EX-99.1 2 q32012er-ssxex991.htm THIRD QUARTER 2012 EARNINGS RELEASE DATED NOVEMBER 1, 2012 Q3 2012 ER-SS - Ex 99.1




Page
1 
 
Earnings Release
 
 
9 
 
Consolidated Statements of Operations
 
 
11 
 
Consolidated Balance Sheets
 
 
12   
 
Schedule 1a   –   Funds From Operations (3Q 2012 v. 3Q 2011)
 
 
 
Schedule 1b   –   Funds From Operations (YTD 3Q 2012 v. YTD 3Q 2011)
 
 
16   
 
Schedule 2     –   Portfolio Summary
 
 
17    
 
Schedule 3     –   Net Asset Value Supplemental Information
 
 
19    
 
Schedule 4     –   Non-Recourse Property Debt Information
 
 
21    
 
Schedule 5     –   Share Data
 
 
22    
 
Schedule 6a   –   Conventional Same Store Operating Results (3Q 2012 v. 3Q 2011)
 
 
23   
 
Schedule 6b   –   Conventional Same Store Operating Results (3Q 2012 v. 2Q 2012)
 
 
24    
 
Schedule 6c   –   Conventional Same Store Operating Results (YTD 3Q 2012 v. YTD 3Q 2011)
 
 
 
Schedule 6d   –   Conventional Same Store Operating Expense Detail
 
 
 
26    
 
Schedule 7a   –   Total Conventional Portfolio Data by Market (3Q 2012 v. 3Q 2011)
 
 
27    
 
Schedule 7b   –   Total Conventional Portfolio Data by Market (2Q 2012 v. Local Market Average)
 
 
28    
 
Schedule 8     –   Property Disposition and Acquisition Activity
 
 
29    
 
Schedule 9     –   Capital Additions
 
 
30   
 
Schedule 10   –   Summary of Redevelopment Activity
 
 
31    
 
Glossary and Reconciliations



























Aimco Reports Third Quarter 2012 Results
Denver, Colorado, November 1, 2012 - Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today its third quarter 2012 results.
Chairman and Chief Executive Officer Terry Considine comments: “We are on track for the solid execution of our 2012 plans. Conventional Same Store operating income year-to-date has increased 6.7% over last year due to consistent renewal rent gains and good success in controlling costs. Our portfolio is much improved with average rents of $1,332, up 8% year-over-year, due to investment in property upgrades, sale of lower-rated properties, and the quality of our acquisitions. We have restarted our redevelopment program with clear plans, high-quality locations and attractive expected returns. Our balance sheet is much improved with leverage reduced by approximately $700 million.”
 
Chief Financial Officer Ernie Freedman adds: “Third quarter Pro forma FFO of $0.46 per share exceeded the midpoint of our guidance range by $0.01 per share, primarily as a result of better than expected property operating results.  At the midpoint of our guidance, we are projecting full year FFO and AFFO per share growth of approximately 11% and 31%, respectively.”

Financial Results
Third Quarter Pro forma FFO Up 12%, AFFO Up 38%
 
THIRD QUARTER
 
YEAR-TO-DATE
 
2012
 
2011
 
2012
 
2011
Net income (loss) per common share
$
0.17

 
$
(0.12
)
 
$
0.11

 
$
(0.67
)
Funds from Operations (FFO)
$
0.38

 
$
0.41

 
$
1.15

 
$
1.09

Add back (deduct) preferred equity redemption related amounts
$
0.08

 
$

 
$
0.17

 
$
(0.02
)
Pro forma Funds from Operations (Pro forma FFO)
$
0.46

 
$
0.41

 
$
1.32

 
$
1.07

Deduct Aimco's share of Capital Replacements
$
(0.13
)
 
$
(0.17
)
 
$
(0.36
)
 
$
(0.40
)
Adjusted Funds From Operations (AFFO)
$
0.33

 
$
0.24

 
$
0.96

 
$
0.67

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 second quarter 2011. Excluding these charges, comparable year-to-date Pro forma FFO and AFFO per share were $1.22 and $0.82, respectively.
Pro forma FFO - Pro forma FFO increased 12% when compared to third quarter 2011 as a result of: improved property operating results; additional income generated by investments in partnership tenders and mergers; and lower preferred stock dividends due to $600.9 million of redemptions during 2012. These positive results were somewhat offset by lower interest income and lower income from discontinued operations. Pro forma FFO was within Aimco's guidance range of $0.43 to $0.47 per share.
Adjusted Funds from Operations - AFFO increased 38% when compared to third quarter 2011. 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 with higher margins, generating AFFO growth at a faster rate than Pro forma FFO growth.





1


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. Aimco also operates a portfolio of Affordable Properties, which consists 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 Affordable Properties and reinvest capital in its Conventional portfolio.
Third Quarter Total Same Store NOI Up 6.9%, Up 6.4% Year-to-Date
 
 
THIRD QUARTER
YEAR-TO-DATE
 
 
Year-over-Year
Year-over-Year
 
% NOI
Revenue
Expenses
NOI
Revenue
Expenses
NOI
Conventional Same Store
82%
4.9%
0.5%
7.4%
4.5%
0.8%
6.7%
Affordable Same Store
12%
4.4%
6.2%
3.4%
4.0%
3.5%
4.4%
Total Same Store
94%
4.8%
1.3%
6.9%
4.5%
1.2%
6.4%
Conventional Same Store Results
 
THIRD QUARTER
 
YEAR-TO-DATE
 
Year-over-Year
 
Sequential
 
Year-over-Year
 
2012
2011
Variance
 
2nd Qtr
Variance
 
2012
2011
Variance
Average Rent Per Unit
$
1,184

$
1,134

4.4
%
 
$
1,167

1.5
 %
 
$
1,168

$
1,119

4.4
 %
Other Income Per Unit
128

118

8.5
%
 
121

5.8
 %
 
121

111

9.0
 %
Average Revenue Per Unit
$
1,312

$
1,252

4.8
%
 
$
1,288

1.9
 %
 
$
1,289

$
1,230

4.8
 %
Average Daily Occupancy
95.3
%
95.2
%
0.1
%
 
95.5
%
-0.2
 %
 
95.6
%
95.8
%
-0.2
 %
 
 
 
 
 
 
 
 
 
 
 
$ in Millions
 
 
 
 
 
 
 
 
 
 
Revenue
$
190.9

$
182.1

4.9
%
 
$
187.8

1.7
 %
 
$
564.7

$
540.2

4.5
 %
Expenses
68.1

67.8

0.5
%
 
66.3

2.8
 %
 
200.3

198.7

0.8
 %
NOI
$
122.8

$
114.3

7.4
%
 
$
121.5

1.0
 %
 
$
364.4

$
341.5

6.7
 %

Rental Rates
2012
1st Qtr
2nd Qtr
Jul
Aug
Sept
3rd Qtr
Year-to-Date
Renewal rent increases
5.1%
5.7%
6.3%
6.4%
5.6%
6.0%
5.6%
New lease rent increases
2.0%
4.3%
4.5%
4.3%
2.6%
3.8%
3.7%
Weighted average rent increases
3.4%
5.0%
5.3%
5.3%
4.1%
4.8%
4.6%

Affordable Same Store Results - For third quarter 2012, average daily occupancy for the Affordable portfolio was 98.9%, an increase of 1.2% from third quarter 2011, while average revenue per unit increased 3.2% from $960 to $991 per unit.





2


Portfolio Management
Aimco's portfolio strategy seeks predictable rent growth from a portfolio of A, B and C-quality conventional properties, averaging B/B+ in quality, and diversified among the largest coastal and job growth markets in the U.S., as measured by total apartment value.
Aimco measures Conventional Property asset quality based on 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 second quarter 2012, the most recent period for which REIS information is available, Aimco's Conventional Property rents averaged 101% of local market average rents, unchanged from first quarter 2011.

Aimco's target markets are primarily coastal markets, and also include several Sun Belt cities and Chicago, Illinois. In executing its portfolio strategy, Aimco expects to sell each year the lowest-rated 5% to 10% of its portfolio and to invest the proceeds from such sales in redevelopment and acquisition of higher-quality properties. Through this disciplined approach to capital recycling, from 2006 through 2011, Aimco increased its year-end conventional portfolio average revenue per unit at a compound annual growth rate of 5.5%. Approximately one-quarter of the revenue growth is attributable to market rent growth, notwithstanding two consecutive years of market rent declines, with the balance representing the impact of portfolio improvements through dispositions, redevelopment and acquisitions. Aimco expects to sell down its Affordable portfolio over the next four-to-five years.
Conventional Property Revenue per Unit Up 8.0% to $1,332
Third quarter 2012 Conventional portfolio average revenue per unit was $1,332, an 8.0% increase compared to third quarter 2011, as a result of year-over-year revenue growth of 4.9% and the sale of Conventional Properties during 2011 and 2012 with average revenues per unit substantially lower than those of the retained portfolio.
Dispositions - In third quarter 2012, Aimco sold eight Conventional Properties and 14 Affordable Properties with 2,349 and 1,562 units, respectively, for $235.4 million in gross proceeds. Average revenue per unit for the Conventional Properties sold during the quarter was $795, compared to the retained portfolio average of $1,332 per unit. Aimco's share of net sales proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $62.3 million.
Acquisitions - During the third quarter, Aimco acquired for $19.7 million a property located in Downtown San Diego, adjacent to the Gaslamp District. The acquisition was funded in part by the assumption of $9.7 million of non-recourse property debt, and in part by the tax-free exchange of proceeds from the sale of lower-rated properties. The acquired property consists of 84 apartment homes and approximately 8,000 square feet of commercial space. The property's average residential revenue per unit is $1,880, and its average rents are approximately 15% greater than the local market average. Aimco intends to add value to the acquisition through property upgrades and operational improvements.
Redevelopment
During the third quarter, Aimco began the redevelopment of The Preserve at Marin located in Corte Madera, California. The Preserve at Marin has unobstructed views of San Francisco Bay and Mount Tamalpais, and direct access to nearby nature preserves. Aimco acquired this vacant 126-unit property in August 2011, and, including its purchase price, expects to invest a total of $85 million in the property. First occupancy is anticipated in the second quarter 2013 and current market rents for comparable product are estimated to average $3,880 per unit.
Also during the third quarter, Aimco continued the redevelopment of its Elm Creek property in Chicago, where 28 new townhomes are being constructed on a vacant land parcel contiguous to the property. During the

3


quarter, Aimco also completed construction of an exclusive roof-top patio and lounge area and amenity upgrades at its Palazzo at Park La Brea property, located in West Los Angeles. Redevelopment of the property's four penthouse model units was substantially complete at quarter-end. Also during third quarter, Aimco began a multi-phase capital project at its 2900 on First property in Seattle. The initial phase of this project consists of Capital Replacement and Capital Improvement investments, with redevelopment beginning in 2013.
As Aimco previously announced, Aimco started in the fourth quarter the redevelopment of its Lincoln Place property in Venice, California. An earlier phase began last year with the redevelopment of four buildings with 65 apartment homes. Work was completed earlier this year and 50 of the apartment homes have been re-leased to returning residents. Over the next two years, Aimco will redevelop another 41 buildings including 631 now-vacant apartment homes, together with common areas and landscaping. Aimco will also construct on now-vacant land 13 new buildings with 99 apartment homes, a 5,000 square foot leasing center and a 6,100 square foot fitness center and pool area.
The Lincoln Place redevelopment is being funded by a $190.7 million FHA-insured loan that closed in October. The loan bears interest at 2.73% and is interest-only until 2014, when it converts to a 40-year fully amortizing loan that is freely pre-payable after 10 years. At closing, Aimco prepaid a $63 million loan secured by the property that required interest at 7.5% and that was due in fourth quarter 2013. Additionally, because of its historic significance, the property has been approved for historic tax credits, which Aimco intends to sell, expecting to raise $16 million.
During fourth quarter 2012, Aimco expects to begin multi-phase capital projects at Park Towne Place and The Sterling, both located in Center-City Philadelphia. Similar to the 2900 on First project, the initial phases of the Philadelphia projects will consist of Capital Replacement and Capital Improvement investments, with redevelopment beginning in 2013.
During 2012, Aimco expects to invest $100 million in redevelopment at ten properties. At the end of the third quarter, construction was underway at nine of these properties, including the three properties undergoing multi-phase capital projects. Over the next few years, Aimco expects to invest approximately $400 million in redevelopment of these ten properties and generate on average initial cash returns before projected market rent growth greater than 7% and Free Cash Flow Internal Rates of Return in excess of 10%.
Balance Sheet and Liquidity
Components of Aimco Leverage
 
AS OF SEPTEMBER 30, 2012
$ in Millions
Amount
% of Total
Weighted Avg Maturity (Yrs)
Weighted Avg Rate
Aimco's share of long-term, non-recourse property debt
$
4,567.0

96
%
7.7
5.49%
Outstanding borrowings on revolving line of credit
66.2

1
%
4.2
4.48%
Preferred securities
148.1

3
%
Perpetual
6.27%
Total leverage
$
4,781.3

100
%
n/a
5.50%













4


Leverage 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. 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 3rd Qtr
Expected Annualized
4th Qtr 2012
 
2012
2011
2012
2011
 
Debt to EBITDA
7.9x
8.3x
7.7x
8.2x
7.5x
Debt and Preferred Equity to EBITDA
8.1x
9.7x
8.0x
9.6x
7.7x
EBITDA Coverage of Interest
2.3x
2.1x
2.3x
2.2x
2.5x
EBITDA Coverage of Interest and Preferred Dividends
2.2x
1.7x
2.2x
1.8x
2.3x
EBITDA Coverage of Interest and Preferred Dividends ratios are provided on a pro forma basis to exclude dividends on preferred stock redeemed during 2012.
Future leverage reduction is expected from earnings growth generated by the current portfolio and by regularly scheduled property debt amortization funded from retained earnings.
Liquidity
Aimco's recourse debt at September 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 third quarter, Aimco had outstanding borrowings on its revolving credit facility of $66.2 million and available capacity was $406.8 million, net of $27.0 million of letters of credit backed by the facility. Also at the end of the quarter, Aimco had on hand $102.5 million of cash.
Equity Activity
Common Stock Offerings - Pursuant to an option granted to underwriters of a $240.7 million equity offering completed in June, Aimco sold in July 1,350,000 shares of Common Stock for net proceeds of $36.1 million, or $26.74 per share.
Preferred Stock Redemption - Also during third quarter, using primarily the proceeds from the June and July equity offerings, Aimco redeemed for $300.0 million all of the outstanding shares of its Class U Cumulative Preferred Stock. In connection with the redemption, Aimco recognized redemption related charges of $12.1 million, consisting of previously deferred issuance costs and discounts.
Dividend - As announced on October 30, 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 September 30, 2012. The third quarter 2012 dividend is payable on November 30, 2012, to stockholders of record on November 16, 2012.









