DENVER, July 31 /PRNewswire-FirstCall/ -- Second Quarter 2009
Highlights -- Funds From Operations (FFO, as defined below) - FFO,
before operating real estate impairments and preferred stock
redemption related gains, of $0.45 per share was $0.02 above the
high end of the $0.37 to $0.43 per share guidance range primarily
due to favorable non-Same Store operating results and lower general
and administrative expenses. -- Property Operations - During the
second quarter, Aimco's share of total conventional and affordable
property net operating income was $157.8 million. Total
conventional and affordable property net operating income, adjusted
for property acquisitions and dispositions, was 1.5% higher than
the second quarter 2008. -- Same Store Results (as defined below) -
When comparing second quarter 2009 to second quarter 2008, Same
Store property net operating income declined 3.5%, below the
guidance range of negative 2.0% to negative 3.0%. Same Store
revenue declined 2.3% and expenses declined 0.4%. Average daily
occupancy declined 2.1% from 94.9% for the second quarter 2008 to
92.8% for the second quarter 2009. Since April, average daily
occupancy has increased each month. -- Non-Same Store Results -
Second quarter 2009 conventional redevelopment net operating income
increased 10.4% compared to the second quarter 2008 and affordable
property operations, including affordable redevelopment operations,
generated net operating income growth of 19.3% during the same
period. -- Capital Markets Activity Due to turmoil in capital
markets, Aimco has focused on reducing refunding risk by
accelerating refinancing of property loans maturing prior to 2012.
At the beginning of the second quarter 2009, Aimco's share of
property debt maturing during 2009 through 2011 was $536.3 million.
During the second quarter, through refinancing, repayment and
property sales, Aimco reduced these maturities by $315.0 million.
As of June 30, 2009, the balance of property debt maturing through
2011 totaled $221.3 million and was related to 20 loans. Of these
loans, refunding risk is expected to be eliminated by the end of
the third quarter 2009 with respect to all but five loans. The five
remaining property loans total $164.0 million and are expected to
be refinanced at maturity in 2011. AIMCO SHARE PROPERTY LOANS
MATURING 2009 - 2011 Balance at Number of Maturity Loans ----------
--------- Property loans outstanding March 31, 2009 ($mm) $536.3 30
----------------------------------------------- ------ -- Loans
refinanced (286.7) (6) ---------------- ------ -- Loans paid down
(7.5) --------------- ---- Loans on properties sold during the
second quarter 2009 (20.8) (4) -------------------------------
----- -- Property loans outstanding June 30, 2009* $221.3 20
----------------------------------------- ------ -- Loans to be
refinanced during the third quarter 2009 (7.9) (2)
----------------------------- ---- -- Loans to be paid off during
the third quarter 2009 (26.1) (1) -------------------------------
----- -- Loans on properties under contract for sale during the
third quarter 2009 (18.5) (4) ----------------------------- -----
-- Committed financing (4.8) (2) ------------------- ---- -- Fully
amortizing loans - (6) ---------------------- -- -- Property loans
to be refinanced at maturity in 2011 $164.0 5
------------------------------- ------ -- * Includes one loan for
$2.3 million related to a property classified as held for sale at
the end of the quarter. Aimco's share of 2009 to 2011 property debt
maturities shown on Supplemental Schedule 5, Selected Debt
Structure and Maturity Data, does not include this loan. --
Property Sales and Asset Allocation - During the second quarter
2009, Aimco sold 20 properties for $291.3 million, generating
$104.9 million in net proceeds to Aimco, after distributions to
limited partners, repayment of existing property debt and
transaction costs. Year-to-date through June 30, 2009, Aimco has
sold 30 properties generating net proceeds to Aimco of $119.2
million. Aimco continues to market properties located in its
non-target markets and lower rated locations within its target
markets. -- Dividend - Aimco's Board of Directors declared a cash
dividend of $0.10 per share on its Class A Common Stock for the
quarter ended June 30, 2009. The dividend is payable August 31,
2009, to stockholders of record on August 21, 2009. 2009 Outlook --
Property Operations - Aimco remains focused on retaining its
existing residents and maintaining expense control. For the third
quarter 2009, Same Store net operating income is expected to
decline 5.0% to 6.0% when compared to third quarter 2008. For the
full year 2009, Same Store net operating income is expected to
decline 3.0% to 5.0% compared to full year 2008, which is within
the guidance range provided at the beginning of 2009. Improved
results in the redevelopment and affordable property portfolios are
expected to largely offset the declines in the Same Store results.
