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Table of Contents
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Page |
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3 |
Earnings Release |
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8 |
Consolidated Statements of Operations |
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9 |
Consolidated Balance Sheets |
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10 |
Schedule 1 – EBITDAre and Adjusted EBITDAre |
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11 |
Schedule 2 – Aimco Leverage and Maturities |
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12 |
Schedule 3 – Aimco Portfolio |
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13 |
Schedule 4 – Aimco Capital Additions |
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14 |
Schedule 5 – Aimco Development and Redevelopment Project Summaries |
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15 |
Schedule 6 – Stabilized Operating Properties |
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16 |
Schedule 7 – Acquisitions, Dispositions, and Leased Communities |
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17 |
Glossary and Reconciliations of Non-GAAP Financial and Operating Measures |
Aimco Reports Third Quarter 2021 Results
Denver, Colorado, November 9, 2021 – Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today third quarter results for 2021.
Wes Powell, Aimco President and Chief Executive Officer, comments: “The Aimco team is executing well across our various lines of business. Development and Redevelopment projects currently in lease-up are tracking ahead of plan, especially in South Florida where demand for luxury apartment homes continues to far outpace expectations. Despite supply chain pressures and rising costs, Aimco projects which are under construction remain on-time and on-budget thanks to our disciplined process and proactive management. All the while, the Aimco investment pipeline continues to expand and top-line growth within our stabilized operating portfolio is accelerating. These solid results are a testament to the Aimco platform.”
Financial Results and Recent Highlights
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|
• |
Net loss attributable to common stockholders per share, on a dilutive basis, was $(0.03) for the quarter ended September 30, 2021, compared to net income per share of $0.01 for the same period in 2020, due primarily to differences from the carve-out of Aimco predecessor prior year expenses. |
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• |
Aimco Total Shareholder Return was 43.6% year-to-date through October 2021. |
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• |
Strong demand for Aimco’s Development and Redevelopment projects resulted in the execution of approximately 150 net new leases during the period, at rental rates ahead of target, and contributed $3.2 million in revenue during the period, up nearly 30% from the second quarter. |
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• |
Aimco has re-opened Flamingo Point’s North Tower, welcoming new residents to the fully renovated waterfront community during the third quarter as planned. |
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• |
Aimco acquired, for $40 million, a collection of 58 luxury townhomes in Elmhurst, Illinois, and benefits from the community’s adjacency to an existing Aimco asset. |
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• |
Aimco closed $60 million of property financing and ended the third quarter with $413 million of liquidity, including cash and capacity on its revolving credit facility. |
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|
• |
Revenue from Aimco’s Operating Properties was up 3.8% from the second quarter and 6.9% year-over-year, with occupancy of 97.8%, up 280 basis points year-over-year. |
Value Add, Opportunistic & Alternative Investments:
Development and Redevelopment
Aimco generally seeks development and redevelopment opportunities where barriers to entry are high, target customers can be clearly defined, and where Aimco has a comparative advantage over others in the market. Aimco’s Value Add and Opportunistic investments may also target portfolio acquisitions, operational turnarounds, and re-entitlements.
In the third quarter, Aimco had eight active development and redevelopment projects located in five different markets across the United States. These projects remain on track, as evidenced by project-level budget and schedule, lease-up metrics, and current market valuations. In the third quarter, Aimco invested approximately $42 million at these projects and expects to invest another $374 million at properties currently in development and redevelopment.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 3
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• |
At the North Tower of Flamingo Point in Miami Beach, Florida, the delivery and occupancy of apartment homes began in the third quarter as planned. Demand has been strong with the property more than 50% leased or preleased, six months prior to final completion, at rental rates approximately 25% ahead of underwriting. |
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|
• |
At 707 Leahy in Redwood City, California, stabilized occupancy was achieved during the third quarter slightly earlier than planned, with the property 97% leased on September 30, 2021, at rates meeting underwritten expectations. |
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• |
At Prism in Cambridge, Massachusetts, construction was completed during the first quarter of 2021 and on September 30, 2021, the property was 88% occupied at rents trending in line with our underwritten targets. |
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• |
Construction continues on schedule and on budget at The Benson Hotel and Faculty Club in Aurora, Colorado, Hamilton on the Bay in Miami, Florida and Oak Shore (fka. Robin Drive Land) in Corte Madera, California. |
Alternative Investments
Aimco uses alternative investment strategies when it has special knowledge or expertise relevant to the venture and when opportunity exists for positive asymmetric outcomes. Aimco’s current investments include a mezzanine loan with an option to participate in future development and two passive equity investments.
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• |
In the third quarter, Aimco funded a capital call of $12.1 million associated with the previously announced $50 million total passive equity commitment to the life sciences developer, IQHQ, bringing our total investment to $24.6 million. |
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|
• |
The outstanding balance on Aimco’s mezzanine loan to the partnership that owns Parkmerced Apartments was $330 million, including accrued interest, at the end of the third quarter. Property operations remain consistent with previous reports. |
Investment Activity
Aimco expects to have a broad set of investment opportunities including, but not limited to, development, redevelopment, portfolio acquisitions, programmatic joint ventures, debt placements, operational turnarounds, and re-entitlements. During the third quarter:
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• |
Aimco acquired, for $40 million, Eldridge Townhomes, a 58-unit townhome community located in Elmhurst, Illinois that Aimco developed between 2018 and 2020. As of September 30, 2021, the property was 98% occupied with average rents of greater than $4,000 per month. The Eldridge Townhomes are located adjacent to an existing 400-unit Aimco community and the acquisition provides for continued operational efficiencies and improved NOI margins. Aimco plans to hold the Eldridge Townhomes within its portfolio of stabilized operating properties. |
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• |
Aimco acquired two properties adjacent to its Hamilton on the Bay apartment community in Miami’s Edgewater neighborhood, for $7 million. Combined with the six properties purchased in the second quarter and land purchased as part of the initial acquisition of Hamilton on the Bay, Aimco can, in total, now construct more than 1.1M square feet of new development in this rapidly growing submarket. |
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• |
Aimco entered into a joint venture with Kushner Companies to purchase three undeveloped land parcels located in downtown Fort Lauderdale, Florida. The total contract price for the land is $49 million ($25 million at Aimco’s 51% share), and current zoning allows for the development of approximately three million square feet of multifamily homes and commercial space. The land purchase is expected to close in January 2022. |
Third Quarter 2021 Earnings Release and Supplemental Schedules | 4
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• |
Aimco purchased seven acres of developable land in Colorado Springs, Colorado with a contract price of $4 million that allows for the construction of 119 apartment homes and townhomes. |
Operating Property Results
Aimco’s Operating Portfolio produced solid results for the quarter ended September 30, 2021, showing continued improvement as our business recovers from the pandemic related impacts of 2020.
