EX-99.1 2 d89344ex99-1.txt PRESS RELEASE 1 EXHIBIT 99.1 APARTMENT INVESTMENT AND MANAGEMENT COMPANY REPORTS A 29% INCREASE IN FFO, OR 12% ON A PER SHARE BASIS DENVER, COLORADO, July 26, 2001 Apartment Investment and Management Company (NYSE:AIV) ("Aimco") announced that its Funds From Operations ("FFO") for the second quarter of 2001 equaled $136 million or $1.32 per common share, compared to $105 million or $1.18 per common share for the second quarter of 2000, an increase of 29.5%, or 11.9% on a per share basis. Aimco announced that its Adjusted Funds From Operations ("AFFO"), Aimco's measure of economic profitability, for the second quarter of 2001 equaled $121 million or $1.17 per common share, compared to $96 million or $1.07 per common share for the second quarter of 2000, an increase of 26.0%, or 9.3% on a per share basis. In the second quarter, Aimco increased its quarterly capital replacement reserve from $75 to $95 per door. This change reduced AFFO by $3.2 million or $.03 per share. Total consolidated revenues for the second quarter 2001 were $324 million; an increase of 25.6% compared to total consolidated revenues of $258 million for the same period in 2000. Consolidated revenues have increased $300 million from $24 million in the second quarter of 1996 to $324 million in the second quarter of 2001, an increase of 1250%. Compounded annual growth in consolidated revenues for the last three and five years have been 53.8% and 68.3%, respectively. The Board of Directors declared on July 26, 2001 the regular quarterly cash dividend of $0.78 per common share for the quarter ended June 30, 2001, payable on August 10, 2001 to shareholders of record on August 3, 2001. The dividend represents a distribution of 59.1% of FFO and 66.7% of AFFO for the quarter ended June 30, 2001 and a 6.5% yield based on the closing price of Aimco's Class A Common Stock of $47.95 as of July 25, 2001. SAME STORE RESULTS Second quarter 2001, "same store" sales for the 655 "same store" apartment communities containing 179,282 units owned during both 2001 and 2000, adjusted for Aimco's ownership interest in these communities, showed a 4.1% increase in Net Operating Income, a 4.3% increase in revenues, and a 4.5% increase in operating expenses from the second quarter of 2000. Weighted average physical occupancy for the 655 apartment communities was 93.8% as of June 30, 2001, compared to 94.7% as of June 30, 2000. Average monthly rent per occupied unit was $685 at June 30, 2001 compared to $657 at June 30, 2000, an increase of 4.3%. ACQUISITION, SALE AND REFINANCING ACTIVITY In the quarter, Aimco completed $526 million in acquisitions, dispositions, and mortgage-financing transactions. Aimco acquired four property interests for aggregate consideration of $101 million and purchased $64 million of limited partnership interests. Aimco sold 12 apartment communities for a total of $63 million of which Aimco's share was $27.6 million. Second quarter refinancing activity included the closing of $298 million of new mortgages at an initial weighted-average interest rate of 6.12%. Aimco's share of the refinancing proceeds was $136 million. BALANCE SHEET In July, Aimco closed on the sale of $103 million of Class R Cumulative Perpetual Preferred Stock. The net proceeds of approximately $100 million were used to pay down short term borrowings. The outstanding balance on Aimco's line of credit on July 26th was $139 million with availability of $261 2 Apartment Investment and Management Company July 26, 2001 Page 2 million. Since its IPO in 1994, Aimco has maintained its policy of 2:1 coverage of free cash flow to interest expense and preferred dividends. LIQUIDITY In the second quarter, internal sources of cash flow, which include cash cushion (i.e., AFFO less common dividends and principal payments on debt) and net proceeds from mortgage refinancings and property sales, generated $143 million to Aimco. For the six months ended June 2001, these internal sources contributed $310 million. Aimco expects these internal sources to provide in excess of $550 million for all of 2001. Cash requirements from Aimco's redevelopment, enhancement and initial capital expenditures ("ICE') activities are anticipated to be $180 million for the balance of 2001 and an additional estimated $60 million through completion. HIGH PERFORMANCE UNITS Aimco's new HPU investment program was approved by shareholders at Aimco's annual meeting in June. More than 50 employee/managers are participating and have invested $4.9 million. The program is based on outperformance which at a minimum must be the higher of 11% annualized growth or 115% of the Morgan Stanley REIT Index. The starting point for the new HPU investment program is $48.36 per share. OUTLOOK The estimates presented are forward-looking and are based on current expectations. In the first quarter earnings release, management indicated that Aimco would meet or exceed $5.40 per share in FFO based, among other assumptions, on same store growth of 5% to 6%. In the second quarter, same store growth was 4.1% which, compared to the assumed growth of 5% to 6%, reduced quarterly FFO by $.02 to $.03 per share. Given the weak economy and uncertainty as to the pace of economic recovery, it is difficult for Aimco to project what "same store" results will be during the balance of the year. They could recover, decline, or stay the same. For Aimco planning purposes, it is assumed that the economy will continue to be difficult, but not materially worse than during the past 90 days. For Aimco, a 1% change in same store sales growth will result in a $.02 per share change in FFO per quarter. Aimco continues to assume $500 million in gross property acquisitions and/or partnership acquisitions and $133 million in completed redevelopments for 2001. EARNINGS CONFERENCE CALL The second quarter 2001 