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8-K - FORM 8-K - Apartment Income REIT, L.P. | c05680e8vk.htm |
EX-23.1 - EXHIBIT 23.1 - Apartment Income REIT, L.P. | c05680exv23w1.htm |
Exhibit 99.1
Item 6. | Selected Financial Data |
The following selected financial data is based on our audited historical financial statements.
This information should be read in conjunction with such financial statements, including the notes
thereto, and Managements Discussion and Analysis of Financial Condition and Results of
Operations included herein or in previous filings with the Securities and Exchange Commission.
For the Years Ended December 31, | ||||||||||||||||||||
2009 (1) | 2008 (1) (2) | 2007 (1) | 2006 (1) | 2005 (1) | ||||||||||||||||
(dollar amounts in thousands, except per unit data) | ||||||||||||||||||||
OPERATING DATA: |
||||||||||||||||||||
Total revenues |
$ | 1,165,641 | $ | 1,213,170 | $ | 1,145,922 | $ | 1,057,177 | $ | 878,084 | ||||||||||
Total operating expenses (3) |
(1,061,474 | ) | (1,162,893 | ) | (967,670 | ) | (888,390 | ) | (739,863 | ) | ||||||||||
Operating income (3) |
104,167 | 50,277 | 178,252 | 168,787 | 138,221 | |||||||||||||||
Loss from continuing operations (3) |
(197,945 | ) | (119,747 | ) | (48,322 | ) | (41,653 | ) | (32,339 | ) | ||||||||||
Income from discontinued operations, net (4) |
153,965 | 747,535 | 174,577 | 331,635 | 162,149 | |||||||||||||||
Net (loss) income |
(43,980 | ) | 627,788 | 126,255 | 289,982 | 129,810 | ||||||||||||||
Net income attributable to noncontrolling interests |
(22,442 | ) | (155,749 | ) | (92,138 | ) | (92,917 | ) | (49,064 | ) | ||||||||||
Net income attributable to preferred unitholders |
(56,854 | ) | (61,354 | ) | (73,144 | ) | (90,527 | ) | (98,946 | ) | ||||||||||
Net (loss) income attributable to the
Partnerships common unitholders |
(123,276 | ) | 403,700 | (43,508 | ) | 104,592 | (22,458 | ) | ||||||||||||
Earnings (loss) per common unit basic and
diluted (5): |
||||||||||||||||||||
Loss from continuing operations attributable to
the Partnerships common unitholders |
$ | (1.75 | ) | $ | (1.99 | ) | $ | (1.40 | ) | $ | (1.47 | ) | $ | (1.32 | ) | |||||
Net (loss) income attributable to the
Partnerships common unitholders |
$ | (1.00 | ) | $ | 4.11 | $ | (0.42 | ) | $ | 0.99 | $ | (0.21 | ) | |||||||
BALANCE SHEET INFORMATION: |
||||||||||||||||||||
Real estate, net of accumulated depreciation |
$ | 6,861,752 | $ | 7,022,148 | $ | 6,798,023 | $ | 6,335,358 | $ | 5,639,660 | ||||||||||
Total assets |
7,922,139 | 9,456,721 | 10,631,746 | 10,305,903 | 10,031,761 | |||||||||||||||
Total indebtedness |
5,602,216 | 5,984,016 | 5,599,523 | 4,905,622 | 4,243,381 | |||||||||||||||
Total partners capital |
1,550,374 | 1,661,600 | 2,152,326 | 2,753,617 | 3,164,111 | |||||||||||||||
OTHER INFORMATION: |
||||||||||||||||||||
Distributions declared per common unit |
$ | 0.40 | $ | 7.48 | $ | 4.31 | $ | 2.40 | $ | 3.00 | ||||||||||
Total consolidated properties (end of period) |
426 | 514 | 657 | 703 | 619 | |||||||||||||||
Total consolidated apartment units (end of period) |
95,202 | 117,719 | 153,758 | 162,432 | 158,548 | |||||||||||||||
Total unconsolidated properties (end of period) |
77 | 85 | 94 | 102 | 264 | |||||||||||||||
Total unconsolidated apartment units (end of
period) |
8,478 | 9,613 | 10,878 | 11,791 | 35,269 | |||||||||||||||
Units managed (end of period) (6) |
31,974 | 35,475 | 38,404 | 42,190 | 46,667 |
(1) | Certain reclassifications have been made to conform to the June 30, 2010 financial
statement presentation, including retroactive adjustments to reflect
additional properties sold or classified as held for sale as of June 30, 2010, as
discontinued operations (see Note 13 to the consolidated financial statements in Item 8), and retroactive adjustments related to our January 1, 2009
adoption of the provisions of Financial Accounting Standards Board, or FASB, Statement of
Financial Accounting Standards No. 141(R), or SFAS 141(R), FASB Statement of Financial
Accounting Standards No. 160, or SFAS 160, and FASB Staff Position No. EITF 03-6-1, or FSP
EITF 03-6-1 (see Note 2 to the consolidated financial statements in Item 8). |
|
(2) | The consolidated statement of income for the year ended December 31, 2008, has been
restated to reclassify impairment losses on real estate development assets within operating
income. The reclassification reduced operating income by $91.1 million for the year ended
December 31, 2008, and had no effect on the reported amounts of loss from continuing
operations, net income, net income available to the Partnerships common unitholders or
earnings per unit. Additionally, the reclassification had no effect on the consolidated
balance sheets, statements of partners capital or statements of cash flows. See Note 2 to
the consolidated financial statements in Item 8. |
|
(3) | Total operating expenses, operating income and loss from continuing operations for the
year ended December 31, 2008, include a $91.1 million pre-tax provision for impairment
losses on real estate development assets, which is
discussed further in Managements Discussion and Analysis of Financial Condition and Results
of Operations in Item 7. |
(4) | Income from discontinued operations for the years ended December 31, 2009, 2008, 2007,
2006 and 2005 includes $221.8 million, $800.3 million, $117.6 million, $337.1 million and
$162.7 million in gains on disposition of real estate, respectively. Income from
discontinued operations for 2009, 2008 and 2007 is discussed further in Managements
Discussion and Analysis of Financial Condition and Results of Operations in Item 7. |
|
(5) | Weighted average common units, common OP unit equivalents, dilutive preferred
securities and earnings per unit amounts for each of the periods presented above have been
adjusted for our application during the fourth quarter 2009 of a change in accounting,
which requires the units issued in our special distributions paid in 2008 and January 2009
to be treated as issued and outstanding on the distribution payment dates for basic
purposes and as potential unit equivalents for the periods between the ex-dividend dates
and payment dates for diluted purposes, rather than treating the units as issued and
outstanding as of the beginning of the earliest period presented for both basic and diluted
purposes. See Note 2 to the consolidated financial statements in Item 8 for further
discussion of this accounting change. |
|
(6) | Units managed represents units in properties for which we provide asset management
services only, although in certain cases we may indirectly own generally less than one
percent of the economic interest in such properties through a partnership syndication or
other fund. |
Item 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations |
Executive Overview
We are a limited partnership engaged in the acquisition, ownership, management and
redevelopment of apartment properties. We are the operating partnership for Aimco, which is a
self-administered and self-managed real estate investment trust, or REIT. Our property operations
are characterized by diversification of product, location and price point. We primarily invest in
the 20 largest U.S. markets, as measured by total market capitalization, which is the total market
value of institutional-grade apartment properties in a particular market. We define these markets
as target markets and they possess the following characteristics: a high concentration of
population and apartment units; geographic and employment diversification; and historically strong
returns with reduced volatility as part of a diversified portfolio. We are one of the largest
owners and operators of apartment properties in the United States. As of December 31, 2009, we
owned or managed 870 apartment properties containing 135,654 units located in 44 states, the
District of Columbia and Puerto Rico. Our primary sources of income and cash are rents associated
with apartment leases.
The key financial indicators that we use in managing our business and in evaluating our
financial condition and operating performance are: NAV; Funds From Operations, or FFO; Adjusted
FFO, or AFFO, which is FFO less spending for Capital Replacements; same store property operating
results; net operating income; Free Cash Flow, which is net operating income less spending for
Capital Replacements; financial coverage ratios; and leverage as shown on our balance sheet. FFO
and Capital Replacements are defined and further described in the sections captioned Funds From
Operations and Capital Additions below. The key macro-economic factors and non-financial
indicators that affect our financial condition and operating performance are: household formations;
rates of job growth; single-family and multifamily housing starts; interest rates; and availability
and cost of financing.
Because our operating results depend primarily on income from our properties, the supply and
demand for apartments influences our operating results. Additionally, the level of expenses
required to operate and maintain our properties and the pace and price at which we redevelop,
acquire and dispose of our apartment properties affect our operating results. Our cost of capital
is affected by the conditions in the capital and credit markets and the terms that we negotiate for
our equity and debt financings.
During the challenging financial and economic environment in 2009, we focused on: serving and
retaining residents; continually improving our portfolio; reducing leverage and financial risk; and
simplifying our business model.
We are focused on owning and operating B/B+ quality apartments concentrated in our target
markets. We intend to upgrade the quality of our portfolio through the sale of approximately 5% to
10% of our portfolio annually, with the proceeds generally used to increase our allocation of
capital to well located properties within our target markets through capital investments,
redevelopment or acquisitions.
The following discussion and analysis of the results of our operations and financial condition
should be read in conjunction with the accompanying consolidated financial statements in Item 8.
2
Results of Operations
Overview
2009 compared to 2008
We reported net loss attributable to the Partnership of $66.4 million and net loss
attributable to the Partnerships common unitholders of $123.3 million for the year ended December
31, 2009, compared to net income attributable to the Partnership of $472.0 million and net income
attributable to the Partnerships common unitholders of $403.7 million for the year ended December
31, 2008, decreases of $538.4 million and $527.0 million, respectively. These decreases were
principally due to the following items, all of which are discussed in further detail below:
| a decrease in income from discontinued operations, primarily related to our sale of
fewer assets in 2009 and the recognition of lower gains on sales as compared to 2008; |
| a decrease in gain on dispositions of unconsolidated real estate and other, primarily
due to a large gain on the sale of an interest in an unconsolidated real estate partnership
in 2008; |
| an increase in depreciation and amortization expense, primarily related to completed
redevelopments and capital additions placed in service for partial periods during 2008 or 2009; and |
| a decrease in asset management and tax credit revenues, primarily due to a reduction in
promote income, which is income earned in connection with the disposition of properties
owned by our consolidated joint ventures. |
The effects of these items on our operating results were partially offset by:
| a decrease in earnings allocable to noncontrolling interests, primarily due to a
decrease in the noncontrolling interests share of the decrease in gains on sales discussed
above; |
| a decrease in general and administrative expenses, primarily related to reductions in
personnel and related expenses from our organizational restructuring activities during 2008
and 2009; and |
| impairment losses on real estate development assets in 2008, for which no similar
impairments were recognized in 2009. |
2008 compared to 2007
We reported net income attributable to the Partnership of $472.0 million and net income
attributable to the Partnerships Aimco common unitholders of $403.7 million for the year ended
December 31, 2008, compared to net income attributable to the Partnership of $34.1 million and net
loss attributable to the Partnerships common unitholders of $43.5 million for the year ended
December 31, 2007, increases of $437.9 million and $447.2 million, respectively. These increases
were principally due to the following items, all of which are discussed in further detail below:
| an increase in income from discontinued operations, primarily related to an increase in
the number of assets sold during 2008 and our recognition of higher gains on sales as
compared to 2007; |
| an increase in gain on dispositions of unconsolidated real estate and other, primarily
due to a large gain on the sale of an interest in an unconsolidated real estate partnership
in 2008; |
| an increase in net operating income associated with property operations, reflecting
improved operations of our same store properties and other properties; and |
| an increase in asset management and tax credit revenues, primarily due to an increase in
promote income, which is income earned in connection with the disposition of properties
owned by our consolidated joint ventures. |
The effects of these items on our operating results were partially offset by:
| impairment losses on real estate development assets in 2008, for which no similar
impairments were recognized in 2007; |
| an increase in earnings allocable to noncontrolling interests, primarily due to an
increase in the noncontrolling interests share of the increase in gains on sales discussed
above; |
| an increase in depreciation and amortization expense, primarily related to completed
redevelopments placed in service for partial periods during 2007 or 2008; |
3
| restructuring costs recognized during the fourth quarter of 2008; and |
| an increase in provisions for losses on notes receivable, primarily due to the
impairment during 2008 of our interest in Casden Properties LLC. |
The following paragraphs discuss these and other items affecting the results of our operations
in more detail.
Business Segment Operating Results
As of December 31, 2009, we had two reportable segments: real estate (owning, operating and
redeveloping apartments) and investment management (portfolio management and asset management).
Based on a planned reduction in our transactional activities, during the three months ended March
31, 2010, we reevaluated our reportable segments and determined our investment management reporting
unit no longer meets the requirements for a reportable segment. Additionally, to provide more
meaningful information regarding our real estate operations, we elected to disaggregate information
for the prior real estate segment. Following these changes, we have two reportable segments:
conventional real estate operations and affordable real estate operations, which are discussed in
further detail below.
Real Estate Operations
Our real estate portfolio is comprised of two business components: conventional real estate
operations and affordable real estate operations, which also represent our two reportable segments.
Our conventional real estate portfolio consists of market-rate apartments with rents paid by the
resident and includes 226 properties with 70,758 units. Our affordable real estate portfolio
consists of 244 properties with 28,034 units, with rents that are generally paid, in whole or part,
by a government agency. Our conventional and affordable properties contributed 87% and 13%,
respectively, of our property net operating income attributed to the Partnerships common
unitholders during the year ended December 31, 2009.
Our chief operating decision maker uses various generally accepted industry financial measures
to assess the performance and financial condition of the business, including: net operating income;
Net Asset Value; Pro forma Funds From Operations; Adjusted Funds From Operations; same store
property operating results; Free Cash Flow; financial coverage ratios; and leverage as shown on our
balance sheet. Our chief operating decision maker emphasizes net operating income as a key
measurement of segment profit or loss. Segment net operating income is generally defined as
segment revenues less direct segment operating expenses.
The following table summarizes the net operating income of our real estate operations,
including our conventional and affordable segments, for the years ended December 31, 2009, 2008 and
2007 (in thousands):
Year Ended | ||||||||||||
December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Rental and other property revenues: |
||||||||||||
Conventional real estate operations |
$ | 921,833 | $ | 926,289 | $ | 895,117 | ||||||
Affordable real estate operations |
188,873 | 181,706 | 170,127 | |||||||||
Corporate and amounts not allocated |
5,082 | 6,345 | 6,923 | |||||||||
Total |
1,115,788 | 1,114,340 | 1,072,167 | |||||||||
Property operating expenses: |
||||||||||||
Conventional real estate operations |
369,288 | 365,716 | 359,615 | |||||||||
Affordable real estate operations |
93,207 | 92,700 | 83,967 | |||||||||
Corporate and amounts not allocated |
58,435 | 76,331 | 70,044 | |||||||||
Total |
520,930 | 534,747 | 513,626 | |||||||||
Real estate operations net operating income |
$ | 594,858 | $ | 579,593 | $ | 558,541 | ||||||
For the year ended December 31, 2009, compared to the year ended December 31, 2008, our real
estate operations net operating income increased $15.3 million, or 2.6%, due to an increase in
rental and other property revenues of $1.5 million, or 0.1%, and a decrease in property operating
expenses of $13.8 million, or 2.6%.
4
Our conventional real estate operations net operating income decreased $8.1 million, or 1.4%,
from $560.6 million during the year ended December 31, 2008 to $552.5 million during the year ended
December 31, 2009. This decrease
was primarily attributable to our conventional same store properties, including a $10.1
million, or 1.4%, decrease in revenues due to lower average rent (approximately $19 per unit) and a
decrease of 30 basis points in average physical occupancy, and $1.5 million increase in expenses
due to increases in payroll, repairs and maintenance, and insurance expenses, partially offset by
decreases in contract services, marketing and administrative expenses. The decrease in conventional
net operating income associated with our same store properties was partially offset by a $3.6
million increase in net operating income associated with our conventional non-same store
properties. Revenues of our conventional non-same store properties increased $5.7 million,
primarily due to an $8.1 million increase in redevelopment revenues, primarily due to more units in
service at these properties in 2009, partially offset by a $2.1 million increase in expenses
related to our non-same store properties, primarily due to increases in real estate taxes and
expenses related to properties newly consolidated in 2009.
Our affordable real estate operations net operating income increased $6.7 million, or 7.5%,
from $89.0 million during the year ended December 31, 2008, to $95.7 million during the year ended
December 31, 2009. This increase in net operating income was primarily due to increases in
revenues of our affordable properties of $7.2 million, including a $5.1 million increase primarily
due to higher average rents partially offset by lower physical occupancy, and a $2.1 million
increase related to properties that were newly consolidated in 2009.
Real estate operations net operating income includes property management revenues and expenses
and casualty losses, which we do not allocate to our conventional or affordable segments for
purposes of evaluating segment performance. Property management revenues decreased by $1.3
million, due to a reduction in the number of properties managed due to sales. Expenses not
allocated to our conventional or affordable segments decreased by $17.9 million, primarily due to a
$16.6 million decrease in property management expenses, resulting primarily from reductions in
personnel and related costs attributed to our restructuring activities (see Note 3 to the
consolidated financial statements in Item 8).
For the year ended December 31, 2008, compared to the year ended December 31, 2007, our real
estate operations net operating income increased $21.1 million, or 3.8%, due to an increase in
rental and other property revenues of $42.2 million, or 3.9%, partially offset by an increase in
property operating expenses of $21.1 million, or 4.1%.
Our conventional real estate operations net operating income increased $25.1 million, or 4.7%,
from $535.5 million during the year ended December 31, 2007 to $560.6 million during the year ended
December 31, 2008. This increase was primarily attributable to our conventional same store
properties, including a $22.4 million, or 3.1%, increase in revenues due to higher average rent
(approximately $21 per unit) and an increase of 80 basis points in average physical occupancy, partially offset by a $1.8 million increase in expenses due to increases in utility, real estate tax, marketing,
administrative and contract service expenses, offset by decreases in payroll, turnover
and repair and maintenance expenses. In addition to the increase in conventional same store net
operating income, net operating income related to our conventional non-same store properties
increased by $4.5 million. Revenues of our conventional non-same store properties increased $8.8
million, primarily due to a $6.5 million increase in redevelopment revenues due to more units in
service during 2008, partially offset by a $4.3 million increase in expenses of our conventional
non-same store properties primarily due to increases in payroll, real estate tax, contract services
and marketing expenses.
Our affordable real estate operations net operating income increased $2.8 million, or 3.3%,
from $86.2 million during the year ended December 31, 2007, to $89.0 million during the year ended
December 31, 2008. Revenues of our affordable properties increased by $11.5 million and expenses
of our affordable properties increased by $8.7 million, primarily due to properties newly
consolidated during late 2007.
Real estate operations net operating income includes property management revenues and expenses
and casualty losses, which we do not allocate to our conventional or affordable segments for
purposes of evaluating segment performance. Property management revenues decreased by $0.6
million, primarily attributable to a reduction in the number of properties managed due to sales.
Expenses not allocated to our conventional or affordable segments increased by $6.3 million,
primarily due to a $4.0 million increase in casualty losses, primarily due to properties damaged by
Tropical Storm Fay and Hurricane Ike in 2008, and a $2.3 million increase in property management
expenses.
5
Asset Management and Tax Credit Revenues
We perform activities and services for consolidated and unconsolidated real estate
partnerships, including 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 gains on dispositions. For affiliated partnerships, we refer to
these activities as asset
management, for which we are separately compensated through fees paid by third party
investors. These activities are conducted in part by our taxable subsidiaries, and the related net
operating income may be subject to income taxes.
Asset management revenue may include certain fees that were earned in a prior period, but not
recognized at that time because collectibility was not reasonably assured. Those fees may be
recognized in a subsequent period upon occurrence of a transaction or a high level of the
probability of occurrence of a transaction, or improvement in operations that generates sufficient
cash to pay the fees.
For the year ended December 31, 2009, compared to the year ended December 31, 2008, asset
management and tax credit revenues decreased $49.0 million. This decrease is primarily
attributable to a $42.8 million decrease in promote income, which is income earned in connection
with the disposition of properties owned by our consolidated joint ventures, due to fewer related
sales in 2009, a $7.6 million decrease in other general partner transactional fees and a $2.2
million decrease in asset management fees, offset by a $3.6 million increase in revenues associated
with our affordable housing tax credit syndication business, including syndication fees and other
revenue earned in connection with these arrangements.
For the year ended December 31, 2008, compared to the year ended December 31, 2007, asset
management and tax credit revenues increased $25.1 million. This increase is primarily
attributable to a $30.7 million increase in promote income, which is income earned in connection
with the disposition of properties owned by our consolidated joint ventures, and a $10.3 million
increase in other general partner transactional fees. These increases are offset by a decrease of
$10.0 million in asset management fees and a decrease of $5.9 million in revenues associated with
our affordable housing tax credit syndication business, including syndication fees and other
revenue earned in connection with these arrangements.
Investment Management Expenses
Investment management expenses consist primarily of the costs of departments that perform
asset management and tax credit activities. For the year ended December 31, 2009, compared to the
year ended December 31, 2008, investment management expenses decreased $9.0 million, primarily due
to reductions in personnel and related costs from our organizational restructurings and a reduction
in transaction costs.
For the year ended December 31, 2008, compared to the year ended December 31, 2007, investment
management expenses increased $4.3 million, primarily due to a $3.5 million increase in acquisition
costs related to our adoption of SFAS 141(R) (see Note 2 to the consolidated financial statements in Item 8).
Other Operating Expenses (Income)
Depreciation and Amortization
For the year ended December 31, 2009, compared to the year ended December 31, 2008,
depreciation and amortization increased $50.8 million, or 13.1%. This increase primarily consists
of depreciation related to properties acquired during the latter part of 2008, completed
redevelopments and other capital projects recently placed in service.
For the year ended December 31, 2008, compared to the year ended December 31, 2007,
depreciation and amortization increased $45.6 million, or 13.4%. This increase reflects
depreciation of $65.5 million for newly acquired properties, completed redevelopments and other
capital projects recently placed in service. This increase was partially offset by a decrease of
$25.7 million in depreciation adjustments necessary to reduce the carrying amount of buildings and
improvements to their estimated disposition value, or zero in the case of a planned demolition,
primarily due to a property that became fully depreciated during 2007.
Provision for Operating Real Estate Impairment Losses
Real estate and other long-lived assets to be held and used are stated at cost, less
accumulated depreciation and amortization, unless the carrying amount of the asset is not
recoverable. If events or circumstances indicate that the carrying amount of a property may not be
recoverable, we make an assessment of its recoverability by comparing the carrying amount to our
estimate of the undiscounted future cash flows, excluding interest charges, of the property. If
the carrying amount exceeds the estimated aggregate undiscounted future cash flows, we recognize an
impairment loss to the extent the carrying amount exceeds the estimated fair value of the property.
6
For the years ended December 31, 2009 and 2007, we recognized impairment losses of $2.3
million and $1.1 million, respectively, related to properties classified as held for use as of
December 31, 2009. We recognized no such impairment losses during the year ended December 31, 2008.
Provision for Impairment Losses on Real Estate Development Assets
In connection with the preparation of our 2008 annual financial statements, we assessed the
recoverability of our investment in our Lincoln Place property, located in Venice, California.
Based upon the decline in land values in Southern California during 2008 and the expected timing
of our redevelopment efforts, we determined that the total carrying amount of the property was no
longer probable of full recovery and, accordingly, during the three months ended December 31, 2008,
recognized an impairment loss of $85.4 million ($55.6 million net of tax).
Similarly, we assessed the recoverability of our investment in Pacific Bay Vistas (formerly
Treetops), a vacant property located in San Bruno, California, and determined that the carrying
amount of the property was no longer probable of full recovery and, accordingly, we recognized an
impairment loss of $5.7 million for this property during the three months ended December 31, 2008.
The impairments discussed above totaled $91.1 million and are included in provisions for
impairment losses on real estate development assets in our consolidated statement of income for the
year ended December 31, 2009 included in Item 8. We recognized no similar impairments on real
estate development assets during the years ended December 31, 2009 or 2007.
General and Administrative Expenses
For the year ended December 31, 2009, compared to the year ended December 31, 2008, general
and administrative expenses decreased $23.7 million, or 29.5%. This decrease is primarily
attributable to reductions in personnel and related expenses associated with our organizational
restructurings (see Note 3 to the consolidated financial statements in Item 8), pursuant to which
we eliminated approximately 400, or 36%, of our offsite positions between December 31, 2008 and
December 31, 2009.
For the year ended December 31, 2008, compared to the year ended December 31, 2007, general
and administrative expenses increased $8.0 million, or 11.1%. This increase is primarily
attributable to higher personnel and related expenses of $6.1 million and an increase of $1.5
million in information technology communications costs.
Other Expenses, Net
Other expenses, net includes franchise taxes, risk management activities, partnership
administration expenses and certain non-recurring items.
For the year ended December 31, 2009, compared to the year ended December 31, 2008, other
expenses, net decreased by $5.3 million. The decrease is primarily attributable to a $5.4 million
write-off during 2008 of certain communications hardware and capitalized costs in 2008, and a $5.3
million reduction in expenses of our self insurance activities, including a decrease in casualty
losses on less than wholly owned properties from 2008 to 2009. These decreases are partially offset
by an increase of $4.3 million in costs related to certain litigation matters.
For the year ended December 31, 2008, compared to the year ended December 31, 2007, other
expenses, net increased by $3.4 million. The increase includes a $5.4 million write-off of certain
communications hardware and capitalized costs during 2008 and a $1.2 million write-off of
redevelopment costs associated with a change in the planned use of a property during 2008. The net
unfavorable change also reflects $3.6 million of income recognized in 2007 related to the transfer
of certain property rights to an unrelated party. These increases were partially offset by a $3.7
million reduction in expenses of our self insurance activities (net of costs in 2008 related to
Tropical Storm Fay and Hurricane Ike) and a net decrease of $1.7 million in costs related to
certain litigation matters.
Restructuring Costs
For the year ended December 31, 2009, we recognized restructuring costs of $11.2 million, as
compared to $22.8 million in the year ended December 31, 2008, related to our organizational
restructurings, which are further discussed in Note 3 to the consolidated financial statements in
Item 8. We recognized no restructuring costs during the year ended December 31, 2007.
7
Interest Income
Interest income consists primarily of interest on notes receivable from non-affiliates and
unconsolidated real estate partnerships, interest on cash and restricted cash accounts, and
accretion of discounts on certain notes receivable from unconsolidated real estate partnerships.
Transactions that result in accretion occur infrequently and thus accretion income may vary from
period to period.
For the year ended December 31, 2009, compared to the year ended December 31, 2008, interest
income decreased $10.5 million, or 51.5%. Interest income decreased by $8.8 million due to lower
interest rates on notes receivable, cash and restricted cash balances and lower average balances
and by $4.1 million due to a decrease in accretion income related to our note receivable from
Casden Properties LLC for which we ceased accretion following impairment of the note in 2008. These
decreases were partially offset by a $2.3 million increase in accretion income related to other
notes during the year ended December 31, 2008, resulting from a change in the timing and amount of
collection.
For the year ended December 31, 2008, as compared to the year ended December 31, 2007,
interest income decreased $23.1 million, or 53.1%. Interest income decreased by $15.9 million due
to lower interest rates on notes receivable, cash and restricted cash balances and lower average
balances. Interest income also decreased by $5.8 million due to an adjustment of accretion on
certain discounted notes during the year ended December 31, 2008, resulting from a change in the
estimated timing and amount of collection, and by $1.5 million for accretion income recognized
during the year ended December 31, 2007, related to the prepayment of principal on certain
discounted loans collateralized by properties in West Harlem in New York City.
Provision for Losses on Notes Receivable
During the years ended December 31, 2009, 2008 and 2007, we recognized net provisions for
losses on notes receivable of $21.5 million, $17.6 million and $2.0 million, respectively. The
provisions for losses on notes receivable for the years ended December 31, 2009 and 2008, primarily
consist of impairments related to our investment in Casden Properties LLC, which are discussed
further below.
As part of the March 2002 acquisition of Casden Properties, Inc., we invested $50.0 million
for a 20% passive interest in Casden Properties LLC, an entity organized to acquire, re-entitle and
develop land parcels in Southern California. Based upon the profit allocation agreement, we
account for this investment as a note receivable and through 2008 were amortizing the discounted
value of the investment to the $50.0 million previously estimated to be collectible, through
January 2, 2009, the initial dissolution date of the entity. In 2009, the managing member extended
the dissolution date. In connection with the preparation of our 2008 annual financial statements
and as a result of a decline in land values in Southern California, we determined our recorded
investment amount was not fully recoverable, and accordingly recognized an impairment loss of $16.3
million ($10.0 million net of tax) during the three months ended December 31, 2008. In connection
with the preparation of our 2009 annual financial statements and as a result of continued declines
in land values in Southern California, we determined our then recorded investment amount was not
fully recoverable, and accordingly recognized an impairment loss of $20.7 million ($12.4 million
net of tax) during the three months ended December 31, 2009.
In addition to the impairments related to Casden Properties LLC discussed above, we recognized
provisions for losses on notes receivable totaling $0.8 million, $1.3 million and $2.0 million
during the years ended December 31, 2009, 2008 and 2007, respectively.
Interest Expense
For the years ended December 31, 2009 and December 31, 2008, interest expense, which includes
the amortization of deferred financing costs, totaled $319.3 million and $318.7 million,
respectively. Interest expense increased by $14.9 million due to a reduction in redevelopment
activity during 2009, which resulted in a reduction in capitalized interest. In addition, interest
expense increased by $1.2 million due to an increase in prepayment penalties associated with
refinancing activities, from $2.8 million in 2008 to $4.0 million in 2009, and by $3.9 million
related to non-recourse property loans, from $305.8 million to $309.7 million, primarily due to
higher average interest rates partially offset by lower average balances during 2009. These
increases in interest expense were substantially offset by decreases in corporate interest expense.
Interest expense related to corporate debt, which is primarily floating rate, decreased by $19.4
million, from $34.8 million to $15.4 million, primarily due to lower average balances and interest
rates during 2009.
8
For the year ended December 31, 2008, compared to the year ended December 31, 2007, interest
expense increased $10.7 million, or 3.5%. Interest expense related to non-recourse property loans
increased by $16.8 million, from $289.0 million to $305.8 million, primarily due to higher average
balances partially offset by lower average interest rates during 2008. In addition, interest
expense increased by $4.4 million, due to a decrease in capitalized interest from $29.1 million in
2007 to $24.7 million in 2008, resulting from more units in service and lower interest rates.
These increases were partially offset by a decrease in interest expense related to corporate debt,
which is primarily floating rate and which decreased by $10.4 million, from $45.2 million to $34.8
million, primarily due to lower average balances and interest rates during 2008.
Equity in Losses of Unconsolidated Real Estate Partnerships
Equity in losses of unconsolidated real estate partnerships includes our share of net losses
of our unconsolidated real estate partnerships and is primarily driven by depreciation expense in
excess of the net operating income recognized by such partnerships.
During the years ended December 31, 2009, 2008 and 2007, we recognized equity in losses of
unconsolidated real estate partnerships of $12.0 million, $4.6 million and $3.3 million,
respectively. The $7.4 million increase in our equity in losses from 2008 to 2009 was primarily
due to our sale in late 2008 of an interest in an unconsolidated real estate partnership that
generated $3.0 million of equity in earnings during the year ended December 31, 2008, and our sale
during 2009 of our interest in an unconsolidated group purchasing organization which resulted in a
decrease of equity in earnings of approximately $1.2 million. The increase in equity in losses
also includes additional losses recognized during 2009 related to the underlying investment
properties of certain tax credit syndications we consolidated during 2009 and 2008.
Impairment Losses Related to Unconsolidated Real Estate Partnerships
Impairment losses related to unconsolidated real estate partnerships includes our share of
impairment losses recognized by our unconsolidated real estate partnerships. For the year ended
December 31, 2009, compared to the year ended December 31, 2008, impairment losses related to
unconsolidated real estate partnerships decreased $2.3 million, and for the year ended December 31,
2008, compared to the year ended December 31, 2007, impairment losses related to unconsolidated
real estate partnerships increased $2.7 million. This decrease and increase are primarily
attributable to impairment losses recognized by unconsolidated partnerships on their underlying
real estate properties during 2008.
Gain on Dispositions of Unconsolidated Real Estate and Other
Gain on dispositions of unconsolidated real estate and other includes our share of gains
related to dispositions of real estate by unconsolidated real estate partnerships, gains on
disposition of interests in unconsolidated real estate partnerships, gains on dispositions of land
and other non-depreciable assets and costs related to asset disposal activities. Changes in the
level of gains recognized from period to period reflect the changing level of disposition activity
from period to period. Additionally, gains on properties sold are determined on an individual
property basis or in the aggregate for a group of properties that are sold in a single transaction,
and are not comparable period to period.
For the year ended December 31, 2009, compared to the year ended December 31, 2008, gain on
dispositions of unconsolidated real estate and other decreased $77.4 million. This decrease is
primarily attributable to a gain of $98.4 million on our disposition in 2008 of interests in two
unconsolidated real estate partnerships. This decrease was partially offset by $18.7 million of
gains on the disposition of interests in unconsolidated partnerships during 2009. Gains recognized
in 2009 consist of $8.6 million related to our receipt in 2009 of additional proceeds related to
our disposition during 2008 of one of the partnership interests discussed above (see Note 3 to the
consolidated financials statements in Item 8), $4.0 million from the disposition of our interest in
a group purchasing organization (see Note 3 to the consolidated financial statements in Item 8),
and $6.1 million from our disposition in 2009 of interests in unconsolidated real estate
partnerships.
For the year ended December 31, 2008, compared to the year ended December 31, 2007, gain on
dispositions of unconsolidated real estate and other increased $76.5 million. This increase is
primarily attributable to a $98.4 million net gain on the disposition of interests in two
unconsolidated real estate partnerships during the year ended December 31, 2008. During 2007, we
recognized a $6.0 million non-refundable option and extension fee resulting from the termination of
rights under an option agreement to sell the North and Central towers of our Flamingo South Beach
property, approximately $6.4 million of net gains on dispositions of land parcels and our share of
gains on dispositions of properties by unconsolidated real estate partnerships in 2007, and a $9.5
million gain on debt extinguishment related to properties in the VMS partnership (see Note 3 to the
consolidated financial statements in Item 8).
9
Income Tax Benefit
In conjunction with Aimcos UPREIT structure, certain of our operations, or a portion thereof,
such as property management, asset management and risk management, are conducted through, and
certain of our properties are owned by, taxable subsidiaries. Income taxes related to the results
of continuing operations of our taxable subsidiaries are included in income tax benefit in our
consolidated statements of income.
For the year ended December 31, 2009, compared to the year ended December 31, 2008, income tax
benefit decreased by $34.5 million. This decrease was primarily attributed to $36.1 million of
income tax benefit recognized in 2008 related to the impairments of our Lincoln Place property and
our investment in Casden Properties LLC, both of which are owned through taxable subsidiaries,
partially offset by $8.1 million of income tax benefit recognized in 2009 related to the impairment
of our investment in Casden Properties LLC.
For the year ended December 31, 2008, compared to the year ended December 31, 2007, income tax
benefit increased by $33.4 million. This increase was primarily attributed to $36.1 million of
income tax benefit recognized in 2008 related to the impairments of our Lincoln Place property and
our investment in Casden Properties LLC.
Income from Discontinued Operations, Net
The results of operations for properties sold during the period or designated as held for sale
at the end of the period are generally required to be classified as discontinued operations for all
periods presented. The components of net earnings that are classified as discontinued operations
include all property-related revenues and operating expenses, depreciation expense recognized prior
to the classification as held for sale, property-specific interest expense and debt extinguishment
gains and losses to the extent there is secured debt on the property. In addition, any impairment
losses on assets held for sale and the net gain or loss on the eventual disposal of properties held
for sale are reported in discontinued operations.
For the years ended December 31, 2009 and 2008, income from discontinued operations totaled
$154.0 million and $747.5 million, respectively. The $593.5 million decrease in income from
discontinued operations was principally due to a $541.2 million decrease in gain on dispositions of
real estate, net of income taxes, primarily attributable to fewer properties sold in 2009 as
compared to 2008, and a $113.3 million decrease in operating income (inclusive of a $27.1 million
increase in real estate impairment losses), partially offset by a $59.3 million decrease in
interest expense.
For the years ended December 31, 2008 and 2007, income from discontinued operations totaled
$747.5 million and $174.6 million, respectively. The $572.9 million increase in income from
discontinued operations was principally due to a $641.7 million increase in gain on dispositions of
real estate, net of income taxes, primarily attributable to more properties sold in 2008 as
compared to 2007 and a $27.6 million decrease in interest expense. These increases were partially
offset by a $64.8 million decrease in operating income (inclusive of a $22.0 million increase in
real estate impairment losses) and a $32.7 million decrease related to a 2007 gain on debt
extinguishment related to properties in the VMS partnership.
During the year ended December 31, 2009, we sold 89 consolidated properties for gross proceeds
of $1.3 billion and net proceeds of $432.7 million, resulting in a net gain on sale of
approximately $216.0 million (which is net of $5.8 million of related income taxes). During the
year ended December 31, 2008, we sold 151 consolidated properties for gross proceeds of $2.4
billion and net proceeds of $1.1 billion, resulting in a net gain on sale of approximately $757.2
million (which is net of $43.1 million of related income taxes). During the year ended December 31,
2007, we sold 73 consolidated properties for gross proceeds of $480.0 million and net proceeds of
$203.8 million, resulting in a net gain on sale of approximately $115.5 million (which is net of
$2.1 million of related income taxes).
For the years ended December 31, 2009, 2008 and 2007, income from discontinued operations
includes the operating results of the properties sold or classified as held for sale as of June 30,2010.
Changes in the level of gains recognized from period to period reflect the changing level of
our disposition activity from period to period. Additionally, gains on properties sold are
determined on an individual property basis or in the aggregate for a group of properties that are
sold in a single transaction, and are not comparable period to period (see Note 13 of the
consolidated financial statements in Item 8 for additional information on discontinued operations).
10
Noncontrolling Interests in Consolidated Real Estate Partnerships
Noncontrolling interests in consolidated real estate partnerships reflects the non-Aimco
partners, or noncontrolling partners, share of operating results of consolidated real estate
partnerships. This generally includes the noncontrolling partners share of property management
fees, interest on notes and other amounts eliminated in consolidation that we charge to such
partnerships. As discussed in Note 2 to the consolidated financial statements in Item 8, we
adopted the provisions of SFAS 160, which are now codified in the Financial Accounting Standards
Boards Accounting Standards Codification, or FASB ASC, Topic 810, effective January 1, 2009.
Prior to our adoption of SFAS 160, we generally did not recognize a benefit for the noncontrolling
interest partners share of partnership losses for partnerships that have deficit noncontrolling
interest balances and we generally recognized a charge to our earnings for distributions paid to
noncontrolling partners for partnerships that had deficit noncontrolling interest balances. Under
the updated provisions of FASB ASC Topic 810, we are required to attribute losses to noncontrolling
interests even if such attribution would result in a deficit noncontrolling interest balance and we
are no longer required to recognize a charge to our earnings for distributions paid to
noncontrolling partners for partnerships that have deficit noncontrolling interest balances.
For the year ended December 31, 2009, compared to the year ended December 31, 2008, net
earnings attributed to noncontrolling interests in consolidated real estate partnerships decreased
by $133.3 million. This decrease is primarily attributable to a reduction of $108.7 million
related to the noncontrolling interests in consolidated real estate partnerships share of gains on
dispositions of real estate, due primarily to fewer sales in 2009 as compared to 2008, $5.5 million
of losses allocated to noncontrolling interests in 2009 that we would not have allocated to the
noncontrolling interest partners in 2008 because to do so would have resulted in deficits in their
noncontrolling interest balances, and approximately $3.8 million related to deficit distribution
charges recognized as a reduction to our earnings in 2008, for which we did not recognize similar
charges in 2009 based on the change in accounting discussed above. These decreases are in addition
to the noncontrolling interest partners share of increased losses of our consolidated real estate
partnerships in 2009 as compared to 2008.
For the year ended December 31, 2008, compared to the year ended December 31, 2007, net income
attributed to noncontrolling interests in consolidated real estate partnerships increased by $63.6
million. This increase is primarily attributable to an increase of $105.6 million related to the
noncontrolling interests in consolidated real estate partnerships share of gains on dispositions
of real estate, due primarily to more sales in 2008 as compared to 2007, partially offset by
increases of $42.0 million in net recoveries of deficit distributions.
As discussed in Note 2 to the consolidated financial statements in Item 8, during the first
quarter 2010, we will adopt new accounting guidance related to accounting for variable interest
entities. This change in accounting guidance may result in our consolidation of certain previously
unconsolidated entities as well as our deconsolidation of certain we currently consolidate. At
this time, we have not yet determined the effect this accounting change will have on our
consolidated financial statements.
Critical Accounting Policies and Estimates
We prepare our consolidated financial statements in accordance with accounting principles
generally accepted in the United States of America, or GAAP, which requires us to make estimates
and assumptions. We believe that the following critical accounting policies involve our more
significant judgments and estimates used in the preparation of our consolidated financial
statements.
Impairment of Long-Lived Assets
Real estate and other long-lived assets to be held and used are stated at cost, less
accumulated depreciation and amortization, unless the carrying amount of the asset is not
recoverable. If events or circumstances indicate that the carrying amount of a property may not be
recoverable, we make an assessment of its recoverability by comparing the carrying amount to our
estimate of the undiscounted future cash flows, excluding interest charges, of the property. If
the carrying amount exceeds the estimated aggregate undiscounted future cash flows, we recognize an
impairment loss to the extent the carrying amount exceeds the estimated fair value of the property.
From time to time, we have non-revenue producing properties that we hold for future
redevelopment. We assess the recoverability of the carrying amount of these redevelopment
properties by comparing our estimate of undiscounted future cash flows based on the expected
service potential of the redevelopment property upon completion to the carrying amount. In certain
instances, we use a probability-weighted approach to determine our estimate of undiscounted future
cash flows when alternative courses of action are under consideration. As discussed in Provision
for Impairment Losses
on Real Estate Development Assets within the preceding discussion of our Results of
Operations, during 2008 we recognized impairment losses on our Lincoln Place and Pacific Bay Vistas
properties of $85.4 million ($55.6 million net of tax) and $5.7 million, respectively.
11
Real estate investments are subject to varying degrees of risk. Several factors may adversely
affect the economic performance and value of our real estate investments. These factors include:
| the general economic climate; |
| competition from other apartment communities and other housing options; |
| local conditions, such as loss of jobs or an increase in the supply of apartments, that
might adversely affect apartment occupancy or rental rates; |
| changes in governmental regulations and the related cost of compliance; |
| increases in operating costs (including real estate taxes) due to inflation and other
factors, which may not be offset by increased rents; |
| changes in tax laws and housing laws, including the enactment of rent control laws or
other laws regulating multifamily housing; and |
| changes in interest rates and the availability of financing. |
Any adverse changes in these and other factors could cause an impairment in our long-lived
assets, including real estate and investments in unconsolidated real estate partnerships. In
addition to the impairments of Lincoln Place and Pacific Bay Vistas discussed above, based on
periodic tests of recoverability of long-lived assets, for the years ended December 31, 2009 and
2007, we recorded net impairment losses of $2.3 million and $1.1 million, respectively, related to
properties classified as held for use, and during the year ended December 31, 2008, we recorded no
additional impairments related to properties held for use.
Notes Receivable and Interest Income Recognition
Notes receivable from unconsolidated real estate partnerships consist primarily of notes
receivable from partnerships in which we are the general partner. Notes receivable from
non-affiliates consist of notes receivable from unrelated third parties. The ultimate repayment of
these notes is subject to a number of variables, including the performance and value of the
underlying real estate and the claims of unaffiliated mortgage lenders. Our notes receivable
include loans extended by us that we carry at the face amount plus accrued interest, which we refer
to as par value notes, and loans extended by predecessors, some of whose positions we generally
acquired at a discount, which we refer to as discounted notes.
We record interest income on par value notes as earned in accordance with the terms of the
related loan agreements. We discontinue the accrual of interest on such notes when the notes are
impaired, as discussed below, or when there is otherwise significant uncertainty as to the
collection of interest. We record income on such nonaccrual loans using the cost recovery method,
under which we apply cash receipts first to the recorded amount of the loan; thereafter, any
additional receipts are recognized as income.
We recognize interest income on discounted notes receivable based upon whether the amount and
timing of collections are both probable and reasonably estimable. We consider collections to be
probable and reasonably estimable when the borrower has closed transactions or has entered into
certain pending transactions (which include real estate sales, refinancings, foreclosures and
rights offerings) that provide a reliable source of repayment. In such instances, we recognize
accretion income, on a prospective basis using the effective interest method over the estimated
remaining term of the loans, equal to the difference between the carrying amount of the discounted
notes and the estimated collectible value. We record income on all other discounted notes using
the cost recovery method. Accretion income recognized in any given period is based on our ability
to complete transactions to monetize the notes receivable and the difference between the carrying
value and the estimated collectible amount of the notes; therefore, accretion income varies on a
period by period basis and could be lower or higher than in prior periods.
Provision for Losses on Notes Receivable
We assess the collectibility of notes receivable on a periodic basis, which assessment
consists primarily of an evaluation of cash flow projections of the borrower to determine whether
estimated cash flows are sufficient to repay principal and interest in accordance with the
contractual terms of the note. We recognize impairments on notes receivable when it is probable
that principal and interest will not be received in accordance with the contractual terms of
the loan. The amount of the impairment to be recognized generally is based on the fair value
of the partnerships real estate that represents the primary source of loan repayment. In certain
instances where other sources of cash flow are available to repay the loan, the impairment is
measured by discounting the estimated cash flows at the loans original effective interest rate.
12
During the years ended December 31, 2009, 2008 and 2007 we recorded net provisions for losses
on notes receivable of $21.5 million, $17.6 million and $2.0 million, respectively. As discussed
in Provision for Losses on Notes Receivable within the preceding discussion of our Results of
Operations, provisions for losses on notes receivable in 2009 and 2008 include impairment losses of
$20.7 million ($12.4 million net of tax) and $16.3 million ($10.0 million net of tax),
respectively, on our investment in Casden Properties LLC, which we account for as a note
receivable. We will continue to evaluate the collectibility of these notes, and we will adjust
related allowances in the future due to changes in market conditions and other factors.
Capitalized Costs
We capitalize costs, including certain indirect costs, incurred in connection with our capital
additions activities, including redevelopment and construction projects, other tangible property
improvements and replacements of existing property components. Included in these capitalized costs
are payroll costs associated with time spent by site employees in connection with the planning,
execution and control of all capital additions activities at the property level. We characterize
as indirect costs an allocation of certain department costs, including payroll, at the area
operations and corporate levels that clearly relate to capital additions activities. We capitalize
interest, property taxes and insurance during periods in which redevelopment and construction
projects are in progress. We charge to expense as incurred costs that do not relate to capital
additions activities, including ordinary repairs, maintenance, resident turnover costs and general
and administrative expenses (see Capital Additions and Related Depreciation in Note 2 to the
consolidated financial statements in Item 8).
