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EXHIBIT 99.5
Independent Auditors' Report
Board of Directors
Apartment Investment and Management Company
We have audited the accompanying Historical Summary of Gross Income and Direct
Operating Expenses of Sun Lake Apartments, as described in Note 1 for the years
ended December 31, 1997, 1996, and 1995. This Historical Summary is the
responsibility of the management of Sun Lake Apartments. Our responsibility is
to express an opinion on this Historical Summary based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the Historical Summary is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the 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 Historical
Summary. We believe that our audits provide a reasonable basis for our opinion.
The 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
Sun Lake Apartments.
In our opinion, the Historical Summary referred to above presents fairly, in all
material respects, the gross income and direct operating expenses of the Sun
Lake Apartments, as described in Note 1, for the years ended December 31, 1997,
1996, and 1995 in conformity with generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Indianapolis, Indiana
March 27, 1998, except for Note 1, as to
which the date is September 24, 1998
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Sun Lake Apartments
Historical Summary of
Gross Income and Direct Operating Expenses
NINE MONTHS YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995
----------------- ---------------- ---------------- ----------------
Gross Income
Net rental income $ 562,101 $ 705,330 $ 690,496 $ 673,785
Other income 10,733 18,284 12,451 10,828
----------------- ---------------- ---------------- ----------------
Total gross income 572,834 723,614 702,947 684,613
Direct Operating Expenses
Property Administration 120,040 181,463 226,307 192,503
Management fees 22,767 35,741 34,691 34,088
Utilities 46,512 53,569 26,053 30,484
Taxes and Insurance 54,304 74,820 79,230 69,984
----------------- ---------------- ---------------- ----------------
Total direct operating expenses 243,623 345,593 366,281 327,059
----------------- ---------------- ---------------- ----------------
Excess of gross income over direct operating expenses $ 329,211 $ 378,021 $ 336,666 $ 357,554
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See accompanying notes
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Sun Lake Apartments
Notes to Historical Summary of Gross Income
and Direct Operating Expenses
Years Ended December 31, 1997, 1996, and 1995
Nine Months Ended September 30, 1998 (unaudited)
1. ORGANIZATION AND BASIS OF PRESENTATION
Sun Lake Apartments is an 88 unit garden-style community located in Brandon,
Florida.
On September 24, 1998, AIMCO Properties, L.P., a majority-owned subsidiary of
Apartment Investment and Management Company, a publicly traded real estate
investment trust, acquired Sun Lake Apartments.
The accompanying 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 Historical Summary is not intended to be a complete presentation
of income and expenses of Sun Lake Apartments, 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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Sun Lake Apartments
Notes to Historical Summary of Gross Income
and Direct Operating Expenses (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of the Historical Summary in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts included in the Historical Summary and accompanying
notes thereto. Actual results could differ from those estimates.
REVENUE RECOGNITION
Rental income for occupied units is recorded as earned based on the amount
reflected in the lease.
INTERIM UNAUDITED FINANCIAL INFORMATION
The accompanying interim unaudited 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 Historical Summary for the year ended December
31, 1997. In the opinion of management of Sun Lake Apartments, all material
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 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
Property Asset Management, LLC (PAM), an affiliate of the Managing General
Partner, provides property management services to Sun Lake Apartments and
receives a fee of 4% of gross property revenue.
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