UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________________________
FORM 8-K
_____________________________________________
CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) April 30, 2015
_____________________________________________
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
(Exact name of registrant as specified in its charter)
_____________________________________________
 
MARYLAND
 
1-13232
 
84-1259577
(State or other jurisdiction
 
(Commission
 
(I.R.S. Employer
of incorporation or organization)
 
File Number)
 
Identification No.)
4582 SOUTH ULSTER STREET
SUITE 1100, DENVER, CO 80237
_____________________________________________
(Address of principal executive offices)
  
(Zip Code)
 
Registrant's telephone number, including area code: (303) 757-8101

NOT APPLICABLE
 (Former name or Former Address, if Changed Since Last Report)
_____________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 







ITEM 2.02.
Results of Operations and Financial Condition.

The earnings release of Apartment Investment and Management Company (“Aimco”), dated April 30, 2015, attached hereto as Exhibit 99.1 is furnished herewith. Aimco will hold its first quarter 2015 earnings conference call on May 1, 2015, at 1:00 p.m. Eastern time. You may join the conference call through an internet webcast accessed through Aimco's website at http://www.aimco.com/investors. Alternatively, you may join the conference call by telephone by dialing 888-317-6003, or 412-317-6061 for international callers, and using passcode 5559512. If you wish to participate, please call approximately five minutes before the conference call is scheduled to begin.

If you are unable to join the live conference call, you may access the replay until 9:00 a.m. Eastern time on May 16, 2015, by dialing 877-344-7529, or 412-317-0088 for international callers, and using passcode 10063555, or you may access the audiocast replay on Aimco's website at http://www.aimco.com/investors. Please note that the full text of the earnings release and supplemental schedules are available through Aimco's website at http://www.aimco.com/investors/financial-reports/quarterly-earning-reports. The information contained on Aimco's website is not incorporated by reference herein.



ITEM 9.01.     Financial Statements and Exhibits.
    
The following exhibits are furnished with this report:

    Exhibit Number             Description

99.1                First Quarter 2015 Earnings Release dated April 30, 2015







SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: April 30, 2015

APARTMENT INVESTMENT AND MANAGEMENT COMPANY


/s/ Ernest M. Freedman
___________________________________________
Ernest M. Freedman
Executive Vice President and Chief Financial Officer














Page
1 
 
Earnings Release
 
 
8 
 
Consolidated Statements of Operations
 
 
9 
 
Consolidated Balance Sheets
 
 
10   
 
Schedule 1    –   Funds From Operations and Adjusted Funds From Operations
 
 
11   
 
Schedule 2    –   Proportionate Adjusted Funds From Operations Presentation
 
 
 
Schedule 3    –   Portfolio Summary
 
 
 
13    
 
Schedule 4    –   Proportionate Balance Sheet Data
 
 
14    
 
Schedule 5    –   Capitalization and Financial Metrics
 
 
16    
 
Schedule 6    –   Conventional Same Store Operating Results
 
 
 
19    
 
Schedule 7    –   Conventional Portfolio Data by Market
 
 
21    
 
Schedule 8    –   Apartment Community Disposition and Acquisition Activity
 
 
22    
 
Schedule 9    –   Capital Additions
 
 
23   
 
Schedule 10  –   Summary of Redevelopment and Development Activity
 
 
27    
 
Glossary and Reconciliations
























                                                                                                                                                             



Aimco Reports First Quarter 2015 Results, Raises Guidance
Denver, Colorado, April 30, 2015 - Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today its first quarter 2015 results and an increase in its full year 2015 earnings guidance.
Chairman and Chief Executive Officer Terry Considine comments: "Aimco made solid progress in 2015's first quarter. Operating results were ahead of guidance, notwithstanding the severe winter weather and its related costs. Portfolio quality improved with average monthly revenue per apartment home now exceeding $1,700. Construction was completed at Aimco's two large West Coast redevelopments, Lincoln Place and Preserve at Marin, and rent achievement is ahead of underwriting. Standard & Poor's upgraded its rating of the Aimco balance sheet to investment grade, BBB- with a stable outlook. The Denver Post again recognized Aimco as one of Colorado’s Top Workplaces."
Considine continues: "As announced earlier this week and considering these good facts, Aimco's Board of Directors increased the quarterly common dividend to an annual rate of $1.20 per share, which reflects an increase in Aimco's targeted AFFO payout from 60% to 65%. This higher AFFO payout target reflects the benefits of lower leverage, a higher quality portfolio and increasing quality of earnings."
Chief Financial Officer Ernie Freedman adds: "First quarter Pro forma FFO of $0.52 per share was at the high end of our guidance, primarily due to strong property operating results and higher than expected transaction income, offset somewhat by higher than anticipated casualty losses related to severe weather during the quarter and penalties incurred in connection with the voluntary early repayment of property debt to unencumber two communities. These prepayment penalties had not been anticipated in our guidance. We are increasing our full year Pro forma FFO and AFFO guidance, and operations guidance, to reflect first quarter outperformance."
Financial Results: First Quarter AFFO Up 7% Year-Over-Year
 
FIRST QUARTER
(all items per common share - diluted)
2015
 
2014
Net income
$
0.58

 
$
0.44

Funds From Operations (FFO)
$
0.51

 
$
0.50

Add back Aimco's share of preferred equity redemption related amounts
$
0.01

 
$

Pro forma Funds From Operations (Pro forma FFO)
$
0.52

 
$
0.50

Deduct Aimco share of Capital Replacements
$
(0.06
)
 
$
(0.07
)
Adjusted Funds From Operations (AFFO)
$
0.46

 
$
0.43

Pro forma FFO - Year-over-year, first quarter Pro forma FFO increased 4% as a result of: strong Property Net Operating Income growth; increased contribution from redevelopment communities; and higher income tax benefit attributable to the recognition of historic tax credits related to Aimco's Park Towne Place redevelopment. These increases were partially offset by: the loss of income from apartment communities that were sold; prepayment penalties incurred in first quarter 2015; and higher preferred stock dividends attributable to Aimco's second quarter 2014 offering of its Class A Preferred Stock.
Adjusted Funds from Operations - Year-over-year, first quarter AFFO increased 7% as a result of higher Pro forma FFO and lower Capital Replacement spending due to the sale of approximately 9,000 apartment homes during 2014. As Aimco concentrates its investment capital in higher-quality, higher price point apartment communities, its free cash flow margin is increasing as Capital Replacements decline as a percentage of net operating income.

1



Operating Results: First Quarter Conventional Same Store NOI Up 5.2%
 
FIRST QUARTER
 
Year-over-Year
Sequential
 
2015
2014
Variance
4th Qtr.
Variance
Average Rent Per Apartment Home
$1,471
$1,409
4.4
%
$1,464
0.5
 %
Other Income Per Apartment Home
181
175
3.4
%
165
9.7
 %
Average Revenue Per Apartment Home
$1,652
$1,584
4.3
%
$1,629
1.4
 %
Average Daily Occupancy
95.9
%
95.8
%
0.1
%
95.6
%
0.3
 %
 
 
 
 
 
 
$ in Millions
 
 
 
 
 
Revenue
$172.1
$164.8
4.4
%
$169.2
1.7
 %
Expenses
57.3
55.7
2.9
%
52.2
9.8
 %
NOI
$114.8
$109.1
5.2
%
$117.0
(1.9
)%
Rental Rates - Aimco measures changes in rental rates by comparing, on a lease-by-lease basis, the rate on a newly executed lease to the rate on the expiring lease for that same apartment. Newly executed leases are classified either as a new lease, where a vacant apartment is leased to a new customer, or as a renewal.
2015
Jan
Feb
Mar
1st Qtr.
Renewal rent increases
4.2%
5.3%
4.8%
4.8%
New lease rent increases
0.3%
0.9%
2.3%
1.2%
Weighted average rent increases
2.1%
2.9%
3.5%
2.8%
Portfolio Management: Revenue Per Apartment Home Up 13.2% to $1,704
Aimco portfolio strategy seeks predictable rent growth from a portfolio of "A," "B" and "C+" quality apartment communities, averaging "B/B+" in quality, and diversified among the largest coastal and job growth markets in the U.S., as measured by total apartment value. Aimco target markets are primarily coastal markets, and also include several Sun Belt cities and Chicago, Illinois.
Aimco measures asset quality based on rents compared to local market average rents as reported by REIS, a third-party provider of commercial real estate performance information and analysis. Aimco defines asset quality as follows: "A" quality assets are those with rents greater than 125% of local market average; "B" quality assets are those with rents between 90% and 125% of local market average; "C+" quality assets are those with rents lower than 90% of local market average, and greater than $1,100 per month; and "C" quality assets are those with rents lower than 90% of local market average, and less than $1,100 per month. For fourth quarter 2014, the most recent period for which REIS information is available, Aimco Conventional Apartment Community rents averaged 109% of local market average rents.
Aimco's portfolio strategy is to sell each year the lowest-rated 5% to 10% of its portfolio and to reinvest the proceeds from such sales in redevelopment and acquisition of higher quality apartment communities. Through this disciplined approach to capital recycling, Aimco has significantly increased the quality of its portfolio. From December 31, 2011 to March 31, 2015, Aimco:
Increased its period-end Conventional portfolio average revenue per apartment home by 35% to $1,704. This rate of growth reflects the impact of market rent growth, and more significantly, the impact of portfolio management through dispositions, redevelopment and acquisitions.
Increased its Conventional portfolio free cash flow margin by 10% through the sale of lower-rent properties and reinvestment in higher-rent properties;

2



Reduced by 83% the percentage of its portfolio represented by "C" quality properties and increased by 49% the percentage of its portfolio represented by "A" quality properties; and
Increased to 90% the percentage of its Conventional Property Net Operating Income earned in Aimco's target markets.
As Aimco executes its portfolio strategy, it expects to continue to increase Conventional portfolio average revenue per apartment home at a rate greater than market rent growth; to increase further free cash flow margins; to sell the percentage of its portfolio represented by "C" quality properties; and to increase to 95% or more the percentage of its Conventional Property Net Operating Income earned in its target markets.
First Quarter 2015 Dispositions - In the first quarter, Aimco sold four Conventional Apartment Communities and two Affordable Apartment Communities with 926 and 174 apartment homes, respectively, for $147.8 million in gross proceeds. Aimco's share of net sales proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $73.3 million. Revenues per apartment home for the communities sold during first quarter averaged $1,274, 25% less than the retained portfolio average of $1,704.
Year-to-Date Acquisitions - In the first quarter, Aimco acquired for $38.3 million Mezzo Apartment Homes, a 94-apartment home community located in Atlanta, Georgia, between Midtown and Buckhead. Built in 2008, this 19-story building includes 2,800 square feet of retail space. Stabilized revenues per apartment home are expected to average $3,600, making this an "A" quality asset for Aimco.
In April, Aimco acquired for $63 million Axiom Apartment Homes located in the Kendall Square neighborhood of Cambridge, Massachusetts. Aimco has begun leasing up the newly constructed building, which includes 115 apartment homes and 3,800 square feet of retail space. Upon stabilization, revenues per apartment home are expected to average $3,550, making this an "A" quality asset for Aimco.
Quarter-End Portfolio - First quarter 2015 Conventional portfolio average monthly revenue per apartment home was $1,704, a 13.2% increase compared to first quarter 2014, as a result of year-over-year Same Store monthly revenue per apartment home growth of 4.3%, the sale of Conventional Apartment Communities with average monthly revenues per apartment home substantially lower than those of the retained portfolio, and reinvestment of the sales proceeds in higher-rent apartment communities through redevelopment and acquisitions.
Redevelopment: Lincoln Place and The Preserve at Marin Complete
During first quarter, Aimco invested $23.5 million in redevelopment and completed construction at two large redevelopment projects, Lincoln Place, in Venice, California, and The Preserve at Marin, in Corte Madera, California. As of March 31, 2015, 659 of the 795 apartment homes at Lincoln Place and 81 of the 126 apartment homes at Preserve at Marin were occupied. Construction at these projects was completed within the costs and timing revised by Aimco one year ago and rental rate achievement is above underwriting.
Development: Progressing as Planned
During first quarter, Aimco invested $17.8 million in the development of One Canal Street, located in the historic Bulfinch Triangle neighborhood of Boston’s West End. One Canal Street will include 310 apartment homes and 22,000 square feet of commercial space. Aimco expects completion of construction in second quarter 2016 with lease-up beginning in first quarter 2016.

