APARTMENT INVESTMENT & MANAGEMENT CO - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - FORM 8-K - APARTMENT INVESTMENT & MANAGEMENT CO	c91548e8vk.htm

Exhibit 99.1

3rd Quarter 2009

The Palazzo East at Park La Brea Los Angeles, CA

Apartment Investment and Management Company (NYSE:AIV)
Announces Third Quarter 2009 Results

Denver, Colorado — October 30, 2009

Third Quarter 2009 Highlights

•

Funds From Operations (FFO, as defined in the Glossary) — FFO of $0.41 per share, before operating real estate impairments of $0.22 per share, was within the $0.36 to $0.42 per share guidance range.

•

Property Operations — During the third quarter, Aimco’s share of total conventional and affordable property net operating income was $145.1 million. Total conventional and affordable property net operating income, adjusted for property acquisitions and dispositions, was 1.2% lower than in the third quarter 2008.

•

Same Store Results (as defined in the Glossary) — When comparing third quarter 2009 to third quarter 2008, Same Store property net operating income declined 5.4%, within the guidance range of negative 5.0% to negative 6.0%. Same Store revenue declined 2.9% and expenses increased 1.1%. Average daily occupancy declined 20 basis points from 95.0% for third quarter 2008 to 94.8% for third quarter 2009, and increased 200 basis points from second quarter 2009.

•

Non-Same Store Results — Third quarter 2009 conventional redevelopment net operating income increased 16.4% compared to third quarter 2008 and affordable property operations, including affordable redevelopment operations, generated net operating income growth of 6.0% during the same period.

•

Capital Markets Activity

At the beginning of third quarter 2009, Aimco had $350 million of term debt outstanding, due first quarter 2011. During third quarter 2009, Aimco repaid $90 million of term debt with proceeds from property sales. An additional payment of $50 million was made after quarter’s end, reducing the balance to $210 million.

Aimco has focused on reducing refunding risk by accelerating refinancing of property loans maturing prior to 2012. At the beginning of third quarter 2009, Aimco’s share of property debt maturing during 2009 through 2011 was $221.3 million. During third quarter, through refinancing, repayment and property sales, Aimco reduced these maturities by $36.8 million. As of September 30, 2009, the balance of property debt maturing through 2011 totaled $184.5 million in nine loans. Of these loans, refunding risk has since been eliminated on all but four loans totaling $164.0 million which are expected to be refinanced at their maturity in 2011.

•

Property Sales and Asset Allocation — During third quarter 2009, Aimco sold 28 properties for $366.6 million, generating $125.0 million in net proceeds to Aimco, after distributions to limited partners, repayment of existing property debt and transaction costs. Year-to-date through September 30, 2009, Aimco has sold 58 properties generating net proceeds to Aimco of $244.2 million. Aimco continues to market properties located in its non-target markets and in lower rated locations within its target markets.

•

Dividend — Aimco’s Board of Directors declared a cash dividend of $0.10 per share on its Class A Common Stock for the quarter ended September 30, 2009. The dividend is payable November 30, 2009, to stockholders of record on November 20, 2009.



AIMCO 3rd Quarter 2009		Page 1

2009 Outlook

•

Property Operations — Aimco remains focused on retaining existing residents and maintaining expense control. Market rents have declined during 2009, although the rate of decline has eased. As a result of rental rate reductions, fourth quarter 2009 Same Store net operating income is expected to decline 7.0% to 8.0% when compared to fourth quarter 2008. For the full year 2009, Same Store net operating income is expected to decline 4.0% to 5.0% compared to full year 2008. Positive net operating income results in the redevelopment and affordable property portfolios are expected to largely offset the declines in the Same Store results.

•

Balance Sheet and Liquidity — Aimco continues to focus on balancing sources and uses of capital without reliance on capital markets for equity or debt, except for refunding of property debt. Aimco plans to meet liquidity requirements with limited use of its bank line of credit, except to support letters of credit. Aimco’s line of credit requires compliance with certain coverage ratios with which Aimco complies and expects to continue to comply. Aimco leverage is 95% long term: 83% non-recourse property debt with a weighted average maturity of 8.7 years, and 12% perpetual preferred equity. On average, approximately 5%, or $300 million, of Aimco’s share of leverage is subject to refunding in any one year. Aimco’s term debt totaling $210 million at October 30, 2009, matures in first quarter 2011, and is expected to be repaid prior to maturity with proceeds from property sales.

•

Property Sales and Asset Allocation — Aimco intends to sell approximately $450 million of additional non-target conventional and affordable assets by year end to fund repayment of its term debt due first quarter 2011. Once the term debt is repaid, future asset sales will be used to increase Aimco’s allocation of capital to well located properties within its target markets.

•

FFO Outlook — Aimco’s previously provided guidance for full year 2009 FFO, before operating real estate impairments and preferred stock redemption related gains, was a range of $1.55 to $1.75 per share, including $0.15 per share of dilution from 2009 property sales. Based on year-to-date financial results and our projections for the remainder of the year, we are narrowing our full year 2009 FFO guidance to $1.61 to $1.69 per share. For the fourth quarter 2009, FFO is expected to range from $0.32 to $0.40 per share, inclusive of dilution from 2009 asset sales.

Management Comments

Chairman and Chief Executive Officer Terry Considine comments: “Aimco properties enjoyed high occupancy and property incomes from all portfolios taken together were stable. Same Store rents declined from 2008; however the rate of decline eased during third quarter. Property values appear to have stabilized after substantial declines from their 2007 high. Proceeds from property sales are repaying our term debt. Refunding risk has been further reduced by extending most property debt maturities before 2012. Business simplification has led to lower offsite costs, including G&A expenses, and provided a substantial offset to earnings dilution from property sales. Notwithstanding a solid quarter, business conditions remain fragile and unpredictable. We look to the future with optimism and also great caution.”

President, Chief Investment Officer and Chief Financial Officer David Robertson adds: “During the quarter we sold $367 million of assets, plus an additional $124 million during October. Proceeds from these sales were used to pay down our term debt by $140 million, leaving a $210 million balance due in early 2011. We currently have an additional $800 million of assets either under contract or in negotiations, and we plan to sell approximately $450 million of this amount to repay our term debt, bringing total sales in 2009 to approximately $1.3 billion. Any additional sales will be used to fund investments in our existing portfolio or the acquisition of higher rated assets in our target markets.”



AIMCO 3rd Quarter 2009		Page 2

Third quarter 2009 Financial Results

In accordance with United States Generally Accepted Accounting Principles (GAAP), all previously reported share and per share data have been adjusted to take into account the special dividends paid on December 1, 2008, and January 29, 2009, which resulted in the issuance of approximately 12.6 million and 15.6 million additional shares of Aimco’s Class A Common Stock, respectively.

•

Net loss attributable to common stockholders for the quarter was $40.5 million, compared to net income of $159.5 million for the third quarter 2008. Lower gains on dispositions of consolidated and unconsolidated real estate of $194.9 million, lower asset management and tax credit revenues of $22.3 million, higher operating real estate impairment losses of $23.3 million and higher depreciation and amortization expense of $15.0 million were partially offset by a decrease in income attributable to noncontrolling interests of $45.7 million and lower general and administrative expenses of $11.7 million. Earnings per share (EPS) attributable to common stockholders were a loss of $0.35 on a diluted basis, compared with earnings of $1.35 per share in third quarter 2008.

•

Funds from operations (diluted) (FFO) is a non-GAAP financial measure defined in the glossary in the Supplemental Information (the Glossary). FFO calculated in accordance with the definition prescribed by the National Association of Real Estate Investment Trusts (NAREIT) was $22.3 million, or $0.19 per share, compared with $73.0 million, or $0.60 per share, in third quarter 2008. FFO, before operating real estate impairments and preferred stock redemption related gains, was $47.4 million, or $0.41 per share, down from $0.62 per share in third quarter 2008. Third quarter 2009 operating real estate impairments totaled $0.22 per share and resulted from the expected fourth quarter sale of four specific assets.

•

Adjusted funds from operations (diluted) (AFFO; a non-GAAP financial measure defined in the Glossary) was $28.8 million, or $0.25 per share, compared with $49.1 million, or $0.41 per share, in third quarter 2008. AFFO includes deductions of $0.16 and $0.21 per share for capital replacement expenditures in third quarter 2009 and third quarter 2008, respectively.

Adjusted Diluted Per Share Results^*


	THIRD QUARTER					YEAR-TO-DATE
	2009			2008		2009			2008
Earnings (loss) — EPS	$	(0.35	)	$	1.35	$	(0.94	)	$	2.93
Funds from operations — FFO	$	0.19		$	0.60	$	0.95		$	1.69
FFO before operating real estate impairments and preferred stock redemption related gains	$	0.41		$	0.62	$	1.29		$	1.76
Adjusted funds from operations — AFFO	$	0.25		$	0.41	$	0.86		$	1.23


*		These per share results reflect the cumulative effect of the shares issued as part of Aimco’s special dividends paid in 2008 and on January 29, 2009. To estimate the approximate per share results before the effect of Aimco’s special dividends, multiply the reported per share results by a factor of 1.48.

Property Operations

Property operating results discussed below represent Aimco’s share of reported amounts.

Conventional Real Estate Operations

Conventional real estate operations relate to Aimco’s diversified portfolio of market rate apartment communities. At the end of third quarter 2009, this portfolio included 266 properties with 82,142 units in which Aimco had a weighted average ownership of 90%. Average rents for the conventional real estate portfolio increased 5.6% from $987 per unit during third quarter 2008 to $1,042 per unit during third quarter 2009. During third quarter 2009, conventional real estate operations generated net operating income of $127.2 million. Aimco’s Same Store portfolio net operating income was $106.1 million for third quarter 2009, down 5.4% from third quarter 2008, while conventional redevelopment property operations generated net operating income of $22.6 million during the quarter, an increase of 16.4% compared to third quarter 2008.



AIMCO 3rd Quarter 2009		Page 3

“Same Store” Results

In the third quarter 2009, the Same Store portfolio included 195 communities with 57,968 Effective Units (see the Glossary) based on Aimco’s weighted average ownership of 91%.

Comparing Same Store results in third quarter 2009 with third quarter 2008, total revenue decreased $5.2 million, or 2.9%. The decrease in revenue was primarily the result of lower average daily occupancy, down 20 basis points from 95.0% to 94.8%, and lower average rent, down 3.5% or $36 per unit, from $1,026 per unit to $990 per unit. Same Store expenses increased $0.8 million or 1.1%, primarily due to higher property tax and insurance expenses, partially offset by decreased turnover costs.

Same Store Operating Results


	THIRD QUARTER									THIRD QUARTER						YEAR-TO-DATE
	Year-over-year									Sequential						Year-over-year
	2009			2008			Variance			2nd Qtr			Variance			2009			2008			Variance
Same Store Operating Measures
Average Daily Occupancy		94.8	%		95.0	%		-0.2	%		92.8	%		2.0	%		93.7	%		94.9	%		-1.2	%
Average Rent Per Unit	$	990		$	1,026			-3.5	%	$	1,008			-1.8	%	$	1,004		$	1,021			-1.7	%
Total Same Store ($mm)
Revenue	$	177.7		$	182.9			-2.9	%	$	177.3			0.2	%	$	508.8		$	519.9			-2.1	%
Expenses		(71.6	)		(70.8	)		1.1	%		(68.8	)		4.1	%		(200.1	)		(200.8	)		-0.4	%
NOI	$	106.1		$	112.1			-5.4	%	$	108.5			-2.2	%	$	308.7		$	319.1			-3.3	%

See Supplemental Schedules 6a through 6c for additional information on Same Store operating results.

Affordable Real Estate Operations

At the end of third quarter 2009, Aimco’s affordable real estate portfolio included 271 properties with 30,816 units in which Aimco had a weighted average ownership of 54%. During third quarter 2009, affordable property operations generated net operating income of $17.9 million. Total affordable property net operating income was 6.0% higher than during third quarter 2008. Average month-end occupancy for the affordable portfolio decreased 1.1% from 97.6% for third quarter 2008 to 96.5% for third quarter 2009, while average rent per unit increased 3.6% from $728 to $754 per unit.

Investment Management

Investment management includes activities related to our owned portfolio of properties as well as services provided to affiliated partnerships. Investment management includes portfolio strategy, capital allocation, joint ventures, tax credit syndication, acquisitions, dispositions and other transaction activities. Within our owned portfolio, we refer to these activities as Portfolio Management, and their benefit is seen in property operating results and in investment gains. For affiliated partnerships, we refer to these activities as Asset Management for which we are separately compensated through fees paid by third party investors.

Investment management income includes fees earned for providing asset management services to third party investors, syndication fees and deferred income related to tax credit activities, and portfolio management income earned through investment gains on our owned assets. Aimco’s share of investment management income, net of tax, was $6.0 million in the third quarter 2009 compared to $27.7 million in third quarter 2008. Income based on third quarter transactions contributed less than 1% of third quarter FFO. See Supplemental Schedule 11 for additional information on investment management income.



AIMCO 3rd Quarter 2009		Page 4

Portfolio Management

Portfolio management includes the ongoing allocation of investment capital to meet our geographic and product type goals. Our geographic allocation strategy focuses on the 20 largest U.S. markets as measured by total market capitalization. We believe these markets to be deep, relatively liquid and possessing desirable long-term growth characteristics. These target markets are primarily coastal markets, and also include a number of Sun Belt cities and Chicago, Illinois. As we execute this strategy, we expect to reduce our investment in markets outside the 20 largest markets and to increase our investment in the 20 largest markets both by making acquisitions and through redevelopment spending.

In third quarter 2009, Aimco sold 21 conventional properties and seven affordable properties with 6,031 and 777 units, respectively, for $366.6 million in gross proceeds (Aimco share $297.6 million). Aimco’s share of net proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $125.0 million.

See Supplemental Schedules 6 and 7 for additional details regarding Aimco’s portfolio allocation and Supplemental Schedule 8 for additional information on disposition activity.

Redevelopment

During third quarter 2009, Aimco invested $8.6 million in conventional redevelopment projects and completed five of the 21 projects that were active at the end of the second quarter. Aimco also invested $9.2 million in seven tax credit redevelopment projects during third quarter 2009.

Balance Sheet and Liquidity

At the end of third quarter 2009, Aimco leverage was provided 83% by long-term non-recourse property debt of $5.8 billion ($5.2 billion Aimco share) at a weighted average interest rate of 5.4% and weighted average maturity of 8.7 years. Aimco’s preferred securities represented approximately 12% of Aimco’s leverage at the end of the quarter at which time Aimco had $776.2 million in perpetual preferred stock and preferred partnership units at a weighted average rate of 7.6%.

