EX-99.2 3 c75048exv99w2.htm EXHIBIT 99.2 Filed by Bowne Pure Compliance

Exhibit 99.2

Apartment Investment and Management Company
Financial and Share Information Adjusted for Special Dividends - September 2008

In December 2007, Aimco declared a special dividend, which was paid in a combination of cash and stock. In July 2008, Aimco declared a second special dividend, also payable in a combination of cash and stock. Accounting principles generally accepted in the United States (GAAP) require that all reported per share data, for current and prior periods, be adjusted to reflect the issuance of the shares in connection with these special dividends as if such shares had been issued at the beginning of the earliest period presented.

The purpose of this document is to provide additional information to users of Aimco’s financial information to facilitate an understanding of the effect of shares issued in connection with the special dividends on previously reported Earnings per share, Funds from Operations per share and Adjusted Funds from Operations per share. The analyses that follow this summary represent the detailed computations of the adjustments to these metrics resulting from the retroactive adjustments to reported weighted average shares and share equivalents as required by GAAP on a quarterly and annual basis for the years 2005, 2006, 2007 and the first half of 2008.

Aimco is not providing updated guidance; however, users of Aimco’s financial information should be aware that guidance provided during Aimco’s second quarter earnings conference call did not contemplate the number of shares to be issued in connection with the special dividend declared in July 2008, as the number of shares to be issued was not determinable at that time.

 

 

Apartment Investment and Management Company
Financial Results
(per share) (unaudited)
                                                                                                                 
    2Q 2008     1Q 2008     4Q 2007     3Q 2007     2Q 2007     1Q 2007     4Q 2006     3Q 2006     2Q 2006     1Q 2006     4Q 2005     3Q 2005     2Q 2005     1Q 2005  
Earnings — EPS
                                                                                                                
Originally reported
   $ 2.76     $ (0.43 )   $ (0.28 )   $ (0.22 )   $ 0.03     $ 0.09     $ 0.69     $ (0.48 )   $ 0.17     $ 0.63     $ (0.07 )   $ 0.05     $ 0.06     $ (0.22 )
Effect of December 2007 special dividend
     —       —       0.01       0.01       (0.00 )     (0.00 )     (0.03 )     0.01       (0.01 )     (0.03 )     0.00       (0.00 )     (0.00 )     0.01  
Effect of July 2008 special dividend
     (0.17 )     0.03       0.02       0.01       (0.00 )     (0.01 )     (0.04 )     0.04       (0.01 )     (0.04 )     0.01       (0.01 )     (0.00 )     0.01  
 
                                                                                    
Adjusted EPS
   $ 2.59     $ (0.40 )   $ (0.25 )   $ (0.20 )   $ 0.03     $ 0.08     $ 0.62     $ (0.43 )   $ 0.15     $ 0.56     $ (0.06 )   $ 0.04     $ 0.06     $ (0.20 )
 
                                                                                    
 
                                                                                                                
Funds from operations — FFO
                                                                                                                
Originally reported
   $ 0.83     $ 0.72     $ 0.87     $ 0.83     $ 0.88     $ 0.74     $ 0.88     $ 0.74     $ 0.73     $ 0.68     $ 0.60     $ 0.58     $ 0.67     $ 0.63  
Effect of December 2007 special dividend
     —       —       (0.04 )     (0.04 )     (0.04 )     (0.04 )     (0.04 )     (0.03 )     (0.03 )     (0.03 )     (0.03 )     (0.03 )     (0.04 )     (0.03 )
Effect of July 2008 special dividend
     (0.05 )     (0.04 )     (0.05 )     (0.05 )     (0.05 )     (0.04 )     (0.05 )     (0.04 )     (0.04 )     (0.04 )     (0.03 )     (0.03 )     (0.04 )     (0.03 )
 
                                                                                    
Adjusted FFO
   $ 0.78     $ 0.68     $ 0.78     $ 0.74     $ 0.79     $ 0.66     $ 0.79     $ 0.67     $ 0.66     $ 0.61     $ 0.54     $ 0.52     $ 0.59     $ 0.57  
 
                                                                                    
 
                                                                                                                
FFO before impairment and preferred redemption charges
                                                                                                                
Originally reported
   $ 0.90     $ 0.72     $ 0.92     $ 0.86     $ 0.88     $ 0.75     $ 0.88     $ 0.78     $ 0.73     $ 0.70     $ 0.60     $ 0.65     $ 0.67     $ 0.67  
Effect of December 2007 special dividend
     —       —       (0.04 )     (0.04 )     (0.04 )     (0.04 )     (0.04 )     (0.03 )     (0.04 )     (0.03 )     (0.03 )     (0.03 )     (0.03 )     (0.03 )
Effect of July 2008 special dividend
     (0.06 )     (0.04 )     (0.06 )     (0.05 )     (0.05 )     (0.04 )     (0.05 )     (0.05 )     (0.04 )     (0.04 )     (0.03 )     (0.04 )     (0.04 )     (0.04 )
 
