EXHIBIT 99.1
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
7% INCREASE IN FFO, OR 1% ON A PER SHARE BASIS IN FIRST QUARTER
DENVER, COLORADO, May 1, 2002
FIRST QUARTER RESULTS
Apartment Investment and Management Company (NYSE:AIV) ("Aimco")
announced that its Funds From Operations ("FFO") for the first quarter of 2002
equaled $135 million or $1.30 per common share, compared to $127 million or
$1.29 per common share for the first quarter of 2001, an increase of 7%, or 1%
on a per share basis.
Aimco announced that its Adjusted Funds From Operations ("AFFO"),
Aimco's measure of economic profitability, for the first quarter of 2002 equaled
$117 million or $1.12 per common share, compared to $115 million or $1.17 per
common share for the first quarter of 2001, an increase of 2%, or a decrease of
4% on a per share basis. Capital replacement costs were $110 per unit for the
quarter compared to $75 per unit in the first quarter of 2001.
Aimco announced that its Earnings Per Share ("EPS") for the first
quarter of 2002 equaled $0.59 per common share and $0.58 per common share on a
diluted basis, compared to ($0.07) per common share and ($0.07) per common share
on a diluted basis for the first quarter of 2001. Operating Earnings Per Share
("OEPS") for the first quarter of 2002 equaled $0.53 per common share and $0.52
per common share on a diluted basis, compared to $0.08 per common share and
$0.08 per common share on a diluted basis for the first quarter of 2001.
Total consolidated revenues for the first quarter 2002 were $331
million, an increase of 5% compared to total consolidated revenues of $317
million for the same period in 2001.
FIRST QUARTER SAME STORE RESULTS
First quarter "same store" results for the 649 "same store" apartment
communities containing 177,794 units owned during both 2002 and 2001, adjusted
for Aimco's ownership interest in these communities, were a 1.1% increase in
revenues, a 2.9% increase in operating expenses, and a 0.2% increase in Net
Operating Income from the first quarter of 2001.
Property operating expenses for the 649 "same store" apartments
increased $2.9 million from first quarter 2001. Of the $2.9 million, insurance
expense accounted for $2.3 million of the change. The increase in insurance was
due to an increase in premiums
and is expected to be unchanged for the remainder of 2002. Also, in 2002, Aimco
evaluated the allocation of insurance across the portfolio based on prior period
claims and an assessment of higher risk areas. The result was a higher
allocation of insurance expense for wind and earthquake coverage in Florida,
Texas, and California which explains the large, year over year increases in
"same store" operating expenses for these regions.
FIRST QUARTER SAME STORE RESULTS
<Table>
<Caption>
OPERATING NET OPERATING
REVENUES EXPENSES INCOME
-------- --------- -------------
Northeast 3.2% 1.6% 4.0%
Southeast -0.3% 4.5% -2.9%
Florida 2.5% 10.0% -1.6%
Midwest -1.5% -2.4% -0.9%
Texas 1.9% 3.6% 0.7%
West -2.0% -0.5% -2.7%
California 3.1% 11.2% 0.4%
Total 1.1% 2.9% 0.2%
</Table>
Weighted average physical occupancy for the 649 apartment communities
was 92.4% for the first quarter, compared to 93.6% for the first quarter of
2001.
Average monthly rent per occupied unit was $694 at March 31, 2002
compared to $687 at March 31, 2001, an increase of 1%.
COMMON STOCK DIVIDEND
As previously reported, the Board of Directors declared on April 25, 2002 the
regular quarterly cash dividend of $0.82 per common share for the quarter ended
March 31, 2002, payable on May 13, 2002 to shareholders of record on May 6,
2002. The dividend represents a distribution of 73% of AFFO and 63% of FFO for
the quarter ended March 31, 2002 and a 7% yield based on the closing price of
Aimco's Class A Common Stock of $49.10 as of April 30, 2002.
EARNINGS CONFERENCE CALL
The first quarter 2002 earnings conference call will be conducted on Thursday,
May 2, 2002 at 12:00 p.m. Eastern time. You may participate in the conference
call by dialing 888-228-8198, or 706-634-5947 for international callers,
approximately five minutes before the conference call is scheduled to begin and
indicating that you wish to join the Apartment Investment and Management Company
first quarter 2002 earnings conference call. The live conference call can also
be accessed through the internet via Aimco's website at
www.aimco.com/about/financial/1Q2002.asp and clicking on the webcast link.
INVESTMENT MANAGEMENT ACTIVITY
Aimco has interests in 471 partnerships, excluding NAPICO, where the
Aimco ownership is a weighted average of 19% and the limited partner interest
has an estimated gross value of nearly $3 billion with $1.5 billion in
associated mortgage debt. Pursuant to the partnership agreements, Aimco can earn
property management, asset management, refinancing, disposition, development,
construction management and other fees. In addition, Aimco provides property
management and other services to unrelated third parties relating to 222
properties including approximately 29,159 units. 80% of the property management
and services provided to unrelated third parties are under long-term,
non-cancelable management contracts.
First quarter net operating income contribution from investment
management activity was $7 million compared to $11 million in the first quarter
2001. Contributing to the lower net operating income were a reduction in third
party property management activity, lower activity based fees and other costs
detailed on Supplemental Schedule IV. Of the $7 million total, activity based
fees were $0.5 million compared to $7 million in first quarter 2001 due to lower
refinancing, disposition and construction fee activities.
INTEREST INCOME
Interest income increased from $15 million in first quarter 2001 to $19
million in the first quarter of 2002. Of this total, transactional income
(accretion) was $10 million in first quarter 2002 compared to $5 million for the
first quarter 2001.
ACQUISITIONS
Aimco purchased $5 million of limited partnership interests in 125
partnerships during the first quarter.
As previously reported, Aimco closed the $1.1 billion Casden Properties
acquisition comprised of 4,975 conventional apartment units located in Southern
California, 11,027 affordable apartment units, and National Partnership
Investments Corporation ("NAPICO") which as general partner controls more than
400 properties with more than 41,000 units.
DISPOSITIONS
During the first quarter, Aimco sold 12 apartment communities (8
conventional communities and 4 affordable communities) containing 1,752 units
(1,432 conventional units and 320 affordable units) for $62 million ($53 million
from conventional property sales and $9 million from affordable property sales)
of which Aimco's share of the net proceeds was $13 million. In addition, Aimco
sold its General Partner interests in six properties totaling 538 units for $1
million.
Aimco ranks its properties by location quality and other factors, and
sells the lowest rated properties. It is a continual pruning process. In
addition to upgrading asset quality, sales generate cash. In the first quarter
of 2002, unlevered Free Cash Flow yields on conventional apartment sales
averaged 8.9% based on operating results for the twelve months prior to sale.
Aimco currently has 88 conventional properties (17,985 units), 93 affordable
properties (9,618 units) and 7 senior living properties (1,478 units) in the
process of being sold and anticipates sales proceeds (including repayment of
mortgage debt) exceeding $1 billion from the sale of these properties over the
next twelve to fifteen months.
REDEVELOPMENT ACTIVITY
As of March 31, 2002, Aimco had 11 properties (4,517 units) under
redevelopment, with an estimated total investment of $435 million of which
approximately $184 million remains to be spent. Aimco's share of the estimated
total investment is $324 million of which approximately $119 million remains to
be spent. Aimco projects a greater than 10% Free Cash Flow yield upon
stabilization.
