8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) November 1, 2005

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

(Exact name of registrant as specified in its charter)

MARYLAND	1-13232	84-1259577
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

4582 SOUTH ULSTER STREET PARKWAY
SUITE 1100, DENVER, CO 80237

(Address of principal executive offices)                    (Zip Code)

Registrant’s telephone number, including area code (303) 757-8101

NOT APPLICABLE

(Former name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02. Results of Operations and Financial Condition.

     The press release of Apartment Investment and Management Company (“Aimco”), dated November 1, 2005, attached hereto as Exhibit 99.1 is furnished herewith. Aimco will hold its third quarter 2005 earnings conference call on November 1, 2005 at 1:00 p.m. eastern time. You may join the conference call through an Internet audiocast via Aimco’s website at www.aimco.com/about/3q2005 by clicking on the webcast link. Alternatively, you may join the conference call by telephone by dialing 877-845-9665 (706-634-2273 for international callers). If you wish to participate, please call approximately five minutes before the conference call is scheduled to begin.

     If you are unable to join the live conference call, you may access the replay for 30 days on Aimco’s website or by dialing 800-642-1687 (706-645-9291 for international callers) and using access code 9849263#. Please note that the full text of the press release and supplemental schedules are available through Aimco’s website at www.aimco.com/about/3q2005. The information contained on Aimco’s website is not incorporated by reference herein.

ITEM 9.01. Financial Statements and Exhibits.

The following exhibits are furnished with this report:
Exhibit Number	Description
99.1	Third Quarter 2005 Earnings Release dated November 1, 2005

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

     Dated: November 1, 2005

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
 

/s/ Paul J. McAuliffe  

Paul J. McAuliffe 

Executive Vice President and Chief Financial Officer 

Exhibit Index

Exhibit Number	Description
99.1	Third Quarter 2005 Earnings Release dated November 1, 2005

EX-99.1

EXHIBIT 99.1

Denver, Colorado — November 1, 2005

Apartment Investment and Management Company
Announces Third Quarter 2005 Results

SUMMARY FINANCIAL RESULTS: Apartment Investment and Management Company (Aimco) (NYSE:AIV) announced third quarter 2005 results including:

• Net income was $26.4 million, compared with $163.2 million in the third quarter 2004. The $136.8 million decrease in net income was primarily a result of $161.5 million lower gains on dispositions of real estate related to both consolidated and unconsolidated property sales and $27.7 million higher depreciation expense, partially offset by $23.3 million improved property net operating income. Earnings per share (EPS) was $0.05 on a diluted basis, compared with $1.48 in the third quarter 2004, based on net income attributable to common shareholders.

• Funds from operations (FFO) is a non-GAAP financial measure defined in the glossary in the Supplemental Information (the Glossary). FFO (diluted) before impairment and preferred redemption charges was $61.9 million, or $0.65 per share. FFO includes a charge of $0.02 per share related to damage caused by hurricanes Katrina and Rita. Excluding this charge, FFO met the low end of Aimco’s guidance range. FFO calculated in accordance with the definition prescribed by the National Association of Real Estate Investment Trusts (NAREIT) was $55.2 million, or $0.58 per share, compared with $73.8 million, or $0.78 per share, in the third quarter 2004. Under the NAREIT definition, FFO deducts charges related to impairment losses from real estate assets sold or held for sale and charges related to the redemption of preferred securities (each adjusted for minority interest in Aimco Operating Partnership) of $0.07 and $0.11 per share in the third quarter 2005 and third quarter 2004, respectively. Third quarter 2005 impairment charges relate primarily to a planned sale of nine student housing properties. Comparatively, FFO included hurricane related charges of $0.02 and $0.07 per share in the third quarter 2005 and third quarter 2004, respectively.

• Adjusted funds from operations (diluted) (AFFO; a non-GAAP financial measure defined in the Glossary) was $37.5 million, or $0.40 per share, compared with $62.2 million, or $0.66 per share, in the third quarter 2004. AFFO includes deductions of $0.25 and $0.23 per share for capital replacement expenditures in the third quarter 2005 and third quarter 2004, respectively.

Diluted Per Share Results

	THIRD QUARTER				YEAR-TO-DATE
	2005		2004		2005			2004
Earnings (loss) — EPS	$	0.05	$	1.48		($0.11	)	$	1.34
Funds from operations — FFO	$	0.58	$	0.78	$	1.88		$	2.07
FFO before impairment and preferred redemption charges	$	0.65	$	0.89	$	1.99		$	2.21
Adjusted funds from operations — AFFO	$	0.40	$	0.66	$	1.33		$	1.69

Contact

Investor Relations 303.691.4350, Investor@Aimco.com
Jennifer Martin, Vice President-Investor Relations 303.691.4440

Management Comments

Chairman and Chief Executive Officer Terry Considine comments: “Aimco had a solid third quarter: increased occupancies position the portfolio for significant increases in fourth quarter and 2006 profitability; redevelopment is ramping up; and progress on entitlements offers the potential for substantial increases to Net Asset Value.”

Business Components — Conventional Operations and Aimco Capital

CONVENTIONAL REAL ESTATE OPERATIONS — Conventional real estate operations include Aimco’s diversified portfolio of market rate apartment communities. At the end of the third quarter 2005, this portfolio had 566 properties with 160,327 units in which Aimco had a weighted average ownership of 81%. During the third quarter 2005, conventional real estate operations generated net operating income of $161.2 million.

“Same Store” Results

The “Same Store” portfolio is a sub-set of total conventional properties. In the third quarter 2005, the “Same Store” portfolio included 481 communities with approximately 112,788 effective units based on Aimco’s weighted average ownership of 82% (see Supplemental Schedules 6a through 7).

Comparing “Same Store” results in the third quarter 2005 with the third quarter 2004, total revenue increased $16.0 million, or 6.4%. The increase in revenue was generated by: higher occupancy, up 270 basis points from 90.7% to 93.4%; higher average rent, up $20 per unit, or 2.7%, from $744 per unit to $764 per unit; and lower bad debt, down $0.4 million. “Same Store” expenses of $120.4 million increased by $6.7 million, or 5.9%, compared with the third quarter 2004. Increased expenses were primarily due to: $2.7 million of increased personnel costs mostly related to leasing staff; $0.9 million increased utility costs; $0.7 million of increased unit turnover costs; and $4.4 million of higher property taxes; which were partially offset by lower repairs and maintenance and lower property insurance costs. “Same Store” portfolio net operating income was $145.8 million for the third quarter 2005, up 6.8% from the third quarter 2004. Third quarter 2004 expenses included $1.2 million related to hurricanes. Excluding the effect of hurricanes in the prior year results, “Same Store” expenses increased 7.0% and “Same Store” net operating income increased 5.9%.

Same Store Operating Results

	THIRD QUARTER
	Year-over-year									Sequential
	2005			2004			Variance			2nd Qtr 2005			Variance
Same Store Operating Measures
Average Physical Occupancy (1)		93.4	%		90.7	%	+270bp				91.0	%	+240bp
Average Rent Per Unit	$	764		$	744			+2.7	%	$	756			+1.1	%
Total Same Store ($mm)
Revenue	$	266.2		$	250.2			+6.4	%	$	256.5			+3.8	%
Expenses		(120.4	)		(113.7	)		+5.9	%		(113.4	)		+6.2	%
NOI	$	145.8		$	136.5			+6.8	%	$	143.1			+1.9	%

(1) As of the first quarter 2005, Aimco’s reported occupancy represents the daily weighted average for the quarter. Comparable prior periods have been calculated accordingly. Previously, reported occupancy was as of the end of the month and average occupancy for a quarter was the arithmetic average of the three, month-end occupancies.

Comparing “Same Store” results on a sequential basis, total revenue increased $9.7 million in the third quarter 2005 compared with the second quarter 2005, driven primarily by a 240 basis point increase in occupancy and a 1.1% increase in rental rate. Expenses increased $7.0 million, primarily due to higher unit turnover costs related to increased occupancy, higher utilities and higher worker’s compensation costs. Net operating income increased $2.7 million, or 1.9%, on a sequential basis.

Going forward into the heating season, the higher cost of electricity and natural gas is expected to increase utility expenses compared with the 2004/2005 heating season. Aimco’s primary exposure to these rising costs comes from the cost to heat apartment property common areas and to heat individual apartments where the cost is not borne by the resident. At the end of the third quarter 2005, Aimco had approximately 18,000 conventional apartments, 11% of the conventional portfolio, where the heating cost is Aimco’s responsibility and is not reimbursed by the resident. Aimco expects its fourth quarter 2005 total utilities expense, including expenses for affordable properties, to be higher than previously expected by approximately $0.015 to $0.02 per share. Based on expected consumption, Aimco has fixed rates for nearly 80% of its natural gas exposure through March 2006 and has fixed rates for nearly 50% of its natural gas exposure through March 2007.

CORE PROPERTIES — Core properties (defined in the glossary) offer the potential for long-term growth at higher rates of return. These properties are predominantly located in coastal and sun-belt states as well as the Rocky Mountain region and Chicago. In the third quarter 2005, core properties accounted for 80% of conventional operations net operating income. Core properties within the “Same Store” portfolio had better operating characteristics than non-core properties (defined in the glossary). Core property average rent was $872 per month, average occupancy was 94.8% and the operating margin was 58.4% compared with non-core, which had average monthly rent of $587, average occupancy of 91.0% and an operating margin of 43.9%

UNIVERSITY COMMUNITIES — Aimco’s University Communities portfolio includes 20 properties with 5,596 units. Aimco seeks to own properties in close proximity to major universities. The company is currently in negotiations to sell nine properties having 2,167 units. In September 2005, University operations had “Same Store” occupancy of 96.6% and average rent of $597, up from 95.4% and $568, respectively, in September 2004.

AIMCO CAPITAL — Aimco is among the largest owners and operators of affordable properties in the United States. Aimco Capital has been organized to oversee Aimco’s affordable property operations, asset management and transactional activities, and is led by a management team dedicated to this sector.

Affordable Property Operations

At the end of the third quarter 2005, Aimco’s owned affordable portfolio included 371 properties with 44,351 units in which Aimco had a weighted average ownership of 41%. During the third quarter 2005, affordable property operations generated net operating income of $19.9 million and property management net operating income of $3.6 million. On a year-over-year basis, third quarter average month-end occupancy increased 80 basis points from 95.2% to 96.0%, and average rent per unit increased 2.3% from $654 to $669 per unit.

Affordable Asset Management and Transactional Activity

Aimco Capital generates activity fees from transactional activities (including tax credit redevelopments, syndications, dispositions and refinancings), and asset management income from the financial management of affordable real estate partnerships. Aimco Capital activity fee and asset management net operating income was $4.9 million in the third quarter 2005 compared with $3.6 million in the third quarter 2004, and $14.4 million year-to-date 2005 compared with $14.6 million year-to-date 2004.

Portfolio Management and Redevelopment Activity

Acquisitions — In the third quarter 2005 Aimco acquired the Mustang Village apartments located in San Luis Obispo, California. Mustang Village is a 514-unit community located adjacent to California Polytechnic State University. The $70.8 million acquisition was made through Aimco’s joint venture with the California State Teachers’ Retirement System.

The Palazzo East property located in the Mid-Wilshire area of Los Angeles continues to lease-up, reaching 73.5% occupancy at the end of October.

Year-to-date Aimco has purchased seven properties including 1,526 units for a total purchase price of $352 million, plus Chestnut Hall for which the purchase price was not disclosed. During the third quarter 2005, Aimco also purchased for an aggregate of $4.4 million additional limited partnership interests in 58 partnerships that own 122 properties. See Supplemental Schedule 8 for additional information on acquisition activity.

Dispositions — Non-core sales: Aimco regularly reviews its portfolio to identify properties that do not meet its long-term investment criteria and are typically located in markets that Aimco seeks to exit. These properties are considered non-core and Aimco seeks to hold them over the intermediate term.

In the third quarter 2005, Aimco sold 24 non-core conventional properties and 12 affordable properties with 4,867 and 1,511 units, respectively, for $334 million in gross proceeds (Aimco share $276 million). Aimco’s share of net proceeds after repayment of existing property debt and transaction costs was $130 million. Year-to-date Aimco sold 32 conventional properties and 33 affordable properties for gross proceeds of $523 million (Aimco share $403 million) and exited five markets. See Supplemental Schedule 8 for additional information on disposition activity.

Gain on Dispositions — Aimco’s property dispositions resulted in total gains on dispositions of real estate (including gains related to sales of unconsolidated entities and other and net gains within discontinued operations), net of related taxes, of $50.5 million for the third quarter 2005, compared with gains of $201.2 million for the third quarter 2004.

REDEVELOPMENT ACTIVITY — Aimco continues to expand its redevelopment activity. At quarter-end, Aimco’s Redevelopment and Construction Services groups had 50 projects at various stages of redevelopment, including 33 conventional projects and 17 affordable projects. During the third quarter 2005, redevelopment expenditures totaled $57.0 million (Aimco share $46.1 million) and Aimco initiated four new moderate conventional projects. The Flamingo South Beach project reached stabilization during the third quarter 2005 with occupied and pre-leased units at 93% at quarter-end. Belmont Place in Marietta, Georgia reached stabilization five quarters ahead of schedule with occupied and pre-leased units at 96% at quarter-end. At quarter-end, Aimco’s pipeline of identified redevelopment opportunities included 120 properties for an estimated redevelopment cost of approximately $1 billion, which the company plans to complete over the next five years. Further information on redevelopment projects is provided in Supplemental Schedule 10.

ENTITLEMENT ACTIVITY — Aimco has additional development opportunity tied to successful entitlement activity. During the third quarter, Aimco continued its progress on improving the permitted density and zoning use for several properties. For example, at Spring Hill Lake located in Greenbelt, Maryland, Aimco received City of Greenbelt and Prince Georges County Planning Board approvals for its conceptual site plan that entails increasing the density from 2,900 to 5,800 units.

Additional Financial Information

PROPERTY MANAGEMENT INCOME — Income from property management is generated from management of properties in which Aimco has unconsolidated interests. Property management net operating income was $4.2 million in the third quarter 2005 compared with $6.0 million in the third quarter 2004. Property management net operating income declined due to sales of unconsolidated properties and increased ownership resulting in consolidation.

ACTIVITY FEE AND ASSET MANAGEMENT INCOME — Activity fees are generated from transactional activities (including tax credit redevelopments, syndications, dispositions and refinancings) and are earned primarily by Aimco Capital. Asset management income is earned by Aimco Capital from the financial management of partnerships, rather than property management of day-to-day operations. Activity fee and asset management net operating income from both conventional and Aimco Capital operations was $5.3 million in the third quarter 2005 compared with $3.7 million in the third quarter 2004. Year-to-date activity fee and asset management income was $15.0 million compared with $15.1 million in the first nine months of 2004. The amount of this net operating income may vary each quarter depending upon the nature and timing of transactional activity.

INTEREST INCOME — Interest income was $7.4 million for the third quarter 2005, a decrease of $2.8 million compared with the third quarter 2004. Interest income in the third quarter 2004 benefited from transaction related accretion income of $2.5 million. Interest income was generated primarily from notes receivable totaling $205.8 million at September 30, 2005 and from interest-bearing accounts.

