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EXHIBIT 99.2
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 Regency Windsor 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 Regency Windsor 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
November 19, 1999
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Regency Windsor Apartment Communities
Combined Historical Summary of
Gross Income and Direct Operating Expenses
NINE MONTHS
YEAR ENDED ENDED
DECEMBER 31, SEPTEMBER 30,
1998 1999
------------ -------------
(unaudited)
GROSS INCOME
Rental income $ 49,085,105 $ 37,419,229
Other income 2,931,990 2,343,803
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Total gross income 52,017,095 39,763,032
DIRECT OPERATING EXPENSES
Repairs and maintenance 5,862,791 5,921,816
Utilities and other property operating 3,044,678 2,457,676
General and administrative 9,736,047 6,548,021
Real estate taxes 4,895,284 3,632,386
Management fees 2,098,485 1,592,300
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Total direct operating expenses 25,637,285 20,152,199
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Excess of gross income over direct operating expenses $ 26,379,810 $ 19,610,833
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See accompanying notes.
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Regency Windsor 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 Regency Windsor Apartment Communities (the "Communities") include fourteen
separate residential apartment communities located in Indiana, Michigan and
North Carolina. The Communities, which are under common management and control,
have been summarized as follows:
NUMBER OF
COMMUNITY LOCATION UNITS
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Brookwood Apts Indianapolis, IN 500
Canterbury Green Apts Fort Wayne, IN 2,009
Colonial Crest Bloomington, IN 208
Glen Hollow Charlotte, NC 336
Lafayette/Beau Jardin West Lafayette, IN 252
Mayfair Village West Lafayette, IN 72
Michgan Meadows Indianapolis, IN 253
Northview Harbor Grand Rapids, MI 360
Oakbrook Battle Creek, MI 586
Old Orchard Grand Rapids, MI 664
Ramblewood Apts Grand Rapids, MI 1,792
Stone Point Village Fort Wayne, IN 296
Williamsburg on the Wabash West Lafayette, IN 473
Woodlands Battle Creek, MI 76
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Total 7,877
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In September 1999, AIMCO Properties, L.P. entered into an agreement to acquire
the 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, professional fees, and other
debt service costs have been excluded. These costs are not considered to be
direct operating expenses.
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Regency Windsor 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)
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.
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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
MANAGEMENT FEES
Regency Windsor Management, Inc., an affiliate, receives management fees
relating to the Communities. The management fee ranges from 1.0% to 6.0% of
gross annual cash receipts.
OTHER
The Communities reimburse Regency Windsor Management, Inc. for commercial
insurance premiums paid on their behalf. The Communities also provide certain
employee benefits through benefit plans administered by Regency Windsor
Management, Inc.
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