Aimco Reports Fourth Quarter and Full Year 2024 Results and Establishes 2025 Guidance
Aimco (NYSE: AIV) reported Q4 and full-year 2024 results, posting a net loss of $(0.08) per share for Q4 and $(0.75) for the full year. The company's Stabilized Operating Properties generated NOI of $25.9 million in Q4 2024, up 4.5% year-over-year, with full-year NOI at $99.0 million.
Key operational highlights include Q4 average daily occupancy increasing to 97.9%, revenue per home up 2.9% year-over-year, and rents up 3.6% on all transacted leases. The company completed construction on three multifamily assets, including 933 residential units and over 100K sf of commercial space, with costs approximately $10 million below original projections.
For 2025, Aimco projects revenue growth of 3% and expects expenses to increase by 5.5%, resulting in projected full-year NOI growth between 1% to 3%. The company has entered an agreement to sell the Brickell Assemblage for $520 million, expected to generate approximately $300 million in net proceeds.
Aimco (NYSE: AIV) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, registrando una perdita netta di $(0.08) per azione per il Q4 e $(0.75) per l'intero anno. Le proprietà operative stabilizzate dell'azienda hanno generato NOI di 25,9 milioni di dollari nel Q4 2024, in aumento del 4,5% rispetto all'anno precedente, con un NOI totale per l'anno di 99,0 milioni di dollari.
Tra i punti salienti operativi, l'occupazione media giornaliera del Q4 è aumentata al 97,9%, le entrate per unità sono aumentate del 2,9% rispetto all'anno precedente e gli affitti sono aumentati del 3,6% su tutti i contratti di locazione conclusi. L'azienda ha completato la costruzione di tre beni multifamiliari, inclusi 933 unità residenziali e oltre 100K piedi quadrati di spazio commerciale, con costi circa 10 milioni di dollari inferiori alle proiezioni originali.
Per il 2025, Aimco prevede una crescita dei ricavi del 3% e si aspetta che le spese aumentino del 5,5%, portando a una crescita prevista del NOI per l'intero anno compresa tra l'1% e il 3%. L'azienda ha stipulato un accordo per vendere il Brickell Assemblage per 520 milioni di dollari, che dovrebbe generare circa 300 milioni di dollari di proventi netti.
Aimco (NYSE: AIV) informó los resultados del cuarto trimestre y del año completo 2024, registrando una pérdida neta de $(0.08) por acción en el Q4 y $(0.75) para el año completo. Las propiedades operativas estabilizadas de la compañía generaron NOI de 25.9 millones de dólares en el Q4 2024, un aumento del 4.5% interanual, con un NOI total para el año de 99.0 millones de dólares.
Los aspectos operativos clave incluyen un aumento en la ocupación diaria promedio del Q4 al 97.9%, un incremento del 2.9% en los ingresos por hogar en comparación con el año anterior, y un aumento del 3.6% en todos los arrendamientos transaccionados. La compañía completó la construcción de tres activos multifamiliares, que incluyen 933 unidades residenciales y más de 100K pies cuadrados de espacio comercial, con costos aproximadamente 10 millones de dólares por debajo de las proyecciones originales.
Para 2025, Aimco proyecta un crecimiento de ingresos del 3% y espera que los gastos aumenten en un 5.5%, lo que resultará en un crecimiento proyectado del NOI para el año completo entre el 1% y el 3%. La compañía ha firmado un acuerdo para vender el Brickell Assemblage por 520 millones de dólares, que se espera genere aproximadamente 300 millones de dólares en ingresos netos.
Aimco (NYSE: AIV)는 2024년 4분기 및 연간 실적을 보고하며, 4분기 주당 순손실 $(0.08) 및 연간 $(0.75)을 기록했습니다. 회사의 안정화된 운영 자산은 2024년 4분기에 2,590만 달러의 NOI를 생성하여 전년 대비 4.5% 증가했으며, 연간 NOI는 9,900만 달러에 달했습니다.