DEBT ACTIVITY — During the third quarter 2005, Aimco closed 24 mortgage loans, including 23 refinancings of existing mortgage debt and one new mortgage loan on an acquired property. Total proceeds were $298.5 million at a weighted average interest rate of 5.21%. After repayment of existing property debt, transaction costs and distributions to limited partners totaling $199.3 million, Aimco’s share of net proceeds was $99.2 million.

At the end of the third quarter 2005, Aimco’s corporate debt balance was $632.0 million at an average interest rate of 5.68%. The balance on Aimco’s revolving credit facility totaled $232 million, leaving $194.5 million (after $23.5 million in outstanding letters of credit) in available capacity. Please refer to Schedule 5 of the Supplemental Information for more detail on debt activity.

As of September 30, 2005, Aimco had $6.3 billion total debt outstanding of which $2.0 billion was floating rate. The floating rate debt included $632 million corporate debt, $638 million floating rate secured notes and $730 million of tax-exempt bonds.

INTEREST EXPENSE — Consolidated interest expense was $96.1 million for the third quarter 2005, an increase of $4.1 million from $92.0 million in the third quarter 2004. The increase in interest expense was primarily the result of: (i) $6.6 million due to increased debt balances primarily associated with acquisitions, refinancings and increased ownership; (ii) $1.5 million due to increased interest rates on corporate and variable rate property debt and other items; partially offset by (iii) $1.0 million related to lower interest rates on refinanced property debt; and (iv) $3.0 million higher capitalized interest due to increased redevelopment activity.

G&A — General and administrative expenses for the third quarter 2005 of $23.1 million were up $4.7 million compared with $18.4 million in the third quarter 2004. The year-over-year increase is primarily due to increased compensation related to increased staffing levels, recruiting fees and higher health care costs.

Outlook

For the fourth quarter 2005, FFO is forecast in a range from $0.69 to $0.71 per share, before impairment and preferred redemption charges, and AFFO is forecast in a range from $0.45 to $0.47 per share.

For the full year 2005, FFO is forecast in a range from $2.68 to $2.70 ;per share, before impairment and preferred redemption charges, and AFFO is forecast in a range from $1.78 to $1.80 per share. Please refer to the Outlook Schedule for more detail on the fourth quarter and full year 2005, which follows the Consolidated Financial Statements in this release.

Dividends on Common Stock

As announced on October 27, 2005, the Aimco Board of Directors declared a quarterly cash dividend of $0.60 per share of Class A Common Stock for the quarter ended September 30, 2005, payable on November 30, 2005 to stockholders of record on November 18, 2005. The dividend represents 150% of AFFO (diluted) and 103% of FFO (diluted), on a per share basis, and a 6.5% annualized yield based on the $36.93 closing price of Aimco’s Class A Common Stock on October 26, 2005.

Earnings Conference Call

Please join Aimco management for the Third Quarter 2005 earnings conference call to be held Tuesday, November 1, 2005 at 1:00 p.m. Eastern Time. You may join the conference call through an Internet audiocast via Aimco’s Website at www.aimco.com/about/3q2005, then click on the Webcast link. Alternatively, you may join the conference call via telephone by dialing 877-845-9665, or 706-634-2273 for international callers. Please call approximately five minutes before

the conference call is scheduled to begin and indicate that you wish to join the Apartment Investment and Management Company Third Quarter 2005 earnings conference call or refer to conference ID 9849263. If you are unable to join the live conference call, you may access the replay for 30 days on Aimco’s Website or by dialing 800-642-1687 (706-645-9291 for international callers) and using conference ID 9849263.

Supplemental Information

The Supplemental Information referenced in this release is available at Aimco’s Website at the link www.aimco.com/about/3Q2005 or by calling Investor Relations at 303-691-4350.

Forward-looking Statements

This earnings release and Supplemental Information contain forward-looking statements, including statements regarding projected results and specifically forecasts of fourth quarter and full year results. These forward-looking statements are based on management’s judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to, Aimco’s ability to maintain current occupancy, rent levels and “Same Store” results and Aimco’s ability to close transactions necessary to generate fee income as anticipated. 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 that are beyond the control of Aimco including, without limitation: natural disasters such as hurricanes; national and local economic conditions; the general level of interest rates; energy costs; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including variations of real estate values and the general economic climate in local markets and competition for tenants in such markets; insurance risk; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; the timing of acquisitions and dispositions; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; 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. Readers should carefully review Aimco’s financial statements and notes thereto, as well as the risk factors described in Aimco’s Annual Report on Form 10-K for the year ended December 31, 2004 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.

About Aimco

Aimco is a real estate investment trust headquartered in Denver, Colorado that owns and operates a geographically diversified portfolio of apartment communities through 25 regional operating centers. Aimco, through its subsidiaries, operates approximately 1,425 properties, including approximately 250,000 apartment units, and serves approximately one million residents each year. Aimco’s properties are located in 47 states, the District of Columbia and Puerto Rico. Aimco common shares are included in the S&P 500.

GAAP Income Statements

Consolidated Statements of Income
(in thousands, except per share data) (unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2005			2004			2005			2004
REVENUES:
Rental and other property revenues	$	379,550		$	341,116		$	1,099,783		$	985,148
Property management revenues, primarily from affiliates		6,094			8,713			18,684			26,032
Activity fees and asset management revenues, primarily from affiliates		8,018			5,985			22,715			24,381
Total revenues		393,662			355,814			1,141,182			1,035,561
EXPENSES:
Property operating expenses		185,078			169,900			528,756			474,443
Property management expenses		1,918			2,737			5,663			7,327
Activity and asset management expenses		2,760			2,272			7,673			9,299
Depreciation and amortization		112,594			84,907			312,945			251,085
General and administrative expenses		23,123			18,434			65,697			54,020
Other expenses (income), net		(3,402	)		(1,865	)		(5,261	)		(2,520	)
Total expenses		322,071			276,385			915,473			793,654
Operating income		71,591			79,429			225,709			241,907
Interest income		7,371			10,166			22,237			25,067
Recovery of (provision for) losses on notes receivable		(206	)		(672	)		1,352			(1,773	)
Interest expense		(96,107	)		(92,043	)		(277,101	)		(261,826	)
Deficit distributions to minority partners		(2,977	)		(7,105	)		(6,147	)		(14,286	)
Equity in losses of unconsolidated real estate partnerships		(552	)		(1,197	)		(1,871	)		(3,669	)
Impairment losses related to real estate partnerships		(1,178	)		(583	)		(1,709	)		(2,316	)
Gain on dispositions of real estate related to unconsolidated entities and other		8,097			39,138			12,870			41,235
Income (loss) before minority interests, discontinued operations and cumulative effect of change in accounting principle		(13,961	)		27,133			(24,660	)		24,339
Minority interests:
Minority interest in consolidated real estate partnerships		3,920			1,370			8,639			7,173
Minority interest in Aimco Operating Partnership, preferred [a]		(1,806	)		(1,968	)		(5,424	)		(5,908	)
Minority interest in Aimco Operating Partnership, common [a]		3,405			(557	)		8,973			4,443
Total minority interests		5,519			(1,155	)		12,188			5,708
Income (loss) from continuing operations		(8,442	)		25,978			(12,472	)		30,047
Income from discontinued operations, net [b]		34,794			137,230			68,422			165,132
Income before cumulative effect of change in accounting principle		26,352			163,208			55,950			195,179
Cumulative effect of change in accounting principle		—			—			—			(3,957	)
Net income		26,352			163,208			55,950			191,222
Net income attributable to preferred stockholders		21,693			24,667			66,255			66,307
Net income (loss) attributable to common stockholders	$	4,659		$	138,541		$	(10,305	)	$	124,915
Weighted average number of common shares outstanding		94,041			93,247			93,765			93,041
Weighted average number of common shares and common share equivalents outstanding		94,041			93,394			93,765			93,041
Earnings (loss) per common share — basic:
Income (loss) from continuing operations (net of income attributable to preferred stockholders)	$	(0.32	)	$	0.01		$	(0.84	)	$	(0.39	)
Income from discontinued operations		0.37			1.48			0.73			1.77
Cumulative effect of change in accounting principle		—			—			—			(0.04	)
Net income (loss) attributable to common stockholders	$	0.05		$	1.49		$	(0.11	)	$	1.34
Earnings (loss) per common share — diluted:
Income (loss) from continuing operations (net of income attributable to preferred stockholders)	$	(0.32	)	$	0.01		$	(0.84	)	$	(0.39	)
Income from discontinued operations		0.37			1.47			0.73			1.77
Cumulative effect of change in accounting principle		—			—			—			(0.04	)
Net income (loss) attributable to common stockholders	$	0.05		$	1.48		$	(0.11	)	$	1.34

GAAP Income Statements

Notes to Consolidated Statements of Income

[a] The Aimco Operating Partnership is AIMCO Properties, L.P., the operating partnership in Aimco’s UPREIT structure

[b] Income from discontinued operations of consolidated properties is broken down as follows (in thousands):

							Nine Months			Nine Months
	Quarter Ended			Quarter Ended			Ended			Ended
	30-Sep-05			30-Sep-04			30-Sep-05			30-Sep-04
Rental and other property revenue		17,332			44,634			67,396			141,127
Property operating expense		(11,204	)		(22,279	)		(37,205	)		(66,773	)
Other (expenses) income, net		(316	)		(434	)		(961	)		(1,063	)
Depreciation and amortization		(408	)		(9,137	)		(12,638	)		(28,304	)
Interest expense		(3,513	)		(11,098	)		(15,229	)		(34,865	)
Interest income		35			82			178			213
Minority interest in consolidated real estate partnerships		(63	)		(13	)		490			(1,022	)
Income from operations		1,863			1,755			2,031			9,313
Gain on dispositions of real estate, net of minority partners’ interest		44,050			174,497			81,101			196,049
Impairment losses on real estate assets sold or held for sale		(6,208	)		(9,451	)		(8,395	)		(9,942	)
Recovery of deficit distributions (deficit distributions) to minority partners		671			(723	)		4,333			2,688
Income tax arising from disposals		(1,630	)		(12,446	)		(2,849	)		(13,235	)
Minority interest in Aimco Operating Partnership		(3,952	)		(16,402	)		(7,799	)		(19,741	)
Income from discontinued operations	$	34,794		$	137,230		$	68,422		$	165,132

GAAP Balance Sheets

Consolidated Balance Sheets
(in thousands)
(unaudited)

	As of			As of
	September 30, 2005			December 31, 2004
ASSETS
Buildings and improvements	$	8,692,623		$	8,133,833
Land		2,293,876			2,113,839
Accumulated depreciation		(2,199,796	)		(1,899,493	)
TOTAL REAL ESTATE		8,786,703			8,348,179
Cash and cash equivalents		139,636			105,343
Restricted cash		314,585			289,689
Accounts receivable		78,343			75,044
Accounts receivable from affiliates		40,495			39,216
Deferred financing costs		66,619			69,228
Notes receivable from unconsolidated real estate partnerships		178,407			165,289
Notes receivable from non-affiliates		27,373			31,716
Investment in unconsolidated real estate partnerships		177,518			207,839
Other assets		239,245			243,317
Assets held for sale		214,132			497,381
TOTAL ASSETS	$	10,263,056		$	10,072,241
LIABILITIES AND STOCKHOLDERS’ EQUITY
Secured tax-exempt bond financing	$	1,060,872		$	1,101,225
Secured notes payable		4,598,410			4,212,040
Mandatorily redeemable preferred securities		—			15,019
Term loans		400,000			300,000
Credit facility		232,000			68,700
TOTAL INDEBTEDNESS		6,291,282			5,696,984
Accounts payable		44,731			34,663
Accrued liabilities and other		401,817			400,972
Deferred income		46,104			43,924
Security deposits		39,107			35,740
Deferred income taxes payable, net		8,257			20,139
Liabilities related to assets held for sale		156,703			347,818
TOTAL LIABILITIES		6,988,001			6,580,240
Minority interest in consolidated real estate partnerships		208,991			211,804
Minority interest in Aimco Operating Partnership		232,018			272,037
STOCKHOLDERS’ EQUITY
Class A Common Stock		957			949
Additional paid-in capital		3,104,279			3,070,073
Perpetual preferred stock		860,250			891,500
Convertible preferred stock		150,000			150,000
Distributions in excess of earnings		(1,227,925	)		(1,047,897	)
Unearned restricted stock		(27,024	)		(19,740	)
Notes due on common stock purchases		(26,491	)		(36,725	)
TOTAL STOCKHOLDERS’ EQUITY		2,834,046			3,008,160
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	10,263,056		$	10,072,241

GAAP Statements of Cash Flows

Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Nine Months Ended			Nine Months Ended
	September 30, 2005			September 30, 2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	55,950		$	191,222
Depreciation and amortization		312,945			251,085
Adjustments to net income from discontinued operations		(57,091	)		(139,728	)
Other adjustments to reconcile net income		(29,337	)		(7,552	)
Changes in operating assets and liabilities		(4,789	)		7,611
Net cash provided by operating activities		277,678			302,638
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of real estate		(243,996	)		(275,924	)
Capital expenditures		(324,046	)		(191,379	)
Proceeds from dispositions of real estate		390,808			679,793
Change in funds held in escrow from tax-free exchanges		(13,063	)		709
Cash from newly consolidated properties		2,211			14,827
Purchases of non-real estate related corporate assets		(11,090	)		(23,967	)
Purchases of general and limited partnership interests and other assets		(85,267	)		(67,437	)
Originations of notes receivable from unconsolidated real estate partnerships		(28,042	)		(64,491	)
Proceeds from repayment of notes receivable		16,402			34,145
Distributions received from investments in unconsolidated real estate partnerships		40,131			44,973
Other investing activities		(379	)		(2,378	)
Net cash (used in) provided by investing activities		(256,331	)		148,871
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from secured notes payable borrowings		550,243			407,620
Principal repayments on secured notes payable		(452,310	)		(465,555	)
Proceeds from tax-exempt bond financing		—			69,471
Principal repayments on tax-exempt bond financing		(40,431	)		(169,945	)
Net borrowings on term loans and revolving credit facility		263,300			(16,987	)
Redemption of mandatorily redeemable preferred securities		(15,019	)		(98,875	)
Proceeds from issuance of preferred stock		—			276,750
Redemption of preferred stock		(31,250	)		(149,926	)
Repurchase of Class A Common Stock, redemption of OP Units and warrant purchase		(3,791	)		(13,469	)
Payment of Class A Common Stock dividends		(169,967	)		(169,179	)
Payment of preferred stock dividends		(64,889	)		(64,978	)
Contributions from minority interest		25,453			27,697
Payment of distributions to minority interest		(52,516	)		(71,315	)
Other financing activities		4,123			(4,680	)
Net cash provided by (used in) financing activities		12,946			(443,371	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		34,293			8,138
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		105,343			114,432
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	139,636		$	122,570

Outlook and Forward Looking Statement
Fourth Quarter and Full Year 2005
(unaudited)

The Outlook information provided on this Schedule contains information that is forward-looking, including statements concerning projected fourth quarter and full year 2005 results. These forward-looking statements are based on current expectations, estimates, and projections about the markets and the industry in which Aimco operates as well as management’s beliefs and assumptions. These forward-looking statements are also based on certain risks and uncertainties, including but not limited to Aimco’s ability to improve upon current occupancy, rent levels and “same store” results and the economic environment in which Aimco operates. Actual results may differ materially from those described in these forward-looking statements and will be affected by a variety of risks and factors including, without limitation: natural disasters such as hurricanes; national and local economic conditions; the general level of interest rates; energy costs; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; financing risks, including the risk that Aimco’s cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including variations of real estate values and the general economic climate in local markets and competition for tenants in such markets; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; the timing of acquisitions; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; 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. Readers should carefully review Aimco’s financial statements and notes thereto, as well as the risk factors described in Aimco’s Annual Report on Form 10-K for the year ended December 31, 2004 and the other documents Aimco files from time to time with the Securities and Exchange Commission.