5


2012 Outlook
 
FOURTH QUARTER
CURRENT
FULL YEAR
PREVIOUS
FULL YEAR
 
 
 
 
Net income (loss) per share
-$0.04 to $0.02
$0.06 to $0.12
-$0.29 to -$0.22
Pro forma FFO per share  
$0.47 to $0.53
$1.79 to $1.85
$1.78 to $1.86
AFFO per share  
 
$1.31 to $1.37
$1.30 to $1.38
 
 
 
 
Conventional Same Store Operating Measures
 
 
 
NOI change compared to third quarter 2012
3.0% to 4.0%
 
 
NOI change compared to same period 2011
5.0% to 6.0%
6.50%
6.0% to 7.0%
Revenue change compared to 2011
 
4.60%
4.75% to 5.25%
Expense change compared to 2011
 
1.25%
2.0% to 2.5%
Average daily occupancy
 
95.6%
95.5% to 96.0%
Affordable Same Store NOI change compared to 2011
 
4.00%
2.5% to 3.5%
Total Same Store NOI change compared to 2011
 
6.00%
5.5% to 6.5%

Change in Guidance for Conventional Same Store NOI Growth Compared to 2011
 
REVENUE
EXPENSE
NOI
 
 
 
 
Current full year
4.60%
1.25%
6.50%
Previous full year at the midpoint
5.00%
2.25%
6.50%
Change
(0.40)%
(1.00)%
0.00%
 
 
 
 
Change due to utilities experience
(0.20)%
(0.80)%
0.17%
Change due to 30 bps decrease in second
    half average daily occupancy
(0.20)%
n/a
(0.30)%
Other
n/a
(0.20)%
0.13%
Total change
(0.40)%
(1.00)%
0.00%
Aimco currently expects full year 2012 Conventional Same Store revenue to increase 4.6% when compared to 2011, which is 0.4% lower than the midpoint projected by Aimco in second quarter 2012. This decrease is the result of: a decrease in previously projected tenant utility reimbursements, which are accounted for in other rental income; and a decrease in expected second half average daily occupancy. Lower projected utility reimbursements are more than offset by expected utility expense savings, generating a positive impact to NOI of 0.17% compared to Aimco's prior forecast.










6


2012 Outlook (continued)
$ in Millions
CURRENT
FULL YEAR
PREVIOUS
FULL YEAR
 
 
 
Asset Management and Tax Credit Activities
 
 
Recurring Revenues
$32
$30
Recurring Expenses
$8
$5
Non-Recurring Revenues
$9
$6
Non-Recurring Expenses, including pursuit costs of $1.5
$3
$4
 
 
 
Offsite Costs
 
 
Property Management Expenses
$35
$35
General and Administrative Expenses
$48
$47
 
 
 
Capital Expenditures
 
 
Conventional Redevelopment
$100
$125 - $150
Property Upgrades
$55
$30 - $40

 
 
Transaction Activities (Aimco Share)
 
 
Acquisitions (100% Aimco Share)
$130
$130
Real Estate Value of Partnership Tenders and Mergers
$143
$160
Dispositions, before transaction expenses and repayment
    of property debt
$600 - $700
$600 - $700

Earnings Conference Call
Friday, November 2, 2012 at 1:00 p.m. EDT
Replay available until 9:00 a.m. EDT on November 19, 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: 7511607
Passcode: 10018923
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.





7


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: fourth quarter and full year 2012 results; redevelopment project investments, timelines and stabilized rents; and annualized fourth quarter 2012 leverage ratios. 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.
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 319 communities in 29 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








8


Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
 
 
 
 
 
 
 
 
 
  
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2012
 
2011
 
2012
 
2011
REVENUES:
 
 
 
 
 
 
 
 
Rental and other property revenues
 
$
256,752

 
$
242,574

 
$
760,155

 
$
725,090

Asset management and tax credit revenues
 
10,696

 
11,885

 
27,681

 
28,772

Total revenues
 
267,448

 
254,459

 
787,836

 
753,862

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
Property operating expenses
 
106,462

 
106,458

 
309,515

 
316,943

Investment management expenses
 
2,817

 
2,311

 
9,445

 
7,397

Depreciation and amortization
 
87,444

 
87,687

 
264,978

 
259,069

Provision for real estate impairment losses
 
2,453

 

 
10,801

 

General and administrative expenses
 
12,311

 
12,741

 
37,491

 
36,370

Other expense, net
 
5,230

 
3,838

 
11,514

 
12,328

Total operating expenses
 
216,717

 
213,035


643,744

 
632,107

Operating income
 
50,731

 
41,424

 
144,092

 
121,755

Interest income, net
 
2,079

 
3,372

 
7,088

 
7,295

Interest expense
 
(64,585
)
 
(68,068
)
 
(193,370
)
 
(228,251
)
Equity in income (losses) of unconsolidated real estate partnerships
 
206

 
(4,987
)
 
(2,800
)
 
(8,432
)
Gain on dispositions of interests in unconsolidated real estate and other, net
 
16,024

 
3,095

 
20,635

 
5,115

Income (loss) before income taxes and discontinued operations
 
4,455

 
(25,164
)
 
(24,355
)
 
(102,518
)
Income tax benefit
 
114

 
893

 
586

 
4,913

Income (loss) from continuing operations
 
4,569

 
(24,271
)
 
(23,769
)
 
(97,605
)
Income from discontinued operations, net
 
48,766

 
28,928

 
121,882

 
48,014

Net income (loss)
 
53,335

 
4,657

 
98,113

 
(49,591
)
Noncontrolling interests:
 
 
 
 
 
 
 
 
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships
 
(11,334
)
 
(5,464
)
 
(28,764
)
 
4,612

Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership
 
(1,609
)
 
(1,670
)
 
(4,890
)
 
(5,012
)
Net (income) loss attributable to common noncontrolling interests in Aimco Operating Partnership
 
(1,611
)
 
1,035

 
(929
)
 
5,838

Total noncontrolling interests
 
(14,554
)
 
(6,099
)
 
(34,583
)
 
5,438

Net income (loss) attributable to Aimco
 
38,781

 
(1,442
)
 
63,530

 
(44,153
)
Net income attributable to Aimco preferred stockholders
 
(14,515
)
 
(13,301
)
 
(49,136
)
 
(35,429
)
Net income attributable to participating securities
 
(103
)
 
(58
)
 
(317
)
 
(169
)
Net income (loss) attributable to Aimco common stockholders
 
$
24,163

 
$
(14,801
)
 
$
14,077

 
$
(79,751
)
Weighted average common shares outstanding - basic and diluted
 
144,959

 
120,339

 
130,960

 
118,939

Earnings (loss) per common share - basic and diluted:
 
 
 
 
 
 
 
 
Loss from continuing operations attributable to Aimco common stockholders
 
$
(0.07
)
 
$
(0.26
)
 
$
(0.60
)
 
$
(0.91
)
Income from discontinued operations attributable to Aimco common stockholders
 
0.24

 
0.14

 
0.71

 
0.24

Net income (loss) attributable to Aimco common stockholders
 
$
0.17

 
$
(0.12
)
 
$
0.11

 
$
(0.67
)





9


Consolidated Statements of Operations (continued)
Income from Discontinued Operations
Income from discontinued operations consists of the following (in thousands):
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2012
 
2011
 
2012
 
2011
Rental and other property revenues
 
$
7,297

 
$
30,365

 
$
37,244

 
$
104,551

Property operating expenses
 
(5,020
)
 
(17,279
)
 
(16,970
)
 
(54,643
)
Depreciation and amortization
 
(2,549
)
 
(10,565
)
 
(15,013
)
 
(36,365
)
Provision for real estate impairment losses
 
(2,453
)
 
(5,671
)
 
(8,837
)
 
(11,979
)
Operating (loss) income
 
(2,725
)
 
(3,150
)
 
(3,576
)
 
1,564

Interest income
 
55

 
180

 
185

 
1,019

Interest expense
 
(1,872
)
 
(5,946
)
 
(6,605
)
 
(20,171
)
Loss before gain on dispositions of real estate and income taxes
 
(4,542
)
 
(8,916
)
 
(9,996
)
 
(17,588
)
Gain on dispositions of real estate
 
55,721

 
37,467

 
139,925

 
64,901

Income tax (expense) benefit
 
(2,413
)
 
377

 
(8,047
)
 
701

Income from discontinued operations, net
 
$
48,766

 
$
28,928

 
$
121,882

 
$
48,014

Income from discontinued operations attributable to:
 
 
 
 
 
 
 
 
Noncontrolling interests in consolidated real estate partnerships
 
$
(11,683
)
 
$
(11,838
)
 
$
(22,902
)
 
$
(16,924
)
Noncontrolling interests in Aimco Operating Partnership
 
(2,141
)
 
(1,127
)
 
(6,012
)
 
(2,063
)
Total noncontrolling interests
 
(13,824
)
 
(12,965
)
 
(28,914
)
 
(18,987
)
Income from discontinued operations attributable to Aimco
 
$
34,942

 
$
15,963


$
92,968

 
$
29,027
































10



Consolidated Balance Sheets
(in thousands) (unaudited)
 
 
 
 
 
 
 
September 30, 2012
 
December 31, 2011
ASSETS
 
 
 
 
Buildings and improvements
 
$
6,593,894

 
$
6,372,683

Land
 
2,006,360

 
1,968,433

Total real estate
 
8,600,254

 
8,341,116

Accumulated depreciation
 
(2,849,046
)
 
(2,633,242
)
Net real estate
 
5,751,208

 
5,707,874

Cash and cash equivalents
 
102,515

 
91,066

Restricted cash
 
158,649

 
184,626

Accounts receivable, net
 
36,540

 
41,796

Notes receivable, net
 
103,288

 
111,205

Investment in unconsolidated real estate partnerships
 
38,249

 
47,790

Other assets
 
328,464

 
339,403

Assets held for sale
 
46,475

 
348,102

Total assets
 
$
6,565,388

 
$
6,871,862

LIABILITIES AND EQUITY
 
 
 
 
Non-recourse property debt
 
$
4,871,981

 
$
4,870,426

Revolving credit facility borrowings
 
66,200

 

Total indebtedness
 
4,938,181

 
4,870,426

Accounts payable
 
28,488

 
32,607

Accrued liabilities and other
 
235,881

 
283,247

Deferred income
 
133,054

 
139,606

Liabilities related to assets held for sale
 
46,729

 
317,918

Total liabilities
 
5,382,333

 
5,643,804

Preferred noncontrolling interests in Aimco Operating Partnership
 
80,077

 
83,384

Equity:
 
 
 
 
Perpetual Preferred Stock
 
68,114

 
657,114

Class A Common Stock
 
1,456

 
1,209

Additional paid-in capital
 
3,714,674

 
3,098,333

Accumulated other comprehensive loss
 
(6,397
)
 
(6,860
)
Distributions in excess of earnings
 
(2,902,175
)
 
(2,841,467
)
Total Aimco equity
 
875,672

 
908,329

Noncontrolling interests in consolidated real estate partnerships
 
264,286

 
270,666

Common noncontrolling interests in Aimco Operating Partnership
 
(36,980
)
 
(34,321
)
Total equity
 
1,102,978

 
1,144,674

Total liabilities and equity
 
$
6,565,388

 
$
6,871,862








11


Supplemental Schedule 1(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds From Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Page 1 of 2)
 
Three Months Ended September 30, 2012 Compared to Three Months Ended September 30, 2011
(in thousands, except per share data) (unaudited)
 
 
Three Months Ended September 30, 2012
 
Three Months Ended September 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
 
$
199,868

 
$

 
$
(8,861
)
 
$
191,007

 
$
191,082

 
$

 
$
(13,663
)
 
$
177,419

Affordable Same Store
 
34,036

 
175

 
(5,940
)
 
28,271

 
32,574

 
161

 
(5,672
)
 
27,063

Total Same Store
 
233,904

 
175

 
(14,801
)
 
219,278

 
223,656

 
161

 
(19,335
)
 
204,482

Other Conventional 
 
17,598

 
1,260

 

 
18,858

 
14,052

 
1,739

 

 
15,791

Other Affordable
 
5,122

 
5,234

 
(8,462
)
 
1,894

 
4,673

 
12,382

 
(14,114
)
 
2,941

Property management revenues, primarily from affiliates
 
128

 
(112
)
 
978

 
994

 
193

 
(176
)
 
1,361

 
1,378

Total rental and other property revenues
 
256,752

 
6,557

 
(22,285
)
 
241,024

 
242,574

 
14,106

 
(32,088
)
 
224,592

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
71,219

 

 
(3,220
)
 
67,999

 
70,776

 

 
(5,155
)
 
65,621

Affordable Same Store
 
13,542

 
86

 
(2,521
)
 
11,107

 
12,856

 
107

 
(2,546
)
 
10,417

Total Same Store
 
84,761

 
86

 
(5,741
)
 
79,106

 
83,632

 
107

 
(7,701
)
 
76,038

Other Conventional 
 
8,770

 
639

 
(2
)
 
9,407

 
6,828

 
867

 

 
7,695

Other Affordable
 
2,818

 
3,219

 
(5,106
)
 
931

 
2,426

 
7,031

 
(7,902
)
 
1,555

Casualties
 
1,975

 
3

 
17

 
1,995

 
2,848

 

 
(471
)
 
2,377

Property management expenses
 
8,138

 

 

 
8,138

 
10,724

 

 

 
10,724

Total property operating expenses
 
106,462

 
3,947

 
(10,832
)
 
99,577

 
106,458

 
8,005

 
(16,074
)
 
98,389

Net real estate operations
 
150,290

 
2,610

 
(11,453
)
 
141,447

 
136,116

 
6,101

 
(16,014
)
 
126,203

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred tax credit income
 
7,207

 

 

 
7,207

 
7,038

 

 

 
7,038

Asset management revenues
 
100

 

 
2,291

 
2,391

 
(19
)
 

 
1,363

 
1,344

Non-recurring revenues 
 
3,389

 