주요 운영 하이라이트로는 4분기 평균 일일 점유율이 97.9%로 증가하고, 주택당 수익이 전년 대비 2.9% 증가했으며, 모든 거래된 임대에서 임대료가 3.6% 증가했습니다. 회사는 933개의 주거 유닛과 100K 제곱피트 이상의 상업 공간을 포함한 세 개의 다가구 자산 건설을 완료했으며, 비용은 원래 예상보다 약 1천만 달러 낮았습니다.
2025년을 위해 Aimco는 3%의 수익 성장을 예상하고 있으며, 비용이 5.5% 증가할 것으로 기대하여 전체 연간 NOI 성장은 1%에서 3% 사이가 될 것으로 예상하고 있습니다. 회사는 Brickell Assemblage를 5억 2천만 달러에 판매하기로 합의했으며, 이는 약 3억 달러의 순수익을 창출할 것으로 예상됩니다.
Aimco (NYSE: AIV) a publié les résultats du quatrième trimestre et de l'année 2024, affichant une perte nette de $(0.08) par action pour le Q4 et $(0.75) pour l'année entière. Les propriétés opérationnelles stabilisées de l'entreprise ont généré NOI de 25,9 millions de dollars au Q4 2024, en hausse de 4,5 % par rapport à l'année précédente, avec un NOI total de 99,0 millions de dollars pour l'année.
Les points forts opérationnels incluent une augmentation de l'occupation quotidienne moyenne du Q4 à 97,9 %, une augmentation des revenus par foyer de 2,9 % par rapport à l'année précédente, et une hausse des loyers de 3,6 % sur tous les baux conclus. L'entreprise a achevé la construction de trois actifs multifamiliaux, comprenant 933 unités résidentielles et plus de 100K pieds carrés d'espace commercial, avec des coûts environ 10 millions de dollars inférieurs aux prévisions initiales.
Pour 2025, Aimco prévoit une croissance des revenus de 3 % et s'attend à ce que les dépenses augmentent de 5,5 %, ce qui entraînera une croissance projetée du NOI pour l'année entière entre 1 % et 3 %. L'entreprise a conclu un accord pour vendre le Brickell Assemblage pour 520 millions de dollars, qui devrait générer environ 300 millions de dollars de produits nets.
Aimco (NYSE: AIV) hat die Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht und einen Nettoverlust von $(0.08) pro Aktie im Q4 sowie $(0.75) für das gesamte Jahr gemeldet. Die stabilisierten Betriebsimmobilien des Unternehmens erzielten NOI von 25,9 Millionen Dollar im Q4 2024, was einem Anstieg von 4,5% im Jahresvergleich entspricht, mit einem Gesamt-NOI von 99,0 Millionen Dollar für das Jahr.
Wichtige betriebliche Höhepunkte umfassen einen Anstieg der durchschnittlichen täglichen Belegung im Q4 auf 97,9%, einen Anstieg der Einnahmen pro Wohnung um 2,9% im Jahresvergleich und eine Erhöhung der Mieten um 3,6% bei allen abgeschlossenen Mietverträgen. Das Unternehmen hat den Bau von drei Mehrfamilienhäusern abgeschlossen, darunter 933 Wohneinheiten und über 100K Quadratfuß Gewerbefläche, wobei die Kosten etwa 10 Millionen Dollar unter den ursprünglichen Prognosen lagen.
Für 2025 prognostiziert Aimco ein Umsatzwachstum von 3% und erwartet, dass die Ausgaben um 5,5% steigen, was zu einem prognostizierten NOI-Wachstum für das gesamte Jahr von 1% bis 3% führen wird. Das Unternehmen hat eine Vereinbarung zum Verkauf des Brickell Assemblage für 520 Millionen Dollar getroffen, die voraussichtlich etwa 300 Millionen Dollar an Nettoerlösen generieren wird.