Aimco’s recourse debt is limited to its revolving credit facility and corporate term debt, which together represented approximately 4% of Aimco’s leverage at the end of third quarter 2009. At that time, the balance on Aimco’s revolving credit facility was $15.1 million and available capacity was $119.5 million, net of $45.4 million of letters of credit drawn against the facility. Aimco’s revolving credit facility is used for working capital purposes and to secure letters of credit used in the Aimco business. The balance on Aimco’s corporate term debt of $260.0 million at September 30, 2009, matures in first quarter 2011. Subsequent to quarter’s end, the entire balance on the line of credit was repaid and $50 million was repaid on the term debt. In connection with these recourse obligations, Aimco is subject to Debt Service and Fixed Charge Coverage covenants of 1.50:1 and 1.30:1, respectively, as defined in the Glossary. For third quarter 2009, Aimco’s Debt Service and Fixed Charge Coverage ratios were 1.60:1 and 1.38:1, respectively. Aimco expects to remain in compliance with these covenants.

At September 30, 2009, Aimco had outstanding $6.2 billion of consolidated debt, which consisted of $5.2 billion of fixed rate property debt, $0.7 billion of floating rate property debt and $0.3 billion of floating rate corporate debt. In addition, Aimco had outstanding $67.0 million of floating rate preferred stock. Aimco’s floating rate property debt includes $474.7 million of tax-exempt bonds with rates tied to the Securities Industry and Financial Markets Association Municipal Swap Index (SIFMA). Over the last twenty years the SIFMA rate has moved at approximately 0.73% for a 1.00% change in LIBOR, which reduces Aimco’s FFO exposure to changes in floating interest rates. Additionally, Aimco’s FFO exposure is offset by floating rate assets, such as cash and notes receivable. Based on Aimco’s proportionate share of quarter-end balances, Aimco estimates its sensitivity to a 100 basis point change in LIBOR to be approximately $0.01 per share per quarter.

See Supplemental Schedules 4 and 5 for more detail on preferred equity characteristics and debt characteristics and activity.



AIMCO 3rd Quarter 2009		Page 5

Dividends on Common Stock

On October 27, 2009, the Aimco Board of Directors declared a quarterly cash dividend of $0.10 per share of Class A Common Stock for the quarter ended September 30, 2009, payable on November 30, 2009, to stockholders of record on November 20, 2009. At the end of the third quarter 2009, there were approximately 116.4 million shares of Class A Common Stock outstanding. See Supplemental Schedule 4 for additional detail on Aimco’s securities.

Earnings Conference Call

Please join Aimco management for the third quarter 2009 earnings conference call to be held Friday, October 30, 2009, at 1:00 p.m. Eastern time.

Live Conference Call
Domestic Dial-In Number: 1-866-843-0890
International Dial-In Number: 1-412-317-9250
Passcode: 9147658
Webcast: http://www.aimco.com/CorporateInformation/Overview.aspx

Conference Call Replay
Domestic Dial-In Number: 1-877-344-7529
International Dial-In Number: 1-412-317-0088
Passcode: 434199

The conference call replay will be available until 9:00 a.m. Eastern time on November 13, 2009.

Webcast Replay: http://www.aimco.com/CorporateInformation/About/Financial/news.aspx

Supplemental Information

The full text of this release and the Supplemental Information referenced in this release is available on Aimco’s Website at the link http://www.aimco.com/CorporateInformation/About/Financial/QEarnRelease.aspx.



AIMCO 3rd Quarter 2009		Page 6

Forward-looking Statements

This earnings release and Supplemental Information contain forward-looking statements, including statements regarding projected results and specifically forecasts of fourth quarter and full year 2009 results. These forward-looking statements are based on management’s judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to, Aimco’s ability to maintain current or meet projected occupancy, rent levels and Same Store results and Aimco’s ability to close transactions necessary to generate sales proceeds for debt repayment and other purposes, and to generate fee income as anticipated. Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond the control of Aimco, including, without limitation: financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for tenants in such markets; national and local economic conditions; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; redevelopment risks, including failure of such redevelopments to perform in accordance with projections; the timing of acquisitions and dispositions; insurance risk; 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 properties presently owned or previously owned by Aimco. In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code and depends on our ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership. Readers should carefully review Aimco’s financial statements and notes thereto, as well as the risk factors described in Aimco’s Annual Report on Form 10-K for the year ended December 31, 2008, and the other documents Aimco files from time to time with the Securities and Exchange Commission. These forward-looking statements reflect management’s judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances. This press release does not constitute an offer of securities for sale.

About Aimco

Aimco is a real estate investment trust headquartered in Denver, Colorado that owns and operates a geographically diversified portfolio of apartment communities. Aimco, through its subsidiaries and affiliates, is one of the largest owners and operators of apartment communities in the United States with 916 properties, including 146,581 apartment units, and serves approximately 500,000 residents each year. Aimco’s properties are located in 44 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.

Contact
Investor Relations 303.691.4350, Investor@Aimco.com
Elizabeth Coalson, Vice President Investor Relations 303.691.4327



AIMCO 3rd Quarter 2009		Page 7

GAAP Income Statements

Consolidated Statements of Income
(in thousands, except per share data) (unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
REVENUES:
Rental and other property revenues	$	307,907		$	310,563		$	925,363		$	918,772
Property management revenues, primarily from affiliates		1,114			1,227			4,098			4,746
Asset management and tax credit revenues		10,325			32,624			32,469			83,651

Total revenues		319,346			344,414			961,930			1,007,169

OPERATING EXPENSES:
Property operating expenses		146,608			147,165			426,258			430,166
Property management expenses		510			1,603			2,415			4,192
Investment management expenses		4,213			7,850			12,719			18,044
Depreciation and amortization		122,362			107,374			355,680			304,668
Provision for operating real estate impairment losses		21,676			—			24,666			—
General and administrative expenses		15,676			27,383			53,598			75,754
Other expenses, net		8,548			1,343			14,567			18,926

Total operating expenses		319,593			292,718			889,903			851,750


Operating (loss) income		(247	)		51,696			72,027			155,419

Interest income		1,962			5,824			7,629			17,131
Recovery of (provision for) losses on notes receivable		1,233			(842	)		(452	)		(1,107	)
Interest expense		(83,179	)		(84,887	)		(256,746	)		(257,042	)
Equity in losses of unconsolidated real estate partnerships		(4,198	)		(1,559	)		(7,934	)		(3,432	)
Impairment losses related to unconsolidated real estate partnerships		—			(1,131	)		—			(1,131	)
Gain on dispositions of unconsolidated real estate and other		3,345			99,954			18,580			100,118


(Loss) income before income taxes and discontinued operations		(81,084	)		69,055			(166,896	)		9,956

Income tax benefit		2,410			6,062			7,195			10,862


(Loss) income from continuing operations		(78,674	)		75,117			(159,701	)		20,818

Income from discontinued operations, net [1]		69,118			162,269			109,945			535,862


Net (loss) income		(9,556	)		237,386			(49,756	)		556,680
Noncontrolling interests [2]:
Net income attributable to noncontrolling interests in consolidated real estate partnerships		(19,342	)		(46,182	)		(24,764	)		(108,145	)
Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership [3]		(1,743	)		(1,962	)		(4,558	)		(5,669	)
Net loss (income) attributable to common noncontrolling interests in Aimco Operating Partnership [3]		3,139			(15,500	)		8,597			(37,819	)

Total noncontrolling interests		(17,946	)		(63,644	)		(20,725	)		(151,633	)

Net (loss) income attributable to Aimco		(27,502	)		173,742			(70,481	)		405,047
Net income attributable to Aimco preferred stockholders		(12,988	)		(12,224	)		(37,631	)		(40,102	)
Net income attributable to participating securities [4]		—			(1,974	)		—			(4,488	)

Net (loss) income attributable to Aimco common stockholders	$	(40,490	)	$	159,544		$	(108,112	)	$	360,457


Weighted average common shares outstanding — basic [5]		115,563			118,182			115,391			123,209

Weighted average common shares outstanding — diluted [5]		115,563			118,552			115,391			123,209


Earnings (loss) per common share — basic and diluted [5]:
(Loss) income from continuing operations attributable to Aimco common stockholders	$	(0.64	)	$	0.40		$	(1.36	)	$	(0.31	)
Income from discontinued operations attributable to Aimco common stockholders		0.29			0.95			0.42			3.24

Net (loss) income attributable to Aimco common stockholders	$	(0.35	)	$	1.35		$	(0.94	)	$	2.93


AIMCO 3rd Quarter 2009		Page 8

GAAP Income Statements (continued)

Notes to Consolidated Statements of Income


[1]		Income from discontinued operations consists of the following (in thousands):


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
Rental and other property revenues [6]	$	11,177		$	82,477		$	68,227		$	319,282
Property operating expenses [6]		(5,825	)		(40,100	)		(37,597	)		(157,847	)
Depreciation and amortization		(2,448	)		(20,403	)		(18,698	)		(78,034	)
Provision for operating real estate impairment losses		(5,050	)		(3,429	)		(18,954	)		(9,965	)
Other expenses, net		(1,355	)		(4,812	)		(5,743	)		(8,087	)

Operating (loss) income		(3,501	)		13,733			(12,765	)		65,349
Interest income		3			534			56			1,320
Interest expense		(2,348	)		(15,739	)		(14,194	)		(59,531	)

(Loss) income before gain on dispositions of real estate and income taxes		(5,846	)		(1,472	)		(26,903	)		7,138
Gain on extinguishment of debt		259			—			259			—
Gain on dispositions of real estate		70,890			169,160			133,431			549,550
Income tax benefit (expense)		3,815			(5,419	)		3,158			(20,826	)

Income from discontinued operations, net	$	69,118		$	162,269		$	109,945		$	535,862


Income from discontinued operations attributable to:
Noncontrolling interests in consolidated real estate partnerships	$	(32,498	)	$	(38,125	)	$	(56,656	)	$	(95,867	)
Noncontrolling interests in Aimco Operating Partnership [3]		(2,792	)		(10,251	)		(3,999	)		(36,593	)

Total noncontrolling interests		(35,290	)		(48,376	)		(60,655	)		(132,460	)

Aimco	$	33,828		$	113,893		$	49,290		$	403,402


[2]		Noncontrolling interests refers to interests in consolidated partnerships held by parties other than Aimco.

[3]		The Aimco Operating Partnership is AIMCO Properties, L.P., the operating partnership in Aimco’s UPREIT structure.

[4]		Income attributable to participating securities represents dividends declared and any amounts of undistributed earnings allocable to participating securities. Participating securities consist of unvested restricted stock and shares purchased pursuant to officer loans, both of which are entitled to dividends similar to common stock.

[5]		Weighted average share and earnings per share amounts for the periods presented above have been retroactively adjusted for the effect of shares of common stock issued pursuant to the special dividends paid in 2008 and January 2009.

[6]		Income from discontinued operations for the three months ended September 30, 2009, attributable to properties classified as held for sale at September 30, 2009, includes $2.1 million of rental and other property revenues and $0.9 million of property operating expenses related to one wholly-owned property.



AIMCO 3rd Quarter 2009		Page 9

GAAP Balance Sheets

Consolidated Balance Sheets
(in thousands)
(unaudited)


	September 30, 2009			December 31, 2008
ASSETS
Buildings and improvements	$	7,999,462		$	7,857,758
Land		2,243,403			2,232,541
Accumulated depreciation		(2,803,036	)		(2,506,683	)

Total real estate		7,439,829			7,583,616
Cash and cash equivalents		107,034			299,676
Restricted cash		246,764			255,836
Accounts receivable		61,584			90,318
Accounts receivable from affiliates		26,769			38,978
Deferred financing costs		54,561			54,109
Notes receivable from unconsolidated real estate partnerships		14,855			22,567
Notes receivable from non-affiliates		143,102			139,897
Investment in unconsolidated real estate partnerships		112,610			119,036
Other assets		204,405			198,714
Deferred income tax asset, net		33,267			28,326
Assets held for sale		29,758			610,797

Total assets	$	8,474,538		$	9,441,870


LIABILITIES AND EQUITY
Property tax-exempt bond financing	$	605,055		$	676,339
Property loans payable		5,206,788			5,224,350
Term loans		260,000			400,000
Credit Facility		15,070			—
Other borrowings		85,683			95,981

Total indebtedness		6,172,596			6,396,670
Accounts payable		36,317			64,241
Accrued liabilities and other		295,955			421,043
Deferred income		177,754			194,379
Security deposits		38,865			40,109
Liabilities related to assets held for sale		48,153			441,578

Total liabilities		6,769,640			7,558,020


Preferred noncontrolling interests in Aimco Operating Partnership		86,625			88,148
Preferred stock subject to repurchase agreement		30,000			—

Equity:
Perpetual preferred stock		660,500			696,500
Class A Common Stock		1,164			1,162
Additional paid-in capital		3,067,299			3,058,799
Accumulated other comprehensive loss		(1,846	)		(2,249	)
Notes due on common stock purchases		(1,417	)		(3,607	)
Distributions in excess of earnings		(2,465,312	)		(2,335,628	)

Total Aimco equity		1,260,388			1,414,977

Noncontrolling interests in consolidated real estate partnerships		340,581			380,725
Common noncontrolling interests in Aimco Operating Partnership		(12,696	)		—

Total equity		1,588,273			1,795,702

Total liabilities and equity	$	8,474,538		$	9,441,870



AIMCO 3rd Quarter 2009		Page 10

Outlook and Forward Looking Statement
Fourth Quarter and Full Year 2009
(unaudited)

Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond the control of Aimco, including, without limitation: financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which Aimco operates and competition for tenants in such markets; national and local economic conditions; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; redevelopment risks, including failure of such redevelopments to perform in accordance with projections; the timing of acquisitions and dispositions; insurance risk; 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 properties presently owned or previously owned by Aimco. In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code and depends on our ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership.

Readers should carefully review Aimco’s financial statements and notes thereto, as well as the risk factors described in Aimco’s Annual Report on Form 10-K for the year ended December 31, 2008, and the other documents Aimco files from time to time with the Securities and Exchange Commission. These forward-looking statements reflect management’s judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances. This press release does not constitute an offer of securities for sale.


	Fourth Quarter 2009	Full Year 2009
GAAP earnings per share [1][3]	-$0.58 to -$0.50	-$1.52 to -$1.44
FFO per share [2][3]	$0.32 to $0.40	$1.61 to $1.69
2009 Same Store operating assumptions:
Weighted average daily occupancy	94.5% to 95.5%	93.5% to 94.5%
NOI change — sequential	-2.0% to -1.0%
NOI change — 2009 vs. 2008	-8.0% to -7.0%	-5.0% to -4.0%


[1]		Aimco’s earnings per share guidance does not include estimates for (i) gains on dispositions or impairment losses due to the unpredictable timing of transactions, (ii) gains or losses on early repayment of debt, (iii) preferred stock redemption related costs or gains or (iv) potential future share repurchases or special dividends.