3



Balance Sheet and Liquidity: Leverage on Target and Declining
Components of Aimco Leverage
 
AS OF MARCH 31, 2015
$ in Millions
Amount
% of Total
Weighted Avg. Maturity (Yrs.)
Aimco share of long-term, non-recourse property debt
$
3,779.0

94
%
8.1
Preferred securities
247.7

6
%
Perpetual
Total leverage
$
4,026.7

100
%
n/a
Leverage Ratios
Aimco leverage targets are: Debt and Preferred Equity to EBITDA below 7.0x; and EBITDA Coverage of Interest and Preferred Dividends greater than 2.5x. Aimco also focuses on Debt to EBITDA and EBITDA Coverage of Interest ratios. See the Glossary for definitions of these metrics.
 
TRAILING-TWELVE-MONTHS ENDED MARCH 31,
 
2015
2014
Debt to EBITDA
6.5x
7.1x
Debt and Preferred Equity to EBITDA
6.9x
7.4x
EBITDA Coverage of Interest
2.8x
2.6x
EBITDA Coverage of Interest and Preferred Dividends
2.6x
2.5x
Future leverage reduction is expected from both earnings growth, especially as apartment communities now being redeveloped or developed are completed, and from regularly scheduled property debt amortization funded from retained earnings.
Liquidity
Aimco recourse debt at March 31, 2015, was limited to its revolving credit facility, which Aimco uses for working capital and other short-term purposes, and to secure letters of credit.
At quarter-end, Aimco had no outstanding borrowings on its revolving credit facility and available capacity of $562.1 million, net of $37.9 million of letters of credit backed by the facility. Aimco also held cash and restricted cash on hand of $249.4 million. Finally, Aimco held 20 apartment communities in its unencumbered asset pool with a total estimated fair market value of approximately $1.3 billion.
Equity Activity
Common Stock Offering - As previously announced, in January 2015, Aimco sold in a public offering 9,430,000 shares of Common Stock at $38.90 per share, providing net proceeds of $366.8 million. Using the proceeds from this offering, during first quarter, Aimco: repaid the outstanding balance on its revolving credit facility of $112.3 million; redeemed the outstanding balance of its Series A Community Reinvestment Act Preferred Stock at its liquidation preference of $27 million; and repaid $65.1 million of property debt, thereby unencumbering three communities. Aimco expects to use the remainder of the proceeds from this offering to repay property debt maturing during the balance of 2015 and to fund redevelopment and property upgrades during 2015 that would otherwise have been funded with property debt on a leverage-neutral basis.

4



Dividend - As previously announced, the Aimco Board of Directors declared a quarterly cash dividend of $0.30 per share of Class A Common Stock for the quarter ended March 31, 2015, an increase of 15% compared to the dividend for the first quarter 2014. This dividend is payable on May 29, 2015, to stockholders of record on May 15, 2015.
2015 Outlook: Guidance Raised to Reflect First Quarter Outperformance
($ Amounts represent Aimco Share)
FULL YEAR
2015
PREVIOUS FULL YEAR 2015
FULL YEAR
2014
 
 
 
 
Net income per share
$0.88 to $0.98
$0.48 to $0.58
$2.06
Pro forma FFO per share
$2.14 to $2.24
$2.12 to $2.22
$2.07
AFFO per share
$1.82 to $1.92
$1.80 to $1.90
$1.68
 
 
 
 
Conventional Same Store Operating Measures
 
 
 
NOI change compared to prior year
4.50% to 5.50%
4.00% to 5.50%
5.5%
Revenue change compared to prior year
4.00% to 4.50%
3.75% to 4.50%
4.5%
Expense change compared to prior year
2.50% to 3.00%
2.50% to 3.00%
2.3%
 
 
 
 
Transactions
 
 
 
Real estate value of property dispositions
$250M to $300M
$225M to $275M
$689.5M
Aimco net proceeds from property dispositions
$150M to $160M
$130M to $140M
$435.2M
 
SECOND QUARTER 2015
 
 
Net income per share
$0.08 to $0.12
Pro forma FFO per share
$0.51 to $0.55
AFFO per share
$0.42 to $0.46
 
 
Conventional Same Store Operating Measures
 
NOI change compared to second quarter 2014
4.25% to 5.25%
NOI change compared to first quarter 2015
1.50% to 2.50%
Earnings Conference Call Information
Live Conference Call:
Conference Call Replay:
Friday, May 1, 2015 at 1:00 p.m. ET
Replay available until 9:00 a.m. ET on May 16, 2015
Domestic Dial-In Number: 1-888-317-6003
Domestic Dial-In Number: 1-877-344-7529
International Dial-In Number: 1-412-317-6061
International Dial-In Number: 1-412-317-0088
Passcode: 5559512
Passcode: 10063555
Live webcast and replay: http://www.aimco.com/investors/events-presentations/webcasts

5



Supplemental Information
The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco's website at http://www.aimco.com/investors/financial-reports/quarterly-earning-reports.
Glossary & Reconciliations of Non-GAAP Financial and Operating Measures
Financial and operating measures found in this Earnings Release and the Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. These measures are defined in the Glossary in the Supplemental Information and, where appropriate, reconciled to the most comparable GAAP measures.
About Aimco
Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the largest markets in the United States. Aimco is one of the country's largest owners and operators of apartments, with 198 communities in 23 states and the District of Columbia. 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 www.aimco.com.
Contact
Elizabeth Coalson, Vice President-Investor Relations
Investor Relations 303-691-4350, investor@aimco.com
Forward-looking Statements
This Earnings Release and Supplemental Information contain forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically forecasts of: second quarter and full year 2015 results, including but not limited to: Pro forma FFO and selected components thereof; AFFO; Aimco's redevelopment and development investments, timelines and stabilized rents; the use of proceeds from its January 2015 common stock offering; and expectations regarding sales of Aimco's apartment communities and the use of proceeds thereof. 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, rental rates and property operating results; the effect of acquisitions, dispositions, redevelopments and developments; our ability to meet budgeted costs and timelines, and achieve budgeted rental rates related to our developments and redevelopments; and our ability to comply with debt covenants, including financial coverage ratios.
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; the risk that our earnings may not be sufficient to maintain compliance with debt covenants; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; the timing of

6



acquisitions, dispositions, redevelopments and developments; insurance risk, including the cost of insurance; natural disasters and severe weather such as hurricanes; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; energy costs; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently or previously owned by Aimco. In addition, Aimco's 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 its 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 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, 2014, 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.

7



Consolidated Statements of Operations
 
 
 
 
 
(in thousands, except per share data) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
  
 
Three Months Ended
 
 
 
March 31,
 
 
 
2015
 
2014
 
REVENUES
 
 
 
 
 
Rental and other property revenues
 
$
238,289

 
$
240,136

 
Tax credit and asset management revenues
 
5,976

 
8,788

 
Total revenues
 
244,265

 
248,924

 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
Property operating expenses
 
95,492

 
99,268

 
Investment management expenses
 
1,603

 
1,252

 
Depreciation and amortization
 
74,432

 
70,307

 
General and administrative expenses
 
10,652

 
10,527

 
Other expenses, net
 
1,019

 
2,296

 
Total operating expenses
 
183,198

 
183,650


Operating income
 
61,067

 
65,274

 
Interest income
 
1,725

 
1,730

 
Interest expense
 
(53,520
)
 
(55,745
)
 
Other, net
 
2,264

 
(1,977
)
 
Income before income taxes and gain on dispositions
 
11,536

 
9,282

 
Income tax benefit
 
6,921

 
2,758

 
Income from continuing operations
 
18,457

 
12,040

 
Gain on dispositions of real estate, net of tax
 
85,693

 
69,492

 
Net income
 
104,150

 
81,532

 
Noncontrolling interests:
 
 
 
 
 
Net income attributable to noncontrolling interests in consolidated real estate partnerships
 
(4,756
)
 
(11,389
)
 
Net income attributable to preferred noncontrolling interests in Aimco OP
 
(1,736
)
 
(1,605
)
 
Net income attributable to common noncontrolling interests in Aimco OP
 
(4,398
)
 
(3,611
)
 
Net income attributable to noncontrolling interests
 
(10,890
)
 
(16,605
)
 
Net income attributable to Aimco
 
93,260

 
64,927

 
Net income attributable to Aimco preferred stockholders
 
(3,522
)
 
(454
)
 
Net income attributable to participating securities
 
(394
)
 
(239
)
 
Net income attributable to Aimco common stockholders
 
$
89,344

 
$
64,234

 
Earnings attributable to Aimco per common share - basic and diluted:
 
 
 
 
 
Income from continuing operations
 
$
0.58

 
$
0.44

 
Net income
 
$
0.58

 
$
0.44

 




8



Consolidated Balance Sheets
(in thousands) (unaudited)
 
 
 
 
 
 
 
March 31, 2015
 
December 31, 2014
ASSETS
 
 
 
 
Buildings and improvements
 
$
6,304,829

 
$
6,259,318

Land
 
1,883,128

 
1,885,640

Total real estate
 
8,187,957

 
8,144,958

Accumulated depreciation
 
(2,703,934
)
 
(2,672,179
)
Net real estate
 
5,484,023

 
5,472,779

Cash and cash equivalents
 
164,490

 
28,971

Restricted cash
 
95,428

 
91,445

Other assets
 
465,332

 
476,727

Assets held for sale
 
6,180

 
27,106

Total assets
 
$
6,215,453

 
$
6,097,028

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
Non-recourse property debt
 
$
3,888,284

 
$
4,022,809

Revolving credit facility borrowings
 

 
112,330

Total indebtedness
 
3,888,284

 
4,135,139

Accounts payable
 
50,860

 
41,919

Accrued liabilities and other
 
270,204

 
279,077

Deferred income
 
76,682

 
81,882

Liabilities related to assets held for sale
 
6,855

 
28,969

Total liabilities
 
4,292,885

 
4,566,986

Preferred noncontrolling interests in Aimco OP
 
87,942

 
87,937

Equity:
 
 
 
 
Perpetual Preferred Stock
 
159,126

 
186,126

Class A Common Stock
 
1,563

 
1,464

Additional paid-in capital
 
4,065,411

 
3,696,143

Accumulated other comprehensive loss
 
(7,009
)
 
(6,456
)
Distributions in excess of earnings
 
(2,603,564
)
 
(2,649,542
)
Total Aimco equity
 
1,615,527

 
1,227,735

Noncontrolling interests in consolidated real estate partnerships
 
235,750

 
233,296

Common noncontrolling interests in Aimco OP
 
(16,651
)
 
(18,926
)
Total equity
 
1,834,626

 
1,442,105

Total liabilities and equity
 
$
6,215,453

 
$
6,097,028

 
 
 
 
 







9



Supplemental Schedule 1
 
 
 
 
 
 
 
 
 
 
 
Funds From Operations and Adjusted Funds From Operations
 
 
 
 
 
(in thousands, except per share data) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2015
 
2014
 
Net income attributable to Aimco common stockholders
 
$
89,344

 
$
64,234

 
Adjustments:
 
 
 
 
 
Depreciation and amortization, net of noncontrolling partners' interest
 
72,622

 
68,429

 
Depreciation and amortization related to non-real estate assets, net of noncontrolling partners' interest
 
(2,489
)
 
(2,387
)
 
Gain on dispositions and other, net of income taxes and noncontrolling partners' interest
 
(80,728
)
 
(57,046
)
 
Provision for impairment losses related to depreciable real estate assets, net of noncontrolling partners' interest
 

 
541

 
Common noncontrolling interests in Aimco OP's share of above adjustments
 
516

 
(505
)
 
Amounts allocable to participating securities
 
41

 
(35
)
 
FFO Attributable to Aimco common stockholders
 
$
79,306

 
$
73,231

 
Preferred equity redemption related amounts, net of common noncontrolling interests in Aimco OP and participating securities
 