FINANCING ACTIVITY
During the first quarter, Aimco refinanced 11 mortgage loans generating
$59 million of total proceeds at a weighted average interest rate of 7.25%.
After repayment of existing debt totaling $45 million, Aimco's share of the
proceeds was $9 million. All of these mortgage loans are fixed rate,
self-amortizing, non recourse conventional mortgage loans with 20 year terms.
The proceeds from the refinancings were used to pay off existing mortgage debt,
distribute a share of excess proceeds to unrelated limited partners and
otherwise to fund Aimco operating activities.
At March 31, 2002, Aimco's total mortgage debt of $5.8 billion ($5.2
billion or 89% in consolidated debt and $622 million or 11% in Aimco's pro rata
share of unconsolidated debt) had a weighted average maturity of 16 years and
weighted average interest rate of 7.04%. Less than 8% or $446 million matures
prior to 2005 (Aimco's share is 6% or $363 million). 83% ($4.8 billion) of the
mortgage debt is fixed rate. 17% ($1.0 billion) is variable rate of which 83%
($828 million) is tax exempt financing.
Aimco had $230 million outstanding on its $400 million corporate
revolving line of credit at quarter end and availability of $170 million. In
addition, Aimco had $287 million outstanding on its term loan. This amount was
reduced to $259 million subsequent to quarter end.
Year-to-date, Aimco has redeemed for common stock and OP Units $160
million in convertible preferred - the Class B Preferred OP Units and the $125
million Class K Preferred Stock (which was redeemed subsequent to quarter end).
Aimco had previously included these shares in its fully diluted share count to
calculate FFO and AFFO per share.
Aimco issued 2 million additional shares of Class R Cumulative
Preferred Stock (1 million shares in March and 1 million shares subsequent to
quarter end) to pay down short-term indebtedness. These shares were issued at a
net price of $25.30 per Class R share.
LIQUIDITY
In the first quarter, internal sources of cash flow, including "Cash
Cushion" (i.e., AFFO less common dividends and scheduled principal payments on
debt) plus net proceeds from mortgage refinancings and property sales, generated
$53 million to Aimco.
Aimco expects to generate internal cash approximating $500 million in
2002 from Cash Cushion, sales and refinancings. This cash is expected to be used
to repay more than $100 million of the term loan used to fund a portion of the
Casden purchase, as well as to fund approximately $200 million in capital
spending for redevelopments, initial capital expenditures and enhancements,
leaving $200 million of cash for property and/or partnership acquisitions or
other uses including additional debt repayment.
OUTLOOK
Earnings guidance and supporting assumptions for the second quarter
2002 and the full year 2002 are attached as Supplemental Schedule X. Second
quarter and 2002 guidance have been revised to reflect the continuing slow
economy which -assuming current conditions will generate lower same store growth
(0% to 1%) for the balance of 2002 and may reduce variable earnings principally
from lower transactional income (accretion) and lower activity based fees.
SUPPLEMENTAL INFORMATION
Please see the attached Supplemental Information as noted below:
Consolidated Statements of Income Supplemental Schedule I
Balance Sheet Presentation Supplemental Schedule II
FFO and AFFO Supplemental Schedule III
Free Cash Flow from Business Segments Supplemental Schedule IV
Free Cash Flow Narrative Supplemental Schedule V
Proportionate Income Statement Presentation Supplemental Schedule VI
Selected Balance Sheet Information Supplemental Schedule VII
Summary of Redevelopment Activity Supplemental Schedule VIII
Quarter to Date Same Store Sales Supplemental Schedule IX
2002 Outlook Summary Supplemental Schedule X
Additional disclosures will be available on the Aimco website at
www.aimco.com/about/financial/1Q2002.asp as noted below.
Apartment Unit Summary
Net Asset Value
FORWARD-LOOKING ASSUMPTIONS
This earnings release contains forward-looking statements including
statements regarding 2002 results which are subject to certain risks and
uncertainties, including but not limited to the Company's ability to maintain
current occupancy, rent levels, and "same store" results. Actual results may
differ materially from those described and could be affected by a variety of
factors including economic conditions; changes in interest rates; governmental
regulations; competition; financing risks; variations in real estate values; the
failure of acquisitions to perform in accordance with expectations; possible
environmental liabilities; and other risks described in our filings with the
Securities and Exchange Commission. These forward-looking statements reflect
management's judgment as of this date, and we assume no obligation to revise or
update them to reflect future events or circumstances.
ABOUT AIMCO
Aimco is a real estate investment trust headquartered in Denver,
Colorado and operating a geographically diversified portfolio of apartment
communities through 18 regional operating centers. Aimco, through its
subsidiaries, operates approximately 1,900 properties, including approximately
333,000 apartment units, and serves approximately one million residents each
year. Aimco's properties are located in 47 states, the District of Columbia and
Puerto Rico. For additional information on Aimco, please visit our website at
www.aimco.com; call Paul McAuliffe, Executive Vice President and Chief Financial
Officer, at (303) 691-4339 or Katie Murphree, Vice President - Investor
Relations, at (303) 691-4440; or email us at investor@aimco.com.
SUPPLEMENTAL SCHEDULE I
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
CONSOLIDATED STATEMENTS OF INCOME [A]
(IN THOUSANDS, EXCEPT PER SHARE AND UNIT DATA)
(UNAUDITED)
<Table>
<Caption>
FOR THE THREE MONTHS ENDED MARCH 31,
------------------------------------
2002 2001
---------------- ----------------
RENTAL PROPERTY OPERATIONS:
Rental and other property revenues $ 331,484 $ 316,807
Property operating expenses(b)(c)(d) (127,201) (119,062)
-------------- --------------
Income from property operations 204,283 197,745
-------------- --------------
INVESTMENT MANAGEMENT BUSINESS:
Management fees and other income from affiliates(b)(d)(e) 35,475 39,106
Management and other expenses (e) (28,101) (28,432)
Amortization of intangibles (1,124) (4,901)
-------------- --------------
Income from investment management business 6,250 5,773
-------------- --------------
General and administrative expenses (3,096) (4,092)
Depreciation of rental property (70,526) (93,057)
Interest expense(f) (81,766) (84,528)
Interest and other income(g) 18,743 14,659
Equity in earnings (losses) of unconsolidated real estate
partnerships(h) 3,727 (4,280)
Minority interest in consolidated real estate partnerships (3,399) (5,262)
-------------- --------------
OPERATING EARNINGS 74,216 26,958
(Distributions to) recoveries from minority interest partners
in excess of income 1,586 (10,940)
Discontinued operations:
Income (loss) from discontinued operations (including gain
on disposals of $3,956 and $66, respectively) 4,739 (681)
Income tax arising from disposals from discontinued operations (768) --
-------------- --------------
INCOME BEFORE MINORITY INTEREST IN AIMCO OPERATING PARTNERSHIP 79,773 15,337
Minority interest in AIMCO Operating Partnership (9,714) (1,319)
-------------- --------------
NET INCOME $ 70,059 $ 14,018
============== ==============
Net income attributable to preferred stockholders $ 25,479 $ 18,695
============== ==============
Net income (loss) attributable to common stockholders $ 44,580 $ (4,677)
============== ==============
Weighted average number of common shares outstanding 74,845 70,619
============== ==============
Weighted average number of common shares and common share
equivalents outstanding 76,240 70,619
============== ==============
Earnings per share:
Basic earnings (loss) per common share $ 0.59 $ (0.07)
============== ==============
Diluted earnings (loss) per common share $ 0.58 $ (0.07)
============== ==============
Operating earnings per share:
Basic operating earnings per common share $ 0.53 $ 0.08
============== ==============
Diluted operating earnings per common share $ 0.52 $ 0.08
============== ==============
</Table>
(a) See Supplemental IV for Aimco's free cash flow from business segments from
consolidated and unconsolidated entities.
