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8-K - FORM 8-K - APARTMENT INVESTMENT & MANAGEMENT COc23724e8vk.htm
Exhibit 99.1
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Page  
       
 
  1    
Earnings Release
  7    
Consolidated Statements of Operations
  9    
Consolidated Balance Sheets
  10    
Schedule 1a — Funds from Operations (3Q 2011 v. 3Q 2010)
  12    
Schedule 1b — Funds from Operations (YTD 3Q 2011 v. YTD 3Q 2010)
  14    
Schedule 2 — Portfolio Summary
  15    
Schedule 3 — Net Asset Value Supplemental Information
  17    
Schedule 4 — Property Debt Information
  19    
Schedule 5 — Share Data
  20    
Schedule 6a — Conventional Same Store Operating Results (3Q 2011 v. 3Q 2010)
  21    
Schedule 6b — Conventional Same Store Operating Results (3Q 2011 v. 2Q 2011)
  22    
Schedule 6c — Conventional Same Store Operating Results (YTD 3Q 2011 v. YTD 3Q 2010)
  23    
Schedule 7a — Total Conventional Portfolio Data by Market (3Q 2011 v. 3Q 2010)
  24    
Schedule 7b — Total Conventional Portfolio Data by Market (2Q 2011)
  25    
Schedule 8 — Property Disposition and Acquisition Activity
  26    
Schedule 9 — Capital Additions
  27    
Glossary and Reconciliations
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Aimco Reports Third Quarter 2011 Results
Denver, Colorado, October 28, 2011 — Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today its third quarter and year-to-date 2011 results.
Chairman and Chief Executive Officer Terry Considine comments: “Aimco’s business was good during the third quarter with strong rental rate growth and real estate investments in both Northern and Southern California. Going into the fourth quarter, we remain focused on operating our properties well, reducing off-site costs, lowering our cost of leverage and making accretive investments.”
Chief Financial Officer Ernie Freedman adds: “Year-to-date, Aimco’s Pro forma FFO of $1.22 per share, excluding one-time items, is up 11% compared to last year. Rental rate growth and diligent operating cost management have provided for Total Same Store NOI growth of 5.8% and off-site costs are down approximately 10% year-to-date. We are establishing fourth quarter guidance of $0.39 to $0.43 per share and narrowing our full year guidance range from $1.45 to $1.51 per share to $1.46 to $1.50 per share.”
Financial Results
Pro forma FFO, Excluding One-Time Items, Up 11% Year-to-Date*
                                 
    THIRD QUARTER     YEAR-TO-DATE  
    2011     2010     2011     2010  
Net loss per share
  $ (0.12 )   $ (0.25 )   $ (0.67 )   $ (0.75 )
Funds from Operations (FFO)
  $ 0.36     $ 0.42     $ 1.01     $ 1.07  
Add back (deduct) Aimco’s share of operating real estate impairment losses (recoveries)
  $ 0.04     $ (0.01 )   $ 0.08     $ 0.09  
Add back (deduct) Aimco’s share of preferred equity redemption related amounts
  $ 0.01     $ (0.01 )   $ (0.02 )   $ (0.03 )
Pro forma Funds from Operations (Pro forma FFO)
  $ 0.41     $ 0.40     $ 1.07     $ 1.13  
Deduct Aimco’s share of Capital Replacements
  $ (0.17 )   $ (0.14 )   $ (0.40 )   $ (0.38 )
Adjusted Funds from Operations (AFFO)
  $ 0.24     $ 0.26     $ 0.67     $ 0.75  
*  
Year-to-date 2011 Pro forma FFO of $1.07 per share includes a one-time charge of $0.15 per share related to debt prepayment penalties and write-off of deferred loan costs incurred in connection with a refinancing and securitization transaction completed during the second quarter. Year-to-date 2010 Pro forma FFO of $1.13 per share includes a net benefit of $0.03 per share related to several, mostly offsetting, one-time items during second quarter 2010. Excluding these one-time items from each period, year-to-date 2011 Pro forma FFO increased 11% when compared to the same period last year.
Net loss — Net loss attributable to Aimco common stockholders for the quarter was $14.8 million, compared to net loss of $28.5 million for third quarter 2010. Third quarter 2011 net loss decreased as compared to third quarter 2010 primarily due to: an increase in net operating income of our properties included in continuing operations, reflecting improved operations; an increase in income from discontinued operations, net of noncontrolling interest allocations, primarily due to an increase in gains on dispositions of real estate; and a decrease in depreciation and amortization expense.
Funds from Operations — FFO is a non-GAAP financial measure defined in the glossary in Aimco’s Supplemental Information (the Glossary). FFO calculated in accordance with the definition prescribed by the National Association of Real Estate Investment Trusts (NAREIT) was $43.6 million, or $0.36 per share, compared to $48.9 million, or $0.42 per share, in third quarter 2010. Pro forma FFO, which represents FFO as prescribed by NAREIT but excludes operating real estate impairment losses and preferred equity redemption related amounts, was $49.7 million, or $0.41 per share, compared to $46.7 million, or $0.40 per share, in third quarter 2010.
     
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Property Operations
Property operating results discussed below, including property net operating income (NOI), relate to properties that Aimco owns and manages, and that are classified within continuing operations. To ensure comparability between periods, results are based on Aimco’s current period ownership. See the Glossary for property definitions and reconciliation of non-GAAP measures and Schedules 1 and 2 in the Supplemental Information for financial and statistical information for these portfolios.
Diversified Operating Portfolio — Aimco’s property operations consist primarily of Conventional, with some Affordable, real estate operations. Conventional real estate operations relate to Aimco’s diversified portfolio of market rate apartment communities and include Same Store Properties, Redevelopment Properties, Acquisition Properties and Other Properties.
Affordable real estate operations consist of Aimco’s portfolio of properties with rents that are generally paid, in whole or in part, by a government agency. Affordable properties tend to have more stable rents and higher occupancy than Conventional properties due to government rent payments and thus are less affected by market fluctuations.
Total Same-Store NOI Up 5.8% Year-to-Date
                                                                 
    THIRD QUARTER     YEAR-TO-DATE  
            Year-over-year Variance     Year-over-year Variance  
    % NOI     Revenue     Expenses     NOI     % NOI     Revenue     Expenses     NOI  
Conventional Same Store
    80 %     3.5 %     4.3 %     3.0 %     79 %     2.5 %     -1.3 %     4.9 %
Affordable Same Store
    13 %     3.6 %     -2.8 %     8.6 %     12 %     4.2 %     -5.5 %     12.4 %
Total Same Store
    93 %     3.5 %     3.1 %     3.8 %     91 %     2.7 %     -2.0 %     5.8 %
 
                                                               
Other Conventional
    7 %     -4.2 %     1.7 %     -9.1 %     8 %     -0.6 %     0.8 %     -1.7 %
Affordable Redevelopment
                            1 %     5.7 %     6.3 %     5.4 %
Total Portfolio
    100 %     2.8 %     2.9 %     2.8 %     100 %     2.5 %     -1.6 %     5.2 %
Conventional Same Store Results — In third quarter 2011, the Conventional Same Store portfolio included 162 communities with 57,209 units, in which Aimco had a weighted average ownership of 94%.
                                                                 
    THIRD QUARTER     THIRD QUARTER     YEAR-TO-DATE  
    Year-over-year     Sequential     Year-over-year  
    2011     2010     Variance     2nd Qtr     Variance     2011     2010     Variance  
Average Daily Occupancy
    95.2 %     96.0 %     -0.8 %     95.9 %     -0.7 %     95.9 %     95.9 %      
Average Rent Per Unit
  $ 1,094     $ 1,061       3.1 %   $ 1,078       1.5 %   $ 1,086     $ 1,067       1.8 %
 
                                                               
$ in Millions
                                                               
Revenue
  $ 186.7     $ 180.4       3.5 %   $ 183.8       1.6 %   $ 548.0     $ 534.6       2.5 %
Expenses
    (70.1 )     (67.2 )     4.3 %     (66.6 )     5.3 %     (202.0 )     (204.7 )     -1.3 %
NOI
  $ 116.6     $ 113.2       3.0 %   $ 117.2       -0.6 %   $ 346.0     $ 329.9       4.9 %
     
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Rental Rates Accelerating
                                 
    THIRD     SECOND     FIRST        
    QUARTER     QUARTER     QUARTER     YEAR-TO-DATE  
 
                               
New lease
    6.1 %     5.1 %     1.9 %     4.7 %
Renewal
    5.6 %     3.6 %     3.0 %     4.4 %
Weighted average
    5.8 %     4.3 %     2.5 %     4.6 %
Aimco measures changes in rental rates by comparing, on a lease-by-lease basis, the rate on a newly executed lease to the rate on the expiring lease for that same apartment. Newly executed leases are classified as either a new lease, where a vacant apartment is leased to a new customer, or a renewal of an existing lease.
Refer to Supplemental Schedules 6a through 6c for additional details on Conventional Same Store operating results.
Affordable Same Store Results — In third quarter 2011, the Affordable Same Store portfolio included 144 communities with 18,212 units, in which Aimco had a weighted average ownership of 70%. For third quarter 2011, average month-end occupancy for the affordable portfolio was 97.6%, a decrease of 0.2% from third quarter 2010, while average rent per unit increased 3.4% from $814 to $842 per unit.
Portfolio
Aimco’s portfolio strategy focuses on B/B+ quality Conventional apartment communities located in the 20 largest U.S. markets as measured by total apartment value, with a target capital allocation of 10% to Affordable apartment communities.
Aimco measures Conventional Property asset quality based on average rents compared to local market average rents as reported by REIS, a third-party provider of commercial real estate performance information and analysis. Aimco defines A-quality assets as those with rents greater than 125% of local market average, B-quality assets as those with rents 90% to 125% of local market average and C-quality assets as those with rents less than 90% of local market average. For second quarter 2011, the most recent period for which REIS information is available, Aimco’s Conventional Property rents averaged approximately 100% of local market average rents.
For third quarter 2011, average rents for the Conventional portfolio were $1,112 per unit, a 6.9% increase compared to third quarter 2010, as a result of year-over-year rent growth and the sale of Conventional properties during 2010 and 2011 with rents substantially lower than those of the retained portfolio.
Aimco’s geographic allocation strategy focuses on the 20 largest U.S. markets. Aimco believes these markets to be deep, relatively liquid and possessing desirable long-term growth characteristics. These target markets are primarily coastal markets, and also include a number of Sun Belt cities and Chicago, Illinois. In executing this strategy, Aimco expects to reduce its investment in markets outside the 20 largest markets and to increase its investment in the 20 largest markets through redevelopment, acquisitions and increasing ownership in properties Aimco already owns through limited partnerships. During third quarter 2011, net operating income generated by Conventional properties located in Aimco’s target markets accounted for 85% of total Conventional Property net operating income, an increase of 2% compared to third quarter 2010.
Acquisitions — As previously announced, during third quarter 2011, Aimco acquired a vacant, 126-unit property located in San Francisco’s Marin County submarket. Aimco intends to redevelop the property, increasing its total investment in the property to approximately $65.0 million. Additionally, Aimco also increased its investment in San Diego, another target market, by acquiring approximately one half of the ownership of four entities owning four contiguous properties with 142 units located in La Jolla, California and overlooking Tourmaline Beach.
     
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Dispositions — In third quarter 2011, Aimco sold nine Conventional properties and three Affordable properties with 2,395 and 266 units, respectively, for $154.5 million in gross proceeds. Aimco’s share of net proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $60.4 million.
See Supplemental Schedules 7a and 7b for additional details regarding Aimco’s Conventional portfolio quality and capital allocation, and Supplemental Schedule 8 for additional details on acquisition and disposition activity.
Balance Sheet and Liquidity
Components of Aimco Leverage
                                 
    AS OF SEPTEMBER 30, 2011  
                    Weighted Avg     Weighted Avg  
    Amount     % of Total     Maturity (Yrs)     Rate  
Aimco leverage ($ in millions)
                               
Aimco’s share of long-term, non-recourse property debt
  $ 4,746.2       86 %     8.2       5.47 %
Revolving credit facility
    26.2       <1 %     1.6       5.87 %
Subtotal debt
  $ 4,772.4       86 %     8.2       5.48 %
Preferred securities
    751.0       14 %   Perpetual     7.46 %
Total leverage
  $ 5,523.4       100 %     n/a       5.75 %
See Supplemental Schedule 4 for additional details about Aimco’s non-recourse property debt and Supplemental Schedule 5 for information related to Aimco’s preferred securities.
Revolving Credit Facility — Aimco’s recourse debt at September 30, 2011, was limited to its revolving credit facility, which Aimco uses for working capital purposes and to secure letters of credit. At the end of third quarter, Aimco had $26.2 million outstanding on its revolving credit facility and available capacity was $247.8 million, net of $26.0 million of letters of credit backed by the facility.
Coverage Ratios — Aimco’s third quarter EBITDA Coverage of Interest and EBITDA Coverage of Interest and Preferred Dividends ratios were 2.14:1 and 1.75:1, compared to third quarter 2010 ratios of 2.05:1 and 1.67:1, respectively. Separately, in connection with its revolving credit facility, Aimco is subject to Debt Service and Fixed Charge Coverage covenants, as defined in the Glossary. For third quarter 2011, Aimco’s Debt Service and Fixed Charge Coverage ratios were 1.60:1 and 1:36.1, compared to covenants in place during the quarter of 1.40:1 and 1:20.1, respectively, and third quarter 2010 ratios of 1.58:1 and 1.34:1. Aimco expects to remain in compliance with these covenants.
Equity Activity — During third quarter 2011, Aimco issued 0.1 million shares under its Common Stock At-the-Market (Common Stock ATM) offering program at a weighted average price of $26.33 per share, generating gross proceeds of $3.0 million. Year-to-date, Aimco has issued 2.9 million shares under its Common Stock ATM offering program at a weighted average price of $25.27 per share, generating gross proceeds of $73.6 million, which were used to match-fund investment activity including partnership transactions, acquisitions, redevelopment and other capital investment activities.
As previously announced, on July 26, 2011, Aimco priced an underwritten public offering of 800,000 shares of its 7.00% Class Z Cumulative Preferred Stock at $24.25 per share, equating to a yield of 7.216%, for gross proceeds to Aimco of approximately $19.4 million. During third quarter 2011, Aimco also issued approximately 23,800 shares of Class Z Cumulative Preferred Stock through its Class Z Preferred Stock At-the-Market offering program (Class Z ATM) at $24.21 per share, equating to a yield of 7.228%, for gross proceeds to Aimco of approximately $0.6 million. We intend to accumulate the proceeds from further ATM issuances of our Class Z Preferred Stock and use them for further redemptions of outstanding preferred securities with higher rates.
     