                                                                                    
Adjusted FFO before impairment and preferred redemption charges
   $ 0.84     $ 0.68     $ 0.82     $ 0.77     $ 0.79     $ 0.67     $ 0.79     $ 0.70     $ 0.65     $ 0.63     $ 0.54     $ 0.58     $ 0.60     $ 0.60  
 
                                                                                    
 
                                                                                                                
Adjusted funds from operations — AFFO
                                                                                                                
Originally reported
   $ 0.66     $ 0.51     $ 0.65     $ 0.58     $ 0.64     $ 0.58     $ 0.73     $ 0.58     $ 0.53     $ 0.55     $ 0.41     $ 0.40     $ 0.42     $ 0.51  
Effect of December 2007 special dividend
     —       —       (0.03 )     (0.03 )     (0.03 )     (0.03 )     (0.04 )     (0.03 )     (0.02 )     (0.03 )     (0.02 )     (0.02 )     (0.02 )     (0.02 )
Effect of July 2008 special dividend
     (0.04 )     (0.03 )     (0.04 )     (0.03 )     (0.04 )     (0.03 )     (0.04 )     (0.03 )     (0.03 )     (0.03 )     (0.02 )     (0.03 )     (0.02 )     (0.03 )
 
                                                                                    
Adjusted AFFO
   $ 0.62     $ 0.48     $ 0.58     $ 0.52     $ 0.57     $ 0.52     $ 0.65     $ 0.52     $ 0.48     $ 0.49     $ 0.37     $ 0.35     $ 0.38     $ 0.46  
 
                                                                                    

 

 

 

Apartment Investment and Management Company
Financial Results
(per share) (unaudited)
                         
    2007     2006     2005  
Earnings — EPS
                        
Originally reported
   $ (0.38 )   $ 1.00     $ (0.18 )
Effect of December 2007 special dividend
     0.02       (0.05 )     0.01  
Effect of July 2008 special dividend
     0.02       (0.06 )     0.01  
 
                  
Adjusted EPS
   $ (0.34 )   $ 0.89     $ (0.16 )
 
                  
 
                        
Funds from operations — FFO
                        
Originally reported
   $ 3.32     $ 3.04     $ 2.48  
Effect of December 2007 special dividend
     (0.15 )     (0.14 )     (0.11 )
Effect of July 2008 special dividend
     (0.20 )     (0.18 )     (0.15 )
 
                  
Adjusted FFO
   $ 2.97     $ 2.72     $ 2.22  
 
                  
 
                        
FFO before impairment and preferred redemption charges
                        
Originally reported
   $ 3.41     $ 3.09     $ 2.59  
Effect of December 2007 special dividend
     (0.16 )     (0.14 )     (0.12 )
Effect of July 2008 special dividend
     (0.20 )     (0.18 )     (0.15 )
 
                  
Adjusted FFO before impairment and preferred redemption charges
   $ 3.05     $ 2.77     $ 2.32  
 
                  
 
                        
Adjusted funds from operations — AFFO
                        
Originally reported
   $ 2.45     $ 2.39     $ 1.74  
Effect of December 2007 special dividend
     (0.11 )     (0.11 )     (0.08 )
Effect of July 2008 special dividend
     (0.15 )     (0.14 )     (0.11 )
 
                  
Adjusted AFFO
   $ 2.19     $ 2.14     $ 1.55  
 
                  

 

 

 

Apartment Investment and Management Company
Calculation of Weighted Average Common Shares Outstanding
(in thousands) (unaudited)
                                                                                                                 
    2Q 2008     1Q 2008     4Q 2007     3Q 2007     2Q 2007     1Q 2007     4Q 2006     3Q 2006     2Q 2006     1Q 2006     4Q 2005     3Q 2005     2Q 2005     1Q 2005  
Earnings — EPS weighted average common shares outstanding, diluted
                                                                                                                
Originally reported
     87,790       90,973       93,463       95,017       95,973       95,971       95,715       96,061       96,071       95,183       94,282       94,041       93,807       93,448  
Effect of December 2007 special dividend
     —       —       4,523       4,522       4,521       4,523       4,530       4,525       4,519       4,516       4,504       4,502       4,501       4,497  
Effect of July 2008 special dividend
     5,882       6,095       6,565       6,669       6,733       6,733       6,716       6,739       6,740       6,680       6,619       6,602       6,587       6,563  
 
