (1,327,271) | $ (78,785) | $ 241,674 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of Common Stock | 22,383 | 22,383 | |||||||
Redemption of AIR Operating Partnership units | (10,529) | (10,529) | |||||||
Amortization of share-based compensation cost | 3,126 | 1,971 | 1,971 | 1,155 | |||||
Effect of changes in ownership of consolidated entities | 0 | (6,102) | (6,102) | 0 | 6,102 | ||||
Contributions from noncontrolling interests in consolidated real estate partnerships | 1,567 | 1,567 | |||||||
Change in accumulated other comprehensive income | (15,594) | (14,492) | (14,492) | (1,102) | |||||
Net (loss) income | (11,518) | (11,377) | (11,377) | 685 | (826) | ||||
Common Stock dividends | (66,939) | (66,939) | (66,939) | ||||||
Distributions to noncontrolling interests | (7,037) | (2,485) | (4,552) | ||||||
Other, net (in shares) | 113,136 | ||||||||
Other, net | 137 | 137 | $ 1 | 69 | 67 | 1 | (1) | ||
Ending balance at Mar. 31, 2023 | $ 2,234,902 | 2,059,615 | $ 2,000 | $ 1,492 | 3,432,573 | 29,070 | (1,405,520) | (79,017) | 254,304 |
Ending balance (in shares) at Mar. 31, 2023 | 149,199,684 | ||||||||
Ending balance (in shares) at Mar. 31, 2023 | 20 | ||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 20 | ||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 144,925,604 | 144,925,604 | |||||||
Beginning balance at Dec. 31, 2023 | $ 2,550,374 | 2,351,896 | $ 2,000 | $ 1,449 | 3,284,716 | 22,392 | (958,661) | (85,973) | 284,451 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Redemption of AIR Operating Partnership units | (3,793) | (3,793) | |||||||
Amortization of share-based compensation cost | 3,717 | 2,300 | 2,300 | 1,417 | |||||
Effect of changes in ownership of consolidated entities | 0 | (1,839) | (1,839) | 1,839 | |||||
Change in accumulated other comprehensive income | (2,101) | (1,919) | (1,919) | (182) | |||||
Net (loss) income | (5,848) | (6,592) | (6,592) | 1,101 | (357) | ||||
Common Stock dividends | (64,649) | (64,649) | (64,649) | ||||||
Distributions to noncontrolling interests | (9,071) | (4,395) | (4,676) | ||||||
Other, net (in shares) | 178,616 | ||||||||
Other, net | 46 | 40 | $ 2 | 80 | 0 | (42) | 6 | 0 | |
Ending balance at Mar. 31, 2024 | $ 2,468,675 | $ 2,279,237 | $ 2,000 | $ 1,451 | $ 3,285,257 | $ 20,473 | $ (1,029,944) | $ (89,261) | $ 278,699 |
Ending balance (in shares) at Mar. 31, 2024 | 145,104,220 | 145,104,220 | |||||||
Ending balance (in shares) at Mar. 31, 2024 | 20 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (4,278) | $ (9,948) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 79,754 | 95,666 |
Loss on extinguishment of debt | 0 | 2,008 |
Income tax expense | 319 | 139 |
Other, net | 13,784 | 5,955 |
Net changes in operating assets and operating liabilities | (12,676) | (4,926) |
Net cash provided by operating activities | 76,903 | 88,894 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of real estate | (90,497) | (180,673) |
Capital expenditures | (19,682) | (34,278) |
Other investing activities, net | (3,207) | 23,689 |
Net cash used in investing activities | (113,386) | (191,262) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from non-recourse property debt | 0 | 320,000 |
Principal repayments of non-recourse property debt | (7,179) | (96,294) |
Net borrowings on (repayments of) revolving credit facility | 145,000 | (217,000) |
Repurchases of common partnership units held by General Partner and Special Limited Partner | (24,595) | 0 |
Payment of dividends to holders of Common Stock | (65,105) | (67,121) |
Redemption of preferred units and other | (3,793) | (10,529) |
Other financing activities, net | (10,599) | (13,007) |
Net cash provided by (used in) financing activities | 33,729 | (83,951) |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (2,754) | (186,319) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 117,491 | 301,405 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ 114,737 | $ 115,086 |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets OP - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Buildings and improvements | $ 6,428,478 | $ 6,324,857 |
Land | 1,297,414 | 1,285,710 |
Total real estate | 7,725,892 | 7,610,567 |
Accumulated depreciation | (2,319,064) | (2,245,589) |
Net real estate | 5,406,828 | 5,364,978 |
Cash and cash equivalents | 87,795 | 91,401 |
Restricted cash | 26,942 | 26,090 |
Investment in unconsolidated real estate partnerships | 324,876 | 336,077 |
Goodwill | 32,286 | 32,286 |
Other assets, net | 319,579 | 283,920 |
Total assets | 6,198,306 | 6,134,752 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt, net | 2,217,191 | 2,223,791 |
Term loans, net | 473,915 | 473,701 |
Revolving credit facility borrowings | 260,000 | 115,000 |
Unsecured notes payable, net | 397,943 | 397,852 |
Total indebtedness | 3,349,049 | 3,210,344 |
Accrued liabilities and other | 303,442 | 296,894 |
Total liabilities | 3,652,491 | 3,507,238 |
Commitments and Contingencies | ||
Preferred noncontrolling interests in AIR Operating Partnership | 77,140 | 77,140 |
Equity: | ||
Noncontrolling interests in consolidated real estate partnerships | (89,261) | (85,973) |
Total equity | 2,468,675 | 2,550,374 |
Total liabilities, preferred noncontrolling interests in AIR Operating Partnership, and equity | 6,198,306 | 6,134,752 |
Apartment Income REIT, L.P. | ||
ASSETS | ||
Buildings and improvements | 6,428,478 | 6,324,857 |
Land | 1,297,414 | 1,285,710 |
Total real estate | 7,725,892 | 7,610,567 |
Accumulated depreciation | (2,319,064) | (2,245,589) |
Net real estate | 5,406,828 | 5,364,978 |
Cash and cash equivalents | 87,795 | 91,401 |
Restricted cash | 26,942 | 26,090 |
Investment in unconsolidated real estate partnerships | 324,876 | 336,077 |
Goodwill | 32,286 | 32,286 |
Other assets, net | 319,579 | 283,920 |
Total assets | 6,198,306 | 6,134,752 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt, net | 2,217,191 | 2,223,791 |
Term loans, net | 473,915 | 473,701 |
Revolving credit facility borrowings | 260,000 | 115,000 |
Unsecured notes payable, net | 397,943 | 397,852 |
Total indebtedness | 3,349,049 | 3,210,344 |
Accrued liabilities and other | 303,442 | 296,894 |
Total liabilities | 3,652,491 | 3,507,238 |
Commitments and Contingencies | ||
Preferred noncontrolling interests in AIR Operating Partnership | 77,140 | 77,140 |
Equity: | ||
Preferred units | 2,000 | 2,000 |
General Partner and Special Limited Partner | 2,277,237 | 2,349,896 |
Limited Partners | 278,699 | 284,451 |
Partners’ capital attributable to the AIR Operating Partnership | 2,557,936 | 2,636,347 |
Noncontrolling interests in consolidated real estate partnerships | (89,261) | (85,973) |
Total equity | 2,468,675 | 2,550,374 |
Total liabilities, preferred noncontrolling interests in AIR Operating Partnership, and equity | $ 6,198,306 | $ 6,134,752 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Operations OP - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUES | ||
Total revenues | $ 195,622 | $ 211,993 |
EXPENSES | ||
Property operating expenses | 59,542 | 67,777 |
Property management expenses | 8,197 | 7,676 |
Depreciation and amortization | 79,754 | 95,666 |
General and administrative expenses | 10,336 | 7,180 |
Other expenses, net | 11,246 | 3,660 |
Operating expenses | 169,075 | 181,959 |
Interest income | 2,052 | 1,525 |
Interest expense | (35,282) | (36,187) |
Loss on extinguishment of debt | 0 | (2,008) |
Gain (loss) on derivative instruments, net | 9,574 | (2,138) |
Loss from unconsolidated real estate partnerships | (6,850) | (1,035) |
Loss before income tax expense | (3,959) | (9,809) |
Income tax expense | (319) | (139) |
Net income (loss) | (4,278) | (9,948) |
Net income attributable to noncontrolling interests in consolidated real estate partnerships | (1,101) | (685) |
Net loss attributable to AIR | (6,592) | (11,377) |
Net income attributable to AIR preferred stockholders | (44) | (43) |
Net loss (income) attributable to participating securities | 66 | (37) |
Net loss attributable to AIR common stockholders | $ (6,570) | $ (11,457) |
Net loss attributable to AIR common stockholders per share - basic (in dollars per share) | $ (0.05) | $ (0.08) |
Net loss attributable to AIR common stockholders per share - diluted (in dollars per share) | $ (0.05) | $ (0.08) |
Weighted average common shares/units outstanding - basic (in shares) | 144,550,000 | 148,810,000 |
Weighted average common shares/units outstanding - diluted | 144,550,000 | 148,810,000 |
Rental and other property revenues | ||
REVENUES | ||
Total revenues | $ 192,382 | $ 209,923 |
Other revenues | ||
REVENUES | ||
Total revenues | 3,240 | 2,070 |
Apartment Income REIT, L.P. | ||
REVENUES | ||
Total revenues | 195,622 | 211,993 |
EXPENSES | ||
Property operating expenses | 59,542 | 67,777 |
Property management expenses | 8,197 | 7,676 |
Depreciation and amortization | 79,754 | 95,666 |
General and administrative expenses | 10,336 | 7,180 |
Other expenses, net | 11,246 | 3,660 |
Operating expenses | 169,075 | 181,959 |
Interest income | 2,052 | 1,525 |
Interest expense | (35,282) | (36,187) |
Loss on extinguishment of debt | 0 | (2,008) |
Gain (loss) on derivative instruments, net | 9,574 | (2,138) |
Loss from unconsolidated real estate partnerships | (6,850) | (1,035) |
Loss before income tax expense | (3,959) | (9,809) |
Income tax expense | (319) | (139) |
Net income (loss) | (4,278) | (9,948) |
Net income attributable to noncontrolling interests in consolidated real estate partnerships | (1,101) | (685) |
Net loss attributable to AIR | (5,379) | (10,633) |
Net income attributable to AIR preferred stockholders | (1,614) | (1,613) |
Net loss (income) attributable to participating securities | 66 | (37) |
Net loss attributable to AIR common stockholders | $ (6,927) | $ (12,283) |
Net loss attributable to AIR common stockholders per share - basic (in dollars per share) | $ (0.04) | $ (0.08) |
Net loss attributable to AIR common stockholders per share - diluted (in dollars per share) | $ (0.04) | $ (0.08) |
Weighted average common shares/units outstanding - basic (in shares) | 154,323,000 | 159,284,000 |
Weighted average common shares/units outstanding - diluted | 154,323,000 | 159,284,000 |
Apartment Income REIT, L.P. | Rental and other property revenues | ||
REVENUES | ||
Total revenues | $ 192,382 | $ 209,923 |
Apartment Income REIT, L.P. | Other revenues | ||
REVENUES | ||
Total revenues | $ 3,240 | $ 2,070 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Comprehensive Loss OP - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net loss | $ (4,278) | $ (9,948) |
Unrealized loss on derivative instruments, net | 0 | (19,748) |
Reclassification of interest rate derivative (gain) loss to net loss | (2,101) | 4,154 |
Comprehensive loss | (6,379) | (25,542) |
Comprehensive income attributable to noncontrolling interests | (2,132) | (327) |
Comprehensive loss attributable to the AIR Operating Partnership | (8,511) | (25,869) |
Apartment Income REIT, L.P. | ||
Net loss | (4,278) | (9,948) |
Unrealized loss on derivative instruments, net | 0 | (19,748) |