(b) In accordance with consolidation accounting principles, $4.2 million of
reimbursement fee income for the three months ended March 31, 2002, was
eliminated from the investment management business and the associated
expense was accordingly eliminated from rental property operations.
(c) Includes $1.4 million and $2.4 million of third party property management
expense for the three months ended March 31, 2002 and 2001, respectively.
(d) In accordance with consolidation accounting principles, $9.4 million of
management fee income for the three months ended March 31, 2002, was
eliminated from the investment management business and the associated
expense was accordingly eliminated from rental property operations.
(e) In accordance with consolidation accounting principles, $6.1 million of
construction management fee income for the three months ended March 31,
2002, was eliminated from the investment management business revenue and
the associated expense was accordingly eliminated from investment
management business expense.
(f) Interest expense for the three months ended March 31, 2001 is higher due to
the overaccrual of interest relating to the Oxford acquisition.
(g) In first quarter of 2002, interest and other income included $10.1 million
of transactional income.
(h) In first quarter of 2002, represents Aimco's share of earnings from 133,278
apartment units in which Aimco holds an equity interest.
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE II
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
BALANCE SHEET PRESENTATION
(IN THOUSANDS)
(UNAUDITED)
<Table>
<Caption>
CONSOLIDATED CONSOLIDATED
PROPORTIONATE GAAP GAAP
PROPORTIONATE SHARE OF BALANCE SHEET BALANCE SHEET
CONSOLIDATED UNCONSOLIDATED AS OF AS OF
BALANCE SHEET(a) PARTNERSHIPS(b) MARCH 31, 2002 DECEMBER 31, 2001
---------------- ---------------- ---------------- -----------------
ASSETS
Real estate $ 8,664,184 $ 853,638 $ 7,810,546 $ 7,029,670
Land 1,838,599 204,849 1,633,750 1,231,981
Accumulated depreciation (1,861,657) (212,093) (1,649,564) (1,603,311)
Assets held for sale 138,797 -- 138,797 137,515
Cash and cash equivalents 107,332 -- 107,332 80,000
Restricted cash 210,209 -- 210,209 138,223
Accounts receivable 136,540 -- 136,540 116,428
Deferred financing costs 80,756 -- 80,756 82,693
Notes receivable from unconsolidated real
estate partnerships 249,130 -- 249,130 243,511
Investment in unconsolidated real
estate partnerships 415,815 (224,705) 640,520 601,935
Other assets 316,845 -- 316,845 258,116
---------------- ---------------- ---------------- ----------------
TOTAL ASSETS $ 10,296,550 $ 621,689 $ 9,674,861 $ 8,316,761
================ ================ ================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Secured tax-exempt bond financing
- long term $ 1,267,643 $ 68,468 $ 1,199,175 $ 991,127
Secured notes payable - long term 4,429,542 553,221 3,876,321 3,433,034
Term loan 287,000 -- 287,000 --
Credit facility 229,700 -- 229,700 213,500
---------------- ---------------- ---------------- ----------------
TOTAL INDEBTEDNESS 6,213,885 621,689 5,592,196 4,637,661
Accounts payable 12,180 -- 12,180 10,597
Accrued liabilities and other 391,925 -- 391,925 256,567
Liabilities related to assets
held for sale 123,202 -- 123,202 123,181
Deferred income 22,923 -- 22,923 9,075
Security deposits 36,006 -- 36,006 31,174
Deferred taxes 36,413 -- 36,413 36,348
---------------- ---------------- ---------------- ----------------
TOTAL LIABILITIES 6,836,534 621,689 6,214,845 5,104,603
---------------- ---------------- ---------------- ----------------
Minority interest in consolidated real
estate partnerships 114,292 -- 114,292 113,782
Mandatorily redeemable convertible
preferred securities 20,637 -- 20,637 20,637
Minority interest in AIMCO Operating
Partnership 427,556 -- 427,556 367,124
STOCKHOLDERS' EQUITY
Class A Common Stock 790 -- 790 745
Additional paid - in capital 2,404,046 -- 2,404,046 2,209,803
Perpetual preferred stock 527,520 -- 527,520 502,520
Convertible preferred stock 605,462 -- 605,462 621,947
Distributions in excess of earnings (588,254) -- (588,254) (572,165)
Unvested restricted stock (5,088) -- (5,088) (5,775)
Notes due on common stock purchases (46,945) -- (46,945) (46,460)
---------------- ---------------- ---------------- ----------------
2,897,531 -- 2,897,531 2,710,615
---------------- ---------------- ---------------- ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,296,550 $ 621,689 $ 9,674,861 $ 8,316,761
================ ================ ================ ================
</Table>
(a) Aimco's proportionate consolidated balance sheet, which includes the GAAP
balance sheet as of March 31, 2002, plus the proportionate share of
selected unconsolidated balance sheet data to include only real estate,
land, accumulated depreciation and secured debt, as of March 31, 2002.
(b) Total of Aimco's proportionate share of selected unconsolidated balance
sheet data to include only real estate, land, accumulated depreciation and
secured debt, as of March 31, 2002.