658

 

 
Pro forma FFO Attributable to Aimco common stockholders
 
$
79,964

 
$
73,231

 
Capital Replacements, net of common noncontrolling interests in Aimco OP and participating securities
 
(9,130
)
 
(11,280
)
 
AFFO Attributable to Aimco common stockholders
 
$
70,834

 
$
61,951

 
 
 
 
 
 
 
FFO per share - diluted
 
$
0.51

 
$
0.50

 
Pro forma FFO per share - diluted
 
$
0.52

 
$
0.50

 
AFFO per share - diluted
 
$
0.46

 
$
0.43

 
 
 


10



Supplemental Schedule 2(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proportionate Adjusted Funds From Operations Presentation
 
 
 
 
 
 
 
Three Months Ended March 31, 2015 Compared to Three Months Ended March 31, 2014
(in thousands) (unaudited)
 
 
Three Months Ended March 31, 2015
 
Three Months Ended March 31, 2014
 
 
Consolidated
Amount
 
Proportionate
Share of
Unconsolidated
Partnerships
 
Noncontrolling
Interests
 
Proportionate
Amount
 
Consolidated
Amount
 
Proportionate
Share of
Unconsolidated
Partnerships
 
Noncontrolling
Interests
 
Proportionate
Amount
Real estate operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rental and other property revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
$
179,331

 
$

 
$
(6,976
)
 
$
172,355

 
$
171,616

 
$

 
$
(6,691
)
 
$
164,925

Conventional Redevelopment
 
15,463

 

 

 
15,463

 
10,853

 

 

 
10,853

Conventional Acquisition
 
6,014

 

 

 
6,014

 
485

 

 

 
485

Other Conventional 
 
9,488

 
532

 

 
10,020

 
7,587

 
462

 

 
8,049

Total Conventional
 
210,296

 
532

 
(6,976
)
 
203,852

 
190,541

 
462

 
(6,691
)
 
184,312

Affordable Same Store
 
21,965

 

 

 
21,965

 
21,384

 

 

 
21,384

Other Affordable
 
2,556

 
1,006

 
(139
)
 
3,423

 
2,283

 
999

 
(136
)
 
3,146

Total Affordable
 
24,521

 
1,006

 
(139
)
 
25,388

 
23,667

 
999

 
(136
)
 
24,530

Property management revenues, primarily from affiliates
 
2

 
(58
)
 
146

 
90

 
2

 
(63
)
 
140

 
79

Total rental and other property revenues
 
234,819

 
1,480

 
(6,969
)
 
229,330

 
214,210

 
1,398

 
(6,687
)
 
208,921

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store
 
59,553

 

 
(2,362
)
 
57,191

 
57,993

 

 
(2,386
)
 
55,607

Conventional Redevelopment
 
6,016

 

 

 
6,016

 
4,762

 

 

 
4,762

Conventional Acquisition
 
2,286

 

 

 
2,286

 
285

 

 

 
285

Other Conventional 
 
5,221

 
187

 

 
5,408

 
4,173

 
132

 

 
4,305

Total Conventional
 
73,076

 
187

 
(2,362
)
 
70,901

 
67,213

 
132

 
(2,386
)
 
64,959

Affordable Same Store
 
9,318

 

 

 
9,318

 
9,345

 

 

 
9,345

Other Affordable
 
1,182

 
434

 
(63
)
 
1,553

 
1,060

 
426

 
(60
)
 
1,426

Total Affordable
 
10,500

 
434

 
(63
)
 
10,871

 
10,405

 
426

 
(60
)
 
10,771

Casualties
 
4,084

 

 
(55
)
 
4,029

 
4,090

 

 
171

 
4,261

Property management expenses
 
6,005

 

 
3

 
6,008

 
6,388

 

 
(32
)
 
6,356

Total property operating expenses
 
93,665

 
621

 
(2,477
)
 
91,809

 
88,096

 
558

 
(2,307
)
 
86,347

Net real estate operations
 
141,154

 
859

 
(4,492
)
 
137,521

 
126,114

 
840

 
(4,380
)
 
122,574

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred tax credit income
 
5,939

 

 

 
5,939

 
6,833

 

 

 
6,833

Non-recurring revenues 
 
37

 

 
273

 
310

 
1,955

 

 
4

 
1,959

Total tax credit and asset management revenues
 
5,976

 

 
273

 
6,249

 
8,788

 

 
4

 
8,792

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment management expenses
 
(1,603
)
 

 

 
(1,603
)
 
(1,252
)
 

 

 
(1,252
)
Depreciation and amortization related to non-real estate assets
 
(2,490
)
 

 
4

 
(2,486
)
 
(2,360
)
 

 
5

 
(2,355
)
General and administrative expenses
 
(10,652
)
 

 

 
(10,652
)
 
(10,527
)
 

 
19

 
(10,508
)
Other expenses, net
 
(968
)
 
(38
)
 
23

 
(983
)
 
(2,129
)
 
(61
)
 
197

 
(1,993
)
Interest income
 
1,732

 

 
8

 
1,740

 
1,731

 
(12
)
 
16

 
1,735

Interest expense
 
(52,735
)
 
(307
)
 
1,629

 
(51,413
)
 
(50,675
)
 
(333
)
 
1,666

 
(49,342
)
Other, net of non-FFO items
 
(64
)
 
333

 
1,578

 
1,847

 
454

 
333

 
(590
)
 
197

Income tax benefit
 
7,940

 

 

 
7,940

 
2,621

 

 

 
2,621

FFO related to Sold and Held For Sale Apartment Communities
 
796

 

 
19

 
815

 
9,526

 
31

 
(346
)
 
9,211

Preferred dividends and distributions
 
(5,258
)
 

 

 
(5,258
)
 
(2,059
)
 

 

 
(2,059
)
Common noncontrolling interests in Aimco OP
 
(4,058
)
 

 

 
(4,058
)
 
(4,116
)
 

 

 
(4,116
)
Amounts allocated to participating securities
 
(353
)
 

 

 
(353
)
 
(274
)
 

 

 
(274
)
FFO
 
$
79,417

 
$
847

 
$
(958
)
 
$
79,306

 
$
75,842

 
$
798

 
$
(3,409
)
 
$
73,231

Preferred stock redemption related amounts, net
 
658

 

 

 
658

 

 

 

 

Pro forma FFO
 
$
80,075

 
$
847

 
$
(958
)
 
$
79,964

 
$
75,842

 
$
798

 
$
(3,409
)
 
$
73,231

Capital Replacements
 
(9,936
)
 

 
806

 
(9,130
)
 
(12,153
)
 

 
873

 
(11,280
)
AFFO
 
$
70,139

 
$
847

 
$
(152
)
 
$
70,834

 
$
63,689

 
$
798

 
$
(2,536
)
 
$
61,951



 
11



Supplemental Schedule 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Summary
 
 
 
 
 
 
 
 
 
As of March 31, 2015
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
Number of
Apartment Communities
 
Number of
Apartment Homes
 
Effective
Apartment Homes
 
Average
Ownership
 
Conventional Same Store
 
112

 
37,099

 
36,198

 
98
%
 
Conventional Redevelopment
 
7

 
2,886

 
2,886

 
100
%
 
Conventional Acquisition 
 
8

 
1,306

 
1,306

 
100
%
 
Other Conventional
 
14

 
1,275

 
1,205

 
95
%
 
Total Conventional portfolio
 
141

 
42,566

 
41,595

 
98
%
 
 
 
 
 
 
 
 
 
 
 
Affordable Same Store [1]
 
45

 
7,311

 
7,311

 
100
%
 
Other Affordable [2]
 
11

 
1,374

 
975

 
71
%
 
Affordable Held for Sale
 
1

 
84

 
67

 
80
%
 
Total Affordable portfolio
 
57

 
8,769

 
8,353

 
95
%
 
Total portfolio
 
198

 
51,335

 
49,948

 
97
%
 
 
 
 
 
 
 
 
 
 
 
[1] Represents Aimco's portfolio of Affordable Apartment Communities redeveloped with Low Income Housing Tax Credits, generally
 
 between 2005 and 2009. Aimco expects to sell these apartment communities as the tax credit delivery or compliance periods
 
 expire, which expirations occur primarily between 2015 to 2023.
 
[2] Represents Aimco's portfolio of Affordable Apartment Communities that do not meet the Same Store Apartment Community definition.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 








 
12



Supplemental Schedule 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proportionate Balance Sheet Data
 
 
 
 
 
 
 
 
As of March 31, 2015
 
 
 
 
 
 
 
 
 
 
Consolidated
GAAP
Balance Sheet
 
Proportionate
Share of
Unconsolidated
Partnerships
 
Noncontrolling
Interests
 
Proportionate
Balance
Sheet
ASSETS
 
 
 
 
 
 
 
 
Real estate
 
$
8,187,957

 
$
50,662

 
$
(253,830
)
 
$
7,984,789

Accumulated depreciation
 
(2,703,934
)
 
(10,408
)
 
79,911

 
(2,634,431
)
Net real estate
 
5,484,023

 
40,254

 
(173,919
)
 
5,350,358

Cash and cash equivalents
 
164,490

 
374

 
(9,713
)
 
155,151

Restricted cash
 
95,428

 
1,421

 
(2,586
)
 
94,263

Investment in unconsolidated real estate partnerships
 
15,997

 
(15,997
)
 

 

Deferred financing costs, net
 
28,689

 
203

 
(284
)
 
28,608

Goodwill
 
44,703

 

 

 
44,703

Other assets
 
375,943

 
(749
)
 
(159,658
)
 
215,536

Assets held for sale
 
6,180

 

 
(974
)
 
5,206

Total assets
 
$
6,215,453

 
$
25,506

 
$
(347,134
)
 
$
5,893,825

 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
Non-recourse property debt
 
$
3,888,284

 
$
24,105

 
$
(133,404
)
 
$
3,778,985

Deferred income [1]
 
76,682

 
30

 
(245
)
 
76,467

Other liabilities
 
321,064

 
1,371

 
(127,335
)
 
195,100

Liabilities related to assets held for sale
 
6,855

 

 
(1,371
)
 
5,484

Total liabilities
 
4,292,885

 
25,506

 
(262,355
)
 
4,056,036

Preferred noncontrolling interests in Aimco OP
 
87,942

 

 

 
87,942

Perpetual preferred stock
 
159,126

 

 

 
159,126

Other Aimco equity
 
1,456,401

 

 
150,971

 
1,607,372

Noncontrolling interests in consolidated real estate partnerships
 
235,750

 

 
(235,750
)
 

Common noncontrolling interests in Aimco OP
 
(16,651
)
 

 

 
(16,651
)
Total liabilities and equity
 
$
6,215,453

 
$
25,506

 
$
(347,134
)
 
$
5,893,825

[1]
Deferred income represents cash received by Aimco and other amounts required by GAAP to be recognized in earnings in future periods as Aimco performs certain responsibilities under tax credit agreements or as other events occur in the future. Because Aimco does not have an obligation to settle these amounts in cash, Aimco does not include deferred income in liabilities for purposes of calculating NAV. Future earnings related to these amounts are also excluded from Aimco's calculations of NAV.




