Page
Earnings Release | ||
Consolidated Statements of Operations | ||
Consolidated Balance Sheets | ||
Schedule 1a – Funds From Operations (2Q 2012 v. 2Q 2011) | ||
Schedule 1b – Funds From Operations (YTD 2Q 2012 v. YTD 2Q 2011) | ||
Schedule 2 – Portfolio Summary | ||
Schedule 3 – Net Asset Value Supplemental Information | ||
Schedule 4 – Non-Recourse Property Debt Information | ||
Schedule 5 – Share Data | ||
Schedule 6a – Conventional Same Store Operating Results (2Q 2012 v. 2Q 2011) | ||
Schedule 6b – Conventional Same Store Operating Results (2Q 2012 v. 1Q 2012) | ||
Schedule 6c – Conventional Same Store Operating Results (YTD 2Q 2012 v. YTD 2Q 2011) | ||
Schedule 6d – Conventional Same Store Operating Expense Detail | ||
Schedule 7a – Total Conventional Portfolio Data by Market (2Q 2012 v. 2Q 2011) | ||
Schedule 7b – Total Conventional Portfolio Data by Market (1Q 2012 v. Local Market Average) | ||
Schedule 8 – Property Disposition and Acquisition Activity | ||
Schedule 9 – Capital Additions | ||
Schedule 10 – Summary of Redevelopment Activity | ||
Glossary and Reconciliations | ||
Aimco Reports Second Quarter 2012 Results
Denver, Colorado, August 2, 2012 - Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today its second quarter 2012 results.
Chairman and Chief Executive Officer Terry Considine comments: “Aimco enjoyed an excellent second quarter with solid progress on all fronts. Our business remains good with steady customer demand driving higher rents. Our portfolio continues to improve with the sale of lower-rated properties funding accretive redevelopments. Our balance sheet is stronger by $642 million raised in two equity offerings, and the subsequent redemption of $601 million of preferred stock. Our prospects are good as we enter the second half of the year; our Board of Directors agrees, and has increased Aimco's quarterly common stock dividend to $0.20 per share.”
Chief Financial Officer Ernie Freedman adds: “Aimco's recent equity activities, including our common stock offerings and preferred stock redemptions, and the common dividend increase, are expected to increase net annual cash flows by $18 million, and to increase annualized Pro forma FFO and AFFO by $0.04 and $0.12 per share, respectively. These activities have also accelerated progress toward our balance sheet targets. We now expect to achieve our stated Debt and Preferred Stock to EBITDA target of 7.0x in early 2014, or almost two years earlier than anticipated at the beginning of this year, and our EBITDA to Interest and Preferred Stock Dividends target of 2.5x even sooner.”
Financial Results
Second Quarter Pro forma FFO Up 10%, AFFO Up 17%
SECOND QUARTER | YEAR-TO-DATE | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income (loss) per common share | $ | 0.00 | $ | (0.28 | ) | $ | (0.08 | ) | $ | (0.55 | ) | ||||
Funds from Operations (FFO) | $ | 0.38 | $ | 0.29 | $ | 0.78 | $ | 0.68 | |||||||
Add back (deduct) Aimco's share of preferred equity redemption related amounts | $ | 0.08 | $ | (0.02 | ) | $ | 0.08 | $ | (0.02 | ) | |||||
Pro forma Funds from Operations (Pro forma FFO) | $ | 0.46 | $ | 0.27 | $ | 0.86 | $ | 0.66 | |||||||
Deduct Aimco's share of Capital Replacements | $ | (0.12 | ) | $ | (0.13 | ) | $ | (0.23 | ) | $ | (0.23 | ) | |||
Adjusted Funds From Operations (AFFO) | $ | 0.34 | $ | 0.14 | $ | 0.63 | $ | 0.43 | |||||||
Second quarter and year-to-date 2011 financial results include a deduction of $0.15 per share related to debt prepayment penalties and write-off of deferred loan costs incurred in connection with a refinancing and securitization transaction during that period. Excluding these charges, comparable second quarter and year-to-date Pro forma FFO and AFFO were $0.42 per share and $0.29 per share, respectively.
Pro forma FFO - Pro forma FFO increased 10% when compared to second quarter 2011, excluding the charges described above. Increased Pro forma FFO is the result of: improved property operating results; additional income generated by investments in partnership tenders and mergers; and interest expense savings due to refinancing maturing property debt at lower average interest rates. Pro forma FFO exceeded the high end of Aimco's guidance for the quarter by $0.03 per share, primarily due to higher than expected property revenue growth, lower than anticipated property expenses, and lower than anticipated casualty losses.
Adjusted Funds from Operations - AFFO increased 17% when compared to second quarter 2011, excluding the charges described above. Capital Replacements continue to decline year-over-year in line with the reduced number of apartment units as Aimco's portfolio is concentrated in fewer properties, generating AFFO growth in excess of Pro forma FFO growth.
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Property Operations
Aimco's property operations consist primarily of Conventional real estate operations, which relate to Aimco's diversified portfolio of market-rate apartment communities and include Same Store Properties, Redevelopment Properties, Acquisition Properties and Other Properties.
Aimco also operates a portfolio of Affordable Properties. Aimco's Affordable real estate operations consist of properties with rents that are generally paid, in whole or in part, by a government agency. Over the next four to five years, Aimco expects to dispose of these properties and reinvest capital in its Conventional portfolio.
In order to ensure comparability between periods, property operating results below are based on Aimco's ownership interest as of June 30, 2012. See the Glossary for definitions and reconciliation of non-GAAP measures.
Total Same Store NOI Up 6.1% for Second Quarter and Year-Over-Year
SECOND QUARTER Year-over-Year | YEAR-TO-DATE Year-over-Year | ||||||
% NOI | Revenue | Expenses | NOI | Revenue | Expenses | NOI | |
Conventional Same Store | 82% | 4.6% | 2.4% | 5.9% | 4.4% | 1.0% | 6.3% |
Affordable Same Store | 12% | 4.3% | 0.6% | 7.0% | 3.7% | 2.7% | 4.4% |
Total Same Store | 94% | 4.6% | 2.1% | 6.1% | 4.3% | 1.3% | 6.1% |
Conventional Same Store Results
SECOND QUARTER | YEAR-TO-DATE | ||||||||||||||||||||||||
Year-over-Year | Sequential | Year-over-Year | |||||||||||||||||||||||
2012 | 2011 | Variance | 1st Qtr | Variance | 2012 | 2011 | Variance | ||||||||||||||||||
Average Rent Per Unit | $ | 1,140 | $ | 1,091 | 4.5 | % | $ | 1,126 | 1.2 | % | $ | 1,133 | $ | 1,085 | 4.4 | % | |||||||||
Other Income Per Unit | 136 | 122 | 11.5 | % | 129 | 5.4 | % | 132 | 122 | 8.2 | % | ||||||||||||||
Average Revenue Per Unit | $ | 1,276 | $ | 1,213 | 5.2 | % | $ | 1,255 | 1.7 | % | $ | 1,265 | $ | 1,207 | 4.8 | % | |||||||||
Average Daily Occupancy | 95.5 | % | 95.9 | % | -0.4 | % | 96.0 | % | -0.5 | % | 95.7 | % | 96.2 | % | -0.5 | % | |||||||||
$ in Millions | |||||||||||||||||||||||||
Revenue | $ | 192.2 | $ | 183.6 | 4.6 | % | $ | 190.2 | 1.0 | % | $ | 382.4 | $ | 366.3 | 4.4 | % | |||||||||
Expenses | (68.0 | ) | (66.4 | ) | 2.4 | % | (67.5 | ) | 0.6 | % | (135.5 | ) | (134.2 | ) | 1.0 | % | |||||||||
NOI | $ | 124.2 | $ | 117.2 | 5.9 | % | $ | 122.7 | 1.2 | % | $ | 246.9 | $ | 232.1 | 6.3 | % | |||||||||
Rental Rates Rising
2012 | 1st Qtr | Apr | May | Jun | 2nd Qtr | Year-to-Date |
New lease increases | 2.0% | 4.8% | 4.7% | 3.8% | 4.3% | 3.4% |
Renewal increases | 5.1% | 5.6% | 5.4% | 6.1% | 5.7% | 5.4% |
Weighted average | 3.4% | 5.1% | 5.1% | 4.8% | 5.0% | 4.3% |
Affordable Same Store Results - For second quarter 2012, average month-end occupancy for the Affordable portfolio was 98.6%, an increase of 0.9% from second quarter 2011, while average revenue per unit increased 3.4% from $935 to $967 per unit.
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Refer to Supplemental Schedules 6a through 6d for additional details on Conventional Same Store operating results.
Portfolio Management
Aimco's portfolio strategy focuses on B/B+ quality conventional apartment communities located in the largest U.S. markets as measured by total apartment value.
Aimco measures Conventional Property asset quality based on average rents compared to local market average rents as reported by REIS, a third-party provider of commercial real estate performance information and analysis. Aimco defines asset quality as follows: A-quality assets are those with rents greater than 125% of local market average; B-quality assets are those with rents 90% to 125% of local market average; and C-quality assets are those with rents less than 90% of local market average. For first quarter 2012, the most recent period for which REIS information is available, Aimco's Conventional Property rents averaged approximately 101% of local market average rents, down from 102% in fourth quarter 2011.
Aimco's target markets are primarily coastal markets, and also include several Sun Belt cities and Chicago, Illinois. In executing Aimco's portfolio strategy, the company expects to sell each year the lowest-rated 5% to 10% of its portfolio and to invest the proceeds from such sales in higher-quality properties in its target markets through redevelopment and acquisitions.
By selling each year the lowest-rated 5% to 10% of its portfolio, Aimco expects its year-end portfolio average revenue per unit to increase at a rate that is approximately 4% to 5% greater than annual market rent growth.
Conventional Property Revenue per Unit Up 8.1% to $1,290
Second quarter 2012 Conventional portfolio average revenue per unit was $1,290, an 8.1% increase compared to second quarter 2011, as a result of year-over-year revenue growth of 4.7% and the sale of Conventional Properties during 2011 and 2012 with average revenues per unit substantially lower than those of the retained portfolio.
Aimco expects fourth quarter 2012 Conventional portfolio revenue per unit to average approximately $1,370, an increase of 9% compared to fourth quarter 2011, with approximately half of the increase generated by market rent growth and half the result of sales of lower-rent properties.
Dispositions - In second quarter 2012, Aimco sold five Conventional Properties and 11 Affordable Properties with 1,151 and 1,082 units, respectively, for $122.4 million in gross proceeds. Average revenue per unit for the Conventional Properties sold during the quarter was $825, compared to the retained portfolio average of $1,290 per unit. Aimco's share of net sales proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $48.3 million.
During 2012, Aimco expects to continue to upgrade its portfolio by selling more than 25 Conventional Properties and more than 60 Affordable Properties. Aimco has discussed previously the potential acceleration of portfolio upgrades by selling in 2012 properties otherwise expected to be sold in 2013 and 2014. Aimco's portfolio strategy and targets remain unchanged and these properties continue to be listed for sale in portfolios and/or as individual asset sales. With the recent redemptions of its high-cost preferred stocks, an immediate use of proceeds from such an acceleration of future sales no longer exists; however, should an opportunity arise to put to use proceeds from sales of these assets on a value-accretive basis, Aimco will give further consideration to accelerating its disposition plans.
Acquisitions - During the second quarter, Aimco acquired for $38.9 million a 42-unit property located in the Chelsea neighborhood of Manhattan. The acquisition was funded in part using $20.0 million of newly placed non-recourse property debt with a 3.95% fixed interest rate, and in part by the tax-free exchange of proceeds from the sale of lower-rated properties. The property's average revenue per unit is approximately $4,000, and its average rents are approximately 38% greater than the local market average.
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See Supplemental Schedules 7a and 7b for additional details regarding Aimco's Conventional portfolio quality and capital allocation, and Supplemental Schedule 8 for information related to disposition and acquisition activity.
Redevelopment
During the second quarter, Aimco began the construction of 28 new townhomes on a vacant land parcel at its Elm Creek property located in Chicago. Aimco expects to invest $9.9 million in the development and first occupancy is anticipated in the fourth quarter 2012. Current market rents for comparable product are estimated to average approximately $2,950 per unit.
During 2012, Aimco expects to invest $125 to $150 million in redevelopment projects at a total of ten properties. Construction is currently underway at five of these properties including: Elm Creek; Pacific Bay Vistas in San Bruno, California; The Palazzo in West Los Angeles; Flamingo South Beach in Miami; and Plantation Gardens in Plantation, Florida. Aimco completed Phase I of the redevelopment of Lincoln Place in Venice, California during the second quarter and expects to start Phases II and III during the second half of 2012. The projects at Flamingo South Beach and Plantation Gardens are expected to be completed by year-end.
During the balance of 2012, multi-year redevelopment projects are expected to begin at: 2900 on First in Seattle; Park Towne Place and The Sterling, both located in Center-City Philadelphia; and The Preserve at Marin in the San Francisco Bay Area. Over the next few years, Aimco expects to invest approximately $400 million in these ten projects and, based on current market rents, generate average initial cash returns greater than 7% and average Free Cash Flow Internal Rates of Return in excess of 10%.
See Supplemental Schedule 10 for additional details regarding Aimco's redevelopment activities.
Balance Sheet and Liquidity
Components of Aimco Leverage
AS OF JUNE 30, 2012 | ||||||
$ in Millions | Amount | % of Total | Weighted Avg Maturity (Yrs) | Weighted Avg Rate | ||
Aimco's share of long-term, non-recourse property debt | $ | 4,765.1 | 91% | 7.6 | 5.45% | |
Preferred securities (including $300 million called for redemption) | 448.4 | 9% | Perpetual | 7.26% | ||
Total leverage | $ | 5,213.5 | 100% | n/a | 5.60% | |
Debt Ratios
Aimco's leverage targets are: Debt and Preferred Equity to EBITDA of less than 7.0x; and EBITDA Coverage of Interest and Preferred Dividends of greater than 2.5x. In measuring leverage, Aimco also focuses on Debt to EBITDA and EBITDA Coverage of Interest ratios. See the Glossary for definitions of these metrics.
Trailing- Twelve- Month | Annualized 2nd Qtr | Expected Annualized 4th Qtr 2012 | |||
2012 | 2011 | 2012 | 2011 | ||
Debt to EBITDA | 8.2x | 8.4x | 7.9x | 8.3x | 7.5x |
Debt and Preferred Equity to EBITDA | 8.5x | 9.8x | 8.2x | 9.7x | 7.7x |
EBITDA Coverage of Interest | 2.2x | 2.1x | 2.3x | 2.2x | 2.5x |
EBITDA Coverage of Interest and Preferred Dividends | 2.1x | 1.7x | 2.2x | 1.8x | 2.3x |
2012 ratios are provided on a pro forma basis, taking into account the impacts of Aimco's equity activities in the second quarter and July.
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Aimco made significant progress toward its stated leverage targets with the redemption of $300.9 million of preferred stock during the second quarter 2012, and redemption of an additional $300.0 million of preferred stock in July. As a result of these redemptions, Aimco now expects to achieve its leverage targets by early 2014, two years earlier than anticipated at the beginning of 2012. Future leverage reduction is expected from earnings growth generated by the current portfolio and by regularly scheduled property debt amortization from retained earnings.
Liquidity
Aimco's recourse debt at June 30, 2012, was limited to its revolving credit facility, which Aimco uses for working capital purposes and to secure letters of credit. At the end of second quarter, Aimco had no outstanding borrowings on its revolving credit facility and available capacity was $473.0 million, net of $27.0 million of letters of credit backed by the facility. At the end of the quarter, Aimco had on hand $312.9 million of unrestricted cash, $300.0 million of which was used to redeem preferred stock in July, and $65.1 million in unfunded commitments to fund redevelopment investments.
See Supplemental Schedule 4 for additional details about Aimco's non-recourse property debt and Supplemental Schedule 5 for information related to Aimco's preferred securities.
Equity Activity
Common Stock Offerings - During second quarter 2012, Aimco completed two public offerings resulting in the sale of 20,794,200 shares of its Common Stock generating net proceeds of $558.6 million, or $26.86 per share. Additionally, pursuant to an option granted to underwriters of the June equity offering, Aimco sold in July 1,350,000 shares of Common Stock for net proceeds of $36.1 million, or $26.74 per share. In connection with these Common Stock offerings, the holders of near-term expiring stock options exercised 2,041,934 stock options with a weighted average exercise price of $23.01 per option for proceeds to Aimco of $47.0 million. The shares received upon exercise were then sold by the stockholders as part of the public offerings described above. In total, Aimco issued 24.2 million shares of its Common Stock generating net proceeds of $641.7 million, or an average of $26.53 per share.
Preferred Stock Redemptions - Also during second quarter, using the proceeds from the May equity offering, Aimco redeemed for $300.9 million all of the outstanding shares of its Class T, Class V, and Class Y Cumulative Preferred Stock. In connection with these redemptions, Aimco wrote off previously deferred issuance costs totaling $10.5 million. In June, Aimco called for redemption its Class U Cumulative Preferred Stock and, in July, using the proceeds from the June equity offering, Aimco redeemed all of the outstanding shares and wrote off an additional $10.1 million of previously deferred issuance costs, which will be recognized in the third quarter.
Dividend - As announced on August 1, 2012, Aimco's Board of Directors declared a quarterly cash dividend of $0.20 per share of Class A Common Stock for the quarter ended June 30, 2012, which, on an annualized basis, is a 67% increase compared to the dividends paid during 2011. The second quarter 2012 dividend is payable on August 31, 2012, to stockholders of record on August 17, 2012.
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2012 Outlook
$ in Millions (except per share amounts) | THIRD QUARTER | CURRENT FULL YEAR | PREVIOUS FULL YEAR |
Net loss per share | -$0.18 to -$0.14 | -$0.29 to -$0.22 | -$0.64 to -$0.56 |
Pro forma FFO per share | $0.43 to $0.47 | $1.78 to $1.86 | $1.76 to $1.84 |
AFFO per share | $1.30 to $1.38 | $1.24 to $1.34 | |
Conventional Same Store Operating Measures | |||
NOI change compared to second quarter 2012 | 0.0% to 1.0% | ||
NOI change compared to same period 2011 | 6.5% to 7.5% | 6.0% to 7.0% | 5.5% to 7.5% |
Revenue change compared to 2011 | 4.75% to 5.25% | 4.5% to 5.5% | |
Expense change compared to 2011 | 2.0% to 2.5% | 2.25% to 2.75% | |
Average daily occupancy | 95.5% to 96.0% | 95.5% to 96.0% | |
Affordable Same Store NOI change compared to 2011 | 2.5% to 3.5% | 0.5% to 1.5% | |
Total Same Store NOI change compared to 2011 | 5.5% to 6.5% | 5.00% to 6.75% | |
Asset Management and Tax Credit Activities | |||
Recurring Revenues | $30 | $30 | |
Recurring Expenses | $5 | $5 | |
Non-Recurring Revenues | $6 | $6 | |
Non-Recurring Expenses, including pursuit costs of $1.5 | $4 | $3 | |
Offsite Costs | |||
Property Management Expenses | $35 | $35 | |
General and Administrative Expenses | $47 | $47 | |
Capital Expenditures | |||
Conventional Redevelopment | $125 - $150 | $125 - $150 | |
Property Upgrades | $30 - $40 | $30 - $40 | |
Transaction Activities (Aimco Share) | |||
Acquisitions (100% Aimco Share) | $130 | $130 | |
Real Estate Value of Partnership Tenders and Mergers | $160 | $160 | |
Dispositions, before transaction expenses and repayment of property debt | $600 - $700 | $550 - 650 | |
As described elsewhere in this Earnings Release, Aimco adds back to FFO preferred stock redemption related amounts in its computation of Pro forma FFO as well as AFFO.
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Earnings Conference Call
Friday, August 3, 2012 at 1:00 p.m. EDT | Replay available until 9:00 a.m. EDT on August 20, 2012 |
Domestic Dial-In Number: 1-866-843-0890 | Domestic Dial-In Number: 1-877-344-7529 |
International Dial-In Number: 1-412-317-9250 | International Dial-In Number: 1-412-317-0088 |
Passcode: 1368119 | Passcode: 10016013 |
Live webcast and replay: http://www.aimco.com/investors/events-presentations/webcasts
Supplemental Information
The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco's website http://www.aimco.com/investors/financial-reports/quarterly-earning-reports.