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Also during third quarter 2011, Aimco redeemed 862,500 shares, or 25% of the amount outstanding, of its Class V Cumulative Preferred Stock. This redemption was for cash at a price equal to $25.00 per share, or $21.6 million in aggregate, plus accumulated and unpaid dividends of approximately $0.2 million.
Dividend — Aimco’s Board of Directors declared a cash dividend of $0.12 per share on its Class A Common Stock for the quarter ended September 30, 2011. The dividend is payable November 30, 2011 to shareholders of record on November 18, 2011.
2011 Outlook
         
    FOURTH    
    QUARTER   FULL YEAR *
 
Net loss per share
  -$0.28 to -$0.24   -$0.95 to -$0.91  
Pro forma FFO per share
  $0.39 to $0.43   $1.46 to $1.50  
 
       
Conventional Same Store Operating Measures
       
NOI change compared to prior quarter 2011
  3.0% to 4.0%    
NOI change compared to same period 2010
  4.0% to 5.0%   5.0%
Average daily occupancy
      95.7%
Revenue change compared to 2010
      2.7%
Expense change compared to 2010
      -1.0%
 
       
Affordable Same Store NOI change compared to 2010
      11.0%
 
       
Total Same Store NOI change compared to 2010
  4.5% to 5.5%   5.5%
 
       
Total Portfolio NOI change compared to 2010
      4.5%
*  
Full year guidance includes a one-time charge of $0.15 per share related to debt prepayment penalties and write-off of deferred loan costs incurred in connection with a refinancing and securitization transaction completed during second quarter.
Earnings Conference Call
Live Conference Call
Friday, October 28, 2011 at 1:00 p.m. EDT
Domestic Dial-In Number: 1-866-843-0890
International Dial-In Number: 1-412-317-9250
Passcode: 4623268
Conference Call Replay
Available until 9:00 a.m. EDT on November 7, 2011
Domestic Dial-In Number: 1-877-344-7529
International Dial-In Number: 1-412-317-0088
Passcode: 10004851
Live webcast and replay: www.aimco.com/CorporateInformation/About/Financial/news.aspx
Supplemental Information
The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco’s website www.aimco.com/CorporateInformation/About/Financial/QEarnRelease.aspx.
     
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Glossary & Reconciliations of Non-GAAP Financial and Operating Measures
Financial and operating measures found in this Earnings Release and the Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. These measures are defined in the glossary in the Supplemental Information and, where appropriate, reconciled to the most comparable GAAP measures.
Forward-looking Statements
This Earnings Release and Supplemental Information contain forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically forecasts of fourth quarter and full year 2011 results. These forward-looking statements are based on management’s judgment as of this date and include certain risks and uncertainties. Risks and uncertainties include, but are not limited to, Aimco’s ability to maintain current or meet projected occupancy, rental rates and property operating results. Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond the control of Aimco, including, without limitation: financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; the timing of acquisitions and dispositions; insurance risk, including the cost of insurance; natural disasters and severe weather such as hurricanes; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; energy costs; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by Aimco. In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code and depends on our ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership. Readers should carefully review Aimco’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Aimco’s Annual Report on Form 10-K for the year ended December 31, 2010, and the other documents Aimco files from time to time with the Securities and Exchange Commission. These forward-looking statements reflect management’s judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances. This press release does not constitute an offer of securities for sale.
About Aimco
Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the 20 largest markets in the United States. Aimco is one of the country’s largest owners and operators of both conventional and affordable apartments, with 565 communities serving approximately 500,000 residents in 38 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.
Contact
Elizabeth Coalson, Vice President Investor Relations
Investor Relations 303-691-4350, Investor@Aimco.com
     
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Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2011     2010     2011     2010  
REVENUES:
                               
Rental and other property revenues
  $ 269,525     $ 263,481     $ 805,749     $ 788,057  
Asset management and tax credit revenues
    11,885       9,711       28,772       24,208  
 
                       
Total revenues
    281,410       273,192       834,521       812,265  
 
                       
 
                               
OPERATING EXPENSES:
                               
Property operating expenses
    119,903       116,786       356,634       362,784  
Investment management expenses
    2,386       2,609       7,604       10,979  
Depreciation and amortization
    97,321       101,704       287,739       305,066  
Provision for operating real estate impairment losses
    149             149        
General and administrative expenses
    12,664       12,096       36,162       39,015  
Other expense, net
    4,870       4,416       13,952       2,173  
 
                       
Total operating expenses
    237,293       237,611       702,240       720,017  
 
                       
 
                               
Operating income
    44,117       35,581       132,281       92,248  
 
                               
Interest income
    3,273       2,362       7,771       7,437  
Recovery of (provision for) losses on notes receivable
    233       (6 )     180       (284 )
Interest expense
    (73,152 )     (74,544 )     (243,169 )     (225,305 )
Equity in losses of unconsolidated real estate partnerships
    (4,987 )     (15,653 )     (8,432 )     (11,799 )
Gain on dispositions of unconsolidated real estate and other, net
    3,095       883       5,115       5,368  
 
                       
 
                               
Loss before income taxes and discontinued operations
    (27,421 )     (51,377 )     (106,254 )     (132,335 )
 
                               
Income tax benefit
    1,110       4,385       5,704       11,042  
 
                       
 
                               
Loss from continuing operations
    (26,311 )     (46,992 )     (100,550 )     (121,293 )
 
                               
Income from discontinued operations, net [1]
    30,968       18,510       50,959       65,881  
 
                       
 
                               
Net income (loss)
    4,657       (28,482 )     (49,591 )     (55,412 )
Noncontrolling interests:
                               
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships
    (5,464 )     11,213       4,612       1,795  
Net (income) loss attributable to preferred noncontrolling interests in Aimco Operating Partnership
    (1,670 )     84       (5,012 )     (3,292 )
Net loss attributable to common noncontrolling interests in Aimco Operating Partnership
    1,035       2,263       5,838       6,644  
 
                       
Total noncontrolling interests
    (6,099 )     13,560       5,438       5,147  
 
                       
Net loss attributable to Aimco
    (1,442 )     (14,922 )     (44,153 )     (50,265 )
Net income attributable to Aimco preferred stockholders
    (13,301 )     (13,576 )     (35,429 )     (36,626 )
Net income attributable to participating securities
    (58 )     (2 )     (169 )      
 
                       
Net loss attributable to Aimco common stockholders
  $ (14,801 )   $ (28,500 )   $ (79,751 )   $ (86,891 )
 
                       
 
                               
Weighted average common shares outstanding — basic and diluted
    120,339       116,434       118,939       116,264  
 
                       
 
                               
Earnings (loss) per common share — basic and diluted:
                               
Loss from continuing operations attributable to Aimco common stockholders
  $ (0.26 )   $ (0.35 )   $ (0.92 )   $ (1.10 )
Income from discontinued operations attributable to Aimco common stockholders
    0.14       0.10       0.25       0.35  
 
                       
Net loss attributable to Aimco common stockholders
  $ (0.12 )   $ (0.25 )   $ (0.67 )   $ (0.75 )
 
                       
     
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Consolidated Statements of Operations (continued)
Notes to Consolidated Statements of Operations
[1]  
Income from discontinued operations consists of the following (in thousands):
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2011     2010     2011     2010  
Rental and other property revenues
  $ 3,428     $ 21,202     $ 23,917     $ 77,596  
Property operating expenses
    (2,816 )     (12,489 )     (13,355 )     (42,761 )
Depreciation and amortization
    (931 )     (6,340 )     (7,695 )     (21,909 )
Provision for operating real estate impairment losses
    (5,522 )     (1,429 )     (11,829 )     (9,550 )
 
                       
Operating (loss) income
    (5,841 )     944       (8,962 )     3,376  
Interest income
    44       111       361       298  
Interest expense
    (862 )     (4,082 )     (5,252 )     (14,209 )
 
                       
Loss before gain on dispositions of real estate and income taxes
    (6,659 )     (3,027 )     (13,853 )     (10,535 )
Gain on dispositions of real estate
    37,467       21,084       64,901       74,406  
Income tax benefit (expense)
    160       453       (89 )     2,010  
 
                       
Income from discontinued operations, net
  $ 30,968     $ 18,510     $ 50,959     $ 65,881  
 
                       
 
Income from discontinued operations attributable to:
                               
Noncontrolling interests in consolidated real estate partnerships
  $ (12,734 )   $ (5,205 )   $ (18,689 )   $ (21,372 )
Noncontrolling interests in Aimco Operating Partnership
    (1,274 )     (890 )     (2,211 )     (2,983 )
 
                       
Total noncontrolling interests
    (14,008 )     (6,095 )     (20,900 )     (24,355 )
 
                       
Income from discontinued operations attributable to Aimco
  $ 16,960     $ 12,415     $ 30,059     $ 41,526  
 
                       
     
(IMAGE)   8

 

 


 

(IMAGE)
Consolidated Balance Sheets
(in thousands) (unaudited)
                 
    September 30, 2011     December 31, 2010  
ASSETS
               
Buildings and improvements
  $ 6,959,172     $ 6,979,467  
Land
    2,097,137       2,084,987  
 
           
Total real estate
    9,056,309       9,064,454  
Accumulated depreciation
    (2,876,894 )     (2,766,897 )
 
           
Net real estate
    6,179,415       6,297,557  
Cash and cash equivalents
    75,831       111,325  
Restricted cash
    209,481       200,025  
Accounts receivable, net
    40,848       49,855  
Deferred financing costs, net
    46,670       46,454  
Notes receivable, net
    114,630       116,726  
Investment in unconsolidated real estate partnerships
    63,942       59,282  
Other assets
    250,296       199,886  
Deferred income tax assets, net
    61,589       58,736  
Assets held for sale
          238,720  
 
           
Total assets
  $ 7,042,702     $ 7,378,566  
 
           
 
LIABILITIES AND EQUITY
               
Non-recourse property debt
  $ 5,233,525     $ 5,291,612  
Revolving credit facility borrowings
    26,200        
 
           
Total indebtedness
    5,259,725       5,291,612  
Accounts payable
    24,999       27,322  
Accrued liabilities and other
    278,606       297,121  
Deferred income
    150,357       150,453  
Security deposits
    34,516       33,829  
Liabilities related to assets held for sale
          168,029  
 
           
Total liabilities
    5,748,203       5,968,366  
 
           
 
Preferred noncontrolling interests in Aimco Operating Partnership
    83,385       83,428  
Preferred stock subject to repurchase agreement
    10,000       20,000  
 
Equity:
               
Perpetual Preferred Stock
    656,015       657,601  
Class A Common Stock
    1,209       1,176  
Additional paid-in capital
    3,106,079       3,070,296  
Accumulated other comprehensive loss
    (8,312 )     (2,076 )
Distributions in excess of earnings
    (2,803,679 )     (2,680,955 )
 
           
Total Aimco equity
    951,312       1,046,042  
 
           
Noncontrolling interests in consolidated real estate partnerships
    279,997       291,458  
Common noncontrolling interests in Aimco Operating Partnership
    (30,195 )     (30,728 )
 
           
Total equity
    1,201,114       1,306,772  
 
           
Total liabilities and equity
  $ 7,042,702     $ 7,378,566  
 
           
 
               
     
(IMAGE)   9

 

 


 

(IMAGE)
Supplemental Schedule 1 (a)
     
