EX-99.1 2 q42012er-ssxex991.htm FOURTH QUARTER 2012 EARNINGS RELEASE DATED FEBRUARY 7, 2012 Q4 2012 ER-SS - Ex 99.1





Page
1 
 
Earnings Release
 
 
10 
 
Consolidated Statements of Operations
 
 
12 
 
Consolidated Balance Sheets
 
 
13   
 
Schedule 1a   –   Funds From Operations (4Q 2012 v. 4Q 2011)
 
 
 
Schedule 1b   –   Funds From Operations (YTD 4Q 2012 v. YTD 4Q 2011)
 
 
17   
 
Schedule 2     –   Portfolio Summary
 
 
18    
 
Schedule 3     –   Net Asset Value Supplemental Information
 
 
20    
 
Schedule 4     –   Non-Recourse Property Debt Information
 
 
22    
 
Schedule 5     –   Share Data
 
 
23    
 
Schedule 6a   –   Conventional Same Store Operating Results (4Q 2012 v. 4Q 2011)
 
 
24   
 
Schedule 6b   –   Conventional Same Store Operating Results (4Q 2012 v. 3Q 2012)
 
 
25    
 
Schedule 6c   –   Conventional Same Store Operating Results (YTD 4Q 2012 v. YTD 4Q 2011)
 
 
 
Schedule 6d   –   Conventional Same Store Operating Expense Detail
 
 
 
27    
 
Schedule 7a   –   Total Conventional Portfolio Data by Market (4Q 2012 v. 4Q 2011)
 
 
28    
 
Schedule 7b   –   Total Conventional Portfolio Data by Market (3Q 2012 v. Local Market Average)
 
 
29    
 
Schedule 8     –   Property Disposition and Acquisition Activity
 
 
30    
 
Schedule 9     –   Capital Additions
 
 
31   
 
Schedule 10   –   Summary of Redevelopment Activity
 
 
32    
 
Glossary and Reconciliations
























                                                                                                                                                             



Aimco Reports Fourth Quarter 2012 Results
Denver, Colorado, February 7, 2013 - Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today its fourth quarter 2012 results.
Chairman and Chief Executive Officer Terry Considine comments: “Aimco had a solid 2012. Profitability is up with Conventional Same Store NOI growth of 6.5%, the highest rate of annual growth in six years. Portfolio quality is also up with average revenue per unit in our Conventional portfolio increasing nearly 8% to $1,362. Redevelopment investment tripled to $100 million. But, leverage is down: the ratio of Debt plus Preferred Equity to annualized fourth quarter EBITDA declined by about two times from 9.6 times to 7.7 times.”

Considine adds: “We look for 2013 to be another good year with increasing profitability in operations, disciplined upgrading of our portfolio, increased investment in redevelopment, lower leverage, and further simplification leading to lower offsite costs.”

Financial Results

Full Year Pro forma FFO Up 12%, AFFO Up 31%*
 
FOURTH QUARTER
 
FULL YEAR
(all items per common share)
2012
 
2011
 
2012
 
2011
Net income (loss)
$
0.47

 
$
(0.19
)
 
$
0.61

 
$
(0.86
)
Funds from Operations (FFO)
$
0.52

 
$
0.43

 
$
1.68

 
$
1.52

Add back (deduct) preferred equity redemption related amounts
$

 
$
(0.01
)
 
$
0.16

 
$
(0.03
)
Pro forma Funds from Operations (Pro forma FFO)
$
0.52

 
$
0.42

 
$
1.84

 
$
1.49

Deduct Aimco's share of Capital Replacements
$
(0.14
)
 
$
(0.22
)
 
$
(0.50
)
 
$
(0.62
)
Adjusted Funds From Operations (AFFO)
$
0.38

 
$
0.20

 
$
1.34

 
$
0.87

*
Full year 2011 financial results include a deduction of $0.15 per share related to debt prepayment penalties and the write-off of deferred loan costs incurred in connection with a refinancing and securitization transaction during second quarter 2011. Excluding these charges, comparable full year 2011 Pro forma FFO and AFFO per share were $1.64 and $1.02, respectively. On this comparable basis, full year 2012 Pro forma FFO and AFFO increased 12% and 31%, respectively, compared to 2011.
Pro forma FFO - Pro forma FFO increased 24% when compared to fourth quarter 2011 as a result of: improved property operating results; additional income from increased ownership in our consolidated properties; lower preferred stock dividends due to $600.9 million of redemptions during 2012; and lower interest expense. These positive results were somewhat offset by lower income from discontinued operations. Pro forma FFO was $0.02 per share above the midpoint of Aimco's guidance range of $0.47 to $0.53 per share.
Adjusted Funds from Operations - AFFO increased 90% when compared to fourth quarter 2011 as a result of Pro forma FFO growth, the timing of Capital Replacements spending during 2012, and lower Capital Replacements spending due to the sale of nearly 11,000 apartment units during 2012. As Aimco's portfolio is concentrated in fewer properties with higher margins, AFFO is expected to grow 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.
2012 Total Same Store NOI Up 6.2%
 
 
FOURTH QUARTER
FULL YEAR
 
 
Year-over-Year
Year-over-Year
 
% NOI
Revenue
Expenses
NOI
Revenue
Expenses
NOI
Conventional Same Store
82%
5.1%
3.9%
5.7%
4.7%
1.6%
6.5%
Affordable Same Store
10%
2.3%
2.1%
2.5%
3.8%
3.9%
3.7%
Total Same Store
92%
4.7%
3.6%
5.3%
4.6%
1.9%
6.2%
Conventional Same Store Results
 
FOURTH QUARTER
 
FULL YEAR
 
Year-over-Year
 
Sequential
 
Year-over-Year
 
2012
2011
Variance
 
3rd Qtr
Variance
 
2012
2011
Variance
Average Rent Per Unit
$
1,188

$
1,142

4.0
%
 
$
1,177

0.9
 %
 
$
1,167

$
1,119

4.3
 %
Other Income Per Unit
142

124

14.5
%
 
141

0.7
 %
 
137

124

10.5
 %
Average Revenue Per Unit
$
1,330

$
1,266

5.1
%
 
$
1,318

0.9
 %
 
$
1,304

$
1,243

4.9
 %
Average Daily Occupancy
95.3
%
95.3
%

 
95.3
%

 
95.5
%
95.7
%
-0.2
 %
 
 
 
 
 
 
 
 
 
 
 
$ in Millions
 
 
 
 
 
 
 
 
 
 
Revenue
$
184.9

$
176.0

5.1
%
 
$
183.2

0.9
 %
 
$
726.5

$
693.8

4.7
 %
Expenses
62.8

60.5

3.9
%
 
64.9

(3.1
)%
 
253.4

249.6

1.6
 %
NOI
$
122.1

$
115.5

5.7
%
 
$
118.3

3.1
 %
 
$
473.1

$
444.2

6.5
 %

Rental Rates
2012
1st Qtr
2nd Qtr
3rd Qtr
Oct
Nov
Dec
4th Qtr
Full Year
Renewal rent increases
5.1%
5.7%
6.0%
4.7%
5.6%
5.2%
5.1%
5.5%
New lease rent increases
2.0%
4.3%
3.8%
0.5%
0.7%
0.1%
0.4%
3.2%
Weighted average rent increases
3.4%
5.0%
4.8%
2.6%
3.3%
2.2%
2.6%
4.2%

2013
Jan
Renewal rent increases
5.3%
New lease rent increases
3.1%
Weighted average rent increases
3.8%



2



Affordable Same Store Results - For fourth quarter 2012, average daily occupancy for the Affordable portfolio was 98.9%, an increase of 1.2% from fourth quarter 2011, while average revenue per unit increased 1.1% from $970 to $981 per unit.
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 third quarter 2012, the most recent period for which REIS information is available, Aimco's Conventional Property rents averaged 102% of local market average rents.

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 2007 through 2012, Aimco increased its year-end conventional portfolio average revenue per unit at a compound annual growth rate of 6.1%, about three times that of market rent growth during the same period. Aimco's outsized growth reflects the impact of portfolio improvements through dispositions, redevelopment and acquisitions.
Conventional Property Revenue per Unit Up 7.9% to $1,362
Fourth quarter 2012 Conventional portfolio average revenue per unit was $1,362, an 7.9% increase compared to fourth quarter 2011, as a result of year-over-year revenue growth of 5.1% 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 fourth quarter 2012, Aimco sold eight Conventional Properties and 16 Affordable Properties with 1,865 and 1,417 units, respectively, for $271.1 million in gross proceeds. Average revenue per unit for the Conventional Properties sold during the quarter was $1,087, compared to the retained portfolio average of $1,362 per unit. Aimco's share of net sales proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $123.7 million.

Sale of Asset-Management Business - During the fourth quarter, Aimco closed on the sale of the NAPICO portfolio, its legacy asset management business.  The transaction was primarily seller financed, and the associated notes will be repaid over the next six years. Aimco anticipates recognizing between $6 and $8 million in Funds from Operations over the expected term of the notes.

Redevelopment
During the fourth quarter, Aimco began multi-phase capital projects at Park Towne Place and The Sterling, both located in Center-City Philadelphia. The initial phases of these projects consist of Capital Replacement and Capital Improvement investments, with redevelopment to follow.



3



Balance Sheet and Liquidity
Components of Aimco Leverage
 
AS OF DECEMBER 31, 2012
$ in Millions
Amount
% of Total
Weighted Avg. Maturity (Yrs.)
Weighted Avg Rate
Aimco's share of long-term, non-recourse property debt
$
4,481.7

97
%
7.9
5.44%
Outstanding borrowings on revolving line of credit


3.9
n/a
Preferred securities
148.1

3
%
Perpetual
6.25%
Total leverage
$
4,629.8

100
%
n/a
5.47%
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 4th Qtr
 
2012
2011
2012
2011
Debt to EBITDA
7.5x
8.2x
7.4x
8.2x
Debt and Preferred Equity to EBITDA
7.8x
9.5x
7.7x
9.6x
EBITDA Coverage of Interest
2.3x
2.1x
2.5x
2.2x
EBITDA Coverage of Interest and Preferred Dividends
2.2x
1.8x
2.4x
1.8x
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 December 31, 2012, was limited to its revolving credit facility, which Aimco uses for working capital purposes and to secure letters of credit. Borrowings bear interest at a rate set forth on a pricing grid which rate varies based on Aimco's leverage. The revolving credit facility matures in December 2014, and may be extended for two additional one-year periods, subject to certain conditions.
At the end of fourth quarter, Aimco had no outstanding borrowings on its revolving credit facility and available capacity was $454.6 million, net of $45.4 million of letters of credit backed by the facility. Also at the end of the quarter, Aimco had on hand $84.4 million of cash.
Equity Activity
Dividend - As announced on January 31, 2013, Aimco's Board of Directors declared a quarterly cash dividend of $0.24 per share of Class A Common Stock for the quarter ended December 31, 2012, which, on an annualized basis, is a 26% increase compared to the dividends paid during 2012. The fourth quarter 2012 dividend is payable on February 28, 2013, to stockholders of record on February 15, 2013.



4



Earnings Conference Call
Friday, February 8, 2013 at 1:00 p.m. EST
Replay available until 9:00 a.m. EST on February 23, 2013
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: 9327149
Passcode: 10007657
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.
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 265 communities in 24 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


5



2013 Outlook
($ Amounts Represent Aimco Share)
FULL
YEAR
 
 
Net income (loss) per share
-$0.10 to $0.06
Pro forma FFO per share
$1.92 to $2.08
AFFO per share
$1.44 to $1.62
 
 
Conventional Same Store Operating Measures
 
NOI change compared to 2012
4.50% to 6.75%
Revenue change compared to 2012
4.25% to 5.25%
Expense change compared to 2012
2.50% to 4.00%
Average daily occupancy
95.2% to 95.8%
 
 
Tax Credit and Asset Management Revenues
 
Recurring revenues
$30 million
Non-recurring revenues
$8 to $12 million
 
 
Offsite Costs
 
Property management expenses
$31 million
General and administrative expenses
$46 million
Investment management expenses
$8 million
 
 
Capital Investments
 
Conventional redevelopment
$130 to $160 million
Property upgrades [1]
$45 million
Capital Replacements related to multi-phase capital projects [2]
$18 million
Standard Capital Replacements ($900 per unit)
$54 million
 
 
Transaction Activities
 
Real estate value of partnership tenders and mergers [3]
$45 million
Real estate value of property dispositions [4]
$300 to $350 million
Aimco net proceeds from property dispositions [5]
$90 to $115 million
 
 
Non-Recourse Property Debt
 
Amortization, funded by retained earnings
$81 million
Maturities
$172 million
Real estate value of unencumbered properties [6]
$180 million

Please refer to notes on page 8.