For the years ended December 31, 2009, 2008 and 2007, for continuing and discontinued
operations, we capitalized $9.8 million, $25.7 million and $30.8 million of interest costs,
respectively, and $40.0 million, $78.1 million and $78.1 million of site payroll and indirect
costs, respectively. The reduction is primarily due to a reduced level of redevelopment
activities.
Funds From Operations
FFO is a non-GAAP financial measure that we believe, when considered with the financial
statements determined in accordance with GAAP, is helpful to investors in understanding our
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 depreciable assets such as machinery, computers or other personal property. The
Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, defines
FFO as net income (loss), 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. We compute FFO for all periods presented in
accordance with the guidance set forth by NAREITs April 1, 2002, White Paper, which we refer to as
the White Paper. We calculate FFO attributable to the Partnerships common unitholders (diluted)
by subtracting redemption or repurchase related preferred OP Unit issuance costs and distributions
on preferred OP Units and adding back distributions on dilutive preferred securities and premiums
or discounts on preferred OP Unit redemptions or repurchases. FFO should not be considered an
alternative to net income or net cash flows from operating activities, as determined in accordance
with GAAP, as an indication of our performance or as a measure of liquidity. FFO is not
necessarily indicative of cash available to fund future cash needs. In addition, although FFO is a
measure used for comparability in assessing the performance of REITs, there can be no assurance
that our basis for computing FFO is comparable with that of other REITs.
13
For the years ended December 31, 2009, 2008 and 2007, our FFO is calculated as follows (in
thousands):
2009 | 2008 | 2007 | ||||||||||
Net (loss) income attributable to the Partnerships common unitholders (1) |
$ | (123,276 | ) | $ | 403,700 | $ | (43,508 | ) | ||||
Adjustments: |
||||||||||||
Depreciation and amortization |
437,249 | 386,440 | 340,874 | |||||||||
Depreciation and amortization related to non-real estate assets |
(16,617 | ) | (17,323 | ) | (20,124 | ) | ||||||
Depreciation of rental property related to noncontrolling partners
and unconsolidated entities (2) |
(40,030 | ) | (27,564 | ) | (14,007 | ) | ||||||
Gain on dispositions of unconsolidated real estate and other, net of
noncontrolling partners interest |
(20,615 | ) | (99,597 | ) | (22,252 | ) | ||||||
Income tax expense (benefit) arising from disposition of
unconsolidated real estate and other |
1,582 | (433 | ) | (17 | ) | |||||||
Add back portion of gain on dispositions of unconsolidated real estate
and other that relates to non-depreciable assets and debt extinguishment
gain |
7,783 | 1,669 | 16,851 | |||||||||
Deficit distributions to noncontrolling partners (3) |
| 26,724 | 27,376 | |||||||||
Discontinued operations: |
||||||||||||
Gain on dispositions of real estate, net of noncontrolling partners
interest (2) |
(166,159 | ) | (618,173 | ) | (65,035 | ) | ||||||
Depreciation
of rental property, net of noncontrolling
partners interest (2) |
52,127 | 113,245 | 119,286 | |||||||||
(Recovery of deficit distributions) deficit distributions to
noncontrolling partners, net (3) |
| (30,867 | ) | 11,384 | ||||||||
Income tax expense arising from disposals |
5,788 | 43,146 | 2,135 | |||||||||
Preferred OP Unit distributions |
58,503 | 62,836 | 70,509 | |||||||||
Preferred OP Unit redemption related (gains) costs |
(1,649 | ) | (1,482 | ) | 2,635 | |||||||
Amounts allocable to participating securities (4) |
| 6,985 | 4,481 | |||||||||
FFO |
$ | 194,686 | $ | 249,306 | $ | 430,588 | ||||||
Preferred OP Unit distributions |
(58,503 | ) | (62,836 | ) | (70,509 | ) | ||||||
Preferred OP Unit redemption related gains (costs) |
1,649 | 1,482 | (2,635 | ) | ||||||||
Amounts allocable to participating securities (4) |
(792 | ) | (6,985 | ) | (4,481 | ) | ||||||
Distributions on dilutive preferred securities |
| 4,292 | 1,442 | |||||||||
FFO attributable to the Partnerships common unitholders diluted |
$ | 137,040 | $ | 185,259 | $ | 354,405 | ||||||
Weighted average number of common units,
common unit equivalents and dilutive
preferred securities outstanding (5): |
||||||||||||
Common units and equivalents (6) (7) |
124,442 | 99,386 | 106,802 | |||||||||
Dilutive preferred securities |
| 1,490 | 457 | |||||||||
Total |
124,442 | 100,876 | 107,259 | |||||||||
Notes:
(1) | Represents the numerator for calculating basic earnings per common unit in accordance
with GAAP (see Note 14 to the consolidated financial statements in Item 8). |
|
(2) | Noncontrolling partners refers to noncontrolling partners in our consolidated real
estate partnerships. |
|
(3) | Prior to adoption of SFAS 160 (see Note 2 to the consolidated financial statements in
Item 8), we recognized deficit distributions to noncontrolling partners as charges in our
income statement when cash was distributed to a noncontrolling partner in a consolidated
partnership in excess of the positive balance in such partners noncontrolling interest
balance. We recorded these charges for GAAP purposes even though there was 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) our recognition of depreciation previously allocated to the
noncontrolling partner or (b) a payment related to the noncontrolling partners share of
real estate appreciation. Based on White Paper guidance that requires real estate
depreciation and gains to be excluded from FFO, we added back deficit distributions and
subtracted related recoveries in our reconciliation of net income to FFO. Subsequent to our
adoption of SFAS 160, effective January 1, 2009, we may reduce the balance of
noncontrolling interests below zero in such situations and we are no longer required to
recognize such charges in our income statement. |
14
(4) | Amounts allocable to participating securities represent distributions declared and any
amounts of undistributed earnings allocable to participating securities. See Note 2 and
Note 14 to the consolidated financial statements in Item 8 for further information
regarding participating securities. |
|
(5) | Weighted average common units, common unit equivalents, dilutive preferred securities
for each of the periods presented above have been adjusted for our application during the
fourth quarter 2009 of a change in GAAP, which requires the common OP units issued to Aimco
in connection with our special distributions paid in 2008 and January 2009 to be treated as
issued and outstanding on the distribution payment dates for basic purposes and as
potential unit equivalents for the periods between the ex-dividend dates and the payment
dates for diluted purposes, rather than treating the units as issued and outstanding as of
the beginning of the earliest period presented for both basic and diluted purposes. The
change in accounting treatment had no effect on diluted weighted average units outstanding
for the year ended December 31, 2009. The change in accounting treatment reduced diluted
weighted average units outstanding by 32.9 million and 46.7 million for the years ended
December 31, 2008 and 2007, respectively. |
|
(6) | Represents the denominator for earnings per common unit diluted, calculated in
accordance with GAAP, plus common OP unit equivalents that are dilutive for FFO. |
|
(7) | During the years ended December 31, 2009, 2008 and 2007, we had 6,534,140, 7,191,199,
and 7,367,400 common OP Units outstanding and 2,344,719, 2,367,629 and 2,379,084 High
Performance Units outstanding. |
Liquidity and Capital Resources
Liquidity is the ability to meet present and future financial obligations. Our primary source
of liquidity is cash flow from our operations. Additional sources are proceeds from property sales
and proceeds from refinancings of existing property loans and borrowings under new property loans.
Our principal uses for liquidity include normal operating activities, payments of principal
and interest on outstanding debt, capital additions, distributions paid to unitholders and
distributions paid to noncontrolling interest partners, repurchases of common OP Units from Aimco
in connection with Aimcos concurrent repurchase of its Class A Common Stock, and acquisitions of,
and investments in, properties. We use our cash and cash equivalents and our cash provided by
operating activities to meet short-term liquidity needs. In the event that our cash and cash
equivalents and cash provided by operating activities are not sufficient to cover our short-term
liquidity demands, we have additional means, such as short-term borrowing availability and proceeds
from property sales and refinancings, to help us meet our short-term liquidity demands. We may use
our revolving credit facility for general corporate purposes and to fund investments on an interim
basis. We expect to meet our long-term liquidity requirements, such as debt maturities and property
acquisitions, through long-term borrowings, primarily secured, the issuance of equity securities
(including OP Units), the sale of properties and cash generated from operations.
The state of credit markets and related effect on the overall economy may have an adverse
affect on our liquidity, both through increases in interest rates and credit risk spreads, and
access to financing. As further discussed in Item 7A, Quantitative and Qualitative Disclosures
About Market Risk, we are subject to interest rate risk associated with certain variable rate
liabilities, preferred stock and assets. Based on our net variable rate liabilities, preferred OP
Units and assets outstanding at December 31, 2009, we estimate that a 1.0% increase in 30-day
LIBOR with constant credit risk spreads would reduce our income attributable to the Partnerships
common unitholders by approximately $1.6 million on an annual basis. Although base interest rates
have generally decreased relative to their levels prior to the disruptions in the financial
markets, the tightening of credit markets has affected the credit risk spreads charged over base
interest rates on, and the availability of, property loan financing. For future refinancing
activities, our liquidity and cost of funds may be affected by increases in base interest rates or
higher credit risk spreads. If timely property financing options are not available for maturing
debt, we may consider alternative sources of liquidity, such as reductions in certain capital
spending or proceeds from asset dispositions.
As further discussed in Note 2 to our consolidated financial statements in Item 8, we use
total rate of return swaps as a financing product to lower our cost of borrowing through conversion
of fixed rate tax-exempt bonds payable and fixed rate notes payable to variable interest rates
indexed to the SIFMA rate for tax-exempt bonds payable and the 30-day LIBOR rate for notes payable,
plus a credit risk spread. The cost of financing through these arrangements is generally lower
than the fixed rate on the debt. As of December 31, 2009, we had total rate of return swap
positions with two financial institutions with notional amounts totaling $353.1 million. Swaps
with notional amounts of $307.9 million and $45.2 million had maturity dates in May 2012 and
October 2012, respectively.
The total rate of return swaps require specified loan-to-value ratios. In the event the
values of the real estate properties serving as collateral under these agreements decline or if we
sell properties in the collateral pool with low loan-to-value ratios, certain of our consolidated
subsidiaries have an obligation to pay down the debt or provide additional collateral pursuant to
the swap agreements, which may adversely affect our cash flows. The obligation to
provide collateral is limited to these subsidiaries and is non-recourse to us. At December
31, 2009, these subsidiaries were not required to provide cash collateral based on the
loan-to-value ratios of the real estate properties serving as collateral under these agreements.
15
We periodically evaluate counterparty credit risk associated with these arrangements. At the
current time, we have concluded we do not have material exposure. In the event a counterparty were
to default under these arrangements, loss of the net interest benefit we generally receive under
these arrangements, which is equal to the difference between the fixed rate we receive and the
variable rate we pay, may adversely affect our operating cash flows.
See Derivative Financial Instruments in Note 2 to the consolidated financial statements in
Item 8 for additional discussion of these arrangements, including the current swap maturity dates.
As of December 31, 2009, the amount available under our $180.0 million revolving credit
facility was $136.2 million (after giving effect to $43.8 million outstanding for undrawn letters
of credit). Our total outstanding term loan of $90.0 million at December 31, 2009, matures in
March 2011. We repaid an additional $45.0 million on the term loan through February 26, 2010,
leaving a remaining outstanding balance of $45.0 million. Additionally, we have limited obligations
to fund redevelopment commitments during the year ending December 31, 2010, and no development
commitments.
At December 31, 2009, we had $81.3 million in cash and cash equivalents, a decrease of $218.4
million from December 31, 2008. At December 31, 2009, we had $220.0 million of restricted cash,
primarily consisting of reserves and escrows held by lenders for bond sinking funds, capital
additions, property taxes and insurance. In addition, cash, cash equivalents and restricted cash
are held by partnerships that are not presented on a consolidated basis. The following discussion
relates to changes in cash due to operating, investing and financing activities, which are
presented in our consolidated statements of cash flows in Item 8.
Operating Activities
For the year ended December 31, 2009, our net cash provided by operating activities of $233.8
million was primarily related to operating income from our consolidated properties, which is
affected primarily by rental rates, occupancy levels and operating expenses related to our
portfolio of properties, in excess of payments of operating accounts payable and accrued
liabilities, including amounts related to our organizational restructuring. Cash provided by
operating activities decreased $206.6 million compared with the year ended December 31, 2008,
primarily due to a $159.3 million decrease in operating income related to consolidated properties
included in discontinued operations, which was attributable to property sales in 2009 and 2008, a
$42.8 million decrease in promote income, which is generated by the disposition of properties by
consolidated real estate partnerships, and an increase in payments on operating accounts payable
and accrued expenses, including payments related to our restructuring accrual, in 2009 as compared
to 2008.
Investing Activities
For the year ended December 31, 2009, our net cash provided by investing activities of $630.7
million consisted primarily of proceeds from disposition of real estate and partnership interests,
partially offset by capital expenditures.
Although we hold all of our properties for investment, we sell properties when they do not
meet our investment criteria or are located in areas that we believe do not justify our continued
investment when compared to alternative uses for our capital. During the year ended December 31,
2009, we sold 89 consolidated properties. These properties were sold for an aggregate sales price
of $1.3 billion, or $1.2 billion, after the payment of transaction costs and debt prepayment
penalties. The $1.2 billion is inclusive of promote income and debt assumed by buyers. Net cash
proceeds from property sales were used primarily to repay term debt and for other corporate
purposes.
Capital Additions
We classify all capital additions as Capital Replacements (which we refer to as CR), Capital
Improvements (which we refer to as CI), casualties or redevelopment. Additions other than casualty
or redevelopment capital additions are apportioned between CR and CI based on the useful life of
the capital item under consideration and the period we have owned the property.
CR represents the share of capital additions that are deemed to replace the portion of
acquired capital assets that was consumed during the period we have owned the asset. CI represents
the share of additions that are made to enhance the value, profitability or useful life of an asset
as compared to its original purchase condition. CR and CI exclude capital
additions for casualties and redevelopment. Casualty additions represent capitalized costs
incurred in connection with casualty losses and are associated with the restoration of the asset.
A portion of the restoration costs may be reimbursed by insurance carriers subject to deductibles
associated with each loss. Redevelopment additions represent additions that substantially upgrade
the property.
16
The table below details our share of actual spending, on both consolidated and unconsolidated
real estate partnerships, for CR, CI, casualties and redevelopment for the year ended December 31,
2009, on a per unit and total dollar basis (in thousands, except per unit amounts). Per unit
numbers for CR and CI are based on approximately 97,196 average units for the year, including
81,135 conventional units and 16,061 affordable units. Average units are weighted for the portion
of the period that we owned an interest in the property, represent ownership-adjusted effective
units, and exclude non-managed units.
Per | ||||||||
Our Share of | Effective | |||||||
Additions | Unit | |||||||
Capital Replacements Detail: |
||||||||
Building and grounds |
$ | 32,876 | $ | 338 | ||||
Turnover related |
30,298 | 312 | ||||||
Capitalized site payroll and indirect costs |
7,076 | 73 | ||||||
Our share of Capital Replacements |
$ | 70,250 | $ | 723 | ||||
Capital Replacements: |
||||||||
Conventional |
$ | 64,675 | $ | 797 | ||||
Affordable |
5,575 | $ | 347 | |||||
Our share of Capital Replacements |
70,250 | $ | 723 | |||||
Capital Improvements: |
||||||||
Conventional |
47,634 | $ | 587 | |||||
Affordable |
5,755 | $ | 358 | |||||
Our share of Capital Improvements |
53,389 | $ | 549 | |||||
Casualties: |
||||||||
Conventional |
17,724 | |||||||
Affordable |
1,872 | |||||||
Our share of casualties |
19,596 | |||||||
Redevelopment: |
||||||||
Conventional projects |
66,768 | |||||||
Tax credit projects (1) |
46,066 | |||||||
Our share of redevelopment |
112,834 | |||||||
Our share of capital additions |
256,069 | |||||||
Plus noncontrolling partners share of consolidated additions |
20,062 | |||||||
Less our share of unconsolidated additions |
(687 | ) | ||||||
Total capital additions |
$ | 275,444 | ||||||
(1) | Redevelopment additions on tax credit projects are substantially funded from tax
credit investor contributions. |
Included in the above additions for CI, casualties and redevelopment, was approximately $34.6
million of our share of capitalized site payroll and indirect costs related to these activities for
the year ended December 31, 2009.
We generally fund capital additions with cash provided by operating activities, working
capital and property sales as discussed below.
Financing Activities
For the year ended December 31, 2009, net cash used in financing activities of $1.1 billion
was primarily attributed to debt principal payments, distributions paid to common and preferred
unitholders and distributions to noncontrolling interests, partially offset by proceeds from
property loans.
17
Property Debt
At December 31, 2009 and 2008, we had $5.6 billion and $6.3 billion, respectively, in
consolidated property debt outstanding, which included $117.3 million and $845.1 million,
respectively, of property debt classified within liabilities related to assets held for sale.
During the year ended December 31, 2009, we refinanced or closed property loans on 55 properties
generating $788.1 million of proceeds from borrowings with a weighted average interest rate of
5.78%. Our share of the net proceeds after repayment of existing debt, payment of transaction
costs and distributions to limited partners, was $132.3 million. We used these total net proceeds
for capital expenditures and other corporate purposes. We intend to continue to refinance property
debt primarily as a means of extending current and near term maturities and to finance certain
capital projects.
Term Loans and Credit Facility
We have an Amended and Restated Senior Secured Credit Agreement, as amended, with a syndicate
of financial institutions, which we refer to as the Credit Agreement.
As of December 31, 2009, the Credit Agreement consisted of aggregate commitments of $270.0
million, comprised of our $90.0 million outstanding balance on the term loan and $180.0 million of
revolving loan commitments. The term loan bears interest at LIBOR plus 1.5%, or at our option, a
base rate equal to the prime rate, and matures March 2011. Borrowings under the revolving credit
facility bear interest based on a pricing grid determined by leverage (either at LIBOR plus 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 revolving credit facility matures May 1, 2011, and may be extended for an additional
year, subject to certain conditions, including payment of a 45.0 basis point fee on the total
revolving commitments and repayment of the remaining term loan balance by February 1, 2011.
At December 31, 2009, the term loan had an outstanding principal balance of $90.0 million and
an interest rate of 1.73%. We repaid $45.0 million on the term loan through February 26, 2010,
leaving a remaining outstanding balance of $45.0 million. At December 31, 2009, we had no
outstanding borrowings under the revolving credit facility. The amount available under the
revolving credit facility at December 31, 2009, was $136.2 million (after giving effect to $43.8
million outstanding for undrawn letters of credit issued under the revolving credit facility). The
proceeds of revolving loans are generally permitted to be used to fund working capital and for
other corporate purposes.
Fair Value Measurements
We have entered into total rate of return swaps on various fixed rate secured tax-exempt bonds
payable and fixed rate notes payable to convert these borrowings from a fixed rate to a variable
rate and provide an efficient financing product to lower our cost of borrowing. We designate total
rate of return swaps as hedges of the risk of overall changes in the fair value of the underlying
borrowings. At each reporting period, we estimate the fair value of these borrowings and the total
rate of return swaps and recognize any changes therein as an adjustment of interest expense.
Our method used to calculate the fair value of the total rate of return swaps generally
results in changes in fair value that are equal to the changes in fair value of the related
borrowings, which is consistent with our hedging strategy. We believe that these financial
instruments are highly effective in offsetting the changes in fair value of the related borrowings
during the hedging period, and accordingly, changes in the fair value of these instruments have no
material impact on our liquidity, results of operations or capital resources.
During the year ended December 31, 2009, changes in the fair values of these financial
instruments resulted in increases of $5.2 million in the carrying amount of the hedged borrowings
and equal decreases in accrued liabilities and other for total rate of return swaps. At December
31, 2009, the cumulative recognized changes in the fair value of these financial instruments
resulted in a $24.3 million reduction in the carrying amount of the hedged borrowings offset by an
equal increase in accrued liabilities and other for total rate of return swaps. The cumulative
changes in the fair values of the hedged borrowings and related swaps reflect the recent
uncertainty in the credit markets which has decreased demand and increased pricing for similar debt
instruments.
During the year ended December 31, 2009, we received net cash receipts of $19.4 million under
the total return swaps, which positively affected our liquidity. To the extent interest rates
increase above the fixed rates on the underlying borrowings, our obligations under the total return
swaps will negatively affect our liquidity. At December 31, 2009, we were not required to provide
cash collateral pursuant to the total rate of return swaps. In the event the values of the real
estate properties serving as collateral under these agreements decline, we may be required to
provide additional collateral pursuant to the swap agreements, which would adversely affect our
liquidity.
18
See Note 2 to the consolidated financial statements in Item 8 for more information on our
total rate of return swaps and related borrowings.
Partners Capital Transactions
During the year ended December 31, 2009, we paid cash distributions totaling $59.2 million,
$116.8 million and $92.4 million to preferred unitholders, common unitholders and noncontrolling
interests, respectively. Additionally, we paid distributions totaling $149.0 million to Aimco
through the issuance of approximately 15.5 million common OP units.
During the year ended December 31, 2009, Aimco repurchased 12 shares, or $6.0 million in
liquidation preference, of its CRA Preferred Stock for $4.2 million. Concurrent with Aimcos
repurchase, we repurchased from Aimco an equivalent number of our CRA Preferred Units.
We and Aimco have a shelf registration statement that provides for the issuance of debt
securities by us and debt and equity securities by Aimco.
Contractual Obligations
This table summarizes information contained elsewhere in this Annual Report regarding payments
due under contractual obligations and commitments as of December 31, 2009 (amounts in thousands):
Less than | More than | |||||||||||||||||||
Total | One Year | 1-3 Years | 3-5 Years | 5 Years | ||||||||||||||||
Scheduled long-term debt maturities (1) |
$ | 5,512,216 | $ | 102,193 | $ | 653,868 | $ | 860,998 | $ | 3,895,157 | ||||||||||
Scheduled long-term debt maturities
related to properties classified as
held for sale (1) |
117,271 | 3,620 | 18,071 | 8,485 | 87,095 | |||||||||||||||
Term loan (1) (2) |
90,000 | | 90,000 | | | |||||||||||||||
Redevelopment and other construction
commitments |
4,795 | 4,795 | | | | |||||||||||||||
Leases for space occupied (3) |
24,888 | 7,345 | 10,856 | 4,859 | 1,828 | |||||||||||||||
Other obligations (4) |
4,605 | 4,605 | | | | |||||||||||||||
Total |
$ | 5,753,775 | $ | 122,558 | $ | 772,795 | $ | 874,342 | $ | 3,984,080 | ||||||||||
(1) | Scheduled debt maturities presented above include amortization and the maturities in 2010
consist primarily of amortization. The scheduled maturities presented above exclude related
interest amounts. Refer to Note 6 in the consolidated financial statements in Item 8 for a
description of average interest rates associated with our debt. |
|
(2) | After payments of $45.0 million through February 26, 2010, the term loan had an outstanding
balance of $45.0 million. |
|
(3) | Inclusive of leased space that has been abandoned as part of our organizational
restructuring in 2008 (see Restructuring Costs in Note 3 to the consolidated financial
statements in Item 8). |
|
(4) | Represents a commitment to fund $4.6 million in second mortgage loans on certain properties
in West Harlem, New York City. |
In addition to the amounts presented in the table above, at December 31, 2009, we had $690.5
million of outstanding preferred units outstanding with annual dividend yields ranging from 1.5%
(variable) to 9.4%, and $85.7 million of redeemable preferred units outstanding with annual
distribution yields ranging from 5.9% to 9.5%.
Additionally, we may enter into commitments to purchase goods and services in connection with
the operations of our properties. Those commitments generally have terms of one year or less and
reflect expenditure levels comparable to our historical expenditures.
Future Capital Needs
In addition to the items set forth in Contractual Obligations above, we expect to fund any
future acquisitions, additional redevelopment projects, capital improvements and capital
replacement principally with proceeds from
property sales (including tax-free exchange proceeds), short-term borrowings, debt and equity
financing (including tax credit equity) and operating cash flows.
19
Off-Balance Sheet Arrangements
We own general and limited partner interests in unconsolidated real estate partnerships, in
which our total ownership interests typically range from less than 1% to 50% and in some instances
may exceed 50%. There are no lines of credit, side agreements, or any other derivative financial
instruments related to or between our unconsolidated real estate partnerships and us and no
material exposure to financial guarantees. Accordingly, our maximum risk of loss related to these
unconsolidated real estate partnerships is limited to the aggregate carrying amount of our
investment in the unconsolidated real estate partnerships and any outstanding notes receivable as
reported in our consolidated financial statements (see Note 4 of the consolidated financial
statements in Item 8 for additional information about our investments in unconsolidated real estate
partnerships).
20
Item 8. | Financial Statements and Supplementary Data |
AIMCO PROPERTIES, L.P.
INDEX TO FINANCIAL STATEMENTS
Page | ||||
Financial Statements: |
||||
Report of Independent Registered Public Accounting Firm |
22 | |||
Consolidated Balance Sheets as of December 31, 2009 and 2008 |
23 | |||
Consolidated
Statements of Income for the Years Ended December 31, 2009, 2008 (as restated) and 2007 |
24 | |||
Consolidated Statements of Partners Capital for the Years Ended December 31, 2009, 2008 and 2007 |
25 | |||
Consolidated Statements of Cash Flows for the Years Ended December 31, 2009, 2008 and 2007 |
27 | |||
Notes to Consolidated Financial Statements |
29 | |||
Financial Statement Schedule: |
||||
Schedule III Real Estate and Accumulated Depreciation |
72 |
All other schedules are omitted because they are not applicable or the required information is
shown in the financial statements or notes thereto.
21
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Partners
AIMCO Properties, L.P.
AIMCO Properties, L.P.
We have audited the accompanying consolidated balance sheets of AIMCO Properties, L.P. (the
Partnership) as of December 31, 2009 and 2008, and the related consolidated statements of income,
partners capital and cash flows for each of the three years in the period ended December 31, 2009.
Our audits also included the financial statement schedule listed in the accompanying Index to
Financial Statements. These financial statements and schedule are the responsibility of the
Partnerships management. Our responsibility is to express an opinion on these financial statements
and schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the consolidated financial position of the Partnership at December 31, 2009 and 2008, and
the consolidated results of its operations and its cash flows for each of the three years in the
period ended December 31, 2009, in conformity with United States generally accepted accounting
principles. Also, in our opinion, the related financial statement schedule, when considered in
relation to the basic financial statements taken as a whole, presents fairly, in all material
respects the information set forth therein.
The
consolidated financial statements include retroactive adjustments to
reflect the adoption
in 2009 of Statement of Financial Accounting Standards No. 160, Noncontrolling Interests in
Consolidated Financial Statements, an amendment to ARB 51 (codified in FASB ASC 810), Statement of
Financial Accounting Standards No. 141(R), Business Combinations a replacement of FASB Statement
No 141 (codified in FASB ASC 805), FASB Staff Position No. EITF 03-6-1, Determining Whether
Instruments Granted in Share-Based Payment Transactions are Participating Securities (codified in
FASB ASC 260), and FASB Accounting Standards Update No. 2010-01, Accounting for Distributions to
Shareholders with Components of Stock and Cash (codified in FASB ASC 505). Further, as discussed in Notes 13 and 17, the Partnership
retrospectively adjusted the consolidated financial statements to reflect real estate
assets that meet the definition of a component and have been sold or meet the criteria to be
classified as held for sale at December 31, 2009 pursuant to Statement of Financial Accounting
Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets (codified in FASB
ASC 360), through June 30, 2010, and to reflect changes in its reportable segments. As discussed in Note 2 to the consolidated financial statements,
the consolidated statement of income for the year ended December 31, 2008 has been restated to
reclassify provisions for impairment losses on real estate development assets into operating
income.
We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the Partnerships internal control over financial reporting as of
December 31, 2009, based on criteria established in Internal Control Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated
February 26, 2010 (which is not included herein) expressed an unqualified opinion thereon.
/s/ ERNST & YOUNG LLP
Denver, Colorado
February 26, 2010, except for Notes 13 and 17, as to which the date is September 10, 2010
February 26, 2010, except for Notes 13 and 17, as to which the date is September 10, 2010
22
AIMCO PROPERTIES, L.P.
CONSOLIDATED BALANCE SHEETS
As of December 31, 2009 and 2008
(In thousands)
CONSOLIDATED BALANCE SHEETS
As of December 31, 2009 and 2008
(In thousands)
2009 | 2008 | |||||||
ASSETS |
||||||||
Real estate: |
||||||||
Buildings and improvements |
$ | 7,326,284 | $ | 7,128,152 | ||||
Land |
2,161,010 | 2,144,751 | ||||||
Total real estate |
9,487,294 | 9,272,903 | ||||||
Less accumulated depreciation |
(2,625,542 | ) | (2,250,755 | ) | ||||
Net real estate |
6,861,752 | 7,022,148 | ||||||
Cash and cash equivalents |
81,260 | 299,676 | ||||||
Restricted cash |
219,255 | 252,528 | ||||||
Accounts receivable, net |
59,822 | 90,318 | ||||||
Accounts receivable from affiliates, net |
23,744 | 38,978 | ||||||
Deferred financing costs, net |
51,611 | 50,886 | ||||||
Notes receivable from unconsolidated real estate partnerships, net |
14,295 | 22,567 | ||||||
Notes receivable from non-affiliates, net |
125,269 | 139,897 | ||||||
Notes receivable from Aimco |
16,371 | 15,551 | ||||||
Investment in unconsolidated real estate partnerships |
104,193 | 117,905 | ||||||
Other assets |
185,816 | 198,639 | ||||||
Deferred income tax assets, net |
42,015 | 28,326 | ||||||
Assets held for sale |
136,736 | 1,179,302 | ||||||
Total assets |
$ | 7,922,139 | $ | 9,456,721 | ||||
LIABILITIES AND PARTNERS CAPITAL |
||||||||
Property tax-exempt bond financing |
$ | 574,926 | $ | 629,499 | ||||
Property loans payable |
4,884,233 | 4,858,536 | ||||||
Term loans |
90,000 | 400,000 | ||||||
Other borrowings |
53,057 | 95,981 | ||||||
Total indebtedness |
5,602,216 | 5,984,016 | ||||||
Accounts payable |
29,819 | 64,241 | ||||||
Accrued liabilities and other |
286,328 | 569,997 | ||||||
Deferred income |
180,656 | 193,633 | ||||||
Security deposits |
34,855 | 36,330 | ||||||
Liabilities related to assets held for sale |
121,235 | 858,756 | ||||||
Total liabilities |
6,255,109 | 7,706,973 | ||||||
Redeemable preferred units (Note 11) |
116,656 | 88,148 | ||||||
Commitments and contingencies (Note 8) |
| | ||||||
Partners capital: |
||||||||
Preferred units |
660,500 | 696,500 | ||||||
General Partner and Special Limited Partner |
521,692 | 543,238 | ||||||
Limited Partners |
95,990 | 82,461 | ||||||
High Performance Units |
(40,313 | ) | (37,263 | ) | ||||
Investment in Aimco Class A Common Stock |
(4,621 | ) | (5,109 | ) | ||||
Partners capital attributable to the Partnership |
1,233,248 | 1,279,827 | ||||||
Noncontrolling interests in consolidated real estate partnerships |
317,126 | 381,773 | ||||||
Total partners capital |
1,550,374 | 1,661,600 | ||||||
Total liabilities and partners capital |
$ | 7,922,139 | $ | 9,456,721 | ||||
See notes to consolidated financial statements.
23
AIMCO PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands, except per unit data)
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands, except per unit data)
2009 | 2008 | 2007 | ||||||||||
(as restated | ||||||||||||
see Note 2) | ||||||||||||
REVENUES: |
||||||||||||
Rental and other property revenues |
$ | 1,115,788 | $ | 1,114,340 | $ | 1,072,167 | ||||||
Asset management and tax credit revenues |
49,853 | 98,830 | 73,755 | |||||||||
Total revenues |
1,165,641 | 1,213,170 | 1,145,922 | |||||||||
OPERATING EXPENSES: |
||||||||||||
Property operating expenses |
520,930 | 534,747 | 513,626 | |||||||||
Investment management expenses |
15,779 | 24,784 | 20,507 | |||||||||
Depreciation and amortization |
437,249 | 386,440 | 340,874 | |||||||||
Provision for operating real estate impairment losses |
2,329 | | 1,080 | |||||||||
Provision for impairment losses on real estate development assets |
| 91,138 | | |||||||||
General and administrative expenses |
56,643 | 80,376 | 72,359 | |||||||||
Other expenses, net |
17,303 | 22,606 | 19,224 | |||||||||
Restructuring costs |
11,241 | 22,802 | | |||||||||
Total operating expenses |
1,061,474 | 1,162,893 | 967,670 | |||||||||
Operating income |
104,167 | 50,277 | 178,252 | |||||||||
Interest income |
9,932 | 20,465 | 43,609 | |||||||||
Provision for losses on notes receivable, net |
(21,549 | ) | (17,577 | ) | (2,010 | ) | ||||||
Interest expense |
(319,311 | ) | (318,716 | ) | (307,987 | ) | ||||||
Equity in losses of unconsolidated real estate partnerships |
(12,025 | ) | (4,601 | ) | (3,347 | ) | ||||||
Impairment losses related to unconsolidated real estate partnerships |
(322 | ) | (2,661 | ) | | |||||||
Gain on dispositions of unconsolidated real estate and other |
22,494 | 99,864 | 23,366 | |||||||||
Loss before income taxes and discontinued operations |
(216,614 | ) | (172,949 | ) | (68,117 | ) | ||||||
Income tax benefit |
18,669 | 53,202 | 19,795 | |||||||||
Loss from continuing operations |
(197,945 | ) | (119,747 | ) | (48,322 | ) | ||||||
Income from discontinued operations, net |
153,965 | 747,535 | 174,577 | |||||||||
Net (loss) income |
(43,980 | ) | 627,788 | 126,255 | ||||||||
Net income attributable to noncontrolling interests in consolidated
real estate partnerships |
(22,442 | ) | (155,749 | ) | (92,138 | ) | ||||||
Net (loss) income attributable to the Partnership |
(66,422 | ) | 472,039 | 34,117 | ||||||||
Net income attributable to the Partnerships preferred unitholders |
(56,854 | ) | (61,354 | ) | (73,144 | ) | ||||||
Net income attributable to participating securities |
| (6,985 | ) | (4,481 | ) | |||||||
Net (loss) income attributable to the Partnerships common unitholders |
$ | (123,276 | ) | $ | 403,700 | $ | (43,508 | ) | ||||
Earnings (loss) per common unit basic and diluted: |
||||||||||||
Loss from continuing operations attributable to the Partnerships
common unitholders |
$ | (1.75 | ) | $ | (1.99 | ) | $ | (1.40 | ) | |||
Income from discontinued operations attributable to the Partnerships
common unitholders |
0.75 | 6.10 | 0.98 | |||||||||
Net (loss) income attributable to the Partnerships common unitholders |
$ | (1.00 | ) | $ | 4.11 | $ | (0.42 | ) | ||||
Weighted average common units outstanding basic and diluted |
123,180 | 98,249 | 104,853 | |||||||||
Distributions declared per common unit |
$ | 0.40 | $ | 7.48 | $ | 4.31 | ||||||
See notes to consolidated financial statements.
24
AIMCO PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF PARNTERS CAPITAL
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands)
CONSOLIDATED STATEMENTS OF PARNTERS CAPITAL
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands)
General | Partners | |||||||||||||||||||||||||||||||
Partner | Investment | Capital | ||||||||||||||||||||||||||||||
and Special | High | in Aimco | Attributable | Non- | Total | |||||||||||||||||||||||||||
Preferred | Limited | Limited | Performance | Common | to the | controlling | Partners | |||||||||||||||||||||||||
Units | Partner | Partners | Units | Stock | Partnership | Interests | Capital | |||||||||||||||||||||||||
Balances at December 31, 2006 |
$ | 914,215 | $ | 1,208,866 | $ | 439,903 | $ | (18,308 | ) | $ | (7,074 | ) | $ | 2,537,602 | $ | 216,015 | $ | 2,753,617 | ||||||||||||||
Cumulative effect of change in accounting principle adoption of FIN 48 |
| (763 | ) | (61 | ) | (20 | ) | | (844 | ) | | (844 | ) | |||||||||||||||||||
Redemption of preferred units held by Aimco |
(100,000 | ) | (2,000 | ) | | | | (102,000 | ) | | (102,000 | ) | ||||||||||||||||||||
Common and preferred units redeemed by Limited Partners to Special
Limited Partner |
| 27,853 | (27,853 | ) | | | | | | |||||||||||||||||||||||
Contribution from Aimco related to employee stock purchases, net |
| 1,827 | | | | 1,827 | | 1,827 | ||||||||||||||||||||||||
Contribution from Aimco related to stock option exercises |
| 53,719 | | | | 53,719 | | 53,719 | ||||||||||||||||||||||||
Amortization of Aimco stock-based compensation |
| 19,235 | | | | 19,235 | | 19,235 | ||||||||||||||||||||||||
Contributions from noncontrolling interests |
| | | | | | 203,552 | 203,552 | ||||||||||||||||||||||||
Adjustment to noncontrolling interests from VMS transactions (Note 3)
Effect on transactions with owners (VMS) |
| | | | | | 62,820 | 62,820 | ||||||||||||||||||||||||
Adjustment to noncontrolling interests from consolidation of entities |
| | | | | | 91,219 | 91,219 | ||||||||||||||||||||||||
Redemption of preferred units and common units |
| | (2,181 | ) | | | (2,181 | ) | | (2,181 | ) | |||||||||||||||||||||
Repurchase of common units related to Aimco common stock repurchases |
| (325,822 | ) | | | | (325,822 | ) | | (325,822 | ) | |||||||||||||||||||||
Other, net |
| (1,462 | ) | 2,998 | 720 | | 2,256 | (201 | ) | 2,055 | ||||||||||||||||||||||
Net income (loss) |
73,144 | (35,399 | ) | (2,742 | ) | (886 | ) | | 34,117 | 92,138 | 126,255 | |||||||||||||||||||||
Common distributions |
| (406,854 | ) | (31,329 | ) | (10,246 | ) | 923 | (447,506 | ) | (211,314 | ) | (658,820 | ) | ||||||||||||||||||
Distributions to preferred unitholders |
(72,306 | ) | | | | | (72,306 | ) | | (72,306 | ) | |||||||||||||||||||||
Adjustment to reflect Limited Partners capital at redemption value |
| 125,083 | (125,083 | ) | | | | | | |||||||||||||||||||||||
Balances at December 31, 2007 |
815,053 | 664,283 | 253,652 | (28,740 | ) | (6,151 | ) | 1,698,097 | 454,229 | 2,152,326 | ||||||||||||||||||||||
Redemption of preferred units held by Aimco |
(27,000 | ) | 2,160 | | | | (24,840 | ) | | (24,840 | ) | |||||||||||||||||||||
Common units redeemed by Limited Partners to Special Limited Partner |
| 4,182 | (4,182 | ) | | | | | | |||||||||||||||||||||||
Contribution from Aimco related to employee stock purchases, net |
| 1,671 | | | | 1,671 | | 1,671 | ||||||||||||||||||||||||
Contribution from Aimco related to stock option exercises |
| 481 | | | | 481 | | 481 | ||||||||||||||||||||||||
Amortization of Aimco stock-based compensation |
| 17,573 | | | | 17,573 | | 17,573 | ||||||||||||||||||||||||
Contributions from noncontrolling interests |
| | | | | | 6,854 | 6,854 | ||||||||||||||||||||||||
Adjustment to noncontrolling interests from consolidation of entities |
| | | | | | 14,969 | 14,969 | ||||||||||||||||||||||||
Redemption of preferred units and common units |
(976 | ) | | (2,046 | ) | (1,146 | ) | | (4,168 | ) | | (4,168 | ) | |||||||||||||||||||
Repurchase of common units related to Aimco common stock repurchases |
| (473,532 | ) | | | | (473,532 | ) | | (473,532 | ) | |||||||||||||||||||||
Other, net |
(1,083 | ) | (488 | ) | (8 | ) | 388 | | (1,191 | ) | (572 | ) | (1,763 | ) | ||||||||||||||||||
Net income |
61,354 | 370,729 | 30,059 | 9,897 | | 472,039 | 155,749 | 627,788 | ||||||||||||||||||||||||
Common units issued to Aimco pursuant to special distributions |
| 487,477 | | | | 487,477 | | 487,477 | ||||||||||||||||||||||||
Common distributions |
| (675,416 | ) | (50,896 | ) | (17,662 | ) | 1,042 | (742,932 | ) | (249,456 | ) | (992,388 | ) | ||||||||||||||||||
Distributions to preferred unitholders |
(62,700 | ) | | | | | (62,700 | ) | (62,700 | ) | ||||||||||||||||||||||
Reclassification of redeemable preferred units to temporary capital
(Note 11) |
(88,148 | ) | | | | | (88,148 | ) | | (88,148 | ) | |||||||||||||||||||||
Adjustment to reflect Limited Partners capital at redemption value |
| 144,118 | (144,118 | ) | | | | | | |||||||||||||||||||||||
Balances at December 31, 2008 |
$ | 696,500 | $ | 543,238 | $ | 82,461 | $ | (37,263 | ) | $ | (5,109 | ) | $ | 1,279,827 | $ | 381,773 | $ | 1,661,600 |
See notes to consolidated financial statements.
25
AIMCO PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF PARNTERS CAPITAL
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands)
CONSOLIDATED STATEMENTS OF PARNTERS CAPITAL
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands)
General | Partners | |||||||||||||||||||||||||||||||
Partner | High | Investment | Capital | |||||||||||||||||||||||||||||
and Special | in Aimco | Attributable | Non- | Total | ||||||||||||||||||||||||||||
Preferred | Limited | Limited | Performance | Common | to the | controlling | Partners | |||||||||||||||||||||||||
Units | Partner | Partners | Units | Stock | Partnership | Interests | Capital | |||||||||||||||||||||||||
Redemption of preferred units held by Aimco |
(6,000 | ) | 1,800 | | | | (4,200 | ) | | (4,200 | ) | |||||||||||||||||||||
Common units redeemed by Limited Partners to Special Limited Partner |
| 7,085 | (7,085 | ) | | | | | | |||||||||||||||||||||||
Amortization of Aimco stock-based compensation |
| 8,007 | | | | 8,007 | | 8,007 | ||||||||||||||||||||||||
Contribution from noncontrolling interests |
| | | | | | 5,535 | 5,535 | ||||||||||||||||||||||||
Redemption of preferred units and common units |
| | (980 | ) | | | (980 | ) | | (980 | ) | |||||||||||||||||||||
Other, net |
| 4,164 | | | | 4,164 | (720 | ) | 3,444 | |||||||||||||||||||||||
Net income (loss) |
50,566 | (114,390 | ) | (6,539 | ) | (2,347 | ) | | (72,710 | ) | 22,442 | (50,268 | ) | |||||||||||||||||||
Common units issued to Aimco pursuant to special distributions |
| 148,746 | | | | 148,746 | | 148,746 | ||||||||||||||||||||||||
Common distributions |
| (46,880 | ) | (1,945 | ) | (703 | ) | 488 | (49,040 | ) | (91,904 | ) | (140,944 | ) | ||||||||||||||||||
Distributions to preferred unitholders |
(50,566 | ) | | | | | (50,566 | ) | | (50,566 | ) | |||||||||||||||||||||
Reclassification of redeemable preferred units to temporary capital
(Note 11) |
(30,000 | ) | | | | | (30,000 | ) | | (30,000 | ) | |||||||||||||||||||||
Adjustment to reflect Limited Partners capital at redemption value |
| (30,078 | ) | 30,078 | | | | | | |||||||||||||||||||||||
Balances at December 31, 2009 |
$ | 660,500 | $ | 521,692 | $ | 95,990 | $ | (40,313 | ) | $ | (4,621 | ) | $ | 1,233,248 | $ | 317,126 | $ | 1,550,374 | ||||||||||||||
See notes to consolidated financial statements.
26
AIMCO PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands)
2009 | 2008 | 2007 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
Net (loss) income |
$ | (43,980 | ) | $ | 627,788 | $ | 126,255 | |||||
Adjustments to reconcile net (loss) income to net cash provided by operating
activities: |
||||||||||||
Depreciation and amortization |
437,249 | 386,440 | 340,874 | |||||||||
Equity in losses of unconsolidated real estate partnerships |
12,025 | 4,601 | 3,347 | |||||||||
Provision for impairment losses on real estate development assets |
| 91,138 | | |||||||||
Provision for operating real estate impairment losses |
2,329 | | 1,080 | |||||||||
Gain on dispositions of unconsolidated real estate and other |
(22,494 | ) | (99,864 | ) | (23,366 | ) | ||||||
Income tax benefit |
(18,669 | ) | (53,202 | ) | (19,795 | ) | ||||||
Stock-based compensation expense |
6,666 | 13,833 | 14,921 | |||||||||
Amortization of deferred loan costs and other |
10,845 | 9,950 | 7,916 | |||||||||
Distributions of earnings from unconsolidated entities |
4,893 | 14,619 | 4,239 | |||||||||
Discontinued operations: |
||||||||||||
Depreciation and amortization |
58,319 | 129,108 | 159,064 | |||||||||
Gain on disposition of real estate |
(221,793 | ) | (800,335 | ) | (117,628 | ) | ||||||
Other adjustments to income from discontinued operations |
53,973 | 67,214 | (25,167 | ) | ||||||||
Changes in operating assets and operating liabilities: |
||||||||||||
Accounts receivable |
27,067 | 4,848 | 7,453 | |||||||||
Other assets |
1,620 | 56,369 | (10,500 | ) | ||||||||
Accounts payable, accrued liabilities and other |
(74,238 | ) | (12,139 | ) | 14,249 | |||||||
Total adjustments |
277,792 | (187,420 | ) | 356,687 | ||||||||
Net cash provided by operating activities |
233,812 | 440,368 | 482,942 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||
Purchases of real estate |
| (112,655 | ) | (201,434 | ) | |||||||
Capital expenditures |
(300,344 | ) | (665,233 | ) | (689,719 | ) | ||||||
Proceeds from dispositions of real estate |
875,931 | 2,060,344 | 431,863 | |||||||||
Change in funds held in escrow from tax-free exchanges |
| 345 | 25,863 | |||||||||
Proceeds from sale of interests and distributions from real estate partnerships |
25,067 | 94,277 | 198,998 | |||||||||
Purchases of partnership interests and other assets |
(6,842 | ) | (28,121 | ) | (86,204 | ) | ||||||
Originations of notes receivable |
(5,778 | ) | (6,911 | ) | (10,812 | ) | ||||||
Proceeds from repayment of notes receivable |
5,264 | 8,929 | 14,370 | |||||||||
Distributions received from Aimco |
488 | 1,042 | 923 | |||||||||
Other investing activities |
36,956 | (6,106 | ) | 45,476 | ||||||||
Net cash provided by (used in) investing activities |
630,742 | 1,345,911 | (270,676 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||
Proceeds from property loans |
772,443 | 949,549 | 1,552,048 | |||||||||
Principal repayments on property loans |
(1,076,318 | ) | (1,291,543 | ) | (850,484 | ) | ||||||
Proceeds from tax-exempt bond financing |
15,727 | 50,100 | 82,350 | |||||||||
Principal repayments on tax-exempt bond financing |
(157,862 | ) | (217,361 | ) | (70,029 | ) | ||||||
(Payments on) borrowings under term loans |
(310,000 | ) | (75,000 | ) | 75,000 | |||||||
Net repayments on revolving credit facility |
| | (140,000 | ) | ||||||||
Proceeds from (payments on) other borrowings |
(40,085 | ) | 21,367 | (8,468 | ) | |||||||
Repurchases and redemptions of preferred units |
(4,200 | ) | (24,840 | ) | (102,000 | ) | ||||||
Repurchase of common units |
| (502,296 | ) | (307,382 | ) | |||||||
Proceeds from Class A Common Stock option exercises |
| 481 | 53,719 | |||||||||
Payment of distributions to noncontrolling interests |
(92,421 | ) | (248,537 | ) | (168,499 | ) | ||||||
Payment of distributions to General Partner and Special Limited Partner |
(95,823 | ) | (213,328 | ) | (231,729 | ) | ||||||
Payment of distributions to Limited Partners |
(15,403 | ) | (55,770 | ) | (16,760 | ) | ||||||
Payment of distributions to High Performance Units |
(5,580 | ) | (18,757 | ) | (5,710 | ) | ||||||
Payment of distributions to preferred units |
(59,172 | ) | (62,733 | ) | (74,221 | ) | ||||||
Other financing activities |
(14,276 | ) | (8,396 | ) | (19,464 | ) | ||||||
Net cash used in financing activities |
(1,082,970 | ) | (1,697,064 | ) | (231,629 | ) | ||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
(218,416 | ) | 89,215 | (19,363 | ) | |||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
299,676 | 210,461 | 229,824 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR |
$ | 81,260 | $ | 299,676 | $ | 210,461 | ||||||
See notes to consolidated financial statements.