Funds From Operations   (page 1 of 2)
Three Months Ended September 30, 2011 Compared to Three Months Ended September 30, 2010    
(in thousands) (unaudited)    
                                                                 
    Three Months Ended September 30, 2011     Three Months Ended September 30, 2010  
            Proportionate                             Proportionate              
            Share of                             Share of              
    Consolidated     Unconsolidated     Noncontrolling     Proportionate     Consolidated     Unconsolidated     Noncontrolling     Proportionate  
    Amount     Partnerships     Interests     Amount     Amount     Partnerships     Interests     Amount  
Real estate operations:
                                                               
Rental and other property revenues
                                                               
Conventional Same Store
  $ 200,556     $     $ (13,591 )   $ 186,965     $ 193,974     $     $ (17,086 )   $ 176,888  
Affordable Same Store
    44,132       174       (11,591 )     32,715       42,686       183       (11,301 )     31,568  
 
                                               
Total Same Store
    244,688       174       (25,182 )     219,680       236,660       183       (28,387 )     208,456  
Other Conventional [1]
    19,954       1,739       (977 )     20,716       21,236       1,196       (1,340 )     21,092  
Other Affordable
    4,689       12,370       (14,078 )     2,981       4,935       2,180       (3,726 )     3,389  
Property management revenues, primarily from affiliates
    194       (176 )     1,850       1,868       650       (151 )     1,717       2,216  
 
                                               
Total rental and other property revenues
    269,525       14,107       (38,387 )     245,245       263,481       3,408       (31,736 )     235,153  
 
                                                               
Property operating expenses
                                                               
Conventional Same Store
    75,058             (5,144 )     69,914       72,372             (6,707 )     65,665  
Affordable Same Store
    18,856       115       (5,594 )     13,377       19,084       121       (5,447 )     13,758  
 
                                               
Total Same Store
    93,914       115       (10,738 )     83,291       91,456       121       (12,154 )     79,423  
Other Conventional [1]
    9,833       867       (578 )     10,122       9,675       655       (627 )     9,703  
Other Affordable
    2,635       7,024       (8,062 )     1,597       2,663       1,228       (1,987 )     1,904  
Casualties
    2,782             (315 )     2,467       1,781       (5 )     305       2,081  
Property management expenses
    10,739                   10,739       11,211                   11,211  
 
                                               
Total property operating expenses
    119,903       8,006       (19,693 )     108,216       116,786       1,999       (14,463 )     104,322  
 
                                               
Net real estate operations
    149,622       6,101       (18,694 )     137,029       146,695       1,409       (17,273 )     130,831  
 
                                               
 
                                                               
Amortization of deferred tax credit income
    7,038                   7,038       7,129                   7,129  
Asset management revenues
    (19 )           1,363       1,344       75       (67 )     866       874  
Non-recurring revenues [2]
    4,866             489       5,355       2,507             10       2,517  
 
                                               
Total asset management and tax credit revenues
    11,885             1,852       13,737       9,711       (67 )     876       10,520  
 
                                                               
Investment management expenses
    (2,386 )                 (2,386 )     (2,609 )                 (2,609 )
Depreciation and amortization related to non-real estate assets
    (3,372 )     (1 )     48       (3,325 )     (3,498 )     (1 )     54       (3,445 )
General and administrative expenses
    (12,664 )     (6 )     229       (12,441 )     (12,096 )     (7 )     154       (11,949 )
Other (expense) income, net
    (4,870 )     (253 )     1,164       (3,959 )     (4,416 )     (6,070 )     6,913       (3,573 )
Interest income
    3,273       10       187       3,470       2,362       (55 )     725       3,032  
Recovery of (provision for) losses on notes receivable
    233             32       265       (6 )           244       238  
Interest expense
    (73,152 )     (2,942 )     10,005       (66,089 )     (74,544 )     (702 )     9,522       (65,724 )
Income tax benefit
    1,115                   1,115       4,390                   4,390  
Discontinued operations, net of non-FFO items
    (74 )           382       308       5,109             (1,364 )     3,745  
Preferred dividends and distributions
    (14,183 )                 (14,183 )     (15,257 )                 (15,257 )
Preferred redemption related amounts
    (788 )                 (788 )     1,765                   1,765  
Operating real estate impairment (losses) recoveries, net
    (5,722 )     (4,523 )     4,475       (5,770 )     (41 )     (9,958 )     10,696       697  
Common noncontrolling interests in Aimco Operating Partnership
    (3,163 )                 (3,163 )     (3,525 )                 (3,525 )
Amounts allocated to participating securities
    (175 )                 (175 )     (193 )                 (193 )
 
                                               
Funds From Operations
    45,579       (1,614 )     (320 )     43,645       53,847       (15,451 )     10,547       48,943  
 
                                               
Operating real estate impairment losses (recoveries), net
    5,722       4,523       (4,475 )     5,770       41       9,958       (10,696 )     (697 )
Preferred stock redemption related gains
    788                   788       (1,765 )                 (1,765 )
Common noncontrolling interests in Aimco Operating Partnership
    (448     —            (448   172                 172  
Amounts allocated to participating securities
    (24 )                 (24 )     12                   12  
 
                                               
Pro Forma Funds From Operations
  $ 51,617     $ 2,909     $ (4,795 )   $ 49,731     $ 52,307     $ (5,493 )   $ (149 )   $ 46,665  
 
                                               
 
                                                               
            Weighted average shares — diluted FFO     120,670             Weighted average shares — diluted FFO     116,730  
 
                                                               
            Per Share:                   Per Share:        
            Funds From Operations   $ 0.36             Funds From Operations   $ 0.42  
            Pro Forma Funds From Operations   $ 0.41             Pro Forma Funds From Operations   $ 0.40  
     
(IMAGE)   10

 


 

(IMAGE)
Supplemental Schedule 1 (a) (continued)
     
Pro Forma Funds From Operations Reconciliation to GAAP   (page 2 of 2)
Three Months Ended September 30, 2011 Compared to Three Months Ended September 30, 2010    
(in thousands) (unaudited)    
                                                                 
    Three Months Ended September 30, 2011     Three Months Ended September 30, 2010  
            Proportionate                             Proportionate              
            Share of                             Share of              
    Consolidated     Unconsolidated     Noncontrolling     Proportionate     Consolidated     Unconsolidated     Noncontrolling     Proportionate  
    Amount     Partnerships     Interests     Amount     Amount     Partnerships     Interests     Amount  
Pro Forma Funds From Operations
  $ 51,617     $ 2,909     $ (4,795 )   $ 49,731     $ 52,307     $ (5,493 )   $ (149 )   $ 46,665  
 
                                                               
Adjustments related to continuing operations:
                                                               
Depreciation and amortization
    (97,321 )     (3,725 )     11,325       (89,721 )     (101,704 )     (2,492 )     11,251       (92,945 )
Depreciation and amortization related to non-real estate assets
    3,372       1       (48 )     3,325       3,498       1       (54 )     3,445  
Provision for operating real estate impairment losses
    (149 )                 (149 )                        
Income tax benefit on real estate impairment losses
    (14 )                 (14 )                        
Gain on dispositions of and impairments related to unconsolidated entities and other
    3,095       (4,172 )     1,242       165       882       (7,669 )     4,332       (2,455 )
Income tax benefit on gain on dispositions of real estate related to unconsolidated entities
    (6 )                 (6 )     (2 )                 (2 )
 
                                                               
Adjustments related to discontinued operations:
                                                               
Depreciation and amortization
    (931 )           80       (851 )     (6,340 )           1,264       (5,076 )
Depreciation and amortization related to non-real estate assets
    5             (1 )     4       34             (9 )     25  
Provision for operating real estate impairment losses
    (5,522 )                 (5,522 )     (1,429 )           2,287       858  
Gain on dispositions of real estate
    37,467             (13,267 )     24,200       21,084             (7,709 )     13,375  
Income tax expense arising from disposals
    37                   37       48                   48  
 
                                               
 
                                                               
Total adjustments
  $ (59,967 )   $ (7,896 )   $ (669 )   $ (68,532 )   $ (83,929 )   $ (10,160 )   $ 11,362     $ (82,727 )
 
                                                               
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments
    4,646                   4,646       5,616                   5,616  
Amounts allocable to participating securities
    142                   142       181                   181  
Preferred stock redemption related gains
    (788 )                 (788 )     1,765                   1,765  
Equity in losses of unconsolidated real estate partnerships
    (4,987 )     4,987                   (15,653 )     15,653              
Net loss attributable to noncontrolling interests in consolidated real estate partnerships
    (5,464 )           5,464             11,213             (11,213 )      
 
                                               
Net loss attributable to Aimco common stockholders
  $ (14,801 )   $     $     $ (14,801 )   $ (28,500 )   $     $     $ (28,500 )
 
                                               
Notes
     
[1]  
The results for Other Conventional include four acquisition properties and three vacant properties, Lincoln Place, Pacific Bay Vistas (formerly Treetops), and Madera Vista for the periods presented.
 
[2]  
Non-recurring revenues consisted of the following:
                 
    Three Months     Three Months  
    Ended     Ended  
    September 30,     September 30,  
    2011     2010  
Promotes
  $     $ 2,376  
Other GP transactional fees
    3,611       76  
Tax credit syndication fees
    1,255       55  
 
           
Total non-recurring revenues
  $ 4,866     $ 2,507  
 
           
     
(IMAGE)   11

 


 

(IMAGE)
Supplemental Schedule 1 (b)
     
Funds From Operations   (page 1 of 2)
Nine Months Ended September 30, 2011 Compared to Nine Months Ended September 30, 2010    
(in thousands) (unaudited)    
                                                                 
    Nine Months Ended September 30, 2011     Nine Months Ended September 30, 2010  
            Proportionate                             Proportionate              
            Share of                             Share of              
    Consolidated     Unconsolidated     Noncontrolling     Proportionate     Consolidated     Unconsolidated     Noncontrolling     Proportionate  
    Amount     Partnerships     Interests     Amount     Amount     Partnerships     Interests     Amount  
Real estate operations:
                                                               
Rental and other property revenues
                                                               
Conventional Same Store
  $ 594,431     $     $ (41,699 )   $ 552,732     $ 580,197     $     $ (51,180 )   $ 529,017  
Affordable Same Store
    132,077       531       (34,661 )     97,947       126,827       539       (33,535 )     93,831  
 
                                               
Total Same Store
    726,508       531       (76,360 )     650,679       707,024       539       (84,715 )     622,848  
Other Conventional [1]
    62,933       4,126       (3,110 )     63,949       63,847       3,543       (4,007 )     63,383  
Other Affordable
    15,259       31,148       (37,887 )     8,520       15,146       6,842       (13,355 )     8,633  
Property management revenues, primarily from affiliates
    1,049       (490 )     4,926       5,485       2,040       (518 )     5,088       6,610  
 
                                               
Total rental and other property revenues
    805,749       35,315       (112,431 )     728,633       788,057       10,406       (96,989 )     701,474  
 
                                                               
Property operating expenses
                                                               
Conventional Same Store
    219,363             (16,038 )     203,325       222,737             (20,586 )     202,151  
Affordable Same Store
    56,751       401       (16,613 )     40,539       58,830       395       (16,914 )     42,311  
 
                                               
Total Same Store
    276,114       401       (32,651 )     243,864       281,567       395       (37,500 )     244,462  
Other Conventional [1]
    29,964       2,413       (1,541 )     30,836       29,845       2,232       (1,981 )     30,096  
Other Affordable
    8,611       19,397       (23,070 )     4,938       8,351       4,039       (7,362 )     5,028  
Casualties
    10,136       (11 )     24       10,149       7,653       21       642       8,316  
Property management expenses
    31,809                   31,809       35,368                   35,368  
 
                                               
Total property operating expenses
    356,634       22,200       (57,238 )     321,596       362,784       6,687       (46,201 )     323,270  
 
                                               
Net real estate operations
    449,115       13,115       (55,193 )     407,037       425,273       3,719       (50,788 )     378,204  
 
                                               
 
                                                               
Amortization of deferred tax credit income
    21,204                   21,204       20,741                   20,741  
Asset management revenues
    1,504             2,561       4,065       422       (67 )     2,771       3,126  
Non-recurring revenues [2]
    6,064             491       6,555       3,045             247       3,292  
 
                                               
Total asset management and tax credit revenues
    28,772             3,052       31,824       24,208       (67 )     3,018       27,159  
 