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 not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. These measures are defined in the glossary in the Supplemental Information and, where appropriate, reconciled to the most comparable GAAP measures.
Forward-looking Statements
This Earnings Release and Supplemental Information contain forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically forecasts of third quarter and full year 2012 results. These forward-looking statements are based on management's judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to: Aimco's ability to maintain current or meet projected occupancy, rental rates and property operating results; the effect of acquisitions, dispositions and redevelopments; and our ability to comply with debt covenants, including financial coverage ratios. Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond the control of Aimco, including, without limitation: financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; real estate 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 terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; the timing of acquisitions, dispositions and redevelopments; insurance risk, including the cost of insurance; natural disasters and severe weather such as hurricanes; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; energy costs; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by Aimco. 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 and depends on our ability to meet the various requirements imposed by the Internal Revenue 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, 2011, and the other documents Aimco files from time to time with the Securities and Exchange Commission. These forward-looking statements reflect management's judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances. This press release does not constitute an offer of securities for sale.
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About Aimco
Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the largest markets in the United States. Aimco is one of the country's largest owners and operators of apartments, with 344 communities serving approximately 250,000 residents in 30 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.
Contact
Elizabeth Coalson, Vice President Investor Relations
Investor Relations 303-691-4350, investor@aimco.com
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Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data) (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
REVENUES: | ||||||||||||||||
Rental and other property revenues | $ | 261,958 | $ | 251,715 | $ | 522,974 | $ | 501,933 | ||||||||
Asset management and tax credit revenues | 8,914 | 7,651 | 16,985 | 16,887 | ||||||||||||
Total revenues | 270,872 | 259,366 | 539,959 | 518,820 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Property operating expenses | 105,875 | 106,409 | 212,118 | 219,289 | ||||||||||||
Investment management expenses | 3,240 | 2,111 | 6,628 | 5,087 | ||||||||||||
Depreciation and amortization | 93,052 | 86,964 | 185,380 | 178,881 | ||||||||||||
Provision for real estate impairment losses | 6,707 | — | 13,071 | — | ||||||||||||
General and administrative expenses | 13,556 | 12,448 | 25,181 | 23,629 | ||||||||||||
Other expense, net | 427 | 4,922 | 6,689 | 8,787 | ||||||||||||
Total operating expenses | 222,857 | 212,854 | 449,067 | 435,673 | ||||||||||||
Operating income | 48,015 | 46,512 | 90,892 | 83,147 | ||||||||||||
Interest income | 2,477 | 1,967 | 5,031 | 3,973 | ||||||||||||
Interest expense | (64,255 | ) | (92,911 | ) | (133,421 | ) | (164,495 | ) | ||||||||
Equity in losses of unconsolidated real estate partnerships | (2,242 | ) | (1,798 | ) | (3,005 | ) | (3,446 | ) | ||||||||
Gain on dispositions of interests in unconsolidated real estate and other, net | 4,314 | 808 | 4,602 | 2,020 | ||||||||||||
Loss before income taxes and discontinued operations | (11,691 | ) | (45,422 | ) | (35,901 | ) | (78,801 | ) | ||||||||
Income tax benefit | 230 | 1,859 | 468 | 4,020 | ||||||||||||
Loss from continuing operations | (11,461 | ) | (43,563 | ) | (35,433 | ) | (74,781 | ) | ||||||||
Income from discontinued operations, net | 45,592 | 16,592 | 80,211 | 20,533 | ||||||||||||
Net income (loss) | 34,131 | (26,971 | ) | 44,778 | (54,248 | ) | ||||||||||
Noncontrolling interests: | ||||||||||||||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | (9,665 | ) | 2,771 | (17,430 | ) | 10,076 | ||||||||||
Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership | (1,611 | ) | (1,671 | ) | (3,281 | ) | (3,342 | ) | ||||||||
Net (income) loss attributable to common noncontrolling interests in Aimco Operating Partnership | (55 | ) | 2,420 | 682 | 4,803 | |||||||||||
Total noncontrolling interests | (11,331 | ) | 3,520 | (20,029 | ) | 11,537 | ||||||||||
Net income (loss) attributable to Aimco | 22,800 | (23,451 | ) | 24,749 | (42,711 | ) | ||||||||||
Net income attributable to Aimco preferred stockholders | (22,182 | ) | (9,672 | ) | (34,621 | ) | (22,128 | ) | ||||||||
Net income attributable to participating securities | (95 | ) | (54 | ) | (214 | ) | (111 | ) | ||||||||
Net income (loss) attributable to Aimco common stockholders | $ | 523 | $ | (33,177 | ) | $ | (10,086 | ) | $ | (64,950 | ) | |||||
Weighted average common shares outstanding - basic and diluted | 127,395 | 119,156 | 123,960 | 118,238 | ||||||||||||
Earnings (loss) per common share - basic and diluted: | ||||||||||||||||
Loss from continuing operations attributable to Aimco common stockholders | $ | (0.30 | ) | $ | (0.36 | ) | $ | (0.60 | ) | $ | (0.67 | ) | ||||
Income from discontinued operations attributable to Aimco common stockholders | 0.30 | 0.08 | 0.52 | 0.12 | ||||||||||||
Net income (loss) attributable to Aimco common stockholders | $ | — | $ | (0.28 | ) | $ | (0.08 | ) | $ | (0.55 | ) | |||||
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Consolidated Statements of Operations (continued) | ||||||||||||||||
Income from Discontinued Operations | ||||||||||||||||
Income from discontinued operations consists of the following (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Rental and other property revenues | $ | 2,729 | $ | 25,687 | $ | 10,377 | $ | 54,768 | ||||||||
Property operating expenses | 1,598 | (13,438 | ) | (2,479 | ) | (28,263 | ) | |||||||||
Depreciation and amortization | (1,534 | ) | (8,767 | ) | (4,618 | ) | (18,300 | ) | ||||||||
Provision for real estate impairment losses | (1,341 | ) | (2,452 | ) | (1,662 | ) | (6,307 | ) | ||||||||
Operating income | 1,452 | 1,030 | 1,618 | 1,898 | ||||||||||||
Interest income | 54 | 513 | 108 | 789 | ||||||||||||
Interest expense | 1,180 | (4,814 | ) | (97 | ) | (9,912 | ) | |||||||||
Income (loss) before gain on dispositions of real estate and income taxes | 2,686 | (3,271 | ) | 1,629 | (7,225 | ) | ||||||||||
Gain on dispositions of real estate | 48,518 | 19,716 | 84,211 | 27,434 | ||||||||||||
Income tax (expense) benefit | (5,612 | ) | 147 | (5,629 | ) | 324 | ||||||||||
Income from discontinued operations, net | $ | 45,592 | $ | 16,592 | $ | 80,211 | $ | 20,533 | ||||||||
Income from discontinued operations attributable to: | ||||||||||||||||
Noncontrolling interests in consolidated real estate partnerships | $ | (4,754 | ) | $ | (6,755 | ) | $ | (11,623 | ) | $ | (5,370 | ) | ||||
Noncontrolling interests in Aimco Operating Partnership | (2,670 | ) | (655 | ) | (4,424 | ) | (1,013 | ) | ||||||||
Total noncontrolling interests | (7,424 | ) | (7,410 | ) | (16,047 | ) | (6,383 | ) | ||||||||
Income from discontinued operations attributable to Aimco | $ | 38,168 | $ | 9,182 | $ | 64,164 | $ | 14,150 | ||||||||
| 10 |
Consolidated Balance Sheets | ||||||||
(in thousands) (unaudited) | ||||||||
June 30, 2012 | December 31, 2011 | |||||||
ASSETS | ||||||||
Buildings and improvements | $ | 6,773,507 | $ | 6,635,497 | ||||
Land | 2,060,115 | 2,028,468 | ||||||
Total real estate | 8,833,622 | 8,663,965 | ||||||
Accumulated depreciation | (2,888,828 | ) | (2,751,043 | ) | ||||
Net real estate | 5,944,794 | 5,912,922 | ||||||
Cash and cash equivalents | 312,964 | 91,066 | ||||||
Restricted cash | 168,864 | 185,811 | ||||||
Accounts receivable, net | 35,592 | 41,796 | ||||||
Notes receivable, net | 102,798 | 111,205 | ||||||
Investment in unconsolidated real estate partnerships | 34,400 | 47,790 | ||||||
Other assets | 338,664 | 344,226 | ||||||
Assets held for sale | 9,030 | 137,046 | ||||||
Total assets | $ | 6,947,106 | $ | 6,871,862 | ||||
LIABILITIES AND EQUITY | ||||||||
Non-recourse property debt | $ | 5,090,443 | $ | 5,057,296 | ||||
Accounts payable | 27,054 | 32,607 | ||||||
Accrued liabilities and other | 238,271 | 284,420 | ||||||
Deferred income | 133,097 | 139,821 | ||||||
Liabilities related to assets held for sale | 8,618 | 129,660 | ||||||
Total liabilities | 5,497,483 | 5,643,804 | ||||||
Preferred noncontrolling interests in Aimco Operating Partnership | 80,401 | 83,384 | ||||||
Equity: | ||||||||
Perpetual Preferred Stock | 366,216 | 657,114 | ||||||
Class A Common Stock | 1,442 | 1,209 | ||||||
Additional paid-in capital | 3,683,764 | 3,098,333 | ||||||
Accumulated other comprehensive loss | (6,292 | ) | (6,860 | ) | ||||
Distributions in excess of earnings | (2,897,490 | ) | (2,841,467 | ) | ||||
Total Aimco equity | 1,147,640 | 908,329 | ||||||
Noncontrolling interests in consolidated real estate partnerships | 258,647 | 270,666 | ||||||
Common noncontrolling interests in Aimco Operating Partnership | (37,065 | ) | (34,321 | ) | ||||
Total equity | 1,369,222 | 1,144,674 | ||||||
Total liabilities and equity | $ | 6,947,106 | $ | 6,871,862 | ||||
| 11 |
Supplemental Schedule 1(a) | ||||||||||||||||||||||||||||||||
Funds From Operations | (Page 1 of 2) | |||||||||||||||||||||||||||||||
Three Months Ended June 30, 2012 Compared to Three Months Ended June 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands, except per share data) (unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2012 | Three Months Ended June 30, 2011 | |||||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | |||||||||||||||||||||||||
Real estate operations: | ||||||||||||||||||||||||||||||||
Rental and other property revenues | ||||||||||||||||||||||||||||||||
Conventional Same Store | $ | 201,700 | $ | — | $ | (9,284 | ) | $ | 192,416 | $ | 193,529 | $ | — | $ | (13,687 | ) | $ | 179,842 | ||||||||||||||
Affordable Same Store | 37,655 | 176 | (7,587 | ) | 30,244 | 36,165 | 170 | (7,349 | ) | 28,986 | ||||||||||||||||||||||
Total Same Store | 239,355 | 176 | (16,871 | ) | 222,660 | 229,694 | 170 | (21,036 | ) | 208,828 | ||||||||||||||||||||||
Other Conventional | 17,023 | 2,057 | — | 19,080 | 16,409 | 1,189 | — | 17,598 | ||||||||||||||||||||||||
Other Affordable | 5,464 | 5,238 | (8,573 | ) | 2,129 | 5,335 | 8,645 | (11,267 | ) | 2,713 | ||||||||||||||||||||||
Property management revenues, primarily from affiliates | 116 | (158 | ) | 1,098 | 1,056 | 277 | (158 | ) | 1,270 | 1,389 | ||||||||||||||||||||||
Total rental and other property revenues | 261,958 | 7,313 | (24,346 | ) | 244,925 | 251,715 | 9,846 | (31,033 | ) | 230,528 | ||||||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||||||||||
Conventional Same Store | 71,121 | — | (3,259 | ) | 67,862 | 69,664 | — | (5,137 | ) | 64,527 | ||||||||||||||||||||||
Affordable Same Store | 14,808 | 108 | (3,070 | ) | 11,846 | 14,757 | 119 | (3,137 | ) | 11,739 | ||||||||||||||||||||||
Total Same Store | 85,929 | 108 | (6,329 | ) | 79,708 | 84,421 | 119 | (8,274 | ) | 76,266 | ||||||||||||||||||||||
Other Conventional | 7,837 | 1,135 | — | 8,972 | 7,313 | 777 | — | 8,090 | ||||||||||||||||||||||||
Other Affordable | 3,314 | 3,625 | (5,736 | ) | 1,203 | 2,867 | 5,891 | (7,133 | ) | 1,625 | ||||||||||||||||||||||
Casualties | 98 | — | (71 | ) | 27 | 1,322 | — | 326 | 1,648 | |||||||||||||||||||||||
Property management expenses | 8,697 | — | — | 8,697 | 10,486 | — | — | 10,486 | ||||||||||||||||||||||||
Total property operating expenses | 105,875 | 4,868 | (12,136 | ) | 98,607 | 106,409 | 6,787 | (15,081 | ) | 98,115 | ||||||||||||||||||||||
Net real estate operations | 156,083 | 2,445 | (12,210 | ) | 146,318 | 145,306 | 3,059 | (15,952 | ) | 132,413 | ||||||||||||||||||||||
Amortization of deferred tax credit income | 7,431 | — | — | 7,431 | 7,063 | — | — | 7,063 | ||||||||||||||||||||||||
Asset management revenues | — | — | 819 | 819 | 269 | — | 415 | 684 | ||||||||||||||||||||||||
Non-recurring revenues | 1,483 | — | — | 1,483 | 319 | — | (22 | ) | 297 | |||||||||||||||||||||||
Total asset management and tax credit revenues | 8,914 | — | 819 | 9,733 | 7,651 | — | 393 | 8,044 | ||||||||||||||||||||||||
Investment management expenses | (3,240 | ) | — | — | (3,240 | ) | (2,111 | ) | — | — | (2,111 | ) | ||||||||||||||||||||
Depreciation and amortization related to non-real estate assets | (3,352 | ) | 2 | 27 | (3,323 | ) | (3,218 | ) | (1 | ) | 32 | (3,187 | ) | |||||||||||||||||||
General and administrative expenses | (13,556 | ) | (2 | ) | 116 | (13,442 | ) | (12,448 | ) | (1 | ) | 283 | (12,166 | ) | ||||||||||||||||||
Other expense, net | (427 | ) | — | 726 | 299 | (4,922 | ) | 102 | 2,785 | (2,035 | ) | |||||||||||||||||||||
Interest income | 2,477 | 7 | 155 | 2,639 | 1,967 | (59 | ) | (455 | ) | 1,453 | ||||||||||||||||||||||
Interest expense | (64,255 | ) | (1,490 | ) | 610 | (65,135 | ) | (92,911 | ) | (2,075 | ) | 12,144 | (82,842 | ) | ||||||||||||||||||
Gain (loss) on disposition of non-depreciable assets and other | 208 | — | — | 208 | (68 | ) | — | — | (68 | ) | ||||||||||||||||||||||
Income tax benefit | 268 | — | — | 268 | 1,841 | — | — | 1,841 | ||||||||||||||||||||||||
Discontinued operations, net of non-FFO items | 5,690 | — | (4,341 | ) | 1,349 | 8,142 | — | (586 | ) | 7,556 | ||||||||||||||||||||||
Preferred dividends and distributions | (13,264 | ) | — | — | (13,264 | ) | (14,092 | ) | — | — | (14,092 | ) | ||||||||||||||||||||
Preferred redemption related amounts | (10,530 | ) | — | — | (10,530 | ) | 2,749 | — | — | 2,749 | ||||||||||||||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (3,280 | ) | — | — | (3,280 | ) | (2,609 | ) | — | — | (2,609 | ) | ||||||||||||||||||||
Amounts allocated to participating securities | (196 | ) | — | — | (196 | ) | (138 | ) | — | — | (138 | ) | ||||||||||||||||||||
Funds From Operations | $ | 61,540 | $ | 962 | $ | (14,098 | ) | $ | 48,404 | $ | 35,139 | $ | 1,025 | $ | (1,356 | ) | $ | 34,808 | ||||||||||||||
Preferred stock redemption related amounts | 10,530 | — | — | 10,530 | (2,749 | ) | — | — | (2,749 | ) | ||||||||||||||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (679 | ) | — | — | (679 | ) | 187 | — | — | 187 | ||||||||||||||||||||||
Amounts allocated to participating securities | (40 | ) | — | — | (40 | ) | 10 | — | — | 10 | ||||||||||||||||||||||
Pro forma Funds From Operations | $ | 71,351 | $ | 962 | $ | (14,098 | ) | $ | 58,215 | $ | 32,587 | $ | 1,025 | $ | (1,356 | ) | $ | 32,256 | ||||||||||||||
Weighted average shares - diluted FFO | 127,807 | Weighted average shares - diluted FFO | 119,484 | |||||||||||||||||||||||||||||
Per Share: | Per Share: | |||||||||||||||||||||||||||||||
Funds From Operations | $ | 0.38 | Funds From Operations | $ | 0.29 | |||||||||||||||||||||||||||
Pro forma Funds From Operations | $ | 0.46 | Pro forma Funds From Operations | $ | 0.27 | |||||||||||||||||||||||||||
| 12 | |
Supplemental Schedule 1(a) (continued) | ||||||||||||||||||||||||||||||||
Pro Forma Funds From Operations Reconciliation to GAAP | (Page 2 of 2) | |||||||||||||||||||||||||||||||
Three Months Ended June 30, 2012 Compared to Three Months Ended June 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2012 | Three Months Ended June 30, 2011 | |||||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | |||||||||||||||||||||||||