-- Balance Sheet and Liquidity - Aimco continues to focus on
maintaining a sound balance sheet with balanced sources and uses of
cash, ample liquidity and coverage ratios adequate to satisfy bank
debt covenants. Aimco leverage is 82% long-term, non-recourse
property debt with a weighted average maturity of 8.9 years, and
12% of Aimco leverage is perpetual preferred equity. On average,
approximately 5%, or $300 million, of Aimco's share of leverage is
subject to refunding in any one year. Aimco's $350 million term
debt matures in first quarter 2011 and is expected to be repaid
prior to maturity with proceeds from property sales. -- Property
Sales and Asset Allocation - In order to improve liquidity and
increase its allocation of capital to well located properties
within its target markets, Aimco continues to market more than $2
billion of non-target conventional and affordable assets, with
approximately $615 million currently under contract and an
additional $565 million in negotiations. -- FFO Outlook - Aimco's
previously provided guidance for full year 2009 FFO, before
operating real estate impairments and preferred stock redemption
related gains, was a range of $1.65 to $1.95 per share, and
specifically excluded the impact of FFO dilution from 2009 property
sales. Based on year-to-date financial results and our projections
for the remainder of the year, we are narrowing our full year 2009
FFO guidance, excluding the impact of dilution from 2009 property
sales, to $1.70 to $1.90 per share. Additionally, based on sales
completed through July 2009, and sales expected to be completed
during the balance of the year, we now estimate that dilution from
2009 property sales will total approximately $0.15 per share for
the full year 2009. As a result, we are further adjusting our full
year 2009 guidance to a range of $1.55 to $1.75 per share. For the
third quarter 2009, FFO is expected to range from $0.36 to $0.42
per share, inclusive of dilution from 2009 asset sales. Management
Comments Chairman and Chief Executive Officer Terry Considine
comments: "During the second quarter 2009, Aimco continued to
execute its plans to focus on operations, reduce off-site costs
including G&A, lower refinancing risk, and upgrade its
investment portfolio. Since April, operating results in the Same
Store portfolio have trended up. Taken together, operating results
in the Same Store, redevelopment and affordable property portfolios
are up year-over-year. Year to date, 60% of property debt
maturities during 2009 to 2011 have been refinanced at a weighted
average term of ten years and a weighted average interest rate of
5.93%, and another 7% of maturities have been settled either
through the sale of the related assets or loan paydowns. We
continue to execute our plan to improve the quality of our
portfolio by selling our lower rated assets, which has contributed
to a 43% increase in average rents over the past five years, up
from $726 in second quarter 2004 to $1,035 today." President, Chief
Investment Officer and Chief Financial Officer David Robertson
adds: "We made significant progress in reducing our refunding risk
during the quarter. Property debt maturing prior to 2012
essentially has been reduced to $164 million, comprised primarily
of two loans that we plan to refinance at maturity in 2011. We
extended the maturity of our revolving line of credit to 2012, and
currently have a zero balance excluding letters of credit. We sold
$291 million of assets during the quarter and have $1.2 billion
more under contract or in negotiations, the proceeds of which we
plan to use to repay our $350 million of term debt prior to its
maturity in the first quarter of 2011. Taken together, these
actions greatly strengthen Aimco's balance sheet." Second Quarter
2009 Financial Results In accordance with Generally Accepted
Accounting Principles (GAAP), all previously reported share and per
share data have been adjusted to take into account the special
dividends paid on August 29, 2008, December 1, 2008, and January
29, 2009, which resulted in the issuance of approximately 5.7
million, 12.6 million and 15.6 million additional shares of Aimco's
Class A Common Stock, respectively. -- Net loss attributable to
common stockholders for the quarter was $29.9 million, compared to
net income of $239.1 million for the second quarter 2008. Lower
gains on dispositions of consolidated and unconsolidated real
estate of $313.5 million, lower asset management and tax credit
revenues of $25.6 million, and higher depreciation and amortization
expense of $16.6 million were partially offset by a decrease in
income attributable to noncontrolling interests of $76.2 million,
lower general and administrative expenses of $9.2 million, a
decrease in other expenses of $6.5 million, and an increase in
property operating income from continuing operations of $2.2
million. Earnings per share (EPS) attributable to common
stockholders were a loss of $0.26 on a diluted basis, compared with
earnings of $1.94 per share in the second quarter 2008. -- Funds
from operations (diluted) (FFO) is a non-GAAP financial measure
defined in the glossary in the Supplemental Information (the
Glossary). FFO calculated in accordance with the definition
prescribed by the National Association of Real Estate Investment
Trusts (NAREIT) was $38.7 million, or $0.34 per share, compared
with $74.6 million, or $0.59 per share, in the second quarter 2008.