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE III
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<Table>
<Caption>
FOR THE THREE MONTHS ENDED MARCH 31,
------------------------------------
2002 2001
------------ ------------
OPERATING ACTIVITIES:
Income before minority interest in AIMCO Operating Partnership $ 79,773 $ 15,337
Gain on disposals from discontinued operations (3,956) (66)
Income tax arising from disposals from discontinued operations 768 --
Discontinued operations depreciation, net of minority interest 735 1,520
Real estate depreciation, net of minority interests 62,363 85,531
Real estate depreciation related to unconsolidated entities 7,593 14,826
Distributions to (recoveries from) minority interest partners in excess of income (1,586) 10,940
Amortization of intangibles 1,124 4,901
Preferred stock dividends and distributions (11,836) (6,735)
Interest expense on mandatorily redeemable convertible preferred securities 260 525
------------ ------------
FUNDS FROM OPERATIONS $ 135,238 $ 126,779
Recurring capital replacements (18,167) (11,403)
------------ ------------
ADJUSTED FUNDS FROM OPERATIONS $ 117,071 $ 115,376
============ ============
Weighted average common shares, common share equivalents and Operating
Partnership units outstanding:
Common share and common share equivalents 92,398 89,824
Operating Partnership units 12,011 8,751
------------ ------------
104,409 98,575
============ ============
PER COMMON SHARE:
Funds From Operations $ 1.30 $ 1.29
Adjusted Funds From Operations $ 1.12 $ 1.17
Dividends Declared $ 0.82 $ 0.78
</Table>
<Table>
<Caption>
PERCENTAGE
OTHER DATA: MARCH 31, 2002 MARCH 31, 2001 INCREASE (DECREASE)
- ----------- -------------- -------------- -------------------
Same store:
Weighted average physical occupancy 92.4% 93.6% -1.2%
Average monthly rent per occupied unit $ 694 $ 687 1.0%
Total portfolio:
Weighted average physical occupancy 90.7% 90.9% -0.2%
Average monthly rent per occupied unit $ 697 $ 689 1.2%
</Table>
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE IV
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
FREE CASH FLOW FROM BUSINESS SEGMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2002
(IN THOUSANDS, EXCEPT PER SHARE AND UNIT DATA)
(UNAUDITED)
<Table>
<Caption>
CONSOLIDATED UNCONSOLIDATED TOTAL %
------------ -------------- ------------ ------------
REAL ESTATE
Conventional
Average monthly rent greater than $1,000 per unit
(15,280 equivalent units) $ 28,396 $ 1,534 $ 29,930 14.3%
Average monthly rent $900 to $1,000 per unit (10,924
equivalent units) 21,501 1,228 22,729 10.8%
Average monthly rent $800 to $900 per unit (13,099
equivalent units) 19,663 933 20,596 9.8%
Average monthly rent $700 to $800 per unit (22,126
equivalent units) 28,632 2,498 31,130 14.8%
Average monthly rent $600 to $700 per unit (36,599
equivalent units) 39,048 3,202 42,250 20.1%
Average monthly rent $500 to $600 per unit (36,195
equivalent units) 31,555 3,021 34,576 16.5%
Average monthly rent less than $500 per unit (16,650
equivalent units) 9,246 310 9,556 4.6%
------------ ------------ ------------ ------------
Subtotal conventional real estate contribution to Free
Cash Flow 178,041 12,726 190,767 90.9%
Affordable (23,005 equivalent units) 6,465 6,057 12,522 6.0%
College housing (average rent of $610 per month)
(2,854 equivalent units) 3,076 97 3,173 1.5%
Other real estate 1,096 24 1,120 0.5%
Minority interest (20,680) -- (20,680) -9.9%
------------ ------------ ------------ ------------
TOTAL REAL ESTATE CONTRIBUTION TO FREE CASH FLOW 167,998 18,904 186,902 89.0%
INVESTMENT MANAGEMENT BUSINESS
Management contracts (property and asset management)
Controlled properties(1) 6,511 -- 6,511 3.1%
Third party with terms in excess of one year 541 -- 541 0.3%
Third party cancelable in 30 days 322 -- 322 0.2%
Insurance operations(2) (475) -- (475) -0.2%
------------ ------------ ------------ ------------
Investment management business contribution to free
cash flow before activity based fees 6,899 -- 6,899 3.4%
Activity based fees 475 -- 475 0.2%
------------ ------------ ------------ ------------
TOTAL INVESTMENT MANAGEMENT BUSINESS CONTRIBUTION TO
FREE CASH FLOW 7,374 -- 7,374 3.6%
INTEREST INCOME
General partner loan interest 8,084 -- 8,084 3.9%
Transactional income 10,095 -- 10,095 4.8%
Money market and interest bearing accounts 564 -- 564 0.3%
------------ ------------ ------------ ------------
TOTAL INTEREST INCOME CONTRIBUTION TO FREE CASH FLOW 18,743 -- 18,743 9.0%
General and administrative expense (3,096) -- (3,096) -1.6%
------------ ------------ ------------ ------------
FREE CASH FLOW 191,019 18,904 209,923 100.0%
</Table>
- --------------------------------------------------------------------------------
(1) Includes $0.6 million in consulting costs associated with Project Century
and $0.3 million of abandoned software costs.
(2) Includes $2.4 million in insurance claim losses.
SUPPLEMENTAL SCHEDULE IV (CONTINUED)
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
FREE CASH FLOW FROM BUSINESS SEGMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2002
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<Table>
<Caption>
BASIC DILUTED
-------------------------------------------- ------------
CONSOLIDATED UNCONSOLIDATED TOTAL TOTAL
------------ -------------- ------------ ------------
FREE CASH FLOW 191,019 18,904 209,923 209,923
COST OF SENIOR CAPITAL
Interest expense:
Secured debt
Long-term, fixed rate (66,407) (9,538) (75,945) (75,945)
Long-term, variable rate (9,748) (607) (10,355) (10,355)
Short-term (3,583) -- (3,583) (3,583)
Lines of credit and other unsecured debt (5,094) -- (5,094) (5,094)
Interest expense on mandatorily redeemable convertible
preferred securities (260) -- (260) --
Interest capitalized 3,326 -- 3,326 3,326
------------ ------------ ------------ ------------
Total interest expense before minority interest (81,766) (10,145) (91,911) (91,651)
Minority interest share of interest expense 9,214 -- 9,214 9,214
------------ ------------ ------------ ------------
Total interest expense after minority interest (72,552) (10,145) (82,697) (82,437)
Distributions on preferred OP units (2,716) -- (2,716) --
Distributions on preferred securities owned by minority interest (98) -- (98) --
Distributions on preferred stock (25,479) -- (25,479) (11,934)
------------ ------------ ------------ ------------
Total distributions on preferred OP units and securities (28,293) -- (28,293) (11,934)
Non-structural depreciation, net of capital replacements 2,222 1,845 4,067 4,067
Amortization of intangibles (1,124) -- (1,124) (1,124)
Income from discontinued operations 4,739 -- 4,739 4,739
Income tax arising from disposals from discontinued operations (768) -- (768) (768)
------------ ------------ ------------ ------------
EARNINGS BEFORE STRUCTURAL DEPRECIATION 95,243 10,604 105,847 122,466
Structural depreciation, net of minority interest (48,978) (6,877) (55,855) (55,855)
Recoveries from minority interest partners in excess of income 1,586 0 1,586 1,586
Interest expense on mandatorily redeemable convertible preferred
securities -- -- -- (260)
Preferred equity dividends -- -- -- (16,359)
------------ ------------ ------------ ------------
NET INCOME ATTRIBUTABLE TO OP UNIT AND STOCKHOLDERS 47,851 3,727 51,578 51,578
Gain on disposals from discontinued operations (3,956) -- (3,956) (3,956)
Income tax arising from disposals from discontinued operations 768 -- 768 768
Discontinued operations depreciation, net of minority interest 367 368 735 735
Structural depreciation, net of minority interest 48,978 6,877 55,855 55,855
Recoveries from minority interest partners in excess of income (1,586) -- (1,586) (1,586)
Non-structural depreciation, net of minority interest 13,385 716 14,101 14,101
Amortization of intangibles 1,124 -- 1,124 1,124
Interest expense on mandatorily redeemable convertible preferred
securities -- -- -- 260
Preferred equity dividends -- -- -- 16,359
------------ ------------ ------------ ------------
FUNDS FROM OPERATIONS 106,931 11,688 118,619 135,238
Capital replacement reserve (15,605) (2,562) (18,167) (18,167)
------------ ------------ ------------ ------------
ADJUSTED FUNDS FROM OPERATIONS $ 91,326 $ 9,126 $ 100,452 $ 117,071
============ ============ ============ ============
</Table>
<Table>
<Caption>
----------- --------- ---------
EARNINGS SHARES PER SHARE
----------- --------- ---------
EBSD
Basic $ 105,847 86,856
Diluted 122,466 104,409
Net Income
Basic 51,578 86,856 $ 0.59
Diluted 51,578 88,251 $ 0.58
FFO
Basic 118,619 86,856
Diluted 135,238 104,409
AFFO
Basic 100,452 86,856
Diluted 117,071 104,409
</Table>
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE V
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
FREE CASH FLOW FROM BUSINESS SEGMENTS NARRATIVE
(IN THOUSANDS)
(UNAUDITED)
Free Cash Flow, Earnings Before Structural Depreciation, Funds From
Operations, and Adjusted Funds From Operations are measurement standards
used by the Company's management. These should not be considered
alternatives to net income or cash flow from operating activities as
determined in accordance with GAAP as an indication of the Company's
performance or as a measure of liquidity.