 

 
3,389

 
4,866

 

 
489

 
5,355

Total asset management and tax credit revenues
 
10,696

 

 
2,291

 
12,987

 
11,885

 

 
1,852

 
13,737

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment management expenses
 
(2,817
)
 

 

 
(2,817
)
 
(2,311
)
 

 

 
(2,311
)
Depreciation and amortization related to non-real estate assets
 
(3,259
)
 
(1
)
 
20

 
(3,240
)
 
(3,306
)
 
(1
)
 
30

 
(3,277
)
General and administrative expenses
 
(12,311
)
 
(2
)
 
98

 
(12,215
)
 
(12,741
)
 
(6
)
 
229

 
(12,518
)
Other expense, net
 
(5,230
)
 
26

 
667

 
(4,537
)
 
(3,838
)
 
(253
)
 
509

 
(3,582
)
Interest income
 
2,079

 
4

 
(302
)
 
1,781

 
3,372

 
10

 
272

 
3,654

Interest expense
 
(64,585
)
 
(1,420
)
 
3,529

 
(62,476
)
 
(68,068
)
 
(2,942
)
 
8,968

 
(62,042
)
Income tax benefit
 
684

 

 

 
684

 
898

 

 

 
898

Discontinued operations, net of non-FFO items
 
402

 

 
2,235

 
2,637

 
7,603

 

 
(641
)
 
6,962

Preferred dividends and distributions
 
(4,071
)
 

 

 
(4,071
)
 
(14,183
)
 

 

 
(14,183
)
Preferred redemption related amounts
 
(12,053
)
 

 

 
(12,053
)
 
(788
)
 

 

 
(788
)
Common noncontrolling interests in Aimco Operating Partnership
 
(3,174
)
 

 

 
(3,174
)
 
(3,557
)
 

 

 
(3,557
)
Amounts allocated to participating securities
 
(196
)
 

 

 
(196
)
 
(196
)
 

 

 
(196
)
Funds From Operations
 
$
56,455

 
$
1,217

 
$
(2,915
)
 
$
54,757

 
$
50,886

 
$
2,909

 
$
(4,795
)
 
$
49,000

Preferred stock redemption related amounts
 
12,053

 

 

 
12,053

 
788

 

 

 
788

Common noncontrolling interests in Aimco Operating Partnership
 
(698
)
 

 

 
(698
)
 
(54
)
 

 

 
(54
)
Amounts allocated to participating securities
 
(41
)
 

 

 
(41
)
 
(3
)
 

 

 
(3
)
Pro forma Funds From Operations
 
$
67,769

 
$
1,217

 
$
(2,915
)
 
$
66,071

 
$
51,617

 
$
2,909

 
$
(4,795
)
 
$
49,731

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares - diluted FFO
 
145,119

 
Weighted average shares - diluted FFO
 
120,670

 
 
Per Share:
 
 
 
Per Share:
 
 
 
 
Funds From Operations
 
$
0.38

 
Funds From Operations
 
$
0.41

 
 
Pro forma Funds From Operations
 
$
0.46

 
Pro forma Funds From Operations
 
$
0.41


                                                                                                                                                                                                                         
 
12


Supplemental Schedule 1(a) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
Pro Forma Funds From Operations Reconciliation to GAAP
 
 
 
 
 
 
 
 
 
 
(Page 2 of 2)
 
Three Months Ended September 30, 2012 Compared to Three Months Ended September 30, 2011
(in thousands) (unaudited)
 
 
Three Months Ended September 30, 2012
 
Three Months Ended September 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
 
$
67,769

 
$
1,217

 
$
(2,915
)
 
$
66,071

 
$
51,617

 
$
2,909

 
$
(4,795
)
 
$
49,731

Adjustments related to continuing operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
(87,444
)
 
(1,795
)
 
6,612

 
(82,627
)
 
(87,687
)
 
(3,725
)
 
9,401

 
(82,011
)
Depreciation and amortization related to non-real estate assets
 
3,259

 
1

 
(20
)
 
3,240

 
3,306

 
1

 
(30
)
 
3,277

Provision for impairment losses on depreciable assets
 
(2,453
)
 
(388
)
 
449

 
(2,392
)
 
(50
)
 
(4,523
)
 
4,475

 
(98
)
Gain on dispositions of and impairments related to unconsolidated entities and other, net of tax
 
15,456

 
1,171

 
(1,703
)
 
14,924

 
3,127

 
351

 
(3,233
)
 
245

Adjustments related to discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization related to real estate
 
(2,534
)
 

 
(1,332
)
 
(3,866
)
 
(10,495
)
 

 
1,985

 
(8,510
)
Provision for operating real estate impairment losses, net of tax
 
(2,453
)
 

 

 
(2,453
)
 
(5,671
)
 

 

 
(5,671
)
Gain on dispositions of real estate, net of tax
 
53,349

 

 
(12,425
)
 
40,924

 
37,504

 

 
(13,267
)
 
24,237

Total adjustments
 
$
(22,820
)
 
$
(1,011
)
 
$
(8,419
)
 
$
(32,250
)
 
$
(59,966
)
 
$
(7,896
)
 
$
(669
)
 
$
(68,531
)
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments
 
2,261

 

 

 
2,261

 
4,646

 

 

 
4,646

Amounts allocable to participating securities
 
134

 

 

 
134

 
141

 

 

 
141

Preferred stock redemption related amounts
 
(12,053
)
 

 

 
(12,053
)
 
(788
)
 

 

 
(788
)
Equity in income (losses) of unconsolidated real estate partnerships
 
206

 
(206
)
 

 

 
(4,987
)
 
4,987

 

 

Net income attributable to noncontrolling interests in consolidated real estate partnerships
 
(11,334
)
 

 
11,334

 

 
(5,464
)
 

 
5,464

 

Net loss attributable to Aimco common stockholders
 
$
24,163

 
$

 
$

 
$
24,163

 
$
(14,801
)
 
$

 
$

 
$
(14,801
)


                                                                                                                                                                                                                         
 
13


Supplemental Schedule 1(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds From Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Page 1 of 2)
 
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011
(in thousands, except per share data) (unaudited)
 
 
Nine Months Ended September 30, 2012
 
Nine Months Ended September 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
 
$
591,117

 
$

 
$
(28,858
)
 
$
562,259

 
$
567,243

 
$

 
$
(41,934
)
 
$
525,309

Affordable Same Store
 
101,530

 
537

 
(17,725
)
 
84,342

 
97,499

 
493

 
(16,928
)
 
81,064

Total Same Store
 
692,647

 
537

 
(46,583
)
 
646,601

 
664,742

 
493

 
(58,862
)
 
606,373

Other Conventional 
 
47,867

 
4,954

 

 
52,821

 
43,953

 
4,126

 
(136
)
 
47,943

Other Affordable
 
19,260

 
17,061

 
(30,373
)
 
5,948

 
15,346

 
31,186

 
(38,119
)
 
8,413

Property management revenues, primarily from affiliates
 
381

 
(404
)
 
2,803

 
2,780

 
1,049

 
(491
)
 
3,464

 
4,022

Total rental and other property revenues
 
760,155

 
22,148

 
(74,153
)
 
708,150

 
725,090

 
35,314

 
(93,653
)
 
666,751

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
209,279

 

 
(10,543
)
 
198,736

 
207,941

 

 
(16,029
)
 
191,912

Affordable Same Store
 
39,979

 
328

 
(7,433
)
 
32,874

 
38,705

 
378

 
(7,394
)
 
31,689

Total Same Store
 
249,258

 
328

 
(17,976
)
 
231,610

 
246,646

 
378

 
(23,423
)
 
223,601

Other Conventional 
 
23,433

 
2,689

 
(3
)
 
26,119

 
20,923

 
2,413

 
(76
)
 
23,260

Other Affordable
 
8,896

 
11,131

 
(16,909
)
 
3,118

 
8,190

 
19,419

 
(22,763
)
 
4,846

Casualties
 
2,099

 
4

 
26

 
2,129

 
9,401

 
(11
)
 
(220
)
 
9,170

Property management expenses
 
25,829

 

 

 
25,829

 
31,783

 

 

 
31,783

Total property operating expenses
 
309,515

 
14,152

 
(34,862
)
 
288,805

 
316,943

 
22,199

 
(46,482
)
 
292,660

Net real estate operations
 
450,640

 
7,996

 
(39,291
)
 
419,345

 
408,147

 
13,115

 
(47,171
)
 
374,091

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred tax credit income
 
21,892

 

 

 
21,892

 
21,204

 

 

 
21,204

Asset management revenues
 
100

 

 
4,206

 
4,306

 
1,504

 

 
2,561

 
4,065

Non-recurring revenues 
 
5,689

 

 
2

 
5,691

 
6,064

 

 
491

 
6,555

Total asset management and tax credit revenues
 
27,681

 

 
4,208

 
31,889

 
28,772

 

 
3,052

 
31,824

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment management expenses
 
(9,445
)
 

 

 
(9,445
)
 
(7,397
)
 

 

 
(7,397
)
Depreciation and amortization related to non-real estate assets
 
(9,845
)
 

 
67

 
(9,778
)
 
(9,645
)
 
(3
)
 
85

 
(9,563
)
General and administrative expenses
 
(37,491
)
 
(6
)
 
378

 
(37,119
)
 
(36,370
)
 
(8
)
 
830

 
(35,548
)
Other expense, net
 
(11,514
)
 
10

 
2,385

 
(9,119
)
 
(12,328
)
 
(116
)
 
5,169

 
(7,275
)
Interest income
 
7,088

 
17

 
(307
)
 
6,798

 
7,295

 
(105
)
 
(302
)
 
6,888

Interest expense
 
(193,370
)
 
(4,649
)
 
9,414

 
(188,605
)
 
(228,251
)
 
(7,476
)
 
29,845

 
(205,882
)
Gain (loss) on disposition of non-depreciable assets and other
 
2

 

 

 
2

 
(69
)
 

 

 
(69
)
Income tax benefit
 
1,194

 

 

 
1,194

 
4,958

 

 

 
4,958

Discontinued operations, net of non-FFO items
 
14,114

 

 
(3,183
)
 
10,931

 
31,454

 

 
(3,322
)
 
28,132

Preferred dividends and distributions
 
(31,443
)
 

 

 
(31,443
)
 
(42,402
)
 

 

 
(42,402
)
Preferred redemption related amounts
 
(22,583
)
 

 

 
(22,583
)
 
1,961

 

 

 
1,961

Common noncontrolling interests in Aimco Operating Partnership
 
(9,878
)
 

 

 
(9,878
)
 
(9,586
)
 

 

 
(9,586
)
Amounts allocated to participating securities
 
(645
)
 

 

 
(645
)
 
(569
)
 

 

 
(569
)
Funds From Operations
 
$
174,505

 
$
3,368

 
$
(26,329
)
 
$
151,544

 
$
135,970

 
$
5,407

 
$
(11,814
)
 
$
129,563

Preferred stock redemption related amounts
 
22,583

 

 

 
22,583

 
(1,961
)
 

 

 
(1,961
)
Common noncontrolling interests in Aimco Operating Partnership
 
(1,377
)
 

 

 
(1,377
)
 
134

 

 

 
134

Amounts allocated to participating securities
 
(90
)
 

 

 
(90
)
 
8

 

 

 
8

Pro forma Funds From Operations
 
$
195,621

 
$
3,368

 
$
(26,329
)
 
$
172,660

 
$
134,151

 
$
5,407

 
$
(11,814
)
 
$
127,744

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares - diluted FFO
 
131,265

 
Weighted average shares - diluted FFO
 
119,269

 
 
Per Share:
 
 
 
Per Share:
 
 
 
 
Funds From Operations
 
$
1.15

 
Funds From Operations
 
$
1.09

 
 
Pro forma Funds From Operations
 
$
1.32

 
Pro forma Funds From Operations
 
$
1.07


                                                                                                                                                                                                                         
 
14


Supplemental Schedule 1(b) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
Pro Forma Funds From Operations Reconciliation to GAAP
 
 
 
 
 
 
 
 
 
 
(Page 2 of 2)
 
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011
(in thousands) (unaudited)
 
 
Nine Months Ended September 30, 2012
 
Nine Months Ended September 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
 
$
195,621

 
$
3,368

 
$
(26,329
)
 
$
172,660

 
$
134,151

 
$
5,407

 
$
(11,814
)
 
$
127,744

Adjustments related to continuing operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
(264,978
)
 
(6,128
)
 
21,517

 
(249,589
)
 
(259,069
)
 
(9,782
)
 
29,135

 
(239,716
)
Depreciation and amortization related to non-real estate assets
 
9,845

 

 
(67
)
 
9,778

 
9,645

 
3

 
(85
)
 
9,563

Provision for impairment losses on depreciable assets
 
(10,977
)
 
(2,911
)
 
3,417

 
(10,471
)
 
(33
)
 
(5,536
)
 
5,492

 
(77
)
Gain on dispositions of and impairments related to unconsolidated entities and other, net of tax
 
20,202

 
2,871

 
(7,830
)
 
15,243

 
5,175

 
1,476

 
(5,614
)
 
1,037

Adjustments related to discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization related to real estate
 
(14,900
)
 

 
706

 
(14,194
)
 
(36,142
)
 

 
6,693

 
(29,449
)
Provision for operating real estate impairment losses, net of tax
 
(8,837
)
 

 
1,701

 
(7,136
)
 
(11,979
)
 

 
2,569

 
(9,410
)
Gain on dispositions of real estate, net of tax
 
131,504

 

 
(21,879
)
 
109,625

 
64,678

 

 
(21,764
)
 
42,914

Total adjustments
 
$
(138,141
)
 
$
(6,168
)
 
$
(2,435
)
 
$
(146,744
)
 
$
(227,725
)
 
$
(13,839
)
 
$
16,426

 
$
(225,138
)
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments
 
10,326

 

 

 
10,326

 
15,290

 

 

 
15,290

Amounts allocable to participating securities
 
418

 

 

 
418

 
392

 

 

 
392

Preferred stock redemption related amounts
 
(22,583
)
 

 

 
(22,583
)
 
1,961

 

 

 
1,961

Equity in losses of unconsolidated real estate partnerships
 
(2,800
)
 
2,800

 

 

 
(8,432
)
 
8,432

 

 

Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships
 
(28,764
)
 

 
28,764

 

 
4,612

 

 
(4,612
)
 