FFO, before operating real estate impairments and preferred stock
redemption related gains, was $52.3 million, or $0.45 per share,
down from $0.63 per share in the second quarter 2008. -- Adjusted
funds from operations (diluted) (AFFO; a non-GAAP financial measure
defined in the Glossary) was $35.6 million, or $0.31 per share,
compared with $57.4 million, or $0.46 per share, in the second
quarter 2008. AFFO includes deductions of $0.15 and $0.17 per share
for capital replacement expenditures in the second quarter 2009 and
the second quarter 2008, respectively. Adjusted Diluted Per Share
Results* SECOND QUARTER YEAR-TO-DATE 2009 2008 2009 2008 ---- ----
---- ---- Earnings (loss) EPS ($0.26) $1.94 ($0.59) $1.60
-------------------- ------ ----- ------ ----- Funds from
operations FFO $0.34 $0.59 $0.78 $1.09 --------------------------
----- ----- ----- ----- FFO before operating real estate
impairments and preferred stock redemption related gains $0.45
$0.63 $0.88 $1.14 -------------------------- ----- ----- -----
----- Adjusted funds from operations AFFO $0.31 $0.46 $0.61 $0.82
------------------------------ ----- ----- ----- ----- * These per
share results reflect the cumulative effect of the shares issued as
part of Aimco's special dividends paid in 2008 and on January 29,
2009. To estimate the approximate per share results before the
effect of Aimco's special dividends, multiply the reported per
share results by a factor of 1.48. Property Operations Property
operating results discussed below represent Aimco's share of
reported amounts. Conventional Real Estate Operations Conventional
real estate operations relate to Aimco's diversified portfolio of
market rate apartment communities. At the end of the second quarter
2009, this portfolio included 287 properties with 88,170 units in
which Aimco had a weighted average ownership of 90%. Average rents
for the conventional real estate portfolio increased 7.9% from $959
per unit during the second quarter 2008 to $1,035 per unit during
the second quarter 2009. During the second quarter 2009,
conventional real estate operations generated net operating income
of $137.0 million. Aimco's Same Store portfolio net operating
income was $111.5 million for the second quarter 2009, down 3.5%
from the second quarter 2008, while conventional redevelopment
property operations generated net operating income of $25.2 million
during the quarter, an increase of 10.4% compared to the second
quarter 2008. "Same Store" Results In the second quarter 2009, the
Same Store portfolio included 206 communities with 60,306 Effective
Units (see the Glossary) based on Aimco's weighted average
ownership of 91%. Comparing Same Store results in the second
quarter 2009 with the second quarter 2008, total revenue decreased
$4.3 million, or 2.3%. The decrease in revenue was primarily the
result of lower average daily occupancy, which was down 2.1% from
94.9% to 92.8%, and lower average rent, down $13 per unit or 1.3%,
from $1,008 per unit to $995 per unit. Same Store expenses
decreased $0.3 million or 0.4%, due to decreases in utilities,
marketing, repairs and maintenance, real estate taxes and contract
services, partially offset by increased insurance expense. Same
Store Operating Results SECOND QUARTER SECOND QUARTER
Year-over-year Sequential -------------- ----------------- 2009
2008 Variance 1st Qtr Variance ---- ---- -------- ------- --------
Same Store Operating Measures -------------------- Average Physical
Occupancy 92.8% 94.9% -2.1% 93.5% -0.7% ---------------- ---- ----
---- ---- ---- Average Rent Per Unit $995 $1,008 -1.3% $1,004 -0.9%
---------------- ---- ------ ---- ------ ---- Total Same Store
($mm) ---------------------- Revenue $182.6 $186.9 -2.3% $185.1
-1.3% ------- ------ ------ ---- ------ ---- Expenses (71.1) (71.4)
-0.4% (73.1) -2.7% -------- ----- ------ ---- ----- ---- NOI $111.5
$115.5 -3.5% $112.0 -0.5% --- ------ ------ ---- ------ ----
YEAR-TO-DATE Year-over-year -------------- 2009 2008 Variance ----
---- --------- Same Store Operating Measures --------------------
Average Physical Occupancy 93.2% 94.8% -1.6% ----------------
------ ------ ---- Average Rent Per Unit $1,000 $1,006 -0.6%
--------------------- ------ ------ ---- Total Same Store ($mm)
---------------------- ------- ------- ---- Revenue $365.6 $371.3
-1.5% ------- ------ ------ ---- Expenses (143.2) (144.5) -1.0%
-------- ------- ------- ---- NOI $222.4 $226.8 -1.9% --- ------
------ ---- See Supplemental Schedules 6a through 6c for additional
information on Same Store operating results. Affordable Real Estate
Operations At the end of the second quarter 2009, Aimco's
affordable real estate portfolio included 280 properties with
31,799 units in which Aimco had an average ownership of 54%. During
the second quarter 2009, affordable property operations generated
net operating income of $20.8 million. Total affordable property
net operating income, adjusted for property sales, was 19.3% higher
than the second quarter 2008. Average month-end occupancy for the
affordable portfolio decreased 90 basis points from 97.8% for the
second quarter 2008 to 96.9% for the second quarter 2009, while
average rent per unit increased 3.2% from $729 to $752 per unit.