earnings conference call will be conducted on Friday, July 27, 2001 at 10:00 a.m. Eastern time. You may participate in the conference call by dialing 800-374-0616, or 706-645-9249 for international callers, approximately five minutes before the conference call is scheduled to begin and indicating that you wish to join the Apartment Investment and Management Company second quarter 2001 earnings conference call. SUPPLEMENTAL INFORMATION Please see the attached Supplemental Information as noted below: Consolidated Statement of Income Page Four Balance Sheet Presentation Page Five 3 Apartment Investment and Management Company July 26, 2001 Page 3 FFO and AFFO Page Six Free Cash Flow from Business Segments Page Seven - Nine Income Statement Presentation Page Ten Balance Sheet Information Page Eleven Same Store Sales Page Twelve Additional disclosures will be available on the Aimco website at www.aimco.com/about/financial/2Q2001.asp as noted below. Earnings Release with Supplemental Information Apartment Unit Summary Proforma Income Statement Net Asset Value FORWARD-LOOKING ASSUMPTIONS This earnings release contains forward-looking statements including statements regarding 2001 results which are subject to certain risks and uncertainties, including but not limited to; the Company's ability to maintain current occupancy and rent levels and increase in same store results. Actual results may differ materially from those described and could be affected by a variety of factors including economic conditions; changes in interest rates; governmental regulations; competition; financing risks; variations in real estate values; the failure of acquisitions to perform in accordance with expectations; possible environmental liabilities; and other risks described in our filings with the Securities and Exchange Commission. These forward-looking statements reflect management's judgment as of this date, and we assume no obligation to revise or update them to reflect future events or circumstances. ABOUT AIMCO Aimco is a real estate investment trust with headquarters in Denver, Colorado and 25 regional operating centers, which holds a geographically diversified portfolio of apartment communities. Aimco, through its subsidiaries, operates approximately 1,620 properties, including approximately 312,000 apartment units, and serves approximately one million residents. Aimco's properties are located in 46 states, the District of Columbia and Puerto Rico. Contact: Katie Murphree, Vice President Investor Relations (303) 691-4440 Paul McAuliffe, Executive Vice President and Chief Financial Officer (303) 691-4339 E-Mail: investor@aimco.com 4 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE FOUR CONSOLIDATED STATEMENTS OF INCOME [a] (IN THOUSANDS, EXCEPT PER SHARE AND UNIT DATA) (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, ----------------------------------- 2001 2000 -------------- -------------- RENTAL PROPERTY OPERATIONS: Rental and other property revenues $ 323,770 $ 258,064 Property operating expenses[b] (126,209) (104,653) Owned property management expense[c] (3,008) (4,136) -------------- -------------- Income from property operations 194,553 149,275 -------------- -------------- SERVICE COMPANY BUSINESS: Management fees and other income from affiliates[b][c] 46,978 12,410 Management and other expenses (30,441) (5,474) General and administrative expenses allocation (2,895) (2,474) Amortization of intangibles (4,332) (1,494) -------------- -------------- Income from service company business 9,310 2,968 -------------- -------------- General and administrative expenses: Before allocation (4,457) (4,414) Allocation to service company business 2,895 2,474 -------------- -------------- General and administrative expenses, net (1,562) (1,940) Depreciation on rental property (95,213) (85,289) Interest expense (82,116) (64,397) Interest and other income[d] 17,375 15,508 Equity in earnings (losses) of unconsolidated real estate partnerships[e] (4,731) 1,441 Equity in earnings of unconsolidated subsidiaries[f] -- 1,700 Minority interest in real estate partnerships (5,256) (6,332) -------------- -------------- INCOME BEFORE GAIN FROM DISPOSITIONS OF PROPERTIES AND MINORITY INTEREST IN OPERATING PARTNERSHIP 32,360 12,934 Gain on disposition of properties, net 1,490 226 -------------- -------------- INCOME BEFORE MINORITY INTEREST IN OPERATING PARTNERSHIP 33,850 13,160 Minority interest in Operating Partnership (3,415) (1,338) -------------- -------------- NET INCOME $ 30,435 $ 11,822 ============== ============== Net income attributable to preferred stockholders $ 22,408 $ 14,600 ============== ============== Net income (loss) attributable to common stockholders $ 8,027 $ (2,778) ============== ============== Weighted average number of common shares outstanding 72,716 66,261 ============== ============== Weighted average number of common shares and common share equivalents outstanding 74,354 66,261 ============== ============== Basic earnings (loss) per common share $ 0.11 $ (0.04) ============== ============== Diluted earnings (loss) per common share $ 0.11 $ (0.04) ============== ============== FOR THE SIX MONTHS ENDED JUNE 30, --------------------------------- 2001 2000 -------------- -------------- RENTAL PROPERTY OPERATIONS: Rental and other property revenues $ 646,004 $ 482,384 Property operating expenses[b] (251,895) (195,404) Owned property management expense[c] (6,218) (6,241) -------------- -------------- Income from property operations 387,891 280,739 -------------- -------------- SERVICE COMPANY BUSINESS: Management fees and other income from affiliates[b][c] 97,998 22,435 Management and other expenses (62,490) (9,378) General and administrative expenses allocation (4,176) (3,527) Amortization of intangibles (9,233) (3,069) -------------- -------------- Income from service company