Reclassification of interest rate derivative (gain) loss to net loss | (2,101) | 4,154 |
Comprehensive loss | (6,379) | (25,542) |
Comprehensive income attributable to noncontrolling interests | (1,101) | (685) |
Comprehensive loss attributable to the AIR Operating Partnership | $ (7,480) | $ (26,227) |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Partners' Capital - USD ($) $ in Thousands | Total | Apartment Income REIT, L.P. | Apartment Income REIT, L.P. Preferred Units | Apartment Income REIT, L.P. General Partner and Special Limited Partner | Apartment Income REIT, L.P. Limited Partners | Apartment Income REIT, L.P. Partners' Capital Attributable to the AIR Operating Partnership | Apartment Income REIT, L.P. Noncontrolling Interests in Consolidated Real Estate Partnerships |
Beginning balance at Dec. 31, 2022 | $ 2,319,306 | $ 2,000 | $ 2,154,417 | $ 241,674 | $ 2,398,091 | $ (78,785) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Issuance of AIR Operating Partnership units | 22,383 | 22,383 | 22,383 | ||||
Redemption of common partnership units | (10,529) | (10,529) | (10,529) | ||||
Amortization of share-based compensation cost | 3,126 | 1,971 | 1,155 | 3,126 | |||
Effect of changes in ownership of consolidated entities | $ 0 | (6,102) | 6,102 | 0 | 0 | ||
Contributions from noncontrolling interests in consolidated real estate partnerships | 1,567 | 1,567 | 1,567 | ||||
Change in accumulated other comprehensive income | (15,594) | (15,594) | (14,492) | (1,102) | (15,594) | ||
Net (loss) income | (11,518) | (11,518) | (11,377) | (826) | (12,203) | 685 | |
Distributions to noncontrolling interests | (71,491) | (66,939) | (4,552) | (71,491) | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (7,037) | (2,485) | (2,485) | ||||
Other, net | 137 | 137 | (1) | 136 | 1 | ||
Ending balance at Mar. 31, 2023 | 2,234,902 | 2,000 | 2,057,615 | 254,304 | 2,313,919 | (79,017) | |
Beginning balance at Dec. 31, 2023 | 2,550,374 | 2,000 | 2,349,896 | 284,451 | 2,636,347 | (85,973) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Redemption of common partnership units | (3,793) | (3,793) | (3,793) | ||||
Amortization of share-based compensation cost | 3,717 | 2,300 | 1,417 | 3,717 | |||
Effect of changes in ownership of consolidated entities | 0 | (1,839) | 1,839 | 0 | 0 | ||
Change in accumulated other comprehensive income | (2,101) | (2,101) | (1,919) | (182) | (2,101) | ||
Net (loss) income | (5,848) | (5,848) | (6,592) | (357) | (6,949) | 1,101 | |
Distributions to noncontrolling interests | (64,649) | (64,649) | 0 | (64,649) | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ (9,071) | (9,071) | (4,676) | (4,676) | (4,395) | ||
Other, net | 46 | 40 | 0 | 40 | 6 | ||
Ending balance at Mar. 31, 2024 | $ 2,468,675 | $ 2,000 | $ 2,277,237 | $ 278,699 | $ 2,557,936 | $ (89,261) |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Cash Flows OP - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (4,278) | $ (9,948) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 79,754 | 95,666 |
Loss on extinguishment of debt | 0 | 2,008 |
Income tax expense | 319 | 139 |
Other, net | 13,784 | 5,955 |
Net changes in operating assets and operating liabilities | (12,676) | (4,926) |
Net cash provided by operating activities | 76,903 | 88,894 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of real estate | (90,497) | (180,673) |
Capital expenditures | (19,682) | (34,278) |
Other investing activities, net | (3,207) | 23,689 |
Net cash used in investing activities | (113,386) | (191,262) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from non-recourse property debt | 0 | 320,000 |
Principal repayments of non-recourse property debt | (7,179) | (96,294) |
Net borrowings on (repayments of) revolving credit facility | 145,000 | (217,000) |
Repurchases of common partnership units held by General Partner and Special Limited Partner | (24,595) | 0 |
Redemption of preferred units and other | (3,793) | (10,529) |
Other financing activities, net | (10,599) | (13,007) |
Net cash provided by (used in) financing activities | 33,729 | (83,951) |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (2,754) | (186,319) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 117,491 | 301,405 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | 114,737 | 115,086 |
Apartment Income REIT, L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | (4,278) | (9,948) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 79,754 | 95,666 |
Loss on extinguishment of debt | 0 | 2,008 |
Income tax expense | 319 | 139 |
Other, net | 13,784 | 5,955 |
Net changes in operating assets and operating liabilities | (12,676) | (4,926) |
Net cash provided by operating activities | 76,903 | 88,894 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of real estate | (90,497) | (180,673) |
Capital expenditures | (19,682) | (34,278) |
Other investing activities, net | (3,207) | 23,689 |
Net cash used in investing activities | (113,386) | (191,262) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from non-recourse property debt | 0 | 320,000 |
Principal repayments of non-recourse property debt | (7,179) | (96,294) |
Net borrowings on (repayments of) revolving credit facility | 145,000 | (217,000) |
Repurchases of common partnership units held by General Partner and Special Limited Partner | (24,595) | 0 |
Payment of distributions to General Partner and Special Limited Partner | (65,105) | (67,121) |
Redemption of preferred units and other | (3,793) | (10,529) |
Other financing activities, net | (10,599) | (13,007) |
Net cash provided by (used in) financing activities | 33,729 | (83,951) |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (2,754) | (186,319) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 117,491 | 301,405 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ 114,737 | $ 115,086 |
Basis of Presentation and Organ
Basis of Presentation and Organization | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | Basis of Presentation and Organization Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Apartment Income REIT Corp. (“AIR”), Apartment Income REIT, L.P. (“AIR Operating Partnership”), and their consolidated subsidiaries. The AIR Operating Partnership’s condensed consolidated financial statements include the accounts of the AIR Operating Partnership and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As used herein, and except where the context otherwise requires, “partnership” refers to a limited partnership or a limited liability company and “partner” refers to a partner in a limited partnership or a member of a limited liability company. Interests in the AIR Operating Partnership that are held by limited partners other than AIR are reflected in AIR’s accompanying condensed consolidated balance sheets as noncontrolling interests in the AIR Operating Partnership. Interests in partnerships consolidated by the AIR Operating Partnership that are held by third parties are reflected in AIR’s and AIR Operating Partnership’s accompanying condensed consolidated balance sheets as noncontrolling interests in consolidated real estate partnerships. Except as the context otherwise requires, “we,” “our,” and “us” refer to AIR, the AIR Operating Partnership, and their consolidated subsidiaries, collectively. 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 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 months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The condensed consolidated balance sheets of AIR, the AIR Operating Partnership, and their consolidated subsidiaries as of December 31, 2023, 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 AIR’s and the AIR Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2023. Except where indicated, the footnotes refer to AIR, the AIR Operating Partnership and their consolidated subsidiaries, collectively. Reclassifications Certain prior period balances in the condensed consolidated statements of operations and statements of cash flows have been combined or reclassified to conform to current period presentation pursuant to Rule 10-01(a)(2) of Regulation S-X of the SEC. These changes had no impact on net income (loss), cash flows, assets and liabilities, equity or partners’ capital previously reported. Organization and Business AIR is a self-administered and self-managed REIT. AIR owns, through its wholly-owned subsidiaries, the general partner interest and special limited partner interest in AIR Operating Partnership. AIR Operating Partnership conducts all of the business of AIR, which is focused on the ownership of stabilized multi-family properties located in top markets including eight important geographic concentrations: Boston; Philadelphia; Washington, D.C.; Miami; Denver; the San Francisco Bay Area; Los Angeles; and San Diego. We own and operate a portfolio of stabilized apartment communities, diversified by both geography and price point, in 10 states and the District of Columbia. As of March 31, 2024, our portfolio included 76 apartment communities with 27,015 apartment homes, in which we held an average ownership of approximately 82%. Interests in the AIR Operating Partnership that are held by limited partners other than AIR are referred to as OP Units. OP Units include common partnership units, which we refer to as common OP Units, as well as preferred partnership units, which we refer to as preferred OP Units. As of March 31, 2024, after elimination of units held by consolidated subsidiaries, the AIR Operating Partnership had 158,247,357 common OP Units and equivalents outstanding. As of March 31, 2024, AIR owned 145,104,220 of the common OP Units of the AIR Operating Partnership and AIR had an equal number of shares of its Class A Common Stock outstanding, which we refer to as Common Stock. AIR’s ownership of the total common OP Units outstanding represents a 91.7% legal interest in the AIR Operating Partnership and a 93.7% economic interest. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation We consolidate variable interest entities (“VIE”), in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. As of March 31, 2024 and December 31, 2023, AIR consolidated five VIEs, including the AIR Operating Partnership. Please see Note 1 0 for further discussion regarding our consolidated VIEs. Redeemable Preferred OP Units The AIR Operating Partnership has various classes of preferred OP Units. Each class of preferred OP Units is currently redeemable at the holders’ option. The AIR Operating Partnership, at its sole discretion, may settle such redemption requests in cash or cause AIR to issue shares of its Common Stock with a value equal to the redemption price. The preferred OP Units are therefore presented within temporary equity in AIR’s condensed consolidated balance sheets and within temporary partners’ capital in the AIR Operating Partnership’s condensed consolidated balance sheets. The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units’ redemption value (in thousands): Balance at January 1, 2024 $ 77,140 Preferred distributions (1,570) Net income allocated to preferred units 1,570 Balance at March 31, 2024 $ 77,140 The AIR Operating Partnership has outstanding various classes of redeemable preferred OP Units. As of March 31, 2024 and December 31, 2023, the AIR Operating Partnership had 2,846,524 redeemable preferred OP Units issued and outstanding. Distributions per annum range from 1.92% to 8.75% per class and $0.48 to $8.00 per unit, respectively. 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 condensed consolidated financial statements and accompanying notes thereto. Actual results could differ from those estimates. |
