UNITED STATES | |
SECURITIES AND EXCHANGE COMMISSION | |
Washington, D.C. 20549 | |
_______________________________________ | |
Form 10-Q | |
(Mark One) | |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2017 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to | |
Commission File Number 1-13232 (Apartment Investment and Management Company) | |
Commission File Number 0-24497 (AIMCO Properties, L.P.) | |
Apartment Investment and Management Company | |
AIMCO Properties, L.P. | |
(Exact name of registrant as specified in its charter) | |
Maryland (Apartment Investment and Management Company) | 84-1259577 | ||
Delaware (AIMCO Properties, L.P.) | 84-1275621 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
4582 South Ulster Street, Suite 1100 | |||
Denver, Colorado | 80237 | ||
(Address of principal executive offices) | (Zip Code) | ||
(303) 757-8101 | |||
(Registrant’s telephone number, including area code) | |||
Not Applicable | |||
(Former name, former address, and former fiscal year, if changed since last report) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | |
Apartment Investment and Management Company: Yes x No o | AIMCO Properties, L.P.: Yes x No o |
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). | |
Apartment Investment and Management Company: Yes x No o | AIMCO Properties, L.P.: Yes x No o |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): | ||||
Apartment Investment and Management Company: | ||||
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o |
Emerging growth company | o | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the exchange act. o | ||||
AIMCO Properties, L.P.: | ||||
Large accelerated filer | o | Accelerated filer | x | |
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o |
Emerging growth company | o | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the exchange act. o |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | ||||||||
Apartment Investment and Management Company: Yes | o | No | x | AIMCO Properties, L.P.: Yes | o | No | x |
_______________________________________________________ |
The number of shares of Apartment Investment and Management Company |
Class A Common Stock outstanding as of May 3, 2017: 157,022,248 |
The number of Partnership Common Units outstanding as of May 3, 2017: 164,536,351 |
• | We present our business as a whole, in the same manner our management views and operates the business; |
• | We eliminate duplicative disclosure and provide a more streamlined and readable presentation since a substantial portion of the disclosures apply to both Aimco and the Aimco Operating Partnership; and |
• | We save time and cost through the preparation of a single combined report rather than two separate reports. |
Page | ||
ITEM 1. | ||
Condensed Consolidated Balance Sheets (Unaudited) | ||
Condensed Consolidated Statements of Operations (Unaudited) | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||
Condensed Consolidated Balance Sheets (Unaudited) | ||
Condensed Consolidated Statements of Operations (Unaudited) | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
ITEM 1A. | ||
ITEM 2. | ||
ITEM 6. | ||
ITEM 1. | Financial Statements |
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Buildings and improvements | $ | 6,181,617 | $ | 6,106,298 | |||
Land | 1,824,672 | 1,824,819 | |||||
Total real estate | 8,006,289 | 7,931,117 | |||||
Accumulated depreciation | (2,496,667 | ) | (2,421,357 | ) | |||
Net real estate | 5,509,622 | 5,509,760 | |||||
Cash and cash equivalents | 45,876 | 45,821 | |||||
Restricted cash | 42,604 | 36,405 | |||||
Other assets | 246,066 | 292,989 | |||||
Assets of partnerships served by Asset Management business: | |||||||
Real estate, net | 235,549 | 245,648 | |||||
Cash and cash equivalents | 19,198 | 15,423 | |||||
Restricted cash | 30,945 | 33,501 | |||||
Other assets | 57,580 | 53,271 | |||||
Total assets | $ | 6,187,440 | $ | 6,232,818 | |||
LIABILITIES AND EQUITY | |||||||
Non-recourse property debt secured by Real Estate communities, net | $ | 3,670,454 | $ | 3,630,276 | |||
Revolving credit facility borrowings | 69,700 | 17,930 | |||||
Total indebtedness associated with Real Estate portfolio | 3,740,154 | 3,648,206 | |||||
Accrued liabilities and other | 202,929 | 223,137 | |||||
Liabilities of partnerships served by Asset Management business: | |||||||
Non-recourse property debt, net | 230,882 | 236,426 | |||||
Accrued liabilities and other | 58,624 | 58,430 | |||||
Deferred income | 16,868 | 18,452 | |||||
Total liabilities | 4,249,457 | 4,184,651 | |||||
Preferred noncontrolling interests in Aimco Operating Partnership | 101,606 | 103,201 | |||||
Commitments and contingencies (Note 4) | |||||||
Equity: | |||||||
Perpetual Preferred Stock | 125,000 | 125,000 | |||||
Common Stock, $0.01 par value, 500,787,260 shares authorized, 157,022,248 and 156,888,381 shares issued/outstanding at March 31, 2017 and December 31, 2016, respectively | 1,570 | 1,569 | |||||
Additional paid-in capital | 4,051,645 | 4,051,722 | |||||
Accumulated other comprehensive (loss) income | (118 | ) | 1,011 | ||||
Distributions in excess of earnings | (2,489,961 | ) | (2,385,399 | ) | |||
Total Aimco equity | 1,688,136 | 1,793,903 | |||||
Noncontrolling interests in consolidated real estate partnerships | 153,242 | 151,121 | |||||
Common noncontrolling interests in Aimco Operating Partnership | (5,001 | ) | (58 | ) | |||
Total equity | 1,836,377 | 1,944,966 | |||||
Total liabilities and equity | $ | 6,187,440 | $ | 6,232,818 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
REVENUES | |||||||
Rental and other property revenues attributable to Real Estate | $ | 225,228 | $ | 222,573 | |||
Rental and other property revenues of partnerships served by Asset Management business | 18,562 | 18,908 | |||||
Tax credit and transaction revenues | 2,691 | 4,758 | |||||
Total revenues | 246,481 | 246,239 | |||||
OPERATING EXPENSES | |||||||
Property operating expenses attributable to Real Estate | 79,626 | 79,431 | |||||
Property operating expenses of partnerships served by Asset Management business | 8,694 | 8,966 | |||||
Investment management expenses | 784 | 975 | |||||
Depreciation and amortization | 87,168 | 79,828 | |||||
General and administrative expenses | 10,682 | 11,935 | |||||
Other expenses, net | 1,738 | 1,570 | |||||
Total operating expenses | 188,692 | 182,705 | |||||
Operating income | 57,789 | 63,534 | |||||
Interest income | 2,192 | 1,835 | |||||
Interest expense | (47,882 | ) | (47,634 | ) | |||
Other, net | 465 | 77 | |||||
Income before income taxes and gain on dispositions | 12,564 | 17,812 | |||||
Income tax benefit | 4,985 | 5,886 | |||||
Income before gain on dispositions | 17,549 | 23,698 | |||||
Gain (loss) on dispositions of real estate, inclusive of tax | (394 | ) | 6,187 | ||||
Net income | 17,155 | 29,885 | |||||
Noncontrolling interests: | |||||||
Net income attributable to noncontrolling interests in consolidated real estate partnerships | (951 | ) | (930 | ) | |||
Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership | (1,949 | ) | (1,726 | ) | |||
Net income attributable to common noncontrolling interests in Aimco Operating Partnership | (557 | ) | (1,172 | ) | |||
Net income attributable to noncontrolling interests | (3,457 | ) | (3,828 | ) | |||
Net income attributable to Aimco | 13,698 | 26,057 | |||||
Net income attributable to Aimco preferred stockholders | (2,148 | ) | (2,757 | ) | |||
Net income attributable to participating securities | (59 | ) | (77 | ) | |||
Net income attributable to Aimco common stockholders | $ | 11,491 | $ | 23,223 | |||
Net income attributable to Aimco per common share – basic and diluted | $ | 0.07 | $ | 0.15 | |||
Dividends declared per common share | $ | 0.36 | $ | 0.33 | |||
Weighted average common shares outstanding – basic | 156,259 | 155,791 | |||||
Weighted average common shares outstanding – diluted | 156,754 | 156,117 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 17,155 | $ | 29,885 | |||
Other comprehensive (loss) income: | |||||||
Unrealized losses on interest rate swaps | (10 | ) | (674 | ) | |||
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss | 386 | 420 | |||||
Unrealized (losses) gains on investments in debt securities classified as available-for-sale | (1,501 | ) | 6,183 | ||||
Other comprehensive (loss) income | (1,125 | ) | 5,929 | ||||
Comprehensive income | 16,030 | 35,814 | |||||
Comprehensive income attributable to noncontrolling interests | (3,460 | ) | (4,148 | ) | |||
Comprehensive income attributable to Aimco | $ | 12,570 | $ | 31,666 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 17,155 | $ | 29,885 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 87,168 | 79,828 | |||||
Gain (loss) on dispositions of real estate, inclusive of tax | 394 | (6,187 | ) | ||||
Other adjustments | (3,741 | ) | (8,749 | ) | |||
Net changes in operating assets and operating liabilities | (32,460 | ) | (20,824 | ) | |||
Net cash provided by operating activities | 68,516 | 73,953 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchases of real estate | (4,995 | ) | (2,275 | ) | |||
Capital expenditures | (82,151 | ) | (79,576 | ) | |||
Proceeds from dispositions of real estate | 2,179 | 9,601 | |||||
Purchases of corporate assets | (2,810 | ) | (1,764 | ) | |||
Change in restricted cash | 1,445 | 3,234 | |||||
Other investing activities | 94 | 5,209 | |||||
Net cash used in investing activities | (86,238 | ) | (65,571 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from non-recourse property debt | 68,535 | 7,766 | |||||
Principal repayments on non-recourse property debt | (32,026 | ) | (19,179 | ) | |||
Net borrowings on revolving credit facility | 51,770 | 79,080 | |||||
Payment of dividends to holders of Preferred Stock | (2,148 | ) | (2,757 | ) | |||
Payment of dividends to holders of Common Stock | (56,328 | ) | (51,523 | ) | |||
Payment of distributions to noncontrolling interests | (5,790 | ) | (6,423 | ) | |||
Purchases and redemptions of noncontrolling interests | (4,628 | ) | (1,867 | ) | |||
Other financing activities | 2,167 | 186 | |||||
Net cash provided by financing activities | 21,552 | 5,283 | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 3,830 | 13,665 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 61,244 | 50,789 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 65,074 | $ | 64,454 |
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Buildings and improvements | $ | 6,181,617 | $ | 6,106,298 | |||
Land | 1,824,672 | 1,824,819 | |||||
Total real estate | 8,006,289 | 7,931,117 | |||||
Accumulated depreciation | (2,496,667 | ) | (2,421,357 | ) | |||
Net real estate | 5,509,622 | 5,509,760 | |||||
Cash and cash equivalents | 45,876 | 45,821 | |||||
Restricted cash | 42,604 | 36,405 | |||||
Other assets | 246,066 | 292,989 | |||||
Assets of partnerships served by Asset Management business: | |||||||
Real estate, net | 235,549 | 245,648 | |||||
Cash and cash equivalents | 19,198 | 15,423 | |||||
Restricted cash | 30,945 | 33,501 | |||||
Other assets | 57,580 | 53,271 | |||||
Total assets | $ | 6,187,440 | $ | 6,232,818 | |||
LIABILITIES AND EQUITY | |||||||
Non-recourse property debt secured by Real Estate communities, net | $ | 3,670,454 | $ | 3,630,276 | |||
Revolving credit facility borrowings | 69,700 | 17,930 | |||||
Total indebtedness associated with Real Estate portfolio | 3,740,154 | 3,648,206 | |||||