Pro forma Funds From Operations | $ | 71,351 | $ | 962 | $ | (14,098 | ) | $ | 58,215 | $ | 32,587 | $ | 1,025 | $ | (1,356 | ) | $ | 32,256 | ||||||||||||||
Adjustments related to continuing operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | (93,052 | ) | (2,072 | ) | 7,870 | (87,254 | ) | (86,964 | ) | (2,825 | ) | 9,815 | (79,974 | ) | ||||||||||||||||||
Depreciation and amortization related to non-real estate assets | 3,352 | (2 | ) | (27 | ) | 3,323 | 3,218 | 1 | (32 | ) | 3,187 | |||||||||||||||||||||
Provision for impairment losses on depreciable assets | (6,915 | ) | (2,503 | ) | 2,503 | (6,915 | ) | — | (1,014 | ) | 1,014 | — | ||||||||||||||||||||
Gain on dispositions of and impairments related to unconsolidated entities and other, net of tax | 4,276 | 1,373 | (5,349 | ) | 300 | 878 | 1,015 | (1,238 | ) | 655 | ||||||||||||||||||||||
Adjustments related to discontinued operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization related to real estate | (1,494 | ) | — | 222 | (1,272 | ) | (8,716 | ) | — | 1,678 | (7,038 | ) | ||||||||||||||||||||
Provision for operating real estate impairment losses, net of tax | (1,341 | ) | — | 1,410 | 69 | (2,452 | ) | — | (415 | ) | (2,867 | ) | ||||||||||||||||||||
Gain on dispositions of real estate, net of tax | 42,738 | — | (2,196 | ) | 40,542 | 19,634 | — | (6,695 | ) | 12,939 | ||||||||||||||||||||||
Total adjustments | $ | (52,436 | ) | $ | (3,204 | ) | $ | 4,433 | $ | (51,207 | ) | $ | (74,402 | ) | $ | (2,823 | ) | $ | 4,127 | $ | (73,098 | ) | ||||||||||
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments | 3,904 | — | — | 3,904 | 4,842 | — | — | 4,842 | ||||||||||||||||||||||||
Amounts allocable to participating securities | 141 | — | — | 141 | 74 | — | — | 74 | ||||||||||||||||||||||||
Preferred stock redemption related amounts | (10,530 | ) | — | — | (10,530 | ) | 2,749 | — | — | 2,749 | ||||||||||||||||||||||
Equity in losses of unconsolidated real estate partnerships | (2,242 | ) | 2,242 | — | — | (1,798 | ) | 1,798 | — | — | ||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | (9,665 | ) | — | 9,665 | — | 2,771 | — | (2,771 | ) | — | ||||||||||||||||||||||
Net loss attributable to Aimco common stockholders | $ | 523 | $ | — | $ | — | $ | 523 | $ | (33,177 | ) | $ | — | $ | — | $ | (33,177 | ) | ||||||||||||||
| 13 | |
Supplemental Schedule 1(b) | ||||||||||||||||||||||||||||||||
Funds From Operations | (Page 1 of 2) | |||||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands, except per share data) (unaudited) | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | |||||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | |||||||||||||||||||||||||
Real estate operations: | ||||||||||||||||||||||||||||||||
Rental and other property revenues | ||||||||||||||||||||||||||||||||
Conventional Same Store | $ | 401,335 | $ | — | $ | (20,298 | ) | $ | 381,037 | $ | 385,829 | $ | — | $ | (28,568 | ) | $ | 357,261 | ||||||||||||||
Affordable Same Store | 74,966 | 362 | (15,094 | ) | 60,234 | 72,281 | 332 | (14,535 | ) | 58,078 | ||||||||||||||||||||||
Total Same Store | 476,301 | 362 | (35,392 | ) | 441,271 | 458,110 | 332 | (43,103 | ) | 415,339 | ||||||||||||||||||||||
Other Conventional | 32,312 | 3,694 | — | 36,006 | 32,298 | 2,387 | (136 | ) | 34,549 | |||||||||||||||||||||||
Other Affordable | 14,110 | 11,827 | (21,909 | ) | 4,028 | 10,671 | 18,804 | (24,030 | ) | 5,445 | ||||||||||||||||||||||
Property management revenues, primarily from affiliates | 251 | (292 | ) | 2,104 | 2,063 | 854 | (315 | ) | 2,369 | 2,908 | ||||||||||||||||||||||
Total rental and other property revenues | 522,974 | 15,591 | (55,197 | ) | 483,368 | 501,933 | 21,208 | (64,900 | ) | 458,241 | ||||||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||||||||||
Conventional Same Store | 141,951 | — | (7,476 | ) | 134,475 | 140,947 | — | (11,023 | ) | 129,924 | ||||||||||||||||||||||
Affordable Same Store | 30,332 | 242 | (6,423 | ) | 24,151 | 29,582 | 271 | (6,365 | ) | 23,488 | ||||||||||||||||||||||
Total Same Store | 172,283 | 242 | (13,899 | ) | 158,626 | 170,529 | 271 | (17,388 | ) | 153,412 | ||||||||||||||||||||||
Other Conventional | 15,743 | 2,051 | — | 17,794 | 15,297 | 1,546 | (76 | ) | 16,767 | |||||||||||||||||||||||
Other Affordable | 6,207 | 7,912 | (11,946 | ) | 2,173 | 5,779 | 12,388 | (14,893 | ) | 3,274 | ||||||||||||||||||||||
Casualties | 193 | — | 30 | 223 | 6,625 | (11 | ) | 242 | 6,856 | |||||||||||||||||||||||
Property management expenses | 17,692 | — | — | 17,692 | 21,059 | — | — | 21,059 | ||||||||||||||||||||||||
Total property operating expenses | 212,118 | 10,205 | (25,815 | ) | 196,508 | 219,289 | 14,194 | (32,115 | ) | 201,368 | ||||||||||||||||||||||
Net real estate operations | 310,856 | 5,386 | (29,382 | ) | 286,860 | 282,644 | 7,014 | (32,785 | ) | 256,873 | ||||||||||||||||||||||
Amortization of deferred tax credit income | 14,685 | — | — | 14,685 | 14,166 | — | — | 14,166 | ||||||||||||||||||||||||
Asset management revenues | — | — | 1,915 | 1,915 | 1,523 | — | 1,198 | 2,721 | ||||||||||||||||||||||||
Non-recurring revenues | 2,300 | — | 2 | 2,302 | 1,198 | — | 3 | 1,201 | ||||||||||||||||||||||||
Total asset management and tax credit revenues | 16,985 | — | 1,917 | 18,902 | 16,887 | — | 1,201 | 18,088 | ||||||||||||||||||||||||
Investment management expenses | (6,628 | ) | — | — | (6,628 | ) | (5,087 | ) | — | — | (5,087 | ) | ||||||||||||||||||||
Depreciation and amortization related to non-real estate assets | (6,630 | ) | 1 | 58 | (6,571 | ) | (6,382 | ) | (2 | ) | 66 | (6,318 | ) | |||||||||||||||||||
General and administrative expenses | (25,181 | ) | (4 | ) | 280 | (24,905 | ) | (23,629 | ) | (2 | ) | 601 | (23,030 | ) | ||||||||||||||||||
Other expense, net | (6,689 | ) | (15 | ) | 1,597 | (5,107 | ) | (8,787 | ) | 137 | 4,686 | (3,964 | ) | |||||||||||||||||||
Interest income | 5,031 | 13 | 57 | 5,101 | 3,973 | (115 | ) | (541 | ) | 3,317 | ||||||||||||||||||||||
Interest expense | (133,421 | ) | (3,230 | ) | 6,622 | (130,029 | ) | (164,495 | ) | (4,534 | ) | 21,621 | (147,408 | ) | ||||||||||||||||||
Gain (loss) on disposition of non-depreciable assets and other | 2 | — | — | 2 | (68 | ) | — | — | (68 | ) | ||||||||||||||||||||||
Income tax benefit | 505 | — | — | 505 | 4,060 | — | — | 4,060 | ||||||||||||||||||||||||
Discontinued operations, net of non-FFO items | 8,274 | — | (4,561 | ) | 3,713 | 17,837 | — | (1,864 | ) | 15,973 | ||||||||||||||||||||||
Preferred dividends and distributions | (27,372 | ) | — | — | (27,372 | ) | (28,219 | ) | — | — | (28,219 | ) | ||||||||||||||||||||
Preferred redemption related amounts | (10,530 | ) | — | — | (10,530 | ) | 2,749 | — | — | 2,749 | ||||||||||||||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (6,704 | ) | — | — | (6,704 | ) | (6,029 | ) | — | — | (6,029 | ) | ||||||||||||||||||||
Amounts allocated to participating securities | (452 | ) | — | — | (452 | ) | (368 | ) | — | — | (368 | ) | ||||||||||||||||||||
Funds From Operations | $ | 118,046 | $ | 2,151 | $ | (23,412 | ) | $ | 96,785 | $ | 85,086 | $ | 2,498 | $ | (7,015 | ) | $ | 80,569 | ||||||||||||||
Preferred stock redemption related amounts | 10,530 | — | — | 10,530 | (2,749 | ) | — | — | (2,749 | ) | ||||||||||||||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (679 | ) | — | — | (679 | ) | 187 | — | — | 187 | ||||||||||||||||||||||
Amounts allocated to participating securities | (46 | ) | — | — | (46 | ) | 13 | — | — | 13 | ||||||||||||||||||||||
Pro forma Funds From Operations | $ | 127,851 | $ | 2,151 | $ | (23,412 | ) | $ | 106,590 | $ | 82,537 | $ | 2,498 | $ | (7,015 | ) | $ | 78,020 | ||||||||||||||
Weighted average shares - diluted FFO | 124,337 | Weighted average shares - diluted FFO | 118,567 | |||||||||||||||||||||||||||||
Per Share: | Per Share: | |||||||||||||||||||||||||||||||
Funds From Operations | $ | 0.78 | Funds From Operations | $ | 0.68 | |||||||||||||||||||||||||||
Pro forma Funds From Operations | $ | 0.86 | Pro forma Funds From Operations | $ | 0.66 | |||||||||||||||||||||||||||
| 14 | |
Supplemental Schedule 1(b) (continued) | ||||||||||||||||||||||||||||||||
Pro Forma Funds From Operations Reconciliation to GAAP | (Page 2 of 2) | |||||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | |||||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | |||||||||||||||||||||||||
Pro forma Funds From Operations | $ | 127,851 | $ | 2,151 | $ | (23,412 | ) | $ | 106,590 | $ | 82,537 | $ | 2,498 | $ | (7,015 | ) | $ | 78,020 | ||||||||||||||
Adjustments related to continuing operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | (185,380 | ) | (4,333 | ) | 16,106 | (173,607 | ) | (178,881 | ) | (6,057 | ) | 20,848 | (164,090 | ) | ||||||||||||||||||
Depreciation and amortization related to non-real estate assets | 6,630 | (1 | ) | (58 | ) | 6,571 | 6,382 | 2 | (66 | ) | 6,318 | |||||||||||||||||||||
Provision for impairment losses on depreciable assets | (13,245 | ) | (2,523 | ) | 3,231 | (12,537 | ) | — | (1,014 | ) | 1,014 | — | ||||||||||||||||||||
Gain on dispositions of and impairments related to unconsolidated entities and other, net of tax | 4,738 | 1,701 | (6,126 | ) | 313 | 2,068 | 1,125 | (2,381 | ) | 812 | ||||||||||||||||||||||
Adjustments related to discontinued operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization related to real estate | (4,563 | ) | — | 847 | (3,716 | ) | (18,191 | ) | — | 3,603 | (14,588 | ) | ||||||||||||||||||||
Provision for operating real estate impairment losses, net of tax | (1,662 | ) | — | 1,436 | (226 | ) | (6,307 | ) | — | 2,570 | (3,737 | ) | ||||||||||||||||||||
Gain on dispositions of real estate, net of tax | 78,161 | — | (9,454 | ) | 68,707 | 27,174 | — | (8,497 | ) | 18,677 | ||||||||||||||||||||||
Total adjustments | $ | (115,321 | ) | $ | (5,156 | ) | $ | 5,982 | $ | (114,495 | ) | $ | (167,755 | ) | $ | (5,944 | ) | $ | 17,091 | $ | (156,608 | ) | ||||||||||
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments | 8,065 | — | — | 8,065 | 10,645 | — | — | 10,645 | ||||||||||||||||||||||||
Amounts allocable to participating securities | 284 | — | — | 284 | 244 | — | — | 244 | ||||||||||||||||||||||||
Preferred stock redemption related amounts | (10,530 | ) | — | — | (10,530 | ) | 2,749 | — | — | 2,749 | ||||||||||||||||||||||
Equity in losses of unconsolidated real estate partnerships | (3,005 | ) | 3,005 | — | — | (3,446 | ) | 3,446 | — | — | ||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | (17,430 | ) | — | 17,430 | — | 10,076 | — | (10,076 | ) | — | ||||||||||||||||||||||
Net loss attributable to Aimco common stockholders | $ | (10,086 | ) | $ | — | $ | — | $ | (10,086 | ) | $ | (64,950 | ) | $ | — | $ | — | $ | (64,950 | ) | ||||||||||||
| 15 | |
Supplemental Schedule 2 | |||||||||||||
Portfolio Summary | |||||||||||||
As of June 30, 2012 | |||||||||||||
(unaudited) | |||||||||||||
Number of Properties | Number of Units | Effective Units | Average Ownership | ||||||||||
Real Estate Portfolio: | |||||||||||||
Conventional Same Store | 152 | 54,645 | 52,602 | 96 | % | ||||||||
Affordable Same Store | 102 | 13,712 | 10,576 | 77 | % | ||||||||
Total Same Store | 254 | 68,357 | 63,178 | 92 | % | ||||||||
Conventional Redevelopment | 4 | 1,502 | 1,502 | 100 | % | ||||||||
Conventional Acquisition | 6 | 672 | 602 | 90 | % | ||||||||
Other Conventional | 29 | 4,302 | 3,453 | 80 | % | ||||||||
Other Affordable | 50 | 5,025 | 766 | 15 | % | ||||||||
Conventional Held for Sale | 1 | 192 | 192 | 100 | % | ||||||||
Total real estate portfolio | 344 | 80,050 | 69,693 | 87 | % | ||||||||
Total Conventional portfolio | 192 | 61,313 | 58,351 | 95 | % | ||||||||
Total Affordable portfolio | 152 | 18,737 | 11,342 | 61 | % | ||||||||
* At December 31, 2011, Aimco asset-managed for a fee 147 properties with 10,184 units. In February 2012, Aimco entered into an agreement to transfer asset management of this portfolio and to sell its interests in these assets to the new asset manager upon satisfaction of certain conditions and regulatory approvals. Under the agreement, Aimco is paying the new manager a fee comparable to its historical cost to manage these properties until such time as sale of the portfolio is completed. | |||||||||||||
| 16 | |
Supplemental Schedule 3 | |||||||||||||
Net Asset Value Supplemental Information | (Page 1 of 2) | ||||||||||||
(in thousands) (unaudited) | |||||||||||||
One measure of stockholder value is Net Asset Value (NAV), which is assets, net of debt and preferred equity, at their estimated fair values. The information provided below is intended to assist users of Aimco’s financial information in making their own estimates of Aimco’s NAV. See the following page for notes to the Supplemental Information provided below. | |||||||||||||
Trailing Twelve Month Net Operating Income Data | |||||||||||||
Proportionate Property Net Operating Income | |||||||||||||
Conventional Same Store and Other | Affordable | Total | |||||||||||
Rental and other property revenues [1] | $ | 816,660 | $ | 128,296 | $ | 944,956 | |||||||
Property operating expenses [1] | (298,523 | ) | (52,623 | ) | (351,146 | ) | |||||||
Property NOI [1] | 518,137 | 75,673 | 593,810 | ||||||||||
Assumed property management fee (3.0% of revenues) | (24,500 | ) | (3,849 | ) | (28,349 | ) | |||||||
Property NOI net of assumed property management fee | $ | 493,637 | $ | 71,824 | $ | 565,461 | |||||||
Proportionate Balance Sheet Data | ||||||||||||||||
As of June 30, 2012 | ||||||||||||||||
Consolidated GAAP Balance Sheet | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Balance Sheet | |||||||||||||
Assets | ||||||||||||||||
Real estate | $ | 8,833,622 | $ | 79,703 | $ | (607,295 | ) | $ | 8,306,030 | |||||||
Accumulated depreciation | (2,888,828 | ) | (19,372 | ) | 138,812 | (2,769,388 | ) | |||||||||
Net real estate [2] | 5,944,794 | 60,331 | (468,483 | ) | 5,536,642 | |||||||||||
Cash and cash equivalents | 312,964 | 1,074 | (29,453 | ) | 284,585 | |||||||||||
Restricted cash | 168,864 | 3,546 | (18,732 | ) | 153,678 | |||||||||||
Accounts receivable, net | 35,592 | 115 | (6,390 | ) | 29,317 | |||||||||||
Notes receivable, net | 102,798 | — | (1,123 | ) | 101,675 | |||||||||||
Investment in unconsolidated real estate partnerships | 34,400 | (7,257 | ) | (25,928 | ) | 1,215 | ||||||||||
Deferred financing costs, net | 44,496 | 351 | (4,653 | ) | 40,194 | |||||||||||
Goodwill | 59,816 | — | — | 59,816 | ||||||||||||
Investment in management contracts | 482 | — | — | 482 | ||||||||||||
Other assets | 233,870 | 638 | (2,714 | ) | 231,794 | |||||||||||
Assets held for sale | 9,030 | — | 18 | 9,048 | ||||||||||||
Total assets | $ | 6,947,106 | $ | 58,798 | $ | (557,458 | ) | $ | 6,448,446 | |||||||
Liabilities and Equity | ||||||||||||||||
Non-recourse property debt | $ | 5,090,443 | $ | 48,622 | $ | (373,929 | ) | $ | 4,765,136 | |||||||
Deferred income [3] | 133,097 | 62 | — | 133,159 | ||||||||||||
Other liabilities | 265,325 | 10,114 | (46,636 | ) | 228,803 | |||||||||||
Liabilities related to assets held for sale | 8,618 | — | — | 8,618 | ||||||||||||
Total liabilities | 5,497,483 | 58,798 | (420,565 | ) | 5,135,716 | |||||||||||
Preferred noncontrolling interests in Aimco Operating Partnership | 80,401 | — | — | 80,401 | ||||||||||||
Perpetual preferred stock | 366,216 | — | — | 366,216 | ||||||||||||
Other Aimco equity | 781,424 | — | 121,754 | 903,178 | ||||||||||||
Noncontrolling interests in consolidated real estate partnerships | 258,647 | — | (258,647 | ) | — | |||||||||||
Common noncontrolling interests in Aimco Operating Partnership | (37,065 | ) | — | — | (37,065 | ) | ||||||||||
Total liabilities and equity | $ | 6,947,106 | $ | 58,798 | $ | (557,458 | ) | $ | 6,448,446 | |||||||
| 17 |
Supplemental Schedule 3 (continued) | ||
Net Asset Value Supplemental Information | (Page 2 of 2) | |
(in thousands) (unaudited) | ||