[2]		FFO per share represents FFO before operating real estate impairment losses and preferred redemption related costs or gains.

[3]		The GAAP earnings per share and FFO per share amounts are calculated based on 115.6 million weighted average common shares (diluted) for fourth quarter 2009 and 115.4 million weighted average common shares (diluted) for full year 2009.



AIMCO 3rd Quarter 2009		Page 11

AIMCO 3rd Quarter 2009

SUPPLEMENTAL INFORMATION


Page

3	Schedule 1	—	Funds From Operations and Adjusted Funds From Operations

5	Schedule 2	—	Proportionate Operating Results Presentation

7	Schedule 3	—	Proportionate Balance Sheet Presentation

8	Schedule 4	—	Share Data

9	Schedule 5	—	Selected Debt Structure and Maturity Data

11	Schedule 6a	—	Same Store Operating Results (3Q 2009 v. 3Q 2008)

12	Schedule 6b	—	Same Store Operating Results (3Q 2009 v. 2Q 2009)

13	Schedule 6c	—	Same Store Operating Results (YTD 3Q 2009 v. YTD 3Q 2008)

14	Schedule 7	—	Total Conventional Portfolio Data by Market

15	Schedule 8	—	Property Sales and Acquisition Activity

16	Schedule 9	—	Capital Expenditures

17	Schedule 10	—	Summary of Redevelopment Activity

18	Schedule 11	—	Aimco Capital

19	Schedule 12	—	Apartment Unit Summary

20	Glossary



AIMCO 3rd Quarter 2009		Page 2

Supplemental Schedule 1

Funds From Operations and Adjusted Funds From Operations
(in thousands, except per share data) (unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008

Net (loss) income attributable to Aimco common stockholders [1]	$	(40,490	)	$	159,544		$	(108,112	)	$	360,457
Adjustments:
Depreciation and amortization		122,362			107,374			355,680			304,668
Depreciation and amortization related to non-real estate assets		(4,292	)		(3,879	)		(12,584	)		(12,499	)
Depreciation of rental property related to noncontrolling partners and unconsolidated entities [2]		(11,289	)		(13,569	)		(32,923	)		(23,155	)
Gain on dispositions of unconsolidated real estate and other		(3,345	)		(99,954	)		(18,580	)		(100,118	)
Gain on dispositions of non-depreciable assets and other		3,195			1,252			6,330			1,237
Deficit distributions to noncontrolling partners [3]		—			18,869			—			23,795
Discontinued operations:
Gain on dispositions of real estate, net of noncontrolling partners’ interest [2]		(37,666	)		(128,289	)		(79,220	)		(443,590	)
Depreciation of rental property, net of noncontrolling partners’ interest [2]		2,020			17,879			16,126			68,840
Recovery of deficit distributions to noncontrolling partners [3]		—			(1,980	)		—			(9,139	)
Income tax (benefit) expense arising from disposals		(3,181	)		4,027			1,671			21,091
Noncontrolling interests in Aimco Operating Partnership’s share of above adjustments		(4,942	)		8,850			(17,750	)		15,705
Preferred stock dividends		12,988			13,706			39,280			41,584
Preferred stock redemption related gains		—			(1,482	)		(1,649	)		(1,482	)
Amounts allocable to participating securities [4]		—			1,974			—			4,488

Funds From Operations	$	35,360		$	84,322		$	148,269		$	251,882
Preferred stock dividends		(12,988	)		(13,706	)		(39,280	)		(41,584	)
Preferred stock redemption related gains		—			1,482			1,649			1,482
Dividends/distributions on dilutive preferred securities		—			1,758			—			4,850
Amounts allocable to participating securities [4]		(85	)		(869	)		(787	)		(2,529	)

Funds From Operations Attributable to Aimco Common Stockholders — Diluted	$	22,287		$	72,987		$	109,851		$	214,101
Operating real estate impairment losses, continuing operations, net of noncontrolling partners’ interest [5]		21,676			1,131			23,755			1,131
Operating real estate impairment losses, discontinued operations, net of noncontrolling partners’ interest [5]		4,940			2,986			22,735			9,522
Income tax expense (benefit) on impairment losses		737			—			(2,620	)		—
Preferred stock redemption related gains [6]		—			(1,482	)		(1,649	)		(1,482	)
Noncontrolling interests in Aimco Operating Partnership’s share of above adjustments		(2,042	)		(218	)		(3,168	)		(853	)
Dividends/distributions on dilutive preferred securities		—			17			—			34
Amounts allocable to participating securities [4]		(200	)		(29	)		(352	)		(105	)

Funds From Operations Attributable to Aimco Common Stockholders — Diluted (excluding operating real estate impairments and preferred stock redemption related amounts)	$	47,398		$	75,392		$	148,552		$	222,348
Capital Replacements		(20,254	)		(27,182	)		(54,038	)		(72,499	)
Noncontrolling interests in Aimco Operating Partnership’s share of Capital Replacements		1,491			2,341			4,056			6,742
Dividends/distributions on non-dilutive preferred securities		—			(1,717	)		—			(4,767	)
Amounts allocable to participating securities [4]		148			298			450			874

Adjusted Funds From Operations Attributable to Aimco Common Stockholders — Diluted	$	28,783		$	49,132		$	99,020		$	152,698


Funds From Operations Attributable to Aimco Common Stockholders — Diluted:
Weighted average common shares, common share equivalents and dilutive preferred securities outstanding [7]:
Common shares and equivalents [8]		115,575			118,552			115,395			123,548
Dilutive preferred securities [9]		—			3,303			—			3,086

		115,575			121,855			115,395			126,634

Funds From Operations Attributable to Aimco Common Stockholders (excluding operating real estate impairments and preferred stock redemption related amounts)
Weighted average common shares, common share equivalents and dilutive preferred securities outstanding [7]:
Common shares and equivalents [8]		115,575			118,552			115,395			123,548
Dilutive preferred securities [9]		—			3,330			—			3,104

		115,575			121,882			115,395			126,652

Adjusted Funds From Operations Attributable to Aimco Common Stockholders — Diluted
Weighted average common shares, common share equivalents and dilutive preferred securities outstanding [7]:
Common shares and equivalents [8]		115,575			118,552			115,395			123,548
Dilutive preferred securities [9]		—			145			—			97

		115,575			118,697			115,395			123,645

*Per Share [7]:*
Funds From Operations — Diluted	$	0.19		$	0.60		$	0.95		$	1.69
Funds From Operations — Diluted (excluding operating real estate impairments and preferred stock redemption related amounts)	$	0.41		$	0.62		$	1.29		$	1.76
Adjusted Funds From Operations — Diluted	$	0.25		$	0.41		$	0.86		$	1.23
Dividends paid [10]	$	0.10		$	3.00		$	2.28		$	6.11



AIMCO 3rd Quarter 2009		Page 3

Supplemental Schedule 1 (continued)

Notes to Funds From Operations and Adjusted Funds From Operations


[1]		Represents the numerator for calculating basic earnings per common share in accordance with GAAP.

[2]		“Noncontrolling partners” refers to noncontrolling partners in our consolidated real estate partnerships.

[3]		Prior to adoption of SFAS 160, Aimco recognized deficit distributions to noncontrolling partners as charges in its income statement when cash was distributed to a noncontrolling partner in a consolidated partnership in excess of the positive balance in such partner’s noncontrolling interest account. Aimco recorded these charges for GAAP purposes even though there is no economic effect or cost. Deficit distributions to noncontrolling partners occurred when the fair value of the underlying real estate exceeded its depreciated net book value because the underlying real estate had appreciated or maintained its value. As a result, the recognition of expense for deficit distributions to noncontrolling partners represented, in substance, either (a) Aimco’s recognition of depreciation previously allocated to the noncontrolling partner or (b) a payment related to the noncontrolling partner’s share of real estate appreciation. Based on NAREIT’s FFO White Paper guidance that requires real estate depreciation and gains to be excluded from FFO, Aimco added back deficit distributions and subtracted related recoveries in its reconciliation of net income to FFO. Subsequent to adoption of SFAS 160, effective January 1, 2009, Aimco may reduce the balance in noncontrolling partners’ accounts below zero in such situations and is no longer required to recognize deficit distribution charges in its income statement.

[4]		Amounts allocable to participating securities represent dividends declared and any amounts of undistributed earnings allocable to participating securities. Participating securities consist of unvested restricted stock and shares purchased pursuant to officer loans, both of which are entitled to dividends similar to common stock.

[5]		On October 1, 2003, NAREIT clarified its definition of FFO to include operating real estate impairment losses, which previously had been added back to calculate FFO. Although Aimco’s presentation conforms with the NAREIT definition, Aimco considers such approach to be inconsistent with the treatment of gains on dispositions of operating real estate, which are not included in FFO. Aimco does not add back operating real estate impairment losses when computing FFO in accordance with NAREIT’s definition.

[6]		In accordance with the Securities and Exchange Commission’s July 31, 2003 interpretation of the Emerging Issues Task Force Topic D-42, Aimco includes preferred stock redemption related charges or gains in FFO. As a result, FFO for the nine months ended September 30, 2009, includes a redemption discount, net of issuance costs, of $1.6 million and FFO for the three and nine months ended September 30, 2008, includes a redemption discount, net of issuance costs, of $1.5 million.

[7]		Weighted average common shares, common share equivalents, dilutive preferred securities and per share funds from operations and adjusted funds from operations amounts for each of the periods presented above have been retroactively adjusted for the effect of shares of Common Stock issued pursuant to the special dividends paid in 2008 and January 2009. Additionally, per share funds from operations amounts for 2008 have been retroactively adjusted for the effect of Aimco’s adoption of FASB FSP EITF 03-6-1 (participating securities) in 2009.

[8]		Represents the denominator for calculating Aimco’s diluted earnings per common share in accordance with GAAP, plus common share equivalents that are dilutive for per share funds from operations amounts.

[9]		AIMCO Properties, L.P.’s Preferred Partnership Units (PPU) are redeemable at the option of the holder. Upon a requested redemption, Aimco, in its sole discretion, may redeem these units for cash or shares of common stock. During 2008, Aimco implemented a policy that evaluates (a) the ratio of Aimco’s net asset value per share to the market value per share of its common stock and (b) the level of dilution of the assumed share settlement of all PPUs using common stock to determine whether current redemptions will be settled in cash or common stock. Pursuant to such policy, during the three and nine months ended September 30, 2009, 7.8 million and 10.0 million potential shares were excluded from diluted funds from operations share equivalents because the policy required cash settlement rather than share settlement.

[10]		Dividends paid per share for the periods presented have not been adjusted to give effect to shares of Common Stock issued pursuant to the special dividends paid in 2008 and January 2009.



AIMCO 3rd Quarter 2009		Page 4

Supplemental Schedule 2


Proportionate Operating Results Presentation (page 1 of 2)		(page 1 of 2)
(in thousands) (unaudited)


	Three Months Ended September 30, 2009												Nine Months Ended September 30, 2009
				Proportionate												Proportionate
	Aimco			Share of						Proportionate			Aimco			Share of						Proportionate
	GAAP Income			Unconsolidated			Noncontrolling			Income			GAAP Income			Unconsolidated			Noncontrolling			Income
	Statement			Partnerships			Interests			Statement			Statement			Partnerships			Interests			Statement
Revenues:
Rental and other property revenues:
Same Store properties [1] [2]	$	197,135		$	—		$	(19,680	)	$	177,455		$	593,338		$	—		$	(60,209	)	$	533,129
Acquisition properties [1]		1,656			—			—			1,656			4,981			—			—			4,981
Redevelopment properties [1]		39,660			—			(2,090	)		37,570			115,435			—			(6,077	)		109,358
Other properties [1]		17,054			167			(1,397	)		15,824			51,740			1,304			(4,935	)		48,109
Affordable properties [1]		52,402			2,418			(14,983	)		39,837			159,869			7,291			(47,583	)		119,577

Total rental and other property revenues		307,907			2,585			(38,150	)		272,342			925,363			8,595			(118,804	)		815,154
Property management revenues, primarily from affiliates [3]		1,114			(140	)		1,666			2,640			4,098			(470	)		6,134			9,762
Asset management and tax credit revenues		10,325			—			424			10,749			32,469			—			1,180			33,649

Total revenues		319,346			2,445			(36,060	)		285,731			961,930			8,125			(111,490	)		858,565

Operating expenses:
Property operating expenses:
Same Store properties [2]		79,798			—			(8,583	)		71,215			235,258			—			(25,392	)		209,866
Acquisition properties		648			—			—			648			1,824			—			—			1,824
Redevelopment properties		15,915			—			(936	)		14,979			47,293			—			(2,730	)		44,563
Other properties		9,120			88			(970	)		8,238			26,382			720			(2,710	)		24,392
Affordable properties		26,518			1,397			(8,672	)		19,243			79,403			4,441			(26,293	)		57,551
Casualties, Conventional		3,905			42			(227	)		3,720			6,515			58			(243	)		6,330
Casualties, Affordable		1,408			15			(82	)		1,341			2,350			21			(88	)		2,283
Property management expenses, Conventional [4]		6,832			—			(354	)		6,478			20,015			—			(427	)		19,588
Property management expenses, Affordable [4]		2,464			—			(1,071	)		1,393			7,218			—			(3,007	)		4,211

Total property operating expenses		146,608			1,542			(20,895	)		127,255			426,258			5,240			(60,890	)		370,608
Property management expenses [5]		510			—			1,425			1,935			2,415			—			3,434			5,849
Investment management expenses		4,213			—			—			4,213			12,719			—			—			12,719
Depreciation and amortization		122,362			2,865			(14,218	)		111,009			355,680			4,269			(37,381	)		322,568
Provision for operating real estate impairment losses		21,676			—			—			21,676			24,666			—			(911	)		23,755
General and administrative expenses		15,676			8			(711	)		14,973			53,598			(1	)		(2,345	)		51,252
Other expenses, net		8,548			1,867			(6,175	)		4,240			14,567			4,902			(14,580	)		4,889

Total operating expenses		319,593			6,282			(40,574	)		285,301			889,903			14,410			(112,673	)		791,640

Operating (loss) income		(247	)		(3,837	)		4,514			430			72,027			(6,285	)		1,183			66,925
Interest income:
General partner loan interest		1,165			(4	)		675			1,836			4,333			(17	)		2,450			6,766
Money market and interest bearing accounts		736			(21	)		(207	)		508			3,206			68			(612	)		2,662
Accretion on discounted notes receivable		61			—			150			211			90			—			302			392

