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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