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EXHIBIT 99.1
Report of Independent Auditors
Partners
AIMCO Properties, L.P.
We have audited the accompanying Combined Historical Summary of Gross Income and
Direct Operating Expenses of the Dreyfuss Apartment Communities (the
"Communities") as described in Note 1 for the year ended December 31, 1998. This
Combined Historical Summary is the responsibility of the Communities'
management. Our responsibility is to express an opinion on this Combined
Historical Summary based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the Combined Historical Summary is
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the Combined Historical
Summary. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the Combined Historical Summary. We believe that our audit
provides a reasonable basis for our opinion.
The Combined Historical Summary has been prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission for
inclusion in the Current Report on Form 8-K of AIMCO Properties, L.P., as
described in Note 1, and is not intended to be a complete presentation of the
income and expenses of the Communities.
In our opinion, the Combined Historical Summary referred to above presents
fairly, in all material respects, the gross income and direct operating expenses
of the Dreyfuss Apartment Communities, as described in Note 1, for the year
ended December 31, 1998, in conformity with accounting principles generally
accepted in the United States.
/s/ ERNST & YOUNG LLP
Denver, Colorado
October 8, 1999
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Dreyfuss Apartment Communities
Combined Historical Summary of
Gross Income and Direct Operating Expenses
NINE MONTHS
YEAR ENDED ENDED
DECEMBER 31, SEPTEMBER 30,
1998 1999
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(unaudited)
GROSS INCOME
Rental income $ 17,157,910 $ 13,458,968
Other income 456,564 336,807
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Total gross income 17,614,474 13,795,775
DIRECT OPERATING EXPENSES
Repairs and maintenance 1,458,278 1,055,680
Utilities and other property operating 1,583,070 1,244,916
General and administrative 2,720,227 1,989,925
Real estate taxes 1,151,069 960,736
Management fees 724,115 576,577
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Total direct operating expenses 7,636,759 5,827,834
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Excess of gross income over direct operating expenses $ 9,977,715 $ 7,967,941
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See accompanying notes.
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Dreyfuss Apartment Communities
Notes to Combined Historical Summary of Gross Income
and Direct Operating Expenses
Year Ended December 31, 1998 and
Nine Months Ended September 30, 1999 (unaudited)
1. ORGANIZATION AND BASIS OF PRESENTATION
The Dreyfuss Apartment Communities (the "Communities") include nine separate
residential apartment communities located in Virginia and Maryland. The
Communities, which are under common management and control, are as follows:
COMMUNITY LOCATION NUMBER OF
--------- -------- UNITS
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Bradford Place Suitland, MD 214
Burgundy Park Forestville, MD 108
Hunters Crossing Leesburg, VA 164
Key Towers Alexandria, VA 142
Maple Bay Virginia Beach, VA 414
Merrill House Falls Church, VA 160
Parker House Hyattsville, MD 296
Rosecroft Mews Ft. Washington, MD 303
Tor Columbia, MD 324
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Total 2,125
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In August 1999, AIMCO Properties, L.P., entered into an agreement to acquire the
Dreyfuss Apartment Communities.
The accompanying Combined Historical Summary has been prepared for the purpose
of complying with the rules and regulations of the Securities and Exchange
Commission for inclusion in the Current Report on Form 8-K of AIMCO Properties,
L.P. The Combined Historical Summary is not intended to be a complete
presentation of income and expenses of the Communities for the year ended
December 31, 1998 and the nine months ended September 30, 1999, as certain costs
such as depreciation, amortization, interest, and other debt service costs have
been excluded. These costs are not considered to be direct operating expenses.
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of the Combined Historical Summary in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts included in the
Combined Historical Summary and accompanying notes thereto. Actual results could
differ from those estimates.
REVENUE RECOGNITION
Rental income attributable to residential leases is recorded when due from
residents. Leases are for periods of up to one year, with rental payments due
monthly.
INTERIM UNAUDITED FINANCIAL INFORMATION
The accompanying interim unaudited Combined Historical Summary has been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission
and was prepared on the same basis as the Combined Historical Summary for the
year ended December 31, 1998. In the opinion of management of the Communities,
all adjustments, consisting only of normal recurring adjustments, necessary for
a fair presentation of the information for this interim period have been made.
The excess of combined gross income over direct operating expenses for such
interim period is not necessarily indicative of the excess of gross income over
direct operating expenses for the full year.
3. TRANSACTIONS WITH AFFILIATES
Dreyfuss Brothers Inc. and Dreyfuss Management Services, Inc., affiliates,
receive management fees relating to the Communities. The management fee ranges
from 3.5% to 5.0% of gross annual cash receipts.
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