[1] | Refer to the Glossary for the definition of Proportionate Property Net Operating Income, as well as a reconciliation of the trailing twelve month amounts of Rental and other property revenues, Property operating expenses and Proportionate Property Net Operating Income to the corresponding amounts computed in accordance with GAAP. | |
[2] | Net real estate includes three vacant redevelopment properties, Lincoln Place, Pacific Bay Vistas and The Preserve at Marin, that have June 30, 2012 net book values of $283.9 million in total. These properties are included in Aimco’s redevelopment pipeline. | |
[3] | Deferred income includes $86.6 million of unamortized cash contributions received by Aimco in exchange for the sale of tax credit and related tax benefits. These cash contributions are deferred upon receipt and amortized into earnings in future periods as Aimco delivers the tax credits and related benefits to the investors. | |
Deferred income and the future earnings associated with the deferred income are excluded from Aimco’s internal estimates of NAV. However, amortization of deferred tax credit income is included in net income and, as such, FFO. Projected amortization of deferred tax credit contributions received and to be received, as well as the estimated income taxes thereon, are presented below. | ||
June 30, 2012 | ||||||||||||||
Deferred tax credit income balance | $ | 86,578 | ||||||||||||
Contributions to be received in the future | 53,084 | |||||||||||||
Total to be amortized | $ | 139,662 | ||||||||||||
Amortization of Deferred Income | Estimated Income Taxes | Projected Income, net of tax | ||||||||||||
2012 Q3 & Q4 | $ | 14,176 | $ | (5,529 | ) | $ | 8,647 | |||||||
2013 | 27,706 | (10,805 | ) | 16,901 | ||||||||||
2014 | 26,720 | (10,421 | ) | 16,299 | ||||||||||
2015 | 22,770 | (8,880 | ) | 13,890 | ||||||||||
2016 | 17,534 | (6,838 | ) | 10,696 | ||||||||||
Thereafter | 30,756 | (11,995 | ) | 18,761 | ||||||||||
Total | $ | 139,662 | $ | (54,468 | ) | $ | 85,194 | |||||||
| 18 |
Supplemental Schedule 4 | ||||||||||||||||||||||
Non-Recourse Property Debt Information | (Page 1 of 2) | |||||||||||||||||||||
As of June 30, 2012 | ||||||||||||||||||||||
(dollars in thousands) (unaudited) | ||||||||||||||||||||||
Non-Recourse Property Debt Balances and Characteristics | ||||||||||||||||||||||
Debt | Consolidated | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Total Aimco Share | Weighted Average Maturity (years) | Weighted Average Rate | ||||||||||||||||
Conventional Portfolio: | ||||||||||||||||||||||
Fixed rate loans payable [1] | $ | 4,342,116 | $ | 8,722 | $ | (193,456 | ) | $ | 4,157,382 | 6.9 | 5.73 | % | ||||||||||
Fixed rate tax-exempt bonds | 16,580 | — | (3,338 | ) | 13,242 | 2.0 | 6.32 | % | ||||||||||||||
Floating rate tax-exempt bonds | 86,715 | — | (5,242 | ) | 81,473 | 7.1 | 0.20 | % | ||||||||||||||
Total property tax-exempt bond financing | 103,295 | — | (8,580 | ) | 94,715 | 6.3 | 1.18 | % | ||||||||||||||
Total Conventional portfolio | 4,445,411 | 8,722 | (202,036 | ) | 4,252,097 | 6.9 | 5.62 | % | ||||||||||||||
Affordable Portfolio: | ||||||||||||||||||||||
Fixed rate loans payable | 405,362 | 39,900 | (126,620 | ) | 318,642 | 11.3 | 4.52 | % | ||||||||||||||
Floating rate loans payable | 40,761 | — | (20,410 | ) | 20,351 | 6.4 | 3.17 | % | ||||||||||||||
Total property loans payable | 446,123 | 39,900 | (147,030 | ) | 338,993 | 10.9 | 4.40 | % | ||||||||||||||
Fixed rate tax-exempt bonds | 102,578 | — | (24,863 | ) | 77,715 | 26.4 | 4.98 | % | ||||||||||||||
Floating rate tax-exempt bonds | 96,331 | — | — | 96,331 | 5.7 | 2.82 | % | |||||||||||||||
Total property tax-exempt bond financing | 198,909 | — | (24,863 | ) | 174,046 | 16.3 | 3.93 | % | ||||||||||||||
Total Affordable portfolio | 645,032 | 39,900 | (171,893 | ) | 513,039 | 12.6 | 4.25 | % | ||||||||||||||
Total non-recourse property debt | $ | 5,090,443 | $ | 48,622 | $ | (373,929 | ) | $ | 4,765,136 | 7.6 | 5.45 | % | ||||||||||
Aimco Share Non-Recourse Property Debt | ||||||||||||||||||||||
Amount | % of Total | ||||||
Fixed rate property debt | $ | 4,566,981 | 95.8 | % | |||
Floating rate tax-exempt bonds | 177,804 | 3.7 | % | ||||
Floating rate loans payable | 20,351 | 0.4 | % | ||||
Total | $ | 4,765,136 | |||||
Amortization | Maturities | Total | Maturities as a Percent of Total Debt | Average Rate on Maturing Debt | ||||||||||||||
2012 Q3 | $ | 21,077 | $ | 35,445 | $ | 56,522 | 0.74 | % | 4.87 | % | ||||||||
2012 Q4 | 21,549 | 31 | 21,580 | 0.00 | % | 5.50 | % | |||||||||||
Total 2012 | 42,626 | 35,476 | 78,102 | 0.74 | % | 4.87 | % | |||||||||||
2013 Q1 | 21,578 | 77,256 | 98,834 | 1.62 | % | 5.10 | % | |||||||||||
2013 Q2 | 21,596 | 23,487 | 45,083 | 0.49 | % | 5.36 | % | |||||||||||
2013 Q3 | 21,611 | 124,289 | 145,900 | 2.61 | % | 4.97 | % | |||||||||||
2013 Q4 | 21,719 | 68,921 | 90,640 | 1.45 | % | 6.89 | % | |||||||||||
Total 2013 | 86,504 | 293,953 | 380,457 | 6.17 | % | 5.50 | % | |||||||||||
2014 | 86,229 | 292,686 | 378,915 | 6.14 | % | 4.84 | % | |||||||||||
2015 | 86,718 | 188,398 | 275,116 | 3.95 | % | 4.84 | % | |||||||||||
2016 | 84,534 | 372,539 | 457,073 | 7.82 | % | 5.65 | % | |||||||||||
2017 | 78,871 | 441,167 | 520,038 | 9.26 | % | 5.94 | % | |||||||||||
2018 | 73,874 | 206,885 | 280,759 | 4.34 | % | 4.65 | % | |||||||||||
2019 | 67,689 | 525,122 | 592,811 | 11.02 | % | 5.77 | % | |||||||||||
2020 | 59,139 | 395,605 | 454,744 | 8.30 | % | 6.51 | % | |||||||||||
2021 [2] | 38,065 | 729,607 | 767,672 | 15.31 | % | 5.72 | % | |||||||||||
2022 | 25,864 | 175,556 | 201,420 | 3.68 | % | 5.17 | % | |||||||||||
Thereafter | 251,305 | 126,724 | 378,029 | 2.66 | % | 3.22 | % | |||||||||||
Total | $ | 981,418 | $ | 3,783,718 | $ | 4,765,136 | ||||||||||||
[1] | In 2011, $673.8 million of fixed rate loans payable were securitized and Aimco purchased for $51.5 million the first loss and two mezzanine positions in the trust that holds these loans. The investments, which have a face value of $100.9 million, are presented in other assets on Aimco’s consolidated balance sheet. |
[2] | 2021 maturities includes property loans that will repay Aimco’s first loss and mezzanine positions in the securitization. After consideration of the repayment of these investments, the net effective maturities exposure for 2021 is $628.7 million, or 13.5% of maturities as a percentage of total debt. |
| 19 |
Supplemental Schedule 4 (continued) | ||||||||||||||||||
(page 2 of 2) | ||||||||||||||||||
Year-to-Date Property Loan Closings (Aimco Share) | ||||||||||||||||||
Original Loan Maturity Year | Loan Amount Refinanced | New Loan Amount | Net Proceeds [1] | Prior Rate | New Rate | |||||||||||||
2012 | $ | 55.0 | $ | 72.0 | $ | 16.9 | 6.85 | % | 4.54 | % | ||||||||
2016 | 0.9 | 6.1 | 5.3 | 4.75 | % | 4.72 | % | |||||||||||
2028 | 14.3 | 14.5 | 0.2 | 1.50 | % | 4.16 | % | |||||||||||
New loans | — | 2.6 | 2.6 | — | 4.72 | % | ||||||||||||
Acquisition [2] | — | 49.1 | — | — | 4.90 | % | ||||||||||||
Totals | $ | 70.2 | $ | 144.3 | $ | 25.0 | 5.74 | % | 4.63 | % | ||||||||
Debt Ratios | ||||||||||||||||||
Trailing Twelve Months [3] | Annualized Second Quarter [3] | |||||||||||||||||
Debt to EBITDA | 8.2x | 7.9x | ||||||||||||||||
Debt and Preferred Equity to EBITDA | 8.5x | 8.2x | ||||||||||||||||
EBITDA Coverage of Interest | 2.2x | 2.3x | ||||||||||||||||
EBITDA Coverage of Interest and Preferred Dividends | 2.1x | 2.2x | ||||||||||||||||
Revolving Line of Credit Debt Coverage Covenants | ||||||||||||||||||
Amount | Covenant | |||||||||||||||||
Debt Service Coverage Ratio | 1.61x | 1.50x | ||||||||||||||||
Fixed Charge Coverage Ratio | 1.38x | 1.30x | ||||||||||||||||
Credit Ratings | ||||||||||||||||||
Moody’s Investor Service | Corporate Family Rating | Ba1 (stable outlook) | ||||||||||||||||
Standard and Poor’s | Corporate Credit Rating | BB+ (stable) | ||||||||||||||||
Notes | ||||||||||||||||||
[1] Net Proceeds is after transaction costs, prepayment penalties and payment of distributions to noncontrolling limited partners. | ||||||||||||||||||
[2] Includes $20.0 million of new non-recourse property debt related to a property acquired during the second quarter and $29.1 million, which represents the contractual principal and interest of a non-recourse property debt obligation Aimco assumed in connection with a property acquisition during the first quarter (see Supplemental Schedule 8 for further details). At the date of acquisition, the loan had a fair value of $33.3 million and an effective interest rate of 3.41%. | ||||||||||||||||||
[3] All ratios are provided on a pro forma basis, taking into consideration the effects of Aimco's equity activities during the second quarter and July. | ||||||||||||||||||
| 20 |
Supplemental Schedule 5 | |||||||||||
Share Data | |||||||||||
(in thousands) (unaudited) | |||||||||||
Preferred Securities | |||||||||||
Shares/Units Outstanding as of June 30, 2012 | Date First Available for Redemption by Aimco | Coupon | Amount | ||||||||
Perpetual Preferred Stock: | |||||||||||
Class Z | 1,274 | 7/29/2016 | 7.000% | $ | 31,856 | ||||||
Series A Community Reinvestment Act | — | 6/30/2011 | 1.720% | 37,000 | |||||||
Total perpetual preferred stock | 68,856 | ||||||||||
Preferred Partnership Units | 2,944 | 8.100% | 79,576 | ||||||||
Total preferred securities | 148,432 | ||||||||||
Perpetual Preferred Stock Called for Redemption: | |||||||||||
Class U [1] | 12,000 | 3/24/2009 | 7.750% | 300,000 | |||||||
Total outstanding preferred securities | $ | 448,432 | |||||||||
Common Stock, Partnership Units and Equivalents | |||||||||||||||
As of June 30, 2012 | Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | |||||||||||||
EPS | FFO | EPS | FFO | ||||||||||||
Class A Common Stock outstanding [2] | 143,669 | 127,395 | 127,395 | 123,960 | 123,960 | ||||||||||
Dilutive securities: | |||||||||||||||
Options and restricted stock | 290 | — | 412 | — | 377 | ||||||||||
Total shares and dilutive share equivalents | 143,959 | 127,395 | 127,807 | 123,960 | 124,337 | ||||||||||
Common Partnership Units and equivalents | 8,183 | ||||||||||||||
Total shares, units and dilutive share equivalents | 152,142 | ||||||||||||||
Notes | |||||||||||||||
[1] Aimco redeemed all of the outstanding shares of the Class U Perpetual Preferred Stock effective July 26, 2012. | |||||||||||||||
[2] During July 2012, in connection with one of Aimco's second quarter common stock offerings, Aimco sold an additional 1,350,000 shares of Common Stock for net proceeds of $36.1 million, or $26.74 per share. | |||||||||||||||
| 21 |
Supplemental Schedule 6(a) | |||||||||||||||||||||||||||||||||||||||||
Conventional Same Store Operating Results | |||||||||||||||||||||||||||||||||||||||||
Second Quarter 2012 Compared to Second Quarter 2011 | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except site, unit and per unit data) (unaudited) | |||||||||||||||||||||||||||||||||||||||||
Revenue | Expenses | Net Operating Income | Operating Margin | Average Daily Occupancy During Period | Average Revenue per Unit | ||||||||||||||||||||||||||||||||||||
Properties | Units | Effective Units | 2Q 2012 | 2Q 2011 | Growth | 2Q 2012 | 2Q 2011 | Growth | 2Q 2012 | 2Q 2011 | Growth | 2Q 2012 | 2Q 2012 | 2Q 2011 | 2Q 2012 | 2Q 2011 | |||||||||||||||||||||||||
Target Markets | |||||||||||||||||||||||||||||||||||||||||
Los Angeles | 13 | 3,949 | 3,297 | $ | 19,746 | $ | 18,952 | 4.2% | $ | 5,677 | $ | 5,532 | 2.6% | $ | 14,069 | $ | 13,420 | 4.8% | 71.2% | 95.7% | 96.6% | $ | 2,087 | $ | 1,984 | ||||||||||||||||
Orange County | 4 | 1,213 | 1,143 | 5,765 | 5,578 | 3.4% | 1,765 | 1,621 | 8.9% | 4,000 | 3,957 | 1.1% | 69.4% | 95.8% | 97.9% | 1,755 | 1,662 | ||||||||||||||||||||||||
San Diego | 6 | 2,144 | 2,074 | 8,437 | 8,167 | 3.3% | 2,494 | 2,351 | 6.1% | 5,943 | 5,816 | 2.2% | 70.4% | 96.1% | 95.7% | 1,411 | 1,372 | ||||||||||||||||||||||||
Southern CA Total | 23 | 7,306 | 6,514 | 33,948 | 32,697 | 3.8% | 9,936 | 9,504 | 4.5% | 24,012 | 23,193 | 3.5% | 70.7% | 95.8% | 96.5% | 1,813 | 1,734 | ||||||||||||||||||||||||
East Bay | 2 | 413 | 353 | 1,571 | 1,445 | 8.7% | 549 | 539 | 1.9% | 1,022 | 906 | 12.8% | 65.1% | 95.6% | 98.5% | 1,550 | 1,383 | ||||||||||||||||||||||||
San Jose | 1 | 224 | 224 | 1,165 | 1,071 | 8.8% | 395 | 395 | 0.0% | 770 | 676 | 13.9% | 66.1% | 97.2% | 97.1% | 1,784 | 1,643 | ||||||||||||||||||||||||
San Francisco | 5 | 774 | 774 | 4,200 | 3,817 | 10.0% | 1,412 | 1,361 | 3.7% | 2,788 | 2,456 | 13.5% | 66.4% | 96.1% | 97.3% | 1,882 | 1,689 | ||||||||||||||||||||||||
Northern CA Total | 8 | 1,411 | 1,351 | 6,936 | 6,333 | 9.5% | 2,356 | 2,295 | 2.7% | 4,580 | 4,038 | 13.4% | 66.0% | 96.1% | 97.6% | 1,780 | 1,600 | ||||||||||||||||||||||||
Seattle | 1 | 104 | 104 | 444 | 422 | 5.2% | 171 | 161 | 6.2% | 273 | 261 | 4.6% | 61.5% | 97.9% | 96.6% | 1,452 | 1,402 | ||||||||||||||||||||||||
Pacific Total | 32 | 8,821 | 7,969 | 41,328 | 39,452 | 4.8% | 12,463 | 11,960 | 4.2% | 28,865 | 27,492 | 5.0% | 69.8% | 95.9% | 96.7% | 1,803 | 1,706 | ||||||||||||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 4,691 | 4,350 | 7.8% | 1,555 | 1,559 | (0.3)% | 3,136 | 2,791 | 12.4% | 66.9% | 97.1% | 95.1% | 1,387 | 1,312 | ||||||||||||||||||||||||
Washington - NoVa - MD | 14 | 6,547 | 6,462 | 26,918 | 25,643 | 5.0% | 8,259 | 7,687 | 7.4% | 18,659 | 17,956 | 3.9% | 69.3% | 96.4% | 96.5% | 1,441 | 1,370 | ||||||||||||||||||||||||
Boston | 9 | 3,068 | 3,068 | 11,540 | 10,876 | 6.1% | 4,300 | 4,230 | 1.7% | 7,240 | 6,646 | 8.9% | 62.7% | 96.1% | 96.3% | 1,305 | 1,227 | ||||||||||||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 15,926 | 15,326 | 3.9% | 6,290 | 6,563 | (4.2)% | 9,636 | 8,763 | 10.0% | 60.5% | 94.7% | 95.3% | 1,472 | 1,407 | ||||||||||||||||||||||||
Northeast Total | 32 | 14,665 | 14,501 | 59,075 | 56,195 | 5.1% | 20,404 | 20,039 | 1.8% | 38,671 | 36,156 | 7.0% | 65.5% | 95.9% | 96.0% | 1,416 | 1,345 | ||||||||||||||||||||||||
Miami | 5 | 2,471 | 2,460 | 13,157 | 12,372 | 6.3% | 4,344 | 4,617 | (5.9)% | 8,813 | 7,755 | 13.6% | 67.0% | 96.3% | 96.4% | 1,851 | 1,739 | ||||||||||||||||||||||||
Palm Beach - Fort Lauderdale | 2 | 704 | 704 | 1,910 | 1,811 | 5.5% | 868 | 826 | 5.1% | 1,042 | 985 | 5.8% | 54.6% | 96.2% | 96.3% | 939 | 890 | ||||||||||||||||||||||||
Orlando | 5 | 1,481 | 1,481 | 3,601 | 3,454 | 4.3% | 1,504 | 1,450 | 3.7% | 2,097 | 2,004 | 4.6% | 58.2% | 94.6% | 94.6% | 857 | 822 | ||||||||||||||||||||||||
Tampa | 4 | 1,263 | 1,196 | 2,882 | 2,772 | 4.0% | 1,222 | 1,155 | 5.8% | 1,660 | 1,617 | 2.7% | 57.6% | 95.6% | 94.3% | 840 | 819 | ||||||||||||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 4,307 | 4,069 | 5.8% | 1,868 | 1,868 | 0.0% | 2,439 | 2,201 | 10.8% | 56.6% | 95.0% | 94.9% | 919 | 870 | ||||||||||||||||||||||||
Florida Total | 20 | 7,562 | 7,484 | 25,857 | 24,478 | 5.6% | 9,806 | 9,916 | (1.1)% | 16,051 | 14,562 | 10.2% | 62.1% | 95.6% | 95.4% | 1,205 | 1,143 | ||||||||||||||||||||||||
Houston | 5 | 2,237 | 2,168 | 4,944 | 4,878 | 1.4% | 2,241 | 2,106 | 6.4% | 2,703 | 2,772 | (2.5)% | 54.7% | 93.3% | 93.9% | 815 | 799 | ||||||||||||||||||||||||
Denver | 8 | 2,177 | 2,104 | 6,501 | 6,158 | 5.6% | 2,053 | 1,982 | 3.6% | 4,448 | 4,176 | 6.5% | 68.4% | 95.6% | 97.4% | 1,077 | 1,002 | ||||||||||||||||||||||||
Phoenix | 8 | 1,798 | 1,498 | 3,483 | 3,313 | 5.1% | 1,310 | 1,289 | 1.6% | 2,173 | 2,024 | 7.4% | 62.4% | 95.5% | 96.7% | 812 | 763 | ||||||||||||||||||||||||
Dallas - Fort Worth | 1 | 368 | 368 | 919 | 928 | (1.0)% | 398 | 398 | 0.0% | 521 | 530 | (1.7)% | 56.7% | 92.9% | 95.4% | 896 | 882 | ||||||||||||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 3,425 | 3,172 | 8.0% | 1,217 | 1,268 | (4.0)% | 2,208 | 1,904 | 16.0% | 64.5% | 95.5% | 97.3% | 1,062 | 966 | ||||||||||||||||||||||||
Sunbelt Total | 47 | 15,437 | 14,747 | 45,129 | 42,927 | 5.1% | 17,025 | 16,959 | 0.4% | 28,104 | 25,968 | 8.2% | 62.3% | 95.2% | 95.7% | 1,072 | 1,013 | ||||||||||||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 15,315 | 14,606 | 4.9% | 5,647 | 5,358 | 5.4% | 9,668 | 9,248 | 4.5% | 63.1% | 95.7% | 97.0% | 1,358 | 1,277 | ||||||||||||||||||||||||
