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Other Significant Transactions
9 Months Ended
Sep. 30, 2012
Other Significant Transactions [Abstract]  
Other Significant Transactions
NOTE 4 — Other Significant Transactions
Investments in Real Estate Properties
During the periods presented, we acquired conventional properties as set forth in the table below (dollars in thousands):
 
Three Months Ended
 
September 30, 2012
 
June 30, 2012
 
March 31, 2012
Property location
San Diego, CA
 
Manhattan, NY
 
Phoenix, AZ
Number of residential units
84

 
42

 
488

Acquisition price
$
19,814

 
$
38,245

 
$
72,310

Non-recourse property debt assumed (outstanding principal balance)
$
9,695

 
$

 
$
29,124

Non-recourse property debt assumed (fair value)
$
10,684

 
$

 
$
33,254

 
 
 
 
 
 

Equity and Partners’ Capital Transactions
During the nine months ended September 30, 2012, Aimco completed two public offerings resulting in the sale of an aggregate 22,144,200 shares of its Common Stock, generating net proceeds of $594.4 million, or net proceeds per share of $26.84. In addition, during the nine months ended September 30, 2012, the holders of near-term expiring stock options exercised 2,041,934 stock options with a weighted average exercise price of $23.01 per option for proceeds to Aimco of $47.0 million. The shares received upon exercise of the options were then sold by the stockholders as part of one of the public offerings discussed above. Aimco contributed the net proceeds from the sale of shares of Common Stock and exercise of the stock options to the Aimco Operating Partnership in exchange for a number of common partnership units equal to the number of shares issued and sold.
During the nine months ended September 30, 2012, using primarily the proceeds from these Common Stock issuances, Aimco redeemed all of its outstanding shares of Class T, Class U, Class V and Class Y Cumulative Preferred Stock. The following table summarizes these preferred stock redemptions (in thousands, except share amounts):
 
Nine Months Ended September 30, 2012
Class of preferred stock redeemed
Class T
 
Class U
 
Class V
 
Class Y
Shares of preferred stock redeemed
6,000,000

 
12,000,000

 
2,587,500

 
3,450,000

Redemption value of preferred stock redeemed
$
150,000

 
$
300,000

 
$
64,688

 
$
86,250

Accrued and unpaid dividends paid at redemption
$
2,067

 
$
775

 
$
891

 
$
1,166

Previously deferred issuance costs recognized as an adjustment of net income attributable to Aimco preferred stockholders
$
5,193

 
$
10,137

 
$
2,350

 
$
2,987


In connection with these redemptions by Aimco, the Aimco Operating Partnership redeemed from Aimco all of the outstanding units of its Class T, Class U, Class V and Class Y Partnership Preferred Units.
During the nine months ended September 30, 2012, Aimco issued 405,090 shares of its 7.00% Class Z Cumulative Preferred Stock, par value $0.01 per share, through its preferred stock at-the-market, or ATM, offering program, for net proceeds per share of $24.27 (reflecting an average price to the public of $24.78 per share, less commissions and transaction costs of $0.51 per share). The offerings generated net proceeds of $9.8 million. Aimco contributed the net proceeds from the sale of such shares of preferred stock to the Aimco Operating Partnership in exchange for an equal number of the Aimco Operating Partnership’s 7.00% Class Z Cumulative Preferred Partnership Units.
Acquisitions of Noncontrolling Partnership Interests
During the nine months ended September 30, 2012, we acquired the remaining noncontrolling limited partnership interests in 11 consolidated real estate partnerships that own 17 properties and for which our affiliates serve as general partner, for a total cost of $50.6 million. The Aimco Operating Partnership recognized the $44.4 million excess of the consideration paid over the carrying amount of the noncontrolling interests acquired as an adjustment of additional paid-in capital within partners’ capital (which is included in effects of changes in ownership for consolidated entities in the reconciliation of partners' capital included in Note 2). This amount is allocated between Aimco and noncontrolling interests in the Aimco Operating Partnership within Aimco's consolidated financial statements.