- "Free Cash Flow" ("FCF") is defined by the Company as net operating
income minus the capital replacement spending required to maintain the
related assets. It measures profitability prior to the cost of
capital.
- "Earnings Before Structural Depreciation" ("EBSD") is defined by the
Company as net income, determined in accordance with GAAP, plus
"Structural Depreciation," i.e. depreciation of buildings and land
improvements whose useful lives exceed 20 years.
- "Funds From Operations" ("FFO") is defined by the Board of Governors
of the National Association of Real Estate Investment Trusts
("NAREIT") as net income (loss), computed in accordance with GAAP,
excluding gains and losses from extraordinary items and disposals from
discontinued operations, net of related income taxes, plus real estate
related depreciation and amortization (excluding amortization of
financing costs), including depreciation for unconsolidated
partnerships, joint ventures and discontinued operations. The Company
calculates FFO based on the NAREIT definition, as further adjusted for
minority interest in the Aimco Operating Partnership, plus
amortization of intangibles, plus distributions to or less recoveries
from minority interest partners in excess of income and less dividends
on preferred stock. The Company calculates FFO (diluted) by adding
back the interest expense and preferred dividends relating to
convertible securities whose conversion is dilutive to FFO. There can
be no assurance that the Company's basis for computing FFO is
comparable with that of other real estate investment trusts.
- "Adjusted Funds From Operations" ("AFFO") is defined by the Company as
FFO less a charge for capital replacement spending equal to $110 per
apartment unit for the three months ended March 31, 2002, based on
weighted average equivalent units of approximately 165,000 for the
quarter.
RECONCILIATION OF FCF, EBSD, FFO AND AFFO TO NET INCOME:
<Table>
<Caption>
FOR THE THREE MONTHS ENDED MARCH 31, 2002
------------------------------------------------------------
FCF EBSD FFO AFFO
------------ ------------ ------------ ------------
Amount per Free Cash Flow Schedule $ 209,923 $ 105,847 $ 118,619 $ 100,452
Total interest expense after minority interest (82,697) -- -- --
Dividends on preferred securities owned by minority interest (97) -- -- --
Dividends on preferred OP units -- 2,716 2,716 2,716
Dividends on preferred stock -- 25,479 25,479 25,479
Structural depreciation, net of minority interest (55,855) (55,855) (55,855) (55,855)
Non-structural depreciation, net of minority interest (14,101) -- (14,101) (14,101)
Discontinued operations depreciation, net of minority interest -- -- (735) (735)
Recoveries from minority interest partners in excess of income 1,586 1,586 1,586 1,586
Capital replacements 18,167 -- -- 18,167
Amortization of intangibles (1,124) -- (1,124) (1,124)
Income from discontinued operations 783 -- -- --
Gain on disposals from discontinued operations 3,956 -- 3,956 3,956
Income tax arising from disposals from discontinued operations (768) -- (768) (768)
Minority interest in Aimco Operating Partnership (9,714) (9,714) (9,714) (9,714)
------------ ------------ ------------ ------------
Net income $ 70,059 $ 70,059 $ 70,059 $ 70,059
============ ============ ============ ============
</Table>
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE VI
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
PROPORTIONATE INCOME STATEMENT PRESENTATION
(INCLUDING PROPORTIONATE CONSOLIDATED INCOME STATEMENT)
FOR THE THREE MONTHS ENDED MARCH 31, 2002
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<Table>
<Caption>
PROPORTIONATE
AIMCO SHARE OF PROPORTIONATE
GAAP INCOME UNCONSOLIDATED CONSOLIDATED
STATEMENT(a) PARTNERSHIPS(b) INCOME STATEMENT(c)
------------ --------------- -------------------
RENTAL PROPERTY OPERATIONS:
Rental and other property revenues $ 331,484 $ 44,147 $ 375,631
Property operating expenses (127,201) (22,681) (149,882)
Minority interest -- -- --
------------ --------------- ------------------
Income from property operations 204,283 21,466 225,749
INVESTMENT MANAGEMENT BUSINESS:
Management fees and other income from affiliates 35,475 -- 35,475
Management and other expenses (28,101) -- (28,101)
Amortization of intangibles (1,124) -- (1,124)
------------ --------------- ------------------
Income from investment management business 6,250 -- 6,250
General and administrative expenses (3,096) -- (3,096)
Depreciation on rental property (70,526) (7,594) (78,120)
Interest expense (81,766) (10,145) (91,911)
Interest and other income 18,743 -- 18,743
Equity in earnings of unconsolidated real estate partnerships 3,727 (3,727) --
Minority interest in consolidated real estate partnerships (3,399) -- (3,399)
Amortization of intangibles -- -- --
------------ --------------- ------------------
OPERATING EARNINGS 74,216 -- 74,216
Recoveries from minority interest partners in excess of income 1,586 -- 1,586
Discontinued operations:
Income from discontinued operations (including gain on
disposals of $3,956) 4,739 -- 4,739
Income tax arising from disposals from discontinued operations (768) -- (768)
------------ --------------- ------------------
INCOME BEFORE MINORITY INTEREST IN AIMCO OPERATING PARTNERSHIP 79,773 -- 79,773
Minority interest in Aimco Operating Partnership, preferred (2,716) -- (2,716)
Minority interest in Aimco Operating Partnership, common (6,998) -- (6,998)
------------ --------------- ------------------
NET INCOME $ 70,059 $ -- $ 70,059
Net income attributable to preferred stockholders $ 25,479 $ 25,479
============ ==================
Net income attributable to common stockholders $ 44,580 $ 44,580
============ ==================
Basic earnings per common share $ 0.59 $ 0.59
============ ==================
Diluted earnings per common share $ 0.58 $ 0.58
============ ==================
Weighted average number of common shares outstanding 74,845
Weighted average number of common shares and common share
equivalents outstanding 76,240
Dividends paid per common share $ 0.82
<Caption>
RECONCILIATION TO FREE CASH FLOW FROM BUSINESS SEGMENTS(d)
-----------------------------------------------------------
AMORTIZATION OF MINORITY CAPITAL FREE CASH
INTANGIBLES INTEREST REPLACEMENTS FLOW
--------------- ---------- ------------ ----------
RENTAL PROPERTY OPERATIONS:
Rental and other property revenues $ -- $ -- $ -- $ 375,631
Property operating expenses -- -- (18,167) (168,049)
Minority interest -- (20,680) -- (20,680)
--------------- ---------- ------------ ----------