business 22,099 6,461 -------------- -------------- General and administrative expenses: Before allocation (8,549) (8,677) Allocation to service company business 4,176 3,527 -------------- -------------- General and administrative expenses, net (4,373) (5,150) Depreciation on rental property (200,604) (146,580) Interest expense (169,332) (122,604) Interest and other income[d] 32,038 28,511 Equity in earnings (losses) of unconsolidated real estate partnerships[e] (9,207) 3,886 Equity in earnings of unconsolidated subsidiaries[f] -- 4,472 Minority interest in real estate partnerships (10,881) (13,452) -------------- -------------- INCOME BEFORE GAIN FROM DISPOSITIONS OF PROPERTIES AND MINORITY INTEREST IN OPERATING PARTNERSHIP 47,631 36,283 Gain on disposition of properties, net 1,556 5,331 -------------- -------------- INCOME BEFORE MINORITY INTEREST IN OPERATING PARTNERSHIP 49,187 41,614 Minority interest in Operating Partnership (4,734) (3,910) -------------- -------------- NET INCOME $ 44,453 $ 37,704 ============== ============== Net income attributable to preferred stockholders $ 41,103 $ 29,115 ============== ============== Net income (loss) attributable to common stockholders $ 3,350 $ 8,589 ============== ============== Weighted average number of common shares outstanding 71,667 66,167 ============== ============== Weighted average number of common shares and common share equivalents outstanding 73,243 67,163 ============== ============== Basic earnings (loss) per common share $ 0.05 $ 0.13 ============== ============== Diluted earnings (loss) per common share $ 0.05 $ 0.13 ============== ==============
[a] See page 7 for Aimco's free cash flow from business segments from consolidated and unconsolidated entities [b] In accordance with consolidation accounting principles, $3.5 million and $7.5 million of reimbursement fee income for the three and six months ended June 30, 2001, respectively, were eliminated from the service company business and the associated expense was accordingly eliminated from rental property operations [c] In accordance with consolidation accounting principles, $7.6 million and $14.8 million of management fee income for the three and six months ended June 30, 2001, respectively, were eliminated from the service company business and the associated expense was accordingly eliminated from rental property operations [d] In second quarter of 2001, interest and other income included $6.4 million of transactional income [e] In second quarter of 2001, represents Aimco's share of earnings from 99,594 apartment units in which Aimco holds an equity interest [f] Represents Aimco's share of earnings from unconsolidated service company business for the three and six months ended June 30, 2000 (as of January 1, 2001 this business is now consolidated) 5 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE FIVE BALANCE SHEET PRESENTATION (IN THOUSANDS) (UNAUDITED)
CONSOLIDATED PROPORTIONATE GAAP PROPORTIONATE SHARE OF BALANCE SHEET CONSOLIDATED UNCONSOLIDATED AS OF BALANCE SHEET[a] PARTNERSHIPS[b] JUNE 30, 2001 ---------------- ---------------- --------------- ASSETS Real estate $ 7,712,556 $ 931,591 $ 6,780,965 Land 1,229,932 212,019 1,017,913 Accumulated depreciation (1,447,717) (117,507) (1,330,210) Cash and cash equivalents 135,393 -- 135,393 Restricted cash 139,917 -- 139,917 Accounts receivable 135,145 -- 135,145 Deferred financing costs 78,100 -- 78,100 Goodwill 109,313 -- 109,313 Notes receivable from unconsolidated real estate partnerships 245,908 -- 245,908 Notes receivable from unconsolidated subsidiaries -- -- -- Investment in unconsolidated real estate partnerships 282,869 (364,079) 646,948 Investment in unconsolidated subsidiaries -- -- -- Other assets 122,288 -- 122,288 -------------- -------------- -------------- TOTAL ASSETS $ 8,743,704 $ 662,024 $ 8,081,680 ============== ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Secured tax-exempt bond financing - long term $ 884,682 $ 114,424 770,258 Secured notes payable - long term 4,133,779 547,600 3,586,179 Term loan[e] -- -- -- Credit facility 233,000 -- 233,000 -------------- -------------- -------------- TOTAL INDEBTEDNESS 5,251,461 662,024 4,589,437 Accounts payable 13,627 -- 13,627 Accrued liabilities and other 256,906 -- 256,906 Deferred rental income 11,901 -- 11,901 Security deposits 32,258 -- 32,258 Deferred taxes 33,897 -- 33,897 -------------- -------------- -------------- TOTAL LIABILITIES 5,600,050 662,024 4,938,026 -------------- -------------- -------------- Minority interest in other partnerships 98,016 -- 98,016 Mandatorily redeemable convertible preferred securities 25,347 -- 25,347 Minority interest in Operating Partnership 340,402 -- 340,402 STOCKHOLDERS' EQUITY Class A Common Stock 740 -- 740 Additional paid - in capital 2,194,833 -- 2,194,833 Perpetual preferred stock 379,020 -- 379,020 Convertible preferred stock 621,947 -- 621,947 Distributions in excess of earnings (471,787) -- (471,787) Notes due on common stock purchases (44,864) -- (44,864) -------------- -------------- -------------- 2,679,889 -- 2,679,889 -------------- -------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,743,704 $ 662,024 $ 8,081,680 ============== ============== ============== CONSOLIDATED EFFECT OF COMPARATIVE GAAP PREFERRED STOCK BALANCE SHEET BALANCE SHEET SUBSIDIARIES AS OF AS OF CONSOLIDATION[c] JUNE 30, 2001[d] DECEMBER 31, 2000 ---------------- ---------------- ----------------- ASSETS Real estate $ (22,631) $ 6,758,334 $ 6,036,031 Land -- 1,017,913 976,421 Accumulated depreciation 1,395 (1,328,815) (913,263) Cash and cash equivalents (12,312) 123,081 157,115 Restricted cash (919) 138,998 126,914 Accounts receivable (96,133) 39,012 2,873 Deferred financing costs -- 78,100 44,403 Goodwill (12,313) 97,000 100,532 Notes receivable from unconsolidated real estate partnerships (121,281) 124,627 140,860 Notes receivable from unconsolidated subsidiaries 223,198 223,198 190,453 Investment in unconsolidated real estate partnerships (80,551) 566,397 676,188 Investment in unconsolidated subsidiaries 149,439 149,439 107,781 Other assets (104,283) 18,005 53,566 -------------- -------------- -------------- TOTAL ASSETS $ (76,391) $ 8,005,289 $ 7,699,874 ============== ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Secured tax-exempt bond financing - long term $ -- $ 770,258 $ 773,033 Secured notes payable - long term (18,622) 3,567,557 3,258,342 Term loan[e] -- -- 74,040 Credit facility -- 233,000 254,700 -------------- -------------- -------------- TOTAL INDEBTEDNESS (18,622) 4,570,815 4,360,115 Accounts payable (192) 13,435 88,818 Accrued liabilities and other (20,696) 236,210 211,324 Deferred rental income (5,982) 5,919 5,611 Security deposits (415) 31,843 28,332 Deferred taxes (33,897) -- -- -------------- -------------- -------------- TOTAL LIABILITIES (79,804) 4,858,222 4,694,200 -------------- -------------- -------------- Minority interest in other partnerships 6,123 104,139 139,731 Mandatorily redeemable convertible preferred securities -- 25,347 32,330 Minority interest in Operating Partnership 54 340,456 331,956 STOCKHOLDERS' EQUITY Class A Common Stock -- 740 713 Additional paid - in capital -- 2,194,833 2,072,208 Perpetual preferred stock -- 379,020 315,770 Convertible preferred stock -- 621,947 521,947 Distributions in excess of earnings (2,764) (474,551) (364,679) Notes due on common stock purchases -- (44,864) (44,302) -------------- -------------- -------------- (2,764) 2,677,125 2,501,657 -------------- -------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ (76,391) $ 8,005,289 $ 7,699,874 ============== ============== ==============
[a] Aimco's proportionate consolidated balance sheet, which includes the GAAP balance sheet as of June 30, 2001, plus the proportionate share of selected historical unconsolidated balance sheet data to include only real estate, land, accumulated depreciation and secured debt, as of June 30, 2001 [b] Total of Aimco's proportionate share of selected historical unconsolidated balance sheet data to include only real estate, land, accumulated depreciation and secured debt, as of June 30, 2001 [c] The balance sheet of the preferred stock subsidiaries, net of eliminations, as of June 30, 2001 [d] Aimco's consolidated balance sheet, not including the balance sheet of the preferred stock subsidiaries, as of June 30, 2001 (for comparative purposes to December 31, 2000) [e] The term debt at December 31, 2000 was $137.0 million, of which $63.0 million was recorded on the books of the preferred stock subsidiaries 6 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE SIX FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, ------------------------------------ 2001 2000 -------------- -------------- OPERATING ACTIVITIES: Income before minority interest in Operating Partnership $ 33,850 $ 13,160 Gain on disposition of properties (1,490) (226) Real estate depreciation, net of minority interests 92,945 76,756 Real estate depreciation related to unconsolidated entities 13,861 15,601 Amortization of intangibles 4,332 2,004 Deferred taxes -- 2,109 Preferred stock dividends and distributions (8,126) (6,530) Interest expense on mandatorily redeemable convertible preferred securities 489 2,429 -------------- -------------- FUNDS FROM OPERATIONS $ 135,861 $ 105,303 Recurring capital replacements (14,859) (9,658) -------------- -------------- ADJUSTED FUNDS FROM OPERATIONS $ 121,002 $ 95,645 ============== ============== Weighted average common shares, common share equivalents and Operating Partnership units outstanding: Common share and common share equivalents 91,132 81,837 Operating Partnership and special units 12,156 7,588 -------------- -------------- 103,288 89,425 ============== ============== PER COMMON SHARE: Funds From Operations $ 1.32 $ 1.18 Adjusted Funds From Operations $ 1.17 $ 1.07 Dividends Declared $ 0.780 $ 0.700 FOR THE SIX MONTHS ENDED JUNE 30, ------------------------------------- 2001 2000 -------------- -------------- OPERATING ACTIVITIES: Income before minority interest in Operating Partnership $ 49,187 $ 41,614 Gain on disposition of properties (1,556) (5,331) Real estate depreciation, net of minority interests 190,756 133,725 Real estate depreciation related to unconsolidated entities 28,867 34,563 Amortization of intangibles 9,233 4,087 Deferred taxes -- 2,961 Preferred stock dividends and distributions (14,861) (13,052) Interest expense on mandatorily redeemable convertible preferred securities 1,014 4,858 -------------- -------------- FUNDS FROM OPERATIONS $ 262,640 $ 203,425 Recurring capital replacements (26,262) (19,557) -------------- -------------- ADJUSTED FUNDS FROM OPERATIONS $ 236,378 $ 183,868 ============== ============== Weighted average common shares, common share equivalents and Operating Partnership units outstanding: Common share and common share equivalents 89,289 80,679 Operating Partnership and special units 11,643 7,608 -------------- -------------- 100,932 88,287 ============== ============== PER COMMON SHARE: Funds From Operations $ 2.60 $ 2.30 Adjusted Funds From Operations $ 2.34 $ 2.08 Dividends Declared $ 1.560 $ 1.400
PERCENTAGE OTHER DATA: JUNE 30, 2001 JUNE 30, 2000 INCREASE (DECREASE) ----------- ------------- ------------- ------------------- Same store: Weighted average physical occupancy 93.8% 94.7% (0.9)% Average monthly rent per occupied unit $ 685 $ 657 4.3% Total portfolio: Weighted average physical occupancy 93.1% 92.5% 0.6% Average monthly rent per occupied unit $ 685 $ 658 4.1%
7 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE SEVEN FREE CASH FLOW FROM BUSINESS SEGMENTS FOR THE THREE MONTHS ENDED JUNE 30, 2001 (IN THOUSANDS, EXCEPT PER SHARE AND UNIT DATA) (UNAUDITED)