Investment Management Investment management includes activities
related to our owned portfolio of properties as well as services
provided to affiliated partnerships. Investment management includes
portfolio strategy, capital allocation, joint ventures, tax credit
syndication, acquisitions, dispositions and other transaction
activities. Within our owned portfolio, we refer to these
activities as Portfolio Management, and their benefit is seen in
property operating results and in investment gains. For affiliated
partnerships, we refer to these activities as Asset Management for
which we are separately compensated through fees paid by third
party investors. Investment management income includes the fees
earned for providing asset management services to third party
investors, syndication fees and deferred income related to tax
credit activities, and portfolio management income earned through
investment gains on our owned assets. Aimco's share of investment
management income, net of tax, was $10.1 million in the second
quarter 2009 compared to $29.1 million in the second quarter 2008.
Recurring asset management activities and deferred tax credit
income comprised 57% of total investment management revenue during
the second quarter 2009. See Supplemental Schedule 11 for
additional information on investment management income. Portfolio
Management Portfolio management includes the ongoing allocation of
investment capital to meet our geographic and product type goals.
Our geographic allocation strategy focuses on the 20 largest U.S.
markets as measured by total market capitalization. We believe
these markets to be deep, relatively liquid and possessing
desirable long-term growth characteristics. These target markets
are primarily coastal markets, and also include a number of Sun
Belt cities and Chicago, Illinois. As we execute this strategy, we
expect to reduce our investment in markets outside the 20 largest
markets and to increase our investment in the 20 largest markets
both by making acquisitions and through redevelopment spending. In
the second quarter 2009, Aimco sold 17 conventional properties and
three affordable properties with 4,593 and 492 units, respectively,
for $291.3 million in gross proceeds (Aimco share $242.7 million).
Aimco's share of net proceeds after distributions to limited
partners, repayment of existing property debt and transaction costs
was $104.9 million. See Supplemental Schedules 6 and 7 for
additional details regarding Aimco's portfolio allocation and
Supplemental Schedule 8 for additional information on disposition
activity. Redevelopment During the second quarter 2009, Aimco
invested $19.2 million in conventional redevelopment projects and
completed nine of the 30 projects that were active at the end of
the first quarter. Additionally, Aimco elected to reduce the scope
of certain projects, resulting in an $18.8 million reduction in
their estimated cost of completion. Aimco also invested $13.7
million in seven tax credit redevelopment projects during the
second quarter 2009. Balance Sheet and Liquidity At the end of the
second quarter 2009, Aimco leverage was provided 82% by long-term
non-recourse property debt of $6.0 billion ($5.4 billion Aimco
share) at a weighted average interest rate of 5.5% and weighted
average maturity of 8.9 years. Aimco's preferred securities
represented approximately 12% of Aimco's leverage at the end of the
quarter at which time Aimco had $776.9 million in perpetual
preferred stock and preferred partnership units at a weighted
average rate of 7.6%. Aimco's recourse debt is limited to its
revolving credit facility and corporate term debt, which
represented approximately 5% of Aimco's leverage at the end of
second quarter 2009. At that time, the balance on Aimco's revolving
credit facility was zero and available capacity was $135.3 million,
net of $44.7 million of letters of credit drawn against the
facility. Aimco's revolving credit facility is used for working
capital purposes and to secure letters of credit used in the Aimco
business. The balance on Aimco's corporate term debt of $350
million matures in first quarter 2011. In connection with these
recourse obligations, Aimco is subject to debt service and fixed
charge coverage covenants of 1.50:1 and 1.30:1, respectively, as
defined in the credit facility. For second quarter 2009, Aimco's
debt service and fixed charge coverage ratios were 1.64:1 and
1.42:1, respectively. Aimco expects to remain in compliance with
these covenants. At June 30, 2009, Aimco had outstanding $6.5
billion of consolidated debt, which consisted of $5.4 billion of
fixed rate property debt and $1.1 billion of floating rate property
and corporate debt. In addition, Aimco had outstanding $67.0
million of floating rate preferred stock. Aimco's FFO exposure to
changes in floating interest rates is mitigated by $501.2 million
of tax-exempt bonds with rates tied to the Securities Industry and
Financial Markets Association Municipal Swap Index (SIFMA), which
over the last twenty years has moved at approximately 0.72% for a
1.00% change in LIBOR. Aimco's FFO exposure is further offset by
floating rate assets, such as cash and notes receivable, and
interest capitalized on redevelopment properties. Based on Aimco's
proportionate share of quarter-end balances, Aimco estimates its
sensitivity to a 100 basis point change in LIBOR to be
approximately $0.01 per share per quarter. See Supplemental
Schedule 5 for more detail on debt characteristics and activity.
