QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Apartment Income REIT Corp.: | Apartment Income REIT, L.P.: |
Apartment Income REIT Corp.: | Apartment Income REIT, L.P.: |
Apartment Income REIT Corp.: | Apartment Income REIT, L.P.: |
x | Accelerated filer | o | x | Accelerated filer | o | ||||||||||||||||||
Non-accelerated filer | o | Smaller reporting company | Non-accelerated filer | o | Smaller reporting company | ||||||||||||||||||
Emerging growth company | Emerging growth company |
Apartment Income REIT Corp.: | o | Apartment Income REIT, L.P.: | o |
Page | ||||||||
ITEM 6. | ||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Buildings and improvements | $ | $ | |||||||||
Land | |||||||||||
Total real estate | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Net real estate | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Goodwill | |||||||||||
Other assets, net | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Non-recourse property debt, net | $ | $ | |||||||||
Term loans, net | |||||||||||
Revolving credit facility borrowings | |||||||||||
Unsecured notes payable, net | |||||||||||
Total indebtedness | |||||||||||
Accrued liabilities and other | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 6) | |||||||||||
Preferred noncontrolling interests in AIR Operating Partnership | |||||||||||
Equity: | |||||||||||
Perpetual Preferred Stock | |||||||||||
Common Stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Distributions in excess of earnings | ( | ( | |||||||||
Total AIR equity | |||||||||||
Noncontrolling interests in consolidated real estate partnerships | ( | ( | |||||||||
Common noncontrolling interests in AIR Operating Partnership | |||||||||||
Total equity | |||||||||||
Total liabilities, preferred noncontrolling interests in AIR Operating Partnership, and equity | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Rental and other property revenues | $ | $ | $ | $ | |||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Property operating expenses | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Other expenses (income), net | ( | ||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Loss on extinguishment of debt | ( | ( | |||||||||||||||||||||
(Loss) gain on dispositions and impairments of real estate | ( | ( | |||||||||||||||||||||
Gain on derivative instruments, net | |||||||||||||||||||||||
Loss from unconsolidated real estate partnerships | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income tax expense | ( | ||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Noncontrolling interests: | |||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | ( | ( | ( | ||||||||||||||||||||
Net income attributable to preferred noncontrolling interests in AIR Operating Partnership | ( | ( | ( | ( | |||||||||||||||||||
Net loss (income) attributable to common noncontrolling interests in AIR Operating Partnership | ( | ( | |||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Net (loss) income attributable to AIR | ( | ( | |||||||||||||||||||||
Net income attributable to AIR preferred stockholders | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to participating securities | ( | ( | ( | ( | |||||||||||||||||||
Net (loss) income attributable to AIR common stockholders | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net (loss) income attributable to AIR common stockholders per share – basic and diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted-average common shares outstanding – basic | |||||||||||||||||||||||
Weighted-average common shares outstanding – diluted |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Unrealized gain on derivative instruments, net | |||||||||||||||||||||||
Reclassification of interest rate derivative (gain) loss to net income (loss) | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) | ( | ||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income (loss) attributable to AIR | $ | $ | $ | ( | $ |
Perpetual Preferred Stock | Common Stock | Additional Paid- in Capital | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Earnings | Total AIR Equity | Noncontrolling Interests in Consolidated Real Estate Partnerships | Common Noncontrolling Interests in AIR Operating Partnership | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issued | Amount | Shares Issued | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of AIR Operating Partnership units | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of Common Stock, net | — | — | ( | ( | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation cost | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of changes in ownership of consolidated entities | — | — | — | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated real estate partnerships | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock dividends | — | — | — | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | — | — | — | ( | — | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of AIR Operating Partnership units | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation cost | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of changes in ownership of consolidated entities | — | — | — | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests in consolidated real estate partnerships | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated real estate partnerships | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | — | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock dividends | — | — | — | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2023 | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ |
Perpetual Preferred Stock | Common Stock | Additional Paid- in Capital | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Earnings | Total AIR Equity | Noncontrolling Interests in Consolidated Real Estate Partnerships | Common Noncontrolling Interests in AIR Operating Partnership | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issued | Amount | Shares Issued | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of AIR Operating Partnership units | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of Common Stock, net | — | — | ( | ( | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation cost | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of changes in ownership of consolidated entities | — | — | — | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated real estate partnerships | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock dividends | — | — | — | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | ( | ( | ( | — | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of AIR Operating Partnership units | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of AIR Operating Partnership units | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation cost | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of changes in ownership of consolidated entities | — | — | — | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests in consolidated real estate partnerships | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated real estate partnerships | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | — | — | — | — | ( | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | — | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock dividends | — | — | — | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2023 | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Loss (gain) on dispositions and impairments of real estate | ( | ||||||||||
Loss on extinguishment of debt | |||||||||||
Income tax expense | |||||||||||
Other, net | |||||||||||
Net changes in operating assets and operating liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of real estate | ( | ( | |||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from dispositions of real estate | |||||||||||
Proceeds from repayment of note receivable | |||||||||||
Other investing activities, net | ( | ||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Principal repayments on non-recourse property debt | ( | ( | |||||||||
Proceeds from non-recourse property debt | |||||||||||
Repayment of term loan | ( | ||||||||||
Net (repayments of) borrowings on revolving credit facility | ( | ( | |||||||||
Proceeds from the issuance of unsecured notes payable | |||||||||||
Repurchases of Common Stock | ( | ||||||||||
Payment of dividends to holders of Common Stock | ( | ( | |||||||||
Payment of distributions to common noncontrolling interests | ( | ( | |||||||||
Redemptions of noncontrolling interests in the AIR Operating Partnership | ( | ( | |||||||||
Other financing activities, net | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | ( | ||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | |||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Buildings and improvements | $ | $ | |||||||||
Land | |||||||||||
Total real estate | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Net real estate | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Goodwill | |||||||||||
Other assets, net | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||||||
Non-recourse property debt, net | $ | $ | |||||||||
Term loans, net | |||||||||||
Revolving credit facility borrowings | |||||||||||
Unsecured notes payable, net | |||||||||||
Total indebtedness | |||||||||||
Accrued liabilities and other | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 6) | |||||||||||
Redeemable preferred units | |||||||||||
Partners’ capital: | |||||||||||
Preferred units | |||||||||||
General Partner and Special Limited Partner | |||||||||||
Limited Partners | |||||||||||
Partners’ capital attributable to the AIR Operating Partnership | |||||||||||
Noncontrolling interests in consolidated real estate partnerships | ( | ( | |||||||||
Total partners’ capital | |||||||||||
Total liabilities, redeemable preferred units, and partners’ capital | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Rental and other property revenues | $ | $ | $ | $ | |||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Property operating expenses | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Other expenses (income), net | ( | ||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Loss on extinguishment of debt | ( | ( | |||||||||||||||||||||
(Loss) gain on dispositions and impairments of real estate | ( | ( | |||||||||||||||||||||