Total interest income		1,962			(25	)		618			2,555			7,629			51			2,140			9,820
Recovery of (provision for) losses on notes receivable		1,233			—			(1,877	)		(644	)		(452	)		—			(1,218	)		(1,670	)
Interest expense:
Property debt (primarily non-recourse)		(82,064	)		(334	)		10,079			(72,319	)		(251,687	)		(1,700	)		30,416			(222,971	)
Corporate debt		(3,844	)		—			—			(3,844	)		(12,124	)		—			—			(12,124	)
Capitalized interest		2,729			(2	)		(1	)		2,726			7,065			—			(26	)		7,039

Total interest expense		(83,179	)		(336	)		10,078			(73,437	)		(256,746	)		(1,700	)		30,390			(228,056	)
Equity in losses of unconsolidated real estate partnerships		(4,198	)		4,198			—			—			(7,934	)		7,934			—			—
Gain on dispositions of unconsolidated real estate and other		3,345			—			(177	)		3,168			18,580			—			(603	)		17,977


Loss before income taxes and discontinued operations		(81,084	)		—			13,156			(67,928	)		(166,896	)		—			31,892			(135,004	)
Income tax benefit		2,410			—			—			2,410			7,195			—			—			7,195

Loss from continuing operations		(78,674	)		—			13,156			(65,518	)		(159,701	)		—			31,892			(127,809	)
Income from discontinued operations, net		69,118			—			(32,498	)		36,620			109,945			—			(56,656	)		53,289

Net loss		(9,556	)		—			(19,342	)		(28,898	)		(49,756	)		—			(24,764	)		(74,520	)
Noncontrolling interests:
Noncontrolling interests in consolidated real estate partnerships		(19,342	)		—			19,342			—			(24,764	)		—			24,764			—
Noncontrolling interests in Aimco Operating Partnership		1,396			—			—			1,396			4,039			—			—			4,039

Total net income attributable to noncontrolling interests		(17,946	)		—			19,342			1,396			(20,725	)		—			24,764			4,039

Net loss attributable to Aimco		(27,502	)		—			—			(27,502	)		(70,481	)		—			—			(70,481	)
Net income attributable to Aimco preferred stockholders		(12,988	)		—			—			(12,988	)		(37,631	)		—			—			(37,631	)

Net loss attributable to Aimco common stockholders	$	(40,490	)	$	—		$	—		$	(40,490	)	$	(108,112	)	$	—		$	—		$	(108,112	)

(See footnotes on Page 2 of 2)



AIMCO 3rd Quarter 2009		Page 5

Supplemental Schedule 2



Proportionate Operating Results Presentation		(page 2 of 2)
(in thousands) (unaudited)


	Three Months			Nine Months
	Ended			Ended
	September 30,			September 30,
	2009			2009
Components of FFO:
Real estate operations:
Rental and other property revenues	$	272,342		$	815,154
Property operating expenses		(127,255	)		(370,608	)

Net real estate operations		145,087			444,546
Property management, net		705			3,913
Asset management and tax credit revenues, net of investment management expenses		6,536			20,930
Depreciation and amortization related to non-real estate assets		(4,227	)		(12,395	)
General and administrative expenses		(14,973	)		(51,252	)
Other expense, net		(4,240	)		(4,889	)
Interest income		2,555			9,820
Provision for losses on notes receivable		(644	)		(1,670	)
Interest expense		(73,437	)		(228,056	)
Gain on disposition of non-depreciable assets		2,910			6,783
Income tax benefit		3,095			6,662
Discontinued operations:
Operations and other		4,899			22,964
Interest expense		(2,006	)		(11,507	)
Preferred stock dividends and redemption related amounts		(12,988	)		(39,280	)
Preferred partnership unit distributions		(1,743	)		(4,558	)
Amounts allocated to participating securities		(285	)		(1,139	)

Subtotal before noncontrolling interests in Aimco Operating Partnership	$	51,244		$	160,872
Common noncontrolling interests in Aimco Operating Partnership		(3,846	)		(12,320	)

FFO Attributable to Aimco Common Stockholders — Diluted (excluding operating real estate impairments and preferred stock redemption related amounts)	$	47,398		$	148,552


Reconciliation of Net Loss to FFO and AFFO:
Net loss	$	(28,898	)	$	(74,520	)
Depreciation and amortization		111,009			322,568
Depreciation and amortization related to non-real estate assets		(4,227	)		(12,395	)
Gain on dispositions of unconsolidated real estate and other		(3,168	)		(17,977	)
Income tax benefit arising from disposition of unconsolidated real estate and other		3,195			6,330
Discontinued operations		(39,005	)		(62,026	)
Operating real estate impairment losses, continuing operations, net of noncontrolling partners’ interest		21,676			23,755
Operating real estate impairment losses, discontinued operations, net of noncontrolling partners’ interest		4,940			22,735
Income tax expense (benefit) on impairment losses		737			(2,620	)
Noncontrolling interests in Aimco Operating Partnership’s share of adjustments		(6,984	)		(20,918	)
Noncontrolling interests in Aimco Operating Partnership’s share of net loss		1,396			4,039
Preferred stock dividends		(12,988	)		(39,280	)
Amounts allocated to participating securities		(285	)		(1,139	)

FFO Attributable to Aimco Common Stockholders — Diluted (excluding operating real estate impairments and preferred stock redemption related amounts)	$	47,398		$	148,552
Capital Replacements		(20,254	)		(54,038	)
Noncontrolling interests in Aimco Operating Partnership’s share of Capital Replacements		1,491			4,056
Amounts allocated to participating securities		148			450

AFFO Attributable to Aimco Common Stockholders — Diluted	$	28,783		$	99,020

Notes to Schedule 2:


[1]		See definitions and descriptions in Glossary.

[2]		Same store amounts in this schedule differ from the same store amounts in Schedule 6. Any such differences are the result of (a) certain variations in the treatment of intercompany eliminations in GAAP versus non-GAAP measures; (b) the effect of changing ownership percentages over time due to Aimco’s acquisition of additional partnership interests and (c) the elimination of non-recurring items that if included in Schedule 6 would distort Schedule 6 same store results.

[3]		Property management revenues reported in Aimco’s GAAP income statement reflect fees charged to unconsolidated properties. Property management revenues reported in the proportionate income statement reflect the noncontrolling interest partners’ share of fees charged to both consolidated and unconsolidated properties.

[4]		Property management expenses reported on this line in Aimco’s GAAP income statement reflect expenses related to the management of consolidated properties. Property management expenses reported on this line in the proportionate income statement reflect Aimco’s share of both consolidated and unconsolidated property management expenses.

[5]		Property management expenses reported on this line in Aimco’s GAAP income statement reflect expenses related to the management of unconsolidated properties. Property management expenses reported on this line in the proportionate income statement reflect noncontrolling interest partners’ share of both consolidated and unconsolidated property management expenses.



AIMCO 3rd Quarter 2009		Page 6

Supplemental Schedule 3

Proportionate Balance Sheet Presentation
As of September 30, 2009
(in thousands) (unaudited)


				Proportionate
	Consolidated			Share of						Proportionate
	GAAP			Unconsolidated			Noncontrolling			Balance
	Balance Sheet			Partnerships			Interests			Sheet
ASSETS
Real estate, net of depreciation	$	7,439,829		$	47,262		$	(566,925	)	$	6,920,166
Cash and cash equivalents		107,034			1,312			(27,659	)		80,687
Restricted cash		246,764			4,094			(48,500	)		202,358
Accounts receivable		88,353			627			(6,069	)		82,911
Notes receivable [1]		157,957			—			66,048			224,005
Investment in unconsolidated real estate partnerships		112,610			(28,009	)		(47,030	)		37,571
Other assets [2]		321,991			(1,680	)		(31,597	)		288,714

Total assets	$	8,474,538		$	23,606		$	(661,732	)	$	7,836,412


LIABILITIES AND EQUITY
Total indebtedness	$	6,172,596		$	17,638		$	(649,921	)	$	5,540,313
Other liabilities [3]		597,044			5,968			(96,218	)		506,794

Total liabilities		6,769,640			23,606			(746,139	)		6,047,107


Preferred noncontrolling interests in Aimco Operating Partnership [4]		86,625			—			—			86,625
Preferred stock subject to repurchase agreement		30,000			—			—			30,000
Total Aimco equity [5]		1,260,388			—			424,988			1,685,376
Noncontrolling interests in consolidated real estate partnerships		340,581			—			(340,581	)		—
Common noncontrolling interests in Aimco Operating Partnership		(12,696	)		—			—			(12,696	)

Total liabilities and equity	$	8,474,538		$	23,606		$	(661,732	)	$	7,836,412

Additional Information and Notes:


[1]		Aimco has notes receivable from consolidated partnerships which are eliminated in the GAAP balance sheet. The noncontrolling partners’ share of amounts payable to Aimco pursuant to those notes is added to the GAAP-based amounts to arrive at the proportionate balance presented above.

[2]		Other assets consists of the following proportionate amounts:


Deferred financing costs	$	45,940
Goodwill		75,425
Investment in management contracts		1,422

Deferred financing costs and intangible assets		122,787
Deferred income tax asset		33,267
Assets held for sale		29,684
Other		102,976

Total other assets	$	288,714


[3]		Other liabilities includes deferred income of $131.6 million of tax credit equity, which represents cash contributions received from tax credit investors through September 30, 2009. In accordance with GAAP, Aimco recognizes these contributions in earnings in future periods as Aimco delivers the related low income housing tax credits and other tax benefits to the tax credit investors.

[4]		Various classes of preferred OP Units of the Aimco Operating Partnership are outstanding. Depending on the terms of each class, these preferred OP Units are convertible into common OP Units or redeemable for cash, or at Aimco’s option, Common Stock. As of September 30, 2009 a total of 3.1 million preferred OP Units were outstanding with a redemption value of $85.7 million.

[5]		Amount includes perpetual preferred stock outstanding of $660.5 million at September 30, 2009.



AIMCO 3rd Quarter 2009		Page 7

Supplemental Schedule 4

Share Data
(in thousands) (unaudited)

Preferred Securities


	Shares/Units
	Outstanding
	as of			Redemption
	September 30, 2009			Date [1]		Coupon			Amount
Perpetual Preferred Stock:
Class G		4,040			7/15/2008		9.375	%	$	101,000
Class T		6,000			7/31/2008		8.000	%		150,000
Class U		8,000			3/24/2009		7.750	%		200,000
Class V		3,450			9/29/2009		8.000	%		86,250
Class Y		3,450			12/21/2009		7.875	%		86,250
Series A Community Reinvestment Act		0	[2]		6/30/2011		1.850	%[3]		67,000	[2]

Total perpetual preferred stock										690,500

Preferred Partnership Units		3,147					8.076	%[4]		85,677

Total outstanding preferred securities									$	776,177

Common Stock and Equivalents


	Shares/Units		Weighted Average Shares/Units				Weighted Average Shares/Units
	Outstanding		Three Months Ended				Nine Months Ended
	as of		September 30, 2009				September 30, 2009
	September 30, 2009		Diluted EPS		Diluted FFO		Diluted EPS		Diluted FFO
Class A Common Stock [5]		115,569		115,563		115,563		115,391		115,391
Dilutive securities:
Options, restricted stock and officer loan shares [6]		1,053		—		12		—		4
Convertible preferred securities [7]		—		—		—		—		—

Total shares and dilutive share equivalents		116,622		115,563		115,575		115,391		115,395

Common Partnership Units and equivalents [8]		8,811		8,813		8,813		9,012		9,012

Total shares, units and dilutive share equivalents		125,433		124,376		124,388		124,403		124,407


Notes:

[1]		The redemption date is the date the securities are first eligible for redemption by Aimco.

[2]		Represents 134 shares at a liquidation preference per share of $500,000. The remaining amount at September 30, 2009 includes $30.0 million subject to a repurchase agreement which is classified as temporary equity in the consolidated balance sheet.

[3]		The dividend rate is a variable rate per annum equal to the Three-Month LIBOR Rate plus 1.25%, calculated as of the beginning of each quarterly period.

[4]		Coupon is based on a weighted average.

[5]		Includes a deduction of 0.9 million for unvested restricted stock and officer loan shares as of September 30, 2009.

[6]		Stock options, restricted stock and officer loan shares are presumed to be dilutive as of September 30, 2009, and reflect the dilutive effect of options and shares outstanding at the end of the period and the $14.75 share price at the end of the period. Diluted EPS for the three and nine months ended September 30, 2009, excludes the effect of these securities because their effect was antidilutive. The effect on diluted FFO of participating securities, or restricted stock and officer loan shares, for the three and nine months ended September 30, 2009, was more dilutive under the two-class method of allocating earnings. Accordingly, no participating securities were included in diluted FFO share/unit counts during these periods.

[7]		AIMCO Properties, L.P.’s Preferred Partnership Units (PPU) are redeemable at the option of the holder. Upon a requested redemption, Aimco, in its sole discretion, may redeem these units for cash or shares of common stock. During the fourth quarter 2008, Aimco implemented a policy that established criteria for determining when such redemptions will be settled in cash or shares of common stock. Pursuant to such policy, during the three and nine months ended September 30, 2009, 7.8 million and 10.0 million potential shares were excluded from diluted FFO share equivalents. These potential shares were excluded from diluted EPS equivalents because their effect was antidilutive. The potential common shares from an assumed stock settlement are ignored in the determination of shares/units outstanding as of September 30, 2009.

[8]		Includes common OP Units and Class I High Performance Units.



AIMCO 3rd Quarter 2009		Page 8

Supplemental Schedule 5



Selected Debt Structure and Maturity Data As of September 30, 2009 (dollars in thousands) (unaudited)		(page 1 of 2)

I. Debt Balances and Data


										Weighted
			Proportionate					Total		Average		Weighted
			Share of		Noncontrolling			Aimco		Maturity		Average
Debt	Consolidated		Unconsolidated		Interests			Share		(years)		Rate
Property Debt (primarily non-recourse):

Conventional Portfolio:
Fixed rate loans payable	$	4,498,748	$	—	$	(428,588	)	$	4,070,160		8.1		6.11	%
Floating rate loans payable [1]		164,935		—		(12,520	)		152,415		3.7		1.78	%

Total property loans payable		4,663,683		—		(441,108	)		4,222,575		7.9		5.95	%

Fixed rate tax-exempt bonds		56,880		—		(3,338	)		53,542		11.4		6.63	%
Floating rate tax-exempt bonds [1]		347,672		—		(5,242	)		342,430		7.2		0.72	%

Total property tax-exempt bond financing		404,552		—		(8,580	)		395,972		7.7		1.52	%


Total Conventional portfolio		5,068,235		—		(449,688	)		4,618,547		7.9		5.57	%


Affordable Portfolio:
Fixed rate loans payable		528,626		17,023		(167,691	)		377,958		16.9		5.39	%
Floating rate loans payable		14,479		9		(8,036	)		6,452		6.4		3.04	%

Total property loans payable		543,105		17,032		(175,727	)		384,410		16.7		5.35	%

Fixed rate tax-exempt bonds		73,488		7		(12,843	)		60,652		26.7		5.01	%
Floating rate tax-exempt bonds [1]		127,015		—		(1,917	)		125,098		6.7		1.28	%

Total property tax-exempt bond financing		200,503		7		(14,760	)		185,750		13.2		2.50	%


Total Affordable portfolio		743,608		17,039		(190,487	)		570,160		15.6		4.42	%


Total property debt	$	5,811,843	$	17,039	$	(640,175	)	$	5,188,707		8.7		5.44	%


Corporate Debt:
Term Loan	$	260,000	$	—	$	—		$	260,000		—		1.74	%[2]
Credit Facility		15,070		—		—			15,070		—		6.25	%[2]

Total corporate debt	$	275,070	$	—	$	—		$	275,070		—		1.99	%


Other borrowings [3]	$	85,683	$	599	$	(9,746	)	$	76,536


Total Debt	$	6,172,596	$	17,638	$	(649,921	)	$	5,540,313				5.27	%


[1]		Floating rate debt presented above includes $365.3 million of fixed rate debt that is effectively converted to floating rates using total rate of return swaps. At September 30, 2009, the carrying amount of this debt totaled $339.4 million, after recognition of changes in the debt’s fair value.