Accrued liabilities and other | 202,929 | 223,137 | |||||
Liabilities of partnerships served by Asset Management business: | |||||||
Non-recourse property debt, net | 230,882 | 236,426 | |||||
Accrued liabilities and other | 58,624 | 58,430 | |||||
Deferred income | 16,868 | 18,452 | |||||
Total liabilities | 4,249,457 | 4,184,651 | |||||
Redeemable preferred units | 101,606 | 103,201 | |||||
Commitments and contingencies (Note 4) | |||||||
Partners’ Capital: | |||||||
Preferred units | 125,000 | 125,000 | |||||
General Partner and Special Limited Partner | 1,563,136 | 1,668,903 | |||||
Limited Partners | (5,001 | ) | (58 | ) | |||
Partners’ capital attributable to the Aimco Operating Partnership | 1,683,135 | 1,793,845 | |||||
Noncontrolling interests in consolidated real estate partnerships | 153,242 | 151,121 | |||||
Total partners’ capital | 1,836,377 | 1,944,966 | |||||
Total liabilities and partners’ capital | $ | 6,187,440 | $ | 6,232,818 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
REVENUES | |||||||
Rental and other property revenues attributable to Real Estate | $ | 225,228 | $ | 222,573 | |||
Rental and other property revenues of partnerships served by Asset Management business | 18,562 | 18,908 | |||||
Tax credit and transaction revenues | 2,691 | 4,758 | |||||
Total revenues | 246,481 | 246,239 | |||||
OPERATING EXPENSES | |||||||
Property operating expenses attributable to Real Estate | 79,626 | 79,431 | |||||
Property operating expenses of partnerships served by Asset Management business | 8,694 | 8,966 | |||||
Investment management expenses | 784 | 975 | |||||
Depreciation and amortization | 87,168 | 79,828 | |||||
General and administrative expenses | 10,682 | 11,935 | |||||
Other expenses, net | 1,738 | 1,570 | |||||
Total operating expenses | 188,692 | 182,705 | |||||
Operating income | 57,789 | 63,534 | |||||
Interest income | 2,192 | 1,835 | |||||
Interest expense | (47,882 | ) | (47,634 | ) | |||
Other, net | 465 | 77 | |||||
Income before income taxes and gain on dispositions | 12,564 | 17,812 | |||||
Income tax benefit | 4,985 | 5,886 | |||||
Income before gain on dispositions | 17,549 | 23,698 | |||||
Gain (loss) on dispositions of real estate, inclusive of tax | (394 | ) | 6,187 | ||||
Net income | 17,155 | 29,885 | |||||
Net income attributable to noncontrolling interests in consolidated real estate partnerships | (951 | ) | (930 | ) | |||
Net income attributable to the Aimco Operating Partnership | 16,204 | 28,955 | |||||
Net income attributable to the Aimco Operating Partnership’s preferred unitholders | (4,097 | ) | (4,483 | ) | |||
Net income attributable to participating securities | (60 | ) | (77 | ) | |||
Net income attributable to the Aimco Operating Partnership’s common unitholders | $ | 12,047 | $ | 24,395 | |||
Net income attributable to the Aimco Operating Partnership per common unit – basic and diluted | $ | 0.07 | $ | 0.15 | |||
Distributions declared per common unit | $ | 0.36 | $ | 0.33 | |||
Weighted average common units outstanding – basic | 163,814 | 163,639 | |||||
Weighted average common units outstanding – diluted | 164,310 | 163,965 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 17,155 | $ | 29,885 | |||
Other comprehensive (loss) income: | |||||||
Unrealized losses on interest rate swaps | (10 | ) | (674 | ) | |||
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss | 386 | 420 | |||||
Unrealized (losses) gains on investments in debt securities classified as available-for-sale | (1,501 | ) | 6,183 | ||||
Other comprehensive (loss) income | (1,125 | ) | 5,929 | ||||
Comprehensive income | 16,030 | 35,814 | |||||
Comprehensive income attributable to noncontrolling interests | (1,009 | ) | (969 | ) | |||
Comprehensive income attributable to the Aimco Operating Partnership | $ | 15,021 | $ | 34,845 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 17,155 | $ | 29,885 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 87,168 | 79,828 | |||||
Gain (loss) on dispositions of real estate, inclusive of tax | 394 | (6,187 | ) | ||||
Other adjustments | (3,741 | ) | (8,749 | ) | |||
Net changes in operating assets and operating liabilities | (32,460 | ) | (20,824 | ) | |||
Net cash provided by operating activities | 68,516 | 73,953 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchases of real estate | (4,995 | ) | (2,275 | ) | |||
Capital expenditures | (82,151 | ) | (79,576 | ) | |||
Proceeds from dispositions of real estate | 2,179 | 9,601 | |||||
Purchases of corporate assets | (2,810 | ) | (1,764 | ) | |||
Change in restricted cash | 1,445 | 3,234 | |||||
Other investing activities | 94 | 5,209 | |||||
Net cash used in investing activities | (86,238 | ) | (65,571 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from non-recourse property debt | 68,535 | 7,766 | |||||
Principal repayments on non-recourse property debt | (32,026 | ) | (19,179 | ) | |||
Net borrowings on revolving credit facility | 51,770 | 79,080 | |||||
Payment of distributions to holders of Preferred Units | (4,097 | ) | (4,483 | ) | |||
Payment of distributions to General Partner and Special Limited Partner | (56,328 | ) | (51,523 | ) | |||
Payment of distributions to Limited Partners | (2,718 | ) | (2,592 | ) | |||
Payment of distributions to noncontrolling interests | (1,123 | ) | (2,105 | ) | |||
Other financing activities | (2,461 | ) | (1,681 | ) | |||
Net cash provided by financing activities | 21,552 | 5,283 | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 3,830 | 13,665 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 61,244 | 50,789 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 65,074 | $ | 64,454 |
Balance, December 31, 2016 | $ | 103,201 | |
Distributions to preferred unitholders | (1,949 | ) | |
Redemption of preferred units and other | (1,595 | ) | |
Net income | 1,949 | ||
Balance, March 31, 2017 | $ | 101,606 |
Aimco Equity | Noncontrolling interests in consolidated real estate partnerships | Common noncontrolling interests in Aimco Operating Partnership | Total Equity | ||||||||||||
Balance, December 31, 2016 | $ | 1,793,903 | $ | 151,121 | $ | (58 | ) | $ | 1,944,966 | ||||||
Contributions | — | 2,235 | — | 2,235 | |||||||||||
Preferred stock dividends | (2,148 | ) | — | — | (2,148 | ) | |||||||||
Common dividends and distributions | (56,526 | ) | (1,123 | ) | (2,718 | ) | (60,367 | ) | |||||||
Redemptions of common OP Units | — | — | (3,015 | ) | (3,015 | ) | |||||||||
Amortization of stock-based compensation cost | 2,880 | — | 153 | 3,033 | |||||||||||
Effect of changes in ownership for consolidated entities | (3,035 | ) | — | 3,016 | (19 | ) | |||||||||
Cumulative effect of a change in accounting principle | (59,586 | ) | — | (2,881 | ) | (62,467 | ) | ||||||||
Change in accumulated other comprehensive loss | (1,128 | ) | 58 | (55 | ) | (1,125 | ) | ||||||||
Other | 78 | — | — | 78 | |||||||||||
Net income | 13,698 | 951 | 557 | 15,206 | |||||||||||
Balance, March 31, 2017 | $ | 1,688,136 | $ | 153,242 | $ | (5,001 | ) | $ | 1,836,377 |
Partners’ capital attributable to the Aimco Operating Partnership | |||
Balance, December 31, 2016 | $ | 1,793,845 | |
Distributions to preferred units held by Aimco | (2,148 | ) | |
Distributions to common units held by Aimco | (56,526 | ) | |
Distributions to common units held by Limited Partners | (2,718 | ) | |
Redemption of common OP Units | (3,015 | ) | |
Amortization of Aimco stock-based compensation cost | 3,033 | ||
Effect of changes in ownership for consolidated entities | (19 | ) | |
Cumulative effect of a change in accounting principle | (62,467 | ) | |
Change in accumulated other comprehensive loss | (1,183 | ) | |
Other | 78 | ||
Net income | 14,255 | ||
Balance, March 31, 2017 | $ | 1,683,135 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Beginning balance | $ | (3,175 | ) | $ | (4,938 | ) | |
Unrealized losses included in interest expense | (12 | ) | (11 | ) | |||
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss | 386 | 420 | |||||
Unrealized losses included in equity and partners’ capital | (10 | ) | (674 | ) | |||
Ending balance | $ | (2,811 | ) | $ | (5,203 | ) |
Real Estate | Proportionate Adjustments (1) | Corporate and Amounts Not Allocated to Reportable Segment (2) | Consolidated | ||||||||||||
Three Months Ended March 31, 2017 | |||||||||||||||
Rental and other property revenues attributable to Real Estate | $ | 216,975 | $ | 7,296 | $ | 957 | $ | 225,228 | |||||||
Rental and other property revenues of partnerships served by Asset Management business | — | — | 18,562 | 18,562 | |||||||||||
Tax credit and transaction revenues | — | — | 2,691 | 2,691 | |||||||||||
Total revenues | 216,975 | 7,296 | 22,210 | 246,481 | |||||||||||
Property operating expenses attributable to Real Estate | 69,463 | 2,303 | 7,860 | 79,626 | |||||||||||
Property operating expenses of partnerships served by Asset Management business | — | — | 8,694 | 8,694 | |||||||||||
Investment management expenses | — | — | 784 | 784 | |||||||||||
Depreciation and amortization | — | — | 87,168 | 87,168 | |||||||||||
General and administrative expenses | — | — | 10,682 | 10,682 | |||||||||||
Other expenses, net | — | — | 1,738 | 1,738 | |||||||||||
Total operating expenses | 69,463 | 2,303 | 116,926 | 188,692 | |||||||||||
Net operating income | 147,512 | 4,993 | (94,716 | ) | 57,789 | ||||||||||
Other items included in income before gain on dispositions (3) | — | — | (40,240 | ) | (40,240 | ) | |||||||||
Income before gain on dispositions | $ | 147,512 | $ | 4,993 | $ | (134,956 | ) | $ | 17,549 |
Real Estate | Proportionate Adjustments (1) | Corporate and Amounts Not Allocated to Reportable Segment (2) | Consolidated | ||||||||||||
Three Months Ended March 31, 2016 | |||||||||||||||
Rental and other property revenues attributable to Real Estate | $ | 202,064 | $ | 7,593 | $ | 12,916 | $ | 222,573 | |||||||
Rental and other property revenues of partnerships served by Asset Management business | — | — | 18,908 | 18,908 | |||||||||||
Tax credit and transaction revenues | — | — | 4,758 | 4,758 | |||||||||||
Total revenues | 202,064 | 7,593 | 36,582 | 246,239 | |||||||||||
Property operating expenses attributable to Real Estate | 65,247 | 1,945 | 12,239 | 79,431 | |||||||||||
Property operating expenses of partnerships served by Asset Management business | — | — | 8,966 | 8,966 | |||||||||||
Investment management expenses | — | — | 975 | 975 | |||||||||||
Depreciation and amortization | — | — | 79,828 | 79,828 | |||||||||||
General and administrative expenses | — | — | 11,935 | 11,935 | |||||||||||
Other expenses, net | — | — | 1,570 | 1,570 | |||||||||||
Total operating expenses | 65,247 | 1,945 | 115,513 | 182,705 | |||||||||||
Net operating income | 136,817 | 5,648 | (78,931 | ) | 63,534 | ||||||||||
Other items included in income before gain on dispositions (3) | — | — | (39,836 | ) | (39,836 | ) | |||||||||
Income before gain on dispositions | $ | 136,817 | $ | 5,648 | $ | (118,767 | ) | $ | 23,698 |
(1) | Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of consolidated apartment communities in our Real Estate segment, which are included in the related consolidated amounts, but excluded from proportionate property net operating income for our segment evaluation. |
