XML 32 R19.htm IDEA: XBRL DOCUMENT v3.23.2
Business Segments
 3 Months Ended
Jun. 30, 2023
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):
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$160,180 $29,684 $22,385 $2,311 $214,560 
Property operating expenses 41,330 10,640 11,496 8,546 72,012 
Other operating expenses not allocated to segments (3)— — — 97,802 97,802 
Total operating expenses41,330 10,640 11,496 106,348 169,814 
Proportionate property net operating income (loss)118,850 19,044 10,889 (104,037)44,746 
Other items included in income (loss) before income tax expense (4)— — — (42,971)(42,971)
 Income (loss) before income tax expense$118,850 $19,044 $10,889 $(147,008)$1,775 
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$318,082 $59,501 $44,327 $4,643 $426,553 
Property operating expenses 82,577 21,911 22,860 20,117 147,465 
Other operating expenses not allocated to segments (3)— — — 204,308 204,308 
Total operating expenses82,577 21,911 22,860 224,425 351,773 
Proportionate property net operating income (loss)235,505 37,590 21,467 (219,782)74,780 
Other items included in income (loss) before income tax expense (4)— — — (82,814)(82,814)
Income (loss) before income tax expense$235,505 $37,590 $21,467 $(302,596)$(8,034)
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$147,075 $3,718 $19,894 $12,813 $183,500 
Property operating expenses 39,667 1,989 9,630 12,501 63,787 
Other operating expenses not allocated to segments (3)— — — 80,913 80,913 
Total operating expenses39,667 1,989 9,630 93,414 144,700 
Proportionate property net operating income (loss)107,408 1,729 10,264 (80,601)38,800 
Other items included in income before income tax expense (4)— — — 174,358 174,358 
 Income before income tax expense$107,408 $1,729 $10,264 $93,757 $213,158 
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$290,405 $4,952 $39,428 $30,193 $364,978 
Property operating expenses 79,553 2,928 19,511 25,031 127,023 
Other operating expenses not allocated to segments (3)— — — 176,077 176,077 
Total operating expenses79,553 2,928 19,511 201,108 303,100 
Proportionate property net operating income (loss)210,852 2,024 19,917 (170,915)61,878 
Other items included in income before income tax expense (4)— — — 552,085 552,085 
Income from before income tax expense$210,852 $2,024 $19,917 $381,170 $613,963 
(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):
June 30, 2023December 31, 2022
Same Store$4,481,117 $4,610,356 
Other Real Estate1,466,200 1,251,581 
Corporate and other assets (1)459,693 689,946 
Total consolidated assets$6,407,010 $6,551,883 
(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):
20232022
Same Store$80,362 $85,695 
Other Real Estate 7,675 658 
Total capital additions$88,037 $86,353