[2]		The Term Loan bears interest at LIBOR plus a spread of 1.50%, or at our option, a base rate equal to the Prime rate. At September 30, 2009, the interest rate on the Term Loan was based on LIBOR. Borrowings under the credit facility bear interest on a pricing grid based on leverage. Based on current leverage, interest is either LIBOR plus a spread of 4.25% with a LIBOR floor of 2.00% or, at our option, a base rate equal to the Prime rate plus a spread of 3.00%. The current outstanding borrowings are at the base rate.

[3]		Other borrowings consists primarily of notes payable collateralized by assets other than direct interests in real estate and obligations under sale and leaseback arrangements accounted for as financings. At September 30, 2009, other borrowings includes $77.2 million in fixed rate obligations with interest rates ranging from zero to 10.0% and $8.5 million in variable rate obligations bearing interest at the Prime rate plus 1.75%.

II. Debt Maturities


	Consolidated Property Debt												Aimco Share
							Percent			Average Rate on
	Amortization		Maturities		Total		of Total			Maturing Debt			Amortization		Maturities		Total
2009 Q4	$	23,981	$	7,603	$	31,584		0.5	%		5.32	%	$	21,282	$	4,985	$	26,267
2010 Q1		24,812		—		24,812		0.4	%		—			21,414		—		21,414
2010 Q2		25,414		—		25,414		0.4	%		—			21,949		—		21,949
2010 Q3		25,728		11,730		37,458		0.6	%		4.79	%		22,252		7,570		29,822
2010 Q4		26,095		11,575		37,670		0.6	%		5.25	%		22,573		8,014		30,587
2011 Q1		26,837		—		26,837		0.5	%		—			23,285		—		23,285
2011 Q2		27,287		160,973		188,260		3.2	%		5.60	%		23,677		90,413		114,090
2011 Q3		27,678		—		27,678		0.5	%		—			24,004		—		24,004
Balance 2011		28,239		73,531		101,770		1.8	%		7.40	%		24,468		73,531		97,999
2012 [1][2]		111,144		595,957		707,101		12.2	%		2.46	%		96,338		559,430		655,768
2013		103,715		459,951		563,666		9.7	%		5.54	%		89,664		425,949		515,613
Thereafter						4,039,593		69.6	%									3,627,909

Total property debt:					$	5,811,843		100.0	%								$	5,188,707


							Percent			Average
Corporate Debt:	Amortization		Maturities		Total		of Total			Rate
2011	$	—	$	260,000	$	260,000		94.5	%		1.74	%
2012 [3]		—		15,070		15,070		5.5	%		6.25	%

Total corporate debt:	$	—	$	275,070	$	275,070		100.0	%		1.99	%


[1]		In September 2007, Aimco entered into a credit facility with a major life company that provides for short-term, fully pre-payable, non-recourse property borrowings of up to $200.0 million. This facility, which matures October 1, 2010, includes two one-year extension options for a $500,000 fee per extension. At September 30, 2009, outstanding borrowings of $90.7 million related to properties classified as held for use are included in 2012 maturities based on assumed exercise of the extension options.

[2]		2012 maturities include approximately $320.1 million of debt ($296.5 million at carrying amount) subject to total return swaps for which the swap maturity dates are in 2012 and the related debt maturities are beyond 2012.

[3]		The $180.0 million credit facility that matures May 1, 2011 is included in 2012 due to the one-year extension option Aimco may exercise.



AIMCO 3rd Quarter 2009		Page 9

Supplemental Schedule 5 (continued)



Selected Debt Structure and Maturity Data		(page 2 of 2)
As of September 30, 2009
(in millions)
(unaudited)

III. Year-to-Date Loan Closings


	Original		New					Aimco
	Loan		Loan		Net			Net			Prior			New
Property Loan Type (all non-recourse)	Amount [1]		Amount		Proceeds [2]			Proceeds [3]			Rate			Rate
Consolidated Loan Closings:
Fixed Rate to Fixed Rate	$	488.0	$	465.4	$	(28.4	)	$	(30.8	)		5.91	%		5.90	%
Fixed Rate to Floating Rate		32.9		40.9		6.6			6.6			6.92	%		1.92	%
Floating Rate to Fixed Rate		115.7		130.4		22.9			22.9			3.45	%		6.61	%
Floating Rate — New		—		14.4		14.1			14.1			—			2.79	%
Fixed Rate — New		—		30.1		28.4			27.6			—			6.46	%


Totals	$	636.6	$	681.2	$	43.6		$	40.4			5.51	%		5.75	%


[1]		Original Loan Amount represents the principal balance outstanding at the time of the refinance.

[2]		Net Proceeds is after transaction costs and prepayment penalties.

[3]		Aimco Net Proceeds is after payment of distributions to noncontrolling partners.

IV. Capitalization


	March 31, 2009						June 30, 2009						September 30, 2009
	Amount			Percent			Amount			Percent			Amount			Percent

Corporate debt	$	365			5.1	%	$	350			4.7	%	$	275			3.5	%

Property debt (Aimco’s share)		5,591			77.4	%		5,382			72.8	%		5,189			65.8	%

Other borrowings (Aimco’s share)		80			1.1	%		77			1.0	%		77			1.0	%


Total debt		6,036			83.6	%		5,809			78.5	%		5,541			70.3	%

Less cash and restricted cash (Aimco’s share)		(283	)		-3.9	%		(305	)		-4.1	%		(283	)		-3.6	%

Net debt		5,753			79.7	%		5,504			74.4	%		5,258			66.7	%

Preferred equity		783			10.8	%		777			10.5	%		776			9.8	%

Common equity at market [1]		689			9.5	%		1,109			15.1	%		1,847			23.5	%


Total capitalization	$	7,225			100.0	%	$	7,390			100.0	%	$	7,881			100.0	%


[1]		Common equity at market at September 30, 2009, June 30, 2009 and March 31, 2009, was calculated using 125.232 million, 125.255 million and 125.820 million shares of Class A Common Stock and common partnership units outstanding multiplied by the closing price of $14.75, $8.85 and $5.48 per share/unit as of September 30, 2009, June 30, 2009 and March 31, 2009, respectively.

V. Credit Ratings


Moody’s Investor Service Standard and Poor’s Fitch		Corporate Family Rating Corporate Credit Rating Bank Credit Facility		Ba1 (stable outlook) BB+ (negative) BB+ (stable outlook)



AIMCO 3rd Quarter 2009		Page 10

Supplemental Schedule 6(a)

Same Store Operating Results
Third Quarter 2009 Compared to Third Quarter 2008
(unaudited) (in thousands, except site and unit data)


																												Operating
					Effective		Revenue							Expenses							Net Operating Income							Margin			Occupancy						Rental Rates
	Properties		Units		Units		3Q 2009		3Q 2008		Growth			3Q 2009		3Q 2008		Growth			3Q 2009		3Q 2008		Growth			3Q 2009			3Q 2009			3Q 2008			3Q 2009		3Q 2008

Target Markets
Los Angeles		11		3,407		2,756	$	14,354	$	15,597		-8.0	%	$	4,866	$	5,025		-3.2	%	$	9,488	$	10,572		-10.3	%		66.1	%		95.1	%		95.8	%	$	1,920	$	2,089
Orange County		3		443		373		1,341		1,403		-4.4	%		453		464		-2.4	%		888		939		-5.4	%		66.2	%		94.8	%		96.9	%		1,179		1,204
San Diego		4		1,622		1,552		5,692		5,732		-0.7	%		1,621		1,740		-6.8	%		4,071		3,992		2.0	%		71.5	%		95.0	%		96.8	%		1,189		1,175

Southern CA Total		18		5,472		4,681		21,387		22,732		-5.9	%		6,940		7,229		-4.0	%		14,447		15,503		-6.8	%		67.6	%		95.0	%		96.2	%		1,644		1,744
East Bay		2		413		353		1,337		1,457		-8.2	%		650		567		14.6	%		687		890		-22.8	%		51.4	%		91.3	%		96.3	%		1,241		1,276
San Francisco		3		600		600		2,747		2,842		-3.3	%		1,031		1,036		-0.5	%		1,716		1,806		-5.0	%		62.5	%		94.7	%		95.0	%		1,495		1,553

Northern CA Total		5		1,013		953		4,084		4,299		-5.0	%		1,681		1,603		4.9	%		2,403		2,696		-10.9	%		58.8	%		93.3	%		95.5	%		1,394		1,439
Seattle		2		278		175		594		655		-9.3	%		313		240		30.4	%		281		415		-32.3	%		47.3	%		95.0	%		96.1	%		1,109		1,195

Pacific Total		25		6,763		5,809		26,065		27,686		-5.9	%		8,934		9,072		-1.5	%		17,131		18,614		-8.0	%		65.7	%		94.8	%		96.1	%		1,585		1,676

Suburban New York — New Jersey		6		1,802		1,503		5,587		5,942		-6.0	%		2,004		1,994		0.5	%		3,583		3,948		-9.2	%		64.1	%		94.6	%		96.0	%		1,184		1,238
Washington — NoVA — MD		15		6,711		6,288		23,234		23,274		-0.2	%		8,075		7,434		8.6	%		15,159		15,840		-4.3	%		65.2	%		96.3	%		95.8	%		1,204		1,212
Boston		11		4,147		4,147		14,763		14,881		-0.8	%		5,308		4,979		6.6	%		9,455		9,902		-4.5	%		64.0	%		96.4	%		96.0	%		1,173		1,192
Philadelphia		4		1,791		1,523		5,928		6,217		-4.6	%		2,128		2,182		-2.5	%		3,800		4,035		-5.8	%		64.1	%		92.8	%		95.7	%		1,259		1,272

Northeast Total		36		14,451		13,461		49,512		50,314		-1.6	%		17,515		16,589		5.6	%		31,997		33,725		-5.1	%		64.6	%		95.7	%		95.9	%		1,199		1,217

Miami		6		2,472		2,349		11,898		12,725		-6.5	%		5,608		5,654		-0.8	%		6,290		7,071		-11.0	%		52.9	%		95.7	%		94.3	%		1,577		1,712
Palm Beach/Fort Lauderdale [1]		7		2,171		2,021		6,062		6,132		-1.1	%		2,669		2,557		4.4	%		3,393		3,575		-5.1	%		56.0	%		95.7	%		94.8	%		946		985
Orlando [1]		9		2,356		2,139		5,026		5,206		-3.5	%		2,130		2,391		-10.9	%		2,896		2,815		2.9	%		57.6	%		95.4	%		93.0	%		723		789
Tampa [1]		9		2,635		2,319		5,800		5,987		-3.1	%		2,392		2,584		-7.4	%		3,408		3,403		0.1	%		58.8	%		96.8	%		94.6	%		756		823
Jacksonville [1]		4		1,643		1,404		3,613		3,502		3.2	%		1,645		1,827		-10.0	%		1,968		1,675		17.5	%		54.5	%		96.4	%		91.3	%		795		858

Florida Total		35		11,277		10,232		32,399		33,552		-3.4	%		14,444		15,013		-3.8	%		17,955		18,539		-3.2	%		55.4	%		96.0	%		93.7	%		971		1,048
Houston		7		2,622		2,066		4,617		4,537		1.8	%		2,209		1,905		16.0	%		2,408		2,632		-8.5	%		52.2	%		92.8	%		93.3	%		724		711
Denver		10		2,877		2,315		6,182		6,314		-2.1	%		2,191		2,366		-7.4	%		3,991		3,948		1.1	%		64.6	%		95.2	%		97.2	%		787		791
Phoenix		15		3,839		3,443		6,888		7,629		-9.7	%		3,233		3,333		-3.0	%		3,655		4,296		-14.9	%		53.1	%		92.8	%		95.8	%		626		672
Dallas — Fort Worth		4		1,005		824		1,894		1,917		-1.2	%		1,021		968		5.5	%		873		949		-8.0	%		46.1	%		93.9	%		95.0	%		736		744
Atlanta		2		281		245		773		783		-1.3	%		310		291		6.5	%		463		492		-5.9	%		59.9	%		97.3	%		94.1	%		945		1,022

Sunbelt Total		73		21,901		19,125		52,753		54,732		-3.6	%		23,408		23,876		-2.0	%		29,345		30,856		-4.9	%		55.6	%		94.9	%		94.6	%		847		892

Chicago		10		2,595		2,531		8,573		8,598		-0.3	%		3,782		3,597		5.1	%		4,791		5,001		-4.2	%		55.9	%		93.6	%		93.5	%		1,095		1,104

Total Target Markets		144		45,710		40,926		136,903		141,330		-3.1	%		53,639		53,134		1.0	%		83,264		88,196		-5.6	%		60.8	%		95.0	%		95.1	%		1,082		1,125

Other
Austin		3		816		816		1,633		1,783		-8.4	%		910		841		8.2	%		723		942		-23.2	%		44.3	%		90.8	%		95.5	%		656		695
Baltimore		3		701		628		2,113		2,076		1.8	%		849		799		6.3	%		1,264		1,277		-1.0	%		59.8	%		96.1	%		95.6	%		1,099		1,094
Indianapolis/Fort Wayne		8		4,981		4,782		8,937		8,992		-0.6	%		4,218		4,397		-4.1	%		4,719		4,595		2.7	%		52.8	%		93.3	%		94.3	%		584		588
Nashville		3		788		622		1,761		1,800		-2.2	%		773		748		3.3	%		988		1,052		-6.1	%		56.1	%		95.5	%		96.2	%		867		894
Norfolk/Richmond		6		1,661		1,569		4,233		4,326		-2.1	%		1,466		1,507		-2.7	%		2,767		2,819		-1.8	%		65.4	%		96.5	%		96.2	%		846		861
Raleigh/Greenville		2		504		342		680		717		-5.2	%		309		338		-8.6	%		371		379		-2.1	%		54.6	%		91.5	%		94.4	%		662		690
Other Markets		26		8,643		8,283		21,436		21,962		-2.4	%		9,450		9,085		4.0	%		11,986		12,877		-6.9	%		55.9	%		94.3	%		94.2	%		810		840

Total Other		51		18,094		17,042		40,793		41,656		-2.1	%		17,975		17,715		1.5	%		22,818		23,941		-4.7	%		55.9	%		94.1	%		94.6	%		755		774


SAME STORE SALES TOTALS		195		63,804		57,968		177,696		182,986		-2.9	%		71,614		70,849		1.1	%		106,082		112,137		-5.4	%		59.7	%		94.8	%		95.0	%	$	990	$	1,026


Reconciliation to total rental and other property revenues and property operating expense per GAAP Income Statement [2]								130,211		127,577					74,994		76,316					55,217		51,261


Total rental and other property revenues and property operating expense per GAAP Income Statement							$	307,907	$	310,563				$	146,608	$	147,165				$	161,299	$	163,398


[1]		Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville are considered part of the Other Florida market.