27
AIMCO PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2009, 2008 and 2007
(In thousands)
2009 | 2008 | 2007 | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: |
||||||||||||
Interest paid |
$ | 348,341 | $ | 434,645 | $ | 452,324 | ||||||
Cash paid for income taxes |
4,560 | 13,780 | 2,994 | |||||||||
Non-cash transactions associated with the acquisition of real estate and
interests in unconsolidated real estate partnerships: |
||||||||||||
Secured debt assumed in connection with purchase of real estate |
| | 16,000 | |||||||||
Issuance of OP Units for interests in unconsolidated real estate partnerships
and acquisitions of real estate |
| | 2,998 | |||||||||
Non-cash transactions associated with the disposition of real estate: |
||||||||||||
Secured debt assumed in connection with the disposition of real estate |
314,265 | 157,394 | 27,929 | |||||||||
Issuance of notes receivable connection with the disposition of real estate |
3,605 | 10,372 | | |||||||||
Non-cash transactions associated with consolidation of real estate partnerships: |
||||||||||||
Real estate, net |
6,058 | 25,830 | 56,877 | |||||||||
Investments in and notes receivable primarily from affiliated entities |
4,326 | 4,497 | 84,545 | |||||||||
Restricted cash and other assets |
(1,682 | ) | 5,483 | 8,545 | ||||||||
Secured debt |
2,031 | 22,036 | 41,296 | |||||||||
Accounts payable, accrued and other liabilities |
6,769 | 14,020 | 48,602 | |||||||||
Other non-cash transactions: |
||||||||||||
Redemption of common OP Units for Aimco Class A Common Stock |
7,085 | 4,182 | 27,810 | |||||||||
Conversion of preferred units and securities into common units |
| | 43 | |||||||||
(Cancellation) origination of notes receivable from officers of Aimco, net |
(1,452 | ) | (385 | ) | 2,386 | |||||||
Common OP Units issued to Aimco pursuant to special distributions (Note 11) |
(148,746 | ) | (487,477 | ) | |
See notes to consolidated financial statements.
28
AIMCO PROPERTIES, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2009
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2009
NOTE 1 Organization
AIMCO Properties, L.P., a Delaware limited partnership, or the Partnership, and together with
its consolidated subsidiaries was formed on May 16, 1994 to conduct the business of acquiring,
redeveloping, leasing, and managing multifamily apartment properties. Our securities include
Partnership Common Units, or common OP Units, Partnership Preferred Units, or preferred OP Units,
and High Performance Partnership Units, or High Performance Units, which are collectively referred
to as OP Units. Apartment Investment and Management Company, or Aimco, is the owner of our
general partner, AIMCO-GP, Inc., or the General Partner, and special limited partner, AIMCO-LP
Trust, or the Special Limited Partner. The General Partner and Special Limited Partner hold common
OP Units and are the primary holders of outstanding preferred OP Units. Limited Partners refers
to individuals or entities that are our limited partners, other than Aimco, the General Partner or
the Special Limited Partner, and own common OP Units or preferred OP Units. Generally, after
holding the common OP Units for one year, the Limited Partners have the right to redeem their
common OP Units for cash, subject to our prior right to acquire some or all of the common OP Units
tendered for redemption in exchange for shares of Aimco Class A Common Stock. Common OP Units
redeemed for Aimco Class A Common Stock are generally exchanged on a one-for-one basis (subject to
antidilution adjustments). Preferred OP Units and High Performance Units may or may not be
redeemable based on their respective terms, as provided for in the Third Amended and Restated
Agreement of Limited Partnership of AIMCO Properties, L.P. as amended, or the Partnership
Agreement.
We, through our operating divisions and subsidiaries, hold substantially all of Aimcos assets
and manage the daily operations of Aimcos business and assets. Aimco is required to contribute
all proceeds from offerings of its securities to us. In addition, substantially all of Aimcos
assets must be owned through the Partnership; therefore, Aimco is generally required to contribute
all assets acquired to us. In exchange for the contribution of offering proceeds or assets, Aimco
receives additional interests in us with similar terms (e.g., if Aimco contributes proceeds of a
preferred stock offering, Aimco (through the General Partner and Special Limited Partner) receives
preferred OP Units with terms substantially similar to the preferred securities issued by Aimco).
Aimco frequently consummates transactions for our benefit. For legal, tax or other business
reasons, Aimco may hold title or ownership of certain assets until they can be transferred to us.
However, we have a controlling financial interest in substantially all of Aimcos assets in the
process of transfer to us. Except as the context otherwise requires, we, our and us refer to
the Partnership, and the Partnerships consolidated entities, collectively. Except as the context
otherwise requires, Aimco refers to Aimco and Aimcos consolidated entities, collectively.
As of December 31, 2009, we:
| owned an equity interest in and consolidated 95,202 units in 426 properties (which we
refer to as consolidated properties), of which 93,098 units were also managed by us; |
| owned an equity interest in and did not consolidate 8,478 units in 77 properties (which
we refer to as unconsolidated properties), of which 3,594 units were also managed by us;
and |
| provided services for or managed 31,974 units in 367 properties, primarily pursuant to
long-term agreements (including 29,879 units in 345 properties for which we provide asset
management services only, and not also property management services). In certain cases, we
may indirectly own generally less than one percent of the operations of such properties
through a partnership syndication or other fund. |
At December 31, 2009, we had outstanding 122,509,304 common OP Units, 28,096,618 preferred OP
Units and 2,344,719 High Performance Units. At December 31, 2009, Aimco owned 116,479,791 of the
common OP Units and 24,940,134 of the preferred OP Units.
29
NOTE 2 Basis of Presentation and Summary of Significant Accounting Policies
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Partnership and
its consolidated entities. Pursuant to a Management and Contribution Agreement between the
Partnership and Aimco, we have acquired, in exchange for interests in the Partnership, the economic
benefits of subsidiaries of Aimco in which we do not have an interest, and Aimco has granted us a
right of first refusal to acquire such subsidiaries assets for no additional consideration.
Pursuant to the agreement, Aimco has also granted us certain rights with respect to assets of such
subsidiaries. We consolidate all variable interest entities for which we are the primary
beneficiary. Generally, we consolidate real estate partnerships and other entities that are not
variable interest entities when we own, directly or indirectly, a majority voting interest in the
entity or are otherwise able to control the entity. All significant intercompany balances and
transactions have been eliminated in consolidation.
Interests held in consolidated real estate partnerships by limited partners other than us are
reflected as noncontrolling interests in consolidated real estate partnerships. The assets of
consolidated real estate partnerships owned or controlled by Aimco or us generally are not
available to pay creditors of Aimco or the Partnership.
As used herein, and except where the context otherwise requires, partnership refers to a
limited partnership or a limited liability company and partner refers to a partner in a limited
partnership or a member in a limited liability company.
Variable Interest Entities
We consolidate all variable interest entities for which we are the primary beneficiary.
Generally, a variable interest entity, or VIE, is an entity with one or more of the following
characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to
finance its activities without additional subordinated financial support; (b) as a group, the
holders of the equity investment at risk lack (i) the ability to make decisions about an entitys
activities through voting or similar rights, (ii) the obligation to absorb the expected losses of
the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the
equity investors have voting rights that are not proportional to their economic interests and
substantially all of the entitys activities either involve, or are conducted on behalf of, an
investor that has disproportionately few voting rights. The primary beneficiary generally is the
entity that will receive a majority of the VIEs expected losses, receive a majority of the VIEs
expected residual returns, or both.
In determining whether we are the primary beneficiary of a VIE, we consider qualitative and
quantitative factors, including, but not limited to: the amount and characteristics of our
investment; the obligation or likelihood for us or other investors to provide financial support;
our and the other investors ability to control or significantly influence key decisions for the
VIE; and the similarity with and significance to the business activities of us and the other
investors. Significant judgments related to these determinations include estimates about the
current and future fair values and performance of real estate held by these VIEs and general market
conditions.
As of December 31, 2009, we were the primary beneficiary of, and therefore consolidated, 90
VIEs, which owned 67 apartment properties with 9,652 units. Real estate with a carrying amount of
$769.4 million collateralized $474.3 million of debt of those VIEs. The creditors of the
consolidated VIEs do not have recourse to our general credit. As of December 31, 2009, we also
held variable interests in 120 VIEs for which we were not the primary beneficiary. Those VIEs
consist primarily of partnerships that are engaged, directly or indirectly, in the ownership and
management of 172 apartment properties with 9,566 units. We are involved with those VIEs as an
equity holder, lender, management agent, or through other contractual relationships. At December
31, 2009, our maximum exposure to loss as a result of our involvement with unconsolidated VIEs is
limited to our recorded investments in and receivables from those VIEs totaling $107.5 million and
our contractual obligation to advance funds to certain VIEs totaling $4.6 million. We may be
subject to additional losses to the extent of any financial support that we voluntarily provide in
the future. Additionally, the provision of financial support in the future may require us to
consolidate a VIE.
In December 2009, the FASB issued Accounting Standards Update 2009-17, Improvements to
Financial Reporting by Enterprises Involved with Variable Interest Entities, or ASU 2009-17, which
is effective for fiscal years beginning after November 15, 2009. ASU 2009-17, which modifies the
guidance in FASB ASC Topic 810, introduces a more qualitative approach to evaluating VIEs for
consolidation and requires a company to perform an analysis to determine whether its variable
interests give it a controlling financial interest in a VIE. This analysis identifies the primary
beneficiary of a VIE as the entity that has (a) the power to direct the activities of the VIE that
most significantly impact the VIEs economic performance, and (b) the obligation to absorb losses
or the right to receive benefits that could
potentially be significant to the VIE. In determining whether it has the power to direct the
activities of the VIE that most significantly affect the VIEs performance, ASU 2009-17 requires a
company to assess whether it has an implicit financial responsibility to ensure that a VIE operates
as designed, requires continuous reassessment of primary beneficiary status rather than periodic,
event-driven assessments as previously required, and incorporates expanded disclosure requirements.
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Our adoption of ASU 2009-17 during 2010 may result in changes in our conclusions regarding
whether we are required to consolidate certain unconsolidated real estate partnerships that are
VIEs. As of December 31, 2009, in addition to the unconsolidated VIEs discussed above, we held
insignificant partnership interests in VIEs that own approximately 250 properties. We hold general
and/or limited partner interests generally ranging from less than 1% to 5% and our recorded
investment in these entities is typically limited to accounts receivable from our provision of
property management and asset management services to these partnerships. We may be required to
consolidate some of these VIEs if we conclude that we control the activities that are significant
to the VIEs economic performance. Additionally, we may be required to deconsolidate certain VIEs
that we currently consolidate if we conclude we do not control the activities that are significant
to such VIEs economic performance. We have not yet completed our evaluation of ASU 2009-17 and
therefore have not determined the effect our adoption of ASU 2009-17 will have on our consolidated
financial statements.
Acquisition of Real Estate Assets and Related Depreciation and Amortization
We capitalize the purchase price and incremental direct costs associated with the acquisition
of properties as the cost of the assets acquired. We allocate the cost of acquired properties to
tangible assets and identified intangible assets based on their fair values. We determine the fair
value of tangible assets, such as land, building, furniture, fixtures and equipment, on an as-if
vacant basis, generally using internal valuation techniques that consider comparable market
transactions, discounted cash flow techniques, replacement costs and other available information.
We determine the fair value of identified intangible assets (or liabilities), which typically
relate to in-place leases, using internal valuation techniques that consider the terms of the
in-place leases, current market data for comparable leases, and our experience in leasing similar
properties. The intangible assets or liabilities related to in-place leases are comprised of:
1. | The value of the above- and below-market leases in-place. An asset or liability is
recognized based on the difference between (a) the contractual amounts to be paid pursuant
to the in-place leases and (b) our estimate of fair market lease rates for the
corresponding in-place leases, measured over the period, including estimated lease renewals
for below-market leases, that the leases are expected to remain in effect. |
2. | The estimated unamortized portion of avoided leasing commissions and other costs that
ordinarily would be incurred to acquire the in-place leases. |
3. | The value associated with vacant units during the absorption period (estimates of lost
rental revenue during the expected lease-up periods based on current market demand and
stabilized occupancy levels). |
The values of the above- and below-market leases are amortized to rental revenue over the
expected remaining terms of the associated leases. Other intangible assets related to in-place
leases are amortized to depreciation and amortization over the expected remaining terms of the
associated leases. Amortization is adjusted, as necessary, to reflect any early lease terminations
that were not anticipated in determining amortization periods.
Depreciation for all tangible real estate assets is calculated using the straight-line method
over their estimated useful lives. Acquired buildings and improvements are depreciated over a
composite life of 14 to 52 years, based on the age, condition and other physical characteristics of
the property. As discussed under Impairment of Long Lived Assets below, we may adjust depreciation
of properties that are expected to be disposed of or demolished prior to the end of their useful
lives. Furniture, fixtures and equipment associated with acquired properties are depreciated over
five years.
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At December 31, 2009 and 2008, deferred income in our consolidated balance sheets includes
below-market lease amounts totaling $31.8 million and $36.2 million, respectively, which are net of
accumulated amortization of $21.0 million and $16.6 million, respectively. Additions to
below-market leases resulting from acquisitions during the year ended December 31, 2007 totaled
$18.9 million, and there were no such additions during the years ended December 31, 2009 or 2008.
During the years ended December 31, 2009, 2008 and 2007, we included amortization of below-market
leases of $4.4 million, $4.4 million and $4.6 million, respectively, in rental and other property
revenues in our consolidated statements of income. During the year ended December 31, 2008, we
revised the estimated fair value of assets acquired and liabilities assumed in acquisitions
completed in 2007, resulting in a $4.7 million reduction of below-market lease values and a
corresponding reduction in buildings and improvements. At December 31, 2009, our below-market leases had a weighted average amortization period of 7.1 years and estimated aggregate
amortization for each of the five succeeding years as follows (in millions):
2010 | 2011 | 2012 | 2013 | 2014 | ||||||||||||||||
Estimated amortization |
$ | 3.9 | $ | 3.6 | $ | 3.2 | $ | 2.8 | $ | 2.5 |
Capital Additions and Related Depreciation
We capitalize costs, including certain indirect costs, incurred in connection with our capital
additions activities, including redevelopment and construction projects, other tangible property
improvements, and replacements of existing property components. Included in these capitalized
costs are payroll costs associated with time spent by site employees in connection with the
planning, execution and control of all capital additions activities at the property level. We
characterize as indirect costs an allocation of certain department costs, including payroll, at
the area operations and corporate levels that clearly relate to capital additions activities. We
capitalize interest, property taxes and insurance during periods in which redevelopment and
construction projects are in progress. We charge to expense as incurred costs that do not relate
to capital expenditure activities, including ordinary repairs, maintenance, resident turnover costs
and general and administrative expenses.
We depreciate capitalized costs using the straight-line method over the estimated useful life
of the related component or improvement, which is generally five, 15 or 30 years. All capitalized
site payroll and indirect costs are allocated proportionately, based on direct costs, among capital
projects and depreciated over the estimated useful lives of such projects.
Certain homogeneous items that are purchased in bulk on a recurring basis, such as carpeting
and appliances, are depreciated using group methods that reflect the average estimated useful life
of the items in each group. Except in the case of property casualties, where the net book value of
lost property is written off in the determination of casualty gains or losses, we generally do not
recognize any loss in connection with the replacement of an existing property component because
normal replacements are considered in determining the estimated useful lives used in connection
with our composite and group depreciation methods.
For the years ended December 31, 2009, 2008 and 2007, for continuing and discontinued
operations, we capitalized $9.8 million, $25.7 million and $30.8 million, respectively, of interest
costs, and $40.0 million, $78.1 million and $78.1 million, respectively, of site payroll and
indirect costs, respectively.
Impairment of Long-Lived Assets
Our real estate and other long-lived assets classified as held for use are stated at cost,
less accumulated depreciation and amortization, unless the carrying amounts are not recoverable.
If events or circumstances indicate that the carrying amount of a property may not be recoverable,
we make an assessment of its recoverability by comparing the carrying amount to our estimate of the
undiscounted future cash flows, excluding interest charges, of the property. If the carrying
amount exceeds the aggregate undiscounted future cash flows, we recognize an impairment loss to the
extent the carrying amount exceeds the estimated fair value of the property.
In connection with the preparation of our 2008 annual financial statements, we assessed the
recoverability of our investment in our Lincoln Place property, located in Venice, California.
Based upon the declines in land values in Southern California during 2008 and the expected timing
of our redevelopment efforts, we determined that the total carrying amount of the property was no
longer probable of full recovery and, accordingly, during the three months ended December 31, 2008,
recognized an impairment loss of $85.4 million ($55.6 million net of tax).
Similarly, we assessed the recoverability of our investment in Pacific Bay Vistas (formerly
Treetops), a vacant property located in San Bruno, California, and determined that the carrying
amount of the property was no longer probable of full recovery and, accordingly, we recognized an
impairment loss of $5.7 million for this property during the three months ended December 31, 2008.
In addition to the impairments of Lincoln Place and Pacific Bay Vistas, based on periodic
tests of recoverability of long-lived assets, for the years ended December 31, 2009 and 2007, we
recorded real estate impairment losses of $2.3 million and $1.1 million, respectively, related to
properties classified as held for use. For the year ended December 31, 2008, we recorded no
similar impairment losses related to properties classified as held for use.
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We report impairment losses or recoveries related to properties sold or classified as held for
sale in discontinued operations.
Our tests of recoverability address real estate assets that do not currently meet all
conditions to be classified as held for sale, but are expected to be disposed of prior to the end
of their estimated useful lives. If an impairment loss is not required to be recorded, the
recognition of depreciation is adjusted prospectively, as necessary, to reduce the carrying amount
of the real estate to its estimated disposition value over the remaining period that the real
estate is expected to be held and used. We also may adjust depreciation prospectively to reduce to
zero the carrying amount of buildings that we plan to demolish in connection with a redevelopment
project. These depreciation adjustments decreased net income available to the Partnerships common
unitholders by $19.6 million, $11.8 million and $37.3 million, and resulted in decreases in basic
and diluted earnings per unit of $0.16, $0.12 and $0.36, for the years ended December 31, 2009,
2008 and 2007, respectively.
Cash Equivalents
We classify highly liquid investments with an original maturity of three months or less as
cash equivalents.
Restricted Cash
Restricted cash includes capital replacement reserves, completion repair reserves, bond
sinking fund amounts and tax and insurance escrow accounts held by lenders.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are generally comprised of amounts receivable from residents, amounts
receivable from non-affiliated real estate partnerships for which we provide property management
and other services and other miscellaneous receivables from non-affiliated entities. We evaluate
collectibility of accounts receivable from residents and establish an allowance, after the
application of security deposits and other anticipated recoveries, for accounts greater than 30
days past due for current residents and all receivables due from former residents. Accounts
receivable from residents are stated net of allowances for doubtful accounts of approximately $1.4
million and $3.3 million as of December 31, 2009 and 2008, respectively.
We evaluate collectibility of accounts receivable from non-affiliated entities and establish
an allowance for amounts that are considered to be uncollectible. Accounts receivable relating to
non-affiliated entities are stated net of allowances for doubtful accounts of approximately $5.4
million and $5.0 million as of December 31, 2009 and 2008, respectively.
Accounts Receivable and Allowance for Doubtful Accounts from Affiliates
Accounts receivable from affiliates are generally comprised of receivables related to property
management and other services provided to unconsolidated real estate partnerships in which we have
an ownership interest. We evaluate collectibility of accounts receivable balances from affiliates
on a periodic basis, and establish an allowance for the amounts deemed to be uncollectible.
Accounts receivable from affiliates are stated net of allowances for doubtful accounts of
approximately $1.9 million and $2.8 million as of December 31, 2009 and 2008, respectively.
Deferred Costs
We defer lender fees and other direct costs incurred in obtaining new financing and amortize
the amounts over the terms of the related loan agreements. Amortization of these costs is included
in interest expense.
We defer leasing commissions and other direct costs incurred in connection with successful
leasing efforts and amortize the costs over the terms of the related leases. Amortization of these
costs is included in depreciation and amortization.
Notes Receivable from Unconsolidated Real Estate Partnerships and Non-Affiliates and Related
Interest Income and Provision for Losses
Notes receivable from unconsolidated real estate partnerships consist primarily of notes
receivable from partnerships in which we are the general partner but do not consolidate the
partnership. The ultimate repayment of these notes and those from non-affiliates is subject to a
number of variables, including the performance and value of the underlying real estate property and
the claims of unaffiliated mortgage lenders. Our notes receivable include loans extended by us
that
we carry at the face amount plus accrued interest, which we refer to as par value notes, and
loans extended by predecessors whose positions we generally acquired at a discount, which we refer
to as discounted notes.
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We record interest income on par value notes as earned in accordance with the terms of the
related loan agreements. We discontinue the accrual of interest on such notes when the notes are
impaired, as discussed below, or when there is otherwise significant uncertainty as to the
collection of interest. We record income on such nonaccrual loans using the cost recovery method,
under which we apply cash receipts first to the recorded amount of the loan; thereafter, any
additional receipts are recognized as income.
We recognize interest income on discounted notes receivable based upon whether the amount and
timing of collections are both probable and reasonably estimable. We consider collections to be
probable and reasonably estimable when the borrower has closed or entered into certain pending
transactions (which include real estate sales, refinancings, foreclosures and rights offerings)
that provide a reliable source of repayment. In such instances, we recognize accretion income, on
a prospective basis using the effective interest method over the estimated remaining term of the
loans, equal to the difference between the carrying amount of the discounted notes and the
estimated collectible value. We record income on all other discounted notes using the cost
recovery method.
We assess the collectibility of notes receivable on a periodic basis, which assessment
consists primarily of an evaluation of cash flow projections of the borrower to determine whether
estimated cash flows are sufficient to repay principal and interest in accordance with the
contractual terms of the note. We recognize impairments on notes receivable when it is probable
that principal and interest will not be received in accordance with the contractual terms of the
loan. The amount of the impairment to be recognized generally is based on the fair value of the
partnerships real estate that represents the primary source of loan repayment. In certain
instances where other sources of cash flow are available to repay the loan, the impairment is
measured by discounting the estimated cash flows at the loans original effective interest rate.
See Note 5 for further discussion of Notes Receivable.
Investments in Unconsolidated Real Estate Partnerships
We own general and limited partner interests in real estate partnerships that own apartment
properties. We generally account for investments in real estate partnerships that we do not
consolidate under the equity method. Under the equity method, our share of the earnings or losses
of the entity for the periods being presented is included in equity in earnings (losses) from
unconsolidated real estate partnerships, except for our share of impairments and property
disposition gains related to such entities, which we report separately in the consolidated
statements of income. Certain investments in real estate partnerships that were acquired in
business combinations were determined to have insignificant value at the acquisition date and are
accounted for under the cost method. Any distributions received from such partnerships are
recognized as income when received.
The excess of the cost of the acquired partnership interests over the historical carrying
amount of partners equity or deficit is ascribed generally to the fair values of land and
buildings owned by the partnerships. We amortize the excess cost related to the buildings over the
estimated useful lives of the buildings. Such amortization is recorded as a component of equity in
earnings (losses) of unconsolidated real estate partnerships.
Intangible Assets
At December 31, 2009 and 2008, other assets included goodwill associated with our real estate
segment of $71.8 million and $81.9 million, respectively. We perform an annual impairment test of
goodwill that compares the fair value of reporting units with their carrying amounts, including
goodwill. We determined that our goodwill was not impaired in 2009, 2008 or 2007.
During the year ended December 31, 2009, we allocated $10.1 million of goodwill related to our
real estate segment to the carrying amounts of the properties sold or classified as held for sale.
The amounts of goodwill allocated to these properties were based on the relative fair values of the
properties sold or classified as held for sale and the retained portions of the reporting units to
which the goodwill as allocated. During 2008 and 2007, we did not allocate any goodwill to
properties sold or classified as held for sale as real estate properties were not considered
businesses under then applicable accounting principles generally accepted in the United States of
America, or GAAP.
Other assets also includes intangible assets for purchased management contracts with finite
lives that we amortize on a straight-line basis over terms ranging from five to 20 years and
intangible assets for in-place leases as discussed under Acquisition of Real Estate Assets and
Related Depreciation and Amortization.
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Capitalized Software Costs
Purchased software and other costs related to software developed for internal use are
capitalized during the application development stage and are amortized using the straight-line
method over the estimated useful life of the software, generally five years. We write-off the
costs of software development projects when it is no longer probable that the software will be
completed and placed in service. For the years ended December 31, 2009, 2008 and 2007, we
capitalized software development costs totaling $5.6 million, $20.9 million and $11.9 million,
respectively. At December 31, 2009 and 2008, other assets included $29.7 million and $35.7 million
of net capitalized software, respectively. During the years ended December 31, 2009, 2008 and
2007, we recognized amortization of capitalized software of $11.5 million, $10.0 million and $10.8
million, respectively, which is included in depreciation and amortization in our consolidated
statements of income.
During the year ended December 31, 2008, we reassessed our approach to communication
technology needs at our properties, which resulted in the discontinuation of an infrastructure
project and a $5.4 million write-off of related hardware and capitalized internal and consulting
costs included in other assets. The write-off, which is net of sales proceeds, is included in
other expenses, net. During the year ended December 31, 2008, we additionally recorded a $1.6
million write-off of certain software and hardware assets that are no longer consistent with our
information technology strategy. This write-off is included in depreciation and amortization.
During the year ended December 31, 2007, we abandoned certain internal-use software development
projects and recorded a $4.2 million write-off of the capitalized costs of such projects in
depreciation and amortization. There were no similar write-offs during the year ended December 31,
2009.
Noncontrolling Interests in Consolidated Real Estate Partnerships
We report the unaffiliated partners interests in our consolidated real estate partnerships as
noncontrolling interests in consolidated real estate partnerships. Noncontrolling interests in
consolidated real estate partnerships represent the noncontrolling partners share of the
underlying net assets of our consolidated real estate partnerships. Prior to 2009, when these
consolidated real estate partnerships made cash distributions to partners in excess of the carrying
amount of the noncontrolling interest, we generally recorded a charge equal to the amount of such
excess distribution, even though there was no economic effect or cost. These charges are reported
in the consolidated statements of income for the years ended December 31, 2008 and 2007 within
noncontrolling interests in consolidated real estate partnerships. Also prior to 2009, we
allocated the noncontrolling partners share of partnership losses to noncontrolling partners to
the extent of the carrying amount of the noncontrolling interest. We generally recorded a charge
when the noncontrolling partners share of partnership losses exceed the carrying amount of the
noncontrolling interest, even though there is no economic effect or cost. These charges are
reported in the consolidated statements of income within noncontrolling interests in consolidated
real estate partnerships. We did not record charges for distributions or losses in certain limited
instances where the noncontrolling partner had a legal obligation and financial capacity to
contribute additional capital to the partnership. For the years ended December 31, 2008 and 2007,
we recorded charges for partnership losses resulting from depreciation of approximately $9.0
million and $12.2 million, respectively that were not allocated to noncontrolling partners because
the losses exceeded the carrying amount of the noncontrolling interest.
Noncontrolling interests in consolidated real estate partnerships consist primarily of equity
interests held by limited partners in consolidated real estate partnerships that have finite lives.
The terms of the related partnership agreements generally require the partnership to be liquidated
following the sale of the partnerships real estate. As the general partner in these partnerships,
we ordinarily control the execution of real estate sales and other events that could lead to the
liquidation, redemption or other settlement of noncontrolling interests. The aggregate carrying
amount of noncontrolling interests in consolidated real estate partnerships is approximately $317.1
million at December 31, 2009. The aggregate fair value of these interests varies based on the fair
value of the real estate owned by the partnerships. Based on the number of classes of finite-life
noncontrolling interests, the number of properties in which there is direct or indirect
noncontrolling ownership, complexities in determining the allocation of liquidation proceeds among
partners and other factors, we believe it is impracticable to determine the total required payments
to the noncontrolling interests in an assumed liquidation at December 31, 2009. As a result of
real estate depreciation that is recognized in our financial statements and appreciation in the
fair value of real estate that is not recognized in our financial statements, we believe that the
aggregate fair value of our noncontrolling interests exceeds their aggregate carrying amount. As a
result of our ability to control real estate sales and other events that require payment of
noncontrolling interests and our expectation that proceeds from real estate sales will be
sufficient to liquidate related noncontrolling interests, we anticipate that the eventual
liquidation of these noncontrolling interests will not have an adverse impact on our financial
condition.
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Revenue Recognition
Our properties have operating leases with apartment residents with terms generally of 12
months or less. We recognize rental revenue related to these leases, net of any concessions, on a
straight-line basis over the term of the lease. We recognize revenues from property management,
asset management, syndication and other services when the related fees are earned and are realized
or realizable.
Advertising Costs
We generally expense all advertising costs as incurred to property operating expense. For the
years ended December 31, 2009, 2008 and 2007, for both continuing and discontinued operations,
total advertising expense was $25.0 million, $36.0 million and $38.0 million, respectively.
Insurance
We believe that our insurance coverages insure our properties adequately against the risk of
loss attributable to fire, earthquake, hurricane, tornado, flood, and other perils. In addition, we
have insurance coverage for substantial portions of our property, workers compensation, health,
and general liability exposures. Losses are accrued based upon our estimates of the aggregate
liability for uninsured losses incurred using certain actuarial assumptions followed in the
insurance industry and based on our experience.
Stock-Based Compensation
We recognize all stock-based employee compensation, including grants of employee stock
options, in the consolidated financial statements based on the grant date fair value and recognize
compensation cost, which is net of estimates for expected forfeitures, ratably over the awards
requisite service period. See Note 12 for further discussion of our stock-based compensation.
Tax Credit Arrangements
We sponsor certain partnerships that own and operate apartment properties that qualify for tax
credits under Section 42 of the Internal Revenue Code of 1986, as amended, which we refer to as the
Code, and for the U.S. Department of Housing and Urban Development, or HUD, subsidized rents under
HUDs Section 8 program. These partnerships acquire, develop and operate qualifying affordable
housing properties and are structured to provide for the pass-through of tax credits and deductions
to their partners. The tax credits are generally realized ratably over the first ten years of the
tax credit arrangement and are subject to the partnerships compliance with applicable laws and
regulations for a period of 15 years. Typically, we are the general partner with a legal ownership
interest of one percent or less. We market limited partner interests of at least 99 percent to
unaffiliated institutional investors (which we refer to as tax credit investors or investors) and
receive a syndication fee from each investor upon such investors admission to the partnership. At
inception, each investor agrees to fund capital contributions to the partnerships. We agree to
perform various services to the partnerships in exchange for fees over the expected duration of the
tax credit service period. The related partnership agreements generally require adjustment of each
tax credit investors required capital contributions if actual tax benefits to such investor differ
from projected amounts.
We have determined that the partnerships in these arrangements are variable interest entities
and, where we are general partner, we are generally the primary beneficiary that is required to
consolidate the partnerships. When the contractual arrangements obligate us to deliver tax
benefits to the investors, and entitle us through fee arrangements to receive substantially all
available cash flow from the partnerships, we account for these partnerships as wholly owned
subsidiaries. Capital contributions received by the partnerships from tax credit investors
represent, in substance, consideration that we receive in exchange for our obligation to deliver
tax credits and other tax benefits to the investors, and the receipts are recognized as revenue in
our consolidated financial statements when our obligation to the investors is relieved upon
delivery of the expected tax benefits.
In summary, our accounting treatment recognizes the income or loss generated by the underlying
real estate based on our economic interest in the partnerships. Proceeds received in exchange for
the transfer of the tax credits are recognized as revenue proportionately as the tax benefits are
delivered to the tax credit investors and our obligation is relieved. Syndication fees and related
costs are recognized in income upon completion of the syndication effort. We recognize syndication
fees in amounts determined based on a market rate analysis of fees for comparable services, which
generally fell within a range of 10% to 15% of investor contributions during the periods presented.
Other direct and incremental costs incurred in structuring these arrangements are deferred and
amortized over the expected duration
of the arrangement in proportion to the recognition of related income. Investor contributions
in excess of recognized revenue are reported as deferred income in our consolidated balance sheets.
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During the years ended December 31, 2008 and 2007, we recognized syndication fee income of
$3.4 million and $13.8 million, respectively. We recognized no syndication fee income during the
year ended December 31, 2009. During the years ended December 31, 2009, 2008 and 2007 we recognized
revenue associated with the delivery of tax benefits of $36.6 million, $29.4 million and $24.0
million, respectively. At December 31, 2009 and 2008, $148.1 million and $159.6 million,
respectively, of investor contributions in excess of the recognized revenue were included in
deferred income in our consolidated balance sheets.
Discontinued Operations
We classify certain properties and related assets and liabilities as held for sale when they
meet certain criteria. The operating results of such properties as well as those properties sold
during the periods presented are included in discontinued operations in both current periods and
all comparable periods presented. Depreciation is not recorded on properties once they have been
classified as held for sale; however, depreciation expense recorded prior to classification as held
for sale is included in discontinued operations. The net gain on sale and any impairment losses
are presented in discontinued operations when recognized. See Note 13 for additional information
regarding discontinued operations.
Derivative Financial Instruments
We primarily use long-term, fixed-rate and self-amortizing non-recourse debt to avoid, among
other things, risk related to fluctuating interest rates. For our variable rate debt, we are
sometimes required by our lenders to limit our exposure to interest rate fluctuations by entering
into interest rate swap or cap agreements. The interest rate swap agreements moderate our exposure
to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate.
The interest rate cap agreements effectively limit our exposure to interest rate risk by providing
a ceiling on the underlying variable interest rate. The fair values of the interest rate swaps are
reflected as assets or liabilities in the balance sheet, and periodic changes in fair value are
included in interest expense or equity, as appropriate. These interest rate caps are not material
to our financial position or results of operations.
As of December 31, 2009 and 2008, we had interest rate swaps with aggregate notional amounts
of $52.3 million and $27.2 million, and recorded fair values of $1.6 million and $2.6 million,
respectively, reflected in accrued liabilities and other in our consolidated balance sheets. At
December 31, 2009, these interest rate swaps had a weighted average term of 11.1 years. We have
designated these interest rate swaps as cash flow hedges and recognize any changes in their fair
value as an adjustment of accumulated other comprehensive income within partners capital to the
extent of their effectiveness. For the year ended December 31, 2009, we recognized changes in fair
value of $1.0 million, of which $1.4 million resulted in an adjustment to accumulated other
comprehensive loss within consolidated partners capital. For the year ended December 31, 2008, we
recognized changes in fair value of $2.2 million, of which $2.1 million resulted in an adjustment
to accumulated other comprehensive loss within consolidated partners capital. We recognized $0.4
million and less than $0.1 million of ineffectiveness as an adjustment of interest expense during
the years ended December 31, 2009 and 2008, respectively, and we recognized no ineffectiveness
during the year ended December 31, 2007. Our consolidated comprehensive loss for the year ended
December 31, 2009 totaled $42.6 million and our comprehensive income for the years ended December
31, 2008 and 2007, totaled $625.6 million and $125.5 million, respectively, before the effects of
noncontrolling interests. If the forward rates at December 31, 2009 remain constant, we estimate
that during the next twelve months, we would reclassify into earnings approximately $1.5 million of
the unrealized losses in accumulated other comprehensive income.
We have entered into total rate of return swaps on various fixed rate secured tax-exempt bonds
payable and fixed rate notes payable to convert these borrowings from a fixed rate to a variable
rate and provide an efficient financing product to lower our cost of borrowing. In exchange for
our receipt of a fixed rate generally equal to the underlying borrowings interest rate, the total
rate of return swaps require that we pay a variable rate, equivalent to the Securities Industry and
Financial Markets Association Municipal Swap Index, or SIFMA, rate for tax-exempt bonds payable and
the 30-day LIBOR rate for notes payable, plus a risk spread. These swaps generally have a second
or third lien on the property collateralized by the related borrowings and the obligations under
certain of these swaps are cross-collateralized with certain of the other swaps with a particular
counterparty. The underlying borrowings are generally callable at our option, with no prepayment
penalty, with 30 days advance notice, and the swaps generally have a term of less than five years.
The total rate of return swaps have a contractually defined termination value generally equal to
the difference between the fair value and the counterpartys purchased value of the underlying
borrowings, which may require payment by us or to us for such difference. Accordingly, we believe
fluctuations in the fair value of the
borrowings from the inception of the hedging relationship generally will be offset by a
corresponding fluctuation in the fair value of the total rate of return swaps.
37
We designate total rate of return swaps as hedges of the risk of overall changes in the fair
value of the underlying borrowings. At each reporting period, we estimate the fair value of these
borrowings and the total rate of return swaps and recognize any changes therein as an adjustment of
interest expense. We evaluate the effectiveness of these fair value hedges at the end of each
reporting period and recognize an adjustment of interest expense as a result of any
ineffectiveness.
Borrowings payable subject to total rate of return swaps with aggregate outstanding principal
balances of $352.7 million and $421.7 million at December 31, 2009 and 2008, respectively, are
reflected as variable rate borrowings in Note 6. Due to changes in the estimated fair values of
these debt instruments and the corresponding total rate of return swaps, we increased property
loans payable by $5.2 million for the year ended December 31, 2009, and reduced property loans
payable by $20.1 million and $9.4 million for the years ended December 31, 2008 and 2007,
respectively, with offsetting adjustments to accrued liabilities, resulting in no net effect on net
income. Refer to Fair Value Measurements for further discussion of fair value measurements related
to these arrangements. During 2009, 2008 and 2007, we determined these hedges were fully effective
and accordingly we made no adjustments to interest expense for ineffectiveness.
At December 31, 2009, the weighted average fixed receive rate under the total return swaps was
6.8% and the weighted average variable pay rate was 1.0%, based on the applicable SIFMA and 30-day
LIBOR rates effective as of that date. Further information related to our total return swaps as of
December 31, 2009 is as follows (dollars in millions):
Weighted | ||||||||||||||||||||||||
Average | Swap | Weighted Average Swap | ||||||||||||||||||||||
Year of Debt | Debt Interest | Swap Notional | Maturity | Variable Pay Rate at | ||||||||||||||||||||
Debt Principal | Maturity | Rate | Amount | Date | December 31, 2009 | |||||||||||||||||||
$ | 45.2 | 2012 | 7.5 | % | $ | 45.2 | 2012 | 1.6 | % | |||||||||||||||
24.0 | 2015 | 6.9 | % | 24.0 | 2012 | 1.0 | % | |||||||||||||||||
14.2 | 2018 | 7.3 | % | 14.2 | 2012 | 1.0 | % | |||||||||||||||||
42.8 | 2025 | 7.0 | % | 42.8 | 2012 | 1.0 | % | |||||||||||||||||
93.0 | 2031 | 7.4 | % | 93.0 | 2012 | 1.0 | % | |||||||||||||||||
108.7 | 2036 | 6.2 | % | 109.1 | 2012 | 0.7 | % | |||||||||||||||||
12.3 | 2038 | 5.5 | % | 12.3 | 2012 | 0.9 | % | |||||||||||||||||
12.5 | 2048 | 6.5 | % | 12.5 | 2012 | 0.9 | % | |||||||||||||||||
$ | 352.7 | $ | 353.1 | |||||||||||||||||||||
Fair Value Measurements
Beginning in 2008, we applied the FASBs revised accounting provisions related to fair value
measurements, which are codified in FASB ASC Topic 820. These revised provisions define fair value
as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, establish a hierarchy that
prioritizes the information used in developing fair value estimates and require disclosure of fair
value measurements by level within the fair value hierarchy. The hierarchy gives the highest
priority to quoted prices in active markets (Level 1 measurements) and the lowest priority to
unobservable data (Level 3 measurements), such as the reporting entitys own data. We adopted the
revised fair value measurement provisions that apply to recurring and nonrecurring fair value
measurements of financial assets and liabilities effective January 1, 2008, and the provisions that
apply to the remaining fair value measurements effective January 1, 2009, and at those times
determined no transition adjustments were required.
38
The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset
or liability as of the measurement date and includes three levels defined as follows:
Level 1
|
Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets | |
Level 2
|
Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument | |
Level 3
|
Unobservable inputs that are significant to the fair value measurement |
A financial instruments categorization within the valuation hierarchy is based upon the
lowest level of input that is significant to the fair value measurement.
Following are descriptions of the valuation methodologies used for our significant assets or
liabilities measured at fair value on a recurring or nonrecurring basis. Although some of the
valuation methodologies use observable market inputs in limited instances, the majority of inputs
we use are unobservable and are therefore classified within Level 3 of the valuation hierarchy.
Provisions for Real Estate Impairment Losses
If events or circumstances indicate that the carrying amount of a property may not be
recoverable, we make an assessment of its recoverability by comparing the carrying amount to
our estimate of the undiscounted future cash flows, excluding interest charges, of the
property. If the carrying amount exceeds the aggregate undiscounted future cash flows, we
recognize an impairment loss to the extent the carrying amount exceeds the estimated fair
value of the property, for properties classified as held for use, and estimated fair value of
the property, less estimated selling costs, for properties classified as held for sale.
We estimate the fair value of real estate using income and market valuation techniques
using information such as broker estimates, purchase prices for recent transactions on
comparable assets and net operating income capitalization analyses using observable and
unobservable inputs such as capitalization rates, asset quality grading, geographic location
analysis, and local supply and demand observations. For certain properties classified as
held for sale, we may also recognize the impairment loss based on the contract sale price,
which we believe is representative of fair value, less estimated selling costs.
Notes Receivable
We assess the collectibility of notes receivable on a periodic basis, which assessment
consists primarily of an evaluation of cash flow projections of the borrower to determine
whether estimated cash flows are sufficient to repay principal and interest in accordance
with the contractual terms of the note. We recognize impairments on notes receivable when it
is probable that principal and interest will not be received in accordance with the
contractual terms of the loan. The amount of the impairment to be recognized generally is
based on the fair value of the real estate, which represents the primary source of loan
repayment. The fair value of real estate is estimated through income and market valuation
approaches using information such as broker estimates, purchase prices for recent
transactions on comparable assets and net operating income capitalization analyses using
observable and unobservable inputs such as capitalization rates, asset quality grading,
geographic location analysis, and local supply and demand observations.
Interest Rate Swaps
We estimate the fair value of interest rate swaps using an income approach with
primarily observable inputs, including information regarding the hedged variable cash flows
and forward yield curves relating to the variable interest rates on which the hedged cash
flows are based.
Total Rate of Return Swaps
Our total rate of return swaps have contractually-defined termination values generally
equal to the difference between the fair value and the counterpartys purchased value of the
underlying borrowings. Upon termination, we are required to pay the counterparty the
difference if the fair value is less than the purchased value, and the counterparty is
required to pay us the difference if the fair value is greater than the purchased value. The
underlying borrowings are generally callable, at our option, at face value prior to maturity
and with
no prepayment penalty. Due to our control of the call features in the underlying
borrowings, we believe the inherent value of any differential between the fixed and variable
cash payments due under the swaps would be significantly discounted by a market participant
willing to purchase or assume any rights and obligations under these contracts.
39
The swaps are generally cross-collateralized with other swap contracts with the same
counterparty and do not allow transfer or assignment, thus there is no alternate or secondary
market for these instruments. Accordingly, our assumptions about the fair value that a
willing market participant would assign in valuing these instruments are based on a
hypothetical market in which the highest and best use of these contracts is in-use in
combination with the related borrowings, similar to how we use the contracts. Based on these
assumptions, we believe the termination value, or exit value, of the swaps approximates the
fair value that would be assigned by a willing market participant. We calculate the
termination value using a market approach by reference to estimates of the fair value of the
underlying borrowings, which are discussed below, and an evaluation of potential changes in
the credit quality of the counterparties to these arrangements. We compare our estimates of
the fair value of the swaps and related borrowings to the valuations provided by the
counterparties on a quarterly basis.
Our method for calculating fair value of the swaps generally results in changes in fair
value equal to the changes in fair value of the related borrowings. Accordingly, we believe
these instruments are highly effective in offsetting the changes in fair value of the
borrowings during the hedging period.
Changes in Fair Value of Borrowings Subject to Total Rate of Return Swaps
We recognize changes in the fair value of certain borrowings subject to total rate of
return swaps, which we have designated as fair value hedges.
We estimate the fair value of debt instruments using an income and market approach,
including comparison of the contractual terms to observable and unobservable inputs such as
market interest rate risk spreads, collateral quality and loan-to-value ratios on similarly
encumbered assets within our portfolio. These borrowings are collateralized and non-recourse
to us; therefore, we believe changes in our credit rating will not materially affect a market
participants estimate of the borrowings fair value.
The methods described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, although we believe our
valuation methods are appropriate and consistent with other market participants, the use of
different methodologies or assumptions to determine the fair value of certain assets and
liabilities could result in a different estimate of fair value at the reporting date.
The table below presents amounts at December 31, 2009, 2008 and 2007 (and the changes in fair
value between such dates) for significant items measured in our consolidated balance sheets at fair
value (in thousands). Certain of these fair value measurements are based on significant
unobservable inputs classified within Level 3 of the valuation hierarchy. When a determination is
made to classify a fair value measurement within Level 3 of the valuation hierarchy, the
determination is based upon the significance of the unobservable factors to the overall fair value
measurement. However, Level 3 fair value measurements typically include, in addition to the
unobservable or Level 3 components, observable components that can be validated to observable
external sources; accordingly, the changes in fair value in the table below are due in part to
observable factors that are part of the valuation methodology.
