Aimco Reports Third Quarter 2021 Results
Aimco (NYSE: AIV) reported its Q3 2021 results, highlighting a net loss of $0.03 per share compared to a profit of $0.01 in Q3 2020. The company achieved 43.6% Total Shareholder Return year-to-date, with a 6.9% revenue increase year-over-year, totaling $34.6 million. Aimco's occupancy rate reached 97.8%, up 280 basis points year-over-year. The company completed significant investments including $40 million for luxury townhomes and $60 million in property financing, maintaining $413 million in liquidity. Aimco does not plan to pay regular cash dividends, opting to reinvest earnings for growth.
- Total Shareholder Return of 43.6% year-to-date through October 2021.
- Revenue increased by 6.9% year-over-year to $34.6 million.
- Occupancy rate improved to 97.8%, up 280 basis points year-over-year.
- Completed $40 million acquisition of 58 luxury townhomes in Elmhurst, Illinois.
- Maintained $413 million in liquidity, including cash and credit capacity.
- Net loss attributable to common stockholders of $(0.03) per share for Q3 2021.
- Expenses increased by 10.6% year-over-year, primarily due to rising real estate taxes and insurance.
Financial Results and Recent Highlights
-
Net loss attributable to common stockholders per share, on a dilutive basis, was
for the quarter ended$(0.03) September 30, 2021 , compared to net income per share of for the same period in 2020, due primarily to differences from the carve-out of Aimco predecessor prior year expenses.$0.01 -
Aimco Total Shareholder Return was
43.6% year-to-date throughOctober 2021 . -
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
in revenue during the period, up nearly$3.2 million 30% from the second quarter. -
Aimco has re-opened Flamingo Point’s
North Tower , welcoming new residents to the fully renovated waterfront community during the third quarter as planned. -
Aimco acquired, for
, a collection of 58 luxury townhomes in$40 million Elmhurst, Illinois , and benefits from the community’s adjacency to an existing Aimco asset. -
Aimco closed
of property financing and ended the third quarter with$60 million of liquidity, including cash and capacity on its revolving credit facility.$413 million -
Revenue from Aimco’s
Operating Properties was up3.8% from the second quarter and6.9% year-over-year, with occupancy of97.8% , 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
-
At the
North Tower ofFlamingo Point inMiami Beach, Florida , the delivery and occupancy of apartment homes began in the third quarter as planned. Demand has been strong with the property more than50% leased or preleased, six months prior to final completion, at rental rates approximately25% ahead of underwriting. -
At 707 Leahy in
Redwood City, California , stabilized occupancy was achieved during the third quarter slightly earlier than planned, with the property97% leased onSeptember 30, 2021 , at rates meeting underwritten expectations. -
At Prism in
Cambridge, Massachusetts , construction was completed during the first quarter of 2021 and onSeptember 30, 2021 , the property was88% occupied at rents trending in line with our underwritten targets. -
Construction continues on schedule and on budget at
The Benson Hotel andFaculty Club inAurora, Colorado ,Hamilton on theBay inMiami, Florida and Oak Shore (fka. Robin Drive Land) inCorte 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.
-
In the third quarter, Aimco funded a capital call of
associated with the previously announced$12.1 million total passive equity commitment to the life sciences developer, IQHQ, bringing our total investment to$50 million .$24.6 million -
The outstanding balance on Aimco’s mezzanine loan to the partnership that owns
Parkmerced Apartments was , including accrued interest, at the end of the third quarter. Property operations remain consistent with previous reports.$330 million
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:
-
Aimco acquired, for
,$40 million Eldridge Townhomes , a 58-unit townhome community located inElmhurst, Illinois that Aimco developed between 2018 and 2020. As ofSeptember 30, 2021 , the property was98% occupied with average rents of greater than 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.$4,000 -
Aimco acquired two properties adjacent to its
Hamilton on theBay apartment community in Miami’sEdgewater neighborhood, for . Combined with the six properties purchased in the second quarter and land purchased as part of the initial acquisition of$7 million Hamilton on theBay , Aimco can, in total, now construct more than 1.1M square feet of new development in this rapidly growing submarket. -
Aimco entered into a joint venture with
Kushner Companies to purchase three undeveloped land parcels located in downtownFort Lauderdale, Florida . The total contract price for the land is ($49 million at Aimco’s$25 million 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 inJanuary 2022 . -
Aimco purchased seven acres of developable land in
Colorado Springs, Colorado with a contract price of that allows for the construction of 119 apartment homes and townhomes.$4 million
Operating Property Results
Aimco’s Operating Portfolio produced solid results for the quarter ended
|
Third Quarter |
|
|
Year-to-Date |
|
||||||||||||||||||||||||||
|
Year-over-Year |
|
|
Sequential |
|
|
Year-over-Year |
|
|||||||||||||||||||||||
($ 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.
-
In the third quarter, Aimco collected
98.2% of all amounts owed by residents and recognized99.2% of contractual revenue, reserving 80 basis points as bad debt.
-
1001 Brickell Bay Drive , a waterfront office building inMiami, Florida , is owned as part of a larger assemblage containing substantial excess development rights. At the end of the third quarter, the building was73% occupied, and as ofOctober 31, 2021 , the building was80% leased with additional leases being negotiated. ThroughOctober 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
Aimco’s net leverage as of
|
|
as of |
|
|||||
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
. The loans have 10-year terms and a weighted average fixed interest rate of$60 million 3.09% . Proceeds from the loans were used to fund the acquisition ofEldridge Townhomes and other investment activity.
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
About Aimco
Aimco is a diversified real estate company primarily focused on value add, opportunistic, and alternative 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. 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
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.
Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
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 |
|
|
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
[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.
Consolidated Balance Sheets
(in thousands) (unaudited)
|
|
|
|
|
|
|
||
|
|
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 |
|
|
26,481 |
|
|
|
27,436 |
|
Total equity |
|
|
560,529 |
|
|
|
559,091 |
|
Total liabilities and equity |
|
$ |
2,394,195 |
|
|
$ |
1,840,492 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20211109006572/en/
Investor Relations 303-793-4661, investor@aimco.com
Source:
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