	Fourth Quarter 2005	Full Year 2005
GAAP Earnings per share (1)	-$0.31 to -$0.29	-$0.42 to -$0.40
Add: Depreciation and other	1.00	$2.99
FFO per share (NAREIT)	$0.69 to $0.71	$2.57 to $2.59
FFO per share before adjustments (2)	$0.69 to $0.71	$2.68 to $2.70
AFFO per share	$0.45 to $0.47	$1.78 to $1.80
2005 Same Store Operating Assumptions
Expected physical occupancy (weighted average) (3)	93.5% to 94.5%	92.0% to 92.3%
NOI change — sequential	3.5% to 4.9%	—
NOI change — 2005 vs. 2004	7.9% to 9.3%	6.0% to 6.3%
Gross dispositions (4)		$870M to $1,000M	(Aimco Share $620M — $710M)
Gross acquisitions (5)		$425M to $450M	(Aimco Share $375M — $400M)

(1)	Aimco’s earnings per share guidance does not include estimates for (i) gain on dispositions or impairment losses due to the unpredictable timing of transactions or (ii) deferred costs recognized on early repayment of debt or redemption related preferred stock issuance charges.
(2)	FFO per share before adjustments represents FFO before impairments and redemption related preferred stock issuance charges.
(3)	The expected occupancy above is based on a daily weighted average calculation.
(4)	Aimco anticipates gross sales proceeds of $870 to $1,000 million for 2005 ($600 to $690 million related to conventional properties and $270 to $310 million related to affordable properties). Aimco share of proceeds is expected to be $620 to $710 million ($500 to $570 million related to conventional properties and $120 to $140 million related to affordable properties). Aimco estimates that its share of cash from these dispositions, net of mortgage debt and third-party equity interests, will be $300 to $340 million ($230 to $260 million related to conventional properties and $70 to $80 million related to affordable properties).
(5)	Gross acquisitions include property acquisitions, limited partnership acquisitions, preferred stock redemptions and common stock repurchases.

Supplemental Schedule 1

Funds From Operations and Adjusted Funds From Operations
(in thousands, except per share data) (unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2005			2004			2005			2004
Net income (loss) attributable to common stockholders [a]	$	4,659		$	138,541		$	(10,305	)	$	124,915
Adjustments:
Depreciation and amortization [b]		112,594			84,907			312,945			251,085
Depreciation and amortization related to non-real estate assets		(4,276	)		(4,271	)		(12,591	)		(13,478	)
Depreciation of rental property related to minority partners’ interest [c]		(11,211	)		(9,420	)		(31,589	)		(31,053	)
Depreciation of rental property related to unconsolidated entities		5,038			5,472			15,627			17,116
Gain on dispositions of real estate related to unconsolidated entities and other		(8,097	)		(39,138	)		(12,870	)		(41,235	)
Gain on dispositions of non-depreciable assets		1,657			34,580			2,450			35,455
Deficit distributions to minority partners [d]		2,977			7,105			6,147			14,286
Cumulative effect of change in accounting principle		—			—			—			3,957
Discontinued operations:
Gain on dispositions of real estate, net of minority partners’ interest [c]		(44,050	)		(174,497	)		(81,101	)		(196,049	)
Depreciation of rental property, net of minority partners’ interest [c]		534			8,134			11,515			25,890
Deficit distributions (recovery of deficit distributions) to minority partners [d]		(671	)		723			(4,333	)		(2,688	)
Income tax arising from disposals		1,630			12,446			2,849			13,235
Minority interest in Aimco Operating Partnership’s share of above adjustments		(5,615	)		8,104			(21,377	)		(8,235	)
Preferred stock dividends		21,693			22,569			65,132			64,121
Redemption related preferred stock issuance costs		—			2,098			1,123			2,186
Funds From Operations		76,862			97,353			243,622			259,508
Preferred stock dividends		(21,693	)		(22,569	)		(65,132	)		(64,121	)
Redemption related preferred stock issuance costs		—			(2,098	)		(1,123	)		(2,186	)
Dividends/distributions on dilutive preferred securities		—			1,069			104			2,757
Funds From Operations Attributable to Common Stockholders — Diluted	$	55,169		$	73,755		$	177,471		$	195,958
Impairment losses related to real estate partnerships [e]		1,178			583			1,709			2,316
Impairment losses on real estate assets sold or held for sale, net of minority partners’ interest [e]		6,208			9,451			8,395			9,942
Redemption related preferred stock issuance costs [f]		—			2,098			1,123			2,186
Minority interest in Aimco Operating Partnership’s share of above adjustments		(753	)		(1,304	)		(1,149	)		(1,556	)
Dividends/distributions on non-dilutive preferred securities		64			1,157			64			1,157
Funds From Operations Attributable to Common Stockholders — Diluted (excluding impairment losses and redemption related preferred stock issuance costs):		61,866			85,740			187,613			210,003
Capital Replacements		(26,984	)		(23,948	)		(69,340	)		(54,417	)
Minority interest in Aimco Operating Partnership’s share of above adjustments		2,726			2,548			7,095			5,857
Dividends/distributions on non-dilutive preferred securities		(64	)		(2,173	)		(168	)		(3,778	)
Adjusted Funds From Operations Attributable to Common Stockholders — Diluted	$	37,544		$	62,167		$	125,200		$	157,665
Funds From Operations:
Weighted average common shares, common share equivalents and dilutive preferred securities outstanding:
Common shares and equivalents [g]		95,013			93,394			94,377			93,110
Dilutive preferred securities		—			1,590			92			1,450
		95,013			94,984			94,469			94,560
Funds From Operations (excluding impairment losses and redemption related preferred stock issuance costs):
Weighted average common shares, common share equivalents and dilutive preferred securities outstanding:
Common shares and equivalents [g]		95,013			93,394			94,377			93,110
Dilutive preferred securities		104			3,037			96			1,933
		95,117			96,431			94,473			95,043
Adjusted Funds From Operations:
Weighted average common shares, common share equivalents and dilutive preferred securities outstanding:
Common shares and equivalents [g]		95,013			93,394			94,377			93,110
Dilutive preferred securities		—			114			—			97
		95,013			93,508			94,377			93,207
Per Share:
Funds From Operations — Diluted	$	0.58		$	0.78		$	1.88		$	2.07
Funds From Operations — Diluted (excluding impairment losses and redemption related preferred stock issuance costs)	$	0.65		$	0.89		$	1.99		$	2.21
Adjusted Funds From Operations — Diluted	$	0.40		$	0.66		$	1.33		$	1.69
Dividends Declared	$	0.60		$	0.60		$	1.80		$	1.80

Supplemental Schedule 1 (continued)

Notes to Funds From Operations and Adjusted Funds From Operations

[a] Represents Aimco’s numerator for earnings per common share calculated in accordance with GAAP.

[b] Includes amortization of management contracts where Aimco is the general partner. Such management contracts were established in certain instances where Aimco acquired a general partner interest in either a consolidated or an unconsolidated partnership. Because the recoverability of these management contracts depends primarily on the operations of the real estate owned by the limited partnerships, Aimco believes it is consistent with NAREIT’s April 1, 2002 White Paper to add back such amortization, as the White Paper directs the add back of amortization of assets uniquely significant to the real estate industry.

[c] “Minority partners’ interest,” means minority interest in our consolidated real estate partnerships.

[d] In accordance with GAAP, deficit distributions to minority partners are charges recognized in Aimco’s income statement when cash is distributed to a non-controlling partner in a consolidated real estate partnership in excess of the positive balance in such partner’s capital account, which is classified as minority interest on the balance sheet. Aimco records these charges for GAAP purposes even though there is no economic effect or cost. Deficit distributions to minority partners occur when the fair value of the underlying real estate exceeds its depreciated net book value because the underlying real estate has appreciated or maintained its value. As a result, the recognition of expense for deficit distributions to minority partners represents, in substance, either (1) recognition of depreciation previously allocated to the non-controlling partner or (2) a payment related to the non-controlling partner’s share of real estate appreciation. Based on White Paper guidance that requires real estate depreciation and gains to be excluded from FFO, Aimco adds back deficit distributions and subtracts related recoveries in its reconciliation of net income to FFO.

[e] On October 1, 2003, NAREIT clarified its definition of FFO to include impairment losses, which previously had been added back to calculate FFO. Although Aimco’s presentation conforms with the NAREIT definition, Aimco considers such approach to be inconsistent with the treatment of gains on dispositions of real estate, which are not included in FFO. Aimco no longer adds back impairment losses when computing FFO in accordance with this clarification. As a result, FFO for the three and nine months ended September 30, 2005 includes net impairment losses of $7.4 million and $10.1 million, respectively, and FFO for the three and nine months ended September 30, 2004 includes net impairment losses of $10.0 million and $12.3 million, respectively.

[f] In accordance with the Securities and Exchange Commission’s July 31, 2003 interpretation of the Emerging Issues Task Force Topic D-42, Aimco includes redemption related preferred stock issuance costs in FFO. As a result, FFO for the three and nine months ended September 30, 2005 includes issuance costs of zero and $1.1 million, respectively, and FFO for the three and nine months ended September 30, 2004 includes issuance costs of $2.1 million and $2.2 million, respectively.

[g] Represents Aimco’s denominator for earnings per common share — diluted calculated in accordance with GAAP plus additional common share equivalents that are dilutive for FFO/AFFO.

Supplemental Schedule 2(a)

Business Component Proportionate Income Statement Presentation
For the Three Months Ended September 30, 2005
(in thousands)
(unaudited)

										Total												Total
				Proportionate						Proportionate												Proportionate
	Aimco			Share of			Minority			Consolidated												Consolidated
	GAAP Income			Unconsolidated			Partners’			Income						Aimco						Income
	Statement			Partnerships			Interest			Statement			Conventional			Capital			Corporate			Statement
Revenue:
Rental and other property revenues:
Same store properties (1) (2)	$	300,235		$	6,378		$	(40,373	)	$	266,240		$	266,240		$	—		$	—		$	266,240
Acquisition properties (1)		17,214			879			(15	)		18,078			18,078			—			—			18,078
Redevelopment properties (1)		22,094			—			(3,442	)		18,652			18,652			—			—			18,652
Disposition properties (3)		—			582			—			582			582			—			—			582
Other properties (1)		5,279			987			(733	)		5,533			5,533			—			—			5,533
Affordable properties (1)		34,728			14,374			(8,785	)		40,317			—			40,317			—			40,317
Total rental and other property revenues		379,550			23,200			(53,348	)		349,402			309,085			40,317			—			349,402
Property management revenues, primarily from affiliates		6,094			—			—			6,094			1,405			4,689			—			6,094
Activity fees and asset management revenues, primarily from affiliates		8,018			—			—			8,018			313			7,705			—			8,018
Total revenues		393,662			23,200			(53,348	)		363,514			310,803			52,711			—			363,514
Expense:
Property operating expenses:
Same store properties (2)		137,273			3,169			(20,506	)		119,936			119,936			—			—			119,936
Acquisition properties		6,851			435			(5	)		7,281			7,281			—			—			7,281
Redevelopment properties		10,282			—			(1,794	)		8,488			8,488			—			—			8,488
Disposition properties		—			388			—			388			388			—			—			388
Other properties		4,591			555			(261	)		4,885			4,885			—			—			4,885
Affordable properties		17,591			6,584			(4,418	)		19,757			—			19,757			—			19,757
Casualties		942			304			52			1,298			1,386			(88	)		—			1,298
Property management expenses (consolidated properties)		7,548			1,167			(2,486	)		6,229			5,491			738			—			6,229
Total property operating expenses		185,078			12,602			(29,418	)		168,262			147,855			20,407			—			168,262
Property management expenses (unconsolidated and third party properties)		1,918			—			—			1,918			787			1,131			—			1,918
Activity and asset management expenses		2,760			—			—			2,760			—			2,760			—			2,760
Depreciation and amortization		112,594			5,038			(11,211	)		106,421			94,879			11,542			—			106,421
General and administrative expenses		23,123			—			—			23,123			10,660			5,357			7,106			23,123
Other expenses (income), net		(3,402	)		416			(2,387	)		(5,373	)		(4,104	)		(1,269	)		—			(5,373	)
Total expenses		322,071			18,056			(43,016	)		297,111			250,077			39,928			7,106			297,111
Operating income		71,591			5,144			(10,332	)		66,403			60,726			12,783			(7,106	)		66,403
Interest income:
General partner loan interest		4,879			—			—			4,879			3,790			1,089			—			4,879
Money market and interest bearing accounts		2,508			581			(207	)		2,882			919			783			1,180			2,882
Accretion on discounted notes receivable		(16	)		—			—			(16	)		196			(212	)		—			(16	)
Total interest income		7,371			581			(207	)		7,745			4,905			1,660			1,180			7,745
Provision for losses on notes receivable, net		(206	)		—			—			(206	)		(48	)		(158	)		—			(206	)
Interest expense:
Property debt (primarily non-recourse)		(89,774	)		(6,280	)		14,411			(81,643	)		(75,045	)		(6,598	)		—			(81,643	)
Lines of credit		(11,365	)		—			—			(11,365	)		—			—			(11,365	)		(11,365	)
Capitalized interest		5,032			3			48			5,083			4,749			334			—			5,083
Total interest expense		(96,107	)		(6,277	)		14,459			(87,925	)		(70,296	)		(6,264	)		(11,365	)		(87,925	)
Deficit distributions to minority partners		(2,977	)		—			—			(2,977	)		(2,936	)		(41	)		—			(2,977	)
Equity in losses of unconsolidated real estate partnerships		(552	)		552			—			—			—			—			—			—
Impairment losses related to real estate partnerships		(1,178	)		—			—			(1,178	)		(1,286	)		108			—			(1,178	)
Gain on dispositions of real estate related to unconsolidated entities and other		8,097			—			—			8,097			6,190			1,907			—			8,097
Income (loss) before minority interests, discontinued operations and cumulative effect of change in accounting principle		(13,961	)		—			3,920			(10,041	)		(2,745	)		9,995			(17,291	)		(10,041	)
Minority interests:
Minority interest in consolidated real estate partnerships		3,920			—			(3,920	)		—			—			—			—			—
Minority interest in Aimco Operating Partnership		1,599			—			—			1,599			931			(3,390	)		4,058			1,599
Total minority interests		5,519			—			(3,920	)		1,599			931			(3,390	)		4,058			1,599
Income (loss) from continuing operations		(8,442	)		—			—			(8,442	)		(1,814	)		6,605			(13,233	)		(8,442	)
Income from discontinued operations, net		34,794			—			—			34,794			34,712			82			—			34,794
Net income	$	26,352		$	—		$	—		$	26,352		$	32,898		$	6,687		$	(13,233	)	$	26,352

(1)	See definitions and descriptions in Glossary
(2)	Same store amounts in this schedule may differ from the same store amounts in Schedules 6a-6c. Any such differences are the result of (a) certain variations in the treatment of intercompany eliminations in GAAP versus non-GAAP measures and (b) the effect of changing ownership percentages over time due to Aimco’s acquisition of additional partnership interests.
(3)	Includes unconsolidated properties that were sold during the period. Consolidated properties that have sold or have been classified as held for sale are included within income from discontinued operations.