Income from property operations -- (20,680) (18,167) 186,902
INVESTMENT MANAGEMENT BUSINESS:
Management fees and other income from affiliates -- -- -- 35,475
Management and other expenses -- -- -- (28,101)
Amortization of intangibles 1,124 -- -- --
--------------- ---------- ------------ ----------
Income from investment management business 1,124 -- -- 7,374
General and administrative expenses -- -- -- (3,096)
Depreciation on rental property -- 8,165 18,167 (51,788)
Interest expense -- 9,214 -- (82,697)
Interest and other income -- -- -- 18,743
Equity in earnings of unconsolidated real estate partnerships -- -- -- --
Minority interest in consolidated real estate partnerships -- 3,301 -- (98)
Amortization of intangibles (1,124) -- -- (1,124)
--------------- ---------- ------------ ----------
OPERATING EARNINGS -- -- -- 74,216
Recoveries from minority interest partners in excess of income -- -- -- 1,586
Discontinued operations:
Income from discontinued operations (including gain on
disposals of $3,956) 4,739
Income tax arising from disposals from discontinued operations -- -- -- (768)
--------------- ---------- ------------ ----------
INCOME BEFORE MINORITY INTEREST IN AIMCO OPERATING PARTNERSHIP -- -- -- 79,773
Minority interest in Aimco Operating Partnership, preferred -- -- -- --
Minority interest in Aimco Operating Partnership, common -- -- -- --
--------------- ---------- ------------ ----------
NET INCOME $ -- $ -- $ -- $ 79,773
Net income attributable to preferred stockholders $ 2,716 $ 28,195
========== ==========
Net income attributable to common stockholders $ 51,578
==========
Basic earnings per common share $ 0.59
==========
Diluted earnings per common share $ 0.58
==========
Weighted average number of common shares outstanding
Weighted average number of common shares and common share
equivalents outstanding
Dividends paid per common share
</Table>
(a) Aimco's consolidated statement of income on a GAAP basis
(b) Aimco's proportionate share of unconsolidated real estate partnerships
(c) Total of Aimco's proportionate share of unconsolidated real estate
partnerships and consolidated operations
(d) Reconciliation of the proportionate consolidated income statement to the
Free Cash Flow From Business Segments (Supplemental IV)
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE VII
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
SELECTED BALANCE SHEET INFORMATION
AS OF MARCH 31, 2002
(IN THOUSANDS)
(UNAUDITED)
<Table>
<Caption>
I. PROPERTY DEBT:
Consolidated and Unconsolidated:
Weighted Average
Amount Rate
------------ ----------------
Consolidated
Fixed $ 4,239,387(1) 7.50%
Variable 959,311 4.99%
------------ ------------
Sub-Total Consolidated 5,198,698 7.03%
Unconsolidated (Aimco's Share)
Fixed 565,642 7.28%
Variable 56,047 4.58%
------------ ------------
Sub-Total Unconsolidated 621,689 7.04%
Total Mortgage Debt (Consolidated and
Pro Rata Share Unconsolidated) $ 5,820,387 7.04%
------------ ============
Minority Interest (512,201)
------------
Aimco's Share of Mortgage Debt $ 5,308,186
============
</Table>
(1) Includes $123,202 of liabilities related to assets held for sale
II. ACQUISITIONS FOR THE QUARTER ENDED MARCH 31, 2002:
<Table>
Casden Properties Acquisition $ 1,077,000
Limited Partner Equity Interests $ 5,000
</Table>
III. COMMON SHARES OUTSTANDING AS OF MARCH 31, 2002:
<Table>
Class A Common Stock 78,982
Common OP and other units 12,742
------------
91,724
============
</Table>
IV. PREFERRED STOCK:
<Table>
Amount Coupon
------------ ----------------
PERPETUAL:
Class C $ 60,000 9.00%
Class D 105,000 8.75%
Class G 101,250 9.38%
Class H 50,000 9.50%
Class Q 63,250 10.10%
Class R 148,500 10.00%
------------
Total $ 528,000
============
CONVERTIBLE:
Class B $ 41,947 10.77%
Class K 108,515 8.00%(1)
Class L 125,000 8.10%
Class M 30,000 8.50%
Class N 100,000 9.00%
Class O 100,000 9.00%
Class P 100,000 9.00%
------------
605,462
Preferred OP units 122,975 8.81%
TOPRs 20,637 6.50%
------------
Total $ 749,074
============
</Table>
(1) The remainder of the Class K was fully converted on April 18, 2002.
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE VIII
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
SUMMARY OF REDEVELOPMENT ACTIVITY
AS OF MARCH 31, 2002
(IN MILLIONS, EXCEPT UNIT DATA)
(VALUES ARE NOT ADJUSTED FOR AIMCO'S OWNERSHIP)
(UNAUDITED)
<Table>
<Caption>
-------------------------------------------
COST IN MILLIONS
OWNERSHIP NUMBER -------------------------------------------
% OF UNITS NOTES MARKET VALUE(1) REDEVELOPMENT TOTAL
Grand Flamingo Miami Beach, FL 77% 1,688 $ 63.1 $ 208.3 $ 271.4
Village at Venezia Venice, CA 50% 839 2 $ 118.0 $ 87.1 $ 205.1
Reflections Indianapolis, IN 50.8% 582 3 $ 8.6 $ 8.8 $ 17.4
Meadow Creek Boulder, CO 100% 332 $ 16.8 $ 13.5 $ 30.3
Village Brooke II Cincinnati, OH 48.7% 290 4 $ 2.4 $ 24.1 $ 26.5
Ashford Plantation Atlanta, GA 100% 221 $ 9.9 $ 13.6 $ 23.5
Wyntre Brook West Chester, PA 100% 212 $ 6.7 $ 7.9 $ 14.6
Riverloft Philadelphia, PA 100% 184 $ 9.0 $ 24.9 $ 33.9
Stonebrook II Sanford, FL 100% 112 $ 0.5 $ 7.4 $ 7.9
Calhoun Beach Club Minneapolis, MN 100% 57 5 $ 80.0 $ 27.1 $ 107.1
Park Towne Philadelphia, PA 80.8% 980 6 $ -- $ 12.1 $ 12.1
-------- ------- ------- --------
Total 5,497 $ 315.0 $ 434.8 $ 749.8
======== ======= ======= ========
<Caption>
------------------------------------------------------ -----------------------------------
REDEVELOPMENT TIMING NUMBER OF UNITS
------------------------------------------------------ -----------------------------------
ACQUISITION START COMPLETE STABILIZATION COMPLETED LEASED OUT OF SERVICE
Grand Flamingo Miami Beach, FL Q3 1997 Q3 1997 Q4 2002 Q1 2004 687 614 1,003
Village at Venezia Venice, CA Q2 2001 Q4 2000 Q2 2004 Q1 2005 26 23 205
Reflections Indianapolis, IN Q4 1998 Q2 2001 Q4 2002 Q3 2003 258 210 275
Meadow Creek Boulder, CO Q2 1985 Q3 1999 Q1 2002 Q2 2003 332 193 0
Village Brooke II Cincinnati, OH Q4 1998 Q3 2001 Q2 2003 Q2 2003 0 0 290
Ashford Plantation Atlanta, GA Q4 1995 Q2 2001 Q3 2002 Q2 2003 33 22 146
Wyntre Brook West Chester, PA Q2 1997 Q2 2001 Q2 2002 Q3 2002 192 121 20
Riverloft Philadelphia, PA Q2 1997 Q4 2000 Q4 2001 Q3 2002 184 96 0
Stonebrook II Sanford, FL Q2 1999 Q1 2001 Q4 2001 Q2 2002 112 52 0
Calhoun Beach Club Minneapolis, MN Q4 1998 Q4 2001 Q4 2002 Q4 2002 0 0 57
Park Towne Philadelphia, PA Q4 1997 Q4 2001 Q4 2002 N/A 0 0 0
----- ----- -----
Total 1,824 1,331 1,996
===== ===== =====
</Table>
Notes
1 - Approximate value at start of redevelopment.