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Third Quarter |
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Year-to-Date |
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Year-over-Year |
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Sequential |
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Year-over-Year |
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($ in millions) |
2021 |
|
|
2020 |
|
|
Variance |
|
|
2Q 2021 |
|
|
Variance |
|
|
2021 |
|
|
2020 |
|
|
Variance |
|
||||||||
|
Average Daily Occupancy |
|
97.8 |
% |
|
|
95.0 |
% |
|
|
2.8 |
% |
|
|
97.3 |
% |
|
|
0.5 |
% |
|
|
97.6 |
% |
|
|
96.2 |
% |
|
|
1.4 |
% |
|
Revenue, before utility reimbursements |
$ |
34.6 |
|
|
$ |
32.4 |
|
|
|
6.9 |
% |
|
$ |
33.3 |
|
|
|
3.8 |
% |
|
$ |
100.6 |
|
|
$ |
98.3 |
|
|
|
2.3 |
% |
|
Expenses, net of utility reimbursements [1] |
|
11.2 |
|
|
|
10.2 |
|
|
|
10.6 |
% |
|
|
11.0 |
|
|
|
2.7 |
% |
|
|
33.4 |
|
|
|
31.1 |
|
|
|
7.4 |
% |
|
Net operating income (NOI)[2] |
|
23.3 |
|
|
|
22.2 |
|
|
|
5.1 |
% |
|
|
22.4 |
|
|
|
4.3 |
% |
|
|
67.2 |
|
|
|
67.2 |
|
|
|
— |
|
*Excluded from the table above is one, 40-unit apartment community that Aimco’s ownership includes a partnership share.
[1] The year over year increase in expenses, net of utility reimbursements is due primarily to higher real estate taxes and insurance.
[2] See “Glossary and Reconciliations of Non-GAAP Financial and Operating Measures” for a reconciliation of this measure.
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• |
In the third quarter, Aimco collected 98.2% of all amounts owed by residents and recognized 99.2% of contractual revenue, reserving 80 basis points as bad debt. |
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• |
1001 Brickell Bay Drive, a waterfront office building in Miami, Florida, is owned as part of a larger assemblage containing substantial excess development rights. At the end of the third quarter, the building was 73% occupied, and as of October 31, 2021, the building was 80% leased with additional leases being negotiated. Through October 31, 2021, 99% of third quarter rents due have been collected. |
Balance Sheet and Financing Activity
Aimco is highly focused on maintaining ample liquidity. As of September 30, 2021, Aimco had access to $413 million, including $253 million of cash on hand, $10 million of restricted cash, and the capacity to borrow up to $150 million on our revolving credit facility.
Aimco’s net leverage as of September 30, 2021 was as follows:
|
|
|
as of September 30, 2021 |
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|||||
|
Proportionate, $ in thousands |
|
Amount |
|
|
Weighted Avg. Maturity (Yrs.) |
|
||
|
Total non-recourse property debt |
|
$ |
493,958 |
|
|
|
5.7 |
|
|
Total non-recourse construction loan debt |
|
|
142,974 |
|
|
|
2.6 |
|
|
Notes payable to AIR |
|
|
534,127 |
|
|
|
2.3 |
|
|
Cash and restricted cash |
|
|
(262,760 |
) |
|
|
|
|
|
Net Leverage |
|
$ |
908,299 |
|
|
|
|
|
|
|
• |
In the third quarter, Aimco closed two non-recourse property loans with proceeds of $60 million. The loans have 10-year terms and a weighted average fixed interest rate of 3.09%. Proceeds from the loans were used to fund the acquisition of Eldridge Townhomes and other investment activity. |
Third Quarter 2021 Earnings Release and Supplemental Schedules | 5
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Dividend
Aimco plans to reinvest earnings to facilitate growth and, therefore, does not presently intend to pay a regular cash dividend.
Supplemental Information
The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco’s website at investors.aimco.com.
Glossary & Reconciliations of Non-GAAP Financial and Operating Measures
Financial and operating measures found in this Earnings Release and the Supplemental Information include certain financial measures used by Aimco management that are measures not defined under accounting principles generally accepted in the United States, or GAAP. Certain Aimco terms and Non-GAAP measures are defined in the Glossary in the Supplemental Information and Non-GAAP measures reconciled to the most comparable GAAP measures.
About Aimco
Aimco is a diversified real estate company primarily focused on value add, opportunistic, and alternative investments, targeting the U.S. multifamily sector. Aimco’s mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV. For more information about Aimco, please visit our website www.aimco.com.
Team and Culture
Aimco has a national presence with corporate headquarters in Denver, Colorado, and Bethesda, Maryland. Our investment platform is managed by experienced real estate professionals based in four regions of the United States: West Coast, Central and Mountain West, Mid-Atlantic and Northeast, and Southeast. The experience and in-depth local market knowledge of the Aimco team is essential to the execution of our mission and realization of our vision.
Above all else, Aimco is committed to a culture of integrity, respect, and collaboration.
Contact
Matt Foster, Director, Capital Markets and Investor Relations
Investor Relations 303-793-4661, investor@aimco.com
Third Quarter 2021 Earnings Release and Supplemental Schedules | 6
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Forward-Looking Statements
This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations. We caution investors not to place undue reliance on any such forward-looking statements.
Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained.