- NOI from Stabilized Operating Properties increased 4.5% YoY to $25.9M in Q4 2024
- High occupancy rate of 97.9% with revenue per home up 2.9% YoY
- Construction costs $10M below original projections for three completed multifamily assets
- Agreement to sell Brickell Assemblage for $520M with expected $300M net proceeds
- Repurchased 4.9M shares at average cost of $8.01 per share in 2024
- Net loss of $(0.08) per share in Q4 and $(0.75) for full year 2024
- Operating expenses expected to increase 5.5% in 2025
- Projected NOI growth declining to 1-3% for 2025 compared to 4.5% in 2024
Insights
The Q4 and FY2024 results reveal Aimco's strategic evolution toward a more focused and capital-efficient business model. The 4.5% NOI growth in both Q4 and full-year demonstrates solid operational execution, particularly notable given the challenging market conditions. The 97.9% occupancy rate and 3.6% lease rate growth indicate strong demand fundamentals in their suburban-focused portfolio.
The company's capital recycling strategy is particularly noteworthy, with the pending $520M Brickell Assemblage sale representing a significant value crystallization event. The expected $300M net proceeds from this transaction, combined with the completed $204M asset sales in Q4, showcases management's commitment to unlocking shareholder value through strategic dispositions. The decision to return the majority of these proceeds to shareholders signals confidence in the existing portfolio's ability to generate returns without requiring substantial reinvestment.
Development activities demonstrate disciplined execution with $10M in cost savings across three completed projects and promising lease-up metrics achieving 7% yield on cost. The reduction in active construction exposure by 60% year-over-year aligns with the current market environment where development risks are elevated due to higher financing costs.
The 2025 guidance reflects a conservative approach with 1-3% NOI growth projected, primarily impacted by property tax reassessments. This measured outlook, combined with the exploration of strategic alternatives, suggests potential corporate actions ahead that could further enhance shareholder value. The company's strong balance sheet, with no maturities until 2027 and 100% fixed or hedged debt, provides flexibility for these strategic initiatives.
Financial Results
- Aimco's net loss attributable to common stockholders per share, on a fully dilutive basis, was
$(0.08) $(0.75) - Net Operating Income ("NOI") from Aimco's Stabilized Operating Properties was
$25.9 million 4.5% year-over-year, and full year 2024 NOI was$99.0 million 4.5% year-over-year.
Stockholder Letter
Dear fellow and prospective stockholders,
I am pleased to report on Aimco's 2024 results and outline our plans and goals for the year ahead.
During 2024, Aimco delivered strong operational results across our apartment portfolio, remained disciplined in the allocation of capital and made significant progress toward our broader strategic goals by executing and advancing key transactions.
Aimco's Stabilized Operating portfolio continued to benefit from its geographic composition, consisting of primarily established suburban submarkets, which experienced limited competitive new supply and steady renter demand. The portfolio produced
Our regional development teams continued to add value as construction was completed on three multifamily assets, including 933 residential units and more than 100K sf of commercial space. Total direct costs for these projects are now expected to be approximately
As announced in September 2024, we commenced construction on one new development project located in
Aimco made significant progress in our efforts to realize value through accretive dispositions during 2024. In December, Aimco sold The
The Aimco balance sheet remains solid, with no maturities prior to June 2027 (after consideration for contractual extension options and announced transactions) and with our assumable, fixed-rate property loans having an average duration of 6.8 years at favorable interest rates. During 2024, we retired
In keeping with our previously stated capital allocation priorities, we directed nearly
Last year's good results were the product of a high-performing and dedicated team, committed to adding value across all aspects of our business and who are eager to 'do it again' in 2025.
As we look to the year ahead, the fundamentals of the apartment business, and the Aimco portfolio in particular, are expected to remain strong as renter demand continues to exceed supply. Real estate capital markets are fully functioning, with credit spreads having narrowed over the past year and
At Aimco we plan to drive continued growth from our Stabilized Operating portfolio which consists of more than 5,200 apartment homes, predominantly located in the Northeast and Midwest markets. These properties are projected to realize revenue growth of
Within our development business we expect to complete the lease-up of three multifamily projects. These projects are on track to stabilize occupancy by year end 2025 and NOI approximately one year later. We will advance construction at our one active development project, 34th Street in
We expect to close on the sale of the Brickell Assemblage during the year and estimate the transaction to deliver approximately
Finally, and as announced earlier this year, Aimco's executive management and Board of Directors has decided to explore additional strategic alternatives in an effort to further unlock and maximize stockholder value. While the strategic process unfolds, the Aimco team remains committed to delivering strong operational results, creating value through select development investment, prudent capital allocation, efficient cost management, and fostering a culture of integrity, respect, and collaboration.