Dividends on Common Stock On July 28, 2009, the Aimco Board of
Directors declared a quarterly cash dividend of $0.10 per share of
Class A Common Stock for the quarter ended June 30, 2009, payable
on August 31, 2009, to stockholders of record on August 21, 2009.
At the end of the second quarter 2009, there were approximately
115.5 million shares of Class A Common Stock outstanding. See
Supplemental Schedule 4 for additional detail on Aimco's
securities. Earnings Conference Call Please join Aimco management
for the Second Quarter 2009 earnings conference call to be held
Friday, July 31, 2009, at 1:00 p.m. Eastern time. Live Conference
Call Domestic Dial-In Number: 1-866-843-0890 International Dial-In
Number: 1-412-317-9250 Passcode: 0487767 Webcast:
http://www.aimco.com/CorporateInformation/Overview.aspx Conference
Call Replay Domestic Dial-In Number: 1-877-344-7529 International
Dial-In Number: 1-412-317-0088 Passcode: 431855 The conference call
replay will be available until 9:00 a.m. Eastern time on August 8,
2009. Webcast Replay:
http://www.aimco.com/CorporateInformation/About/Financial/news.aspx
Supplemental Information The full text of this release and the
Supplemental Information referenced in this release is available on
Aimco's Website at the link
http://www.aimco.com/CorporateInformation/About/Financial/QEarnRelease.aspx.
Forward-looking Statements This earnings release and Supplemental
Information contain forward-looking statements, including
statements regarding projected results and specifically forecasts
of third quarter and full year 2009 results. These forward-looking
statements are based on management's judgment as of this date and
include certain risks and uncertainties. Risks and uncertainties
include, but are not limited to, Aimco's ability to maintain
current or meet projected occupancy, rent levels and Same Store
results and Aimco's ability to close transactions necessary to
generate sales proceeds for debt repayment and other purposes and
to generate fee income as anticipated. Actual results may differ
materially from those described in these forward-looking statements
and, in addition, will be affected by a variety of risks and
factors, some of which are beyond the control of Aimco, including,
without limitation: financing risks, including the availability and
cost of capital markets financing and the risk that our cash flows
from operations may be insufficient to meet required payments of
principal and interest; earnings may not be sufficient to maintain
compliance with debt covenants; national and local economic
conditions; energy costs; the terms of governmental regulations
that affect Aimco and interpretations of those regulations; the
competitive environment in which Aimco operates; real estate risks,
including fluctuations in real estate values and the general
economic climate in the markets in which Aimco operates and
competition for tenants in such markets; insurance risk;
acquisition and development risks, including failure of such
acquisitions to perform in accordance with projections; the timing
of acquisitions and dispositions; natural disasters and severe
weather such as hurricanes; litigation, including costs associated
with prosecuting or defending claims and any adverse outcomes; and
possible environmental liabilities, including costs, fines or
penalties that may be incurred due to necessary remediation of
contamination of properties presently owned or previously owned by
Aimco. In addition, our current and continuing qualification as a
real estate investment trust involves the application of highly
technical and complex provisions of the Internal Revenue Code and
depends on our ability to meet the various requirements imposed by
the Internal Revenue Code, through actual operating results,
distribution levels and diversity of stock ownership. Readers
should carefully review Aimco's financial statements and notes
thereto, as well as the risk factors described in Aimco's Annual
Report on Form 10-K for the year ended December 31, 2008, and the
other documents Aimco files from time to time with the Securities
and Exchange Commission. These forward-looking statements reflect
management's judgment as of this date, and Aimco assumes no
obligation to revise or update them to reflect future events or
circumstances. This press release does not constitute an offer of
securities for sale. About Aimco Aimco is a real estate investment
trust headquartered in Denver, Colorado that owns and operates a
geographically diversified portfolio of apartment communities.