Significant Transactions
Significant Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Significant Transactions [Abstract] | |
Significant Transactions | Significant Transactions Apartment Community Acquisitions During the three months ended March 31, 2024, we acquired one apartment community located in Raleigh, North Carolina with 384 apartment homes. Summarized information regarding this acquisition is set forth in the table below (dollars in thousands): Three Months Ended March 31, 2024 Purchase price $ 86,500 Capitalized transaction costs 713 Total consideration $ 87,213 Land $ 11,704 Building and improvements 73,102 Intangible assets (1) 2,482 Below-market lease liabilities (1) (75) Total consideration $ 87,213 (1) Intangible assets and below-market lease liabilities for the Raleigh, North Carolina apartment community acquisition have a weighted-average term of 0.5 years. Subsequent to March 31, 2024, we acquired one apartment community located in Bethesda, Maryland with 359 apartment homes and 50,500 square feet of commercial space for $150.0 million. In connection with the acquisition, AIR placed $97.3 million of non-recourse property debt on the property. Dividends and Distributions For the three months ended March 31, 2024 and 2023, dividends and distributions paid per share of Common Stock and per common unit were $0.45. As a result of the announced Plan of Merger with Blackstone Real Estate as described in N ote 1 2 , payment of additional quarterly dividends has been suspended, effective immediately, other than for the purpose of meeting REIT status, and any such dividends would result in an offsetting decrease to the Common Stock Merger Consideration. Subject to and upon consummation of the Merger, the Company’s Class A common stock will no longer be listed on the New York Stock Exchange. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Tenant Lessor Arrangements The majority of lease payments we receive from our residents are fixed. We receive variable payments from our residents primarily for utility reimbursements. Our total lease income was comprised of the following amounts for all operating leases (in thousands): Three Months Ended March 31, 2024 2023 Fixed lease income $ 179,359 $ 196,336 Variable lease income 12,826 13,288 Total lease income $ 192,185 $ 209,624 Generally, our residential leases do not provide extension options and, as of March 31, 2024, have an average remaining term of 7.2 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. As of March 31, 2024, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands): 2024 (remaining) $ 344,334 2025 148,584 2026 21,498 2027 11,713 2028 9,604 Thereafter 30,872 Total $ 566,605 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our total indebtedness (in thousands): March 31, 2024 December 31, 2023 Secured debt: Fixed-rate property debt due May 2025 to January 2055 (1) $ 2,229,842 $ 2,236,975 Debt issuance costs, net of accumulated amortization (12,651) (13,184) Total non-recourse property debt, net $ 2,217,191 $ 2,223,791 Unsecured debt: Term loans due December 2024 to April 2026 (2) $ 475,000 $ 475,000 Revolving credit facility borrowings due April 2025 (3) 260,000 115,000 4.58% Notes payable due June 2027 100,000 100,000 4.77% Notes payable due June 2029 100,000 100,000 4.84% Notes payable due June 2032 200,000 200,000 Total unsecured debt 1,135,000 990,000 Debt issuance costs, net of accumulated amortization (3,142) (3,447) Total unsecured debt, net $ 1,131,858 $ 986,553 Total indebtedness $ 3,349,049 $ 3,210,344 (1) The stated rates on our fixed-rate property debt are between 2.7% to 5.7%. (2) The term loans bear interest at a one-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.00% and a SOFR adjustment of 10-basis points, based on our current credit rating. As of March 31, 2024, the weighted-average interest rate for our term loans before consideration of in place interest rate swaps was 6.4%. During the three months ended March 31, 2024, we restructured and terminated certain interest rate swaps, economically hedging our entire $475 million term loan balance at an effective interest rate for 2024 of 3.5%. The term loans mature on the following schedule: $125 million matures on December 15, 2024, with a one-year extension option; $150 million matures on December 15, 2025; and $200 million matures on April 14, 2026. As of March 31, 2024, the weighted-average remaining term of the term loans was 1.8 years. (3) As of March 31, 2024, we had capacity to borrow up to $735.7 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a one-month Term SOFR plus 0.89% and a SOFR adjustment of 10-basis points based on our current credit rating. During the three months ended March 31, 2024, we entered into interest rate swaps economically hedging $200 million of our $260 million revolving credit facility borrowings at 4.9%. As of March 31, 2024, the weighted-average interest rate for the remaining $60 million outstanding on our revolving credit facility was 6.3%. During the three months ended March 31, 2024, we increased the borrowings against our revolving credit facility primarily to fund the acquisition of one apartment community located in Raleigh, North Carolina. As of March 31, 2024, our available liquidity was approximately $1.7 billion, which is comprised of available capacity on our secured and revolving credit facilities, our share of restricted cash, and our share of cash and cash equivalents. As a result of the announced Plan of Merger with Blackstone Real Estate as described in Note 12, AIR is generally prohibited from creating, incurring, assuming, replacing, prepaying, or guaranteeing any indebtedness for borrowed money or issuing or materially amending the terms of any indebtedness. Under our credit agreement and unsecured notes payable, we have agreed to maintain certain financial covenants, as well as other covenants customary for similar credit arrangements. The financial covenants we are required to maintain include a maximum leverage ratio of no greater than 0.60 to 1.00; a fixed charge coverage ratio of no less than 1.50 to 1.00, a maximum secured indebtedness to total assets ratio of no greater than 0.40 to 1.00, a maximum unsecured leverage ratio no greater than 0.60 to 1.00, and a minimum unsecured interest coverage ratio no less than 1.50 to 1.00. |
Investment in Unconsolidated Re
Investment in Unconsolidated Real Estate Partnership | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Real Estate Partnership | Investment in Unconsolidated Real Estate Partnerships As of March 31, 2024, AIR has equity investments in three significant unconsolidated joint ventures: the joint venture with a global institutional investor (the “Core JV”), the joint venture with a global asset manager (“Value-Add JV”), and the “Virginia JV” (collectively, the “Joint Venture Entities”). We account for these joint ventures utilizing the equity method of accounting and our ownership interests meet the definition of a VIE. However, we are not the primary beneficiary and do not consolidate these entities. Virginia JV Value-Add JV (1) Core JV Initial formation date October 2021 June 2023 July 2023 AIR Ownership 20% 30% 53% Outside Entities Ownership 80% 70% 47% Number of Apartment Communities 3 1 11 Apartment Units 1,748 443 3,549 (1) A global asset manager acquired a 70% legal ownership in the Huntington Gateway property, but AIR is entitled to 50% of the net cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture. The carrying value of AIR's investment in each joint venture is included in investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets. AIR's exposure to the obligations of the VIEs is limited to the carrying value of the limited partnership interests and AIR's interest of the joint ventures' guarantor non-recourse liabilities. The following table summarizes certain relevant information with respect to our investments in unconsolidated real estate partnerships (in thousands): March 31, 2024 Virginia JV Value-Add JV Core JV Third-party debt $ 395,000 $ 89,053 $ 793,874 AIR's investment in balance (1) $ 16,539 $ 28,482 $ 258,590 (1) AIR's investment in balance includes certain basis differences that are subject to amortization. AIR's investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets also includes $21.3 million related to two immaterial unconsolidated investments. December 31, 2023 Virginia JV Value-Add JV Core JV Third-party debt $ 395,000 $ 88,741 $ 793,910 AIR's investment in balance (1) $ 17,212 $ 28,606 $ 268,931 (1) AIR's investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets includes $21.3 million related to two immaterial unconsolidated investments. The Company recognizes earnings or losses from our investments in unconsolidated real estate partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures. In addition, we earn various fees for providing property management, construction, and corporate services to the Joint Venture Entities. The table below presents earnings or losses attributable to our investments in unconsolidated real estate partnerships, which is included in loss from unconsolidated real estate partnerships in our combined condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2024 2023 Virginia JV $ (73) $ (1,035) Value-Add JV (239) — Core JV (6,538) — Total $ (6,850) $ (1,035) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 condensed 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. 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. Moreover, private plaintiffs may potentially make claims for investigation and remediation costs they incur or for personal injury, disease, disability, or other infirmities related to the alleged presence of hazardous materials. 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 have determined that our legal obligations to remove or remediate certain potentially hazardous materials may be conditional asset retirement obligations (“AROs”), as defined by 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 AROs cannot be reasonably estimated due to significant uncertainties in the timing and manner of settlement of those obligations. AROs that are reasonably estimable as of March 31, 2024, are immaterial to our condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We estimate the fair value of certain assets and liabilities using pricing models that rely on observable market information, including contractual terms, market prices, and interest rate yield curves. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value, as described below: • Level 1 – Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2 – Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. Recurring Fair Value Measurements The following table summarizes investments measured at fair value on a recurring basis, which are presented in other assets, net, and accrued liabilities and other in our condensed consolidated balance sheets (in thousands): As of March 31, 2024 As of December 31, 2023 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Interest rate swaps - pay-fixed, receive floating $ 14,026 $ — $ 14,026 $ — $ 14,679 $ — $ 14,679 $ — Interest rate swaps - pay-floating, receive fixed $ — $ — $ — $ — $ 465 $ — $ 465 $ — Interest rate swaps - forward starting $ 1,574 $ — $ 1,574 $ — $ 331 $ — $ 331 $ — Financial Assets and Liabilities Not Measured at Fair Value We believe that the carrying value of the consolidated amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximated their estimated fair value as of March 31, 2024 and December 31, 2023, due to their relatively short-term nature and high probability of realization. The carrying value of our revolving credit facility and term loans, which we classify as Level 2 in the GAAP fair value hierarchy, approximated their estimated fair value as of March 31, 2024 and December 31, 2023, as they bear interest at floating rates which approximate market rates. We classify the fair value of our non-recourse property debt, unsecured notes payable, seller financing notes receivable, and preferred equity investment within Level 2 of the GAAP fair value hierarchy, as summarized in the following table (in thousands): As of March 31, 2024 As of December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Non-recourse property debt $ 2,229,842 $ 1,986,422 $ 2,236,975 $ 2,001,532 Unsecured notes payable $ 400,000 $ 380,441 $ 400,000 $ 384,244 Seller financing note receivable, net (1) $ 32,671 $ 32,420 $ 32,459 $ 33,042 Preferred equity investment (2) $ 22,988 $ 23,758 $ 22,693 $ 23,562 (1) During the year ended December 31, 2022, we provided $40.0 million of seller financing as partial consideration for the sale of our New England portfolio. The contractual interest rate on the note is 4.5%. The difference between the stated rate and the market interest rate as of the date of sale resulted in a discount recorded of $8.5 million. The seller financing note and related discount are included in other assets, net in our condensed consolidated balance sheets. (2) |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Risk Management Objective of Using Derivatives Our objectives in using interest rate derivatives are to add predictability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps and treasury locks as part of our interest rate management strategy. Interest rate swaps primarily involve the receipt of variable-rate and fixed-rate amounts from a counterparty in exchange for us making fixed-rate or variable-rate payments over the life of the agreements without exchange of the underlying notional amounts. Changes in fair value of derivatives designated as cash flow hedges are recognized in accumulated other comprehensive income and subsequently reclassified into earnings as an increase or decrease to interest expense. During the three months ended March 31, 2024, we reclassified gains of $2.1 million out of accumulated other comprehensive income into interest expense. During the three months ended March 31, 2023, we reclassified $4.2 million out of accumulated other comprehensive income, net into interest expense. As of March 31, 2024, we estimate that during the next 12 months, we will reclassify into earnings approximately $6.1 million of the unrealized gain in accumulated other comprehensive income. Changes in fair value of derivatives not designated in a hedge relationship, or economic hedges, are recognized in gain (loss) on derivative instruments, net, in our condensed consolidated statements of operations once realized. During the three months ended March 31, 2024 and 2023, gain (loss) on derivative instruments was $9.6 million and $(2.1) million, respectively. During the three months ended March 31, 2024, we terminated five interest rate swap positions not designated as hedging instruments. Two of the terminated instruments were pay-fixed, receive-floating interest rate swaps with a notional value of $80 million, and two were offsetting pay-floating, receive-fixed interest rate swaps with a notional value of $80 million. One of the terminated instruments was a forward starting interest rate swap entered into in anticipation of additional fixed-rate property debt with a notional value of $50 million and was replaced by a new forward starting interest rate swap with a notional value of $42 million. Additionally, AIR entered into one forward starting interest rate swap with a notional value of $51.7 million, and restructured one pay-fixed, receive-floating interest rate swap, to better align the maturity date with the related term loans. As a result of these transactions, AIR received $6.2 million in cash during the three months ended March 31, 2024. During the three months ended March 31, 2024, AIR entered into three pay-fixed, receive floating interest rate swaps, with a notional value of $200 million, economically hedging $200 million of our $260 million revolving credit facility borrowings outstanding as of March 31, 2024, at 4.9%. As of March 31, 2024, AIR had a notional value of $675 million of pay-fixed, receive-floating interest rate swaps that are not designated as hedging instruments, and a notional value of $94 million of forward starting interest rate swaps that are not designated as hedging instruments. Accordingly, the changes in the fair value of these derivatives are recognized in gain (loss) on derivative instruments, net, in our condensed consolidated statements of operations. The following table summarizes our derivative financial instruments (dollars in thousands): As of March 31, 2024 Number of Aggregate Notional Derivative Assets Derivative Liabilities Instruments Amount Fair Value Derivatives not designated as hedging instruments: Interest rate swaps, pay-fixed, receive floating 8 $ 675,000 $ 14,123 $ (97) Interest rate swaps, forward starting 2 $ 93,700 $ 1,574 $ — As of December 31, 2023 Number of Aggregate Notional Derivative Assets Derivative Liabilities Instruments Amount Fair Value Derivatives not designated as hedging instruments: Interest rate swaps, pay-fixed, receive floating 7 $ 555,000 $ 15,266 $ (587) Interest rate swaps, pay-floating, receive fixed 2 $ 80,000 $ 472 $ (7) Interest rate swaps, forward starting 1 $ 50,000 $ 331 $ — Subsequent to the three months ended March 31, 2024, AIR terminated one forward starting interest rate swap with a notional value of $51.7 million. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Consolidated Entities AIR consolidates the AIR Operating Partnership, a VIE of which AIR is the primary beneficiary. AIR, through the AIR Operating Partnership, consolidates all VIEs for which it is the primary beneficiary. Substantially all of the assets and liabilities of AIR are those of the AIR Operating Partnership. The AIR Operating Partnership consolidates (i) three VIEs that own interests in one or more apartment communities and are typically structured to generate a return for their partners through the operation and ultimate sale of the communities and (ii) one VIE related to a lessor entity that owns an interest in a property leased to a third party. The AIR Operating Partnership is the primary beneficiary in the limited partnerships in which it is the sole decision maker and has a substantial economic interest. The table below summarizes apartment community information regarding VIEs consolidated by the AIR Operating Partnership: March 31, 2024 December 31, 2023 VIEs with interests in apartment communities 3 3 Apartment communities owned by VIEs 14 14 Apartment homes in communities owned by VIEs 4,866 4,866 Assets of the AIR Operating Partnership’s consolidated VIEs must first be used to settle the liabilities of such consolidated VIEs. These consolidated VIEs’ creditors do not have recourse to the general credit of the AIR Operating Partnership. Assets and liabilities of VIEs, excluding those of the AIR Operating Partnership, are summarized in the table below (in thousands): March 31, 2024 December 31, 2023 ASSETS: Net real estate $ 1,008,068 $ 1,013,770 Cash and cash equivalents 47,570 41,219 Restricted cash 2,386 2,179 Other assets, net 29,288 22,546 LIABILITIES: Non-recourse property debt, net $ 1,192,891 $ 1,196,280 Accrued liabilities and other 41,244 34,903 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We have two segments: Same Store and Other Real Estate. Our Same Store segment includes communities that are owned and managed by AIR and have reached a stabilized level of operations. Our Other Real Estate segment includes four properties acquired in 2023, one property acquired in 2024, and two properties undergoing planned property capital investment. Our chief operating decision maker (“CODM”) uses proportionate property net operating income (“NOI”) to assess the operating performance of our communities. Proportionate property NOI reflects our share of rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, net of utility reimbursements. In our condensed consolidated statements of operations, utility reimbursements are included in rental and other property revenues in accordance with GAAP. As of March 31, 2024, our Same Store segment included 69 apartment communities with 24,271 apartment homes and our Other Real Estate segment included 7 apartment communities with 2,744 apartment homes. The following tables present the total revenues, property operating expenses, proportionate property net operating income (loss), and income (loss) before income tax expense of our segments on a proportionate basis, excluding amounts related to communities sold. To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of March 31, 2024 (in thousands): Same Other Proportionate Corporate and Consolidated Three Months Ended March 31, 2024: Total revenues $ 169,216 $ 17,673 $ 5,649 $ 3,084 $ 195,622 Property management and operating expenses 43,775 6,493 7,088 10,383 67,739 Other operating expenses not allocated to segments (3) — — — 101,336 101,336 Total operating expenses 43,775 6,493 7,088 111,719 169,075 Proportionate property net operating income (loss) 125,441 11,180 (1,439) (108,635) 26,547 Other items included in income before income tax expense (4) — — — (30,506) (30,506) Income (loss) before income tax expense $ 125,441 $ 11,180 $ (1,439) $ (139,141) $ (3,959) Same Other Proportionate Corporate and Consolidated Three Months Ended March 31, 2023: Total revenues $ 162,244 $ 12,178 $ 33,775 $ 3,796 $ 211,993 Property management and operating expenses 44,239 4,544 13,936 12,734 75,453 Other operating expenses not allocated to segments (3) — — — 106,506 106,506 Total operating expenses 44,239 4,544 13,936 119,240 181,959 Proportionate property net operating income (loss) 118,005 7,634 19,839 (115,444) 30,034 Other items included in income before income tax expense (4) — — — (39,843) (39,843) Income (loss) before income tax expense $ 118,005 $ 7,634 $ 19,839 $ (155,287) $ (9,809) (1) Represents adjustments to: (i) exclude AIR’s proportionate share of the results of unconsolidated apartment communities, which is excluded in the related consolidated amounts, and (ii) include the noncontrolling interests in consolidated real estate partnerships’ proportionate share of the results of communities, which is included in the related consolidated amounts. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our condensed consolidated statements of operations prepared in accordance with GAAP. (2) Includes: (i) the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, (ii) property management revenues, which are not part of our segment performance measure, property management expenses and casualty gains and losses, which are included in consolidated property management and operating expenses and are not part of our segment performance measure, and (iii) the depreciation of capitalized costs of non-real estate assets. (3) Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4) Includes interest income, interest expense, loss on extinguishment of debt, gain on dispositions of real estate, provision for impairment loss, loss from unconsolidated real estate partnerships, and gain on derivative instruments, net. The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands): March 31, 2024 December 31, 2023 Same Store $ 4,857,984 $ 4,841,335 Other Real Estate 860,316 779,456 Corporate and other assets (1) 480,006 513,961 Total consolidated assets $ 6,198,306 $ 6,134,752 (1) Includes the assets not allocated to our segments including: (i) corporate asset and (ii) properties sold or classified as held for sale. For the three months ended March 31, 2024 and 2023, capital additions related to our segments were as follows (in thousands): 2024 2023 Same Store $ 23,952 $ 30,480 Other Real Estate 3,470 2,931 Total capital additions $ 27,422 $ 33,411 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Subsequent Events | Subsequent Events On April 7, 2024, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Apex Purchaser LLC (“Buyer 1”), Aries Purchaser LLC (“Buyer 2”), Astro Purchaser LLC (“Buyer 3”), and Astro Merger Sub, Inc. (“Merger Sub”), which are affiliates of Blackstone Real Estate Partners X (“Blackstone”). Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, upon the closing of the transactions contemplated by the Merger Agreement, Merger Sub will merge with and into the Company (the “Merger”) and each share of the Company’s Class A common stock (“Company Common Stock”) (other than those held by the Company or any of its subsidiaries, or by Buyer 1, Buyer 2, Buyer 3 or Merger Sub (the “Cancelled Shares”)) that is issued and outstanding immediately prior to the Merger will be automatically canceled and converted into the right to receive an amount in cash equal to $39.12 (the “Common Stock Merger Consideration”), without interest. Additionally, substantially concurrently with the consummation of the Merger, the Company shall effect the redemption of, or make an irrevocable deposit pursuant to the terms of the Class A preferred stock, $0.01 par value per share, of the Company (“Company Preferred Stock”) in respect to the amount required to redeem, all outstanding shares of the Company Preferred Stock at a redemption price payable in cash, by or on behalf of the Company, in an amount equal to $100,000 per share of Company Preferred Stock plus accumulated, accrued and unpaid dividends thereon (“Preferred Stock Redemption Payment”) and from and after the consummation of the Merger, the Company Preferred Stock shall no longer be outstanding and all rights of the holders thereof will terminate, except for the right to receive the Preferred Stock Redemption Payment. The Merger was unanimously approved by the Company’s Board of Directors and is expected to close in the third quarter of 2024, subject to approval by the Company’s stockholders and other customary closing conditions. Pursuant to the terms of the Merger Agreement, the Company may not pay dividends, including its quarterly dividend, effective immediately except as necessary to preserve its tax status as a real estate investment trust, and any such dividends would result in an offsetting decrease to the Common Stock Merger Consideration. Subject to and upon consummation of the Merger, the Company’s Class A common stock will no longer be listed on the New York Stock Exchange. The issued and outstanding equity interests of the AIR Operating Partnership, including the Partnership Common Units, each class of Partnership Preferred Units, Partnership LTIP Units and Class I High Performance Partnership Units (each as defined in the Merger Agreement), will be unaffected by the Merger and will remain issued and outstanding and will continue to have the rights and privileges set forth in the Partnership LPA (as defined in the Merger Agreement). At or prior to the consummation of the Merger, the Partnership LPA will be amended by AIR-GP, Inc. (the “General Partner”) in substantially the form attached to the Merger Agreement (the “LPA Amendment”) to provide that, following the closing, (i) the AIR Operating Partnership will pay cash to those of holders of Partnership Units (as defined in the Merger Agreement) who elect to redeem their Partnership Units in accordance with the terms of the Partnership LPA (and will not exercise its right to pay for such redeemed Partnership Units in shares of Company Common Stock), (ii) any Partnership Units redeemed on the Closing Date (as defined in the Merger Agreement) or within ten (10) days thereafter will be valued at an amount equal to the Common Stock Merger Consideration minus the aggregate amount of all distributions per Partnership Common Unit declared or paid to the holders of Partnership Common Units during the period commencing on the Closing Date and ending on the date a notice of redemption is received and (iii) any Partnership Units redeemed after the tenth (10th) day following the Closing Date will be valued by the General Partner in good faith on the basis of such information as it considers, in its reasonable judgment, as appropriate. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation We consolidate variable interest entities (“VIE”), in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. As of March 31, 2024 and December 31, 2023, AIR consolidated five VIEs, including the AIR Operating Partnership. Please see Note 1 0 for further discussion regarding our consolidated VIEs. |
Redeemable Preferred OP Units | Redeemable Preferred OP Units The AIR Operating Partnership has various classes of preferred OP Units. Each class of preferred OP Units is currently redeemable at the holders’ option. The AIR Operating Partnership, at its sole discretion, may settle such redemption requests in cash or cause AIR to issue shares of its Common Stock with a value equal to the redemption price. The preferred OP Units are therefore presented within temporary equity in AIR’s condensed consolidated balance sheets and within temporary partners’ capital in the AIR Operating Partnership’s condensed consolidated balance sheets. The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units’ redemption value (in thousands): Balance at January 1, 2024 $ 77,140 Preferred distributions (1,570) Net income allocated to preferred units 1,570 Balance at March 31, 2024 $ 77,140 The AIR Operating Partnership has outstanding various classes of redeemable preferred OP Units. As of March 31, 2024 and December 31, 2023, the AIR Operating Partnership had 2,846,524 redeemable preferred OP Units issued and outstanding. Distributions per annum range from 1.92% to 8.75% per class and $0.48 to $8.00 per unit, respectively. |
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 condensed consolidated financial statements and accompanying notes thereto. Actual results could differ from those estimates. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Reconciliation of Preferred OP Units | The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units’ redemption value (in thousands): Balance at January 1, 2024 $ 77,140 Preferred distributions (1,570) Net income allocated to preferred units 1,570 Balance at March 31, 2024 $ 77,140 |
Significant Transactions (Table
Significant Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Significant Transactions [Abstract] | |
Schedule of Acquisition | Summarized information regarding this acquisition is set forth in the table below (dollars in thousands): Three Months Ended March 31, 2024 Purchase price $ 86,500 Capitalized transaction costs 713 Total consideration $ 87,213 Land $ 11,704 Building and improvements 73,102 Intangible assets (1) 2,482 Below-market lease liabilities (1) (75) Total consideration $ 87,213 (1) Intangible assets and below-market lease liabilities for the Raleigh, North Carolina apartment community acquisition have a weighted-average term of 0.5 years. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lease Income for Operating Leases | Our total lease income was comprised of the following amounts for all operating leases (in thousands): Three Months Ended March 31, 2024 2023 Fixed lease income $ 179,359 $ 196,336 Variable lease income 12,826 13,288 Total lease income $ 192,185 $ 209,624 |
Future Minimum Annual Rental Payments Receivable Under Residential and Commercial Leases | As of March 31, 2024, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands): 2024 (remaining) $ 344,334 2025 148,584 2026 21,498 2027 11,713 2028 9,604 Thereafter 30,872 Total $ 566,605 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt summmary | The following table summarizes our total indebtedness (in thousands): March 31, 2024 December 31, 2023 Secured debt: Fixed-rate property debt due May 2025 to January 2055 (1) $ 2,229,842 $ 2,236,975 Debt issuance costs, net of accumulated amortization (12,651) (13,184) Total non-recourse property debt, net $ 2,217,191 $ 2,223,791 Unsecured debt: Term loans due December 2024 to April 2026 (2) $ 475,000 $ 475,000 Revolving credit facility borrowings due April 2025 (3) 260,000 115,000 4.58% Notes payable due June 2027 100,000 100,000 4.77% Notes payable due June 2029 100,000 100,000 4.84% Notes payable due June 2032 200,000 200,000 Total unsecured debt 1,135,000 990,000 Debt issuance costs, net of accumulated amortization (3,142) (3,447) Total unsecured debt, net $ 1,131,858 $ 986,553 Total indebtedness $ 3,349,049 $ 3,210,344 (1) The stated rates on our fixed-rate property debt are between 2.7% to 5.7%. (2) The term loans bear interest at a one-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.00% and a SOFR adjustment of 10-basis points, based on our current credit rating. As of March 31, 2024, the weighted-average interest rate for our term loans before consideration of in place interest rate swaps was 6.4%. During the three months ended March 31, 2024, we restructured and terminated certain interest rate swaps, economically hedging our entire $475 million term loan balance at an effective interest rate for 2024 of 3.5%. The term loans mature on the following schedule: $125 million matures on December 15, 2024, with a one-year extension option; $150 million matures on December 15, 2025; and $200 million matures on April 14, 2026. As of March 31, 2024, the weighted-average remaining term of the term loans was 1.8 years. (3) |