[2]		Includes: (i) noncontrolling interest partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP.



AIMCO 3rd Quarter 2009		Page 11

Supplemental Schedule 6(b)

Same Store Operating Results
Third Quarter 2009 Compared to Second Quarter 2009
(unaudited) (in thousands, except site and unit data)


																												Operating
					Effective		Revenue							Expenses							Net Operating Income							Margin			Occupancy						Rental Rates
	Properties		Units		Units		3Q 2009		2Q 2009		Growth			3Q 2009		2Q 2009		Growth			3Q 2009		2Q 2009		Growth			3Q 2009			3Q 2009			2Q 2009			3Q 2009		2Q 2009

Target Markets
Los Angeles		11		3,407		2,756	$	14,354	$	14,439		-0.6	%	$	4,866	$	4,993		-2.5	%	$	9,488	$	9,446		0.4	%		66.1	%		95.1	%		92.9	%	$	1,920	$	1,983
Orange County		3		443		373		1,341		1,345		-0.3	%		453		436		3.9	%		888		909		-2.3	%		66.2	%		94.8	%		94.3	%		1,179		1,190
San Diego		4		1,622		1,552		5,692		5,551		2.5	%		1,621		1,583		2.4	%		4,071		3,968		2.6	%		71.5	%		95.0	%		93.5	%		1,189		1,175

Southern CA Total		18		5,472		4,681		21,387		21,335		0.2	%		6,940		7,012		-1.0	%		14,447		14,323		0.9	%		67.6	%		95.0	%		93.2	%		1,644		1,678
East Bay		2		413		353		1,337		1,362		-1.8	%		650		613		6.0	%		687		749		-8.3	%		51.4	%		91.3	%		92.5	%		1,241		1,255
San Francisco		3		600		600		2,747		2,774		-1.0	%		1,031		960		7.4	%		1,716		1,814		-5.4	%		62.5	%		94.7	%		92.8	%		1,495		1,539

Northern CA Total		5		1,013		953		4,084		4,136		-1.3	%		1,681		1,573		6.9	%		2,403		2,563		-6.2	%		58.8	%		93.3	%		92.7	%		1,394		1,423
Seattle		2		278		175		594		594		0.0	%		313		289		8.3	%		281		305		-7.9	%		47.3	%		95.0	%		87.4	%		1,109		1,174

Pacific Total		25		6,763		5,809		26,065		26,065		0.0	%		8,934		8,874		0.7	%		17,131		17,191		-0.3	%		65.7	%		94.8	%		92.9	%		1,585		1,621

Suburban New York — New Jersey		6		1,802		1,503		5,587		5,643		-1.0	%		2,004		1,952		2.7	%		3,583		3,691		-2.9	%		64.1	%		94.6	%		92.1	%		1,184		1,214
Washington — NoVA — MD		15		6,711		6,288		23,234		23,110		0.5	%		8,075		7,325		10.2	%		15,159		15,785		-4.0	%		65.2	%		96.3	%		94.9	%		1,204		1,213
Boston		11		4,147		4,147		14,763		14,661		0.7	%		5,308		5,508		-3.6	%		9,455		9,153		3.3	%		64.0	%		96.4	%		94.5	%		1,173		1,191
Philadelphia		4		1,791		1,523		5,928		5,926		0.0	%		2,128		2,292		-7.2	%		3,800		3,634		4.6	%		64.1	%		92.8	%		90.3	%		1,259		1,277

Northeast Total		36		14,451		13,461		49,512		49,340		0.3	%		17,515		17,077		2.6	%		31,997		32,263		-0.8	%		64.6	%		95.7	%		93.9	%		1,199		1,214

Miami		6		2,472		2,349		11,898		11,959		-0.5	%		5,608		3,775		48.6	%		6,290		8,184		-23.1	%		52.9	%		95.7	%		91.8	%		1,577		1,647
Palm Beach/Fort Lauderdale [1]		7		2,171		2,021		6,062		6,144		-1.3	%		2,669		2,564		4.1	%		3,393		3,580		-5.2	%		56.0	%		95.7	%		95.1	%		946		960
Orlando [1]		9		2,356		2,139		5,026		4,966		1.2	%		2,130		2,305		-7.6	%		2,896		2,661		8.8	%		57.6	%		95.4	%		92.3	%		723		746
Tampa [1]		9		2,635		2,319		5,800		5,730		1.2	%		2,392		2,485		-3.7	%		3,408		3,245		5.0	%		58.8	%		96.8	%		92.6	%		756		780
Jacksonville [1]		4		1,643		1,404		3,613		3,560		1.5	%		1,645		1,527		7.7	%		1,968		2,033		-3.2	%		54.5	%		96.4	%		94.7	%		795		807

Florida Total		35		11,277		10,232		32,399		32,359		0.1	%		14,444		12,656		14.1	%		17,955		19,703		-8.9	%		55.4	%		96.0	%		93.2	%		971		1,000
Houston		7		2,622		2,066		4,617		4,644		-0.6	%		2,209		1,933		14.3	%		2,408		2,711		-11.2	%		52.2	%		92.8	%		92.8	%		724		727
Denver		10		2,877		2,315		6,182		6,124		0.9	%		2,191		2,275		-3.7	%		3,991		3,849		3.7	%		64.6	%		95.2	%		93.6	%		787		797
Phoenix		15		3,839		3,443		6,888		6,949		-0.9	%		3,233		2,977		8.6	%		3,655		3,972		-8.0	%		53.1	%		92.8	%		91.1	%		626		650
Dallas — Fort Worth		4		1,005		824		1,894		1,865		1.6	%		1,021		862		18.4	%		873		1,003		-13.0	%		46.1	%		93.9	%		91.2	%		736		750
Atlanta		2		281		245		773		762		1.4	%		310		321		-3.4	%		463		441		5.0	%		59.9	%		97.3	%		90.8	%		945		994

Sunbelt Total		73		21,901		19,125		52,753		52,703		0.1	%		23,408		21,024		11.3	%		29,345		31,679		-7.4	%		55.6	%		94.9	%		92.7	%		847		868

Chicago		10		2,595		2,531		8,573		8,511		0.7	%		3,782		3,573		5.8	%		4,791		4,938		-3.0	%		55.9	%		93.6	%		92.1	%		1,095		1,104

Total Target Markets		144		45,710		40,926		136,903		136,619		0.2	%		53,639		50,548		6.1	%		83,264		86,071		-3.3	%		60.8	%		95.0	%		93.1	%		1,082		1,103

Other
Austin		3		816		816		1,633		1,585		3.0	%		910		774		17.6	%		723		811		-10.9	%		44.3	%		90.8	%		85.0	%		656		686
Baltimore		3		701		628		2,113		2,035		3.8	%		849		816		4.0	%		1,264		1,219		3.7	%		59.8	%		96.1	%		94.5	%		1,099		1,094
Indianapolis/Fort Wayne		8		4,981		4,782		8,937		8,935		0.0	%		4,218		4,245		-0.6	%		4,719		4,690		0.6	%		52.8	%		93.3	%		92.2	%		584		592
Nashville		3		788		622		1,761		1,791		-1.7	%		773		776		-0.4	%		988		1,015		-2.7	%		56.1	%		95.5	%		93.8	%		867		879
Norfolk/Richmond		6		1,661		1,569		4,233		4,228		0.1	%		1,466		1,459		0.5	%		2,767		2,769		-0.1	%		65.4	%		96.5	%		94.7	%		846		853
Raleigh/Greenville		2		504		342		680		690		-1.4	%		309		326		-5.2	%		371		364		1.9	%		54.6	%		91.5	%		93.1	%		662		675
Other Markets		26		8,643		8,283		21,436		21,409		0.1	%		9,450		9,882		-4.4	%		11,986		11,527		4.0	%		55.9	%		94.3	%		92.0	%		810		827

Total Other		51		18,094		17,042		40,793		40,673		0.3	%		17,975		18,278		-1.7	%		22,818		22,395		1.9	%		55.9	%		94.1	%		92.2	%		755		767


SAME STORE SALES TOTALS		195		63,804		57,968		177,696		177,292		0.2	%		71,614		68,826		4.1	%		106,082		108,466		-2.2	%		59.7	%		94.8	%		92.8	%	$	990	$	1,008


Reconciliation to total rental and other property revenues and property operating expense per GAAP Income Statement [2]								130,211		130,818					74,994		67,604					55,217		63,214


Total rental and other property revenues and property operating expense per GAAP Income Statement							$	307,907	$	308,110				$	146,608	$	136,430				$	161,299	$	171,680


[1]		Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville are considered part of the Other Florida market.

[2]		Includes: (i) noncontrolling interest partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP.



AIMCO 3rd Quarter 2009		Page 12

Supplemental Schedule 6(c)

Same Store Operating Results
Nine Months Ended September 30, 2009 Compared to Nine Months Ended September 30, 2008
(unaudited) (in thousands, except site and unit data)


																												Operating
							Revenue							Expenses							Net Operating Income							Margin			Occupancy						Rental Rates
	Properties		Units		Effective Units		YTD 3Q 2009		YTD 3Q 2008		Growth			YTD 3Q 2009		YTD 3Q 2008		Growth			YTD 3Q 2009		YTD 3Q 2008		Growth			YTD 3Q 2009			YTD 3Q 2009			YTD 3Q 2008			YTD 3Q 2009		YTD 3Q 2008

Target Markets
Los Angeles		11		3,407		2,756	$	43,650	$	46,925		-7.0	%	$	14,681	$	14,771		-0.6	%	$	28,969	$	32,154		-9.9	%		66.4	%		94.0	%		95.8	%	$	1,978	$	2,091
Orange County		3		443		373		4,062		4,204		-3.4	%		1,352		1,411		-4.2	%		2,710		2,793		-3.0	%		66.7	%		95.1	%		97.9	%		1,189		1,190
San Diego		4		1,622		1,552		16,924		16,886		0.2	%		4,828		5,051		-4.4	%		12,096		11,835		2.2	%		71.5	%		94.4	%		95.9	%		1,186		1,167

Southern CA Total		18		5,472		4,681		64,636		68,015		-5.0	%		20,861		21,233		-1.8	%		43,775		46,782		-6.4	%		67.7	%		94.2	%		96.0	%		1,678		1,743
East Bay		2		413		353		4,115		4,392		-6.3	%		1,823		1,800		1.3	%		2,292		2,592		-11.6	%		55.7	%		92.7	%		97.0	%		1,255		1,267
San Francisco		2		522		522		7,394		7,488		-1.3	%		2,605		2,534		2.8	%		4,789		4,954		-3.3	%		64.8	%		94.9	%		96.5	%		1,546		1,557

Northern CA Total		4		935		875		11,509		11,880		-3.1	%		4,428		4,334		2.2	%		7,081		7,546		-6.2	%		61.5	%		93.9	%		96.7	%		1,419		1,429
Seattle		1		174		109		1,066		1,142		-6.7	%		488		375		30.1	%		578		767		-24.6	%		54.2	%		90.5	%		98.4	%		1,074		1,085

Pacific Total		23		6,581		5,665		77,211		81,037		-4.7	%		25,777		25,942		-0.6	%		51,434		55,095		-6.6	%		66.6	%		94.0	%		96.2	%		1,626		1,680

Suburban New York — New Jersey		6		1,802		1,503		16,940		17,736		-4.5	%		5,924		6,118		-3.2	%		11,016		11,618		-5.2	%		65.0	%		93.5	%		96.7	%		1,207		1,228
Washington — NoVA — MD		13		5,314		5,260		57,263		57,526		-0.5	%		17,983		17,613		2.1	%		39,280		39,913		-1.6	%		68.6	%		95.7	%		96.7	%		1,187		1,184
Boston		11		4,147		4,147		44,176		44,488		-0.7	%		16,423		15,938		3.0	%		27,753		28,550		-2.8	%		62.8	%		95.2	%		96.1	%		1,185		1,183
Philadelphia		4		1,791		1,523		18,073		18,550		-2.6	%		6,703		6,774		-1.0	%		11,370		11,776		-3.4	%		62.9	%		91.9	%		95.7	%		1,272		1,260

Northeast Total		34		13,054		12,433		136,452		138,300		-1.3	%		47,033		46,443		1.3	%		89,419		91,857		-2.7	%		65.5	%		94.7	%		96.4	%		1,200		1,200

Miami		6		2,472		2,349		36,090		37,997		-5.0	%		14,862		16,389		-9.3	%		21,228		21,608		-1.8	%		58.8	%		93.6	%		93.1	%		1,628		1,735
Palm Beach/Fort Lauderdale [1]		7		2,171		2,021		18,297		18,034		1.5	%		7,678		7,453		3.0	%		10,619		10,581		0.4	%		58.0	%		95.4	%		93.5	%		959		987
Orlando [1]		9		2,356		2,139		14,921		15,637		-4.6	%		6,648		7,214		-7.8	%		8,273		8,423		-1.8	%		55.4	%		92.6	%		92.1	%		745		802
Tampa [1]		8		2,359		2,146		15,849		16,349		-3.1	%		6,732		6,973		-3.5	%		9,117		9,376		-2.8	%		57.5	%		94.1	%		94.2	%		768		814
Jacksonville [1]		1		144		144		1,174		1,167		0.6	%		499		540		-7.6	%		675		627		7.7	%		57.5	%		95.3	%		92.8	%		847		895