6



2013 Pro forma FFO Reconciliation
 
$ Per Share
(at the mid-point)
 
 
2012 Pro forma FFO
$1.84
 
 
Conventional Same Store NOI growth (approximately 5.6% at the mid-point)
0.19

 
 
Portfolio management:
 
Impact of 2012 asset sales
(0.14
)
Impact of 2013 asset sales
(0.02
)
Impact of 2012 and 2013 partnership transactions (net of $0.01 increase in interest expense)
0.02

Impact of 2012 property acquisitions (net of $0.01 increase in interest expense)
0.02

Impact of 2012 and 2013 redevelopment activity (net of $0.04 increase in interest expense)
(0.01
)
Reductions in offsite costs due to change in scale and efficiencies
0.09

Subtotal portfolio management
(0.04
)
 
 
Balance sheet:
 
Interest expense savings due to property debt amortization and refinancing activities
0.07

Decrease in preferred stock dividends, net of impact of 2012 common share issuances
0.02

Subtotal balance sheet
0.09

 
 
Other:
 
Decrease in tax credit and asset management revenues
(0.05
)
Increased casualty losses [7]
(0.03
)
 
 
2013 Pro forma FFO
$2.00


2013 AFFO Reconciliation
 
$ Per Share
(at the mid-point)
 
 
2012 AFFO
$1.35
 
 
Pro forma FFO growth
0.16

Capital Replacement spending related to multi-phase capital projects
(0.10
)
Impact of 2012 and 2013 asset sales on Capital Replacement spending
0.08

Impact of 2012 share issuances
0.04

 
 
2013 AFFO
$1.53





7



First Quarter 2013 Outlook
 
FIRST
QUARTER
 
 
Net loss per share
-$0.08 to -$0.04
Pro forma FFO per share
$0.42 to $0.46
 
 
Conventional Same Store Operating Measures
 
NOI change compared to first quarter 2012
3.75% to 4.75%
NOI change compared to fourth quarter 2012
-2.25% to -1.25%

Notes to 2013 Outlook and 2013 Pro forma FFO Reconciliation
[1]
Property upgrades may include kitchen and bath remodeling; energy conservation projects; and investments in longer-lived materials designed to reduce turnover costs, such as simulated wood flooring and granite countertops.
[2]
During 2012, Aimco began multi-phase capital projects at its 2900 on First property, located in Seattle, and two Center-City Philadelphia properties, Park Towne Place and The Sterling. The initial phases of these projects consist of Capital Replacement and Capital Improvement investments, which totaled $4.1 million in 2012. Aimco expects to invest an additional $17 million in Capital Replacements related to these projects during 2013.
[3]
Partnership transactions are expected to close during the first half of 2013.
[4]
During 2013, Aimco intends to dispose of that portion of its Affordable portfolio not subject to tax credit agreements. If successful, Aimco will hold at the end of the year 53 Affordable properties with approximately 8,000 units, which were redeveloped with Low Income Housing Tax Credits, generally between 2005 and 2009. These properties are expected to be sold as the tax credit compliance periods expire with the majority of sales expected to occur from 2015 to 2019.
[5]
Aimco intends to use proceeds from asset sales to fund real estate investments including redevelopment and other capital investments, and partnership transactions.
[6]
Anticipated size of unencumbered pool at December 31, 2013, based on December 31, 2012, values.
[7]
Aimco's casualty losses during 2012 were significantly lower than the company's historical average, largely due to fewer weather-related casualty events. Aimco's Pro forma FFO guidance assumes 2013 loss experience returns to historical levels.


8



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: first quarter and full year 2013 results, including but not limited to Pro forma FFO and selected components thereof, Capital Replacements spending, and AFFO; redevelopment project investments, timelines and stabilized rents; and timing of other investment activity. 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.








9



Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
 
 
 
 
 
 
 
 
 
  
 
Three Months Ended December 31,
 
Year Ended
December 31,
 
 
2012
 
2011
 
2012
 
2011
REVENUES:
 
 
 
 
 
 
 
 
Rental and other property revenues
 
$
251,907

 
$
238,563

 
$
991,428

 
$
943,258

Tax credit and asset management revenues
 
14,088

 
9,889

 
41,769

 
38,661

Total revenues
 
265,995

 
248,452

 
1,033,197

 
981,919

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
Property operating expenses
 
100,564

 
97,127

 
402,225

 
405,866

Investment management expenses
 
2,563

 
3,062

 
12,008

 
10,459

Depreciation and amortization
 
85,374

 
88,713

 
345,077

 
342,820

Provision for real estate impairment losses
 

 
915

 
8,349

 
915

General and administrative expenses
 
12,111

 
14,536

 
49,602

 
50,906

Other expense, net
 
4,526

 
5,469

 
15,776

 
17,796

Total operating expenses
 
205,138

 
209,822


833,037

 
828,762

Operating income
 
60,857

 
38,630

 
200,160

 
153,157

Interest income, net
 
2,484

 
2,786

 
9,913

 
9,681

Recovery of losses on notes receivable, net
 
3,943

 
329

 
3,375

 
509

Interest expense
 
(58,226
)
 
(66,099
)
 
(246,761
)
 
(290,168
)
Equity in losses of unconsolidated real estate partnerships
 
(1,609
)
 
(9,288
)
 
(4,408
)
 
(17,721
)
Gain (loss) on dispositions of interests in unconsolidated real estate and other, net
 
1,257

 
(2,717
)
 
21,886

 
2,398

Income (loss) before income taxes and discontinued operations
 
8,706

 
(36,359
)
 
(15,835
)
 
(142,144
)
Income tax benefit
 
354

 
1,278

 
929

 
6,541

Income (loss) from continuing operations
 
9,060

 
(35,081
)
 
(14,906
)
 
(135,603
)
Income from discontinued operations, net
 
88,188

 
26,507

 
210,267

 
77,439

Net income (loss)
 
97,248

 
(8,574
)
 
195,361

 
(58,164
)
Noncontrolling interests:
 
 
 
 
 
 
 
 
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships
 
(22,454
)
 
(4,355
)
 
(51,218
)
 
257

Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership
 
(1,606
)
 
(1,671
)
 
(6,496
)
 
(6,683
)
Net (income) loss attributable to common noncontrolling interests in Aimco Operating Partnership
 
(4,262
)
 
1,665

 
(5,191
)
 
7,503

Total noncontrolling interests
 
(28,322
)
 
(4,361
)
 
(62,905
)
 
1,077

Net income (loss) attributable to Aimco
 
68,926

 
(12,935
)
 
132,456

 
(57,087
)
Net income attributable to Aimco preferred stockholders
 
(752
)
 
(10,423
)
 
(49,888
)
 
(45,852
)
Net income attributable to participating securities
 
(246
)
 
(53
)
 
(422
)
 
(222
)
Net income (loss) attributable to Aimco common stockholders
 
$
67,928

 
$
(23,411
)
 
$
82,146

 
$
(103,161
)
Weighted average common shares outstanding - basic and diluted
 
145,035

 
120,433

 
134,479

 
119,312

Earnings (loss) per common share - basic and diluted:
 
 
 
 
 
 
 
 
Loss from continuing operations attributable to Aimco common stockholders
 
$

 
$
(0.28
)
 
$
(0.59
)
 
$
(1.22
)
Income from discontinued operations attributable to Aimco common stockholders
 
0.47

 
0.09

 
1.20

 
0.36

Net income (loss) attributable to Aimco common stockholders
 
$
0.47

 
$
(0.19
)
 
$
0.61

 
$
(0.86
)



10



Consolidated Statements of Operations (continued)
Income from Discontinued Operations
Income from discontinued operations consists of the following (in thousands):
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
Year Ended
December 31,
 
 
2012
 
2011
 
2012
 
2011
Rental and other property revenues
 
$
5,852

 
$
32,270

 
$
65,947

 
$
159,058

Property operating expenses
 
(3,954
)
 
(17,662
)
 
(31,257
)
 
(82,353
)
Depreciation and amortization
 
(1,385
)
 
(11,186
)
 
(21,674
)
 
(52,513
)
Provision for real estate impairment losses
 
(4,049
)
 
(7,353
)
 
(15,338
)
 
(19,331
)
Operating (loss) income
 
(3,536
)
 
(3,931
)
 
(2,322
)
 
4,861

Interest income
 
134

 
296

 
545

 
1,534

Interest expense
 
(1,144
)
 
(6,824
)
 
(12,585
)
 
(31,175
)
Loss before gain on dispositions of real estate and income taxes
 
(4,546
)
 
(10,459
)
 
(14,362
)
 
(24,780
)
Gain on dispositions of real estate
 
94,603

 
43,308

 
234,533

 
108,209

Income tax expense
 
(1,869
)
 
(6,342
)
 
(9,904
)
 
(5,990
)
Income from discontinued operations, net
 
$
88,188

 
$
26,507

 
$
210,267

 
$
77,439

Income from discontinued operations attributable to:
 
 
 
 
 
 
 
 
Noncontrolling interests in consolidated real estate partnerships
 
$
(15,276
)
 
$
(15,024
)
 
$
(39,019
)
 
$
(32,218
)
Noncontrolling interests in Aimco Operating Partnership
 
(4,142
)
 
(747
)
 
(10,153
)
 
(2,990
)
Total noncontrolling interests
 
(19,418
)
 
(15,771
)
 
(49,172
)
 
(35,208
)
Income from discontinued operations attributable to Aimco
 
$
68,770

 
$
10,736


$
161,095

 
$
42,231
































11



Consolidated Balance Sheets
(in thousands) (unaudited)
 
 
 
 
 
 
 
December 31, 2012
 
December 31, 2011
ASSETS
 
 
 
 
Buildings and improvements
 
$
6,390,253

 
$
6,223,885

Land
 
1,943,166

 
1,929,018

Total real estate
 
8,333,419

 
8,152,903

Accumulated depreciation
 
(2,820,765
)
 
(2,562,574
)
Net real estate
 
5,512,654

 
5,590,329

Cash and cash equivalents
 
84,413

 
91,066

Restricted cash
 
146,859

 
183,970

Accounts receivable, net
 
34,020

 
41,796

Notes receivable, net
 
102,897

 
111,205

Other assets
 
520,537

 
382,949

Assets held for sale
 

 
470,547

Total assets
 
$
6,401,380

 
$
6,871,862

LIABILITIES AND EQUITY
 
 
 
 
Non-recourse property debt
 
$
4,688,447

 
$
4,772,774

Accounts payable
 
30,747

 
32,607

Accrued liabilities and other
 
318,669

 
282,451

Deferred income
 
128,577

 
138,808

Liabilities related to assets held for sale
 

 
417,164

Total liabilities
 
5,166,440

 
5,643,804

Preferred noncontrolling interests in Aimco Operating Partnership
 
80,046

 
83,384

Equity:
 
 
 
 
Perpetual Preferred Stock
 
68,114

 
657,114

Class A Common Stock
 
1,456

 
1,209

Additional paid-in capital
 
3,712,684

 
3,098,333

Accumulated other comprehensive loss
 
(3,542
)
 
(6,860
)
Distributions in excess of earnings
 
(2,863,287
)
 
(2,841,467
)
Total Aimco equity
 
915,425

 
908,329

Noncontrolling interests in consolidated real estate partnerships
 
271,065

 
270,666

Common noncontrolling interests in Aimco Operating Partnership
 
(31,596
)
 
(34,321
)
Total equity
 
1,154,894

 
1,144,674

Total liabilities and equity
 
$
6,401,380

 
$
6,871,862








12



Supplemental Schedule 1(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds From Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Page 1 of 2)
 
Three Months Ended December 31, 2012 Compared to Three Months Ended December 31, 2011
(in thousands, except per share data) (unaudited)
 
 
Three Months Ended December 31, 2012
 
Three Months Ended December 31, 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
 
$
193,641

 
$

 
$
(8,483
)
 
$
185,158

 
$
184,706

 
$

 
$
(13,219
)
 
$
171,487

Affordable Same Store
 
29,129

 

 
(3,835
)
 
25,294

 
28,423

 

 
(3,736
)
 
24,687

Total Same Store
 
222,770

 

 
(12,318
)
 
210,452

 
213,129

 

 
(16,955
)
 
196,174

Other Conventional 
 
22,347

 
446

 

 
22,793

 
18,711

 
1,617

 

 
20,328

Other Affordable
 
6,691

 
5,653

 
(9,401
)
 
2,943

 
6,577

 
7,779

 
(10,797
)
 
3,559

Property management revenues, primarily from affiliates
 
99

 
(80
)
 
624

 
643

 
146

 
(154
)
 
901

 
893

Total rental and other property revenues
 
251,907

 
6,019

 
(21,095
)
 
236,831

 
238,563

 
9,242

 
(26,851
)
 
220,954

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
65,125

 

 
(3,054
)
 
62,071

 
62,184

 

 
(4,814
)
 
57,370

Affordable Same Store
 
11,526

 

 
(1,636
)
 
9,890

 
11,460

 

 
(1,775
)
 
9,685

Total Same Store
 
76,651

 

 
(4,690
)
 
71,961

 
73,644

 

 
(6,589
)
 
67,055

Other Conventional 
 
10,704

 
161

 

 
10,865

 
8,746

 
931

 

 
9,677

Other Affordable
 
3,022

 
3,619

 
(5,358
)
 
1,283

 
3,028

 
4,844

 
(6,284
)
 
1,588

Casualties
 
83

 
6

 
502

 
591

 
2,089

 

 
112

 
2,201

Property management expenses
 
10,104

 

 
193

 
10,297

 
9,620

 

 
27

 
9,647

Total property operating expenses
 
100,564

 
3,786

 
(9,353
)
 
94,997

 
97,127

 
5,775

 
(12,734
)
 
90,168

Net real estate operations
 
151,343

 
2,233

 
(11,742
)
 
141,834

 
141,436

 
3,467

 
(14,117
)
 
130,786

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred tax credit income
 
7,727

 

 

 
7,727

 
7,876

 

 

 
7,876

Asset management revenues
 

 

 
353

 
353

 
2

 

 
769

 
771

Non-recurring revenues 
 
6,361

 

 

 
6,361

 
2,011

 

 
4

 
2,015

Total tax credit and asset management revenues
 
14,088

 

 
353

 
14,441

 
9,889

 

 
773

 
10,662

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment management expenses
 
(2,563
)
 

 

 
(2,563
)
 
(3,062
)
 

 

 
(3,062
)
Depreciation and amortization related to non-real estate assets
 
(3,370
)
 
(1
)
 
15

 
(3,356
)
 
(3,130
)
 
(1
)
 
26

 
(3,105
)
General and administrative expenses
 
(12,111
)
 
(2
)
 
89

 
(12,024
)
 
(14,536
)
 
(3
)
 