Gain on derivative instruments, net | |||||||||||||||||||||||
Loss from unconsolidated real estate partnerships | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income tax expense | ( | ||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | ( | ( | ( | ||||||||||||||||||||
Net (loss) income attributable to the AIR Operating Partnership | ( | ( | |||||||||||||||||||||
Net income attributable to the AIR Operating Partnership's preferred unitholders | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to participating securities | ( | ( | ( | ( | |||||||||||||||||||
Net (loss) income attributable to the AIR Operating Partnership’s common unitholders | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net (loss) income attributable to the AIR Operating Partnership common unitholders per unit – basic and diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted-average common units outstanding – basic | |||||||||||||||||||||||
Weighted-average common units outstanding – diluted |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Unrealized gain on derivative instruments, net | |||||||||||||||||||||||
Reclassification of interest rate derivative (gain) loss to net income (loss) | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) | ( | ||||||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) attributable to the AIR Operating Partnership | $ | $ | $ | ( | $ |
Preferred Units | General Partner and Special Limited Partner | Limited Partners | Partners' Capital Attributable to the AIR Operating Partnership | Noncontrolling Interests in Consolidated Real Estate Partnerships | Total Partners' Capital | ||||||||||||||||||||||||||||||
Balances at March 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Redemption of common partnership units | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||
Repurchase of common partnership units | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Amortization of share-based compensation cost | — | — | |||||||||||||||||||||||||||||||||
Effect of changes in ownership of consolidated entities | — | ( | — | — | |||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated real estate partnerships | — | — | — | — | |||||||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | — | |||||||||||||||||||||||||||||||||
Net income | — | ||||||||||||||||||||||||||||||||||
Distributions to common unitholders | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Other, net | — | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Balances at March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Redemption of common partnership units | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||
Amortization of share-based compensation cost | — | — | |||||||||||||||||||||||||||||||||
Effect of changes in ownership of consolidated entities | — | ( | — | — | |||||||||||||||||||||||||||||||
Purchase of noncontrolling interests in consolidated real estate partnerships | — | — | ( | ( | |||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated real estate partnerships | — | — | — | — | |||||||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | — | |||||||||||||||||||||||||||||||||
Net (loss) income | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Distributions to common unitholders | — | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other, net | — | ( | ( | ||||||||||||||||||||||||||||||||
Balances at June 30, 2023 | $ | $ | $ | $ | $ | ( | $ |
Preferred Units | General Partner and Special Limited Partner | Limited Partners | Partners' Capital Attributable to the AIR Operating Partnership | Noncontrolling Interests in Consolidated Real Estate Partnerships | Total Partners' Capital | ||||||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Redemption of common partnership units | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||
Repurchase of common partnership units | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Amortization of share-based compensation cost | — | — | |||||||||||||||||||||||||||||||||
Effect of changes in ownership of consolidated entities | — | ( | — | — | |||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated real estate partnerships | — | — | — | — | |||||||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | — | |||||||||||||||||||||||||||||||||
Net income (loss) | — | ( | |||||||||||||||||||||||||||||||||
Distributions to common unitholders | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Other, net | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Balances at December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of AIR Operating Partnership units | — | — | — | ||||||||||||||||||||||||||||||||
Redemption of common partnership units | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||
Amortization of share-based compensation cost | — | — | |||||||||||||||||||||||||||||||||
Effect of changes in ownership of consolidated entities | — | ( | — | — | |||||||||||||||||||||||||||||||
Purchase of noncontrolling interests in consolidated real estate partnerships | — | — | ( | ( | |||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated real estate partnerships | — | — | — | — | |||||||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | — | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||
Net (loss) income | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Distributions to common unitholders | — | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | ( | ( | |||||||||||||||||||||||||||||||
Other, net | — | — | ( | ||||||||||||||||||||||||||||||||
Balances at June 30, 2023 | $ | $ | $ | $ | $ | ( | $ |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Loss (gain) on dispositions and impairments of real estate | ( | ||||||||||
Loss on extinguishment of debt | |||||||||||
Income tax expense | |||||||||||
Other, net | |||||||||||
Net changes in operating assets and operating liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of real estate | ( | ( | |||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from dispositions of real estate | |||||||||||
Proceeds from repayment of note receivable | |||||||||||
Other investing activities, net | ( | ||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Principal repayments on non-recourse property debt | ( | ( | |||||||||
Proceeds from non-recourse property debt | |||||||||||
Repayment of term loan | ( | ||||||||||
Net (repayments of) borrowings on revolving credit facility | ( | ( | |||||||||
Proceeds from the issuance of unsecured notes payable | |||||||||||
Repurchases of common partnership units held by General Partner and Special Limited Partner | ( | ||||||||||
Payment of distributions to General Partner and Special Limited Partner | ( | ( | |||||||||
Payment of distributions to Limited Partners | ( | ( | |||||||||
Payment of distributions to noncontrolling interests | ( | ( | |||||||||
Redemption of common and preferred units | ( | ( | |||||||||
Other financing activities, net | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | ( | ||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | |||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ | $ |
Balance at January 1, 2023 | $ | ||||
Preferred distributions | ( | ||||
Net income allocated to preferred units | |||||
Balance at June 30, 2023 | $ |
Purchase price | $ | ||||
Capitalized transaction costs | |||||
Total consideration (1) | $ | ||||
Land | $ | ||||
Building and improvements | |||||
Intangible assets (2) | |||||
Mark-to-market on debt assumed | |||||
Below-market lease liabilities (2) | ( | ||||
Total consideration (1) | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
Fixed lease income | $ | $ | $ | $ | |||||||||||||||||||
Variable lease income | |||||||||||||||||||||||
$ | $ | $ | $ |
2023 (remaining) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
Secured debt: | |||||||||||
Fixed-rate property debt due May 2025 to January 2055 (1) | $ | $ | |||||||||
Variable-rate property debt | |||||||||||
Total non-recourse property debt | |||||||||||
Debt issuance costs, net of accumulated amortization | ( | ( | |||||||||
Total non-recourse property debt, net | $ | $ | |||||||||
Unsecured debt: | |||||||||||
Term loans due December 2023 to April 2026 (2) | $ | $ | |||||||||
Revolving credit facility borrowings due April 2025 (3) | |||||||||||
Total unsecured debt | |||||||||||
Debt issuance costs, net of accumulated amortization | ( | ( | |||||||||
Total unsecured debt, net | $ | $ | |||||||||
Total indebtedness | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Basic and dilutive net (loss) income attributable to AIR common stockholders | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Denominator – shares: | |||||||||||||||||||||||
Basic weighted-average common shares outstanding | |||||||||||||||||||||||
Dilutive common share equivalents outstanding | |||||||||||||||||||||||
Dilutive weighted-average common shares outstanding | |||||||||||||||||||||||
Earnings per share – basic and diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Earnings per unit | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Basic and dilutive net (loss) income attributable to the AIR Operating Partnership’s common unitholders | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Denominator – units: | |||||||||||||||||||||||
Basic weighted-average common units outstanding | |||||||||||||||||||||||
Dilutive common unit equivalents outstanding | |||||||||||||||||||||||
Dilutive weighted-average common units outstanding | |||||||||||||||||||||||
Earnings per unit – basic and diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
As of June 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
Interest rate option (1) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Interest rate swaps - pay-fixed, receive floating | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Interest rate swaps - pay-floating, receive fixed | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Treasury rate lock | $ | $ | $ | $ | $ | $ | $ | $ |
As of June 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Non-recourse property debt | $ | $ | $ | $ | |||||||||||||||||||
Unsecured notes payable | $ | $ | $ | $ | |||||||||||||||||||
Seller financing note receivable, net (1) | $ | $ | $ | $ |
As of June 30, 2023 | |||||||||||||||||||||||
Number of | Aggregate Notional | Derivative Assets (included in Other Assets, net) | Derivative Liabilities (included in Accrued Liabilities and Other) | ||||||||||||||||||||