13



Supplemental Schedule 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization and Financial Metrics
 
 
 
 
 
 
 
(Page 1 of 2)
As of March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Recourse Property Debt Balances and Characteristics
Debt
 
Consolidated
 
Proportionate
Share of
Unconsolidated
Partnerships
 
Noncontrolling
Interests
 
Proportionate Balances
 
Weighted
Average
Maturity 
(Years)
 
 
Fixed rate loans payable
 
$
3,723,209

 
$
24,105

 
$
(133,404
)
 
$
3,613,910

 
7.9

 
 
Floating rate tax-exempt bonds
 
86,167

 

 

 
86,167

 
4.5

 
 
Fixed rate tax-exempt bonds
 
78,908

 

 

 
78,908

 
24.5

 
 
Total non-recourse property debt
 
$
3,888,284

 
$
24,105

 
$
(133,404
)
 
$
3,778,985

[1]
8.1

 
 
Cash and restricted cash
 
(259,918
)
 
(1,795
)
 
12,299

 
(249,414
)
 
 
 
 
Securitization Trust Assets [2]
 
(61,847
)
 

 

 
(61,847
)
 
 
 
 
Net Debt
 
$
3,566,519

 
$
22,310

 
$
(121,105
)
 
$
3,467,724

 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Aimco Share Non-Recourse Property Debt
 
 
 
 
Amortization
 
Maturities
 
Total
 
Maturities as 
a Percent
of Total Debt
 
Average Rate on
Maturing Debt
 
2015 2Q
 
$
20,176

 
$
3,944

 
$
24,120

 
0.10
%
 
5.91
%
 
2015 3Q
 
19,553

 
55,270

 
74,823

 
1.46
%
 
5.22
%
 
2015 4Q
 
19,985

 
42,371

 
62,356

 
1.12
%
 
5.72
%
 
Total 2015
 
59,714

 
101,585

 
161,299

 
2.69
%
 
5.46
%
 
 
 
 
 
 
 
 
 
 
 
 
 
2016 1Q
 
19,028

 
84,604

 
103,632

 
2.24
%
 
5.70
%
 
2016 2Q
 
19,785

 
1,211

 
20,996

 
0.03
%
 
5.85
%
 
2016 3Q
 
19,390

 

 
19,390

 
%
 
%
 
2016 4Q
 
20,178

 
247,994

 
268,172

 
6.56
%
 
4.67
%
 
Total 2016
 
78,381

 
333,809

 
412,190

 
8.83
%
 
4.93
%
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
78,439

 
325,912

 
404,351

 
8.62
%
 
5.92
%
 
2018
 
74,166

 
155,412

 
229,578

 
4.11
%
 
4.33
%
 
2019
 
67,762

 
542,449

 
610,211

 
14.35
%
 
5.54
%
 
2020
 
59,838

 
333,649

 
393,487

 
8.83
%
 
6.26
%
 
2021
 
41,036

 
683,565

[3]
724,601

 
18.09
%
 
5.50
%
 
2022
 
29,014

 
233,439

 
262,453

 
6.18
%
 
4.77
%
 
2023
 
14,079

 
83,238

 
97,317

 
2.20
%
 
5.13
%
 
2024
 
11,892

 
36,514

 
48,406

 
0.97
%
 
4.12
%
 
Thereafter
 
348,060

 
87,032

 
435,092

 
2.30
%
 
3.15
%
 
Total
 
$
862,381

 
$
2,916,604

 
$
3,778,985

 
 
 
4.87
%
[4]
[1]
Represents the carrying amount of Aimco's debt at March 31, 2015, which debt had a mark-to-market liability of $233.8 million at quarter end.
[2]
In 2011, $673.8 million of Aimco's loans payable were securitized in a trust holding only these loans. Aimco purchased for $51.5 million the subordinate positions in the trust that holds these loans. The subordinate positions have a face value of $100.9 million and a carrying amount of $61.8 million, and are included in other assets on Aimco’s Consolidated Balance Sheet at March 31, 2015. The carrying amount of these investments effectively reduces Aimco's March 31, 2015 debt balances.
[3]
2021 maturities include property loans that will repay substantially all of Aimco’s subordinate positions in the securitization trust discussed above.
[4]
Represents the Money-Weighted Average Interest Rate on Aimco’s fixed and floating rate property debt, which takes into account the timing of amortization and maturities. This rate is calculated by Aimco based on the unpaid principal balance as of March 31, 2015, and all contractual debt service payments associated with each of its fixed and floating rate property loans. The Money-Weighted Average Interest Rate can be compared to market interest rates to estimate the difference between the book value of Aimco’s fixed and floating rate property debt and the market value of such debt.

14



Supplemental Schedule 5 (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization and Financial Metrics
 
 
 
 
 
 
 
(Page 2 of 2)

(share, unit and dollar amounts in thousands) (unaudited)
 
 
 
 
 
 
Preferred Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares/Units Outstanding as of March 31, 2015
 
Date First
Available for
Redemption by
Aimco
 
Coupon
 
Amount
Perpetual Preferred Stock:
 
 
 
 
 
 
 
 
Class A
 
5,000

 
5/17/2019
 
6.875%
 
$
125,000

Class Z
 
1,392

 
7/29/2016
 
7.000%
 
34,791

Total perpetual preferred stock
 
 
 
 
 
6.902%
 
159,791

 
 
 
 
 
 
 
 
 
Preferred Partnership Units
 
3,279

 
 
 
7.895%
 
87,942

Total preferred securities
 
 
 
 
 
7.255%
 
$
247,733

 
 
 
 
 
 
 
 
 
Common Stock, Partnership Units and Equivalents
 
 
 
 
 
 
 
 
 
 
 
 
 
As of
 
 
 
 
March 31, 2015
 
 
 
 
 
 
 
Class A Common Stock outstanding
 
155,524

 
 
 
 
 
 
 
 
Dilutive options and restricted stock
 
618

 
 
 
 
 
 
 
 
Total shares and dilutive share equivalents
 
156,142

 
 
 
 
 
 
 
 
Common Partnership Units and equivalents
 
7,635

 
 
 
 
 
 
 
 
Total shares, units and dilutive share equivalents
 
163,777

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trailing Twelve Months Ended March 31,
 
 
 
 
 
 
2015
 
2014
 
 
 
 
Debt to EBITDA
 
6.5x
 
7.1x
 
 
 
 
Debt and Preferred Equity to EBITDA
 
6.9x
 
7.4x
 
 
 
 
EBITDA Coverage of Interest
 
2.8x
 
2.6x
 
 
 
 
EBITDA Coverage of Interest and Preferred Dividends
 
2.6x
 
2.5x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Line of Credit Debt Coverage Covenants
 
 
 
 
Amount
 
Covenant
 
 
 
 
Debt Service Coverage Ratio
 
 
 
1.85x
 
1.50x
 
 
 
 
Fixed Charge Coverage Ratio
 
 
 
1.75x
 
1.40x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Ratings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Standard and Poor’s [4]
 
Corporate Credit Rating
 
BBB- (stable)
 
 
 
 
Fitch Ratings
 
Issuer Default Rating
 
BB+ (positive)
 
 
 
 
 
 
 
[4] During March 2015, Standard & Poor's Rating Services upgraded Aimco to BBB- from BB+.
 

15



Supplemental Schedule 6(a)
 
Conventional Same Store Operating Results
First Quarter 2015 Compared to First Quarter 2014
(in thousands, except community, home and per home data) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
Expenses
 
Net Operating Income
 
 
Operating
Margin
 
Average Daily
Occupancy
During Period
 
Average
Revenue per
Effective Apartment Home
 
 
Apartment Communities
Apartment Homes
Effective Apartment Homes
 
1Q
2015
1Q
2014
Growth
 
1Q
2015
1Q
2014
Growth
 
1Q
2015
1Q
2014
Growth
 
 
1Q
2015
 
1Q
2015
1Q
2014
 
1Q
2015
1Q
2014
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
12
3,552

2,901

 
$
21,118

$
19,925

6.0
 %
 
$
5,755

$
5,759

(0.1
)%
 
$
15,363

$
14,166

8.4
 %
 
 
72.7%
 
95.9%
95.8%
 
$
2,530

$
2,390

Orange County
 
1
770

770

 
4,956

4,784

3.6
 %
 
1,341

1,327

1.1
 %
 
3,615

3,457

4.6
 %
 
 
72.9%
 
95.1%
96.4%
 
2,255

2,149

San Diego
 
6
2,032

2,032

 
9,603

9,042

6.2
 %
 
2,610

2,614

(0.2
)%
 
6,993

6,428

8.8
 %
 
 
72.8%
 
96.0%
96.5%
 
1,641

1,538

Southern CA Total
 
19
6,354

5,703

 
35,677

33,751

5.7
 %
 
9,706

9,700

0.1
 %
 
25,971

24,051

8.0
 %
 
 
72.8%
 
95.8%
96.1%
 
2,176

2,053

East Bay
 
1
246

246

 
1,668

1,454

14.7
 %
 
526

471

11.7
 %
 
1,142

983

16.2
 %
 
 
68.5%
 
95.9%
98.1%
 
2,357

2,007

San Jose
 
1
224

224

 
1,336

1,277

4.6
 %
 
422

428

(1.4
)%
 
914

849

7.7
 %
 
 
68.4%
 
94.7%
95.3%
 
2,099

1,995

San Francisco
 
5
774

774

 
5,448

4,963

9.8
 %
 
1,464

1,496

(2.1
)%
 
3,984

3,467

14.9
 %
 
 
73.1%
 
96.5%
96.0%
 
2,431

2,226

Northern CA Total
 
7
1,244

1,244

 
8,452

7,694

9.9
 %
 
2,412

2,395

0.7
 %
 
6,040

5,299

14.0
 %
 
 
71.5%
 
96.1%
96.3%
 
2,358

2,141

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
5
1,295

1,281

 
4,469

4,241

5.4
 %
 
1,648

1,583

4.1
 %
 
2,821

2,658

6.1
 %
 
 
63.1%
 
93.7%
95.2%
 
1,240

1,159

Boston
 
12
4,173

4,173

 
17,649

16,758

5.3
 %
 
6,834

6,533

4.6
 %
 
10,815

10,225

5.8
 %
 
 
61.3%
 
96.7%
95.5%
 
1,458

1,401

Chicago
 
10
3,245

3,245

 
14,980

14,458

3.6
 %
 
5,313

5,282

0.6
 %
 
9,667

9,176

5.4
 %
 
 
64.5%
 
96.4%
95.5%
 
1,597

1,555

Denver
 
6
1,317

1,278

 
5,447

5,089

7.0
 %
 
1,485

1,492

(0.5
)%
 
3,962

3,597

10.1
 %
 
 
72.7%
 
95.4%
95.9%
 
1,488

1,383

Manhattan
 
8
230

230

 
2,174

2,039

6.6
 %
 
975

954

2.2
 %
 
1,199

1,085

10.5
 %
 
 
55.2%
 
98.4%
97.6%
 
3,202

3,027

Miami
 
5
2,471

2,460

 
16,001

15,018

6.5
 %
 
4,949

4,703

5.2
 %
 
11,052

10,315

7.1
 %
 
 
69.1%
 
97.2%
97.6%
 
2,231

2,085

Philadelphia
 
4
2,042

1,963

 
8,570

8,314

3.1
 %
 
3,355

3,356

 %
 
5,215

4,958

5.2
 %
 
 
60.9%
 
96.0%
96.2%
 
1,515

1,467

Phoenix
 
2
812

812

 
2,517

2,451

2.7
 %
 
892

852

4.7
 %
 
1,625

1,599

1.6
 %
 
 
64.6%
 
94.5%
92.2%
 
1,094

1,091

Seattle
 
1
104

104

 
521

483

7.9
 %
 
206

218

(5.5
)%
 
315

265

18.9
 %
 
 
60.5%
 
98.6%
97.5%
 
1,693

1,587

Suburban New York - New Jersey
 
2
1,162

1,162

 
5,292

5,005

5.7
 %
 
1,731

1,756

(1.4
)%
 
3,561

3,249

9.6
 %
 
 
67.3%
 
96.9%
95.7%
 
1,567

1,500

Washington - No. Va - MD
 
14
6,547

6,519

 
28,616

28,389

0.8
 %
 
9,526

8,951

6.4
 %
 
19,090

19,438

(1.8
)%
 
 
66.7%
 
95.6%
95.4%
 
1,530

1,521

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
95
30,996

30,174

 
150,365

143,690

4.6
 %
 
49,032

47,775

2.6
 %
 
101,333

95,915

5.6
 %
 
 
67.4%
 
96.0%
95.8%
 
1,730

1,657

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
4
797

797

 
3,146

3,185

(1.2
)%
 
1,225

1,167

5.0
 %
 
1,921

2,018

(4.8
)%
 
 
61.1%
 
92.5%
95.4%
 
1,422

1,396

Nashville
 
3
764

764

 
2,868

2,652

8.1
 %
 
977

929

5.2
 %
 
1,891

1,723

9.8
 %
 
 
65.9%
 
96.0%
96.2%
 
1,304

1,203

Norfolk - Richmond
 
5
1,487

1,408

 
4,554

4,481

1.6
 %
 
1,506

1,438

4.7
 %
 
3,048

3,043

0.2
 %
 
 
66.9%
 
95.5%
94.4%
 
1,129

1,124

Other Markets
 
5
3,055

3,055

 
11,125

10,753

3.5
 %
 
4,548

4,370

4.1
 %
 
6,577

6,383

3.0
 %
 
 
59.1%
 
95.5%
96.6%
 
1,271

1,215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Markets
 
17
6,103

6,024

 
21,693

21,071

3.0
 %
 
8,256

7,904

4.5
 %
 
13,437

13,167

2.1
 %
 
 
61.9%
 
95.2%
95.8%
 
1,261

1,216

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
112
37,099

36,198

 
$
172,058

$
164,761

4.4
 %
 
$
57,288

$
55,679

2.9
 %
 
$
114,770

$
109,082

5.2
 %
 
 
66.7%
 
95.9%
95.8%
 
$
1,652

$
1,584



 
16



Supplemental Schedule 6(b)
 