Take care, and thank you for your interest in Aimco!
Wes Powell
President and Chief Executive Officer
2024 Highlights
- Aimco's Stabilized Operating revenue, expenses, and NOI increased
3.5% ,0.8% , and4.5% , respectively, year-over-year in the fourth quarter, with average monthly revenue per apartment home increasing by2.9% to$2,307 97.9% . Full year 2024 revenue, expenses, and NOI increased4.5% ,4.4% , and4.5% , respectively, year-over-year. - During the fourth quarter, Aimco substantially completed construction at its Oak Shore project located in
Corte Madera, California . - In December, Aimco sold, for a total price at Aimco's share of
$203.8 million Miami, Florida , TheHamilton , a recently completed redevelopment of a 276-unit apartment building, and a 2.8-acre development site at 3333 Biscayne Boulevard. - In late December, Aimco reached an agreement to sell the Brickell Assemblage for
$520 million $38 million - Aimco increased its ownership in its Upton Place property as its development partner exercised the option to sell their
10% interest in the asset. Also, Aimco secured a bridge loan to replace the higher cost construction loan, and partially paydown a project-level preferred equity investor. - In December, Aimco's Board of Directors declared a special cash dividend of
$0.60 - In 2024, Aimco acquired 4.9 million shares of its common stock, at an average cost of
$8.01
Operating Property Results
Aimco owns a diversified portfolio of operating apartment communities located in eight major
Results at Aimco's Stabilized Operating Properties were as follows:
Fourth Quarter | FULL YEAR | |||||||||
Stabilized Operating Properties | Year-over-Year | Sequential | Year-over-Year | |||||||
($ in millions) | 2024 | 2023 | Variance | 3Q 2024 | Variance | 2024 | 2023 | Variance | ||
Average Daily Occupancy | 97.9 % | 97.4 % | 0.5 % | 96.8 % | 1.1 % | 97.2 % | 96.6 % | 0.6 % | ||
Revenue, before utility reimbursements | 3.5 % | 0.9 % | 4.5 % | |||||||
Expenses, net of utility reimbursements | 9.6 | 9.5 | 0.8 % | 10.5 | (8.8) % | 41.1 | 39.4 | 4.4 % | ||
Net operating income (NOI) | 25.9 | 24.8 | 4.5 % | 24.7 | 5.1 % | 99.0 | 94.7 | 4.5 % | ||
- Revenue in the fourth quarter 2024 was
$35.5 million 3.5% year-over-year, resulting from a2.9% increase in average monthly revenue per apartment home to$2,307 97.9% . - Effective rents on all leases during the fourth quarter 2024 were
3.6% higher, on average, than the previous lease and71.7% of residents whose leases were expiring signed renewals. - The median annual household income of new residents was
$130,000 20.9% . - Expenses in the fourth quarter 2024 were up
0.8% year-over-year but down8.8% compared to the third quarter 2024, primarily due to typical seasonal reductions and tax bills coming in lower than estimated. - NOI in the fourth quarter 2024 was
$25.9 million 4.5% year-over-year and5.1% over the third quarter 2024. Full year 2024, NOI was$99.0 million 4.5% over 2023.
Value Add and Opportunistic Investments
Development and Redevelopment
Aimco generally seeks development and redevelopment opportunities where barriers to entry are high, target customers can be clearly defined, and 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.
As of December 31, 2024, Aimco had one multifamily development project under construction and three multifamily communities that have been substantially completed and are now in lease-up. In addition to Aimco's core multifamily developments, The Benson Hotel and Faculty Club was completed in 2023 and remains in the stabilization process.