Aimco, through its subsidiaries and affiliates, is one of the
largest owners and operators of apartment communities in the United
States with 950 properties, including 154,511 apartment units, and
serves approximately 500,000 residents each year. Aimco's
properties are located in 44 states, the District of Columbia and
Puerto Rico. Aimco common shares are traded on the New York Stock
Exchange under the ticker symbol AIV and are included in the
S&P 500. For more information about Aimco, please visit our
website at http://www.aimco.com/. GAAP Income Statements
---------------------------- Consolidated Statements of Income (in
thousands, except per share data) (unaudited) Three Months Ended
Six Months Ended June 30, June 30, -------- -------- 2009 2008 2009
2008 ---- ---- ---- ---- REVENUES: Rental and other property
revenues $320,852 $316,970 $643,010 $633,727 Property management
revenues, primarily from affiliates 1,340 1,415 2,983 3,519 Asset
management and tax credit revenues 12,606 38,175 22,144 51,027
------ ------ ------ ------ Total revenues 334,798 356,560 668,137
688,273 ------- ------- ------- ------- OPERATING EXPENSES:
Property operating expenses 142,914 141,213 292,108 294,945
Property management expenses 472 1,254 1,905 2,589 Investment
management expenses 4,716 5,807 8,506 10,194 Depreciation and
amortization 122,198 105,642 240,914 204,659 Provision for
operating real estate impairment losses 4,988 - 5,498 - General and
administrative expenses 17,849 27,004 37,922 48,370 Other expenses,
net 4,398 10,933 6,463 18,117 ----- ------ ----- ------ Total
operating expenses 297,535 291,853 593,316 578,874 ------- -------
------- ------- Operating income 37,263 64,707 74,821 109,399
Interest income 2,264 1,748 5,655 11,312 Provision for losses on
notes receivable (1,534) (42) (1,685) (265) Interest expense
(90,896) (89,790) (179,888) (178,391) Equity losses of
unconsolidated real estate partnerships (1,696) (843) (3,736)
(1,872) Gain on dispositions of unconsolidated real estate and
other 3,750 255 14,611 166 ----- ----- ------ ----- Loss before
income taxes and discontinued operations (50,849) (23,965) (90,222)
(59,651) Income tax benefit 3,080 3,281 5,285 4,977 ----- -----
----- ----- Loss from continuing operations (47,769) (20,684)
(84,937) (54,674) Income from discontinued operations, net (1)
40,143 363,639 44,737 373,968 ------ ------- ------ ------- Net
(loss) income (7,626) 342,955 (40,200) 319,294 Noncontrolling
interests (2): Net income attributable to noncontrolling interests
in consolidated real estate partnerships (11,695) (58,648) (5,422)
(61,963) Net income attributable to preferred noncontrolling
interests in Aimco Operating Partnership (3) (1,746) (1,925)
(2,815) (3,707) Net loss (income) attributable to common
noncontrolling interests in Aimco Operating Partnership (3) 2,623
(26,427) 5,458 (22,319) ----- ------- ----- ------- Total
noncontrolling interests (10,818) (87,000) (2,779) (87,989) -------
------- ------ ------- Net (loss) income attributable to Aimco
(18,444) 255,955 (42,979) 231,305 Net income attributable to Aimco
preferred stockholders (11,477) (13,670) (24,643) (27,878) Net
income attributable to participating securities (4) - (3,145) -
(2,497) ------ ------ ------ ------ Net (loss) income attributable
to Aimco common stockholders $(29,921) $239,140 $(67,622) $200,930
======== ======== ======== ======== Weighted average common shares
outstanding -basic and diluted (5) 115,510 123,484 115,304 125,723
======= ======= ======= ======= Earnings (loss) per common share
-basic and diluted (5): Loss from continuing operations
attributable to Aimco (net of income attributable to preferred
stockholders and participating securities) $(0.41) $(0.36) $(0.74)
$(0.70) Income from discontinued operations attributable to Aimco
0.15 2.30 0.15 2.30 ---- ---- ---- ---- Net (loss) income
attributable to Aimco common stockholders $(0.26) $1.94 $(0.59)
$1.60 ====== ===== ====== ===== GAAP Income Statements (continued)
---------------------------------- Notes to Consolidated Statements
of Income (1) Income from discontinued operations consists of the
following (in thousands): Three Months Ended Six Months Ended June
30, June 30, -------- -------- 2009 2008 2009 2008 ---- ---- ----
---- Rental and other property revenues (6) $13,721 $103,429
$31,496 $211,288 Property operating expenses (6) (8,020) (52,543)
(19,314) (105,803) Depreciation and amortization (3,776) (20,853)
