Apartment Investment and Management Company (“Aimco”) (NYSE:
AIV) announced today that it plans to report fourth quarter results
for 2021 on March 1, 2022, after market close.
In advance of reporting full year and fourth quarter results, we
are providing the following summary of Aimco’s recent
accomplishments along with plans and goals for 2022.
Wes Powell, Aimco President and Chief Executive Officer,
comments: “Aimco experienced a successful and highly productive
2021 and the new year is off to a strong start. The Aimco team
advanced its active development and redevelopment projects, which
are producing favorable results; added meaningfully to its
investment pipeline by sourcing opportunities for future value
creation; and effectively managed its stabilized operating
properties. I remain grateful to our highly talented team for the
results that have been delivered and look forward to the many
opportunities that lie ahead.”
2021 and Recent
Highlights:
Opportunistic and Value Add Investments
In 2021, Aimco advanced eight distinctive development,
redevelopment, and lease-up projects where we invested more than
$200 million of capital. Projects remain on time, on budget and on
plan to create substantial value for shareholders. This is
evidenced by demand, as the Aimco teams executed more than 630
leases on newly constructed and delivered apartment homes, almost
200 more leases than were planned at the start of the year and at
rental rates averaging approximately 115% of target.
Additionally, Aimco’s team added to its pipeline of
opportunities, by sourcing and securing new investments that
provide the opportunity for over 4.5 million SF and more than $1
billion of highly accretive development in dynamic, high-growth
markets. In early 2022, Aimco purchased a strategic land parcel for
$1.7 million, further expanding its assemblage of developable land
in the Edgewater neighborhood of Miami, FL and closed the
previously announced land acquisition in Fort Lauderdale, FL with
its joint venture partner, the Kushner Companies. To facilitate the
$49 million ($25 million Aimco share) land purchase, the venture
secured a $40 million loan ($20.4 million Aimco share).
Alternative Investments
In 2021, operations at Parkmerced have been stressed due to
reduced in-person learning at the neighboring San Francisco State
University and lower demand as the region navigates the pandemic
and related restrictions. Through this, the borrower on Aimco’s
$338 million mezzanine loan has performed, including by advancing
capital to service its first mortgage debt and has reported that it
expects to do the same in 2022.
Stabilized Operating Portfolio
In 2021, Aimco’s stabilized operating portfolio had solid
results. We expect to report year-over-year revenue and Net
Operating Income (“NOI”) growth of about 4% and 4%, respectively,
and fourth quarter occupancy of 98.7%.
Financing Activity
In 2021, Aimco closed over $360 million in new financings,
including, just prior to year end, a $52 million preferred equity
commitment from an institutional equity partner to partially fund
the Upton Place development in Washington, D.C., freeing up Aimco
capital for other accretive uses and improving the expected return
on Aimco equity.
Other Items
Aimco recently retired its obligation to fund $17.5 million of
certain legal and environmental liabilities that pre-date the
separation from Apartment Income REIT Corp. (“AIRC”), reducing
ongoing transactions between the two companies, simplifying
accounting, and better aligning administrative resources.
During 2021, Aimco earned $8 million of fee income related to a
specific acquisition and redevelopment services.
Finally, in early 2022, Aimco repurchased 202,400 shares of
Aimco Class A Common Stock at a weighted average price of $6.49, in
accordance with its share repurchase program.
2022 Plans and Goals:
Aimco’s 2022 plan is an extension of its work in 2021 and
supportive of its long-term growth strategy. Aimco intends to
continue to focus on actively managing its development,
redevelopment, and lease-up projects; growing its pipeline of
accretive real estate investments; and maintaining a sizeable
allocation to stabilized operating properties as needed to balance
Aimco’s risk profile and provide stable cash flow.
Opportunistic and Value Add Investments
In 2022, Aimco plans to:
- Complete the construction of Flamingo Point’s North Tower in
Miami Beach and reach stabilized occupancy six months ahead of
plan. The building is currently 91% leased with average monthly
rental rates more than $900 ahead of target;
- Reach stabilized occupancy at The Fremont on the Anschutz
Medical Campus in Aurora, CO (currently 82% leased) and monetize
its investments in 707 Leahy in Redwood City, CA and Prism in
Cambridge, MA under the terms of the Master Leasing Agreement with
AIRC;
- Begin the phased delivery of fully renovated waterfront
apartment homes and commence the lease-up of Hamilton on the Bay in
Miami, FL. Average rental rates in the submarket have increased
more than 20% since Aimco acquired the property in Q3 of 2020;
and
- Progress the development of Upton Place in Washington, DC, The
Benson Hotel and Faculty Club on the Anschutz Medical Campus in
Colorado, and Oak Shore in Corte Madera, CA, which are currently on
time and on budget.
Aimco will also focus on expanding the opportunities in its
pipeline by advancing entitlement and planning for previously
identified projects located in Fort Lauderdale, FL, Miami, FL,
Colorado Springs, CO, and Aurora, CO that have the potential to
include more than 1,700 apartment homes at full build-out.
