DENVER, May 1 /PRNewswire-FirstCall/ -- First Quarter 2009
Highlights -- Funds From Operations (FFO, as defined below) - FFO,
before operating real estate impairment recoveries, of $0.42 per
share was $0.09 above the mid-point of guidance of $0.33 per share
primarily due to favorable property operating results and lower
general and administrative expenses. -- Same Store Results (as
defined below) - When comparing first quarter 2009 to first quarter
2008, Same Store property operations generated net operating income
growth of 0.2%, exceeding the mid-point of guidance of negative
1.5%. Same Store revenue declined 0.6% and expenses declined 1.9%.
Occupancy declined 1.3% from 94.8% for the first quarter 2008 to
93.5% for the first quarter 2009. -- Property Sales and Asset
Allocation - During the first quarter 2009, Aimco sold ten
properties for $83.1 million, generating $14.3 million in net
proceeds to Aimco, after distributions to limited partners,
repayment of existing property debt and transaction costs. Aimco
continues to market properties located in its non-target markets
and lower rated locations within its target markets. -- Capital
Markets Activity - During the first quarter 2009, Aimco refinanced
property loans totaling $110.1 million generating net proceeds to
Aimco of $55.6 million. The new loans had a weighted average
maturity of ten years and weighted average interest rate of 5.87%.
Approximately $99.0 million of the property loans refinanced during
the first quarter represented accelerated refinancing of loans
maturing in future periods. Debt service coverage and fixed charge
coverage ratios, as defined in the credit facility, were 1.63:1 and
1.42:1 for the first quarter 2009 compared to bank compliance
levels of 1.50:1 and 1.30:1, respectively, and consistent with the
ratios of 1.63:1 and 1.43:1 for the fourth quarter 2008. --
Redevelopment - During the first quarter 2009, Aimco invested $20.4
million in conventional redevelopment projects and completed seven
of the 37 projects that were active at the end of 2008.
Additionally, Aimco elected to reduce the scope of certain
projects, resulting in a $21.5 million reduction in their estimated
cost of completion. Aimco also invested $8.2 million in seven tax
credit redevelopment projects during the first quarter 2009. Net
operating income generated by redevelopment properties increased
approximately $3.0 million during the first quarter 2009. --
Investment Management - Investment management income, net of tax,
for the first quarter 2009 totaled $6.9 million with 86% of
investment management revenue generated from recurring asset
management activities and deferred tax credit income. -- 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 March 31,
2009. The dividend is payable May 29, 2009, to shareholders of
record on May 15, 2009. 2009 Outlook -- Property Operations - Given
the challenging market conditions, Aimco remains focused on
retaining its existing residents and maintaining tight expense
control. For the second quarter 2009, Same Store net operating
income is expected to decline 2.0% to 3.0% when compared to second
quarter 2008. For the full year 2009, expectations are unchanged at
0% to down 5.0% compared to full year 2008. -- Property Sales and
Asset Allocation - Aimco continues to increase its allocation of
capital to well located properties within its target markets and
continues to market approximately $2.0 billion of non-target
conventional and affordable assets. -- Balance Sheet and Liquidity
- Aimco also 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 is
financed primarily with long-term, non-recourse property debt,
which represented 84% of Aimco's leverage at March 31, 2009, with a
weighted average maturity of 9.6 years. Aimco also is financed with
perpetual preferred equity, which represented approximately 11% of
Aimco's leverage at March 31, 2009. On average, approximately 4%,
or $290.0 million, of Aimco's leverage is subject to refunding in
any one year. In order to limit refunding risk, during 2009 Aimco
intends to refinance 26 property loans totaling $434.2 million that
mature during the balance of 2009 through 2011. The remaining
balance of property debt maturities through 2011 totals $99.9
million and is related to four loans, all of which mature in 2011.