(2) | Includes the operating results of apartment communities sold during 2017 or 2016, or classified as held for sale at March 31, 2017, and the operating results of apartment communities owned by consolidated partnerships served by our Asset Management business. Corporate and Amounts Not Allocated to Reportable Segment also includes property management revenues (which |
(3) | Other items included in income before gain on dispositions primarily consist of interest expense and income tax benefit. |
March 31, 2017 | December 31, 2016 | ||||||
Real Estate | $ | 5,559,827 | $ | 5,545,693 | |||
Corporate and other assets (1) | 627,613 | 687,125 | |||||
Total consolidated assets | $ | 6,187,440 | $ | 6,232,818 |
(1) | Includes the assets of consolidated partnerships served by the Asset Management business and apartment communities sold or classified as held for sale as of March 31, 2017. |
March 31, 2017 | December 31, 2016 | ||||
Real Estate portfolio: | |||||
VIEs with interests in apartment communities | 13 | 13 | |||
Apartment communities held by VIEs | 19 | 19 | |||
Apartment homes in communities held by VIEs | 6,110 | 6,110 | |||
Consolidated partnerships served by the Asset Management business: | |||||
VIEs with interests in apartment communities | 54 | 54 | |||
Apartment communities held by VIEs | 38 | 38 | |||
Apartment homes in communities held by VIEs | 6,093 | 6,093 |
March 31, 2017 | December 31, 2016 | ||||||
Real Estate portfolio: | |||||||
Assets | |||||||
Net real estate | $ | 898,849 | $ | 897,510 | |||
Cash and cash equivalents | 17,977 | 15,877 | |||||
Restricted cash | 10,356 | 7,981 | |||||
Liabilities | |||||||
Non-recourse property debt secured by Real Estate communities, net | 722,036 | 725,061 | |||||
Accrued liabilities and other | 15,824 | 14,270 | |||||
Consolidated partnerships served by the Asset Management business: | |||||||
Assets | |||||||
Real estate, net | 225,994 | 235,920 | |||||
Cash and cash equivalents | 17,564 | 14,926 | |||||
Restricted cash | 28,869 | 32,542 | |||||
Liabilities | |||||||
Non-recourse property debt | 223,998 | 229,509 | |||||
Accrued liabilities and other | 15,139 | 16,934 |
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Real estate and operating risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the amount, location and quality of competitive new housing supply; the timing of acquisitions, dispositions, redevelopments and developments; and changes in operating costs, including energy costs; |
• | Financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest and the risk that our earnings may not be sufficient to maintain compliance with debt covenants; |
• | Insurance risks, including the cost of insurance and natural disasters and severe weather such as hurricanes; and |
• | Legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of governmental regulations that affect us and interpretations of those regulations; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently or previously owned by us. |
• | operate our portfolio of desirable apartment homes with valued amenities, with a high level of focus on customer selection and customer satisfaction, and in an efficient manner that realizes the benefits of our corporate systems and local management expertise; |
• | improve our portfolio of apartment communities, which is diversified both by geography and price point, and which averages “B/B+” in quality (defined under the Portfolio Management heading below) by selling apartment communities with lower projected free cash flow returns and investing the proceeds from such sales in prospects with higher projected free cash flow returns than expected from the communities sold, such as property upgrades, redevelopment, development and selective acquisitions; |
• | use financial leverage primarily in the form of non-recourse, long-dated, fixed-rate property debt and perpetual preferred equity, a combination which reduces our refunding and re-pricing risk and which provides a hedge against increases in interest rates; and |
• | emphasize a collaborative, respectful, and performance-oriented culture with high team engagement. |
• | Same Store net operating income increased year-over-year by 3.7%, consisting of revenue and expense growth of 3.4% and 2.7%, respectively; |
• | Rents on renewals increased by an average of 5.1%, whereas rents on new leases decreased by an average of 1.0%, for the three months ended March 31, 2017, for a weighted average increase of 1.9% for our same store portfolio; and |
• | During the quarter, we completed the lease-up of One Canal, in Boston, with 97% of the apartment homes leased at March 31, 2017, at rental rates consistent with underwriting, and leasing remains well ahead of schedule at Indigo, in Redwood City, California, with 86% of the apartment homes leased at March 31, 2017. |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Average revenue per Aimco apartment home (1) | $ | 1,996 | $ | 1,860 | |||
Portfolio average rents as a percentage of local market average rents | 112 | % | 112 | % | |||
Percentage A (1Q 2017 average revenue per Aimco apartment home $2,601) | 51 | % | 48 | % | |||
Percentage B (1Q 2017 average revenue per Aimco apartment home $1,741) | 35 | % | 35 | % | |||
Percentage C+ (1Q 2017 average revenue per Aimco apartment home $1,676) | 14 | % | 17 | % | |||
(1) Represents average monthly rental and other property revenues divided by the number of occupied apartment homes multiplied by our ownership interest in the apartment community as of the end of the current period. |
Trailing Twelve Months Ended March 31, | |||
2017 | 2016 | ||
Proportionate Debt to Adjusted EBITDA | 6.3x | 6.2x | |
Proportionate Debt and Preferred Equity to Adjusted EBITDA | 6.7x | 6.7x | |
Adjusted EBITDA to Adjusted Interest Expense | 3.4x | 3.4x | |
Adjusted EBITDA to Adjusted Interest Expense and Preferred Dividends | 3.1x | 3.0x |
• | 103 Same Store apartment communities with 30,502 apartment homes; and |
• | 34 Non-Same Store apartment communities with 8,529 apartment homes. |
• | the addition of three redeveloped apartment communities with 974 apartment homes that were classified as Same Store upon maintaining stabilized operations for the entirety of both periods presented; |
• | the addition of one acquired apartment community with 94 apartment homes that was classified as Same Store because we have now owned it for the entirety of both periods presented; and |
• | the reduction of two apartment communities with 1,459 apartment homes for which we commenced redevelopment during the period and were reclassified to Non-Same Store. |
• | four apartment communities with 604 apartment homes owned by low-income housing tax credit partnerships in which we own substantially all of the legal and economic interests and for which we control the timing of disposition of the communities and dissolution of the related partnerships (i.e. we own these communities rather than serve as an asset manager); and |
• | three apartment communities with 635 apartment homes that are not owned through low-income housing tax credit partnerships, but are subject to agreements that limit the amount by which we may increase rents. |
Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2017 | 2016 | $ Change | % Change | ||||||||||
Rental and other property revenues: | ||||||||||||||
Same Store | $ | 161,234 | $ | 155,898 | $ | 5,336 | 3.4 | % | ||||||
Non-Same Store | 55,741 | 46,166 | 9,575 | 20.7 | % | |||||||||
Total | 216,975 | 202,064 | 14,911 | 7.4 | % | |||||||||
Property operating expenses: | ||||||||||||||
Same Store | 48,372 | 47,093 | 1,279 | 2.7 | % | |||||||||
Non-Same Store | 21,091 | 18,154 | 2,937 | 16.2 | % | |||||||||
Total | 69,463 | 65,247 | 4,216 | 6.5 | % | |||||||||
Proportionate property net operating income: | ||||||||||||||
Same Store | 112,862 | 108,805 | 4,057 | 3.7 | % | |||||||||
Non-Same Store | 34,650 | 28,012 | 6,638 | 23.7 | % | |||||||||
Total | $ | 147,512 | $ | 136,817 | $ | 10,695 | 7.8 | % |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income attributable to Aimco common stockholders (1) | $ | 11,491 | $ | 23,223 | |||
Adjustments: | |||||||
Real estate depreciation and amortization, net of noncontrolling partners’ interest | 82,881 | 75,296 | |||||
Gain on dispositions and other, net noncontrolling partners’ interest | (439 | ) | (6,050 | ) | |||
Income tax provision related to gain on disposition of real estate | 1,032 | 195 | |||||
Common noncontrolling interests in Aimco Operating Partnership’s share of above adjustments | (3,850 | ) | (3,327 | ) | |||
Amounts allocable to participating securities | (38 | ) | (58 | ) | |||
FFO / Pro forma FFO Attributable to Aimco common stockholders – Diluted | $ | 91,077 | $ | 89,279 | |||
Capital Replacements, net of common noncontrolling interests in Aimco Operating Partnership and participating securities | (10,946 | ) | (10,386 | ) | |||
AFFO attributable to Aimco common stockholders – Diluted | $ | 80,131 | $ | 78,893 | |||
Weighted average common shares outstanding – diluted (2) | 156,754 | 156,117 | |||||
Net income attributable to Aimco per common share – diluted | $ | 0.07 | $ | 0.15 | |||
FFO / Pro forma FFO per share – diluted | $ | 0.58 | $ | 0.57 | |||
AFFO per share – diluted | $ | 0.51 | $ | 0.51 |
(1) | Represents the numerator for calculating Aimco’s earnings per common share in accordance with GAAP. |
(2) | Represents the denominator for Aimco’s earnings per common share – diluted, calculated in accordance with GAAP. |
• | Adjusted Interest Expense, defined below, to allow investors to compare a measure of our earnings before the effects of our indebtedness with that of other companies in the real estate industry; |
• | preferred dividends, to allow investors to compare a measure of our performance before the effects of our capital structure with that of other companies in the real estate industry; |
• | income taxes, to allow investors to measure our performance independent of income taxes, which may vary significantly from other companies within our industry due to leverage and tax planning strategies, among other considerations; |
• | depreciation and amortization, gains or losses on dispositions and impairment losses related to real estate, for similar reasons to those set forth in our discussion of FFO, Pro forma FFO and AFFO in the preceding section; and |
• | other items, including gains on dispositions of non-depreciable assets, as these are items that periodically affect our operations but that are not necessarily representative of our ability to service our debt obligations. |
• | debt prepayment penalties, which are items that, from time to time, affect our operating results but are not representative of our scheduled interest obligations; |
• | the amortization of debt issue costs, as these amounts have been expended in previous periods and are not representative of our current or prospective debt service requirements; and |
• | the income we receive on our investment in the securitization trust that holds certain of our property debt, as this income is being generated indirectly from interest we pay with respect to property debt held by the trust. |
March 31, | |||||||
2017 | 2016 | ||||||
Total indebtedness associated with Real Estate portfolio | $ | 3,740,154 | $ | 3,669,007 | |||
Adjustments: | |||||||
Debt issue costs related to non-recourse property debt | 17,804 | 18,267 | |||||