Total Target Markets | 124 | 42,916 | 41,146 | 160,847 | 153,180 | 5.0% | 55,539 | 54,316 | 2.3% | 105,308 | 98,864 | 6.5% | 65.5% | 95.6% | 96.2% | 1,363 | 1,290 | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 3,706 | 3,577 | 3.6% | 1,368 | 1,331 | 2.8% | 2,338 | 2,246 | 4.1% | 63.1% | 93.1% | 94.9% | 1,245 | 1,179 | ||||||||||||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 3,284 | 3,110 | 5.6% | 1,193 | 1,116 | 6.9% | 2,091 | 1,994 | 4.9% | 63.7% | 96.6% | 95.0% | 1,017 | 980 | ||||||||||||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 4,849 | 4,868 | (0.4)% | 1,571 | 1,512 | 3.9% | 3,278 | 3,356 | (2.3)% | 67.6% | 94.3% | 94.8% | 1,095 | 1,095 | ||||||||||||||||||||||||
Other Markets | 13 | 7,792 | 7,711 | 19,471 | 18,887 | 3.1% | 8,293 | 8,097 | 2.4% | 11,178 | 10,790 | 3.6% | 57.4% | 95.0% | 95.1% | 886 | 859 | ||||||||||||||||||||||||
Total Other | 28 | 11,729 | 11,455 | 31,310 | 30,442 | 2.9% | 12,425 | 12,056 | 3.1% | 18,885 | 18,386 | 2.7% | 60.3% | 94.9% | 95.0% | 960 | 932 | ||||||||||||||||||||||||
Grand Total | 152 | 54,645 | 52,601 | $ | 192,157 | $ | 183,622 | 4.6% | $ | 67,964 | $ | 66,372 | 2.4% | $ | 124,193 | $ | 117,250 | 5.9% | 64.6% | 95.5% | 95.9% | $ | 1,276 | $ | 1,213 | ||||||||||||||||
| 22 | |
Supplemental Schedule 6(b) | |||||||||||||||||||||||||||||||||||||||||
Conventional Same Store Operating Results | |||||||||||||||||||||||||||||||||||||||||
Second Quarter 2012 Compared to First Quarter 2012 | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except site, unit and per unit data) (unaudited) | |||||||||||||||||||||||||||||||||||||||||
Revenue | Expenses | Net Operating Income | Operating Margin | Average Daily Occupancy During Period | Average Revenue per Unit | ||||||||||||||||||||||||||||||||||||
Properties | Units | Effective Units | 2Q 2012 | 1Q 2012 | Growth | 2Q 2012 | 1Q 2012 | Growth | 2Q 2012 | 1Q 2012 | Growth | 2Q 2012 | 2Q 2012 | 1Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Target Markets | |||||||||||||||||||||||||||||||||||||||||
Los Angeles | 13 | 3,949 | 3,297 | $ | 19,746 | $ | 19,458 | 1.5% | $ | 5,677 | $ | 5,519 | 2.9% | $ | 14,069 | $ | 13,939 | 0.9% | 71.2% | 95.7% | 95.9% | $ | 2,087 | $ | 2,051 | ||||||||||||||||
Orange County | 4 | 1,213 | 1,143 | 5,765 | 5,734 | 0.5% | 1,765 | 1,631 | 8.2% | 4,000 | 4,103 | (2.5)% | 69.4% | 95.8% | 96.6% | 1,755 | 1,732 | ||||||||||||||||||||||||
San Diego | 6 | 2,144 | 2,074 | 8,437 | 8,241 | 2.4% | 2,494 | 2,346 | 6.3% | 5,943 | 5,895 | 0.8% | 70.4% | 96.1% | 94.8% | 1,411 | 1,398 | ||||||||||||||||||||||||
Southern CA Total | 23 | 7,306 | 6,514 | 33,948 | 33,433 | 1.5% | 9,936 | 9,496 | 4.6% | 24,012 | 23,937 | 0.3% | 70.7% | 95.8% | 95.7% | 1,813 | 1,788 | ||||||||||||||||||||||||
East Bay | 2 | 413 | 353 | 1,571 | 1,560 | 0.7% | 549 | 583 | (5.8)% | 1,022 | 977 | 4.6% | 65.1% | 95.6% | 97.6% | 1,550 | 1,507 | ||||||||||||||||||||||||
San Jose | 1 | 224 | 224 | 1,165 | 1,134 | 2.7% | 395 | 429 | (7.9)% | 770 | 705 | 9.2% | 66.1% | 97.2% | 97.2% | 1,784 | 1,736 | ||||||||||||||||||||||||
San Francisco | 5 | 774 | 774 | 4,200 | 4,156 | 1.1% | 1,412 | 1,377 | 2.5% | 2,788 | 2,779 | 0.3% | 66.4% | 96.1% | 96.9% | 1,882 | 1,847 | ||||||||||||||||||||||||
Northern CA Total | 8 | 1,411 | 1,351 | 6,936 | 6,850 | 1.3% | 2,356 | 2,389 | (1.4)% | 4,580 | 4,461 | 2.7% | 66.0% | 96.1% | 97.2% | 1,780 | 1,739 | ||||||||||||||||||||||||
Seattle | 1 | 104 | 104 | 444 | 433 | 2.5% | 171 | 172 | (0.6)% | 273 | 261 | 4.6% | 61.5% | 97.9% | 97.6% | 1,452 | 1,423 | ||||||||||||||||||||||||
Pacific Total | 32 | 8,821 | 7,969 | 41,328 | 40,716 | 1.5% | 12,463 | 12,057 | 3.4% | 28,865 | 28,659 | 0.7% | 69.8% | 95.9% | 96.0% | 1,803 | 1,775 | ||||||||||||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 4,691 | 4,686 | 0.1% | 1,555 | 1,512 | 2.8% | 3,136 | 3,174 | (1.2)% | 66.9% | 97.1% | 97.2% | 1,387 | 1,383 | ||||||||||||||||||||||||
Washington - NoVa - MD | 14 | 6,547 | 6,462 | 26,918 | 26,776 | 0.5% | 8,259 | 8,018 | 3.0% | 18,659 | 18,758 | (0.5)% | 69.3% | 96.4% | 96.6% | 1,441 | 1,430 | ||||||||||||||||||||||||
Boston | 9 | 3,068 | 3,068 | 11,540 | 11,187 | 3.2% | 4,300 | 4,291 | 0.2% | 7,240 | 6,896 | 5.0% | 62.7% | 96.1% | 95.8% | 1,305 | 1,269 | ||||||||||||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 15,926 | 16,142 | (1.3)% | 6,290 | 6,659 | (5.5)% | 9,636 | 9,483 | 1.6% | 60.5% | 94.7% | 95.8% | 1,472 | 1,474 | ||||||||||||||||||||||||
Northeast Total | 32 | 14,665 | 14,501 | 59,075 | 58,791 | 0.5% | 20,404 | 20,480 | (0.4)% | 38,671 | 38,311 | 0.9% | 65.5% | 95.9% | 96.3% | 1,416 | 1,404 | ||||||||||||||||||||||||
Miami | 5 | 2,471 | 2,460 | 13,157 | 12,988 | 1.3% | 4,344 | 4,238 | 2.5% | 8,813 | 8,750 | 0.7% | 67.0% | 96.3% | 97.5% | 1,851 | 1,804 | ||||||||||||||||||||||||
Palm Beach - Fort Lauderdale | 2 | 704 | 704 | 1,910 | 1,830 | 4.4% | 868 | 872 | (0.5)% | 1,042 | 958 | 8.8% | 54.6% | 96.2% | 95.2% | 939 | 910 | ||||||||||||||||||||||||
Orlando | 5 | 1,481 | 1,481 | 3,601 | 3,596 | 0.1% | 1,504 | 1,477 | 1.8% | 2,097 | 2,119 | (1.0)% | 58.2% | 94.6% | 95.5% | 857 | 847 | ||||||||||||||||||||||||
Tampa | 4 | 1,263 | 1,196 | 2,882 | 2,844 | 1.3% | 1,222 | 1,157 | 5.6% | 1,660 | 1,687 | (1.6)% | 57.6% | 95.6% | 95.6% | 840 | 829 | ||||||||||||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 4,307 | 4,276 | 0.7% | 1,868 | 1,860 | 0.4% | 2,439 | 2,416 | 1.0% | 56.6% | 95.0% | 95.7% | 919 | 907 | ||||||||||||||||||||||||
Florida Total | 20 | 7,562 | 7,484 | 25,857 | 25,534 | 1.3% | 9,806 | 9,604 | 2.1% | 16,051 | 15,930 | 0.8% | 62.1% | 95.6% | 96.2% | 1,205 | 1,182 | ||||||||||||||||||||||||
Houston | 5 | 2,237 | 2,168 | 4,944 | 4,907 | 0.8% | 2,241 | 2,185 | 2.6% | 2,703 | 2,722 | (0.7)% | 54.7% | 93.3% | 93.8% | 815 | 805 | ||||||||||||||||||||||||
Denver | 8 | 2,177 | 2,104 | 6,501 | 6,537 | (0.6)% | 2,053 | 2,023 | 1.5% | 4,448 | 4,514 | (1.5)% | 68.4% | 95.6% | 97.3% | 1,077 | 1,065 | ||||||||||||||||||||||||
Phoenix | 8 | 1,798 | 1,498 | 3,483 | 3,445 | 1.1% | 1,310 | 1,233 | 6.2% | 2,173 | 2,212 | (1.8)% | 62.4% | 95.5% | 96.5% | 812 | 794 | ||||||||||||||||||||||||
Dallas - Fort Worth | 1 | 368 | 368 | 919 | 934 | (1.6)% | 398 | 416 | (4.3)% | 521 | 518 | 0.6% | 56.7% | 92.9% | 96.1% | 896 | 881 | ||||||||||||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 3,425 | 3,389 | 1.1% | 1,217 | 1,308 | (7.0)% | 2,208 | 2,081 | 6.1% | 64.5% | 95.5% | 97.5% | 1,062 | 1,030 | ||||||||||||||||||||||||
Sunbelt Total | 47 | 15,437 | 14,747 | 45,129 | 44,746 | 0.9% | 17,025 | 16,769 | 1.5% | 28,104 | 27,977 | 0.5% | 62.3% | 95.2% | 96.1% | 1,072 | 1,052 | ||||||||||||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 15,315 | 14,828 | 3.3% | 5,647 | 5,658 | (0.2)% | 9,668 | 9,170 | 5.4% | 63.1% | 95.7% | 95.6% | 1,358 | 1,315 | ||||||||||||||||||||||||
Total Target Markets | 124 | 42,916 | 41,146 | 160,847 | 159,081 | 1.1% | 55,539 | 54,964 | 1.0% | 105,308 | 104,117 | 1.1% | 65.5% | 95.6% | 96.1% | 1,363 | 1,341 | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 3,706 | 3,774 | (1.8)% | 1,368 | 1,401 | (2.4)% | 2,338 | 2,373 | (1.5)% | 63.1% | 93.1% | 95.6% | 1,245 | 1,235 | ||||||||||||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 3,284 | 3,287 | (0.1)% | 1,193 | 1,182 | 0.9% | 2,091 | 2,105 | (0.7)% | 63.7% | 96.6% | 96.7% | 1,017 | 1,017 | ||||||||||||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 4,849 | 4,849 | 0.0% | 1,571 | 1,424 | 10.3% | 3,278 | 3,425 | (4.3)% | 67.6% | 94.3% | 95.0% | 1,095 | 1,088 | ||||||||||||||||||||||||
Other Markets | 13 | 7,792 | 7,711 | 19,471 | 19,248 | 1.2% | 8,293 | 8,567 | (3.2)% | 11,178 | 10,681 | 4.7% | 57.4% | 95.0% | 95.9% | 886 | 868 | ||||||||||||||||||||||||
Total Other | 28 | 11,729 | 11,455 | 31,310 | 31,158 | 0.5% | 12,425 | 12,574 | (1.2)% | 18,885 | 18,584 | 1.6% | 60.3% | 94.9% | 95.8% | 960 | 946 | ||||||||||||||||||||||||
Grand Total | 152 | 54,645 | 52,601 | $ | 192,157 | $ | 190,239 | 1.0% | $ | 67,964 | $ | 67,538 | 0.6% | $ | 124,193 | $ | 122,701 | 1.2% | 64.6% | 95.5% | 96.0% | $ | 1,276 | $ | 1,255 | ||||||||||||||||
| 23 | |
Supplemental Schedule 6(c) | |||||||||||||||||||||||||||||||||||||||||
Conventional Same Store Operating Results | |||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011 | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except site, unit and per unit data) (unaudited) | |||||||||||||||||||||||||||||||||||||||||
Revenue | Expenses | Net Operating Income | Operating Margin | Average Daily Occupancy During Period | Average Revenue per Unit | ||||||||||||||||||||||||||||||||||||
Properties | Units | Effective Units | YTD 2Q 2012 | YTD 2Q 2011 | Growth | YTD 2Q 2012 | YTD 2Q 2011 | Growth | YTD 2Q 2012 | YTD 2Q 2011 | Growth | YTD 2Q 2012 | YTD 2Q 2012 | YTD 2Q 2011 | YTD 2Q 2012 | YTD 2Q 2011 | |||||||||||||||||||||||||
Target Markets | |||||||||||||||||||||||||||||||||||||||||
Los Angeles | 13 | 3,949 | 3,297 | $ | 39,204 | $ | 37,732 | 3.9% | $ | 11,196 | $ | 11,388 | (1.7)% | $ | 28,008 | $ | 26,344 | 6.3% | 71.4% | 95.8% | 96.6% | $ | 2,069 | $ | 1,975 | ||||||||||||||||
Orange County | 4 | 1,213 | 1,143 | 11,499 | 10,982 | 4.7% | 3,396 | 3,323 | 2.2% | 8,103 | 7,659 | 5.8% | 70.5% | 96.2% | 97.3% | 1,743 | 1,645 | ||||||||||||||||||||||||
San Diego | 6 | 2,144 | 2,074 | 16,678 | 16,170 | 3.1% | 4,840 | 4,498 | 7.6% | 11,838 | 11,672 | 1.4% | 71.0% | 95.5% | 95.7% | 1,404 | 1,358 | ||||||||||||||||||||||||
Southern CA Total | 23 | 7,306 | 6,514 | 67,381 | 64,884 | 3.8% | 19,432 | 19,209 | 1.2% | 47,949 | 45,675 | 5.0% | 71.2% | 95.8% | 96.5% | 1,800 | 1,721 | ||||||||||||||||||||||||
East Bay | 2 | 413 | 353 | 3,131 | 2,868 | 9.2% | 1,132 | 1,097 | 3.2% | 1,999 | 1,771 | 12.9% | 63.8% | 96.6% | 97.9% | 1,529 | 1,382 | ||||||||||||||||||||||||
San Jose | 1 | 224 | 224 | 2,299 | 2,135 | 7.7% | 825 | 815 | 1.2% | 1,474 | 1,320 | 11.7% | 64.1% | 97.2% | 97.8% | 1,760 | 1,624 | ||||||||||||||||||||||||
San Francisco | 5 | 774 | 774 | 8,356 | 7,530 | 11.0% | 2,788 | 2,517 | 10.8% | 5,568 | 5,013 | 11.1% | 66.6% | 96.5% | 97.2% | 1,865 | 1,668 | ||||||||||||||||||||||||
Northern CA Total | 8 | 1,411 | 1,351 | 13,786 | 12,533 | 10.0% | 4,745 | 4,429 | 7.1% | 9,041 | 8,104 | 11.6% | 65.6% | 96.6% | 97.5% | 1,759 | 1,585 | ||||||||||||||||||||||||
Seattle | 1 | 104 | 104 | 877 | 819 | 7.1% | 344 | 325 | 5.8% | 533 | 494 | 7.9% | 60.8% | 97.8% | 96.1% | 1,437 | 1,367 | ||||||||||||||||||||||||
Pacific Total | 32 | 8,821 | 7,969 | 82,044 | 78,236 | 4.9% | 24,521 | 23,963 | 2.3% | 57,523 | 54,273 | 6.0% | 70.1% | 95.9% | 96.6% | 1,789 | 1,694 | ||||||||||||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 9,377 | 8,601 | 9.0% | 3,067 | 3,122 | (1.8)% | 6,310 | 5,479 | 15.2% | 67.3% | 97.1% | 94.8% | 1,385 | 1,301 | ||||||||||||||||||||||||
Washington - NoVa - MD | 14 | 6,547 | 6,462 | 53,694 | 51,290 | 4.7% | 16,277 | 15,250 | 6.7% | 37,417 | 36,040 | 3.8% | 69.7% | 96.5% | 96.7% | 1,435 | 1,369 | ||||||||||||||||||||||||
Boston | 9 | 3,068 | 3,068 | 22,728 | 21,571 | 5.4% | 8,591 | 8,775 | (2.1)% | 14,137 | 12,796 | 10.5% | 62.2% | 95.9% | 96.2% | 1,287 | 1,218 | ||||||||||||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 32,068 | 30,853 | 3.9% | 12,949 | 13,361 | (3.1)% | 19,119 | 17,492 | 9.3% | 59.6% | 95.2% | 95.8% | 1,473 | 1,410 | ||||||||||||||||||||||||
Northeast Total | 32 | 14,665 | 14,501 | 117,867 | 112,315 | 4.9% | 40,884 | 40,508 | 0.9% | 76,983 | 71,807 | 7.2% | 65.3% | 96.1% | 96.2% | 1,410 | 1,342 | ||||||||||||||||||||||||
Miami | 5 | 2,471 | 2,460 | 26,145 | 24,697 | 5.9% | 8,582 | 9,237 | (7.1)% | 17,563 | 15,460 | 13.6% | 67.2% | 96.9% | 97.3% | 1,828 | 1,720 | ||||||||||||||||||||||||
Palm Beach - Fort Lauderdale | 2 | 704 | 704 | 3,739 | 3,635 | 2.9% | 1,740 | 1,673 | 4.0% | 1,999 | 1,962 | 1.9% | 53.5% | 95.7% | 96.3% | 925 | 893 | ||||||||||||||||||||||||
Orlando | 5 | 1,481 | 1,481 | 7,197 | 6,889 | 4.5% | 2,981 | 2,962 | 0.6% | 4,216 | 3,927 | 7.4% | 58.6% | 95.1% | 94.6% | 852 | 819 | ||||||||||||||||||||||||
Tampa | 4 | 1,263 | 1,196 | 5,726 | 5,568 | 2.8% | 2,379 | 2,323 | 2.4% | 3,347 | 3,245 | 3.1% | 58.5% | 95.6% | 95.2% | 834 | 815 | ||||||||||||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 8,582 | 8,101 | 5.9% | 3,728 | 3,850 | (3.2)% | 4,854 | 4,251 | 14.2% | 56.6% | 95.4% | 94.8% | 913 | 867 | ||||||||||||||||||||||||
Florida Total | 20 | 7,562 | 7,484 | 51,389 | 48,890 | 5.1% | 19,410 | 20,045 | (3.2)% | 31,979 | 28,845 | 10.9% | 62.2% | 95.9% | 95.8% | 1,194 | 1,137 | ||||||||||||||||||||||||
Houston | 5 | 2,237 | 2,168 | 9,851 | 9,718 | 1.4% | 4,426 | 4,333 | 2.1% | 5,425 | 5,385 | 0.7% | 55.1% | 93.5% | 93.9% | 810 | 796 | ||||||||||||||||||||||||
Denver | 8 | 2,177 | 2,104 | 13,038 | 12,231 | 6.6% | 4,076 | 4,040 | 0.9% | 8,962 | 8,191 | 9.4% | 68.7% | 96.4% | 97.7% | 1,071 | 992 | ||||||||||||||||||||||||
Phoenix | 8 | 1,798 | 1,498 | 6,928 | 6,573 | 5.4% | 2,544 | 2,516 | 1.1% | 4,384 | 4,057 | 8.1% | 63.3% | 96.0% | 97.0% | 803 | 754 | ||||||||||||||||||||||||
Dallas - Fort Worth | 1 | 368 | 368 | 1,853 | 1,872 | (1.0)% | 814 | 845 | (3.7)% | 1,039 | 1,027 | 1.2% | 56.1% | 94.5% | 96.6% | 889 | 878 | ||||||||||||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 6,815 | 6,366 | 7.1% | 2,525 | 2,604 | (3.0)% | 4,290 | 3,762 | 14.0% | 62.9% | 96.5% | 97.2% | 1,046 | 971 | ||||||||||||||||||||||||
Sunbelt Total | 47 | 15,437 | 14,747 | 89,874 | 85,650 | 4.9% | 33,795 | 34,383 | (1.7)% | 56,079 | 51,267 | 9.4% | 62.4% | 95.7% | 96.1% | 1,062 | 1,008 | ||||||||||||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 30,143 | 29,214 | 3.2% | 11,305 | 10,310 | 9.7% | 18,838 | 18,904 | (0.3)% | 62.5% | 95.6% | 97.0% | 1,337 | 1,277 | ||||||||||||||||||||||||
Total Target Markets | 124 | 42,916 | 41,146 | 319,928 | 305,415 | 4.8% | 110,505 | 109,164 | 1.2% | 209,423 | 196,251 | 6.7% | 65.5% | 95.9% | 96.3% | 1,352 | 1,285 | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 7,481 | 7,403 | 1.1% | 2,769 | 2,747 | 0.8% | 4,712 | 4,656 | 1.2% | 63.0% | 94.4% | 96.1% | 1,240 | 1,204 | ||||||||||||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 6,571 | 6,135 | 7.1% | 2,375 | 2,302 | 3.2% | 4,196 | 3,833 | 9.5% | 63.9% | 96.7% | 94.7% | 1,017 | 969 | ||||||||||||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 9,698 | 9,694 | 0.0% | 2,997 | 2,911 | 3.0% | 6,701 | 6,783 | (1.2)% | 69.1% | 94.6% | 95.5% | 1,092 | 1,081 | ||||||||||||||||||||||||
Other Markets | 13 | 7,792 | 7,711 | 38,719 | 37,676 | 2.8% | 16,858 | 17,037 | (1.1)% | 21,861 | 20,639 | 5.9% | 56.5% | 95.5% | 95.7% | 877 | 851 | ||||||||||||||||||||||||
Total Other | 28 | 11,729 | 11,455 | 62,469 | 60,908 | 2.6% | 24,999 | 24,997 | 0.0% | 37,470 | 35,911 | 4.3% | 60.0% | 95.3% | 95.6% | 953 | 927 | ||||||||||||||||||||||||
Grand Total | 152 | 54,645 | 52,601 | $ | 382,397 | $ | 366,323 | 4.4% | $ | 135,504 | $ | 134,161 | 1.0% | $ | 246,893 | $ | 232,162 | 6.3% | 64.6% | 95.7% | 96.2% | $ | 1,265 | $ | 1,207 | ||||||||||||||||
| 24 | |
Supplemental Schedule 6(d) | |||||||||||||||
Conventional Same Store Operating Expense Detail | |||||||||||||||
Second Quarter and Year-to-Date Second Quarter 2012 | |||||||||||||||
(in thousands) (unaudited) | |||||||||||||||
Second Quarter 2012 Compared to Second Quarter 2011 | |||||||||||||||
2Q 2012 | % of Total | 2Q 2011 | $ Change | % Change | |||||||||||
Real estate taxes | $ | 18,115 | 26.7 | % | $ | 17,537 | $ | 578 | 3.3 | % | |||||
Onsite payroll | 13,472 | 19.8 | % | 14,708 | (1,236 | ) | (8.4 | )% | |||||||
Utilities | 11,287 | 16.6 | % | 11,184 | 103 | 0.9 | % | ||||||||
Repairs and maintenance | 10,922 | 16.1 | % | 10,712 | 210 | 2.0 | % | ||||||||
Software, technology and other | 4,710 | 6.9 | % | 4,352 | 358 | 8.2 | % | ||||||||
Insurance | 4,114 | 6.1 | % | 2,606 | 1,508 | 57.9 | % | ||||||||
Marketing | 2,152 | 3.2 | % | 2,255 | (103 | ) | (4.6 | )% | |||||||