In addition, net cash proceeds from asset sales are expected to be
used first to reduce Aimco's $350.0 million bank term debt that
matures the first quarter of 2011 and to increase cash reserves. --
FFO Outlook - For the second quarter 2009, FFO, before operating
real estate impairments, is expected to range from $0.37 to $0.43
per share and full year 2009 FFO expectations are unchanged from a
range of $1.65 to $1.95 per share. First 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 $37.7 million, compared with a loss of $38.9
million for the first quarter 2008. Higher gains on dispositions of
unconsolidated real estate of $11.0 million, an increase in
property operating income of $10.5 million, a decrease in other
expenses of $4.3 million and lower general and administrative
expenses of $1.3 million were offset by higher depreciation and
amortization of $19.7 million, lower interest income of $4.8
million and lower asset management and tax credit revenues of $3.3
million. Earnings per share (EPS) attributable to common
stockholders was a loss of $0.33 on a diluted basis, compared with
a loss of $0.30 per share in the first 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
$51.9 million, or $0.45 per share, compared with $67.3 million, or
$0.51 per share, in the first quarter 2008. FFO, before net
operating real estate impairment recoveries, was $49.4 million, or
$0.42 per share. -- Adjusted funds from operations (diluted) (AFFO;
a non-GAAP financial measure defined in the Glossary) was $35.0
million, or $0.30 per share, compared with $46.7 million, or $0.36
per share, in the first quarter 2008. AFFO includes deductions of
$0.12 and $0.15 per share for capital replacement expenditures in
the first quarter 2009 and the first quarter 2008, respectively.
Adjusted Diluted Per Share Results* FIRST QUARTER 2009 2008
Earnings (loss) - EPS ($0.33) ($0.30) Funds from operations - FFO
$0.45 $0.51 FFO before operating real estate impairment recoveries
$0.42 $0.51 Adjusted funds from operations - AFFO $0.30 $0.36 *
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. Management Comments
Chairman and Chief Executive Officer Terry Considine comments:
"Aimco executed its plan successfully during the first quarter.
Same Store property operating results were essentially equal to the
first quarter 2008 despite a challenging operating environment.
Corporate overhead expenses have been reduced significantly,
redevelopment expenditures in 2009 are expected to be 75% lower
than in 2008 and the reduction in Aimco's regular quarterly
dividend allows Aimco to retain a substantial amount of cash. Over
the coming quarters, we will remain focused on serving our
customers, upgrading our portfolio and strengthening our balance
sheet." President, Chief Investment Officer and Chief Financial
Officer David Robertson adds: "Balance sheet safety and liquidity
are being enhanced by the sale of non-core assets and the
accelerated refinancing of property mortgage debt. We sold $83
million of assets during the quarter at an average cap rate of 7.1%
and continue to market other non-core assets. We refinanced $110
million of property debt, $99 million of which represented
accelerated refinancing of property loans maturing subsequent to
the first quarter, generating excess proceeds to Aimco of $56
million. We will continue to focus on taking the actions necessary
to ensure that we maintain appropriate liquidity and balance sheet
risk." Property Operations Conventional Real Estate Operations
Conventional real estate operations consist of Aimco's diversified
portfolio of market rate apartment communities. At the end of the
first quarter 2009, this portfolio included 303 properties with
91,774 units in which Aimco had a weighted average ownership of
90%. Average rents for the conventional real estate portfolio
increased from $933 per unit during the first quarter 2008 to
$1,030 per unit during the first quarter 2009. During the first
quarter 2009, conventional real estate operations generated net
operating income of $141.4 million. "Same Store" Results In the
first quarter 2009, the Same Store portfolio included 226
communities with 64,996 Effective Units (see the Glossary) based on
Aimco's weighted average ownership of 91% (See Supplemental
Schedules 6a and 6b). Comparing Same Store results in the first
quarter 2009 with the first quarter 2008, total revenue decreased
$1.2 million, or 0.6%. The decrease in revenue was primarily the
result of lower occupancy, which was down 1.3% from 94.8% to 93.5%,
partially offset by higher average rent, up $1 per unit, or 0.1%,
from $965 per unit to $966 per unit. Same Store expenses of $76.0
million decreased $1.4 million, or 1.9%, compared with the prior
year, due to decreases in several areas including marketing,