Investment in Unconsolidated _2
Investment in Unconsolidated Real Estate Partnership (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Virginia JV Value-Add JV (1) Core JV Initial formation date October 2021 June 2023 July 2023 AIR Ownership 20% 30% 53% Outside Entities Ownership 80% 70% 47% Number of Apartment Communities 3 1 11 Apartment Units 1,748 443 3,549 (1) A global asset manager acquired a 70% legal ownership in the Huntington Gateway property, but AIR is entitled to 50% of the net cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture. March 31, 2024 Virginia JV Value-Add JV Core JV Third-party debt $ 395,000 $ 89,053 $ 793,874 AIR's investment in balance (1) $ 16,539 $ 28,482 $ 258,590 (1) AIR's investment in balance includes certain basis differences that are subject to amortization. AIR's investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets also includes $21.3 million related to two immaterial unconsolidated investments. December 31, 2023 Virginia JV Value-Add JV Core JV Third-party debt $ 395,000 $ 88,741 $ 793,910 AIR's investment in balance (1) $ 17,212 $ 28,606 $ 268,931 (1) AIR's investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets includes $21.3 million related to two immaterial unconsolidated investments. Three Months Ended March 31, 2024 2023 Virginia JV $ (73) $ (1,035) Value-Add JV (239) — Core JV (6,538) — Total $ (6,850) $ (1,035) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value for Interest Rate Options and swaps | The following table summarizes investments measured at fair value on a recurring basis, which are presented in other assets, net, and accrued liabilities and other in our condensed consolidated balance sheets (in thousands): As of March 31, 2024 As of December 31, 2023 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Interest rate swaps - pay-fixed, receive floating $ 14,026 $ — $ 14,026 $ — $ 14,679 $ — $ 14,679 $ — Interest rate swaps - pay-floating, receive fixed $ — $ — $ — $ — $ 465 $ — $ 465 $ — Interest rate swaps - forward starting $ 1,574 $ — $ 1,574 $ — $ 331 $ — $ 331 $ — |
Summary of Carrying Value and Fair Value of Non-recourse Property Debt | We classify the fair value of our non-recourse property debt, unsecured notes payable, seller financing notes receivable, and preferred equity investment within Level 2 of the GAAP fair value hierarchy, as summarized in the following table (in thousands): As of March 31, 2024 As of December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Non-recourse property debt $ 2,229,842 $ 1,986,422 $ 2,236,975 $ 2,001,532 Unsecured notes payable $ 400,000 $ 380,441 $ 400,000 $ 384,244 Seller financing note receivable, net (1) $ 32,671 $ 32,420 $ 32,459 $ 33,042 Preferred equity investment (2) $ 22,988 $ 23,758 $ 22,693 $ 23,562 (1) During the year ended December 31, 2022, we provided $40.0 million of seller financing as partial consideration for the sale of our New England portfolio. The contractual interest rate on the note is 4.5%. The difference between the stated rate and the market interest rate as of the date of sale resulted in a discount recorded of $8.5 million. The seller financing note and related discount are included in other assets, net in our condensed consolidated balance sheets. (2) |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instrument and Hedging Activities | The following table summarizes our derivative financial instruments (dollars in thousands): As of March 31, 2024 Number of Aggregate Notional Derivative Assets Derivative Liabilities Instruments Amount Fair Value Derivatives not designated as hedging instruments: Interest rate swaps, pay-fixed, receive floating 8 $ 675,000 $ 14,123 $ (97) Interest rate swaps, forward starting 2 $ 93,700 $ 1,574 $ — As of December 31, 2023 Number of Aggregate Notional Derivative Assets Derivative Liabilities Instruments Amount Fair Value Derivatives not designated as hedging instruments: Interest rate swaps, pay-fixed, receive floating 7 $ 555,000 $ 15,266 $ (587) Interest rate swaps, pay-floating, receive fixed 2 $ 80,000 $ 472 $ (7) Interest rate swaps, forward starting 1 $ 50,000 $ 331 $ — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The table below summarizes apartment community information regarding VIEs consolidated by the AIR Operating Partnership: March 31, 2024 December 31, 2023 VIEs with interests in apartment communities 3 3 Apartment communities owned by VIEs 14 14 Apartment homes in communities owned by VIEs 4,866 4,866 March 31, 2024 December 31, 2023 ASSETS: Net real estate $ 1,008,068 $ 1,013,770 Cash and cash equivalents 47,570 41,219 Restricted cash 2,386 2,179 Other assets, net 29,288 22,546 LIABILITIES: Non-recourse property debt, net $ 1,192,891 $ 1,196,280 Accrued liabilities and other 41,244 34,903 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of Information for Reportable Segments | To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of March 31, 2024 (in thousands): Same Other Proportionate Corporate and Consolidated Three Months Ended March 31, 2024: Total revenues $ 169,216 $ 17,673 $ 5,649 $ 3,084 $ 195,622 Property management and operating expenses 43,775 6,493 7,088 10,383 67,739 Other operating expenses not allocated to segments (3) — — — 101,336 101,336 Total operating expenses 43,775 6,493 7,088 111,719 169,075 Proportionate property net operating income (loss) 125,441 11,180 (1,439) (108,635) 26,547 Other items included in income before income tax expense (4) — — — (30,506) (30,506) Income (loss) before income tax expense $ 125,441 $ 11,180 $ (1,439) $ (139,141) $ (3,959) Same Other Proportionate Corporate and Consolidated Three Months Ended March 31, 2023: Total revenues $ 162,244 $ 12,178 $ 33,775 $ 3,796 $ 211,993 Property management and operating expenses 44,239 4,544 13,936 12,734 75,453 Other operating expenses not allocated to segments (3) — — — 106,506 106,506 Total operating expenses 44,239 4,544 13,936 119,240 181,959 Proportionate property net operating income (loss) 118,005 7,634 19,839 (115,444) 30,034 Other items included in income before income tax expense (4) — — — (39,843) (39,843) Income (loss) before income tax expense $ 118,005 $ 7,634 $ 19,839 $ (155,287) $ (9,809) (1) Represents adjustments to: (i) exclude AIR’s proportionate share of the results of unconsolidated apartment communities, which is excluded in the related consolidated amounts, and (ii) include the noncontrolling interests in consolidated real estate partnerships’ proportionate share of the results of communities, which is included in the related consolidated amounts. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our condensed consolidated statements of operations prepared in accordance with GAAP. (2) Includes: (i) the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, (ii) property management revenues, which are not part of our segment performance measure, property management expenses and casualty gains and losses, which are included in consolidated property management and operating expenses and are not part of our segment performance measure, and (iii) the depreciation of capitalized costs of non-real estate assets. (3) Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4) Includes interest income, interest expense, loss on extinguishment of debt, gain on dispositions of real estate, provision for impairment loss, loss from unconsolidated real estate partnerships, and gain on derivative instruments, net. |
Reconciliation of Assets from Segment to Consolidated | The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands): March 31, 2024 December 31, 2023 Same Store $ 4,857,984 $ 4,841,335 Other Real Estate 860,316 779,456 Corporate and other assets (1) 480,006 513,961 Total consolidated assets $ 6,198,306 $ 6,134,752 (1) Includes the assets not allocated to our segments including: (i) corporate asset and (ii) properties sold or classified as held for sale. |
Capital Additions Related to Segments | For the three months ended March 31, 2024 and 2023, capital additions related to our segments were as follows (in thousands): 2024 2023 Same Store $ 23,952 $ 30,480 Other Real Estate 3,470 2,931 Total capital additions $ 27,422 $ 33,411 |
Basis of Presentation and Org_2
Basis of Presentation and Organization (Details) | 3 Months Ended |
Mar. 31, 2024 property apartment stateAndDistrict shares | |
Real Estate Properties [Line Items] | |
Number of states and district | stateAndDistrict | 10 |
AIR Operating Partnership | |
Real Estate Properties [Line Items] | |
Common operating partnership units and equivalents outstanding (in shares) | 158,247,357 |
Common operating partnership units and equivalents outstanding (in shares) | 145,104,220 |
Percentage of the Aimco Operating Partnership's common partnership units and equivalents owned by Aimco | 91.70% |
Percentage of economic interest | 93.70% |
Partially Owned Properties | |
Real Estate Properties [Line Items] | |
Apartment communities owned by VIEs | property | 76 |
Apartment homes in communities owned by VIEs | apartment | 27,015 |
Percentage of average ownership of portfolio | 82% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Preferred OP Units (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance at January 1, 2024 | $ 77,140 |
Preferred distributions | (1,570) |
Net income allocated to preferred units | 1,570 |
Balance at March 31, 2024 | $ 77,140 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 entity $ / shares shares | Dec. 31, 2023 shares | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Number of consolidated VIEs | entity | 5 | |
AIMCO PROPERTIES, L.P | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Units outstanding (in shares) | shares | 2,846,524 | 2,846,524 |
AIMCO PROPERTIES, L.P | Minimum | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Distributions per annum | 1.92% | |
Distribution made to limited partner, distributions paid, per unit (in dollars per share) | $ 0.48 | |
AIMCO PROPERTIES, L.P | Maximum | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Distributions per annum | 8.75% | |
Distribution made to limited partner, distributions paid, per unit (in dollars per share) | $ 8 |
Significant Transactions - Narr
Significant Transactions - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