                                                               
Investment management expenses
    (7,604 )                 (7,604 )     (10,979 )                 (10,979 )
Depreciation and amortization related to non-real estate assets
    (9,833 )     (3 )     142       (9,694 )     (11,238 )     (4 )     169       (11,073 )
General and administrative expenses
    (36,162 )     (8 )     830       (35,340 )     (39,015 )     (14 )     1,040       (37,989 )
Other (expense) income, net
    (13,952 )     (116 )     5,990       (8,078 )     (2,173 )     (4,029 )     7,402       1,200  
Interest income
    7,771       (105 )     739       8,405       7,437       (140 )     1,928       9,225  
Recovery of (provision for) losses on notes receivable
    180             (1,286 )     (1,106 )     (284 )           (1,721 )     (2,005 )
Interest expense
    (243,169 )     (7,476 )     33,302       (217,343 )     (225,305 )     (2,124 )     29,248       (198,181 )
Gain on disposition of non-depreciable assets
    (69 )                 (69 )                        
Income tax benefit
    5,749                   5,749       11,051                   11,051  
Discontinued operations, net of non-FFO items
    5,766             611       6,377       21,871             (2,338 )     19,533  
Preferred dividends and distributions
    (42,401 )                 (42,401 )     (44,462 )                 (44,462 )
Preferred redemption related amounts
    1,961                   1,961       4,544                   4,544  
Operating real estate impairment losses, net
    (12,472 )     (5,536 )     8,058       (9,950 )     (11,947 )     (11,055 )     11,788       (11,214 )
Common noncontrolling interests in Aimco Operating Partnership
    (8,905 )                 (8,905 )     (9,247 )                 (9,247 )
Amounts allocated to participating securities
    (527 )                 (527 )     (537 )                 (537 )
 
                                               
Funds From Operations
    124,220       (129 )     (3,755 )     120,336       139,197       (13,714 )     (254 )     125,229  
 
                                               
Operating real estate impairment losses, net
    12,472       5,536       (8,058 )     9,950       11,947       11,055       (11,788 )     11,214  
Preferred stock redemption related gains
    (1,961 )                 (1,961 )     (4,544 )                 (4,544 )
Common noncontrolling interests in Aimco Operating Partnership
    (547 )                 (547 )     (464 )                 (464 )
Amounts allocated to participating securities
    (34 )                 (34 )     (33 )                 (33 )
 
                                               
Pro Forma Funds From Operations
  $ 134,150     $ 5,407     $ (11,813 )   $ 127,744     $ 146,103     $ (2,659 )   $ (12,042 )   $ 131,402  
 
                                               
 
                                                               
            Weighted average shares — diluted FFO     119,269             Weighted average shares — diluted FFO     116,574  
 
                                                               
            Per Share:                   Per Share:        
            Funds From Operations   $ 1.01             Funds From Operations   $ 1.07  
            Pro Forma Funds From Operations   $ 1.07             Pro Forma Funds From Operations   $ 1.13  
     
(IMAGE)   12

 


 

(IMAGE)
Supplemental Schedule 1 (b) (continued)
     
Pro Forma Funds From Operations Reconciliation to GAAP   (page 2 of 2)
Nine Months Ended September 30, 2011 Compared to Nine Months Ended September 30, 2010    
(in thousands) (unaudited)    
                                                                 
    Nine Months Ended September 30, 2011     Nine Months Ended September 30, 2010  
            Proportionate                             Proportionate              
            Share of                             Share of              
    Consolidated     Unconsolidated     Noncontrolling     Proportionate     Consolidated     Unconsolidated     Noncontrolling     Proportionate  
    Amount     Partnerships     Interests     Amount     Amount     Partnerships     Interests     Amount  
Pro Forma Funds From Operations
  $ 134,150     $ 5,407     $ (11,813 )   $ 127,744     $ 146,103     $ (2,659 )   $ (12,042 )   $ 131,402  
 
                                                               
Adjustments related to continuing operations:
                                                               
Depreciation and amortization
    (287,739 )     (9,782 )     34,878       (262,643 )     (305,066 )     (4,603 )     34,536       (275,133 )
Depreciation and amortization related to non-real estate assets
    9,833       3       (142 )     9,694       11,238       4       (169 )     11,073  
Provision for operating real estate impairment losses
    (149 )                 (149 )                        
Income tax benefit on real estate impairment losses
    4                   4                          
Gain on dispositions of and impairments related to unconsolidated entities and other
    5,182       (4,060 )     (124 )     998       5,368       (4,541 )     (2,209 )     (1,382 )
Income tax benefit on gain on dispositions of real estate related to unconsolidated entities
    (45 )                 (45 )     (10 )                 (10 )
 
                                                               
Adjustments related to discontinued operations:
                                                               
Depreciation and amortization
    (7,695 )           1,013       (6,682 )     (21,909 )           4,701       (17,208 )
Depreciation and amortization related to non-real estate assets
    35             (6 )     29       116             (1 )     115  
Provision for operating real estate impairment losses
    (11,829 )           2,109       (9,720 )     (9,551 )           (1,468 )     (11,019 )
Gain on dispositions of real estate
    64,901             (21,303 )     43,598       74,406             (21,553 )     52,853  
Income tax (expense) benefit arising from disposals
    (223 )                 (223 )     948                   948  
 
                                               
 
                                                               
Total adjustments
  $ (227,725 )   $ (13,839 )   $ 16,425     $ (225,139 )   $ (244,460 )   $ (9,140 )   $ 13,837     $ (239,763 )
 
                                                               
Common noncontrolling interests in Aimco Operating Partnership’s share of adjustments
    15,291                   15,291       16,355                   16,355  
Amounts allocable to participating securities
    392                   392       571                   571  
Preferred stock redemption related gains
    1,961                   1,961       4,544                   4,544  
Equity in (losses) income of unconsolidated real estate partnerships
    (8,432 )     8,432                   (11,799 )     11,799              
Net loss (income) attributable to noncontrolling interests in consolidated real estate partnerships
    4,612             (4,612 )           1,795             (1,795 )      
 
                                               
Net loss attributable to Aimco common stockholders
  $ (79,751 )   $     $     $ (79,751 )   $ (86,891 )   $     $     $ (86,891 )
 
                                               
Notes
     
[1]  
The results for Other Conventional include four acquisition properties and three vacant properties, Lincoln Place, Pacific Bay Vistas (formerly Treetops), and Madera Vista for the periods presented.
 
[2]  
Non-recurring revenues consisted of the following:
                 
    Nine Months     Nine Months  
    Ended     Ended  
    September 30,     September 30,  
    2011     2010  
Promotes
  $     $ 2,727  
Other GP transactional fees
    4,775       2,492  
Tax credit syndication fees
    1,289       (2,174 )
 
           
Total non-recurring revenues
  $ 6,064     $ 3,045  
 
           
     
(IMAGE)   13

 


 

(IMAGE)
Supplemental Schedule 2
Portfolio Summary
As of September 30, 2011
(unaudited)
                                 
    Number of     Number of     Effective     Average  
    Properties     Units     Units     Ownership  
Owned Real Estate Portfolio:
                               
Conventional Same Store
    162       57,209       53,518       94 %
Affordable Same Store
    144       18,212       12,709       70 %
 
                       
Total Same Store
    306       75,421       66,227       88 %
 
                               
Conventional Redevelopment [1]
    3       1,130       1,130       100 %
Conventional Acquisition
    4       142       72       51 %
Other Conventional
    36       6,300       5,100       81 %
Other Affordable
    57       5,828       1,088       19 %
 
                       
 
                               
Total owned real estate portfolio
    406       88,821       73,617       83 %
 
                       
 
                               
Total Conventional owned real estate portfolio
    205       64,781       59,820       92 %
 
                               
Total Affordable owned real estate portfolio
    201       24,040       13,797       57 %
 
                               
Fee-Managed Portfolio:
                               
Property-Managed for third parties
    1       64                  
Asset-Managed
    158       11,169                  
 
                           
Total fee-managed portfolio
    159       11,233                  
 
                           
 
                               
Total Portfolio
    565       100,054                  
 
                           
     
[1]  
At September 30, 2011 Aimco’s Conventional Redevelopment portfolio included three vacant properties, Lincoln Place, Pacific Bay Vistas (formerly Treetops) and Madera Vista.
     
(IMAGE)   14

 


 

(IMAGE)
Supplemental Schedule 3
     
Net Asset Value Supplemental Information
(in thousands) (unaudited)
  (page 1 of 2)
One measure of stockholder value is Net Asset Value (NAV), which is the estimated fair value of assets, net of debt and preferred equity. The information provided below is intended to assist users of Aimco’s financial information in making their own estimates of Aimco’s NAV. See the following page for notes to the supplemental information provided below.
Trailing Twelve Month Net Operating Income Data
                         
    Proportionate Property Net Operating Income  
    Conventional Same              
    Store and Other [1]     Affordable     Total  
Rental and other property revenues
  $ 818,935     $ 142,467     $ 961,402  
Property operating expenses
    (309,201 )     (61,519 )     (370,720 )
 
                 
Property NOI
    509,734       80,948       590,682  
 
                       
Assumed property management fee (3.5% of revenues)
    (28,663 )     (4,986 )     (33,649 )
 
                 
Property NOI net of assumed property management fee
  $ 481,071     $ 75,962     $ 557,033  
 
                 
Proportionate Balance Sheet Data As of September 30, 2011
                                 
            Proportionate                
    Consolidated     Share of             Proportionate  
    GAAP     Unconsolidated     Noncontrolling     Balance  
    Balance Sheet     Partnerships     Interests     Sheet  
Assets
                               
Real estate
  $ 9,056,309     $ 96,350     $ (787,999 )   $ 8,364,660  
Accumulated depreciation
    (2,876,894 )     (27,544 )     246,588       (2,657,850 )
 
                       
Net real estate [2]
    6,179,415       68,806       (541,411 )     5,706,810  
 
Cash and cash equivalents
    75,831       1,305       (31,293 )     45,843  
Restricted cash
    209,481       7,136       (32,377 )     184,240  
Accounts receivable, net
    40,848       133       (3,822 )     37,159  
Notes receivable, net
    114,630             (1,355 )     113,275  
Investment in unconsolidated real estate partnerships [3]
    63,942       (24,726 )     (25,460 )     13,756  
Deferred financing costs, net [4]
    46,670       526       (6,863 )     40,333  
Goodwill [4]
    64,416                   64,416  
Investment in management contracts [4]
    636                   636  
Other assets [5]
    246,833       454       19,576       266,863  
 
                       
Total assets
  $ 7,042,702     $ 53,634     $ (623,005 )   $ 6,473,331  
 
                       
Liabilities and Equity
                               
Non-recourse property debt
  $ 5,233,525     $ 33,456     $ (520,752 )   $ 4,746,229  
Revolving credit facility borrowings
    26,200                   26,200  
Deferred income [6]
    150,357       78             150,435  
Other liabilities
    338,121       20,100       (72,585 )     285,636  
 
                       
Total liabilities
    5,748,203       53,634       (593,337 )     5,208,500  
 
                       
 
                               
Preferred noncontrolling interests in Aimco Operating Partnership [7]
    83,385                   83,385  
Preferred stock subject to repurchase agreement [7]
    10,000                   10,000  
Perpetual preferred stock [7]
    656,015                   656,015  
Other Aimco equity
    295,297             250,329       545,626  
Noncontrolling interests in consolidated real estate partnerships
    279,997             (279,997 )      
Common noncontrolling interests in Aimco Operating Partnership
    (30,195 )                 (30,195 )
 
                       
Total liabilities and equity
  $ 7,042,702     $ 53,634     $ (623,005 )   $ 6,473,331  
 
                       
     
(IMAGE)   15

 


 

(IMAGE)
Supplemental Schedule 3 (continued)
     
Net Asset Value Supplemental Information   (page 2 of 2)
(in thousands) (unaudited)    
     
[1]  
Proportionate Property Net Operating amounts for Other Conventional include the results of Lincoln Place and Pacific Bay Vistas, two redevelopment properties that were vacant during the period presented, and the results of Madera Vista, a vacant redevelopment property acquired during the third quarter 2011.
 
[2]  
Net real estate includes three redevelopment properties that have September 30, 2011 net book values of $246.2 million in total. Aimco refers to these properties collectively as part of its redevelopment pipeline.
 
[3]  
Aimco’s internal NAV estimate is computed based on Aimco’s share of NOI and as such takes into account Aimco’s share of NOI attributable to unconsolidated partnerships. For this reason, investment in unconsolidated real estate partnerships is excluded from non-real estate assets in Aimco’s internal NAV computation.
 
[4]  
Deferred financing costs, goodwill and investment in management contracts represent non-tangible assets for which cash has already been paid by Aimco. As such, these amounts are excluded from Aimco’s internal NAV computation.
 
[5]  
Includes notes receivable from consolidated partnerships that are eliminated in the consolidated balance sheet. The noncontrolling partners’ share of amounts payable to Aimco pursuant to those notes is added to the GAAP-based amounts to arrive at the proportionate balance presented.
 
[6]  
Deferred income includes $95.7 million of unamortized cash contributions received by Aimco in exchange for the sale of tax credit and related tax benefits. These cash contributions are deferred upon receipt and amortized into earnings in future periods as Aimco delivers the tax credits and related benefits to the investors. Certain of Aimco’s tax credit arrangements provide for contributions to be made in installments, which contributions are not reflected in Aimco’s consolidated financial statements until such time as the contributions are received.
 
   
Deferred income and the future earnings associated with the deferred income are excluded from Aimco’s internal estimates of NAV. However, amortization of deferred tax credit income is included in net income and, as such, FFO. Projected amortization of deferred tax credit contributions received and to be received is presented below.
         