repairs and maintenance, turn costs and contract services,
partially offset by increases in utilities and taxes. Same Store
portfolio net operating income was $116.7 million for the first
quarter 2009, up 0.2% from the first quarter 2008. Same Store
Operating Results FIRST QUARTER Year-over-year Sequential 4th 2009
2008 Variance Qtr Variance Same Store Operating Measures Average
Physical Occupancy 93.5% 94.8% -1.3% 94.7% -1.2% Average Rent Per
Unit $966 $965 0.1% $969 -0.3% Total Same Store ($mm) Revenue
$192.7 $193.9 -0.6% $194.9 -1.1% Expenses (76.0) (77.4) -1.9%
(73.2) 3.8% NOI $116.7 $116.5 0.2% $121.7 -4.1% Affordable Real
Estate Operations At the end of the first quarter 2009, Aimco's
owned affordable portfolio included 285 properties with 33,380
units in which Aimco had an average ownership of 53%. During the
first quarter 2009, affordable property operations generated net
operating income of $17.9 million. Average month-end occupancy for
the affordable portfolio decreased 80 basis points from 97.9% for
the first quarter 2008 to 97.1% for the first quarter 2009, while
average rent per unit increased 0.8% from $743 to $749 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. Consolidated investment
management income, net of tax, was $6.9 million in the first
quarter 2009 compared to $9.0 million in the first quarter 2008.
Recurring asset management activities and deferred tax credit
income comprised 86% and 68% of total investment management revenue
during the first quarter 2009 and 2008, respectively. 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 largest 20 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 largest 20 markets and to
increase our investment in the largest 20 markets both by making
acquisitions and through redevelopment spending. In the first
quarter 2009, Aimco sold seven conventional properties and three
affordable properties with 1,668 and 324 units, respectively, for
$83.1 million in gross proceeds (Aimco share $75.4 million).
Aimco's share of net proceeds after distributions to limited
partners, repayment of existing property debt and transaction costs
was $14.3 million. Aimco exited the San Antonio, Texas market
during the first quarter 2009. See Supplemental Schedules 6 and 7
for additional details regarding Aimco's portfolio allocation and
Supplemental Schedule 8 for additional information on disposition
activity. Balance Sheet and Liquidity Aimco is financed primarily
with $5.6 billion of long-term non-recourse property debt, which
represented approximately 84% of Aimco's leverage as of the end of
the first quarter 2009. During the first quarter 2009, Aimco closed
loans on 12 properties generating gross proceeds of $172.9 million
at a weighted average interest rate of 5.87%. After distributions
to limited partners, repayment of existing property debt and
transaction costs, Aimco's share of net proceeds was $55.6 million.
At the end of the first quarter 2009, the weighted average maturity
of Aimco's non-recourse property debt was 9.6 years. Aimco's
preferred securities represented approximately 11% of Aimco's
leverage at the end of the first quarter 2009 at which time Aimco
had $782.9 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 the first quarter 2009. At the end of the
first quarter 2009, the balance on Aimco's $635.0 million revolving
credit facility was $15.0 million and available capacity was $577.0
million, net of $43.0 million of letters of credit drawn against
the facility. The balance on Aimco's corporate term debt of $350.0
million matures the first quarter of 2011. In connection with these
recourse obligations, Aimco is subject to debt service coverage and
fixed charge coverage compliance levels of 1.50:1 and 1.30:1,
respectively, as defined in the credit facility. For the first
quarter 2009, Aimco's debt service coverage and fixed charge
coverage ratios were 1.63:1 and 1.42:1, respectively, and Aimco
expects to maintain these ratios in excess of bank compliance
levels. As of March 31, 2009, Aimco had outstanding $6.7 billion of
consolidated debt, which consisted of $5.4 billion of fixed rate
property debt and $1.3 billion of floating rate property and
corporate debt. In addition, Aimco had outstanding $73.0 million of
floating rate preferred stock. Aimco's FFO exposure to changes in
floating interest rates is mitigated by $562.7 million of
tax-exempt bonds with rates tied to the Securities Industry and
Financial Markets Association Municipal Swap Index (SIFMA)
(previously named the Bond Market Association Index), which has
over the last twenty years moved at approximately 0.72% for a 1.00%
change in LIBOR. Aimco's 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 April 30, 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 March 31, 2009, payable
on May 29, 2009, to shareholders of record on May 15, 2009.