2 - Previously called Lincoln Place, units reported include 44 new units to
be constructed.
3 - Project scope and cost expanded requiring inclusion in redevelopment
category.
4 - Redevelopment due to complete destruction by tornado.
5 - Property had 351 units before redevelopment, 76 of the units will be
redeveloped into 57 larger units and commercial / space improvements
will be made.
6 - Exterior renovation project not requiring the units to be vacant.
- --------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULE IX
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
SAME STORE SALES
FIRST QUARTER 2002 VERSUS FIRST QUARTER 2001
<Table>
<Caption>
MARCH 2002 QTD MARCH 2001 QTD
------------------------ ------------------------
SITES UNITS OWN REV EXP NOI REV EXP NOI
------ ------- ----- ------- ------- ------- ------- ------ -------
NORTHEAST
Washington 29 12,566 81.0% 28,940 8,506 20,434 27,828 8,081 19,747
Philadelphia 6 3,436 83.1% 9,085 3,135 5,949 8,803 3,242 5,561
Middlesex-Somerset-Hunterdon 5 1,960 64.5% 3,656 1,168 2,488 3,493 1,293 2,200
Baltimore 8 1,620 70.6% 2,952 808 2,144 2,888 893 1,996
Dutchess County 1 835 100.0% 2,212 782 1,430 2,292 846 1,446
Hartford 2 650 100.0% 1,764 460 1,304 1,761 377 1,384
Other Markets (6) 7 1,753 67.7% 2,488 921 1,567 2,431 807 1,624
------ ------- ----- ------- ------- ------- ------- ------ -------
58 22,820 79.4% 51,097 15,781 35,317 49,496 15,539 33,957
SOUTHEAST
Atlanta 26 6,772 76.0% 10,537 3,880 6,657 11,084 3,521 7,562
Norfolk-Virginia Beach-Newport News 12 3,346 82.7% 5,808 1,789 4,019 5,351 1,713 3,638
Nashville 11 3,750 73.4% 5,268 1,793 3,475 4,937 1,764 3,173
Raleigh-Durham-Chapel Hill 11 3,023 77.4% 4,541 1,496 3,044 4,594 1,392 3,202
Charlotte-Gastonia-Rock Hill 11 2,336 75.4% 2,759 1,267 1,491 2,929 1,196 1,732
Columbia 7 1,670 68.4% 2,065 785 1,280 2,079 730 1,349
Other Markets (21) 59 12,926 67.8% 14,342 5,077 9,265 14,505 5,071 9,434
------ ------- ----- ------- ------- ------- ------- ------ -------
137 33,823 73.0% 45,319 16,087 29,232 45,478 15,388 30,090
FLORIDA
Tampa-St. Petersburg-Clearwater 22 5,933 79.1% 8,517 3,607 4,910 8,481 3,082 5,399
Orlando 18 5,164 77.9% 7,736 2,995 4,741 7,728 2,689 5,038
Miami 8 2,839 80.3% 6,776 2,377 4,398 6,616 2,305 4,311
West Palm Beach-Boca Raton 6 1,727 100.0% 4,178 1,485 2,694 3,976 1,401 2,576
Jacksonville 7 2,718 77.0% 4,157 1,589 2,568 3,912 1,525 2,387
Fort Lauderdale 6 1,658 88.1% 3,553 1,336 2,218 3,447 1,171 2,277
Other Markets (7) 22 4,908 81.9% 8,115 2,776 5,338 7,839 2,527 5,312
------ ------- ----- ------- ------- ------- ------- ------ -------
89 24,947 81.4% 43,032 16,166 26,866 42,000 14,700 27,299
MIDWEST
Chicago 20 5,975 88.1% 15,805 5,469 10,336 16,012 5,871 10,140
Indianapolis 29 9,122 77.9% 11,753 4,736 7,016 11,821 4,509 7,311
Grand Rapids-Muskegon-Holland 4 2,656 100.0% 4,857 1,866 2,992 4,751 1,873 2,878
Fort Wayne 3 2,345 96.7% 4,297 1,405 2,892 3,885 1,380 2,505
Lansing-East Lansing 9 2,118 82.6% 3,732 1,222 2,510 3,518 1,203 2,315
Cincinnati 9 2,173 83.2% 3,650 1,351 2,299 3,805 1,507 2,298
Columbus 9 2,080 64.5% 2,476 838 1,637 2,333 851 1,482
Other Markets (24) 54 13,347 59.4% 14,157 5,667 8,490 14,470 5,870 8,600
------ ------- ----- ------- ------- ------- ------- ------ -------
137 39,816 75.6% 60,727 22,555 38,172 60,594 23,065 37,529
TEXAS
Houston 36 9,654 89.2% 15,158 6,253 8,906 14,437 6,306 8,131
Dallas 21 5,700 66.6% 7,173 3,286 3,887 7,249 2,727 4,522
San Antonio 15 3,384 100.0% 5,019 2,188 2,831 4,838 2,239 2,598
Fort Worth-Arlington 11 2,270 78.4% 3,092 1,424 1,668 3,060 1,346 1,714
Austin-San Marcos 9 1,746 83.8% 2,779 1,204 1,576 3,084 1,030 2,054
Galveston-Texas City 6 1,176 100.0% 2,135 898 1,237 2,086 1,005 1,081
Other Markets (10) 22 4,969 77.2% 5,341 2,334 3,007 5,185 2,323 2,862
------ ------- ----- ------- ------- ------- ------- ------ -------
120 28,899 83.2% 40,698 17,587 23,111 39,938 16,977 22,961
WEST
Phoenix-Mesa 32 8,089 90.5% 12,950 4,733 8,217 13,235 4,567 8,667
Denver 10 2,603 70.8% 4,345 1,056 3,289 4,654 1,150 3,504
Salt Lake City-Ogden 6 2,115 74.3% 2,935 839 2,096 2,845 842 2,004
Tucson 6 1,866 100.0% 2,884 1,086 1,799 2,922 1,123 1,798
Las Vegas 4 1,253 86.0% 1,851 666 1,185 1,802 634 1,168
Other Markets (9) 24 4,324 70.2% 6,343 1,795 4,548 6,480 1,909 4,571
------ ------- ----- ------- ------- ------- ------- ------ -------
82 20,250 82.5% 31,307 10,174 21,134 31,938 10,226 21,712
CALIFORNIA
San Diego 6 1,737 89.2% 4,304 1,161 3,143 4,027 1,072 2,955
Los Angeles-Long Beach 4 1,683 57.2% 3,546 886 2,660 3,431 868 2,562
Riverside-San Bernardino 7 1,154 93.7% 2,032 768 1,264 1,888 627 1,261
Orange County 2 824 90.7% 2,083 505 1,578 2,003 466 1,538
Other Markets (3) 7 1,841 50.4% 3,040 793 2,247 3,204 667 2,537
------ ------- ----- ------- ------- ------- ------- ------ -------
26 7,239 72.8% 15,005 4,113 10,892 14,553 3,700 10,853