Additionally, Aimco plans to grow its investment pipeline by
sourcing value-add opportunities from within its existing
portfolio, through strategic partnerships, and local contacts.
Aimco teams are in active discussions and negotiations on
prospective opportunities across the country, including:
- A 9-acre development site located in a high-growth South
Florida submarket that could accommodate nearly 1,500 units (or 3
million GSF) at full build out, for a price of approximately $100
million;
- Joint venture development opportunities in South Florida, San
Diego, and Washington, DC submarkets that together could
accommodate as many as 2,700 units (or 3 million GSF) at full build
out;
- The lease of a property located in Manhattan’s Upper East Side
neighborhood from AIRC to develop 41 luxury apartment homes;
and
- The acquisition of just over two acres of land contiguous to an
existing Aimco property located in Chicago’s western suburbs.
Stabilized Operating Portfolio
Aimco forecasts to build upon solid 2021 operating results and
maintain sufficient cash flow to cover all core overhead.
Financing Activity
In 2022, Aimco plans to remain pre-funded for all investment
commitments by utilizing its broad range of available financing
options and eliminating the need to issue additional public market
equity. Aimco has no debt maturing in 2022 and will start
preparations for 2023 and 2024 debt maturities.
Team and Community
Aimco will continue to foster a healthy environment of respect
and innovation, empowering Aimco human capital to create value and
maintain its commitment to the communities in which we work, live,
and invest by building apartment communities with conservation and
sustainability in mind and giving back by way of Aimco Cares, both
in monetary support and through volunteerism.
Shareholder Value
At year end 2022, Aimco estimates its Net Asset Value (“NAV”)
will be approximately $12 per share (assuming stable cap rates and
before ascribing any value creation from its current portfolio of
opportunistic and value add investments). Aimco is on track to
reach its previously announced NAV target of $15-$16 per share by
year end 2025.
About Aimco
Aimco is a diversified real estate company primarily focused on
value add, opportunistic, and alternative investments, targeting
the U.S. multifamily sector. Aimco’s mission is to make real estate
investments where outcomes are enhanced through its human capital
so that substantial value is created for investors, teammates, and
the communities in which we operate. Aimco is traded on the New
York Stock Exchange as AIV. For more information about Aimco,
please visit its website www.aimco.com.
Forward-Looking and Preliminary
Statements
This document contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
include all statements that are not historical statements of fact
and those regarding its intent, belief, or expectations, including,
but not limited to, the statements in this document regarding our
preliminary 2021 accomplishments and our preliminary 2022 plans and
goals, including our 2022 pipeline investments and projects. Our
closing procedures for our fourth quarter and year ended December
31, 2021 are not yet complete. The information in this document is
preliminary and is based solely on information available to
management as of the date of this document and is subject to
change. Our actual results remain subject to the completion of
management’s final review and our other closing procedures, as well
as the completion of the audit of our annual consolidated financial
statements. Further, we caution that until full fourth quarter
results are provided in its earnings release and SEC Form 10-K, the
figures and other information in this press release are subject to
revisions, and such revisions could be material.
Words such as “anticipate(s),” “expect(s),” “intend(s),”
“plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,”
“seek(s)” and similar expressions, or the negative of these terms,
are intended to identify such forward-looking statements. These
forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside the control of Aimco that could
cause actual results or outcomes to differ materially from those
discussed in the forward-looking statement. Important factors,
among others, that may affect actual results or outcomes include,
but are not limited to: (i) the risk that the 2022 preliminary
plans and goals may not be completed in a timely manner or at all,
(ii) the inability to recognize the anticipated benefits of the
pipeline investments and projects, and (iii) changes in general
economic conditions, including as a result of the COVID-19
pandemic. Although we believe that the assumptions underlying the
forward-looking statements are reasonable, we can give no assurance
that its expectations will be attained.
Readers should carefully review Aimco’s financial statements and
the notes thereto, as well as the section entitled “Risk Factors”
in Item 1A of Aimco’s Annual Report on Form 10-K for the year ended
December 31, 2020, and subsequent Quarterly Reports on Form 10-Q
and other documents Aimco files from time to time with the SEC.
These filings identify and address important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking
statements.
These forward-looking statements reflect management’s judgment
as of this date, and Aimco assumes no (and disclaims any)
obligation to revise or update them to reflect future events or
circumstances.
In this document, Aimco is presenting expected Revenue and NOI
growth for a period that it will report in future SEC filings.
Aimco has not finalized consolidated projections for net income for
any period beyond actual results reported in the third quarter of
2021. Therefore, Aimco has not presented a reconciliation of
expected NOI growth to net income or any other GAAP financial
measure. Such information is either not readily available or would
require unreasonable effort to produce in the context of this
release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220210005929/en/
Matt Foster, Sr, Director, Capital Markets and Investor
Relations Investor Relations 303-793-4661, investor@aimco.com
Apartment Investment and... (NYSE:AIV)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Apartment Investment and... (NYSE:AIV)
Historical Stock Chart
Von Apr 2023 bis Apr 2024