    September 30, 2011  
Deferred tax credit income balance
  $ 95,711  
Contributions to be received in the future
    64,204  
 
     
Total to be amortized
  $ 159,915  
 
     
                         
    Amortization of     Estimated Income     Projected Income,  
    Deferred Income     Taxes     net of tax  
Year Ending December 31,
                       
2011
  $ 6,840     $ (2,668 )   $ 4,172  
2012
    27,341       (10,663 )     16,678  
2013
    27,089       (10,565 )     16,524  
2014
    26,215       (10,224 )     15,991  
2015
    22,061       (8,604 )     13,457  
Thereafter
    50,369       (19,643 )     30,726  
 
                 
Total
  $ 159,915     $ (62,367 )   $ 97,548  
 
                 
     
[7]  
Aimco’s internal NAV computation includes Preferred noncontrolling interests in Aimco Operating Partnership, Preferred stock subject to repurchase agreement and Perpetual preferred stock as a reduction of NAV attributable to Aimco common stockholders. See Schedule 5.
     
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(IMAGE)
Supplemental Schedule 4
     
Non-recourse Property Debt Information   (page 1 of 2)
As of September 30, 2011    
(dollars in thousands) (unaudited)    
Property Debt Balances and Characteristics
                                                 
            Proportionate                     Weighted        
            Share of                     Average        
            Unconsolidated     Noncontrolling     Total Aimco     Maturity     Weighted  
Debt   Consolidated     Partnerships     Interests     Share     (years)     Average Rate  
 
Conventional Portfolio:
                                               
Fixed rate loans payable [1]
  $ 4,290,261     $     $ (289,520 )   $ 4,000,741       7.4       5.83 %
Floating rate loans payable [2]
    22,279             (2,050 )     20,229       1.5       1.57 %
 
                                   
Total property loans payable
    4,312,540             (291,570 )     4,020,970       7.3       5.81 %
 
                                               
Fixed rate tax-exempt bonds
    52,075             (3,338 )     48,737       5.1       6.75 %
Floating rate tax-exempt bonds [2]
    138,233             (5,278 )     132,955       8.9       0.60 %
 
                                   
Total property tax-exempt bond financing
    190,308             (8,616 )     181,692       7.9       2.28 %
 
                                   
Total Conventional portfolio
    4,502,848             (300,186 )     4,202,662       7.4       5.66 %
 
                                   
 
                                               
Affordable Portfolio:
                                               
Fixed rate loans payable
    475,076       31,810       (190,521 )     316,365       13.5       4.83 %
Floating rate loans payable
    30,472       8       (17,143 )     13,337       7.0       3.28 %
 
                                   
Total property loans payable
    505,548       31,818       (207,664 )     329,702       13.1       4.74 %
 
                                               
Fixed rate tax-exempt bonds
    95,321       1,638       (12,902 )     84,057       26.9       4.95 %
Floating rate tax-exempt bonds [2]
    129,808                   129,808       3.8       2.35 %
 
                                   
Total property tax-exempt bond financing
    225,129       1,638       (12,902 )     213,865       13.6       3.45 %
 
                                   
Total Affordable portfolio
    730,677       33,456       (220,566 )     543,567       13.3       4.34 %
 
                                   
Total non-recourse property debt
  $ 5,233,525     $ 33,456     $ (520,752 )   $ 4,746,229       8.2       5.47 %
 
                                   
     
[1]  
During June 2011, $673.8 million (original principal amount) of fixed rate loans payable were securitized and Aimco purchased for $51.5 million the first loss and two mezzanine positions in the trust that holds these loans. The investments, which have a face value of $100.9 million, are presented in other assets on Aimco’s consolidated balance sheet. The weighted average interest rate on the securitized loans payable of 5.49% is reflected in the table above. The effective rate, after adjustment for the estimated interest on the investments in the securitization trust, is 5.19%.
 
[2]  
Floating rate debt presented above includes $144.3 million of fixed rate debt that is effectively converted to floating rates using total rate of return swaps. At September 30, 2011, the carrying amount of this debt totaled $136.5 million, after recognition of changes in the debt’s fair value.
Aimco Share Property Debt
                                         
                                    % of Floating  
    Amount     % of Total             Amount     Rate Debt  
Fixed rate debt
  $ 4,449,900       94 %   Floating rate tax-exempt bonds   $ 262,763       89 %
Floating rate debt
    296,329       6 %   Floating rate loans payable     33,566       11 %
 
                                   
Total
  $ 4,746,229             Total   $ 296,329          
 
                                   
                                         
                            Maturities as        
                            a Percent     Average Rate on  
    Amortization     Maturities     Total     of Total Debt     Maturing Debt  
2011 Q4
  $ 20,649     $ 6,285     $ 26,934       0.13 %     2.87 %
 
                                       
2012 Q1
    21,076             21,076              
2012 Q2 [3]
    21,543       140,960       162,503       2.97 %     2.28 %
2012 Q3
    20,999       90,183       111,182       1.90 %     6.16 %
2012 Q4
    20,891       18,978       39,869       0.40 %     1.58 %
 
                             
Total 2012
    84,509       250,121       334,630       5.27 %     3.57 %
 
                                       
2013
    84,594       295,765       380,359       6.23 %     5.49 %
2014
    84,152       228,786       312,938       4.82 %     5.59 %
2015
    83,382       185,737       269,119       3.91 %     4.84 %
2016
    80,563       381,295       461,858       8.03 %     5.63 %
2017
    74,133       442,527       516,660       9.32 %     5.93 %
2018
    68,241       233,736       301,977       4.92 %     4.64 %
2019
    60,605       451,441       512,046       9.51 %     5.98 %
2020
    52,792       388,330       441,122       8.18 %     6.33 %
2021 [4]
    31,970       672,178       704,148       14.16 %     5.74 %
Thereafter
    284,113       200,325       484,438       4.22 %     4.46 %
 
                                 
Total
  $ 1,009,703     $ 3,736,526     $ 4,746,229                  
 
                                 
     
[3]  
Q2 2012 maturities include approximately $130.1 million of debt ($122.4 million at carrying amount) subject to total return swaps for which the swap maturity dates are in 2012 and the related debt maturities are beyond 2012. In the event Aimco is unable refinance the debt to which these swaps relate prior to the swap maturity dates, Aimco would have to pay a termination payment (currently $7.7 million) to the counterparties.
 
[4]  
2021 maturities include $100.9 million that will effectively repay Aimco’s first loss and mezzanine positions in the securitization discussed in Note 1 above. After consideration of the repayment of these investments, Aimco’s net effective maturities exposure for 2021 is $571.3 million, or 12.3% of maturities as a percentage of total debt.
     
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(IMAGE)
Supplemental Schedule 4 (continued)
     
Non-recourse Property Debt Information   (page 2 of 2)
As of September 30, 2011    
(in millions) (unaudited)    
Year-to-Date Property Loan Closings
                                         
    Aimco                          
    Original     Aimco New     Aimco Net              
    Loan     Loan     (Repayment)     Prior     New  
Original Loan Maturity Year   Amount     Amount [1]     Proceeds [2]     Rate     Rate [3]  
 
                                       
2011 [4]
  $ 98.7     $ 89.3     $ (9.8 )     5.76 %     3.75 %
2012 [4][5][6]
    166.1       164.8       (3.5 )     1.90 %     5.20 %
2013 [6]
    13.1       23.7       13.4       4.98 %     5.54 %
2014 [4][6]
    124.4       121.5       (7.9 )     5.74 %     4.83 %
2015 [4][6]
    172.7       166.4       (18.7 )     5.94 %     5.44 %
2016 [6]
    25.8       32.5       6.5       5.57 %     5.38 %
2020
    4.3       7.3       2.0       7.90 %     4.99 %
2040
    45.7       46.5       0.2       6.88 %     4.15 %
New loans
          4.1       3.9               3.45 %
 
                             
 
                                       
Totals
  $ 650.8     $ 656.1     $ (13.9 )     4.89 %     4.93 %
 
                             
 
                                       
Net Change in Leverage from Refinancings
  $ 5.3                                  
Non-refinancing Loan Repayments
    (8.4 )                                
Aimco’s FREMF 2011 K-AIV Investments [6]
    (51.5 )                                
 
                             
Net Change in Leverage After Loan Repayments and Trust Investment but Before Amortization
  $ (54.6 )                                
 
                             
     
[1]  
New loans typically have terms ranging from 7 to 10 years.
 
[2]  
Aimco Net (Repayment) Proceeds is (inclusive of) after transaction costs, prepayment penalties and payment of distributions to noncontrolling partners.
 
[3]  
The interest rates on all New Loans closed during the period are fixed.
 
[4]  
As part of Aimco’s leverage strategy, Aimco reduced the sizing of these loans, resulting in net repayments in connection with the refinancing transactions.
 
[5]  
$132.0 million of the Original Loans had a variable interest rate indexed to SIFMA, which was significantly less than the corresponding New Loans’ fixed rates.
 
[6]  
In June 2011, Freddie Mac securitized $673.8 million (original principal amount) of Aimco’s fixed rate loans payable and Aimco purchased for $51.5 million the first loss and two mezzanine positions in the FREMF 2011 K-AIV securitization trust that holds these loans. The investments, which have a face value of $100.9 million, are presented in other assets on Aimco’s consolidated balance sheet. The effective deleveraging during the nine months ended September 30, 2011 resulting from these investments is reflected in the Net Change in Leverage shown above. The weighted average interest rate on the securitized loans payable of 5.49% is reflected in the table above. The effective rate, after adjustment for the estimated interest on the investments in the securitization trust, is 5.19%.
Debt Ratios
                 
    Amount     Covenant  
 
               
EBITDA coverage of interest
    2.14:1       n/a  
EBITDA coverage of interest and preferred dividends
    1.75:1       n/a  
Debt service coverage ratio
    1.60:1       1.40:1  
Fixed charge coverage ratio
    1.36:1       1.20:1  
Credit Ratings
         
Moody’s Investor Service
  Corporate Family Rating   Ba1 (stable outlook)
Standard and Poor’s
  Corporate Credit Rating   BB+ (stable)
     
(IMAGE)   18

 


 

(IMAGE)
Supplemental Schedule 5
Share Data
(in thousands) (unaudited)
Preferred Securities
                                 
    Shares/Units                    
    Outstanding     Date First              
    as of     Available for              
    September 30,     Redemption by              
    2011     Aimco     Coupon     Amount  
Perpetual Preferred Stock:
                               
Class T
    6,000       7/31/2008       8.000 %     150,000  
Class U
    12,000       3/24/2009       7.750 %     300,000  
Class V [1]
    2,588       9/29/2009       8.000 %     64,688  
Class Y
    3,450       12/21/2009       7.875 %     86,250  
Class Z [2]
    824       7/29/2016       7.000 %     20,595  
Series A Community Reinvestment Act [3]
          6/30/2011       1.500 %     47,000  
 
                             
Total perpetual preferred stock
                            668,533  
 
                               
Preferred Partnership Units [4]
    3,061               8.096 %     82,515  
 
                             
Total outstanding preferred securities
                          $ 751,048  
 
                             
Common Stock, Partnership Units and Equivalents
                                         
    As of     Three Months Ended     Nine Months Ended  
    September 30,     September 30, 2011     September 30, 2011  
    2011     EPS     FFO     EPS     FFO  
Class A Common Stock outstanding
    120,433       120,339       120,339       118,939       118,939  
Dilutive securities:
                                       
Options and restricted stock
    373             331             330  
 
                             
Total shares and dilutive share equivalents
    120,806       120,339       120,670       118,939       119,269  
 
                             
Common Partnership Units and equivalents [5]
    8,290                                  
 
                                     
Total shares, units and dilutive share equivalents
    129,096                                  
 
                                     
Notes
     
[1]  
During the third quarter, primarily using proceeds from the issuance of Class Z Preferred Stock, Aimco redeemed 862,500 shares (25% of the amount outstanding) of the Class V Preferred Stock for a redemption price of $25.00 per share, or $21.6 million in aggregate.
 
[2]  
During the third quarter, Aimco issued approximately 823,800 shares of Class Z Preferred Stock for an average price of $24.21 per share. After underwriting discounts, commissions and transaction costs, these issuances generated net proceeds of approximately $19.0 million.
 
[3]  
Represents 94 shares at a liquidation preference per share of $500,000. The remaining amount at September 30, 2011, includes $10.0 million, which is subject to a repurchase agreement and is classified within temporary equity in the consolidated balance sheet. The dividend rate is a variable rate per annum equal to the Three-Month LIBOR Rate plus 1.25%, calculated as of the beginning of each quarterly period.
 
[4]  
Coupon is based on a weighted average of all outstanding series of Preferred Partnership Units.
 
[5]  
Includes the Aimco Operating Partnership’s common OP Units and Class I High Performance Units, which are included in noncontrolling interests in Aimco Operating Partnership in our consolidated financial statements and Schedule 1.
     