Conventional Same Store Operating Results
First Quarter 2015 Compared to Fourth Quarter 2014
(in thousands, except community, home and per home data) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
Expenses
 
Net Operating Income
 
 
Operating
Margin
 
Average Daily
Occupancy
During Period
 
Average
Revenue per
Effective Apartment Home
 
 
Apartment Communities
Apartment Homes
Effective Apartment Homes
 
1Q
2015
4Q
2014
Growth
 
1Q
2015
4Q
2014
Growth
 
1Q
2015
4Q
2014
Growth
 
 
1Q
2015
 
1Q
2015
4Q
2014
 
1Q
2015
4Q
2014
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
12
3,552

2,901

 
$
21,118

$
20,788

1.6
 %
 
$
5,755

$
5,354

7.5
 %
 
$
15,363

$
15,434

(0.5
)%
 
 
72.7%
 
95.9%
95.9%
 
$
2,530

$
2,491

Orange County
 
1
770

770

 
4,956

4,959

(0.1
)%
 
1,341

1,218

10.1
 %
 
3,615

3,741

(3.4
)%
 
 
72.9%
 
95.1%
97.1%
 
2,255

2,211

San Diego
 
6
2,032

2,032

 
9,603

9,497

1.1
 %
 
2,610

2,249

16.1
 %
 
6,993

7,248

(3.5
)%
 
 
72.8%
 
96.0%
96.2%
 
1,641

1,619

Southern CA Total
 
19
6,354

5,703

 
35,677

35,244

1.2
 %
 
9,706

8,821

10.0
 %
 
25,971

26,423

(1.7
)%
 
 
72.8%
 
95.8%
96.2%
 
2,176

2,142

East Bay
 
1
246

246

 
1,668

1,623

2.8
 %
 
526

478

10.0
 %
 
1,142

1,145

(0.3
)%
 
 
68.5%
 
95.9%
97.5%
 
2,357

2,256

San Jose
 
1
224

224

 
1,336

1,333

0.2
 %
 
422

397

6.3
 %
 
914

936

(2.4
)%
 
 
68.4%
 
94.7%
94.3%
 
2,099

2,104

San Francisco
 
5
774

774

 
5,448

5,377

1.3
 %
 
1,464

1,308

11.9
 %
 
3,984

4,069

(2.1
)%
 
 
73.1%
 
96.5%
97.2%
 
2,431

2,382

Northern CA Total
 
7
1,244

1,244

 
8,452

8,333

1.4
 %
 
2,412

2,183

10.5
 %
 
6,040

6,150

(1.8
)%
 
 
71.5%
 
96.1%
96.7%
 
2,358

2,308

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
5
1,295

1,281

 
4,469

4,447

0.5
 %
 
1,648

1,580

4.3
 %
 
2,821

2,867

(1.6
)%
 
 
63.1%
 
93.7%
94.0%
 
1,240

1,230

Boston
 
12
4,173

4,173

 
17,649

17,321

1.9
 %
 
6,834

5,997

14.0
 %
 
10,815

11,324

(4.5
)%
 
 
61.3%
 
96.7%
96.0%
 
1,458

1,441

Chicago
 
10
3,245

3,245

 
14,980

14,844

0.9
 %
 
5,313

4,936

7.6
 %
 
9,667

9,908

(2.4
)%
 
 
64.5%
 
96.4%
96.1%
 
1,597

1,587

Denver
 
6
1,317

1,278

 
5,447

5,350

1.8
 %
 
1,485

1,400

6.1
 %
 
3,962

3,950

0.3
 %
 
 
72.7%
 
95.4%
95.9%
 
1,488

1,455

Manhattan
 
8
230

230

 
2,174

2,131

2.0
 %
 
975

926

5.3
 %
 
1,199

1,205

(0.5
)%
 
 
55.2%
 
98.4%
97.3%
 
3,202

3,175

Miami
 
5
2,471

2,460

 
16,001

15,764

1.5
 %
 
4,949

4,690

5.5
 %
 
11,052

11,074

(0.2
)%
 
 
69.1%
 
97.2%
96.8%
 
2,231

2,207

Philadelphia
 
4
2,042

1,963

 
8,570

8,420

1.8
 %
 
3,355

2,799

19.9
 %
 
5,215

5,621

(7.2
)%
 
 
60.9%
 
96.0%
96.8%
 
1,515

1,477

Phoenix
 
2
812

812

 
2,517

2,535

(0.7
)%
 
892

823

8.4
 %
 
1,625

1,712

(5.1
)%
 
 
64.6%
 
94.5%
96.0%
 
1,094

1,084

Seattle
 
1
104

104

 
521

504

3.4
 %
 
206

230

(10.4
)%
 
315

274

15.0
 %
 
 
60.5%
 
98.6%
93.5%
 
1,693

1,728

Suburban New York - New Jersey
 
2
1,162

1,162

 
5,292

5,169

2.4
 %
 
1,731

1,694

2.2
 %
 
3,561

3,475

2.5
 %
 
 
67.3%
 
96.9%
95.4%
 
1,567

1,555

Washington - No. Va - MD
 
14
6,547

6,519

 
28,616

28,036

2.1
 %
 
9,526

8,613

10.6
 %
 
19,090

19,423

(1.7
)%
 
 
66.7%
 
95.6%
94.9%
 
1,530

1,511

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
95
30,996

30,174

 
150,365

148,098

1.5
 %
 
49,032

44,692

9.7
 %
 
101,333

103,406

(2.0
)%
 
 
67.4%
 
96.0%
95.8%
 
1,730

1,707

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
4
797

797

 
3,146

3,047

3.2
 %
 
1,225

1,063

15.2
 %
 
1,921

1,984

(3.2
)%
 
 
61.1%
 
92.5%
92.7%
 
1,422

1,374

Nashville
 
3
764

764

 
2,868

2,861

0.2
 %
 
977

903

8.2
 %
 
1,891

1,958

(3.4
)%
 
 
65.9%
 
96.0%
94.5%
 
1,304

1,320

Norfolk - Richmond
 
5
1,487

1,408

 
4,554

4,513

0.9
 %
 
1,506

1,473

2.2
 %
 
3,048

3,040

0.3
 %
 
 
66.9%
 
95.5%
95.4%
 
1,129

1,120

Other Markets
 
5
3,055

3,055

 
11,125

10,633

4.6
 %
 
4,548

4,059

12.0
 %
 
6,577

6,574

 %
 
 
59.1%
 
95.5%
94.7%
 
1,271

1,225

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Markets
 
17
6,103

6,024

 
21,693

21,054

3.0
 %
 
8,256

7,498

10.1
 %
 
13,437

13,556

(0.9
)%
 
 
61.9%
 
95.2%
94.6%
 
1,261

1,232

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
112
37,099

36,198

 
$
172,058

$
169,152

1.7
 %
 
$
57,288

$
52,190

9.8
 %
 
$
114,770

$
116,962

(1.9
)%
 
 
66.7%
 
95.9%
95.6%
 
$
1,652

$
1,629



 
17



Supplemental Schedule 6(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Same Store Operating Expense Detail
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarterly Comparison
 
 
 
 
 
 
 
 
 
 
1Q 2015
% of Total
 
1Q 2014
$ Change
% Change
Real estate taxes
 
$
17,043

29.7
%
 
$
16,236

$
807

5.0
 %
Onsite payroll
 
10,369

18.1
%
 
10,245

124

1.2
 %
Utilities
 
12,688

22.1
%
 
12,333

355

2.9
 %
Repairs and maintenance
 
7,338

12.8
%
 
6,718

620

9.2
 %
Software, technology and other
 
3,681

6.4
%
 
3,737

(56
)
(1.5
)%
Insurance
 
2,628

4.6
%
 
2,719

(91
)
(3.3
)%
Marketing
 
1,849

3.2
%
 
2,206

(357
)
(16.2
)%
Expensed turnover costs
 
1,692

3.1
%
 
1,485

207

13.9
 %
Total
 
$
57,288

100.0
%
 
$
55,679

$
1,609

2.9
 %
 
 
 
 
 
 
 
 
Sequential Comparison
 
 
 
 
 
 
 
 
 
 
1Q 2015
% of Total
 
4Q 2014
$ Change
% Change
Real estate taxes
 
$
17,043

29.7
%
 
$
16,299

$
744

4.6
 %
Onsite payroll
 
10,369

18.1
%
 
9,782

587

6.0
 %
Utilities
 
12,688

22.1
%
 
10,500

2,188

20.8
 %
Repairs and maintenance
 
7,338

12.8
%
 
6,391

947

14.8
 %
Software, technology and other
 
3,681

6.4
%
 
3,547

134

3.8
 %
Insurance
 
2,628

4.6
%
 
2,072

556

26.8
 %
Marketing
 
1,849

3.2
%
 
1,591

258

16.2
 %
Expensed turnover costs
 
1,692

3.1
%
 
2,008

(316
)
(15.7
)%
Total
 
$
57,288

100.0
%
 
$
52,190

$
5,098

9.8
 %
 
 
 
 
 
 
 
 








18



Supplemental Schedule 7(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conventional Portfolio Data by Market
First Quarter 2015 Compared to First Quarter 2014
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended March 31, 2015
 
Quarter Ended March 31, 2014
 
 
Apartment Communities
 
Apartment Homes
 
Effective
Apartment Homes
 
% Aimco NOI
 
Average
Revenue 
per Effective
Apartment Home
 
Apartment Communities
 
Apartment Homes
 
Effective
Apartment Homes
 
% Aimco NOI
 
Average
Revenue 
per Effective
Apartment Home
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
13