Readers should carefully review Aimco’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Aimco’s Annual Report on Form 10-K for the year ended December 31, 2020, and subsequent Quarterly Reports on Form 10-Q and other documents Aimco files from time to time with the SEC. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
These forward-looking statements reflect management’s judgment as of this date, and Aimco assumes no (and disclaims any) obligation to revise or update them to reflect future events or circumstances.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 7
|
|
Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
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|
|
2021 |
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2020 |
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2021 |
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|
2020 |
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||||
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental and other property revenues |
|
$ |
42,893 |
|
|
$ |
37,328 |
|
|
$ |
123,115 |
|
|
$ |
112,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
|
18,155 |
|
|
|
15,151 |
|
|
|
51,500 |
|
|
|
45,822 |
|
|
Depreciation and amortization |
|
|
21,709 |
|
|
|
19,296 |
|
|
|
63,065 |
|
|
|
57,673 |
|
|
General and administrative expenses [1] |
|
|
8,868 |
|
|
|
1,552 |
|
|
|
22,562 |
|
|
|
4,939 |
|
|
Total operating expenses |
|
|
48,732 |
|
|
|
35,999 |
|
|
|
137,127 |
|
|
|
108,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(12,680 |
) |
|
|
(7,103 |
) |
|
|
(37,995 |
) |
|
|
(18,563 |
) |
|
Mezzanine investment income, net |
|
|
7,636 |
|
|
|
6,870 |
|
|
|
22,654 |
|
|
|
20,553 |
|
|
Unrealized gains (losses) on interest rate options [2] |
|
|
2,231 |
|
|
|
(998 |
) |
|
|
10,608 |
|
|
|
(2,078 |
) |
|
Other expenses, net |
|
|
1,785 |
|
|
|
(775 |
) |
|
|
5,066 |
|
|
|
(1,344 |
) |
|
(Loss) income before income taxes |
|
|
(6,867 |
) |
|
|
(677 |
) |
|
|
(13,679 |
) |
|
|
2,936 |
|
|
Income tax benefit (expense) |
|
|
2,021 |
|
|
|
2,673 |
|
|
|
9,881 |
|
|
|
6,728 |
|
|
Net (loss) income |
|
|
(4,846 |
) |
|
|
1,996 |
|
|
|
(3,798 |
) |
|
|
9,664 |
|
|
Net income attributable to redeemable noncontrolling interests in consolidated real estate partnership |
|
|
(127 |
) |
|
|
121 |
|
|
|
(41 |
) |
|
|
349 |
|
|
Net loss (income) attributable to noncontrolling interests in consolidated real estate partnership |
|
|
(296 |
) |
|
|
1 |
|
|
|
(862 |
) |
|
|
(4 |
) |
|
Net loss (income) attributable to common noncontrolling interests in Aimco Operating Partnership |
|
|
253 |
|
|
|
(107 |
) |
|
|
209 |
|
|
|
(507 |
) |
|
Net (loss) income attributable to Aimco common stockholders |
|
$ |
(5,016 |
) |
|
$ |
2,011 |
|
|
$ |
(4,492 |
) |
|
$ |
9,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to common stockholders per share – basic |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
(0.03 |
) |
|
$ |
0.06 |
|
|
Net (loss) income attributable to common stockholders per share – diluted |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
(0.03 |
) |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding – basic |
|
|
149,762 |
|
|
|
148,549 |
|
|
|
149,517 |
|
|
|
148,549 |
|
|
Weighted-average common shares outstanding – diluted |
|
|
149,762 |
|
|
|
148,569 |
|
|
|
149,517 |
|
|
|
148,569 |
|
[1] General and administrative expense in the three and nine months ended September 30, 2020 are represented as a carve-out of Aimco predecessor expenses and are not representative of Aimco’s anticipated expenses.
[2] Unrealized gains (losses) on interest rate options are primarily the quarterly market-to-market adjustment required to mark to fair value Aimco’s interest rate options.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 8
|
|
Consolidated Balance Sheets
(in thousands) (unaudited)
|
|
|
September 30, |
|
|
December 31, |
|
||
|
|
|
2021 |
|
|
2020 |
|
||
|
Assets |
|
|
|
|
|
|
|
|
|
Buildings and improvements |
|
$ |
1,202,279 |
|
|
$ |
995,116 |
|
|
Land |
|
|
534,092 |
|
|
|
505,153 |
|
|
Total real estate |
|
|
1,736,371 |
|
|
|
1,500,269 |
|
|
Accumulated depreciation |
|
|
(545,499 |
) |
|
|
(495,010 |
) |
|
Net real estate |
|
|
1,190,872 |
|
|
|
1,005,259 |
|
|
Cash and cash equivalents |
|
|
253,138 |
|
|
|
289,582 |
|
|
Restricted cash |
|
|
9,623 |
|
|
|
9,153 |
|
|
Mezzanine investments |
|
|
330,016 |
|
|
|
307,362 |
|
|
Right-of-use lease assets |
|
|
439,229 |
|
|
|
98,280 |
|
|
Other assets, net |
|
|
171,317 |
|
|
|
130,856 |
|
|
Total assets |
|
$ |
2,394,195 |
|
|
$ |
1,840,492 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
Non-recourse property debt, net |
|
$ |
485,116 |
|
|
$ |
447,967 |
|
|
Construction loans, net |
|
|
138,439 |
|
|
|
— |
|
|
Notes payable to AIR |
|
|
534,127 |
|
|
|
534,127 |
|
|
Total indebtedness |
|
|
1,157,682 |
|
|
|
982,094 |
|
|
Deferred tax liabilities |
|
|
126,851 |
|
|
|
131,560 |
|
|
Lease liabilities |
|
|
448,886 |
|
|
|
100,496 |
|
|
Accrued liabilities and other |
|
|
95,943 |
|
|
|
62,988 |
|
|
Total liabilities |
|
|
1,829,362 |
|
|
|
1,277,138 |
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests in consolidated real estate partnership |
|
|
4,304 |
|
|
|
4,263 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
1,498 |
|
|
|
1,490 |
|
|
Additional paid-in capital |
|
|
518,913 |
|
|
|
515,127 |
|
|
Retained earnings (accumulated deficit) |
|
|
(21,377 |
) |
|
|
(16,839 |
) |
|
Total Aimco equity |
|
|
499,034 |
|
|
|
499,778 |
|
|
Noncontrolling interests in consolidated real estate partnerships |
|
|
35,014 |
|
|
|
31,877 |
|
|
Common noncontrolling interests in Aimco Operating Partnership |
|
|
26,481 |
|
|
|
27,436 |
|
|
Total equity |
|
|
560,529 |
|
|
|
559,091 |
|
|
Total liabilities and equity |
|
$ |
2,394,195 |
|
|