Instruments | Amount | Fair Value | |||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Treasury rate locks | $ | $ | $ | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate swap, floating to fixed | $ | $ | $ | ||||||||||||||||||||
Interest rate swap, fixed to floating | $ | $ | $ | ( |
As of December 31, 2022 | |||||||||||||||||||||||
Number of | Aggregate Notional | Derivative Assets (included in Other Assets, net) | Derivative Liabilities (included in Accrued Liabilities and Other) | ||||||||||||||||||||
Instruments | Amount | Fair Value | |||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Treasury rate locks | $ | $ | $ | ||||||||||||||||||||
Interest rate swaps, floating to fixed | $ | $ | $ |
June 30, 2023 (1) | December 31, 2022 | ||||||||||
VIEs with interests in apartment communities | |||||||||||
Apartment communities owned by VIEs | |||||||||||
Apartment homes in communities owned by VIEs |
June 30, 2023 | December 31, 2022 | ||||||||||
ASSETS: | |||||||||||
Net real estate | $ | $ | |||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Other assets, net | |||||||||||
LIABILITIES: | |||||||||||
Non-recourse property debt, net | $ | $ | |||||||||
Accrued liabilities and other |
Same Store | Other Real Estate | Proportionate and Other Adjustments (1) | Corporate and Amounts Not Allocated to Segments (2) | Consolidated | |||||||||||||||||||||||||
Three months ended June 30, 2023: | |||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Property operating expenses | |||||||||||||||||||||||||||||
Other operating expenses not allocated to segments (3) | |||||||||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||||||||
Proportionate property net operating income (loss) | ( | ||||||||||||||||||||||||||||
Other items included in income (loss) before income tax expense (4) | ( | ( | |||||||||||||||||||||||||||
Income (loss) before income tax expense | $ | $ | $ | $ | ( | $ |
Same Store | Other Real Estate | Proportionate and Other Adjustments (1) | Corporate and Amounts Not Allocated to Segments (2) | Consolidated | |||||||||||||||||||||||||
Six months ended June 30, 2023: | |||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Property operating expenses | |||||||||||||||||||||||||||||
Other operating expenses not allocated to segments (3) | |||||||||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||||||||
Proportionate property net operating income (loss) | ( | ||||||||||||||||||||||||||||
Other items included in income (loss) before income tax expense (4) | ( | ( | |||||||||||||||||||||||||||
Income (loss) before income tax expense | $ | $ | $ | $ | ( | $ | ( |
Same Store | Other Real Estate | Proportionate and Other Adjustments (1) | Corporate and Amounts Not Allocated to Segments (2) | Consolidated | |||||||||||||||||||||||||
Three months ended June 30, 2022: | |||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Property operating expenses | |||||||||||||||||||||||||||||
Other operating expenses not allocated to segments (3) | |||||||||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||||||||
Proportionate property net operating income (loss) | ( | ||||||||||||||||||||||||||||
Other items included in income before income tax expense (4) | |||||||||||||||||||||||||||||
Income before income tax expense | $ | $ | $ | $ | $ |
Same Store | Other Real Estate | Proportionate and Other Adjustments (1) | Corporate and Amounts Not Allocated to Segments (2) | Consolidated | |||||||||||||||||||||||||
Six months ended June 30, 2022: | |||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Property operating expenses | |||||||||||||||||||||||||||||
Other operating expenses not allocated to segments (3) | |||||||||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||||||||
Proportionate property net operating income (loss) | ( | ||||||||||||||||||||||||||||
Other items included in income before income tax expense (4) | |||||||||||||||||||||||||||||
Income from before income tax expense | $ | $ | $ | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
Same Store | $ | $ | |||||||||
Other Real Estate | |||||||||||
Corporate and other assets (1) | |||||||||||
Total consolidated assets | $ | $ |
2023 | 2022 | ||||||||||
Same Store | $ | $ | |||||||||
Other Real Estate | |||||||||||
Total capital additions | $ | $ |
Year-over-Year Variance (1) | ||||||||||||||||||||||||||||||||
Year | Apartment Communities | % of Gross Asset Value | Rev | Exp | NOI | |||||||||||||||||||||||||||
Class of 2021 (2) | 5 | 8.0% | 19.0% | (2.2%) | 30.5% |
Sequential Variance (3) | ||||||||||||||||||||
Year | Apartment Communities | % of Gross Asset Value | NOI | |||||||||||||||||
Class of 2021 (2) | 5 | 8.0% | 4.9% | |||||||||||||||||
Class of 2022 and 2023 (4) | 5 | 9.0% | 3.4% | |||||||||||||||||
Acquisition Portfolio | 10 | 17.0% | 4.1% | |||||||||||||||||
Total Portfolio | 73 | 100.0% | 1.7% |
California JV | Washington, D.C. JV | Core JV | Value-Add JV | ||||||||||||||||||||
September 2020 | October 2021 | July 2023 | June 2023 | ||||||||||||||||||||
Gross Asset Value @ 100% | $2.4B | $0.5B | $1.1B | $0.1B | |||||||||||||||||||
AIR / JV Partner Ownership | 61% / 39% | 20% / 80% | 53% / 47% | 30% / 70% (1) | |||||||||||||||||||
Number of Properties | 12 | 3 | 10 | 1 | |||||||||||||||||||
Units | 4,051 | 1,748 | 3,093 | 443 | |||||||||||||||||||
Average Revenue per Unit | $3,389 | $2,070 | $2,534 | $2,307 | |||||||||||||||||||
Three Months Ended | Historical Change | Change Attributable to Changes in Ownership | Change Excluding Changes in Ownership | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2023 | June 30, 2022 | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||||||||
Rental and other property revenues, before utility reimbursements: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | $ | 160,180 | $ | 147,075 | $ | 13,105 | 8.9 | % | $ | 233 | 0.1 | % | $ | 12,872 | 8.8 | % | ||||||||||||||||||||||||||||||||||
Other Real Estate | 29,684 | 3,718 | 25,966 | nm | — | — | % | 25,966 | nm | |||||||||||||||||||||||||||||||||||||||||
Total | 189,864 | 150,793 | 39,071 | 25.9 | % | 233 | 0.1 | % | 38,838 | 25.8 | % | |||||||||||||||||||||||||||||||||||||||
Property operating expenses, net of utility reimbursements: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | 41,330 | 39,667 | 1,663 | 4.2 | % | 65 | 0.1 | % | 1,598 | 4.1 | % | |||||||||||||||||||||||||||||||||||||||
Other Real Estate | 10,640 | 1,989 | 8,651 | nm | — | — | % | 8,651 | nm | |||||||||||||||||||||||||||||||||||||||||
Total | 51,970 | 41,656 | 10,314 | 24.8 | % | 65 | 0.1 | % | 10,249 | 24.7 | % | |||||||||||||||||||||||||||||||||||||||
Proportionate property net operating income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | 118,850 | 107,408 | 11,442 | 10.7 | % | 168 | 0.1 | % | 11,274 | 10.6 | % | |||||||||||||||||||||||||||||||||||||||
Other Real Estate | 19,044 | 1,729 | 17,315 | nm | — | — | % | 17,315 | nm | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 137,894 | $ | 109,137 | $ | 28,757 | 26.3 | % | $ | 168 | 0.1 | % | $ | 28,589 | 26.2 | % |
Six Months Ended | Historical Change | Change Attributable to Changes in Ownership | Change Excluding Changes in Ownership | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2023 | June 30, 2022 | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||||||||
Rental and other property revenues, before utility reimbursements: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | $318,082 | $290,405 | $27,677 | 9.5 | % | $ | 460 | 0.1 | % | $ | 27,217 | 9.4 | % | |||||||||||||||||||||||||||||||||||||
Other Real Estate | 59,501 | 4,952 | 54,549 | nm | — | — | % | 54,549 | nm | |||||||||||||||||||||||||||||||||||||||||
Total | 377,583 | 295,357 | 82,226 | 27.8 | % | 460 | 0.1 | % | 81,766 | 27.7 | % | |||||||||||||||||||||||||||||||||||||||
Property operating expenses, net of utility reimbursements: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | 82,577 | 79,553 | 3,024 | 3.8 | % | 95 | 0.1 | % | 2,929 | 3.7 | % | |||||||||||||||||||||||||||||||||||||||
Other Real Estate | 21,911 | 2,928 | 18,983 | nm | — | — | % | 18,983 | nm | |||||||||||||||||||||||||||||||||||||||||
Total | 104,488 | 82,481 | 22,007 | 26.7 | % | 95 | 0.1 | % | 21,912 | 26.6 | % | |||||||||||||||||||||||||||||||||||||||
Proportionate property net operating income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | 235,505 | 210,852 | 24,653 | 11.7 | % | 365 | 0.1 | % | 24,288 | 11.6 | % | |||||||||||||||||||||||||||||||||||||||
Other Real Estate | 37,590 | 2,024 | 35,566 | nm | — | — | % | 35,566 | nm | |||||||||||||||||||||||||||||||||||||||||
Total | $273,095 | $212,876 | $60,219 | 28.3 | % | $ | 365 | 0.1 | % | $ | 59,854 | 28.2 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
Net (loss) income attributable to AIR common stockholders | $ | (1,439) | $ | 196,722 | $ | (12,896) | $572,603 | ||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Real estate depreciation and amortization, net of noncontrolling partners’ interest | 83,749 | 73,922 | 173,761 | 155,379 | |||||||||||||||||||
Loss (gain) on dispositions and impairments of real estate, net of noncontrolling partners’ interest | 17,472 | (175,450) | 17,472 | (587,453) | |||||||||||||||||||
Income tax adjustments related to gain on dispositions and other tax-related items | — | (1,100) | — | (1,100) | |||||||||||||||||||
Common noncontrolling interests in AIR OP’s share of above adjustments and amounts allocable to participating securities | (6,889) | 6,328 | (12,811) | 26,577 | |||||||||||||||||||
NAREIT FFO attributable to AIR common stockholders | $ | 92,893 | $ | 100,422 | $ | 165,526 | $ | 166,006 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Gain on derivative instruments (1) | (11,390) | — | (9,246) | — | |||||||||||||||||||
Non-cash straight-line rent (2) | 3,090 | 642 | 6,180 | 1,284 | |||||||||||||||||||
Business transformation and transition related costs (3) | 310 | 1,593 | 523 | 2,462 | |||||||||||||||||||
Loss on extinguishment of debt (4) | — | — | 2,008 | 23,636 | |||||||||||||||||||
Casualty losses and other | 281 | 322 | 2,127 | 678 | |||||||||||||||||||
Common noncontrolling interests in AIR OP’s share of above adjustments and amounts allocable to participating securities | 533 | (160) | (93) | (1,738) | |||||||||||||||||||