CONSOLIDATED UNCONSOLIDATED TOTAL % ------------ -------------- --------- ------- REAL ESTATE Conventional Average monthly rent greater than $1000 per unit (7,567 equivalent units) $ 19,030 $ 1,996 $ 21,026 10.0% Average monthly rent $900 to $1000 per unit (8,772 equivalent units) 18,682 467 19,149 9.1% Average monthly rent $800 to $900 per unit (12,940 equivalent units) 24,246 1,684 25,930 12.3% Average monthly rent $700 to $800 per unit (16,858 equivalent units) 22,796 2,035 24,831 11.8% Average monthly rent $600 to $700 per unit (37,174 equivalent units) 44,494 3,375 47,869 22.7% Average monthly rent $500 to $600 per unit (38,363 equivalent units) 32,717 3,076 35,793 17.0% Average monthly rent less than $500 per unit (16,049 equivalent units) 9,162 764 9,926 4.7% ------------ ------------ --------- ------- Subtotal conventional real estate contribution to Free Cash Flow 171,127 13,397 184,524 87.6% Affordable (14,197 equivalent units) 3,503 6,146 9,649 4.6% College housing (average rent of $539 per month) (3,301 equivalent units) 2,735 86 2,821 1.3% Other real estate 4,494 148 4,642 2.2% Minority interest (20,140) (20,140) (9.6)% ------------ ------------ --------- ------- Total real estate contribution to free cash flow 161,719 19,777 181,496 86.1% SERVICE BUSINESS Management contracts (property and asset management) Controlled properties 5,403 -- 5,403 2.6% Third party with terms in excess of one year 410 -- 410 40.2% Third party cancelable in 30 days 585 -- 585 50.3% ------------ ------------ --------- ------- Service business contribution to free cash flow before fees 6,398 -- 6,398 3.1% Activity based fees 7,244 -- 7,244 3.4% ------------ ------------ --------- ------- Total service business contribution to free cash flow 13,642 -- 13,642 6.5% INTEREST INCOME General partner loan interest 7,954 -- 7,954 3.8% Transactional income 6,423 -- 6,423 3.0% Money market and interest bearing accounts 2,998 -- 2,998 1.4% ------------ ------------ --------- ------- Total interest income contribution to free cash flow 17,375 -- 17,375 8.2% General and Administrative Expense (1,562) -- (1,562) (0.8)% ------------ ------------ --------- ------- FREE CASH FLOW 191,174 19,777 210,951 100.0%
8 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE EIGHT FREE CASH FLOW FROM BUSINESS SEGMENTS FOR THE THREE MONTHS ENDED JUNE 30, 2001 (IN THOUSANDS, EXCEPT PER SHARE AND UNIT DATA) (UNAUDITED)
BASIC DILUTED ----------------------------------------- ---------- CONSOLIDATED UNCONSOLIDATED TOTAL TOTAL ------------ -------------- ---------- ---------- FREE CASH FLOW 191,174 19,777 210,951 210,951 COST OF SENIOR CAPITAL Interest expense: Secured debt Long-term, fixed rate (74,636) (10,329) (84,965) (84,965) Long-term, variable rate (539) (2,447) (2,986) (2,986) Short-term (3,426) (35) (3,461) (3,461) Lines of credit and other unsecured debt (5,011) (1) (5,012) (5,012) Interest expense on convertible preferred securities (489) -- (489) -- Interest capitalized 1,985 -- 1,985 1,985 ---------- ---------- ---------- ---------- Total interest expense before minority interest (82,116) (12,812) (94,928) (94,439) Minority interest share of interest expense 13,296 -- 13,296 13,296 ---------- ---------- ---------- ---------- Total interest expense after minority interest (68,820) (12,812) (81,632) (81,143) Distributions on preferred securities owned by minority interest (679) -- (679) -- Distributions on preferred OP units (2,190) -- (2,190) -- Distributions on preferred stock (22,408) -- (22,408) (8,805) ---------- ---------- ---------- ---------- Total distributions on preferred OP units and securities (25,277) -- (25,277) (8,805) Non-structural depreciation, net of capital replacements (1,259) (89) (1,348) (1,348) Amortization of intangibles (4,332) -- (4,332) (4,332) Gain on disposition of properties 1,490 -- 1,490 1,490 ---------- ---------- ---------- ---------- EARNINGS BEFORE STRUCTURAL DEPRECIATION 92,976 6,876 99,852 116,813 Structural depreciation, net of minority interest in other entities (78,993) (11,607) (90,600) (90,600) Interest expense on convertible preferred securities -- -- -- (489) Dividends on preferred securities -- -- -- (16,472) ---------- ---------- ---------- ---------- NET INCOME (LOSS) ATTRIBUTABLE TO OP UNIT AND STOCKHOLDERS 13,983 (4,731) 9,252 9,252 Gain on disposition of properties (1,490) -- (1,490) (1,490) Structural depreciation, net of minority interest in other entities 78,993 11,607 90,600 90,600 Non-structural depreciation, net of minority interest in other entities 13,952 2,254 16,206 16,206 Amortization of intangibles 4,332 -- 4,332 4,332 Interest expense on convertible preferred securities -- -- -- 489 Dividends on preferred securities -- -- -- 16,472 ---------- ---------- ---------- ---------- FUNDS FROM OPERATIONS 109,770 9,130 118,900 135,861 Capital replacement reserve (12,694) (2,165) (14,859) (14,859) ---------- ---------- ---------- ---------- ADJUSTED FUNDS FROM OPERATIONS $ 97,076 $ 6,965 $ 104,041 $ 121,002 ========== ========== ========== ==========
------------------------------------------------ EARNINGS EARNINGS SHARES PER SHARE -------------- -------------- -------------- EBSD Basic $ 99,852 84,872 Diluted 116,813 103,288 Net Income Basic 9,252 84,872 $ 0.11 Diluted 9,252 86,351 $ 0.11 FFO Basic 118,900 84,872 Diluted 135,861 103,288 AFFO Basic 104,041 84,872 Diluted 121,002 103,288