237

 
(14,302
)
Other expense, net
 
(4,526
)
 
(55
)
 
815

 
(3,766
)
 
(5,469
)
 
(301
)
 
1,929

 
(3,841
)
Interest income
 
2,484

 
1

 
128

 
2,613

 
2,786

 
18

 
135

 
2,939

Recovery of losses on notes receivable
 
3,943

 

 
(56
)
 
3,887

 
329

 

 
664

 
993

Interest expense
 
(58,226
)
 
(1,282
)
 
(1,197
)
 
(60,705
)
 
(66,099
)
 
(2,903
)
 
7,568

 
(61,434
)
Income tax benefit
 
342

 

 

 
342

 
882

 

 

 
882

Discontinued operations, net of non-FFO items
 
1,321

 

 
(33
)
 
1,288

 
8,383

 

 
(575
)
 
7,808

Preferred dividends and distributions
 
(2,315
)
 

 

 
(2,315
)
 
(14,037
)
 

 

 
(14,037
)
Preferred redemption related amounts
 
(43
)
 

 

 
(43
)
 
1,943

 

 

 
1,943

Common noncontrolling interests in Aimco Operating Partnership
 
(4,440
)
 

 

 
(4,440
)
 
(3,778
)
 

 

 
(3,778
)
Amounts allocated to participating securities
 
(271
)
 

 

 
(271
)
 
(205
)
 

 

 
(205
)
Funds From Operations
 
$
85,656

 
$
894

 
$
(11,628
)
 
$
74,922

 
$
55,332

 
$
277

 
$
(3,360
)
 
$
52,249

Preferred stock redemption related amounts
 
43

 

 

 
43

 
(1,943
)
 

 

 
(1,943
)
Common noncontrolling interests in Aimco Operating Partnership
 
36

 

 

 
36

 
132

 

 

 
132

Amounts allocated to participating securities
 

 

 

 

 
7

 

 

 
7

Pro forma Funds From Operations
 
$
85,735

 
$
894

 
$
(11,628
)
 
$
75,001

 
$
53,528

 
$
277

 
$
(3,360
)
 
$
50,445

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares - diluted
 
145,177

 
Weighted average shares - diluted
 
120,700

 
 
Per Share:
 
 
 
Per Share:
 
 
 
 
Funds From Operations
 
$
0.52

 
Funds From Operations
 
$
0.43

 
 
Pro forma Funds From Operations
 
$
0.52

 
Pro forma Funds From Operations
 
$
0.42



 
13



Supplemental Schedule 1(a) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
Pro Forma Funds From Operations Reconciliation to GAAP
 
 
 
 
 
 
 
 
 
 
(Page 2 of 2)
 
Three Months Ended December 31, 2012 Compared to Three Months Ended December 31, 2011
(in thousands) (unaudited)
 
 
Three Months Ended December 31, 2012
 
Three Months Ended December 31, 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
 
$
85,735

 
$
894

 
$
(11,628
)
 
$
75,001

 
$
53,528

 
$
277

 
$
(3,360
)
 
$
50,445

Adjustments related to continuing operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
(85,374
)
 
(2,138
)
 
6,487

 
(81,025
)
 
(88,713
)
 
(3,224
)
 
8,351

 
(83,586
)
Depreciation and amortization related to non-real estate assets
 
3,370

 
1

 
(15
)
 
3,356

 
3,130

 
1

 
(26
)
 
3,105

Provision for impairment losses on depreciable assets
 
(382
)
 
(1,821
)
 
839

 
(1,364
)
 
(4,947
)
 
(7,079
)
 
7,157

 
(4,869
)
Gain on dispositions of and impairments related to unconsolidated entities and other, net of tax
 
1,655

 
1,455

 
(2,947
)
 
163

 
1,713

 
737

 
(1,330
)
 
1,120

Adjustments related to discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization related to real estate
 
(1,377
)
 

 
383

 
(994
)
 
(11,064
)
 

 
2,128

 
(8,936
)
Provision for operating real estate impairment losses, net of tax
 
(4,049
)
 

 
1,235

 
(2,814
)
 
(7,353
)
 

 
1,448

 
(5,905
)
Gain on dispositions of real estate, net of tax
 
92,289

 

 
(16,808
)
 
75,481

 
36,538

 

 
(18,723
)
 
17,815

Total adjustments
 
$
6,132

 
$
(2,503
)
 
$
(10,826
)
 
$
(7,197
)
 
$
(70,696
)
 
$
(9,565
)
 
$
(995
)
 
$
(81,256
)
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments
 
142

 

 

 
142

 
5,312

 

 

 
5,312

Amounts allocable to participating securities
 
25

 

 

 
25

 
145

 

 

 
145

Preferred stock redemption related amounts
 
(43
)
 

 

 
(43
)
 
1,943

 

 

 
1,943

Equity in losses of unconsolidated real estate partnerships
 
(1,609
)
 
1,609

 

 

 
(9,288
)
 
9,288

 

 

Net income attributable to noncontrolling interests in consolidated real estate partnerships
 
(22,454
)
 

 
22,454

 

 
(4,355
)
 

 
4,355

 

Net income (loss) attributable to Aimco common stockholders
 
$
67,928

 
$

 
$

 
$
67,928

 
$
(23,411
)
 
$

 
$

 
$
(23,411
)



 
14



Supplemental Schedule 1(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funds From Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Page 1 of 2)
 
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
(in thousands, except per share data) (unaudited)
 
 
Year Ended December 31, 2012
 
Year Ended December 31, 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
 
$
761,050

 
$

 
$
(36,700
)
 
$
724,350

 
$
729,023

 
$

 
$
(54,535
)
 
$
674,488

Affordable Same Store
 
116,513

 

 
(15,312
)
 
101,201

 
111,956

 

 
(14,508
)
 
97,448

Total Same Store
 
877,563

 

 
(52,012
)
 
825,551

 
840,979

 

 
(69,043
)
 
771,936

Other Conventional 
 
83,451

 
5,400

 

 
88,851

 
75,242

 
5,744

 
(136
)
 
80,850

Other Affordable
 
29,934

 
23,251

 
(40,968
)
 
12,217

 
25,843

 
39,458

 
(50,093
)
 
15,208

Property management revenues, primarily from affiliates
 
480

 
(484
)
 
2,914

 
2,910

 
1,194

 
(644
)
 
3,647

 
4,197

Total rental and other property revenues
 
991,428

 
28,167

 
(90,066
)
 
929,529

 
943,258

 
44,558

 
(115,625
)
 
872,191

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
264,501

 

 
(13,299
)
 
251,202

 
260,305

 

 
(20,557
)
 
239,748

Affordable Same Store
 
46,120

 

 
(6,475
)
 
39,645

 
44,476

 

 
(6,378
)
 
38,098

Total Same Store
 
310,621

 

 
(19,774
)
 
290,847

 
304,781

 

 
(26,935
)
 
277,846

Other Conventional 
 
40,681

 
2,850

 

 
43,531

 
35,869

 
3,345

 
(76
)
 
39,138

Other Affordable
 
13,076

 
15,079

 
(22,643
)
 
5,512

 
12,369

 
24,641

 
(29,433
)
 
7,577

Casualties
 
1,917

 
10

 
535

 
2,462

 
11,445

 
(11
)
 
(96
)
 
11,338

Property management expenses
 
35,930

 

 
45

 
35,975

 
41,402

 

 
(340
)
 
41,062

Total property operating expenses
 
402,225

 
17,939

 
(41,837
)
 
378,327

 
405,866

 
27,975

 
(56,880
)
 
376,961

Net real estate operations
 
589,203

 
10,228

 
(48,229
)
 
551,202

 
537,392

 
16,583

 
(58,745
)
 
495,230

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred tax credit income
 
29,619

 

 

 
29,619

 
29,080

 

 

 
29,080

Asset management revenues
 
100

 

 
4,559

 
4,659

 
1,507

 

 
3,330

 
4,837

Non-recurring revenues 
 
12,050

 

 
2

 
12,052

 
8,074

 

 
495

 
8,569

Total tax credit and asset management revenues
 
41,769

 

 
4,561

 
46,330

 
38,661

 

 
3,825

 
42,486

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment management expenses
 
(12,008
)
 

 

 
(12,008
)
 
(10,459
)
 

 

 
(10,459
)
Depreciation and amortization related to non-real estate assets
 
(13,176
)
 
(1
)
 
71

 
(13,106
)
 
(12,739
)
 
(4
)
 
101

 
(12,642
)
General and administrative expenses
 
(49,602
)
 
(8
)
 
466

 
(49,144
)
 
(50,906
)
 
(10
)
 
1,067

 
(49,849
)
Other expense, net
 
(15,776
)
 
(45
)
 
3,090

 
(12,731
)
 
(17,796
)
 
(417
)
 
7,032

 
(11,181
)
Interest income
 
9,913

 
18

 
596

 
10,527

 
9,681

 
(87
)
 
1,258

 
10,852

Provision for losses on notes receivable
 
3,375

 

 
(706
)
 
2,669

 
509

 

 
(623
)
 
(114
)
Interest expense
 
(246,761
)
 
(5,931
)
 
7,198

 
(245,494
)
 
(290,168
)
 
(10,378
)
 
36,328

 
(264,218
)
Gain (loss) on disposition of non-depreciable assets and other
 
2

 

 

 
2

 
(68
)
 

 

 
(68
)
Income tax benefit
 
1,524

 

 

 
1,524

 
5,842

 

 

 
5,842

Discontinued operations, net of non-FFO items
 
23,322

 

 
(5,008
)
 
18,314

 
48,031

 

 
(5,419
)
 
42,612

Preferred dividends and distributions
 
(33,758
)
 

 

 
(33,758
)
 
(56,439
)
 

 

 
(56,439
)
Preferred redemption related amounts
 
(22,626
)
 

 

 
(22,626
)
 
3,904

 

 

 
3,904

Common noncontrolling interests in Aimco Operating Partnership
 
(14,318
)
 

 

 
(14,318
)
 
(13,364
)
 

 

 
(13,364
)
Amounts allocated to participating securities
 
(925
)
 

 

 
(925
)
 
(778
)
 

 

 
(778
)
Funds From Operations
 
$
260,158

 
$
4,261

 
$
(37,961
)
 
$
226,458

 
$
191,303

 
$
5,687

 
$
(15,176
)
 
$
181,814

Preferred stock redemption related amounts
 
22,626

 

 

 
22,626

 
(3,904
)
 

 

 
(3,904
)
Common noncontrolling interests in Aimco Operating Partnership
 
(1,341
)
 

 

 
(1,341
)
 
266

 

 

 
266

Amounts allocated to participating securities
 
(87
)
 

 

 
(87
)
 
16

 

 

 
16

Pro forma Funds From Operations
 
$
281,356

 
$
4,261

 
$
(37,961
)
 
$
247,656

 
$
187,681

 
$
5,687

 
$
(15,176
)
 
$
178,192

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares - diluted
 
134,743

 
Weighted average shares - diluted
 
119,626

 
 
Per Share:
 
 
 
Per Share:
 
 
 
 
Funds From Operations
 
$
1.68

 
Funds From Operations
 
$
1.52

 
 
Pro forma Funds From Operations
 
$
1.84

 
Pro forma Funds From Operations
 
$
1.49



 
15



Supplemental Schedule 1(b) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
Pro Forma Funds From Operations Reconciliation to GAAP
 
 
 
 
 
 
 
 
 
 
(Page 2 of 2)
 
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
(in thousands) (unaudited)
 
 
Year Ended December 31, 2012
 
Year Ended December 31, 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
 
$
281,356

 
$
4,261

 
$
(37,961
)
 
$
247,656

 
$
187,681

 
$
5,687

 
$
(15,176
)
 
$
178,192

Adjustments related to continuing operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
(345,077
)
 
(8,266
)
 
26,738

 
(326,605
)
 
(342,820
)
 
(13,006
)
 
36,233

 
(319,593
)
Depreciation and amortization related to non-real estate assets
 
13,176

 
1

 
(71
)
 
13,106

 
12,739

 
4

 
(101
)
 
12,642

Provision for impairment losses on depreciable assets
 
(8,910
)
 
(4,729
)
 
4,257

 
(9,382
)
 
(4,986
)
 
(12,617
)
 
12,646

 
(4,957
)
Gain on dispositions of and impairments related to unconsolidated entities and other, net of tax
 
21,848

 
4,325

 
(10,774
)
 
15,399

 
7,238

 
2,211

 
(6,940
)
 
2,509

Adjustments related to discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization related to real estate
 
(21,514
)
 

 
2,345

 
(19,169
)
 
(52,132
)
 

 
10,064

 
(42,068
)
Provision for operating real estate impairment losses, net of tax
 
(15,338
)
 

 
2,935

 
(12,403
)
 
(19,331
)
 

 
4,017

 
(15,314
)
Gain on dispositions of real estate, net of tax
 
223,799

 

 
(38,687
)
 
185,112

 
100,868

 

 
(40,486
)
 
60,382

Total adjustments
 
$
(132,016
)
 
$
(8,669
)
 
$
(13,257
)
 
$
(153,942
)
 
$
(298,424
)
 
$
(23,408
)
 
$
15,433

 
$
(306,399
)
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments
 
10,468

 

 

 
10,468

 
20,602

 

 

 
20,602

Amounts allocable to participating securities
 
590

 

 

 
590

 
540

 

 

 
540

Preferred stock redemption related amounts
 
(22,626
)
 

 

 
(22,626
)
 
3,904

 

 

 
3,904

Equity in losses of unconsolidated real estate partnerships
 
(4,408
)
 
4,408

 

 

 
(17,721
)
 
17,721

 

 

Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships
 
(51,218
)
 

 
51,218

 

 
257

 

 
(257
)
 