40
Level 2 | Level 3 | |||||||||||||||
Changes in fair | ||||||||||||||||
value of debt | ||||||||||||||||
instruments | ||||||||||||||||
subject to total | ||||||||||||||||
Interest rate | Total rate of | rate of return | ||||||||||||||
swaps | return swaps | swaps | Total | |||||||||||||
Fair value at December 31, 2007 |
$ | (371 | ) | $ | (9,420 | ) | $ | 9,420 | $ | (371 | ) | |||||
Unrealized gains (losses)
included in earnings (1)(2) |
(47 | ) | (20,075 | ) | 20,075 | (47 | ) | |||||||||
Realized gains (losses)
included in earnings |
| | | | ||||||||||||
Unrealized gains (losses)
included in partners
capital |
(2,139 | ) | | | (2,139 | ) | ||||||||||
Fair value at December 31, 2008 |
$ | (2,557 | ) | $ | (29,495 | ) | $ | 29,495 | $ | (2,557 | ) | |||||
Unrealized gains (losses)
included in earnings (1)(2) |
(447 | ) | 5,188 | (5,188 | ) | (447 | ) | |||||||||
Realized gains (losses)
included in earnings |
| | | | ||||||||||||
Unrealized gains (losses)
included in partners
capital |
1,408 | | | 1,408 | ||||||||||||
Fair value at December 31, 2009 |
$ | (1,596 | ) | $ | (24,307 | ) | $ | 24,307 | $ | (1,596 | ) | |||||
(1) | Unrealized gains (losses) relate to periodic revaluations of fair value and have not
resulted from the settlement of a swap position. |
|
(2) | Included in interest expense in the accompanying condensed consolidated statements of
income. |
In addition to the amounts in the table above, during the years ended December 31, 2009, 2008
and 2007, we recognized $56.9 million, $118.6 million and $6.5 million, respectively, of provisions
for real estate impairment losses (including amounts in discontinued operations) to reduce the
carrying amounts of certain real estate properties to their estimated fair value (or fair value
less estimated costs to sell) and provisions for losses on notes receivable of $21.5 million, $17.6
million and $2.0 million, respectively, based on our estimates of the fair value of the real estate
properties that represent the primary source of repayment. Based on the significance of the
unobservable inputs used in our methods for estimating the fair values for these amounts, we
classify these fair value measurements within Level 3 of the valuation hierarchy.
Disclosures Regarding Fair Value of Financial Instruments
We believe that the aggregate fair value of our cash and cash equivalents, receivables,
payables and short-term secured debt approximates their aggregate carrying value at December 31,
2009, due to their relatively short-term nature and high probability of realization. We estimate
fair value for our notes receivable and debt instruments using present value techniques that
include income and market valuation approaches using observable inputs such as market rates for
debt with the same or similar terms and unobservable inputs such as collateral quality and
loan-to-value ratios on similarly encumbered assets. Present value calculations vary depending on
the assumptions used, including the discount rate and estimates of future cash flows. In many
cases, the fair value estimates may not be realizable in immediate settlement of the instruments.
The estimated aggregate fair value of our notes receivable was approximately $126.1 million and
$161.6 million at December 31, 2009 and 2008, respectively. See Note 5 for further information on
notes receivable. The estimated aggregate fair value of our consolidated debt (including amounts
reported in liabilities related to assets held for sale) was approximately $5.7 billion and $6.7
billion at December 31, 2009 and 2008, respectively. The combined carrying amount of our
consolidated debt (including amounts reported in liabilities related to assets held for sale) was
approximately $5.7 billion and $6.8 billion at December 31, 2009 and 2008, respectively. See Note
6 and Note 7 for further details on our consolidated debt. Refer to Derivative Financial
Instruments for further discussion regarding certain of our fixed rate debt that is subject to
total rate of return swap instruments.
41
Income Taxes
We are treated as a pass-through entity for United States Federal income tax purposes and
are not subject to United States Federal income taxation. Each of our partners, however, is subject
to tax on his allocable share of
partnership tax items, including partnership income, gains, losses, deductions and credits, or
Partnership Tax Items, for each taxable year during which he is a partner, regardless of whether he
receives any actual distributions of cash or other property from us during the taxable year.
Generally, the characterization of any particular Partnership Tax Item is determined by us, rather
than at the partner level, and the amount of a partners allocable share of such item is governed
by the terms of the Partnership Agreement. The General Partner is our tax matters partner for
United States Federal income tax purposes. The tax matters partner is authorized, but not required,
to take certain actions on behalf of us with respect to tax matters.
Aimco has elected to be taxed as a REIT under the Code commencing with its taxable year ended
December 31, 1994, and intends to continue to operate in such a manner. Aimcos current and
continuing qualification as a REIT depends on its ability to meet the various requirements imposed
by the Code, which are related to organizational structure, distribution levels, diversity of stock
ownership and certain restrictions with regard to owned assets and categories of income. If Aimco
qualifies for taxation as a REIT, it will generally not be subject to United States Federal
corporate income tax on our taxable income that is currently distributed to stockholders. This
treatment substantially eliminates the double taxation (at the corporate and stockholder levels)
that generally results from an investment in a corporation.
Even if Aimco qualifies as a REIT, it may be subject to United States Federal income and
excise taxes in various situations, such as on our undistributed income. Aimco also will be
required to pay a 100% tax on any net income on non-arms length transactions between it and a TRS
(described below) and on any net income from sales of property that was property held for sale to
customers in the ordinary course. Aimco and its stockholders may be subject to state or local
taxation in various state or local jurisdictions, including those in which Aimco transacts business
or Aimcos stockholders reside. In addition, Aimco could also be subject to the alternative minimum
tax, or AMT, on our items of tax preference. The state and local tax laws may not conform to the
United States Federal income tax treatment. Any taxes imposed on Aimco reduce its and our
operating cash flow and net income.
Certain of Aimcos operations, or a portion thereof, including property management, asset
management and risk are conducted through taxable REIT subsidiaries, which are subsidiaries of the
Partnership, and each of which we refer to as a TRS. A TRS is a C-corporation that has not elected
REIT status and as such is subject to United States Federal corporate income tax. Aimco uses TRS
entities to facilitate its ability to offer certain services and activities to its residents, as
these services and activities generally cannot be offered directly by the REIT. Aimco also uses
TRS entities to hold investments in certain properties.
For Aimcos TRS entities, deferred income taxes result from temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for Federal income tax purposes, and are measured using the enacted tax rates and laws that are
expected to be in effect when the differences reverse. We reduce deferred tax assets by recording
a valuation allowance when we determine based on available evidence that it is more likely than not
that the assets will not be realized. We recognize the tax consequences associated with
intercompany transfers between the REIT and TRS entities when the related assets are sold to third
parties, impaired or otherwise disposed of for financial reporting purposes.
In March 2008, we were notified by the Internal Revenue Service that it intended to examine
our 2006 Federal tax return. During June 2008, the IRS issued AIMCO-GP, Inc., our general and tax
matters partner, a summary report including the IRSs proposed adjustments to our 2006 Federal tax
return. In addition, in May 2009, we were notified by the IRS that it intended to examine our 2007
Federal tax return. During November 2009, the IRS issued AIMCO-GP, Inc. a summary report including
the IRSs proposed adjustments to our 2007 Federal tax return. We do not expect the 2006 or 2007
proposed adjustments to have any material effect on our unrecognized tax benefits, financial
condition or results of operations.
Concentration of Credit Risk
Financial instruments that potentially could subject us to significant concentrations of
credit risk consist principally of notes receivable and total rate of return swaps. As discussed
in Note 5, a significant portion of our notes receivable at December 31, 2009, are collateralized
by properties in the West Harlem area of New York City. There are no other significant
concentrations of credit risk with respect to our notes receivable due to the large number of
partnerships that are borrowers under the notes and the geographic diversity of the properties that
collateralize the notes.
42
At December 31, 2009, we had total rate of return swap positions with two financial
institutions totaling $353.1 million. The swap positions with one counterparty are comprised of
$340.9 million of fixed rate debt effectively
converted to variable rates using total rate of return swaps, including $295.7 million of
tax-exempt bonds indexed to SIFMA and $45.2 million of taxable second mortgage notes indexed to
LIBOR. Additionally, the swap agreements with this counterparty provide for collateral calls to
maintain specified loan-to-value ratios. As of December 31, 2009, we were not required to provide
cash collateral pursuant to the total rate of return swaps. We have one swap position with another
counterparty that is comprised of $12.2 million of fixed rate tax-exempt bonds indexed to SIFMA. We
periodically evaluate counterparty credit risk associated with these arrangements. At the current
time, we have concluded we do not have material exposure. In the event either counterparty were to
default under these arrangements, loss of the net interest benefit we generally receive under these
arrangements, which is equal to the difference between the fixed rate we receive and the variable
rate we pay, may adversely impact our results of operations and operating cash flows. In the event
the values of the real estate properties serving as collateral under these agreements decline, we
may be required to provide additional collateral pursuant to the swap agreements, which may
adversely affect our cash flows.
FASB Accounting Standards Codification
In June 2009, the Financial Accounting Standards Board, or FASB, issued Statement of Financial
Accounting Standards No. 168, The FASB Accounting Standards Codification and the Hierarchy of
Generally Accepted Accounting Principles a replacement of FASB Statement No. 162, or SFAS 168,
which is effective for financial statements issued for interim and annual periods ending after
September 15, 2009. Upon the effective date of SFAS 168, the FASB Accounting Standards
Codification, or the FASB ASC, became the single source of authoritative GAAP recognized by the
FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities
and Exchange Commission, or SEC, under authority of federal securities laws are also sources of
authoritative GAAP for SEC registrants. The FASB ASC superseded all then-existing non-SEC
accounting and reporting standards, and all other non-grandfathered non-SEC accounting literature
not included in the FASB ASC is now non-authoritative. Subsequent to the effective date of SFAS
168, the FASB will issue Accounting Standards Updates that serve to update the FASB ASC.
Business Combinations
We adopted the provisions of FASB Statement of Financial Accounting Standards No. 141(R),
Business Combinations a replacement of FASB Statement No. 141, or SFAS 141(R), which are codified
in FASB ASC Topic 805, effective January 1, 2009. These provisions apply to all transactions or
events in which an entity obtains control of one or more businesses, including those effected
without the transfer of consideration, for example by contract or through a lapse of minority veto
rights. These provisions require the acquiring entity in a business combination to recognize the
full fair value of assets acquired and liabilities assumed in the transaction (whether a full or
partial acquisition); establish the acquisition-date fair value as the measurement objective for
all assets acquired and liabilities assumed; and require expensing of most transaction and
restructuring costs.
We believe most operating real estate assets meet the revised definition of a business.
Accordingly, beginning in 2009, we expense transaction costs associated with acquisitions of
operating real estate or interests therein when we consolidate the asset. The FASB did not provide
implementation guidance regarding the treatment of acquisition costs incurred prior to December 31,
2008, for acquisitions that did not close until 2009. The SEC indicated any of the following three
transition methods were acceptable, provided that the method chosen is disclosed and applied
consistently:
1) | expense acquisition costs in 2008 when it is probable that the acquisition will not close
in 2008; |
2) | expense acquisition costs January 1, 2009; or |
3) | give retroactive treatment to the acquisition costs January 1, 2009, by retroactively
adjusting prior periods to record acquisition costs in the prior periods in which they were
incurred. |
We elected to apply the third method and accordingly have retroactively adjusted our results
of operations for the year ended December 31, 2008, by $3.5 million, which also resulted in a
corresponding reduction to our December 31, 2008 equity balance. This retroactive adjustment is
reflected in investment management expenses in our accompanying consolidated statements of income
and reduced basic and diluted earnings per unit amounts by $0.04 for the year ended December 31,
2008.
43
Noncontrolling Interests
Effective January 1, 2009, we adopted the provisions of FASB Statement of Financial Accounting
Standards No. 160, Noncontrolling Interests in Consolidated Financial Statements an amendment of
ARB No. 51, or SFAS 160, which are codified in FASB ASC Topic 810. These provisions clarified that
a noncontrolling interest in a subsidiary is an ownership interest in a consolidated entity, which
should be reported as equity in the parents consolidated financial statements. These provisions
require disclosure, on the face of the consolidated income statements, of the amounts of
consolidated net income and other comprehensive income attributable to controlling and
noncontrolling interests, eliminating the past practice of reporting amounts of income attributable
to noncontrolling interests as an adjustment in arriving at consolidated net income. These
provisions also require us to attribute to noncontrolling interests their share of losses even if
such attribution results in a deficit noncontrolling interest balance within our equity accounts,
and in some instances, recognize a gain or loss in net income when a subsidiary is deconsolidated.
In connection with our retrospective application of these provisions, we reclassified into our
consolidated equity accounts the historical balances related to noncontrolling interests in
consolidated real estate partnerships. At December 31, 2008, the carrying amount of noncontrolling
interests in consolidated real estate partnerships was $381.8 million.
Beginning in 2009, we no longer record a charge related to cash distributions to
noncontrolling interests in excess of the carrying amount of such noncontrolling interests, and we
attribute losses to noncontrolling interests even if such attribution results in a deficit
noncontrolling interest balance within our equity accounts. The following table illustrates the
pro forma amounts of loss from continuing operations, discontinued operations and net loss that
would have been attributed to the Partnerships common unitholders for the year ended December 31,
2009, had we applied the accounting provisions related to noncontrolling interests prior to their
amendment by SFAS 160 (in thousands, except per unit amounts):
Year Ended | ||||
December 31, 2009 | ||||
Loss from continuing operations attributable to the
Partnerships common unitholders |
$ | (238,257 | ) | |
Income from discontinued operations attributable to the
Partnerships common unitholders |
94,908 | |||
Net loss attributable to the Partnerships common unitholders |
$ | (143,349 | ) | |
Basic and diluted earnings (loss) per common unit: |
||||
Loss from continuing operations attributable to the
Partnerships common unitholders |
$ | (1.93 | ) | |
Income from discontinued operations attributable to the
Partnerships common unitholders |
0.77 | |||
Net loss attributable to the Partnerships common unitholders |
$ | (1.16 | ) | |
Changes in our ownership interest in consolidated real estate partnerships generally consist
of our purchase of an additional interest in or the sale of our entire interest in a consolidated
real estate partnership. Our purchase of additional interests in consolidated real estate
partnerships had no direct effect on partners equity attributable to the Partnership during the
years ended December 31, 2008 and 2007, and did not have a significant effect on partners capital
attributable to the Partnership during the year ended December 31, 2009. The effect on our capital
of sales of our entire interest in consolidated real estate partnerships is reflected in our
consolidated financial statements as sales of real estate and accordingly the effect on our capital
is reflected as gains on disposition of real estate, less the amounts of such gains attributable to
noncontrolling interests, within consolidated net (loss) income attributable to the Partnerships
common unitholders.
Earnings per Unit
We calculate earnings per unit based on the weighted average number of common OP Units, common
OP Unit equivalents, participating securities and other potentially dilutive securities outstanding
during the period (see Note 14).
44
Effective January 1, 2009, we adopted the provisions of FASB Statement of Position No. EITF
03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are
Participating Securities, or FSP EITF 03-6-1, which are codified in FASB ASC Topic 260. FSP EITF
03-6-1 clarified that unvested share-based payment awards that
participate in dividends similar to shares of common stock or common partnership units should
be treated as participating securities. FSP EITF 03-6-1 affects our computation of basic and
diluted earnings per unit for unvested restricted stock awards and shares purchased pursuant to
officer stock loans, which serve as collateral for such loans, both of which entitle the holders to
dividends. Refer to Note 14, which details our calculation of earnings per unit and the effect of
our retroactive application of FSP EITF 03-6-1 on our earnings per unit.
In December 2009, we adopted the provisions of FASB Accounting Standards Update 2010-01,
Accounting for Distributions to Shareholders with Components of Stock and Cash, or ASU 2010-01,
which are codified in FASB ASC Topic 505. ASU 2010-01 requires that for distributions with
components of cash and stock, the portion distributed in stock should be accounted for
prospectively as a stock issuance with no retroactive adjustment to basic and diluted earnings per
share. In accordance with ASU 2010-01, we retrospectively revised the accounting treatment of our
special distributions paid during 2008 and 2009, resulting in changes in the number of weighted
average units outstanding and earnings per unit amounts for the years ended December 31, 2008 and
2007, as compared to the amounts previously reported.
The following table illustrates the effects of these changes in accounting treatment on our
basic and diluted weighted average units outstanding and on net income (loss) attributable to the
Partnerships common unitholders per common unit for the years ended December 31, 2008 and 2007:
2008 | 2007 | ||||||||||
Weighted average units outstanding basic and diluted: |
|||||||||||
As previously reported |
130,772 | 149,883 | |||||||||
Reduction in weighted average units outstanding |
(32,523 | ) | (45,030 | ) | |||||||
As currently reported |
98,249 | 104,853 | |||||||||
Net income (loss) attributable to the Partnerships common
unitholders per common unit basic and diluted: |
|||||||||||
As previously reported |
$ | 3.17 | $ | (0.26 | ) | ||||||
Effect of reduction in weighted average units outstanding |
1.01 | (0.12 | ) | ||||||||
Effect of participating securities allocations |
(0.07 | ) | (0.04 | ) | |||||||
As currently reported |
$ | 4.11 | $ | (0.42 | ) | ||||||
Use of Estimates
The preparation of our consolidated financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts included in the
financial statements and accompanying notes thereto. Actual results could differ from those
estimates.
Restatement to Reclassify Impairment Losses on Real Estate Development Assets
Our consolidated statement of income for the year ended December 31, 2008, has been restated
to reclassify the provision for impairment losses on real estate development assets into operating
income. The reclassification reduced operating income by $91.1 million for the year ended December
31, 2008, and had no effect on the reported amounts of loss before income taxes and discontinued
operations, loss from continuing operations, net income, net income available to the Partnerships
common unitholders or earnings per unit. Additionally, the reclassification had no effect on the
consolidated balance sheet at December 31, 2008, or the consolidated statements of partners
capital and cash flows for the year ended December 31, 2008.
Reclassifications
Certain items included in the 2008 and 2007 financial statements have been reclassified to
conform to the current presentation.
45
NOTE 3 Real Estate and Partnership Acquisitions and Other Significant Transactions
Real Estate Acquisitions
During the year ended December 31, 2009, we did not acquire any real estate properties.
During the year ended December 31, 2008, we acquired three conventional properties with a
total of 470 units, located in San Jose, California, Brighton, Massachusetts and Seattle,
Washington. The aggregate purchase price of $111.5 million, excluding transaction costs, was
funded using $39.0 million in proceeds from property loans, $41.9 million in tax-free exchange
proceeds (provided by 2008 real estate dispositions) and the remainder in cash.
During the year ended December 31, 2007, we completed the acquisition of 16 conventional
properties with approximately 1,300 units for an aggregate purchase price of approximately $217.0
million, excluding transaction costs. Of the 16 properties acquired, ten are located in New York
City, New York, two in Daytona Beach, Florida, one in Park Forest, Illinois, one in Poughkeepsie,
New York, one in Redwood City, California, and one in North San Diego, California. The purchases
were funded with cash, tax-free exchange proceeds, new debt and the assumption of existing debt.
Acquisitions of Partnership Interests
During the year ended December 31, 2009, we did not acquire a significant amount of limited
partnership interests. During the years ended December 31, 2008 and 2007, we acquired limited
partnership interests in 22 and 50 partnerships, respectively, in which our affiliates served as
general partner. In connection with such acquisitions, we paid cash of approximately $2.0 million
and $47.4 million, including transaction costs. The cost of the acquisitions was approximately
$2.4 million and $43.6 million in excess of the carrying amount of noncontrolling interest in such
limited partnerships, which excess we generally assigned to real estate.
Disposition of Unconsolidated Real Estate and Other
During the year ended December 31, 2009, we recognized $22.5 million in gains on disposition
of unconsolidated real estate and other. Gains recognized in 2009 primarily consist of $8.6
million related to our receipt in 2009 of additional proceeds related to our disposition during
2008 of one of the partnership interests (discussed below), $4.0 million from the disposition of
our interest in a group purchasing organization (discussed further below), $6.1 million from our
disposition of interests in unconsolidated real estate partnerships and our share of gains
recognized by our unconsolidated partnerships on the sale of real estate and $3.8 million related
to various other transactions.
During the year ended December 31, 2008, we recognized $99.9 million in gains on disposition
of unconsolidated real estate and other, which primarily consisted of a $98.4 million gain
recognized on the disposal of our interests in unconsolidated real estate partnerships that owned
two properties with 671 units.
Casualty Loss Related to Tropical Storm Fay and Hurricane Ike
During 2008, Tropical Storm Fay and Hurricane Ike caused severe damage to certain of our
properties located primarily in Florida and Texas, respectively. We incurred total losses of
approximately $33.9 million, including property damage replacement costs and clean-up costs. After
consideration of estimated third party insurance proceeds and the noncontrolling interest partners
share of losses for consolidated real estate partnerships, the net effect of these casualties on
net income available to the Partnerships common unitholders was a loss of approximately $5.6
million.
Sale of Interest in Group Purchasing Organization
During 2009, we sold our interest in an unconsolidated group purchasing organization to an
unrelated entity for $5.9 million, resulting in the recognition of a gain on sale of $4.0 million,
which is included in gain on disposition of unconsolidated real estate and other in our
consolidated statement of income for the year ended December 31, 2009. This gain was partially
offset by a $1.0 million provision for income tax. We also have a note receivable from another
principal in the group purchasing organization, which is collateralized by its equity interest in
the entity. In connection with the sale of our interest, we reevaluated collectibility of the note
receivable and reversed $1.4 million of previously recognized impairment losses, which is reflected
in provision for losses on notes receivable, net in our consolidated statement of income for the
year ended December 31, 2009. As of December 31, 2009, the carrying amount of the note receivable,
which is due for repayment in 2010, totaled $1.6 million.
46
Restructuring Costs
In connection with 2008 property sales and an expected reduction in redevelopment and
transactional activities, during the three months ended December 31, 2008, we initiated an
organizational restructuring program that included reductions in workforce and related costs,
reductions in leased corporate facilities and abandonment of certain redevelopment projects and
business pursuits. This restructuring effort resulted in a restructuring charge of $22.8 million,
which consisted of: severance costs of $12.9 million; unrecoverable lease obligations of $6.4
million related to space that we will no longer use; and the write-off of deferred transaction
costs totaling $3.5 million associated with certain acquisitions and redevelopment opportunities
that we will no longer pursue. We completed the workforce reductions by March 31, 2009.
During 2009, in connection with continued repositioning of our portfolio, we completed
additional organizational restructuring activities that included reductions in workforce and
related costs and the abandonment of additional leased corporate facilities and redevelopment
projects.
Our 2009 restructuring activities resulted in a restructuring charge of $11.2 million, which
consisted of severance costs and personnel related costs of $7.0 million; unrecoverable lease
obligations of $2.6 million related to space that we will no longer use; the write-off of deferred
costs totaling $0.9 million associated with certain redevelopment opportunities that we will no
longer pursue; and $0.7 million in other costs.
As of December 31, 2009, the remaining accruals associated with our restructuring activity are
$6.9 million for estimated unrecoverable lease obligations, which will be paid over the remaining
terms of the affected leases, and $4.7 million for severance and personnel related costs, which are
anticipated to be paid during the first quarter 2010.
Transactions Involving VMS National Properties Joint Venture
In January 2007, VMS National Properties Joint Venture, or VMS, a consolidated real estate
partnership in which we held a 22% equity interest, refinanced property loans secured by its 15
apartment properties. The existing loans had an aggregate carrying amount of $110.0 million and an
aggregate face amount of $152.2 million. The $42.2 million difference between the face amount and
carrying amount resulted from a 1997 bankruptcy settlement in which the lender agreed to reduce the
principal amount of the loans subject to VMSs compliance with the terms of the restructured loans.
Because the reduction in the loan amount was contingent on future compliance, recognition of the
inherent debt extinguishment gain was deferred. Upon refinancing of the loans in January 2007, the
existing lender accepted the reduced principal amount in full satisfaction of the loans, and VMS
recognized the $42.2 million debt extinguishment gain in earnings.
During the year ended December 31, 2007, VMS sold eight properties to third parties for an
aggregate gain of $22.7 million. Additionally, VMS contributed its seven remaining properties to
wholly-owned subsidiaries of Aimco in exchange for consideration totaling $230.1 million,
consisting primarily of cash of $21.3 million, common OP Units with a fair value of $9.8 million,
the assumption of $168.0 million in property debt, and the assumption of $30.9 million in mortgage
participation liabilities. This total consideration included $50.7 million related to our 22%
equity interest in VMS. Exclusive of our share, the consideration paid for the seven properties
exceeded the carrying amount of the noncontrolling interest in such properties by $44.9 million.
This excess consideration is reflected in our consolidated balance sheet as an increase in the
carrying amount of the seven properties.
In connection with VMSs sale of seven properties to our wholly-owned subsidiaries, we issued
178,500 common OP Units to the limited partners in VMS. As a limited partner in VMS, we received
approximately 123,400 common OP Units, which we eliminate in our consolidated financial statements.
Common OP Units issued to unrelated limited partners in VMS totaled 55,100 and had an aggregate
fair value of $3.0 million.
Approximately $32.7 million of the $42.2 million debt extinguishment gain related to the
property loans that were secured by the eight properties sold to third parties and three properties
we acquired from VMS but subsequently sold and is reported in discontinued operations for the year
ended December 31, 2007. The remaining $9.5 million portion of the debt extinguishment gain
related to the property loans that were secured by the four VMS properties we purchased and
continue to own and is reported in our continuing operations as gain on dispositions of
unconsolidated real estate and other. Although 78% of the equity interests in VMS were held by
unrelated noncontrolling partners, no noncontrolling interest share of the gains on debt
extinguishment and sale of the properties was recognized in our earnings. As required by then
applicable GAAP, we had in prior years recognized the noncontrolling partners share of VMS losses
in excess of the noncontrolling partners capital contributions. The amounts of those previously
recognized
losses exceeded the noncontrolling partners share of the gains on debt extinguishment and
sale of the properties; accordingly, no noncontrolling interests in such gains have been recognized
in our earnings. For the year ended December 31, 2007, the aggregate effect of the gains on
extinguishment of VMS debt and sale of VMS properties was to decrease loss from continuing
operations attributable to the Partnerships common unitholders by $9.5 million ($0.09 per diluted
unit) and decrease net loss attributable to the Partnerships common unitholders by $65.0 million
($0.62 per diluted unit).
47
During the three months ended December 31, 2007, VMS distributed its remaining cash,
consisting primarily of undistributed proceeds from the sale of its 15 properties (including
properties sold to us). Of the $42.4 million of cash distributed to the unrelated limited
partners, $21.3 million represents the cash consideration we contributed in exchange for the
purchase of seven properties and is presented in purchases of partnership interests and other
assets in the consolidated statement of cash flows for the year ended December 31, 2007. The
remainder of the cash distributed to the unrelated limited partners is presented in payment of
distributions to noncontrolling interest in the consolidated statement of cash flows.
Palazzo Joint Venture
In December 2007, we entered into a joint venture agreement with a third party investor which
provides for the co-ownership of three multi-family properties with 1,382 units located in West Los
Angeles. Under the agreement, we contributed three wholly-owned properties, The Palazzo at Park La
Brea, The Palazzo East at Park La Brea and The Villas at Park La Brea to the partnership, which we
refer to as Palazzo, at a value of $726.0 million, or approximately $525,000 per unit. Palazzo had
existing property debt of approximately $296.0 million and an implied equity value of approximately
$430.0 million. We received $202.0 million from the investor in exchange for an approximate 47%
interest in Palazzo, of which approximately $7.9 million was used to fund escrows for capital
improvements and various operating requirements. We own the remaining interests in Palazzo,
including a managing interest, and will operate the properties in exchange for a property
management fee and certain other fees over the term of the partnership.
We determined Palazzo is a VIE and that we are the primary beneficiary who should consolidate
this partnership. We deferred recognition of a gain on this transaction and recognized the
consideration received as an increase in noncontrolling interests in consolidated real estate
partnerships.
NOTE 4 Investments in Unconsolidated Real Estate Partnerships
We owned general and limited partner interests in unconsolidated real estate partnerships
owning approximately 77, 85 and 94 properties at December 31, 2009, 2008 and 2007, respectively.
We acquired these interests through various transactions, including large portfolio acquisitions
and offers to individual limited partners. Our total ownership interests in these unconsolidated
real estate partnerships typically ranges from less than 1% to 50% and in some instances may exceed
50%.
The following table provides selected combined financial information for the unconsolidated
real estate partnerships in which we had investments accounted for under the equity method as of
and for the years ended December 31, 2009, 2008 and 2007 (in thousands):
2009 | 2008 | 2007 | ||||||||||
Real estate, net of accumulated depreciation |
$ | 95,226 | $ | 122,788 | $ | 133,544 | ||||||
Total assets |
122,543 | 155,444 | 165,567 | |||||||||
Secured and other notes payable |
101,678 | 122,859 | 124,406 | |||||||||
Total liabilities |
145,637 | 175,681 | 180,222 | |||||||||
Partners deficit |
(23,094 | ) | (20,237 | ) | (14,655 | ) | ||||||
Rental and other property revenues |
55,366 | 69,392 | 73,672 | |||||||||
Property operating expenses |
(34,497 | ) | (42,863 | ) | (45,998 | ) | ||||||
Depreciation expense |
(10,302 | ) | (12,640 | ) | (13,965 | ) | ||||||
Interest expense |
(11,103 | ) | (17,182 | ) | (17,194 | ) | ||||||
Gain on sale |
8,482 | 5,391 | 59 | |||||||||
Net income (loss) |
6,622 | 1,398 | (4,845 | ) |
As a result of our acquisition of interests in unconsolidated real estate partnerships at a
cost in excess of the historical carrying amount of the partnerships net assets, our aggregate
investment in these partnerships at December 31, 2009 and 2008 of $104.2 million and $117.9
million, respectively, exceeds our share of the underlying historical partners deficit of the
partnerships by approximately $108.4 million and $121.8 million, respectively.
48
NOTE 5 Notes Receivable
The following table summarizes our notes receivable at December 31, 2009 and 2008 (in
thousands):
2009 | 2008 | |||||||||||||||||||||||
Unconsolidated | Unconsolidated | |||||||||||||||||||||||
Real Estate | Non- | Real Estate | Non- | |||||||||||||||||||||
Partnerships | Affiliates | Total | Partnerships | Affiliates | Total | |||||||||||||||||||
Par value notes |
$ | 11,353 | $ | 20,862 | $ | 32,215 | $ | 18,855 | $ | 19,253 | $ | 38,108 | ||||||||||||
Discounted notes |
5,095 | 141,468 | 146,563 | 8,575 | 138,387 | 146,962 | ||||||||||||||||||
Allowance for loan
losses |
(2,153 | ) | (37,061 | ) | (39,214 | ) | (4,863 | ) | (17,743 | ) | (22,606 | ) | ||||||||||||
Total notes receivable |
$ | 14,295 | $ | 125,269 | $ | 139,564 | $ | 22,567 | $ | 139,897 | $ | 162,464 | ||||||||||||
Face value of
discounted notes |
$ | 37,709 | $ | 155,848 | $ | 193,557 | $ | 39,333 | $ | 148,790 | $ | 188,123 |
Included in notes receivable from unconsolidated real estate partnerships at December 31,
2009 and 2008, are $2.4 million and $4.2 million, respectively, in notes that were secured by
interests in real estate or interests in real estate partnerships. We earn interest on these
secured notes receivable at various annual interest rates averaging 12.0%.
Included in the notes receivable from non-affiliates at December 31, 2009 and 2008, are $102.2
million and $95.8 million, respectively, in notes that were secured by interests in real estate or
interests in real estate partnerships. We earn interest on these secured notes receivable at
various annual interest rates ranging between 4.0% and 12.0% and averaging 4.7%.
Notes receivable from non-affiliates at December 31, 2009 and 2008, include notes receivable
totaling $87.4 million and $85.6 million, respectively, from 31 entities (the borrowers) that are
wholly owned by a single individual. We originated these notes in November 2006 pursuant to a loan
agreement that provides for total funding of approximately $110.0 million, including $16.4 million
for property improvements and an interest reserve, of which $4.6 million had not been funded as of
December 31, 2009. The notes mature in November 2016, bear interest at LIBOR plus 2.0%, are
partially guaranteed by the owner of the borrowers, and are collateralized by second mortgages on
87 buildings containing 1,597 residential units and 42 commercial spaces in West Harlem, New York
City. In conjunction with the loan agreement, we entered into a purchase option and put agreement
with the borrowers under which we may purchase some or all of the buildings and, subject to
achieving specified increases in rental income, the borrowers may require us to purchase the
buildings (see Note 8). We determined that the stated interest rate on the notes on the date the
loan was originated was a below-market interest rate and recorded a $19.4 million discount to
reflect the estimated fair value of the notes based on an estimated market interest rate of LIBOR
plus 4.0%. The discount was determined to be attributable to our real estate purchase option,
which we recorded separately in other assets. Accretion of this discount, which is included in
interest income in our consolidated statements of income, totaled $0.9 million in 2009, $0.7
million in 2008 and $1.9 million in 2007, inclusive of a $1.5 million adjustment of accretion
recognized upon the repayment of a portion of the outstanding principal balance in 2007. The value
of the purchase option asset will be included in the cost of properties acquired pursuant to the
option or otherwise be charged to expense. We determined that the borrowers are VIEs and, based on
qualitative and quantitative analysis, determined that the individual who owns the borrowers and
partially guarantees the notes is the primary beneficiary.
As part of the March 2002 acquisition of Casden Properties, Inc., we invested $50.0 million
for a 20% passive interest in Casden Properties LLC, an entity organized to acquire, re-entitle and
develop land parcels in Southern California. Based upon the profit allocation agreement, we
account for this investment as a note receivable and through 2008 were amortizing the discounted
value of the investment to the $50.0 million previously estimated to be collectible, through
January 2, 2009, the initial dissolution date of the entity. In 2009, the managing member extended
the dissolution date. In connection with the preparation of our 2008 annual financial statements
and as a result of a decline in land values in Southern California, we determined our recorded
investment amount was not fully recoverable, and accordingly recognized an impairment loss of $16.3
million ($10.0 million net of tax) during the three months ended December 31, 2008. In connection
with the preparation of our 2009 annual financial statements and as a result of continued declines
in land values in Southern California, we determined our then recorded investment amount was not
fully recoverable, and accordingly recognized an impairment loss of $20.7 million ($12.4 million
net of tax) during the three months ended December 31, 2009.
49
Interest income from total non-impaired par value and certain discounted notes for the years
ended December 31, 2009, 2008 and 2007 totaled $5.7 million, $7.8 million and $11.7 million,
respectively. For the years ended December 31, 2009, 2008 and 2007, we recognized accretion income
on certain discounted notes of $0.1 million, $1.4 million and $8.1 million, respectively.
The activity in the allowance for loan losses in total for both par value notes and discounted
notes for the years ended December 31, 2009 and 2008, is as follows (in thousands):
2009 | 2008 | |||||||
Balance at beginning of year |
$ | (22,606 | ) | $ | (6,435 | ) | ||
Provisions for losses on notes receivable |
(2,231 | ) | (1,673 | ) | ||||
Recoveries of losses on notes receivable |
1,422 | 417 | ||||||
Provisions for impairment loss on investment in Casden Properties LLC |
(20,740 | ) | (16,321 | ) | ||||
Net reductions due to consolidation of real estate partnerships and
property dispositions |
4,941 | 1,406 | ||||||
Balance at end of year |
$ | (39,214 | ) | $ | (22,606 | ) | ||
During the years ended December 31, 2009 and 2008, we determined that an allowance for loan
losses of $1.2 million and $3.6 million, respectively, was required on certain of our par value
notes that had carrying amounts of $3.8 million and $11.4 million, respectively. The average
recorded investment in the impaired par value notes for the years ended December 31, 2009 and 2008,
was $7.6 million and $9.0 million, respectively. The remaining $28.4 million in par value notes
receivable at December 31, 2009, is estimated to be collectible and, therefore, interest income on
these par value notes is recognized as it is earned.
As of December 31, 2009 and 2008, we determined that an allowance for loan losses of $1.0
million and $2.7 million, respectively, was required on certain of our discounted notes (excluding
the note related to Casden Properties LLC discussed above) that had carrying values of $1.6 million
and $5.4 million, respectively. The average recorded investment in the impaired discounted notes
for the years ended December 31, 2009 and 2008, was $3.5 million and $4.9 million, respectively.
NOTE 6 Property Tax-Exempt Bond Financings, Property Loans Payable and Other Borrowings
The following table summarizes our property tax-exempt bond financings related to properties
classified as held for use at December 31, 2009 and 2008, the majority of which is non-recourse to
us (in thousands):
Weighted Average | Principal | |||||||||||
Interest Rate | Outstanding | |||||||||||
2009 | 2009 | 2008 | ||||||||||
Fixed rate property tax-exempt bonds payable |
5.10 | % | $ | 140,995 | $ | 131,530 | ||||||
Variable rate property tax-exempt bonds payable |
0.90 | % | 433,931 | 497,969 | ||||||||
Total |
$ | 574,926 | $ | 629,499 | ||||||||
Fixed rate property tax-exempt bonds payable mature at various dates through December 2049.
Variable rate property tax-exempt bonds payable mature at various dates through June 2038.
Principal and interest on these bonds are generally payable in semi-annual installments with
balloon payments due at maturity. Certain of our property tax-exempt bonds at December 31, 2009,
are remarketed periodically by a remarketing agent to maintain a variable yield. If the
remarketing agent is unable to remarket the bonds, then the remarketing agent can put the bonds to
us. We believe that the likelihood of this occurring is remote. At December 31, 2009, our
property tax-exempt bond financings related to properties classified as held for use were secured
by 39 properties with a combined net book value of $837.7 million. As discussed in Note 2, certain
fixed rate property tax-exempt bonds payable have been converted to variable rates using total rate
of return swaps and are presented above as variable rate debt at their carrying amounts, or fair
value.
50
The following table summarizes our property loans payable related to properties classified as
held for use at December 31, 2009 and 2008, the majority of which are non-recourse to us (in
thousands):
Weighted Average | Principal | |||||||||||
Interest Rate | Outstanding | |||||||||||
2009 | 2009 | 2008 | ||||||||||
Fixed rate property notes payable |
6.00 | % | $ | 4,773,812 | $ | 4,588,567 | ||||||
Variable rate property notes payable |
2.46 | % | 75,877 | 223,561 | ||||||||
Secured notes credit facility |
1.02 | % | 34,544 | 46,408 | ||||||||
Total |
$ | 4,884,233 | $ | 4,858,536 | ||||||||
Fixed rate property notes payable mature at various dates through August 2053. Variable rate
property notes payable mature at various dates through November 2030. Principal and interest are
generally payable monthly or in monthly interest-only payments with balloon payments due at
maturity. At December 31, 2009, our property notes payable related to properties classified as
held for use were secured by 352 properties with a combined net book value of $5,929.5 million. As
discussed in Note 2, certain fixed rate secured notes payable have been converted to variable rates
using total rate of return swaps and are presented above as variable rate debt at their carrying
amounts, or fair value.
At December 31, 2009, we had a secured revolving credit facility with a major life company
that provided for borrowings of up to $200.0 million. In January 2010, the credit facility was
modified to reduce allowed borrowings to the then outstanding amount of $46.3 million. The primary
function of the facility is to secure short-term fully pre-payable non-recourse loans for a period
of less than three years. The interest rate on the notes provided through the facility is 30-day
LIBOR plus 0.78%. Each loan under the facility is treated as a separate borrowing and is secured
by a specific property. None of the facility loans are cross-collateralized or cross-defaulted.
This facility matures in October 2010, and has two one-year extension options for a $500,000 fee
per extension. At December 31, 2009, outstanding borrowings of $34.5 million related to properties
classified as held for use are included in 2012 maturities below based on the extension options.
Our consolidated debt instruments generally contain covenants common to the type of facility
or borrowing, including financial covenants establishing minimum debt service coverage ratios and
maximum leverage ratios. At December 31, 2009, we were in compliance with all financial covenants
pertaining to our consolidated debt instruments.
Other borrowings totaled $53.1 million and $96.0 million at December 31, 2009 and 2008,
respectively. At December 31, 2009, other borrowings includes $44.6 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%. The maturity dates for other borrowings
range from 2010 to 2039, although certain amounts are due upon occurrence of specified events, such
as property sales.
As of December 31, 2009, the scheduled principal amortization and maturity payments for our
property tax-exempt bonds, property notes payable and other borrowings related to properties in
continuing operations are as follows (in thousands):
Amortization | Maturities | Total | ||||||||||
2010 |
$ | 98,844 | $ | 3,349 | $ | 102,193 | ||||||
2011 |
103,586 | 237,796 | 341,382 | |||||||||
2012 |
106,781 | 205,705 | 312,486 | |||||||||
2013 |
106,373 | 383,992 | 490,365 | |||||||||
2014 |
103,089 | 267,544 | 370,633 | |||||||||
Thereafter |
3,895,157 | |||||||||||
$ | 5,512,216 | |||||||||||
51
NOTE 7 Term Loans and Credit Facility
We have an Amended and Restated Senior Secured Credit Agreement, as amended, with a syndicate
of financial institutions, which we refer to as the Credit Agreement. In addition to us, Aimco and
an Aimco subsidiary are also borrowers under the Credit Agreement.
As of December 31, 2009, the Credit Agreement consisted of aggregate commitments of $270.0
million, comprised of the $90.0 million outstanding balance on the term loan and $180.0 million of
revolving loan commitments. The term loan bears interest at LIBOR plus 1.5%, or at our option, a
base rate equal to the prime rate, and matures March 2011. Borrowings under the revolving credit
facility bear interest based on a pricing grid determined by leverage (either at LIBOR plus 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 revolving credit facility matures May 1, 2011, and may be extended for an additional
year, subject to certain conditions, including payment of a 45.0 basis point fee on the total
revolving commitments and repayment of the remaining term loan balance by February 1, 2011.
Pursuant to the Credit Agreement, while any balance under the term loan is outstanding, repurchases
of our Common Stock are permitted with 50% of net asset sale proceeds if the other 50% of such net
asset sale proceeds are applied to repay the term loan. The Credit Agreement permits us to
increase revolving commitments by up to $320.0 million, subject to our obtaining such commitments
from eligible lenders.
The Credit Agreement includes customary financial covenants, including the maintenance of
specified ratios with respect to total indebtedness to gross asset value, total secured
indebtedness to gross asset value, aggregate recourse indebtedness to gross asset value, variable
rate debt to total indebtedness, debt service coverage and fixed charge coverage; the maintenance
of a minimum adjusted tangible net worth; and limitations regarding the amount of
cross-collateralized debt. The Credit Agreement includes other customary covenants, including a
restriction on distributions and other restricted payments, but permits distributions during any
four consecutive fiscal quarters in an aggregate amount of up to 95% of our funds from operations
for such period, subject to certain non-cash adjustments, or such amount as may be necessary to
maintain Aimcos REIT status. We were in compliance with all such covenants as of December 31,
2009.
The lenders under the Credit Agreement may accelerate any outstanding loans if, among other
things: we fail to make payments when due (subject to applicable grace periods); material defaults
occur under other debt agreements; certain bankruptcy or insolvency events occur; material
judgments are entered against us; we fail to comply with certain covenants, such as the requirement
to deliver financial information or the requirement to provide notices regarding material events
(subject to applicable grace periods in some cases); indebtedness is incurred in violation of the
covenants; or prohibited liens arise.
At December 31, 2009, the term loan had an outstanding principal balance of $90.0 million and
an interest rate of 1.73%. We repaid $45.0 million of the term loan through February 26, 2010,
leaving a remaining outstanding balance of $45.0 million. At December 31, 2009, we had no
outstanding borrowings under the revolving credit facility. The amount available under the
revolving credit facility at December 31, 2009, was $136.2 million (after giving effect to $43.8
million outstanding for undrawn letters of credit issued under the revolving credit facility). The
proceeds of revolving loans are generally permitted to be used to fund working capital and for
other corporate purposes.
On February 3, 2010, we entered into an Eighth Amendment to our Credit Agreement, which
provides for a reduction in the minimum threshold for our debt service coverage and fixed charge
coverage ratios and an increase in the maximum threshold for our secured indebtedness ratio.
NOTE 8 Commitments and Contingencies
Commitments
In connection with our redevelopment and capital improvement activities, we have commitments
of approximately $4.8 million related to construction projects that are expected to be completed
during 2010. Additionally, we enter into certain commitments for future purchases of goods and
services in connection with the operations of our properties. Those commitments generally have
terms of one year or less and reflect expenditure levels comparable to our historical expenditures.
As discussed in Note 5, we have committed to fund an additional $4.6 million in loans on
certain properties in West Harlem in New York City. In certain circumstances, the obligor under
these notes has the ability to put properties to us, which would result in a cash payment between
$30.0 and $97.5 million and the assumption of approximately $119.0
million in property debt. The ability to exercise the put and the amount of cash payment
required upon exercise is dependent upon the achievement of specified thresholds by the current
owner of the properties.
52
As discussed in Note 11, we have a potential obligation to repurchase $30.0 million in
liquidation preference of our Series A Community Reinvestment Act Perpetual Partnership Preferred
Units for $21.0 million.
Tax Credit Arrangements
We are required to manage certain consolidated real estate partnerships in compliance with
various laws, regulations and contractual provisions that apply to our historic and low-income
housing tax credit syndication arrangements. In some instances, noncompliance with applicable
requirements could result in projected tax benefits not being realized and require a refund or
reduction of investor capital contributions, which are reported as deferred income in our
consolidated balance sheet, until such time as our obligation to deliver tax benefits is relieved.
The remaining compliance periods for our tax credit syndication arrangements range from less than
one year to 15 years. We do not anticipate that any material refunds or reductions of investor
capital contributions will be required in connection with these arrangements.
Legal Matters
In addition to the matters described below, we are a party to various legal actions and
administrative proceedings arising in the ordinary course of business, some of which are covered by
our general liability insurance program, and none of which we expect to have a material adverse
effect on our consolidated financial condition, results of operations or cash flows.
Limited Partnerships
In connection with our acquisitions of interests in real estate partnerships and our role as
general partner in certain real estate partnerships, we are sometimes subject to legal actions,
including allegations that such activities may involve breaches of fiduciary duties to the partners
of such real estate partnerships or violations of the relevant partnership agreements. We may incur
costs in connection with the defense or settlement of such litigation. We believe that we comply
with our fiduciary obligations and relevant partnership agreements. Although the outcome of any
litigation is uncertain, we do not expect any such legal actions to have a material adverse effect
on our consolidated financial condition, results of operations or cash flows.
Environmental
Various Federal, state and local laws subject property owners or operators to liability for
management, and the costs of removal or remediation, of certain hazardous substances present on a
property, including lead-based paint. Such laws often impose liability without regard to whether
the owner or operator knew of, or was responsible for, the release or presence of the hazardous
substances. The presence of, or the failure to manage or remedy properly, hazardous substances may
adversely affect occupancy at affected apartment communities and the ability to sell or finance
affected properties. In addition to the costs associated with investigation and remediation actions
brought by government agencies, and potential fines or penalties imposed by such agencies in
connection therewith, the presence of hazardous substances on a property could result in claims by
private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also
impose liability for the cost of removal, remediation or disposal of hazardous substances through a
licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of
hazardous substances is potentially liable under such laws. These laws often impose liability
whether or not the person arranging for the disposal ever owned or operated the disposal facility.
In connection with the ownership, operation and management of properties, we could potentially be
liable for environmental liabilities or costs associated with our properties or properties we
acquire or manage in the future.