Aimco also has a pipeline of future value add opportunities in
During the fourth quarter,
- In Upper Northwest Washington D.C., all 689 apartment homes at Upton Place have been delivered and construction is substantially complete. Total direct costs are now expected to be
$334.8 million $3.0 million 90% of the project's 105K square feet of retail space had been leased with our two large anchor tenants fully open. - In
Bethesda, Maryland , all 220 of the highly tailored apartment homes at the first phase of Strathmore Square have been delivered and construction is substantially complete. Total direct project costs are now expected to be$181.4 million $7.5 million - In
Corte Madera, California , construction is substantially complete at Oak Shore with all 16 ultra-luxury single-family rental homes and eight accessory dwelling units delivered. As of February 13, 2025, Aimco had leased and welcomed residents into 20 of the homes at rates ahead of our initial projections. - In
Miami's Edgewater neighborhood, construction continued on 34th Street, an ultra-luxury waterfront residential tower that will include 7,000 square feet of retail and rental homes averaging more than 2,500 square feet, with oversized private terraces, top-of-the-line finishes, and unobstructed views of Biscayne Bay. Aimco expects to welcome the first residents at this$240 million - In the fourth quarter 2024, Aimco invested
$0.8 million Fort Lauderdale, Florida . Consistent with Aimco's capital allocation strategy, it may choose to monetize certain of its pipeline assets prior to vertical construction in an effort to maximize value add and risk-adjusted returns.
Investment & Disposition Activity
Aimco is focused on prudently allocating capital and delivering strong investment returns. Consistent with Aimco's capital allocation philosophy, it aims to monetize the value within its assets when accretive uses of the proceeds are identified and invest when the risk-adjusted returns are superior to other uses of capital.
- In the fourth quarter, Aimco sold, for
$203.8 million Edgewater neighborhood ofMiami, Florida , retired$110.1 million $90 million - The Hamilton, Aimco's recently completed major redevelopment sold for
$190.0 million - Aimco's interest in 3333 Biscayne Boulevard, a 2.8-acre development site, was sold to Aimco's joint venture partner at a gross valuation of
$66.5 million $13.8 million
- The Hamilton, Aimco's recently completed major redevelopment sold for
- In the fourth quarter, Aimco entered into an agreement to sell the Brickell Assemblage for a gross price of
$520 million - The buyer's initial deposit of
$38 million - The buyer can exercise an option to finance up to
$115 million 12% . If exercised the purchase price increases by$20 million $540 million - The sale, which is subject to certain closing conditions and extension options, is scheduled to occur as early as March 2025 but may be extended at the buyer's option to the fourth quarter of 2025, with such extensions requiring the buyer to increase its non-refundable deposit.
- Net proceeds from the transaction, accounting for the associated property-level debt and deferred tax liability, are estimated to range from
$300 $320 million
- The buyer's initial deposit of
- In the fourth quarter, Aimco increased its ownership interest in its Upton Place property by
$19.1 million 10% interest in the asset.
Balance Sheet and Financing Activity
Aimco is highly focused on maintaining a strong balance sheet, including ample liquidity. As of December 31, 2024, Aimco had access to
Aimco's net leverage as of December 31, 2024, was as follows:
as of December 31, 2024 | ||||||||
Aimco Share, $ in thousands | Amount | Weighted Avg. | ||||||
Total non-recourse fixed rate debt | $ | 693,993 | 6.8 | |||||
Total non-recourse construction loan debt | 385,959 | 2.6 | ||||||
Total property debt secured by assets held for sale | 159,769 | 1.1 | ||||||
Cash and restricted cash | (172,057) | |||||||
Net Leverage | $ | 1,067,664 | ||||||
[1] Weighted average maturities presented exclude contractual extension rights. |
- In the fourth quarter, Aimco refinanced its Upton Place asset with a
$215 million 6.39% and is prepayable at par after 18 months, replaced the construction loan and funded the partial paydown of a project-level preferred equity investor, which together had a weighted average interest rate of9.22% at the time of payoff.