 
4,319

 
3,668

 
14.3
%
 
$
2,540

 
13

 
4,248

 
3,597

 
11.4
%
 
$
2,369

Orange County
 
2

 
966

 
966

 
3.1
%
 
2,040

 
4

 
1,213

 
1,213

 
3.5
%
 
1,843

San Diego
 
12

 
2,430

 
2,360

 
5.8
%
 
1,586

 
12

 
2,430

 
2,360

 
5.6
%
 
1,514

Southern CA Total
 
27

 
7,715

 
6,994

 
23.2
%
 
2,153

 
29

 
7,891

 
7,170

 
20.5
%
 
1,975

East Bay
 
2

 
413

 
413

 
1.2
%
 
1,930

 
2

 
413

 
413

 
1.1
%
 
1,712

San Jose
 
2

 
548

 
548

 
1.6
%
 
2,269

 
1

 
224

 
224

 
0.6
%
 
1,993

San Francisco
 
7

 
1,208

 
1,208

 
4.7
%
 
2,582

 
7

 
1,208

 
1,208

 
3.1
%
 
2,244

Northern CA Total
 
11

 
2,169

 
2,169

 
7.5
%
 
2,374

 
10

 
1,845

 
1,845

 
4.8
%
 
2,066

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
8

 
1,497

 
1,483

 
2.5
%
 
1,305

 
6

 
1,325

 
1,311

 
2.1
%
 
1,185

Boston
 
12

 
4,173

 
4,173

 
8.2
%
 
1,458

 
12

 
4,173

 
4,173

 
7.9
%
 
1,400

Chicago
 
10

 
3,245

 
3,245

 
7.3
%
 
1,597

 
10

 
3,245

 
3,245

 
7.0
%
 
1,554

Denver
 
8

 
2,057

 
2,018

 
4.4
%
 
1,420

 
7

 
1,613

 
1,540

 
3.2
%
 
1,333

Manhattan
 
17

 
775

 
775

 
2.9
%
 
3,328

 
23

 
999

 
999

 
2.7
%
 
2,851

Miami
 
5

 
2,540

 
2,529

 
8.4
%
 
2,231

 
5

 
2,512

 
2,501

 
7.9
%
 
2,084

Philadelphia
 
6

 
3,532

 
3,453

 
6.5
%
 
1,664

 
7

 
3,888

 
3,809

 
7.5
%
 
1,555

Phoenix
 
2

 
812

 
812

 
1.2
%
 
1,094

 
5

 
1,374

 
1,230

 
1.7
%
 
1,016

Seattle
 
2

 
239

 
239

 
0.6
%
 
1,936

 
2

 
239

 
239

 
0.4
%
 
1,767

Suburban New York - New Jersey
 
2

 
1,162

 
1,162

 
2.7
%
 
1,567

 
2

 
1,162

 
1,162

 
2.5
%
 
1,499

Washington - No. Va - MD
 
14

 
6,547

 
6,519

 
14.4
%
 
1,530

 
14

 
6,547

 
6,519

 
14.9
%
 
1,520

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
124

 
36,463

 
35,571

 
89.8
%
 
1,780

 
132

 
36,813

 
35,743

 
83.1
%
 
1,664

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
4

 
797

 
797

 
1.5
%
 
1,422

 
5

 
1,180

 
1,066

 
2.0
%
 
1,355

Nashville
 
3

 
764

 
764

 
1.4
%
 
1,304

 
4

 
1,114

 
1,114

 
1.7
%
 
1,130

Norfolk - Richmond
 
5

 
1,487

 
1,408

 
2.3
%
 
1,129

 
6

 
1,643

 
1,564

 
2.5
%
 
1,109

Other Markets
 
5

 
3,055

 
3,055

 
5.0
%
 
1,271

 
14

 
8,564

 
8,501

 
10.7
%
 
990

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Markets
 
17

 
6,103

 
6,024

 
10.2
%
 
1,261

 
29

 
12,501

 
12,245

 
16.9
%
 
1,050

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
141

 
42,566

 
41,595

 
100.0
%
 
$
1,704

 
161

 
49,314

 
47,988

 
100.0
%
 
$
1,505




 
19



Supplemental Schedule 7(b)
 
 
 
Conventional Portfolio Data by Market
 
Fourth Quarter 2014 Market Information
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aimco portfolio strategy seeks predictable rent growth from a portfolio of "A," "B" and "C+" quality market-rate apartment communities, averaging
"B/B+" in quality, and diversified among the largest coastal and job growth markets in the U.S., as measured by total apartment value. Aimco
measures asset quality based on rents compared to local market average rents as reported by REIS, a third-party provider of commercial real
estate performance information and analysis. Aimco defines asset quality as follows: "A" quality assets are those with rents greater than 125% of
local market average; "B" quality assets are those with rents 90% to 125% of local market average; "C+" quality assets are those with rents lower than 90% of the local market average, and greater than $1,100 per month; and "C" quality assets are those with rents lower than 90% of local market average, and less than $1,100 per month. The schedule below illustrates Aimco’s Conventional Apartment Community portfolio quality based on 4Q 2014 data, the most recent period for which third-party data is available. The portfolio data has been adjusted to remove apartment communities sold through 1Q 2015.

The average age of Aimco's portfolio as of March 31, 2015, adjusted for its sizable investment in redevelopment, is approximately 31 years. See the Glossary for further information.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended December 31, 2014
 
 
 
Apartment Communities
 
Apartment Homes
 
Effective
Apartment Homes
 
% Aimco 
NOI
 
Average
Rent per
Effective Apartment Home [1]
 
Market
Rent [2]
 
Percentage
of Market
Rent
Average
 
Average
Age of Apartment Communities
Target Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Los Angeles
 
13

 
4,319

 
3,668

 
13.9
%
 
$
2,321

 
$
1,494

 
155.4
%
 
13

Orange County
 
2

 
966

 
966

 
3.2
%
 
1,867

 
1,648

 
113.3
%
 
10

San Diego
 
12

 
2,430

 
2,360

 
6.0
%
 
1,421

 
1,460

 
97.3
%
 
27

Southern CA Total
 
27

 
7,715

 
6,994

 
23.1
%
 
1,953

 
1,505

 
129.8
%
 
17

East Bay
 
2

 
413

 
413

 
1.2
%
 
1,673

 
1,559

 
107.3
%
 
35

San Jose
 
2

 
548

 
548

 
0.8
%
 
2,060

 
1,879

 
109.6
%
 
17

San Francisco
 
7

 
1,208

 
1,208

 
4.5
%
 
2,279

 
2,237

 
101.9
%
 
24

Northern CA Total
 
11

 
2,169

 
2,169

 
6.5
%
 
2,103

 
2,012

 
104.5
%
 
24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
7

 
1,403

 
1,389

 
2.2
%
 
1,160

 
848

 
136.8
%
 
16

Boston
 
12

 
4,173

 
4,173

 
8.5
%
 
1,346

 
1,898

 
70.9
%
 
41

Chicago
 
10

 
3,245

 
3,245

 
7.5
%
 
1,385

 
1,117

 
124.0
%
 
20

Denver
 
8

 
2,057

 
2,018

 
4.1
%
 
1,243

 
986

 
126.1
%
 
21

Manhattan
 
17

 
775

 
775

 
3.2
%
 
3,206

 
3,223

 
99.5
%
 
109

Miami
 
5

 
2,530

 
2,519

 
8.3
%
 
1,936

 
1,196

 
161.9
%
 
25

Philadelphia
 
6

 
3,537

 
3,458

 
7.4
%
 
1,426

 
1,124

 
126.9
%
 
31

Phoenix
 
2

 
812

 
812

 
1.3
%
 
961

 
765

 
125.6
%
 
14

Seattle
 
2

 
239

 
239

 
0.5
%
 
1,687

 
1,210

 
139.4
%
 
12

Suburban New York - New Jersey
 
2

 
1,162

 
1,162

 
2.6
%
 
1,403

 
1,317

 
106.5
%
 
33

Washington - No. Va - MD
 
14

 
6,547

 
6,519

 
14.6
%
 
1,372

 
1,563

 
87.8
%
 
44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Target Markets
 
123

 
36,364

 
35,472

 
89.8
%
 
1,588

 
1,455

 
109.1
%
 
30

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baltimore
 
4

 
797

 
797

 
1.5
%
 
1,261

 
1,107

 
113.9
%
 
43

Nashville
 
3

 
764

 
764

 
1.5
%
 
1,120

 
832

 
134.6
%
 
22

Norfolk - Richmond
 
5

 
1,487

 
1,408

 
2.3
%
 
959

 
913

 
105.0
%
 
26

Other Markets
 
5

 
3,055

 
3,055

 
4.9
%
 
1,046

 
1,005

 
104.1
%
 
39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Markets
 
17

 
6,103

 
6,024

 
10.2
%
 
1,063

 
975

 
109.0
%
 
34

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
140

 
42,467

 
41,496

 
100.0
%
 
$
1,512

 
$
1,384

 
109.2
%
 
31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] Represents rents after concessions and vacancy loss, divided by the number of Effective Apartment Homes. Does not include other rental income.
[2] 4Q 2014 effective rents per REIS.
 
 
 
 
 
 
 
 
 
 
 
 
 
 


20



Supplemental Schedule 8
 
Apartment Community Disposition and Acquisition Activity
(dollars in millions, except average revenue per home) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2015 Dispositions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Apartment Communities
 
Number
of
Homes
 
Weighted
Average
Ownership
 
Gross
Proceeds
 
NOI
Cap
Rate [1]
 
Free Cash Flow Cap Rate [2]
 
Property
Debt
 
Net Sales
Proceeds  [3]
 
Aimco
Gross
Proceeds
 
Aimco
Net
Proceeds
 
Average
Revenue
per Home
Conventional
 
4

 
926

 
87%
 
$
143.8

 
5.5
%
 
4.7
%
 
$
56.1

 
$
72.1

 
$
129.8

 
$
71.3

 
$
1,277

Affordable
 
2

 
174

 
2%
 
4.0

 
%
[4]
%
[4]

 
3.7

 
2.0

 
2.0

 
465

Total Dispositions
 
6

 
1,100

 
74%
 
$
147.8

 
5.5
%
 
4.7
%
 
$
56.1

 
$
75.8

 
$
131.8

 
$
73.3

 
$
1,274

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] NOI Cap Rate is calculated based on Aimco's share of the trailing twelve month prior to sale proportionate property NOI, less a 3.0% management fee, divided by Aimco gross proceeds, less prepayment
       penalties associated with the related property debt, if applicable. Conventional Apartment Communities sold during 2015 are primarily outside of Aimco's target markets or in less desirable locations
       within Aimco's target markets, and had average revenues per apartment home approximately 25% below Aimco's retained portfolio. Accordingly, the NOI capitalization rates for Conventional Apartment
       Communities sold during 2015 are not necessarily representative of those for Aimco's retained portfolio.
[2] Free Cash Flow Cap Rate represents the NOI cap rate, adjusted for assumed Capital Replacements spending of $1,200 per apartment home.
[3] Net Sales Proceeds are after repayment of existing debt, net working capital settlements, payment of transaction costs and debt prepayment penalties, if applicable.
[4] The Affordable apartment communities sold had negative NOI and Free Cash Flow Cap Rates based on operating losses, and thus these amounts have been omitted.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2015 Acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
On March 10, 2015, Aimco acquired for $38.3 million Mezzo Apartment Homes, a 94-apartment home community located in Atlanta, Georgia, between Midtown and Buckhead. Built in 2008, this 19-story building includes 2,800 square feet of retail space. Stabilized revenues per apartment home are expected to average $3,600, making this an "A" quality asset for Aimco.


 
21



Supplemental Schedule 9
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Additions
 
 
 
 
 
 
(in thousands, except per apartment home data) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aimco classifies capital additions as Capital Replacements (“CR”), Capital Improvements (“CI”), Property Upgrades, Redevelopment, Development or Casualty. Recurring capital additions are apportioned between CR and CI based on the useful life of the item under consideration and the period over which Aimco has owned the item. Under this method of classification, CR represents the portion of the item consumed during Aimco’s ownership of the item, while CI represents the portion of the item that was consumed prior to Aimco’s ownership. See the Glossary for further descriptions.
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2015
 
 
Conventional
 
Affordable
 
Total
Capital Additions
 
 
 
 
 
 
Capital Replacements
 
 
 
 
 
 
Buildings and grounds
 
$
4,191

 
$
776

 
$
4,967

Turnover capital additions
 
1,765

 
224

 
1,989

Capitalized site payroll and indirect costs
 
783

 
20

 
803

Capital Replacements
 
6,739

 
1,020

 
7,759

Capital Improvements
 
2,690

 
154

 
2,844

Property Upgrades
 
9,203

 
52

 
9,255

Redevelopment
 
23,475

 

 
23,475

Development
 
17,838

 

 
17,838

Casualty
 
1,329

 
1,314

 
2,643

Total Capital Additions [1]
 
$
61,274

 
$
2,540

 
$
63,814

 
 
 
 
 
 
 
Total apartment homes
 
42,566

 
9,122

 
51,688

Capital Replacements per apartment home
 
$
158

 
$
112

 
$
150

[1] Total Capital Additions reported above exclude $0.1 million, for the three months ended March 31, 2015, related to consolidated apartment communities sold or classified as held for sale at the end of the period. For the three months ended March 31, 2015, Total Capital Additions include $2.5 million of capitalized interest costs.
