Expensed turnover costs | 3,192 | 4.6 | % | 3,018 | 174 | 5.8 | % | ||||||||
Total | $ | 67,964 | 100.0 | % | $ | 66,372 | $ | 1,592 | 2.4 | % | |||||
Second Quarter 2012 Compared to First Quarter 2012 | |||||||||||||||
2Q 2012 | % of Total | 1Q 2012 | $ Change | % Change | |||||||||||
Real estate taxes | $ | 18,115 | 26.7 | % | $ | 17,257 | $ | 858 | 5.0 | % | |||||
Onsite payroll | 13,472 | 19.8 | % | 14,423 | (951 | ) | (6.6 | )% | |||||||
Utilities | 11,287 | 16.6 | % | 13,349 | (2,062 | ) | (15.4 | )% | |||||||
Repairs and maintenance | 10,922 | 16.1 | % | 10,343 | 579 | 5.6 | % | ||||||||
Software, technology and other | 4,710 | 6.9 | % | 4,431 | 279 | 6.3 | % | ||||||||
Insurance | 4,114 | 6.1 | % | 3,011 | 1,103 | 36.6 | % | ||||||||
Marketing | 2,152 | 3.2 | % | 2,393 | (241 | ) | (10.1 | )% | |||||||
Expensed turnover costs | 3,192 | 4.6 | % | 2,331 | 861 | 36.9 | % | ||||||||
Total | $ | 67,964 | 100.0 | % | $ | 67,538 | $ | 426 | 0.6 | % | |||||
Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011 | |||||||||||||||
YTD 2Q 2012 | % of Total | YTD 2Q 2011 | $ Change | % Change | |||||||||||
Real estate taxes | $ | 35,374 | 26.1 | % | $ | 34,379 | $ | 995 | 2.9 | % | |||||
Onsite payroll | 27,895 | 20.6 | % | 30,489 | (2,594 | ) | (8.5 | )% | |||||||
Utilities | 24,636 | 18.2 | % | 24,857 | (221 | ) | (0.9 | )% | |||||||
Repairs and maintenance | 21,265 | 15.7 | % | 20,737 | 528 | 2.5 | % | ||||||||
Software, technology and other | 9,142 | 6.7 | % | 8,064 | 1,078 | 13.4 | % | ||||||||
Insurance | 7,125 | 5.3 | % | 6,079 | 1,046 | 17.2 | % | ||||||||
Marketing | 4,545 | 3.4 | % | 4,359 | 186 | 4.3 | % | ||||||||
Expensed turnover costs | 5,522 | 4.0 | % | 5,197 | 325 | 6.3 | % | ||||||||
Total | $ | 135,504 | 100.0 | % | $ | 134,161 | $ | 1,343 | 1.0 | % | |||||
| 25 |
Supplemental Schedule 7(a) | ||||||||||||||||||||||||||||||||
Total Conventional Portfolio Data by Market | ||||||||||||||||||||||||||||||||
Second Quarter 2012 Compared to Second Quarter 2011 | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2012 | Quarter Ended June 30, 2011 | |||||||||||||||||||||||||||||||
Properties | Units | Effective Units | % Aimco NOI | Average Revenue per Effective Unit | Properties | Units | Effective Units | % Aimco NOI | Average Revenue per Effective Unit | |||||||||||||||||||||||
Target Markets | ||||||||||||||||||||||||||||||||
Los Angeles | 14 | 4,645 | 3,993 | 10.4 | % | $ | 2,086 | 14 | 4,645 | 3,993 | 10.3 | % | $ | 1,984 | ||||||||||||||||||
Orange County | 4 | 1,213 | 1,143 | 3.0 | % | 1,755 | 4 | 1,213 | 1,143 | 3.0 | % | 1,662 | ||||||||||||||||||||
San Diego | 10 | 2,286 | 2,146 | 4.7 | % | 1,411 | 10 | 2,286 | 2,145 | 4.4 | % | 1,372 | ||||||||||||||||||||
Southern CA Total | 28 | 8,144 | 7,282 | 18.1 | % | 1,813 | 28 | 8,144 | 7,281 | 17.7 | % | 1,734 | ||||||||||||||||||||
East Bay | 2 | 413 | 353 | 0.8 | % | 1,550 | 2 | 413 | 353 | 0.7 | % | 1,383 | ||||||||||||||||||||
San Jose | 1 | 224 | 224 | 0.6 | % | 1,784 | 1 | 224 | 224 | 0.5 | % | 1,643 | ||||||||||||||||||||
San Francisco | 7 | 1,208 | 1,208 | 2.1 | % | 1,882 | 6 | 1,082 | 1,082 | 1.9 | % | 1,689 | ||||||||||||||||||||
Northern CA Total | 10 | 1,845 | 1,785 | 3.5 | % | 1,780 | 9 | 1,719 | 1,659 | 3.1 | % | 1,600 | ||||||||||||||||||||
Seattle | 2 | 239 | 239 | 0.6 | % | 1,653 | 2 | 239 | 200 | 0.5 | % | 1,645 | ||||||||||||||||||||
Pacific Total | 40 | 10,228 | 9,306 | 22.2 | % | 1,803 | 39 | 10,102 | 9,140 | 21.3 | % | 1,709 | ||||||||||||||||||||
Manhattan | 23 | 999 | 999 | 2.9 | % | 2,625 | 22 | 957 | 957 | 3.1 | % | 2,457 | ||||||||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 2.3 | % | 1,387 | 4 | 1,162 | 944 | 1.8 | % | 1,368 | ||||||||||||||||||||
New York Total | 25 | 2,161 | 2,161 | 5.2 | % | 1,911 | 26 | 2,119 | 1,901 | 4.9 | % | 1,925 | ||||||||||||||||||||
Washington - NoVA - MD | 16 | 7,851 | 6,917 | 14.4 | % | 1,440 | 17 | 8,015 | 7,048 | 14.1 | % | 1,359 | ||||||||||||||||||||
Boston | 11 | 4,129 | 4,129 | 7.3 | % | 1,318 | 11 | 4,129 | 4,129 | 7.0 | % | 1,246 | ||||||||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 7.2 | % | 1,472 | 7 | 3,888 | 3,664 | 6.5 | % | 1,419 | ||||||||||||||||||||
Northeast Total | 59 | 18,029 | 17,016 | 34.1 | % | 1,476 | 61 | 18,151 | 16,742 | 32.5 | % | 1,410 | ||||||||||||||||||||
Miami | 5 | 2,482 | 2,471 | 6.6 | % | 1,843 | 8 | 2,474 | 2,362 | 5.7 | % | 1,755 | ||||||||||||||||||||
Palm Beach - Fort Lauderdale | 3 | 1,076 | 1,076 | 1.1 | % | 967 | 4 | 1,265 | 1,265 | 1.2 | % | 920 | ||||||||||||||||||||
Orlando | 7 | 2,315 | 2,315 | 2.3 | % | 877 | 9 | 2,836 | 2,774 | 2.6 | % | 828 | ||||||||||||||||||||
Tampa | 5 | 1,455 | 1,388 | 1.4 | % | 842 | 6 | 1,755 | 1,688 | 1.7 | % | 827 | ||||||||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 1.8 | % | 919 | 4 | 1,643 | 1,643 | 1.7 | % | 870 | ||||||||||||||||||||
Florida Total | 24 | 8,971 | 8,893 | 13.2 | % | 1,169 | 31 | 9,973 | 9,732 | 12.9 | % | 1,080 | ||||||||||||||||||||
Houston | 5 | 2,237 | 2,168 | 2.0 | % | 815 | 6 | 2,509 | 2,050 | 2.0 | % | 795 | ||||||||||||||||||||
Denver | 8 | 2,177 | 2,104 | 3.3 | % | 1,077 | 9 | 2,553 | 1,991 | 3.0 | % | 969 | ||||||||||||||||||||
Phoenix | 9 | 2,286 | 1,986 | 2.1 | % | 842 | 14 | 3,617 | 3,109 | 3.0 | % | 734 | ||||||||||||||||||||
Dallas - Fort Worth | 1 | 368 | 368 | 0.4 | % | 896 | 2 | 569 | 569 | 0.6 | % | 812 | ||||||||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 1.6 | % | 1,062 | 5 | 1,295 | 1,125 | 1.5 | % | 966 | ||||||||||||||||||||
Sunbelt Total | 52 | 17,334 | 16,644 | 22.6 | % | 1,059 | 67 | 20,516 | 18,576 | 23.0 | % | 961 | ||||||||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 7.2 | % | 1,358 | 15 | 4,633 | 4,472 | 7.7 | % | 1,239 | ||||||||||||||||||||
Total Target Markets | 164 | 49,584 | 46,895 | 86.1 | % | 1,373 | 182 | 53,402 | 48,930 | 84.5 | % | 1,272 | ||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 1.7 | % | 1,245 | 5 | 1,180 | 993 | 1.6 | % | 1,169 | ||||||||||||||||||||
Inland Empire | — | — | — | — | — | 2 | 376 | 376 | 0.4 | % | 777 | |||||||||||||||||||||
Michigan | 3 | 3,306 | 3,306 | 2.9 | % | 734 | 3 | 3,306 | 3,306 | 2.8 | % | 709 | ||||||||||||||||||||
Minneapolis | 2 | 732 | 651 | 1.6 | % | 1,842 | 2 | 732 | 651 | 1.7 | % | 1,710 | ||||||||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 1.6 | % | 1,017 | 4 | 1,114 | 865 | 1.2 | % | 979 | ||||||||||||||||||||
Non-Target Florida | 4 | 906 | 906 | 1.0 | % | 828 | 8 | 1,796 | 1,796 | 1.6 | % | 739 | ||||||||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 2.4 | % | 1,095 | 6 | 1,643 | 1,554 | 2.6 | % | 1,096 | ||||||||||||||||||||
Providence RI | 2 | 708 | 708 | 1.1 | % | 1,216 | 2 | 708 | 708 | 1.1 | % | 1,171 | ||||||||||||||||||||
Other Markets | 2 | 2,140 | 2,141 | 1.6 | % | 746 | 4 | 2,793 | 2,634 | 2.5 | % | 753 | ||||||||||||||||||||
Total Other | 28 | 11,729 | 11,456 | 13.9 | % | 960 | 36 | 13,648 | 12,883 | 15.5 | % | 901 | ||||||||||||||||||||
Grand Total | 192 | 61,313 | 58,351 | 100.0 | % | $ | 1,290 | 218 | 67,050 | 61,813 | 100.0 | % | $ | 1,193 | ||||||||||||||||||
| 26 | |
Supplemental Schedule 7(b) | ||||||||||||||||||||||||||
Total Conventional Portfolio Data by Market | ||||||||||||||||||||||||||
First Quarter 2012 Market Information | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Aimco’s portfolio strategy focuses on B/B+ quality apartment communities located in the largest U.S. markets as measured by total apartment value. Aimco measures Conventional Property asset quality based on average rents compared to local market average rents as reported by REIS, with A-quality assets earning rents greater than 125% of local market average, B-quality assets earning rents 90% to 125% of local market average and C-quality assets earning rents less than 90% of local market average. Aimco’s geographic allocation strategy focuses on the largest U.S. markets, with market quality measured in part based on long-term growth characteristics. The following schedule illustrates Aimco’s Conventional Property portfolio quality and market growth projections based on 1Q 2012 data, the most recent period for which third-party data is available. | ||||||||||||||||||||||||||
Quarter Ended March 31, 2012 | ||||||||||||||||||||||||||
Properties | Units | Effective Units | % Aimco NOI | Average Rent per Unit [1] | Market Rent [2] | Percentage of Market Rent Average | 2012 - 2014 Projected Revenue Growth [3] | |||||||||||||||||||
Target Markets | ||||||||||||||||||||||||||
Los Angeles | 14 | 4,645 | 3,993 | 10.6 | % | $ | 1,926 | $ | 1,383 | 139.2 | % | 4.9 | % | |||||||||||||
Orange County | 4 | 1,213 | 1,143 | 3.1 | % | 1,606 | 1,513 | 106.2 | % | 6.1 | % | |||||||||||||||
San Diego | 10 | 2,286 | 2,146 | 4.7 | % | 1,269 | 1,335 | 95.1 | % | 3.9 | % | |||||||||||||||
Southern CA Total | 28 | 8,144 | 7,282 | 18.4 | % | 1,662 | 1,390 | 119.6 | % | 4.9 | % | |||||||||||||||
East Bay | 2 | 413 | 353 | 0.7 | % | 1,357 | 1,328 | 102.2 | % | 5.5 | % | |||||||||||||||
San Francisco | 1 | 224 | 224 | 0.5 | % | 1,602 | 1,545 | 103.7 | % | 3.8 | % | |||||||||||||||
San Jose | 7 | 1,208 | 1,208 | 2.1 | % | 1,642 | 1,888 | 87.0 | % | 5.8 | % | |||||||||||||||
Northern CA Total | 10 | 1,845 | 1,785 | 3.3 | % | 1,560 | 1,670 | 93.4 | % | 5.4 | % | |||||||||||||||
Seattle | 2 | 239 | 239 | 0.5 | % | 1,411 | 1,015 | 139.0 | % | 4.9 | % | |||||||||||||||
Pacific Total | 40 | 10,228 | 9,306 | 22.2 | % | 1,637 | 1,424 | 115.0 | % | 4.9 | % | |||||||||||||||
Manhattan | 22 | 957 | 957 | 2.4 | % | 2,480 | 2,885 | 86.0 | % | 5.2 | % | |||||||||||||||
Suburban New York - New Jersey | 2 | 1,162 | 1,162 | 2.3 | % | 1,237 | 1,497 | 82.6 | % | 5.2 | % | |||||||||||||||
New York Total | 24 | 2,119 | 2,119 | 4.7 | % | 1,769 | 2,124 | 83.3 | % | 5.2 | % | |||||||||||||||
Washington - NoVA - MD | 17 | 8,015 | 7,071 | 14.8 | % | 1,302 | 1,454 | 89.6 | % | 5.0 | % | |||||||||||||||
Boston | 11 | 4,129 | 4,129 | 6.9 | % | 1,203 | 1,696 | 71.0 | % | 5.3 | % | |||||||||||||||
Philadelphia | 7 | 3,888 | 3,809 | 7.1 | % | 1,286 | 1,032 | 124.6 | % | 3.8 | % | |||||||||||||||
Northeast Total | 59 | 18,151 | 17,128 | 33.5 | % | 1,332 | 1,500 | 88.8 | % | 4.8 | % | |||||||||||||||
Miami | 5 | 2,480 | 2,469 | 6.6 | % | 1,616 | 1,054 | 153.3 | % | 4.6 | % | |||||||||||||||
Palm Beach - Fort Lauderdale | 3 | 1,076 | 1,076 | 1.0 | % | 844 | 1,072 | 78.7 | % | 5.1 | % | |||||||||||||||
Orlando | 7 | 2,315 | 2,315 | 2.2 | % | 757 | 823 | 92.0 | % | 5.3 | % | |||||||||||||||
Tampa | 5 | 1,455 | 1,388 | 1.5 | % | 715 | 806 | 88.8 | % | 5.2 | % | |||||||||||||||
Jacksonville | 4 | 1,643 | 1,643 | 1.8 | % | 789 | 764 | 103.2 | % | 3.2 | % | |||||||||||||||
Florida Total | 24 | 8,969 | 8,891 | 13.1 | % | 1,018 | 903 | 112.7 | % | 4.6 | % | |||||||||||||||
Houston | 5 | 2,237 | 2,168 | 1.9 | % | 699 | 755 | 92.6 | % | 4.4 | % | |||||||||||||||
Denver | 8 | 2,177 | 2,104 | 3.3 | % | 919 | 843 | 109.1 | % | 5.4 | % | |||||||||||||||
Phoenix | 11 | 2,897 | 2,597 | 2.5 | % | 693 | 701 | 98.9 | % | 5.0 | % | |||||||||||||||
Dallas - Fort Worth | 1 | 368 | 368 | 0.4 | % | 775 | 778 | 99.6 | % | 3.8 | % | |||||||||||||||
Atlanta | 5 | 1,295 | 1,125 | 1.6 | % | 921 | 772 | 119.3 | % | 4.8 | % | |||||||||||||||
Sunbelt Total | 54 | 17,943 | 17,253 | 22.8 | % | 909 | 836 | 108.7 | % | 4.7 | % | |||||||||||||||
Chicago | 13 | 3,993 | 3,929 | 6.9 | % | 1,173 | 1,019 | 115.1 | % | 5.1 | % | |||||||||||||||
Total Target Markets | 166 | 50,315 | 47,616 | 85.4 | % | 1,219 | 1,200 | 101.6 | % | 4.9 | % | |||||||||||||||
Other | ||||||||||||||||||||||||||
Baltimore | 5 | 1,180 | 1,066 | 1.8 | % | 1,126 | 1,003 | 112.2 | % | 4.7 | % | |||||||||||||||
Inland Empire | 2 | 376 | 376 | 0.4 | % | 783 | 1,026 | 76.3 | % | 5.1 | % | |||||||||||||||
Michigan | 3 | 3,306 | 3,306 | 2.6 | % | 597 | 786 | 75.9 | % | 4.9 | % | |||||||||||||||
Minneapolis | 2 | 732 | 651 | 1.5 | % | 1,478 | 954 | 155.0 | % | 3.9 | % | |||||||||||||||
Nashville | 4 | 1,114 | 1,114 | 1.5 | % | 875 | 729 | 120.0 | % | 3.5 | % | |||||||||||||||
Non-Target Florida | 4 | 906 | 906 | 1.0 | % | 709 | 965 | 73.4 | % | 4.9 | % | |||||||||||||||
Norfolk - Richmond | 6 | 1,643 | 1,564 | 2.6 | % | 964 | 858 | 112.4 | % | 3.8 | % | |||||||||||||||
Providence RI | 2 | 708 | 708 | 1.1 | % | 1,095 | 1,189 | 92.1 | % | 4.4 | % | |||||||||||||||
Other Markets | 2 | 2,140 | 2,141 | 2.1 | % | 620 | 664 | 93.4 | % | 3.6 | % | |||||||||||||||
Total Other | 30 | 12,105 | 11,832 | 14.6 | % | 815 | 845 | 96.5 | % | 4.3 | % | |||||||||||||||
Grand Total | 196 | 62,420 | 59,448 | 100.0 | % | $ | 1,135 | $ | 1,128 | 100.6 | % | 4.8 | % | |||||||||||||
[1] Represents rents after concessions and vacancy loss, divided by Effective Units. Does not include other rental income. | ||||||||||||||||||||||||||
[2] 1Q 2012 effective rents per REIS. | ||||||||||||||||||||||||||
[3] Represents the average of annual revenue growth projections published by REIS and Axiometrics, third-party providers of commercial real estate information and analyses. | ||||||||||||||||||||||||||
| 27 |
Supplemental Schedule 8 | |||||||||||||||||||||||||||||||||||
Property Disposition and Acquisition Activity | |||||||||||||||||||||||||||||||||||
(dollars in millions, except average revenue) (unaudited) | |||||||||||||||||||||||||||||||||||
Second Quarter 2012 Dispositions | |||||||||||||||||||||||||||||||||||
Number of Properties | Number of Units | Weighted Average Ownership | Gross Proceeds | NOI Cap Rate [1] | Property Debt | Net Sales Proceeds [2] | Aimco Gross Proceeds | Aimco Net Proceeds | Average Revenue per Unit | ||||||||||||||||||||||||||
Conventional | 5 | 1,151 | 100% | $ | 85.2 | 7.1 | % | $ | 38.8 | $ | 43.3 | $ | 85.2 | $ | 43.3 | $ | 825 | ||||||||||||||||||
Affordable | 11 | 1,082 | 47% | 37.2 | 10.1 | % | 27.9 | 8.3 | 13.4 | 5.0 | 610 | ||||||||||||||||||||||||
Total Dispositions | 16 | 2,233 | 74% | $ | 122.4 | 7.5 | % | $ | 66.7 | $ | 51.6 | $ | 98.6 | $ | 48.3 | $ | 759 | ||||||||||||||||||
Year-to-Date 2012 Dispositions | |||||||||||||||||||||||||||||||||||
Number of Properties | Number of Units | Weighted Average Ownership | Gross Proceeds | NOI Cap Rate [1] | Property Debt | Net Sales Proceeds [2] | Aimco Gross Proceeds | Aimco Net Proceeds | Average Revenue per Unit | ||||||||||||||||||||||||||
Conventional [3] | 8 | 2,059 | 95% | $ | 154.5 | 6.6 | % | $ | 70.7 | $ | 76.3 | $ | 144.6 | $ | 74.6 | $ | 796 | ||||||||||||||||||
Affordable | 17 | 1,659 | 51% | 57.6 | 9.4 | % | 39.6 | 16.9 | 23.6 | 8.8 | 607 | ||||||||||||||||||||||||
Total Dispositions | 25 | 3,718 | 75% | $ | 212.1 | 7.0 | % | $ | 110.3 | $ | 93.2 | $ | 168.2 | $ | 83.4 | $ | 739 | ||||||||||||||||||
Year-to-Date 2012 Acquisitions | |||||||||||||||||||||||||||||||||||
Limited Partner Transactions | |||||||||||||||||||||||||||||||||||
During the first quarter, Aimco acquired noncontrolling limited partnership interests in seven consolidated real estate partnerships that own 13 properties with average monthly revenue per effective unit of $975 and in which Aimco affiliates serve as general partner for a total cost of $40.1 million. The gross estimated fair value of the real estate corresponding to the interests Aimco acquired totaled $123.6 million. | |||||||||||||||||||||||||||||||||||
Phoenix Acquisition | |||||||||||||||||||||||||||||||||||
During the first quarter, Aimco acquired a 488-unit property located in Phoenix, Arizona for $72.3 million ($68.8 million contract price), which included Aimco's assumption of non-recourse property debt with a fair value of $33.3 million ($29.1 million outstanding principal), a 3.41% effective interest rate (5.55% contractual), and a 2019 maturity. The property's average monthly revenue per effective unit is approximately $1,100, and its average rents are approximately 47% greater than local market averages. | |||||||||||||||||||||||||||||||||||
Manhattan Acquisition | |||||||||||||||||||||||||||||||||||