$ |
1,840,492 |
|
Third Quarter 2021 Earnings Release and Supplemental Schedules | 9
|
|
Supplemental Schedule 1
EBITDAre and Adjusted EBITDAre
(in thousands) (unaudited)
|
|
Three Months Ended September 30, 2021 |
|
|
|
Net Income |
$ |
(4,846 |
) |
|
Adjustments: |
|
|
|
|
Interest expense |
|
12,680 |
|
|
Income tax benefit |
|
(2,021 |
) |
|
Depreciation and amortization |
|
21,709 |
|
|
Adjustment related to EBITDAre of unconsolidated partnerships |
|
225 |
|
|
EBITDAre |
$ |
27,747 |
|
|
Net Income attributable to redeemable noncontrolling Interests consolidated real estate partnership |
|
(127 |
) |
|
Net Income attributable to noncontrolling Interests consolidated real estate partnership |
|
(296 |
) |
|
EBITDAre adjustments attributable to noncontrolling interests |
|
177 |
|
|
Mezzanine investment income, net accrued |
|
(7,636 |
) |
|
Unrealized losses on interest rate options |
|
(2,231 |
) |
|
Adjusted EBITDAre [1] |
$ |
17,635 |
|
|
Annualized Adjusted EBITDAre |
$ |
70,540 |
|
[1] Adjusted EBITDAre is reduced from the three months ended June 30, 2021 due primarily to lower transaction revenue in the third quarter.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 10
|
|
Supplemental Schedule 2
Aimco Leverage and Maturities
(dollars in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Debt |
|
Consolidated |
|
|
Aimco Share of Unconsolidated Partnerships |
|
|
Noncontrolling Interests |
|
|
Total Aimco Share |
|
|
Weighted Average Maturity (Years) |
|
|
Weighted Average Stated Interest Rate |
|
||||||
|
Fixed rate loans payable |
|
$ |
433,576 |
|
|
$ |
5,557 |
|
|
$ |
(175 |
) |
|
$ |
438,958 |
|
|
|
6.1 |
|
|
|
3.32 |
% |
|
Floating rate loans payable |
|
|
55,000 |
|
|
|
— |
|
|
|
— |
|
|
|
55,000 |
|
|
|
2.3 |
|
|
|
1.28 |
% |
|
Total non-recourse property debt [1] |
|
$ |
488,576 |
|
|
$ |
5,557 |
|
|
$ |
(175 |
) |
|
$ |
493,958 |
|
|
|
5.7 |
|
|
|
3.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction loan debt [1] [2] |
|
|
143,741 |
|
|
|
— |
|
|
|
(767 |
) |
|
|
142,974 |
|
|
|
2.6 |
|
|
|
3.78 |
% |
|
Notes payable to AIR [3] |
|
|
534,127 |
|
|
|
— |
|
|
|
— |
|
|
|
534,127 |
|
|
|
2.3 |
|
|
|
5.20 |
% |
|
Cash and restricted cash |
|
|
(262,760 |
) |
|
|
— |
|
|
|
— |
|
|
|
(262,760 |
) |
|
|
|
|
|
|
|
|
|
Net Leverage |
|
$ |
903,684 |
|
|
$ |
5,557 |
|
|
$ |
(942 |
) |
|
$ |
908,299 |
|
|
|
|
|
|
|
|
|
Aimco Share Non-Recourse Property and Construction Loan Debt
|
|
|
Amortization |
|
|
Maturities |
|
|
Total |
|
|
Maturities as a Percent of Total |
|
|
Average Rate on Maturing Debt |
|
|||||
|
2021 Q4 |
|
$ |
2,262 |
|
|
$ |
— |
|
|
$ |
2,262 |
|
|
|
— |
% |
|
|
— |
% |
|
Total 2021 |
|
|
2,262 |
|
|
|
— |
|
|
|
2,262 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 Q1 |
|
|
2,288 |
|
|
|
— |
|
|
|
2,288 |
|
|
|
— |
|
|
|
— |
|
|
2022 Q2 |
|
|
2,296 |
|
|
|
— |
|
|
|
2,296 |
|
|
|
— |
|
|
|
— |
|
|
2022 Q3 |
|
|
2,316 |
|
|
|
— |
|
|
|
2,316 |
|
|
|
— |
|
|
|
— |
|
|
2022 Q4 |
|
|
2,343 |
|
|
|
— |
|
|
|
2,343 |
|
|
|
— |
|
|
|
— |
|
|
Total 2022 |
|
|
9,243 |
|
|
|
— |
|
|
|
9,243 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
9,576 |
|
|
|
55,000 |
|
|
|
64,576 |
|
|
|
8.64 |
% |
|
|
1.28 |
% |
|
2024 |
|
|
7,552 |
|
|
|
224,914 |
|
[4] |
|
232,466 |
|
|
|
35.31 |
% |
|
|
3.52 |
% |
|
2025 |
|
|
7,837 |
|
|
|
— |
|
|
|
7,837 |
|
|
|
— |
|
|
|
— |
|
|
2026 |
|
|
6,653 |
|
|
|
75,519 |
|
|
|
82,172 |
|
|
|
11.86 |
% |
|
|
3.10 |
% |
|
2027 |
|
|
4,482 |
|
|
|
89,518 |
|
|
|
94,000 |
|
|
|
14.05 |
% |
|
|
3.57 |
% |
|
2028 |
|
|
3,160 |
|
|
|
— |
|
|
|
3,160 |
|
|
|
— |
|
|
|
— |
|
|
2029 |
|
|
2,366 |
|
|
|
30,158 |
|
|
|
32,524 |
|
|
|
4.73 |
% |
|
|
4.08 |
% |
|
2030 |
|
|
2,370 |
|
|
|
— |
|
|
|
2,370 |
|
|
|
— |
|
|
|
— |
|
|
Thereafter |
|
|
1,814 |
|
|
|
104,508 |
|
|
|
106,322 |
|
|
|
16.41 |
% |
|
|
3.20 |
% |
|
Total Aimco Share |
|
$ |
57,315 |
|
|
$ |
579,617 |
|
|
$ |
636,932 |
|
|
|
|
|
|
|
|
|
[1] Consolidated total non-recourse property debt and construction loan debt excludes $8.9 million of deferred financing costs.
[2] Aimco’s construction loan debt consists of floating rate loans.
[3] The notes payable to AIR are fixed rate notes.
[4] Additionally, in January 2024 the term matures for the $534 million notes payable to AIR.
Common Stock, Partnership Units, and Equivalents
(in thousands) (unaudited)
|
|
September 30, 2021 |
|
|
|
Class A Common Stock Outstanding |
|
149,803 |
|
|
Participating unvested restricted stock |
|
1,896 |
|
|
Dilutive options, share equivalents, and non-participating unvested restricted stock |
|
537 |
|
|
Total shares and dilutive share equivalents |
|
152,236 |
|
|
Common Partnership Units and equivalents outstanding |
|
8,084 |
|
|
Total shares, units and dilutive share equivalents |
|
160,320 |
|
Third Quarter 2021 Earnings Release and Supplemental Schedules | 11
|
|
Supplemental Schedule 3
Aimco Portfolio
(unaudited)
|
|
|
Number of Properties |
|
|
Number of Apartment Homes [3] |
|
|
Aimco Share of Apartment Homes |
|
|||
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized Operating Properties |
|
|
24 |
|
|
|
6,067 |
|
|
|
6,038 |
|
|
Other Real Estate [1] |
|
|
2 |
|
|
|
58 |
|
|
|
58 |
|
|
Development and Redevelopment - Owned [2] |
|
|
4 |
|
|
|
991 |
|
|
|
913 |
|
|
Development and Redevelopment - Leased |
|
|
5 |
|
|
|
889 |
|
|
|
889 |
|
|
Total Consolidated |
|
|
35 |
|
|
|
8,005 |
|
|
|
7,898 |
|
|
Unconsolidated |
|
|
4 |
|
|
|
142 |
|
|
|
72 |
|
|
Total Portfolio |
|
|
39 |
|
|
|
8,147 |
|
|
|
7,970 |
|
[1] Other Real Estate includes 1001 Brickell Bay Drive, Aimco’s office building adjacent to Yacht Club Apartments in the Brickell neighborhood of Miami, Florida and Eldridge Townhomes, located adjacent to Elm Creek Apartments in Elmhurst, Illinois, which was acquired in 3Q 2021.