Net income (loss) attributable to Aimco common stockholders
 
$
82,146

 
$

 
$

 
$
82,146

 
$
(103,161
)
 
$

 
$

 
$
(103,161
)





 
16



Supplemental Schedule 2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Summary
 
 
 
 
 
 
 
 
 
As of December 31, 2012
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
Number of
Properties
 
Number of
Units
 
Effective
Units
 
Average
Ownership
 
Real Estate Portfolio:
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
139

 
50,304

 
48,610

 
97
%
 
Affordable Same Store
 
67

 
9,994

 
8,712

 
87
%
 
Total Same Store
 
206

 
60,298

 
57,322

 
95
%
 
Conventional Redevelopment
 
4

 
1,502

 
1,502

 
100
%
 
Conventional Acquisition 
 
7

 
756

 
686

 
91
%
 
Other Conventional
 
25

 
3,317

 
3,317

 
100
%
 
Other Affordable
 
23

 
2,104

 
535

 
25
%
 
Total real estate portfolio
 
265

 
67,977

 
63,362

 
93
%
 
 
 
 
 
 
 
 
 
 
 
Total Conventional portfolio
 
175

 
55,879

 
54,115

 
97
%
 
Total Affordable portfolio
 
90

 
12,098

 
9,247

 
76
%
 
 
 
 
 
 
 
 
 
 
 












 
17



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]
 
$
813,201

 
$
113,418

 
$
926,619

 
Property operating expenses [1]
 
(294,733
)
 
(45,157
)
 
(339,890
)
 
Property NOI [1]
 
$
518,468

 
$
68,261

 
$
586,729

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proportionate Balance Sheet Data
 
 
 
 
 
 
 
 
As of December 31, 2012
 
 
 
 
 
 
 
 
 
 
Consolidated
GAAP
Balance Sheet
 
Proportionate
Share of
Unconsolidated
Partnerships
 
Noncontrolling
Interests
 
Proportionate
Balance
Sheet
Assets
 
 
 
 
 
 
 
 
Real estate
 
$
8,333,419

 
$
54,871

 
$
(385,254
)
 
$
8,003,036

Accumulated depreciation
 
(2,820,765
)
 
(5,464
)
 
15,892

 
(2,810,337
)
Net real estate [2]
 
5,512,654

 
49,407

 
(369,362
)
 
5,192,699

 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
84,413

 
793

 
(24,145
)
 
61,061

Restricted cash
 
146,859

 
1,564

 
(6,118
)
 
142,305

Accounts receivable, net
 
34,020

 
80

 
(5,934
)
 
28,166

Notes receivable, net
 
102,897

 

 
(996
)
 
101,901

Investment in unconsolidated real estate partnerships
 
18,743

 
(11,643
)
 
(5,824
)
 
1,276

Deferred financing costs, net
 
40,636

 
230

 
(2,442
)
 
38,424

Goodwill
 
54,478

 

 

 
54,478

Other assets
 
406,680

 
218

 
(157,449
)
 
249,449

Total assets
 
$
6,401,380

 
$
40,649

 
$
(572,270
)
 
$
5,869,759

 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
Non-recourse property debt
 
$
4,688,447

 
$
31,186

 
$
(237,957
)
 
$
4,481,676

Deferred income [3]
 
128,577

 
27

 

 
128,604

Other liabilities
 
349,416

 
9,436

 
(150,936
)
 
207,916

Total liabilities
 
5,166,440

 
40,649

 
(388,893
)
 
4,818,196

 
 
 
 
 
 
 
 
 
Preferred noncontrolling interests in Aimco Operating Partnership
 
80,046

 

 

 
80,046

Perpetual preferred stock
 
68,114

 

 

 
68,114

Other Aimco equity
 
847,311

 

 
87,688

 
934,999

Noncontrolling interests in consolidated real estate partnerships
 
271,065

 

 
(271,065
)
 

Common noncontrolling interests in Aimco Operating Partnership
 
(31,596
)
 

 

 
(31,596
)
Total liabilities and equity
 
$
6,401,380

 
$
40,649

 
$
(572,270
)
 
$
5,869,759





18



Supplemental Schedule 3 (continued)
 
 
 
 
 
 
 
 
 
 
 
Net Asset Value Supplemental Information
(Page 2 of 2)
 
 
 
 
 
 
 
 
 
 
[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 substantially vacant redevelopment properties, Lincoln Place, Pacific Bay Vistas and The Preserve at Marin, that have December 31, 2012, net book values of $328 million in total. These properties are included in Aimco’s redevelopment pipeline.
[3]
Deferred income includes $81.8 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.
 
 
 
 
 
December 31, 2012
 
 
 
 
Deferred tax credit income balance
 
$
81,805

 
 
 
 
Cash contributions to be received in the future
 
42,552

 
 
 
 
Total to be amortized
 
$
124,357

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of
Deferred Income
 
Estimated Income
Taxes
 
Projected Income,
net of tax
 
 
2013
 
27,507

 
(10,728
)
 
16,779

 
 
2014
 
26,477

 
(10,326
)
 
16,151

 
 
2015
 
22,504

 
(8,777
)
 
13,727

 
 
2016
 
17,141

 
(6,685
)
 
10,456

 
 
2017
 
13,515

 
(5,271
)
 
8,244

 
 
Thereafter
 
17,213

 
(6,713
)
 
10,500

 
 
Total
 
$
124,357

 
$
(48,500
)
 
$
75,857

 



























19



Supplemental Schedule 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Recourse Property Debt Information
 
 
 
 
 
 
 
 
 
(Page 1 of 2)
 
As of December 31, 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]
 
$
4,167,549

 
$
8,543

 
$
(185,499
)
 
$
3,990,593

 
7.4

 
5.65
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate tax-exempt bonds
 
59,205

 

 
(45
)
 
59,160

 
6.8

 
0.20
%
Total Conventional portfolio
 
4,226,754

 
8,543

 
(185,544
)
 
4,049,753

 
7.4

 
5.58
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Affordable Portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate loans payable
 
266,814

 
22,643

 
(24,136
)
 
265,321

 
11.7

 
4.46
%
Floating rate loans payable
 
24,038

 

 
(10,908
)
 
13,130

 
4.4

 
2.93
%
Total property loans payable
 
290,852

 
22,643

 
(35,044
)
 
278,451

 
11.1

 
4.33
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate tax-exempt bonds
 
99,447

 

 
(17,369
)
 
82,078

 
25.0

 
4.92
%
Floating rate tax-exempt bonds
 
71,394

 

 

 
71,394

 
1.3

 
2.60
%
Total property tax-exempt bond financing
 
170,841

 

 
(17,369
)
 
153,472

 
15.1

 
3.95
%
Total Affordable portfolio
 
461,693

 
22,643

 
(52,413
)
 
431,923

 
12.6

 
4.19
%
Total non-recourse property debt
 
$
4,688,447

 
$
31,186

 
$
(237,957
)
 
$
4,481,676

 
7.9

 
5.44
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Aimco Share Non-Recourse Property Debt
 
 
 
 
 
 
 
 
 
 
 
 
Amount
 
% of Total
Fixed rate property debt
 
$
4,337,992

 
96.8
%
Floating rate tax-exempt bonds
 
130,554

 
2.9
%
Floating rate loans payable
 
13,130

 
0.3
%
Total
 
$
4,481,676

 
 
 
 
Amortization
 
Maturities
 
Total
 
Maturities as 
a Percent
of Total Debt
 
Average Rate on
Maturing Debt
2013 Q1
 
20,047

 
77,256

 
97,303

 
1.72
%
 
5.10
%
2013 Q2
 
20,042

 
23,487

 
43,529

 
0.52
%
 
5.36
%
2013 Q3
 
20,246

 
65,816

 
86,062

 
1.47
%
 
5.67
%
2013 Q4
 
20,434

 
5,575

 
26,009

 
0.12
%
 

Total 2013
 
80,769

 
172,134

 
252,903

 
3.84
%
 
5.17
%
 
 
 
 
 
 
 
 
 
 
 
2014 Q1
 
20,762

 
12,594

 
33,356

 
0.28
%
 
5.38
%
2014 Q2
 
20,828

 
72,858

 
93,686

 
1.63
%
 
2.60
%
2014 Q3
 
20,910

 
53,846

 
74,756

 
1.20
%
 
5.29
%
2014 Q4
 
21,052

 
96,657

 
117,709

 
2.16
%
 
5.58
%
Total 2014
 
83,552

 
235,955

 
319,507

 
5.26
%
 
4.58
%
 
 
 
 
 
 
 
 
 
 
 
2015
 
84,496

 
178,921

 
263,417

 
3.99
%
 
4.87
%
2016
 
82,886

 
362,775

 
445,661

 
8.09
%
 
5.67
%
2017
 
76,611

 
443,447

 
520,058

 
9.89
%
 
5.95
%
2018
 
72,218

 
197,241

 
269,459

 
4.40
%
 
4.59
%
2019
 
66,197

 
538,545

 
604,742

 
12.02
%
 
5.72
%
2020
 
59,054

 
383,550

 
442,604

 
8.56
%
 
6.51
%
2021 [2]
 
38,129

 
712,048

 
750,177

 
15.89
%
 
5.71
%
2022
 
24,529

 
175,556

 
200,085

 
3.92
%
 
5.16
%
Thereafter
 
287,576

 
125,487

 
413,063

 
2.80
%
 
3.07
%
Total
 
$
956,017

 
$
3,525,659

 
$
4,481,676

 
 
 
 
[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 $611.1 million, or 14.0% of maturities as a percentage of total debt.

20



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
%
2013
 
63.0

 
63.5

 

 
7.50
%
 
2.73
%
2016
 
0.9

 
6.1

 
5.3

 
4.75
%
 
4.72
%
2028
 
14.3

 
14.5

 
0.2

 
1.50
%
 
4.16
%
New loans
 

 
39.2

 
38.6

 

 
4.49
%
Acquisition [2]
 

 
58.8

 

 

 
5.00
%
Totals
 
$
133.2

 
$
254.1

 
$
61.0

 
6.57
%
 
4.17
%
 
 
 
 
 
 
 
 
 
 
 
Debt Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trailing Twelve
Months
 
Annualized Quarter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to EBITDA
 
7.5x
 
7.4x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and Preferred Equity to EBITDA
 
7.8x
 
7.7x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA Coverage of Interest
 
2.3x
 
2.5x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA Coverage of Interest and Preferred Dividends [3]
 
2.2x
 
2.4x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Line of Credit Debt Coverage Covenants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount
 
Covenant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Service Coverage Ratio
 
 
 
1.65x
 
1.50x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charge Coverage Ratio
 
 
 
1.50x
 
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.










21



Supplemental Schedule 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share Data
 
 
 
 
 
 
 
 
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares/Units Outstanding as of December 31, 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
 
1.610%
 
37,000

Total perpetual preferred stock
 
 
 
 
 
 
 
68,856

 
 
 
 
 
 
 
 
 
Preferred Partnership Units
 
2,930

 
 
 
8.113%
 
79,231

Total preferred securities
 
 
 
 
 
 
 
$
148,087

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Partnership Units and Equivalents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
 
As of
 
December 31, 2012
 
December 31, 2012
December 31, 2012
EPS
 
FFO/AFFO
 
EPS
 
FFO/AFFO
Class A Common Stock outstanding
 
145,038

 
145,035

 
145,035

 
134,479

 
134,479

Dilutive securities:
 
 
 
 
 
 
 
 
 
 
Options and restricted stock
 
353

 

 
142

 

 
264

Total shares and dilutive share equivalents
 
145,391

 
145,035

 
145,177

 
134,479

 
134,743

Common Partnership Units and equivalents
 
8,005

 
 
 
 
 
 
 
 
Total shares, units and dilutive share equivalents
 
153,396

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




















22



Supplemental Schedule 6(a)
 
Conventional Same Store Operating Results
Fourth Quarter 2012 Compared to Fourth 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
 
4Q
2012
4Q
2011
Growth
 
4Q
2012
4Q
2011
Growth
 
4Q
2012
4Q
2011
Growth
 
 
4Q
2012
 
4Q
2012
4Q
2011
 
4Q
2012
4Q
2011
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
12
3,552
2,901
 
$
18,772

$
17,937

4.7%
 
$
5,531

$
5,357

3.2%
 
$
13,241

$
12,580

5.3%
 
 
70.5%
 
95.9%
95.8%
 
$
2,251

$
2,151

Orange County
 
4
1,213
1,213
 
6,110

5,907

3.4%
 
1,777

1,838

(3.3)%
 
4,333

4,069

6.5%
 
 
70.9%
 
95.4%
96.9%
 
1,760

1,675

San Diego
 
6
2,144
2,144
 
8,747

8,538

2.4%
 
2,439

2,445

(0.2)%
 
6,308

6,093

3.5%
 
 
72.1%
 
95.5%
94.7%
 
1,425

1,402

Southern CA Total
 
22
6,909
6,257
 
33,629

32,382

3.9%
 
9,747

9,640

1.1%
 
23,882

22,742

5.0%
 
 
71.0%
 
95.7%
95.7%
 
1,873

1,803

East Bay
 
2
413
413
 
1,865

1,693

10.2%
 
620

646

(4.0)%
 
1,245

1,047

18.9%
 
 
66.8%
 
97.0%
97.4%
 
1,552

1,403

San Jose
 
1
224
224
 
1,211

1,108

9.3%
 
414

184

125.0%
 
797

924

(13.7)%
 
 
65.8%
 
96.1%
95.7%
 
1,875

1,723

San Francisco
 
5
774
774
 
4,510

4,052

11.3%
 
1,471

1,418

3.7%
 
3,039

2,634

15.4%
 
 
67.4%
 
96.0%
97.2%
 
2,022

1,796

Northern CA Total
 
8
1,411
1,411
 
7,586

6,853

10.7%
 
2,505

2,248

11.4%
 
5,081

4,605

10.3%
 
 
67.0%
 
96.3%
97.0%
 
1,860

1,669

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
1
104
104
 
456

427

6.8%
 
181

181

—%
 
275

246

11.8%
 
 
60.3%
 
98.6%
95.6%
 
1,483

1,432

Pacific Total
 
31
8,424
7,772
 
41,671

39,662

5.1%
 
12,433

12,069

3.0%
 
29,238

27,593

6.0%
 
 
70.2%
 
95.8%
95.9%
 
1,865

1,774

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Suburban New York - New Jersey
 