Florida Total		31		9,502		8,799		86,331		89,184		-3.2	%		36,419		38,569		-5.6	%		49,912		50,615		-1.4	%		57.8	%		93.9	%		93.2	%		1,031		1,091
Houston		7		2,622		2,066		14,024		13,584		3.2	%		6,098		5,844		4.3	%		7,926		7,740		2.4	%		56.5	%		93.7	%		93.4	%		724		706
Denver		10		2,877		2,315		18,467		18,647		-1.0	%		6,584		6,829		-3.6	%		11,883		11,818		0.6	%		64.3	%		94.5	%		97.1	%		795		779
Phoenix		15		3,839		3,443		20,929		22,533		-7.1	%		9,212		9,888		-6.8	%		11,717		12,645		-7.3	%		56.0	%		92.0	%		95.7	%		646		674
Dallas — Fort Worth		4		1,005		824		5,647		5,588		1.1	%		2,744		2,854		-3.9	%		2,903		2,734		6.2	%		51.4	%		92.5	%		93.8	%		745		732
Atlanta		2		281		245		2,293		2,298		-0.2	%		902		877		2.9	%		1,391		1,421		-2.1	%		60.7	%		93.1	%		93.3	%		984		1,009

Sunbelt Total		69		20,126		17,692		147,691		151,834		-2.7	%		61,959		64,861		-4.5	%		85,732		86,973		-1.4	%		58.0	%		93.5	%		94.3	%		870		896

Chicago		10		2,595		2,531		25,694		25,726		-0.1	%		11,054		10,344		6.9	%		14,640		15,382		-4.8	%		57.0	%		92.9	%		94.4	%		1,102		1,091

Total Target Markets		136		42,356		38,321		387,048		396,897		-2.5	%		145,823		147,590		-1.2	%		241,225		249,307		-3.2	%		62.3	%		93.9	%		95.2	%		1,104		1,126

Other
Austin		3		816		816		4,878		5,177		-5.8	%		2,693		2,428		10.9	%		2,185		2,749		-20.5	%		44.8	%		87.8	%		94.0	%		680		684
Baltimore		3		701		628		6,336		6,375		-0.6	%		2,544		2,543		0.0	%		3,792		3,832		-1.0	%		59.8	%		94.8	%		95.2	%		1,096		1,095
Indianapolis/Fort Wayne		8		4,981		4,782		26,871		26,932		-0.2	%		12,437		12,134		2.5	%		14,434		14,798		-2.5	%		53.7	%		93.1	%		94.3	%		589		584
Nashville		3		788		622		5,324		5,349		-0.5	%		2,239		2,181		2.7	%		3,085		3,168		-2.6	%		57.9	%		94.4	%		95.8	%		878		883
Norfolk/Richmond		6		1,661		1,569		12,635		12,720		-0.7	%		4,375		4,367		0.2	%		8,260		8,353		-1.1	%		65.4	%		94.9	%		94.9	%		852		858
Raleigh/Greenville		2		504		342		2,076		2,118		-2.0	%		950		988		-3.8	%		1,126		1,130		-0.4	%		54.2	%		93.0	%		94.6	%		673		686
Other Markets		24		8,497		8,137		63,641		64,365		-1.1	%		29,031		28,581		1.6	%		34,610		35,784		-3.3	%		54.4	%		92.9	%		93.4	%		826		843

Total Other		49		17,948		16,896		121,761		123,036		-1.0	%		54,269		53,222		2.0	%		67,492		69,814		-3.3	%		55.4	%		93.0	%		94.0	%		765		772


SAME STORE SALES TOTALS		185		60,304		55,217		508,809		519,933		-2.1	%		200,092		200,812		-0.4	%		308,717		319,121		-3.3	%		60.7	%		93.7	%		94.9	%	$	1,004	$	1,021


Reconciliation to total rental and other property revenues and property operating expense per GAAP Income Statement [2]								416,554		398,839					226,166		229,354					190,388		169,485


Total rental and other property revenues and property operating expense per GAAP Income Statement							$	925,363	$	918,772				$	426,258	$	430,166				$	499,105	$	488,606


[1]		Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville are considered part of the Other Florida market.

[2]		Includes: (i) noncontrolling interest partners’ share of consolidated less Aimco’s share of unconsolidated property revenues and property operating expenses (at current period ownership); (ii) property revenues and property operating expenses related to other consolidated entities; (iii) and elimination and other adjustments made in accordance with GAAP.



AIMCO 3rd Quarter 2009		Page 13

Supplemental Schedule 7

Total Conventional Portfolio Data by Market
(unaudited)


	Quarter Ended September 30, 2009														Quarter Ended September 30, 2008
	Properties		Units		Ownership			Effective Units		% AIV NOI			Average Rent		Properties		Units		Ownership			Effective Units		% AIV NOI			Average Rent
Target Markets
Los Angeles		16		4,261		85	%		3,610		9.6	%	$	1,999		16		4,261		86	%		3,679		8.9	%	$	2,174
Orange County		4		1,213		94	%		1,143		2.3	%		1,522		4		1,213		94	%		1,143		1.9	%		1,626
San Diego		6		2,144		97	%		2,074		3.9	%		1,218		6		2,144		97	%		2,074		3.1	%		1,211

Southern CA Total		26		7,618		90	%		6,827		15.8	%		1,704		26		7,618		91	%		6,896		13.9	%		1,817

East Bay		2		413		85	%		353		0.5	%		1,241		2		413		85	%		353		0.5	%		1,276
San Francisco		6		773		100	%		773		1.5	%		1,493		6		773		100	%		773		1.3	%		1,517
San Jose		1		224		100	%		224		0.5	%		1,561		1		224		100	%		224		0.4	%		1,676

Northern CA Total		9		1,410		96	%		1,350		2.5	%		1,431		9		1,410		96	%		1,350		2.2	%		1,469
Seattle		3		413		75	%		309		0.5	%		1,230		3		348		58	%		203		0.3	%		1,149

Pacific Total		38		9,441		90	%		8,486		18.8	%		1,643		38		9,376		90	%		8,449		16.4	%		1,739


Manhattan		22		957		100	%		955		3.5	%		2,776		22		956		100	%		954		2.9	%		2,560
Suburban New York / New Jersey		7		2,637		89	%		2,338		3.8	%		1,175		8		3,413		87	%		2,978		4.1	%		1,185

New York Total		29		3,594		92	%		3,293		7.3	%		1,599		30		4,369		90	%		3,932		7.0	%		1,498

Washington — NoVA — MD		18		7,411		94	%		6,989		12.0	%		1,184		18		6,190		98	%		6,071		10.4	%		1,188
Boston		12		4,250		100	%		4,250		7.0	%		1,184		12		4,251		100	%		4,251		5.9	%		1,178
Philadelphia		7		3,886		91	%		3,539		5.9	%		1,249		9		4,432		92	%		4,085		5.4	%		1,250

Northeast Total		66		19,141		94	%		18,071		32.2	%		1,274		69		19,242		95	%		18,339		28.7	%		1,269


Miami		5		2,471		95	%		2,348		4.5	%		1,577		6		2,674		92	%		2,448		4.3	%		1,652
Palm Beach/Fort Lauderdale [1]		7		2,171		93	%		2,020		2.4	%		946		9		2,627		94	%		2,478		2.5	%		988
Orlando [1]		11		3,324		91	%		3,032		3.0	%		750		14		3,888		92	%		3,596		2.6	%		801
Tampa [1]		9		2,635		88	%		2,318		2.4	%		756		13		3,625		90	%		3,275		2.7	%		810
Jacksonville [1]		4		1,643		85	%		1,404		1.4	%		795		6		2,235		89	%		1,996		1.4	%		812

Florida Total		36		12,244		91	%		11,122		13.7	%		960		48		15,049		92	%		13,793		13.5	%		992
Houston		9		3,140		82	%		2,583		2.0	%		729		20		5,798		86	%		4,983		3.3	%		679
Denver		10		2,877		80	%		2,315		2.9	%		787		10		2,877		80	%		2,315		2.3	%		791
Phoenix		19		4,938		90	%		4,430		3.3	%		644		20		5,164		90	%		4,658		3.1	%		694
Dallas — Fort Worth		4		1,005		82	%		823		0.6	%		736		9		2,090		84	%		1,753		1.1	%		712
Atlanta		8		1,795		80	%		1,435		1.5	%		884		11		3,005		83	%		2,484		1.9	%		865

Sunbelt Total		86		25,999		87	%		22,708		24.0	%		842		118		33,983		88	%		29,986		25.2	%		847


Chicago		17		5,035		94	%		4,750		6.7	%		1,113		19		5,559		93	%		5,160		5.6	%		1,103

Total Target Markets		207		59,616		91	%		54,015		81.7	%		1,132		244		68,160		91	%		61,934		75.9	%		1,111


Other
Austin		3		816		100	%		816		0.5	%		656		7		1,497		100	%		1,497		1.1	%		729
Baltimore		5		1,180		84	%		993		1.3	%		1,045		5		1,180		84	%		993		1.1	%		1,062
Cincinnati		2		505		80	%		405		0.6	%		1,214		4		1,135		81	%		922		0.9	%		957
Colorado Springs CO		—		—		—			—		—			—		3		714		92	%		654		0.5	%		668
Indianapolis / Ft Wayne		8		4,981		96	%		4,782		3.3	%		584		17		7,924		97	%		7,724		4.3	%		579
Inland Empire		3		574		89	%		513		0.5	%		845		3		574		90	%		515		0.5	%		868
Michigan [2]		6		3,862		94	%		3,643		2.9	%		648		7		4,149		82	%		3,420		2.3	%		661
Minneapolis		2		732		89	%		651		1.6	%		1,525		2		732		89	%		651		1.4	%		1,542
Nashville		4		1,114		75	%		840		1.0	%		875		7		2,192		83	%		1,811		1.6	%		807
Non-Target Florida [2]		10		2,204		100	%		2,204		1.8	%		670		11		2,404		98	%		2,358		1.6	%		731
Norfolk / Richmond		7		2,075		96	%		1,983		2.8	%		917		10		2,775		91	%		2,529		2.9	%		928
Providence RI		2		708		100	%		708		1.1	%		1,102		3		948		100	%		948		1.1	%		1,108
Raleigh / Greenville		4		870		75	%		655		0.4	%		657		9		2,383		76	%		1,810		1.1	%		678
Other Markets [2]		3		601		74	%		442		0.5	%		880		27		5,975		82	%		4,923		3.7	%		688

Total Other [3]		59		20,222		92	%		18,635		18.3	%		774		115		34,582		89	%		30,755		24.1	%		745


Grand Total		266		79,838		91	%		72,650		100.0	%	$	1,042		359		102,742		90	%		92,689		100.0	%	$	987


[1]		Palm Beach/Fort Lauderdale, Orlando, Tampa and Jacksonville are considered part of the Other Florida market.

[2]		Michigan, Non-Target Florida and Other Markets include properties in multiple markets.

[3]		For the quarters ended September 30, 2009 and 2008, Aimco’s conventional portfolio included assets in 19 and 22 markets, respectively, in which Aimco invests on an opportunistic basis or that Aimco intends to exit.



AIMCO 3rd Quarter 2009		Page 14

Supplemental Schedule 8

Property Sales and Acquisition Activity
(unaudited)

THIRD QUARTER 2009 PROPERTY SALES ACTIVITY (dollars in millions, except average rent)


	Number		Number											Aimco		Aimco		Aimco
	of		of		Gross		Cap			Property		Net Sales		Gross		Net		Average
	Properties		Units		Proceeds		Rate [1]			Debt		Proceeds [2]		Proceeds		Proceeds		Rent

Conventional [3]		21		6,031	$	319.1		8.2	%	$	180.2	$	117.0	$	269.6	$	107.8	$	753
Affordable		7		777		47.5		5.8	%		23.1		20.8		28.0		17.2		773

Total Dispositions		28		6,808	$	366.6		7.9	%	$	203.3	$	137.8	$	297.6	$	125.0	$	755

YEAR-TO-DATE 2009 PROPERTY SALES ACTIVITY (dollars in millions, except average rent) [4]


	Number		Number											Aimco		Aimco		Aimco
	of		of		Gross		Cap			Property		Net Sales		Gross		Net		Average
	Properties		Units		Proceeds		Rate [1]			Debt		Proceeds [2]		Proceeds		Proceeds		Rent

Conventional [5]		45		12,292	$	650.8		7.9	%	$	371.5	$	226.2	$	568.1	$	212.1	$	752
Affordable		13		1,593		90.2		6.1	%		46.4		36.8		47.6		32.1		789

Total Dispositions		58		13,885	$	741.0		7.7	%	$	417.9	$	263.0	$	615.7	$	244.2	$	756


[1]		Cap Rate is calculated based on the trailing twelve month NOI prior to sale, less a 5% management fee and a $300 per unit deduction for capital replacements, divided by the gross proceeds.

[2]		Net Sales Proceeds are after repayment of existing debt, net working capital settlements, payment of transaction costs and prepayment penalties.

[3]		The following table presents selected market information regarding the conventional dispositions during the third quarter 2009:


Market	Properties		Units
Target Markets:
Chicago		1		320
Dallas-Fort Worth		2		392
Houston		6		1,692
Miami		1		203
Phoenix		1		226
Suburban New York/New Jersey		1		776
Tampa		2		672
Palm Beach		1		260

Total Target Markets		15		4,541
Other:
Colorado Springs		2		514
Raleigh/Greenville		2		528
Nashville		1		248
Non-Target Florida		1		200

Total Other		6		1,490

Total Conventional Dispositions		21		6,031


[4]		Year-to-date property sales activity does not include a land sale with total Aimco net proceeds of $1.6 million.

[5]		Year-to-date property sales include one unconsolidated property consisting of 480 units, which generated Aimco gross proceeds of $8.8 million and net proceeds of $3.4 million.

YEAR-TO-DATE 2009 PROPERTY ACQUISITION ACTIVITY

There were no property acquisitions during the nine months ended September 30, 2009.



AIMCO 3rd Quarter 2009		Page 15

Supplemental Schedule 9

Capital Expenditures
Nine Months Ended September 30, 2009
(in thousands, except per unit data)
(unaudited)

All capital spending is classified as either Capital Replacements (“CR”), Capital Improvements (“CI”), casualties or redevelopment. Non-redevelopment and non-casualty capitalizable expenditures are apportioned between CR and CI based on the useful life of the capital item under consideration and the period Aimco has owned the property (i.e., the portion that was consumed during Aimco’s ownership of the item represents CR; the portion of the item that was consumed prior to Aimco’s ownership represents CI). See the Glossary for further descriptions.