Supplemental Schedule 2(a)

Business Component Proportionate Income Statement Presentation
For the Three Months Ended September 30, 2005
(in thousands)
(unaudited)

	Total												Total
	Proportionate												Proportionate
	Consolidated												Consolidated
	Income						Aimco						Income
	Statement			Conventional			Capital			Corporate			Statement
Reconciliation of Net Income to FFO, AFFO and FCF:
Net income (see above)	$	26,352		$	32,898		$	6,687		$	(13,233	)	$	26,352
Proportionate share of depreciation and amortization		106,421			94,879			11,542			—			106,421
Depreciation and amortization related to non-real estate assets		(4,276	)		(4,276	)		—			—			(4,276	)
Deficit distributions to minority partners		2,977			2,936			41			—			2,977
Gain on dispositions of real estate related to unconsolidated entities and other		(8,097	)		(6,190	)		(1,907	)		—			(8,097	)
Gain on dispositions of non-depreciable assets		1,657			407			1,250			—			1,657
Discontinued operations		(42,557	)		(42,843	)		286			—			(42,557	)
Minority interest in Aimco Operating Partnership’s share of adjustments		(5,615	)		(4,494	)		(1,121	)		—			(5,615	)
Preferred stock dividends		(21,693	)		—			—			(21,693	)		(21,693	)
FFO Attributable to Common Stockholders — Diluted		55,169			73,317			16,778			(34,926	)		55,169
Capital Replacements		(26,984	)		(25,630	)		(1,354	)		—			(26,984	)
Impairment losses related to real estate partnerships		1,178			1,286			(108	)		—			1,178
Impairment losses on real estate assets sold or held for sale, net of minority partners’ interest		6,208			5,888			320			—			6,208
Minority interest in Aimco Operating Partnership’s share of adjustments		1,973			1,858			115			—			1,973
AFFO Attributable to Common Stockholders — Diluted		37,544			56,719			15,751			(34,926	)		37,544
Interest expense		87,925			70,296			6,264			11,365			87,925
Discontinued operations		1,555			2,243			(688	)		—			1,555
Gain on dispositions of non-depreciable assets		(1,657	)		(1,657	)		—			—			(1,657	)
Preferred stock dividends		21,693			—			—			21,693			21,693
Depreciation and amortization related to non-real estate assets		4,276			4,276			—			—			4,276
Minority interest in Aimco Operating Partnership		(1,599	)		(931	)		3,390			(4,058	)		(1,599	)
Minority interest in Aimco Operating Partnership’s share of adjustments		3,642			2,635			1,007			—			3,642
FCF	$	153,379		$	133,581		$	25,724		$	(5,926	)	$	153,379
FCF Breakdown:
Real estate		154,156
Property management		4,176
Activity and asset management		5,258
Interest income		7,745
Provision for losses on notes receivable, net		(206	)
General and administrative expenses		(23,123	)
Other (expenses) income, net		5,373
Total FCF	$	153,379

Reconciliation of Net Income to FFO, AFFO and FCF:

	For the Three Months Ended September 30, 2005
	FFO			AFFO			FCF
Net income	$	26,352		$	26,352		$	26,352
Total interest expense after minority partners’ share		—			—			87,925
Preferred stock dividends		(21,693	)		(21,693	)		—
Proportionate share of depreciation and amortization		106,421			106,421			106,421
Depreciation and amortization related to non-real estate assets		(4,276	)		(4,276	)		—
Gain on dispositions of real estate related to unconsolidated entities and other		(8,097	)		(8,097	)		(8,097	)
Gain on dispositions of non-depreciable assets		1,657			1,657			—
Impairment losses related to real estate partnerships		—			1,178			1,178
Discontinued operations:
Income from discontinued operations, net		—			—			(34,794	)
Depreciation of rental property, net of minority partners’ interest		534			534			—
Gain on dispositions of real estate, net of minority partners’ interest		(44,050	)		(44,050	)		—
Impairment losses on real estate assets sold or held for sale, net of minority partners’ interest		—			6,208			—
Recovery of deficit distributions to minority partners		(671	)		(671	)		—
Income tax arising from disposals		1,630			1,630			—
Deficit distributions to minority partners		2,977			2,977			2,977
Capital Replacements		—			(26,984	)		(26,984	)
Minority interest in Aimco Operating Partnership’s share of above adjustments		(5,615	)		(3,642	)		—
Minority interest in Aimco Operating Partnership		—			—			(1,599	)
Total	$	55,169		$	37,544		$	153,379

Supplemental Schedule 2(b)

Business Component Proportionate Income Statement Presentation
For the Nine Months Ended September 30, 2005
(in thousands)
(unaudited)

										Total												Total
				Proportionate						Proportionate												Proportionate
	Aimco			Share of			Minority			Consolidated												Consolidated
	GAAP Income			Unconsolidated			Partners’			Income						Aimco						Income
	Statement			Partnerships			Interest			Statement			Conventional			Capital			Corporate			Statement
Revenue:
Rental and other property revenues:
Same store properties (1) (2)	$	863,193		$	18,200		$	(117,221	)	$	764,172		$	764,172		$	—		$	—		$	764,172
Acquisition properties (1)		44,660			1,895			(43	)		46,512			46,512			—			—			46,512
Redevelopment properties (1)		71,836			1,207			(14,571	)		58,472			58,472			—			—			58,472
Disposition properties (3)		—			1,846			—			1,846			1,846			—			—			1,846
Other properties (1)		18,938			2,804			(2,372	)		19,370			19,370			—			—			19,370
Affordable properties (1)		101,156			40,687			(23,361	)		118,482			—			118,482			—			118,482
Total rental and other property revenues		1,099,783			66,639			(157,568	)		1,008,854			890,372			118,482			—			1,008,854
Property management revenues, primarily from affiliates		18,684			—			—			18,684			4,761			13,923			—			18,684
Activity fees and asset management revenues, primarily from affiliates		22,715			—			—			22,715			675			22,040			—			22,715
Total revenues		1,141,182			66,639			(157,568	)		1,050,253			895,808			154,445			—			1,050,253
Expense:
Property operating expenses:
Same store properties (2)		389,071			9,040			(59,211	)		338,900			338,900			—			—			338,900
Acquisition properties		17,718			793			(13	)		18,498			18,498			—			—			18,498
Redevelopment properties		31,967			596			(6,843	)		25,720			25,720			—			—			25,720
Disposition properties		—			1,011			(137	)		874			874			—			—			874
Other properties		13,773			2,127			(1,011	)		14,889			14,889			—			—			14,889
Affordable properties		53,072			20,741			(11,546	)		62,267			—			62,267			—			62,267
Casualties		1,683			219			437			2,339			2,409			(70	)		—			2,339
Property management expenses (consolidated properties)		21,472			3,404			(7,311	)		17,565			14,879			2,686			—			17,565
Total property operating expenses		528,756			37,931			(85,635	)		481,052			416,169			64,883			—			481,052
Property management expenses (unconsolidated and third party properties)		5,663			—			—			5,663			2,408			3,255			—			5,663
Activity and asset management expenses		7,673			—			—			7,673			—			7,673			—			7,673
Depreciation and amortization		312,945			15,627			(31,589	)		296,983			260,891			36,092			—			296,983
General and administrative expenses		65,697			—			—			65,697			29,578			15,503			20,616			65,697
Other expenses (income), net		(5,261	)		2,351			(7,217	)		(10,127	)		(4,781	)		(5,346	)		—			(10,127	)
Total expenses		915,473			55,909			(124,441	)		846,941			704,265			122,060			20,616			846,941
Operating income		225,709			10,730			(33,127	)		203,312			191,543			32,385			(20,616	)		203,312
Interest income:
General partner loan interest		13,722			—			—			13,722			10,568			3,154			—			13,722
Money market and interest bearing accounts		6,751			1,320			(593	)		7,478			2,356			1,982			3,140			7,478
Accretion on discounted notes receivable		1,764			—			—			1,764			1,307			457			—			1,764
Total interest income		22,237			1,320			(593	)		22,964			14,231			5,593			3,140			22,964
Recovery of (provision for) losses on notes receivable, net		1,352			—			—			1,352			2			1,350			—			1,352
Interest expense:
Property debt (primarily non-recourse)		(260,771	)		(14,046	)		43,276			(231,541	)		(210,475	)		(21,066	)		—			(231,541	)
Lines of credit		(28,735	)		—			—			(28,735	)		—			—			(28,735	)		(28,735	)
Interest expense on mandatorily redeemable convertible preferred securities		(30	)		—			—			(30	)		—			—			(30	)		(30	)
Capitalized interest		12,435			125			(917	)		11,643			10,380			1,263			—			11,643
Total interest expense		(277,101	)		(13,921	)		42,359			(248,663	)		(200,095	)		(19,803	)		(28,765	)		(248,663	)
Deficit distributions to minority partners		(6,147	)		—			—			(6,147	)		(6,028	)		(119	)		—			(6,147	)
Equity in losses of unconsolidated real estate partnerships		(1,871	)		1,871			—			—			—			—			—			—
Impairment losses related to real estate partnerships		(1,709	)		—			—			(1,709	)		(1,286	)		(423	)		—			(1,709	)
Gain on dispositions of real estate related to unconsolidated entities and other		12,870			—			—			12,870			8,260			4,610			—			12,870
Income (loss) before minority interests, discontinued operations and cumulative effect of change in accounting principle		(24,660	)		—			8,639			(16,021	)		6,627			23,593			(46,241	)		(16,021	)
Minority interests:
Minority interest in consolidated real estate partnerships		8,639			—			(8,639	)		—			—			—			—			—
Minority interest in Aimco Operating Partnership		3,549			—			—			3,549			(3,712	)		(13,214	)		20,475			3,549
Total minority interests		12,188			—			(8,639	)		3,549			(3,712	)		(13,214	)		20,475			3,549
Income (loss) from continuing operations		(12,472	)		—			—			(12,472	)		2,915			10,379			(25,766	)		(12,472	)
Income from discontinued operations, net		68,422			—			—			68,422			58,693			9,729			—			68,422
Net income		55,950		$	—		$	—		$	55,950		$	61,608		$	20,108		$	(25,766	)	$	55,950

(1)	See definitions and descriptions in Glossary
(2)	Same store amounts in this schedule may differ from the same store amounts in Schedules 6a-6c. Any such differences are the result of (a) certain variations in the treatment of intercompany eliminations in GAAP versus non-GAAP measures and (b) the effect of changing ownership percentages over time due to Aimco’s acquisition of additional partnership interests.
(3)	Includes unconsolidated properties that were sold during the period. Consolidated properties that have sold or have been classified as held for sale are included within income from discontinued operations.

Supplemental Schedule 2(b)

Business Component Proportionate Income Statement Presentation
For the Nine Months Ended September 30, 2005
(in thousands)
(unaudited)

	Total												Total
	Proportionate												Proportionate
	Consolidated												Consolidated
	Income						Aimco						Income
	Statement			Conventional			Capital			Corporate			Statement
Reconciliation of Net Income to FFO, AFFO and FCF:
Net income (see above)	$	55,950		$	61,608		$	20,108		$	(25,766	)	$	55,950
Proportionate share of depreciation and amortization		296,983			260,891			36,092			—			296,983
Depreciation and amortization related to non-real estate assets		(12,591	)		(12,591	)		—			—			(12,591	)
Deficit distributions to minority partners		6,147			6,028			119			—			6,147
Gain on dispositions of real estate related to unconsolidated entities and other		(12,870	)		(8,260	)		(4,610	)		—			(12,870	)
Gain on dispositions of non-depreciable assets		2,450			1,200			1,250			—			2,450
Discontinued operations		(71,070	)		(59,099	)		(11,971	)		—			(71,070	)
Minority interest in Aimco Operating Partnership’s share of adjustments		(21,377	)		(19,242	)		(2,135	)		—			(21,377	)
Preferred stock dividends		(65,132	)		—			—			(65,132	)		(65,132	)
Redemption related preferred stock issuance costs		(1,123	)		—			—			(1,123	)		(1,123	)
Dividends/distributions on dilutive preferred securities		104			—			—			104			104
FFO Attributable to Common Stockholders — Diluted		177,471			230,535			38,853			(91,917	)		177,471
Capital Replacements		(69,340	)		(65,217	)		(4,123	)		—			(69,340	)
Impairment losses related to real estate partnerships		1,709			1,286			423			—			1,709
Impairment losses on real estate assets sold or held for sale, net of minority partners’ interest		8,395			6,521			1,874			—			8,395
Redemption related preferred stock issuance costs		1,123			—			—			1,123			1,123
Minority interest in Aimco Operating Partnership’s share of adjustments		5,946			5,874			187			(115	)		5,946
Dividends/distributions on non-dilutive preferred securities		(104	)		—			—			(104	)		(104	)
AFFO Attributable to Common Stockholders — Diluted		125,200			178,999			37,214			(91,013	)		125,200
Interest expense		248,663			200,095			19,803			28,765			248,663
Discontinued operations		(5,747	)		(6,114	)		367			—			(5,747	)
Gain on dispositions of non-depreciable assets		(2,450	)		(2,450	)		—			—			(2,450	)
Preferred stock dividends		65,132			—			—			65,132			65,132
Depreciation and amortization related to non-real estate assets		12,591			12,591			—			—			12,591
Minority interest in Aimco Operating Partnership		(3,549	)		3,712			13,214			(20,475	)		(3,549	)
Minority interest in Aimco Operating Partnership’s share of adjustments		15,431			13,368			1,948			115			15,431
FCF	$	455,271			400,201		$	72,546		$	(17,476	)	$	455,271
FCF Breakdown:
Real estate		458,462
Property management		13,021
Activity and asset management		15,042
Interest income		22,964
Recovery of (provision for) losses on notes receivable, net		1,352
General and administrative expenses		(65,697	)
Other (expenses) income, net		10,127
Total FCF		455,271

Reconciliation of Net Income to FFO, AFFO and FCF:

	For the Nine Months Ended September 30, 2005
	FFO			AFFO			FCF
Net income	$	55,950		$	55,950		$	55,950
Total interest expense after minority partners’ share		—			—			248,663
Preferred stock dividends		(65,132	)		(65,132	)		—
Redemption related preferred stock issuance costs		(1,123	)		—			—
Proportionate share of depreciation and amortization		296,983			296,983			296,983
Depreciation and amortization related to non-real estate assets		(12,591	)		(12,591	)		—
Gain on dispositions of real estate related to unconsolidated entities and other		(12,870	)		(12,870	)		(12,870	)
Gain on dispositions of non-depreciable assets		2,450			2,450			—
Impairment losses related to real estate partnerships		—			1,709			1,709
Discontinued operations:
Income from discontinued operations, net		—			—			(68,422	)
Depreciation of rental property, net of minority partners’ interest		11,515			11,515			—
Gain on dispositions of real estate, net of minority partners’ interest		(81,101	)		(81,101	)		—
Impairment losses on real estate assets sold or held for sale, net of minority partners’ interest		—			8,395			—
Recovery of deficit distributions to minority partners		(4,333	)		(4,333	)		—
Income tax arising from disposals		2,849			2,849			—
Deficit distributions to minority partners		6,147			6,147			6,147
Capital Replacements		—			(69,340	)		(69,340	)
Dividends/distributions on dilutive preferred securities		104			—			—
Minority interest in Aimco Operating Partnership’s share of above adjustments		(21,377	)		(15,431	)		—
Minority interest in Aimco Operating Partnership		—			—			(3,549	)
Total	$	177,471		$	125,200		$	455,271