2
1,162
1,162
 
4,808

4,566

5.3%
 
1,635

1,569

4.2%
 
3,173

2,997

5.9%
 
 
66.0%
 
94.6%
96.7%
 
1,458

1,355

Washington - NoVa - MD
 
14
6,547
6,464
 
27,293

26,312

3.7%
 
8,302

7,736

7.3%
 
18,991

18,576

2.2%
 
 
69.6%
 
95.3%
96.3%
 
1,476

1,409

Boston
 
9
3,068
3,068
 
11,661

11,113

4.9%
 
4,112

4,101

0.3%
 
7,549

7,012

7.7%
 
 
64.7%
 
95.4%
95.4%
 
1,328

1,265

Philadelphia
 
6
2,929
2,850
 
12,017

11,592

3.7%
 
3,986

4,133

(3.6)%
 
8,031

7,459

7.7%
 
 
66.8%
 
95.6%
95.8%
 
1,471

1,415

Northeast Total
 
31
13,706
13,544
 
55,779

53,583

4.1%
 
18,035

17,539

2.8%
 
37,744

36,044

4.7%
 
 
67.7%
 
95.3%
96.0%
 
1,440

1,373

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5
2,471
2,460
 
13,800

12,787

7.9%
 
4,728

4,077

16.0%
 
9,072

8,710

4.2%
 
 
65.7%
 
97.0%
97.2%
 
1,928

1,783

Orlando
 
5
1,481
1,481
 
3,689

3,581

3.0%
 
1,739

1,506

15.5%
 
1,950

2,075

(6.0)%
 
 
52.9%
 
94.2%
94.7%
 
881

851

Jacksonville
 
4
1,643
1,643
 
4,353

4,221

3.1%
 
1,921

1,911

0.5%
 
2,432

2,310

5.3%
 
 
55.9%
 
94.7%
95.7%
 
933

895

Florida Total
 
14
5,595
5,584
 
21,842

20,589

6.1%
 
8,388

7,494

11.9%
 
13,454

13,095

2.7%
 
 
61.6%
 
95.6%
96.1%
 
1,364

1,279

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5
2,237
2,168
 
5,194

4,821

7.7%
 
2,353

2,057

14.4%
 
2,841

2,764

2.8%
 
 
54.7%
 
94.6%
91.8%
 
844

807

Denver
 
8
2,177
2,104
 
6,979

6,487

7.6%
 
1,978

2,012

(1.7)%
 
5,001

4,475

11.8%
 
 
71.7%
 
95.5%
96.6%
 
1,158

1,064

Phoenix
 
5
1,318
1,018
 
2,488

2,437

2.1%
 
920

966

(4.8)%
 
1,568

1,471

6.6%
 
 
63.0%
 
94.9%
95.5%
 
858

835

Atlanta
 
5
1,295
1,125
 
3,572

3,356

6.4%
 
1,556

1,352

15.1%
 
2,016

2,004

0.6%
 
 
56.4%
 
94.8%
97.3%
 
1,117

1,022

Sunbelt Total
 
37
12,622
11,999
 
40,075

37,690

6.3%
 
15,195

13,881

9.5%
 
24,880

23,809

4.5%
 
 
62.1%
 
95.2%
95.5%
 
1,169

1,097

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
11
3,393
3,329
 
13,715

13,006

5.5%
 
4,506

4,368

3.2%
 
9,209

8,638

6.6%
 
 
67.1%
 
96.0%
94.1%
 
1,430

1,384

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
110
38,145
36,644
 
151,240

143,941

5.1%
 
50,169

47,857

4.8%
 
101,071

96,084

5.2%
 
 
66.8%
 
95.5%
95.7%
 
1,441

1,369

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5
1,180
1,066
 
3,917

3,753

4.4%
 
1,359

1,376

(1.2)%
 
2,558

2,377

7.6%
 
 
65.3%
 
93.9%
94.5%
 
1,304

1,241

Nashville
 
4
1,114
1,114
 
3,384

3,162

7.0%
 
1,260

1,174

7.3%
 
2,124

1,988

6.8%
 
 
62.8%
 
94.8%
95.4%
 
1,068

992

Norfolk - Richmond
 
6
1,643
1,564
 
4,955

4,791

3.4%
 
1,532

1,454

5.4%
 
3,423

3,337

2.6%
 
 
69.1%
 
95.9%
94.7%
 
1,101

1,078

Other Markets
 
14
8,222
8,222
 
21,375

20,321

5.2%
 
8,519

8,628

(1.3)%
 
12,856

11,693

9.9%
 
 
60.1%
 
94.6%
93.9%
 
916

878

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
29
12,159
11,966
 
33,631

32,027

5.0%
 
12,670

12,632

0.3%
 
20,961

19,395

8.1%
 
 
62.3%
 
94.7%
94.2%
 
989

947

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
139
50,304
48,610
 
$
184,871

$
175,968

5.1%
 
$
62,839

$
60,489

3.9%
 
$
122,032

$
115,479

5.7%
 
 
66.0%
 
95.3%
95.3%
 
$
1,330

$
1,266





 
23



Supplemental Schedule 6(b)
 
Conventional Same Store Operating Results
Fourth Quarter 2012 Compared to Third 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
 
4Q
2012
3Q
2012
Growth
 
4Q
2012
3Q
2012
Growth
 
4Q
2012
3Q
2012
Growth
 
 
4Q
2012
 
4Q
2012
3Q
2012
 
4Q
2012
3Q
2012
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
12
3,552
2,901
 
$
18,772

$
18,551

1.2%
 
$
5,531

$
5,569

(0.7)%
 
$
13,241

$
12,982

2.0%
 
 
70.5%
 
95.9%
95.1%
 
$
2,251

$
2,241

Orange County
 
4
1,213
1,213
 
6,110

6,155

(0.7)%
 
1,777

1,898

(6.4)%
 
4,333

4,257

1.8%
 
 
70.9%
 
95.4%
97.2%
 
1,760

1,741

San Diego
 
6
2,144
2,144
 
8,747

8,813

(0.7)%
 
2,439

2,650

(8.0)%
 
6,308

6,163

2.4%
 
 
72.1%
 
95.5%
95.3%
 
1,425

1,437

Southern CA Total
 
22
6,909
6,257
 
33,629

33,519

0.3%
 
9,747

10,117

(3.7)%
 
23,882

23,402

2.1%
 
 
71.0%
 
95.7%
95.6%
 
1,873

1,869

East Bay
 
2
413
413
 
1,865

1,827

2.1%
 
620

698

(11.2)%
 
1,245

1,129

10.3%
 
 
66.8%
 
97.0%
97.1%
 
1,552

1,519

San Jose
 
1
224
224
 
1,211

1,163

4.1%
 
414

397

4.3%
 
797

766

4.0%
 
 
65.8%
 
96.1%
96.1%
 
1,875

1,800

San Francisco
 
5
774
774
 
4,510

4,381

2.9%
 
1,471

1,460

0.8%
 
3,039

2,921

4.0%
 
 
67.4%
 
96.0%
96.7%
 
2,022

1,951

Northern CA Total
 
8
1,411
1,411
 
7,586

7,371

2.9%
 
2,505

2,555

(2.0)%
 
5,081

4,816

5.5%
 
 
67.0%
 
96.3%
96.7%
 
1,860

1,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
1
104
104
 
456

445

2.5%
 
181

190

(4.7)%
 
275

255

7.8%
 
 
60.3%
 
98.6%
96.9%
 
1,483

1,473

Pacific Total
 
31
8,424
7,772
 
41,671

41,335

0.8%
 
12,433

12,862

(3.3)%
 
29,238

28,473

2.7%
 
 
70.2%
 
95.8%
95.8%
 
1,865

1,851

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Suburban New York - New Jersey
 
2
1,162
1,162
 
4,808

4,780

0.6%
 
1,635

2,093

(21.9)%
 
3,173

2,687

18.1%
 
 
66.0%
 
94.6%
95.5%
 
1,458

1,436

Washington - NoVa - MD
 
14
6,547
6,464
 
27,293

27,406

(0.4)%
 
8,302

8,697

(4.5)%
 
18,991

18,709

1.5%
 
 
69.6%
 
95.3%
95.7%
 
1,476

1,476

Boston
 
9
3,068
3,068
 
11,661

11,634

0.2%
 
4,112

4,339

(5.2)%
 
7,549

7,295

3.5%
 
 
64.7%
 
95.4%
95.8%
 
1,328

1,320

Philadelphia
 
6
2,929
2,850
 
12,017

11,736

2.4%
 
3,986

4,384

(9.1)%
 
8,031

7,352

9.2%
 
 
66.8%
 
95.6%
94.2%
 
1,471

1,457

Northeast Total
 
31
13,706
13,544
 
55,779

55,556

0.4%
 
18,035

19,513

(7.6)%
 
37,744

36,043

4.7%
 
 
67.7%
 
95.3%
95.4%
 
1,440

1,433

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5
2,471
2,460
 
13,800

13,587

1.6%
 
4,728

4,528

4.4%
 
9,072

9,059

0.1%
 
 
65.7%
 
97.0%
96.5%
 
1,928

1,908

Orlando
 
5
1,481
1,481
 
3,689

3,606

2.3%
 
1,739

1,618

7.5%
 
1,950

1,988

(1.9)%
 
 
52.9%
 
94.2%
94.6%
 
881

858

Jacksonville
 
4
1,643
1,643
 
4,353

4,409

(1.3)%
 
1,921

1,927

(0.3)%
 
2,432

2,482

(2.0)%
 
 
55.9%
 
94.7%
95.6%
 
933

936

Florida Total
 
14
5,595
5,584
 
21,842

21,602

1.1%
 
8,388

8,073

3.9%
 
13,454

13,529

(0.6)%
 
 
61.6%
 
95.6%
95.7%
 
1,364

1,347

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5
2,237
2,168
 
5,194

5,119

1.5%
 
2,353

2,470

(4.7)%
 
2,841

2,649

7.2%
 
 
54.7%
 
94.6%
95.1%
 
844

828

Denver
 
8
2,177
2,104
 
6,979

6,866

1.6%
 
1,978

2,184

(9.4)%
 
5,001

4,682

6.8%
 
 
71.7%
 
95.5%
96.2%
 
1,158

1,131

Phoenix
 
5
1,318
1,018
 
2,488

2,510

(0.9)%
 
920

974

(5.5)%
 
1,568

1,536

2.1%
 
 
63.0%
 
94.9%
94.5%
 
858

869

Atlanta
 
5
1,295
1,125
 
3,572

3,523

1.4%
 
1,556

1,332

16.8%
 
2,016

2,191

(8.0)%
 
 
56.4%
 
94.8%
96.4%
 
1,117

1,083

Sunbelt Total
 
37
12,622
11,999
 
40,075

39,620

1.1%
 
15,195

15,033

1.1%
 
24,880

24,587

1.2%
 
 
62.1%
 
95.2%
95.6%
 
1,169

1,151

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
11
3,393
3,329
 
13,715

13,289

3.2%
 
4,506

4,819

(6.5)%
 
9,209

8,470

8.7%
 
 
67.1%
 
96.0%
94.6%
 
1,430

1,406

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
110
38,145
36,644
 
151,240

149,800

1.0%
 
50,169

52,227

(3.9)%
 
101,071

97,573

3.6%
 
 
66.8%
 
95.5%
95.5%
 
1,441

1,427

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5
1,180
1,066
 
3,917

3,848

1.8%
 
1,359

1,589

(14.5)%
 
2,558

2,259

13.2%
 
 
65.3%
 
93.9%
93.5%
 
1,304

1,288

Nashville
 
4
1,114
1,114
 
3,384

3,347

1.1%
 
1,260

1,270

(0.8)%
 
2,124

2,077

2.3%
 
 
62.8%
 
94.8%
95.7%
 
1,068

1,047

Norfolk - Richmond
 
6
1,643
1,564
 
4,955

4,936

0.4%
 
1,532

1,662

(7.8)%
 
3,423

3,274

4.6%
 
 
69.1%
 
95.9%
94.6%
 
1,101

1,111

Other Markets
 
14
8,222
8,222
 
21,375

21,260

0.5%
 
8,519

8,119

4.9%
 
12,856

13,141

(2.2)%
 
 
60.1%
 
94.6%
94.7%
 
916

910

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
29
12,159
11,966
 
33,631

33,391

0.7%
 
12,670

12,640

0.2%
 
20,961

20,751

1.0%
 
 
62.3%
 
94.7%
94.7%
 
989

983

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
139
50,304
48,610
 
$
184,871

$
183,191

0.9%
 
$
62,839

$
64,867

(3.1)%
 
$
122,032

$
118,324

3.1%
 
 
66.0%
 
95.3%
95.3%
 
$
1,330

$
1,318





 
24



Supplemental Schedule 6(c)
 
Conventional Same Store Operating Results
Year Ended December 31, 2012 Compared to Year Ended December 31, 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
 