Proportionate share adjustments related to debt obligations of consolidated and unconsolidated partnerships | (151,316 | ) | (154,431 | ) | |||
Cash and restricted cash | (88,480 | ) | (107,424 | ) | |||
Proportionate share adjustments related to cash and restricted cash held by consolidated and unconsolidated partnerships | 1,516 | 3,788 | |||||
Securitization trust investment and other | (75,817 | ) | (72,817 | ) | |||
Proportionate Debt | $ | 3,443,861 | $ | 3,356,390 | |||
Preferred stock | 125,000 | 159,126 | |||||
Preferred OP Units | 101,606 | 86,201 | |||||
Preferred Equity | 226,606 | 245,327 | |||||
Proportionate Debt and Preferred Equity | $ | 3,670,467 | $ | 3,601,717 |
Trailing Twelve Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income attributable to Aimco Common Stockholders | $ | 405,180 | $ | 169,846 | |||
Adjustments: | |||||||
Interest expense, net of noncontrolling interest | 163,444 | 161,163 | |||||
Income tax benefit | (24,307 | ) | (27,485 | ) | |||
Depreciation and amortization, net of noncontrolling interest | 333,211 | 304,236 | |||||
Gains on disposition and other, net of income taxes and noncontrolling partners’ interests | (367,414 | ) | (98,821 | ) | |||
Preferred stock dividends | 11,385 | 11,029 | |||||
Net income attributable to noncontrolling interests in Aimco Operating Partnership | 27,798 | 15,895 | |||||
Other items, net | 927 | 4,578 | |||||
Adjusted EBITDA | $ | 550,224 | $ | 540,441 |
Trailing Twelve Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Interest expense | $ | 196,637 | $ | 193,800 | |||
Interest expense related to non-recourse property debt obligations of consolidated partnerships served by our Asset Management business | (13,697 | ) | (13,757 | ) | |||
Interest expense attributable to Real Estate portfolio | 182,940 | 180,043 | |||||
Adjustments: | |||||||
Proportionate share adjustments related to interest of consolidated and unconsolidated partnerships | (5,623 | ) | (5,904 | ) | |||
Debt prepayment penalties and other non-interest items | (2,475 | ) | (2,853 | ) | |||
Amortization of debt issue costs | (4,440 | ) | (3,935 | ) | |||
Interest income earned on securitization trust investment | (6,958 | ) | (6,188 | ) | |||
Adjusted Interest Expense | $ | 163,444 | $ | 161,163 | |||
Preferred stock dividends | 11,385 | 11,029 | |||||
Preferred stock redemption related amounts | (1,980 | ) | — | ||||
Preferred OP Unit distributions | 7,462 | 6,933 | |||||
Preferred Dividends | 16,867 | 17,962 | |||||
Adjusted Interest Expense and Preferred Dividends | $ | 180,311 | $ | 179,125 |
• | capital replacements, which represent capital additions made to replace the consumed portion of acquired capital assets; |
• | capital improvements, which are non-redevelopment capital additions that are made to enhance the value, profitability or useful life of an apartment community from its original purchase condition; |
• | property upgrades, which may include kitchen and bath remodeling, energy conservation projects, and investments in longer-lived materials designed to reduce turnover costs and maintenance, all of which are generally lesser in scope than redevelopment additions and do not significantly disrupt property operations; |
• | redevelopment additions, which represent capital additions intended to enhance the value of an apartment community through the ability to generate higher average rental revenues, and may include costs related to entitlement, which enhance the value of a community through increased density, and costs related to renovation of exteriors, common areas or apartment homes; |
• | development additions, which represent construction and related capitalized costs associated with development of apartment communities; and |
• | casualty capital additions, which represent capitalized costs incurred in connection with the restoration of an asset after a casualty event such as a severe snow storm, hurricane, tornado, flood or fire. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Real Estate | |||||||
Capital replacements | $ | 8,867 | $ | 7,001 | |||
Capital improvements | 2,936 | 2,887 | |||||
Property upgrades | 17,832 | 11,273 | |||||
Redevelopment additions | 39,110 | 30,978 | |||||
Development additions | 1,390 | 15,616 | |||||
Casualty replacements | 1,327 | 1,744 | |||||
Real Estate capital additions | 71,462 | 69,499 | |||||
Plus: additions related to apartment communities sold or held for sale and unallocated indirect capitalized costs | 1,561 | 2,735 | |||||
Plus: additions related to consolidated asset managed communities | 1,237 | 1,365 | |||||
Consolidated capital additions | 74,260 | 73,599 | |||||
Plus: net change in accrued capital spending | 7,891 | 5,977 | |||||
Capital expenditures per consolidated statement of cash flows | $ | 82,151 | $ | 79,576 |
Location | Apartment Homes Approved for Redeveloped or Developed | Estimated Net Investment | Inception-to-Date Net Investment | Expected Stabilized Occupancy | Expected Net Operating Income Stabilization | |||||||||||
Under Redevelopment | ||||||||||||||||
Bay Parc Plaza | Miami, FL | (1) | $ | 16.0 | $ | 2.2 | (1) | (1) | ||||||||
Calhoun Beach Club | Minneapolis, MN | 275 | 28.7 | 1.1 | 1Q 2020 | 2Q 2021 | ||||||||||
Palazzo at Park La Brea (2) | Los Angeles, CA | 389 | 24.5 | 11.7 | 1Q 2019 | 2Q 2020 | ||||||||||
Park Towne Place | Philadelphia, PA | 701 | 136.3 | 122.1 | 1Q 2018 | 2Q 2019 | ||||||||||
Saybrook Pointe (3) | San Jose, CA | 324 | 18.3 | 7.3 | 1Q 2019 | 2Q 2020 | ||||||||||
The Sterling | Philadelphia, PA | 534 | 73.0 | 67.8 | 3Q 2017 | 4Q 2018 | ||||||||||
Yorktown | Lombard, IL | 292 | 25.7 | 9.4 | 3Q 2018 | 4Q 2019 | ||||||||||
In Lease-up | ||||||||||||||||
One Canal | Boston, MA | 310 | 195.0 | 192.2 | 1Q 2017 | 2Q 2018 | ||||||||||
Total | 2,825 | $ | 517.5 | $ | 413.8 |
(1) | This phase of the redevelopment project encompasses common area, amenity improvements and the creation of a new retail space. Approval of a second phase of redevelopment, which will include upgrades to all of the apartment homes within the community, is expected during 2017. |
(2) | During the three months ended March 31, 2017, we revised the expected occupancy stabilization and expected NOI stabilization dates for the Palazzo at Park La Brea redevelopment to reflect our decision to adjust deliveries in response to consumer demand. |
(3) | During the three months ended March 31, 2017, we approved an additional phase of the Saybrook Pointe redevelopment, with estimated net investment of $3.1 million and as a result, we increased the expected stabilized revenue per apartment home redeveloped from $2,900 to $2,960. |
Cash distributions paid by the Aimco Operating Partnership to holders of noncontrolling interests in consolidated real estate partnerships | $ | 1,123 | |
Cash distributions paid by the Aimco Operating Partnership to preferred unitholders (1) | 4,097 | ||
Cash distributions paid by the Aimco Operating Partnership to common unitholders (2) | 59,046 | ||
Total cash distributions paid by the Aimco Operating Partnership | $ | 64,266 |
(1) | $2.1 million represented distributions to Aimco, and $1.9 million represented distributions paid to holders of OP Units. |
(2) | $56.3 million represented distributions to Aimco, and $2.7 million represented distributions paid to holders of OP Units. |
Cash distributions paid by Aimco to holders of noncontrolling interests in consolidated real estate partnerships | $ | 1,123 | |
Cash distributions paid by Aimco to holders of OP Units | 4,667 | ||
Cash dividends paid by Aimco to preferred stockholders | 2,148 | ||
Cash dividends paid by Aimco to common stockholders | 56,328 | ||
Total cash dividends and distributions paid by Aimco | $ | 64,266 |
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk |
ITEM 4. | Controls and Procedures |
ITEM 1A. | Risk Factors |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Units Purchased | Average Price Paid per Unit | Total Number of Units Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Units that May Yet Be Purchased Under the Plans or Programs (1) | ||||||
January 1 - January 31, 2017 | 60,886 | $ | 44.66 | N/A | N/A | |||||
February 1 - February 28, 2017 | 3,837 | 44.48 | N/A | N/A | ||||||
March 1 - March 31, 2017 | 2,822 | 44.88 | N/A | N/A | ||||||
Total | 67,545 | $ | 44.66 |
(1) | The terms of the Aimco Operating Partnership’s Partnership Agreement do not provide for a maximum number of units that may be repurchased, and other than the express terms of its Partnership Agreement, the Aimco Operating Partnership has no publicly announced plans or programs of repurchase. However, whenever Aimco repurchases shares of its Common Stock, it is expected that Aimco will fund the repurchase with proceeds from a concurrent repurchase by the Aimco Operating Partnership of common partnership units held by Aimco at a price per unit that is equal to the price per share paid for its Common Stock. |
ITEM 6. | Exhibits |
EXHIBIT NO. (1) | DESCRIPTION | |||
3.1 | Charter (Exhibit 3.1 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015, is incorporated herein by this reference) | |||
3.2 | Amended and Restated Bylaws (Exhibit 3.1 to Aimco’s Current Report on Form 8-K dated January 26, 2016, is incorporated herein by this reference) | |||
10.1 | Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of July 29, 1994, as amended and restated as of February 28, 2007 (Exhibit 10.1 to Aimco’s Annual Report on Form 10-K for the year ended December 31, 2006, is incorporated herein by this reference) | |||
10.2 | First Amendment to Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of December 31, 2007 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated December 31, 2007, is incorporated herein by this reference) | |||
10.3 | Second Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of July 30, 2009 (Exhibit 10.1 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, is incorporated herein by this reference) | |||
10.4 | Third Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of September 2, 2010 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated September 1, 2010, is incorporated herein by this reference) | |||
10.5 | Fourth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of July 26, 2011 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated July 26, 2011, is incorporated herein by this reference) | |||
10.6 | Fifth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of August 24, 2011 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated August 24, 2011, is incorporated herein by this reference) | |||
10.7 | Sixth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of December 31, 2011 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated December 31, 2011, is incorporated herein by this reference) | |||
10.8 | Seventh Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of May 13, 2014 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated May 13, 2014, is incorporated herein by this reference) | |||
10.9 | Eighth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of October 31, 2014 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated October 31, 2014, is incorporated herein by this reference) | |||
10.10 | Ninth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of the Aimco Operating Partnership, dated as of August 16, 2016 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated August 16, 2016, is incorporated herein by this reference) | |||