[2] Development and Redevelopment – Owned includes the three Aimco Owned properties listed on Supplemental Schedule 5 of this release and Flying Horse, developable land in Colorado Springs, Colorado that was acquired in 3Q 2021. The number of apartment homes includes 26 homes currently on the land assemblage adjacent to Hamilton on the Bay.
[3] Number of apartment homes includes all current apartments and those authorized for development, it does not include office, retail, or hotel units.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 12
|
|
Supplemental Schedule 4
Aimco Capital Additions
(consolidated amounts in thousands) (unaudited)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||
|
|
|
September 30, 2021 |
|
|
September 30, 2021 |
|
||
|
|
|
|
|
|
|
|
|
|
|
Capital Replacements and Casualty |
|
$ |
3,229 |
|
|
$ |
8,647 |
|
|
Property Upgrades |
|
|
660 |
|
|
|
1,248 |
|
|
Development and Redevelopment |
|
|
53,964 |
|
|
|
162,231 |
|
|
Total Capital Additions [1] [2] |
|
$ |
57,853 |
|
|
$ |
172,126 |
|
|
|
|
|
|
|
|
|
|
|
[1] Third quarter 2021 decreased from the second quarter due primarily to the bulk purchase of materials in 2Q 2021 to avoid a supply shortage.
[2] Third quarter 2021 total capital additions includes $42 million of Direct Capital Investment and certain other costs capitalized in accordance with GAAP.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 13
|
|
Supplemental Schedule 5
Aimco Development and Redevelopment Project Summaries
(dollars in millions) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Capital Investment |
|
|
|
|
|
|
|
|||||||||
|
|
|
Location |
|
Number of units approved for development or redevelopment |
|
|
Leased or Pre-Leased |
|
|
Leasehold Value |
|
|
Planned |
|
|
To-Date |
|
|
Remaining |
|
|
Expected Initial Occupancy [2] |
|
Expected Stabilized Occupancy [2] |
|
Expected NOI Stabilization [2][3] |
||||||||
|
Aimco Owned |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Benson Hotel and Faculty Club |
|
Aurora, CO |
|
|
106 |
|
|
|
— |
|
|
|
— |
|
|
$ |
70.0 |
|
|
$ |
24.3 |
|
|
$ |
45.7 |
|
|
1Q 2023 |
|
2Q 2025 |
|
4Q 2026 |
||
|
Upton Place [1] |
|
Washington, D.C. |
|
|
689 |
|
|
|
— |
|
|
|
— |
|
|
|
260.0 |
|
|
|
54.3 |
|
|
|
205.7 |
|
|
4Q 2023 |
|
4Q 2025 |
|
4Q 2026 |
||
|
Hamilton on the Bay |
|
Miami, FL |
|
|
276 |
|
|
|
— |
|
|
|
— |
|
|
|
92.4 |
|
|
|
33.9 |
|
|
|
58.5 |
|
|
2Q 2022 |
|
1Q 2023 |
|
3Q 2024 |
||
|
Subtotal |
|
|
|
|
|
|
1,071 |
|
|
|
|
|
|
$ |
— |
|
|
$ |
422.4 |
|
|
$ |
112.5 |
|
|
$ |
309.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased Properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flamingo Point North Tower |
|
Miami Beach, FL |
|
|
366 |
|
|
|
53 |
% |
|
$ |
240.0 |
|
|
$ |
63.5 |
|
|
$ |
45.0 |
|
|
$ |
18.5 |
|
|
3Q 2021 |
|
1Q 2023 |
|
1Q 2024 |
||
|
707 Leahy |
|
Redwood City, CA |
|
|
110 |
|
|
|
97 |
% |
|
|
79.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
1Q 2020 |
|
3Q 2021 |
|
1Q 2023 |
||
|
The Fremont |
|
Aurora, CO |
|
|
253 |
|
|
|
75 |
% |
|
|
89.0 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
|
2Q 2020 |
|
1Q 2023 |
|
1Q 2024 |
||
|
Prism |
|
Cambridge, MA |
|
|
136 |
|
|
|
88 |
% |
|
|
60.9 |
|
|
|
5.0 |
|
|
|
3.9 |
|
|
|
1.1 |
|
|
1Q 2021 |
|
1Q 2022 |
|
1Q 2023 |
||
|
Oak Shore |
|
Corte Madera, CA |
|
|
24 |
|
|
|
— |
|
|
|
6.1 |
|
|
|
47.1 |
|
|
|
2.7 |
|
|
|
44.4 |
|
|
3Q 2023 |
|
2Q 2024 |
|
2Q 2025 |
||
|
Subtotal |
|
|
|
|
|
|
889 |
|
|
|
|
|
|
$ |
475.1 |
|
|
$ |
115.8 |
|
|
$ |
51.9 |
|
|
$ |
63.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
1,960 |
|
|
|
|
|
|
$ |
475.1 |
|
|
$ |
538.2 |
|
|
$ |
164.4 |
|
|
$ |
373.8 |
|
|
|
|
|
|
|
|
Estimated Size of Portfolio in Active Development and Redevelopment [4] |
$ |
1,013.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
[1] Planned Direct Capital Investment for Upton Place at Aimco's 90% share is $234 million. |
||||||||||||||||||||||||||||||||||
|
[2] Delivery timing and stabilization is subject to change and is based on the best estimate at this time. |
||||||||||||||||||||||||||||||||||
|
[3] The weighted average expected stabilized NOI yield on valuation and planned Direct Capital Investment for the developments and redevelopments presented is 6.3%. |
||||||||||||||||||||||||||||||||||
|
[4] Estimated size of portfolio in active development and redevelopment represents the property valuation for leasehold and the planned Direct Capital Investment. |
||||||||||||||||||||||||||||||||||
Third Quarter 2021 Earnings Release and Supplemental Schedules | 14
|
|
Supplemental Schedule 6
Stabilized Operating Results
(amounts in thousands, except community, home and per home data) (unaudited)
|
3Q 2021 v. 3Q 2020 |
|
|
|
|
|
Revenues, Before Utility Reimbursements |
|
|
Expenses, Net of Utility Reimbursements |
|
|
Net Operating Income |
|
|
|
Net Operating Income Margin |
|
|
Average Daily Occupancy During Period |
|
|
Average Revenue per Aimco Apartment Home |
|
||||||||||||||||||||||||||||||||
|
|
Apartment Communities |
|
Apartment Homes |
|
|
3Q 2021 |
|
3Q 2020 |
|
Growth |
|
|
3Q 2021 |
|
3Q 2020 |
|
Growth |
|
|
3Q 2021 |
|
3Q 2020 |
|
Growth |
|
|
|
3Q 2021 |
|
|
3Q 2021 |
|
3Q 2020 |
|
|
3Q 2021 |
|
3Q 2020 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Central Region |
|
7 |
|
|