2012
2011
Growth
 
2012
2011
Growth
 
2012
2011
Growth
 
 
2012
 
2012
2011
 
2012
2011
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
12
3,552
2,901
 
$
73,702

$
70,954

3.9%
 
$
21,491

$
21,075

2.0%
 
$
52,211

$
49,879

4.7%
 
 
70.8%
 
95.6%
96.4%
 
$
2,214

$
2,114

Orange County
 
4
1,213
1,213
 
24,211

23,201

4.4%
 
7,205

7,163

0.6%
 
17,006

16,038

6.0%
 
 
70.2%
 
96.2%
97.1%
 
1,728

1,641

San Diego
 
6
2,144
2,144
 
34,607

33,592

3.0%
 
10,070

9,670

4.1%
 
24,537

23,922

2.6%
 
 
70.9%
 
95.4%
95.4%
 
1,410

1,369

Southern CA Total
 
22
6,909
6,257
 
132,520

127,747

3.7%
 
38,766

37,908

2.3%
 
93,754

89,839

4.4%
 
 
70.7%
 
95.7%
96.2%
 
1,845

1,768

East Bay
 
2
413
413
 
7,207

6,586

9.4%
 
2,594

2,457

5.6%
 
4,613

4,129

11.7%
 
 
64.0%
 
96.8%
97.6%
 
1,502

1,361

San Jose
 
1
224
224
 
4,677

4,324

8.2%
 
1,639

1,251

31.0%
 
3,038

3,073

(1.1)%
 
 
65.0%
 
96.7%
96.7%
 
1,800

1,663

San Francisco
 
5
774
774
 
17,264

15,559

11.0%
 
5,736

5,261

9.0%
 
11,528

10,298

11.9%
 
 
66.8%
 
96.4%
97.0%
 
1,927

1,727

Northern CA Total
 
8
1,411
1,411
 
29,148

26,469

10.1%
 
9,969

8,969

11.1%
 
19,179

17,500

9.6%
 
 
65.8%
 
96.6%
97.1%
 
1,782

1,609

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
1
104
104
 
1,781

1,666

6.9%
 
719

703

2.3%
 
1,062

963

10.3%
 
 
59.6%
 
97.7%
96.0%
 
1,460

1,390

Pacific Total
 
31
8,424
7,772
 
163,449

155,882

4.9%
 
49,454

47,580

3.9%
 
113,995

108,302

5.3%
 
 
69.7%
 
95.9%
96.4%
 
1,828

1,734

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Suburban New York - New Jersey
 
2
1,162
1,162
 
18,991

17,576

8.1%
 
6,822

6,441

5.9%
 
12,169

11,135

9.3%
 
 
64.1%
 
96.1%
95.5%
 
1,417

1,320

Washington - NoVa - MD
 
14
6,547
6,464
 
108,512

103,985

4.4%
 
33,370

32,240

3.5%
 
75,142

71,745

4.7%
 
 
69.2%
 
96.0%
96.5%
 
1,457

1,390

Boston
 
9
3,068
3,068
 
46,041

43,862

5.0%
 
17,061

17,200

(0.8)%
 
28,980

26,662

8.7%
 
 
62.9%
 
95.8%
96.2%
 
1,306

1,239

Philadelphia
 
6
2,929
2,850
 
47,120

45,407

3.8%
 
17,348

17,962

(3.4)%
 
29,772

27,445

8.5%
 
 
63.2%
 
95.0%
95.5%
 
1,451

1,389

Northeast Total
 
31
13,706
13,544
 
220,664

210,830

4.7%
 
74,601

73,843

1.0%
 
146,063

136,987

6.6%
 
 
66.2%
 
95.7%
96.1%
 
1,418

1,349

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5
2,471
2,460
 
53,581

50,126

6.9%
 
17,889

18,281

(2.1)%
 
35,692

31,845

12.1%
 
 
66.6%
 
96.8%
97.0%
 
1,875

1,751

Orlando
 
5
1,481
1,481
 
14,519

14,016

3.6%
 
6,364

6,088

4.5%
 
8,155

7,928

2.9%
 
 
56.2%
 
94.7%
94.9%
 
862

831

Jacksonville
 
4
1,643
1,643
 
17,358

16,550

4.9%
 
7,591

7,815

(2.9)%
 
9,767

8,735

11.8%
 
 
56.3%
 
95.2%
95.0%
 
924

883

Florida Total
 
14
5,595
5,584
 
85,458

80,692

5.9%
 
31,844

32,184

(1.1)%
 
53,614

48,508

10.5%
 
 
62.7%
 
95.8%
95.9%
 
1,331

1,256

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5
2,237
2,168
 
20,233

19,407

4.3%
 
9,317

8,626

8.0%
 
10,916

10,781

1.3%
 
 
54.0%
 
94.2%
92.9%
 
826

803

Denver
 
8
2,177
2,104
 
26,951

25,267

6.7%
 
8,307

8,228

1.0%
 
18,644

17,039

9.4%
 
 
69.2%
 
96.1%
97.3%
 
1,111

1,029

Phoenix
 
5
1,318
1,018
 
9,796

9,397

4.2%
 
3,636

3,671

(1.0)%
 
6,160

5,726

7.6%
 
 
62.9%
 
95.3%
96.2%
 
841

800

Atlanta
 
5
1,295
1,125
 
13,921

12,978

7.3%
 
5,424

4,885

11.0%
 
8,497

8,093

5.0%
 
 
61.0%
 
96.1%
96.9%
 
1,074

992

Sunbelt Total
 
37
12,622
11,999
 
156,359

147,741

5.8%
 
58,528

57,594

1.6%
 
97,831

90,147

8.5%
 
 
62.6%
 
95.6%
95.7%
 
1,137

1,072

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
11
3,393
3,329
 
53,593

51,697

3.7%
 
19,178

18,208

5.3%
 
34,415

33,489

2.8%
 
 
64.2%
 
95.5%
95.5%
 
1,405

1,354

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
110
38,145
36,644
 
594,065

566,150

4.9%
 
201,761

197,225

2.3%
 
392,304

368,925

6.3%
 
 
66.0%
 
95.7%
96.0%
 
1,412

1,341

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5
1,180
1,066
 
15,274

14,796

3.2%
 
5,744

5,658

1.5%
 
9,530

9,138

4.3%
 
 
62.4%
 
94.0%
94.8%
 
1,270

1,220

Nashville
 
4
1,114
1,114
 
13,312

12,451

6.9%
 
4,916

4,798

2.5%
 
8,396

7,653

9.7%
 
 
63.1%
 
96.0%
95.1%
 
1,038

979

Norfolk - Richmond
 
6
1,643
1,564
 
19,603

19,326

1.4%
 
6,202

5,970

3.9%
 
13,401

13,356

0.3%
 
 
68.4%
 
95.0%
95.5%
 
1,100

1,077

Other Markets
 
14
8,222
8,222
 
84,242

81,114

3.9%
 
34,825

35,920

(3.0)%
 
49,417

45,194

9.3%
 
 
58.7%
 
95.1%
94.7%
 
898

868

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
29
12,159
11,966
 
132,431

127,687

3.7%
 
51,687

52,346

(1.3)%
 
80,744

75,341

7.2%
 
 
61.0%
 
95.1%
94.9%
 
970

937

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
139
50,304
48,610
 
$
726,496

$
693,837

4.7%
 
$
253,448

$
249,571

1.6%
 
$
473,048

$
444,266

6.5%
 
 
65.1%
 
95.5%
95.7%
 
$
1,304

$
1,243





 
25



Supplemental Schedule 6(d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store Operating Expense Detail
Fourth Quarter and Year-to-Date Fourth Quarter 2012
 
 
 
 
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2012 Compared to Fourth Quarter 2011
 
 
 
 
 
 
 
 
 
 
4Q 2012
% of Total
 
4Q 2011
$ Change
% Change
Real estate taxes
 
$
17,239

27.4
%
 
$
15,002

$
2,237

14.9
 %
Onsite payroll
 
12,733

20.3
%
 
13,935

(1,202
)
(8.6
)%
Utilities
 
10,628

16.9
%
 
10,327

301

2.9
 %
Repairs and maintenance
 
9,150

14.6
%
 
9,311

(161
)
(1.7
)%
Software, technology and other
 
4,719

7.5
%
 
4,301

418

9.7
 %
Insurance
 
3,213

5.1
%
 
2,223

990

44.5
 %
Marketing
 
2,505

4.0
%
 
2,588

(83
)
(3.2
)%
Expensed turnover costs
 
2,652

4.2
%
 
2,802

(150
)
(5.4
)%
Total
 
$
62,839

100.0
%
 
$
60,489

$
2,350

3.9
 %
 
 
 
 
 
 
 
 
Fourth Quarter 2012 Compared to Third Quarter 2012
 
 
 
 
 
 
 
 
 
 
4Q 2012
% of Total
 
3Q 2012
$ Change
% Change
Real estate taxes
 
$
17,239

27.4
%
 
$
16,143

$
1,096

6.8
 %
Onsite payroll
 
12,733

20.3
%
 
12,485

248

2.0
 %
Utilities
 
10,628

16.9
%
 
10,712

(84
)
(0.8
)%
Repairs and maintenance
 
9,150

14.6
%
 
10,342

(1,192
)
(11.5
)%
Software, technology and other
 
4,719

7.5
%
 
4,726

(7
)
(0.1
)%
Insurance
 
3,213

5.1
%
 
3,974

(761
)
(19.1
)%
Marketing
 
2,505

4.0
%
 
2,889

(384
)
(13.3
)%
Expensed turnover costs
 
2,652

4.2
%
 
3,596

(944
)
(26.3
)%
Total
 
$
62,839

100.0
%
 
$
64,867

$
(2,028
)
(3.1
)%
 
 
 
 
 
 
 
 
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
 
 
 
 
 
 
 
 
 
 
 2012
% of Total
 
2011
$ Change
% Change
Real estate taxes
 
$
66,296

26.2
%
 
$
62,130

$
4,166

6.7
 %
Onsite payroll
 
50,762

20.0
%
 
56,984

(6,222
)
(10.9
)%
Utilities
 
44,025

17.4
%
 
44,343

(318
)
(0.7
)%
Repairs and maintenance
 
39,076

15.4
%
 
38,691

385

1.0
 %
Software, technology and other
 
17,806

7.0
%
 
16,287

1,519

9.3
 %
Insurance
 
13,701

5.4
%
 
10,135

3,566

35.2
 %
Marketing
 
10,524

4.2
%
 
9,829

695

7.1
 %
Expensed turnover costs
 
11,258

4.4
%
 
11,172

86

0.8
 %
Total
 
$
253,448

100.0
%
 
$
249,571

$
3,877

1.6
 %








26



Supplemental Schedule 7(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Conventional Portfolio Data by Market
Fourth Quarter 2012 Compared to Fourth Quarter 2011
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended December 31, 2012
 
Quarter Ended December 31, 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
 
13

 
4,248

 
3,597

 
9.9
%
 
$
2,251

 
14

 
4,645

 
3,993

 
10.4
%
 
$
2,045

Orange County
 
4

 
1,213

 
1,213

 
3.2
%
 
1,760

 
4

 
1,213

 
1,143

 
3.0
%
 
1,711

San Diego
 
11

 
2,370

 
2,300

 
5.0
%
 
1,430

 
10

 
2,286

 
2,145

 
4.8
%
 
1,419

Southern CA Total
 
28

 
7,831

 
7,110

 
18.1
%
 
1,869

 
28

 
8,144

 
7,281

 
18.2
%
 
1,788

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
East Bay
 
2

 
413

 
413

 
0.9
%
 
1,552

 
2

 
413

 
353

 
0.7
%
 
1,457

San Jose
 
1

 
224

 
224

 
0.6
%
 
1,875

 
1

 
224

 
224

 
0.7
%
 
1,723

San Francisco
 
7

 
1,208

 
1,208

 
2.2
%
 
2,022

 
7

 
1,208

 
1,208

 
2.0
%
 
1,796

Northern CA Total
 
10

 
1,845

 
1,845

 
3.7
%
 
1,860

 
10

 
1,845

 
1,785

 
3.4
%
 
1,695

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
2

 
239

 
239

 
0.2
%
 
1,625

 
2

 
239

 
200

 
0.5
%
 
1,636

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pacific Total
 
40

 
9,915

 
9,194

 
22.0
%
 
1,861

 
40

 
10,228

 
9,266

 
22.1
%
 
1,769

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan
 
21

 
959

 
959

 
3.0
%
 
2,859

 
22

 
957

 
957

 
2.6
%
 
2,358

Suburban New York - New Jersey
 
2

 
1,162

 
1,162

 
2.4
%
 
1,457

 
2

 
1,162

 
944

 
2.0
%
 
1,418

New York Total
 
23

 
2,121

 
2,121

 
5.4
%
 
2,077

 
24

 
2,119

 
1,901

 
4.6
%
 
1,895

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington - NoVA - MD
 
14

 
6,547

 
6,464

 
14.2
%
 
1,476

 
17

 
8,015

 
7,071

 
14.5
%
 
1,401

Boston
 
11

 
4,129

 
4,129

 
7.8
%
 
1,348

 
11

 
4,129

 
4,129

 
7.3
%
 
1,280

Philadelphia
 
7

 
3,888

 
3,809

 
8.0
%
 
1,527

 
7

 
3,888

 
3,664

 
7.5
%
 
1,496

Northeast Total
 
55

 
16,685

 
16,523

 
35.4
%
 
1,531

 
59

 
18,151

 
16,765

 
33.9
%
 
1,450

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5

 
2,482

 
2,471

 
6.8
%
 
1,920

 
5

 
2,474

 
2,463

 
6.5
%
 
1,783

Palm Beach - Fort Lauderdale
 
2

 
776

 
776

 
0.8
%
 
1,027

 
3

 
1,076

 
1,076

 
1.0
%
 
952

Orlando
 
6

 
1,715

 
1,715

 
1.8
%
 
899

 
7

 
2,315

 
2,315

 
2.1
%
 
875

Jacksonville
 
4

 
1,643

 
1,643

 
1.8
%
 
933

 
4

 
1,643

 
1,643

 
1.8
%
 
895

Florida Total
 
17

 
6,616

 
6,605

 
11.2
%
 
1,314

 
19

 
7,508

 
7,497

 
11.4
%
 
1,211

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5

 
2,237

 
2,168

 
2.1
%
 
844

 
5

 
2,237

 
1,873

 
1.9
%
 
813

Denver
 
8

 
2,177

 
2,104

 
3.7
%
 
1,158

 
8

 
2,177

 
1,775

 
3.0
%
 
1,108

Phoenix
 
6

 
1,806

 
1,506

 
2.0
%
 
973

 
12

 
3,017

 
2,605

 
2.7
%
 
793

Atlanta
 
5

 
1,295

 
1,125

 
1.5
%
 
1,117

 
5

 
1,295

 
1,125

 
1.5
%
 
1,022

Sunbelt Total
 
41

 
14,131

 
13,508

 
20.5
%
 
1,160

 
49

 
16,234

 
14,875

 
20.5
%
 
1,056

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
11

 
3,393

 
3,329

 
6.9
%
 
1,430

 
13

 
3,993

 
3,832

 
7.2
%
 
1,335

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
147

 
44,124

 
42,554

 
84.8
%
 
1,466

 
161

 
48,606

 
44,738

 
83.7
%
 
1,367

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5

 
1,180

 
1,066

 
1.9
%
 
1,304

 
5

 
1,180

 
993

 
1.7
%
 
1,227

Inland Empire
 

 