As of December 31, 2024,
Public Market Equity
Common Stock Repurchases
- In the fourth quarter, Aimco repurchased 0.6 million shares of its common stock at a weighted average price of
$8.51 $8.01 $7.53 - In the fourth quarter, Aimco Operating Partnership redeemed 34,001 units of its equity securities for cash at a weighted average price of
$8.75 $8.28
Dividend
- On December 19, 2024, Aimco's Board of Directors declared a
$0.60
2025 Outlook
2024 | 2025 | |||
$ in millions (except per share amounts) Forecast is full year unless otherwise noted | Results | Forecast | ||
Net income (loss) per share – diluted [1] | ||||
Operating Properties | ||||
Revenue Growth, before utility reimbursements | 4.5 % | |||
Operating Expense Growth, net of utility reimbursements | 4.4 % | |||
Net Operating Income Growth | 4.5 % | |||
Recurring Capital Expenditures | ||||
Developments and Redevelopments | ||||
Total Direct Costs of Projects in Occupancy Stabilization at Period End [2] | ||||
Total Direct Costs of Projects Under Construction at Period End [2] | ||||
Direct Project Costs on Active Developments [3] | ||||
Direct Planning Costs [4] | ||||
Real Estate Transactions | ||||
Acquisitions | None | None | ||
Dispositions [5] | ||||
General and Administrative | ||||
Leverage | ||||
Interest Expense, net of capitalization [6] | ||||
[1] Net income (loss) per share - diluted includes estimated gains from the announced transactions which are under contract. |
[2] Includes land or leasehold value. |
[3] Aimco's planned costs on active developments is primarily related to its 34th Street development project and will be funded through committed construction loan and preferred equity draws. Aimco funded its equity commitment to the joint venture through the contribution of land plus an incremental |
[4] Includes direct costs related to advancing planning efforts for certain pipeline projects. |
[5] Includes the Brickell Assemblage which is under contract to sell in 2025. |
[6] Includes GAAP interest expense, exclusive of the amortization of deferred financing costs, and reduced by interest rate option payments which are included in the Realized and unrealized gains (losses) on interest rate options line on Aimco's income statement. |
Operating Properties
Aimco's Stabilized Operating Portfolio includes properties with rents, on average, in line with local market rents, generally considered class B apartment communities. These properties are primarily located in suburban residential areas of
In 2025, Aimco forecasts revenues to grow between
Developments and Redevelopments
In 2025, Aimco plans to stabilize occupancy at its three recently completed residential developments and continue construction activities at its 34th Street ground up development in
Aimco expects to invest, at its one active development project, between
Aimco is prudently advancing planning efforts at its pipeline projects such that incremental time and cost add value independent of a decision to commence construction. During 2025, Aimco expects to invest between
Real Estate Transactions
As previously announced, Aimco is under contract to close the sale of its Brickell Assemblage in 2025. Proceeds generated from this transaction are expected to eliminate associated liabilities with the majority of the remainder returned to stockholders.
General and Administrative
Aimco expects G&A expense, measured in accordance with GAAP, in 2025 to be
Leverage
Aimco uses leverage to capitalize its real estate portfolio and construction activities so that Aimco preserves liquidity and so that Aimco equity is invested in diverse projects and markets, mitigating concentration risk. Aimco prefers non-recourse property-level financing with fixed, or rate-capped floating interest rates. In addition, Aimco has a secured revolving credit facility providing additional liquidity.
In 2025, assuming that Aimco closes its announced disposition, Aimco expects total debt balances to be lower than ending balances for 2024 with no loans maturing in 2025. Aimco plans to fund costs related to its active development project with draws from a fully committed construction loan and its preferred equity partner. In accordance with GAAP, interest expense, net of capitalization, is expected to be
Commitment to Enhance Stockholder Value
On January 9, 2025, Aimco and its Board of Directors announced that, while pleased with the transformation and simplification of the Aimco portfolio and the objective results delivered over the past four years, shares of AIV continue to trade at a meaningful discount to Aimco's estimate of the private market value of its assets and investment platform. This disconnect has limited Aimco's ability to fund new investment opportunities and accelerate growth.
Therefore, Aimco's Board of Directors has decided to explore additional alternatives in an effort to further unlock and maximize shareholder value. The exploration will expand upon Aimco's ongoing efforts such as reducing exposure to development activity and monetizing certain assets, and include, but not be limited to, exploration of a sale or merger of Aimco as a whole, potential sales of the major components of the business (in one or a series of transactions), and an acceleration of individual asset sales. The Board of Director's guiding principle will be to produce an outcome that delivers maximum value to Aimco shareholders. The strategic process is being overseen by Aimco's Investment Committee, comprised of four independent Aimco Board Members. Morgan Stanley & Co. LLC is serving as financial advisor to Aimco.