1,562 |
|
|
$ |
8,606 |
|
$ |
8,144 |
|
|
5.7 |
% |
|
$ |
3,145 |
|
$ |
2,566 |
|
|
22.6 |
% |
|
$ |
5,461 |
|
$ |
5,578 |
|
|
(2.1 |
%) |
|
|
63.5% |
|
|
97.1% |
|
93.5% |
|
|
$ |
1,891 |
|
$ |
1,860 |
|
|||
|
Northeast |
|
8 |
|
|
2,869 |
|
|
|
15,498 |
|
|
14,383 |
|
|
7.8 |
% |
|
|
4,929 |
|
|
4,728 |
|
|
4.3 |
% |
|
|
10,569 |
|
|
9,655 |
|
|
9.5 |
% |
|
|
68.2% |
|
|
98.2% |
|
96.0% |
|
|
|
1,834 |
|
|
1,740 |
|
|||
|
Southeast |
|
4 |
|
|
1,047 |
|
|
|
6,388 |
|
|
5,772 |
|
|
10.7 |
% |
|
|
2,111 |
|
|
1,886 |
|
|
11.9 |
% |
|
|
4,277 |
|
|
3,886 |
|
|
10.1 |
% |
|
|
67.0% |
|
|
98.3% |
|
94.5% |
|
|
|
2,069 |
|
|
1,945 |
|
|||
|
West Coast |
|
4 |
|
|
549 |
|
|
|
4,085 |
|
|
4,061 |
|
|
0.6 |
% |
|
|
1,059 |
|
|
988 |
|
|
7.2 |
% |
|
|
3,026 |
|
|
3,073 |
|
|
(1.5 |
%) |
|
|
74.1% |
|
|
96.9% |
|
95.2% |
|
|
|
2,559 |
|
|
2,591 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
23 |
|
|
6,027 |
|
|
$ |
34,577 |
|
$ |
32,360 |
|
|
6.9 |
% |
|
$ |
11,244 |
|
$ |
10,168 |
|
|
10.6 |
% |
|
$ |
23,333 |
|
$ |
22,192 |
|
|
5.1 |
% |
|
|
67.5% |
|
|
97.8% |
|
95.0% |
|
|
$ |
1,955 |
|
$ |
1,883 |
|
|||
|
3Q 2021 v. 2Q 2021 |
|
|
|
|
|
Revenues, Before Utility Reimbursements |
|
|
Expenses, Net of Utility Reimbursements |
|
|
Net Operating Income |
|
|
|
Net Operating Income Margin |
|
|
Average Daily Occupancy During Period |
|
|
Average Revenue per Aimco Apartment Home |
|
||||||||||||||||||||||||||||||||
|
|
Apartment Communities |
|
Apartment Homes |
|
|
3Q 2021 |
|
2Q 2021 |
|
Growth |
|
|
3Q 2021 |
|
2Q 2021 |
|
Growth |
|
|
3Q 2021 |
|
2Q 2021 |
|
Growth |
|
|
|
3Q 2021 |
|
|
3Q 2021 |
|
2Q 2021 |
|
|
3Q 2021 |
|
2Q 2021 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Central Region |
|
7 |
|
|
1,562 |
|
|
$ |
8,606 |
|
$ |
8,394 |
|
|
2.5 |
% |
|
$ |
3,145 |
|
$ |
2,913 |
|
|
8.0 |
% |
|
$ |
5,461 |
|
$ |
5,481 |
|
|
(0.4 |
%) |
|
|
63.5% |
|
|
97.1% |
|
97.2% |
|
|
$ |
1,891 |
|
$ |
1,843 |
|
|||
|
Northeast |
|
8 |
|
|
2,869 |
|
|
|
15,498 |
|
|
14,797 |
|
|
4.7 |
% |
|
|
4,929 |
|
|
4,835 |
|
|
1.9 |
% |
|
|
10,569 |
|
|
9,962 |
|
|
6.1 |
% |
|
|
68.2% |
|
|
98.2% |
|
97.6% |
|
|
|
1,834 |
|
|
1,762 |
|
|||
|
Southeast |
|
4 |
|
|
1,047 |
|
|
|
6,388 |
|
|
6,014 |
|
|
6.2 |
% |
|
|
2,111 |
|
|
2,086 |
|
|
1.2 |
% |
|
|
4,277 |
|
|
3,928 |
|
|
8.9 |
% |
|
|
67.0% |
|
|
98.3% |
|
97.8% |
|
|
|
2,069 |
|
|
1,958 |
|
|||
|
West Coast |
|
4 |
|
|
549 |
|
|
|
4,085 |
|
|
4,108 |
|
|
(0.6 |
%) |
|
|
1,059 |
|
|
1,116 |
|
|
(5.1 |
%) |
|
|
3,026 |
|
|
2,992 |
|
|
1.1 |
% |
|
|
74.1% |
|
|
96.9% |
|
95.0% |
|
|
|
2,559 |
|
|
2,624 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
23 |
|
|
6,027 |
|
|
$ |
34,577 |
|
$ |
33,313 |
|
|
3.8 |
% |
|
$ |
11,244 |
|
$ |
10,950 |
|
|
2.7 |
% |
|
$ |
23,333 |
|
$ |
22,363 |
|
|
4.3 |
% |
|
|
67.5% |
|
|
97.8% |
|
97.3% |
|
|
$ |
1,955 |
|
$ |
1,894 |
|
|||
|
3Q 2021 YTD v. 3Q 2020 YTD |
|
|
|
|
|
Revenues, Before Utility Reimbursements |
|
|
Expenses, Net of Utility Reimbursements |
|
|
Net Operating Income |
|
|
|
Net Operating Income Margin |
|
|
Average Daily Occupancy During Period |
|
|
Average Revenue per Aimco Apartment Home |
|
||||||||||||||||||||||||||||||||
|
|
Apartment Communities |
|
Apartment Homes |
|
|
3Q 2021 YTD |
|
3Q 2020 YTD |
|
Growth |
|
|
3Q 2021 YTD |
|
3Q 2020 YTD |
|
Growth |
|
|
3Q 2021 YTD |
|
3Q 2020 YTD |
|
Growth |
|
|
|
3Q 2021 YTD |
|
|
3Q 2021 YTD |
|
3Q 2020 YTD |
|
|
3Q 2021 YTD |
|
3Q 2020 YTD |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Central Region |
|
7 |
|
|
1,562 |
|
|
$ |
25,247 |
|
$ |
24,626 |
|
|
2.5 |
% |
|
$ |
9,036 |
|
$ |
8,063 |
|
|
12.1 |
% |
|
$ |
16,211 |
|
$ |
16,563 |
|
|
(2.1 |
%) |
|
|
64.2% |
|
|
97.3% |
|
95.1% |
|
|
$ |
1,846 |
|
$ |
1,841 |
|
|||
|
Northeast |
|
8 |
|
|
2,869 |
|
|
|
44,832 |
|
|
43,670 |
|
|
2.7 |
% |
|
|
14,886 |
|
|
14,282 |
|
|
4.2 |
% |
|
|
29,946 |
|
|
29,388 |
|
|
1.9 |
% |
|
|
66.8% |
|
|
97.9% |
|
97.0% |
|
|
|
1,774 |
|
|
1,744 |
|
|||
|
Southeast |
|
4 |
|
|
1,047 |
|
|
|
18,283 |
|
|
17,645 |
|
|
3.6 |
% |
|
|
6,177 |
|
|
5,633 |
|
|
9.7 |
% |
|
|
12,106 |
|
|
12,012 |
|
|
0.8 |
% |
|
|
66.2% |
|
|
97.9% |
|
95.7% |
|
|
|
1,981 |
|
|
1,957 |
|
|||
|
West Coast |
|
4 |
|
|
549 |
|
|
|
12,200 |
|
|
12,342 |
|
|
(1.2 |
%) |
|
|
3,254 |
|
|
3,084 |
|
|
5.5 |
% |
|
|
8,946 |
|
|
9,258 |
|
|
(3.4 |
%) |
|
|
73.3% |
|
|
96.0% |
|
96.0% |
|
|
|
2,571 |
|
|
2,601 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
23 |
|
|
6,027 |
|
|
$ |
100,562 |
|
$ |
98,283 |
|
|
2.3 |
% |
|
$ |
33,353 |
|
$ |
31,062 |
|
|
7.4 |
% |
|
$ |
67,209 |
|
$ |
67,221 |
|
|
(— |
%) |
|
|
66.8% |
|
|
97.6% |
|
96.2% |
|
|
$ |
1,900 |
|
$ |
1,883 |
|
|||
Excluded from the tables above is one, 40-unit apartment community that Aimco’s ownership includes a partnership share.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 15
|
|
Supplemental Schedule 7
Acquisitions, Dispositions, and Leased Communities
(dollars in thousands) (unaudited)
|
Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Acquisitions |
|
Location |
|
Purchase Price |
|
|
Acres |
|
|
Closing Date |
||
|
Benson Hotel and Faculty Club |
|
Aurora, CO |
|
$ |
6.2 |
|
|
|
1.5 |
|
|
February 2021 |
|
Hamilton on the Bay Land Assemblage [1] |
|
Miami, FL |
|
|
19.3 |
|
|
|
1.0 |
|
|
June/July 2021 |
|
Flying Horse |
|
Colorado Springs, CO |