We have determined that our legal obligations to remove or remediate hazardous substances may
be conditional asset retirement obligations, as defined in GAAP. Except in limited circumstances
where the asset retirement activities are expected to be performed in connection with a planned
construction project or property casualty, we believe that the fair value of our asset retirement
obligations cannot be reasonably estimated due to significant uncertainties in the timing and
manner of settlement of those obligations. Asset retirement obligations that are reasonably
estimable as of December 31, 2009, are immaterial to our consolidated financial condition, results
of operations and cash flows.
53
Mold
Aimco has been named as a defendant in lawsuits that have alleged personal injury and property
damage as a result of the presence of mold. In addition, we are aware of lawsuits against owners
and managers of multifamily properties asserting claims of personal injury and property damage
caused by the presence of mold, some of which have resulted in substantial monetary judgments or
settlements. We have only limited insurance coverage for property damage loss claims arising from
the presence of mold and for personal injury claims related to mold exposure. We have implemented
policies, procedures, third-party audits and training, and include a detailed moisture intrusion
and mold assessment during acquisition due diligence. We believe these measures will prevent or
eliminate mold exposure from our properties and will minimize the effects that mold may have on our
residents. To date, we have not incurred any material costs or liabilities relating to claims of
mold exposure or to abate mold conditions. Because the law regarding mold is unsettled and subject
to change, we can make no assurance that liabilities resulting from the presence of or exposure to
mold will not have a material adverse effect on our consolidated financial condition, results of
operations or cash flows.
Operating Leases
We are obligated under office space and equipment non-cancelable operating leases. In
addition, we sublease certain of our office space to tenants under non-cancelable subleases.
Approximate minimum annual rentals under operating leases and approximate minimum payments to be
received under annual subleases are as follows (in thousands):
Operating | ||||||||
Lease | Sublease | |||||||
Obligations | Receivables | |||||||
2010 |
$ | 7,345 | $ | 818 | ||||
2011 |
5,800 | 185 | ||||||
2012 |
5,056 | 64 | ||||||
2013 |
2,594 | 12 | ||||||
2014 |
2,265 | | ||||||
Thereafter |
1,828 | | ||||||
Total |
$ | 24,888 | $ | 1,079 | ||||
Substantially all of the office space subject to the operating leases described above are for
the use of our corporate offices and area operations. Rent expense recognized totaled $7.7
million, $10.2 million and $9.8 million for the years ended December 31, 2009, 2008 and 2007,
respectively. Sublease receipts that offset rent expense totaled approximately $0.7 million, $0.7
million and $1.3 million for the years ended December 31, 2009, 2008 and 2007, respectively.
As discussed in Note 3, during the years ended December 31, 2009 and 2008, we commenced
restructuring activities pursuant to which we vacated certain leased office space for which we
remain obligated. In connection with the restructurings, we accrued amounts representing the
estimated fair value of certain lease obligations related to space we are no longer using, reduced
by estimated sublease amounts. At December 31, 2009, approximately $6.9 million related to the
above operating lease obligations was included in accrued liabilities related to these estimates.
54
NOTE 9 Income Taxes
Deferred income taxes reflect the net effects of temporary differences between the carrying
amounts of assets and liabilities of the taxable REIT subsidiaries for financial reporting purposes
and the amounts used for income tax purposes. Significant components of our deferred tax
liabilities and assets are as follows (in thousands):
2009 | 2008 | |||||||
Deferred tax liabilities: |
||||||||
Partnership differences |
$ | 32,565 | $ | 47,635 | ||||
Depreciation |
2,474 | 2,477 | ||||||
Deferred revenue |
14,862 | 7,757 | ||||||
Other |
| 11 | ||||||
Total deferred tax liabilities |
$ | 49,901 | $ | 57,880 | ||||
Deferred tax assets: |
||||||||
Net operating, capital and other loss carryforwards |
$ | 37,164 | $ | 7,183 | ||||
Provision for impairments on real estate assets |
33,321 | 33,321 | ||||||
Receivables |
3,094 | 5,530 | ||||||
Accrued liabilities |
9,272 | 23,504 | ||||||
Accrued interest expense |
| 2,220 | ||||||
Intangibles management contracts |
1,911 | 3,789 | ||||||
Tax credit carryforwards |
6,949 | 8,521 | ||||||
Equity compensation |
1,463 | 1,983 | ||||||
Other |
929 | 155 | ||||||
Total deferred tax assets |
94,103 | 86,206 | ||||||
Valuation allowance |
(2,187 | ) | | |||||
Net deferred income tax assets |
$ | 42,015 | $ | 28,326 | ||||
As of December 31, 2009, we determined a valuation allowance for our deferred tax assets was
necessary for certain state net operating losses based on a determination that it was more likely
than not that such assets will not be realized prior to their expiration.
A reconciliation of the beginning and ending balance of our unrecognized tax benefits is
presented below:
2009 | 2008 | 2007 | ||||||||||
Balance at January 1 |
$ | 3,080 | $ | 2,965 | $ | 3,118 | ||||||
Reductions as a result of the lapse of applicable statutes |
| | (189 | ) | ||||||||
Additions based on tax positions related to the prior year |
| 115 | 36 | |||||||||
Reductions based on tax positions related to the prior year |
(1 | ) | | | ||||||||
Balance at December 31 |
$ | 3,079 | $ | 3,080 | $ | 2,965 | ||||||
We do not anticipate any material changes in existing unrecognized tax benefits during the
next 12 months. Because the statute of limitations has not yet elapsed, our Federal income tax
returns for the year ended December 31, 2006, and subsequent years and certain of our State income
tax returns for the year ended December 31, 2004, and subsequent years are currently subject to
examination by the Internal Revenue Service or other tax authorities. As discussed in Note 2, the
IRS has issued us summary reports including its proposed adjustments to the Aimco Operating
Partnerships 2007 and 2006 Federal tax returns. We do not expect the proposed adjustments to have
any material effect on our unrecognized tax benefits, financial condition or results of operations.
Our policy is to include interest and penalties related to income taxes in income taxes in our
consolidated statements of income.
In accordance with the accounting requirements for stock-based compensation, our deferred tax
assets at December 31, 2008, are net of $3.6 million of excess tax benefits from employee stock
option exercises and vested restricted stock awards. As of December 31, 2009, we had no such
excess tax benefits from employee stock option exercises and vested restricted stock awards.
The cost of land and depreciable property, net of accumulated depreciation, for federal income
tax purposes was approximately $4.6 billion.
55
Significant components of the provision (benefit) for income taxes are as follows and are
classified within income tax benefit in continuing operations and income from discontinued
operations, net in our statements of income for the years ended December 31, 2009, 2008 and 2007
(in thousands):
2009 | 2008 | 2007 | ||||||||||
Current: |
||||||||||||
Federal |
$ | (1,910 | ) | $ | 8,678 | $ | 20 | |||||
State |
3,992 | 2,415 | 1,938 | |||||||||
Total current |
2,082 | 11,093 | 1,958 | |||||||||
Deferred: |
||||||||||||
Federal |
(17,320 | ) | (22,115 | ) | (17,816 | ) | ||||||
State |
(3,988 | ) | (2,386 | ) | (1,833 | ) | ||||||
Total deferred |
(21,308 | ) | (24,501 | ) | (19,649 | ) | ||||||
Total benefit |
$ | (19,226 | ) | $ | (13,408 | ) | $ | (17,691 | ) | |||
Classification: |
||||||||||||
Continuing operations |
$ | (18,669 | ) | $ | (53,202 | ) | $ | (19,795 | ) | |||
Discontinued operations |
$ | (557 | ) | $ | 39,794 | $ | 2,104 |
Consolidated losses subject to tax, consisting of pretax income or loss of our taxable REIT
subsidiaries and gains or loss on certain property sales that are subject to income tax under
section 1374 of the Internal Revenue Code, for the years ended December 31, 2009, 2008 and 2007
totaled $40.6 million, $81.8 million and $41.5 million, respectively. The reconciliation of income
tax attributable to continuing and discontinued operations computed at the U.S. statutory rate to
income tax benefit is shown below (dollars in thousands):
2009 | 2008 | 2007 | ||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
Tax at U.S. statutory rates on
consolidated loss subject to
tax |
$ | (14,221 | ) | 35.0 | % | $ | (28,632 | ) | 35.0 | % | $ | (14,508 | ) | 35.0 | % | |||||||||
State income tax, net of
Federal tax benefit |
(2,183 | ) | 5.4 | % | 29 | | 106 | (0.3 | %) | |||||||||||||||
Effect of permanent differences |
127 | (0.3 | %) | 215 | (0.3 | %) | (306 | ) | 0.7 | % | ||||||||||||||
Tax effect of intercompany
transfers of assets between
the REIT and taxable REIT
subsidiaries (1) |
(4,759 | ) | 11.7 | %) | 15,059 | (18.4 | %) | | | |||||||||||||||
Write-off of excess tax basis |
(377 | ) | 0.9 | % | (79 | ) | 0.1 | % | (2,983 | ) | 7.2 | % | ||||||||||||
Increase in valuation allowance |
2,187 | (5.4 | %) | | | | | |||||||||||||||||
$ | (19,226 | ) | 47.3 | % | $ | (13,408 | ) | 16.4 | % | $ | (17,691 | ) | 42.6 | % | ||||||||||
(1) | Includes the effect of assets contributed by us to taxable REIT subsidiaries, for which
deferred tax expense or benefit was recognized upon the sale or impairment of the asset by
the taxable REIT subsidiary. |
Income taxes paid totaled approximately $4.6 million, $13.8 million and $3.0 million in the
years ended December 31, 2009, 2008 and 2007, respectively.
At December 31, 2009, we had net operating loss carryforwards, or NOLs, of approximately $60.6
million for income tax purposes that expire in years 2027 to 2029. Subject to certain separate
return limitations, we may use these NOLs to offset all or a portion of taxable income generated by
our taxable REIT subsidiaries. We generated approximately $45.9 million of NOLs during the year
ended December 31, 2009, as a result of losses from our taxable REIT subsidiaries. The
deductibility of intercompany interest expense with our taxable REIT subsidiaries is subject to
certain intercompany limitations based upon taxable income as required under Section 163(j) of the
Code. As of December 31, 2009, interest carryovers of approximately $24.6 million, limited by
Section 163(j) of the Code, are available against U.S. Federal tax without expiration. The
deferred tax asset related to these interest carryovers is approximately $9.6 million.
Additionally, our low-income housing and rehabilitation tax credit carryforwards as of December 31,
2009, were approximately $7.4 million for income tax purposes that expire in years 2012 to 2028.
56
NOTE 10 Notes Receivable from Aimco
In exchange for the sale of certain real estate assets to Aimco in December 2000, we received
notes receivable, totaling $10.1 million. The notes bear interest at the rate of 5.7% per annum.
Of the $10.1 million total, $7.6 million is due upon demand, and the remainder is due in scheduled
semi-annual payments with all unpaid principal and interest due on December 31, 2010. At December
31, 2009 and 2008, the balance of the notes totaled $16.4 million and $15.6, respectively, which
includes accrued and unpaid interest.
NOTE 11 Partners Capital and Redeemable Preferred Units
Preferred OP Units Owned by Aimco
At December 31, 2009 and 2008, we had the following classes of preferred OP Units owned by
Aimco outstanding (stated at their redemption values):
Annual | ||||||||||||||||
Distribution | Balance | |||||||||||||||
Rate Per Share | December 31, | |||||||||||||||
Redemption | (paid | 2009 | 2008 | |||||||||||||
Date (1) | quarterly) | (thousands) | (thousands) | |||||||||||||
Perpetual: |
||||||||||||||||
Class G Partnership Preferred Units, $0.01 par
value, 4,050,000 units authorized, 4,050,000
units issued and outstanding (2) |
07/15/2008 | 9.3750 | % | $ | 101,000 | $ | 101,000 | |||||||||
Class T Partnership Preferred Units, $0.01 par
value, 6,000,000 units authorized, 6,000,000
units issued and outstanding |
07/31/2008 | 8.000 | % | 150,000 | 150,000 | |||||||||||
Class U Partnership Preferred Units, $0.01 par
value, 8,000,000 units authorized, 8,000,000
units issued and outstanding |
03/24/2009 | 7.750 | % | 200,000 | 200,000 | |||||||||||
Class V Partnership Preferred Units, $0.01 par
value, 3,450,000 units authorized, 3,450,000
units issued and outstanding |
09/29/2009 | 8.000 | % | 86,250 | 86,250 | |||||||||||
Class Y Partnership Preferred Units, $0.01 par
value, 3,450,000 units authorized, 3,450,000
units issued and outstanding |
12/21/2009 | 7.875 | % | 86,250 | 86,250 | |||||||||||
Series A Community Reinvestment Act Perpetual
Partnership Preferred Units, $0.01 par value
per unit, 240 units authorized, 134 and 146
units issued and outstanding (3) |
06/30/2011 | (3 | ) | 67,000 | 73,000 | |||||||||||
Total |
$ | 690,500 | $ | 696,500 | ||||||||||||
Less preferred units subject to repurchase
agreement (4) |
(30,000 | ) | | |||||||||||||
Total |
$ | 660,500 | $ | 696,500 | ||||||||||||
(1) | All classes of preferred units are redeemable by the Partnership only in connection with a
concurrent redemption by Aimco of the corresponding preferred Aimco equity held by unrelated
parties. All classes of Aimcos corresponding preferred stock are redeemable at Aimcos
option on and after the dates specified. |
|
(2) | Includes 10,000 units held by a consolidated subsidiary that are eliminated in consolidation. |
|
(3) | During 2006, Aimco sold 200 shares of its Series A Community Reinvestment Act Perpetual
Preferred Stock, $0.01 par value per share, or the CRA Preferred Stock, with a liquidation
preference of $500,000 per share, for net proceeds of $97.5 million. The Series A Community
Reinvestment Act Perpetual Partnership Preferred Units, or the CRA Preferred Units, have
substantially the same terms as the CRA Preferred Stock. Holders of the CRA Preferred Units
are entitled to cumulative cash dividends payable quarterly in arrears on March 31, June 30,
September 30, and December 31 of each year, when and as declared, beginning on September 30,
2006. For the period from the date of original issuance through March 31, 2015, the
distribution rate is a variable rate per annum equal to the Three-Month LIBOR Rate (as defined
in the articles supplementary designating the CRA Preferred Stock) plus 1.25%, calculated as
of the beginning of each quarterly dividend period. The rate at December 31, 2009 and 2008,
was 1.54% and 5.01%, respectively. Upon liquidation, holders of the CRA Preferred Units are
entitled to a preference of $500,000 per share, plus an amount equal to accumulated, accrued
and unpaid distributions, whether or not earned or declared. The CRA Preferred Units rank
prior to our common OP Units and on the same level as our other OP preferred Units, with
respect to the payment of distributions and the distribution of amounts upon liquidation,
dissolution or winding up. The CRA Preferred Units are not redeemable prior to June 30, 2011,
except in limited circumstances related to Aimcos REIT qualification. On and after June 30,
2011, the CRA Preferred Units are redeemable for cash, in whole or from
time to time in part, upon the redemption, at Aimcos option, of its CRA Preferred Stock at a
price per share equal to the liquidation preference, plus accumulated, accrued and unpaid
dividends, if any, to the redemption date. |
57
(4) | In June 2009, Aimco entered into an agreement to repurchase $36.0 million in liquidation
preference of its CRA Preferred Stock at a 30% discount to the liquidation preference.
Pursuant to this agreement, in June 2009, Aimco repurchased 12 shares, or $6.0 million in
liquidation preference, of CRA Preferred Stock for $4.2 million, and the holder of the CRA
Preferred Stock may require Aimco to repurchase an additional 60 shares, or $30.0 million in
liquidation preference, of CRA Preferred Stock over the next three years, for $21.0 million.
Concurrent with Aimcos repurchase of 12 shares, we repurchased from Aimco an equivalent
number of our CRA Preferred Units. If required, these additional repurchases will be for up
to $10.0 million in liquidation preference in May 2010, 2011 and 2012. Upon any repurchases
required of Aimco under this agreement, we will repurchase from Aimco an equivalent number of
our CRA Preferred Units. Based on the holders ability to require Aimco to repurchase an
additional 60 shares of CRA Preferred Stock pursuant to this agreement and our obligation to
purchase from Aimco a corresponding number of our CRA Preferred Units, $30.0 million in
liquidation preference of CRA Preferred Units, or the maximum redemption value of such
preferred units, is classified as part of redeemable preferred units within temporary capital
in our consolidation balance sheet at December 31, 2009. |
In connection with our June 2009 CRA Preferred Units repurchase discussed above, we
reflected the $1.8 million excess of the carrying value over the repurchase price, offset by $0.2
million of issuance costs previously recorded as a reduction of partners capital, as a reduction
of net income attributable to preferred unitholders for the year ended December 31, 2009. |
During 2008, Aimco repurchased 54 shares, or $27.0 million in liquidation preference, of its
CRA Preferred Stock, for cash totaling $24.8 million. Concurrent with this redemption, we
repurchased from Aimco an equivalent number of outstanding CRA Preferred Units. We reflected the
$2.2 million excess of the carrying value over the redemption price, offset by $0.7 million of
issuance costs previously recorded as a reduction of partners capital, is reflected as a reduction
of net income attributable to the Partnerships preferred unitholders for purposes of calculating
earnings per unit for the year ended December 31, 2008.
All classes of preferred OP Units are pari passu with each other and are senior to the common
OP Units. None of the classes of preferred OP Units have any voting rights, except the right to
approve certain changes to the Partnership Agreement that would adversely affect holders of such
class of units. Distributions on all preferred OP Units are subject to being declared by the
General Partner. All of the above outstanding classes of preferred units have a liquidation
preference per unit of $25, with the exception of the CRA Preferred Units, which have a liquidation
preference per unit of $500,000.
58
Redeemable Preferred OP Units
As of December 31, 2009 and 2008, the following classes of preferred OP Units (stated at their
redemption values) owned by third parties were outstanding (in thousands, except unit data):
2009 | 2008 | |||||||
Class One Partnership Preferred Units, 90,000 units
issued and outstanding, redeemable at the holders
option one year following issuance, holder to receive
distributions at 8.75% ($8.00 per annum per unit) |
$ | 8,229 | $ | 9,000 | ||||
Class Two Partnership Preferred Units, 23,700 and
44,050 units issued and outstanding, redeemable at
the holders option one year following issuance,
holders to receive distributions at 5.9% ($1.48 per
annum per unit) |
593 | 1,102 | ||||||
Class Three Partnership Preferred Units, 1,371,451
and 1,419,316 units issued and outstanding,
redeemable at the holders option one year following
issuance, holders to receive distributions at 7.88%
($1.97 per annum per unit) |
34,286 | 35,483 | ||||||
Class Four Partnership Preferred Units, 755,999 units
issued and outstanding, redeemable at the holders
option one year following issuance, holders to
receive distributions at 8.0% ($2.00 per annum per
unit) |
18,900 | 18,900 | ||||||
Class Five Partnership Preferred Units, 68,671 units
issued and outstanding, redeemable for cash at any
time at our option, holder to receive distributions
equal to the per unit distribution on the common OP
Units (1) |
2,747 | 2,747 | ||||||
Class Six Partnership Preferred Units, 802,453 units
issued and outstanding, redeemable at the holders
option one year following issuance, holder to receive
distributions at 8.5% ($2.125 per annum per unit) |
20,061 | 20,061 | ||||||
Class Seven Partnership Preferred Units, 27,960 units
issued and outstanding, redeemable at the holders
option one year following issuance, holder to receive
distributions at 9.5% ($2.375 per annum per unit) |
699 | 699 | ||||||
Class Eight Partnership Preferred Units, 6,250 units
issued and outstanding, redeemable for cash at any
time at our option, holder to receive distributions
equal to the per unit distribution on the common OP
Units (1) |
156 | 156 | ||||||
Subtotal |
$ | 85,671 | $ | 88,148 | ||||
(1) | Holders of the Class Five and Class Eight Partnership Preferred Units received the per
unit special distributions discussed below in addition to the regular distributions
received by common OP unitholders during 2009 and 2008. |
The Class One, Class Two, Class Three, Class Four, Class Six and Class Seven preferred OP
Units are redeemable, at the holders option. We, at our sole discretion, may settle such
redemption requests in cash or shares of Aimcos Class A Common Stock in a value equal to the
redemption preference. In the event we require Aimco to issue shares to settle a redemption
request, we would issue to Aimco a corresponding number of common OP Units. During 2008, we
established a redemption policy that requires cash settlement of redemption requests for the
redeemable preferred OP Units, subject to limited exceptions. Accordingly, these redeemable units
are classified as redeemable preferred units within temporary capital in our consolidated balance
sheets at December 31, 2009 and 2008, based on the expectation that we will cash settle these
units.
For any preferred OP Units that are redeemed for Aimco Class A Common Stock, upon redemption,
we will issue a common OP Unit to Aimco for each share of Aimco Class A Common Stock issued. In
addition, subject to certain conditions, the Class Four, Class Five, Class Six and Class Eight
Partnership Preferred Units are convertible into common OP Units.
During the years ended December 31, 2009 and 2008, approximately 68,200 and 38,400 preferred
OP Units, respectively, were tendered for redemption in exchange for cash. During the years ended
December 31, 2009 and 2008, no preferred OP Units were tendered for redemption in exchange for
shares of Aimco Class A Common Stock.
The following table presents a reconciliation of redeemable preferred units classified within
temporary capital for the years ended December 31, 2009 and 2008:
2009 | 2008 | |||||||
Balance at January |
$ | 88,148 | $ | | ||||
Net income attributable to redeemable preferred units |
6,288 | | ||||||
Distributions to preferred units |
(6,806 | ) | | |||||
Purchases of preferred units |
(1,725 | ) | | |||||
Reclassification of redeemable preferred units from partners capital |
30,000 | 88,148 | ||||||
Other |
751 | | ||||||
Balance at December 31 |
$ | 116,656 | $ | 88,148 | ||||
59
The distributions paid on each class of preferred OP Units classified as partners capital in
the years ended December 31, 2009, 2008 and 2007, and, in the case of the redeemable preferred OP
Units discussed above, classified in temporary capital as of December 31, 2009, are as follows (in
thousands, except per unit data):
2009 | 2008 | 2007 | ||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Total | |||||||||||||||||||
Class of Preferred | Per | Amount | Per | Amount | Per | Amount | ||||||||||||||||||
OP Units | Unit (1) | Paid | Unit (1) | Paid | Unit (1) | Paid | ||||||||||||||||||
Class G |
$ | 2.34 | $ | 9,492 | $ | 2.34 | $ | 9,492 | $ | 2.34 | $ | 9,492 | ||||||||||||
Class T |
2.00 | 12,000 | 2.00 | 12,000 | 2.00 | 12,000 | ||||||||||||||||||
Class U |
1.94 | 15,500 | 1.94 | 15,500 | 1.94 | 15,500 | ||||||||||||||||||
Class V |
2.00 | 6,900 | 2.00 | 6,900 | 2.00 | 6,900 | ||||||||||||||||||
Class W |
| | | | 4.25 | (2) | 8,100 | |||||||||||||||||
Class Y |
1.97 | 6,792 | 1.97 | 6,792 | 1.97 | 6,792 | ||||||||||||||||||
Series A CRA |
10,841 | (3) | 1,531 | 24,381 | (4) | 4,531 | 41,661 | 8,316 | ||||||||||||||||
Class One |
8.00 | 720 | 8.00 | 720 | 8.00 | 720 | ||||||||||||||||||
Class Two |
1.80 | 43 | 1.52 | 67 | 1.48 | 68 | ||||||||||||||||||
Class Three |
1.99 | 2,733 | 2.01 | 2,856 | 1.97 | 2,869 | ||||||||||||||||||
Class Four |
2.00 | 1,512 | 2.00 | 1,512 | 2.00 | 1,512 | ||||||||||||||||||
Class Five |
2.38 | 163 | 7.91 | 543 | 2.40 | 165 | ||||||||||||||||||
Class Six |
2.13 | 1,705 | 2.12 | 1,705 | 2.13 | 1,705 | ||||||||||||||||||
Class Seven |
2.38 | 66 | 2.36 | 66 | 2.38 | 67 | ||||||||||||||||||
Class Eight |
2.38 | 15 | 7.91 | 49 | 2.40 | 15 | ||||||||||||||||||
Total |
$ | 59,172 | $ | 62,733 | $ | 74,221 | ||||||||||||||||||
(1) | Amounts per unit are calculated based on the number of preferred units outstanding either at
the end of each year or as of conversion or redemption date, as noted. |
|
(2) | For the period from January 1, 2007, to the date of redemption. |
|
(3) | Amount per unit based on 134 units outstanding for the entire period. 12 units were
repurchased in June 2009 and received $6,509 in dividends through the date of purchase. |
|
(4) | Amount per unit is based on 146 units outstanding for the entire period. 54 units were
repurchased in September 2008 and received $17,980 in dividends through the date of purchase. |
Common OP Units
Common OP Units are redeemable by common OP Unitholders (other than the General Partner and
Special Limited Partner) at their option, subject to certain restrictions, on the basis of one
common OP Unit for either one share of Aimco Class A Common Stock or cash equal to the fair value
of a share of Aimco Class A Common Stock at the time of redemption. We have the option to require
Aimco to deliver shares of Aimco Class A Common Stock in exchange for all or any portion of the
cash requested. When a Limited Partner redeems a common OP Unit for Aimco Class A Common Stock,
Limited Partners Capital is reduced and Special Limited Partners capital is increased. Common OP
Units held by Aimco are not redeemable.
60
In December 2008, October 2008, July 2008, and December 2007, we declared special
distributions payable on January 29, 2009, December 1, 2008, August 29, 2008 and January 30, 2008,
respectively, to holders of record of common OP Units and High Performance Units on December 29,
2008, October 27, 2008, July 28, 2008 and December 31, 2007, respectively. The special
distributions were paid on common OP Units and High Performance Units in the amounts listed below.
We distributed to Aimco common OP Units equal to the number of shares we issued pursuant to Aimcos
corresponding special dividends in addition to approximately $0.60 per unit in cash. Holders of
common OP Units other than Aimco and holders of High Performance Units received the distribution
entirely in cash.
January 2009 | December 2008 | August 2008 | January 2008 | |||||||||||||
Aimco Operating Partnership Special | Special | Special | Special | Special | ||||||||||||
Distributions | Distribution | Distribution | Distribution | Distribution | ||||||||||||
Distribution per unit |
$ | 2.08 | $ | 1.80 | $ | 3.00 | $ | 2.51 | ||||||||
Total distribution |
$ | 230.1 million | $ | 176.6 million | $ | 285.5 million | $ | 257.2 million | ||||||||
Common OP Units and High Performance
Units outstanding on record date |
110,654,142 | 98,136,520 | 95,151,333 | 102,478,510 | ||||||||||||
Common OP Units held by Aimco |
101,169,951 | 88,650,980 | 85,619,144 | 92,795,891 | ||||||||||||
Total distribution on Aimco common OP
Units |
$ | 210.4 million | $ | 159.6 million | $ | 256.9 million | $ | 232.9 million | ||||||||
Cash distribution to Aimco |
$ | 60.6 million | $ | 53.2 million | $ | 51.4 million | $ | 55.0 million | ||||||||
Portion of distribution paid to Aimco
through issuance of common OP Units |
$ | 149.8 million | $ | 106.4 million | $ | 205.5 million | $ | 177.9 million | ||||||||
Common OP Units issued to Aimco
pursuant to distributions |
15,627,330 | 12,572,267 | 5,731,310 | 4,594,074 | ||||||||||||
Cash distributed to common OP Unit and
High Performance Unit holders other
than Aimco |
$ | 19.7 million | $ | 17.0 million | $ | 28.6 million | $ | 24.3 million |
As discussed in Note 2, during December 2009, we adopted the provisions of ASU 2010-01,
which relate to accounting for dividends with components of cash and stock. In prior periods, we
treated the shares of units issued in our special distributions similar to stock distributions,
with a reclassification within consolidated capital at the beginning of the earliest period
presented. In connection with our adoption of ASU 2010-01, we retrospectively adjusted our
consolidated balance sheet at December 31, 2008, by increasing accrued liabilities and other by
$149.0 million, representing the portion of our special distributions declared in December 2008
that was paid in January 2009 through the issuance of common OP Units.
Also in December 2008, October 2008, July 2008 and December 2007, Aimcos board of
directors declared corresponding special dividends payable on January 29, 2009, December 1, 2008,
August 29, 2008 and January 30, 2008, respectively, to holders of record of its Common Stock on
December 29, 2008, October 27, 2008, July 28, 2008 and December 31, 2007, respectively. A portion
of the special dividends in the amounts of $0.60 per share represents payment of the regular
dividend for the quarters ended December 31, 2008, September 30, 2008, June 30, 2008 and December
31, 2007, respectively, and the remaining amount per share represents an additional dividend
associated with taxable gains from property dispositions. Portions of the special dividends were
paid through the issuance of shares of Aimco Class A Common Stock. The table below summarizes
information regarding these special dividends.
January 2009 | December 2008 | August 2008 | January 2008 | |||||||||||||
Special | Special | Special | Special | |||||||||||||
Aimco Special Dividends | Dividend | Dividend | Dividend | Dividend | ||||||||||||
Dividend per share |
$ | 2.08 | $ | 1.80 | $ | 3.00 | $ | 2.51 | ||||||||
Outstanding shares of Common Stock on
the record date |
101,169,951 | 88,650,980 | 85,619,144 | 92,795,891 | ||||||||||||
Total dividend |
$ | 210.4 million | $ | 159.6 million | $ | 256.9 million | $ | 232.9 million | ||||||||
Portion of dividend paid in cash |
$ | 60.6 million | $ | 53.2 million | $ | 51.4 million | $ | 55.0 million | ||||||||
Portion of dividend paid through
issuance of shares |
$ | 149.8 million | $ | 106.4 million | $ | 205.5 million | $ | 177.9 million | ||||||||
Shares issued pursuant to dividend |
15,627,330 | 12,572,267 | 5,731,310 | 4,594,074 | ||||||||||||
Average share price on determination date |
$ | 9.58 | $ | 8.46 | $ | 35.84 | $ | 38.71 | ||||||||
Amounts after elimination of the effects
of shares of Common Stock held by
consolidated subsidiaries: |
||||||||||||||||
Outstanding shares of Common Stock on
the record date |
100,642,817 | 88,186,456 | 85,182,665 | 92,379,751 | ||||||||||||
Total dividend |
$ | 209.3 million | $ | 158.7 million | $ | 255.5 million | $ | 231.9 million | ||||||||
Portion of dividend paid in cash |
$ | 60.3 million | $ | 52.9 million | $ | 51.1 million | $ | 54.8 million | ||||||||
Portion of dividend paid through
issuance of shares |
$ | 149.0 million | $ | 105.8 million | $ | 204.4 million | $ | 177.1 million | ||||||||
Shares issued pursuant to dividend |
15,548,996 | 12,509,657 | 5,703,265 | 4,573,735 |
61
During 2008, Aimco issued approximately 17,000 shares of Aimco Class A Common Stock to certain
of its non-executive officers who purchased the shares at market prices. In exchange for the shares
purchased, the officers executed notes payable totaling $0.6 million. No shares were issued under
similar arrangements during 2009. These notes, which are 25% recourse to the borrowers, have a
10-year maturity and bear interest either at a fixed rate of 6% annually or a floating rate based
on the 30-day LIBOR plus 3.85%, which is subject to an annual interest rate cap of typically 7.25%.
The notes were contributed by Aimco to us in exchange for an equivalent number of common OP Units.
Total payments in 2009 and 2008 on all notes from officers were $0.8 million and $1.5 million,
respectively. In 2009 and 2008, Aimco reacquired approximately 94,000 and 31,000 shares of Aimco
Class A Common Stock from officers in exchange for the cancellation of related notes totaling $1.5
million and $1.0 million, respectively. Concurrently, we reacquired from Aimco an equal number of
common OP Units.
In addition, in 2009 and 2008, Aimco issued approximately 378,000 and 225,000 restricted
shares of Class A Common Stock to certain officers and employees and we concurrently issued a
corresponding number of common OP Units to Aimco. The restricted stock was recorded at the fair
market value of Aimco Class A Common Stock on the date of issuance. These shares of restricted
Aimco Class A Common Stock may not be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of and are subject to a risk of forfeiture prior to the expiration of the
applicable vesting period (ratably over a period of four years).
In 2008 and 2007, Aimco purchased in the open market approximately 13.9 million and 7.5
million shares of Aimco Class A Common Stock, respectively, at an average price per share of
approximately $34.02 and $43.70, respectively. Concurrent with Aimcos repurchases of Aimco Class
A Common Stock in 2008 and 2007, we repurchased from Aimco a corresponding number of common OP
Units at prices per unit equal to the prices per share paid by Aimco to repurchase such shares.
During 2009, Aimco did not repurchase any shares of Class A Common Stock on the open market.
In 2007, we completed tender offers for limited partnership interests resulting in the
issuance of approximately 55,400 common OP Units. Approximately 55,100 of the common OP Units
issued in 2007 were to unrelated limited partners in VMS in connection with our purchase of seven
properties from the partnership, as discussed in Note 3. In 2009 and 2008, we did not issue a
significant number of common OP Units in connection with tender offers for limited partners.
During the years ended December 31, 2009 and 2008, approximately 64,000 and 50,000 common OP
Units, respectively, were redeemed in exchange for cash, and approximately 519,000 and 114,000
common OP Units, respectively, were redeemed in exchange for shares of Aimco Class A Common Stock.
High Performance Units
From 1998 through 2005, we issued various classes of High Performance Units, or HPUs. These
HPUs were issued to limited liability companies owned by certain members of our senior management
(and Aimcos independent directors in the case of Class I HPUs only) in exchange for cash in
amounts that we determined, with the assistance of a nationally recognized independent valuation
expert, to be the fair value of the HPUs. The terms of the HPUs provide for the issuance,
following a measurement period of generally three years of an increased number of HPUs depending on
the degree, if any, to which certain financial performance benchmarks are achieved over the
applicable measurement period. The holders of HPUs at the conclusion of the measurement period
receive the same amount of distributions that are paid to holders of an equivalent number of our
outstanding common OP Units. At December 31, 2009 and 2008, 2,344,719 Class I HPUs, the sole class
of HPUs to meet the performance benchmarks, were outstanding. The minimum performance benchmarks
were not achieved for HPU Classes II through IX. Accordingly, those HPUs had only nominal value at
the conclusion of the related measurement period and were reacquired by us and cancelled.
Investment in Aimco
In 1998, Aimco issued 1.0 million shares of Class J Cumulative Convertible Preferred Stock,
which we refer to as Class J Preferred Stock, for proceeds of $100.0 million. The proceeds were
contributed by Aimco to us in exchange for 1.0 million Class J Partnership Preferred Units, which
we refer to as Class J Preferred Units. Concurrently, we issued 250,000 Class J Preferred Units
valued at $25.0 million to Aimco, in exchange for 250,000 shares of Class J Preferred Stock. In
June 2000, we converted 250,000 shares of Aimco Class J Preferred Stock, with a liquidation value
of $25.0 million, into 625,000 shares of Aimco Class A Common Stock. In connection with this
conversion, 41,991 shares of Aimco Class A Common Stock, valued at $1.5 million, were exchanged by
us for common OP Units held by a limited partner. In 2001, 198,269 shares of Aimco Class A Common
Stock, valued at $7.1 million, were exchanged by us for
common OP Units held by a limited partner. Our investment in Aimco Class A Common Stock is
presented in the accompanying financial statements as a reduction to partners capital.
62
Registration Statements
We and Aimco have a shelf registration statement that provides for the issuance of debt
securities by us and debt and equity securities by Aimco.
NOTE 12 Share-Based Compensation and Employee Benefit Plans
Stock Award and Incentive Plan
Aimco, from time to time, issues restricted stock and stock options to its employees. We are
required to issue common OP Units to Aimco for the same number of shares of Aimco Class A Common
Stock that are issued to employees under these arrangements. Upon exercise of the stock options,
Aimco must contribute to us the proceeds received in connection with the exercised options.
Therefore, the following disclosures pertain to Aimcos stock options. Our obligations to issue
common OP Units under Aimcos share based compensation plans results in reciprocal accounting
treatment in our financial statements.
Aimcos board of directors adopted the Apartment Investment and Management Company 1997 Stock
Award and Incentive Plan, or the 1997 Plan, to attract and retain officers, key employees and
independent directors. The 1997 Plan reserved for issuance a maximum of 20 million shares, which
may be in the form of incentive stock options, non-qualified stock options and restricted stock, or
other types of awards as authorized under the 1997 Plan. The 1997 Plan expired on April 24, 2007.
On April 30, 2007, the 2007 Stock Award and Incentive Plan, or the 2007 Plan, was approved as
successor to the 1997 Plan. The 2007 Plan reserves for issuance a maximum of 4.1 million shares,
which may be in the form of incentive stock options, non-qualified stock options and restricted
stock, or other types of awards as authorized under the 2007 Plan. Pursuant to the anti-dilution
provisions of the 2007 Plan, the number of shares reserved for issuance has been adjusted to
reflect Aimcos special dividends discussed in Note 11. At December 31, 2009 there were
approximately 1.7 million shares available to be granted under the 2007 Plan. The 2007 Plan is
administered by the Compensation and Human Resources Committee of Aimcos board of directors. In
the case of stock options, the exercise price of the options granted may not be less than the fair
market value of Aimco Class A Common Stock at the date of grant. The term of the options is
generally ten years from the date of grant. The options typically vest over a period of one to
four or five years from the date of grant. Aimco generally issues new shares upon exercise of
options. Restricted stock awards typically vest over a period of three to five years.
Refer to Stock-Based Compensation in Note 2 for discussion of our accounting policy related to
stock-based compensation.
We estimated the fair value of our options using a Black-Scholes closed-form valuation model
using the assumptions set forth in the table below. For options granted in 2009 and 2008, the
expected term of the options was based on historical option exercises and post-vesting
terminations. For options granted in 2007, the expected term of the options reflects the average
of the vesting period and the contractual term for the options, with the exception of a grant of
approximately 0.6 million options to an executive during 2007, for which the expected term used was
equal to the vesting period of five years. Expected volatility reflects the historical volatility
of Aimco Class A Common Stock during the historical period commensurate with the expected term of
the options that ended on the date of grant. The expected dividend yield reflects expectations
regarding cash dividend amounts per share paid on Aimco Class A Common Stock during the expected
term of the option and the risk-free interest rate reflects the annualized yield of a zero coupon
U.S. Treasury security with a term equal to the expected term of the option. The weighted average
fair value of options and our valuation assumptions for the years ended December 31, 2009, 2008 and
2007 were as follows:
2009 | 2008 | 2007 | ||||||||||
Weighted average grant-date fair value |
$ | 2.47 | $ | 4.34 | $ | 6.28 | ||||||
Assumptions: |
||||||||||||
Risk-free interest rate |
2.26 | % | 3.12 | % | 4.70 | % | ||||||
Expected dividend yield |
8.00 | % | 6.02 | % | 4.94 | % | ||||||
Expected volatility |
45.64 | % | 24.02 | % | 21.66 | % | ||||||
Weighted average expected life of options |
6.9 years | 6.5 years | 5.6 years |
63
The following table summarizes activity for Aimcos outstanding stock options for the years
ended December 31, 2009, 2008 and 2007 (numbers of options in thousands):
2009(1) | 2008(1) | 2007(1) | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | |||||||||||||||||||
of | Exercise | of | Exercise | of | Exercise | |||||||||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||||||||
Outstanding at beginning
of year |
10,344 | $ | 31.01 | 8,555 | $ | 39.57 | 8,598 | $ | 39.36 | |||||||||||||||
Granted |
965 | 8.92 | 980 | 39.77 | 955 | 57.25 | ||||||||||||||||||
Exercised |
| | (14 | ) | 37.45 | (1,403 | ) | 38.29 | ||||||||||||||||
Forfeited |
(2,436 | ) | 32.03 | (1,423 | ) | 38.75 | (26 | ) | 37.83 | |||||||||||||||
Adjustment to outstanding
options pursuant to
special dividends |
| N/A | 2,246 | N/A | 431 | N/A | ||||||||||||||||||
Outstanding at end of year |
8,873 | $ | 28.22 | 10,344 | $ | 31.01 | 8,555 | $ | 39.57 | |||||||||||||||
Exercisable at end of year |
6,840 | $ | 29.65 | 7,221 | $ | 29.51 | 6,417 | $ | 37.75 |
(1) | In connection with Aimcos special dividends discussed in Note 11, effective on the record
date of each dividend, the number of options and exercise prices of all outstanding awards
were adjusted pursuant to the anti-dilution provisions of the applicable plans based on the
market price of Aimcos stock on the ex-dividend dates of the related special dividends. The
adjustment to the number of outstanding options is reflected in the table separate from the
other activity during the periods at the weighted average exercise price for those outstanding
options. The exercise prices for options granted and forfeited in the table above reflect the
actual exercise prices at the time of the related activity. The number and weighted average
exercise price for options outstanding and exercisable at the end of the year reflect the
adjustment for the applicable special dividends. The adjustment of the awards pursuant to
Aimcos special dividends is considered a modification of the awards, but did not result in a
change in the fair value of any awards and therefore did not result in a change in total
compensation to be recognized over the remaining term of the awards. |
The intrinsic value of a stock option represents the amount by which the current price of
the underlying stock exceeds the exercise price of the option. Options outstanding at December 31,
2009, had an aggregate intrinsic value of $5.7 million and a weighted average remaining contractual
term of 4.4 years. Options exercisable at December 31, 2008, had no aggregate intrinsic value and
a weighted average remaining contractual term of 5.7 years. No stock options were exercised during
the year ended 2009. The intrinsic value of stock options exercised during the years ended
December 31, 2008 and 2007, was less than $0.1 million and $28.9 million, respectively. We may
realize tax benefits in connection with the exercise of options by employees of Aimcos taxable
subsidiaries. As no stock options were exercised during the year ended December 31, 2009, we
realized no related tax benefits.
The following table summarizes activity for Aimcos restricted stock awards for the years
ended December 31, 2009, 2008 and 2007 (numbers of shares in thousands):
2009 | 2008 | 2007 | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Number | Grant- | Number | Grant- | Number | Grant- | |||||||||||||||||||
of | Date | of | Date | of | Date | |||||||||||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | |||||||||||||||||||
Unvested at beginning of
year |
893 | $ | 40.33 | 960 | $ | 46.08 | 1,088 | $ | 40.11 | |||||||||||||||
Granted |
378 | 8.92 | 248 | 39.85 | 308 | 60.13 | ||||||||||||||||||
Vested |
(418 | ) | 34.42 | (377 | ) | 43.45 | (387 | ) | 40.31 | |||||||||||||||
Forfeited |
(533 | ) | 28.57 | (128 | ) | 46.85 | (49 | ) | 47.43 | |||||||||||||||
Issued pursuant to special
dividends (1) |
138 | 9.58 | 190 | 22.51 | | | ||||||||||||||||||
Unvested at end of year |
458 | $ | 24.23 | 893 | $ | 40.33 | 960 | $ | 46.08 | |||||||||||||||
(1) | This represents shares of restricted stock issued to holders of restricted stock pursuant
to Aimcos special dividends discussed in Note 11. The weighted average grant-date fair value
for these shares represents the price of Aimco Class A Common Stock on
the determination date for each dividend. The issuance of the additional shares of restricted
stock resulted in no incremental compensation expense. |
64
The aggregate fair value of shares that vested during the years ended December 31, 2009,
2008 and 2007 was $3.1 million, $16.5 million and $19.5 million, respectively.
Total compensation cost recognized for restricted stock and stock option awards was $8.0
million, $17.6 million and $19.2 million for the years ended December 31, 2009, 2008 and 2007,
respectively. Of these amounts, $1.3 million, $3.8 million and $4.3 million, respectively, were
capitalized. At December 31, 2009, total unvested compensation cost not yet recognized was $10.1
million. We expect to recognize this compensation over a weighted average period of approximately
1.5 years.
Employee Stock Purchase Plan
Under the terms of Aimcos employee stock purchase plan, eligible employees may authorize
payroll deductions of up to 15% of their base compensation to purchase shares of Aimcos Class A
Common Stock at a five percent discount from its fair value on the last day of the calendar quarter
during which payroll deductions are made. In 2009, 2008 and 2007, 20,076, 8,926 and 3,751 shares
were purchased under this plan at an average price of $8.82, $23.86 and $44.67, respectively. No
compensation cost is recognized in connection with this plan.
401(k) Plan
We provide a 401(k) defined-contribution employee savings plan. Employees who have completed
30 days of service and are age 18 or older are eligible to participate. For the period from
January 1, 2009 through January 29, 2009, and during the years ended December 31, 2008 and 2007,
our matching contributions were made in the following manner: (1) a 100% match on the first 3% of
the participants compensation; and (2) a 50% match on the next 2% of the participants
compensation. On December 31, 2008, we suspended employer matching contributions effective January
29, 2009. We may reinstate employer matching contributions at any time. We incurred costs in
connection with this plan of approximately $0.6 million, $5.2 million and $5.2 million in 2009,
2008 and 2007, respectively.
NOTE 13 Discontinued Operations and Assets Held for Sale
We report as discontinued operations real estate assets that meet the definition of a
component of an entity and have been sold or meet the criteria to be classified as held for sale.
We include all results of these discontinued operations, less applicable income taxes, in a
separate component of income on the consolidated statements of income under the heading income
from discontinued operations, net. This treatment resulted in the retrospective adjustment of
2009, 2008 and 2007 financial statement amounts to reflect as discontinued operations all
properties sold or classified as held for sale as of June 30, 2010.
65
We are currently marketing for sale certain real estate properties that are inconsistent with
our long-term investment strategy. At the end of each reporting period, we evaluate whether such
properties meet the criteria to be classified as held for sale, including whether such properties
are expected to be sold within 12 months. Additionally, certain properties that do not meet all of
the criteria to be classified as held for sale at the balance sheet date may nevertheless be sold
and included in discontinued operations in the subsequent 12 months; thus the number of properties
that may be sold during the subsequent 12 months could exceed the number classified as held for
sale. At December 31, 2009 and 2008, we had 24 and 113 properties, with an aggregate of 3,745 and
26,248 units, classified as held for sale, respectively. Amounts classified as held for sale in
the accompanying consolidated balance sheets are as follows (in thousands):
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
Real estate, net |
$ | 133,887 | $ | 1,163,355 | ||||
Other assets |
2,849 | 15,947 | ||||||
Assets held for sale |
$ | 136,736 | $ | 1,179,302 | ||||
Property debt |
$ | 117,271 | $ | 845,114 | ||||
Other liabilities |
3,964 | 13,642 | ||||||
Liabilities related to assets held for sale |
$ | 121,235 | $ | 858,756 | ||||
During the years ended December 31, 2009, 2008 and 2007, we sold 89, 151 and 73 consolidated
properties with an aggregate 22,503, 37,202 and 11,588 units, respectively. For the years ended
December 31, 2009, 2008 and 2007, discontinued operations includes the results of operations for
the periods prior to the date of sale for all properties sold or classified as held for sale as of
June 30, 2010.