10.11 | Tenth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of January 31, 2017 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated January 31, 2017, is incorporated herein by this reference) | |||
31.1 | Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Aimco | |||
31.2 | Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Aimco | |||
31.3 | Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – The Aimco Operating Partnership | |||
31.4 | Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – The Aimco Operating Partnership | |||
32.1 | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Aimco | |||
32.2 | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – The Aimco Operating Partnership | |||
99.1 | Agreement Regarding Disclosure of Long-Term Debt Instruments – Aimco | |||
99.2 | Agreement Regarding Disclosure of Long-Term Debt Instruments – The Aimco Operating Partnership |
EXHIBIT NO. (1) | DESCRIPTION | ||
101 | XBRL (Extensible Business Reporting Language). The following materials from Aimco’s and the Aimco Operating Partnership’s combined Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017, tagged in XBRL: (i) condensed consolidated balance sheets; (ii) condensed consolidated statements of operations; (iii) condensed consolidated statements of comprehensive income; (iv) condensed consolidated statements of cash flows; and (v) notes to condensed consolidated financial statements. | ||
(1) | Schedules and supplemental materials to the exhibits have been omitted but will be provided to the Securities and Exchange Commission upon request. |
APARTMENT INVESTMENT AND MANAGEMENT COMPANY | ||
By: | /s/ PAUL BELDIN | |
Paul Beldin | ||
Executive Vice President and Chief Financial Officer | ||
(duly authorized officer and | ||
principal financial officer) | ||
By: | /s/ ANDREW HIGDON | |
Andrew Higdon | ||
Senior Vice President and | ||
Chief Accounting Officer |
AIMCO PROPERTIES, L.P. | ||
By: | AIMCO-GP, Inc., its general partner | |
By: | /s/ PAUL BELDIN | |
Paul Beldin | ||
Executive Vice President and Chief Financial Officer | ||
(duly authorized officer and | ||
principal financial officer) | ||
By: | /s/ ANDREW HIGDON | |
Andrew Higdon | ||
Senior Vice President and | ||
Chief Accounting Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Apartment Investment and Management Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Terry Considine | |
Terry Considine | |
Chairman and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Apartment Investment and Management Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Paul Beldin | |
Paul Beldin | |
Executive Vice President and Chief | |
Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of AIMCO Properties, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Terry Considine | |
Terry Considine | |
Chairman and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of AIMCO Properties, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Paul Beldin | |
Paul Beldin | |
Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Terry Considine | |
Terry Considine | |
Chairman and Chief Executive Officer | |
May 4, 2017 |
/s/ Paul Beldin | |
Paul Beldin | |
Executive Vice President and Chief Financial Officer | |
May 4, 2017 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
/s/ Terry Considine | |
Terry Considine | |
Chairman and Chief Executive Officer | |
May 4, 2017 |
/s/ Paul Beldin | |
Paul Beldin | |
Executive Vice President and Chief Financial Officer | |
May 4, 2017 |
By: | /s/ Paul Beldin | |
Paul Beldin | ||
Executive Vice President and Chief Financial Officer | ||
May 4, 2017 |
By: | /s/ Paul Beldin | |
Paul Beldin | ||
Executive Vice President and Chief Financial Officer | ||
May 4, 2017 |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2017 |
May 03, 2017 |
|
Entity Registrant Name | APARTMENT INVESTMENT & MANAGEMENT CO | |
Entity Central Index Key | 0000922864 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 157,022,248 | |
AIMCO PROPERTIES, L.P [Member] | ||
Entity Registrant Name | AIMCO PROPERTIES LP | |
Entity Central Index Key | 0000926660 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 164,536,351 |
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 500,787,260 | 500,787,260 |
Common Stock, shares issued (in shares) | 157,022,248 | 156,888,381 |
Common Stock, shares outstanding (in shares) | 157,022,248 | 156,888,381 |
Organization |
3 Months Ended |
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Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Apartment Investment and Management Company, or Aimco, is a Maryland corporation incorporated on January 10, 1994. Aimco is a self-administered and self-managed real estate investment trust, or REIT. AIMCO Properties, L.P., or the Aimco Operating Partnership, is a Delaware limited partnership formed on May 16, 1994, to conduct our business, which is focused on the ownership, management, redevelopment and limited development of quality apartment communities located in the largest markets in the United States. Aimco, through its wholly-owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, owns a majority of the ownership interests in the Aimco Operating Partnership. Aimco conducts all of its business and owns all of its assets through the Aimco Operating Partnership. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are referred to as OP Units. OP Units include common partnership units and high performance partnership units, which we refer to as common OP Units, as well as partnership preferred units, which we refer to as preferred OP Units. As of March 31, 2017, after eliminations for units held by consolidated subsidiaries, the Aimco Operating Partnership had 164,650,596 common partnership units and equivalents outstanding. As of March 31, 2017, Aimco owned 157,022,248 of the common partnership units (95.4% of the common partnership units and equivalents) of the Aimco Operating Partnership and Aimco had outstanding an equal number of shares of its Class A Common Stock, which we refer to as Common Stock. Except as the context otherwise requires, “we,” “our” and “us” refer to Aimco, the Aimco Operating Partnership and their consolidated subsidiaries, collectively. As of March 31, 2017, we owned an equity interest in 141 apartment communities with 39,173 apartment homes that comprised our real estate portfolio. Our Real Estate portfolio, which comprises our reportable segment, is diversified by both price point and geography and consists primarily of market rate apartment communities in which we own a substantial interest. We consolidated 137 of these apartment communities with 39,031 apartment homes. As of March 31, 2017, we also owned nominal ownership positions in partnerships holding 47 low-income housing tax credit apartment communities with 7,098 apartment homes. We provide services to these partnerships and receive fees and other payments in return. Our relationship with these partnerships is different than real estate ownership and is better described as an asset management business, or Asset Management. In accordance with accounting principles generally accepted in the United States of America, or GAAP, we are required to consolidate most of the partnerships and 40 of the apartment communities with 6,411 apartment homes. |
Basis of Presentation and Summary of Significant Accounting Policies |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The balance sheets of Aimco and the Aimco Operating Partnership at December 31, 2016, have been derived from their respective audited financial statements at that date, but do not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the financial statements and notes thereto included in Aimco’s and the Aimco Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2016. Except where indicated, the footnotes refer to both Aimco and the Aimco Operating Partnership. Effective March 31, 2017, we modified our condensed consolidated balance sheets to present the assets and liabilities of consolidated partnerships served by our Asset Management business separately from those amounts relating to our Real Estate portfolio. We have similarly modified our condensed consolidated statements of operations to present separately the rental and other property revenues and property operating expenses of consolidated partnerships served by our Asset Management business. We have reclassified these items in the condensed consolidated balance sheets as of December 31, 2016, and in the condensed consolidated statements of operations for the three months ended March 31, 2016, to conform to the current presentation. These modifications had no effect on previously reported total assets, total liabilities or net income amounts. Principles of Consolidation Aimco’s accompanying condensed consolidated financial statements include the accounts of Aimco, the Aimco Operating Partnership, and their consolidated subsidiaries. The Aimco Operating Partnership’s condensed consolidated financial statements include the accounts of the Aimco Operating Partnership and its consolidated subsidiaries, including partnerships served by our Asset Management business, which are consolidated in accordance with GAAP, as further discussed in Note 8. All significant intercompany balances and transactions have been eliminated in consolidation. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are reflected in Aimco’s accompanying balance sheets as noncontrolling interests in the Aimco Operating Partnership. Interests in partnerships consolidated by the Aimco Operating Partnership that are held by third parties are reflected in our accompanying balance sheets as noncontrolling interests in consolidated real estate partnerships. Temporary Equity and Partners’ Capital The following table presents a reconciliation of the Aimco Operating Partnership’s Preferred OP Units from December 31, 2016 to March 31, 2017. The Preferred OP Units may be redeemed at the holders’ option (as further discussed in Note 5), and therefore are presented within temporary equity in Aimco’s condensed consolidated balance sheets and within temporary capital in the Aimco Operating Partnership’s condensed consolidated balance sheets (in thousands).
Aimco Equity (including Noncontrolling Interests) The following table presents a reconciliation of Aimco’s consolidated permanent equity accounts from December 31, 2016 to March 31, 2017 (in thousands):
Refer to the heading Accounting Pronouncements Adopted in the Current Year for further discussion of the cumulative effect of a change in accounting principle. Partners’ Capital attributable to the Aimco Operating Partnership The following table presents a reconciliation of the consolidated partners’ capital balances in permanent capital that are attributable to the Aimco Operating Partnership from December 31, 2016 to March 31, 2017 (in thousands):