During the second quarter, Aimco acquired a 42-unit property located in Manhattan for $38.9 million ($39.3 million contract price). The acquisition was funded in part using $20.0 million of newly placed non-recourse property debt with a 3.95% fixed interest rate. The property's average monthly revenue per effective unit is approximately $4,000, and its average rents are approximately 38% greater than local market averages. | |||||||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||||||
[1] NOI Cap Rate is calculated based on Aimco's share of the the trailing twelve month NOI prior to sale, less a 3.0% management fee, divided by the gross proceeds, which excludes prepayment penalties associated with the related property debt. | |||||||||||||||||||||||||||||||||||
[2] Net Sales Proceeds are after repayment of existing debt, net working capital settlements, payment of transaction costs and debt prepayment penalties. | |||||||||||||||||||||||||||||||||||
[3] Year-to-date, Aimco has disposed of Conventional Properties in the following markets: | |||||||||||||||||||||||||||||||||||
Market | Properties | Units | ||||
Target: | ||||||
Tampa | 1 | 300 | ||||
Phoenix | 4 | 1,219 | ||||
Washington D.C. | 1 | 164 | ||||
Total Target | 6 | 1,683 | ||||
Other Markets: | ||||||
Inland Empire [4] | 2 | 376 | ||||
Total Sales | 8 | 2,059 | ||||
[4] During the quarter Aimco exited the Inland Empire. | ||||||||||||||||||||
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Supplemental Schedule 9 | ||||||||||||||||||||||||
Capital Additions | ||||||||||||||||||||||||
(in thousands, except per unit data) (unaudited) | ||||||||||||||||||||||||
Capital additions are classified as either Capital Replacements (“CR”), Capital Improvements (“CI”), Redevelopment or Casualties. Non-Redevelopment and non-Casualty capital additions are apportioned between CR and CI based on the useful life of the capital item under consideration and the period over which Aimco has owned the property (i.e., the portion that was consumed during Aimco’s ownership of the item represents CR; the portion of the item that was consumed prior to Aimco’s ownership represents CI). See the Glossary for further descriptions. | ||||||||||||||||||||||||
Amounts below represent actual additions related to residential properties that are owned and managed by Aimco at the end of the period. These amounts include consolidated and unconsolidated properties and are not adjusted for Aimco’s ownership interest in such properties. Amounts do not include capital additions related to: - properties sold during the period or properties held for sale at the end of the period; - properties that are not multi-family such as commercial operations or fitness facilities at Aimco's multi-family properties; and - properties that Aimco owns but does not manage. See the Glossary for a reconciliation of these amounts to GAAP capital additions. | ||||||||||||||||||||||||
Actual Additions Three Months Ended June 30, 2012 | Actual Additions Six Months Ended June 30, 2012 | |||||||||||||||||||||||
Conventional | Affordable | Total | Conventional | Affordable | Total | |||||||||||||||||||
Capital Additions | ||||||||||||||||||||||||
Capital Replacements | ||||||||||||||||||||||||
Buildings and grounds | $ | 8,222 | $ | 1,892 | $ | 10,114 | $ | 14,994 | $ | 3,323 | $ | 18,317 | ||||||||||||
Turnover capital additions | 4,075 | 702 | 4,777 | 8,489 | 1,567 | 10,056 | ||||||||||||||||||
Capitalized site payroll and indirect costs | 1,622 | 172 | 1,794 | 2,730 | 250 | 2,980 | ||||||||||||||||||
Total Capital Replacements | 13,919 | 2,766 | 16,685 | 26,213 | 5,140 | 31,353 | ||||||||||||||||||
Capital Improvements | 18,825 | 756 | 19,581 | 34,457 | 1,271 | 35,728 | ||||||||||||||||||
Redevelopment Additions | 24,566 | — | 24,566 | 40,233 | — | 40,233 | ||||||||||||||||||
Casualty | 884 | 1,395 | 2,279 | 2,430 | 1,537 | 3,967 | ||||||||||||||||||
Total Capital Additions | $ | 58,194 | $ | 4,917 | $ | 63,111 | $ | 103,333 | $ | 7,948 | $ | 111,281 | ||||||||||||
Total units | 59,867 | 14,555 | 74,422 | 59,867 | 14,555 | 74,422 | ||||||||||||||||||
Total Capital Replacements per unit | $ | 232 | $ | 190 | $ | 224 | $ | 438 | $ | 353 | $ | 421 | ||||||||||||
| 29 |
Supplemental Schedule 10 | ||||||||||||||||||||||||||||
Summary of Redevelopment Activity | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||
(dollars in millions) (unaudited) | ||||||||||||||||||||||||||||
Schedule | Average Rents | |||||||||||||||||||||||||||
Total Number of Units | Total Project Cost | Inception-to-Date Investment [1] | Construction Start | Initial Occupancy | Construction Complete | Stabilized/ Restabilized Operations | Pre- Redevelopment [2] | Stabilized [3] | Market Rent Growth Since Construction Start [4] | Occupancy [5] | ||||||||||||||||||
Held for Redevelopment | ||||||||||||||||||||||||||||
Lincoln Place, Venice, CA | 696 | In planning | $ | 184.2 | In planning | In planning | In planning | In planning | n/a | In planning | n/a | Vacant | ||||||||||||||||
The Preserve at Marin, Corte Madera, CA | 126 | In planning | 47.6 | In planning | In planning | In planning | In planning | n/a | In planning | n/a | Vacant | |||||||||||||||||
Subtotal | 822 | $ | 231.8 | |||||||||||||||||||||||||
Under Redevelopment | ||||||||||||||||||||||||||||
Elm Creek, Elmhurst, IL [6] | 28 | $ | 9.9 | $ | 0.7 | 2Q 2012 | 4Q 2012 | 2Q 2013 | 3Q 2013 | n/a | $2,946 | n/a | n/a | |||||||||||||||
Flamingo South Beach, Miami, FL | 1,127 | 4.1 | 1.9 | 3Q 2011 | n/a-exterior only | 4Q 2012 | 1Q 2013 | $1,770 | $1,800 | 3.2 | % | 95.6% | ||||||||||||||||
Pacific Bay Vistas, San Bruno, CA | 308 | 96.5 | 53.7 | 4Q 2011 | 3Q 2012 | 2Q 2013 | 3Q 2013 | n/a | $2,200 | 4.4 | % | Vacant | ||||||||||||||||
The Palazzo at Park La Brea, Los Angeles, CA [7] | 521 | 15.7 | 2.0 | 1Q 2012 | 4Q 2012 | 3Q 2014 | 4Q 2014 | $2,861 | $3,171 | 1.8 | % | 95.9% | ||||||||||||||||
Plantation Gardens, Plantation, FL | 372 | 6.0 | 4.4 | 3Q 2011 | 3Q 2012 | 4Q 2012 | 1Q 2013 | $892 | $977 | 1.3 | % | 71.1% | ||||||||||||||||
Subtotal | 2,356 | $ | 132.2 | $ | 62.7 | |||||||||||||||||||||||
Grand Total | 3,178 | $ | 132.2 | $ | 294.5 | |||||||||||||||||||||||
Actual 2012 Investment | ||||||||||||||||||||||||||||
First Quarter 2012 | Second Quarter 2012 | Year-to-Date | ||||||||||||||||||||||||||
Held for Redevelopment | $ | 10.8 | $ | 18.8 | $ | 29.6 | ||||||||||||||||||||||
Under Redevelopment | 4.6 | 19.6 | 24.2 | |||||||||||||||||||||||||
Other Redevelopment [8] | 0.3 | 1.8 | 2.1 | |||||||||||||||||||||||||
Total | $ | 15.7 | $ | 40.2 | $ | 55.9 | ||||||||||||||||||||||
[1] Lincoln Place and Pacific Bay Vistas amounts are net of 4Q 2008 impairment losses of $85.4 million and $5.7 million, respectively. | ||||||||||||||||||||||||||||
[2] Average rents for the quarter preceding redevelopment start. | ||||||||||||||||||||||||||||
[3] Rents based on market rents for comparable product for the quarter preceding redevelopment start. Does not include future market rent growth. | ||||||||||||||||||||||||||||
[4] Represents change in submarket rents from the quarter in which construction started to first quarter 2012 based on the average of REIS and Axio. First quarter 2012 is most recent data. | ||||||||||||||||||||||||||||
[5] Represents average daily occupancy during the quarter except as it relates to vacant or previously vacant properties, in which case quarter-end physical occupancy is reported. | ||||||||||||||||||||||||||||
As of June 30, 2012, such vacant or previously vacant properties are: Lincoln Place; The Preserve at Marin; and Pacific Bay Vistas. | ||||||||||||||||||||||||||||
[6] Aimco's Elm Creek project involves the construction of 28 townhomes to be built on a now-vacant land parcel adjacent to the Elm Creek community. | ||||||||||||||||||||||||||||
[7] The Palazzo is owned in a joint venture in which Aimco has an approximate 53% interest. Aimco’s share of this $15.7 million investment is $8.3 million. | ||||||||||||||||||||||||||||
[8] Amount represents capitalizable costs associated with projects in our redevelopment pipeline that are not listed above. Anticipated 2012 redevelopment starts not | ||||||||||||||||||||||||||||
listed above include: | ||||||||||||||||||||||||||||
2900 on First, Seattle, WA | ||||||||||||||||||||||||||||
Park Towne Place, Philadelphia, PA | ||||||||||||||||||||||||||||
The Sterling, Philadelphia, PA | ||||||||||||||||||||||||||||
| 30 | |
GLOSSARY AND RECONCILIATIONS OF NON-GAAP FINANCIAL AND OPERATING MEASURES
This Earnings Release and Supplemental Information include certain financial 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.
ACQUISITION PROPERTIES: Properties acquired since January 1, 2011.
ADJUSTED INTEREST EXPENSE: Adjusted Interest Expense represents Aimco's proportionate share of interest expense less (i) prepayment penalties and amortization of deferred financing costs and (ii) the amount of interest income recognized by Aimco related to its investment in the subordinated tranches in a securitization trust holding only Aimco property debt.
AFFORDABLE PROPERTIES: Affordable Properties benefit from governmental programs intended to provide housing to people with low or moderate incomes. These programs, which are usually administered by the U.S. Department of Housing and Urban Development (HUD) or state housing finance agencies, typically provide mortgage insurance, favorable financing terms, tax credit equity, or rental assistance payments to the property owners. Under these programs, rent adjustments are made in accordance with property-specific contracts between Aimco and HUD, with rent increases generally based on an adjustment factor set by HUD annually.
AIMCO OPERATING PARTNERSHIP: AIMCO Properties, L.P., a Delaware limited partnership, is the operating partnership in Aimco's UPREIT structure. Aimco owns approximately 95% of the common partnership units of the Aimco Operating Partnership.
AIMCO PROPORTIONATE FINANCIAL INFORMATION: Non-GAAP measures representing Aimco's share of financial information discussed in this Earnings Release and Supplemental Information. Aimco's proportionate share of financial information includes Aimco's share of unconsolidated real estate partnerships and excludes noncontrolling interests in consolidated real estate partnerships. Proportionate reporting benefits the users of Aimco's financial information by providing the amount of revenues, expenses, assets and liabilities attributable only to Aimco stockholders. Aimco also refers to this measure as “Aimco's Share” of financial information. See Supplemental Schedules 1, 3 and 4 for reconciliation of Aimco's proportionate share of financial results to Aimco's consolidated financial statements.
CAPITAL ADDITIONS DEFINITIONS AND RECONCILIATION
CAPITAL IMPROVEMENTS (CI): CI includes all non-Redevelopment capital additions that are made to enhance the value, profitability or useful life of an asset from its original purchase condition.
CAPITAL REPLACEMENTS (CR): Unlike CI, CR does not increase the useful life of an asset from its original purchase condition. CR represents the portion of capital additions that are deemed to replace the consumed portion of acquired capital assets. CR is deducted in the calculation of AFFO.
CASUALTY CAPITAL ADDITIONS: Casualty capital additions represent capitalized costs incurred in connection with the restoration of an asset after a casualty event such as a hurricane, tornado or flood.
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Supplemental Schedule 9 contains capital additions information related to (1) residential properties that Aimco owns and manages at the end of the period, (2) properties that are consolidated in Aimco's GAAP financial statements, and (3) properties that are accounted for under the equity method of accounting in Aimco's GAAP financial statements. Amounts do not include capital additions related to:
- consolidated properties sold during the period or classified as held for sale at the end of the period;
- consolidated properties that are not multi-family such as commercial properties or fitness facilities; or
- consolidated properties that Aimco owns but does not manage.
Aimco believes the capital addition detail provided in Supplemental Schedule 9 provides an enhanced understanding of capital additions related to our primary business of owning and operating apartment communities. A reconciliation of capital additions presented on Supplemental Schedule 9 to Aimco's consolidated GAAP information is presented below.
(in thousands) (unaudited) | Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | |||||
Capital Additions per Schedule 9 | $ | 63,111 | $ | 111,281 | |||
Capital additions related to: | |||||||
Unconsolidated real estate partnerships | (283 | ) | (461 | ) | |||
Consolidated sold and held for sale properties | 97 | 593 | |||||
Consolidated properties Aimco owns but does not manage | 39 | 46 | |||||
Consolidated capital additions | $ | 62,964 | $ | 111,459 | |||
CONVENTIONAL PROPERTIES: Conventional Properties represent Aimco's portfolio of market-rate apartment communities. Aimco focuses on owning and operating apartment communities with rents that are 100% to 125% of local market average rents and concentrates its investment in the largest apartment markets in the United States, as measured by apartment value.
DEBT TO EBITDA RATIO: The ratio of (a) Aimco's proportionate share of debt net of Aimco's proportionate share of cash and restricted cash, and Aimco's investment in the subordinated tranches in a securitization trust holding only Aimco property debt to (b) EBITDA.
DEBT AND PREFERRED EQUITY TO EBITDA RATIO: The ratio of (a) Aimco's proportionate share of debt net of Aimco's proportionate share of cash and restricted cash, and Aimco's investment in the subordinated tranches in a securitization trust holding only Aimco property debt, plus Aimco's preferred stock and the preferred units of the Aimco Operating Partnership to (b) EBITDA.
DEBT SERVICE COVERAGE RATIO: As defined in Aimco's credit agreement, the ratio of (a) Earnings Before Interest, Taxes, Depreciation and Amortization (Compliance EBITDA), reduced by certain capital expenditure reserves, to (b) debt service, which represents the sum of (i) Aimco's proportionate share of interest expense (excluding prepayment penalties and amortization of deferred financing costs) and (ii) debt amortization, for the four fiscal quarters preceding the date of calculation.
EFFECTIVE UNITS: The number of actual property units multiplied by Aimco's ownership interest in the property as of the end of the current period. Effective Units may be used to analyze Aimco's proportionate financial measures on a per-unit basis.
| 32 |
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA): EBITDA is the numerator used in Aimco's calculation of EBITDA Coverage of Interest Ratio and EBITDA Coverage of Preferred Dividends and Interest Ratio. EBITDA is computed by adding to Aimco's Pro forma FFO (a) Aimco's proportionate share of interest expense, taxes, depreciation and amortization related to non-real estate assets, non-cash stock compensation expense and (b) Preferred Dividends.
EBITDA COVERAGE OF INTEREST RATIO: The ratio of (a) EBITDA to (b) Adjusted Interest Expense . Aimco's management uses this ratio as one measure of leverage.
EBITDA COVERAGE OF INTEREST AND PREFERRED DIVIDENDS RATIO: The ratio of (a) EBITDA to (b) the sum of Adjusted Interest Expense and Preferred Dividends. Aimco's management uses this ratio as one measure of leverage.
FIXED CHARGE COVERAGE RATIO: As defined by Aimco's credit agreement, the ratio of (a) Compliance EBITDA to (b) fixed charges, which represent the sum of (i) Aimco's proportionate share of interest expense (excluding prepayment penalties and amortization of deferred financing costs), (ii) debt amortization and (iii) Preferred Dividends, for the four fiscal quarters preceding the date of calculation.