The following is a summary of the components of income from discontinued operations for the
years ended December 31, 2009, 2008 and 2007 (in thousands):
2009 | 2008 | 2007 | ||||||||||
Rental and other property revenues |
$ | 182,934 | $ | 493,232 | $ | 627,717 | ||||||
Property operating expenses |
(93,289 | ) | (244,080 | ) | (310,997 | ) | ||||||
Depreciation and amortization |
(58,319 | ) | (129,108 | ) | (159,064 | ) | ||||||
Provision for operating real estate impairment
losses |
(54,530 | ) | (27,420 | ) | (5,430 | ) | ||||||
Other expenses, net |
(10,340 | ) | (12,854 | ) | (7,664 | ) | ||||||
Operating (loss) income |
(33,544 | ) | 79,770 | 144,562 | ||||||||
Interest income |
342 | 1,982 | 4,109 | |||||||||
Interest expense |
(35,442 | ) | (94,758 | ) | (122,319 | ) | ||||||
Gain on extinguishment of debt |
259 | | 32,701 | |||||||||
(Loss) income before gain on dispositions
of real estate and income taxes |
(68,385 | ) | (13,006 | ) | 59,053 | |||||||
Gain on dispositions of real estate |
221,793 | 800,335 | 117,628 | |||||||||
Income tax benefit (expense) |
557 | (39,794 | ) | (2,104 | ) | |||||||
Income from discontinued operations, net |
$ | 153,965 | $ | 747,535 | $ | 174,577 | ||||||
Income from discontinued operation
attributable to: |
||||||||||||
Noncontrolling interests in consolidated
real estate partnerships |
$ | (62,206 | ) | $ | (148,761 | ) | $ | (71,572 | ) | |||
The Partnership |
$ | 91,759 | $ | 598,774 | $ | 103,005 | ||||||
Gain on dispositions of real estate is reported net of incremental direct costs incurred in
connection with the transaction, including any prepayment penalties incurred upon repayment of
property loans collateralized by the property being sold. Such prepayment penalties totaled $29.0
million, $64.9 million and $12.6 million for the years ended December 31, 2009, 2008 and 2007,
respectively. We classify interest expense related to property debt within discontinued operations
when the related real estate asset is sold or classified as held for sale. As discussed in Note 2,
during the year ended December 31, 2009, we allocated $10.1 million of goodwill related to our real
estate segment to the carrying amounts of the properties sold or classified as held for sale. Of
these amounts, $8.7 million was reflected as a reduction of gain on dispositions of real estate and
$1.4 million was reflected as an adjustment of impairment losses.
66
NOTE 14 Earnings per Unit
We calculate earnings per unit based on the weighted average number of common OP Units,
participating securities, common OP Unit equivalents and dilutive convertible securities
outstanding during the period. We consider both
common OP Units and Class I HPUs, which have identical rights to distributions and
undistributed earnings, to be common units for purposes of the earnings per unit data presented
below. The following table illustrates the calculation of basic and diluted earnings per unit for
the years ended December 31, 2009, 2008 and 2007 (in thousands, except per unit data):
2009 | 2008 | 2007 | ||||||||||
Numerator: |
||||||||||||
Loss from continuing operations |
$ | (197,945 | ) | $ | (119,747 | ) | $ | (48,322 | ) | |||
Loss (income) from continuing operations
attributable to noncontrolling interests |
39,764 | (6,988 | ) | (20,566 | ) | |||||||
Income attributable to the Partnerships preferred
unitholders |
(56,854 | ) | (61,354 | ) | (73,144 | ) | ||||||
Income attributable to participating securities |
| (6,985 | ) | (4,481 | ) | |||||||
Loss from continuing operations attributable to
the Partnerships common unitholders |
$ | (215,035 | ) | $ | (195,074 | ) | $ | (146,513 | ) | |||
Income from discontinued operations |
$ | 153,965 | $ | 747,535 | $ | 174,577 | ||||||
Income from discontinued operations attributable
to noncontrolling interests |
(62,206 | ) | (148,761 | ) | (71,572 | ) | ||||||
Income from discontinued operations
attributable to the Partnerships common
unitholders |
$ | 91,759 | $ | 598,774 | $ | 103,005 | ||||||
Net (loss) income |
$ | (43,980 | ) | $ | 627,788 | $ | 126,255 | |||||
Net income attributable to noncontrolling interests |
(22,442 | ) | (155,749 | ) | (92,138 | ) | ||||||
Income attributable to the Partnerships preferred
unitholders |
(56,854 | ) | (61,354 | ) | (73,144 | ) | ||||||
Income attributable to participating securities |
| (6,985 | ) | (4,481 | ) | |||||||
Net (loss) income attributable to the
Partnerships common unitholders |
$ | (123,276 | ) | $ | 403,700 | $ | (43,508 | ) | ||||
Denominator: |
||||||||||||
Denominator for basic earnings per unit weighted
average number of shares of common units
outstanding |
||||||||||||
Common OP Units |
120,836 | 95,881 | 102,474 | |||||||||
Class I HPUs |
2,344 | 2,368 | 2,379 | |||||||||
Total common units |
123,180 | 98,249 | 104,853 | |||||||||
Effect of dilutive securities: |
||||||||||||
Dilutive potential common units |
| | | |||||||||
Denominator for diluted earnings per unit |
123,180 | 98,249 | 104,853 | |||||||||
Earnings (loss) per common unit basic and
diluted: |
||||||||||||
Loss from continuing operations attributable to
the Partnerships common unitholders |
$ | (1.75 | ) | $ | (1.99 | ) | $ | (1.40 | ) | |||
Income from discontinued operations attributable
to the Partnerships common unitholders |
0.75 | 6.10 | 0.98 | |||||||||
Net (loss) income attributable to the
Partnerships common unitholders |
$ | (1.00 | ) | $ | 4.11 | $ | (0.42 | ) | ||||
As discussed in Note 2, earnings (loss) per common unit for the years ended December 31, 2008
and 2007 have been retroactively adjusted for the effect of our adoption of FSP EITF 03-6-1 and
FASB ASU 2010-01.
As of December 31, 2009, 2008 and 2007, the common unit equivalents that could potentially
dilute basic earnings per unit in future periods totaled 8.9 million, 9.2 million and 8.1 million,
respectively. These securities, representing stock options to purchase shares of Aimco Class A
Common Stock, have been excluded from the earnings per unit computations for the years ended
December 31, 2009, 2008 and 2007, because their effect would have been anti-dilutive.
67
Participating securities, consisting of unvested restricted shares of Aimco stock and shares
of Aimco stock purchased pursuant to officer loans, receive dividends similar to shares of Aimco
Class A Common Stock and common OP Units totaled 0.5 million, 1.0 million and 1.2 million at
December 31, 2009, 2008 and 2007, respectively. The effect of participating securities is
reflected in basic and diluted earnings per unit computations for the periods presented above
using the two-class method of allocating distributed and undistributed earnings. During the
year ended December 31, 2009, the adjustment to compensation expense recognized related to
cumulative dividends on forfeited shares of restricted stock exceeded the amount of dividends
declared related to participating securities. Accordingly, distributed earnings attributed to
participating securities during 2009 were reduced to zero for purposes of calculating earnings per
unit using the two-class method.
As discussed in Note 11, we have various classes of preferred OP Units, which may be redeemed
at the holders option. We may redeem these units for cash or at our option, shares of Aimco Class
A Common Stock. During the periods presented, no common unit equivalents related to these
preferred OP Units have been included in earnings per unit computations because their effect was
antidilutive.
NOTE 15 Unaudited Summarized Consolidated Quarterly Information
Summarized unaudited consolidated quarterly information for 2009 and 2008 is provided below
(in thousands, except per unit amounts).
Quarter (1) | ||||||||||||||||
2009 | First | Second | Third | Fourth | ||||||||||||
Total revenues |
$ | 289,801 | $ | 291,647 | $ | 288,851 | $ | 295,342 | ||||||||
Total operating expenses |
(259,690 | ) | (258,716 | ) | (270,968 | ) | (272,100 | ) | ||||||||
Operating income |
30,111 | 32,931 | 17,883 | 23,242 | ||||||||||||
Loss from continuing operations |
(35,527 | ) | (43,702 | ) | (55,001 | ) | (63,715 | ) | ||||||||
Income from discontinued operations, net |
3,159 | 36,279 | 45,650 | 68,877 | ||||||||||||
Net (loss) income |
(32,368 | ) | (7,423 | ) | (9,351 | ) | 5,162 | |||||||||
Loss attributable to the Partnerships
common unitholders |
(40,320 | ) | (32,336 | ) | (43,510 | ) | (7,110 | ) | ||||||||
Loss per common unit basic and diluted: |
||||||||||||||||
Loss from continuing operations
attributable to the Partnerships common
unitholders |
$ | (0.33 | ) | $ | (0.39 | ) | $ | (0.45 | ) | $ | (0.58 | ) | ||||
Net loss attributable to the
Partnerships common unitholders |
$ | (0.34 | ) | $ | (0.26 | ) | $ | (0.35 | ) | $ | (0.06 | ) | ||||
Weighted average common units outstanding (2) |
119,661 | 124,333 | 124,376 | 124,351 | ||||||||||||
Weighted average common units and common
unit equivalents outstanding (2) |
119,661 | 124,333 | 124,376 | 124,351 |
Quarter (1) | ||||||||||||||||
2008 | First | Second | Third | Fourth | ||||||||||||
Total revenues |
$ | 288,906 | $ | 313,775 | $ | 313,705 | $ | 296,784 | ||||||||
Total operating expenses (3) |
(252,371 | ) | (258,142 | ) | (267,750 | ) | (384,630 | ) | ||||||||
Operating income (loss) (3) |
36,535 | 55,633 | 45,955 | (87,846 | ) | |||||||||||
Loss (income) from continuing operations (3) |
(33,316 | ) | (20,013 | ) | 75,474 | (141,892 | ) | |||||||||
Income from discontinued operations, net |
9,852 | 363,163 | 162,112 | 212,408 | ||||||||||||
Net (loss) income |
(23,464 | ) | 343,150 | 237,586 | 70,516 | |||||||||||
Net (loss) income attributable to the Partnerships
common unitholders |
(42,768 | ) | 265,723 | 174,009 | 4,092 | |||||||||||
Earnings (loss) per common unit basic and diluted: |
||||||||||||||||
(Loss) income from continuing operations
attributable to the Partnerships common
unitholders |
$ | (0.50 | ) | $ | (0.44 | ) | $ | 0.57 | $ | (1.54 | ) | |||||
Net (loss) income attributable to the
Partnerships common unitholders |
$ | (0.43 | ) | $ | 2.73 | $ | 1.82 | $ | 0.04 | |||||||
Weighted average common units outstanding (2) |
99,135 | 97,349 | 95,511 | 101,001 | ||||||||||||
Weighted average common units and common unit
equivalents outstanding (2) |
99,135 | 97,349 | 95,816 | 101,001 |
(1) | Certain reclassifications have been made to 2009 and 2008
quarterly amounts primarily related to treatment of discontinued operations for properties
sold or classified as held for sale through June 30, 2010 and related to newly adopted accounting standards
during 2009 (see Note 2). |
68
(2) | As discussed in Note 2, in December 2009, we adopted the provisions of ASU 2010-01,
which resulted in reductions in the number of weighted average common OP Units and common
OP unit equivalents outstanding, as compared to the amounts previously reported. |
|
(3) | Total operating expenses, operating income (loss) and (loss) income from continuing
operations for the quarter ended December 31, 2008, includes a $91.1 million provision for
impairment losses on real estate development assets, which is discussed further in Note 2. |
NOTE 16 Transactions with Affiliates
We earn revenue from affiliated real estate partnerships. These revenues include fees for
property management services, partnership and asset management services, risk management services
and transactional services such as refinancing, construction supervisory and disposition (including
promote income, which is income earned in connection with the disposition of properties owned by
certain of our consolidated joint ventures). In addition, we are reimbursed for our costs in
connection with the management of the unconsolidated real estate partnerships. These fees and
reimbursements for the years ended December 31, 2009, 2008 and 2007 totaled $18.5 million, $72.5
million and $42.1 million, respectively. The total accounts receivable due from affiliates was
$23.7 million, net of allowance for doubtful accounts of $3.4 million, at December 31, 2009, and
$39.0 million, net of allowance for doubtful accounts of $2.8 million, at December 31, 2008.
Additionally, we earn interest income on notes from real estate partnerships in which we are
the general partner and hold either par value or discounted notes. During the years ended December
31, 2009 and 2008, we did not recognize a significant amount of interest income on par value notes
from unconsolidated real estate partnerships. Interest income earned on par value notes from
unconsolidated real estate partnerships totaled $8.1 million for the year ended December 31, 2007.
Accretion income recognized on discounted notes from affiliated real estate partnerships totaled
$0.1 million, $1.4 million and $8.1 million for the years ended December 31, 2009, 2008 and 2007,
respectively. See Note 5 for additional information on notes receivable from unconsolidated real
estate partnerships.
NOTE 17 Business Segments
Based on a planned reduction in our transactional activities, during the three months ended
March 31, 2010, we reevaluated our reportable segments and determined our investment management
reporting unit no longer meets the requirements for a reportable segment. Additionally, to provide
more meaningful information regarding our real estate operations, we elected to disaggregate
information for the prior real estate segment. Following these changes, we have two reportable
segments: conventional real estate operations and affordable real estate operations. Our
conventional real estate operations consist of market-rate apartments with rents paid by the
resident and included 231 properties with 71,711 units as of December 31, 2009. Our affordable
real estate operations consisted of 244 properties with 28,034 units as of December 31, 2009, with
rents that are generally paid, in whole or part, by a government agency. Based on this change in
reportable segments, we have recast the presentation of our results of operations for the years
ended December 31, 2009, 2008 and 2007, as presented below.
Our chief operating decision maker uses various generally accepted industry financial measures
to assess the performance and financial conditions of the business, including: Net Asset Value,
which is the estimated fair value of our assets, net of debt, or NAV; Funds From Operations, or
FFO; Adjusted FFO, or AFFO, which is FFO less spending for Capital Replacements; same store
property operating results; net operating income; Free Cash Flow which is net operating income less
spending for Capital Replacements; financial coverage ratios; and leverage as shown on our balance
sheet. Our chief operating decision maker emphasizes net operating income as a key measurement of
segment profit or loss. Segment net operating income is generally defined as segment revenues less
direct segment operating expenses.
69
The following tables present the revenues, net operating income (loss) and income (loss) from
continuing operations of our conventional and affordable real estate operations segments for the
years ended December 31, 2009, 2008 and 2007 (in thousands):
Corporate | ||||||||||||||||
Not Allocated | ||||||||||||||||
Conventional | Affordable | to Segments | Total | |||||||||||||
Year Ended December 31, 2009: |
||||||||||||||||
Rental and other property revenues (1) |
$ | 921,833 | $ | 188,873 | $ | 5,082 | $ | 1,115,788 | ||||||||
Asset management and tax credit revenues |
| | 49,853 | 49,853 | ||||||||||||
Total revenues |
921,833 | 188,873 | 54,935 | 1,165,641 | ||||||||||||
Property operating expenses (1) |
369,288 | 93,207 | 58,435 | 520,930 | ||||||||||||
Investment management expenses |
| | 15,779 | 15,779 | ||||||||||||
Depreciation and amortization (1) |
| | 437,249 | 437,249 | ||||||||||||
Provision for operating real estate
impairment losses |
| | 2,329 | 2,329 | ||||||||||||
General and administrative expenses |
| | 56,643 | 56,643 | ||||||||||||
Other expenses, net |
| | 17,303 | 17,303 | ||||||||||||
Restructuring costs |
| | 11,241 | 11,241 | ||||||||||||
Total operating expenses |
369,288 | 93,207 | 598,979 | 1,061,474 | ||||||||||||
Net operating income (loss) |
552,545 | 95,666 | (544,044 | ) | 104,167 | |||||||||||
Other items included in continuing
operations |
| | (302,112 | ) | (302,112 | ) | ||||||||||
Income (loss) from continuing operations |
$ | 552,545 | $ | 95,666 | $ | (846,156 | ) | $ | (197,945 | ) | ||||||
Corporate | ||||||||||||||||
Not Allocated | ||||||||||||||||
Conventional | Affordable | to Segments | Total | |||||||||||||
Year Ended December 31, 2008: |
||||||||||||||||
Rental and other property revenues (1) |
$ | 926,289 | $ | 181,706 | $ | 6,345 | $ | 1,114,340 | ||||||||
Asset management and tax credit revenues |
| | 98,830 | 98,830 | ||||||||||||
Total revenues |
926,289 | 181,706 | 105,175 | 1,213,170 | ||||||||||||
Property operating expenses (1) |
365,716 | 92,700 | 76,331 | 534,747 | ||||||||||||
Investment management expenses |
| | 24,784 | 24,784 | ||||||||||||
Depreciation and amortization (1) |
| | 386,440 | 386,440 | ||||||||||||
Provision for impairment losses on real
estate development assets |
| | 91,138 | 91,138 | ||||||||||||
General and administrative expenses |
| | 80,376 | 80,376 | ||||||||||||
Other expenses, net |
| | 22,606 | 22,606 | ||||||||||||
Restructuring costs |
| | 22,802 | 22,802 | ||||||||||||
Total operating expenses |
365,716 | 92,700 | 704,477 | 1,162,893 | ||||||||||||
Net operating income (loss) |
560,573 | 89,006 | (599,302 | ) | 50,277 | |||||||||||
Other items included in continuing
operations |
| | (170,024 | ) | (170,024 | ) | ||||||||||
Income (loss) from continuing operations |
$ | 560,573 | $ | 89,006 | $ | (769,326 | ) | $ | (119,747 | ) | ||||||
70
Corporate | ||||||||||||||||
Not Allocated | ||||||||||||||||
Conventional | Affordable | to Segments | Total | |||||||||||||
Year Ended December 31, 2007: |
||||||||||||||||
Rental and other property revenues (1) |
$ | 895,117 | $ | 170,127 | $ | 6,923 | $ | 1,072,167 | ||||||||
Asset management and tax credit revenues |
| | 73,755 | 73,755 | ||||||||||||
Total revenues |
895,117 | 170,127 | 80,678 | 1,145,922 | ||||||||||||
Property operating expenses (1) |
359,615 | 83,967 | 70,044 | 513,626 | ||||||||||||
Investment management expenses |
| | 20,507 | 20,507 | ||||||||||||
Depreciation and amortization (1) |
| | 340,874 | 340,874 | ||||||||||||
Provision for operating real estate
impairment losses |
| | 1,080 | 1,080 | ||||||||||||
General and administrative expenses |
| | 72,359 | 72,359 | ||||||||||||
Other expenses, net |
| | 19,224 | 19,224 | ||||||||||||
Total operating expenses |
359,615 | 83,967 | 524,088 | 967,670 | ||||||||||||
Net operating income (loss) |
535,502 | 86,160 | (443,410 | ) | 178,252 | |||||||||||
Other items included in continuing
operations |
| | (226,574 | ) | (226,574 | ) | ||||||||||
Income (loss) from continuing operations |
$ | 535,502 | $ | 86,160 | $ | (669,984 | ) | $ | (48,322 | ) | ||||||
(1) | Our chief operating decision maker assesses the performance of our conventional and
affordable real estate operations using among other measures, net operating income, excluding
property management revenues and certain property management expenses, casualty gains and
losses, depreciation and amortization and provision for operating real estate impairment
losses. Accordingly, we do not allocate these amounts to our segments. |
During the years ended December 31, 2009, 2008 and 2007, for continuing operations, our
rental revenues include $130.3 million, $122.8 million and $112.5 million, respectively, of
subsidies from government agencies, which represented 11.7%, 11.0% and 10.5%, respectively, of our
real estate operations revenues.
The assets of our reportable segments are as follows (in thousands):
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
Conventional |
$ | 6,096,911 | 6,374,141 | |||||
Affordable |
1,133,099 | 1,208,223 | ||||||
Corporate and other assets |
692,129 | 1,874,357 | ||||||
Total consolidated assets |
$ | 7,922,139 | 9,456,721 | |||||
For the years ended December 31, 2009, 2008 and 2007, capital additions related to our
conventional segment totaled $208.0 million, $516.6 million and $595.6 million, respectively, and
capital additions related to our affordable segment totaled $67.4 million, $148.6 million and $94.1
million, respectively.
71
AIMCO PROPERTIES, L.P.
SCHEDULE III: REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2009
(In Thousands Except Unit Data)
SCHEDULE III: REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2009
(In Thousands Except Unit Data)
(2) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
(1) | Initial Cost | Cost Capitalized | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Property | Date | Year | Number | Buildings and | Subsequent to | Buildings and | (5) | Accumulated | Total Cost | |||||||||||||||||||||||||||||||||||||||
Property Name | Type | Consolidated | Location | Built | of Units | Land | Improvements | Consolidation | Land | Improvements | Total | Depreciation (AD) | Net of AD | Encumbrances | ||||||||||||||||||||||||||||||||||
Continuing Operations: |
||||||||||||||||||||||||||||||||||||||||||||||||
Conventional Properties: |
||||||||||||||||||||||||||||||||||||||||||||||||
100 Forest Place |
High Rise | Dec-97 | OakPark, IL | 1987 | 234 | 2,664 | 18,815 | 4,493 | 2,664 | 23,308 | 25,972 | (8,692 | ) | 17,280 | 27,761 | |||||||||||||||||||||||||||||||||
1582 First Avenue |
High Rise | Mar-05 | New York, NY | 1900 | 17 | 4,250 | 752 | 224 | 4,281 | 945 | 5,226 | (249 | ) | 4,977 | 2,671 | |||||||||||||||||||||||||||||||||
173 E. 90th Street |
High Rise | May-04 | New York, NY | 1910 | 72 | 11,773 | 4,535 | 1,445 | 12,067 | 5,686 | 17,753 | (1,365 | ) | 16,388 | 8,772 | |||||||||||||||||||||||||||||||||
182-188 Columbus Avenue |
Mid Rise | Feb-07 | New York, NY | 1910 | 32 | 17,187 | 3,300 | 3,690 | 19,123 | 5,054 | 24,177 | (992 | ) | 23,185 | 13,471 | |||||||||||||||||||||||||||||||||
204-206 West 133rd Street |
Mid Rise | Jun-07 | New York, NY | 1910 | 44 | 3,291 | 1,450 | 1,921 | 4,352 | 2,310 | 6,662 | (303 | ) | 6,359 | 3,132 | |||||||||||||||||||||||||||||||||
2232-2240 Seventh Avenue |
Mid Rise | Jun-07 | New York, NY | 1910 | 24 | 2,863 | 3,785 | 1,477 | 3,366 | 4,759 | 8,125 | (517 | ) | 7,608 | 2,972 | |||||||||||||||||||||||||||||||||
2247-2253 Seventh Avenue |
Mid Rise | Jun-07 | New York, NY | 1910 | 35 | 6,787 | 3,335 | 1,464 | 7,356 | 4,230 | 11,586 | (586 | ) | 11,000 | 5,483 | |||||||||||||||||||||||||||||||||
2252-2258 Seventh Avenue |
Mid Rise | Jun-07 | New York, NY | 1910 | 35 | 3,623 | 4,504 | 1,814 | 4,318 | 5,623 | 9,941 | (772 | ) | 9,169 | 5,125 | |||||||||||||||||||||||||||||||||
2300-2310 Seventh Avenue |
Mid Rise | Jun-07 | New York, NY | 1910 | 63 | 8,623 | 6,964 | 5,260 | 10,417 | 10,430 | 20,847 | (1,441 | ) | 19,406 | 9,896 | |||||||||||||||||||||||||||||||||
236-238 East 88th Street |
High Rise | Jan-04 | New York, NY | 1900 | 43 | 8,751 | 2,914 | 1,295 | 8,820 | 4,140 | 12,960 | (1,155 | ) | 11,805 | 6,879 | |||||||||||||||||||||||||||||||||
237-239 Ninth Avenue |
High Rise | Mar-05 | New York, NY | 1900 | 36 | 8,430 | 1,866 | 770 | 8,494 | 2,572 | 11,066 | (614 | ) | 10,452 | 5,227 | |||||||||||||||||||||||||||||||||
240 West 73rd Street, LLC |
High Rise | Sep-04 | New York, NY | 1900 | 200 | 68,006 | 12,140 | 3,563 | 68,109 | 15,600 | 83,709 | (2,827 | ) | 80,882 | 30,286 | |||||||||||||||||||||||||||||||||
2484 Seventh Avenue |
Mid Rise | Jun-07 | New York, NY | 1921 | 23 | 2,384 | 1,726 | 468 | 2,601 | 1,977 | 4,578 | (243 | ) | 4,335 | 2,472 | |||||||||||||||||||||||||||||||||
2900 on First Apartments |
Mid Rise | Oct-08 | Seattle, WA | 1989 | 135 | 19,015 | 17,518 | 330 | 19,071 | 17,792 | 36,863 | (860 | ) | 36,003 | 20,719 | |||||||||||||||||||||||||||||||||
306 East 89th Street |
High Rise | Jul-04 | New York, NY | 1930 | 20 | 2,659 | 1,006 | 167 | 2,681 | 1,151 | 3,832 | (350 | ) | 3,482 | 1,908 | |||||||||||||||||||||||||||||||||
311 & 313 East 73rd Street |
Mid Rise | Mar-03 | New York, NY | 1904 | 34 | 5,635 | 1,609 | 546 | 5,678 | 2,112 | 7,790 | (940 | ) | 6,850 | 2,761 | |||||||||||||||||||||||||||||||||
322-324 East 61st Street |
High Rise | Mar-05 | New York, NY | 1900 | 40 | 6,319 | 2,224 | 681 | 6,372 | 2,852 | 9,224 | (707 | ) | 8,517 | 3,691 | |||||||||||||||||||||||||||||||||
3400 Avenue of the Arts |
Mid Rise | Mar-02 | Costa Mesa, CA | 1987 | 770 | 55,223 | 65,506 | 73,301 | 57,240 | 136,790 | 194,030 | (31,750 | ) | 162,280 | 119,869 | |||||||||||||||||||||||||||||||||
452 East 78th Street |
High Rise | Jan-04 | New York, NY | 1900 | 12 | 1,966 | 608 | 278 | 1,982 | 870 | 2,852 | (242 | ) | 2,610 | 1,600 | |||||||||||||||||||||||||||||||||
464-466 Amsterdam & 200-210 W.
83rd Street |
Mid Rise | Feb-07 | New York, NY | 1910 | 72 | 23,677 | 7,101 | 3,881 | 25,552 | 9,107 | 34,659 | (1,241 | ) | 33,418 | 19,679 | |||||||||||||||||||||||||||||||||
510 East 88th Street |
High Rise | Jan-04 | New York, NY | 1900 | 20 | 3,137 | 1,002 | 278 | 3,163 | 1,254 | 4,417 | (307 | ) | 4,110 | 2,634 | |||||||||||||||||||||||||||||||||
514-516 East 88th Street |
High Rise | Mar-05 | New York, NY | 1900 | 36 | 6,230 | 2,168 | 556 | 6,282 | 2,672 | 8,954 | (618 | ) | 8,336 | 4,607 | |||||||||||||||||||||||||||||||||
656 St. Nicholas Avenue |
Mid Rise | Jun-07 | New York, NY | 1920 | 31 | 2,731 | 1,636 | 2,774 | 3,576 | 3,565 | 7,141 | (467 | ) | 6,674 | 2,374 | |||||||||||||||||||||||||||||||||
759 St. Nicholas Avenue |
Mid Rise | Oct-07 | New York, NY | 1920 | 9 | 682 | 535 | 587 | 1,013 | 791 | 1,804 | (84 | ) | 1,720 | 545 | |||||||||||||||||||||||||||||||||
865 Bellevue |
Garden | Jul-00 | Nashville, TN | 1972 | 326 | 3,558 | 12,037 | 27,055 | 3,558 | 39,092 | 42,650 | (11,840 | ) | 30,810 | 19,184 | |||||||||||||||||||||||||||||||||
Arbors (Grovetree), The |
Garden | Oct-97 | Tempe, AZ | 1967 | 200 | 1,092 | 6,208 | 2,940 | 1,092 | 9,148 | 10,240 | (4,038 | ) | 6,202 | 6,743 | |||||||||||||||||||||||||||||||||
Arbours Of Hermitage, The |
Garden | Jul-00 | Hermitage, TN | 1972 | 350 | 3,217 | 12,023 | 6,795 | 3,217 | 18,818 | 22,035 | (8,527 | ) | 13,508 | 10,258 | |||||||||||||||||||||||||||||||||
Auburn Glen |
Garden | Dec-06 | Jacksonville, FL | 1974 | 251 | 7,483 | 8,191 | 3,202 | 7,670 | 11,206 | 18,876 | (2,098 | ) | 16,778 | 9,912 | |||||||||||||||||||||||||||||||||
BaLaye |
Garden | Apr-06 | Tampa, FL | 2002 | 324 | 10,329 | 28,800 | 969 | 10,608 | 29,490 | 40,098 | (4,187 | ) | 35,911 | 23,012 | |||||||||||||||||||||||||||||||||
Bank Lofts |
High Rise | Apr-01 | Denver, CO | 1920 | 117 | 3,525 | 9,045 | 1,668 | 3,525 | 10,713 | 14,238 | (4,668 | ) | 9,570 | 7,242 | |||||||||||||||||||||||||||||||||
Bay Parc Plaza |
High Rise | Sep-04 | Miami, FL | 2000 | 471 | 22,680 | 41,847 | 4,097 | 22,680 | 45,944 | 68,624 | (6,612 | ) | 62,012 | 46,294 | |||||||||||||||||||||||||||||||||
Bay Ridge at Nashua |
Garden | Jan-03 | Nashua, NH | 1984 | 412 | 3,352 | 40,713 | 6,895 | 3,262 | 47,698 | 50,960 | (10,541 | ) | 40,419 | 40,766 | |||||||||||||||||||||||||||||||||
Bayberry Hill Estates |
Garden | Aug-02 | Framingham, MA | 1971 | 424 | 18,915 | 35,945 | 8,744 | 18,916 | 44,688 | 63,604 | (14,036 | ) | 49,568 | 35,250 | |||||||||||||||||||||||||||||||||
Bayhead Village |
Garden | Oct-00 | Indianapolis, IN | 1978 | 202 | 1,411 | 5,139 | 3,482 | 1,411 | 8,621 | 10,032 | (3,400 | ) | 6,632 | 2,728 | |||||||||||||||||||||||||||||||||
Boston Lofts |
High Rise | Apr-01 | Denver, CO | 1890 | 158 | 3,447 | 20,589 | 3,188 | 3,447 | 23,777 | 27,224 | (9,855 | ) | 17,369 | 14,559 | |||||||||||||||||||||||||||||||||
Boulder Creek |
Garden | Jul-94 | Boulder, CO | 1972 | 221 | 755 | 7,730 | 17,156 | 755 | 24,886 | 25,641 | (11,913 | ) | 13,728 | 12,031 | |||||||||||||||||||||||||||||||||
Brandywine |
Garden | Jul-94 | St. Petersburg, FL | 1971 | 477 | 1,437 | 12,725 | 8,763 | 1,437 | 21,488 | 22,925 | (13,782 | ) | 9,143 | 21,124 | |||||||||||||||||||||||||||||||||
Breakers, The |
Garden | Oct-98 | Daytona Beach, FL | 1985 | 208 | 1,008 | 5,507 | 3,257 | 1,008 | 8,764 | 9,772 | (3,856 | ) | 5,916 | 6,378 | |||||||||||||||||||||||||||||||||
Broadcast Center |
Garden | Mar-02 | Los Angeles, CA | 1990 | 279 | 27,603 | 41,244 | 29,066 | 29,407 | 68,506 | 97,913 | (15,963 | ) | 81,950 | 55,875 | |||||||||||||||||||||||||||||||||
Buena Vista |
Mid Rise | Jan-06 | Pasadena, CA | 1973 | 92 | 9,693 | 6,818 | 1,126 | 9,693 | 7,944 | 17,637 | (768 | ) | 16,869 | 10,607 | |||||||||||||||||||||||||||||||||
Burke Shire Commons |
Garden | Mar-01 | Burke, VA | 1986 | 360 | 4,867 | 23,617 | 3,860 | 4,867 | 27,477 | 32,344 | (10,304 | ) | 22,040 | 46,100 | |||||||||||||||||||||||||||||||||
Calhoun Beach Club |
High Rise | Dec-98 | Minneapolis, MN | 1928 | 332 | 11,708 | 73,334 | 45,743 | 11,708 | 119,077 | 130,785 | (40,408 | ) | 90,377 | 49,119 | |||||||||||||||||||||||||||||||||
Canterbury Green |
Garden | Dec-99 | Fort Wayne, IN | 1979 | 1,988 | 13,659 | 73,115 | 25,704 | 13,659 | 98,819 | 112,478 | (45,994 | ) | 66,484 | 53,200 | |||||||||||||||||||||||||||||||||
Canyon Terrace |
Garden | Mar-02 | Saugus, CA | 1984 | 130 | 7,300 | 6,602 | 5,909 | 7,508 | 12,303 | 19,811 | (3,593 | ) | 16,218 | 11,750 | |||||||||||||||||||||||||||||||||
Carriage Hill |
Garden | Jul-00 | East Lansing, MI | 1972 | 143 | 1,957 | 7,912 | 2,053 | 1,957 | 9,965 | 11,922 | (5,434 | ) | 6,488 | 5,360 | |||||||||||||||||||||||||||||||||
Casa del Mar at Baymeadows |
Garden | Oct-06 | Jacksonville, FL | 1984 | 144 | 4,902 | 10,562 | 1,403 | 5,039 | 11,828 | 16,867 | (1,752 | ) | 15,115 | 9,434 | |||||||||||||||||||||||||||||||||
Cedar Rim |
Garden | Apr-00 | Newcastle, WA | 1980 | 104 | 761 | 5,218 | 17,174 | 761 | 22,392 | 23,153 | (9,405 | ) | 13,748 | 7,857 | |||||||||||||||||||||||||||||||||
Center Square |
High Rise | Oct-99 | Doylestown, PA | 1975 | 350 | 582 | 4,190 | 3,532 | 582 | 7,722 | 8,304 | (3,104 | ) | 5,200 | 15,159 | |||||||||||||||||||||||||||||||||
Charleston Landing |
Garden | Sep-00 | Brandon, FL | 1985 | 300 | 7,488 | 8,656 | 7,711 | 7,488 | 16,367 | 23,855 | (5,745 | ) | 18,110 | 13,101 | |||||||||||||||||||||||||||||||||
Chesapeake Landing I |
Garden | Sep-00 | Aurora, IL | 1986 | 416 | 15,800 | 16,875 | 4,931 | 15,800 | 21,806 | 37,606 | (7,748 | ) | 29,858 | 24,630 | |||||||||||||||||||||||||||||||||
Chesapeake Landing II |
Garden | Mar-01 | Aurora, IL | 1987 | 184 | 1,969 | 7,980 | 3,308 | 1,969 | 11,288 | 13,257 | (4,730 | ) | 8,527 | 10,241 | |||||||||||||||||||||||||||||||||
Chestnut Hall |
High Rise | Oct-06 | Philadelphia, PA | 1923 | 315 | 12,047 | 14,299 | 4,653 | 12,338 | 18,661 | 30,999 | (3,996 | ) | 27,003 | 18,690 | |||||||||||||||||||||||||||||||||
Chestnut Hill |
Garden | Apr-00 | Philadelphia, PA | 1963 | 821 | 6,463 | 49,315 | 48,996 | 6,463 | 98,311 | 104,774 | (36,814 | ) | 67,960 | 51,444 | |||||||||||||||||||||||||||||||||
Chimneys of Cradle Rock |
Garden | Jun-04 | Columbia, MD | 1979 | 198 | 2,234 | 8,107 | 578 | 2,040 | 8,879 | 10,919 | (2,284 | ) | 8,635 | 16,737 | |||||||||||||||||||||||||||||||||
Colonnade Gardens |
Garden | Oct-97 | Phoenix, AZ | 1973 | 196 | 766 | 4,346 | 2,912 | 766 | 7,258 | 8,024 | (3,615 | ) | 4,409 | 1,625 | |||||||||||||||||||||||||||||||||
Colony at Kenilworth |
Garden | Oct-99 | Towson, MD | 1966 | 383 | 2,403 | 18,798 | 10,801 | 2,403 | 29,599 | 32,002 | (14,784 | ) | 17,218 | 24,443 | |||||||||||||||||||||||||||||||||
Columbus Avenue |
Mid Rise | Sep-03 | New York, NY | 1880 | 59 | 35,472 | 9,450 | 3,599 | 35,527 | 12,994 | 48,521 | (4,970 | ) | 43,551 | 25,826 | |||||||||||||||||||||||||||||||||
Country Lakes I |
Garden | Apr-01 | Naperville, IL | 1982 | 240 | 8,512 | 10,832 | 3,300 | 8,512 | 14,132 | 22,644 | (5,213 | ) | 17,431 | 14,557 | |||||||||||||||||||||||||||||||||
Country Lakes II |
Garden | May-97 | Naperville, IL | 1986 | 400 | 5,165 | 29,430 | 5,921 | 5,165 | 35,351 | 40,516 | (14,200 | ) | 26,316 | 24,893 |
72
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(1) | Initial Cost | Cost Capitalized | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Property | Date | Year | Number | Buildings and | Subsequent to | Buildings and | (5) | Accumulated | Total Cost | |||||||||||||||||||||||||||||||||||||||
Property Name | Type | Consolidated | Location | Built | of Units | Land | Improvements | Consolidation | Land | Improvements | Total | Depreciation (AD) | Net of AD | Encumbrances | ||||||||||||||||||||||||||||||||||
Creekside |
Garden | Jan-00 | Denver, CO | 1974 | 328 | 2,953 | 12,697 | 5,028 | 3,189 | 17,489 | 20,678 | (7,788 | ) | 12,890 | 14,359 | |||||||||||||||||||||||||||||||||
Creekside |
Garden | Mar-02 | Simi Valley, CA | 1985 | 397 | 24,595 | 18,818 | 6,775 | 25,245 | 24,943 | 50,188 | (8,109 | ) | 42,079 | 40,670 | |||||||||||||||||||||||||||||||||
Crescent at West Hollywood, The |
Mid Rise | Mar-02 | West Hollywood, CA | 1982 | 130 | 15,382 | 10,215 | 14,817 | 15,765 | 24,649 | 40,414 | (9,223 | ) | 31,191 | 24,195 | |||||||||||||||||||||||||||||||||
Defoors Crossing |
Garden | Jan-06 | Atlanta, GA | 1987 | 60 | 348 | 957 | 392 | 348 | 1,349 | 1,697 | (1,213 | ) | 484 | | |||||||||||||||||||||||||||||||||
Douglaston Villas and Townhomes |
Garden | Aug-99 | Altamonte Springs, FL | 1979 | 234 | 1,666 | 9,353 | 7,460 | 1,666 | 16,813 | 18,479 | (6,381 | ) | 12,098 | 10,512 | |||||||||||||||||||||||||||||||||
Elm Creek |
Mid Rise | Dec-97 | Elmhurst, IL | 1986 | 372 | 5,534 | 30,830 | 17,422 | 5,635 | 48,151 | 53,786 | (18,347 | ) | 35,439 | 35,154 | |||||||||||||||||||||||||||||||||
Evanston Place |
High Rise | Dec-97 | Evanston, IL | 1988 | 189 | 3,232 | 25,546 | 4,398 | 3,232 | 29,944 | 33,176 | (10,325 | ) | 22,851 | 21,645 | |||||||||||||||||||||||||||||||||
Fairlane East |
Garden | Jan-01 | Dearborn, MI | 1973 | 244 | 6,550 | 11,711 | 5,136 | 6,550 | 16,847 | 23,397 | (8,610 | ) | 14,787 | 10,200 | |||||||||||||||||||||||||||||||||
Farmingdale |
Mid Rise | Oct-00 | Darien, IL | 1975 | 240 | 11,763 | 15,174 | 9,177 | 11,763 | 24,351 | 36,114 | (9,406 | ) | 26,708 | 17,732 | |||||||||||||||||||||||||||||||||
Ferntree |
Garden | Mar-01 | Phoenix, AZ | 1968 | 219 | 2,078 | 13,752 | 3,195 | 2,079 | 16,946 | 19,025 | (6,327 | ) | 12,698 | 7,058 | |||||||||||||||||||||||||||||||||
Fishermans Village |
Garden | Jan-06 | Indianapolis, IN | 1982 | 328 | 2,156 | 9,936 | 2,685 | 2,156 | 12,621 | 14,777 | (7,059 | ) | 7,718 | 6,350 | |||||||||||||||||||||||||||||||||
Fishermans Wharf |