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(IMAGE)
Supplemental Schedule 6(a)
Conventional Same Store Operating Results
Third Quarter 2011 Compared to Third Quarter 2010
(in thousands, except site and unit data) (unaudited)
                                                                                                                                         
                                                                                                    Operating              
                    Effective     Revenue     Expenses     Net Operating Income     Margin     Occupancy     Rental Rates  
    Properties     Units     Units     3Q 2011     3Q 2010     Growth     3Q 2011     3Q 2010     Growth     3Q 2011     3Q 2010     Growth     3Q 2011     3Q 2011     3Q 2010     3Q 2011     3Q 2010  
 
                                                                                                                                       
Target Markets
                                                                                                                                       
Los Angeles
    13       3,949       3,297     $ 19,343     $ 18,829       2.7 %   $ 5,493     $ 6,014       -8.7 %   $ 13,850     $ 12,815       8.1 %     71.6 %     96.5 %     96.5 %   $ 2,030     $ 1,983  
Orange County
    4       1,213       1,143       5,636       5,352       5.3 %     1,797       1,885       -4.7 %     3,839       3,467       10.7 %     68.1 %     97.0 %     95.8 %     1,550       1,504  
San Diego
    6       2,144       2,073       8,346       8,020       4.1 %     2,518       2,349       7.2 %     5,828       5,671       2.8 %     69.8 %     95.6 %     96.3 %     1,247       1,206  
 
                                                                                                     
Southern CA Total
    23       7,306       6,513       33,325       32,201       3.5 %     9,808       10,248       -4.3 %     23,517       21,953       7.1 %     70.6 %     96.3 %     96.3 %     1,721       1,676  
East Bay
    2       413       353       1,470       1,393       5.5 %     504       583       -13.6 %     966       810       19.3 %     65.7 %     97.3 %     97.3 %     1,264       1,201  
San Jose
    1       224       224       1,078       1,047       3.0 %     249       408       -39.0 %     829       639       29.7 %     76.9 %     95.5 %     98.1 %     1,540       1,466  
San Francisco
    5       774       774       3,964       3,672       8.0 %     1,314       1,412       -6.9 %     2,650       2,260       17.3 %     66.9 %     96.5 %     97.4 %     1,574       1,478  
 
                                                                                                     
Northern CA Total
    8       1,411       1,351       6,512       6,112       6.5 %     2,067       2,403       -14.0 %     4,445       3,709       19.8 %     68.3 %     96.6 %     97.5 %     1,477       1,395  
Seattle
    2       239       200       958       930       3.0 %     366       347       5.5 %     592       583       1.5 %     61.8 %     94.7 %     97.9 %     1,415       1,357  
 
                                                                                                     
Pacific Total
    33       8,956       8,064       40,795       39,243       4.0 %     12,241       12,998       -5.8 %     28,554       26,245       8.8 %     70.0 %     96.3 %     96.6 %     1,675       1,623  
 
                                                                                                                                       
Suburban New York — New Jersey
    2       1,162       944       3,687       3,699       -0.3 %     1,398       1,324       5.6 %     2,289       2,375       -3.6 %     62.1 %     95.3 %     95.0 %     1,188       1,180  
Washington — NoVa — MD
    15       6,711       6,592       26,449       24,942       6.0 %     9,236       8,192       12.7 %     17,213       16,750       2.8 %     65.1 %     96.2 %     96.9 %     1,276       1,206  
Boston
    9       3,068       3,068       11,082       10,587       4.7 %     4,228       3,988       6.0 %     6,854       6,599       3.9 %     61.8 %     96.8 %     95.5 %     1,156       1,139  
Philadelphia
    6       3,573       3,428       14,304       13,802       3.6 %     6,124       5,863       4.5 %     8,180       7,939       3.0 %     57.2 %     94.7 %     95.3 %     1,255       1,223  
 
                                                                                                     
Northeast Total
    32       14,514       14,032       55,522       53,030       4.7 %     20,986       19,367       8.4 %     34,536       33,663       2.6 %     62.2 %     95.9 %     96.0 %     1,238       1,194  
 
Miami
    5       2,471       2,359       12,209       11,701       4.3 %     4,796       4,663       2.9 %     7,413       7,038       5.3 %     60.7 %     96.1 %     95.8 %     1,579       1,546  
Palm Beach — Fort Lauderdale
    3       893       893       2,343       2,322       0.9 %     1,159       893       29.8 %     1,184       1,429       -17.1 %     50.5 %     94.7 %     94.1 %     807       826  
Orlando
    7       2,051       2,051       4,899       4,799       2.1 %     2,187       2,060       6.2 %     2,712       2,739       -1.0 %     55.4 %     95.6 %     95.4 %     720       720  
Tampa
    5       1,455       1,388       3,277       3,253       0.7 %     1,453       1,283       13.3 %     1,824       1,970       -7.4 %     55.7 %     94.7 %     94.7 %     707       710  
Jacksonville
    4       1,643       1,643       4,207       4,146       1.5 %     2,034       1,809       12.4 %     2,173       2,337       -7.0 %     51.7 %     95.0 %     97.3 %     772       761  
 
                                                                                                     
Florida Total
    24       8,513       8,334       26,935       26,221       2.7 %     11,629       10,708       8.6 %     15,306       15,513       -1.3 %     56.8 %     95.4 %     95.6 %     988       978  
 
                                                                                                                                       
Houston
    6       2,509       2,050       4,498       4,536       -0.8 %     2,027       2,091       -3.1 %     2,471       2,445       1.1 %     54.9 %     91.3 %     93.7 %     687       693  
Denver
    8       2,177       1,731       5,515       5,151       7.1 %     1,678       1,668       0.6 %     3,837       3,483       10.2 %     69.6 %     97.1 %     97.8 %     875       822  
Phoenix
    12       3,017       2,605       5,865       5,558       5.5 %     2,464       2,390       3.1 %     3,401       3,168       7.4 %     58.0 %     95.2 %     96.3 %     663       637  
Dallas — Fort Worth
    2       569       569       1,322       1,313       0.7 %     666       674       -1.2 %     656       639       2.7 %     49.6 %     93.6 %     96.5 %     716       695  
Atlanta
    4       992       822       2,439       2,323       5.0 %     775       836       -7.3 %     1,664       1,487       11.9 %     68.2 %     96.5 %     96.8 %     926       893  
 
                                                                                                     
Sunbelt Total
    56       17,777       16,111       46,574       45,102       3.3 %     19,239       18,367       4.7 %     27,335       26,735       2.2 %     58.7 %     95.0 %     95.8 %     866       847  
 
                                                                                                                                       
Chicago
    12       3,804       3,643       13,158       12,967       1.5 %     5,024       4,174       20.4 %     8,134       8,793       -7.5 %     61.8 %     94.2 %     96.7 %     1,121       1,088  
 
                                                                                                     
 
                                                                                                                                       
Total Target Markets
    133       45,051       41,850       156,049       150,342       3.8 %     57,490       54,906       4.7 %     98,559       95,436       3.3 %     63.2 %     95.5 %     96.1 %     1,170       1,134  
 
                                                                                                                                       
Other
                                                                                                                                       
Baltimore
    3       701       628       2,261       2,251       0.4 %     857       839       2.1 %     1,404       1,412       -0.6 %     62.1 %     95.7 %     96.4 %     1,176       1,162  
Nashville
    4       1,114       865       2,484       2,405       3.3 %     1,017       897       13.4 %     1,467       1,508       -2.7 %     59.1 %     95.8 %     95.7 %     863       840  
Norfolk — Richmond
    5       1,495       1,406       4,409       4,329       1.8 %     1,424       1,405       1.4 %     2,985       2,924       2.1 %     67.7 %     96.6 %     96.6 %     955       946  
Other Markets
    17       8,848       8,769       21,507       21,093       2.0 %     9,343       9,198       1.6 %     12,164       11,895       2.3 %     56.6 %     93.6 %     95.6 %     745       726  
 
                                                                                                     
 
                                                                                                                                       
Total Other
    29       12,158       11,668       30,661       30,078       1.9 %     12,641       12,339       2.4 %     18,020       17,739       1.6 %     58.8 %     94.3 %     95.8 %     808       789  
 
                                                                                                     
 
                                                                                                                                       
CONVENTIONAL SAME STORE SALES TOTALS
    162       57,209       53,518     $ 186,710     $ 180,420       3.5 %   $ 70,131     $ 67,245       4.3 %   $ 116,579     $ 113,175       3.0 %     62.4 %     95.2 %     96.0 %   $ 1,094     $ 1,061  
 
                                                                                                     
     
(IMAGE)   20

 


 

(IMAGE)
Supplemental Schedule 6(b)
Conventional Same Store Operating Results
Third Quarter 2011 Compared to Second Quarter 2011
(in thousands, except site and unit data) (unaudited)
                                                                                                                                         
                                                                                                    Operating              
                    Effective     Revenue     Expenses     Net Operating Income     Margin     Occupancy     Rental Rates  
    Properties     Units     Units     3Q 2011     2Q 2011     Growth     3Q 2011     2Q 2011     Growth     3Q 2011     2Q 2011     Growth     3Q 2011     3Q 2011     2Q 2011     3Q 2011     2Q 2011  
 
                                                                                                                                       
Target Markets
                                                                                                                                       
Los Angeles
    13       3,949       3,297     $ 19,343     $ 18,952       2.1 %   $ 5,493     $ 5,532       -0.7 %   $ 13,850     $ 13,420       3.2 %     71.6 %     96.5 %     96.6 %   $ 2,030     $ 1,992  
Orange County
    4       1,213       1,143       5,636       5,576       1.1 %     1,797       1,620       10.9 %     3,839       3,956       -3.0 %     68.1 %     97.0 %     97.9 %     1,550       1,522  
San Diego
    6       2,144       2,073       8,346       8,166       2.2 %     2,518       2,351       7.1 %     5,828       5,815       0.2 %     69.8 %     95.6 %     95.7 %     1,247       1,229  
 
                                                                                                     
Southern CA Total
    23       7,306       6,513       33,325       32,694       1.9 %     9,808       9,503       3.2 %     23,517       23,191       1.4 %     70.6 %     96.3 %     96.5 %     1,721       1,691  
East Bay
    2       413       353       1,470       1,443       1.9 %     504       538       -6.3 %     966       905       6.7 %     65.7 %     97.3 %     98.5 %     1,264       1,233  
San Jose
    1       224       224       1,078       1,071       0.7 %     249       395       -37.0 %     829       676       22.6 %     76.9 %     95.5 %     97.1 %     1,540       1,494  
San Francisco
    5       774       774       3,964       3,817       3.9 %     1,314       1,361       -3.5 %     2,650       2,456       7.9 %     66.9 %     96.5 %     97.3 %     1,574       1,526  
 
                                                                                                     
Northern CA Total
    8       1,411       1,351       6,512       6,331       2.9 %     2,067       2,294       -9.9 %     4,445       4,037       10.1 %     68.3 %     96.6 %     97.6 %     1,477       1,435  
Seattle
    2       239       200       958       963       -0.5 %     366       318       15.1 %     592       645       -8.2 %     61.8 %     94.7 %     97.4 %     1,415       1,388  
 
                                                                                                     
Pacific Total
    33       8,956       8,064       40,795       39,988       2.0 %     12,241       12,115       1.0 %     28,554       27,873       2.4 %     70.0 %     96.3 %     96.7 %     1,675       1,642  
 
Suburban New York — New Jersey
    2       1,162       944       3,687       3,687       0.0 %     1,398       1,298       7.7 %     2,289       2,389       -4.2 %     62.1 %     95.3 %     95.1 %     1,188       1,183  
Washington — NoVa — MD
    15       6,711       6,592       26,449       25,945       1.9 %     9,236       7,851       17.6 %     17,213       18,094       -4.9 %     65.1 %     96.2 %     96.5 %     1,276       1,256  
Boston
    9       3,068       3,068       11,082       10,877       1.9 %     4,228       4,230       0.0 %     6,854       6,647       3.1 %     61.8 %     96.8 %     96.3 %     1,156       1,149  
Philadelphia
    6       3,573       3,428       14,304       13,938       2.6 %     6,124       6,019       1.7 %     8,180       7,919       3.3 %     57.2 %     94.7 %     95.2 %     1,255       1,236  
 
                                                                                                     
Northeast Total
    32       14,514       14,032       55,522       54,447       2.0 %     20,986       19,398       8.2 %     34,536       35,049       -1.5 %     62.2 %     95.9 %     96.0 %     1,238       1,223  
 