Supplemental Schedule 3

Business Component Proportionate Balance Sheet Presentation
As of September 30, 2005
(in thousands)
(unaudited)

	Consolidated			Total																		Total
	GAAP			Proportionate						Proportionate												Proportionate
	Balance Sheet			Share of			Minority			Consolidated												Consolidated
	as of			Unconsolidated			Partners’			Balance						Aimco						Balance
	September 30, 2005			Partnerships [a]			Interest [b]			Sheet [c]			Conventional			Capital			Corporate			Sheet [c]
ASSETS
Buildings and improvements	$	8,692,623		$	417,067		$	(1,187,475	)	$	7,922,215		$	7,234,377		$	687,838		$	—		$	7,922,215
Land		2,293,876			65,183			(116,941	)		2,242,118			2,130,939			111,179			—			2,242,118
Accumulated depreciation		(2,199,796	)		(95,801	)		584,513			(1,711,084	)		(1,548,494	)		(162,590	)		—			(1,711,084	)
TOTAL REAL ESTATE		8,786,703			386,449			(719,903	)		8,453,249			7,816,822			636,427			—			8,453,249
Cash and cash equivalents		139,636			8,591			(35,117	)		113,110			85,145			27,965			—			113,110
Restricted cash		314,585			33,209			(55,728	)		292,066			198,791			93,275			—			292,066
Accounts receivable		78,343			2,352			—			80,695			52,681			28,014			—			80,695
Accounts receivable from affiliates		40,495			—			—			40,495			17,990			22,505			—			40,495
Deferred financing costs		66,619			—			—			66,619			58,745			7,874			—			66,619
Notes receivable from unconsolidated real estate partnerships		178,407			—			—			178,407			117,454			60,953			—			178,407
Notes receivable from non-affiliates		27,373			—			—			27,373			18,482			8,891			—			27,373
Investment in unconsolidated real estate partnerships		177,518			(109,606	)		—			67,912			59,754			8,158			—			67,912
Other assets	239,245		[d]		27,206			—			266,451			238,513			27,938			—			266,451
Assets held for sale		214,132			—			—			214,132			199,222			14,910			—			214,132
TOTAL ASSETS	$	10,263,056			348,201		$	(810,748	)	$	9,800,509			8,863,599			936,910			—			9,800,509
LIABILITIES AND STOCKHOLDERS’ EQUITY
Secured tax-exempt bond financing	$	1,060,872		$	25,539		$	(61,751	)	$	1,024,660		$	1,002,158		$	22,502		$	—		$	1,024,660
Secured notes payable		4,598,410			256,804			(684,481	)		4,170,733			3,696,646			474,087			—			4,170,733
Term loans		400,000			—			—			400,000			—			—			400,000			400,000
Credit facility		232,000			—			—			232,000			—			—			232,000			232,000
TOTAL INDEBTEDNESS		6,291,282			282,343			(746,232	)		5,827,393			4,698,804			496,589			632,000			5,827,393
Accounts payable		44,731			65,858			—			110,589			83,400			27,189			—			110,589
Accrued liabilities and other		401,817			—			—			401,817			325,411			76,406			—			401,817
Deferred income		46,104			—			—			46,104			41,288			4,816			—			46,104
Security deposits		39,107			—			—			39,107			35,507			3,600			—			39,107
Deferred income taxes payable		8,257			—			—			8,257			8,257			—			—			8,257
Liabilities related to assets held for sale		156,703			—			—			156,703			145,747			10,956			—			156,703
TOTAL LIABILITIES		6,988,001			348,201			(746,232	)		6,589,970			5,338,414			619,556			632,000			6,589,970
Minority interest in consolidated real estate partnerships		208,991			—			(64,516	)		144,475			196,684			(52,209	)		—			144,475
Minority interest in Aimco Operating Partnership		232,018			—			—			232,018			—			—			232,018			232,018
NET OPERATING ASSETS				$	—		$	—		$	2,834,046			3,328,501			369,563			(864,018	)		2,834,046
STOCKHOLDERS’ EQUITY
Class A Common Stock		957
Additional paid-in capital		3,104,279
Perpetual preferred stock		860,250
Convertible preferred stock		150,000
Distributions in excess of earnings		(1,227,925	)
Unearned restricted stock		(27,024	)
Notes due on common stock purchases		(26,491	)
TOTAL STOCKHOLDERS’ EQUITY		2,834,046
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	10,263,056

[a]	Total of Aimco’s proportionate share of selected unconsolidated balance sheet data.
[b]	Total of minority partners’ share of selected balance sheet data. Additionally, minority partners’ share of notes receivable is $92.3 million.
[c]	Aimco’s proportionate consolidated balance sheet, which includes the GAAP balance sheet as of September 30, 2005, plus Aimco’s proportionate share of selected unconsolidated and less minority partners’ share of selected balance sheet data.
[d]	Other assets includes $88.1 million related to goodwill and $14.7 million related to investment in management contracts.

Supplemental Schedule 4

Share Data
As of September 30, 2005
(in thousands)
(unaudited)

									Shares/Units		Current Quarter			Current Quarter			Current Quarter
									Outstanding		Weighted Average			Weighted Average			Weighted Average
	Redemption								At September 30,		Outstanding Shares			Outstanding Shares			Outstanding Shares
	Date		(1)	Coupon			Amount		2005		(EPS)			(FFO)			(AFFO)
Class A Common Stock										95,700		94,041	(2)		94,041	(2)		94,041	(2)
Common stock equivalents										—		—			972			972
Common Partnership Units and equivalents										10,367		—			—			—
Total										106,067		94,041			95,013			95,013
Perpetual Preferred Stock (3):
Class G		7/15/2008			9.375	%	$	101,250		4,050		—			—			—
Class Q		3/19/2006			10.10	%		63,250		2,530		—			—			—
Class R		7/20/2006			10.00	%		173,500		6,940		—			—			—
Class T		7/31/2008			8.00	%		150,000		6,000		—			—			—
Class U		3/24/2009			7.75	%		200,000		8,000		—			—			—
Class V		9/29/2009			8.00	%		86,250		3,450		—			—			—
Class Y		12/21/2009			7.875	%		86,250		3,450
Total perpetual preferred stock							$	860,500		34,420		—			—			—
Convertible Preferred Stock:
Class W (4)		9/30/2007			8.10	%		100,000		1,905		—			—			—
Class X (4)		3/31/2006			8.50	%		50,000		2,000		—			—			—
Total convertible preferred stock							$	150,000		3,905		—			—			—
Preferred Partnership Units (5)					8.05	%	$	90,258		3,299		—			—			—
Total preferred securities							$	1,100,758		41,624		—			—			—
Total common, common equivalents and dilutive securities												94,041			95,013			95,013

(1)	The redemption date is the date the securities are first eligible for redemption by Aimco.
(2)	Includes a deduction of 1,482 for non-recourse shares and unvested restricted stock.
(3)	Preferred stock amounts are shown gross of any eliminations necessary for the GAAP Consolidated Balance Sheet.
(4)	Conversion ratio for Class W is 1.0 and for Class X is 0.4762.
(5)	Coupon is based on a weighted average.

Supplemental Schedule 5

Selected Debt Structure and Maturity Data
As of September 30, 2005
(dollars in thousands)
(unaudited)

I. Debt Balances and Data

			Proportionate							Weighted		Weighted
			Share of		Minority			Total Aimco		Average		Average
Debt	Consolidated		Unconsolidated		Interest			Share		Maturity		Rate
PropertyDebt:
Conventional Portfolio:
Fixed rate secured notes payable	$	3,522,037	$	111,804	$	(516,611	)	$	3,117,230		12.3		6.84	%
Floating rate secured notes payable		629,551		5,369		(55,504	)		579,416		2.7		4.54	%
Total secured notes payable:		4,151,588		117,173		(572,115	)		3,696,646		10.8		6.48	%
Fixed rate tax-exempt bonds		287,752		—		(13,619	)		274,133		17.7		5.88	%
Floating rate tax-exempt bonds		730,248		3,041		(5,264	)		728,025		11.8		3.13	%
Total tax-exempt bonds:		1,018,000		3,041		(18,883	)		1,002,158		13.4		3.89	%
Total Property Debt on Conventional Portfolio		5,169,588		120,214		(590,998	)		4,698,804		11.4		5.93	%
Affordable Portfolio:
Fixed rate secured notes payable		438,093		131,506		(112,366	)		457,233		18.1		5.67	%
Floating rate secured notes payable		8,729		8,125		—			16,854		3.4		4.14	%
Total secured notes payable:		446,822		139,631		(112,366	)		474,087		17.5		5.62	%
Fixed rate tax-exempt bonds		42,872		21,071		(42,868	)		21,075		27.1		3.78	%
Floating rate tax-exempt bonds		—		1,427		—			1,427		9.0		5.80	%
Total tax-exempt bonds:		42,872		22,498		(42,868	)		22,502		26.0		3.91	%
Total Property Debt on Affordable Portfolio		489,694		162,129		(155,234	)		496,589		17.9		5.54	%
Total Property Debt (1)	$	5,659,282	$	282,343	$	(746,232	)	$	5,195,393		12.0		5.89	%
Corporate Debt:
Term Loan	$	400,000	$	—	$	—		$	400,000		—		5.67	%
Credit Facility		232,000		—		—			232,000		—		5.69	%
Total Corporate Debt	$	632,000	$	—	$	—		$	632,000		—		5.68	%
Total Debt	$	6,291,282	$	282,343	$	(746,232	)	$	5,827,393		—		5.87	%

(1) The total consolidated property debt shown above excludes $149.8 million of consolidated property debt, with a weighted average interest rate of 6.4%, classified as liabilities related to assets held for sale on Aimco’s consolidated balance sheet.

II. Debt Maturities

							Percent			Average
Consolidated Property Debt	Amortization		Maturities		Total		of Total			Rate
Q4 2005	$	31,742	$	33,812	$	65,554		1.2	%		5.18	%
Q1 2006		32,504		81,373		113,877		2.0	%		7.25	%
Q2 2006		32,710		57,755		90,465		1.6	%		7.79	%
Q3 2006		33,115		33,643		66,758		1.2	%		8.57	%
Q4 2006		33,248		307,394		340,642		6.0	%		5.21	%
Q1 2007		33,632		21,555		55,187		1.0	%		6.61	%
Q2 2007		34,201		21,750		55,951		1.0	%		3.93	%
2007 (Q3 — Q4)		69,511		205,418		274,929		4.9	%		4.92	%
2008		142,744		366,346		509,090		9.0	%		4.57	%
2009		148,821		111,722		260,543		4.6	%		3.87	%
Thereafter						3,826,286		67.6	%
Total Property Debt:					$	5,659,282		100.0	%
Corporate Debt

							Percent			Average
	Amortization		Maturities		Total		of Total			Rate
2007	$	—	$	232,000	$	232,000		36.7	%		5.69	%
2009		—		400,000		400,000		63.3	%		5.67	%
Total Corporate Debt:	$	—	$	632,000	$	632,000		100.0	%		5.68	%

Supplemental Schedule 5 (Continued)

Selected Debt Structure and Maturity Data
As of September 30, 2005
(in millions)
(unaudited)

III. Loan Closings

THIRD QUARTER LOAN CLOSINGS

	Original		New		Aimco		Aimco		Aimco
	Loan		Loan		Share		Share		Net		Prior			New
Mortgage Type (all non-recourse)	Amount		Amount		Original Loan		New Loan		Proceeds (1)		Rate			Rate
Refinancings:
Fixed Rate	$	115.1	$	208.0	$	93.8	$	172.5	$	76.5		6.68	%		5.27	%
Floating Rate		12.2		15.7		8.0		12.3		4.1		6.95	%		4.59	%
Affordable, Mark-to-Market and Other		11.2		29.8		2.5		3.7		3.9		7.51	%		5.04	%
Loans Relating to Acquisitions:
Fixed Rate		—		45.0		—		15.0		14.7		—			5.26	%
Totals	$	138.5	$	298.5	$	104.3	$	203.5	$	99.2		6.77	%		5.21	%

YEAR — TO — DATE LOAN CLOSINGS

	Original		New		Aimco		Aimco		Aimco
	Loan		Loan		Share		Share		Net		Prior			New
Mortgage Type (all non-recourse)	Amount		Amount		Original Loan		New Loan		Proceeds (1)		Rate			Rate
Refinancings:
Fixed Rate	$	141.2	$	330.9	$	114.7	$	280.9	$	162.9		6.93	%		5.18	%
Floating Rate		56.6		99.8		42.9		85.3		41.1		7.97	%		4.23	%
Affordable, Mark-to-Market and Other		31.7		75.2		6.5		14.0		10.1		8.52	%		5.08	%
Loans Relating to Acquisitions:
Fixed Rate		—		62.8		—		32.8		32.2		—			5.19	%
Floating Rate		—		112.5		—		112.5		111.6		—			3.00	%
Totals	$	229.5	$	681.2	$	164.1	$	525.5	$	357.9		7.41	%		4.67	%

(1) Aimco net proceeds is after transaction costs and any release of escrow funds.

IV. Capitalization

	At						At						At
	March 31,			Percent			June 30,			Percent			September 30,			Percent
	2005			of Total			2005			of Total			2005			of Total
Corporate debt	$	576			6	%	$	675			6	%	$	632			6	%
Property debt (Aimco’s share)		5,299			50	%		5,361			48	%		5,195			49	%
Total Debt		5,875			57	%		6,036			54	%		5,827			55	%
Less: Cash and restricted cash		(364	)		-3	%		(388	)		-3	%		(405	)		-4	%
Net Debt		5,511			53	%		5,648			51	%		5,422			51	%
Preferred equity		1,101			10	%		1,101			10	%		1,101			10	%
Common equity at market (1)		3,943			37	%		4,340			39	%		4,113			39	%
Total Capitalization	$	10,555			100	%	$	11,089			100	%	$	10,636			100	%

(1) Common equity at market at September 30, 2005 was calculated using 106,067 million shares of Class A Common Stock and common partnership units outstanding multiplied by the closing price of $38.78 per share/unit on September 30, 2005.