Garden | Nov-96 | Clute, TX | 1981 | 360 | 1,257 | 7,584 | 5,428 | 1,257 | 13,012 | 14,269 | (5,704 | ) | 8,565 | 6,930 | |||||||||||||||||||||||||||||||||
Flamingo Towers |
High Rise | Sep-97 | Miami Beach, FL | 1960 | 1,127 | 32,191 | 38,399 | 217,720 | 32,239 | 256,071 | 288,310 | (91,197 | ) | 197,113 | 118,890 | |||||||||||||||||||||||||||||||||
Forestlake Apartments |
Garden | Mar-07 | Daytona Beach, FL | 1982 | 120 | 3,691 | 4,320 | 496 | 3,860 | 4,647 | 8,507 | (623 | ) | 7,884 | 4,735 | |||||||||||||||||||||||||||||||||
Four Quarters Habitat |
Garden | Jan-06 | Miami, FL | 1976 | 336 | 2,383 | 17,199 | 14,503 | 2,379 | 31,706 | 34,085 | (11,365 | ) | 22,720 | 11,698 | |||||||||||||||||||||||||||||||||
Foxchase |
Garden | Dec-97 | Alexandria, VA | 1947 | 2,113 | 15,419 | 96,062 | 31,800 | 15,496 | 127,785 | 143,281 | (55,566 | ) | 87,715 | 184,131 | |||||||||||||||||||||||||||||||||
Georgetown |
Garden | Aug-02 | Framingham, MA | 1964 | 207 | 12,351 | 13,168 | 2,091 | 12,351 | 15,259 | 27,610 | (4,535 | ) | 23,075 | 12,775 | |||||||||||||||||||||||||||||||||
Glen at Forestlake, The |
Garden | Mar-07 | Daytona Beach, FL | 1982 | 26 | 897 | 862 | 182 | 933 | 1,008 | 1,941 | (125 | ) | 1,816 | 1,039 | |||||||||||||||||||||||||||||||||
Glenbridge Manors |
Garden | Sep-03 | Cincinnati, OH | 1978 | 274 | 1,030 | 17,447 | 14,108 | 1,031 | 31,554 | 32,585 | (7,012 | ) | 25,573 | 16,820 | |||||||||||||||||||||||||||||||||
Granada |
Mid Rise | Aug-02 | Framingham, MA | 1958 | 72 | 4,577 | 4,058 | 854 | 4,577 | 4,912 | 9,489 | (2,043 | ) | 7,446 | 4,275 | |||||||||||||||||||||||||||||||||
Grand Pointe |
Garden | Dec-99 | Columbia, MD | 1974 | 325 | 2,715 | 16,771 | 5,264 | 2,715 | 22,035 | 24,750 | (8,144 | ) | 16,606 | 16,987 | |||||||||||||||||||||||||||||||||
Greens |
Garden | Jul-94 | Chandler, AZ | 2000 | 324 | 2,303 | 713 | 27,244 | 2,303 | 27,957 | 30,260 | (12,346 | ) | 17,914 | 12,855 | |||||||||||||||||||||||||||||||||
Greenspoint at Paradise Valley |
Garden | Jan-00 | Phoenix, AZ | 1985 | 336 | 3,042 | 13,223 | 12,350 | 3,042 | 25,573 | 28,615 | (11,541 | ) | 17,074 | 16,287 | |||||||||||||||||||||||||||||||||
Hampden Heights |
Garden | Jan-00 | Denver, CO | 1973 | 376 | 3,224 | 12,905 | 5,893 | 3,453 | 18,569 | 22,022 | (8,681 | ) | 13,341 | 13,830 | |||||||||||||||||||||||||||||||||
Harbour, The |
Garden | Mar-01 | Melbourne, FL | 1987 | 162 | 4,108 | 3,563 | 5,774 | 4,108 | 9,337 | 13,445 | (3,026 | ) | 10,419 | | |||||||||||||||||||||||||||||||||
Heritage Park at Alta Loma |
Garden | Jan-01 | Alta Loma, CA | 1986 | 232 | 1,200 | 6,428 | 3,456 | 1,200 | 9,884 | 11,084 | (3,560 | ) | 7,524 | 7,264 | |||||||||||||||||||||||||||||||||
Heritage Park Escondido |
Garden | Oct-00 | Escondido, CA | 1986 | 196 | 1,055 | 7,565 | 1,325 | 1,055 | 8,890 | 9,945 | (4,118 | ) | 5,827 | 7,299 | |||||||||||||||||||||||||||||||||
Heritage Park Livermore |
Garden | Oct-00 | Livermore, CA | 1988 | 167 | 1,039 | 9,170 | 1,343 | 1,039 | 10,513 | 11,552 | (4,639 | ) | 6,913 | 7,432 | |||||||||||||||||||||||||||||||||
Heritage Park Montclair |
Garden | Mar-01 | Montclair, CA | 1985 | 144 | 690 | 4,149 | 1,206 | 690 | 5,355 | 6,045 | (1,873 | ) | 4,172 | 4,620 | |||||||||||||||||||||||||||||||||
Heritage Village Anaheim |
Garden | Oct-00 | Anaheim, CA | 1986 | 196 | 1,832 | 8,541 | 1,609 | 1,832 | 10,150 | 11,982 | (4,777 | ) | 7,205 | 8,858 | |||||||||||||||||||||||||||||||||
Hidden Cove |
Garden | Jul-98 | Escondido, CA | 1985 | 334 | 3,043 | 17,615 | 6,980 | 3,043 | 24,595 | 27,638 | (10,158 | ) | 17,480 | 31,006 | |||||||||||||||||||||||||||||||||
Hidden Cove II |
Garden | Jul-07 | Escondido, CA | 1986 | 118 | 12,730 | 6,530 | 5,473 | 12,849 | 11,884 | 24,733 | (1,806 | ) | 22,927 | 11,586 | |||||||||||||||||||||||||||||||||
Hidden Harbour |
Garden | Oct-02 | Melbourne, FL | 1985 | 216 | 1,444 | 7,590 | 4,798 | 1,444 | 12,388 | 13,832 | (3,471 | ) | 10,361 | | |||||||||||||||||||||||||||||||||
Highcrest Townhomes |
Town Home | Jan-03 | Woodridge, IL | 1968 | 176 | 3,045 | 13,452 | 1,368 | 3,045 | 14,820 | 17,865 | (6,091 | ) | 11,774 | 10,876 | |||||||||||||||||||||||||||||||||
Hillcreste |
Garden | Mar-02 | Century City, CA | 1989 | 315 | 33,755 | 47,216 | 25,906 | 35,862 | 71,015 | 106,877 | (21,022 | ) | 85,855 | 57,610 | |||||||||||||||||||||||||||||||||
Hillmeade |
Garden | Nov-94 | Nashville, TN | 1985 | 288 | 2,872 | 16,069 | 13,564 | 2,872 | 29,633 | 32,505 | (16,923 | ) | 15,582 | 18,376 | |||||||||||||||||||||||||||||||||
Horizons West Apartments |
Mid Rise | Dec-06 | Pacifica, CA | 1970 | 78 | 8,763 | 6,376 | 1,610 | 8,887 | 7,862 | 16,749 | (1,059 | ) | 15,690 | 5,377 | |||||||||||||||||||||||||||||||||
Hunt Club |
Garden | Sep-00 | Gaithersburg, MD | 1986 | 336 | 17,859 | 13,149 | 3,598 | 17,859 | 16,747 | 34,606 | (6,372 | ) | 28,234 | 32,160 | |||||||||||||||||||||||||||||||||
Hunt Club |
Garden | Mar-01 | Austin, TX | 1987 | 384 | 10,342 | 11,920 | 8,537 | 10,342 | 20,457 | 30,799 | (9,758 | ) | 21,041 | 16,499 | |||||||||||||||||||||||||||||||||
Hunters Chase |
Garden | Jan-01 | Midlothian, VA | 1985 | 320 | 7,935 | 7,915 | 3,259 | 7,935 | 11,174 | 19,109 | (3,398 | ) | 15,711 | 16,407 | |||||||||||||||||||||||||||||||||
Hunters Crossing |
Garden | Apr-01 | Leesburg, VA | 1967 | 164 | 2,244 | 7,763 | 4,079 | 2,244 | 11,842 | 14,086 | (6,371 | ) | 7,715 | 6,940 | |||||||||||||||||||||||||||||||||
Hunters Glen IV |
Garden | Oct-99 | Plainsboro, NJ | 1976 | 264 | 2,709 | 14,420 | 4,819 | 2,709 | 19,239 | 21,948 | (9,525 | ) | 12,423 | 20,191 | |||||||||||||||||||||||||||||||||
Hunters Glen V |
Garden | Oct-99 | Plainsboro, NJ | 1977 | 304 | 3,283 | 17,337 | 5,211 | 3,283 | 22,548 | 25,831 | (11,087 | ) | 14,744 | 24,194 | |||||||||||||||||||||||||||||||||
Hunters Glen VI |
Garden | Oct-99 | Plainsboro, NJ | 1977 | 328 | 2,787 | 15,501 | 6,075 | 2,787 | 21,576 | 24,363 | (11,389 | ) | 12,974 | 25,182 | |||||||||||||||||||||||||||||||||
Hyde Park Tower |
High Rise | Oct-04 | Chicago, IL | 1990 | 155 | 4,683 | 14,928 | 1,931 | 4,731 | 16,811 | 21,542 | (2,913 | ) | 18,629 | 13,781 | |||||||||||||||||||||||||||||||||
Independence Green |
Garden | Jan-06 | Farmington Hills, MI | 1960 | 981 | 10,293 | 24,586 | 20,189 | 10,156 | 44,912 | 55,068 | (13,065 | ) | 42,003 | 27,758 | |||||||||||||||||||||||||||||||||
Indian Oaks |
Garden | Mar-02 | Simi Valley, CA | 1986 | 254 | 23,927 | 15,801 | 3,489 | 24,523 | 18,694 | 43,217 | (5,884 | ) | 37,333 | 33,171 | |||||||||||||||||||||||||||||||||
Island Club |
Garden | Oct-00 | Oceanside, CA | 1986 | 592 | 18,027 | 28,654 | 11,220 | 18,027 | 39,874 | 57,901 | (15,731 | ) | 42,170 | 64,973 | |||||||||||||||||||||||||||||||||
Island Club (Beville) |
Garden | Oct-00 | Daytona Beach, FL | 1986 | 204 | 6,086 | 8,571 | 2,135 | 6,087 | 10,705 | 16,792 | (4,444 | ) | 12,348 | 8,440 | |||||||||||||||||||||||||||||||||
Key Towers |
High Rise | Apr-01 | Alexandria, VA | 1964 | 140 | 1,526 | 7,050 | 3,849 | 1,526 | 10,899 | 12,425 | (4,859 | ) | 7,566 | 10,868 | |||||||||||||||||||||||||||||||||
Lakeside |
Garden | Oct-99 | Lisle, IL | 1972 | 568 | 5,840 | 27,937 | 28,127 | 5,840 | 56,064 | 61,904 | (22,153 | ) | 39,751 | 29,375 | |||||||||||||||||||||||||||||||||
Lakeside at Vinings Mountain |
Garden | Jan-00 | Atlanta, GA | 1983 | 220 | 2,109 | 11,863 | 15,149 | 2,109 | 27,012 | 29,121 | (10,884 | ) | 18,237 | 9,666 | |||||||||||||||||||||||||||||||||
Lakeside Place |
Garden | Oct-99 | Houston, TX | 1976 | 734 | 6,160 | 34,151 | 15,942 | 6,160 | 50,093 | 56,253 | (21,654 | ) | 34,599 | 26,955 | |||||||||||||||||||||||||||||||||
Lamplighter Park |
Garden | Apr-00 | Bellevue, WA | 1967 | 174 | 2,225 | 9,272 | 4,150 | 2,225 | 13,422 | 15,647 | (6,442 | ) | 9,205 | 10,576 | |||||||||||||||||||||||||||||||||
Latrobe |
High Rise | Jan-03 | Washington, DC | 1980 | 175 | 3,459 | 9,103 | 15,543 | 3,459 | 24,646 | 28,105 | (10,353 | ) | 17,752 | 22,192 | |||||||||||||||||||||||||||||||||
Lazy Hollow |
Garden | Apr-05 | Columbia, MD | 1979 | 178 | 2,424 | 12,181 | 956 | 2,424 | 13,137 | 15,561 | (5,520 | ) | 10,041 | 7,867 | |||||||||||||||||||||||||||||||||
Leahy Square |
Garden | Apr-07 | Redwood City, CA | 1973 | 110 | 15,352 | 7,909 | 1,755 | 15,444 | 9,572 | 25,016 | (1,631 | ) | 23,385 | 15,185 | |||||||||||||||||||||||||||||||||
Lewis Park |
Garden | Jan-06 | Carbondale, IL | 1972 | 269 | 1,407 | 12,193 | 3,183 | 1,404 | 15,379 | 16,783 | (8,520 | ) | 8,263 | 3,981 | |||||||||||||||||||||||||||||||||
Lincoln Place Garden |
Garden | Oct-04 | Venice, CA | 1951 | 692 | 43,979 | 10,439 | 86,174 | 42,894 | 97,698 | 140,592 | (1,691 | ) | 138,901 | 65,000 | |||||||||||||||||||||||||||||||||
Lodge at Chattahoochee, The |
Garden | Oct-99 | Sandy Springs, GA | 1970 | 312 | 2,320 | 16,370 | 21,615 | 2,320 | 37,985 | 40,305 | (15,095 | ) | 25,210 | 11,087 | |||||||||||||||||||||||||||||||||
Los Arboles |
Garden | Sep-97 | Chandler, AZ | 1985 | 232 | 1,662 | 9,504 | 3,197 | 1,662 | 12,701 | 14,363 | (5,741 | ) | 8,622 | 8,086 | |||||||||||||||||||||||||||||||||
Malibu Canyon |
Garden | Mar-02 | Calabasas, CA | 1986 | 698 | 66,257 | 53,438 | 34,982 | 69,834 | 84,843 | 154,677 | (30,295 | ) | 124,382 | 97,604 | |||||||||||||||||||||||||||||||||
Maple Bay |
Garden | Dec-99 | Virginia Beach, VA | 1971 | 414 | 2,598 | 16,141 | 29,935 | 2,598 | 46,076 | 48,674 | (15,809 | ) | 32,865 | 33,548 | |||||||||||||||||||||||||||||||||
Mariners Cove |
Garden | Mar-02 | San Diego, CA | 1984 | 500 | | 66,861 | 7,271 | | 74,132 | 74,132 | (18,728 | ) | 55,404 | 5,813 | |||||||||||||||||||||||||||||||||
Meadow Creek |
Garden | Jul-94 | Boulder, CO | 1972 | 332 | 1,435 | 24,532 | 6,358 | 1,435 | 30,890 | 32,325 | (13,197 | ) | 19,128 | 24,071 | |||||||||||||||||||||||||||||||||
Merrill House |
High Rise | Jan-00 | Falls Church, VA | 1962 | 159 | 1,836 | 10,831 | 5,863 | 1,836 | 16,694 | 18,530 | (4,452 | ) | 14,078 | 15,600 | |||||||||||||||||||||||||||||||||
Mesa Royale |
Garden | Jul-94 | Mesa, AZ | 1985 | 152 | 832 | 4,569 | 9,585 | 832 | 14,154 | 14,986 | (5,290 | ) | 9,696 | |
73
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(1) | Initial Cost | Cost Capitalized | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Property | Date | Year | Number | Buildings and | Subsequent to | Buildings and | (5) | Accumulated | Total Cost | |||||||||||||||||||||||||||||||||||||||
Property Name | Type | Consolidated | Location | Built | of Units | Land | Improvements | Consolidation | Land | Improvements | Total | Depreciation (AD) | Net of AD | Encumbrances | ||||||||||||||||||||||||||||||||||
Montecito |
Garden | Jul-94 | Austin, TX | 1985 | 268 | 1,268 | 6,896 | 4,958 | 1,267 | 11,855 | 13,122 | (6,165 | ) | 6,957 | 996 | |||||||||||||||||||||||||||||||||
Monterey Grove |
Garden | Jun-08 | San Jose, CA | 1999 | 224 | 34,175 | 21,939 | 2,072 | 34,325 | 23,861 | 58,186 | (1,806 | ) | 56,380 | 35,000 | |||||||||||||||||||||||||||||||||
Oak Park Village |
Garden | Oct-00 | Lansing, MI | 1973 | 618 | 10,048 | 16,771 | 7,340 | 10,048 | 24,111 | 34,159 | (12,777 | ) | 21,382 | 23,487 | |||||||||||||||||||||||||||||||||
Ocean Oaks |
Garden | May-98 | Port Orange, FL | 1988 | 296 | 2,132 | 12,855 | 3,242 | 2,132 | 16,097 | 18,229 | (6,492 | ) | 11,737 | 10,295 | |||||||||||||||||||||||||||||||||
One Lytle Place |
High Rise | Jan-00 | Cincinnati, OH | 1980 | 231 | 2,662 | 21,800 | 12,551 | 2,662 | 34,351 | 37,013 | (12,139 | ) | 24,874 | 15,450 | |||||||||||||||||||||||||||||||||
Pacific Bay Vistas |
Garden | Mar-01 | San Bruno, CA | 1987 | 308 | 3,703 | 62,460 | 22,184 | 22,994 | 65,353 | 88,347 | (55,442 | ) | 32,905 | | |||||||||||||||||||||||||||||||||
Pacifica Park |
Garden | Jul-06 | Pacifica, CA | 1977 | 104 | 12,770 | 6,579 | 3,183 | 12,970 | 9,562 | 22,532 | (2,205 | ) | 20,327 | 11,260 | |||||||||||||||||||||||||||||||||
Palazzo at Park La Brea, The |
Mid Rise | Feb-04 | Los Angeles, CA | 2002 | 521 | 47,822 | 125,464 | 8,804 | 48,362 | 133,728 | 182,090 | (30,135 | ) | 151,955 | 125,554 | |||||||||||||||||||||||||||||||||
Palazzo East at Park La Brea, The |
Mid Rise | Mar-05 | Los Angeles, CA | 2005 | 611 | 61,004 | 136,503 | 22,142 | 72,578 | 147,071 | 219,649 | (26,968 | ) | 192,681 | 150,000 | |||||||||||||||||||||||||||||||||
Paradise Palms |
Garden | Jul-94 | Phoenix, AZ | 1985 | 129 | 647 | 3,515 | 6,959 | 647 | 10,474 | 11,121 | (5,539 | ) | 5,582 | 6,400 | |||||||||||||||||||||||||||||||||
Park at Cedar Lawn, The |
Garden | Nov-96 | Galveston, TX | 1985 | 192 | 1,025 | 2,521 | 3,585 | 1,025 | 6,106 | 7,131 | (2,539 | ) | 4,592 | | |||||||||||||||||||||||||||||||||
Park Towne Place |
High Rise | Apr-00 | Philadelphia, PA | 1959 | 959 | 10,451 | 47,301 | 54,589 | 10,451 | 101,890 | 112,341 | (23,850 | ) | 88,491 | 86,343 | |||||||||||||||||||||||||||||||||
Parktown Townhouses |
Garden | Oct-99 | Deer Park, TX | 1968 | 309 | 2,570 | 12,052 | 9,410 | 2,570 | 21,462 | 24,032 | (8,186 | ) | 15,846 | 5,618 | |||||||||||||||||||||||||||||||||
Parkway |
Garden | Mar-00 | Willamsburg, VA | 1971 | 148 | 386 | 2,834 | 2,754 | 386 | 5,588 | 5,974 | (3,284 | ) | 2,690 | 9,273 | |||||||||||||||||||||||||||||||||
Pathfinder Village |
Garden | Jan-06 | Fremont, CA | 1973 | 246 | 19,595 | 14,838 | 8,147 | 19,595 | 22,985 | 42,580 | (3,163 | ) | 39,417 | 19,348 | |||||||||||||||||||||||||||||||||
Peachtree Park |
Garden | Jan-96 | Atlanta, GA | 1962 | 303 | 4,683 | 11,713 | 9,900 | 4,683 | 21,613 | 26,296 | (9,890 | ) | 16,406 | 9,543 | |||||||||||||||||||||||||||||||||
Peak at Vinings Mountain, The |
Garden | Jan-00 | Atlanta, GA | 1980 | 280 | 2,651 | 13,660 | 17,606 | 2,651 | 31,266 | 33,917 | (12,410 | ) | 21,507 | 10,412 | |||||||||||||||||||||||||||||||||
Peakview Place |
Garden | Jan-00 | Englewood, CO | 1975 | 296 | 3,440 | 18,734 | 4,547 | 3,440 | 23,281 | 26,721 | (15,330 | ) | 11,391 | 12,711 | |||||||||||||||||||||||||||||||||
Pebble Point |
Garden | Oct-02 | Indianapolis, IN | 1980 | 220 | 1,790 | 6,883 | 2,612 | 1,790 | 9,495 | 11,285 | (4,526 | ) | 6,759 | 5,430 | |||||||||||||||||||||||||||||||||
Peppertree |
Garden | Mar-02 | Cypress, CA | 1971 | 136 | 7,835 | 5,224 | 2,778 | 8,030 | 7,807 | 15,837 | (2,743 | ) | 13,094 | 15,750 | |||||||||||||||||||||||||||||||||
Pine Lake Terrace |
Garden | Mar-02 | Garden Grove, CA | 1971 | 111 | 3,975 | 6,035 | 2,094 | 4,125 | 7,979 | 12,104 | (2,531 | ) | 9,573 | 12,000 | |||||||||||||||||||||||||||||||||
Pine Shadows |
Garden | May-98 | Tempe, AZ | 1983 | 272 | 2,095 | 11,899 | 3,725 | 2,095 | 15,624 | 17,719 | (7,375 | ) | 10,344 | 7,500 | |||||||||||||||||||||||||||||||||
Pines, The |
Garden | Oct-98 | Palm Bay, FL | 1984 | 216 | 603 | 3,318 | 2,716 | 603 | 6,034 | 6,637 | (2,415 | ) | 4,222 | 1,937 | |||||||||||||||||||||||||||||||||
Plantation Gardens |
Garden | Oct-99 | Plantation, FL | 1971 | 372 | 3,773 | 19,443 | 6,204 | 3,773 | 25,647 | 29,420 | (10,871 | ) | 18,549 | 24,141 | |||||||||||||||||||||||||||||||||
Post Ridge |
Garden | Jul-00 | Nashville, TN | 1972 | 150 | 1,883 | 6,712 | 3,517 | 1,883 | 10,229 | 12,112 | (4,456 | ) | 7,656 | 6,042 | |||||||||||||||||||||||||||||||||
Ramblewood |
Garden | Dec-99 | Wyoming, MI | 1973 | 1,708 | 8,607 | 61,082 | 1,930 | 8,661 | 62,958 | 71,619 | (12,161 | ) | 59,458 | 34,944 | |||||||||||||||||||||||||||||||||
Ravensworth Towers |
High Rise | Jun-04 | Annandale, VA | 1974 | 219 | 3,455 | 17,157 | 2,272 | 3,455 | 19,429 | 22,884 | (9,501 | ) | 13,383 | 20,685 | |||||||||||||||||||||||||||||||||
Reflections |
Garden | Sep-00 | Virginia Beach, VA | 1987 | 480 | 15,988 | 13,684 | 5,255 | 15,988 | 18,939 | 34,927 | (7,638 | ) | 27,289 | 39,451 | |||||||||||||||||||||||||||||||||
Reflections |
Garden | Oct-00 | West Palm Beach, FL | 1986 | 300 | 5,504 | 9,984 | 4,113 | 5,504 | 14,097 | 19,601 | (5,272 | ) | 14,329 | 9,190 | |||||||||||||||||||||||||||||||||
Reflections |
Garden | Oct-02 | Casselberry, FL | 1984 | 336 | 3,906 | 10,491 | 4,233 | 3,906 | 14,724 | 18,630 | (4,662 | ) | 13,968 | 10,700 | |||||||||||||||||||||||||||||||||
Regency Oaks |
Garden | Oct-99 | Fern Park, FL | 1965 | 343 | 1,832 | 9,905 | 8,398 | 1,832 | 18,303 | 20,135 | (10,017 | ) | 10,118 | 11,134 | |||||||||||||||||||||||||||||||||
Remington at Ponte Vedra Lakes |
Garden | Dec-06 | Ponte Vedra Beach, FL | 1986 | 344 | 18,576 | 18,650 | 2,242 | 18,795 | 20,673 | 39,468 | (3,586 | ) | 35,882 | 24,695 | |||||||||||||||||||||||||||||||||
River Club |
Garden | Apr-05 | Edgewater, NJ | 1998 | 266 | 30,578 | 30,638 | 1,910 | 30,579 | 32,547 | 63,126 | (6,208 | ) | 56,918 | 39,373 | |||||||||||||||||||||||||||||||||
River Reach |
Garden | Sep-00 | Naples, FL | 1986 | 556 | 17,728 | 18,337 | 6,365 | 17,728 | 24,702 | 42,430 | (10,002 | ) | 32,428 | 23,452 | |||||||||||||||||||||||||||||||||
Riverbend Village |
Garden | Jul-01 | Arlington, TX | 1983 | 201 | 893 | 4,128 | 4,963 | 893 | 9,091 | 9,984 | (3,967 | ) | 6,017 | | |||||||||||||||||||||||||||||||||
Riverloft |
High Rise | Oct-99 | Philadelphia, PA | 1910 | 184 | 2,120 | 11,287 | 31,118 | 2,120 | 42,405 | 44,525 | (15,462 | ) | 29,063 | 19,951 | |||||||||||||||||||||||||||||||||
Riverside |
High Rise | Apr-00 | Alexandria, VA | 1973 | 1,222 | 10,433 | 65,474 | 76,986 | 10,433 | 142,460 | 152,893 | (59,333 | ) | 93,560 | 96,289 | |||||||||||||||||||||||||||||||||
Rosewood |
Garden | Mar-02 | Camarillo, CA | 1976 | 152 | 12,128 | 8,060 | 2,407 | 12,430 | 10,165 | 22,595 | (3,320 | ) | 19,275 | 17,900 | |||||||||||||||||||||||||||||||||
Royal Crest Estates |
Garden | Aug-02 | Fall River, MA | 1974 | 216 | 5,832 | 12,044 | 1,953 | 5,832 | 13,997 | 19,829 | (5,694 | ) | 14,135 | 12,161 | |||||||||||||||||||||||||||||||||
Royal Crest Estates |
Garden | Aug-02 | Warwick, RI | 1972 | 492 | 22,433 | 24,095 | 5,296 | 22,433 | 29,391 | 51,824 | (12,162 | ) | 39,662 | 37,890 | |||||||||||||||||||||||||||||||||
Royal Crest Estates |
Garden | Aug-02 | Marlborough, MA | 1970 | 473 | 25,178 | 28,786 | 3,835 | 25,178 | 32,621 | 57,799 | (13,594 | ) | 44,205 | 35,400 | |||||||||||||||||||||||||||||||||
Royal Crest Estates |
Garden | Aug-02 | North Andover, MA | 1970 | 588 | 51,292 | 36,808 | 9,632 | 51,292 | 46,440 | 97,732 | (18,797 | ) | 78,935 | 60,305 | |||||||||||||||||||||||||||||||||
Royal Crest Estates |
Garden | Aug-02 | Nashua, NH | 1970 | 902 | 68,231 | 45,562 | 11,187 | 68,231 | 56,749 | 124,980 | (25,003 | ) | 99,977 | 50,667 | |||||||||||||||||||||||||||||||||
Runaway Bay |
Garden | Oct-00 | Lantana, FL | 1987 | 404 | 5,934 | 16,052 | 7,643 | 5,934 | 23,695 | 29,629 | (7,842 | ) | 21,787 | 21,644 | |||||||||||||||||||||||||||||||||
Runaway Bay |
Garden | Jul-02 | Pinellas Park, FL | 1986 | 192 | 1,884 | 7,045 | 1,831 | 1,884 | 8,876 | 10,760 | (2,402 | ) | 8,358 | 9,004 | |||||||||||||||||||||||||||||||||
Sandpiper Cove |
Garden | Dec-97 | Boynton Beach, FL | 1987 | 416 | 3,511 | 21,396 | 7,141 | 3,511 | 28,537 | 32,048 | (11,039 | ) | 21,009 | 29,425 | |||||||||||||||||||||||||||||||||
Savannah Trace |
Garden | Mar-01 | Shaumburg, IL | 1986 | 368 | 13,960 | 20,731 | 4,001 | 13,960 | 24,732 | 38,692 | (8,502 | ) | 30,190 | 22,282 | |||||||||||||||||||||||||||||||||
Scandia |
Garden | Oct-00 | Indianapolis, IN | 1977 | 444 | 10,540 | 9,852 | 12,780 | 10,539 | 22,633 | 33,172 | (11,260 | ) | 21,912 | 19,163 | |||||||||||||||||||||||||||||||||
Scotchollow |
Garden | Jan-06 | San Mateo, CA | 1971 | 418 | 49,474 | 17,756 | 7,733 | 49,473 | 25,490 | 74,963 | (3,128 | ) | 71,835 | 49,605 | |||||||||||||||||||||||||||||||||
Scottsdale Gateway I |
Garden | Oct-97 | Tempe, AZ | 1965 | 124 | 591 | 3,359 | 8,017 | 591 | 11,376 | 11,967 | (4,075 | ) | 7,892 | 5,800 | |||||||||||||||||||||||||||||||||
Scottsdale Gateway II |
Garden | Oct-97 | Tempe, AZ | 1976 | 487 | 2,458 | 13,927 | 23,353 | 2,458 | 37,280 | 39,738 | (15,204 | ) | 24,534 | 5,087 | |||||||||||||||||||||||||||||||||
Shadow Creek |
Garden | May-98 | Mesa, AZ | 1984 | 266 | 2,016 | 11,886 | 3,790 | 2,016 | 15,676 | 17,692 | (7,685 | ) | 10,007 | | |||||||||||||||||||||||||||||||||
Shenandoah Crossing |
Garden | Sep-00 | Fairfax, VA | 1984 | 640 | 18,492 | 57,197 | 7,499 | 18,492 | 64,696 | 83,188 | (27,715 | ) | 55,473 | 69,724 | |||||||||||||||||||||||||||||||||
Signal Pointe |
Garden | Oct-99 | Winter Park, FL | 1971 | 368 | 2,382 | 11,359 | 21,447 | 2,382 | 32,806 | 35,188 | (10,480 | ) | 24,708 | 18,596 | |||||||||||||||||||||||||||||||||
Signature Point |
Garden | Nov-96 | League City, TX | 1994 | 304 | 2,810 | 17,579 | 2,810 | 2,810 | 20,389 | 23,199 | (6,784 | ) | 16,415 | 10,823 | |||||||||||||||||||||||||||||||||
Springwoods at Lake Ridge |
Garden | Jul-02 | Woodbridge, VA | 1984 | 180 | 5,587 | 7,284 | 1,278 | 5,587 | 8,562 | 14,149 | (1,944 | ) | 12,205 | 14,502 | |||||||||||||||||||||||||||||||||
Spyglass at Cedar Cove |
Garden | Sep-00 | Lexington Park, MD | 1985 | 152 | 3,241 | 5,094 | 2,479 | 3,241 | 7,573 | 10,814 | (3,237 | ) | 7,577 | 10,300 | |||||||||||||||||||||||||||||||||
Stafford |
High Rise | Oct-02 | Baltimore, MD | 1889 | 96 | 706 | 4,032 | 3,131 | 562 | 7,307 | 7,869 | (3,524 | ) | 4,345 | 4,315 | |||||||||||||||||||||||||||||||||
Steeplechase |
Garden | Sep-00 | Largo, MD | 1986 | 240 | 3,675 | 16,111 | 3,301 | 3,675 | 19,412 | 23,087 | (7,106 | ) | 15,981 | 23,600 | |||||||||||||||||||||||||||||||||
Steeplechase |
Garden | Jul-02 | Plano, TX | 1985 | 368 | 7,056 | 10,510 | 6,974 | 7,056 | 17,484 | 24,540 | (5,158 | ) | 19,382 | 13,987 | |||||||||||||||||||||||||||||||||
Sterling Apartment Homes, The |
Garden | Oct-99 | Philadelphia, PA | 1962 | 535 | 8,871 | 55,364 | 17,358 | 8,871 | 72,722 | 81,593 | (30,782 | ) | 50,811 | 77,915 | |||||||||||||||||||||||||||||||||
Stone Creek Club |
Garden | Sep-00 | Germantown, MD | 1984 | 240 | 13,593 | 9,347 | 2,948 | 13,593 | 12,295 | 25,888 | (6,743 | ) | 19,145 | 24,900 | |||||||||||||||||||||||||||||||||
Sun Lake |
Garden | May-98 | Lake Mary, FL | 1986 | 600 | 4,551 | 25,543 | 30,903 | 4,551 | 56,446 | 60,997 | (20,010 | ) | 40,987 | 35,727 | |||||||||||||||||||||||||||||||||
Sun River Village |
Garden | Oct-99 | Tempe, AZ | 1981 | 334 | 2,367 | 13,303 | 3,888 | 2,367 | 17,191 | 19,558 | (8,524 | ) | 11,034 | 10,569 | |||||||||||||||||||||||||||||||||
Talbot Woods |
Garden | Sep-04 | Middleboro, MA | 1972 | 121 | 5,852 | 4,719 | 2,026 | 5,852 | 6,745 | 12,597 | (2,150 | ) | 10,447 | 6,203 | |||||||||||||||||||||||||||||||||
Tamarac Village |
Garden | Apr-00 | Denver, CO | 1979 | 564 | 3,928 | 23,491 | 8,089 | 4,223 | 31,285 | 35,508 | (16,205 | ) | 19,303 | 18,389 | |||||||||||||||||||||||||||||||||
Tamarind Bay |
Garden | Jan-00 | St. Petersburg, FL | 1980 | 200 | 1,091 | 6,310 | 4,987 | 1,091 | 11,297 | 12,388 | (5,368 | ) | 7,020 | 6,925 |
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Property | Date | Year | Number | Buildings and | Subsequent to | Buildings and | (5) | Accumulated | Total Cost | |||||||||||||||||||||||||||||||||||||||
Property Name | Type | Consolidated | Location | Built | of Units | Land | Improvements | Consolidation | Land | Improvements | Total | Depreciation (AD) | Net of AD | Encumbrances | ||||||||||||||||||||||||||||||||||
Tatum Gardens |
Garden | May-98 | Phoenix, AZ | 1985 | 128 | 1,323 | 7,155 | 1,928 | 1,323 | 9,083 | 10,406 | (4,706 | ) | 5,700 | 7,403 | |||||||||||||||||||||||||||||||||
The Bluffs at Pacifica |
Garden | Oct-06 | Pacifica, CA | 1963 | 64 | 7,975 | 4,131 | 7,635 | 8,108 | 11,633 | 19,741 | (1,067 | ) | 18,674 | 6,428 | |||||||||||||||||||||||||||||||||
Timbertree |
Garden | Oct-97 | Phoenix, AZ | 1979 | 387 | 2,292 | 13,000 | 6,209 | 2,292 | 19,209 | 21,501 | (9,830 | ) | 11,671 | 4,510 | |||||||||||||||||||||||||||||||||
Towers Of Westchester Park, The |
High Rise | Jan-06 | College Park, MD | 1972 | 303 | 15,198 | 22,029 | 4,504 | 15,198 | 26,533 | 41,731 | (3,946 | ) | 37,785 | 27,667 | |||||||||||||||||||||||||||||||||
Township At Highlands |
Town Home | Nov-96 | Centennial, CO | 1985 | 161 | 1,615 | 9,773 | 6,118 | 1,536 | 15,970 | 17,506 | (6,955 | ) | 10,551 | 16,640 | |||||||||||||||||||||||||||||||||
Twin Lake Towers |
High Rise | Oct-99 | Westmont, IL | 1969 | 399 | 3,268 | 18,763 | 23,625 | 3,268 | 42,388 | 45,656 | (15,984 | ) | 29,672 | 9,255 | |||||||||||||||||||||||||||||||||
Twin Lakes |
Garden | Apr-00 | Palm Harbor, FL | 1986 | 262 | 2,062 | 12,850 | 4,584 | 2,062 | 17,434 | 19,496 | (7,652 | ) | 11,844 | 10,604 | |||||||||||||||||||||||||||||||||
Vantage Pointe |
Mid Rise | Aug-02 | Swampscott, MA | 1987 | 96 | 4,749 | 10,089 | 1,351 | 4,749 | 11,440 | 16,189 | (3,498 | ) | 12,691 | 7,385 | |||||||||||||||||||||||||||||||||
Verandahs at Hunt Club |
Garden | Jul-02 | Apopka, FL | 1985 | 210 | 2,271 | 7,724 | 2,974 | 2,271 | 10,698 | 12,969 | (2,641 | ) | 10,328 | 11,070 | |||||||||||||||||||||||||||||||||
Views at Vinings Mountain, The |
Garden | Jan-06 | Atlanta, GA | 1983 | 180 | 610 | 5,026 | 12,209 | 610 | 17,235 | 17,845 | (7,559 | ) | 10,286 | 13,757 | |||||||||||||||||||||||||||||||||
Villa Del Sol |
Garden | Mar-02 | Norwalk, CA | 1972 | 120 | 7,294 | 4,861 | 2,512 | 7,476 | 7,191 | 14,667 | (2,670 | ) | 11,997 | 13,500 | |||||||||||||||||||||||||||||||||
Village Crossing |
Garden | May-98 | West Palm Beach, FL | 1986 | 189 | 1,618 | 8,188 | 2,941 | 1,618 | 11,129 | 12,747 | (5,497 | ) | 7,250 | 7,000 | |||||||||||||||||||||||||||||||||
Village Green |
Garden | Oct-02 | Altamonte Springs, FL | 1970 | 164 | 608 | 6,618 | 2,514 | 608 | 9,132 | 9,740 | (4,386 | ) | 5,354 | 6,510 | |||||||||||||||||||||||||||||||||
Village in the Woods |
Garden | Jan-00 | Cypress, TX | 1983 | 530 | 3,457 | 15,787 | 10,230 | 3,457 | 26,017 | 29,474 | (12,765 | ) | 16,709 | 19,451 | |||||||||||||||||||||||||||||||||
Village of Pennbrook |
Garden | Oct-98 | Levittown, PA | 1969 | 722 | 10,229 | 38,222 | 13,539 | 10,229 | 51,761 | 61,990 | (21,542 | ) | 40,448 | 48,419 | |||||||||||||||||||||||||||||||||
Villages of Baymeadows |
Garden | Oct-99 | Jacksonville, FL | 1972 | 904 | 4,859 | 33,957 | 53,735 | 4,859 | 87,692 | 92,551 | (40,263 | ) | 52,288 | 38,050 | |||||||||||||||||||||||||||||||||
Villas at Park La Brea, The |
Garden | Mar-02 | Los Angeles, CA | 2002 | 250 | 8,621 | 48,871 | 3,603 | 8,630 | 52,465 | 61,095 | (12,802 | ) | 48,293 | 30,564 | |||||||||||||||||||||||||||||||||
Vista Del Lagos |
Garden | Dec-97 | Chandler, AZ | 1986 | 200 | 804 | 4,952 | 3,442 | 804 | 8,394 | 9,198 | (3,431 | ) | 5,767 | 11,783 | |||||||||||||||||||||||||||||||||
Waterford Village |
Garden | Aug-02 | Bridgewater, MA | 1971 | 588 | 28,585 | 28,102 | 5,591 | 29,110 | 33,168 | 62,278 | (15,640 | ) | 46,638 | 40,542 | |||||||||||||||||||||||||||||||||
Waterways Village |
Garden | Jun-97 | Aventura, FL | 1991 | 180 | 4,504 | 11,064 | 3,683 | 4,504 | 14,747 | 19,251 | (6,456 | ) | 12,795 | 7,145 | |||||||||||||||||||||||||||||||||
Waverly Apartments |
Garden | Aug-08 | Brighton, MA | 1970 | 103 | 7,696 | 11,347 | 1,188 | 7,920 | 12,311 | 20,231 | (723 | ) | 19,508 | 12,000 | |||||||||||||||||||||||||||||||||
West Winds |
Garden | Oct-02 | Orlando, FL | 1985 | 272 | 2,324 | 11,481 | 3,030 | 2,324 | 14,511 | 16,835 | (4,829 | ) | 12,006 | 12,776 | |||||||||||||||||||||||||||||||||
Westway Village |
Garden | May-98 | Houston, TX | 1979 | 326 | 2,921 | 11,384 | 3,172 | 2,921 | 14,556 | 17,477 | (6,586 | ) | 10,891 | 7,677 | |||||||||||||||||||||||||||||||||
Wexford Village |
Garden | Aug-02 | Worcester, MA | 1974 | 264 | 6,339 | 17,939 | 2,082 | 6,339 | 20,021 | 26,360 | (7,250 | ) | 19,110 | 13,924 | |||||||||||||||||||||||||||||||||
Willow Bend |
Garden | May-98 | Rolling Meadows, IL | 1985 | 328 | 2,717 | 15,437 | 26,391 | 2,717 | 41,828 | 44,545 | (13,960 | ) | 30,585 | 19,876 | |||||||||||||||||||||||||||||||||
Willow Park on Lake Adelaide |
Garden | Oct-99 | Altamonte Springs, FL | 1972 | 185 | 1,225 | 7,357 | 3,266 | 1,224 | 10,624 | 11,848 | (5,611 | ) | 6,237 | 6,804 | |||||||||||||||||||||||||||||||||
Windrift |
Garden | Mar-01 | Oceanside, CA | 1987 | 404 | 24,960 | 17,590 | 18,667 | 24,960 | 36,257 | 61,217 | (15,443 | ) | 45,774 | 28,999 | |||||||||||||||||||||||||||||||||
Windrift |
Garden | Oct-00 | Orlando, FL | 1987 | 288 | 3,696 | 10,029 | 5,495 | 3,696 | 15,524 | 19,220 | (5,710 | ) | 13,510 | 17,094 | |||||||||||||||||||||||||||||||||
Windsor Crossing |
Garden | Mar-00 | Newport News, VA | 1978 | 156 | 307 | 2,110 | 1,992 | 131 | 4,278 | 4,409 | (2,102 | ) | 2,307 | 2,153 | |||||||||||||||||||||||||||||||||
Windsor Park |
Garden | Mar-01 | Woodbridge, VA | 1987 | 220 | 4,279 | 15,970 | 2,172 | 4,279 | 18,142 | 22,421 | (6,430 | ) | 15,991 | 13,444 | |||||||||||||||||||||||||||||||||
Woodcreek |
Garden | Oct-02 | Mesa, AZ | 1985 | 432 | 2,426 | 15,886 | 4,487 | 2,426 | 20,373 | 22,799 | (10,400 | ) | 12,399 | 19,449 | |||||||||||||||||||||||||||||||||
Woods of Burnsville |
Garden | Nov-04 | Burnsville, MN | 1984 | 400 | 3,954 | 18,125 | 2,694 | 3,954 | 20,819 | 24,773 | (7,429 | ) | 17,344 | 16,580 | |||||||||||||||||||||||||||||||||
Woods of Inverness |
Garden | Oct-99 | Houston, TX | 1983 | 272 | 2,146 | 10,978 | 3,860 | 2,146 | 14,838 | 16,984 | (7,194 | ) | 9,790 | 5,878 | |||||||||||||||||||||||||||||||||
Woods Of Williamsburg |
Garden | Jan-06 | Williamsburg, VA | 1976 | 125 | 798 | 3,657 | 873 | 798 | 4,530 | 5,328 | (3,309 | ) | 2,019 | 1,189 | |||||||||||||||||||||||||||||||||
Yacht Club at Brickell |
High Rise | Dec-03 | Miami, FL | 1998 | 357 | 31,363 | 32,214 | 4,297 | 31,363 | 36,511 | 67,874 | (5,900 | ) | 61,974 | 37,804 | |||||||||||||||||||||||||||||||||
Yorktown Apartments |
High Rise | Dec-99 | Lombard, IL | 1973 | 364 | 2,971 | 18,163 | 16,098 | 3,055 | 34,177 | 37,232 | (10,538 | ) | 26,694 | 22,626 | |||||||||||||||||||||||||||||||||
Total Conventional Properties: |
70,412 | 1,982,309 | 3,869,248 | 2,178,572 | 2,038,750 | 5,991,379 | 8,030,129 | (2,133,130 | ) | 5,896,999 | 4,750,383 | |||||||||||||||||||||||||||||||||||||
Affordable Properties: |
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All Hallows |
Garden | Jan-06 | San Francisco, CA | 1976 | 157 | 1,348 | 29,770 | 20,124 | 1,338 | 49,904 | 51,242 | (15,590 | ) | 35,652 | 21,219 | |||||||||||||||||||||||||||||||||
Alliance Towers |
High Rise | Mar-02 | Alliance, OH | 1971 | 101 | 530 | 1,934 | 756 | 530 | 2,690 | 3,220 | (745 | ) | 2,475 | 2,234 | |||||||||||||||||||||||||||||||||
Arvada House |
High Rise | Nov-04 | Arvada, CO | 1977 | 88 | 641 | 3,314 | 1,746 | 405 | 5,296 | 5,701 | (1,304 | ) | 4,397 | 4,152 | |||||||||||||||||||||||||||||||||
Ashland Manor |
High Rise | Mar-02 | Toledo, OH | 1977 | 189 | 205 | 455 | 363 | 205 | 818 | 1,023 | (667 | ) | 356 | 561 | |||||||||||||||||||||||||||||||||
Bannock Arms |
Garden | Mar-02 | Boise, ID | 1978 | 66 | 275 | 1,139 | 571 | 275 | 1,710 | 1,985 | (575 | ) | 1,410 | 1,406 | |||||||||||||||||||||||||||||||||
Bayview |
Garden | Jun-05 | San Francisco, CA | 1976 | 146 | 1,023 | 15,265 | 16,548 | 582 | 32,254 | 32,836 | (9,118 | ) | 23,718 | 12,520 | |||||||||||||||||||||||||||||||||
Beacon Hill |
High Rise | Mar-02 | Hillsdale, MI | 1980 | 198 | 1,380 | 7,044 | 6,599 | 1,093 | 13,930 | 15,023 | (3,236 | ) | 11,787 | 4,616 | |||||||||||||||||||||||||||||||||
Bedford House |
Mid Rise | Mar-02 | Falmouth, KY | 1979 | 48 | 230 | 919 | 310 | 230 | 1,229 | 1,459 | (434 | ) | 1,025 | 1,084 | |||||||||||||||||||||||||||||||||
Benjamin Banneker Plaza |
Mid Rise | Jan-06 | Chester, PA | 1976 | 70 | 79 | 3,862 | 670 | 79 | 4,532 | 4,611 | (2,890 | ) | 1,721 | 1,538 | |||||||||||||||||||||||||||||||||
Berger Apartments |
Mid Rise | Mar-02 | New Haven, CT | 1981 | 144 | 1,152 | 4,657 | 2,229 | 1,152 | 6,886 | 8,038 | (2,080 | ) | 5,958 | 1,061 | |||||||||||||||||||||||||||||||||
Biltmore Towers |
High Rise | Mar-02 | Dayton, OH | 1980 | 230 | 1,813 | 6,411 | 13,073 | 1,813 | 19,484 | 21,297 | (8,817 | ) | 12,480 | 10,648 | |||||||||||||||||||||||||||||||||
Blakewood |
Garden | Oct-05 | Statesboro, GA | 1973 | 42 | 316 | 882 | 373 | 316 | 1,255 | 1,571 | (1,085 | ) | 486 | 698 | |||||||||||||||||||||||||||||||||
Bolton North |
High Rise | Jan-06 | Baltimore, MD | 1977 | 209 | 1,450 | 6,569 | 649 | 1,429 | 7,239 | 8,668 | (2,347 | ) | 6,321 | 2,438 | |||||||||||||||||||||||||||||||||
Burchwood |
Garden | Oct-07 | Berea, KY | 1999 | 24 | 253 | 1,173 | 551 | 253 | 1,724 | 1,977 | (958 | ) | 1,019 | 981 | |||||||||||||||||||||||||||||||||
Butternut Creek |
Mid Rise | Jan-06 | Charlotte, MI | 1980 | 100 | 505 | 3,617 | 3,957 | 505 | 7,574 | 8,079 | (2,239 | ) | 5,840 | | |||||||||||||||||||||||||||||||||
Cache Creek Apartment Homes |
Mid Rise | Jun-04 | Clearlake, CA | 1986 | 80 | 1,545 | 9,405 | 494 | 1,545 | 9,899 | 11,444 | (2,866 | ) | 8,578 | 2,302 | |||||||||||||||||||||||||||||||||
California Square I |
High Rise | Jan-06 | Louisville, KY | 1982 | 101 | 154 | 5,704 | 523 | 154 | 6,227 | 6,381 | (3,600 | ) | 2,781 | 3,499 | |||||||||||||||||||||||||||||||||
Canterbury Towers |
High Rise | Jan-06 | Worcester, MA | 1976 | 156 | 567 | 4,557 | 936 | 567 | 5,493 | 6,060 | (3,681 | ) | 2,379 | 3,966 | |||||||||||||||||||||||||||||||||
Carriage House |
Mid Rise | Dec-06 | Petersburg, VA | 1885 | 118 | 847 | 2,886 | 3,356 | 716 | 6,373 | 7,089 | (1,407 | ) | 5,682 | 2,273 | |||||||||||||||||||||||||||||||||
Casa de Las Hermanitas |
Garden | Mar-02 | Los Angeles, CA | 1982 | 88 | 1,775 | 4,606 | 4,222 | 1,879 | 8,724 | 10,603 | (1,118 | ) | 9,485 | 5,081 | |||||||||||||||||||||||||||||||||
Castlewood |
Garden | Mar-02 | Davenport, IA | 1980 | 96 | 585 | 2,351 | 1,443 | 585 | 3,794 | 4,379 | (1,497 | ) | 2,882 | 3,503 | |||||||||||||||||||||||||||||||||
City Line |
Garden | Mar-02 | Newport News, VA | 1976 | 200 | 500 | 2,014 | 7,172 | 500 | 9,186 | 9,686 | (2,046 | ) | 7,640 | 4,863 | |||||||||||||||||||||||||||||||||
Clisby Towers |
Mid Rise | Jan-06 | Macon, GA | 1980 | 52 | 524 | 1,970 | 228 | 524 | 2,198 | 2,722 | (1,677 | ) | 1,045 | 939 | |||||||||||||||||||||||||||||||||
Club, The |
Garden | Jan-06 | Lexington, NC | 1972 | 87 | 498 | 2,128 | 662 | 498 | 2,790 | 3,288 | (1,978 | ) | 1,310 | 303 | |||||||||||||||||||||||||||||||||
Coatesville Towers |
High Rise | Mar-02 | Coatesville, PA | 1979 | 90 | 500 | 2,011 | 693 | 500 | 2,704 | 3,204 | (866 | ) | 2,338 | 2,108 | |||||||||||||||||||||||||||||||||
Cold Spring Homes |
Garden | Oct-07 | Cold Springs, KY | 2000 | 30 | 187 | 917 | 1,122 | 187 | 2,039 | 2,226 | (1,441 | ) | 785 | 790 | |||||||||||||||||||||||||||||||||
Community Circle II |
Garden | Jan-06 | Cleveland, OH | 1975 | 129 | 263 | 4,699 | 804 | 263 | 5,503 | 5,766 | (3,265 | ) | 2,501 | 3,275 |
75