Net loss attributable to Aimco common stockholders
 
$
14,077

 
$

 
$

 
$
14,077

 
$
(79,751
)
 
$

 
$

 
$
(79,751
)




                                                                                                                                                                                                                         
 
15


Supplemental Schedule 2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Summary
 
 
 
 
 
 
 
 
 
As of September 30, 2012
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
Number of
Properties
 
Number of
Units
 
Effective
Units
 
Average
Ownership
 
Real Estate Portfolio:
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
145

 
52,691

 
50,914

 
97
%
 
Affordable Same Store
 
84

 
11,946

 
9,620

 
81
%
 
Total Same Store
 
229

 
64,637

 
60,534

 
94
%
 
Conventional Redevelopment
 
4

 
1,502

 
1,502

 
100
%
 
Conventional Acquisition 
 
7

 
756

 
686

 
91
%
 
Other Conventional
 
26

 
2,398

 
2,398

 
100
%
 
Other Affordable
 
48

 
4,923

 
733

 
15
%
 
Conventional Held for Sale
 
1

 
397

 
397

 
100
%
 
Affordable Held for Sale
 
4

 
228

 
22

 
10
%
 
Total real estate portfolio
 
319

 
74,841

 
66,272

 
89
%
 
 
 
 
 
 
 
 
 
 
 
Total Conventional portfolio
 
183

 
57,744

 
55,897

 
97
%
 
Total Affordable portfolio
 
136

 
17,097

 
10,375

 
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]
 
$
810,198

 
$
120,245

 
$
930,443

 
Property operating expenses [1]
 
(292,984
)
 
(47,938
)
 
(340,922
)
 
Property NOI [1]
 
517,214

 
72,307

 
589,521

 
 
 
 
 
 
 
 
 
Assumed property management fee (3.0% of revenues)
 
(24,306
)
 
(3,607
)
 
(27,913
)
 
Property NOI net of assumed property management fee
 
$
492,908

 
$
68,700

 
$
561,608

 
 
 
 
 
 
 
 
 
 
Proportionate Balance Sheet Data
 
 
 
 
 
 
 
 
As of September 30, 2012
 
 
 
 
 
 
 
 
 
 
Consolidated
GAAP
Balance Sheet
 
Proportionate
Share of
Unconsolidated
Partnerships
 
Noncontrolling
Interests
 
Proportionate
Balance
Sheet
Assets
 
 
 
 
 
 
 
 
Real estate
 
$
8,600,254

 
$
61,015

 
$
(551,709
)
 
$
8,109,560

Accumulated depreciation
 
(2,849,046
)
 
(8,924
)
 
102,308

 
(2,755,662
)
Net real estate [2]
 
5,751,208

 
52,091

 
(449,401
)
 
5,353,898

 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
102,515

 
683

 
(40,763
)
 
62,435

Restricted cash
 
158,649

 
2,145

 
(17,741
)
 
143,053

Accounts receivable, net
 
36,540

 
93

 
(3,510
)
 
33,123

Notes receivable, net
 
103,288

 

 
(1,133
)
 
102,155

Investment in unconsolidated real estate partnerships
 
38,249

 
(13,753
)
 
(23,172
)
 
1,324

Deferred financing costs, net
 
40,883

 
243

 
(3,864
)
 
37,262

Goodwill
 
56,955

 

 

 
56,955

Investment in management contracts
 
457

 

 

 
457

Other assets
 
230,169

 
245

 
7,636

 
238,050

Assets held for sale
 
46,475

 

 
(3,200
)
 
43,275

Total assets
 
$
6,565,388

 
$
41,747

 
$
(535,148
)
 
$
6,071,987

 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
Non-recourse property debt
 
$
4,871,981

 
$
32,149

 
$
(337,125
)
 
$
4,567,005

Revolving credit facility borrowings
 
66,200

 

 

 
66,200

Deferred income [3]
 
133,054

 
32

 

 
133,086

Other liabilities
 
264,369

 
9,566

 
(43,978
)
 
229,957

Liabilities related to assets held for sale
 
46,729

 

 
(5,778
)
 
40,951

Total liabilities
 
5,382,333

 
41,747

 
(386,881
)
 
5,037,199

 
 
 
 
 
 
 
 
 
Preferred noncontrolling interests in Aimco Operating Partnership
 
80,077

 

 

 
80,077

Perpetual preferred stock
 
68,114

 

 

 
68,114

Other Aimco equity
 
807,558

 

 
116,019

 
923,577

Noncontrolling interests in consolidated real estate partnerships
 
264,286

 

 
(264,286
)
 

Common noncontrolling interests in Aimco Operating Partnership
 
(36,980
)
 

 

 
(36,980
)
Total liabilities and equity
 
$
6,565,388

 
$
41,747

 
$
(535,148
)
 
$
6,071,987





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 September 30, 2012 net book values of $307 million in total. These properties are included in Aimco’s redevelopment pipeline.
[3]
Deferred income includes $85.2 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.
 
 
 
 
 
September 30, 2012
 
 
 
 
Deferred tax credit income balance
 
$
85,231

 
 
 
 
Cash contributions to be received in the future
 
45,708

 
 
 
 
Total to be amortized
 
$
130,939

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of
Deferred Income
 
Estimated Income
Taxes
 
Projected Income,
net of tax
 
 
2012 Q4
 
$
6,993

 
$
(2,727
)
 
$
4,266

 
 
2013
 
27,403

 
(10,687
)
 
16,716

 
 
2014
 
26,431

 
(10,308
)
 
16,123

 
 
2015
 
22,498

 
(8,774
)
 
13,724

 
 
2016
 
17,266

 
(6,734
)
 
10,532

 
 
Thereafter
 
30,348

 
(11,836
)
 
18,512

 
 
Total
 
$
130,939

 
$
(51,066
)
 
$
79,873

 



























18


Supplemental Schedule 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Recourse Property Debt Information
 
 
 
 
 
 
 
 
 
(Page 1 of 2)
 
As of September 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]
 
$
4,194,398

 
$
8,722

 
$
(186,935
)
 
$
4,016,185

 
7.0

 
5.75
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate tax-exempt bonds
 
16,580

 

 
(3,338
)
 
13,242

 
1.8

 
6.32
%
Floating rate tax-exempt bonds
 
59,205

 

 
(45
)
 
59,160

 
7.1

 
0.19
%
Total property tax-exempt bond financing
 
75,785

 

 
(3,383
)
 
72,402

 
5.9

 
1.53
%
Total Conventional portfolio
 
4,270,183

 
8,722

 
(190,318
)
 
4,088,587

 
7.0

 
5.67
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Affordable Portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate loans payable
 
373,275

 
23,427

 
(109,960
)
 
286,742

 
10.8

 
4.49
%
Floating rate loans payable
 
28,336

 

 
(12,088
)
 
16,248

 
6.6

 
2.83
%
Total property loans payable
 
401,611

 
23,427

 
(122,048
)
 
302,990

 
10.5

 
4.38
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate tax-exempt bonds
 
102,152

 

 
(24,759
)
 
77,393

 
26.2

 
4.98
%
Floating rate tax-exempt bonds
 
98,035

 

 

 
98,035

 
5.3

 
2.81
%
Total property tax-exempt bond financing
 
200,187

 

 
(24,759
)
 
175,428

 
16.0

 
3.92
%
Total Affordable portfolio
 
601,798

 
23,427

 
(146,807
)
 
478,418

 
12.3

 
4.22
%
Total non-recourse property debt
 
$
4,871,981

 
$
32,149

 
$
(337,125
)
 
$
4,567,005

 
7.7

 
5.49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Aimco Share Non-Recourse Property Debt
 
 
 
 
 
 
 
 
 
 
 
 
Amount
 
% of Total
Fixed rate property debt
 
$
4,393,562

 
96.2
%
Floating rate tax-exempt bonds
 
157,195

 
3.4
%
Floating rate loans payable
 
16,248

 
0.4
%
Total
 
$
4,567,005

 
 
 
 
Amortization
 
Maturities
 
Total
 
Maturities as 
a Percent
of Total Debt
 
Average Rate on
Maturing Debt
2012 Q4
 
$
20,569

 
$
31

 
$
20,600

 
0.00
%
 
5.50
%
 
 
 
 
 
 
 
 
 
 
 
2013 Q1
 
20,602

 
77,256

 
97,858

 
1.69
%
 
5.10
%
2013 Q2
 
20,605

 
23,487

 
44,092

 
0.51
%
 
5.36
%
2013 Q3
 
20,817

 
65,816

 
86,633

 
1.44
%
 
5.67
%
2013 Q4
 
21,025

 
68,706

 
89,731

 
1.50
%
 
6.89
%
Total 2013
 
83,049

 
235,265

 
318,314

 
5.15
%
 
5.81
%
 
 
 
 
 
 
 
 
 
 
 
2014
 
84,753

 
272,995

 
357,748

 
5.98
%
 
4.70
%
2015
 
84,754

 
156,482

 
241,236

 
3.43
%
 
4.71
%
2016
 
83,058

 
365,202

 
448,260

 
8.00
%
 
5.66
%
2017
 
78,027

 
446,367

 
524,394

 
9.77
%
 
5.95
%
2018
 
72,443

 
201,123

 
273,566

 
4.40
%
 
4.62
%
2019
 
66,347

 
524,371

 
590,718

 
11.48
%
 
5.78
%
2020
 
59,045

 
391,482

 
450,527

 
8.57
%
 
6.53
%
2021 [2]
 
37,913

 
725,990

 
763,903

 
15.90
%
 
5.71
%
2022
 
25,833

 
175,556

 
201,389

 
3.84
%
 
5.16
%
Thereafter
 
245,921

 
130,429

 
376,350

 
2.86
%
 
3.23
%
Total
 
$
941,712

 
$
3,625,293

 
$
4,567,005

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[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 include 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 $625.1 million, or 14.0% 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]
 

 
58.8

 

 

 
5.00
%
Totals
 
$
70.2

 
$
154.0

 
$
25.0

 
5.74
%
 
4.69
%
 
 
 
 
 
 
 
 
 
 
 
Debt Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trailing Twelve
Months
 
Annualized Third Quarter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to EBITDA
 
7.9x
 
7.7x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and Preferred Equity to EBITDA
 
8.1x
 
8.0x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA Coverage of Interest
 
2.3x
 
2.3x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA Coverage of Interest and Preferred Dividends [3]
 
2.2x
 
2.2x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Line of Credit Debt Coverage Covenants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount
 
Covenant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Service Coverage Ratio
 
 
 
 1.63x
 
1.50x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charge Coverage Ratio
 
 
 
 1.44x
 
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 a new non-recourse property loan for $20.0 million and $38.8 million of non-recourse property debt obligations assumed in connection with property acquisitions (see Supplemental Schedule 8 for further details). At the date of acquisition, the assumed loans had a fair value of $44.0 million, and a weighted average effective interest rate of 3.35%.
[3] EBITDA Coverage of Interest and Preferred Dividends ratios are provided on a pro forma basis to exclude dividends on preferred stock redeemed during 2012.











20


Supplemental Schedule 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share Data
 
 
 
 
 
 
 
 
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares/Units Outstanding as of September 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
 
1.710%
 
37,000

Total perpetual preferred stock
 
 
 
 
 
 
 
68,856

 
 
 
 
 
 
 
 
 
Preferred Partnership Units
 
2,931

 
 
 
8.111%
 
79,261

Total preferred securities
 
 
 
 
 
 
 
$
148,117

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Partnership Units and Equivalents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
As of
 
September 30, 2012
 
September 30, 2012
September 30, 2012
EPS
 
FFO
 
EPS
 
FFO
Class A Common Stock outstanding
 
145,029

 
144,959

 
144,959

 
130,960

 
130,960

Dilutive securities:
 
 
 
 
 
 
 
 
 
 
Options and restricted stock
 
285

 

 
160

 

 
305

Total shares and dilutive share equivalents
 
145,314

 
144,959

 
145,119

 
130,960

 
131,265

Common Partnership Units and equivalents
 
8,013

 
 
 
 
 
 
 
 
Total shares, units and dilutive share equivalents
 
153,327

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 




















21


Supplemental Schedule 6(a)
 
Conventional Same Store Operating Results
Third Quarter 2012 Compared to Third 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
 
3Q
2012
3Q
2011
Growth
 
3Q
2012
3Q
2011
Growth
 
3Q
2012
3Q
2011
Growth
 
 
3Q
2012
 
3Q
2012
3Q
2011
 
3Q
2012
3Q
2011
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
12
3,552
2,901
 
$
18,478

$
17,903

3.2%
 
$
5,495

$
5,063

8.5%
 
$
12,983

$
12,840

1.1%
 
 
70.3%
 
95.1%
96.5%
 
$
2,232

$
2,133

Orange County
 
4
1,213
1,213
 
6,148

5,859

4.9%
 
1,892

1,867

1.3%
 
4,256

3,992

6.6%
 
 
69.2%
 
97.2%
97.0%
 
1,739

1,660

San Diego
 
6
2,144
2,144
 
8,803

8,519

3.3%
 
2,639

2,589

1.9%
 
6,164

5,930

3.9%
 
 
70.0%
 
95.3%
95.6%
 
1,436

1,386

Southern CA Total
 
22
6,909
6,257
 
33,429

32,281

3.6%
 
10,026

9,519

5.3%
 
23,403

22,762

2.8%
 
 
70.0%
 
95.6%
96.3%
 
1,864

1,786

East Bay
 
2
413
413
 
1,818

1,656

9.8%
 
689

576

19.6%
 
1,129

1,080

4.5%
 
 
62.1%
 
97.1%
97.3%
 
1,512

1,373

San Jose
 
1
224
224
 
1,162

1,078

7.8%
 
396

249

59.0%
 
766

829

(7.6)%
 
 
65.9%
 
96.1%
95.5%
 
1,799

1,679

San Francisco
 
5
774
774
 
4,355

3,964

9.9%
 
1,434

1,314

9.1%
 
2,921

2,650

10.2%
 
 
67.1%
 
96.7%
96.5%
 
1,939

1,769

Northern CA Total
 
8
1,411
1,411
 
7,335

6,698

9.5%
 
2,519

2,139

17.8%
 
4,816

4,559

5.6%
 
 
65.7%
 
96.7%
96.6%
 
1,792

1,638

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
1
104
104
 
441

416

6.0%
 
187

193

(3.1)%
 
254

223

13.9%
 
 
57.6%
 
96.9%
96.4%
 
1,461

1,383

Pacific Total
 
31
8,424
7,772
 
41,205

39,395

4.6%
 
12,732

11,851

7.4%
 
28,473

27,544

3.4%
 
 
69.1%
 
95.8%
96.3%
 
1,845

1,754

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Suburban New York - New Jersey
 