A separate reconciliation of noncontrolling interests in consolidated real estate partnerships and total partners’ capital for the Aimco Operating Partnership is not presented as these amounts are identical to the corresponding noncontrolling interests in consolidated real estate partnerships and total equity for Aimco, which are presented above. Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates. Accounting Pronouncements Adopted in the Current Year Effective January 1, 2017, we adopted a new standard issued by the Financial Accounting Standards Board, or FASB, that simplifies the accounting for the income tax consequences of intercompany transfers of assets. Previously, the recognition within the statement of operations of income tax expense or benefit resulting from an intercompany transfer of assets did not occur until the assets affect GAAP income or loss, for example, through depreciation, impairment or upon the sale of the asset to a third-party. Under the new standard, an entity recognizes the income tax expense or benefit from an intercompany transfer of assets when the transfer occurs. We have applied this change on a modified retrospective basis and recorded a cumulative effect adjustment to retained earnings of $62.5 million as of January 1, 2017, representing accumulated unrecognized tax expense from intercompany transfers between the Aimco Operating Partnership and TRS entities. Such amounts were included in other assets within our consolidated balance sheets at December 31, 2016. Also effective January 1, 2017, we adopted guidance that simplifies the accounting for share-based compensation. Under prior practice, tax benefits in excess of those associated with compensation cost recognized in accordance with GAAP, or windfalls, were recorded in equity and tax deficiencies were recorded in equity until previous windfalls had been recouped and then recognized in earnings. Under the new guidance, all of the tax effects related to share-based compensation are recognized through earnings. This guidance is applied to all windfalls and tax deficiencies resulting from settlements occurring after January 1, 2017. The new guidance also requires windfalls to be recorded when they arise. This change in timing of recognition has been applied on a modified retrospective basis. We did not record a cumulative effect adjustment to opening retained earnings on the date of adoption as there were no accumulated windfalls recorded in equity. Compared to prior periods, we may experience incremental volatility in income tax benefit or expense resulting from the recognition in earnings of windfall benefits or deficiencies upon the exercise of stock options and vesting of restricted shares. |
Acquisitions, Dispositions and Other Significant Transactions |
3 Months Ended |
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Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposals and Other Significant Transactions | Dispositions of Apartment Communities and Assets Held for Sale During the three months ended March 31, 2017, one of the partnerships served by the Asset Management business sold an apartment community with 52 apartment homes, resulting in a gain of $0.6 million and related tax expense of $0.5 million. We are currently marketing for sale certain apartment communities that are inconsistent with our long-term investment strategy. Additionally, the consolidated partnerships served by our Asset Management business are marketing for sale certain of their apartment communities. At the end of each reporting period, we evaluate whether any consolidated apartment communities meet the criteria to be classified as held for sale. As of March 31, 2017, one apartment community with 200 apartment homes owned by a partnership served by the Asset Management business was classified as held for sale. |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In connection with our redevelopment, development and capital improvement activities, we have entered into various construction-related contracts and we have made commitments to complete redevelopment of certain apartment communities, pursuant to financing or other arrangements. As of March 31, 2017, our commitments related to these capital activities totaled approximately $86.2 million, most of which we expect to incur during the next 12 months. We enter into certain commitments for future purchases of goods and services in connection with the operations of our apartment communities. Those commitments generally have terms of one year or less and reflect expenditure levels comparable to our historical expenditures. Tax Credit Arrangements For various consolidated partnerships served by our Asset Management business, we are required to manage the partnerships and related apartment communities in compliance with various laws, regulations and contractual provisions that apply to our historic and low-income housing tax credit syndication arrangements. In some instances, noncompliance with applicable requirements could result in projected tax benefits not being realized by the limited partners in these partnerships and would require a refund or reduction of investor capital contributions, which are reported as deferred income in our condensed consolidated balance sheets, until such time as our obligation to deliver tax benefits is relieved. The remaining compliance periods for the tax credit syndication arrangements range from less than one year to eight years. We do not anticipate that any material refunds or reductions of investor capital contributions will be required in connection with these arrangements. Income Taxes In 2014, the Internal Revenue Service initiated an audit of the Aimco Operating Partnership’s 2011 and 2012 tax years. We do not believe the audit will have any material effect on our unrecognized tax benefits, financial condition or results of operations. Legal Matters In addition to the matters described below, we are a party to various legal actions and administrative proceedings arising in the ordinary course of business, some of which are covered by our general liability insurance program, and none of which we expect to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Limited Partnerships In connection with our acquisitions of interests in real estate partnerships, we are sometimes subject to legal actions, including allegations that such activities may involve breaches of fiduciary duties to the partners of such real estate partnerships or violations of the relevant partnership agreements. We may incur costs in connection with the defense or settlement of such litigation. We believe that we comply with our fiduciary obligations and relevant partnership agreements. Although the outcome of any litigation is uncertain, we do not expect any such legal actions to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Environmental Various Federal, state and local laws subject apartment community owners or operators to liability for management, and the costs of removal or remediation, of certain potentially hazardous materials that may be present in the land or buildings of an apartment community. Potentially hazardous materials may include polychlorinated biphenyls, petroleum-based fuels, lead-based paint, or asbestos, among other items. Such laws often impose liability without regard to fault or whether the owner or operator knew of, or was responsible for, the presence of such materials. The presence of, or the failure to manage or remediate properly, these materials may adversely affect occupancy at such apartment communities as well as the ability to sell or finance such apartment communities. In addition, governmental agencies may bring claims for costs associated with investigation and remediation actions, damages to natural resources and for potential fines or penalties in connection with such damage or with respect to the improper management of hazardous materials. Moreover, private plaintiffs may potentially make claims for investigation and remediation costs they incur or for personal injury, disease, disability or other infirmities related to the alleged presence of hazardous materials at an apartment community. In addition to potential environmental liabilities or costs associated with our current apartment communities, we may also be responsible for such liabilities or costs associated with communities we acquire or manage in the future, or apartment communities we no longer own or operate. We are engaged in discussions with the Environmental Protection Agency, or EPA, and the Indiana Department of Environmental Management, or IDEM, regarding contaminated groundwater in a residential area in the vicinity of an Indiana apartment community that has not been owned by us since 2008. The contamination allegedly derives from a dry cleaner that operated on our former property, prior to our ownership. We have undertaken a voluntary remediation of the dry cleaner contamination under IDEM’s oversight, and in previous years accrued our share of the then estimated cleanup and abatement costs. However, in September 2016, EPA listed our former community and a number of residential communities in the vicinity on the National Priorities List, or NPL, (i.e. as a Superfund site), and IDEM has formally sought to terminate us from the voluntary remediation program. We have filed a formal appeal with the EPA opposing the listing and already appealed IDEM’s decision to terminate us from the voluntary remediation program. Although the outcome of these processes are uncertain, we do not expect their resolution to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We also have been contacted by regulators and the current owner of a property in Lake Tahoe regarding environmental issues allegedly stemming from the historic operation of a dry cleaner. An entity owned by us was the former general partner of a now-dissolved company that previously owned the dry cleaner site. That entity and the current property owner have been remediating the dry cleaner site since 2009, under the oversight of the Lahontan Regional Water Quality Control Board, or Lahontan. In July 2016, Lahontan sent us, the current property owner and a former operator of the dry cleaner a proposed cleanup and abatement order that rejects technical and legal arguments we previously made to Lahontan, and which if entered, would require all three parties to perform additional groundwater investigation and corrective actions with respect to onsite and offsite contamination. In September, we submitted comments to this proposed order, and no final order has yet been issued. Although the outcome of this process is uncertain, we do not expect its resolution to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We have determined that our legal obligations to remove or remediate certain potentially hazardous materials may be conditional asset retirement obligations, as defined in GAAP. Except in limited circumstances where the asset retirement activities are expected to be performed in connection with a planned construction project or apartment community casualty, we believe that the fair value of our asset retirement obligations cannot be reasonably estimated due to significant uncertainties in the timing and manner of settlement of those obligations. Asset retirement obligations that are reasonably estimable as of March 31, 2017, are immaterial to our consolidated financial condition, results of operations and cash flows. |
Earnings per Share/Unit |
3 Months Ended |