May 08, 2024 USD ($) ft² property apartment | Mar. 31, 2024 USD ($) apartment property $ / shares | Mar. 31, 2023 $ / shares | Dec. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | ||||
Non-recourse property debt, net | $ 2,217,191 | $ 2,223,791 | ||
Dividends and distributions paid (in dollars per share) | $ / shares | $ 0.45 | $ 0.45 | ||
Raleigh North Carolina | ||||
Business Acquisition [Line Items] | ||||
Number of apartment communities acquired | property | 1 | |||
Number of apartment homes purchased | apartment | 384 | |||
Bethesda Maryland | Subsequent Event | ||||
Business Acquisition [Line Items] | ||||
Number of apartment communities acquired | property | 1 | |||
Number of apartment homes purchased | apartment | 359 | |||
Commercial space | ft² | 50,500 | |||
Purchase price | $ 150,000 | |||
Non-recourse property debt, net | $ 97,300 |
Significant Transactions - Sche
Significant Transactions - Schedule of Acquisition (Details) - Raleigh North Carolina $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Intangible Assets | |
Business Acquisition [Line Items] | |
Weighted-average term | 6 months |
Below-market leases | |
Business Acquisition [Line Items] | |
Weighted-average term | 6 months |
Apartment Community | |
Business Acquisition [Line Items] | |
Purchase price | $ 86,500 |
Capitalized transaction costs | 713 |
Total consideration | 87,213 |
Land | 11,704 |
Building and improvements | 73,102 |
Intangible assets | 2,482 |
Below-market lease liabilities | (75) |
Total consideration | $ 87,213 |
Leases - Lease Income for Opera
Leases - Lease Income for Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Fixed lease income | $ 179,359 | $ 196,336 |
Variable lease income | 12,826 | 13,288 |
Total lease income | $ 192,185 | $ 209,624 |
Operating lease, lease income, statement of income or comprehensive income | Other assets, net | Other assets, net |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2024 |
Residential Lease | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 7 months 6 days |
Leases - Schedule of Aggregate
Leases - Schedule of Aggregate Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
2024 (remaining) | $ 344,334 |
2025 | 148,584 |
2026 | 21,498 |
2027 | 11,713 |
2028 | 9,604 |
Thereafter | 30,872 |
Total lease receivable | $ 566,605 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Total indebtedness | $ 3,349,049 | $ 3,210,344 |
Line of credit | 260,000 | 115,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 735,700 | |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Debt instrument basis spread on variable rate | 0.89% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net of accumulated amortization | $ (12,651) | (13,184) |
Total indebtedness | 2,217,191 | 2,223,791 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net of accumulated amortization | (3,142) | (3,447) |
Total indebtedness | 1,131,858 | 986,553 |
Unsecured Debt | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 475,000 | 475,000 |
Loan borrowed | $ 475,000 | |
Debt, weighted average interest rate | 3.50% | |
Unsecured Debt | Term Loan | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1% | |
Debt instrument basis spread on variable rate | 0.10% | |
Debt, weighted average interest rate | 6.40% | |
Unsecured Debt | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 260,000 | 115,000 |
Debt, weighted average interest rate | 4.90% | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 60,000 | |
Unsecured Debt | Revolving Credit Facility | Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
Aggregate notional amount | $ 200,000 | |
Unsecured Debt | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Debt, weighted average interest rate | 6.30% | |
Unsecured Debt Gross | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,135,000 | 990,000 |
Fixed Rate Property Debt | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 2,229,842 | 2,236,975 |
4.58% Notes payable due June 2027 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 100,000 | $ 100,000 |
Debt instrument, interest rate, stated percentage | 4.58% | 4.58% |
4.77% Notes payable due June 2029 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 100,000 | $ 100,000 |
Debt instrument, interest rate, stated percentage | 4.77% | 4.77% |
4.84% Notes payable due June 2032 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 200,000 | $ 200,000 |
Debt instrument, interest rate, stated percentage | 4.84% | 4.84% |
Fixed Rate Member | Secured Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.70% | |
Fixed Rate Member | Secured Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.70% | |
Schedule Term Loan | ||
Debt Instrument [Line Items] | ||
Loan borrowed | $ 125,000 | |
Long-term debt, term | 1 year | |
Schedule Term Loan One | ||
Debt Instrument [Line Items] | ||
Loan borrowed | $ 150,000 | |
Schedule Term Loan Two | ||
Debt Instrument [Line Items] | ||
Loan borrowed | $ 200,000 | |
Floating Rate | Secured Debt | ||
Debt Instrument [Line Items] | ||
Weighted-average remaining term | 1 year 9 months 18 days |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2024 USD ($) property | |
Minimum | |
Debt Instrument [Line Items] | |
Fixed charge coverage ratio | 1.50 |
Secured indebtedness to total assets ratio | 0.40 |
Maximum unsecured leverage ratio | 0.60 |
Unsecured interest coverage ratio | 1.50 |
Minimum | Leverage Ratio | |
Debt Instrument [Line Items] | |
Unsecured leverage ratio | 0.60 |
Fifteen Year Fixed Rate Financing | |
Debt Instrument [Line Items] | |
Line of credit, total liquidity | $ | $ 1.7 |
Raleigh North Carolina | |
Debt Instrument [Line Items] | |
Number of apartment communities acquired | property | 1 |
Investment in Unconsolidated _3
Investment in Unconsolidated Real Estate Partnership - Ownership Information (Details) - apartment | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2024 | |
Virginia JV | ||
Schedule of Equity Method Investments [Line Items] | ||
Apartment communities owned by VIEs | 3 | |
Apartment homes in communities owned by VIEs | 1,748 | |
Virginia JV | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 20% | |
Virginia JV | Partnership Interest | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 80% | |
Core JV | ||
Schedule of Equity Method Investments [Line Items] | ||
Apartment communities owned by VIEs | 1 | |
Apartment homes in communities owned by VIEs | 443 | |
Core JV | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 30% | |
Core JV | Partnership Interest | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 70% | |
Value-Add JV | ||
Schedule of Equity Method Investments [Line Items] | ||
Apartment communities owned by VIEs | 11 | |
Apartment homes in communities owned by VIEs | 3,549 | |
Value-Add JV | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 53% | |
Value-Add JV | Partnership Interest | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 47% | |
Huntington Gateway | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership interest sold | 70% | |
Huntington Gateway | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 50% |
Investment in Unconsolidated _4
Investment in Unconsolidated Real Estate Partnership - Summary of Combined Balance Sheets for Joint Venture Partners (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Liabilities | $ 3,652,491 | $ 3,507,238 |
Investment in unconsolidated real estate partnerships | 324,876 | 336,077 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated real estate partnerships | 21,300 | |
Variable Interest Entity, Primary Beneficiary | Virginia JV | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 395,000 | 395,000 |
Investment in unconsolidated real estate partnerships | 16,539 | 17,212 |
Variable Interest Entity, Primary Beneficiary | Core JV | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 89,053 | 88,741 |
Investment in unconsolidated real estate partnerships | 28,482 | 28,606 |
Variable Interest Entity, Primary Beneficiary | Value-Add JV | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 793,874 | 793,910 |
Investment in unconsolidated real estate partnerships | $ 258,590 | $ 268,931 |
Investment in Unconsolidated _5
Investment in Unconsolidated Real Estate Partnership - Earnings or Losses Sttributable to Investments in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Variable Interest Entity [Line Items] | ||
Net income (loss) from real estate investment partnership | $ (6,850) | $ (1,035) |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Net income (loss) from real estate investment partnership | (6,850) | (1,035) |
Virginia JV | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Net income (loss) from real estate investment partnership | (73) | (1,035) |
Value-Add JV | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Net income (loss) from real estate investment partnership | (239) | 0 |
Core JV | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Net income (loss) from real estate investment partnership | $ (6,538) | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value for Interest Rate Options (Details) - Fair value recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Interest rate swaps - pay-fixed, receive floating | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 14,026 | $ 14,679 |
Interest rate swaps - pay-fixed, receive floating | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest rate swaps - pay-fixed, receive floating | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 14,026 | 14,679 |
Interest rate swaps - pay-fixed, receive floating | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest rate swaps - pay-floating, receive fixed | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 465 |
Interest rate swaps - pay-floating, receive fixed | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest rate swaps - pay-floating, receive fixed | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 465 |
Interest rate swaps - pay-floating, receive fixed | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest Rate Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 1,574 | 331 |
Interest Rate Swap | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest Rate Swap | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 1,574 | 331 |
Interest Rate Swap | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 0 | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Value and Fair Value of Non-recourse Property Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Long-term debt | $ 3,349,049 | $ 3,210,344 | |
Derivative, average variable interest rate | 4.50% | ||
Receivables with imputed interest, amortization amount | $ 8,500 | ||
Investment interest rate | 7.25% | ||
Core JV | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Receivables with imputed interest, amortization amount | $ 5,900 | ||
New England | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Partial consider selling value | $ 40,000 | ||
Carrying Value | Fair Value, Nonrecurring | Seller financing note receivable, net | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Seller financing note receivable, net | 32,671 | 32,459 | |