2
1,162
1,162
 
4,751

4,346

9.3%
 
2,064

1,688

22.3%
 
2,687

2,658

1.1%
 
 
56.6%
 
95.5%
95.7%
 
1,427

1,303

Washington - NoVa - MD
 
14
6,547
6,462
 
27,306

26,129

4.5%
 
8,611

9,035

(4.7)%
 
18,695

17,094

9.4%
 
 
68.5%
 
95.7%
96.2%
 
1,472

1,401

Boston
 
9
3,068
3,068
 
11,616

11,081

4.8%
 
4,321

4,228

2.2%
 
7,295

6,853

6.4%
 
 
62.8%
 
95.8%
96.8%
 
1,318

1,243

Philadelphia
 
7
3,888
3,809
 
16,202

15,711

3.1%
 
6,646

6,689

(0.6)%
 
9,556

9,022

5.9%
 
 
59.0%
 
93.9%
94.5%
 
1,509

1,455

Northeast Total
 
32
14,665
14,501
 
59,875

57,267

4.6%
 
21,642

21,640

0.0%
 
38,233

35,627

7.3%
 
 
63.9%
 
95.2%
95.8%
 
1,445

1,373

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5
2,471
2,460
 
13,554

12,595

7.6%
 
4,496

4,920

(8.6)%
 
9,058

7,675

18.0%
 
 
66.8%
 
96.5%
96.1%
 
1,903

1,776

Palm Beach - Fort Lauderdale
 
2
704
704
 
1,929

1,820

6.0%
 
902

854

5.6%
 
1,027

966

6.3%
 
 
53.2%
 
95.2%
94.9%
 
960

908

Orlando
 
5
1,481
1,481
 
3,587

3,531

1.6%
 
1,600

1,605

(0.3)%
 
1,987

1,926

3.2%
 
 
55.4%
 
94.6%
95.7%
 
853

831

Jacksonville
 
4
1,643
1,643
 
4,396

4,207

4.5%
 
1,915

2,033

(5.8)%
 
2,481

2,174

14.1%
 
 
56.4%
 
95.6%
95.0%
 
933

898

Florida Total
 
16
6,299
6,288
 
23,466

22,153

5.9%
 
8,913

9,412

(5.3)%
 
14,553

12,741

14.2%
 
 
62.0%
 
95.7%
95.6%
 
1,300

1,229

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5
2,237
2,168
 
5,096

4,819

5.7%
 
2,447

2,187

11.9%
 
2,649

2,632

0.6%
 
 
52.0%
 
95.1%
92.0%
 
824

806

Denver
 
8
2,177
2,104
 
6,819

6,487

5.1%
 
2,137

2,113

1.1%
 
4,682

4,374

7.0%
 
 
68.7%
 
96.2%
97.1%
 
1,123

1,058

Phoenix
 
6
1,446
1,146
 
2,797

2,703

3.5%
 
1,063

1,085

(2.0)%
 
1,734

1,618

7.2%
 
 
62.0%
 
94.7%
95.5%
 
858

823

Atlanta
 
5
1,295
1,125
 
3,514

3,227

8.9%
 
1,322

899

47.1%
 
2,192

2,328

(5.8)%
 
 
62.4%
 
96.4%
96.0%
 
1,081

996

Sunbelt Total
 
40
13,454
12,831
 
41,692

39,389

5.8%
 
15,882

15,696

1.2%
 
25,810

23,693

8.9%
 
 
61.9%
 
95.6%
95.3%
 
1,133

1,074

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
13
3,993
3,929
 
15,163

14,513

4.5%
 
5,579

5,505

1.3%
 
9,584

9,008

6.4%
 
 
63.2%
 
94.9%
93.8%
 
1,355

1,313

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
116
40,536
39,033
 
157,935

150,564

4.9%
 
55,835

54,692

2.1%
 
102,100

95,872

6.5%
 
 
64.6%
 
95.4%
95.5%
 
1,413

1,346

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5
1,180
1,066
 
3,827

3,600

6.3%
 
1,567

1,495

4.8%
 
2,260

2,105

7.4%
 
 
59.1%
 
93.5%
92.4%
 
1,281

1,218

Nashville
 
4
1,114
1,114
 
3,340

3,134

6.6%
 
1,263

1,301

(2.9)%
 
2,077

1,833

13.3%
 
 
62.2%
 
95.7%
95.8%
 
1,044

979

Norfolk - Richmond
 
6
1,643
1,564
 
4,922

4,821

2.1%
 
1,648

1,586

3.9%
 
3,274

3,235

1.2%
 
 
66.5%
 
94.6%
96.5%
 
1,108

1,064

Other Markets
 
14
8,218
8,137
 
20,917

19,960

4.8%
 
7,834

8,703

(10.0)%
 
13,083

11,257

16.2%
 
 
62.5%
 
94.7%
93.4%
 
904

875

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
29
12,155
11,881
 
33,006

31,515

4.7%
 
12,312

13,085

(5.9)%
 
20,694

18,430

12.3%
 
 
62.7%
 
94.7%
94.0%
 
978

941

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
145
52,691
50,914
 
$
190,941

$
182,079

4.9%
 
$
68,147

$
67,777

0.5%
 
$
122,794

$
114,302

7.4%
 
 
64.3%
 
95.3%
95.2%
 
$
1,312

$
1,252




                                                                                                                                                                                                                         
 
22


Supplemental Schedule 6(b)
 
Conventional Same Store Operating Results
Third Quarter 2012 Compared to Second 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
 
3Q
2012
2Q
2012
Growth
 
3Q
2012
2Q
2012
Growth
 
3Q
2012
2Q
2012
Growth
 
 
3Q
2012
 
3Q
2012
2Q
2012
 
3Q
2012
2Q
2012
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
12
3,552
2,901
 
$
18,478

$
18,299

1.0%
 
$
5,495

$
5,260

4.5%
 
$
12,983

$
13,039

(0.4)%
 
 
70.3%
 
95.1%
95.6%
 
$
2,232

$
2,201

Orange County
 
4
1,213
1,213
 
6,148

5,989

2.7%
 
1,892

1,830

3.4%
 
4,256

4,159

2.3%
 
 
69.2%
 
97.2%
95.8%
 
1,739

1,719

San Diego
 
6
2,144
2,144
 
8,803

8,617

2.2%
 
2,639

2,560

3.1%
 
6,164

6,057

1.8%
 
 
70.0%
 
95.3%
96.1%
 
1,436

1,394

Southern CA Total
 
22
6,909
6,257
 
33,429

32,905

1.6%
 
10,026

9,650

3.9%
 
23,403

23,255

0.6%
 
 
70.0%
 
95.6%
95.8%
 
1,864

1,830

East Bay
 
2
413
413
 
1,818

1,758

3.4%
 
689

622

10.8%
 
1,129

1,136

(0.6)%
 
 
62.1%
 
97.1%
95.6%
 
1,512

1,485

San Jose
 
1
224
224
 
1,162

1,165

(0.3)%
 
396

395

0.3%
 
766

770

(0.5)%
 
 
65.9%
 
96.1%
97.2%
 
1,799

1,784

San Francisco
 
5
774
774
 
4,355

4,200

3.7%
 
1,434

1,412

1.6%
 
2,921

2,788

4.8%
 
 
67.1%
 
96.7%
96.1%
 
1,939

1,882

Northern CA Total
 
8
1,411
1,411
 
7,335

7,123

3.0%
 
2,519

2,429

3.7%
 
4,816

4,694

2.6%
 
 
65.7%
 
96.7%
96.1%
 
1,792

1,751

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
1
104
104
 
441

444

(0.7)%
 
187

171

9.4%
 
254

273

(7.0)%
 
 
57.6%
 
96.9%
97.9%
 
1,461

1,452

Pacific Total
 
31
8,424
7,772
 
41,205

40,472

1.8%
 
12,732

12,250

3.9%
 
28,473

28,222

0.9%
 
 
69.1%
 
95.8%
95.9%
 
1,845

1,811

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Suburban New York - New Jersey
 
2
1,162
1,162
 
4,751

4,691

1.3%
 
2,064

1,555

32.7%
 
2,687

3,136

(14.3)%
 
 
56.6%
 
95.5%
97.1%
 
1,427

1,387

Washington - NoVa - MD
 
14
6,547
6,462
 
27,306

26,918

1.4%
 
8,611

8,259

4.3%
 
18,695

18,659

0.2%
 
 
68.5%
 
95.7%
96.4%
 
1,472

1,441

Boston
 
9
3,068
3,068
 
11,616

11,540

0.7%
 
4,321

4,300

0.5%
 
7,295

7,240

0.8%
 
 
62.8%
 
95.8%
96.1%
 
1,318

1,305

Philadelphia
 
7
3,888
3,809
 
16,202

15,926

1.7%
 
6,646

6,290

5.7%
 
9,556

9,636

(0.8)%
 
 
59.0%
 
93.9%
94.7%
 
1,509

1,472

Northeast Total
 
32
14,665
14,501
 
59,875

59,075

1.4%
 
21,642

20,404

6.1%
 
38,233

38,671

(1.1)%
 
 
63.9%
 
95.2%
95.9%
 
1,445

1,416

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5
2,471
2,460
 
13,554

13,157

3.0%
 
4,496

4,344

3.5%
 
9,058

8,813

2.8%
 
 
66.8%
 
96.5%
96.3%
 
1,903

1,851

Palm Beach - Fort Lauderdale
 
2
704
704
 
1,929

1,910

1.0%
 
902

868

3.9%
 
1,027

1,042

(1.4)%
 
 
53.2%
 
95.2%
96.2%
 
960

939

Orlando
 
5
1,481
1,481
 
3,587

3,601

(0.4)%
 
1,600

1,504

6.4%
 
1,987

2,097

(5.2)%
 
 
55.4%
 
94.6%
94.6%
 
853

857

Jacksonville
 
4
1,643
1,643
 
4,396

4,307

2.1%
 
1,915

1,868

2.5%
 
2,481

2,439

1.7%
 
 
56.4%
 
95.6%
95.0%
 
933

919

Florida Total
 
16
6,299
6,288
 
23,466

22,975

2.1%
 
8,913

8,584

3.8%
 
14,553

14,391

1.1%
 
 
62.0%
 
95.7%
95.6%
 
1,300

1,275

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5
2,237
2,168
 
5,096

4,944

3.1%
 
2,447

2,241

9.2%
 
2,649

2,703

(2.0)%
 
 
52.0%
 
95.1%
93.3%
 
824

815

Denver
 
8
2,177
2,104
 
6,819

6,501

4.9%
 
2,137

2,053

4.1%
 
4,682

4,448

5.3%
 
 
68.7%
 
96.2%
95.6%
 
1,123

1,077

Phoenix
 
6
1,446
1,146
 
2,797

2,705

3.4%
 
1,063

1,007

5.6%
 
1,734

1,698

2.1%
 
 
62.0%
 
94.7%
95.3%
 
858

825

Atlanta
 
5
1,295
1,125
 
3,514

3,425

2.6%
 
1,322

1,217

8.6%
 
2,192

2,208

(0.7)%
 
 
62.4%
 
96.4%
95.5%
 
1,081

1,062

Sunbelt Total
 
40
13,454
12,831
 
41,692

40,550

2.8%
 
15,882

15,102

5.2%
 
25,810

25,448

1.4%
 
 
61.9%
 
95.6%
95.2%
 
1,133

1,107

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
13
3,993
3,929
 
15,163

15,315

(1.0)%
 
5,579

5,647

(1.2)%
 
9,584

9,668

(0.9)%
 
 
63.2%
 
94.9%
95.7%
 
1,355

1,358

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
116
40,536
39,033
 
157,935

155,412

1.6%
 
55,835

53,403

4.6%
 
102,100

102,009

0.1%
 
 
64.6%
 
95.4%
95.6%
 
1,413

1,388

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5
1,180
1,066
 
3,827

3,706

3.3%
 
1,567

1,368

14.5%
 
2,260

2,338

(3.3)%
 
 
59.1%
 
93.5%
93.1%
 
1,281

1,245

Nashville
 
4
1,114
1,114
 
3,340

3,284

1.7%
 
1,263

1,193

5.9%
 
2,077

2,091

(0.7)%
 
 
62.2%
 
95.7%
96.6%
 
1,044

1,017

Norfolk - Richmond
 
6
1,643
1,564
 
4,922

4,849

1.5%
 
1,648

1,571

4.9%
 
3,274

3,278

(0.1)%
 
 
66.5%
 
94.6%
94.3%
 
1,108

1,095

Other Markets
 
14
8,218
8,137
 
20,917

20,590

1.6%
 
7,834

8,730

(10.3)%
 
13,083

11,860

10.3%
 
 
62.5%
 
94.7%
95.1%
 
904

887

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
29
12,155
11,881
 
33,006

32,429

1.8%
 
12,312

12,862

(4.3)%
 
20,694

19,567

5.8%
 
 
62.7%
 
94.7%
94.9%
 
978

958

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
145
52,691
50,914
 
$
190,941

$
187,841

1.7%
 
$
68,147

$
66,265

2.8%
 
$
122,794

$
121,576

1.0%
 
 
64.3%
 
95.3%
95.5%
 
$
1,312

$
1,288




                                                                                                                                                                                                                         
 
23


Supplemental Schedule 6(c)
 
Conventional Same Store Operating Results
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 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 3Q
2012
YTD 3Q
2011
Growth
 
YTD 3Q
2012
YTD 3Q
2011
Growth
 
YTD 3Q
2012
YTD 3Q
2011
Growth
 
 
YTD 3Q
2012
 
YTD 3Q
2012
YTD 3Q
2011
 
YTD 3Q
2012
YTD 3Q
2011
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
12
3,552
2,901
 