Pro forma FFO attributable to AIR common stockholders | $ | 85,717 | $ | 102,819 | $ | 167,025 | $ | 192,328 | |||||||||||||||
Weighted-average common shares outstanding – basic | 148,832 | 155,927 | 148,821 | 156,327 | |||||||||||||||||||
Dilutive common share equivalents | 55 | 209 | 65 | 280 | |||||||||||||||||||
Total shares and dilutive share equivalents | 148,887 | 156,136 | 148,886 | 156,607 | |||||||||||||||||||
Net income attributable to AIR per share – diluted | $ | (0.01) | $ | 1.26 | $ | (0.09) | $ | 3.66 | |||||||||||||||
NAREIT FFO per share – diluted | $ | 0.62 | $ | 0.64 | $ | 1.11 | $ | 1.06 | |||||||||||||||
Pro forma FFO per share – diluted | $ | 0.58 | $ | 0.66 | $ | 1.12 | $ | 1.23 |
Annualized Current Quarter | Annualized Current Quarter Pro forma for the Core Joint Venture Transaction | ||||||||||
Proportionate Debt to Adjusted EBITDAre | 6.3x | 5.7x | |||||||||
Net Leverage to Adjusted EBITDAre | 6.5x | 5.9x |
June 30, 2023 | |||||
Total indebtedness | $ | 3,684,577 | |||
Adjustments: | |||||
Debt issuance costs related to non-recourse property debt and term loans | 18,425 | ||||
Proportionate share adjustments related to debt obligations | (360,696) | ||||
Cash and restricted cash | (129,913) | ||||
Tenant security deposits included in restricted cash | 11,633 | ||||
Proportionate share adjustments related to cash and restricted cash | 9,082 | ||||
Proportionate Debt | $ | 3,233,108 | |||
Perpetual Preferred Stock | 2,000 | ||||
Preferred noncontrolling interests in AIR Operating Partnership | 77,143 | ||||
Net Leverage | $ | 3,312,251 | |||
Leverage reduction funded by Core Joint Venture transaction | (451,904) | ||||
Net Leverage, Pro forma for Core Joint Venture transaction | $ | 2,860,347 |
Three Months Ended June 30, 2023 | |||||
Net income | $ | 598 | |||
Adjustments: | |||||
Interest expense | 37,554 | ||||
Income tax expense | 1,177 | ||||
Depreciation and amortization | 89,260 | ||||
Loss on dispositions and impairments of real estate | 17,472 | ||||
Net income attributable to noncontrolling interests in consolidated real estate partnerships | (684) | ||||
EBITDAre adjustments attributable to noncontrolling interests and unconsolidated real estate partnerships | (6,765) | ||||
EBITDAre | $ | 138,612 | |||
Pro forma FFO and other adjustments, net (1) | (8,554) | ||||
Quarterly Adjusted EBITDAre | $ | 130,058 | |||
Adjusted EBITDAre, before removal of annualization impact for non-recurring items | $ | 520,232 | |||
Removal of annualization impact for non-recurring items (2) | (7,218) | ||||
Adjusted EBITDAre | $ | 513,014 | |||
Core Joint Venture transaction, annualized | (27,410) | ||||
Pro forma Adjusted EBITDAre | $ | 485,604 |
Six Months Ended | |||||||||||
June 30, 2023 | June 30, 2022 | ||||||||||
Capital replacements | $ | 17,372 | $ | 12,916 | |||||||
Capital improvements | 5,880 | 6,855 | |||||||||
Capital enhancements | 44,756 | 41,920 | |||||||||
Initial capital expenditures | 15,250 | 12,807 | |||||||||
Casualty | 4,646 | 10,828 | |||||||||
Entitlement and planning | 133 | 1,027 | |||||||||
Total capital additions | $ | 88,037 | $ | 86,353 | |||||||
Plus: additions related to apartment communities sold and held for sale | 3,307 | 3,446 | |||||||||
Consolidated capital additions | $ | 91,344 | $ | 89,799 | |||||||
Plus: net change in accrued capital spending | (1,956) | 800 | |||||||||
Total capital expenditures per condensed consolidated statements of cash flows | $ | 89,388 | $ | 90,599 |
Fiscal period | Total Number of Units Repurchased | Average Price Paid per Unit | Total Number of Units Repurchased as Part of Publicly Announced Plans or Programs | Maximum Number of Units that May Yet Be Repurchased Under Plans or Programs (1) | ||||||||||||||||||||||
April 1 – April 30, 2023 | 110,316 | $ | 35.78 | N/A | N/A | |||||||||||||||||||||
May 1 – May 31, 2023 | 35,624 | $ | 35.20 | N/A | N/A | |||||||||||||||||||||
June 1 – June 30, 2023 | 2,144 | $ | 35.42 | N/A | N/A | |||||||||||||||||||||
Total | 148,084 | $ | 35.63 |
EXHIBIT NO. | DESCRIPTION | |||||||
3.1 | ||||||||
3.2 | ||||||||
10.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
31.3 | ||||||||
31.4 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | The following materials from AIR’s and the AIR Operating Partnership’s combined Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) condensed consolidated balance sheets; (ii) condensed consolidated statements of operations; (iii) condensed consolidated statements of comprehensive income; (iv) condensed consolidated statements of equity and partners’ capital; (v) condensed consolidated statements of cash flows; and (vi) notes to condensed consolidated financial statements. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
APARTMENT INCOME REIT CORP. | ||||||||
By: | /s/ Molly H.N. Syke | |||||||
Molly H.N. Syke | ||||||||
Vice President and Chief Accounting Officer | ||||||||
APARTMENT INCOME REIT, L.P. | ||||||||
By: | AIR-GP, Inc., its General Partner | |||||||
By: | /s/ Molly H.N. Syke | |||||||
Molly H.N. Syke | ||||||||
Vice President and Chief Accounting Officer | ||||||||
Date: July 28, 2023 |
/s/ Terry Considine | ||||||||
Terry Considine | ||||||||
Director and Chief Executive Officer |
/s/ Paul Beldin | ||||||||
Paul Beldin | ||||||||
Executive Vice President and Chief | ||||||||
Financial Officer |
/s/ Terry Considine | ||||||||
Terry Considine | ||||||||
Director and Chief Executive Officer |
/s/ Paul Beldin | ||||||||
Paul Beldin | ||||||||
Executive Vice President and Chief Financial Officer |
/s/ Terry Considine | ||||||||
Terry Considine | ||||||||
Director and Chief Executive Officer | ||||||||
July 28, 2023 |
/s/ Paul Beldin | ||||||||
Paul Beldin | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
July 28, 2023 |
/s/ Terry Considine | ||||||||
Terry Considine | ||||||||
Director and Chief Executive Officer | ||||||||
July 28, 2023 |
/s/ Paul Beldin | ||||||||
Paul Beldin | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
July 28, 2023 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2023 |
Dec. 31, 2022 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,021,175,000 | 1,021,175,000 |
Common stock, shares issued | 149,223,526 | 149,086,548 |
Common stock, shares outstanding | 149,223,526 | 149,086,548 |
Basis of Presentation and Organization |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | Basis of Presentation and Organization Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Apartment Income REIT Corp. (“AIR”), Apartment Income REIT, L.P. (“AIR Operating Partnership”), and their consolidated subsidiaries. The AIR Operating Partnership’s condensed consolidated financial statements include the accounts of the AIR Operating Partnership and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As used herein, and except where the context otherwise requires, “partnership” refers to a limited partnership or a limited liability company and “partner” refers to a partner in a limited partnership or a member of a limited liability company. Interests in the AIR Operating Partnership that are held by limited partners other than AIR are reflected in AIR’s accompanying condensed consolidated balance sheets as noncontrolling interests in the AIR Operating Partnership. Interests in partnerships consolidated by the AIR Operating Partnership that are held by third parties are reflected in AIR’s and AIR Operating Partnership’s accompanying condensed consolidated balance sheets as noncontrolling interests in consolidated real estate partnerships. Except as the context otherwise requires, “we,” “our,” and “us” refer to AIR, the AIR Operating Partnership, and their consolidated subsidiaries, collectively. 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 and six months ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The condensed consolidated balance sheets of AIR, the AIR Operating Partnership, and their consolidated subsidiaries as of December 31, 2022, 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 AIR’s and the AIR Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2022. Except where indicated, the footnotes refer to AIR, the AIR Operating Partnership and their consolidated subsidiaries, collectively. Reclassifications Certain prior period balances in the condensed consolidated balance sheets, statements of operations, and statements of cash flows have been combined or reclassified to conform to current period presentation pursuant to Rule 10-01(a)(2) of Regulation S-X of the SEC. These changes had no impact on net income (loss), cash flows, assets and liabilities, equity or partners’ capital previously reported. Organization and Business AIR is a self-administered and self-managed REIT. AIR owns, through its wholly-owned subsidiaries, the general partner interest and special limited partner interest in AIR Operating Partnership. AIR Operating Partnership conducts all of the business of AIR, which is focused on the ownership of stabilized multi-family properties located in top markets including eight important geographic concentrations: Boston; Philadelphia; Washington, D.C.; Miami; Denver; the San Francisco Bay Area; Los Angeles; and San Diego. We own and operate a portfolio of stabilized apartment communities, diversified by both geography and price point, in 10 states and the District of Columbia. As of June 30, 2023, our portfolio included 73 apartment communities with 25,739 apartment homes, in which we held an average ownership of approximately 87%. We also have one land parcel and one indirect land interest that we lease to third parties. Interests in the AIR Operating Partnership that are held by limited partners other than AIR are referred to as OP Units. OP Units include common partnership units, which we refer to as common OP Units, as well as preferred partnership units, which we refer to as preferred OP Units. As of June 30, 2023, after elimination of units held by consolidated subsidiaries, the AIR Operating Partnership had 163,508,889 common OP Units outstanding. As of June 30, 2023, AIR owned 149,223,526 of the common OP Units of the AIR Operating Partnership and AIR had an equal number of shares of its Class A Common Stock outstanding, which we refer to as Common Stock. AIR’s ownership of the total common OP Units outstanding represents a 91.3% legal interest in the AIR Operating Partnership and a 93.1% economic interest.