(8,654) (50,266) Real estate impairment losses (14,760) (6,536)
(11,396) (6,536) Other expenses, net (2,533) (2,009) (3,945)
(2,742) ------ ------ ------ ------ Operating (loss) income
(15,368) 21,488 (11,813) 45,941 Interest income 7 185 66 782
Interest expense (1,773) (17,765) (5,524) (37,558) ------ -------
------ ------- (Loss) income before gain on dispositions of real
estate and income taxes (17,134) 3,908 (17,271) 9,165 Gain on
dispositions of real estate 58,615 375,623 63,165 380,387 Income
tax expense (1,338) (15,892) (1,157) (15,584) ------ ------- ------
------- Income from discontinued operations, net $40,143 $363,639
$44,737 $373,968 ======= ======== ======= ======== Income from
discontinued operations attributable to: Noncontrolling interests
in consolidated real estate partnerships (6) $(21,007) $(53,802)
$(25,121) $(58,173) Noncontrolling interests in Aimco Operating
Partnership (3) (1,476) (25,840) (1,512) (26,337) ------ -------
------ ------- Total noncontrolling interests (22,483) (79,642)
(26,633) (84,510) ------- ------- ------- ------- Aimco $17,660
$283,997 $18,104 $289,458 ======= ======== ======= ======== (2)
Noncontrolling interests refers to interests in consolidated
partnerships held by parties other than Aimco. (3) The Aimco
Operating Partnership is AIMCO Properties, L.P., the operating
partnership in Aimco's UPREIT structure. (4) Income attributable to
participating securities represents dividends declared and any
amounts of undistributed earnings allocable to participating
securities. Participating securities consist of unvested restricted
stock and shares purchased pursuant to officer loans, both of which
are entitled to dividends similar to common stock. (5) Weighted
average share and earnings per share amounts for the periods
presented above have been retroactively adjusted for the effect of
shares of common stock issued pursuant to the special dividends
paid in 2008 and January 2009. (6) Income from discontinued
operations for the three months ended June 30, 2009, attributable
to properties classified as held for sale at June 30, 2009,
includes $5.6 million of rental and other property revenues and
$2.8 million of property operating expenses. Noncontrolling
interests in consolidated real estate partnerships' share of these
amounts totaled $0.6 million. GAAP Balance Sheets
------------------- Consolidated Balance Sheets (in thousands)
(unaudited) June 30, 2009 December 31, 2008 -------------
----------------- ASSETS Buildings and improvements $8,231,111
$8,145,589 Land 2,273,852 2,264,335 Accumulated depreciation
(2,812,016) (2,627,373) ---------- ---------- Total real estate
7,692,947 7,782,551 Cash and cash equivalents 112,114 299,676
Restricted cash 257,432 256,817 Accounts receivable 67,729 92,923
Accounts receivable from affiliates 27,644 36,372 Deferred
financing costs 59,038 56,052 Notes receivable from unconsolidated
real estate partnerships 14,818 22,567 Notes receivable from non-
affiliates 141,125 139,897 Investment in unconsolidated real estate
partnerships 117,432 119,036 Other assets 222,081 188,765 Deferred
income tax asset, net 28,332 28,326 Assets held for sale 100,729
391,884 ------- ------- Total assets $8,841,421 $9,414,866
========== ========== LIABILITIES AND EQUITY Property tax-exempt
bond financing $624,975 $669,339 Property loans payable 5,423,593
5,425,908 Term loans 350,000 400,000 Other borrowings 88,237 95,981
------ ------ Total indebtedness 6,486,805 6,591,228 Accounts
payable 33,335 64,241 Accrued liabilities and other 292,110 411,093
Deferred income 183,594 194,867 Security deposits 41,427 41,308
Liabilities related to assets held for sale 72,570 245,332 ------
------- Total liabilities 7,109,841 7,548,069 --------- ---------
Preferred noncontrolling interests in Aimco Operating Partnership
87,286 88,148 Preferred stock subject to repurchase agreement
30,000 - Equity: Perpetual preferred stock 660,500 696,500 Class A
Common Stock 1,164 1,162 Additional paid-in capital 3,065,080
3,058,799 Accumulated other comprehensive loss (473) (2,249) Notes
due on common stock purchases (1,403) (3,607) Distributions in
excess of earnings (2,413,472) (2,335,628) ---------- ----------
Total Aimco equity 1,311,396 1,414,977 --------- ---------
Noncontrolling interests in consolidated real estate partnerships
311,384 363,672 Common noncontrolling interests in Aimco Operating
Partnership (8,486) - ------ ------- Total equity 1,614,294
1,778,649 --------- --------- Total liabilities and equity