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Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share/Unit | Earnings per Share/Unit Aimco calculates basic earnings per common share based on the weighted average number of shares of Common Stock and participating securities outstanding and calculates diluted earnings per share taking into consideration dilutive common stock equivalents and dilutive convertible securities outstanding during the period. The Aimco Operating Partnership calculates basic earnings per common unit based on the weighted average number of common partnership units and participating securities outstanding and calculates diluted earnings per unit taking into consideration dilutive common unit equivalents and dilutive convertible securities outstanding during the period. Our common stock and common partnership unit equivalents include options to purchase shares of Common Stock, which, if exercised, would result in Aimco’s issuance of additional shares and the Aimco Operating Partnership’s issuance to Aimco of additional common partnership units equal to the number of shares purchased under the options. These equivalents also include unvested total shareholder return-based restricted stock and unit awards that do not meet the definition of participating securities, which would result in an increase in the number of common shares and common partnership units outstanding equal to the number of shares that vest. The effect of these securities was dilutive for the three months ended March 31, 2017 and 2016, and accordingly has been included in the denominator for calculating diluted earnings per share and unit during these periods. Our time-based restricted stock awards receive dividends similar to shares of Common Stock and common partnership units prior to vesting. These dividends are not forfeited in the event that the restricted stock does not vest. Therefore, the unvested shares and units related to these awards are participating securities. The effect of participating securities is included in basic and diluted earnings per share and unit computations using the two-class method of allocating distributed and undistributed earnings. There were 0.2 million unvested participating shares and units at March 31, 2017 and 2016. The Aimco Operating Partnership has various classes of preferred OP Units, which may be redeemed at the holders’ option. The Aimco Operating Partnership may redeem these units for cash, or at its option, shares of Common Stock. As of March 31, 2017, these preferred OP Units were potentially redeemable for approximately 2.3 million shares of Common Stock (based on the period end market price), or cash. The Aimco Operating Partnership has a redemption policy that requires cash settlement of redemption requests for the preferred OP Units, subject to limited exceptions. Accordingly, we have excluded these securities from earnings per share and unit computations and we expect to exclude them in future periods. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements We measure at fair value on a recurring basis our investments in the securitization trust that holds certain of our property debt, which we classify as available for sale, or AFS, securities, and our interest rate swaps, both of which are classified within Level 2 of the GAAP fair value hierarchy. Our investments classified as AFS are presented within other assets in the accompanying condensed consolidated balance sheets. We hold several positions in the securitization trust that pay interest currently and we also hold the first loss position in the securitization trust, which accrues interest over the term of the investment. We are accreting the discount to the $100.9 million face value of the investments into interest income using the effective interest method over the remaining term of the investments, which, as of March 31, 2017, was approximately 4.2 years. Our amortized cost basis for these investments, which represents the original cost adjusted for interest accretion less interest payments received, was $73.8 million and $72.5 million at March 31, 2017 and December 31, 2016, respectively. We estimated the fair value of these investments to be $75.8 million and $76.1 million at March 31, 2017 and December 31, 2016, respectively. We estimate the fair value of these investments using an income and market approach primarily with observable inputs, including yields and other information regarding similar types of investments, and adjusted for certain unobservable inputs specific to these investments. The fair value of the positions that pay interest currently typically moves in an inverse relationship with movements in interest rates. The fair value of the first loss position is primarily correlated to collateral quality and demand for similar subordinate commercial mortgage-backed securities. Certain consolidated partnerships served by our Asset Management business have entered into interest rate swap agreements, which limit exposure to interest rate fluctuations on the partnerships’ variable-rate debt by effectively converting the interest on variable-rate debt to a fixed rate. We estimate the fair value of interest rate swaps using an income approach with primarily observable inputs including information regarding the hedged variable cash flows and forward yield curves relating to the variable interest rates on which the hedged cash flows are based. The following table sets forth a summary of the changes in fair value of these interest rate swaps (in thousands):
As of March 31, 2017 and December 31, 2016, these interest rate swaps had aggregate notional amounts of $49.4 million and $49.6 million, respectively. As of March 31, 2017, these swaps had a weighted average remaining term of 3.7 years. We have designated these interest rate swaps as cash flow hedges. The fair value of these swaps is presented within accrued liabilities and other in our condensed consolidated balance sheets, and we recognize any changes in the fair value as an adjustment of accumulated other comprehensive loss within equity and partners’ capital to the extent of their effectiveness. If the forward rates at March 31, 2017 remain constant, we estimate that during the next 12 months, we would reclassify approximately $1.2 million of the unrealized losses in accumulated other comprehensive loss into earnings. If market interest rates increase above the 3.44% weighted average fixed rate under these interest rate swaps the consolidated partnerships will benefit from net cash payments due from the counterparties to the interest rate swaps. Fair Value Disclosures We believe that the aggregate fair value of the consolidated amounts of cash and cash equivalents, receivables and payables approximates their aggregate carrying amounts at March 31, 2017 and December 31, 2016, due to their relatively short-term nature and high probability of realization. The estimated aggregate fair value of consolidated total indebtedness associated with our Real Estate portfolio and the non-recourse property debt of the consolidated partnerships served by our Asset Management was approximately $4.1 billion and $4.0 billion at March 31, 2017 and December 31, 2016, respectively, as compared to aggregate carrying amounts of $4.0 billion and $3.9 billion, respectively. We estimate the fair value of debt using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, contractual interest rates, remaining periods to maturity, collateral quality and loan to value ratios on similarly encumbered assets within our portfolio. We classify the fair value of debt within Level 3 of the GAAP valuation hierarchy based on the significance of certain of the unobservable inputs used to estimate their fair values. |
Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments During the three months ended March 31, 2017, we revised the information regularly reviewed by our chief executive officer, who is our chief operating decision maker, to assess our operating performance. As of March 31, 2017, apartment communities are classified as either part of our Real Estate portfolio or those owned through partnerships served by our Asset Management business. Our Real Estate portfolio consisted of 141 apartment communities with 39,173 apartment homes at March 31, 2017. This portfolio is diversified by both price point and geography and consists primarily of market rate apartment communities. As discussed in Note 8, as of March 31, 2017, 19 of these communities with 6,110 apartment homes are owned through partnerships in which we do not own all of the economic interests. Due to this diversity of our economic ownership interests in apartment communities in our Real Estate portfolio, our chief operating decision maker uses proportionate property net operating income to assess the operating performance of our apartment communities. Proportionate property net operating income reflects our share of rental and other property revenues less direct property operating expenses, including real estate taxes, for consolidated apartment communities we own and manage. As of March 31, 2017, for segment performance evaluation, our Real Estate segment included 137 consolidated apartment communities with 39,031 apartment homes and excluded four apartment communities with 142 apartment homes that we neither manage nor consolidate. As discussed in Note 1, as of March 31, 2017, we also owned nominal ownership positions in consolidated partnerships for whom we provide asset management services. These partnerships hold 47 low-income housing tax credit apartment communities with 7,098 apartment homes. Neither the results of operations, nor the assets of these partnerships and apartment communities are quantitatively material; therefore, we have one reportable segment, Real Estate. The results of operations for the three months ended March 31, 2016, and the segment assets as of December 31, 2016, shown below have been revised to reflect this change in reportable segments. The following tables present the revenues, net operating income and income before gain on dispositions of our Real Estate segment on a proportionate basis (excluding amounts related to apartment communities sold or classified as held for sale) for the three months ended March 31, 2017 and 2016 (in thousands):
For the three months ended March 31, 2017 and 2016, capital additions related to our Real Estate segment totaled $71.5 million and $69.5 million, respectively. The assets of our reportable segment and the consolidated assets not allocated to our segment are as follows (in thousands):
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Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities Aimco consolidates the Aimco Operating Partnership, which is a variable interest entity, or VIE, for which Aimco is the primary beneficiary. Aimco, through the Aimco Operating Partnership, consolidates all VIEs for which we are the primary beneficiary. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A limited partnership is considered a VIE when the majority of the limited partners unrelated to the general partner possess neither the right to remove the general partner without cause, nor certain rights to participate in the decisions that most significantly affect the financial results of the partnership. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to our business activities and the business activities of the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. All of the VIEs we consolidate own interests in one or more apartment communities. VIEs that own apartment communities we classify as part of our Real Estate segment are typically structured to generate a return for their partners through the operation and ultimate sale of the communities. We are the primary beneficiary in the limited partnerships in which we are the sole decision maker and have a substantial economic interest. All of the partnerships served by our Asset Management business own interests in low-income housing tax credit apartment communities that are structured to provide for the pass-through of tax credits and tax deductions to their partners and are VIEs. We hold a nominal ownership position in these partnerships, generally one percent or less. As general partner in these partnerships, we are the sole decision maker and we receive fees and other payments in return for the asset management and other services we provide and thus share in the economics of the partnerships, and as such, we are the primary beneficiary of these partnerships. The table below summarizes information regarding VIEs consolidated by the Aimco Operating Partnership:
Assets of the Aimco Operating Partnership’s consolidated VIEs must first be used to settle the liabilities of such consolidated VIEs. These consolidated VIEs’ creditors do not have recourse to the general credit of the Aimco Operating Partnership. Assets and liabilities of consolidated VIEs are summarized in the table below (in thousands):
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Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The balance sheets of Aimco and the Aimco Operating Partnership at December 31, 2016, have been derived from their respective audited financial statements at that date, but do not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the financial statements and notes thereto included in Aimco’s and the Aimco Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2016. Except where indicated, the footnotes refer to both Aimco and the Aimco Operating Partnership. Effective March 31, 2017, we modified our condensed consolidated balance sheets to present the assets and liabilities of consolidated partnerships served by our Asset Management business separately from those amounts relating to our Real Estate portfolio. We have similarly modified our condensed consolidated statements of operations to present separately the rental and other property revenues and property operating expenses of consolidated partnerships served by our Asset Management business. We have reclassified these items in the condensed consolidated balance sheets as of December 31, 2016, and in the condensed consolidated statements of operations for the three months ended March 31, 2016, to conform to the current presentation. These modifications had no effect on previously reported total assets, total liabilities or net income amounts. |
Principles of Consolidation | Principles of Consolidation Aimco’s accompanying condensed consolidated financial statements include the accounts of Aimco, the Aimco Operating Partnership, and their consolidated subsidiaries. The Aimco Operating Partnership’s condensed consolidated financial statements include the accounts of the Aimco Operating Partnership and its consolidated subsidiaries, including partnerships served by our Asset Management business, which are consolidated in accordance with GAAP, as further discussed in Note 8. All significant intercompany balances and transactions have been eliminated in consolidation. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are reflected in Aimco’s accompanying balance sheets as noncontrolling interests in the Aimco Operating Partnership. Interests in partnerships consolidated by the Aimco Operating Partnership that are held by third parties are reflected in our accompanying balance sheets as noncontrolling interests in consolidated real estate partnerships. |
Temporary Equity and Partners' Capital | The Preferred OP Units may be redeemed at the holders’ option (as further discussed in Note 5), and therefore are presented within temporary equity in Aimco’s condensed consolidated balance sheets and within temporary capital in the Aimco Operating Partnership’s condensed consolidated balance sheets (in thousands). |
Use of Estimates | Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Accounting Pronouncements Adopted in the Current Year Effective January 1, 2017, we adopted a new standard issued by the Financial Accounting Standards Board, or FASB, that simplifies the accounting for the income tax consequences of intercompany transfers of assets. Previously, the recognition within the statement of operations of income tax expense or benefit resulting from an intercompany transfer of assets did not occur until the assets affect GAAP income or loss, for example, through depreciation, impairment or upon the sale of the asset to a third-party. Under the new standard, an entity recognizes the income tax expense or benefit from an intercompany transfer of assets when the transfer occurs. We have applied this change on a modified retrospective basis and recorded a cumulative effect adjustment to retained earnings of $62.5 million as of January 1, 2017, representing accumulated unrecognized tax expense from intercompany transfers between the Aimco Operating Partnership and TRS entities. Such amounts were included in other assets within our consolidated balance sheets at December 31, 2016. Also effective January 1, 2017, we adopted guidance that simplifies the accounting for share-based compensation. Under prior practice, tax benefits in excess of those associated with compensation cost recognized in accordance with GAAP, or windfalls, were recorded in equity and tax deficiencies were recorded in equity until previous windfalls had been recouped and then recognized in earnings. Under the new guidance, all of the tax effects related to share-based compensation are recognized through earnings. This guidance is applied to all windfalls and tax deficiencies resulting from settlements occurring after January 1, 2017. The new guidance also requires windfalls to be recorded when they arise. This change in timing of recognition has been applied on a modified retrospective basis. We did not record a cumulative effect adjustment to opening retained earnings on the date of adoption as there were no accumulated windfalls recorded in equity. Compared to prior periods, we may experience incremental volatility in income tax benefit or expense resulting from the recognition in earnings of windfall benefits or deficiencies upon the exercise of stock options and vesting of restricted shares. |
Basis of Presentation and Summary of Significant Accounting Policies (Tables) |
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Schedule of Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of consolidated temporary equity accounts | The following table presents a reconciliation of the Aimco Operating Partnership’s Preferred OP Units from December 31, 2016 to March 31, 2017. The Preferred OP Units may be redeemed at the holders’ option (as further discussed in Note 5), and therefore are presented within temporary equity in Aimco’s condensed consolidated balance sheets and within temporary capital in the Aimco Operating Partnership’s condensed consolidated balance sheets (in thousands).
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Reconciliation of consolidated permanent equity accounts | The following table presents a reconciliation of Aimco’s consolidated permanent equity accounts from December 31, 2016 to March 31, 2017 (in thousands):
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Schedule of Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of consolidated permanent equity accounts | The following table presents a reconciliation of the consolidated partners’ capital balances in permanent capital that are attributable to the Aimco Operating Partnership from December 31, 2016 to March 31, 2017 (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth a summary of the changes in fair value of these interest rate swaps (in thousands):
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Business Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary information for the reportable segments | The following tables present the revenues, net operating income and income before gain on dispositions of our Real Estate segment on a proportionate basis (excluding amounts related to apartment communities sold or classified as held for sale) for the three months ended March 31, 2017 and 2016 (in thousands):
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Reconciliation of Assets from Segment to Consolidated [Table Text Block] | The assets of our reportable segment and the consolidated assets not allocated to our segment are as follows (in thousands):
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Variable Interest Entities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The table below summarizes information regarding VIEs consolidated by the Aimco Operating Partnership:
Assets of the Aimco Operating Partnership’s consolidated VIEs must first be used to settle the liabilities of such consolidated VIEs. These consolidated VIEs’ creditors do not have recourse to the general credit of the Aimco Operating Partnership. Assets and liabilities of consolidated VIEs are summarized in the table below (in thousands):
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Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cumulative effect of a change in accounting principle | $ (62,467) |
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2016 | $ 103,201 |
Balance, March 31, 2017 | 101,606 |
AIMCO PROPERTIES, L.P [Member] | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2016 | 103,201 |
Distributions to preferred unitholders | (1,949) |
Redemption of preferred units and other | (1,595) |
Net income | 1,949 |
Balance, March 31, 2017 | $ 101,606 |
Earnings per Share/Unit (Details Textual) - USD ($) $ in Thousands, shares in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2016 |
---|---|---|---|
Earnings Per Share [Abstract] | |||
Participating securities outstanding (in shares) | 0.2 | 0.2 | |
Preferred noncontrolling interests in Aimco Operating Partnership | $ 101,606 | $ 103,201 | |
Number of shares potentially redeemable for (in shares) | 2.3 |
Fair Value Measurements (Details) - Interest Rate Swap [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
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Fair Value Assets and Liabilities Measured on Recurring Basis Fair value and input reconciliation [Roll Forward] | ||
Cash Flow Hedge Fair Value, Beginning Balance | $ (3,175) | $ (4,938) |
Unrealized losses included in interest expense | (12) | (11) |
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive loss | 386 | 420 |
Unrealized losses included in equity and partners’ capital | (10) | (674) |
Cash Flow Hedge Fair Value, Ending Balance | $ (2,811) | $ (5,203) |
Business Segments (Details 1) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
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Segment Reporting Information [Line Items] | ||
Total assets | $ 6,187,440 | $ 6,232,818 |
Operating Segments [Member] | Aimco Real Estate [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,559,827 | 5,545,693 |
Corporate Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 627,613 | $ 687,125 |
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