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Summary of Significant Accounting Policies |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation We consolidate variable interest entities (“VIEs”), in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. As of June 30, 2023 and December 31, 2022, AIR consolidated six and seven VIEs, respectively, including the AIR Operating Partnership. Redeemable Preferred OP Units The AIR Operating Partnership has various classes of preferred OP Units. Each class of preferred OP Units is currently redeemable at the holders’ option. The AIR Operating Partnership, at its sole discretion, may settle such redemption requests in cash or cause AIR to issue shares of its Common Stock with a value equal to the redemption price. The preferred OP Units are therefore presented within temporary equity in AIR’s condensed consolidated balance sheets and within temporary partners’ capital in the AIR Operating Partnership’s condensed consolidated balance sheets. The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units’ redemption value (in thousands):
The AIR Operating Partnership has outstanding various classes of redeemable preferred OP Units. As of June 30, 2023 and December 31, 2022, the AIR Operating Partnership had 2,846,574 redeemable preferred OP Units issued and outstanding. Distributions per annum range from 1.92% to 8.75% per class and $0.48 to $8.00 per unit. 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 condensed consolidated financial statements and accompanying notes thereto. Actual results could differ from those estimates.
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Significant Transactions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Transactions | Significant Transactions Apartment Community Acquisitions During the six months ended June 30, 2023, we acquired one apartment community in South Florida, with 495 apartment homes, and 29,000 square feet of commercial space. Summarized information regarding this acquisition is set forth in the table below (dollars in thousands):
(1)Total consideration includes $101.2 million of debt assumed and the issuance of $22.4 million in common OP Units. (2)Intangible assets and below-market lease liabilities have a weighted-average term of 1.4 years and 0.5 years, respectively. Apartment Community Dispositions During the three and six months ended June 30, 2023, we sold two apartment communities with 62 apartment homes included in our Other Real Estate segment. During the three months ended June 30, 2022, we sold four apartment communities with 718 homes, three of which were included in our Same Store segment and one in our Other Real Estate segment, for a gain on disposition of $175.6 million. During the six months ended June 30, 2022, we sold 12 apartment communities with 2,050 homes, 10 of which were included in our Same Store segment and two included in our Other Real Estate segment, for a gain on disposition of $587.6 million. At the end of each reporting period we evaluate whether such communities meet the criteria to be classified as held for sale. As of June 30, 2023, no communities were classified as held for sale. Impairment Real estate and other long-lived assets to be held and used are individually evaluated for impairment when conditions exist that may indicate the carrying amount of a long-lived asset may not be recoverable. Impairment indicators include significant fluctuations in rental and other property revenues less property operating expenses, occupancy changes, significant near-term lease expirations, current and historical cash flow losses, rental rates, and if applicable, a comparison of an asset’s carrying value to its estimated fair value. Upon determination that an impairment has occurred, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the community. During the three months ended June 30, 2023, we evaluated the expected hold period of two real estate assets in our Other Real Estate reporting segment. Given management’s assessment of the likelihood of the sale of these assets, we reduced the carrying value to their estimated fair value and recognized a non-cash impairment loss on real estate of $8.2 million. During the three months ended June 30, 2023, these two properties sold for their estimated carrying value. Additionally, during the quarter we evaluated the expected hold period of one additional real estate asset in our Other Real Estate reporting segment. Given management’s assessment of the likelihood of its pending sale, we reduced the carrying value to its estimated fair value and recognized a non-cash impairment loss on real estate of $15.4 million. Subsequent to June 30, 2023, we received a non-refundable deposit on this community, which is expected to be sold by year end. This sale will complete our previously announced exit from the New York market. During the three and six months ended June 30, 2022, we did not recognize any impairment losses. Joint Venture Transactions During the three months ended June 30, 2023, we formed an unconsolidated joint venture (the "Value-Add JV") with a global asset manager by selling a 70% interest in our Huntington Gateway property, a 443-unit property located in Virginia. Gross proceeds from this sale were $9 million and the joint venture assumed $94.1 million of debt. We recognized a gain of $6.4 million in connection with the transaction. AIR is the general partner with legal ownership of 30%, and AIR will receive 50% of the cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture. Subsequent to June 30, 2023, we formed a joint venture with a global institutional investor (the "Core JV") through selling a 47% interest in a portfolio of 10 of our Same Store properties in Philadelphia, Washington D.C., Denver, San Diego, and Miami with 3,093 apartment homes and average monthly revenues of $2,534. Eight of the ten properties are now closed. Our purchases of two are subject to regulatory approvals, expected before year-end. In preparation for the joint venture, AIR borrowed $611.4 million in new non-recourse property debt. The properties were contributed to the Core JV subject to this debt. Specifically, the first eight properties contributed were subject to $584.8 million of debt, and AIR received $184.6 million in cash. Assuming the completion of the two pending transactions, AIR will receive $17.3 million in additional cash, and the Core JV will be subject to an additional $59.6 million of the new non-recourse property debt. The net of these two transactions is that AIR will receive $813.3 million in cash, with proceeds used to prepay $292.0 million on the revolving credit facility and $325.0 million of term loans, with weighted-average interest rates of slightly less than 6%, and the remaining invested in short-term liquid investments.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Tenant Lessor Arrangements The majority of lease payments we receive from our residents are fixed. We receive variable payments from our residents primarily for utility reimbursements. Our total lease income was comprised of the following amounts for all operating leases (in thousands):
Generally, our residential leases do not provide extension options and, as of June 30, 2023, have an average remaining term of 17.1 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. As of June 30, 2023, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following table summarizes our total indebtedness (in thousands):
(1)In the first quarter of 2023, AIR borrowed $320 million using 10-year fixed rate financing, bearing interest at 4.9%. Proceeds were used to refinance a floating rate loan and reduce borrowings by $230 million on our revolving credit facility. The stated rates on our fixed-rate property debt are between 2.4% to 5.7%. (2)The term loans bear interest at a one-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.00% and a SOFR adjustment of 10-basis points, based on our current credit rating. As of June 30, 2023, the weighted-average interest rate for our term loans before consideration of in place interest rate swaps was 6.2%. The term loans mature on the following schedule: $150 million mature on December 15, 2023, with two one-year extension options; $300 million mature on December 15, 2024, with a one-year extension option; $150 million mature on December 15, 2025; and $200 million mature on April 14, 2026. As of June 30, 2023, the weighted-average remaining term of the term loans was 2.5 years. Refer to Note 9 for additional discussion regarding the purpose of these transactions. Subsequent to the closing of the Core JV, our floating rate debt, after consideration of our interest rate swaps, is $125 million, or 4% of total leverage. (3)As of June 30, 2023, we had capacity to borrow up to $703.7 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a one-month Term SOFR plus 0.89%, based on our current credit rating, and a SOFR adjustment of 10-basis points. As of June 30, 2023, the weighted-average interest rate for our revolving credit facility was 6.1% During the three months ended June 30, 2023, we established a secured credit facility that provides for up to $1 billion of committed property level financing, on an as needed basis. The facility has minimal upfront costs, a 15-year term, and provides AIR the opportunity to place up to 10-year non-recourse property debt financing. Pricing can be fixed rate or variable rate at AIR's choice and is based on the Fannie Mae grid. After consideration of the secured credit facility, total liquidity is approximately $1.8 billion. Under our credit agreement and unsecured notes payable, we have agreed to maintain certain financial covenants, as well as other covenants customary for similar credit arrangements. The financial covenants we are required to maintain include a maximum leverage ratio of no greater than 0.60 to 1.00; a fixed charge coverage ratio of no less than 1.50 to 1.00, a maximum secured indebtedness to total assets ratio of no greater than 0.40 to 1.00, a maximum unsecured leverage ratio no greater than 0.60 to 1.00, and a minimum unsecured interest coverage ratio no less than 1.50 to 1.00.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 condensed 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. 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. 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. 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 have determined that our legal obligations to remove or remediate certain potentially hazardous materials may be conditional asset retirement obligations (“AROs”), as defined by 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 AROs cannot be reasonably estimated due to significant uncertainties in the timing and manner of settlement of those obligations. AROs that are reasonably estimable as of June 30, 2023, are immaterial to our condensed consolidated financial statements.