                                                                                    
Adjusted EPS weighted average common shares outstanding, diluted
     93,672       97,068       104,551       106,208       107,227       107,227       106,961       107,325       107,330       106,379       105,405       105,145       104,895       104,508  
 
                                                                                    
 
                                                                                                                
Funds from operations — FFO weighted average common shares outstanding, diluted
                                                                                                                
Originally reported
     90,618       93,168       96,437       96,287       99,200       99,981       99,906       99,984       97,566       96,635       94,840       95,013       94,446       93,856  
Effect of December 2007 special dividend
     —       —       4,672       4,587       4,646       4,690       4,704       4,655       4,598       4,592       4,533       4,553       4,533       4,518  
Effect of July 2008 special dividend
     6,070       6,241       6,772       6,755       6,949       7,001       6,997       7,002       6,839       6,778       6,657       6,668       6,630       6,590  
 
                                                                                    
Adjusted FFO weighted average common shares outstanding, diluted
     96,688       99,409       107,881       107,629       110,795       111,672       111,607       111,641       109,003       108,005       106,030       106,234       105,609       104,964  
 
                                                                                    
 
                                                                                                                
FFO before impairment and preferred redemption charges weighted average common shares outstanding, diluted
                                                                                                                
Originally reported
     90,637       93,168       96,437       96,287       99,200       99,981       99,906       100,038       97,566       96,635       94,840       95,117       94,446       93,856  
Effect of December 2007 special dividend
     —       —       4,672       4,587       4,646       4,690       4,704       4,658       4,598       4,592       4,533       4,558       4,533       4,518  
Effect of July 2008 special dividend
     6,072       6,241       6,772       6,755       6,949       7,001       6,997       7,006       6,839       6,778       6,657       6,675       6,630       6,590  
 
                                                                                    
Adjusted FFO before impairment and preferred redemption charges weighted average common shares outstanding, diluted
     96,709       99,409       107,881       107,629       110,795       111,672       111,607       111,702       109,003       108,005       106,030       106,350       105,609       104,964  
 
                                                                                    
 
                                                                                                                
Adjusted funds from operations — AFFO weighted average common shares outstanding, diluted
                                                                                                                
Originally reported
     88,389       91,267       94,371       96,201       99,128       99,981       99,834       99,957       97,475       96,539       94,729       95,013       94,336       93,782  
Effect of December 2007 special dividend
     —       —       4,570       4,583       4,642       4,690       4,700       4,654       4,593       4,587       4,528       4,553       4,528       4,514  
Effect of July 2008 special dividend
     5,921       6,114       6,627       6,749       6,944       7,001       6,992       7,000       6,833       6,771       6,649       6,668       6,622       6,585  
 
                                                                                    
Adjusted AFFO weighted average common shares outstanding, diluted
     94,310       97,381       105,568       107,533       110,714       111,672       111,526       111,611       108,901       107,897       105,906       106,234       105,486       104,881  
 
                                                                                    

 

 

 

Apartment Investment and Management Company
Calculation of Weighted Average Common Shares Outstanding
(in thousands) (unaudited)
                         
    2007     2006     2005  
Earnings — EPS weighted average common shares outstanding, diluted
                        
Originally reported
     95,106       95,758       93,894  
Effect of December 2007 special dividend
     4,523       4,522       4,503  
Effect of July 2008 special dividend
     6,675       6,719       6,593  
 
                  
Adjusted EPS weighted average common shares outstanding, diluted
     106,304       106,999       104,990  
 
                  
 
                        
Funds from operations — FFO weighted average common shares outstanding, diluted
                        
Originally reported
     97,983       98,522       94,539  
Effect of December 2007 special dividend
     4,643       4,714       4,535  
Effect of July 2008 special dividend
     6,869       6,904       6,636  
 
                  
Adjusted FFO weighted average common shares outstanding, diluted
     109,495       110,140       105,710  
 
                  
 
                        
FFO before impairment and preferred redemption charges weighted average common shares outstanding, diluted
                        
Originally reported
     97,983       98,536       94,565  
Effect of December 2007 special dividend
     4,643       4,714       4,536  
Effect of July 2008 special dividend
     6,869       6,905       6,638  
 
                  
Adjusted FFO before impairment and preferred redemption charges weighted average common shares outstanding, diluted
     109,495       110,155       105,739  
 
                  
 
                        
Adjusted funds from operations — AFFO weighted average common shares outstanding, diluted
                        
Originally reported
     97,421       98,451       94,465  
Effect of December 2007 special dividend
     4,621       4,710       4,531  
Effect of July 2008 special dividend
     6,830       6,899       6,631  
 
                  
Adjusted AFFO weighted average common shares outstanding, diluted
     108,872       110,060       105,627