Miami
    5       2,471       2,359       12,209       11,991       1.8 %     4,796       4,483       7.0 %     7,413       7,508       -1.3 %     60.7 %     96.1 %     96.4 %     1,579       1,556  
Palm Beach — Fort Lauderdale
    3       893       893       2,343       2,332       0.5 %     1,159       1,073       8.0 %     1,184       1,259       -6.0 %     50.5 %     94.7 %     96.5 %     807       798  
Orlando
    7       2,051       2,051       4,899       4,837       1.3 %     2,187       2,013       8.6 %     2,712       2,824       -4.0 %     55.4 %     95.6 %     95.2 %     720       721  
Tampa
    5       1,455       1,388       3,277       3,239       1.2 %     1,453       1,388       4.7 %     1,824       1,851       -1.5 %     55.7 %     94.7 %     94.5 %     707       706  
Jacksonville
    4       1,643       1,643       4,207       4,069       3.4 %     2,034       1,868       8.9 %     2,173       2,201       -1.3 %     51.7 %     95.0 %     94.9 %     772       762  
 
                                                                                                     
Florida Total
    24       8,513       8,334       26,935       26,468       1.8 %     11,629       10,825       7.4 %     15,306       15,643       -2.2 %     56.8 %     95.4 %     95.5 %     988       979  
Houston
    6       2,509       2,050       4,498       4,562       -1.4 %     2,027       1,998       1.5 %     2,471       2,564       -3.6 %     54.9 %     91.3 %     93.1 %     687       693  
Denver
    8       2,177       1,731       5,515       5,241       5.2 %     1,678       1,685       -0.4 %     3,837       3,556       7.9 %     69.6 %     97.1 %     97.4 %     875       847  
Phoenix
    12       3,017       2,605       5,865       5,634       4.1 %     2,464       2,194       12.3 %     3,401       3,440       -1.1 %     58.0 %     95.2 %     95.9 %     663       648  
Dallas — Fort Worth
    2       569       569       1,322       1,325       -0.2 %     666       574       16.0 %     656       751       -12.6 %     49.6 %     93.6 %     95.6 %     716       705  
Atlanta
    4       992       822       2,439       2,419       0.8 %     775       794       -2.4 %     1,664       1,625       2.4 %     68.2 %     96.5 %     97.9 %     926       908  
 
                                                                                                     
Sunbelt Total
    56       17,777       16,111       46,574       45,649       2.0 %     19,239       18,070       6.5 %     27,335       27,579       -0.9 %     58.7 %     95.0 %     95.6 %     866       854  
 
Chicago
    12       3,804       3,643       13,158       13,162       0.0 %     5,024       4,915       2.2 %     8,134       8,247       -1.4 %     61.8 %     94.2 %     97.0 %     1,121       1,104  
 
                                                                                                     
Total Target Markets
    133       45,051       41,850       156,049       153,246       1.8 %     57,490       54,498       5.5 %     98,559       98,748       -0.2 %     63.2 %     95.5 %     96.1 %     1,170       1,152  
 
                                                                                                                                       
Other
                                                                                                                                       
Baltimore
    3       701       628       2,261       2,201       2.7 %     857       787       8.9 %     1,404       1,414       -0.7 %     62.1 %     95.7 %     95.4 %     1,176       1,160  
Nashville
    4       1,114       865       2,484       2,461       0.9 %     1,017       867       17.3 %     1,467       1,594       -8.0 %     59.1 %     95.8 %     95.0 %     863       869  
Norfolk — Richmond
    5       1,495       1,406       4,409       4,458       -1.1 %     1,424       1,352       5.3 %     2,985       3,106       -3.9 %     67.7 %     96.6 %     94.9 %     955       968  
Other Markets
    17       8,848       8,769       21,507       21,469       0.2 %     9,343       9,100       2.7 %     12,164       12,369       -1.7 %     56.6 %     93.6 %     95.2 %     745       737  
 
                                                                                                     
Total Other
    29       12,158       11,668       30,661       30,589       0.2 %     12,641       12,106       4.4 %     18,020       18,483       -2.5 %     58.8 %     94.3 %     95.2 %     808       802  
 
                                                                                                     
 
                                                                                                                                       
CONVENTIONAL SAME STORE SALES TOTALS
    162       57,209       53,518     $ 186,710     $ 183,835       1.6 %   $ 70,131     $ 66,604       5.3 %   $ 116,579     $ 117,231       -0.6 %     62.4 %     95.2 %     95.9 %   $ 1,094     $ 1,078  
 
                                                                                                     
     
(IMAGE)   21

 

 


 

(IMAGE)
Supplemental Schedule 6(c)
Conventional Same Store Operating Results
Nine Months Ended September 30, 2011 Compared to Nine Months Ended September 30, 2010
(in thousands, except site and unit data) (unaudited)
                                                                                                                                         
                                                                                                    Operating              
                            Revenue     Expenses     Net Operating Income     Margin     Occupancy     Rental Rates  
                    Effective     YTD 3Q     YTD 3Q             YTD 3Q     YTD 3Q             YTD 3Q     YTD 3Q             YTD 3Q     YTD 3Q     YTD 3Q     YTD 3Q     YTD 3Q  
    Properties     Units     Units     2011     2010     Growth     2011     2010     Growth     2011     2010     Growth     2011     2011     2010     2011     2010  
Target Markets
                                                                                                                                       
Los Angeles
    13       3,949       3,297     $ 57,078     $ 56,544       0.9 %   $ 16,881     $ 17,832       -5.3 %   $ 40,197     $ 38,712       3.8 %     70.4 %     96.5 %     96.4 %   $ 2,000     $ 1,992  
Orange County
    4       1,213       1,143       16,614       16,077       3.3 %     5,119       5,390       -5.0 %     11,495       10,687       7.6 %     69.2 %     97.2 %     96.3 %     1,527       1,503  
San Diego
    6       2,144       2,073       24,514       23,501       4.3 %     7,015       7,164       -2.1 %     17,499       16,337       7.1 %     71.4 %     95.7 %     95.6 %     1,231       1,195  
 
                                                                                                     
Southern CA Total
    23       7,306       6,513       98,206       96,122       2.2 %     29,015       30,386       -4.5 %     69,191       65,736       5.3 %     70.5 %     96.4 %     96.1 %     1,697       1,678  
East Bay
    2       413       353       4,335       4,174       3.9 %     1,600       1,777       -10.0 %     2,735       2,397       14.1 %     63.1 %     97.7 %     97.4 %     1,241       1,196  
San Jose
    1       224       224       3,213       3,119       3.0 %     1,064       1,274       -16.5 %     2,149       1,845       16.5 %     66.9 %     97.0 %     97.5 %     1,501       1,478  
San Francisco
    5       774       774       11,494       10,836       6.1 %     3,830       4,146       -7.6 %     7,664       6,690       14.6 %     66.7 %     97.0 %     97.2 %     1,531       1,465  
 
                                                                                                     
Northern CA Total
    8       1,411       1,351       19,042       18,129       5.0 %     6,494       7,197       -9.8 %     12,548       10,932       14.8 %     65.9 %     97.2 %     97.3 %     1,441       1,388  
Seattle
    2       239       200       2,841       2,751       3.3 %     1,012       1,024       -1.2 %     1,829       1,727       5.9 %     64.4 %     96.3 %     97.3 %     1,389       1,355  
 
                                                                                                     
Pacific Total
    33       8,956       8,064       120,089       117,002       2.6 %     36,521       38,607       -5.4 %     83,568       78,395       6.6 %     69.6 %     96.5 %     96.3 %     1,648       1,623  
 
                                                                                                                                       
Suburban New York — New Jersey
    2       1,162       944       10,981       11,003       -0.2 %     3,994       3,578       11.6 %     6,987       7,425       -5.9 %     63.6 %     95.3 %     95.6 %     1,180       1,185  
Washington — NoVa — MD
    15       6,711       6,592       78,357       74,267       5.5 %     24,842       24,429       1.7 %     53,515       49,838       7.4 %     68.3 %     96.5 %     96.8 %     1,259       1,197  
Boston
    9       3,068       3,068       32,654       32,138       1.6 %     13,003       12,470       4.3 %     19,651       19,668       -0.1 %     60.2 %     96.4 %     96.0 %     1,147       1,141  
Philadelphia
    6       3,573       3,428       42,390       41,564       2.0 %     18,287       17,810       2.7 %     24,103       23,754       1.5 %     56.9 %     95.3 %     95.3 %     1,239       1,218  
 
                                                                                                     
Northeast Total
    32       14,514       14,032       164,382       158,972       3.4 %     60,126       58,287       3.2 %     104,256       100,685       3.5 %     63.4 %     96.1 %     96.2 %     1,224       1,189  
 
                                                                                                                                       
Miami
    5       2,471       2,359       36,155       34,925       3.5 %     13,760       14,989       -8.2 %     22,395       19,936       12.3 %     61.9 %     96.9 %     96.5 %     1,558       1,533  
Palm Beach — Fort Lauderdale
    3       893       893       7,012       7,078       -0.9 %     3,335       3,139       6.2 %     3,677       3,939       -6.7 %     52.4 %     95.8 %     94.3 %     802       831  
Orlando
    7       2,051       2,051       14,530       14,306       1.6 %     6,269       6,214       0.9 %     8,261       8,092       2.1 %     56.9 %     95.4 %     94.8 %     720       721  
Tampa
    5       1,455       1,388       9,773       9,858       -0.9 %     4,227       4,200       0.6 %     5,546       5,658       -2.0 %     56.7 %     95.2 %     95.1 %     704       715  
Jacksonville
    4       1,643       1,643       12,309       12,358       -0.4 %     5,884       5,617       4.8 %     6,425       6,741       -4.7 %     52.2 %     94.8 %     95.8 %     764       768  
 
                                                                                                     
Florida Total
    24       8,513       8,334       79,779       78,525       1.6 %     33,475       34,159       -2.0 %     46,304       44,366       4.4 %     58.0 %     95.7 %     95.5 %     981       979  
Houston
    5       1,775       1,516       10,005       10,294       -2.8 %     4,459       4,794       -7.0 %     5,546       5,500       0.8 %     55.4 %     92.2 %     94.9 %     684       696  
Denver
    8       2,177       1,731       15,903       15,123       5.2 %     4,915       5,081       -3.3 %     10,988       10,042       9.4 %     69.1 %     97.5 %     96.7 %     853       821  
Phoenix
    12       3,017       2,605       17,045       16,461       3.5 %     6,762       7,039       -3.9 %     10,283       9,422       9.1 %     60.3 %     96.3 %     95.2 %     649       645  
Dallas — Fort Worth
    2       569       569       3,973       3,937       0.9 %     1,880       2,003       -6.1 %     2,093       1,934       8.2 %     52.7 %     95.4 %     96.2 %     707       697  
Atlanta
    4       992       822       7,218       6,955       3.8 %     2,447       2,582       -5.2 %     4,771       4,373       9.1 %     66.1 %     97.4 %     96.3 %     911       890  
 
                                                                                                     
Sunbelt Total
    55       17,043       15,577       133,923       131,295       2.0 %     53,938       55,658       -3.1 %     79,985       75,637       5.7 %     59.7 %     95.8 %     95.6 %     862       856  
 
                                                                                                                                       
Chicago
    12       3,804       3,643       39,465       38,898       1.5 %     14,437       14,797       -2.4 %     25,028       24,101       3.8 %     63.4 %     96.1 %     96.3 %     1,106       1,091  
 
                                                                                                     
Total Target Markets
    132       44,317       41,316       457,859       446,167       2.6 %     165,022       167,349       -1.4 %     292,837       278,818       5.0 %     64.0 %     96.1 %     96.0 %     1,161       1,141  
 
                                                                                                                                       
Other
                                                                                                                                       
Baltimore
    3       701       628       6,873       6,585       4.4 %     2,517       2,799       -10.1 %     4,356       3,786       15.1 %     63.4 %     96.0 %     95.8 %     1,163       1,113  
Nashville
    3       764       620       5,618       5,566       0.9 %     2,065       2,202       -6.2 %     3,553       3,364       5.6 %     63.2 %     95.7 %     97.2 %     915       895  
Norfolk — Richmond
    5       1,495       1,406       13,260       12,965       2.3 %     4,014       4,031       -0.4 %     9,246       8,934       3.5 %     69.7 %     95.9 %     96.0 %     958       947  
Other Markets
    17       8,848       8,770       64,374       63,280       1.7 %     28,397       28,354       0.2 %     35,977       34,926       3.0 %     55.9 %     95.1 %     95.6 %     736       725  
 
                                                                                                     
Total Other
    28       11,808       11,424       90,125       88,396       2.0 %     36,993       37,386       -1.1 %     53,132       51,010       4.2 %     59.0 %     95.3 %     95.7 %     801       788  
 
                                                                                                     
 
CONVENTIONAL SAME STORE SALES TOTALS
    160       56,125       52,740     $ 547,984     $ 534,563       2.5 %   $ 202,015     $ 204,735       -1.3 %   $ 345,969     $ 329,828       4.9 %     63.1 %     95.9 %     95.9 %   $ 1,086     $ 1,067  
 
                                                                                                     
     
(IMAGE)   22

 

 


 

(IMAGE)
Supplemental Schedule 7(a)
Total Conventional Portfolio Data by Market
Third Quarter 2011 Compared to Third Quarter 2010
(unaudited)
                                                                                                 