|
|
4.1 |
|
|
|
7.5 |
|
|
September 2021 |
|
Total Land Acquisitions |
|
|
|
$ |
29.6 |
|
|
|
10.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment Acquisitions |
|
Location |
|
Purchase Price |
|
|
Apartment Homes |
|
|
Closing Date |
||
|
Eldridge Townhomes |
|
Elmhurst, IL |
|
|
40.0 |
|
|
|
58 |
|
|
August 2021 |
|
Total Apartment Acquisitions |
|
|
|
$ |
40.0 |
|
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Acquisitions |
|
|
|
$ |
69.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased Communities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Location |
|
Valuation for Leasehold |
|
|
Apartment Homes |
|
|
Closing Date |
||
|
Flamingo Point North Tower |
|
Miami Beach, FL |
|
$ |
240.0 |
|
|
|
366 |
|
|
January 2021 |
|
707 Leahy |
|
Redwood City, CA |
|
|
79.1 |
|
|
|
110 |
|
|
January 2021 |
|
The Fremont |
|
Aurora, CO |
|
|
89.0 |
|
|
|
253 |
|
|
January 2021 |
|
Prism |
|
Cambridge, MA |
|
|
60.9 |
|
|
|
136 |
|
|
January 2021 |
|
Oak Shore [2] |
|
Corte Madera, CA |
|
|
6.1 |
|
|
|
24 |
|
|
June 2021 |
|
Total Leases [3] |
|
|
|
$ |
475.1 |
|
|
|
889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Aimco purchased eight land parcels in June and July, six closed in June for $12.0 million and the remaining two closed in July for $7.3 million. |
||||||||||||
|
[2] Vacant land at time of lease on which Aimco is constructing 16 single family homes plus eight accessory dwelling units for a total of 24 homes. |
||||||||||||
|
[3] The annualized lease payments for these leases totals $26 million. |
||||||||||||
Third Quarter 2021 Earnings Release and Supplemental Schedules | 16
|
|
Glossary and Reconciliations of Non-GAAP Financial and Operating Measures
This Earnings Release and Supplemental Information include certain financial and operating measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. Aimco’s definitions and calculations of these Non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These Non-GAAP financial and operating measures should not be considered an alternative to GAAP net income or any other GAAP measurement of performance and should not be considered an alternative measure of liquidity.
AIMCO OP: AIMCO OP, L.P., a Delaware limited partnership, is the operating partnership in Aimco’s UPREIT structure. Aimco owns approximately 93.1% of the legal interest in the common partnership units of the Aimco OP and 95.0% of the economic interest in the common partnership units of the Aimco OP.
AVERAGE REVENUE PER APARTMENT HOME: Represents Aimco average monthly rental and other property revenues, excluding utility cost reimbursements, divided by the number of occupied apartment homes as of the end of the period.
DIRECT CAPITAL INVESTMENT: Represents all items related to the planning, construction, and management of development and redevelopment projects paid to third party providers. Direct Capital Investment does not include certain costs capitalized in accordance with GAAP, such as financing costs, lease costs, and internal team time.
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION FOR REAL ESTATE (“EBITDAre”): Nareit defines EBITDAre as net income computed in accordance with GAAP, before interest expense, income taxes, depreciation and amortization expense, further adjusted for:
|
|
• |
gains and losses on the dispositions of depreciated property; |
|
|
• |
impairment write-downs of depreciated property; |
|
|
• |
impairment write-downs of investments in unconsolidated partnerships caused by a decrease in the value of the depreciated property in such partnerships; and |
|
|
• |
adjustments to reflect the Aimco’s share of EBITDAre of investments in unconsolidated entities. |
Aimco believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of Aimco’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry and facilitates comparison of credit strength between Aimco and other companies.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 17
|
|
ADJUSTED EBITDAre: Adjusted EBITDAre is defined by Aimco as EBITDAre adjusted to exclude the effect of the following items for the reasons set forth below:
|
|
• |
net income attributable to noncontrolling interests in consolidated real estate partnerships, EBITDAre adjustments attributable to noncontrolling interests, and the amount of unrealized gains recognized by Aimco on its interest rate options, to allow investors to compare a measure of Aimco’s earnings before the effects of Aimco’s capital structure and indebtedness with that of other companies in the real estate industry; |
|
|
• |
the amount of interest income recognized by Aimco related to the mezzanine loan made by Aimco to a partnership owning Parkmerced Apartments that was accrued but not paid during the quarter. |
FREE CASH FLOW: Free Cash Flow, as calculated for Aimco’s retained portfolio, represents an apartment community’s property net operating income, less spending for Capital Replacements. Capital Replacement spending is a measure of the cost of capital asset used during the period. Aimco believes that Free Cash Flow is useful to investors as a supplemental measure of apartment community performance because it takes into consideration costs incurred during the period to replace capital assets that have been consumed during Aimco’s ownership.