FREE CASH FLOW INTERNAL RATE OF RETURN: Free Cash Flow represents a property's net operating income less capital spending required to maintain the condition of the property, and a Free Cash Flow Internal Rate of Return represents the rate of return generated by discounting the expected Free Cash Flow from the property and the proceeds from its eventual sale.
FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance, which the National Association of Real Estate Investment Trusts (NAREIT) defines as net income, computed in accordance with GAAP, excluding gains from sales of, and impairment losses recognized with respect to, depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Aimco computes FFO for all periods presented in accordance with the guidance set forth by NAREIT. In October 2011, NAREIT revised its definition of FFO to exclude operating real estate impairments effective for the fourth quarter 2011. All prior period FFO results included in this Earnings Release have been restated accordingly.
In addition to FFO, Aimco uses PRO FORMA FUNDS FROM OPERATIONS (Pro forma FFO) and ADJUSTED FUNDS FROM OPERATIONS (AFFO) to measure performance. Pro forma FFO represents FFO as defined above, excluding preferred equity redemption related amounts (adjusted for noncontrolling interests). Preferred equity redemption related amounts (gains or losses) are items that periodically affect Aimco's operating results. Aimco excludes preferred equity redemption related amounts (gains or losses) from Pro forma FFO because such amounts are not representative of operating performance. AFFO represents Pro forma FFO reduced by Capital Replacements (also adjusted for noncontrolling interests).
FFO, Pro forma FFO and AFFO are helpful to investors in understanding Aimco's performance because they capture features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. There can be no assurance that Aimco's method for computing FFO, Pro forma FFO or AFFO is comparable with that of other real estate investment trusts. Net income (loss) attributable to Aimco common stockholders as determined in accordance with GAAP is reconciled to FFO and Pro forma FFO as presented on Supplemental Schedule 1 and reconciled to AFFO on the following page.
| 33 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in thousands, except per share data) (unaudited) | ||||||||||||||||
Net income (loss) attributable to Aimco common stockholders | $ | 523 | $ | (33,177 | ) | $ | (10,086 | ) | $ | (64,950 | ) | |||||
Adjustments: | ||||||||||||||||
Depreciation and amortization | 93,052 | 86,964 | 185,380 | 178,881 | ||||||||||||
Depreciation and amortization related to non-real estate assets | (3,352 | ) | (3,218 | ) | (6,630 | ) | (6,382 | ) | ||||||||
Depreciation of rental property related to noncontrolling partners and unconsolidated entities | (5,769 | ) | (6,959 | ) | (11,714 | ) | (14,727 | ) | ||||||||
Gain on dispositions of unconsolidated real estate and other, net of noncontrolling partners' interest | (300 | ) | (655 | ) | (313 | ) | (812 | ) | ||||||||
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest | 6,915 | — | 12,537 | — | ||||||||||||
Discontinued operations: | ||||||||||||||||
Gain on dispositions of real estate, net of income taxes and noncontrolling partners' interest | (40,542 | ) | (12,939 | ) | (68,707 | ) | (18,677 | ) | ||||||||
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest | (69 | ) | 2,867 | 226 | 3,737 | |||||||||||
Depreciation of rental property, net of noncontrolling partners' interest | 1,272 | 7,038 | 3,716 | 14,588 | ||||||||||||
Common noncontrolling interests in Aimco Operating Partnership's share of above adjustments | (3,225 | ) | (5,029 | ) | (7,386 | ) | (10,832 | ) | ||||||||
Amounts allocable to participating securities | (101 | ) | (84 | ) | (238 | ) | (257 | ) | ||||||||
FFO Attributable to Aimco Common Stockholders - Diluted | $ | 48,404 | $ | 34,808 | $ | 96,785 | $ | 80,569 | ||||||||
Preferred equity redemption related amounts | 10,530 | (2,749 | ) | 10,530 | (2,749 | ) | ||||||||||
Common noncontrolling interests in Aimco Operating Partnership's share of above adjustments | (679 | ) | 187 | (679 | ) | 187 | ||||||||||
Amounts allocable to participating securities | (40 | ) | 10 | (46 | ) | 13 | ||||||||||
Pro forma Funds From Operations Attributable to Aimco Common Stockholders - Diluted | $ | 58,215 | $ | 32,256 | $ | 106,590 | $ | 78,020 | ||||||||
Capital Replacements, net of common noncontrolling interests in Aimco Operating Partnership | (15,084 | ) | (16,188 | ) | (28,380 | ) | (27,695 | ) | ||||||||
Amounts allocable to participating securities | 57 | 74 | 131 | 245 | ||||||||||||
AFFO Attributable to Aimco Common Stockholders - Diluted | $ | 43,188 | $ | 16,142 | $ | 78,341 | $ | 50,570 | ||||||||
Weighted average shares - diluted FFO | 127,807 | 119,484 | 124,337 | 118,567 | ||||||||||||
FFO per share (diluted) | $ | 0.38 | $ | 0.29 | $ | 0.78 | $ | 0.68 | ||||||||
Pro forma FFO per share (diluted) | $ | 0.46 | $ | 0.27 | $ | 0.86 | $ | 0.66 | ||||||||
AFFO per share (diluted) | $ | 0.34 | $ | 0.14 | $ | 0.63 | $ | 0.43 | ||||||||
NEW LEASE AND RENEWAL RATES: Aimco measures changes in rental rates by comparing, on a lease-by-lease basis, the rate on a newly executed lease to the rate on the expiring lease for that same apartment. Newly executed leases are classified as either a new lease, where a vacant apartment is leased to a new customer, or a renewal of an existing lease.
OTHER AFFORDABLE PROPERTIES: Affordable Properties that do not meet the Same Store Property definition because they are not managed by Aimco and/or Aimco's ownership interest is less than 10%.
OTHER CONVENTIONAL PROPERTIES: Conventional Properties that have significant rent control restrictions, university housing properties, non-multi-family such as commercial operations or fitness facilities at Aimco's multi-family properties, and properties that had not reached and maintained a stabilized level of occupancy as of January 1, 2011, often due to a casualty event.
| 34 |
OTHER EXPENSES, NET: Other expenses, net includes franchise taxes, risk management activities related to our unconsolidated partnerships, certain other corporate expenses and partnership expenses (partnership level expenses incurred directly or indirectly for services such as audit, tax and legal).
PREFERRED DIVIDENDS: Preferred dividends include dividends paid with respect to Aimco's Preferred Stock and the Aimco Operating Partnership Preferred Partnership Units.
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 considered by many in the real estate industry to be a useful measure for determining the value of real estate. A reconciliation of NOI as presented in this Earnings Release and Supplemental Information to Aimco's consolidated GAAP amounts is provided below and on the following page.
Reconciliation of Proportionate Property NOI Amounts in Supplemental Schedule 1(a) to Proportionate Property NOI Amounts Included in Aimco's Earnings Release and Supplemental Schedule 6(a) | ||||||||||||||||||||||||||||||||
Second Quarter 2012 Compared to Second Quarter 2011 | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Three Months June 30, 2012 | Three Months Ended June 30, 2011 | |||||||||||||||||||||||||||||||
Proportionate Amount | Properties Owned but Not Managed | Ownership Adjustments | Proportionate Property Amount | Proportionate Amount | Properties Owned but Not Managed | Ownership Adjustments | Proportionate Property Amount | |||||||||||||||||||||||||
Real estate operations: | ||||||||||||||||||||||||||||||||
Rental and other property revenues | ||||||||||||||||||||||||||||||||
Conventional Same Store | $ | 192,416 | $ | — | $ | (259 | ) | $ | 192,157 | $ | 179,842 | $ | — | $ | 3,780 | $ | 183,622 | |||||||||||||||
Affordable Same Store | 30,244 | — | — | 30,244 | 28,986 | — | — | 28,986 | ||||||||||||||||||||||||
Total Same Store | 222,660 | — | (259 | ) | 222,401 | 208,828 | — | 3,780 | 212,608 | |||||||||||||||||||||||
Other Conventional | 19,080 | (1,618 | ) | — | 17,462 | 17,598 | (1,189 | ) | — | 16,409 | ||||||||||||||||||||||
Other Affordable | 2,129 | (2,129 | ) | — | — | 2,713 | (2,713 | ) | — | — | ||||||||||||||||||||||
Total rental and other property revenues | 243,869 | (3,747 | ) | (259 | ) | 239,863 | 229,139 | (3,902 | ) | 3,780 | 229,017 | |||||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||||||||||
Conventional Same Store | 67,862 | — | 102 | 67,964 | 64,527 | — | 1,845 | 66,372 | ||||||||||||||||||||||||
Affordable Same Store | 11,846 | — | 81 | 11,927 | 11,739 | — | 121 | 11,860 | ||||||||||||||||||||||||
Total Same Store | 79,708 | — | 183 | 79,891 | 76,266 | — | 1,966 | 78,232 | ||||||||||||||||||||||||
Other Conventional | 8,972 | (1,001 | ) | — | 7,971 | 8,090 | (778 | ) | (262 | ) | 7,050 | |||||||||||||||||||||
Other Affordable | 1,203 | (1,203 | ) | — | — | 1,625 | (1,625 | ) | — | — | ||||||||||||||||||||||
Total property operating expenses | 89,883 | (2,204 | ) | 183 | 87,862 | 85,981 | (2,403 | ) | 1,704 | 85,282 | ||||||||||||||||||||||
Property NOI: | ||||||||||||||||||||||||||||||||
Conventional Same Store | 124,554 | — | (361 | ) | 124,193 | 115,315 | — | 1,935 | 117,250 | |||||||||||||||||||||||
Affordable Same Store | 18,398 | — | (81 | ) | 18,317 | 17,247 | — | (121 | ) | 17,126 | ||||||||||||||||||||||
Total Same Store | 142,952 | — | (442 | ) | 142,510 | 132,562 | — | 1,814 | 134,376 | |||||||||||||||||||||||
Other Conventional | 10,108 | (617 | ) | — | 9,491 | 9,508 | (411 | ) | 262 | 9,359 | ||||||||||||||||||||||
Other Affordable | 926 | (926 | ) | — | — | 1,088 | (1,088 | ) | — | — | ||||||||||||||||||||||
Net real estate operations | $ | 153,986 | $ | (1,543 | ) | $ | (442 | ) | $ | 152,001 | $ | 143,158 | $ | (1,499 | ) | $ | 2,076 | $ | 143,735 | |||||||||||||
% Aimco 2Q 2012 NOI | Revenue | Expenses | NOI | |||||||||||||||||||||||||||||
Year-over-Year Change: | ||||||||||||||||||||||||||||||||
Conventional Same Store | 82 | % | 4.6 | % | 2.4 | % | 5.9 | % | ||||||||||||||||||||||||
Affordable Same Store | 12 | % | 4.3 | % | 0.6 | % | 7.0 | % | ||||||||||||||||||||||||
Total Same Store | 94 | % | 4.6 | % | 2.1 | % | 6.1 | % | ||||||||||||||||||||||||
Other Conventional | 6 | % | 6.4 | % | 13.1 | % | 1.4 | % | ||||||||||||||||||||||||
Net real estate operations | 100 | % | 4.7 | % | 3.0 | % | 5.8 | % | ||||||||||||||||||||||||
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Reconciliation of GAAP to Supplemental Schedule 6(b) Proportionate Conventional Same Store NOI Amounts | ||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||
Three Months Ended March 31, 2012 | ||||||||||||||||||||||||
Consolidated Amounts | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Ownership Adjustments | Proportionate Property Amount | |||||||||||||||||||
Conventional Same Store: | ||||||||||||||||||||||||
Rental and other property revenues | $ | 199,634 | $ | — | $ | (11,014 | ) | $ | 188,620 | $ | 1,619 | $ | 190,239 | |||||||||||
Property operating expenses | 70,830 | — | (4,217 | ) | 66,613 | 925 | 67,538 | |||||||||||||||||
Property NOI | $ | 128,804 | $ | — | $ | (6,797 | ) | $ | 122,007 | $ | 694 | $ | 122,701 | |||||||||||
Reconciliation of Proportionate Property NOI Amounts in Supplemental Schedule 1(b) to Proportionate Property NOI Amounts Included in Aimco's Earnings Release and Supplemental Schedule 6(c) | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011 | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Six Months June 30, 2012 | Six Months Ended June 30, 2011 | |||||||||||||||||||||||||||||||
Proportionate Amount | Properties Owned but Not Managed | Ownership Adjustments | Proportionate Property Amount | Proportionate Amount | Properties Owned but Not Managed | Ownership Adjustments | Proportionate Property Amount | |||||||||||||||||||||||||
Real estate operations: | ||||||||||||||||||||||||||||||||
Rental and other property revenues | ||||||||||||||||||||||||||||||||
Conventional Same Store | $ | 381,037 | $ | — | $ | 1,360 | $ | 382,397 | $ | 357,261 | $ | — | $ | 9,062 | $ | 366,323 | ||||||||||||||||
Affordable Same Store | 60,234 | — | — | 60,234 | 58,078 | — | — | 58,078 | ||||||||||||||||||||||||
Total Same Store | 441,271 | — | 1,360 | 442,631 | 415,339 | — | 9,062 | 424,401 | ||||||||||||||||||||||||
Other Conventional | 36,006 | (2,820 | ) | — | 33,186 | 34,549 | (2,387 | ) | 136 | 32,298 | ||||||||||||||||||||||
Other Affordable | 4,028 | (4,028 | ) | — | — | 5,445 | (5,445 | ) | — | — | ||||||||||||||||||||||
Total rental and other property revenues | 481,305 | (6,848 | ) | 1,360 | 475,817 | 455,333 | (7,832 | ) | 9,198 | 456,699 | ||||||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||||||||||
Conventional Same Store | 134,475 | — | 1,029 | 135,504 | 129,924 | — | 4,237 | 134,161 | ||||||||||||||||||||||||
Affordable Same Store | 24,151 | — | 194 | 24,345 | 23,488 | — | 208 | 23,696 | ||||||||||||||||||||||||
Total Same Store | 158,626 | — | 1,223 | 159,849 | 153,412 | — | 4,445 | 157,857 | ||||||||||||||||||||||||
Other Conventional | 17,794 | (1,788 | ) | — | 16,006 | 16,767 | (1,547 | ) | (451 | ) | 14,769 | |||||||||||||||||||||
Other Affordable | 2,173 | (2,173 | ) | — | — | 3,274 | (3,274 | ) | — | — | ||||||||||||||||||||||
Total property operating expenses | 178,593 | (3,961 | ) | 1,223 | 175,855 | 173,453 | (4,821 | ) | 3,994 | 172,626 | ||||||||||||||||||||||
Property NOI: | ||||||||||||||||||||||||||||||||
Conventional Same Store | 246,562 | — | 331 | 246,893 | 227,337 | — | 4,825 | 232,162 | ||||||||||||||||||||||||
Affordable Same Store | 36,083 | — | (194 | ) | 35,889 | 34,590 | — | (208 | ) | 34,382 | ||||||||||||||||||||||
Total Same Store | 282,645 | — | 137 | 282,782 | 261,927 | — | 4,617 | 266,544 | ||||||||||||||||||||||||
Other Conventional | 18,212 | (1,032 | ) | — | 17,180 | 17,782 | (840 | ) | 587 | 17,529 | ||||||||||||||||||||||
Other Affordable | 1,855 | (1,855 | ) | — | — | 2,171 | (2,171 | ) | — | — | ||||||||||||||||||||||
Net real estate operations | $ | 302,712 | $ | (2,887 | ) | $ | 137 | $ | 299,962 | $ | 281,880 | $ | (3,011 | ) | $ | 5,204 | $ | 284,073 | ||||||||||||||
% Aimco YTD 2012 NOI | Revenue | Expenses | NOI | |||||||||||||||||||||||||||||
Year-over-Year Change: | ||||||||||||||||||||||||||||||||
Conventional Same Store | 82 | % | 4.4 | % | 1.0 | % | 6.3 | % | ||||||||||||||||||||||||
Affordable Same Store | 12 | % | 3.7 | % | 2.7 | % | 4.4 | % | ||||||||||||||||||||||||
Total Same Store | 94 | % | 4.3 | % | 1.3 | % | 6.1 | % | ||||||||||||||||||||||||
Other Conventional | 6 | % | 2.7 | % | 8.4 | % | (2.0 | )% | ||||||||||||||||||||||||
Net real estate operations | 100 | % | 4.2 | % | 1.9 | % | 5.6 | % | ||||||||||||||||||||||||
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Reconciliation of GAAP to Supplemental Schedule 3 Trailing Twelve Month (TTM) Proportionate NOI Amounts | ||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2011 | Y2011 to Y2012 | Subtract Six Months Ended June 30, 2011 | Add Six Months Ended June 30, 2012 | |||||||||||||||||||||||||||||
Consolidated Amount | Proportionate Share of Unconsolidated Partnerships | Noncontrolling Interests | Proportionate Amount | Property Classification, Discontinued Operations and GAAP Consolidation Accounting Changes | Proportionate Amount | Proportionate Amount | TTM Proportionate Amount | |||||||||||||||||||||||||
Rental and other property revenues: | ||||||||||||||||||||||||||||||||
Conventional Same Store properties | $ | 800,269 | $ | — | $ | (56,987 | ) | $ | 743,282 | $ | (19,615 | ) | $ | 357,261 | $ | 381,037 | $ | 747,443 | ||||||||||||||
Other Conventional properties | 59,414 | 5,744 | (136 | ) | 65,022 | 2,738 | 34,549 | 36,006 | 69,217 | |||||||||||||||||||||||
Affordable properties | 180,046 | 39,458 | (85,546 | ) | 133,958 | (6,401 | ) | 63,523 | 64,262 | 128,296 | ||||||||||||||||||||||
Total rental and other property revenues | 1,039,729 | 45,202 | (142,669 | ) | 942,262 | (23,278 | ) | 455,333 | 481,305 | 944,956 | ||||||||||||||||||||||
Property operating expenses: | ||||||||||||||||||||||||||||||||
Conventional Same Store properties | 289,241 | — | (21,690 | ) | 267,551 | $ | (7,900 | ) | 129,924 | 134,475 | 264,202 | |||||||||||||||||||||
Other Conventional properties | 29,118 | 3,345 | (77 | ) | 32,386 | 908 | 16,767 | 17,794 | 34,321 | |||||||||||||||||||||||
Affordable properties | 78,620 | 24,641 | (46,598 | ) | 56,663 | (3,602 | ) | 26,762 | 26,324 | 52,623 | ||||||||||||||||||||||
Total property operating expenses | 396,979 | 27,986 | (68,365 | ) | 356,600 | (10,594 | ) | 173,453 | 178,593 | 351,146 | ||||||||||||||||||||||
Net operating income: | ||||||||||||||||||||||||||||||||
Conventional Same Store properties | 511,028 | — | (35,297 | ) | 475,731 | (11,715 | ) | 227,337 | 246,562 | 483,241 | ||||||||||||||||||||||
Other Conventional properties | 30,296 | 2,399 | (59 | ) | 32,636 | 1,830 | 17,782 | 18,212 | 34,896 | |||||||||||||||||||||||
Affordable properties | 101,426 | 14,817 | (38,948 | ) | 77,295 | (2,799 | ) | 36,761 | 37,938 | 75,673 | ||||||||||||||||||||||
Total rental and other property revenues | $ | 642,750 | $ | 17,216 | $ | (74,304 | ) | $ | 585,662 | $ | (12,684 | ) | $ | 281,880 | $ | 302,712 | $ | 593,810 | ||||||||||||||
REDEVELOPMENT PROPERTIES: Properties where (1) a substantial number of available units have been vacated for major renovations or (2) occupancy was not stabilized as of January 1, 2011 due to ongoing or completed renovations, such as exteriors, common areas or unit improvements.
SAME STORE PROPERTIES: Same Store properties are those properties (1) that are managed by Aimco, (2) in which Aimco's ownership exceeds 10%, and (3) that have reached and maintained a stabilized level of occupancy as of January 1, 2011. Same Store properties are classified as either Conventional or Affordable and properties classified in the consolidated financial statements as held for sale are not included in Same Store.
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