V. Ratings on Senior Unsecured Shelf

Moody’s Investor Service	Ba1 (stable outlook)
Standard and Poors	BB+ (negative outlook)
Fitch	BBB- (negative outlook)

Supplemental Schedule 6(a)

Same Store Sales
Third Quarter 2005 versus Third Quarter 2004
(unaudited) (in thousands, except site and unit data)

																												Change Three Months Ended September 30, 2005
										Three Months Ended									Three Months Ended									From September 30, 2004
										September 30, 2005									September 30, 2004									Revenue						Expenses						NOI
		Sites		Units			Owner%			REV		EXP		NOI		Occ %			REV		EXP		NOI		Occ %			Amt			%			Amt			%			Amt			%
Northeast
	Baltimore		10		2,607			92	%		7,247		2,848		4,399					6,764		2,299		4,465					483			7.1	%		549			23.9	%		(66	)		-1.5	%
	New England		14		5,384			100	%		18,269		6,514		11,755					17,327		6,093		11,234					942			5.4	%		421			6.9	%		521			4.6	%
	Philadelphia		12		5,543			87	%		15,582		6,120		9,462					14,686		5,756		8,930					896			6.1	%		364			6.3	%		532			6.0	%
	Washington		19		9,286			89	%		26,181		9,413		16,768					25,046		8,987		16,059					1,135			4.5	%		426			4.7	%		709			4.4	%
			55		22,820			91	%		67,279		24,895		42,384		96.0	%		63,823		23,135		40,688		93.9	%		3,456			5.4	%		1,760			7.6	%		1,696			4.2	%
Southeast
	Atlanta		16		4,382			83	%		7,223		3,871		3,352					6,949		3,439		3,510					274			3.9	%		432			12.6	%		(158	)		-4.5	%
	Savannah-Augusta		5		1,004			87	%		1,671		809		862					1,635		710		925					36			2.2	%		99			13.9	%		(63	)		-6.8	%
	Charlotte-Gastonia		3		772			86	%		1,076		581		495					1,104		402		702					(28	)		-2.5	%		179			44.5	%		(207	)		-29.5	%
	Columbia-Charleston		9		2,118			74	%		3,046		1,617		1,429					2,914		1,475		1,439					132			4.5	%		142			9.6	%		(10	)		-0.7	%
	Nashville		8		2,492			74	%		4,003		1,921		2,082					3,852		1,609		2,243					151			3.9	%		312			19.4	%		(161	)		-7.2	%
	Norfolk		10		3,161			79	%		6,654		2,383		4,271					6,491		2,068		4,423					163			2.5	%		315			15.2	%		(152	)		-3.4	%
	Raleigh-Durham-Chapel Hill		7		2,170			70	%		2,486		1,519		967					2,448		1,530		918					38			1.6	%		(11	)		-0.7	%		49			5.3	%
	Richmond-Petersburg		5		1,208			80	%		2,182		836		1,346					2,181		754		1,427					1			0.0	%		82			10.9	%		(81	)		-5.7	%
	Southeast Other		14		3,041			80	%		4,344		2,373		1,971					3,882		2,558		1,324					462			11.9	%		(185	)		-7.2	%		647			48.9	%
			77		20,348			79	%		32,685		15,910		16,775		91.9	%		31,456		14,545		16,911		91.1	%		1,229			3.9	%		1,365			9.4	%		(136	)		-0.8	%
Florida
	Jacksonville		4		1,204			86	%		2,220		872		1,348					2,017		903		1,114					203			10.1	%		(31	)		-3.4	%		234			21.0	%
	Miami-Fort Lauderdale		9		2,754			81	%		7,607		3,222		4,385					6,816		3,007		3,809					791			11.6	%		215			7.1	%		576			15.1	%
	Orlando-Daytona		24		6,076			91	%		12,357		5,468		6,889					10,950		5,462		5,488					1,407			12.8	%		6			0.1	%		1,401			25.5	%
	Tampa-St. Petersburg		20		5,370			72	%		8,357		3,717		4,640					7,600		3,718		3,882					757			10.0	%		(1	)		0.0	%		758			19.5	%
	West Palm Beach-Boca		5		1,505			100	%		4,045		1,634		2,411					3,634		1,770		1,864					411			11.3	%		(136	)		-7.7	%		547			29.3	%
			62		16,909			84	%		34,586		14,913		19,673		97.0	%		31,017		14,860		16,157		94.6	%		3,569			11.5	%		53			0.4	%		3,516			21.8	%
Midwest
	Chicago		22		6,320			83	%		15,036		6,802		8,234					14,252		6,803		7,449					784			5.5	%		(1	)		0.0	%		785			10.5	%
	Cincinnati-Dayton		9		1,891			59	%		2,716		1,215		1,501					2,566		1,372		1,194					150			5.8	%		(157	)		-11.4	%		307			25.7	%
	Columbus		9		2,012			71	%		2,338		1,328		1,010					2,404		1,192		1,212					(66	)		-2.7	%		136			11.4	%		(202	)		-16.7	%
	Detroit-Ann Arbor		6		1,665			62	%		2,165		1,109		1,056					1,998		711		1,287					167			8.4	%		398			56.0	%		(231	)		-17.9	%
	Grand Rapids-Lansing		13		4,734			66	%		5,741		3,145		2,596					5,569		3,212		2,357					172			3.1	%		(67	)		-2.1	%		239			10.1	%
	Indianapolis		29		9,451			84	%		13,354		6,987		6,367					12,651		5,580		7,071					703			5.6	%		1,407			25.2	%		(704	)		-10.0	%
	Minneapolis-St Paul		5		1,430			83	%		3,517		1,772		1,745					3,266		1,674		1,592					251			7.7	%		98			5.9	%		153			9.6	%
	Midwest Other		17		5,950			76	%		7,833		4,208		3,625					7,494		3,774		3,720					339			4.5	%		434			11.5	%		(95	)		-2.6	%
			110		33,453			76	%		52,700		26,566		26,134		92.4	%		50,200		24,318		25,882		88.1	%		2,500			5.0	%		2,248			9.2	%		252			1.0	%
Texas
	Austin-San Marcos		10		2,217			93	%		3,882		2,267		1,615					3,466		1,947		1,519					416			12.0	%		320			16.4	%		96			6.3	%
	Dallas-Fort Worth		23		6,007			78	%		8,142		5,249		2,893					7,463		4,842		2,621					679			9.1	%		407			8.4	%		272			10.4	%
	Houston-Galveston		36		9,570			68	%		10,827		6,949		3,878					10,776		6,867		3,909					51			0.5	%		82			1.2	%		(31	)		-0.8	%
	San Antonio		11		2,647			94	%		4,159		2,361		1,798					4,036		2,292		1,744					123			3.0	%		69			3.0	%		54			3.1	%
	Texas Other		4		911			57	%		897		480		417					862		458		404					35			4.1	%		22			4.8	%		13			3.2	%
			84		21,352			76	%		27,907		17,306		10,601		89.2	%		26,603		16,406		10,197		86.9	%		1,304			4.9	%		900			5.5	%		404			4.0	%
West
	Denver		22		4,813			84	%		9,017		4,147		4,870					8,459		4,224		4,235					558			6.6	%		(77	)		-1.8	%		635			15.0	%
	Phoenix-Mesa		25		6,907			92	%		11,685		5,918		5,767					10,287		5,959		4,328					1,398			13.6	%		(41	)		-0.7	%		1,439			33.2	%
	Salt Lake City-Ogden		4		1,511			86	%		2,303		1,050		1,253					2,213		951		1,262					90			4.1	%		99			10.4	%		(9	)		-0.7	%
	Seattle		4		468			59	%		672		327		345					625		345		280					47			7.5	%		(18	)		-5.2	%		65			23.2	%
	West Other		8		2,296			86	%		3,482		1,743		1,739					3,269		1,579		1,690					213			6.5	%		164			10.4	%		49			2.9	%
			63		15,995			87	%		27,159		13,185		13,974		93.8	%		24,853		13,058		11,795		90.4	%		2,306			9.3	%		127			1.0	%		2,179			18.5	%
California
	Bay Area & Sacramento		5		1,291			45	%		1,704		695		1,009					1,631		770		861					73			4.5	%		(75	)		-9.7	%		148			17.2	%
	Los Angeles-Long Beach-Ventura		12		2,432			87	%		10,321		3,147		7,174					9,636		3,071		6,565					685			7.1	%		76			2.5	%		609			9.3	%
	Orange County-Riverside		7		1,651			83	%		5,250		1,686		3,564					4,815		1,592		3,223					435			9.0	%		94			5.9	%		341			10.6	%
	San Diego		6		2,123			93	%		6,649		2,110		4,539					6,167		1,942		4,225					482			7.8	%		168			8.7	%		314			7.4	%
			30		7,497			81	%		23,924		7,638		16,286		96.3	%		22,249		7,375		14,874		94.6	%		1,675			7.5	%		263			3.6	%		1,412			9.5	%
	SAME STORE SALES TOTALS		481		138,374	(2)		82	%		266,240		120,413		145,827		93.4	%		250,201		113,697		136,504		90.7	%		16,039			6.4	%		6,716			5.9	%(3)		9,323			6.8	%(3)
Reconciliation to Total Rental and other property revenues and property operating expense per GAAPIncome Statement (1)											113,310		64,665		48,645					90,915		56,203		34,712
Total Rental and other property revenues and property operating expense per GAAP Income Statement											379,550		185,078		194,472					341,116		169,900		171,216

(1)	Includes: (i) minority partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP.
(2)	Same Store Sales effective units were approximately 112,800 at September 30, 2005.
(3)	Excluding the $1.2 million impact related to uninsured hurricane and storm damages that occurred in Q3 2004, same store sales expenses would have increased 7.0% and NOI would have increased 5.9%.

Supplemental Schedule 6(b)

Same Store Sales
Third Quarter 2005 versus Second Quarter 2005
(unaudited) (in thousands, except site and unit data)

																												Change Three Months Ended September 30, 2005
										Three Months Ended									Three Months Ended									From June 30, 2005
										September 30, 2005									June 30, 2005									Revenue						Expenses						NOI
		Sites		Units			Owner%			REV		EXP		NOI		Occ %			REV		EXP		NOI		Occ %			Amt			%			Amt			%			Amt			%
Northeast
	Baltimore		10		2,607			92	%		7,247		2,848		4,399					7,011		2,660		4,351					236			3.4	%		188			7.1	%		48			1.1	%
	New England		14		5,384			100	%		18,269		6,514		11,755					18,114		6,749		11,365					155			0.9	%		(235	)		-3.5	%		390			3.4	%
	Philadelphia		12		5,543			87	%		15,582		6,120		9,462					15,208		6,050		9,158					374			2.5	%		70			1.2	%		304			3.3	%
	Washington		19		9,286			89	%		26,181		9,413		16,768					25,501		9,276		16,225					680			2.7	%		137			1.5	%		543			3.3	%
			55		22,820			92	%		67,279		24,895		42,384		96.0	%		65,834		24,735		41,099		94.5	%		1,445			2.2	%		160			0.6	%		1,285			3.1	%
Southeast
	Atlanta		16		4,382			83	%		7,223		3,871		3,352					6,895		3,917		2,978					328			4.8	%		(46	)		-1.2	%		374			12.6	%
	Savannah-Augusta		5		1,004			87	%		1,671		809		862					1,672		749		923					(1	)		-0.1	%		60			8.0	%		(61	)		-6.6	%
	Charlotte-Gastonia		3		772			86	%		1,076		581		495					1,081		604		477					(5	)		-0.5	%		(23	)		-3.8	%		18			3.8	%
	Columbia-Charleston		9		2,118			74	%		3,046		1,617		1,429					2,890		1,502		1,388					156			5.4	%		115			7.7	%		41			3.0	%
	Nashville		8		2,492			74	%		4,003		1,921		2,082					3,792		1,685		2,107					211			5.6	%		236			14.0	%		(25	)		-1.2	%
	Norfolk		10		3,161			79	%		6,654		2,383		4,271					6,497		2,328		4,169					157			2.4	%		55			2.4	%		102			2.4	%
	Raleigh-Durham-Chapel Hill		7		2,170			70	%		2,486		1,519		967					2,468		1,384		1,084					18			0.7	%		135			9.8	%		(117	)		-10.8	%
	Richmond-Petersburg		5		1,208			80	%		2,182		836		1,346					2,155		840		1,315					27			1.3	%		(4	)		-0.5	%		31			2.4	%
	Southeast Other		14		3,041			80	%		4,344		2,373		1,971					4,190		2,117		2,073					154			3.7	%		256			12.1	%		(102	)		-4.9	%
			77		20,348			81	%		32,685		15,910		16,775		91.9	%		31,640		15,126		16,514		89.8	%		1,045			3.3	%		784			5.2	%		261			1.6	%
Florida
	Jacksonville		4		1,204			86	%		2,220		872		1,348					2,145		832		1,313					75			3.5	%		40			4.8	%		35			2.7	%
	Miami-Fort Lauderdale		9		2,754			81	%		7,607		3,222		4,385					7,267		2,835		4,432					340			4.7	%		387			13.7	%		(47	)		-1.1	%
	Orlando-Daytona		24		6,076			91	%		12,357		5,468		6,889					12,063		5,091		6,972					294			2.4	%		377			7.4	%		(83	)		-1.2	%
	Tampa-St. Petersburg		20		5,370			72	%		8,357		3,717		4,640					8,106		3,509		4,597					251			3.1	%		208			5.9	%		43			0.9	%
	West Palm Beach-Boca		5		1,505			100	%		4,045		1,634		2,411					3,914		1,527		2,387					131			3.3	%		107			7.0	%		24			1.0	%
			62		16,909			83	%		34,586		14,913		19,673		97.0	%		33,495		13,794		19,701		96.1	%		1,091			3.3	%		1,119			8.1	%		(28	)		-0.1	%
Midwest
	Chicago		22		6,320			83	%		15,036		6,802		8,234					14,691		6,378		8,313					345			2.3	%		424			6.6	%		(79	)		-1.0	%
	Cincinnati-Dayton		9		1,891			59	%		2,716		1,215		1,501					2,706		1,300		1,406					10			0.4	%		(85	)		-6.5	%		95			6.8	%
	Columbus		9		2,012			71	%		2,338		1,328		1,010					2,278		1,463		815					60			2.6	%		(135	)		-9.2	%		195			23.9	%
	Detroit-Ann Arbor		6		1,665			62	%		2,165		1,109		1,056					2,030		1,063		967					135			6.7	%		46			4.3	%		89			9.2	%
	Grand Rapids-Lansing		13		4,734			66	%		5,741		3,145		2,596					5,411		3,161		2,250					330			6.1	%		(16	)		-0.5	%		346			15.4	%
	Indianapolis		29		9,451			84	%		13,354		6,987		6,367					12,856		7,197		5,659					498			3.9	%		(210	)		-2.9	%		708			12.5	%
	Minneapolis-St Paul		5		1,430			83	%		3,517		1,772		1,745					3,181		1,617		1,564					336			10.6	%		155			9.6	%		181			11.6	%
	Midwest Other		17		5,950			76	%		7,833		4,208		3,625					7,495		3,898		3,597					338			4.5	%		310			8.0	%		28			0.8	%
			110		33,453			78	%		52,700		26,566		26,134		92.4	%		50,648		26,077		24,571		89.5	%		2,052			4.1	%		489			1.9	%		1,563			6.4	%
Texas
	Austin-San Marcos		10		2,217			93	%		3,882		2,267		1,615					3,759		1,938		1,821					123			3.3	%		329			17.0	%		(206	)		-11.3	%
	Dallas-Fort Worth		23		6,007			78	%		8,142		5,249		2,893					7,750		4,087		3,663					392			5.1	%		1,162			28.4	%		(770	)		-21.0	%
	Houston-Galveston		36		9,570			68	%		10,827		6,949		3,878					10,390		5,903		4,487					437			4.2	%		1,046			17.7	%		(609	)		-13.6	%
	San Antonio		11		2,647			94	%		4,159		2,361		1,798					3,940		1,975		1,965					219			5.6	%		386			19.5	%		(167	)		-8.5	%
	Texas Other		4		911			57	%		897		480		417					870		396		474					27			3.1	%		84			21.2	%		(57	)		-12.0	%
			84		21,352			76	%		27,907		17,306		10,601		89.2	%		26,709		14,299		12,410		86.3	%		1,198			4.5	%		3,007			21.0	%		(1,809	)		-14.6	%
West
	Denver		22		4,813			84	%		9,017		4,147		4,870					8,183		3,845		4,338					834			10.2	%		302			7.9	%		532			12.3	%
	Phoenix-Mesa		25		6,907			92	%		11,685		5,918		5,767					11,019		5,446		5,573					666			6.0	%		472			8.7	%		194			3.5	%
	Salt Lake City-Ogden		4		1,511			86	%		2,303		1,050		1,253					2,178		968		1,210					125			5.7	%		82			8.5	%		43			3.6	%
	Seattle		4		468			59	%		672		327		345					645		316		329					27			4.2	%		11			3.5	%		16			4.9	%
	West Other		8		2,296			86	%		3,482		1,743		1,739					3,346		1,543		1,803					136			4.1	%		200			13.0	%		(64	)		-3.5	%
			63		15,995			87	%		27,159		13,185		13,974		93.8	%		25,371		12,118		13,253		89.5	%		1,788			7.0	%		1,067			8.8	%		721			5.4	%
California
	Bay Area & Sacramento		5		1,291			45	%		1,704		695		1,009					1,667		714		953					37			2.2	%		(19	)		-2.7	%		56			5.9	%
	Los Angeles-Long Beach-Ventura		12		2,432			87	%		10,321		3,147		7,174					9,738		2,998		6,740					583			6.0	%		149			5.0	%		434			6.4	%
	Orange County-Riverside		7		1,651			83	%		5,250		1,686		3,564					5,000		1,515		3,485					250			5.0	%		171			11.3	%		79			2.3	%
	San Diego		6		2,123			93	%		6,649		2,110		4,539					6,410		2,006		4,404					239			3.7	%		104			5.2	%		135			3.1	%
			30		7,497			80	%		23,924		7,638		16,286		96.3	%		22,815		7,233		15,582		95.0	%		1,109			4.9	%		405			5.6	%		704			4.5	%
	SAME STORE SALES TOTALS		481		138,374	(2)		82	%		266,240		120,413		145,827		93.4	%		256,512		113,382		143,130		91.0	%		9,728			3.8	%		7,031			6.2	%		2,697			1.9	%
Reconciliation to Total Rental and other property revenues and property operating expense per GAAP Income Statement (1)											113,310		64,665		48,645					110,114		58,450		51,664
Total Rental and other property revenues and property operating expense per GAAP Income Statement											379,550		185,078		194,472					366,626		171,832		194,794