9 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE NINE Free Cash Flow, Earnings Before Structural Depreciation, Funds From Operations, and Adjusted Funds From Operations are measurement standards used by the Company's management. These should not be considered alternatives to net income or cash flow from operating activities as determined in accordance with GAAP as an indication of the Company's performance or as a measure of liquidity. - "Free Cash Flow" ("FCF") is defined by the Company as net operating income minus the capital spending required to maintain the related assets. It measures profitability prior to the cost of capital. - "Earnings Before Structural Depreciation" ("EBSD") is defined by the Company as Net Income, determined in accordance with GAAP, plus "Structural Depreciation," i.e. depreciation of buildings and land improvements whose useful lives exceed 20 years. - "Funds From Operations" ("FFO") is defined by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") as net income (loss), computed in accordance with GAAP, excluding gains and losses from debt restructuring and sales of property, plus real estate related depreciation and amortization (excluding amortization of financing costs), and after adjustment for unconsolidated partnerships and joint ventures. The Company calculates FFO (diluted) based on the NAREIT definition, as further adjusted for minority interest in the Aimco Operating Partnership, amortization of intangibles, interest expense on mandatorily redeemable convertible preferred securities, the non-cash deferred portion of the income tax provision and less the payment of dividends on perpetual and non-dilutive convertible preferred stock. There can be no assurance that the Company's basis for computing FFO is comparable with that of other real estate investment trusts. - "Adjusted Funds From Operations" ("AFFO") is defined by the Company as FFO less a charge for capital replacements equal to at least $380 per apartment unit. RECONCILIATION OF FCF, EBSD, FFO AND AFFO TO NET INCOME:
FOR THE THREE MONTHS ENDED JUNE 30, 2001 ------------------------------------------------------------ FCF EBSD FFO AFFO ------------ ------------ ------------ ------------ Amount per Free Cash Flow Schedule $ 210,951 $ 99,852 $ 118,900 $ 104,041 Total interest expense after minority interest (81,632) -- -- -- Dividends on preferred securities owned by minority interest (680) -- -- -- Dividends on preferred OP Units -- 2,190 2,190 2,190 Dividends on preferred stock -- 22,408 22,408 22,408 Structural depreciation, net of minority interest (90,600) (90,600) (90,600) (90,600) Non-structural depreciation, net of minority interest (16,206) -- (16,206) (16,206) Capital replacements 14,859 -- -- 14,859 Amortization of intangibles (4,332) -- (4,332) (4,332) Gain on disposition of properties 1,490 -- 1,490 1,490 Minority interest in Operating Partnership (3,415) (3,415) (3,415) (3,415) ------------ ------------ ------------ ------------ Net Income $ 30,435 $ 30,435 $ 30,435 $ 30,435 ============ ============ ============ ============
10 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE TEN INCOME STATEMENT PRESENTATION FOR THE THREE MONTHS ENDED JUNE 30, 2001 (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
PROPORTIONATE AIMCO SHARE OF PROPORTIONATE GAAP INCOME UNCONSOLIDATED CONSOLIDATED STATEMENT[a] PARTNERSHIPS[b] INCOME STATEMENT[c] --------------- --------------- ------------------- RENTAL PROPERTY OPERATIONS: Rental and other property revenues $ 323,770 $ 47,840 $ 371,610 Property operating expenses (126,209) (23,346) (149,555) Owned property management expense (3,008) (2,552) (5,560) Minority interest -- -- -- --------------- -------------- --------------- INCOME FROM PROPERTY OPERATIONS 194,553 21,942 216,495 SERVICE COMPANY BUSINESS: Management fees and other income from affiliates 46,978 -- 46,978 Management and other expenses (30,441) -- (30,441) General and administrative expenses allocation (2,895) -- (2,895) Amortization of intangibles (4,332) -- (4,332) --------------- -------------- --------------- INCOME FROM SERVICE COMPANY BUSINESS 9,310 -- 9,310 General and administrative expenses: Before allocation (4,457) -- (4,457) Allocation to consolidated service company business 2,895 -- 2,895 --------------- -------------- --------------- General and administrative expenses, net (1,562) -- (1,562) Depreciation on rental property (95,213) (13,861) (109,074) Interest expense (82,116) (12,812) (94,928) Interest and other income 17,375 -- 17,375 Equity in earnings (losses) of unconsolidated real estate partnerships (4,731) 4,731 -- Minority interest in real estate partnerships (5,256) -- (5,256) Amortization of intangibles -- -- -- --------------- -------------- --------------- Income before gain from disposition of properties and minority interest in Operating Partnership 32,360 -- 32,360 Gain on disposition of properties 1,490 -- 1,490 --------------- -------------- --------------- Income before minority interest in Operating Partnership 33,850 -- 33,850 Minority interest in Operating Partnership, preferred (2,190) -- (2,190) Minority interest in Operating Partnership, common (1,225) -- (1,225) --------------- -------------- --------------- Net income $ 30,435 $ -- $ 30,435 Net income attributable to preferred stockholders $ 22,408 $ 22,408 =============== =============== Net income attributable to common stockholders $ 8,027 $ 8,027 =============== =============== Basic earnings per common share $ 0.11 $ 0.11 =============== =============== Diluted earnings per common share $ 0.11 $ 0.11 =============== =============== Weighted average number of common shares outstanding 72,716 Weighted average number of common shares and common share equivalents outstanding 74,354 Dividends paid per common share $ 0.78 RECONCILIATION TO FREE CASH FLOW FROM BUSINESS SEGMENTS[d] ---------------------------------------------------------- AMORTIZATION OF MINORITY CAPITAL FREE CASH INTANGIBLES INTEREST REPLACEMENTS FLOW --------------- -------- ------------ ----------- RENTAL PROPERTY OPERATIONS: Rental and other property revenues $ -- $ -- $ -- $ 371,610 Property operating expenses -- -- (14,859) (164,414) Owned property management expense -- -- -- (5,560) Minority interest -- (20,140) -- (20,140) --------------- -------- ------------ ----------- INCOME FROM PROPERTY OPERATIONS -- (20,140) (14,859) 181,496 SERVICE COMPANY BUSINESS: Management fees and other income from affiliates -- -- -- 46,978 Management and other expenses -- -- -- (30,441) General and administrative expenses allocation -- -- -- (2,895) Amortization of intangibles 4,332 -- -- -- --------------- -------- ------------ ----------- INCOME FROM SERVICE COMPANY BUSINESS 4,332 -- -- 13,642 General and administrative expenses: Before allocation -- -- -- (4,457) Allocation to consolidated service company business -- -- -- 2,895 --------------- -------- ------------ ----------- General and administrative expenses, net -- -- -- (1,562) Depreciation on rental property -- 2,267 14,859 (91,948) Interest expense -- 13,296 -- (81,632) Interest and other income -- -- -- 17,375 Equity in earnings (losses) of unconsolidated real estate partnerships -- -- -- -- Minority interest in real estate partnerships -- 4,577 -- (679) Amortization of intangibles (4,332) -- -- (4,332) --------------- -------- ------------ ----------- Income before gain from disposition of properties and minority interest in Operating Partnership -- -- -- 32,360 Gain on disposition of properties -- -- -- 1,490 --------------- -------- ------------ ----------- Income before minority interest in Operating Partnership -- -- -- 33,850 Minority interest in Operating Partnership, preferred -- -- -- (2,190) Minority interest in Operating Partnership, common -- -- -- (1,225) --------------- -------- ------------ ----------- Net income $ -- $ -- $ -- $ 30,435 Net income attributable to preferred stockholders $ 22,408 =========== Net income attributable to common stockholders 1,225 $ 9,252 =========== Basic earnings per common share $ 0.11 =========== Diluted earnings per common share $ 0.11 =========== Weighted average number of common shares outstanding Weighted average number of common shares and common share equivalents outstanding Dividends paid per common share
[a] Aimco's consolidated statement of income on a GAAP basis [b] Aimco's proportionate share of unconsolidated real estate partnerships [c] Total of Aimco's proportionate share of unconsolidated real estate partnerships and consolidated operations [d] Reconciliation of the proportionate consolidated income statement to the Free Cash Flow From Business Segments on page 7 11 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE ELEVEN BALANCE SHEET INFORMATION (IN THOUSANDS) (UNAUDITED)
PROPERTY DEBT: Consolidated vs. Unconsolidated: Weighted Average Amount Rate ------------ ---------------- Consolidated Fixed $ 4,200,935 7.42% Variable 155,502 5.51% ------------ ------------ Sub-Total Consolidated 4,356,437 Minority Interest (533,423) ------------ ------------ Sub-Total Consolidated less Minority Interest $ 3,823,014 7.35% Unconsolidated Fixed 516,580 7.12% Variable 145,444 5.77% ------------ ------------ Sub-Total Unconsolidated 662,024 ------------ ------------ Grand Total $ 4,485,038 7.33% ============ ============
ACQUISITIONS FOR THE QUARTER ENDED JUNE 30, 2001: Real Estate Apartment Property Interests Acquired $ 100,852 Limited Partner Equity Interests $ 64,400 COMMON SHARES OUTSTANDING AS OF JUNE 30, 2001: Common stock 74,017 OP and special units 12,189 ------------ 86,206 ============
PREFERRED STOCK:
Amount Coupon ------------ ------------- PERPETUAL: Class C $ 60,000 9.00% Class D 105,000 8.75% Class G 101,250 9.38% Class H 50,000 9.50% Class Q 63,250 10.10% ------------ Total $ 379,500 ============ CONVERTIBLE: Class B $ 41,947 10.25% Class K 125,000 8.00% Class L 125,000 8.10% Class M 30,000 8.50% Class N 100,000 9.00% Class O 100,000 9.00% Class P 100,000 9.00% ------------ 621,947 Class B Partnership Preferred OP Units 35,000 7.75% Preferred OP Units 124,835 8.83% TOPRs 25,347 6.50% ------------ Total $ 807,128 ============
12 APARTMENT INVESTMENT AND MANAGEMENT COMPANY SUPPLEMENTAL REPORTING SECOND QUARTER 2001 PAGE TWELVE SAME STORE SALES - JUNE QTD 2001 TOP 40 MARKETS (OWNERSHIP EFFECTED) (IN THOUSANDS, EXCEPT PROPERTY AND PER UNIT DATA)
JUNE 2001 - QTD JUNE 2000 - QTD ------------------------------ ------------------------------ M S A SITES UNITS OWN REV EXP NOI REV EXP NOI ----- ----- -------- -------- -------- -------- -------- -------- -------- -------- Washington 23 11,315 71.8% 23,189 6,984 16,205 20,622 6,468 14,154 Chicago 20 5,979 86.8% 15,924 5,810 10,114 15,104 5,328 9,776 Houston 38 10,262 83.0% 14,732 6,500 8,232 13,913 6,180 7,733 ----- -------- -------- -------- -------- -------- -------- -------- -------- Phoenix-Mesa 32 8,089 90.4% 13,185 4,999 8,186 12,838 4,563 8,275 Atlanta 25 6,516 73.6% 10,429 3,580 6,849 10,150 3,487 6,663 Indianapolis 31 9,412 70.0% 11,190 4,797 6,393 10,736 4,515 6,221 ----- -------- -------- -------- -------- -------- -------- -------- -------- Philadelphia 6 3,436 76.6% 8,299 3,157 5,142 7,773 3,019 4,754 Tampa-St. Petersburg-Clearwater 22 5,933 76.3% 8,051 3,380 4,671 7,847 3,461 4,386 Miami 9 3,235 82.2% 7,334 2,749 4,585 6,829 2,716 4,113 ----- -------- -------- -------- -------- -------- -------- -------- -------- Orlando 18 5,164 75.8% 7,528 3,066 4,462 7,433 2,824 4,609 Dallas 23 6,350 61.5% 7,457 3,120 4,337 7,168 2,854 4,314 Norfolk-Virginia Beach-Newport News 13 3,548 82.8% 5,919 2,154 3,765 5,578 2,020 3,558 ----- -------- -------- -------- -------- -------- -------- -------- -------- Denver 10 2,605 70.0% 4,651 1,271 3,380 4,304 1,187 3,117 Raleigh-Durham-Chapel Hill 11 3,024 72.4% 4,356 1,488 2,868 4,092 1,442 2,650 Grand Rapids-Muskegon-Holland 4 2,753 100.0% 4,864 2,146 2,718 4,468 1,919 2,549 ----- -------- -------- -------- -------- -------- -------- -------- -------- San Diego 6 1,737 83.7% 3,814 1,124 2,690 3,439 1,154 2,285 Nashville 11 3,752 66.5% 4,505 1,833 2,672 4,668 1,881 2,787 San Antonio 