$
54,797

$
52,920

3.5%
 
$
15,826

$
15,621

1.3%
 
$
38,971

$
37,299

4.5%
 
 
71.1%
 
95.6%
96.6%
 
$
2,197

$
2,098

Orange County
 
4
1,213
1,213
 
18,089

17,285

4.7%
 
5,416

5,316

1.9%
 
12,673

11,969

5.9%
 
 
70.1%
 
96.5%
97.2%
 
1,717

1,629

San Diego
 
6
2,144
2,144
 
25,837

25,042

3.2%
 
7,608

7,213

5.5%
 
18,229

17,829

2.2%
 
 
70.6%
 
95.4%
95.7%
 
1,404

1,357

Southern CA Total
 
22
6,909
6,257
 
98,723

95,247

3.6%
 
28,850

28,150

2.5%
 
69,873

67,097

4.1%
 
 
70.8%
 
95.7%
96.4%
 
1,832

1,754

East Bay
 
2
413
413
 
5,328

4,890

9.0%
 
1,960

1,809

8.3%
 
3,368

3,081

9.3%
 
 
63.2%
 
96.8%
97.7%
 
1,481

1,346

San Jose
 
1
224
224
 
3,461

3,213

7.7%
 
1,220

1,064

14.7%
 
2,241

2,149

4.3%
 
 
64.8%
 
96.8%
97.0%
 
1,773

1,642

San Francisco
 
5
774
774
 
12,711

11,494

10.6%
 
4,222

3,830

10.2%
 
8,489

7,664

10.8%
 
 
66.8%
 
96.6%
97.0%
 
1,890

1,702

Northern CA Total
 
8
1,411
1,411
 
21,500

19,597

9.7%
 
7,402

6,703

10.4%
 
14,098

12,894

9.3%
 
 
65.6%
 
96.7%
97.2%
 
1,751

1,588

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
1
104
104
 
1,318

1,235

6.7%
 
531

519

2.3%
 
787

716

9.9%
 
 
59.7%
 
97.5%
96.2%
 
1,445

1,372

Pacific Total
 
31
8,424
7,772
 
121,541

116,079

6.7%
 
36,783

35,372

4.0%
 
84,758

80,707

5.0%
 
 
69.7%
 
95.9%
96.6%
 
1,812

1,719

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Suburban New York - New Jersey
 
2
1,162
1,162
 
14,128

12,947

9.1%
 
5,131

4,810

6.7%
 
8,997

8,137

10.6%
 
 
63.7%
 
96.6%
95.1%
 
1,399

1,302

Washington - NoVa - MD
 
14
6,547
6,462
 
81,001

77,419

4.6%
 
24,888

24,284

2.5%
 
56,113

53,135

5.6%
 
 
69.3%
 
96.2%
96.5%
 
1,447

1,379

Boston
 
9
3,068
3,068
 
34,344

32,653

5.2%
 
12,912

13,003

(0.7)%
 
21,432

19,650

9.1%
 
 
62.4%
 
95.9%
96.4%
 
1,297

1,227

Philadelphia
 
7
3,888
3,809
 
48,270

46,564

3.7%
 
19,595

20,050

(2.3)%
 
28,675

26,514

8.2%
 
 
59.4%
 
94.8%
95.3%
 
1,485

1,425

Northeast Total
 
32
14,665
14,501
 
177,743

169,583

4.8%
 
62,526

62,147

0.6%
 
115,217

107,436

7.2%
 
 
64.8%
 
95.8%
96.1%
 
1,422

1,353

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5
2,471
2,460
 
39,699

37,292

6.5%
 
13,078

14,157

(7.6)%
 
26,621

23,135

15.1%
 
 
67.1%
 
96.8%
96.9%
 
1,853

1,739

Palm Beach - Fort Lauderdale
 
2
704
704
 
5,668

5,455

3.9%
 
2,642

2,527

4.6%
 
3,026

2,928

3.3%
 
 
53.4%
 
95.5%
95.9%
 
936

898

Orlando
 
5
1,481
1,481
 
10,784

10,420

3.5%
 
4,580

4,567

0.3%
 
6,204

5,853

6.0%
 
 
57.5%
 
94.9%
95.0%
 
852

823

Jacksonville
 
4
1,643
1,643
 
12,979

12,308

5.5%
 
5,643

5,883

(4.1)%
 
7,336

6,425

14.2%
 
 
56.5%
 
95.4%
94.8%
 
920

878

Florida Total
 
16
6,299
6,288
 
69,130

65,475

5.6%
 
25,943

27,134

(4.4)%
 
43,187

38,341

12.6%
 
 
62.5%
 
95.9%
95.8%
 
1,274

1,208

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5
2,237
2,168
 
14,947

14,536

2.8%
 
6,873

6,519

5.4%
 
8,074

8,017

0.7%
 
 
54.0%
 
94.1%
93.2%
 
815

799

Denver
 
8
2,177
2,104
 
19,857

18,718

6.1%
 
6,213

6,153

1.0%
 
13,644

12,565

8.6%
 
 
68.7%
 
96.3%
97.5%
 
1,089

1,014

Phoenix
 
6
1,446
1,146
 
8,192

7,837

4.5%
 
3,011

3,023

(0.4)%
 
5,181

4,814

7.6%
 
 
63.2%
 
95.5%
96.5%
 
832

787

Atlanta
 
5
1,295
1,125
 
10,329

9,593

7.7%
 
3,848

3,503

9.8%
 
6,481

6,090

6.4%
 
 
62.7%
 
96.5%
96.8%
 
1,058

979

Sunbelt Total
 
40
13,454
12,831
 
122,455

116,159

5.4%
 
45,888

46,332

(1.0)%
 
76,567

69,827

9.7%
 
 
62.5%
 
95.7%
95.8%
 
1,109

1,050

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
13
3,993
3,929
 
45,306

43,727

3.6%
 
16,884

15,815

6.8%
 
28,422

27,912

1.8%
 
 
62.7%
 
95.4%
95.9%
 
1,343

1,289

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
116
40,536
39,033
 
467,045

445,548

4.8%
 
162,081

159,666

1.5%
 
304,964

285,882

6.7%
 
 
65.3%
 
95.7%
96.1%
 
1,389

1,320

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5
1,180
1,066
 
11,308

11,003

2.8%
 
4,336

4,242

2.2%
 
6,972

6,761

3.1%
 
 
61.7%
 
94.1%
94.9%
 
1,253

1,208

Nashville
 
4
1,114
1,114
 
9,911

9,268

6.9%
 
3,639

3,603

1.0%
 
6,272

5,665

10.7%
 
 
63.3%
 
96.3%
95.1%
 
1,026

972

Norfolk - Richmond
 
6
1,643
1,564
 
14,620

14,515

0.7%
 
4,645

4,496

3.3%
 
9,975

10,019

(0.4)%
 
 
68.2%
 
94.6%
95.8%
 
1,097

1,076

Other Markets
 
14
8,218
8,137
 
61,845

59,861

3.3%
 
25,600

26,674

(4.0)%
 
36,245

33,187

9.2%
 
 
58.6%
 
95.2%
95.0%
 
887

861

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
29
12,155
11,881
 
97,684

94,647

3.2%
 
38,220

39,015

(2.0)%
 
59,464

55,632

6.9%
 
 
60.9%
 
95.1%
95.1%
 
960

931

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
145
52,691
50,914
 
$
564,729

$
540,195

4.5%
 
$
200,301

$
198,681

0.8%
 
$
364,428

$
341,514

6.7%
 
 
64.5%
 
95.6%
95.8%
 
$
1,289

$
1,230




                                                                                                                                                                                                                         
 
24


Supplemental Schedule 6(d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store Operating Expense Detail
Third Quarter and Year-to-Date Third Quarter 2012
 
 
 
 
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2012 Compared to Third Quarter 2011
 
 
 
 
 
 
 
 
 
 
3Q 2012
% of Total
 
3Q 2011
$ Change
% Change
Real estate taxes
 
$
16,984

24.9
%
 
$
15,803

$
1,181

7.5
 %
Onsite payroll
 
13,340

19.6
%
 
15,934

(2,594
)
(16.3
)%
Utilities
 
11,400

16.7
%
 
11,935

(535
)
(4.5
)%
Repairs and maintenance
 
10,951

16.1
%
 
10,981

(30
)
(0.3
)%
Software, technology and other
 
5,007

7.3
%
 
4,766

241

5.1
 %
Insurance
 
4,176

6.1
%
 
2,495

1,681

67.4
 %
Marketing
 
2,342

3.4
%
 
1,989

353

17.7
 %
Expensed turnover costs
 
3,947

5.9
%
 
3,874

73

1.9
 %
Total
 
$
68,147

100.0
%
 
$
67,777

$
370

0.5
 %
 
 
 
 
 
 
 
 
Third Quarter 2012 Compared to Second Quarter 2012
 
 
 
 
 
 
 
 
 
 
3Q 2012
% of Total
 
2Q 2012
$ Change
% Change
Real estate taxes
 
$
16,984

24.9
%
 
$
17,777

$
(793
)
(4.5
)%
Onsite payroll
 
13,340

19.6
%
 
13,124

216

1.6
 %
Utilities
 
11,400

16.7
%
 
11,002

398

3.6
 %
Repairs and maintenance
 
10,951

16.1
%
 
10,652

299

2.8
 %
Software, technology and other
 
5,007

7.3
%
 
4,572

435

9.5
 %
Insurance
 
4,176

6.1
%
 
3,964

212

5.3
 %
Marketing
 
2,342

3.4
%
 
2,071

271

13.1
 %
Expensed turnover costs
 
3,947

5.9
%
 
3,103

844

27.2
 %
Total
 
$
68,147

100.0
%
 
$
66,265

$
1,882

2.8
 %
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011
 
 
 
 
 
 
 
 
 
 
YTD 3Q 2012
% of Total
 
YTD 3Q 2011
$ Change
% Change
Real estate taxes
 
$
51,712

25.8
%
 
$
49,522

$
2,190

4.4
 %
Onsite payroll
 
40,524

20.2
%
 
45,590

(5,066
)
(11.1
)%
Utilities
 
35,470

17.7
%
 
36,286

(816
)
(2.2
)%
Repairs and maintenance
 
31,661

15.8
%
 
31,253

408

1.3
 %
Software, technology and other
 
13,873

6.9
%
 
12,579

1,294

10.3
 %
Insurance
 
11,037

5.5
%
 
8,341

2,696

32.3
 %
Marketing
 
6,710

3.3
%
 
6,179

531

8.6
 %
Expensed turnover costs
 
9,314

4.8
%
 
8,931

383

4.3
 %
Total
 
$
200,301

100.0
%
 
$
198,681

$
1,620

0.8
 %








25


Supplemental Schedule 7(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Conventional Portfolio Data by Market
Third Quarter 2012 Compared to Third Quarter 2011
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2012
 
Quarter Ended September 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

 
10.6
%
 
$
2,119

 
14

 
4,645

 
3,993

 
10.9
%
 
$
2,027

Orange County
 
4

 
1,213

 
1,213

 
3.2
%
 
1,739

 
4

 
1,213

 
1,143

 
3.0
%
 
1,695

San Diego
 
11

 
2,370

 
2,300

 
5.0
%
 
1,436

 
10

 
2,286

 
2,145

 
4.8
%
 
1,404

Southern CA Total
 
29

 
8,228

 
7,506

 
18.8
%
 
1,825

 
28

 
8,144

 
7,281

 
18.7
%
 
1,771

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
East Bay
 
2

 
413

 
413

 
0.8
%
 
1,512

 
2

 
413

 
353

 
0.8
%
 
1,426

San Jose
 
1

 
224

 
224

 
0.6
%
 
1,799

 
1

 
224

 
224

 
0.7
%
 
1,679

San Francisco
 
7

 
1,208

 
1,208

 
2.1
%
 
1,939

 
7

 
1,208

 
1,208

 
2.1
%
 
1,769

Northern CA Total
 
10

 
1,845

 
1,845

 
3.5
%
 
1,792

 
10

 
1,845

 
1,785

 
3.6
%
 
1,663

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
2

 
239

 
239

 
0.2
%
 
1,378

 
2

 
239

 
200

 
0.5
%
 
1,683

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pacific Total
 
41

 
10,312

 
9,590

 
22.5
%
 
1,807

 
40

 
10,228

 
9,266

 
22.8
%
 
1,751

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan
 
23

 
999

 
999

 
3.2
%
 
2,664

 
22

 
957

 
957

 
2.6
%
 
2,285

Suburban New York - New Jersey
 
2

 
1,162

 
1,162

 
2.0
%
 
1,427

 
2

 
1,162

 
944

 
1.8
%
 
1,360

New York Total
 
25

 
2,161

 
2,161

 
5.2
%
 
1,984

 
24

 
2,119

 
1,901

 
4.4
%
 
1,830

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington - NoVA - MD
 
14

 
6,547

 
6,462

 
14.1
%
 
1,472

 
17

 
8,015

 
7,048

 
13.9
%
 
1,390

Boston
 
11

 
4,129

 
4,129

 
7.5
%
 
1,335

 
11

 
4,129

 
4,129

 
7.3
%
 
1,258

Philadelphia
 
7

 
3,888

 
3,809

 
7.2
%
 
1,509

 
7

 
3,888

 
3,664

 
6.9
%
 
1,469

Northeast Total
 
57

 
16,725

 
16,561

 
34.0
%
 
1,512

 
59

 
18,151

 
16,742

 
32.5
%
 
1,426

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5

 
2,482

 
2,471

 
6.7
%
 
1,895

 
5

 
2,474

 
2,362

 
5.8
%
 
1,792

Palm Beach - Fort Lauderdale
 
3

 
1,076

 
1,076

 
1.1
%
 
993

 
4

 
1,265

 
1,265

 
1.3
%
 
942

Orlando
 
6

 
1,715

 
1,715

 
1.8
%
 
873

 
8

 
2,651

 
2,651

 
2.4
%
 
840

Jacksonville
 
4

 
1,643

 
1,643

 
1.9
%
 
933

 
4

 
1,643

 
1,643

 
1.7
%
 
898

Florida Total
 
18

 
6,916

 
6,905

 
11.5
%
 
1,280

 
21

 
8,033

 
7,921

 
11.2
%
 
1,167

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5

 
2,237

 
2,168

 
2.0
%
 
824

 
6

 
2,509

 
2,050

 
2.0
%
 
802

Denver
 
8

 
2,177

 
2,104

 
3.5
%
 
1,123

 
8

 
2,177

 
1,731

 
3.0
%
 
1,070

Phoenix
 
7

 
1,934

 
1,634

 
1.9
%
 
910

 
12

 
3,017

 
2,605

 
2.7
%
 
788

Atlanta
 
5

 
1,295

 
1,125

 
1.7
%
 
1,081

 
5

 
1,295

 
1,125

 
1.8
%
 
996

Sunbelt Total
 
43

 
14,559

 
13,936

 
20.6
%
 
1,126

 
52

 
17,031

 
15,432

 
20.7
%
 
1,028

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
13

 
3,993

 
3,929

 
7.2
%
 
1,355

 
13

 
3,993

 
3,832

 
6.9
%
 
1,318

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
154

 
45,589

 
44,016

 
84.3
%
 
1,430

 
164

 
49,403

 
45,272

 
82.9
%
 
1,340

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5

 
1,180

 
1,066

 
1.7
%
 
1,281

 
5

 
1,180

 
993

 
1.5
%
 
1,202

Inland Empire
 

 