There can be no assurance that this expanded strategic process will result in any transaction or transactions or other strategic changes or outcomes, and the timing or outcome of any such event is similarly uncertain. Aimco does not intend to disclose or comment on developments related to the foregoing unless or until it determines that further disclosure is appropriate or required.
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
About Aimco
Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the
Team and Culture
Aimco has a national presence with corporate headquarters in
Above all else, Aimco is committed to a culture of integrity, respect, and collaboration.
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. 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. The forward-looking statements in this document include, without limitation, statements regarding our future plans and goals, including the timing and amount of capital expected to be returned to stockholders, our pipeline investments and projects, our plans to eliminate certain near term debt maturities, our estimated value creation and potential, our timing, scheduling and budgeting, projections regarding revenue and expense growth, our plans to form joint ventures, our plans for new acquisitions or dispositions, our strategic partnerships and value added therefrom, the potential for adverse economic and geopolitical conditions, which negatively impact our operations, including on our ability to maintain current or meet projected occupancy, rental rate and property operating results; the effect of acquisitions, dispositions, developments, and redevelopments; our ability to meet budgeted costs and timelines, and achieve budgeted rental rates related to our development and redevelopment investments; expectations regarding sales of our apartment communities and the use of proceeds thereof; the availability and cost of corporate debt; and our ability to comply with debt covenants, including financial coverage ratios. We caution investors not to place undue reliance on any such forward-looking statements.
These forward-looking statements are based on management's judgment as of this date, which is subject to risks and uncertainties that could cause actual results to differ materially from our expectations, including, but not limited to: the risk that the 2025 plans and goals may not be completed, as expected, in a timely manner or at all; geopolitical events which may adversely affect the markets in which our securities trade, and other macro-economic conditions, including, among other things, rising interest rates and inflation, which heightens the impact of the other risks and factors described herein; real estate and operating risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the amount, location and quality of competitive new housing supply; the timing and effects of acquisitions, dispositions, developments and redevelopments; expectations regarding sales of apartment communities and the use of proceeds thereof; insurance risks, including the cost of insurance, and natural disasters and severe weather such as hurricanes; supply chain disruptions, particularly with respect to raw materials such as lumber, steel, and concrete; financing risks, including the availability and cost of financing; the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; the risk that earnings may not be sufficient to maintain compliance with debt covenants, including financial coverage ratios; legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of laws and governmental regulations that affect us and interpretations of those laws and regulations; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently owned by us.
In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended (the "Code") and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership.
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, 2024, 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 and expectations as of this date, and Aimco undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Consolidated Statements of Operations |
(in thousands, except per share data) (unaudited) |
Three Months Ended | Twelve Months Ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
REVENUES: | ||||||||||||||||
Rental and other property revenues | $ | 54,171 | $ | 49,352 | $ | 208,679 | $ | 186,995 | ||||||||
OPERATING EXPENSES: | ||||||||||||||||