Earnings Conference Call Please join Aimco management for the First
Quarter 2009 earnings conference call to be held Friday, May 1,
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: 8355202 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: 429339 The conference call
replay will be available until 9:00 a.m. Eastern time on May 18,
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 second 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 976 properties, including 160,118 apartment units, and
serves approximately 500,000 residents each year. Aimco's
properties are located in 46 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
March 31, --------- 2009 2008 ---- ---- REVENUES: Rental and other
property revenues $338,093 $332,892 Property management revenues,
primarily from affiliates 1,644 2,104 Asset management and tax
credit revenues 9,539 12,852 ----- ------ Total revenues 349,276
347,848 ------- ------- OPERATING EXPENSES: Property operating
expenses 156,489 161,764 Property management expenses 1,433 1,335
Investment management expenses 3,789 4,387 Depreciation and
amortization 123,215 103,500 General and administrative expenses
20,072 21,366 Other expenses, net 2,292 5,751 ----- ----- Total
operating expenses 307,290 298,103 ------- ------- Operating income
41,986 49,745 Interest income 3,340 8,115 Provision for losses on
notes receivable (150) (223) Interest expense (91,511) (91,533)
Equity losses of unconsolidated real estate partnerships (2,040)
(1,029) Provision for operating real estate impairment losses
(1,760) - Gain (loss) on dispositions of unconsolidated real estate
and other 10,862 (137) ------ ------ Loss before income taxes and
discontinued operations (39,273) (35,062) Income tax benefit 3,016
1,772 ----- ----- Loss from continuing operations (36,257) (33,290)
Income from discontinued operations, net (1) 3,688 8,159 -----
----- Net loss (32,569) (25,131) Noncontrolling interests(2): Net
loss (income) attributable to noncontrolling interests in
consolidated real estate partnerships 6,273 (1,843) Net income
attributable to preferred noncontrolling interests in Aimco
Operating Partnership (3) (1,069) (1,782) Net loss attributable to
common noncontrolling interests in Aimco Operating Partnership (3)
2,835 4,108 ----- ----- Total noncontrolling interests 8,039 483
----- ----- Net loss attributable to Aimco (24,530) (24,648) Net
income attributable to Aimco preferred stockholders 13,166 14,208
------ ------ Net loss attributable to Aimco common stockholders
$(37,696) $(38,856) ======== ======== Weighted average common
shares outstanding - basic and diluted (4) 115,099 127,961 =======
======= Earnings (loss) per common share - basic and diluted (4):
Loss from continuing operations (net of income attributable to
noncontrolling interests and Aimco preferred stockholders) $(0.33)
$(0.34) Income from discontinued operations (net of income
attributable to noncontrolling interests) - 0.04 ---- ---- Net loss
attributable to Aimco common stockholders $(0.33) $(0.30) ======
====== Notes to Consolidated Statements of Income (1) Income from
discontinued operations consists of the following (in thousands):
Three Months Ended March 31, --------- 2009 2008 ---- ---- Rental
and other property revenues (5) $1,840 $91,724 Property operating
expenses (5) (6) (3,998) (46,126) Depreciation and amortization
(379) (24,930) Other expenses, net (1,096) (644) ------ ------
Operating income (3,633) 20,024 Interest income 19 526 Interest
expense (1,230) (16,863) ------ ------- (Loss) income before gain
on dispositions of real estate, impairment losses and income taxes
(4,844) 3,687 Gain on dispositions of real estate 4,550 4,239 Real
estate impairment recoveries 4,613 - Income tax (expense) benefit
(631) 233 ---- ---- Income from discontinued operations, net $3,688
$8,159 ====== ====== Income from discontinued operations
attributable to noncontrolling interests: Noncontrolling interests
in consolidated real estate partnerships (5) $(3,662) $(3,635)