 

 

 

 
2

 
376

 
376

 
0.4
%
 
802

Michigan
 
3

 
3,306

 
3,306

 
3.2
%
 
769

 
3

 
3,306

 
3,306

 
2.7
%
 
726

Nashville
 
4

 
1,114

 
1,114

 
1.6
%
 
1,068

 
4

 
1,114

 
865

 
1.2
%
 
1,013

Non-Target Florida
 
3

 
702

 
702

 
0.8
%
 
876

 
4

 
906

 
906

 
1.0
%
 
830

Norfolk - Richmond
 
6

 
1,643

 
1,564

 
2.6
%
 
1,101

 
6

 
1,643

 
1,564

 
2.5
%
 
1,078

Providence RI
 
2

 
708

 
708

 
1.2
%
 
1,249

 
2

 
708

 
708

 
1.2
%
 
1,219

Other Markets
 
5

 
3,102

 
3,101

 
3.9
%
 
1,000

 
11

 
4,995

 
4,848

 
5.6
%
 
919

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
28

 
11,755

 
11,561

 
15.2
%
 
989

 
37

 
14,228

 
13,566

 
16.3
%
 
926

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
175

 
55,879

 
54,115

 
100.0
%
 
$
1,362

 
198

 
62,834

 
58,304

 
100.0
%
 
$
1,262




 
27



Supplemental Schedule 7(b)
 
Total Conventional Portfolio Data by Market
Third 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 3Q 2012 data, the most recent period for which third-party data is available.


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2012
 
 
Properties
 
Units
 
Effective
Units
 
% Aimco 
NOI
 
Average
Rent per
Unit [1]
 
Market
Rent [2]
 
Percentage
of Market
Rent
Average
 
2013 - 2015
Projected
Revenue
Growth [3]
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
14

 
4,645

 
3,993

 
10.6
%
 
$
1,986

 
$
1,409

 
141.0
%
 
4.2
%
Orange County
 
4

 
1,213

 
1,213

 
3.2
%
 
1,621

 
1,539

 
105.3
%
 
5.2
%
San Diego
 
11

 
2,370

 
2,300

 
5.0
%
 
1,280

 
1,361

 
94.0
%
 
3.8
%
Southern CA Total
 
29

 
8,228

 
7,506

 
18.8
%
 
1,687

 
1,414

 
119.3
%
 
4.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
East Bay
 
2

 
413

 
413

 
0.8
%
 
1,370

 
1,354

 
101.2
%
 
4.3
%
San Jose
 
1

 
224

 
224

 
0.6
%
 
1,657

 
1,955

 
84.8
%
 
5.4
%
San Francisco
 
7

 
1,208

 
1,208

 
2.1
%
 
1,758

 
1,602

 
109.7
%
 
4.6
%
Northern CA Total
 
10

 
1,845

 
1,845

 
3.5
%
 
1,628

 
1,778

 
91.6
%
 
5.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle
 
2

 
239

 
239

 
0.2
%
 
1,380

 
1,049

 
131.6
%
 
4.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pacific Total
 
41

 
10,312

 
9,590

 
22.5
%
 
1,669

 
1,471

 
113.5
%
 
4.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan
 
23

 
999

 
999

 
3.2
%
 
2,532

 
2,990

 
84.7
%
 
4.0
%
Suburban New York - New Jersey
 
2

 
1,162

 
1,162

 
2.0
%
 
1,289

 
1,519

 
84.9
%
 
4.8
%
New York Total
 
25

 
2,161

 
2,161

 
5.2
%
 
1,848

 
2,199

 
84.0
%
 
4.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington - NoVA - MD
 
14

 
6,547

 
6,462

 
14.1
%
 
1,342

 
1,484

 
90.4
%
 
3.7
%
Boston
 
11

 
4,129

 
4,129

 
7.5
%
 
1,248

 
1,730

 
72.1
%
 
4.3
%
Philadelphia
 
7

 
3,888

 
3,809

 
7.2
%
 
1,319

 
1,053

 
125.3
%
 
2.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Northeast Total
 
57

 
16,725

 
16,561

 
34.0
%
 
1,378

 
1,537

 
89.7
%
 
3.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami
 
5

 
2,482

 
2,471

 
6.7
%
 
1,665

 
1,072

 
155.3
%
 
2.9
%
Palm Beach - Fort Lauderdale
 
3

 
1,076

 
1,076

 
1.1
%
 
864

 
1,095

 
78.9
%
 
3.6
%
Orlando
 
6

 
1,715

 
1,715

 
1.8
%
 
772

 
840

 
91.9
%
 
3.6
%
Jacksonville
 
4

 
1,643

 
1,643

 
1.9
%
 
800

 
782

 
102.3
%
 
3.1
%
Florida Total
 
18

 
6,916

 
6,905

 
11.5
%
 
1,117

 
949

 
117.7
%
 
3.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
5

 
2,237

 
2,168

 
2.0
%
 
728

 
776

 
93.8
%
 
3.0
%
Denver
 
8

 
2,177

 
2,104

 
3.5
%
 
970

 
863

 
112.4
%
 
4.5
%
Phoenix
 
7

 
1,934

 
1,634

 
1.9
%
 
795

 
711

 
111.8
%
 
3.4
%
Atlanta
 
5

 
1,295

 
1,125

 
1.7
%
 
956

 
786

 
121.6
%
 
3.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sunbelt Total
 
43

 
14,559

 
13,936

 
20.6
%
 
983

 
864

 
113.8
%
 
3.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
13

 
3,993

 
3,929

 
7.2
%
 
1,212

 
1,043

 
116.2
%
 
4.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
154

 
45,589

 
44,016

 
84.3
%
 
1,292

 
1,264

 
102.2
%
 
3.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
5

 
1,180

 
1,066

 
1.7
%
 
1,166

 
1,033

 
112.9
%
 
4.0
%
Michigan
 
3

 
3,306

 
3,306

 
3.8
%
 
636

 
802

 
79.3
%
 
3.9
%
Minneapolis
 
2

 
732

 
651

 
1.6
%
 
1,636

 
974

 
168.0
%
 
4.1
%
Nashville
 
4

 
1,114

 
1,114

 
1.6
%
 
911

 
747

 
122.0
%
 
3.9
%
Non-Target Florida
 
3

 
702

 
702

 
0.8
%
 
734

 
1,024

 
71.7
%
 
3.5
%
Norfolk - Richmond
 
6

 
1,643

 
1,564

 
2.5
%
 
967

 
868

 
111.4
%
 
2.6
%
Providence RI
 
2

 
708

 
708

 
1.2
%
 
1,117

 
1,203

 
92.9
%
 
3.2
%
Other Markets
 
4

 
2,770

 
2,770

 
2.5
%
 
663

 
706

 
93.9
%
 
3.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
29

 
12,155

 
11,881

 
15.7
%
 
850

 
853

 
99.6
%
 
3.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
183

 
57,744

 
55,897

 
100.0
%
 
$
1,196

 
$
1,177

 
101.6
%
 
3.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] Represents rents after concessions and vacancy loss, divided by Effective Units. Does not include other rental income.
[2] 3Q 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.



28



Supplemental Schedule 8
 
Property Disposition and Acquisition Activity
(dollars in millions, except average revenue) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2012 Dispositions [1]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number
of
Properties
 
Number
of
Units
 
Weighted
Average
Ownership
 
Gross
Proceeds
 
NOI
Cap
Rate [2]
 
Property
Debt
 
Net Sales
Proceeds [3]
 
Aimco
Gross
Proceeds
 
Aimco
Net
Proceeds
 
Average
Revenue
per Unit
Conventional
 
8

 
1,865

 
96%
 
$
192.1

 
6.3
%
 
$
101.1

 
$
87.0

 
$
186.2

 
$
86.5

 
$
1,087

Affordable
 
16

 
1,417

 
43%
 
79.0

 
9.0
%
 
28.9

 
40.6

 
41.7

 
37.2

 
977

Total Dispositions
 
24

 
3,282

 
73%
 
$
271.1

 
6.8
%
 
$
130.0

 
$
127.6

 
$
227.9

 
$
123.7

 
$
1,014

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year-to-Date 2012 Dispositions [1]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number
of
Properties
 
Number
of
Units
 
Weighted
Average
Ownership
 
Gross
Proceeds
 
NOI
Cap
Rate [2]
 
Property
Debt
 
Net Sales
Proceeds [3]
 
Aimco
Gross
Proceeds
 
Aimco
Net
Proceeds
 
Average
Revenue
per Unit
Conventional [5]
 
24

 
6,273

 
96%
 
$
507.6

 
6.2
%
 
$
283.8

 
$
202.1

 
$
487.6

 
$
199.1

 
$
912

Affordable
 
47

 
4,638

 
54%
 
211.0

 
8.3
%
 
107.8

 
87.4

 
110.0

 
70.3

 
759

Total Dispositions
 
71

 
10,911

 
78%
 
$
718.6

 
6.6
%
 
$
391.6

 
$
289.5

 
$
597.6

 
$
269.4

 
$
861

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year-to-Date 2012 Acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Limited Partner Transactions
Year-to-date, Aimco has acquired for a total cost of $50.7 million the noncontrolling limited partnership interests in 11 consolidated real estate partnerships that own 17 properties with average monthly revenue per effective unit of $1,066 and in which Aimco affiliates serve as general partner. The gross estimated fair value of the real estate corresponding to the interests Aimco acquired totaled $147.9 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
 
[4]
$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
 
[4]
$1,880
 
115%
Total Acquisitions
 
614

 
$
127.8

 
$
58.8

 
5.00
%
 
7.6
 
 
$1,405
 
142%
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] Fourth quarter and year-to-date disposition activity excludes sales of partnership interests in three and 12 properties, respectively, for gross proceeds to Aimco of $1.3 million and $14.7 million.
[2] 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.
[3] Net Sales Proceeds are after repayment of existing debt, net working capital settlements, payment of transaction costs and debt prepayment penalties.
[4] Non-recourse property debt assumed in connection with acquisition.
[5] Year-to-date, Aimco has disposed of Conventional Properties in the following markets:
 
 Market
Properties
 
Units
 
 
 Target:
 
 
 
 
 
 Tampa
5

 
1,493

 
 
 Phoenix
7

 
1,699

 
 
 Manhattan
2

 
40

 
 
 Chicago
2

 
600

 
 
 Los Angeles
1

 
397

 
 
 Palm Beach/Fort Lauderdale
1

 
300

 
 
 Orlando
1

 
600

 
 
 Washington D.C.
1

 
164

 
 
Total Target
20

 
5,293

 
 
 Other Markets:
 
 
 
 
 
 Daytona Beach
1

 
204

 
 
 Minneapolis
1

 
400

 
 
 Inland Empire [6]
2

 
376

 
 
Total Other
4

 
980

 
 
 Total Sales
24

 
6,273

 
[6] Aimco has now exited the Inland Empire.

29



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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended December 31, 2012
 
Year Ended December 31, 2012
 
 
Conventional
 
Affordable
 
Total
 
Conventional
 
Affordable
 
Total
Capital Additions
 
 
 
 
 
 
 
 
 
 
 
 
Capital Replacements
 
 
 
 
 
 
 
 
 
 
 
 
Buildings and grounds
 
$
10,758

 
$
1,778

 
$
12,536

 
$
38,827

 
$
6,240

 
$
45,067

Turnover capital additions
 
4,993

 
453

 
5,446

 
13,431

 
1,215

 
14,646

Capitalized site payroll and indirect costs
 
1,368

 
83

 
1,451

 
4,065

 
298

 
4,363

Total Capital Replacements
 
17,119

 
2,314

 
19,433

 
56,323

 
7,753

 
64,076

Capital Improvements
 
29,389

 
1,288

 
30,677

 
81,660

 
2,320

 
83,980

Redevelopment Additions
 
29,507

 

 
29,507

 
100,085

 

 
100,085

Casualty
 
1,389

 
4,949

 
6,338

 
4,955

 
6,947

 
11,902

Total Capital Additions [1]
 
$
77,404

 
$
8,551

 
$
85,955

 
$
243,023

 
$
17,020

 
$
260,043

 
 
 
 
 
 
 
 
 
 
 
 
 
Total units
 
55,737

 
11,342

 
67,079

 
55,737

 
11,342

 
67,079

Total Capital Replacements per unit
 
$
307

 
$
204

 
$
290

 
$
1,011

 
$
684

 
$
955


 
[1] For the quarter and year ended December 31, 2012, total capital additions includes $4.2 million and $16.6 million of interest costs, respectively.
 






