The table below details Aimco’s share of actual spending, on both consolidated and unconsolidated real estate partnerships, for Capital Replacements, Capital Improvements, casualties and redevelopment for the nine months ended September 30, 2009. Per unit numbers are based on approximately 98,112 average units, including 82,032 conventional and 16,080 affordable units. Average units are weighted for the period and represent Effective Units excluding non-managed units. [1]


	Aimco’s Share of			Per Effective
	Expenditures			Unit
Capital Replacements Detail:
Building and grounds	$	24,689		$	252
Turnover related		23,503			240
Capitalized site payroll and indirect costs		5,846			60


Total Aimco’s share of Capital Replacements	$	54,038		$	552


Capital Replacements:
Conventional	$	50,138		$	611
Affordable		3,900		$	243

Total Aimco’s share of Capital Replacements		54,038		$	552


Capital Improvements:
Conventional		37,180		$	453
Affordable		3,618		$	225

Total Aimco’s share of Capital Improvements		40,798		$	416


Casualties:
Conventional		10,735
Affordable		217

Total Aimco’s share of Casualties [2]		10,952


Redevelopment (see Schedule 10) [3]:
Conventional projects [4]		55,526
Tax Credit projects [5]		41,851

Total Aimco’s share of Redevelopment		97,377


Total Aimco’s share of capital expenditures		203,165


Plus noncontrolling interest partners’ share of consolidated spending		15,223
Less Aimco’s share of unconsolidated spending		(497	)


Capital expenditures per consolidated statement of cash flows	$	217,891


[1]		Average units calculated pro rata for the period based on acquisition and disposition timing.

[2]		A portion of expenditures related to casualty losses is reimbursed through insurance.

[3]		Redevelopment expenditures for conventional and tax credit projects may include costs related to pre-construction or other activities on projects other than those included as active on Schedule 10. Therefore the total costs presented on this schedule may exceed those included as Aimco’s share on Schedule 10.

[4]		Conventional redevelopment projects include Lincoln Place (CA) and Pacific Bay Vistas (formerly Treetops) (CA), which are predominantly vacant and have September 30, 2009 net book values of $128.3 million and $31.7 million, respectively.

[5]		Redevelopment spending on tax credit projects is substantially funded from tax credit investor contributions.



AIMCO 3rd Quarter 2009		Page 16

Supplemental Schedule 10

Summary of Redevelopment Activity
Nine Months Ended September 30, 2009
(dollars in millions)
(unaudited)


										Actual Expenditures
													Nine Months Ended
	Number of			Number of			Total Estimated			Inception to			September 30, 2009
	Properties			Units			Expenditures [1]			Date			Actual Amount		Aimco’s Share

CONVENTIONAL REDEVELOPMENT PROJECTS
Active redevelopment projects at December 31, 2008		37			13,553		$	594.8		$	532.1		$	48.2	$	45.5
Changes in project scope and estimated costs		—			—			(40.3	)[2]		—			—		—

Redevelopment expenditures during period		37			13,553			554.5			532.1			48.2		45.5

Projects completed during period		(21	)		(6,543	)		(246.0	)		(246.0	)

Active redevelopment projects at September 30, 2009 [3]		16			7,010			308.5			286.1


TAX CREDIT REDEVELOPMENT PROJECTS
Active redevelopment projects at December 31, 2008		4			528		$	38.8		$	36.1		$	19.0	$	18.7
New redevelopment projects started during period		3			546			21.1			12.1			12.1		12.1
Changes in estimated costs		—			—			4.0			—			—		—

Redevelopment expenditures during period		7			1,074			63.9			48.2			31.1		30.8

Projects completed during period		(3	)		(229	)		(13.4	)		(13.1	)

Active redevelopment projects at September 30, 2009		4			845			50.5			35.1


TOTAL ACTIVE REDEVELOPMENT PROJECTS		20			7,855		$	359.0		$	321.2


YEAR-TO-DATE REDEVELOPMENT EXPENDITURES													$	79.3	$	76.3


[1]		Represents the forecasted total expenditures anticipated to be incurred in a redevelopment project.

[2]		During 2009, Aimco elected not to complete portions of previously planned projects resulting in a reduction in estimated costs.

[3]		Targeted return on investment in Conventional Redevelopment projects is 7.5% — 8.5%.



AIMCO 3rd Quarter 2009		Page 17

Supplemental Schedule 11

Aimco Capital
(in thousands, unaudited)

Investment Management Income


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008

Current asset management fees [1]	$	994		$	1,286		$	3,117		$	3,068
Deferred asset management fees [2]		—			146			—			674
Promotes		—			16,934			1,549			48,579
Other GP transactional fees		1,931			6,637			5,213			8,402

Total asset management revenues		2,925			25,003			9,879			60,723

Tax credit syndication fees [3]		—			—			—			1,425
Deferred tax credit income [4]		7,825			7,752			23,900			21,634

Total tax credit revenues		7,825			7,752			23,900			23,059

Total asset management and tax credit revenues		10,750			32,755			33,779			83,782

Accretion on discounted notes receivable [5]		210			1,162			691			(1,008	)
Land and other investment gains		—			1,669			3,873			1,669
Other portfolio management revenue [6]		1,481			1,587			4,421			5,570

Total portfolio management revenue		1,691			4,418			8,985			6,231

Total investment management revenues		12,441			37,173			42,764			90,013

Investment management expenses		(4,213	)		(7,850	)		(12,719	)		(18,044	)

Net investment management income (pre-tax)		8,228			29,323			30,045			71,969
Income taxes [7]		(2,251	)		(1,666	)		(6,999	)		(6,408	)

Net investment management income (after tax)	$	5,977		$	27,657		$	23,046		$	65,561

Summary of Projected Tax Credit Income


	Remainder			Year Ending December 31,
	2009			2010			2011			2012			2013			Thereafter			Total
Amortization of deferred income [8]	$	7,496		$	29,735		$	29,111		$	29,116		$	27,705		$	95,280		$	218,443
Income taxes [9]		(2,923	)		(11,597	)		(11,353	)		(11,355	)		(10,805	)		(37,159	)		(85,192	)

Projected income, net of tax	$	4,573		$	18,138		$	17,758		$	17,761		$	16,900		$	58,121		$	133,251


[1]		Current asset management fees represent income earned in exchange for asset management services provided to third parties.

[2]		Deferred asset management fees represent asset management fees earned in prior periods, the collectibility of which was deemed uncertain, and such fees were therefore deferred. Fees are recognized in income when collectibility is probable and reasonably estimable as a result of a completed or pending transaction which generates a reliable source of payment.

[3]		Aimco receives a fee for the syndication of tax credit partnerships which is earned and paid upon completion of the syndication.

[4]		Aimco earns tax credit income in connection with the transfer of tax credits to tax credit investors, a significant portion of which is paid simultaneously with the completion of the syndication. The balance is generally paid within 12 to 24 months. Tax credit income is recognized as tax credits are delivered to the investors, generally over a period of ten years. See Summary of Projected Tax Credit Income.

[5]		Aimco holds certain loans extended by predecessors whose positions were generally acquired at a discount. Interest income on these discounted notes is recognized at such time when the collectibility of the income is probable and reasonably estimable as a result of a completed or pending transaction which generates a reliable source of repayment. Accretion on discounted notes receivable is included in interest income in Aimco’s consolidated statements of income. During the nine months ended September 30, 2009 and 2008, Aimco revised its estimate of the timing and amount of payment on certain discounted notes and as a result recorded adjustments totaling $0.8 million and $4.0 million, respectively, to accretion income.

[6]		Other portfolio management income during 2009 and 2008 includes interest income received under total rate of return swaps, which is included in interest expense in Aimco’s consolidated statements of income.

[7]		Investment management income is earned in part by Aimco’s taxable REIT subsidiaries. The effective tax rate varies from period to period based on the portion of total income earned by taxable REIT subsidiaries. Income taxes are recalculated each period.

[8]		Amortization of deferred income represents the periodic recognition of deferred revenue and costs relating to Aimco’s existing tax credit arrangements. Deferred income is recognized as the related low income housing tax credits and other tax benefits are delivered to tax credit investors. Deferred revenue reflects cash received but not yet recognized as revenue, and cash expected to be received from investors in the future under conditional capital contribution commitments. The amounts to be received in the future are subject to adjustment based on the amounts of tax benefits actually delivered to investors and Aimco’s compliance with applicable regulations and other conditions. Deferred costs reflect costs incurred in structuring these arrangements. The timing of income recognition is subject to change based on the timing of delivery of tax benefits, which timing may be affected by factors related to the development, operations and financing of the related properties.

[9]		An effective income tax rate of 39% is assumed. For GAAP and FFO purposes, income taxes are recognized concurrent with the amortization of deferred income.



AIMCO 3rd Quarter 2009		Page 18

Supplemental Schedule 12

Apartment Unit Summary
As of September 30, 2009
(unaudited)


	Number of		Number of		Effective		Average
	Properties		Units		Units		Ownership
Conventional Real Estate Portfolio:
Wholly-owned consolidated properties		184		55,030		55,030		100	%
Partially-owned consolidated properties		80		25,808		18,620		72	%
Partially-owned unconsolidated properties		2		1,304		455		35	%

Total		266		82,142		74,105		90	%


Affordable Real Estate Portfolio:
Wholly-owned consolidated properties		87		12,088		12,088		100	%
Partially-owned consolidated properties		107		11,375		3,502		31	%
Partially-owned unconsolidated properties		77		7,353		1,135		15	%

Total		271		30,816		16,725		54	%


Total Owned Real Estate Portfolio:
Wholly-owned consolidated properties		271		67,118		67,118		100	%
Partially-owned consolidated properties		187		37,183		22,122		59	%
Partially-owned unconsolidated properties		79		8,657		1,590		18	%

Total		537		112,958		90,830		80	%


Management Contracts:
Property-managed for third parties		24		2,165
Asset-managed		355		31,458

Total		379		33,623

Total Portfolio		916		146,581



AIMCO 3rd Quarter 2009		Page 19

GLOSSARY OF NON-GAAP FINANCIAL AND OPERATING MEASURES: Financial and operating measures found in the Earnings Release and 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 of America, or GAAP. These measures are defined below and, where appropriate, reconciled on the accompanying Supplemental Schedules to the most comparable GAAP measures.

ACQUISITION PROPERTIES: Properties that have not reached a stabilized level of occupancy during both the current and comparable prior year period.

ADJUSTED FUNDS FROM OPERATIONS (AFFO): AFFO is FFO (diluted) less Capital Replacement expenditures, plus non-cash charges for preferred stock redemption related costs and operating real estate impairment losses, all of which are adjusted for the Aimco Operating Partnership’s share. Similar to FFO, AFFO is helpful to investors in understanding Aimco’s performance because it captures 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. Please see Supplemental Schedule 1 for AFFO data reconciled to net income (loss) attributable to common stockholders as determined in accordance with GAAP. There can be no assurance that Aimco’s method for computing AFFO is comparable with that of other real estate investment trusts.

AFFORDABLE PROPERTIES: Affordable properties benefit from government programs designed to pay rental income on behalf of people with low or moderate incomes and includes properties that were owned for all periods presented.

CAPITAL IMPROVEMENTS (CI): CI expenditures include all non-redevelopment capital expenditures that are made to enhance the value, profitability or useful life of an asset from its original purchase condition.

CAPITAL REPLACEMENTS (CR): CR expenditures do not increase the value, profitability or useful life of an asset from its original purchase condition. They represent the share of expenditures that are deemed to replace the consumed portion of acquired capital assets. CR expenditures are deducted in the calculation of AFFO. Please refer to Supplemental Schedule 9 for further detail.

CASUALTY CAPITAL EXPENDITURES: Casualty capital expenditures represent capitalized costs incurred in connection with casualty losses and are associated with the restoration of the asset. A portion of the restoration costs is reimbursed by insurance carriers based on deductibles associated with each loss.

DEBT SERVICE COVERAGE RATIO: As defined in Aimco’s credit agreement, the ratio of (a) Aimco’s adjusted total earnings before interest, taxes, depreciation and amortization (which excludes certain capital expenditure reserves) to (b) the actual debt service, for the four fiscal quarters preceding the date of calculation.

EFFECTIVE UNITS: Unit count at 100% ownership multiplied by Aimco’s ownership share.

FIXED CHARGE COVERAGE RATIO: As defined in Aimco’s credit agreement, the ratio of (a) Aimco’s adjusted total earnings before interest, taxes, depreciation and amortization (which excludes certain capital expenditure reserves) to (b) fixed charges, which represents the sum of total interest expense, amortization and dividends/distributions on preferred shares/units, for the four fiscal quarters preceding the date of calculation.

FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance defined by the National Association of Real Estate Investment Trusts (NAREIT) as net income, computed in accordance with GAAP, excluding gains from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Aimco computes FFO for all periods presented in accordance with the guidance set forth by NAREIT’s April 1, 2002 White Paper. Aimco calculates FFO (diluted) by subtracting preferred stock redemption related redemption related costs and dividends on preferred stock and adding back dividends/distributions on dilutive preferred securities. FFO is helpful to investors in understanding Aimco’s performance because it captures 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 is comparable with that of other real estate investment trusts. Please see Supplemental Schedule 1 for FFO data reconciled to net income (loss) attributable to Aimco common stockholders as determined in accordance with GAAP.

OTHER EXPENSES, NET: Other expenses, net includes franchise taxes, risk management activities related to our unconsolidated partnerships, certain other corporate expenses and partnership expenses (partnership level expenses incurred directly or indirectly for services such as audit, tax and legal).

OTHER PROPERTIES: Conventional properties that have significant rent control restrictions, university housing properties that have been owned for more than one year and properties that are not multi-family such as commercial properties or fitness facilities.

REDEVELOPMENT PROPERTIES: Properties where (1) a substantial number of available units have been vacated for major renovations or have not been stabilized in occupancy for at least one year as of the earliest period presented, or (2) other significant renovation, such as exteriors, common areas or unit improvements (done upon lease expirations), is underway or has been complete for less than one year, as of the earliest period presented. In both cases the properties have been removed from the Same Store portfolio.

SAME STORE: Same Store is used commonly to describe Conventional properties managed by Aimco, in which Aimco’s ownership exceeds 10% and that have reached a stabilized level of occupancy during both the current and comparable prior year period. Properties classified as held for sale are not included in Same Store. These results measure operating performance without variations caused by investment transactions. Aimco provides data for consolidated Same Store properties as well as its proportionate share of consolidated and unconsolidated Same Store properties. To ensure comparability, the information for all periods shown is based on current period ownership. Please see Supplemental Schedules 6a through 6b for Same Store data reconciled to rental and other property revenues and property operating expense as determined in accordance with GAAP.



AIMCO 3rd Quarter 2009		Page 20

Attached files

Stock widget

Investing forum

APARTMENT INVESTMENT & MANAGEMENT CO Reports