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Earnings and Dividends per Share and per Unit |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings and Dividends per Share and per Unit | Earnings and Dividends per Share and per Unit Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit are as follows (in thousands, except per share and per unit data):
For the three and six months ended June 30, 2023 and 2022, dividends and distributions paid per share of Common Stock and per common unit were $0.45 and $0.90, respectively. The number of common share equivalent securities excluded from the diluted earnings per share calculation was 2.2 million for the three and six months ended June 30, 2023, and 1.7 million and 1.6 million for the three and six months ended June 30, 2022, respectively. These securities, which include preferred OP Units redeemable for Common Stock, were excluded from the earnings per share calculation as they are anti-dilutive.
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Fair Value Measurements |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements We estimate the fair value of certain assets and liabilities using pricing models that rely on observable market information, including contractual terms, market prices, and interest rate yield curves. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value, as described below: •Level 1 – Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. •Level 2 – Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. •Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. Recurring Fair Value Measurements The following table summarizes investments measured at fair value on a recurring basis, which are presented in other assets, net, and accrued liabilities and other in our condensed consolidated balance sheets (in thousands):
(1)During the three months ended June 30, 2023, the interest rate swap option asset and offsetting liability associated with the Parkmerced mezzanine investment was settled, resulting in equal decreases in other assets and accrued liabilities and other. Financial Assets and Liabilities Not Measured at Fair Value We believe that the carrying value of the consolidated amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximated their estimated fair value as of June 30, 2023 and December 31, 2022, due to their relatively short-term nature and high probability of realization. The carrying value of our revolving credit facility and term loans, which we classify as Level 2 in the GAAP fair value hierarchy, approximated their estimated fair value as of June 30, 2023 and December 31, 2022, as they bear interest at floating rates which approximate market rates. We classify the fair value of our non-recourse property debt, unsecured notes payable, and seller financing notes receivable within Level 2 of the GAAP fair value hierarchy, as summarized in the following table (in thousands):
(1)During the year ended December 31, 2022, we provided $40.0 million of seller financing as partial consideration for the sale of our New England portfolio. The contractual interest rate on the note is 4.5%. The difference between the stated rate and the effective interest rate as of the date of sale resulted in a discount recorded of $8.5 million. The seller financing note and related discount are included in other assets, net in our condensed consolidated balance sheets. Nonrecurring Fair Value Measurements As of June 30, 2023, assets measured at fair value on a nonrecurring basis in our condensed consolidated balance sheets consist of one real estate asset that was written down to its estimated fair value for impairment purposes. Our estimate of fair value was determined using the stated price within the purchase and sale agreement for this asset, which is classified as Level 2 within the GAAP fair value hierarchy. As of June 30, 2023, the fair value of the real estate asset, net of estimated transaction costs, measured on a nonrecurring basis was $19.9 million. There were no assets measured at fair value on a nonrecurring basis as of December 31, 2022. Refer to Note 3 for further detail on the non-cash impairment.
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Derivative Financial Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Risk Management Objective of Using Derivatives Our objectives in using interest rate derivatives are to add predictability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps and treasury locks as part of our interest rate management strategy. Interest rate swaps involve the receipt of variable-rate and fixed-rate amounts from a counterparty in exchange for us making fixed-rate or variable-rate payments over the life of the agreements without exchange of the underlying notional amounts. Changes in fair value of derivatives designated as cash flow hedges are recognized in accumulated other comprehensive income and subsequently reclassified into earnings as an increase or decrease to interest expense. During the three and six months ended June 30, 2023, we reclassified gains of $5.4 million and $9.5 million out of accumulated other comprehensive income into interest expense, respectively. During the three and six months ended June 30, 2022, we reclassified losses of $2.0 million and $2.0 million out of accumulated other comprehensive income into interest expense, respectively. Changes in fair value of derivatives not designated in a hedge relationship, or economic hedges, are recognized in gain on derivative instruments in our condensed consolidated statements of operations once realized. During the three and six months ended June 30, 2023, we recorded gains of $11.4 million and $9.3 million, respectively. During the three and six months ended June 30, 2022, no amounts were recognized related to derivatives not designated in a hedge relationship. During the three months ended June 30, 2023, we decided to de-designate $830 million of pay-fixed, receive-floating interest rate swaps. As a result, the accumulated unrealized gains at time of de-designation of $29.5 million will be reclassified into earnings over the remaining term of the associated debt, and future changes in the fair value of these derivatives will be recognized in gain on derivative instruments, net in our condensed consolidated statements of operations. As of June 30, 2023, we estimate that during the next 12 months, we will reclassify into earnings approximately $10.8 million of the unrealized gain in accumulated other comprehensive income. During the three months ended June 30, 2023, we entered into $480 million of pay-floating, receive-fixed interest rate swaps, which will not be designated as accounting hedges and accordingly, the changes in the fair value of these derivatives are recognized in gain on derivative instruments, net, in our condensed consolidated statements of operations. These derivative instruments economically offset $480 million of the previously issued interest rate swaps noted above and were done in anticipation of the closing of the Core JV, as proceeds from the transaction were utilized to pay off $325 million of previously hedged term loans. As a result of these instruments, we expect to receive monthly fixed interest income representing the spread between the pay-fixed and receive-fixed legs of our interest rate swap positions over a weighted-average term of 3.4 years. The following table summarizes our derivative financial instruments (dollars 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 Consolidated Entities AIR consolidates the AIR Operating Partnership, a VIE of which AIR is the primary beneficiary. AIR, through the AIR Operating Partnership, consolidates all VIEs for which it is the primary beneficiary. Substantially all of the assets and liabilities of AIR are those of the AIR Operating Partnership. The AIR Operating Partnership consolidates (i) four VIEs that own interests in one or more apartment communities and are typically structured to generate a return for their partners through the operation and ultimate sale of the communities and (ii) one VIE related to a lessor entity that owns an interest in a property leased to a third party. The AIR Operating Partnership is the primary beneficiary in the limited partnerships in which it is the sole decision maker and has a substantial economic interest. The table below summarizes apartment community information regarding VIEs consolidated by the AIR Operating Partnership:
(1)During the three months ended June 30, 2023, we purchased the remaining noncontrolling interest in a consolidated limited partnership in one apartment community with 328 apartment homes. Subsequent to this purchase, this apartment community no longer represents a VIE. Assets of the AIR 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 AIR Operating Partnership. Assets and liabilities of VIEs, excluding those of the AIR Operating Partnership, are summarized in the table below (in thousands):
Unconsolidated Entities As discussed in Note 3, during the three months ended June 30, 2023, we formed an unconsolidated joint venture with a global asset manager, by selling a 70% interest in our Huntington Gateway property, a 443-unit property located in Virginia. Our 30% interest and $28.0 million preferred interest in the joint venture meets the definition of a VIE; however, we are not the primary beneficiary and do not consolidate this community. As of June 30, 2023, the carrying value of AIR's interest is $34.6 million, which is included in other assets, net, in our condensed consolidated balance sheets. As of June 30, 2023, AIR’s exposure to the obligations of the VIE is limited to the carrying value of the limited partnership interests, and $28.2 million of the joint venture's guarantor non-recourse liabilities, which represents 30%. We have a 20% interest in a joint venture with an affiliate of Blackstone, which meets the definition of a VIE. The joint venture includes three multi-family properties with 1,748 units located in Virginia. We are not the primary beneficiary and do not consolidate these communities. As of June 30, 2023 and December 31, 2022, the carrying value of the investment of $19.4 million and $20.7 million, respectively, is included in other assets, net, in our condensed consolidated balance sheets. As of June 30, 2023, AIR’s exposure to the obligations of the VIE is limited to the carrying value of the limited partnership interests, and $79.0 million of Blackstone’s guarantor liabilities, which represents 20%. We have an interest in a partnership that owns Parkmerced Apartments, which meets the definition of a VIE. However, we are not the primary beneficiary and do not consolidate this partnership. As of June 30, 2023 and December 31, 2022, the investment balance of $158.5 million and $158.7 million, respectively, is included in other assets, net, in our condensed consolidated balance sheets. Subsequent to the December 2020 separation from Apartment Investment and Management Company (“Aimco”), all risks and rewards of ownership are Aimco’s; however, as legal transfer has not occurred, there is an equal and offsetting liability included in accrued liabilities and other in our condensed consolidated balance sheets. Accordingly, there is no net effect on AIR’s stockholders’ equity or the AIR Operating Partnership’s partners’ capital.