 

 

 

 
2

 
376

 
376

 
0.4
%
 
790

Michigan
 
3

 
3,306

 
3,306

 
3.8
%
 
754

 
3

 
3,306

 
3,306

 
3.0
%
 
732

Minneapolis
 
2

 
732

 
651

 
1.6
%
 
1,859

 
2

 
732

 
651

 
1.7
%
 
1,779

Nashville
 
4

 
1,114

 
1,114

 
1.6
%
 
1,044

 
4

 
1,114

 
865

 
1.2
%
 
999

Non-Target Florida
 
3

 
702

 
702

 
0.8
%
 
864

 
5

 
1,202

 
1,202

 
1.2
%
 
799

Norfolk - Richmond
 
6

 
1,643

 
1,564

 
2.5
%
 
1,108

 
6

 
1,643

 
1,554

 
2.5
%
 
1,066

Providence RI
 
2

 
708

 
708

 
1.2
%
 
1,237

 
2

 
708

 
708

 
1.2
%
 
1,180

Other Markets
 
4

 
2,770

 
2,770

 
2.5
%
 
780

 
12

 
5,117

 
4,891

 
4.4
%
 
787

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
29

 
12,155

 
11,881

 
15.7
%
 
978

 
41

 
15,378

 
14,546

 
17.1
%
 
912

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
183

 
57,744

 
55,897

 
100.0
%
 
$
1,332

 
205

 
64,781

 
59,818

 
100.0
%
 
$
1,233



                                                                                                                                                                                                                         
 
26


Supplemental Schedule 7(b)
 
Total Conventional Portfolio Data by Market
Second Quarter 2012 Market Information
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aimco's portfolio strategy seeks predictable rent growth from a portfolio of A, B and C-quality conventional properties, averaging B/B+ in quality, and diversified among the largest coastal and job growth markets in the U.S. as measured by total apartment value. Aimco measures Conventional Property asset quality based on 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.

The following schedule illustrates Aimco’s Conventional Property portfolio quality and market growth projections based on 2Q 2012 data, the most recent period for which third-party data is available.


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended June 30, 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

 
10.4
%
 
$
1,947

 
$
1,396

 
139.5
%
 
5.2
%
Orange County
 
4

 
1,213

 
1,143

 
3.0
%
 
1,634

 
1,531

 
106.7
%
 
5.9
%
San Diego
 
10

 
2,286

 
2,146

 
4.7
%
 
1,271

 
1,352

 
94.0
%
 
4.5
%
Southern CA Total
 
28

 
8,144

 
7,282

 
18.1
%
 
1,677

 
1,406

 
119.3
%
 
5.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
East Bay
 
2

 
413

 
353

 
0.8
%
 
1,393

 
1,343

 
103.7
%
 
5.4
%
San Jose
 
1

 
224

 
224

 
0.6
%
 
1,631

 
1,920

 
84.9
%
 
6.9
%
San Francisco
 
7

 
1,208

 
1,208

 
2.1
%
 
1,690

 
1,570

 
107.6
%
 
6.9
%
Northern CA Total
 
10

 
1,845

 
1,785

 
3.5
%
 
1,603

 
1,711

 
93.7
%
 
6.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
2

 
239

 
239

 
0.6
%
 
1,422

 
1,032

 
137.8
%
 
5.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pacific Total
 
40

 
10,228

 
9,306

 
22.2
%
 
1,657

 
1,446

 
114.6
%
 
5.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan
 
23

 
999

 
999

 
2.9
%
 
2,471

 
2,940

 
84.0
%
 
4.9
%
Suburban New York - New Jersey
 
2

 
1,162

 
1,162

 
2.3
%
 
1,258

 
1,511

 
83.3
%
 
4.8
%
New York Total
 
25

 
2,161

 
2,161

 
5.2
%
 
1,772

 
2,156

 
82.2
%
 
4.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington - NoVA - MD
 
16

 
7,851

 
6,917

 
14.4
%
 
1,321

 
1,471

 
89.8
%
 
4.6
%
Boston
 
11

 
4,129

 
4,129

 
7.3
%
 
1,224

 
1,717

 
71.3
%
 
5.5
%
Philadelphia
 
7

 
3,888

 
3,809

 
7.2
%
 
1,301

 
1,046

 
124.4
%
 
3.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Northeast Total
 
59

 
18,029

 
17,016

 
34.1
%
 
1,348

 
1,522

 
88.6
%
 
4.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5

 
2,482

 
2,471

 
6.6
%
 
1,636

 
1,063

 
153.9
%
 
3.9
%
Palm Beach - Fort Lauderdale
 
3

 
1,076

 
1,076

 
1.1
%
 
854

 
1,084

 
78.8
%
 
5.2
%
Orlando
 
7

 
2,315

 
2,315

 
2.3
%
 
759

 
834

 
91.0
%
 
5.2
%
Jacksonville
 
4

 
1,643

 
1,643

 
1.8
%
 
792

 
776

 
102.1
%
 
3.1
%
Florida Total
 
19

 
7,516

 
7,505

 
11.8
%
 
1,080

 
932

 
115.9
%
 
4.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5

 
2,237

 
2,168

 
2.0
%
 
712

 
766

 
93.0
%
 
4.7
%
Denver
 
8

 
2,177

 
2,104

 
3.3
%
 
933

 
856

 
109.0
%
 
5.5
%
Phoenix
 
9

 
2,286

 
1,986

 
2.1
%
 
740

 
708

 
104.5
%
 
4.3
%
Atlanta
 
5

 
1,295

 
1,125

 
1.6
%
 
934

 
782

 
119.4
%
 
4.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sunbelt Total
 
46

 
15,511

 
14,888

 
20.8
%
 
948

 
856

 
110.7
%
 
4.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
13

 
3,993

 
3,929

 
7.2
%
 
1,193

 
1,032

 
115.6
%
 
5.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
158

 
47,761

 
45,139

 
84.3
%
 
1,257

 
1,235

 
101.8
%
 
4.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5

 
1,180

 
1,066

 
1.7
%
 
1,145

 
1,019

 
112.4
%
 
4.6
%
Michigan
 
3

 
3,306

 
3,306

 
2.9
%
 
616

 
796

 
77.4
%
 
4.2
%
Minneapolis
 
2

 
732

 
651

 
1.6
%
 
1,587

 
965

 
164.5
%
 
5.1
%
Nashville
 
4

 
1,114

 
1,114

 
1.6
%
 
887

 
740

 
119.9
%
 
4.8
%
Non-Target Florida
 
4

 
906

 
906

 
1.0
%
 
711

 
975

 
72.9
%
 
3.7
%
Norfolk - Richmond
 
6

 
1,643

 
1,564

 
2.4
%
 
967

 
864

 
111.9
%
 
3.3
%
Providence RI
 
2

 
708

 
708

 
1.1
%
 
1,102

 
1,198

 
92.0
%
 
3.7
%
Other Markets
 
8

 
3,963

 
3,897

 
3.4
%
 
676

 
736

 
91.8
%
 
3.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
34

 
13,552

 
13,212

 
15.7
%
 
820

 
842

 
97.4
%
 
4.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
192

 
61,313

 
58,351

 
100.0
%
 
$
1,155

 
$
1,144

 
101.0
%
 
4.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] Represents rents after concessions and vacancy loss, divided by Effective Units. Does not include other rental income.
[2] 2Q 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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third 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
 
8

 
2,349

 
97%
 
$
161.0

 
5.9
%
 
$
112.0

 
$
38.8

 
$
158.8

 
$
38.0

 
$
795

Affordable
 
14

 
1,562

 
60%
 
74.4

 
7.0
%
 
39.3

 
29.9

 
40.7

 
24.3

 
730

Total Dispositions
 
22

 
3,911

 
82%
 
$
235.4

 
6.2
%
 
$
151.3

 
$
68.7

 
$
199.5

 
$
62.3

 
$
775

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 [4]
 
16

 
4,408

 
96%
 
$
315.5

 
6.2
%
 
$
182.7

 
$
115.1

 
$
301.4

 
$
112.6

 
$
799

Affordable
 
31

 
3,221

 
55%
 
132.0

 
7.8
%
 
78.9

 
46.8

 
64.3

 
33.1

 
679

Total Dispositions
 
47

 
7,629

 
79%
 
$
447.5

 
6.5
%
 
$
261.6

 
$
161.9

 
$
365.7

 
$
145.7

 
$
762

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year-to-Date 2012 Acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Limited Partner Transactions
Year-to-date, Aimco has acquired the noncontrolling limited partnership interests in eleven consolidated real estate partnerships that own 17 properties with average monthly revenue per effective unit of $1,010 and in which Aimco affiliates serve as general partner for a total cost of $50.6 million. The gross estimated fair value of the real estate corresponding to the interests Aimco acquired totaled $142.7 million.
Property Transactions
 
 
 
 
 
 
Non-recourse Property Debt
 
 
 
 
Location
 
Units
 
Purchase Price
 
Principal
 
Interest Rate
 
Weighted Average Term to Maturity
 
Average Revenue Per Unit (Stabilized)
 
Percentage of Average Market Rent
Phoenix
 
488

 
$
68.8

 
$
29.1

 
5.55
%
 
7.2
 
[3]
$1,100
 
147%
Manhattan
 
42

 
39.3

 
20.0

 
3.95
%
 
9.8
 
 
$4,000
 
138%
San Diego
 
84

 
19.7

 
9.7

 
5.51
%
 
4.5
 
[3]
$1,880
 
115%
Total Acquisitions
 
614

 
$
127.8

 
$
58.8

 
5.00
%
 
7.6
 
 
$1,405
 
142%
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] NOI Cap Rate is calculated based on Aimco's share of 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] Non-recourse property debt assumed in connection with acquisition.
[4] Year-to-date, Aimco has disposed of Conventional Properties in the following markets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Market
Properties
Units
 
 
 Target:
 
 
 
 
 Tampa
5

1,493

 
 
 Phoenix
6

1,571

 
 
 Orlando
1

600

 
 
 Washington D.C.
1

164

 
 
Total Target
13

3,828

 
 
 Other Markets:
 
 
 
 
 Daytona Beach
1

204

 
 
 Inland Empire [5]
2

376

 
 
Total Other
3

580

 
 
 Total Sales
16

4,408

 
 
 
 
 
 
[5] Aimco has now exited the Inland Empire.

28


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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2012
 
Nine Months Ended September 30, 2012
 
 
Conventional
 
Affordable
 
Total
 
Conventional
 
Affordable
 
Total
Capital Additions
 
 
 
 
 
 
 
 
 
 
 
 
Capital Replacements
 
 
 
 
 
 
 
 
 
 
 
 
Buildings and grounds
 
$
10,131

 
$
1,676

 
$
11,807

 
$
22,856

 
$
4,769

 
$
27,625

Turnover capital additions
 
5,518

 
555

 
6,073

 
13,739

 
1,812

 
15,551

Capitalized site payroll and indirect costs
 
1,179

 
93

 
1,272

 
3,810

 
315

 
4,125

Total Capital Replacements
 
16,828

 
2,324

 
19,152

 
40,405

 
6,896

 
47,301

Capital Improvements
 
22,438

 
351

 
22,789

 
54,485

 
1,492

 
55,977

Redevelopment Additions
 
30,369

 

 
30,369

 
70,599

 

 
70,599

Casualty
 
1,109

 
532

 
1,641

 
3,618

 
2,043

 
5,661

Total Capital Additions
 
$
70,744

 
$
3,207

 
$
73,951

 
$
169,107

 
$
10,431

 
$
179,538

 
 
 
 
 
 
 
 
 
 
 
 
 
Total units
 
57,602

 
12,871

 
70,473

 
57,602

 
12,871

 
70,473

Total Capital Replacements per unit
 
$
292

 
$
181

 
$
272

 
$
701

 
$
536

 
$
671



























29


Supplemental Schedule 10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Redevelopment Activity
Nine Months Ended September 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]
Change in Market Rents Since Start [4]
Occupancy [5]
Under Redevelopment
 
 
 
 
 
 
 
 
 
 
 
Elm Creek, Elmhurst, IL [6]
28

$
9.9

$
2.0

 2Q 2012
 4Q 2012
 2Q 2013
 3Q 2013
 n/a
$2,946
1.8
%
 n/a
Flamingo South Beach, Miami, FL
1,127

4.1

2.9

 3Q 2011
 n/a - exterior only
 4Q 2012
 1Q 2013
$1,770
$1,800
5.2
%
95.4%
Lincoln Place, Venice, CA [7]
795

328.0

188.0

Multiple
Multiple
 4Q 2014
 1Q 2015
 n/a
$2,470
 n/a

7.9%
Pacific Bay Vistas, San Bruno, CA [8]
308

106.5

69.0

 4Q 2011
 2Q 2013
3Q 2013
 4Q 2013
 n/a
$2,200
7.7
%
Vacant
The Palazzo at Park La Brea, Los Angeles, CA [9]
521

15.7

4.5

 1Q 2012
 4Q 2012
 3Q 2014
 4Q 2014
$2,861
$3,171
4.5
%
93.1%
Plantation Gardens, Plantation, FL
372

6.4

5.5

 3Q 2011
 3Q 2012
 4Q 2012
 1Q 2013
$892
$977
3.4
%
74.4%
The Preserve at Marin, Corte Madera, CA
126

85.0

50.2

 4Q 2012
 2Q 2013
 4Q 2013
 1Q 2014
 n/a
$3,880
n/a

Vacant
Grand Total
3,277

$
555.6

$
322.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Actual 2012 Investment
 
 
 
 
 
 
 
 
First 
Quarter
2012
Second 
Quarter
2012

Third
Quarter
2012
Year-to-Date
 
 
 
 
 
 
 
Under Redevelopment
15.4

23.0

29.1

67.5

 
 
 
 
 
 
 
Other Redevelopment [10]
0.2

1.6

1.3

3.1

 
 
 
 
 
 
 
Total
$
15.6

$
24.6

$
30.4

$
70.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[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 construction 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 second quarter 2012, based on the average of REIS and AxioMetrics.
[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 September 30, 2012, such vacant or previously vacant properties are: Lincoln Place; Pacific Bay Vistas; and The Preserve at Marin.
[6] Aimco's Elm Creek project involves the construction of 28 townhomes to be built on a now-vacant land parcel contiguous to the Elm Creek community.
[7] An earlier phase of the Lincoln Place redevelopment began in 4Q 2011, and 50 units were re-leased to returning residents in 2Q 2012. Beginning in October 2012 and over the next two years, Aimco will
         redevelop the remaining buildings, construct 13 new buildings with 99 units, a 5,000 square foot leasing center and a 6,100 square foot fitness center and pool area. Aimco
         expects initial occupancy of remaining existing units to occur in 2Q 2013, and that the first newly constructed units will begin to be occupied in 1Q 2014.
[8] Since the inception of the Pacific Bay Vistas redevelopment, estimated total project costs have increased approximately $12.4 million. The increase in anticipated costs is due to changes in scope to prevent moisture
         intrusion. The changes have delayed delivery of the property's residential buildings. The property's leasing center and community center have been completed.
[9] 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.
[10] Amount represents capitalizable costs associated with projects in our redevelopment pipeline that are not listed above.