22



Supplemental Schedule 10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Redevelopment and Development Activity
 
 
 
 
 
 
(Page 1 of 4)
 
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
 
 
(dollars in millions, except per apartment home data) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule
 
Incremental Monthly Revenue per Apartment Home
 
 
 
 
 
Total Number
of Apartment Homes at Completion
Estimated Net 
Investment
Inception-to-Date Net
Investment
Construction
Start
Initial
Occupancy
Construction
Complete
Stabilized Occupancy
 
Rent
Other Income
Total
 
Incremental Commercial Revenue
 
Current Residential Occupancy
Redevelopment of Operating Communities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2900 on First Apartments
135

$
15.2

$
12.1

1Q 2014
1Q 2014
2Q 2015
1Q 2015
 
$
520

$
45

$
565

 
$
0.1

 
89
%
Ocean House on Prospect
53

14.8

4.8

4Q 2014
3Q 2015
4Q 2015
1Q 2016
 
930

80

1,010

 

 
n/a

Park Towne
954

60.0

11.9

Multiple
3Q 2015
3Q 2016
2Q 2016
 
225

80

305

 
0.1

 
80
%
The Sterling
536

36.0

26.4

Multiple
Multiple
3Q 2015
4Q 2015
 
270

20

290

 
0.5

 
89
%
Subtotal
1,678

$
126.0

$55.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule
 
Monthly Revenue per Apartment Home
 
 
 
 
 
Total Number
of Apartment Homes at Completion
Estimated Net 
Investment
Inception-to-Date Net
Investment
Construction
Start
Initial
Occupancy
Construction
Complete
Stabilized Occupancy
 
Rent
Other Income
Total
 
Commercial Revenue
 
Current Residential Occupancy
New Development
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Canal Street
310

$
190.0

$
80.7

4Q 2013
1Q 2016
2Q 2016
2Q 2017
 
$
3,450

$
415

$
3,865

 
$
1.1

 
n/a

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Completed This Quarter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lincoln Place
795

$
360.0

$
359.0

Multiple
Multiple
1Q 2015
2Q 2015
 
$
2,800

$
150

$
2,950

 

 
83
%
The Preserve at Marin
126

124.0

123.4

4Q 2012
1Q 2014
1Q 2015
2Q 2015
 
5,350

155

5,505

 

 
64
%
Subtotal
921

$
484.0

$
482.4

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
2,909

$
800.0

$
618.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Projected NOI as a % of Estimated Net Investment (Unescalated Rents)
5.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The investment in Lincoln Place is funded in part by a $190.7 million non-recourse property loan, of which $7.8 million was available to draw at March 31, 2015.
The investment in One Canal Street is funded in part by a $114.0 million non-recourse property loan, of which $75.6 million was available to draw at March 31, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See the following pages for Terms and Definitions and a Summary of Redevelopment Projects.


 
23



Supplemental Schedule 10 (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Redevelopment and Development Activity
 
 
 
 
 
 
 
(Page 2 of 4)
 
 
 
 
Terms and Definitions
 
 
 
Estimated Net Investment - represents total estimated investment, net of tax and other credits earned by Aimco as a direct result of its redevelopment or development of the community. Total estimated investment includes all capitalized costs projected to be incurred to redevelop or develop the respective community, as determined in accordance with GAAP. Where possible, Aimco makes use of tax and other available credits to reduce its invested capital, thereby maximizing investment returns. Aimco seeks historic tax and other credits related to several other communities in its redevelopment pipeline, which, if successful, Aimco will include in the net estimated investment.
Stabilized Occupancy - period in which Aimco expects to achieve targeted physical occupancy, generally greater than 90%.
Incremental Monthly Revenue per Apartment Home - represents the sum of the amounts by which rents and other rental income per apartment home are projected to increase compared to pre-redevelopment amounts. Projections are based on management's judgment and take into consideration factors including but not limited to: current rent and other rental income expectations; current market rents; and rental achievement to date. Aimco expects to update its projections at least annually to reflect changes in market rents and rental rate achievement.
Commercial Revenue - represents the projected annual revenue, or incremental revenue, contribution from commercial rents attributable to the redevelopment of commercial space.
Current Residential Occupancy - for previously vacant communities and new development, represents physical occupancy as of March 31, 2015. For operating communities, represents first quarter 2015 average daily occupancy.
Monthly Revenue per Apartment Home - represents the sum of projected rents and other rental income on a per-apartment home basis. Projections are based on management's judgment and take into consideration factors including but not limited to: current rent and other rental income expectations; current market rents; and rental achievement to date. Aimco expects to update these projections at least annually to reflect changes in market rents and rental rate achievement.
Weighted Average Projected NOI as a % of Estimated Net Investment (Unescalated Rents) - projected NOI takes into consideration the revenue information provided herein, as well as expectations around 1) operating costs associated with previously vacant communities and new development, and 2) net incremental changes in operating costs, if any, resulting from the redevelopment of operating communities.



 
24



Supplemental Schedule 10 (Continued)
 
 
 
Summary of Redevelopment Projects
(Page 3 of 4)
Community
Project Summary
2900 on First Apartments
Seattle, WA
Redevelopment includes the renovation of all apartment homes, new and/or enhanced amenities and other building interior and commercial space upgrades. All apartment home renovations have been completed and stabilized occupancy has been achieved. The fitness and amenity building will be complete by the end of May 2015.
Ocean House on Prospect
La Jolla, CA

During 2013, Aimco acquired for $29 million this 60-apartment home community with the intent of redeveloping the community at a future date. The redevelopment of Ocean House includes renovation of all apartment homes, common areas, exteriors and amenities. During construction, Aimco expects to combine some apartment homes so that the community, at completion, will include 53 apartment homes. In order to facilitate the extensive construction activity, Aimco de-leased the building in fourth quarter 2014. Construction is underway and on schedule.
Park Towne Place
Philadelphia, PA

In 2014, Aimco completed a multi-phase capital project at this community in anticipation of subsequent redevelopment, which is now underway. Aimco expects to redevelop Park Towne Place in several phases, the first of which includes renovating existing commercial space, upgrading common areas and amenities, and redeveloping one of the four residential towers. During construction, Aimco expects to combine some apartment homes in this 234-apartment home building so that the tower, at completion, will include 229 apartment homes. In order to facilitate the extensive construction activity, Aimco de-leased the tower in fourth quarter 2014. Construction is underway and on schedule.
Aimco’s net investment in the first phase of the redevelopment of Park Towne Place is projected to be $60 million, reflecting a gross investment of $71 million, reduced by $11 million of historic tax credits.
Depending on the success of this initial phase and other investment alternatives, Aimco may redevelop additional apartment homes at Park Towne Place. Should Aimco elect to redevelop the other three residential towers, its net investment, including the work described above, could be between $148 and $160 million, reflecting a gross investment of $180 to $195 million reduced by $32 to $35 million of historic tax credits.
The Sterling
Philadelphia, PA
This redevelopment includes significant renovation of existing commercial space, upgrading common areas, and the phased redevelopment of apartment homes.

During 2014, Aimco completed the redevelopment of the first 69 apartment homes as planned, at a cost consistent with underwriting and at rents in excess of Aimco's underwriting. Based on the success of this initial phase of apartment home redevelopment, in the fourth quarter 2014, Aimco approved a project to redevelop an additional 105 apartment homes for an additional investment of approximately $11 million. Aimco expects this phase of construction to be complete in third quarter 2015, with occupancy stabilized the following quarter.

Renovation of the common areas and commercial space is proceeding as planned and Aimco continues to expect construction to be complete in second quarter 2015 at a cost consistent with underwriting.

Depending on the success of this next phase and other investment alternatives, Aimco may continue to redevelop additional apartment homes at The Sterling. Should Aimco elect to redevelop all 536 apartment homes, the total investment, including the work described above, could be between $70 and $80 million over the next several years.


 
25



Supplemental Schedule 10 (Continued)
 
 
 
Summary of Redevelopment Projects
(Page 4 of 4)
Community
Project Summary
One Canal Street
Boston, MA
Aimco expects to invest approximately $190 million in the development of a 12-story building at One Canal Street in the historic Bulfinch Triangle neighborhood of Boston’s West End. Located near the Boston Garden, one block from North Station and adjacent to the historic North End, the site enjoys excellent access to public transit, the Government Center, Financial District, and Massachusetts General Hospital employment centers, as well as the dining, recreation, and shopping amenities of its urban core location. The building will include 310 apartment homes and 22,000 square feet of commercial space. Aimco has partnered with an experienced developer to construct the building, which Aimco will own and operate after its completion.
Lincoln Place
Venice, CA

Lincoln Place is comprised of 795 apartment homes situated on 35-acres one mile from Venice Beach. The scope of this redevelopment included:
Redevelopment of 49 residential buildings, with 696 apartment homes, consistent with standards required by the community’s historic designation.
Construction of 11 new residential buildings with 99 apartment homes on existing vacant land.
Construction of a 5,000 square foot leasing center and a 6,100 square foot fitness center and pool area.

This redevelopment was completed in first quarter 2015.
Aimco’s inception to date investment consists of a gross investment of $386 million, offset by $26 million of historic tax and other credits associated with the redevelopment. Rents achieved to date are in excess of Aimco's underwriting.
The Preserve at Marin
Corte Madera, CA

Aimco acquired The Preserve at Marin as a vacant community in 2011, with the intent of redeveloping the 126-apartment home community.

This redevelopment was completed in first quarter 2015 and included comprehensive interior and exterior redevelopment of all seven three-story buildings, redesign of all apartment homes to feature large bay windows, modern kitchens, and upscale finishes, as well as construction of a new resident clubhouse, which includes a fitness center, business center, saltwater pool, wine bar and outdoor fire pits. Rents achieved to date are in excess of Aimco's underwriting.




 
26



GLOSSARY AND RECONCILIATIONS OF NON-GAAP FINANCIAL AND OPERATING MEASURES

This Earnings Release and Supplemental Information include certain financial and operating measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. Aimco's definitions and calculations of these non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These non-GAAP financial and operating measures should not be considered an alternative to GAAP net income or any other GAAP measurement of performance and should not be considered an alternative measure of liquidity.

ACQUISITION APARTMENT COMMUNITIES: Apartment Communities acquired since January 1, 2014.
AFFORDABLE APARTMENT COMMUNITIES: Affordable Apartment Communities benefit from governmental programs intended to provide housing to people with low or moderate incomes. These programs, which are usually administered by the U.S. Department of Housing and Urban Development (HUD) or state housing finance agencies, typically provide mortgage insurance, favorable financing terms, tax credits, or rental assistance payments to the owners of the communities. Under these programs, rent adjustments are made in accordance with property-specific contracts between Aimco and HUD, with rent increases generally based on an adjustment factor set by HUD annually.
AIMCO OP: AIMCO Properties, L.P., a Delaware limited partnership, is the operating partnership in Aimco's UPREIT structure. Aimco owns approximately 95% of the common partnership units of the Aimco OP.
AIMCO PROPORTIONATE FINANCIAL INFORMATION: Non-GAAP measures representing Aimco's share of financial information discussed in this Earnings Release and Supplemental Information. Aimco's proportionate share of financial information includes Aimco's share of unconsolidated real estate partnerships and excludes noncontrolling interests in consolidated real estate partnerships. Proportionate reporting benefits the users of Aimco's financial information by providing the amount of revenues, expenses, assets and liabilities attributable only to Aimco stockholders. Aimco also refers to this measure as "Aimco's Share" of financial information. See Supplemental Schedules 2, 4 and 5 for reconciliation of Aimco's proportionate share of financial results to Aimco's consolidated financial statements.
AVERAGE AGE OF APARTMENT COMMUNITIES: Average Age of Apartment Communities is calculated by Aimco based on the year the community was originally built, adjusted for redevelopment and/or other major capital improvements that effectively reduce the age of the community. Such investments include construction of new buildings and/or amenities, replacement or modernization of mechanical, plumbing and electrical systems, and other investments that are consequential in nature.
CAPITAL ADDITIONS DEFINITIONS
CAPITAL IMPROVEMENTS (CI): CI includes all non-Redevelopment capital additions that are made to enhance the value, profitability or useful life of an asset from its original purchase condition.
CAPITAL REPLACEMENTS (CR): Unlike CI, CR does not increase the useful life of an asset from its original purchase condition. CR represents the portion of capital additions that are deemed to replace the consumed portion of acquired capital assets. CR is deducted in the calculation of AFFO.
CASUALTY CAPITAL ADDITIONS: Casualty capital additions represent capitalized costs incurred in connection with the restoration of an asset after a casualty event such as a hurricane, tornado or flood.
PROPERTY UPGRADES: Property Upgrades may include kitchen and bath remodeling; energy conservation projects; and investments in longer-lived materials designed to reduce turnover costs, such as simulated wood flooring and granite countertops. Property Upgrades differ from Redevelopment Additions in that they are generally lesser in scope and do not significantly disrupt property operations.