(1)	Includes: (i) minority partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP.
(2)	Same Store Sales effective units were approximately 112,800 at September 30, 2005.

Supplemental Schedule 6(c)

Same Store Sales
Nine Months Ended 2005 versus Nine Months Ended 2004
(unaudited) (in thousands, except site and unit data)

																					Change Nine Months Ended September 30, 2005
									Nine Months Ended						Nine Months Ended						From September 30, 2004
									September 30, 2005						September 30, 2004						Revenue						Expenses						NOI
		Sites		Units		Owner%			REV		EXP		NOI		REV		EXP		NOI		Amt			%			Amt			%			Amt			%
Northeast
	Baltimore		10		2,607		92	%		21,090		8,436		12,654		19,932		7,576		12,356		1,158			5.8	%		860			11.4	%		298			2.4	%
	New England		14		5,384		100	%		53,609		20,187		33,422		51,047		18,654		32,393		2,562			5.0	%		1,533			8.2	%		1,029			3.2	%
	Philadelphia		11		5,193		87	%		42,604		17,077		25,527		41,273		16,158		25,115		1,331			3.2	%		919			5.7	%		412			1.6	%
	Washington		19		9,286		89	%		76,569		28,251		48,318		73,196		26,404		46,792		3,373			4.6	%		1,847			7.0	%		1,526			3.3	%
			54		22,470		91	%		193,872		73,951		119,921		185,448		68,792		116,656		8,424			4.5	%		5,159			7.5	%		3,265			2.8	%
Southeast
	Atlanta		16		4,382		83	%		20,917		11,227		9,690		20,072		10,222		9,850		845			4.2	%		1,005			9.8	%		(160	)		-1.6	%
	Savannah-Augusta		5		1,004		87	%		4,923		2,197		2,726		4,738		1,945		2,793		185			3.9	%		252			13.0	%		(67	)		-2.4	%
	Charlotte-Gastonia		3		772		86	%		3,243		1,709		1,534		3,247		1,426		1,821		(4	)		-0.1	%		283			19.8	%		(287	)		-15.8	%
	Columbia-Charleston		9		2,118		74	%		8,740		4,468		4,272		8,481		4,073		4,408		259			3.1	%		395			9.7	%		(136	)		-3.1	%
	Nashville		8		2,492		74	%		11,533		5,135		6,398		11,105		4,440		6,665		428			3.9	%		695			15.7	%		(267	)		-4.0	%
	Norfolk		10		3,161		79	%		19,355		6,863		12,492		18,916		6,129		12,787		439			2.3	%		734			12.0	%		(295	)		-2.3	%
	Raleigh-Durham-Chapel Hill		7		2,170		70	%		7,465		4,189		3,276		7,184		3,857		3,327		281			3.9	%		332			8.6	%		(51	)		-1.5	%
	Richmond-Petersburg		5		1,208		80	%		6,418		2,448		3,970		6,470		2,251		4,219		(52	)		-0.8	%		197			8.8	%		(249	)		-5.9	%
	Southeast Other		14		3,041		80	%		12,653		6,584		6,069		11,458		6,679		4,779		1,195			10.4	%		(95	)		-1.4	%		1,290			27.0	%
			77		20,348		79	%		95,247		44,820		50,427		91,671		41,022		50,649		3,576			3.9	%		3,798			9.3	%		(222	)		-0.4	%
Florida
	Jacksonville		4		1,204		86	%		6,456		2,541		3,915		5,972		2,515		3,457		484			8.1	%		26			1.0	%		458			13.2	%
	Miami-Fort Lauderdale		9		2,754		81	%		21,945		8,898		13,047		20,010		8,519		11,491		1,935			9.7	%		379			4.4	%		1,556			13.5	%
	Orlando-Daytona		24		6,076		91	%		36,198		15,654		20,544		31,712		15,309		16,403		4,486			14.1	%		345			2.3	%		4,141			25.2	%
	Tampa-St. Petersburg		20		5,370		72	%		24,376		10,740		13,636		21,857		10,151		11,706		2,519			11.5	%		589			5.8	%		1,930			16.5	%
	West Palm Beach-Boca		5		1,505		100	%		11,870		4,792		7,078		10,590		4,673		5,917		1,280			12.1	%		119			2.5	%		1,161			19.6	%
			62		16,909		84	%		100,845		42,625		58,220		90,141		41,167		48,974		10,704			11.9	%		1,458			3.5	%		9,246			18.9	%
Midwest
	Chicago		22		6,320		83	%		44,197		19,808		24,389		42,568		19,612		22,956		1,629			3.8	%		196			1.0	%		1,433			6.2	%
	Cincinnati-Dayton		8		1,601		59	%		6,413		3,028		3,385		5,969		2,986		2,983		444			7.4	%		42			1.4	%		402			13.5	%
	Columbus		9		2,012		71	%		6,859		3,902		2,957		7,332		3,320		4,012		(473	)		-6.5	%		582			17.5	%		(1,055	)		-26.3	%
	Detroit-Ann Arbor		6		1,665		62	%		6,119		3,300		2,819		6,260		2,627		3,633		(141	)		-2.3	%		673			25.6	%		(814	)		-22.4	%
	Grand Rapids-Lansing		13		4,734		66	%		16,598		9,198		7,400		16,242		8,865		7,377		356			2.2	%		333			3.8	%		23			0.3	%
	Indianapolis		28		8,869		86	%		37,038		19,861		17,177		35,514		17,106		18,408		1,524			4.3	%		2,755			16.1	%		(1,231	)		-6.7	%
	Minneapolis-St Paul		5		1,430		83	%		10,036		5,064		4,972		9,882		5,019		4,863		154			1.6	%		45			0.9	%		109			2.2	%
	Midwest Other		16		5,470		78	%		21,485		11,099		10,386		21,077		10,358		10,719		408			1.9	%		741			7.2	%		(333	)		-3.1	%
			107		32,101		78	%		148,745		75,260		73,485		144,844		69,893		74,951		3,901			2.7	%		5,367			7.7	%		(1,466	)		-2.0	%
Texas
	Austin-San Marcos		10		2,217		93	%		11,340		6,141		5,199		10,350		5,709		4,641		990			9.6	%		432			7.6	%		558			12.0	%
	Dallas-Fort Worth		23		6,007		78	%		23,596		13,665		9,931		21,770		13,038		8,732		1,826			8.4	%		627			4.8	%		1,199			13.7	%
	Houston-Galveston		36		9,570		68	%		31,718		19,029		12,689		31,120		17,981		13,139		598			1.9	%		1,048			5.8	%		(450	)		-3.4	%
	San Antonio		11		2,647		94	%		12,021		6,271		5,750		11,681		6,065		5,616		340			2.9	%		206			3.4	%		134			2.4	%
	Texas Other		4		911		57	%		2,627		1,303		1,324		2,497		1,218		1,279		130			5.2	%		85			7.0	%		45			3.5	%
			84		21,352		76	%		81,302		46,409		34,893		77,418		44,011		33,407		3,884			5.0	%		2,398			5.4	%		1,486			4.4	%
West
	Denver		22		4,813		84	%		25,380		11,692		13,688		24,356		11,620		12,736		1,024			4.2	%		72			0.6	%		952			7.5	%
	Phoenix-Mesa		25		6,907		92	%		33,429		16,643		16,786		29,297		15,991		13,306		4,132			14.1	%		652			4.1	%		3,480			26.2	%
	Salt Lake City-Ogden		4		1,511		86	%		6,675		2,949		3,726		6,335		2,652		3,683		340			5.4	%		297			11.2	%		43			1.2	%
	Seattle		4		468		59	%		1,949		958		991		1,825		949		876		124			6.8	%		9			0.9	%		115			13.1	%
	West Other		8		2,296		86	%		10,101		4,812		5,289		9,314		4,417		4,897		787			8.4	%		395			8.9	%		392			8.0	%
			63		15,995		87	%		77,534		37,054		40,480		71,127		35,629		35,498		6,407			9.0	%		1,425			4.0	%		4,982			14.0	%
California
	Bay Area & Sacramento		5		1,291		45	%		5,032		2,091		2,941		4,834		2,075		2,759		198			4.1	%		16			0.8	%		182			6.6	%
	Los Angeles-Long Beach-Ventura		12		2,432		87	%		29,688		8,998		20,690		28,003		9,021		18,982		1,685			6.0	%		(23	)		-0.3	%		1,708			9.0	%
	Orange County-Riverside		7		1,651		83	%		15,196		4,744		10,452		13,959		4,839		9,120		1,237			8.9	%		(95	)		-2.0	%		1,332			14.6	%
	San Diego		6		2,123		93	%		19,356		6,081		13,275		17,901		5,411		12,490		1,455			8.1	%		670			12.4	%		785			6.3	%
			30		7,497		81	%		69,272		21,914		47,358		64,697		21,346		43,351		4,575			7.1	%		568			2.7	%		4,007			9.2	%
	SAME STORE SALES TOTALS		477		136,672		82	%		766,817		342,033		424,784		725,346		321,860		403,486		41,471			5.7	%		20,173			6.3	% (2)		21,298			5.3	% (2)
Reconciliation to Total Rental and other property revenues and property operating expense per GAAP Income Statement (1)										332,966		186,723		146,243		259,802		152,583		107,219
Total Rental and other property revenues and property operating expense per GAAP Income Statement										1,099,783		528,756		571,027		985,148		474,443		510,705

(1)	Includes: (i) minority partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP.
(2)	Excluding the $1.2 million impact related to uninsured hurricane and storm damages that occurred in Q3 2004, same store sales expenses would have increased 6.7% and NOI would have increased 5.0%.

Supplemental Schedule 7

Selected Portfolio Performance Data
(unaudited)

PORTFOLIO SUMMARY
SAME STORE PERFORMANCE

	SAME STORE PORTFOLIO
	CORE			NON-CORE			TOTAL
Rent, average third quarter 2005	$	872		$	587		$	764
Occupancy, average third quarter 2005		94.8	%		91.0	%		93.4	%
Operating Margin		58.4	%		43.9	%		54.8	%
Total # of Properties		283			198			481
Total # of Units		84,926			53,448			138,374
Proportionate Owned Units		73,761			39,027			112,788
% of Total Same Store NOI		79.7	%		20.3	%		100.0	%
3rd Quarter 2005 vs 3rd Quarter 2004
Revenue		6.6	%		5.8	%		6.4	%
Expenses		5.9	%		5.9	%		5.9	%
NOI		7.1	%		5.6	%		6.8	%
Sequential, 3rd Quarter 2005 vs 2nd Quarter 2005
Revenue		3.7	%		3.9	%		3.8	%
Expenses		5.0	%		8.9	%		6.2	%
NOI		2.9	%		-1.8	%		1.9	%
YTD September 2005 vs. YTD September 2004
Revenue		5.8	%		5.5	%		5.7	%
Expenses		5.8	%		7.2	%		6.3	%
NOI		5.8	%		3.5	%		5.3	%

TOTAL CONVENTIONAL PORTFOLIO: SUMMARY BY MARKET
SELECTED MARKETS

	Quarter Ended September 30, 2005									Quarter Ended September 30, 2004
	TOTAL CONVENTIONAL PORTFOLIO									TOTAL CONVENTIONAL PORTFOLIO
% of Total Conventional NOI	CORE			NON-CORE			TOTAL			CORE			NON-CORE			TOTAL
Top 20 Markets
1 Washington, D.C.		10.4	%		0.3	%		10.7	%		11.0	%		1.2	%		12.2	%
2 Los Angeles-Long Beach-Ventura		7.4	%		0.0	%		7.4	%		7.4	%		0.0	%		7.4	%
3 Philadelphia		7.3	%		0.0	%		7.3	%		5.8	%		0.0	%		5.8	%
4 New England		7.1	%		0.0	%		7.1	%		7.0	%		0.0	%		7.0	%
5 Miami-Fort Lauderdale		5.8	%		0.0	%		5.8	%		3.7	%		0.0	%		3.7	%
6 Chicago		4.6	%		0.3	%		4.9	%		4.4	%		0.2	%		4.6	%
7 Orlando-Daytona		3.5	%		0.6	%		4.1	%		2.8	%		0.6	%		3.4	%
8 Indianapolis		1.4	%		2.4	%		3.8	%		2.6	%		1.8	%		4.4	%
9 Phoenix-Mesa		2.4	%		1.0	%		3.4	%		1.7	%		1.3	%		3.0	%
10 Denver		2.8	%		0.1	%		2.9	%		2.6	%		0.2	%		2.8	%
11 Tampa-St. Petersburg		2.0	%		0.7	%		2.7	%		1.8	%		0.7	%		2.5	%
12 San Diego		2.6	%		0.0	%		2.6	%		2.8	%		0.0	%		2.8	%
13 Baltimore		2.6	%		0.0	%		2.6	%		2.6	%		0.1	%		2.7	%
14 Norfolk		2.5	%		0.0	%		2.5	%		2.3	%		0.3	%		2.6	%
15 Houston-Galveston		1.2	%		1.1	%		2.3	%		2.0	%		0.4	%		2.4	%
16 Orange County-Riverside		2.2	%		0.0	%		2.2	%		2.2	%		0.0	%		2.2	%
17 Atlanta		1.7	%		0.3	%		2.0	%		2.0	%		0.8	%		2.8	%
18 Cincinnati-Dayton		0.8	%		0.9	%		1.7	%		0.7	%		1.0	%		1.7	%
19 Dallas-Fort Worth		0.6	%		1.1	%		1.7	%		0.8	%		0.8	%		1.6	%
20 New York		1.7	%		0.0	%		1.7	%		1.0	%		0.0	%		1.0	%
Subtotal Top 20 Markets		70.6	%		8.8	%		79.4	%		67.2	%		9.4	%		76.6	%
All Other Markets (45 in 2005 and 50 in 2004)		9.5	%		11.1	%		20.6	%		12.7	%		10.7	%		23.4	%
Total Conventional NOI		80.1	%		19.9	%		100.0	%		79.9	%		20.1	%		100.0	%
Rent, average third quarter	$	901		$	588		$	783		$	804		$	560		$	728
Occupancy, average third quarter		93.0	%		90.9	%		92.2	%		92.5	%		90.8	%		92.0	%
Total # of Properties		328			238			566			379			232			611
Total # of Units		99,114			61,213			160,327			114,573			54,589			169,162
Proportionate Owned Units		84,801			45,513			130,314			91,376			43,467			134,843
Average Home Value*	$	214,089		$	138,384		$	182,679
REIS Growth Rate (4 year weighted average)**		3.3	%		2.5	%		3.0	%