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Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Note 11 — Business Segments We have two segments: Same Store and Other Real Estate. Our Same Store segment includes communities that are owned and managed by AIR and have reached a stabilized level of operations. Our Other Real Estate segment includes four properties acquired in 2022, four properties previously leased to Aimco, one property acquired in 2023, and one community that is expected to be sold. Our chief operating decision maker (“CODM”) uses proportionate property net operating income (“NOI”) to assess the operating performance of our communities. Proportionate property NOI reflects our share of rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, net of utility reimbursements. In our condensed consolidated statements of operations, utility reimbursements are included in rental and other property revenues in accordance with GAAP. As of June 30, 2023, our Same Store segment included 63 apartment communities with 22,794 apartment homes and our Other Real Estate segment included 10 apartment communities with 2,945 apartment homes. The following tables present the total revenues, property operating expenses, proportionate property net operating income (loss), and income (loss) before income tax expense of our segments on a proportionate basis, excluding amounts related to communities sold. To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of June 30, 2023 (in thousands):
(1)Represents adjustments to: (i) include AIR’s proportionate share of the results of unconsolidated apartment communities, which is excluded in the related consolidated amounts, and (ii) exclude the noncontrolling interests in consolidated real estate partnerships’ proportionate share of the results of communities, which is included in the related consolidated amounts. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our condensed consolidated statements of operations prepared in accordance with GAAP. (2)Includes: (i) the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, (ii) property management revenues, which are not part of our segment performance measure, property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure, and (iii) the depreciation of capitalized costs of non-real estate assets. (3)Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4)Includes interest income, interest expense, loss on extinguishment of debt, gain on dispositions of real estate, provision for impairment loss, and loss from unconsolidated real estate partnerships. The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands):
(1)Includes the assets not allocated to our segments including: (i) corporate assets; (ii) the mezzanine loan investment where the rights and obligations of ownership have been assigned to Aimco; and (iii) properties sold or classified as held for sale. For the six months ended June 30, 2023 and 2022, capital additions related to our segments were as follows (in thousands):
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Summary of Significant Accounting Policies (Policies) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation We consolidate variable interest entities (“VIEs”), in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. As of June 30, 2023 and December 31, 2022, AIR consolidated six and seven VIEs, respectively, including the AIR Operating Partnership.
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Redeemable Preferred OP Units | Redeemable Preferred OP Units The AIR Operating Partnership has various classes of preferred OP Units. Each class of preferred OP Units is currently redeemable at the holders’ option. The AIR Operating Partnership, at its sole discretion, may settle such redemption requests in cash or cause AIR to issue shares of its Common Stock with a value equal to the redemption price. The preferred OP Units are therefore presented within temporary equity in AIR’s condensed consolidated balance sheets and within temporary partners’ capital in the AIR Operating Partnership’s condensed consolidated balance sheets. The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units’ redemption value (in thousands):
The AIR Operating Partnership has outstanding various classes of redeemable preferred OP Units. As of June 30, 2023 and December 31, 2022, the AIR Operating Partnership had 2,846,574 redeemable preferred OP Units issued and outstanding. Distributions per annum range from 1.92% to 8.75% per class and $0.48 to $8.00 per unit.
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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 condensed consolidated financial statements and accompanying notes thereto. Actual results could differ from those estimates.
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Impairment | ImpairmentReal estate and other long-lived assets to be held and used are individually evaluated for impairment when conditions exist that may indicate the carrying amount of a long-lived asset may not be recoverable. Impairment indicators include significant fluctuations in rental and other property revenues less property operating expenses, occupancy changes, significant near-term lease expirations, current and historical cash flow losses, rental rates, and if applicable, a comparison of an asset’s carrying value to its estimated fair value. Upon determination that an impairment has occurred, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the community |
Summary of Significant Accounting Policies (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Reconciliation of Preferred OP Units | The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units’ redemption value (in thousands):
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Significant Transactions (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquisition | Summarized information regarding this acquisition is set forth in the table below (dollars in thousands):
(1)Total consideration includes $101.2 million of debt assumed and the issuance of $22.4 million in common OP Units. (2)Intangible assets and below-market lease liabilities have a weighted-average term of 1.4 years and 0.5 years, respectively.
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Income for Operating Leases | Our total lease income was comprised of the following amounts for all operating leases (in thousands):
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Future Minimum Annual Rental Payments Receivable Under Residential and Commercial Leases | As of June 30, 2023, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands):
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt summmary | The following table summarizes our total indebtedness (in thousands):
(1)In the first quarter of 2023, AIR borrowed $320 million using 10-year fixed rate financing, bearing interest at 4.9%. Proceeds were used to refinance a floating rate loan and reduce borrowings by $230 million on our revolving credit facility. The stated rates on our fixed-rate property debt are between 2.4% to 5.7%. (2)The term loans bear interest at a one-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.00% and a SOFR adjustment of 10-basis points, based on our current credit rating. As of June 30, 2023, the weighted-average interest rate for our term loans before consideration of in place interest rate swaps was 6.2%. The term loans mature on the following schedule: $150 million mature on December 15, 2023, with two one-year extension options; $300 million mature on December 15, 2024, with a one-year extension option; $150 million mature on December 15, 2025; and $200 million mature on April 14, 2026. As of June 30, 2023, the weighted-average remaining term of the term loans was 2.5 years. Refer to Note 9 for additional discussion regarding the purpose of these transactions. Subsequent to the closing of the Core JV, our floating rate debt, after consideration of our interest rate swaps, is $125 million, or 4% of total leverage. (3)As of June 30, 2023, we had capacity to borrow up to $703.7 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a one-month Term SOFR plus 0.89%, based on our current credit rating, and a SOFR adjustment of 10-basis points. As of June 30, 2023, the weighted-average interest rate for our revolving credit facility was 6.1%
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Earnings and Dividends per Share and per Unit (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliations of Numerator and Denominator in Calculations of Basic and Diluted Earnings per Share and per Unit | Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit are as follows (in thousands, except per share and per unit data):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value for Interest Rate Options and swaps | The following table summarizes investments measured at fair value on a recurring basis, which are presented in other assets, net, and accrued liabilities and other in our condensed consolidated balance sheets (in thousands):
(1)During the three months ended June 30, 2023, the interest rate swap option asset and offsetting liability associated with the Parkmerced mezzanine investment was settled, resulting in equal decreases in other assets and accrued liabilities and other.