27



REDEVELOPMENT ADDITIONS: Redevelopment additions represent capital additions intended to enhance the value of the apartment community through the ability to generate higher average rental rates. Redevelopment additions may include costs related to entitlement, which enhance the value of a community through increased density, and costs related to renovation of exteriors, common areas or apartment homes.
CONVENTIONAL APARTMENT COMMUNITIES: Conventional Apartment Communities represent Aimco's portfolio of market-rate apartment communities. Aimco's portfolio strategy seeks predictable rent growth from a portfolio of "A", "B" and "C+" quality Conventional Apartment Communities, averaging "B/B+" in quality, and diversified among the largest coastal and job growth markets in the United States, as measured by apartment value.
DEBT RATIO DEFINITIONS
ADJUSTED INTEREST EXPENSE: Adjusted Interest Expense represents Aimco's proportionate share of interest expense less (i) prepayment penalties and amortization of deferred financing costs and (ii) the amount of interest income recognized by Aimco related to its investment in the subordinated tranches in a securitization trust holding primarily Aimco property debt.
DEBT TO EBITDA RATIO: The ratio of (a) Aimco's proportionate share of debt net of Aimco's proportionate share of cash and restricted cash and Aimco's investment in the subordinated tranches in a securitization trust holding primarily Aimco property debt to (b) Proportionate EBITDA.
DEBT AND PREFERRED EQUITY TO EBITDA RATIO: The ratio of (a) Aimco's proportionate share of debt net of Aimco's proportionate share of cash and restricted cash and Aimco's investment in the subordinated tranches in a securitization trust holding primarily Aimco property debt, plus Aimco's preferred stock and the preferred units of the Aimco OP to (b) Proportionate EBITDA.
DEBT SERVICE COVERAGE RATIO: As defined in Aimco's credit agreement, the ratio of (a) Earnings Before Interest, Taxes, Depreciation and Amortization, reduced by certain capital expenditure reserves (which Aimco refers to as "Compliance EBITDA"), to (b) debt service, which represents the sum of (i) Aimco's proportionate share of interest expense (excluding prepayment penalties and amortization of deferred financing costs) and (ii) debt amortization, for the four fiscal quarters preceding the date of calculation.
EBITDA COVERAGE OF INTEREST RATIO: The ratio of (a) Proportionate EBITDA to (b) Adjusted Interest Expense.
EBITDA COVERAGE OF INTEREST AND PREFERRED DIVIDENDS RATIO: The ratio of (a) Proportionate EBITDA to (b) the sum of Adjusted Interest Expense and Preferred Dividends.
FIXED CHARGE COVERAGE RATIO: As defined by Aimco's credit agreement, the ratio of (a) Compliance EBITDA to (b) fixed charges, which represent the sum of (i) Aimco's proportionate share of interest expense (excluding prepayment penalties and amortization of deferred financing costs), (ii) debt amortization and (iii) Preferred Dividends, for the four fiscal quarters preceding the date of calculation.
PREFERRED DIVIDENDS: Preferred dividends include dividends paid with respect to Aimco's Preferred Stock and the Aimco OP Preferred Partnership Units.
PROPORTIONATE EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (PROPORTIONATE EBITDA): Proportionate EBITDA is computed by adding to Aimco's Pro forma FFO (a) Aimco's proportionate share of interest expense, taxes, depreciation and amortization related to non-real estate assets, non-cash stock compensation expense and (b) Preferred Dividends.
DEFFERED TAX CREDIT INCOME: Deferred income includes $32.9 million of unamortized cash contributions received by Aimco in exchange for the allocation of tax credits and related tax benefits to investors in tax credit arrangements. These cash contributions are deferred upon receipt and amortized into earnings in future periods as Aimco delivers the tax credits and related benefits to the investors. Under existing tax credit agreements, Aimco will

28



receive additional cash contributions of $25.6 million, of which $5.3 million will be received during the remainder of 2015, and, on average, $5.0 million will be received each year from 2016 through 2019.
 
 
 
 
 
March 31, 2015
 
Deferred tax credit income balance
 
$
32,897

 
Cash contributions to be received in the future
 
25,584

 
Total to be amortized
 
$
58,481

 
 
 
Revenue
 
Expense
 
Projected Income
 
2015 2Q - 4Q
 
$
17,818

 
$
(1,193
)
 
$
16,625

 
2016
 
18,236

 
(1,405
)
 
16,831

 
2017
 
14,375

 
(1,170
)
 
13,205

 
2018
 
6,879

 
(681
)
 
6,198

 
2019
 
4,255

 
(535
)
 
3,720

 
Thereafter
 
7,064

 
(5,162
)
 
1,902

 
Total
 
$
68,627

 
$
(10,146
)
 
$
58,481

EFFECTIVE APARTMENT HOMES: The number of actual apartment homes multiplied by Aimco's ownership interest in the apartment community as of the end of the current period. Effective Apartment Homes may be used to analyze Aimco's proportionate financial measures on a per-home basis.
FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance, which the National Association of Real Estate Investment Trusts (NAREIT) defines as net income, computed in accordance with GAAP, excluding gains from sales of, and impairment losses recognized with respect to, depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Aimco computes FFO for all periods presented in accordance with the guidance set forth by NAREIT.
In addition to FFO, Aimco uses PRO FORMA FUNDS FROM OPERATIONS (Pro forma FFO) and ADJUSTED FUNDS FROM OPERATIONS (AFFO) to measure performance. Pro forma FFO represents FFO as defined above, excluding preferred equity redemption related amounts (adjusted for noncontrolling interests). Preferred equity redemption related amounts (gains or losses) are items that periodically affect Aimco's operating results. Aimco excludes preferred equity redemption related amounts (gains or losses) from Pro forma FFO because such amounts are not representative of operating performance. AFFO represents Pro forma FFO reduced by Capital Replacements (also adjusted for noncontrolling interests).
FFO, Pro forma FFO and AFFO are helpful to investors in understanding Aimco's performance because they capture features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. There can be no assurance that Aimco's method for computing FFO, Pro forma FFO or AFFO is comparable with that of other real estate investment trusts.
MONEY-WEIGHTED AVERAGE INTEREST RATE: Money-Weighted Average Interest Rate represents the weighted average interest rate on Aimco’s fixed and floating rate property debt, which takes into account the timing of amortization and maturities. This rate is calculated by Aimco based on the unpaid principal balance as of March 31, 2015, and all contractual debt service payments associated with each of its fixed and floating rate property loans. The Money-Weighted Average Interest Rate can be compared to market interest rates to estimate the difference between the book value of Aimco’s fixed and floating rate property debt and the market value of such debt.
NEW LEASE AND RENEWAL RATES: Aimco measures changes in rental rates by comparing, on a lease-by-lease basis, the rate on a newly executed lease to the rate on the expiring lease for that same apartment. Newly executed leases are classified as either a new lease, where a vacant apartment is leased to a new customer, or a renewal of an existing lease.

29



OTHER AFFORDABLE APARTMENT COMMUNITIES: Affordable Apartment Communities that do not meet the Same Store Apartment Community definition.
OTHER CONVENTIONAL APARTMENT COMMUNITIES: Conventional Apartment Communities that do not meet the Same Store Apartment Community definition because they have significant rent control restrictions or have not reached and/or maintained a stabilized level of occupancy, often due to a casualty event. Results of operations of properties that are not multi-family, such as fitness centers, are included in the operating results of Other Conventional Apartment Communities.
OTHER EXPENSES, NET: Other expenses, net includes franchise taxes, risk management activities related to our unconsolidated partnerships, certain other corporate expenses and expenses specifically related to Aimco's administration of its real estate partnerships, for example, services such as audit, tax and legal.
PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property management revenues, primarily from affiliates; casualties; property management expenses; depreciation; or interest expense. NOI is helpful because it helps both investors and management to understand the operating performance of real estate excluding costs associated with decisions about acquisition pricing, overhead allocations and financing arrangements. NOI is considered by many in the real estate industry to be a useful measure for determining the value of real estate. Reconciliations of NOI as presented in this Earnings Release and Supplemental Information to Aimco's consolidated GAAP amounts are provided on the following pages.
Reconciliation of GAAP to Supplemental Schedule 6(a) Proportionate Conventional Same Store NOI Amounts
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2015
 
 
Consolidated
Amounts
 
Noncontrolling
Interests
 
Proportionate
Amount
 
Ownership
Adjustments
 
Proportionate
Property 
Amount
Conventional Same Store:
 
 
 
 
 
 
 
 
 
 
Rental and other property revenues
 
$
179,331

 
$
(6,976
)
 
$
172,355

 
$
(297
)
 
$
172,058

Property operating expenses
 
59,553

 
(2,362
)
 
57,191

 
97

 
57,288

Property NOI
 
$
119,778

 
$
(4,614
)
 
$
115,164

 
$
(394
)
 
$
114,770

 
 
Three Months Ended March 31, 2014
 
 
Consolidated
Amounts
 
Noncontrolling
Interests
 
Proportionate
Amount
 
Ownership
Adjustments
 
Proportionate
Property 
Amount
Conventional Same Store:
 
 
 
 
 
 
 
 
 
 
Rental and other property revenues
 
$
171,616

 
$
(6,691
)
 
$
164,925

 
$
(164
)
 
$
164,761

Property operating expenses
 
57,993

 
(2,386
)
 
55,607

 
72

 
55,679

Property NOI
 
$
113,623

 
$
(4,305
)
 
$
109,318

 
$
(236
)
 
$
109,082


Reconciliation of GAAP to Supplemental Schedule 6(b) Proportionate Conventional Same Store NOI Amounts
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31, 2014
 
 
Consolidated
Amounts
 
Noncontrolling
Interests
 
Proportionate
Amount
 
Ownership
Adjustments
 
Proportionate
Property 
Amount
Conventional Same Store:
 
 
 
 
 
 
 
 
 
 
Rental and other property revenues
 
$
176,709

 
$
(6,905
)
 
$
169,804

 
$
(652
)
 
169,152

Property operating expenses
 
54,310

 
(2,225
)
 
52,085

 
105

 
52,190

Property NOI
 
$
122,399

 
$
(4,680
)
 
$
117,719

 
$
(757
)
 
$
116,962

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

30



REDEVELOPMENT APARTMENT COMMUNITIES: Apartment communities where (a) a substantial number of available apartment homes have been vacated for major renovations or (b) renovations are complete but occupancy was not stabilized as of January 1, 2014.
SAME STORE APARTMENT COMMUNITIES: Same Store apartment communities are those that (a) are managed by Aimco, (b) have reached and maintained a stabilized level of occupancy as of January 1, 2014, and (c) are not expected to be sold within 12 months. Same Store apartment communities are classified as either Conventional or Affordable. Affordable Same Store apartment communities exclude those that are not subject to tax credit agreements, or have not reached and/or maintained a stabilized level of occupancy, often due to a casualty event.
SOLD AND HELD FOR SALE APARTMENT COMMUNITIES: Apartment communities either sold during the period or classified as held for sale at the end of the period. Results of operations and any gain or loss on sales of these apartment communities are included in continuing operations in Aimco's consolidated income statements. For purposes of highlighting results of operations related to Aimco's retained portfolio, results for Sold and Held For Sale Apartment Communities are excluded from Net Real Estate Operations and shown separately on a net basis in Aimco's Proportionate FFO presentation found in Supplemental Schedule 2.

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