*	Source: Claritas, based on 2004 data
**	Source: REIS, based on Q1 2005 forecasted data

Supplemental Schedule 8

Property Sales and Acquisition Activity
(unaudited)

THIRD QUARTER 2005 PROPERTY SALES ACTIVITY

	Number		Number		Gross					Property		Net Sales		Aimco Gross		Aimco Net		Average
	of		of		Proceeds		FCF (1)			Debt		Proceeds (2)		Proceeds		Proceeds		Rent
	Properties		Units		($mm)		Yield			($mm)		($mm)		($mm)		($mm)		($/unit)
Conventional Non-Core		24		4,867	$	284		5.1	%	$	136	$	130	$	259	$	121	$	726
Affordable		12		1,511		50		6.9	%		29		21		17		9		625
Total Dispositions		36		6,378	$	334		5.3	%	$	165	$	151	$	276	$	130	$	702

YEAR — TO — DATE 2005 PROPERTY SALES ACTIVITY

	Number		Number		Gross					Property		Net Sales		Aimco Gross		Aimco Net		Average
	of		of		Proceeds		FCF(1)			Debt		Proceeds(2)		Proceeds		Proceeds		Rent
	Properties		Units		($mm)		Yield			($mm)		($mm)		($mm)		($mm)		($/unit)
Conventional Non-Core		32		6,559	$	379		5.1	%	$	171	$	183	$	330	$	160	$	712
Affordable		33		3,858		144		6.6	%		73		62		73		41		638
Total Dispositions (3)(4)		65		10,417	$	523		5.5	%	$	244	$	245	$	403	$	201	$	685

(1)	Free Cash Flow (FCF) includes a $525 per unit deduction for capital replacements and is before debt service. FCF Yield is calculated as the FCF earned by the properties during the 12 months prior to their sale divided by the sales price
(2)	Net Sales Proceeds are after repayment of existing debt, net working capital settlements and payment of transaction costs
(3)	Activity provided in the table above does not include sales of certain general partner interests that generated net proceeds to Aimco of $1.9 million to date in 2005
(4)	Activity provided in the table above does not include certain affiliate sales associated with tax credit transactions that generated net proceeds to Aimco of $1.4 million to date in 2005

THIRD QUARTER 2005 PROPERTY ACQUISITION ACTIVITY

Number

Number

Gross

Property

Average

Ownership

of

of

Purchase

Debt

Rent

Percent

Properties

Units

Price ($mm)

($mm)

($/unit)

University communities (3)

33

%

1

514

$

71

$

45

$

1,156

YEAR — TO — DATE 2005 PROPERTY ACQUISITION ACTIVITY

				Number		Number		Gross		Property		Average
	Ownership			of		of		Purchase		Debt		Rent
	Percent			Properties		Units		Price ($mm)		($mm)		($/unit)
Conventional (2)		100	%		6		1,012	$	281	$	169	$	2,532
University communities (1)(3)		33	%		1		514		71		45		1,156
Total Acquisitions					7		1,526	$	352	$	214	$	2,068

(1)	Year-to-date acquisition activity does not include Chestnut Hall, a 315-unit property, acquired through Aimco’s joint venture with CalSTRS and under a confidential partnership agreement with the University of Pennsylvania.
(2)	Properties acquired are located in New York City (4 properties), Los Angeles, CA and Edgewater, NJ.
(3)	Property acquired is located near the California Polytechnic State University in San Luis Obispo, CA

Supplemental Schedule 9

Capital Expenditures
For the Nine Months Ended September 30, 2005
(in thousands, except per unit)
(unaudited)

All capital spending is classified as either Capital Replacements (“CR”), Capital Improvements (“CI”), casualties or redevelopment. Non-redevelopment and non-casualty capitalizable expenditures are apportioned between CR and CI based on the useful life of the capital item under consideration and the period 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.

The table below details Aimco’s share of actual spending, on both consolidated and unconsolidated real estate partnerships, for Capital Replacements, Capital Improvements, casualties and redevelopment for the nine months ended September 30, 2005 (per unit is based on approximately 152,360 units which represent effective units (excluding non-managed units) weighted for the period):

	Actual Amount			Per Unit
Capital Replacements Detail:
Building Interiors	$	11,092		$	73
Includes: Hot water heaters, kitchen/bath
Building Exteriors		11,130			73
Includes: Roofs, exterior painting, electrical, plumbing
Landscaping and Grounds		6,258			41
Includes: Parking lot improvements, pool improvements
Turnover Related		29,689			195
Includes: Carpet, vinyl, tile, appliance and fixture replacements
Capitalized site payroll and indirect costs		11,171			73
Total Aimco’s share of Capital Replacements	$	69,340		$	455
Capital Replacements:
Conventional		65,217
Affordable		4,123
Total Aimco’s share of Capital Replacements	$	69,340
Capital Improvements:
Conventional		70,800
Affordable		14,310
Total Aimco’s share of Capital Improvements	$	85,110
Casualties:
Conventional		15,128
Affordable		1,062
Total Aimco’s share of Casualties	$	16,190
Redevelopment (see Schedule 10 for further project details):
Conventional		96,404
Affordable		2,073
Total Aimco’s share of Redevelopment	$	98,477
Total Aimco’s share of Capital Expenditures	$	269,117
Plus minority partners’ share of consolidated spending		63,225
Less Aimco’s share of unconsolidated spending		(8,296	)
Total Spending per Consolidated Statement of Cash Flows	$	324,046

Supplemental Schedule 10

Summary of 2005 Redevelopment Activity
As of September 30, 2005
(in millions, except unit data)
(values are not adjusted for Aimco’s ownership unless indicated)
(unaudited)

						Cost in Millions											Redevelopment Timeline								Number of Units
						Total
						Expected		Inception to		Year to		Year to
				Number		Spend at		Date Spend at		Date Spend		Date Spend		Expected					Construction		Construction								Out of
Property (2)                     City, State	Ownership %			of Units		100%		100%		at 100%		at AIV%		NOI Yield			Acquisition		Start		Complete		Stabilization		Completed		Leased (1)		Service
Redevelopment — Major Project Detail
Flamingo South Beach            Miami Beach, FL		99.1	%		1,688	$	287.3	$	287.3	$	6.7	$	5.6		5	%		Q31997		Q3 1997		Q1 2004		Q3 2005		1,688		1,577		—
Belmont Place            Marietta, GA		63.1	%		326		32.4		31.2		10.2		6.5		9	%		Q21998		Q4 2003		Q3 2005		Q3 2005		326		314		—
	Subtotal				2,014	$	319.7	$	318.5	$	16.9	$	12.1													2,014		1,891		—
Redevelopment — Other Projects
Conventional	31 properties				14,301	$	195.3	$	87.8	$	61.9	$	51.3
Affordable / Tax Credit	17 properties				2,934		114.2		75.2		23.8		2.5
Other Redevelopment											37.9		32.6
	Subtotal				17,235	$	309.5	$	163.0	$	123.6	$	86.4
	Total				19,249	$	629.2	$	481.5	$	140.5	$	98.5

(1)  Leased units include pre-leased.

(2)  Excludes approved projects for which construction budgets and scopes are not finalized.

Supplemental Schedule 11

Apartment Unit Summary
As of September 30, 2005
(unaudited)

					Aimco’s		Aimco’s
	Total		Total		Effective		Average
	# Properties		# Units		# Units		Ownership %
Conventional Real Estate Portfolio:
Wholly-owned Consolidated Core Properties		197		55,410		55,410		100	%
Partially-owned Consolidated Core Properties		109		37,368		27,204		73	%
Partially-owned Unconsolidated Core Properties		22		6,336		2,187		35	%
Sub-total Core Properties		328		99,114		84,801		86	%
Wholly-owned Consolidated Non-Core Properties		118		32,395		32,395		100	%
Partially-owned Consolidated Non-Core Properties		90		23,265		11,298		49	%
Partially-owned Unconsolidated Non-Core Properties		30		5,553		1,820		33	%
Sub-total Non-Core Properties		238		61,213		45,513		74	%
Total		566		160,327		130,314		81	%
Aimco Capital Real Estate Portfolio:
Wholly-owned Consolidated Properties		73		9,518		9,518		100	%
Partially-owned Consolidated Properties		64		8,131		3,368		41	%
Partially-owned Unconsolidated Properties		234		26,702		5,206		19	%
Total		371		44,351		18,092		41	%
Total Owned Real Estate Portfolio:
Wholly-owned Consolidated Properties		388		97,323		97,323		100	%
Partially-owned Consolidated Properties		263		68,764		41,870		61	%
Partially-owned Unconsolidated Properties		286		38,591		9,213		24	%
Total		937		204,678		148,406		73	%
Management Contracts:
Property Managed for Third Parties		53		5,133
Asset-managed		434		41,439
Total		487		46,572
Total Portfolio		1,424		251,250

GLOSSARY OF NON-GAAP FINANCIAL AND OPERATING MEASURES: Financial and operating measures found in the Earnings Release and Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with generally accepted accounting principles, or GAAP. These measures are defined below and, where appropriate, reconciled on the accompanying Supplemental Schedules to the most comparable GAAP measures.

ACQUISITION PROPERTIES: Consolidated properties owned less than one year as of the beginning of the most recent quarter.

AFFORDABLE PROPERTIES: Affordable properties benefit from government programs designed to pay rental income on behalf of people with low or moderate incomes and includes properties that were owned for all periods presented.

ADJUSTED FUNDS FROM OPERATIONS (AFFO): AFFO is FFO (diluted) less Capital Replacement expenditures, plus non-cash charges for redemption related preferred stock issuance costs and impairment losses, all of which are adjusted for the Aimco operating partnership’s share (AIMCO Properties, L.P.). Similar to FFO, AFFO is helpful to investors in understanding Aimco’s performance because it captures 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. Please see Supplemental Schedule I for AFFO data reconciled to net income as determined in accordance with GAAP.

CAPITAL IMPROVEMENTS (CI): CI expenditures include all non-redevelopment capital expenditures that are made to enhance the value, profitability or useful life of an asset from its original purchase condition. This category combines certain of Aimco’s prior capital expenditure categories. This new classification, along with Capital Replacements, is intended to be simpler to apply, allow more discrete differentiation between categories, facilitate sound economic decisions, and assist investors and analysts in better understanding capital spending. CI expenditures are a component of capital expenditures in the GAAP Statement of Cash Flows.

CAPITAL REPLACEMENTS (CR): CR expenditures do not increase the value, profitability or useful life of an asset from its original purchase condition. They represent the share of expenditures that are deemed to replace the consumed portion of acquired capital assets. CR expenditures are deducted in the calculation of AFFO and FCF. Please refer to Schedule 9 for further detail. CR expenditures are a component of Capital expenditures in the GAAP Statement of Cash Flows.

CASUALTY CAPITAL EXPENDITURES: Casualty capital expenditures represent capitalized costs incurred in connection with casualty losses and are associated with the restoration of the asset. A portion of the restoration costs is reimbursed by insurance carriers based on deductibles associated with each loss.

CORE PROPERTIES: Conventional properties located in selected markets that Aimco intends to hold and improve over the long-term.

EFFECTIVE UNITS: Unit count at 100% ownership multiplied by Aimco’s ownership share.

FREE CASH FLOW (FCF): FCF is net operating income from real estate minus CR spending. FCF also includes cash flows generated from the investment management business, interest income, general and administrative expenses, provision for or recovery of losses on notes receivable and other expenses (income), net incurred by Aimco. FCF measures profitability of operations and is prior to the cost of capital. Because Aimco has substantial unconsolidated real estate interests, it is useful for management and investors to understand, in addition to consolidated cash flows, cash flows related to Aimco’s unconsolidated real estate holdings. Please see Supplemental Schedule 2 for FCF data reconciled to net income as determined in accordance with GAAP.

FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance defined by the National Association of Real Estate Investment Trusts (NAREIT) as net income, computed in accordance with GAAP, excluding gains from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Aimco computes FFO for all periods presented in accordance with the guidance set forth by NAREIT’s April 1, 2002 White Paper. Aimco calculates FFO (diluted) by subtracting redemption related preferred stock issuance costs and dividends on preferred stock and adding back dividends/ distributions on dilutive preferred securities. FFO is helpful to investors in understanding Aimco’s performance because it captures 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 is comparable with that of other real estate investment trusts.

Please see Supplemental Schedule 1 for FFO data reconciled to net income as determined in accordance with GAAP.

NON-CORE PROPERTIES: Properties located in markets that are not considered selected markets or in less favored locations within selected markets, which Aimco intends to hold for the intermediate term.

OTHER EXPENSES (INCOME), NET: Other expenses (income), net includes tax provision/benefit, franchise taxes, risk management activities related to our unconsolidated partnerships and partnership expenses (partnership level expenses incurred directly or indirectly for services such as audit, tax and legal.)

OTHER PROPERTIES: Properties that are not multi-family such as commercial properties or fitness facilities.

REDEVELOPMENT PROPERTIES: Properties where (1) a substantial number of available units have been vacated for major renovations or have not been stabilized in occupancy for at least one year as of the earliest period presented, or (2) other significant renovation, such as exteriors, common areas or unit improvements (done upon lease expirations), is underway or has been complete for less than one year, as of the earliest period presented. In both cases the properties have been removed from the Same Store portfolio.

SAME STORE: Same Store is used commonly to describe conventional properties managed by Aimco, in which Aimco’s ownership exceeds 10% and that have reached a stabilized level of occupancy during both the current and comparable prior year period. Further, these properties would not be classified as held for sale. These results measure operating performance without variations caused by investment transactions. Aimco provides data for consolidated Same Store properties as well as its proportionate share of consolidated and unconsolidated Same Store properties. To ensure comparability, the information for all periods shown is based on current period ownership. Please see Supplemental Schedules 6a through 6c for Same Store data reconciled to rental and other property revenues and property operating expense as determined in accordance with GAAP.