$8,841,421 $9,414,866 ========== ========== Outlook and Forward
Looking Statement Third Quarter and Full Year 2009 (unaudited) This
earnings release and Supplemental Information contain
forward-looking statements, including statements regarding
projected results and specifically forecasts of third quarter and
full year 2009 results. These forward-looking statements are based
on management's judgment as of this date and include certain risks
and uncertainties. Risks and uncertainties include, but are not
limited to, Aimco's ability to maintain current or meet projected
occupancy, rent levels and Same Store results and Aimco's ability
to close transactions necessary to generate sales proceeds for debt
repayment and other purposes and to generate fee income as
anticipated. Actual results may differ materially from those
described in these forward-looking statements and, in addition,
will be affected by a variety of risks and factors, some of which
are beyond the control of Aimco, including, without limitation:
financing risks, including the availability and cost of capital
markets financing and the risk that our cash flows from operations
may be insufficient to meet required payments of principal and
interest; earnings may not be sufficient to maintain compliance
with debt covenants; national and local economic conditions; energy
costs; the terms of governmental regulations that affect Aimco and
interpretations of those regulations; the competitive environment
in which Aimco operates; real estate risks, including fluctuations
in real estate values and the general economic climate in the
markets in which Aimco operates and competition for tenants in such
markets; insurance risk; acquisition and development risks,
including failure of such acquisitions to perform in accordance
with projections; the timing of acquisitions and dispositions;
natural disasters and severe weather such as hurricanes;
litigation, including costs associated with prosecuting or
defending claims and any adverse outcomes; and possible
environmental liabilities, including costs, fines or penalties that
may be incurred due to necessary remediation of contamination of
properties presently owned or previously owned by Aimco. In
addition, our current and continuing qualification as a real estate
investment trust involves the application of highly technical and
complex provisions of the Internal Revenue Code and depends on our
ability to meet the various requirements imposed by the Internal
Revenue Code, through actual operating results, distribution levels
and diversity of stock ownership. Readers should carefully review
Aimco's financial statements and notes thereto, as well as the risk
factors described in Aimco's Annual Report on Form 10-K for the
year ended December 31, 2008, and the other documents Aimco files
from time to time with the Securities and Exchange Commission.
These forward-looking statements reflect management's judgment as
of this date, and Aimco assumes no obligation to revise or update
them to reflect future events or circumstances. This press release
does not constitute an offer of securities for sale. Third Quarter
2009 Full Year 2009 ------------------ -------------- GAAP earnings
per share (1)(3) -$0.50 to -$0.44 -$1.63 to -$1.43 FFO per share
(2)(3) $0.36 to $0.42 $1.55 to $1.75 2009 Same Store operating
assumptions: Weighted average daily occupancy 93.5% to 94.5% 93.0%
to 94.0% NOI change - sequential -3.25% to -2.25% NOI change - 2009
vs. 2008 -6.0% to -5.0% -5.0% to -3.0% (1) Aimco's earnings per
share guidance does not include estimates for (i) gains on
dispositions or impairment losses due to the unpredictable timing
of transactions, (ii) gains or losses on early repayment of debt,
(iii) preferred stock redemption related costs or gains or (iv)
potential future share repurchases or special dividends. (2) FFO
per share represents FFO before operating real estate impairment
losses and preferred redemption related costs or gains. (3) The
GAAP earnings per share and FFO per share amounts are calculated
based on 115.5 million weighted average common shares (diluted) for
third quarter 2009 and 115.4 million weighted average common shares
(diluted) for full year 2009. DATASOURCE: Aimco CONTACT: Investor
Relations, +1-303-691-4350, , or Elizabeth Coalson, Vice President
Investor Relations, +1-303-691-4327, both of Aimco Web Site:
http://www.aimco.com/
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