Carrying Value | Fair Value, Nonrecurring | Preferred equity investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Preferred equity investment | 22,988 | 22,693 | |
Carrying Value | Fair Value, Nonrecurring | Non-recourse property debt | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Long-term debt | 2,229,842 | 2,236,975 | |
Carrying Value | Fair Value, Nonrecurring | Unsecured notes payable | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Long-term debt | 400,000 | 400,000 | |
Fair Value | Fair Value, Nonrecurring | Seller financing note receivable, net | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Seller financing note receivable, net | 32,420 | 33,042 | |
Fair Value | Fair Value, Nonrecurring | Preferred equity investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Preferred equity investment | 23,758 | 23,562 | |
Fair Value | Fair Value, Nonrecurring | Non-recourse property debt | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Long-term debt | 1,986,422 | 2,001,532 | |
Fair Value | Fair Value, Nonrecurring | Unsecured notes payable | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Long-term debt | $ 380,441 | $ 384,244 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) instrument | Mar. 31, 2023 USD ($) | May 08, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Reclassification of interest rate derivative (gain) loss to net loss | $ (2,101) | $ 4,154 | ||
Cash flow hedge gain (loss) to be reclassified within 12 months | 6,100 | |||
Gain (loss) on derivative instruments, net | 9,574 | $ (2,138) | ||
Revolving Credit Facility | Unsecured Debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Long-term debt, gross | $ 260,000 | $ 115,000 | ||
Debt, weighted average interest rate | 4.90% | |||
Interest Rate Swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of interest rate derivatives terminated | instrument | 5 | |||
Interest Rate Swap | Revolving Credit Facility | Unsecured Debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregate notional amount | $ 200,000 | |||
Interest Rate Swap | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregate notional amount | $ 42,000 | |||
Interest rate swap, pay-floating, receive-fixed | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of interest rate derivatives terminated | instrument | 2 | |||
Interest rate swap, pay-floating, receive-fixed | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregate notional amount | $ 80,000 | |||
Interest rate swap, pay-fixed, receive-floating | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of interest rate derivatives terminated | instrument | 2 | |||
Interest rate swap, pay-fixed, receive-floating | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregate notional amount | $ 80,000 | |||
Derivative, Gain (Loss) on Derivative, Net | $ 6,200 | |||
Interest rate swaps, forward starting | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of interest rate derivatives terminated | instrument | 1 | |||
Interest rate swaps, forward starting | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregate notional amount | $ 93,700 | 50,000 | ||
Interest rate swaps, forward starting | Not Designated as Hedging Instrument | Fixed-Rate Property Debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregate notional amount | 50,000 | |||
Interest rate swaps, forward starting | Not Designated as Hedging Instrument | Subsequent Event | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregate notional amount | $ 51,700 | |||
Interest rate swaps, pay-fixed, receive floating | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregate notional amount | $ 675,000 | $ 555,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Schedule of Balance Sheet Hedges (Details) $ in Thousands | Mar. 31, 2024 USD ($) instrument | Dec. 31, 2023 USD ($) instrument |
Interest Rate Swap, Fixed To Floating [Member] | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held | instrument | 2 | |
Aggregate notional amount | $ 80,000 | |
Interest Rate Swap, Fixed To Floating [Member] | Designated as Hedging Instrument | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset derivatives, fair value | 472 | |
Interest Rate Swap, Fixed To Floating [Member] | Designated as Hedging Instrument | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liability derivatives, fair value | $ (7) | |
Interest rate swaps, pay-fixed, receive floating | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held | instrument | 8 | 7 |
Aggregate notional amount | $ 675,000 | $ 555,000 |
Interest rate swaps, pay-fixed, receive floating | Not Designated as Hedging Instrument | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset derivatives, fair value | 14,123 | 15,266 |
Interest rate swaps, pay-fixed, receive floating | Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liability derivatives, fair value | $ (97) | $ (587) |
Interest rate swaps, forward starting | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held | instrument | 2 | 1 |
Aggregate notional amount | $ 93,700 | $ 50,000 |
Interest rate swaps, forward starting | Not Designated as Hedging Instrument | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset derivatives, fair value | 1,574 | 331 |
Interest rate swaps, forward starting | Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liability derivatives, fair value | $ 0 | $ 0 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of VIEs Consolidated by the AIR Operating Partnership (Details) - Variable Interest Entity, Primary Beneficiary | Mar. 31, 2024 apartment property entity | Dec. 31, 2023 property entity apartment |
Variable Interest Entity [Line Items] | ||
VIEs with interests in apartment communities | entity | 3 | 3 |
Apartment communities owned by VIEs | property | 14 | 14 |
Apartment homes in communities owned by VIEs | apartment | 4,866 | 4,866 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Net real estate | $ 5,406,828 | $ 5,364,978 |
Cash and cash equivalents | 87,795 | 91,401 |
Restricted cash | 26,942 | 26,090 |
Other assets, net | 319,579 | 283,920 |
LIABILITIES: | ||
Non-recourse property debt, net | 2,217,191 | 2,223,791 |
Accrued liabilities and other | 303,442 | 296,894 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Net real estate | 1,008,068 | 1,013,770 |
Cash and cash equivalents | 47,570 | 41,219 |
Restricted cash | 2,386 | 2,179 |
Other assets, net | 29,288 | 22,546 |
LIABILITIES: | ||
Non-recourse property debt, net | 1,192,891 | 1,196,280 |
Accrued liabilities and other | $ 41,244 | $ 34,903 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 property apartment Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 2 |
Same Store | |
Segment Reporting Information [Line Items] | |
Apartment communities owned by VIEs | 69 |
Apartment homes in communities owned by VIEs | apartment | 24,271 |
Other Real Estate | |
Segment Reporting Information [Line Items] | |
Apartment communities owned by VIEs | 7 |
Apartment homes in communities owned by VIEs | apartment | 2,744 |
Wholly Owned Consolidated Properties | Other Real Estate | |
Segment Reporting Information [Line Items] | |
Apartment communities owned by VIEs | 1 |
Business Segments - Summary of
Business Segments - Summary of Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Summary information for the reportable segments | ||
Total revenues | $ 195,622 | $ 211,993 |
Other operating expenses not allocated to segments | 101,336 | 106,506 |
Operating expenses | 169,075 | 181,959 |
Operating Income Loss Property | 26,547 | 30,034 |
Other items included in income (loss) before income tax expense | (30,506) | (39,843) |
Loss before income tax expense | (3,959) | (9,809) |
Real Estate | ||
Summary information for the reportable segments | ||
Cost of Revenue | 67,739 | 75,453 |
Segment Reconciling Items | ||
Summary information for the reportable segments | ||
Total revenues | 5,649 | 33,775 |
Other operating expenses not allocated to segments | 0 | 0 |
Operating expenses | 7,088 | 13,936 |
Operating Income Loss Property | (1,439) | 19,839 |
Other items included in income (loss) before income tax expense | 0 | 0 |
Loss before income tax expense | (1,439) | 19,839 |
Segment Reconciling Items | Real Estate | ||
Summary information for the reportable segments | ||
Cost of Revenue | 7,088 | 13,936 |
Corporate Non-Segment | ||
Summary information for the reportable segments | ||
Total revenues | 3,084 | 3,796 |
Other operating expenses not allocated to segments | 101,336 | 106,506 |
Operating expenses | 111,719 | 119,240 |
Operating Income Loss Property | (108,635) | (115,444) |
Other items included in income (loss) before income tax expense | (30,506) | (39,843) |
Loss before income tax expense | (139,141) | (155,287) |
Corporate Non-Segment | Real Estate | ||
Summary information for the reportable segments | ||
Cost of Revenue | 10,383 | 12,734 |
Same Store | Operating Segments | ||
Summary information for the reportable segments | ||
Total revenues | 169,216 | 162,244 |
Other operating expenses not allocated to segments | 0 | 0 |
Operating expenses | 43,775 | 44,239 |
Operating Income Loss Property | 125,441 | 118,005 |
Other items included in income (loss) before income tax expense | 0 | 0 |
Loss before income tax expense | 125,441 | 118,005 |
Same Store | Operating Segments | Real Estate | ||
Summary information for the reportable segments | ||
Cost of Revenue | 43,775 | 44,239 |
Other Real Estate | Operating Segments | ||
Summary information for the reportable segments | ||
Total revenues | 17,673 | 12,178 |
Other operating expenses not allocated to segments | 0 | 0 |
Operating expenses | 6,493 | 4,544 |
Operating Income Loss Property | 11,180 | 7,634 |
Other items included in income (loss) before income tax expense | 0 | 0 |
Loss before income tax expense | 11,180 | 7,634 |
Other Real Estate | Operating Segments | Real Estate | ||
Summary information for the reportable segments | ||
Cost of Revenue | $ 6,493 | $ 4,544 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 6,198,306 | $ 6,134,752 |
Corporate Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 480,006 | 513,961 |
Same Store | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 4,857,984 | 4,841,335 |
Other Real Estate | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 860,316 | $ 779,456 |
Business Segments - Capital Add
Business Segments - Capital Additions Related to Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total capital additions | $ 27,422 | $ 33,411 |
Same Store | ||
Segment Reporting Information [Line Items] | ||
Total capital additions | 23,952 | 30,480 |
Other Real Estate | ||
Segment Reporting Information [Line Items] | ||
Total capital additions | $ 3,470 | $ 2,931 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Apr. 07, 2024 $ / shares |
Subsidiary, Sale of Stock [Line Items] | |
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 39.12 |
Preferred stock, redemption price (in dollars per share) | 100,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 |