Noncontrolling interests in Aimco Operating Partnership (278) (449)
---- ---- Total income from discontinued operations attributable to
noncontrolling interests $(3,940) $(4,084) ======= ======= (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) 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. (5) Income from discontinued operations for the three
months ended March 31, 2009, attributable to properties classified
as held for sale at March 31, 2009, includes $0.9 million of rental
and other property revenues and $0.7 million of property operating
expenses. Noncontrolling interests in consolidated real estate
partnerships' share of these amounts totaled less than $0.1
million. (6) Property operating expenses for the three months ended
March 31, 2009, includes $1.9 million of net casualty losses. GAAP
Balance Sheets ------------------- Consolidated Balance Sheets (in
thousands) (unaudited) March 31, 2009 December 31, 2008
-------------- ----------------- ASSETS Buildings and improvements
$8,568,442 $8,520,382 Land 2,337,853 2,326,671 Accumulated
depreciation (2,883,910) (2,771,131) ---------- ---------- Total
real estate 8,022,385 8,075,922 Cash and cash equivalents 93,233
299,676 Restricted cash 265,639 258,156 Accounts receivable 80,689
92,923 Accounts receivable from affiliates 32,833 36,372 Deferred
financing costs 58,388 59,070 Notes receivable from unconsolidated
real estate partnerships 24,267 22,567 Notes receivable from non-
affiliates 139,949 139,897 Investment in unconsolidated real estate
partnerships 121,322 119,036 Other assets 199,203 188,764 Deferred
income tax asset, net 27,052 28,326 Assets held for sale 17,258
94,157 ------ ------ Total assets $9,082,218 $9,414,866 ==========
========== LIABILITIES AND EQUITY Property tax-exempt bond
financing $720,722 $721,971 Property loans payable 5,558,506
5,545,893 Term loans 350,000 400,000 Credit facility 15,000 - Other
borrowings 90,941 95,981 ------ ------ Total indebtedness 6,735,169
6,763,845 Accounts payable 32,902 64,241 Accrued liabilities and
other 291,081 411,209 Deferred income 184,796 195,202 Security
deposits 42,774 43,088 Liabilities related to assets held for sale
5,176 70,599 ----- ------ Total liabilities 7,291,898 7,548,184
--------- --------- Preferred noncontrolling interests in Aimco
Operating Partnership 87,247 88,148 Equity: Perpetual preferred
stock 696,500 696,500 Class A Common Stock 1,165 1,162 Additional
paid-in capital 3,061,099 3,056,550 Notes due on common stock
purchases (2,148) (3,607) Distributions in excess of earnings
(2,372,038) (2,335,628) ---------- ---------- Total Aimco equity
1,384,578 1,414,977 --------- --------- Noncontrolling interests in
consolidated real estate partnerships 323,414 363,557 Common
noncontrolling interests in Aimco Operating Partnership (4,919) -
------ ------ Total equity 1,703,073 1,778,534 --------- ---------
Total liabilities and equity $9,082,218 $9,414,866 ==========
========== Outlook and Forward Looking Statement Second 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 second 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. Second Quarter 2009 Full Year 2009
------------------- ---------------- GAAP earnings per share (1)(3)
-$0.48 to -$0.42 -$1.68 to -$1.37 FFO per share (2)(4) $0.37 to
$0.43 $1.65 to $1.95 2009 Same Store operating assumptions:
Weighted average daily occupancy 93.0% to 94.0% 93.5% to 94.5% NOI
change - sequential -1.25% to -0.25% NOI change - 2009 vs. 2008
-3.0% to -2.0% -5.0% to 0.0% (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 is calculated based on 115.2 million
weighted average common shares (diluted) for second quarter and
full year 2009. (4) FFO per share is calculated based on 116.6
million weighted average common shares (diluted) for second quarter
and 116.5 million weighted average common shares (diluted) for full
year 2009. DATASOURCE: Apartment Investment and Management Company
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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