                                                                                                                                                                                                                         
 
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.




31


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 September 30, 2012
 
Nine Months Ended September 30, 2012
 
Capital Additions per Schedule 9
$
73,951

 
$
179,538

Capital additions related to:
 
 
 
Unconsolidated real estate partnerships
(181
)
 
(1,525
)
Consolidated sold and held for sale properties
408

 
7,588

Consolidated properties Aimco owns but does not manage
130

 
176

Consolidated capital additions
$
74,308

 
$
185,777

 
 
 
 
CONVENTIONAL PROPERTIES: Conventional Properties represent Aimco's portfolio of market-rate apartment communities. Aimco's portfolio strategy seeks predictable rent growth from a portfolio of A, B and C-quality conventional properties, averaging B/B+ in quality, and diversified among the largest coastal and job growth 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) EBITDA computed in accordance with the terms of Aimco's credit agreement, which differs from EBITDA defined above, 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 September 30,
 
Nine Months Ended September 30,
 
 
2012
 
2011
 
2012
 
2011
(in thousands, except per share data) (unaudited)
 
 
 
 
 
 
 
 
Net income (loss) attributable to Aimco common stockholders
 
$
24,163

 
$
(14,801
)
 
$
14,077

 
$
(79,751
)
Adjustments:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
87,444

 
87,687

 
264,978

 
259,069

Depreciation and amortization related to non-real estate assets
 
(3,259
)
 
(3,306
)
 
(9,845
)
 
(9,645
)
Depreciation of rental property related to noncontrolling partners and unconsolidated entities
 
(4,798
)
 
(5,647
)
 
(15,322
)
 
(19,271
)
Gain on dispositions of unconsolidated real estate and other, net of noncontrolling partners' interest
 
(14,924
)
 
(245
)
 
(15,243
)
 
(1,037
)
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest
 
2,392

 
98

 
10,471

 
77

Discontinued operations:
 
 
 
 
 
 
 
 
Gain on dispositions of real estate, net of income taxes and noncontrolling partners' interest
 
(40,924
)
 
(24,237
)
 
(109,625
)
 
(42,914
)
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest
 
2,453

 
5,671

 
7,136

 
9,410

Depreciation of rental property, net of noncontrolling partners' interest
 
3,866

 
8,510

 
14,194

 
29,449

Common noncontrolling interests in Aimco Operating Partnership's share of above adjustments
 
(1,563
)
 
(4,592
)
 
(8,949
)
 
(15,424
)
Amounts allocable to participating securities
 
(93
)
 
(138
)
 
(328
)
 
(400
)
FFO Attributable to Aimco Common Stockholders - Diluted
 
$
54,757

 
$
49,000

 
$
151,544

 
$
129,563

Preferred equity redemption related amounts
 
12,053

 
788

 
22,583

 
(1,961
)
Common noncontrolling interests in Aimco Operating Partnership's share of above adjustments
 
(698
)
 
(54
)
 
(1,377
)
 
134

Amounts allocable to participating securities
 
(41
)
 
(3
)
 
(90
)
 
8

Pro forma Funds From Operations Attributable to Aimco Common Stockholders - Diluted
 
$
66,071

 
$
49,731

 
$
172,660

 
$
127,744

Capital Replacements, net of common noncontrolling interests in Aimco Operating Partnership
 
(18,317
)
 
(20,416
)
 
(46,697
)
 
(48,111
)
Amounts allocable to participating securities
 
52

 
142

 
186

 
392

AFFO Attributable to Aimco Common Stockholders - Diluted
 
$
47,806

 
$
29,457

 
$
126,149

 
$
80,025

Weighted average shares - diluted FFO
 
145,119

 
120,670

 
131,265

 
119,269

FFO per share (diluted)
 
$
0.38

 
$
0.41

 
$
1.15

 
$
1.09

Pro forma FFO per share (diluted)
 
$
0.46

 
$
0.41

 
$
1.32

 
$
1.07

AFFO per share (diluted)
 
$
0.33

 
$
0.24

 
$
0.96

 
$
0.67

 
 
 
 
 
 
 
 
 
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, 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)
Third Quarter 2012 Compared to Third Quarter 2011
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2012
 
Three Months Ended September 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
 
$
191,007

 
$

 
$
(66
)
 
$
190,941

 
$
177,419

 
$

 
$
4,660

 
$
182,079

Affordable Same Store
 
28,271

 

 
6

 
28,277

 
27,063

 

 
10

 
27,073

Total Same Store
 
219,278

 

 
(60
)
 
219,218

 
204,482

 

 
4,670

 
209,152

Other Conventional
 
18,858

 
(786
)
 

 
18,072

 
15,791

 
(1,309
)
 
(150
)
 
14,332

Other Affordable
 
1,894

 
(1,894
)
 

 

 
2,941

 
(2,941
)
 

 

Total rental and other property revenues
 
240,030

 
(2,680
)
 
(60
)
 
237,290

 
223,214

 
(4,250
)
 
4,520

 
223,484

Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
67,999

 

 
148

 
68,147

 
65,621

 

 
2,156

 
67,777

Affordable Same Store
 
11,107

 

 
54

 
11,161

 
10,417

 

 
97

 
10,514

Total Same Store
 
79,106

 

 
202

 
79,308

 
76,038

 

 
2,253

 
78,291

Other Conventional
 
9,407

 
(476
)
 

 
8,931

 
7,695

 
(747
)
 
(278
)
 
6,670

Other Affordable
 
931

 
(931
)
 

 

 
1,555

 
(1,555
)
 

 

Total property operating expenses
 
89,444

 
(1,407
)
 
202

 
88,239

 
85,288

 
(2,302
)
 
1,975

 
84,961

Property NOI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
123,008

 

 
(214
)
 
122,794

 
111,798

 

 
2,504

 
114,302

Affordable Same Store
 
17,164

 

 
(48
)
 
17,116

 
16,646

 

 
(87
)
 
16,559

Total Same Store
 
140,172

 

 
(262
)
 
139,910

 
128,444

 

 
2,417

 
130,861

Other Conventional
 
9,451

 
(310
)
 

 
9,141

 
8,096

 
(562
)
 
128

 
7,662

Other Affordable
 
963

 
(963
)
 

 

 
1,386

 
(1,386
)
 

 

Net real estate operations
 
$
150,586

 
$
(1,273
)
 
$
(262
)
 
$
149,051

 
$
137,926

 
$
(1,948
)
 
$
2,545

 
$
138,523

 
 
% Aimco
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3Q 2012 NOI
 
Revenue
 
Expenses
 
NOI
 
 
 
 
 
 
 
 
Year-over-Year Change:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
82
%
 
4.9
%
 
0.5
%
 
7.4
%
 
 
 
 
 
 
 
 
Affordable Same Store
 
12
%
 
4.4
%
 
6.2
%
 
3.4
%
 
 
 
 
 
 
 
 
Total Same Store
 
94
%
 
4.8
%
 
1.3
%
 
6.9
%
 

 

 

 
 
Other Conventional
 
6
%
 
26.1
%
 
33.9
%
 
19.3
%
 
 
 
 
 
 
 
 
Net real estate operations
 
100
%
 
6.2
%
 
3.9
%
 
7.6
%
 
 
 
 
 
 
 
 








35


Reconciliation of GAAP to Supplemental Schedule 6(b) Proportionate Conventional Same Store NOI Amounts
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 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
 
$
196,641

 
$

 
$
(9,132
)
 
$
187,509

 
$
332

 
$
187,841

Property operating expenses
 
69,147

 

 
(3,182
)
 
65,965

 
300

 
66,265

Property NOI
 
$
127,494

 
$

 
$
(5,950
)
 
$
121,544

 
$
32

 
$
121,576



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)
Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012
 
Nine Months Ended September 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
 
$
562,259

 
$

 
$
2,470

 
$
564,729

 
$
525,309

 
$

 
$
14,886

 
$
540,195

Affordable Same Store
 
84,342

 

 
25

 
84,367

 
81,064

 

 
29

 
81,093

Total Same Store
 
646,601

 

 
2,495

 
649,096

 
606,373

 

 
14,915

 
621,288

Other Conventional
 
52,821

 
(3,606
)
 

 
49,215

 
47,943

 
(3,696
)
 
(14
)
 
44,233

Other Affordable
 
5,948

 
(5,948
)
 

 

 
8,413

 
(8,413
)
 

 

Total rental and other property revenues
 
705,370

 
(9,554
)
 
2,495

 
698,311

 
662,729

 
(12,109
)
 
14,901

 
665,521

Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
198,736

 

 
1,565

 
200,301

 
191,912

 

 
6,769

 
198,681

Affordable Same Store
 
32,874

 

 
201

 
33,075

 
31,689

 

 
258

 
31,947

Total Same Store
 
231,610

 

 
1,766

 
233,376

 
223,601

 

 
7,027

 
230,628

Other Conventional
 
26,119

 
(2,264
)
 

 
23,855

 
23,260

 
(2,294
)
 
(729
)
 
20,237

Other Affordable
 
3,118

 
(3,118
)
 

 

 
4,846

 
(4,846
)
 

 

Total property operating expenses
 
260,847

 
(5,382
)
 
1,766

 
257,231

 
251,707

 
(7,140
)
 
6,298

 
250,865

Property NOI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
363,523

 

 
905

 
364,428

 
333,397

 

 
8,117

 
341,514

Affordable Same Store
 
51,468

 

 
(176
)
 
51,292

 
49,375

 

 
(229
)
 
49,146

Total Same Store
 
414,991

 

 
729

 
415,720

 
382,772

 

 
7,888

 
390,660

Other Conventional
 
26,702

 
(1,342
)
 

 
25,360

 
24,683

 
(1,402
)
 
715

 
23,996

Other Affordable
 
2,830

 
(2,830
)
 

 

 
3,567

 
(3,567
)
 

 

Net real estate operations
 
$
444,523

 
$
(4,172
)
 
$
729

 
$
441,080

 
$
411,022

 
$
(4,969
)
 
$
8,603

 
$
414,656

 
 
% Aimco
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2012 NOI
 
Revenue
 
Expenses
 
NOI
 
 
 
 
 
 
 
 
Year-over-Year Change:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
82
%
 
4.5
%
 
0.8
%
 
6.7
%
 
 
 
 
 
 
 
 
Affordable Same Store
 
12
%
 
4.0
%
 
3.5
%
 
4.4
%
 
 
 
 
 
 
 
 
Total Same Store
 
94
%
 
4.5
%
 
1.2
%
 
6.4
%
 
 
 
 
 
 
 
 
Other Conventional
 
6
%
 
11.3
%
 
17.9
%
 
5.7
%
 
 
 
 
 
 
 
 
Net real estate operations
 
100
%
 
4.9
%
 
2.5
%
 
6.4
%
 
 
 
 
 
 
 
 













36


Reconciliation of GAAP to Supplemental Schedule 3 Trailing Twelve Month (TTM) Proportionate NOI Amounts
(in thousands) (unaudited)
 
 
 
 
 
 
Subtract
 
Add
 
 
 
 
Year Ended December 31, 2011
 
Y2011 to Y2012
 
Nine Months Ended September 30, 2011
 
Nine Months Ended September 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

 
$
(38,665
)
 
$
525,309

 
$
562,259

 
$
741,567

Other Conventional properties
 
59,414

 
5,744

 
(136
)
 
65,022

 
(1,269
)
 
47,943

 
52,821

 
68,631

Affordable properties
 
180,046

 
39,458

 
(85,546
)
 
133,958

 
(14,526
)
 
89,477

 
90,290

 
120,245

Total rental and other property revenues
 
1,039,729

 
45,202

 
(142,669
)
 
942,262

 
(54,460
)
 
662,729

 
705,370

 
930,443

Property operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store properties
 
289,241

 

 
(21,690
)
 
267,551

 
$
(15,347
)
 
191,912

 
198,736

 
259,028

Other Conventional properties
 
29,118

 
3,345

 
(77
)
 
32,386

 
(1,289
)
 
23,260

 
26,119

 
33,956

Affordable properties
 
78,620

 
24,641

 
(46,598
)
 
56,663

 
(8,182
)
 
36,535

 
35,992

 
47,938

Total property operating expenses
 
396,979

 
27,986

 
(68,365
)
 
356,600

 
(24,818
)
 
251,707

 
260,847

 
340,922

Net operating income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store properties
 
511,028

 

 
(35,297
)
 
475,731

 
(23,318
)
 
333,397

 
363,523

 
482,539

Other Conventional properties
 
30,296

 
2,399

 
(59
)
 
32,636

 
20

 
24,683

 
26,702

 
34,675

Affordable properties
 
101,426

 
14,817

 
(38,948
)
 
77,295

 
(6,344
)
 
52,942

 
54,298

 
72,307

Total rental and other property revenues
 
$
642,750

 
$
17,216

 
$
(74,304
)
 
$
585,662

 
$
(29,642
)
 
$
411,022

 
$
444,523

 
$
589,521

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.










37