16 3,602 98.0% 5,058 2,411 2,647 5,188 2,375 2,813 ----- -------- -------- -------- -------- -------- -------- -------- -------- Fort Wayne 3 2,459 95.4% 3,970 1,617 2,353 4,169 1,738 2,431 Middlesex-Somerset-Hunterdon 5 1,960 64.0% 3,581 1,258 2,323 3,301 1,082 2,219 Cincinnati 11 2,671 66.7% 3,473 1,411 2,062 3,617 1,338 2,279 ----- -------- -------- -------- -------- -------- -------- -------- -------- Fort Lauderdale 6 1,658 86.7% 3,438 1,393 2,045 3,199 1,299 1,900 West Palm Beach-Boca Raton 6 1,727 85.4% 3,368 1,328 2,040 3,290 1,350 1,940 Austin-San Marcos 10 2,308 67.6% 3,258 1,229 2,029 3,187 1,197 1,990 ----- -------- -------- -------- -------- -------- -------- -------- -------- Salt Lake City-Ogden 6 2,116 74.2% 2,859 901 1,958 2,815 845 1,970 Tucson 6 1,866 100.0% 2,915 1,157 1,758 2,854 973 1,881 Lansing-East Lansing 9 2,118 64.1% 2,669 968 1,701 2,699 1,040 1,659 ----- -------- -------- -------- -------- -------- -------- -------- -------- Jacksonville 6 1,815 81.5% 2,797 1,115 1,682 2,627 1,102 1,525 Baltimore 5 1,229 72.5% 2,300 702 1,598 2,162 663 1,499 Charlotte-Gastonia-Rock Hill 11 2,336 69.1% 2,640 1,058 1,582 2,720 1,100 1,620 ----- -------- -------- -------- -------- -------- -------- -------- -------- Orange County 2 824 90.2% 1,981 572 1,409 1,870 586 1,284 Montgomery 9 2,338 65.2% 2,001 672 1,329 2,061 655 1,406 Columbus 9 2,080 60.0% 2,031 806 1,225 2,138 872 1,266 ----- -------- -------- -------- -------- -------- -------- -------- -------- Columbia 7 1,670 68.2% 2,055 832 1,223 1,928 786 1,142 Fort Worth-Arlington 11 2,270 61.6% 2,400 1,186 1,214 2,287 1,114 1,173 Hartford 2 650 93.5% 1,624 427 1,197 1,608 444 1,164 ----- -------- -------- -------- -------- -------- -------- -------- -------- Lafayette 5 1,170 88.8% 1,832 655 1,177 1,894 687 1,207 Los Angeles-Long Beach 4 1,683 24.3% 1,446 334 1,112 1,321 364 957 Galveston-Texas City 6 1,176 98.4% 2,136 1,029 1,107 2,114 1,116 998 ----- -------- -------- -------- -------- -------- -------- -------- -------- Las Vegas 4 1,253 85.8% 1,832 735 1,097 1,777 631 1,146 Other Markets (81) 194 43,193 62.1% 48,723 18,906 29,817 47,134 18,125 29,009 ----- -------- -------- -------- -------- -------- -------- -------- -------- JUNE 2001 SSS 655 179,282 73.2% 265,814 100,860 164,954 254,922 96,500 158,422 ===== ======== ======== ======== ======== ======== ======== ======== ======== CHANGE: JUNE 2001 LESS JUNE 2000 ---------------------------------------------------------------------- REVENUE EXPENSE N O I -------------------- -------------------- -------------------- M S A AMOUNT PCT AMOUNT PCT AMOUNT PCT ----- -------- -------- -------- -------- -------- -------- Washington 2,567 12.4% 516 8.0% 2,051 14.5% Chicago 820 5.4% 482 9.0% 338 3.5% Houston 819 5.9% 320 5.2% 499 6.5% -------- -------- -------- -------- -------- -------- Phoenix-Mesa 347 2.7% 436 9.6% (89) (1.1)% Atlanta 279 2.7% 93 2.7% 186 2.8% Indianapolis 454 4.2% 282 6.2% 172 2.8% -------- -------- -------- -------- -------- -------- Philadelphia 526 6.8% 138 4.6% 388 8.2% Tampa-St. Petersburg-Clearwater 204 2.6% (81) (2.3)% 285 6.5% Miami 505 7.4% 33 1.2% 472 11.5% -------- -------- -------- -------- -------- -------- Orlando 95 1.3% 242 8.6% (147) (3.2)% Dallas 289 4.0% 266 9.3% 23 0.5% Norfolk-Virginia Beach-Newport News 341 6.1% 134 6.6% 207 5.8% -------- -------- -------- -------- -------- -------- Denver 347 8.1% 84 7.1% 263 8.4% Raleigh-Durham-Chapel Hill 264 6.5% 46 3.2% 218 8.2% Grand Rapids-Muskegon-Holland 396 8.9% 227 11.8% 169 6.6% -------- -------- -------- -------- -------- -------- San Diego 375 10.9% (30) (2.6)% 405 17.7% Nashville (163) (3.5)% (48) (2.6)% (115) (4.1)% San Antonio (130) (2.5)% 36 1.5% (166) (5.9)% -------- -------- -------- -------- -------- -------- Fort Wayne (199) (4.8)% (121) (7.0)% (78) (3.2)% Middlesex-Somerset-Hunterdon 280 8.5% 176 16.3% 104 4.7% Cincinnati (144) (4.0)% 73 5.5% (217) (9.5)% -------- -------- -------- -------- -------- -------- Fort Lauderdale 239 7.5% 94 7.2% 145 7.6% West Palm Beach-Boca Raton 78 2.4% (22) (1.6)% 100 5.2% Austin-San Marcos 71 2.2% 32 2.7% 39 2.0% -------- -------- -------- -------- -------- -------- Salt Lake City-Ogden 44 1.6% 56 6.6% (12) (0.6)% Tucson 61 2.1% 184 18.9% (123) (6.5)% Lansing-East Lansing (30) 1.1% (72) (6.9)% 42 2.5% -------- -------- -------- -------- -------- -------- Jacksonville 170 6.5% 13 1.2% 157 10.3% Baltimore 138 6.4% 39 5.9% 99 6.6% Charlotte-Gastonia-Rock Hill (80) (2.9)% (42) (3.8)% (38) (2.3)% -------- -------- -------- -------- -------- -------- Orange County 111 5.9% (14) (2.4)% 125 9.7% Montgomery (60) (2.9)% 17 2.6% (77) (5.5)% Columbus (107) (5.0)% (66) (7.6)% (41) (3.2)% -------- -------- -------- -------- -------- -------- Columbia 127 6.6% 46 5.9% 81 7.1% Fort Worth-Arlington 113 4.9% 72 6.5% 41 3.5% Hartford 16 1.0% (17) (3.8)% 33 2.8% -------- -------- -------- -------- -------- -------- Lafayette (62) (3.3)% (32) (4.7)% (30) (2.5)% Los Angeles-Long Beach 125 9.5% (30) (8.2)% 155 16.2% Galveston-Texas City 22 1.0% (87) (7.8)% 109 10.9% -------- -------- -------- -------- -------- -------- Las Vegas 55 3.1% 104 16.5% (49) (4.3)% Other Markets (81) 1,589 3.4% 781 4.3% 808 2.8% -------- -------- -------- -------- -------- -------- JUNE 2001 SSS 10,892 4.3% 4,360 4.5% 6,532 4.1% ======== ======== ======== ======== ======== ========
13 AIMCO Q2 2001 EARNINGS CONFERENCE CALL - ADDITIONAL COMMENTS/FOLLOW-UP SHARE REPURCHASE Aimco is authorized to repurchase up to 2.5 million shares of Aimco Class A Common Stock. Year to date 2001, Aimco has repurchased 668,000 shares of this authorization for a total of $28.6 million as follows:
Shares Repurchased Average Price Per Share ------------------ ----------------------- First Quarter 2001 185,000 $ 41.36 Second Quarter 2001 483,000 43.43 ------------- ------------- Total 668,000 $ 42.86