Property operating expenses | 23,892 | 19,065 | 90,984 | 73,712 | ||||||||||||
Depreciation and amortization | 21,236 | 17,728 | 86,359 | 68,834 | ||||||||||||
General and administrative expenses | 8,961 | 8,379 | 32,837 | 32,865 | ||||||||||||
Total operating expenses | 54,088 | 45,171 | 210,180 | 175,411 | ||||||||||||
Interest income | 2,171 | 2,709 | 9,652 | 9,731 | ||||||||||||
Interest expense [1] | (20,835) | (10,085) | (70,057) | (37,718) | ||||||||||||
Mezzanine investment income (loss), net | (548) | (154,801) | (2,432) | (155,814) | ||||||||||||
Realized and unrealized gains (losses) on | 588 | (2,161) | 1,752 | 1,119 | ||||||||||||
Realized and unrealized gains (losses) on | (1,403) | 535 | (49,504) | 700 | ||||||||||||
Gains on dispositions of real estate | 10,749 | 6,106 | 10,600 | 7,984 | ||||||||||||
Other income (expense), net | (779) | (1,779) | (5,581) | (7,657) | ||||||||||||
Income (loss) before income tax benefit | (9,976) | (155,296) | (107,071) | (170,071) | ||||||||||||
Income tax benefit (expense) | 2,340 | 1,929 | 11,071 | 12,752 | ||||||||||||
Net income (loss) | (7,636) | (153,367) | (96,000) | (157,319) | ||||||||||||
Net (income) loss attributable to redeemable noncontrolling | (3,141) | (3,465) | (13,958) | (13,924) | ||||||||||||
Net (income) loss attributable to noncontrolling interests | 450 | (2,931) | 1,849 | (3,991) | ||||||||||||
Net (income) loss attributable to common noncontrolling | 508 | 8,263 | 5,641 | 9,038 | ||||||||||||
Net income (loss) attributable to Aimco | $ | (9,820) | $ | (151,500) | $ | (102,468) | $ | (166,196) | ||||||||
Net income (loss) attributable to common stockholders per | $ | (0.08) | $ | (1.07) | $ | (0.75) | $ | (1.16) | ||||||||
Net income (loss) attributable to common stockholders per | $ | (0.08) | $ | (1.07) | $ | (0.75) | $ | (1.16) | ||||||||
Weighted-average common shares outstanding – | 136,659 | 141,203 | 138,496 | 143,618 | ||||||||||||
Weighted-average common shares outstanding – | 136,659 | 141,203 | 138,496 | 143,618 | ||||||||||||
[1] Interest expense increased in the three and twelve months ended December 31, 2024 from the same periods ending December 31, 2023, due primarily to increased construction loan draws and reduced capitalization as development projects are advanced and completed. |
Consolidated Balance Sheets |
(in thousands) (unaudited) |
December 31, | December 31, | |||||||
2024 | 2023 | |||||||
Assets | ||||||||
Buildings and improvements | $ | 1,348,925 | $ | 1,593,802 | ||||
Land | 398,182 | 620,821 | ||||||
Total real estate | 1,747,107 | 2,214,623 | ||||||
Accumulated depreciation | (499,274) | (580,802) | ||||||
Net real estate | 1,247,833 | 1,633,821 | ||||||
Cash and cash equivalents | 141,072 | 122,601 | ||||||
Restricted cash | 31,367 | 16,666 | ||||||
Notes receivable | 58,794 | 57,554 | ||||||
Right-of-use lease assets - finance leases | 107,714 | 108,992 | ||||||
Other assets, net | 94,051 | 149,841 | ||||||
Assets held for sale, net | 276,079 | — | ||||||
Total assets | $ | 1,956,910 | $ | 2,089,475 | ||||
Liabilities and Equity | ||||||||
Non-recourse property debt, net | $ | 685,420 | $ | 846,298 | ||||
Non-recourse construction loans, net | 385,240 | 301,443 | ||||||
Total indebtedness | 1,070,660 | 1,147,741 | ||||||
Deferred tax liabilities | 101,457 | 110,284 | ||||||
Lease liabilities - finance leases | 121,845 | 118,697 | ||||||
Dividends payable | 89,182 | — | ||||||
Accrued liabilities and other | 100,849 | 121,143 | ||||||
Liabilities related to assets held for sale, net | 160,620 | — | ||||||
Total liabilities | 1,644,613 | 1,497,865 | ||||||
Redeemable noncontrolling interests in consolidated real estate partnerships | 142,931 | 171,632 | ||||||
Equity: | ||||||||
Common Stock | 1,364 | 1,406 | ||||||
Additional paid-in capital | 425,002 | 464,538 | ||||||
Retained earnings (deficit) | (303,409) | (116,292) | ||||||
Total Aimco equity | 122,957 | 349,652 | ||||||
Noncontrolling interests in consolidated real estate partnerships | 39,560 | 51,265 | ||||||
Common noncontrolling interests in Aimco Operating Partnership | 6,849 | 19,061 | ||||||
Total equity | 169,366 | 419,978 | ||||||
Total liabilities and equity | $ | 1,956,910 | $ | 2,089,475 | ||||
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SOURCE Apartment Investment and Management Company (Aimco)
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