------ ------- ----- ------- ------- ------- ------- ------ -------
SAME STORE SALES (120) 649 177,794 78.3% 287,185 102,463 184,722 283,997 99,596 184,402
====== ======= ===== ======= ======= ======= ======= ====== =======
<Caption>
CHANGE: MARCH 2002 QTD LESS MARCH 2001 QTD
-------------------------------------------------------------
REV EXP NOI
----------------- ----------------- -----------------
AMOUNT PCT AMOUNT PCT AMOUNT PCT
------ ------ ------ ------ ------ ------
NORTHEAST
Washington 1,112 4.0% 425 5.3% 687 3.5%
Philadelphia 281 3.2% (107) -3.3% 388 7.0%
Middlesex-Somerset-Hunterdon 164 4.7% (125) -9.6% 288 13.1%
Baltimore 64 2.2% (84) -9.5% 149 7.4%
Dutchess County (80) -3.5% (64) -7.5% (16) -1.1%
Hartford 3 0.2% 83 22.0% (80) -5.8%
Other Markets (6) 57 2.3% 113 14.1% (56) -3.5%
------ ------ ------ ------ ------ ------
1,601 3.2% 241 1.6% 1,360 4.0%
SOUTHEAST
Atlanta (546) -4.9% 359 10.2% (905) -12.0%
Norfolk-Virginia Beach-Newport News 457 8.5% 75 4.4% 381 10.5%
Nashville 331 6.7% 29 1.6% 302 9.5%
Raleigh-Durham-Chapel Hill (53) -1.2% 105 7.5% (158) -4.9%
Charlotte-Gastonia-Rock Hill (170) -5.8% 71 5.9% (241) -13.9%
Columbia (15) -0.7% 54 7.4% (69) -5.1%
Other Markets (21) (163) -1.1% 7 0.1% (169) -1.8%
------ ------ ------ ------ ------ ------
(159) -0.3% 700 4.5% (859) -2.9%
FLORIDA
Tampa-St. Petersburg-Clearwater 36 0.4% 525 17.0% (490) -9.1%
Orlando 8 0.1% 306 11.4% (298) -5.9%
Miami 160 2.4% 72 3.1% 87 2.0%
West Palm Beach-Boca Raton 202 5.1% 84 6.0% 118 4.6%
Jacksonville 245 6.3% 64 4.2% 181 7.6%
Fort Lauderdale 106 3.1% 165 14.1% (59) -2.6%
Other Markets (7) 276 3.5% 249 9.9% 27 0.5%
------ ------ ------ ------ ------ ------
1,032 2.5% 1,465 10.0% (433) -1.6%
MIDWEST
Chicago (207) -1.3% (402) -6.9% 196 1.9%
Indianapolis (68) -0.6% 227 5.0% (295) -4.0%
Grand Rapids-Muskegon-Holland 106 2.2% (8) -0.4% 114 3.9%
Fort Wayne 412 10.6% 25 1.8% 387 15.4%
Lansing-East Lansing 214 6.1% 19 1.6% 195 8.4%
Cincinnati (155) -4.1% (156) -10.4% 1 0.0%
Columbus 143 6.1% (12) -1.4% 155 10.5%
Other Markets (24) (313) -2.2% (203) -3.5% (109) -1.3%
------ ------ ------ ------ ------ ------
132 -1.5% (511) -2.4% 643 -0.9%
TEXAS
Houston 722 5.0% (54) -0.8% 775 9.5%
Dallas (76) -1.0% 559 20.5% (635) -14.0%
San Antonio 181 3.7% (51) -2.3% 232 8.9%
Fort Worth-Arlington 32 1.0% 78 5.8% (46) -2.7%
Austin-San Marcos (304) -9.9% 174 16.9% (478) -23.3%
Galveston-Texas City 49 2.4% (107) -10.7% 157 14.5%
Other Markets (10) 156 3.0% 11 0.5% 145 5.1%
------ ------ ------ ------ ------ ------
760 1.9% 610 3.6% 149 0.7%
WEST
Phoenix-Mesa (285) -2.2% 165 3.6% (450) -5.2%
Denver (309) -6.6% (95) -8.3% (214) -6.1%
Salt Lake City-Ogden 89 3.1% (3) -0.3% 92 4.6%
Tucson (37) -1.3% (38) -3.4% 0 0.0%
Las Vegas 49 2.7% 32 5.1% 17 1.4%
Other Markets (9) (137) -2.1% (114) -6.0% (23) -0.5%
------ ------ ------ ------ ------ ------
(630) -2.0% (52) -0.5% (578) -2.7%
CALIFORNIA
San Diego 277 6.9% 88 8.2% 189 6.4%
Los Angeles-Long Beach 115 3.3% 18 2.0% 98 3.8%
Riverside-San Bernardino 144 7.6% 141 22.4% 3 0.3%
Orange County 79 4.0% 40 8.5% 40 2.6%
Other Markets (3) (164) -5.1% 126 18.9% (290) -11.4%
------ ------ ------ ------ ------ ------
452 3.1% 413 11.2% 39 0.4%
------ ------ ------ ------ ------ ------
SAME STORE SALES (120) 3,188 1.1% 2,867 2.9% 321 0.2%
====== ====== ====== ====== ====== ======
</Table>
Note: Capitalized costs are included in both periods presented (Q1 2002 and Q1
2001). Had these costs not been included in either period, same store results
would have remained unchanged at 0.2% NOI growth.
SUPPLEMENTAL SCHEDULE X
- --------------------------------------------------------------------------------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
2ND QUARTER AND 2002 OUTLOOK SUMMARY
(IN MILLIONS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<Table>
<Caption>
SECOND QUARTER YEAR
2002 2002
-------------- ----
FFO $1.25 - $1.30 $5.15 - $5.33
AFFO $1.06 - $1.12 $4.40 - $4.61
Operating Earnings Per Share $0.48 - $0.54 $2.10 - $2.35
Earnings Per Share (GAAP) $0.35 - $0.41 $1.72 - $1.97
Same Store Sales
</Table>
Assuming current economic conditions,
Same Store Sales NOI growth should be
consistent with first quarter results
and in the range of 0% to 1%.
<Table>
Investment Management
Property Management $7 - $9 $28 - $34
Activity Based Fees $1 - $3 $6.5 - $11
Interest Income
Transactional Income $1 - $4 $14 - $19
GP Loans and Other $7 - $8 $30 - $32
General and Administrative Expenses $4 $18
Capital Replacements (per unit) $110 - $115 $440 - $460
Redevelopment FCF contribution $0.5 $5 - $6
Acquisitions (Gross Real Estate Value) $200
Dispositions (Aimco Share) $500 - $600
Refinancing (Aimco Share) $600 - $700
Tenders (Equity $) $70 - $90
Q1 '02 Ending Fully Diluted Share Count (FFO) 108.69
</Table>
- --------------------------------------------------------------------------------