30



Supplemental Schedule 10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Redevelopment Activity
Year Ended December 31, 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 Operations
 
Pre-
Redevel-opment [2]
Projected Stabilized [3]
Change in Market Rents Since Start [4]
 
Occupancy [5]
Under Redevelopment
 
 
 
 
 
 
 
 
 
 
 
 
 
Elm Creek, Elmhurst, IL [6]
28

$
11.3

$
4.4

 2Q 2012
 1Q 2013
 3Q 2013
 4Q 2013
 
 n/a
$2,946
2.4
%
 
N/A
Flamingo South Beach, Miami, FL
1,127

4.1

3.5

 3Q 2011
 n/a - exterior only
 1Q 2013
 1Q 2013
 
$1,770
$1,800
4.7
%
 
96.6%
Lincoln Place, Venice, CA [7]
795

328.0

195.7

Multiple
Multiple
 4Q 2014
 1Q 2015
 
 n/a
$2,470
0.9
%
 
7.3%
Pacific Bay Vistas, San Bruno, CA [8]
308

106.5

79.1

 4Q 2011
 3Q 2013
 1Q 2014
 2Q 2014
 
 n/a
$2,200
11.5
%
 
Vacant
The Palazzo at Park La Brea, Los Angeles, CA [8]
521

15.7

5.8

 1Q 2012
 4Q 2012
 3Q 2014
 4Q 2014
 
$2,861
$3,171
7.0
%
 
94.8%
The Preserve at Marin, Corte Madera, CA
126

85.0

56.4

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

 
Vacant
Subtotal
2,905

550.6

344.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Completed Year-to-Date
 
 
 
 
 
 
 
 
 
 
 
 
 
Plantation Gardens, Plantation, FL
372

6.4

6.3

 3Q 2011
 3Q 2012
 4Q 2012
 1Q 2013
 
$892
$977
6.2
%
 
83.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
3,277

$
557.0

$
351.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Actual 2012 Investment
 
 
 
 
 
 
 
 
 
First 
Quarter
2012
Second 
Quarter
2012

Third
Quarter
2012
Fourth 
Quarter
2012
Year-to-Date
 
 
 
 
 
 
 
 
Under Redevelopment
13.7

21.8

28.0

28.3

91.8

 
 
 
 
 
 
 
 
Other Redevelopment [9]
0.2

1.6

1.3

0.4

3.5

 
 
 
 
 
 
 
 
Subtotal
$
13.9

$
23.4

$
29.3

$
28.7

$
95.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Completed Year-to-Date
1.7

1.2

1.1

0.8

4.8

 
 
 
 
 
 
 
 
Total
$
15.6

$
24.6

$
30.4

$
29.5

$
100.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[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] Stabilized rents do not include projected market rent growth.
[4] Represents change in submarket rents from the quarter in which stabilized rents were projected to third 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 December 31, 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. 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] 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.
[9] Amount represents capitalizable costs associated with projects in our redevelopment pipeline that are not listed above.


 
31



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.




32



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)
Quarter Ended December 31, 2012
 
Year Ended December 31, 2012
 
Capital Additions per Schedule 9
$
85,955

 
$
260,043

Capital additions related to:
 
 
 
Unconsolidated real estate partnerships
(140
)
 
(1,226
)
Consolidated sold and held for sale properties
249

 
12,142

Consolidated properties Aimco owns but does not manage
127

 
821

Consolidated properties that are not multi-family,
such as commercial properties or fitness facilities
147

 
323

Consolidated capital additions
$
86,338

 
$
272,103

 
 
 
 
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.


33




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 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.







34



 
 
Quarter Ended
December 31,
 
Year Ended
December 31,
 
 
2012
 
2011
 
2012
 
2011
(in thousands, except per share data) (unaudited)
 
 
 
 
 
 
 
 
Net income (loss) attributable to Aimco common stockholders
 
$
67,928

 
$
(23,411
)
 
$
82,146

 
$
(103,161
)
Adjustments:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
85,374

 
88,713

 
345,077

 
342,820

Depreciation and amortization related to non-real estate assets
 
(3,370
)
 
(3,130
)
 
(13,176
)
 
(12,739
)
Depreciation of rental property related to noncontrolling partners and unconsolidated entities
 
(4,335
)
 
(5,102
)
 
(18,402
)
 
(23,130
)
Gain on dispositions of unconsolidated real estate and other, net of noncontrolling partners' interest
 
(163
)
 
(1,120
)
 
(15,399
)
 
(2,509
)
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest
 
1,364

 
4,869

 
9,382

 
4,957

Discontinued operations:
 
 
 
 
 
 
 
 
Gain on dispositions of real estate, net of income taxes and noncontrolling partners' interest
 
(75,481
)
 
(17,815
)
 
(185,112
)
 
(60,382
)
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest
 
2,814

 
5,905

 
12,403

 
15,314

Depreciation of rental property, net of noncontrolling partners' interest
 
994

 
8,936

 
19,169

 
42,068

Common noncontrolling interests in Aimco Operating Partnership's share of above adjustments
 
(178
)
 
(5,444
)
 
(9,127
)
 
(20,868
)
Amounts allocable to participating securities
 
(25
)
 
(152
)
 
(503
)
 
(556
)
FFO Attributable to Aimco Common Stockholders - Diluted
 
$
74,922

 
$
52,249

 
$
226,458

 
$
181,814

Preferred equity redemption related amounts
 
43

 
(1,943
)
 
22,626

 
(3,904
)
Common noncontrolling interests in Aimco Operating Partnership's share of above adjustments
 
36

 
132

 
(1,341
)
 
266

Amounts allocable to participating securities
 

 
7

 
(87
)
 
16

Pro forma Funds From Operations Attributable to Aimco Common Stockholders - Diluted
 
$
75,001

 
$
50,445

 
$
247,656

 
$
178,192

Capital Replacements, net of common noncontrolling interests in Aimco Operating Partnership
 
(20,057
)
 
(26,231
)
 
(66,968
)
 
(74,342
)
Amounts allocable to participating securities
 
53

 
144

 
246

 
540

AFFO Attributable to Aimco Common Stockholders - Diluted
 
$
54,997

 
$
24,358

 
$
180,934

 
$
104,390

Weighted average shares - diluted
 
145,177

 
120,700

 
134,743

 
119,626

FFO per share (diluted)
 
$
0.52

 
$
0.43

 
$
1.68

 
$
1.52

Pro forma FFO per share (diluted)
 
$
0.52

 
$
0.42

 
$
1.84

 
$
1.49

AFFO per share (diluted)
 
$
0.38

 
$
0.20

 
$
1.34

 
$
0.87

 
 
 
 
 
 
 
 
 
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.


35



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)
Fourth Quarter 2012 Compared to Fourth Quarter 2011
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended December 31, 2012
 
Quarter Ended December 31, 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
 
$
185,158

 
$

 
$
(287
)
 
$
184,871

 
$
171,487

 
$

 
$
4,481

 
$
175,968

Affordable Same Store
 
25,294

 

 
60

 
25,354

 
24,687

 

 
90

 
24,777

Total Same Store
 
210,452

 

 
(227
)
 
210,225

 
196,174

 

 
4,571

 
200,745

Other Conventional
 
22,793

 

 

 
22,793

 
20,328

 
(1,196
)
 

 
19,132

Other Affordable
 
2,943

 
(2,943
)
 

 

 
3,559

 
(3,559
)
 

 

Total rental and other property revenues
 
236,188

 
(2,943
)
 
(227
)
 
233,018

 
220,061

 
(4,755
)
 
4,571

 
219,877

Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
62,071

 

 
768

 
62,839

 
57,370

 

 
3,119

 
60,489

Affordable Same Store
 
9,890

 

 
98

 
9,988

 
9,685

 

 
99

 
9,784

Total Same Store
 
71,961

 

 
866

 
72,827

 
67,055

 

 
3,218

 
70,273

Other Conventional
 
10,865

 

 

 
10,865

 
9,677

 
(802
)
 
(267
)
 
8,608

Other Affordable
 
1,283

 
(1,283
)
 

 

 
1,588

 
(1,588
)
 

 

Total property operating expenses
 
84,109

 
(1,283
)
 
866

 
83,692

 
78,320

 
(2,390
)
 
2,951

 
78,881

Property NOI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
123,087

 

 
(1,055
)
 
122,032

 
114,117

 

 
1,362

 
115,479

Affordable Same Store
 
15,404

 

 
(38
)
 
15,366

 
15,002

 

 
(9
)
 
14,993

Total Same Store
 
138,491

 

 
(1,093
)
 
137,398

 
129,119

 

 
1,353

 
130,472

Other Conventional
 
11,928

 

 

 
11,928

 
10,651

 
(394
)
 
267

 
10,524

Other Affordable
 
1,660

 
(1,660
)
 

 

 
1,971

 
(1,971
)
 

 

Net real estate operations
 
$
152,079

 
$
(1,660
)
 
$
(1,093
)
 
$
149,326

 
$
141,741

 
$
(2,365
)
 
$
1,620

 
$
140,996

 
 
% Aimco
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4Q 2012 NOI
 
Revenue
 
Expenses
 
NOI
 
 
 
 
 
 
 
 
Year-over-Year Change:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
82
%
 
5.1
%
 
3.9
%
 
5.7
%
 
 
 
 
 
 
 
 
Affordable Same Store
 
10
%
 
2.3
%
 
2.1
%
 
2.5
%
 
 
 
 
 
 
 
 
Total Same Store
 
92
%
 
4.7
%
 
3.6
%
 
5.3
%
 

 

 

 
 
Other Conventional
 
8
%
 
19.1
%
 
26.2
%
 
13.3
%
 
 
 
 
 
 
 
 
Net real estate operations
 
100
%
 
6.0
%
 
6.1
%
 
5.9
%
 
 
 
 
 
 
 
 








36



Reconciliation of GAAP to Supplemental Schedule 6(b) Proportionate Conventional Same Store NOI Amounts
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 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
 
$
191,925

 
$

 
$
(8,641
)
 
$
183,284

 
$
(93
)
 
$
183,191

Property operating expenses
 
67,889

 

 
(3,127
)
 
64,762

 
105

 
64,867

Property NOI
 
$
124,036

 
$

 
$
(5,514
)
 
$
118,522

 
$
(198
)
 
$
118,324


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)
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2012
 
Year Ended December 31, 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
 
$
724,350

 
$

 
$
2,146

 
$
726,496

 
$
674,488

 
$

 
$
19,349

 
$
693,837

Affordable Same Store
 
101,201

 

 
323

 
101,524

 
97,448

 

 
345

 
97,793

Total Same Store
 
825,551

 

 
2,469

 
828,020

 
771,936

 

 
19,694

 
791,630

Other Conventional
 
88,851

 
(3,606
)
 

 
85,245

 
80,850

 
(4,892
)
 
136

 
76,094

Other Affordable
 
12,217

 
(12,217
)
 

 

 
15,208

 
(15,208
)
 

 

Total rental and other property revenues
 
926,619

 
(15,823
)
 
2,469

 
913,265

 
867,994

 
(20,100
)
 
19,830

 
867,724

Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
251,202

 

 
2,246

 
253,448

 
239,748

 

 
9,823

 
249,571

Affordable Same Store
 
39,645

 

 
323

 
39,968

 
38,098

 

 
355

 
38,453

Total Same Store
 
290,847

 

 
2,569

 
293,416

 
277,846

 

 
10,178

 
288,024

Other Conventional
 
43,531

 
(2,264
)
 

 
41,267

 
39,138

 
(3,096
)
 
(964
)
 
35,078

Other Affordable
 
5,512

 
(5,512
)
 

 

 
7,577

 
(7,577
)
 

 

Total property operating expenses
 
339,890

 
(7,776
)
 
2,569

 
334,683

 
324,561

 
(10,673
)
 
9,214

 
323,102

Property NOI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
473,148

 

 
(100
)
 
473,048

 
434,740

 

 
9,526

 
444,266

Affordable Same Store
 
61,556

 

 

 
61,556

 
59,350

 

 
(10
)
 
59,340

Total Same Store
 
534,704

 

 
(100
)
 
534,604

 
494,090

 

 
9,516

 
503,606

Other Conventional
 
45,320

 
(1,342
)
 

 
43,978

 
41,712

 
(1,796
)
 
1,100

 
41,016

Other Affordable
 
6,705

 
(6,705
)
 

 

 
7,631

 
(7,631
)
 

 

Net real estate operations
 
$
586,729

 
$
(8,047
)
 
$
(100
)
 
$
578,582

 
$
543,433

 
$
(9,427
)
 
$
10,616

 
$
544,622

 
 
% Aimco
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2012 NOI
 
Revenue
 
Expenses
 
NOI
 
 
 
 
 
 
 
 
Year-over-Year Change:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
82
%
 
4.7
%
 
1.6
%
 
6.5
%
 
 
 
 
 
 
 
 
Affordable Same Store
 
10
%
 
3.8
%
 
3.9
%
 
3.7
%
 
 
 
 
 
 
 
 
Total Same Store
 
92
%
 
4.6
%
 
1.9
%
 
6.2
%
 
 
 
 
 
 
 
 
Other Conventional
 
8
%
 
12.0
%
 
17.6
%
 
7.2
%
 
 
 
 
 
 
 
 
Net real estate operations
 
100
%
 
25.1
%
 
3.6
%
 
6.2
%
 
 
 
 
 
 
 
 

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.

37