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Summary of Carrying Value and Fair Value of Non-recourse Property Debt | We classify the fair value of our non-recourse property debt, unsecured notes payable, and seller financing notes receivable within Level 2 of the GAAP fair value hierarchy, as summarized in the following table (in thousands):
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Derivative Financial Instruments and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivative Financial Instrument and Hedging Activities | The following table summarizes our derivative financial instruments (dollars in thousands):
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Variable Interest Entities (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The table below summarizes apartment community information regarding VIEs consolidated by the AIR Operating Partnership:
(1)During the three months ended June 30, 2023, we purchased the remaining noncontrolling interest in a consolidated limited partnership in one apartment community with 328 apartment homes. Subsequent to this purchase, this apartment community no longer represents a VIE. Assets and liabilities of VIEs, excluding those of the AIR Operating Partnership, are summarized in the table below (in thousands):
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Business Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Information for Reportable Segments | To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of June 30, 2023 (in thousands):
(1)Represents adjustments to: (i) include AIR’s proportionate share of the results of unconsolidated apartment communities, which is excluded in the related consolidated amounts, and (ii) exclude the noncontrolling interests in consolidated real estate partnerships’ proportionate share of the results of communities, which is included in the related consolidated amounts. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our condensed consolidated statements of operations prepared in accordance with GAAP. (2)Includes: (i) the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, (ii) property management revenues, which are not part of our segment performance measure, property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure, and (iii) the depreciation of capitalized costs of non-real estate assets. (3)Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4)Includes interest income, interest expense, loss on extinguishment of debt, gain on dispositions of real estate, provision for impairment loss, and loss from unconsolidated real estate partnerships.
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Reconciliation of Assets from Segment to Consolidated | The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands):
(1)Includes the assets not allocated to our segments including: (i) corporate assets; (ii) the mezzanine loan investment where the rights and obligations of ownership have been assigned to Aimco; and (iii) properties sold or classified as held for sale.
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Capital Additions Related to Segments | For the six months ended June 30, 2023 and 2022, capital additions related to our segments were as follows (in thousands):
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Basis of Presentation and Organization (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
property
apartment
stateAndDistrict
shares
| |
Real Estate Properties [Line Items] | |
Number of states and district | stateAndDistrict | 10 |
Apartment homes in communities owned by VIEs | apartment | 328 |
AIR Operating Partnership | |
Real Estate Properties [Line Items] | |
Common operating partnership units and equivalents outstanding (in shares) | shares | 163,508,889 |
Common operating partnership units and equivalents outstanding | shares | 149,223,526 |
Percentage of the Aimco Operating Partnership's common partnership units and equivalents owned by Aimco | 91.30% |
Percentage of economic interest | 93.10% |
Partially Owned Properties | |
Real Estate Properties [Line Items] | |
Apartment communities owned by VIEs | property | 73 |
Apartment homes in communities owned by VIEs | apartment | 25,739 |
Percentage of average ownership of portfolio | 87.00% |
Summary of Significant Accounting Policies - Reconciliation of Preferred OP Units (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance at January 1, 2023 | $ 77,143 |
Preferred distributions | (3,140) |
Net income allocated to preferred units | 3,140 |
Balance at June 30, 2023 | $ 77,143 |
Summary of Significant Accounting Policies - Narrative (Details) - AIMCO PROPERTIES, L.P - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Units outstanding (in shares) | 2,846,574 | 2,846,574 |
Minimum | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Distributions per annum | 1.92% | |
Distribution made to limited partner, distributions paid, per unit (in dollars per share) | $ 0.48 | |
Maximum | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Distributions per annum | 8.75% | |
Distribution made to limited partner, distributions paid, per unit (in dollars per share) | $ 8.00 |
Significant Transactions - Schedule of Acquisition (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Business Acquisition [Line Items] | ||
Debts assumed | $ 101,200 | |
Common OP units issuance | $ 22,400 | |
Intangible Assets | ||
Business Acquisition [Line Items] | ||
Weighted-average term | 1 year 4 months 24 days | |
Below-market leases | ||
Business Acquisition [Line Items] | ||
Weighted-average term | 6 months | |
Florida and Washington, DC. | Apartment Community | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 298,000 | |
Capitalized transaction costs | 5,469 | |
Total consideration | 303,469 | |
Land | 99,338 | |
Building and improvements | 187,427 | |
Intangible assets | 12,077 | |
Mark-to-market on debt assumed | 7,370 | |
Below-market lease liabilities | (2,743) | |
Total consideration | $ 303,469 |
Leases - Lease Income for Operating Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Leases [Abstract] | ||||
Fixed lease income | $ 196,718 | $ 169,337 | $ 393,054 | $ 337,567 |
Variable lease income | 15,253 | 11,216 | 28,541 | 22,021 |
Total lease income | $ 211,971 | $ 180,553 | $ 421,595 | $ 359,588 |
Operating lease, lease income, statement of income or comprehensive income | Other assets, net | Other assets, net | Other assets, net | Other assets, net |
Leases - Narrative (Details) |
Jun. 30, 2023 |
---|---|
Residential Lease | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 1 year 5 months |
Leases - Schedule of Aggregate Minimum Lease Payments (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Leases [Abstract] | |
2023 (remaining) | $ 262,306 |
2024 | 258,690 |
2025 | 41,745 |
2026 | 11,214 |
2027 | 9,701 |
Thereafter | 34,712 |
Total lease receivable | $ 618,368 |
Debt - Narrative (Details) $ in Thousands |
3 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Minimum | |
Debt Instrument [Line Items] | |
Fixed charge coverage ratio | 1.50 |
Secured indebtedness to total assets ratio | 0.40 |
Maximum unsecured leverage ratio | 0.60 |
Unsecured interest coverage ratio | 1.50 |
Minimum | Leverage Ratio | |
Debt Instrument [Line Items] | |
Unsecured leverage ratio | 0.60 |
Fifteen Year Fixed Rate Financing | |
Debt Instrument [Line Items] | |
Revolving credit facility | $ 1,000,000 |
Loan Term | 15 years |
Line of credit, total liquidity | $ 1,800,000 |
Earnings and Dividends per Share and per Unit - Narrative (Details) - $ / shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Dividends and distributions paid (in dollars per share) | $ 0.45 | $ 0.90 | ||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 2.2 | 1.7 | 2.2 | 1.6 |
Fair Value Measurements (Details) - USD ($) |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Nonrecurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of real estate measure on a nonrecurring basis | $ 19,900,000 | $ 0 |
Variable Interest Entities - Schedule of VIEs Consolidated by the AIR Operating Partnership (Details) - apartment |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Apartment homes in communities owned by VIEs | 328 | |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
VIEs with interests in apartment communities | 4 | 5 |
Apartment communities owned by VIEs | 15 | 16 |
Apartment homes in communities owned by VIEs | 5,041 | 5,369 |
Variable Interest Entities - Assets and Liabilities of VIEs (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
ASSETS | ||
Net real estate | $ 5,671,068 | $ 5,626,511 |
Cash and cash equivalents | 106,349 | 95,797 |
Restricted cash | 23,564 | 205,608 |
Other assets, net | 573,743 | 591,681 |
LIABILITIES: | ||
Non-recourse property debt, net | 2,197,437 | 1,985,430 |
Accrued liabilities and other | 476,400 | 513,805 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Net real estate | 1,040,597 | 1,066,482 |
Cash and cash equivalents | 71,262 | 54,319 |
Restricted cash | 2,009 | 2,378 |
Other assets, net | 21,465 | 20,944 |
LIABILITIES: | ||
Non-recourse property debt, net | 1,204,242 | 1,212,065 |
Accrued liabilities and other | $ 36,246 | $ 35,365 |
Business Segments - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 6,407,010 | $ 6,551,883 |
Corporate Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 459,693 | 689,946 |
Same Store | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 4,481,117 | 4,610,356 |
Other Real Estate | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 1,466,200 | $ 1,251,581 |
Business Segments - Capital Additions Related to Segments (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||
Total capital additions | $ 88,037 | $ 86,353 |
Same Store | ||
Segment Reporting Information [Line Items] | ||
Total capital additions | 80,362 | 85,695 |
Other Real Estate | ||
Segment Reporting Information [Line Items] | ||
Total capital additions | $ 7,675 | $ 658 |
Label | Element | Value |
---|---|---|
Non Recourse Property Debt, 8 Properties [Member] | Secured Debt [Member] | ||
Long-Term Debt | us-gaap_LongTermDebt | $ 611,400,000 |
Proceeds from Issuance of Debt | us-gaap_ProceedsFromIssuanceOfDebt | 184,600,000 |
Non Recourse Property Debt, 8 Properties [Member] | Core JV [Member] | Secured Debt [Member] | ||
Proceeds from Issuance of Debt | us-gaap_ProceedsFromIssuanceOfDebt | 584,800,000 |
Non Recourse Property Debt, 2 Properties [Member] | Secured Debt [Member] | ||
Proceeds from Issuance of Debt | us-gaap_ProceedsFromIssuanceOfDebt | 17,300,000 |
Non Recourse Property Debt, 2 Properties [Member] | Core JV [Member] | Secured Debt [Member] | ||
Proceeds from Issuance of Debt | us-gaap_ProceedsFromIssuanceOfDebt | $ 59,600,000 |
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