DENVER, Jan. 9, 2025
/PRNewswire/ -- As previously announced on December 30, 2024, Apartment Investment and
Management Company ("Aimco" or the "Company") (NYSE: AIV) entered
into an agreement to sell the properties located at 1001 Brickell
Bay Drive and 1111 Brickell Bay Drive in Miami, Florida (together referred to as the
"Brickell Assemblage") for a gross price of $520 million. The buyer has completed due
diligence and has made a non-refundable deposit of $38 million. Aimco intends to return the
majority of the net proceeds from the transaction, after accounting
for the associated property-level debt and deferred tax liability,
to shareholders.
The pending sale of the Brickell Assemblage marks an important
step in Aimco's efforts to simplify its holdings and to unlock
value for shareholders. Upon closing of the Brickell
Assemblage transaction, which is subject to certain closing
conditions and extension options, Aimco will primarily consist of a
portfolio of more than 5,200 well-located apartment homes that we
believe is well-positioned to experience strong revenue growth,
nearly 1,000 newly constructed apartment homes that are expected to
be occupancy stabilized within the next 12 months, one active
development project located on Miami's waterfront, and a deep pipeline for
future growth that includes more than 7.7 million square feet of
development potential.
Since the spin-off of Apartment Income REIT Corp. in December of
2020, Aimco has delivered consistently strong operational
performance with average annual same store NOI growth of greater
than 7.6%, successfully completed more than $1.3 billion of development projects, secured
attractively priced long-dated financing, significantly improved
corporate governance, and pro forma for the Brickell sale, will
have closed more than $1.7 billion of
asset sales and returned substantial capital to shareholders,
including the special dividend slated for January 31, 2025, as previously announced.
These results were achieved by a dedicated and experienced team
that is active in its approach to investment and portfolio
management and prudent in the allocation of shareholder capital. We
are pleased with the transformation of the Aimco portfolio and the
objective results delivered over the past four years.
However, our shares continue to trade at a meaningful
discount to our estimate of the private market value of our assets
and investment platform, which we believe has limited our ability
to fund new investment opportunities and accelerate growth.
Therefore, the Aimco Board of Directors has decided to explore
additional alternatives in an effort to further unlock and maximize
shareholder value. The exploration will expand upon Aimco's ongoing
efforts such as reducing exposure to development activity and
monetizing certain assets, and include, but not be limited to,
exploration of potential sales of the major components of the
business (in one or a series of transactions), an acceleration of
individual asset sales, or a sale or merger of the Company as a
whole. Our guiding principle will be to produce an outcome
that delivers maximum value to Aimco shareholders. The
strategic process is being overseen by Aimco's Investment
Committee, comprised of four independent Aimco Board Members.
Morgan Stanley & Co. LLC is serving as financial advisor to
Aimco.
There can be no assurance that this expanded strategic process
will result in any transaction or transactions or other strategic
changes or outcomes, and the timing or outcome of any such event is
similarly uncertain. Aimco does not intend to disclose or comment
on developments related to the foregoing unless or until it
determines that further disclosure is appropriate or required.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain 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 our intent, belief, or
expectations. Words such as "anticipate(s)," "expect(s),"
"intend(s)," "plan(s)," "believe(s)," "may," "will," "would,"
"could," "should," "seek(s)," "forecast(s)," and similar
expressions, or the negative of these terms, are intended to
identify such forward-looking statements. These statements,
including those regarding revenue growth, development potential,
potential strategic transactions, the timing of asset sales, and
the timing and amount of capital expected to be returned to
shareholders, are not guarantees of future performance, condition
or results, and involve a number of known and unknown risks,
uncertainties, and assumptions that may affect actual results or
outcomes, including changes in market conditions, fluctuations in
our stock price, our financial performance, regulatory changes, and
general economic conditions. 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,
2023, as 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.
About Aimco
Aimco is a diversified real estate company primarily focused on
value add and opportunistic 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.
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SOURCE Apartment Investment and Management Company (Aimco)