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(1) | Initial Cost | Cost Capitalized | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Property | Date | Year | Number | Buildings and | Subsequent to | Buildings and | (5) | Accumulated | Total Cost | |||||||||||||||||||||||||||||||||||||||
Property Name | Type | Consolidated | Location | Built | of Units | Land | Improvements | Consolidation | Land | Improvements | Total | Depreciation (AD) | Net of AD | Encumbrances | ||||||||||||||||||||||||||||||||||
Copperwood I Apartments |
Garden | Apr-06 | The Woodlands, TX | 1980 | 150 | 390 | 8,373 | 4,862 | 363 | 13,262 | 13,625 | (8,167 | ) | 5,458 | 5,590 | |||||||||||||||||||||||||||||||||
Copperwood II Apartments |
Garden | Oct-05 | The Woodlands, TX | 1981 | 150 | 452 | 5,552 | 3,415 | 459 | 8,960 | 9,419 | (3,134 | ) | 6,285 | 5,773 | |||||||||||||||||||||||||||||||||
Country Club Heights |
Garden | Mar-04 | Quincy, IL | 1976 | 200 | 676 | 5,715 | 4,841 | 675 | 10,557 | 11,232 | (3,837 | ) | 7,395 | 7,312 | |||||||||||||||||||||||||||||||||
Country Commons |
Garden | Jan-06 | Bensalem, PA | 1972 | 352 | 1,853 | 17,657 | 2,308 | 1,853 | 19,965 | 21,818 | (10,649 | ) | 11,169 | 4,715 | |||||||||||||||||||||||||||||||||
Courtyard |
Mid Rise | Jan-06 | Cincinnati, OH | 1980 | 137 | 1,362 | 4,876 | 448 | 1,362 | 5,324 | 6,686 | (3,126 | ) | 3,560 | 3,830 | |||||||||||||||||||||||||||||||||
Crevenna Oaks |
Town Home | Jan-06 | Burke, VA | 1979 | 50 | 355 | 4,849 | 219 | 355 | 5,068 | 5,423 | (945 | ) | 4,478 | 3,312 | |||||||||||||||||||||||||||||||||
Crockett Manor |
Garden | Mar-04 | Trenton, TN | 1982 | 38 | 42 | 1,395 | 38 | 42 | 1,433 | 1,475 | (37 | ) | 1,438 | 978 | |||||||||||||||||||||||||||||||||
Cumberland Court |
Garden | Jan-06 | Harrisburg, PA | 1975 | 108 | 379 | 4,040 | 682 | 379 | 4,722 | 5,101 | (3,282 | ) | 1,819 | 1,314 | |||||||||||||||||||||||||||||||||
Daugette Tower |
High Rise | Mar-02 | Gadsden, AL | 1979 | 100 | 540 | 2,178 | 1,744 | 540 | 3,922 | 4,462 | (1,324 | ) | 3,138 | 117 | |||||||||||||||||||||||||||||||||
Delhaven Manor |
Mid Rise | Mar-02 | Jackson, MS | 1983 | 104 | 575 | 2,304 | 1,986 | 575 | 4,290 | 4,865 | (1,621 | ) | 3,244 | 3,758 | |||||||||||||||||||||||||||||||||
Denny Place |
Garden | Mar-02 | North Hollywood, CA | 1984 | 17 | 394 | 1,579 | 139 | 394 | 1,718 | 2,112 | (479 | ) | 1,633 | 1,121 | |||||||||||||||||||||||||||||||||
Douglas Landing |
Garden | Oct-07 | Austin, TX | 1999 | 96 | 11 | 4,989 | 22 | 11 | 5,011 | 5,022 | | 5,022 | 4,000 | ||||||||||||||||||||||||||||||||||
Elmwood |
Garden | Jan-06 | Athens, AL | 1981 | 80 | 346 | 2,643 | 346 | 346 | 2,989 | 3,335 | (1,673 | ) | 1,662 | 1,869 | |||||||||||||||||||||||||||||||||
Fairburn And Gordon II |
Garden | Jan-06 | Atlanta, GA | 1969 | 58 | 439 | 1,647 | 231 | 439 | 1,878 | 2,317 | (1,469 | ) | 848 | 98 | |||||||||||||||||||||||||||||||||
Fairwood |
Garden | Jan-06 | Carmichael, CA | 1979 | 86 | 176 | 5,264 | 379 | 176 | 5,643 | 5,819 | (3,523 | ) | 2,296 | 2,475 | |||||||||||||||||||||||||||||||||
Fountain Place |
Mid Rise | Jan-06 | Connersville, IN | 1980 | 102 | 440 | 2,091 | 2,883 | 447 | 4,967 | 5,414 | (511 | ) | 4,903 | 1,155 | |||||||||||||||||||||||||||||||||
Fox Run |
Garden | Mar-02 | Orange, TX | 1983 | 70 | 420 | 1,992 | 1,026 | 420 | 3,018 | 3,438 | (928 | ) | 2,510 | 2,563 | |||||||||||||||||||||||||||||||||
Foxfire |
Garden | Jan-06 | Jackson, MI | 1975 | 160 | 856 | 6,853 | 1,423 | 856 | 8,276 | 9,132 | (5,247 | ) | 3,885 | 1,803 | |||||||||||||||||||||||||||||||||
Franklin Square School Apts |
Mid Rise | Jan-06 | Baltimore, MD | 1888 | 65 | 566 | 3,581 | 216 | 566 | 3,797 | 4,363 | (2,153 | ) | 2,210 | 2,099 | |||||||||||||||||||||||||||||||||
Friendset Apartments |
High Rise | Jan-06 | Brooklyn, NY | 1979 | 259 | 550 | 16,825 | 1,737 | 550 | 18,562 | 19,112 | (10,414 | ) | 8,698 | 14,404 | |||||||||||||||||||||||||||||||||
Frio |
Garden | Jan-06 | Pearsall, TX | 1980 | 63 | 327 | 2,207 | 407 | 327 | 2,614 | 2,941 | (1,728 | ) | 1,213 | 1,109 | |||||||||||||||||||||||||||||||||
Gates Manor |
Garden | Mar-04 | Clinton, TN | 1981 | 80 | 266 | 2,225 | 881 | 264 | 3,108 | 3,372 | (1,195 | ) | 2,177 | 2,411 | |||||||||||||||||||||||||||||||||
Gateway Village |
Garden | Mar-04 | Hillsborough, NC | 1980 | 64 | 433 | 1,666 | 580 | 515 | 2,164 | 2,679 | (746 | ) | 1,933 | 2,360 | |||||||||||||||||||||||||||||||||
Glens, The |
Garden | Jan-06 | Rock Hill, SC | 1982 | 88 | 839 | 4,135 | 1,140 | 839 | 5,275 | 6,114 | (3,627 | ) | 2,487 | 3,757 | |||||||||||||||||||||||||||||||||
Greenbriar |
Garden | Jan-06 | Indianapolis, IN | 1980 | 121 | 812 | 3,272 | 346 | 812 | 3,618 | 4,430 | (2,491 | ) | 1,939 | 1,098 | |||||||||||||||||||||||||||||||||
Hamlin Estates |
Garden | Mar-02 | North Hollywood, CA | 1983 | 30 | 1,010 | 1,691 | 241 | 1,010 | 1,932 | 2,942 | (678 | ) | 2,264 | 1,515 | |||||||||||||||||||||||||||||||||
Hanover Square |
High Rise | Jan-06 | Baltimore, MD | 1980 | 199 | 1,656 | 9,575 | 425 | 1,656 | 10,000 | 11,656 | (6,267 | ) | 5,389 | 5,495 | |||||||||||||||||||||||||||||||||
Harris Park Apartments |
Garden | Dec-97 | Rochester, NY | 1968 | 114 | 475 | 2,786 | 1,101 | 475 | 3,887 | 4,362 | (1,824 | ) | 2,538 | 200 | |||||||||||||||||||||||||||||||||
Hatillo Housing |
Mid Rise | Jan-06 | Hatillo, PR | 1982 | 64 | 202 | 2,875 | 204 | 202 | 3,079 | 3,281 | (1,820 | ) | 1,461 | 1,370 | |||||||||||||||||||||||||||||||||
Hemet Estates |
Garden | Mar-02 | Hemet, CA | 1983 | 80 | 700 | 2,802 | 2,995 | 420 | 6,077 | 6,497 | (1,138 | ) | 5,359 | 4,316 | |||||||||||||||||||||||||||||||||
Henna Townhomes |
Garden | Oct-07 | Round Rock, TX | 1999 | 160 | 1,047 | 12,893 | 84 | 1,047 | 12,977 | 14,024 | (2,641 | ) | 11,383 | 6,172 | |||||||||||||||||||||||||||||||||
Heritage House |
Mid Rise | Jan-06 | Lewisburg, PA | 1982 | 80 | 178 | 3,251 | 131 | 178 | 3,382 | 3,560 | (2,034 | ) | 1,526 | 2,106 | |||||||||||||||||||||||||||||||||
Hilltop |
Garden | Jan-06 | Duquesne, PA | 1975 | 152 | 1,271 | 6,194 | 722 | 1,271 | 6,916 | 8,187 | (5,198 | ) | 2,989 | 2,110 | |||||||||||||||||||||||||||||||||
Hopkins Village |
Mid Rise | Sep-03 | Baltimore, MD | 1979 | 165 | 438 | 5,973 | 3,680 | 452 | 9,639 | 10,091 | (1,192 | ) | 8,899 | 9,100 | |||||||||||||||||||||||||||||||||
Hudson Gardens |
Garden | Mar-02 | Pasadena, CA | 1983 | 41 | 914 | 1,548 | 335 | 914 | 1,883 | 2,797 | (644 | ) | 2,153 | 539 | |||||||||||||||||||||||||||||||||
Indio Gardens |
Mid Rise | Oct-06 | Indio, CA | 1980 | 151 | 775 | 8,759 | 4,155 | 775 | 12,914 | 13,689 | (1,213 | ) | 12,476 | 4,173 | |||||||||||||||||||||||||||||||||
Ingram Square |
Garden | Jan-06 | San Antonio, TX | 1980 | 120 | 630 | 3,137 | 5,716 | 630 | 8,853 | 9,483 | (1,338 | ) | 8,145 | 3,825 | |||||||||||||||||||||||||||||||||
Jenny Lind Hall |
High Rise | Mar-04 | Springfield, MO | 1977 | 78 | 142 | 3,684 | 260 | 142 | 3,944 | 4,086 | (358 | ) | 3,728 | 942 | |||||||||||||||||||||||||||||||||
JFK Towers |
Mid Rise | Jan-06 | Durham, NC | 1983 | 177 | 750 | 7,970 | 773 | 750 | 8,743 | 9,493 | (4,678 | ) | 4,815 | 5,796 | |||||||||||||||||||||||||||||||||
Kephart Plaza |
High Rise | Jan-06 | Lock Haven, PA | 1978 | 101 | 609 | 3,796 | 462 | 609 | 4,258 | 4,867 | (2,987 | ) | 1,880 | 1,488 | |||||||||||||||||||||||||||||||||
King Bell Apartments |
Garden | Jan-06 | Milwaukie, OR | 1982 | 62 | 204 | 2,497 | 193 | 204 | 2,690 | 2,894 | (1,451 | ) | 1,443 | 1,631 | |||||||||||||||||||||||||||||||||
Kirkwood House |
High Rise | Sep-04 | Baltimore, MD | 1979 | 261 | 1,281 | 9,358 | 6,398 | 1,275 | 15,762 | 17,037 | (1,929 | ) | 15,108 | 16,000 | |||||||||||||||||||||||||||||||||
Kubasek Trinity Manor (The Hollows) |
High Rise | Jan-06 | Yonkers, NY | 1981 | 130 | 54 | 8,308 | 1,788 | 54 | 10,096 | 10,150 | (5,033 | ) | 5,117 | 4,749 | |||||||||||||||||||||||||||||||||
La Salle |
Garden | Oct-00 | San Francisco, CA | 1976 | 145 | 1,841 | 19,568 | 16,650 | 1,866 | 36,193 | 38,059 | (12,408 | ) | 25,651 | 15,992 | |||||||||||||||||||||||||||||||||
La Vista |
Garden | Jan-06 | Concord, CA | 1981 | 75 | 565 | 4,448 | 4,223 | 581 | 8,655 | 9,236 | (909 | ) | 8,327 | 5,499 | |||||||||||||||||||||||||||||||||
Lafayette Square |
Garden | Jan-06 | Camden, SC | 1978 | 72 | 142 | 1,875 | 79 | 142 | 1,954 | 2,096 | (1,629 | ) | 467 | 270 | |||||||||||||||||||||||||||||||||
Lakeview Arms |
Mid Rise | Jan-06 | Poughkeepsie, NY | 1981 | 72 | 111 | 3,256 | 288 | 111 | 3,544 | 3,655 | (2,182 | ) | 1,473 | 1,790 | |||||||||||||||||||||||||||||||||
Landau |
Garden | Oct-05 | Clinton, SC | 1970 | 80 | 1,293 | 1,429 | 246 | 1,293 | 1,675 | 2,968 | (1,675 | ) | 1,293 | 283 | |||||||||||||||||||||||||||||||||
Laurelwood |
Garden | Jan-06 | Morristown, TN | 1981 | 65 | 75 | 1,870 | 179 | 75 | 2,049 | 2,124 | (1,275 | ) | 849 | 1,320 | |||||||||||||||||||||||||||||||||
Lock Haven Gardens |
Garden | Jan-06 | Lock Haven, PA | 1979 | 150 | 1,163 | 6,045 | 606 | 1,163 | 6,651 | 7,814 | (4,643 | ) | 3,171 | 2,860 | |||||||||||||||||||||||||||||||||
Locust House |
High Rise | Mar-02 | Westminster, MD | 1979 | 99 | 650 | 2,604 | 786 | 650 | 3,390 | 4,040 | (1,123 | ) | 2,917 | 2,264 | |||||||||||||||||||||||||||||||||
Long Meadow |
Garden | Jan-06 | Cheraw, SC | 1973 | 56 | 158 | 1,342 | 174 | 158 | 1,516 | 1,674 | (1,168 | ) | 506 | 198 | |||||||||||||||||||||||||||||||||
Loring Towers |
High Rise | Oct-02 | Minneapolis, MN | 1975 | 230 | 1,297 | 7,445 | 7,587 | 886 | 15,443 | 16,329 | (4,248 | ) | 12,081 | 7,387 | |||||||||||||||||||||||||||||||||
Loring Towers Apartments |
High Rise | Sep-03 | Salem, MA | 1973 | 250 | 129 | 14,050 | 6,414 | 140 | 20,453 | 20,593 | (3,664 | ) | 16,929 | 16,177 | |||||||||||||||||||||||||||||||||
Lynnhaven |
Garden | Mar-04 | Durham, NC | 1980 | 75 | 539 | 2,159 | 793 | 563 | 2,928 | 3,491 | (652 | ) | 2,839 | 2,787 | |||||||||||||||||||||||||||||||||
Michigan Beach |
Garden | Oct-07 | Chicago, IL | 1958 | 239 | 2,225 | 10,797 | 757 | 2,225 | 11,554 | 13,779 | (3,296 | ) | 10,483 | 5,510 | |||||||||||||||||||||||||||||||||
Mill Pond |
Mid Rise | Jan-06 | Taunton, MA | 1982 | 49 | 80 | 2,704 | 311 | 80 | 3,015 | 3,095 | (1,655 | ) | 1,440 | 1,301 | |||||||||||||||||||||||||||||||||
Miramar Housing |
High Rise | Jan-06 | Ponce, PR | 1983 | 96 | 367 | 5,085 | 194 | 367 | 5,279 | 5,646 | (2,946 | ) | 2,700 | 2,869 | |||||||||||||||||||||||||||||||||
Montblanc Gardens |
Town Home | Dec-03 | Yauco, PR | 1982 | 128 | 391 | 3,859 | 959 | 391 | 4,818 | 5,209 | (2,469 | ) | 2,740 | 3,282 | |||||||||||||||||||||||||||||||||
Moss Gardens |
Mid Rise | Jan-06 | Lafayette, LA | 1980 | 114 | 524 | 3,818 | 257 | 524 | 4,075 | 4,599 | (3,058 | ) | 1,541 | 1,991 | |||||||||||||||||||||||||||||||||
New Baltimore |
Mid Rise | Mar-02 | New Baltimore, MI | 1980 | 101 | 888 | 2,360 | 5,154 | 896 | 7,506 | 8,402 | (1,459 | ) | 6,943 | 2,213 | |||||||||||||||||||||||||||||||||
Newberry Park |
Garden | Dec-97 | Chicago, IL | 1985 | 82 | 1,380 | 7,632 | 459 | 1,380 | 8,091 | 9,471 | (2,739 | ) | 6,732 | 7,399 | |||||||||||||||||||||||||||||||||
Northlake Village |
Garden | Oct-00 | Lima, OH | 1971 | 150 | 487 | 1,317 | 1,791 | 487 | 3,108 | 3,595 | (1,736 | ) | 1,859 | 608 | |||||||||||||||||||||||||||||||||
Northpoint |
Garden | Jan-00 | Chicago, IL | 1921 | 304 | 2,280 | 14,334 | 16,403 | 2,510 | 30,507 | 33,017 | (14,624 | ) | 18,393 | 19,556 | |||||||||||||||||||||||||||||||||
Northwinds, The |
Garden | Mar-02 | Wytheville, VA | 1978 | 144 | 500 | 2,012 | 525 | 500 | 2,537 | 3,037 | (1,339 | ) | 1,698 | 1,599 | |||||||||||||||||||||||||||||||||
Oakbrook |
Garden | Jan-08 | Topeka, KS | 1979 | 170 | 240 | 6,200 | 7 | 240 | 6,207 | 6,447 | (2,773 | ) | 3,674 | 2,770 | |||||||||||||||||||||||||||||||||
Oakwood Manor |
Garden | Mar-04 | Milan, TN | 1984 | 34 | 95 | 498 | 27 | 95 | 525 | 620 | (96 | ) | 524 | 433 |
76
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(1) | Initial Cost | Cost Capitalized | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Property | Date | Year | Number | Buildings and | Subsequent to | Buildings and | (5) | Accumulated | Total Cost | |||||||||||||||||||||||||||||||||||||||
Property Name | Type | Consolidated | Location | Built | of Units | Land | Improvements | Consolidation | Land | Improvements | Total | Depreciation (AD) | Net of AD | Encumbrances | ||||||||||||||||||||||||||||||||||
ONeil |
High Rise | Jan-06 | Troy, NY | 1978 | 115 | 88 | 4,067 | 791 | 88 | 4,858 | 4,946 | (3,278 | ) | 1,668 | 1,353 | |||||||||||||||||||||||||||||||||
Orange Village |
Garden | Jan-06 | Hermitage, PA | 1979 | 81 | 79 | 3,406 | 436 | 79 | 3,842 | 3,921 | (2,361 | ) | 1,560 | 1,833 | |||||||||||||||||||||||||||||||||
Overbrook Park |
Garden | Jan-06 | Chillicothe, OH | 1981 | 50 | 136 | 2,282 | 198 | 136 | 2,480 | 2,616 | (1,377 | ) | 1,239 | 1,447 | |||||||||||||||||||||||||||||||||
Oxford House |
Mid Rise | Mar-02 | Deactur, IL | 1979 | 156 | 993 | 4,164 | 451 | 993 | 4,615 | 5,608 | (1,932 | ) | 3,676 | 2,910 | |||||||||||||||||||||||||||||||||
Palm Springs Senior |
Garden | Mar-02 | Palm Springs, CA | 1981 | 116 | | 8,745 | 3,657 | | 12,402 | 12,402 | (1,782 | ) | 10,620 | 6,902 | |||||||||||||||||||||||||||||||||
Panorama Park |
Garden | Mar-02 | Bakersfield, CA | 1982 | 66 | 621 | 5,520 | 893 | 619 | 6,415 | 7,034 | (1,254 | ) | 5,780 | 2,331 | |||||||||||||||||||||||||||||||||
Parc Chateau I |
Garden | Jan-06 | Lithonia, GA | 1973 | 86 | 592 | 1,442 | 324 | 592 | 1,766 | 2,358 | (1,744 | ) | 614 | 434 | |||||||||||||||||||||||||||||||||
Parc Chateau II |
Garden | Jan-06 | Lithonia, GA | 1974 | 88 | 596 | 2,965 | 284 | 596 | 3,249 | 3,845 | (2,522 | ) | 1,323 | 437 | |||||||||||||||||||||||||||||||||
Park Joplin Apartments |
Garden | Oct-07 | Joplin, MO | 1974 | 192 | 996 | 8,847 | 2 | 996 | 8,849 | 9,845 | (2,816 | ) | 7,029 | 3,395 | |||||||||||||||||||||||||||||||||
Park Place |
Mid Rise | Jun-05 | St Louis, MO | 1977 | 242 | 742 | 6,327 | 9,758 | 705 | 16,122 | 16,827 | (8,022 | ) | 8,805 | 9,572 | |||||||||||||||||||||||||||||||||
Park Vista |
Garden | Oct-05 | Anaheim, CA | 1958 | 392 | 6,155 | 25,929 | 4,463 | 6,155 | 30,392 | 36,547 | (6,356 | ) | 30,191 | 37,757 | |||||||||||||||||||||||||||||||||
Parkview |
Garden | Mar-02 | Sacramento, CA | 1980 | 97 | 1,041 | 2,880 | 7,019 | 1,145 | 9,795 | 10,940 | (1,456 | ) | 9,484 | 6,198 | |||||||||||||||||||||||||||||||||
Parkways, The |
Garden | Jun-04 | Chicago, IL | 1925 | 446 | 3,684 | 23,257 | 17,401 | 3,427 | 40,915 | 44,342 | (12,211 | ) | 32,131 | 21,927 | |||||||||||||||||||||||||||||||||
Patman Switch |
Garden | Jan-06 | Hughes Springs, TX | 1978 | 82 | 727 | 1,382 | 604 | 727 | 1,986 | 2,713 | (1,532 | ) | 1,181 | 1,229 | |||||||||||||||||||||||||||||||||
Pavilion |
High Rise | Mar-04 | Philadelphia, PA | 1976 | 296 | | 15,416 | 1,265 | | 16,681 | 16,681 | (4,111 | ) | 12,570 | 9,230 | |||||||||||||||||||||||||||||||||
Peachwood Place |
Garden | Oct-07 | Waycross, GA | 1999 | 72 | 163 | 2,254 | | 163 | 2,254 | 2,417 | (1,317 | ) | 1,100 | 737 | |||||||||||||||||||||||||||||||||
Pinebluff Village |
Mid Rise | Jan-06 | Salisbury, MD | 1980 | 151 | 1,112 | 7,177 | 685 | 1,112 | 7,862 | 8,974 | (5,627 | ) | 3,347 | 2,050 | |||||||||||||||||||||||||||||||||
Pinewood Place |
Garden | Mar-02 | Toledo, OH | 1979 | 99 | 420 | 1,698 | 1,234 | 420 | 2,932 | 3,352 | (1,229 | ) | 2,123 | 2,001 | |||||||||||||||||||||||||||||||||
Pleasant Hills |
Garden | Apr-05 | Austin, TX | 1982 | 100 | 1,188 | 2,631 | 3,502 | 1,229 | 6,092 | 7,321 | (1,810 | ) | 5,511 | 3,206 | |||||||||||||||||||||||||||||||||
Plummer Village |
Mid Rise | Mar-02 | North Hills, CA | 1983 | 75 | 624 | 2,647 | 1,613 | 667 | 4,217 | 4,884 | (1,670 | ) | 3,214 | 2,598 | |||||||||||||||||||||||||||||||||
Portner Place |
Town Home | Jan-06 | Washington, DC | 1980 | 48 | 697 | 3,753 | 92 | 697 | 3,845 | 4,542 | (287 | ) | 4,255 | 6,428 | |||||||||||||||||||||||||||||||||
Post Street Apartments |
High Rise | Jan-06 | Yonkers, NY | 1930 | 56 | 148 | 3,315 | 415 | 148 | 3,730 | 3,878 | (2,297 | ) | 1,581 | 1,599 | |||||||||||||||||||||||||||||||||
Pride Gardens |
Garden | Dec-97 | Flora, MS | 1975 | 76 | 102 | 1,071 | 1,628 | 102 | 2,699 | 2,801 | (1,454 | ) | 1,347 | 1,079 | |||||||||||||||||||||||||||||||||
Rancho California |
Garden | Jan-06 | Temecula, CA | 1984 | 55 | 488 | 5,462 | 256 | 488 | 5,718 | 6,206 | (2,797 | ) | 3,409 | 4,536 | |||||||||||||||||||||||||||||||||
Ridgewood (La Loma) |
Garden | Mar-02 | Sacramento, CA | 1980 | 75 | 684 | 227 | 7,367 | 718 | 7,560 | 8,278 | (910 | ) | 7,368 | 4,650 | |||||||||||||||||||||||||||||||||
Ridgewood Towers |
High Rise | Mar-02 | East Moline, IL | 1977 | 140 | 698 | 2,803 | 755 | 698 | 3,558 | 4,256 | (1,296 | ) | 2,960 | 1,552 | |||||||||||||||||||||||||||||||||
River Village |
High Rise | Jan-06 | Flint, MI | 1980 | 340 | 1,756 | 13,877 | 1,484 | 1,756 | 15,361 | 17,117 | (10,068 | ) | 7,049 | 7,370 | |||||||||||||||||||||||||||||||||
Rivers Edge |
Town Home | Jan-06 | Greenville, MI | 1983 | 49 | 311 | 2,097 | 283 | 311 | 2,380 | 2,691 | (1,643 | ) | 1,048 | 664 | |||||||||||||||||||||||||||||||||
Riverwoods |
High Rise | Jan-06 | Kankakee, IL | 1983 | 125 | 590 | 4,932 | 3,454 | 598 | 8,378 | 8,976 | (1,234 | ) | 7,742 | 5,077 | |||||||||||||||||||||||||||||||||
Rosedale Court Apartments |
Garden | Mar-04 | Dawson Springs, KY | 1981 | 40 | 194 | 1,177 | 180 | 194 | 1,357 | 1,551 | (548 | ) | 1,003 | 876 | |||||||||||||||||||||||||||||||||
Round Barn |
Garden | Mar-02 | Champaign, IL | 1979 | 156 | 947 | 5,134 | 5,729 | 934 | 10,876 | 11,810 | (2,312 | ) | 9,498 | 5,220 | |||||||||||||||||||||||||||||||||
Rutherford Park |
Town Home | Jan-06 | Hummelstown, PA | 1981 | 85 | 376 | 4,814 | 312 | 376 | 5,126 | 5,502 | (3,005 | ) | 2,497 | 2,841 | |||||||||||||||||||||||||||||||||
San Jose Apartments |
Garden | Sep-05 | San Antonio, TX | 1970 | 220 | 404 | 5,770 | 11,373 | 234 | 17,313 | 17,547 | (3,275 | ) | 14,272 | 5,271 | |||||||||||||||||||||||||||||||||
San Juan Del Centro |
Mid Rise | Sep-05 | Boulder, CO | 1971 | 150 | 243 | 7,110 | 12,551 | 438 | 19,466 | 19,904 | (3,729 | ) | 16,175 | 11,652 | |||||||||||||||||||||||||||||||||
Sandy Hill Terrace |
High Rise | Mar-02 | Norristown, PA | 1980 | 174 | 1,650 | 6,599 | 2,783 | 1,650 | 9,382 | 11,032 | (3,011 | ) | 8,021 | 3,598 | |||||||||||||||||||||||||||||||||
Sandy Springs |
Garden | Mar-05 | Macon, GA | 1979 | 74 | 366 | 1,522 | 1,403 | 366 | 2,925 | 3,291 | (1,703 | ) | 1,588 | 1,915 | |||||||||||||||||||||||||||||||||
School Street |
Mid Rise | Jan-06 | Taunton, MA | 1920 | 75 | 219 | 4,335 | 645 | 219 | 4,980 | 5,199 | (2,742 | ) | 2,457 | 2,625 | |||||||||||||||||||||||||||||||||
Sherman Hills |
High Rise | Jan-06 | Wilkes-Barre, PA | 1976 | 344 | 2,039 | 15,549 | 1,334 | 2,039 | 16,883 | 18,922 | (13,422 | ) | 5,500 | 3,028 | |||||||||||||||||||||||||||||||||
Shoreview |
Garden | Oct-99 | San Francisco, CA | 1976 | 156 | 1,498 | 19,071 | 18,283 | 1,476 | 37,376 | 38,852 | (13,248 | ) | 25,604 | 17,278 | |||||||||||||||||||||||||||||||||
South Bay Villa |
Garden | Mar-02 | Los Angeles, CA | 1981 | 80 | 663 | 2,770 | 4,354 | 1,352 | 6,435 | 7,787 | (3,290 | ) | 4,497 | 3,063 | |||||||||||||||||||||||||||||||||
Springfield Villas |
Garden | Oct-07 | Lockhart, TX | 1999 | 32 | | 1,153 | 9 | | 1,162 | 1,162 | | 1,162 | 855 | ||||||||||||||||||||||||||||||||||
St. George Villas |
Garden | Jan-06 | St. George, SC | 1984 | 40 | 86 | 1,025 | 95 | 86 | 1,120 | 1,206 | (787 | ) | 419 | 503 | |||||||||||||||||||||||||||||||||
Sterling Village |
Town Home | Mar-02 | San Bernadino, CA | 1983 | 80 | 549 | 3,459 | 2,722 | 188 | 6,542 | 6,730 | (1,470 | ) | 5,260 | 4,497 | |||||||||||||||||||||||||||||||||
Stonegate Apts |
Mid Rise | Jul-09 | Indianapolis, IN | 1920 | 52 | 255 | 3,610 | 6 | 255 | 3,616 | 3,871 | (733 | ) | 3,138 | 1,918 | |||||||||||||||||||||||||||||||||
Sumler Terrace |
Garden | Jan-06 | Norfolk, VA | 1976 | 126 | 215 | 4,400 | 503 | 215 | 4,903 | 5,118 | (3,643 | ) | 1,475 | 1,303 | |||||||||||||||||||||||||||||||||
Summit Oaks |
Town Home | Jan-06 | Burke, VA | 1980 | 50 | 382 | 4,930 | 288 | 382 | 5,218 | 5,600 | (1,103 | ) | 4,497 | 3,303 | |||||||||||||||||||||||||||||||||
Suntree |
Garden | Jan-06 | St. Johns, MI | 1980 | 121 | 403 | 6,488 | 658 | 403 | 7,146 | 7,549 | (4,472 | ) | 3,077 | 966 | |||||||||||||||||||||||||||||||||
Tabor Towers |
Mid Rise | Jan-06 | Lewisburg, WV | 1979 | 84 | 163 | 3,360 | 236 | 163 | 3,596 | 3,759 | (2,136 | ) | 1,623 | 1,934 | |||||||||||||||||||||||||||||||||
Tamarac Apartments I |
Garden | Nov-04 | Woodlands, TX | 1980 | 144 | 140 | 2,775 | 3,613 | 363 | 6,165 | 6,528 | (2,071 | ) | 4,457 | 4,188 | |||||||||||||||||||||||||||||||||
Tamarac Apartments II |
Garden | Nov-04 | Woodlands, TX | 1980 | 156 | 142 | 3,195 | 4,048 | 266 | 7,119 | 7,385 | (2,349 | ) | 5,036 | 4,537 | |||||||||||||||||||||||||||||||||
Terraces |
Mid Rise | Jan-06 | Kettering, OH | 1979 | 102 | 1,561 | 2,815 | 634 | 1,561 | 3,449 | 5,010 | (2,493 | ) | 2,517 | 2,483 | |||||||||||||||||||||||||||||||||
Terry Manor |
Mid Rise | Oct-05 | Los Angeles, CA | 1977 | 170 | 1,775 | 5,848 | 6,648 | 1,997 | 12,274 | 14,271 | (4,379 | ) | 9,892 | 6,961 | |||||||||||||||||||||||||||||||||
Tompkins Terrace |
Garden | Oct-02 | Beacon, NY | 1974 | 193 | 872 | 6,827 | 12,128 | 872 | 18,955 | 19,827 | (3,124 | ) | 16,703 | 8,536 | |||||||||||||||||||||||||||||||||
Trestletree Village |
Garden | Mar-02 | Atlanta, GA | 1981 | 188 | 1,150 | 4,655 | 1,500 | 1,150 | 6,155 | 7,305 | (2,119 | ) | 5,186 | 2,856 | |||||||||||||||||||||||||||||||||
University Square |
High Rise | Mar-05 | Philadelphia, PA | 1978 | 442 | 702 | 12,201 | 12,209 | 702 | 24,410 | 25,112 | (8,361 | ) | 16,751 | 13,634 | |||||||||||||||||||||||||||||||||
Van Nuys Apartments |
High Rise | Mar-02 | Los Angeles, CA | 1981 | 299 | 4,253 | 21,226 | 19,594 | 4,219 | 40,854 | 45,073 | (5,581 | ) | 39,492 | 20,870 | |||||||||||||||||||||||||||||||||
Victory Square |
Garden | Mar-02 | Canton, OH | 1975 | 81 | 215 | 889 | 550 | 215 | 1,439 | 1,654 | (633 | ) | 1,021 | 850 | |||||||||||||||||||||||||||||||||
Village Oaks |
Mid Rise | Jan-06 | Catonsville, MD | 1980 | 181 | 2,127 | 5,188 | 1,775 | 2,127 | 6,963 | 9,090 | (4,748 | ) | 4,342 | 4,479 | |||||||||||||||||||||||||||||||||
Village of Kaufman |
Garden | Mar-05 | Kaufman, TX | 1981 | 68 | 370 | 1,606 | 628 | 370 | 2,234 | 2,604 | (747 | ) | 1,857 | 1,851 | |||||||||||||||||||||||||||||||||
Vintage Crossing |
Town Home | Mar-04 | Cuthbert, GA | 1982 | 50 | 188 | 1,058 | 553 | 188 | 1,611 | 1,799 | (917 | ) | 882 | 1,639 | |||||||||||||||||||||||||||||||||
Vista Park Chino |
Garden | Mar-02 | Chino, CA | 1983 | 40 | 380 | 1,521 | 388 | 380 | 1,909 | 2,289 | (693 | ) | 1,596 | 1,446 | |||||||||||||||||||||||||||||||||
Vistula Heritage Village |
Garden | Oct-08 | Toledo, OH | 1930 | 250 | 1,312 | 20,635 | | 1,312 | 20,635 | 21,947 | (8,119 | ) | 13,828 | 12,716 | |||||||||||||||||||||||||||||||||
Wah Luck House |
High Rise | Jan-06 | Washington, DC | 1982 | 153 | | 8,690 | 476 | | 9,166 | 9,166 | (2,407 | ) | 6,759 | 9,147 | |||||||||||||||||||||||||||||||||
Walnut Hills |
High Rise | Jan-06 | Cincinnati, OH | 1983 | 198 | 888 | 5,608 | 5,114 | 826 | 10,784 | 11,610 | (1,788 | ) | 9,822 | 5,645 | |||||||||||||||||||||||||||||||||
Wasco Arms |
Garden | Mar-02 | Wasco, CA | 1982 | 78 | 625 | 2,519 | 1,025 | 625 | 3,544 | 4,169 | (1,368 | ) | 2,801 | 3,109 | |||||||||||||||||||||||||||||||||
Washington Square West |
Mid Rise | Sep-04 | Philadelphia, PA | 1982 | 132 | 555 | 11,169 | 5,854 | 582 | 16,996 | 17,578 | (7,665 | ) | 9,913 | 3,888 | |||||||||||||||||||||||||||||||||
Westwood Terrace |
Mid Rise | Mar-02 | Moline, IL | 1976 | 97 | 720 | 3,242 | 586 | 720 | 3,828 | 4,548 | (1,237 | ) | 3,311 | 1,652 |
77
(2) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
(1) | Initial Cost | Cost Capitalized | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Property | Date | Year | Number | Buildings and | Subsequent to | Buildings and | (5) | Accumulated | Total Cost | |||||||||||||||||||||||||||||||||||||||
Property Name | Type | Consolidated | Location | Built | of Units | Land | Improvements | Consolidation | Land | Improvements | Total | Depreciation (AD) | Net of AD | Encumbrances | ||||||||||||||||||||||||||||||||||
White Cliff |
Garden | Mar-02 | Lincoln Heights, OH | 1977 | 72 | 215 | 938 | 419 | 215 | 1,357 | 1,572 | (567 | ) | 1,005 | 1,003 | |||||||||||||||||||||||||||||||||
Whitefield Place |
Garden | Apr-05 | San Antonio, TX | 1980 | 80 | 223 | 3,151 | 2,550 | 219 | 5,705 | 5,924 | (2,054 | ) | 3,870 | 2,260 | |||||||||||||||||||||||||||||||||
Wickford |
Garden | Mar-04 | Henderson, NC | 1983 | 44 | 247 | 946 | 123 | 247 | 1,069 | 1,316 | (436 | ) | 880 | 1,423 | |||||||||||||||||||||||||||||||||
Wilderness Trail |
High Rise | Mar-02 | Pineville, KY | 1983 | 124 | 1,010 | 4,048 | 674 | 1,010 | 4,722 | 5,732 | (1,223 | ) | 4,509 | 4,478 | |||||||||||||||||||||||||||||||||
Wilkes Towers |
High Rise | Mar-02 | North Wilkesboro, NC | 1981 | 72 | 410 | 1,680 | 494 | 410 | 2,174 | 2,584 | (723 | ) | 1,861 | 1,875 | |||||||||||||||||||||||||||||||||
Willow Wood |
Garden | Mar-02 | North Hollywood, CA | 1984 | 19 | 1,051 | 840 | 193 | 1,051 | 1,033 | 2,084 | (308 | ) | 1,776 | 1,068 | |||||||||||||||||||||||||||||||||
Winnsboro Arms |
Garden | Jan-06 | Winnsboro, SC | 1978 | 60 | 272 | 1,697 | 253 | 272 | 1,950 | 2,222 | (1,508 | ) | 714 | 182 | |||||||||||||||||||||||||||||||||
Winter Gardens |
High Rise | Mar-04 | St Louis, MO | 1920 | 112 | 300 | 3,072 | 4,448 | 300 | 7,520 | 7,820 | (1,334 | ) | 6,486 | 3,796 | |||||||||||||||||||||||||||||||||
Woodcrest |
Garden | Dec-97 | Odessa, TX | 1972 | 80 | 41 | 229 | 674 | 41 | 903 | 944 | (708 | ) | 236 | 443 | |||||||||||||||||||||||||||||||||
Woodland |
Garden | Jan-06 | Spartanburg, SC | 1972 | 100 | 182 | 663 | 1,379 | 182 | 2,042 | 2,224 | (491 | ) | 1,733 | | |||||||||||||||||||||||||||||||||
Woodland Hills |
Garden | Oct-05 | Jackson, MI | 1980 | 125 | 541 | 3,875 | 4,266 | 321 | 8,361 | 8,682 | (2,727 | ) | 5,955 | 3,644 | |||||||||||||||||||||||||||||||||
Total Affordable Properties: |
20,997 | 120,950 | 887,626 | 443,579 | 120,153 | 1,332,002 | 1,452,155 | (489,922 | ) | 962,233 | 708,776 | |||||||||||||||||||||||||||||||||||||
Other (4) |
| 74 | 2,470 | 2,465 | 2,107 | 2,903 | 5,010 | (2,490 | ) | 2,520 | | |||||||||||||||||||||||||||||||||||||
Total Continuing Operations |
91,409 | 2,103,333 | 4,759,344 | 2,624,616 | 2,161,010 | 7,326,284 | 9,487,294 | (2,625,542 | ) | 6,861,752 | 5,459,159 | |||||||||||||||||||||||||||||||||||||
Discontinued Operations: |
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Conventional Properties: |
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Atriums of Plantation |
Mid Rise | Aug-98 | Plantation, FL | 1979 | 210 | 1,807 | 10,385 | 2,833 | 1,807 | 13,218 | 15,025 | (5,151 | ) | 9,874 | 5,780 | |||||||||||||||||||||||||||||||||
Citrus Grove |
Garden | Jun-98 | Redlands, CA | 1985 | 198 | 1,118 | 6,642 | 2,186 | 1,118 | 8,828 | 9,946 | (3,983 | ) | 5,963 | 3,261 | |||||||||||||||||||||||||||||||||
Fairway |
Garden | Jan-00 | Plano, TX | 1978 | 256 | 2,961 | 5,137 | 5,788 | 2,961 | 10,925 | 13,886 | (5,794 | ) | 8,092 | 8,885 | |||||||||||||||||||||||||||||||||
Highland Ridge |
Garden | Sep-04 | Atlanta, GA | 1984 | 219 | 1,225 | 6,174 | 5,145 | 1,242 | 11,302 | 12,544 | (4,605 | ) | 7,939 | 6,100 | |||||||||||||||||||||||||||||||||
Homestead |
Garden | Apr-05 | East Lansing, MI | 1986 | 168 | 1,565 | 8,200 | 761 | 1,566 | 8,960 | 10,526 | (3,878 | ) | 6,648 | 3,372 | |||||||||||||||||||||||||||||||||
Sienna Bay |
Garden | Apr-00 | St. Petersburg, FL | 1984 | 276 | 1,737 | 9,778 | 10,702 | 1,737 | 20,480 | 22,217 | (10,277 | ) | 11,940 | 10,630 | |||||||||||||||||||||||||||||||||
Solana Vista |
Garden | Dec-97 | Bradenton, FL | 1984 | 200 | 1,276 | 7,170 | 6,872 | 1,276 | 14,042 | 15,318 | (5,449 | ) | 9,869 | 7,865 | |||||||||||||||||||||||||||||||||
Stoney Brook |
Garden | Nov-96 | Houston, TX | 1972 | 113 | 275 | 1,865 | 1,931 | 275 | 3,796 | 4,071 | (1,215 | ) | 2,856 | 1,797 | |||||||||||||||||||||||||||||||||
Summit Creek |
Garden | May-98 | Austin, TX | 1985 | 164 | 1,211 | 6,037 | 2,591 | 1,211 | 8,628 | 9,839 | (3,285 | ) | 6,554 | 5,670 | |||||||||||||||||||||||||||||||||
Tar River Estates |
Garden | Oct-99 | Greenville, NC | 1969 | 220 | 1,558 | 14,298 | 3,740 | 1,558 | 18,038 | 19,596 | (7,601 | ) | 11,995 | 3,960 | |||||||||||||||||||||||||||||||||
Tierra Palms |
Garden | Jan-06 | Norwalk, CA | 1970 | 144 | 6,441 | 6,807 | 609 | 6,441 | 7,416 | 13,857 | (855 | ) | 13,002 | 10,777 | |||||||||||||||||||||||||||||||||
Wilson Acres |
Garden | Apr-06 | Greenville, NC | 1979 | 146 | 1,175 | 3,943 | 962 | 1,485 | 4,595 | 6,080 | (866 | ) | 5,214 | 2,743 | |||||||||||||||||||||||||||||||||
Total Conventional Properties: |
2,314 | 22,349 | 86,436 | 44,120 | 22,677 | 130,228 | 152,905 | (52,959 | ) | 99,946 | 70,842 | |||||||||||||||||||||||||||||||||||||
Affordable Properties: |
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Baldwin Oaks |
Mid Rise | Oct-99 | Parsippany, NJ | 1980 | 251 | 746 | 8,516 | 1,998 | 746 | 10,514 | 11,260 | (6,245 | ) | 5,015 | 12,972 | |||||||||||||||||||||||||||||||||
Baldwin Towers |
High Rise | Jan-06 | Pittsburgh, PA | 1983 | 99 | 398 | 5,256 | 202 | 398 | 5,458 | 5,856 | (4,002 | ) | 1,854 | 1,458 | |||||||||||||||||||||||||||||||||
Bloomsburg Towers |
Mid Rise | Jan-06 | Bloomsburg, PA | 1981 | 75 | 1 | 4,128 | 351 | 1 | 4,479 | 4,480 | (2,761 | ) | 1,719 | 1,553 | |||||||||||||||||||||||||||||||||
Campbell Heights |
High Rise | Oct-02 | Washington, D.C. | 1978 | 171 | 750 | 6,719 | 859 | 750 | 7,578 | 8,328 | (3,062 | ) | 5,266 | 15,449 | |||||||||||||||||||||||||||||||||
Cherry Ridge Terrace |
Garden | Mar-02 | Northern Cambria, PA | 1983 | 62 | 372 | 1,490 | 906 | 372 | 2,396 | 2,768 | (852 | ) | 1,916 | 795 | |||||||||||||||||||||||||||||||||
Hillside Village |
Town Home | Jan-06 | Catawissa, PA | 1981 | 50 | 31 | 2,643 | 186 | 31 | 2,829 | 2,860 | (1,795 | ) | 1,065 | 1,089 | |||||||||||||||||||||||||||||||||
Hudson Terrace |
Garden | Jan-06 | Hudson, NY | 1973 | 168 | 647 | 5,025 | 584 | 647 | 5,609 | 6,256 | (3,813 | ) | 2,443 | 1,044 | |||||||||||||||||||||||||||||||||
Lodge Run |
Mid Rise | Jan-06 | Portage, PA | 1983 | 31 | 274 | 1,211 | 377 | 274 | 1,588 | 1,862 | (1,259 | ) | 603 | 363 | |||||||||||||||||||||||||||||||||
Morrisania II |
High Rise | Jan-06 | Bronx, NY | 1979 | 203 | 659 | 15,783 | 1,710 | 659 | 17,493 | 18,152 | (10,840 | ) | 7,312 | 8,144 | |||||||||||||||||||||||||||||||||
New Vistas I |
Garden | Jan-06 | Chicago, IL | 1925 | 148 | 1,448 | 6,121 | 380 | 1,448 | 6,501 | 7,949 | (5,577 | ) | 2,372 | 1,386 | |||||||||||||||||||||||||||||||||
Oxford Terrace IV |
Town Home | Oct-07 | Indianapolis, IN | 1994 | 48 | 247 | 1,410 | 607 | 247 | 2,017 | 2,264 | (1,057 | ) | 1,207 | 1,261 | |||||||||||||||||||||||||||||||||
Spring Manor |
Mid Rise | Jan-06 | Holidaysburg, PA | 1983 | 51 | 608 | 2,083 | 425 | 608 | 2,508 | 3,116 | (2,168 | ) | 948 | 631 | |||||||||||||||||||||||||||||||||
Stonegate Village |
Garden | Oct-00 | New Castle, IN | 1970 | 122 | 313 | 1,895 | 1,342 | 308 | 3,242 | 3,550 | (1,344 | ) | 2,206 | 284 | |||||||||||||||||||||||||||||||||
Total Affrodable Properties: |
1,479 | 6,494 | 62,280 | 9,927 | 6,489 | 72,212 | 78,701 | (44,775 | ) | 33,926 | 46,429 | |||||||||||||||||||||||||||||||||||||
Other (4) |
| | | 78 | 1 | 77 | 78 | (63 | ) | 15 | | |||||||||||||||||||||||||||||||||||||
Total Discontinued Operations |
3,793 | 28,843 | 148,716 | 54,125 | 29,167 | 202,517 | 231,684 | (97,797 | ) | 133,887 | 117,271 | |||||||||||||||||||||||||||||||||||||
Total Continuing and Discontinued Operations |
95,202 | 2,132,176 | 4,908,060 | 2,678,741 | 2,190,177 | 7,528,801 | 9,718,978 | (2,723,339 | ) | 6,995,639 | 5,576,430 | |||||||||||||||||||||||||||||||||||||
(1) | Date we acquired the property or first consolidated the partnership which owns the property. |
|
(2) | Initial cost includes the tendering costs to acquire the noncontrolling interest share of our
consolidated real estate partnerships. |
|
(3) | Costs capitalized subsequent to consolidation includes costs capitalized since acquisition or
first consolidation of the partnership/property. |
|
(4) | Other includes land parcels, commercial properties and other related costs. |
|
(5) | The aggregate cost of land and depreciable propertyfor federal income tax purposes was
approximately $8.0 billion at December 31, 2009. |
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AIMCO PROPERTIES, L.P.
SCHEDULE III: REAL ESTATE AND ACCUMULATED DEPRECIATION
For the Years Ended December 31, 2009, 2008 and 2007
(In Thousands)
SCHEDULE III: REAL ESTATE AND ACCUMULATED DEPRECIATION
For the Years Ended December 31, 2009, 2008 and 2007
(In Thousands)
2009 | 2008 | 2007 | ||||||||||
Real Estate |
||||||||||||
Balance at beginning of year |
$ | 11,000,496 | $ | 12,420,200 | $ | 12,011,693 | ||||||
Additions during the year: |
||||||||||||
Newly consolidated assets and
acquisition of limited
partnership interests (1) |
19,683 | 31,447 | 31,572 | |||||||||
Acquisitions |
| 107,445 | 233,059 | |||||||||
Capital expenditures |
275,444 | 665,233 | 689,719 | |||||||||
Deductions during the year: |
||||||||||||
Casualty and other write-offs (2) |
(43,134 | ) | (130,595 | ) | (24,594 | ) | ||||||
Sales |
(1,533,511 | ) | (2,093,234 | ) | (521,249 | ) | ||||||
Balance at end of year |
$ | 9,718,978 | $ | 11,000,496 | $ | 12,420,200 | ||||||
Accumulated Depreciation |
||||||||||||
Balance at beginning of year |
$ | 2,814,992 | $ | 3,047,211 | $ | 2,900,909 | ||||||
Additions during the year: |
||||||||||||
Depreciation |
478,550 | 497,395 | 477,725 | |||||||||
Newly consolidated assets and
acquisition of limited
partnership interests (1) |
(2,763 | ) | (22,256 | ) | (128,272 | ) | ||||||
Deductions during the year: |
||||||||||||
Casualty and other write-offs |
(5,200 | ) | (1,838 | ) | (5,280 | ) | ||||||
Sales |
(562,240 | ) | (705,520 | ) | (197,871 | ) | ||||||
Balance at end of year |
$ | 2,723,339 | $ | 2,814,992 | $ | 3,047,211 | ||||||
(1) | Includes the effect of newly consolidated assets, acquisition of limited partnership
interests and related activity. |
|
(2) | Casualty and other write-offs in 2008 include impairments totaling $91.1 million
related to our Lincoln Place and Pacific Bay Vistas properties. |
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