MEZZANINE INVESTMENTS: Aimco’s Mezzanine Investments includes the $275 million mezzanine loan, and associated accrued interest, made by Aimco to a partnership owning Parkmerced Apartments, located in southwest San Francisco. For more information regarding this investment see Aimco’s SEC Form 10-Q filed for the period ended September 30, 2021.
NET ASSET VALUE: Net Asset Value is calculated as the market value of a company's assets less its liabilities and obligations. Aimco estimates the value of its portfolio using methods management believes to be appropriate based on the characteristics of the item being valued.
NET OPERATING INCOME (NOI) MARGIN: Represents an apartment community’s net operating income as a percentage of the apartment community’s rental and other property revenues.
OTHER EXPENSES, NET: Other expenses, net, generally consists of risk management activities related to Aimco’s unconsolidated partnerships and certain other corporate expenses.
PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property management revenues, primarily from affiliates; casualties; property management expenses; depreciation; or interest expense. NOI is helpful because it helps both investors and management to understand the operating performance of real estate excluding costs associated with decisions about acquisition pricing, overhead allocations, and financing arrangements. NOI is also considered by many in the real estate industry to be a useful measure for determining the value of real estate. Reconciliations of NOI as presented in this Earnings Release and Supplemental Information to Aimco’s consolidated GAAP amounts are provided below.
Due to the diversity of its economic ownership interests in its apartment communities in the periods presented, Aimco evaluates the performance of the apartment communities in its segments using Property NOI, which represents the NOI for the apartment communities that Aimco consolidates and excludes apartment communities that it does not consolidate. Property NOI is defined as rental and other property revenue less property operating expenses. In its evaluation of community results, Aimco excludes utility cost reimbursement from rental and other property revenues and reflects such amount as a reduction of the related utility expense within property operating expenses. The following table presents the reconciliation of GAAP rental and other property revenue to the revenues before utility reimbursements and GAAP property operating expenses to expenses, net of utility reimbursements as presented on Supplemental Schedule 6.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 18
|
|
|
Segment NOI Reconciliation |
Three Months Ended (in thousands) |
|
|||||||||||||
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
||||||||||
|
Total Real Estate Operations |
Revenues, Before Utility Reimbursements [1] |
|
|
Expenses, Net of Utility Reimbursements |
|
|
Revenues, Before Utility Reimbursements [1] |
|
|
Expenses, Net of Utility Reimbursements |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (per consolidated statements of operations) |
$ |
42,893 |
|
|
$ |
18,155 |
|
|
$ |
37,328 |
|
|
$ |
15,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment: Utilities reimbursement |
|
(1,480 |
) |
|
|
(1,480 |
) |
|
|
(1,290 |
) |
|
|
(1,290 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment: Non-stabilized and other amounts not allocated [2] |
|
(6,836 |
) |
|
|
(5,431 |
) |
|
|
(3,678 |
) |
|
|
(3,693 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stabilized Operating (per Schedule 6) |
$ |
34,577 |
|
|
$ |
11,244 |
|
|
$ |
32,360 |
|
|
$ |
10,168 |
|
|
Segment NOI Reconciliation |
Nine Months Ended (in thousands) |
|
|||||||||||||
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
||||||||||
|
Total Real Estate Operations |
Revenues, Before Utility Reimbursements [1] |
|
|
Expenses, Net of Utility Reimbursements |
|
|
Revenues, Before Utility Reimbursements [1] |
|
|
Expenses, Net of Utility Reimbursements |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (per consolidated statements of operations) |
$ |
123,115 |
|
|
$ |
51,500 |
|
|
$ |
112,802 |
|
|
$ |
45,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment: Utilities reimbursement |
|
(2,815 |
) |
|
$ |
(2,815 |
) |
|
|
(2,556 |
) |
|
|
(2,556 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment: Non-stabilized and other amounts not allocated [2] |
|
(19,738 |
) |
|
|
(15,333 |
) |
|
|
(11,963 |
) |
|
|
(12,204 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stabilized Operating (per Schedule 6) |
$ |
100,562 |
|
|
$ |
33,353 |
|
|
$ |
98,283 |
|
|
$ |
31,062 |
|
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[1] |
Approximately two-thirds of Aimco’s utility costs are reimbursed by residents. These reimbursements are included in rental and other property revenues on Aimco’s consolidated statements of operations prepared in accordance with GAAP. This adjustment represents the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results and as presented on Supplemental Schedule 6. Aimco also excludes the reimbursement amounts from the calculation of Average Revenue per Apartment Home throughout this Earnings Release and Supplemental Schedules. |
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[2] |
Properties not included in the Stabilized Operating Portfolio and other amounts not allocated includes operating results of properties not presented in the Stabilized Operation Portfolio as presented on Supplemental Schedule 6 during the periods shown, as well as property management and casualty expense, which are not included in property operating expenses, net of utility reimbursements in the Supplemental Schedule 6 presentation. |
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REAL ESTATE CLASSIFICATIONS: Aimco’s real estate portfolio is diversified by price point, geography, and opportunity. Aimco’s consolidated portfolio is classified into the following groups:
DEVELOPMENT and REDEVELOPMENT - OWNED: Includes apartment communities currently under construction or in pre-construction that have not achieved a stabilized level of operations and communities that have been completed in recent years that had not achieved and maintained stabilized operations for both the current and the comparable prior periods.
DEVELOPMENT and REDEVELOPMENT - LEASED: Includes communities leased from a third party currently under construction or in pre-construction that have not achieved a stabilized level of operations and communities that have been completed in recent years that had not achieved and maintained stabilized operations for both the current and the comparable prior periods.
STABILIZED OPERATING PORTFOLIO: Apartment communities that (a) are owned and asset managed by Aimco, (b) had reached a stabilized level of operations as of January 1, 2020 and maintained it throughout the current and the comparable prior periods, and (c) are not expected to be sold within 12 months.
OTHER REAL ESTATE: Includes Aimco’s commercial office building.
Third Quarter 2021 Earnings Release and Supplemental Schedules | 19
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