    Quarter Ended September 30, 2011     Quarter Ended September 30, 2010  
                            Effective                                             Effective              
    Properties     Units     Ownership     Units     % AIV NOI     Average Rent     Properties     Units     Ownership     Units     % AIV NOI     Average Rent  
Target Markets
                                                                                               
Los Angeles
    14       4,645       86 %     3,993       11.0 %   $ 2,030       14       4,645       86 %     3,993       10.1 %   $ 1,983  
Orange County
    4       1,213       94 %     1,143       3.0 %     1,550       4       1,213       94 %     1,143       2.7 %     1,504  
San Diego
    10       2,286       94 %     2,145       4.8 %     1,247       6       2,142       97 %     2,072       4.4 %     1,207  
 
                                                                       
Southern CA Total
    28       8,144       89 %     7,281       18.8 %     1,721       24       8,000       90 %     7,208       17.2 %     1,676  
East Bay
    2       413       85 %     353       0.8 %     1,264       2       413       85 %     353       0.6 %     1,201  
San Francisco
    7       1,208       100 %     1,208       2.1 %     1,574       6       1,083       100 %     1,083       1.8 %     1,476  
San Jose
    1       224       100 %     224       0.7 %     1,540       1       224       100 %     224       0.5 %     1,466  
 
                                                                       
Northern CA Total
    10       1,845       97 %     1,785       3.6 %     1,477       9       1,720       97 %     1,660       2.9 %     1,394  
 
Seattle
    2       239       84 %     200       0.5 %     1,415       3       413       75 %     310       0.6 %     1,206  
 
                                                                       
Pacific Total
    40       10,228       91 %     9,266       22.9 %     1,675       36       10,133       91 %     9,178       20.7 %     1,611  
 
                                                                       
 
                                                                                               
Manhattan
    22       957       100 %     957       2.6 %     2,461       22       957       100 %     955       3.2 %     2,419  
Suburban New York — New Jersey
    2       1,162       81 %     944       1.8 %     1,188       4       1,162       81 %     944       1.9 %     1,180  
 
                                                                       
New York Total
    24       2,119       90 %     1,901       4.4 %     1,766       26       2,119       90 %     1,899       5.1 %     1,742  
 
                                                                                               
Washington — NoVA — MD
    17       8,015       88 %     7,048       13.9 %     1,276       17       8,015       84 %     6,744       12.9 %     1,206  
Boston
    11       4,129       100 %     4,129       7.3 %     1,174       11       4,129       100 %     4,129       7.2 %     1,158  
Philadelphia
    7       3,888       94 %     3,664       6.9 %     1,260       7       3,888       91 %     3,541       6.3 %     1,224  
 
                                                                       
Northeast Total
    59       18,151       92 %     16,742       32.5 %     1,309       61       18,151       90 %     16,313       31.5 %     1,266  
 
                                                                       
 
                                                                                               
Miami
    5       2,474       95 %     2,362       5.8 %     1,579       5       2,471       95 %     2,359       5.5 %     1,546  
Palm Beach — Fort Lauderdale
    4       1,265       100 %     1,265       1.3 %     827       4       1,265       93 %     1,179       1.4 %     838  
Orlando
    8       2,651       100 %     2,651       2.4 %     726       10       3,000       90 %     2,708       2.9 %     723  
Tampa
    6       1,755       96 %     1,688       1.7 %     713       6       1,755       92 %     1,621       1.8 %     718  
Jacksonville
    4       1,643       100 %     1,643       1.7 %     772       4       1,643       85 %     1,404       1.5 %     763  
 
                                                                       
Florida Total
    27       9,788       98 %     9,609       12.9 %     970       29       10,134       91 %     9,271       13.1 %     945  
 
                                                                                               
Houston
    6       2,509       82 %     2,050       2.0 %     687       8       3,027       83 %     2,505       2.0 %     673  
Denver
    8       2,177       80 %     1,731       3.0 %     875       9       2,553       78 %     1,991       2.9 %     783  
Phoenix
    12       3,017       86 %     2,605       2.7 %     663       17       4,418       89 %     3,910       3.2 %     594  
Dallas — Fort Worth
    2       569       100 %     569       0.5 %     716       2       569       100 %     569       0.5 %     695  
Atlanta
    5       1,295       87 %     1,125       1.8 %     894       5       1,295       80 %     1,041       1.2 %     865  
 
                                                                       
Sunbelt Total
    60       19,355       91 %     17,689       22.9 %     861       70       21,996       88 %     19,287       22.9 %     808  
 
                                                                       
 
                                                                                               
Chicago
    13       3,993       96 %     3,832       6.9 %     1,156       15       4,633       94 %     4,348       8.0 %     1,087  
 
                                                                       
Total Target Markets
    172       51,727       92 %     47,529       85.2 %     1,191       182       54,913       89 %     49,126       83.1 %     1,120  
 
                                                                       
 
                                                                                               
Other [1]
                                                                                               
Baltimore
    5       1,180       84 %     993       1.5 %     1,091       5       1,180       84 %     993       1.5 %     1,072  
Inland Empire
    2       376       100 %     376       0.4 %     763       2       376       100 %     376       0.4 %     762  
Michigan
    3       3,306       100 %     3,306       3.0 %     598       5       3,688       96 %     3,538       3.0 %     614  
Minneapolis
    2       732       89 %     651       1.7 %     1,516       2       732       89 %     651       1.7 %     1,453  
Nashville
    4       1,114       78 %     865       1.2 %     863       4       1,114       77 %     861       1.2 %     834  
Non-Target Florida
    5       1,202       100 %     1,202       1.2 %     675       9       2,004       100 %     2,004       1.8 %     641  
Norfolk — Richmond
    6       1,643       95 %     1,554       2.5 %     940       6       1,643       94 %     1,551       2.5 %     934  
Providence RI
    2       708       100 %     708       1.2 %     1,087       2       708       100 %     708       1.2 %     1,073  
Other Markets
    4       2,793       94 %     2,636       2.1 %     643       10       4,486       92 %     4,128       3.6 %     654  
 
                                                                       
 
                                                                                               
Total Other
    33       13,054       94 %     12,291       14.8 %     810       45       15,931       93 %     14,810       16.9 %     774  
 
                                                                       
Grand Total
    205       64,781       92 %     59,820       100.0 %   $ 1,112       227       70,844       90 %     63,936       100.0 %   $ 1,040  
 
                                                                       
     
[1]  
For the quarters ended September 30, 2011 and 2010, Aimco’s conventional portfolio included assets in 15 and 17 markets, respectively, in which Aimco invests on an opportunistic basis or that Aimco intends to exit.
     
(IMAGE)   23

 

 


 

(IMAGE)
Supplemental Schedule 7(b)
Total Conventional Portfolio Data by Market
Second Quarter 2011 Market Information
(unaudited)
Aimco’s portfolio strategy focuses on B/B+ quality apartment communities located in the 20 largest U.S. markets as measured by total apartment value, with a target allocation to Conventional Properties of 90% or more. Aimco measures Conventional Property asset quality based on average rents compared to local market average rents as reported by REIS, with A-quality assets earning rents greater than 125% of local market average, B-quality assets earning rents 90% to 125% of local market average and C-quality assets earning rents less than 90% of local market average. Aimco’s geographic allocation strategy focuses on the 20 largest U.S. markets, with market quality measured in part based on long-term growth characteristics.
The following schedule illustrates Aimco’s Conventional Property portfolio quality and market growth projections based on 2Q 2011 data, as this is the most recent period for which third-party data is available.
                                                                         
    Quarter Ended June 30, 2011  
                                                                    2011 - 2013  
                                                            +/- Market     Projected  
                            Effective             Average     Market     Rent     Revenue  
    Properties     Units     Ownership     Units     % AIV NOI     Rent     Rent [1]     Average   Growth [2]  
Target Markets
                                                                       
Los Angeles
    14       4,645       86 %     3,993       10.3 %   $ 1,992     $ 1,353       47.3 %     4.6 %
Orange County
    4       1,213       94 %     1,143       3.0 %     1,522       1,478       3.0 %     5.4 %
San Diego
    10       2,286       94 %     2,144       4.4 %     1,229       1,309       -6.1 %     5.0 %
 
                                                     
Southern CA Total
    28       8,144       89 %     7,280       17.7 %     1,691       1,361       24.3 %     4.8 %
 
                                                                       
East Bay
    2       413       85 %     353       0.7 %     1,233       1,290       -4.4 %     5.4 %
San Francisco
    6       1,084       100 %     1,084       1.9 %     1,522       1,807       -15.8 %     6.4 %
San Jose
    1       224       100 %     224       0.5 %     1,494       1,501       -0.5 %     8.6 %
 
                                                     
Northern CA Total
    9       1,721       97 %     1,661       3.1 %     1,433       1,607       -10.9 %     6.5 %
 
                                                                       
Seattle
    2       239       84 %     200       0.5 %     1,388       987       40.7 %     5.1 %
 
                                                     
Pacific Total
    39       10,104       90 %     9,141       21.2 %     1,642       1,390       18.1 %     5.1 %
 
                                                     
 
                                                                       
Manhattan
    22       957       100 %     957       3.6 %     2,434       2,826       -13.9 %     5.6 %
Suburban New York — New Jersey
    4       1,162       81 %     944       1.8 %     1,183       1,464       -19.2 %     3.7 %
 
                                                     
New York Total
    26       2,119       90 %     1,901       5.4 %     1,755       2,079       -15.6 %     4.9 %
Washington — NoVA — MD
    17       8,015       88 %     7,048       14.1 %     1,256       1,414       -11.2 %     4.5 %
Boston
    11       4,129       100 %     4,129       7.0 %     1,171       1,665       -29.7 %     5.2 %
Philadelphia
    7       3,888       94 %     3,664       6.5 %     1,235       1,014       21.8 %     4.0 %
 
                                                     
Northeast Total
    61       18,151       92 %     16,742       32.9 %     1,293       1,467       -11.8 %     4.6 %
 
                                                     
 
                                                                       
Miami
    5       2,474       95 %     2,362       5.7 %     1,554       1,033       50.4 %     4.1 %
Palm Beach — Fort Lauderdale
    4       1,265       100 %     1,265       1.2 %     817       1,053       -22.4 %     4.2 %
Orlando
    9       2,836       98 %     2,774       2.6 %     723       814       -11.2 %     5.2 %
Tampa
    6       1,755       96 %     1,688       1.7 %     713       797       -10.6 %     4.9 %
Jacksonville
    4       1,643       100 %     1,643       1.7 %     762       759       0.4 %     4.5 %
 
                                                     
Florida Total
    28       9,973       98 %     9,732       13.0 %     953       887       7.5 %     4.5 %
 
Houston
    6       2,509       82 %     2,050       2.0 %     691       737       -6.3 %     5.5 %
Denver
    9       2,553       78 %     1,991       2.9 %     808       823       -1.9 %     5.3 %
Phoenix
    14       3,617       86 %     3,109       3.0 %     632       689       -8.2 %     5.7 %
Dallas — Fort Worth
    2       569       100 %     569       0.6 %     705       758       -6.9 %     5.2 %
Atlanta
    5       1,295       87 %     1,125       1.5 %     875       762       14.8 %     4.7 %
 
                                                     
Sunbelt Total
    64       20,516       91 %     18,576       22.9 %     833       814       2.4 %     4.9 %
 
                                                     
 
                                                                       
Chicago
    15       4,633       97 %     4,472       7.7 %     1,107       1,003       10.4 %     4.6 %
 
                                                     
 
                                                                       
Total Target Markets
    179       53,404       92 %     48,931       84.8 %     1,155       1,148       0.6 %     4.8 %
 
                                                     
 
                                                                       
Other
                                                                       
Baltimore
    5       1,180       84 %     993       1.6 %     1,084       981       10.5 %     4.2 %
Inland Empire
    2       376       100 %     376       0.4 %     753       1,007       -25.2 %     4.8 %
Michigan
    3       3,303       100 %     3,303       2.8 %     588       770       -23.6 %     3.7 %
Minneapolis
    2       732       89 %     651       1.7 %     1,476       916       61.1 %     4.3 %
Nashville
    4       1,114       78 %     865       1.2 %     848       716       18.4 %     4.1 %
Non-Target Florida
    8       1,796       100 %     1,796       1.6 %     640       882       -27.5 %     4.8 %
Norfolk — Richmond
    6       1,643       95 %     1,554       2.5 %     953       839       13.6 %     3.2 %
Providence RI
    2       708       100 %     708       1.1 %     1,081       1,159       -6.7 %     5.4 %
Other Markets
    4       2,793       94 %     2,634       2.4 %     651       708       -8.1 %     4.4 %
 
                                                     
Total Other
    36       13,645       94 %     12,880       15.2 %     794       829       -4.2 %     4.1 %
 
                                                     
Grand Total
    215       67,049       92 %     61,811       100.0 %   $ 1,079     $ 1,081       -0.2 %     4.7 %
 
                                                     
     
[1]  
2Q 2011 REIS
 
[2]  
Represents the average of annual revenue growth projections published by REIS, PPR and Axiometrics, third-party providers of commercial real estate information and analyses.
     
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Supplemental Schedule 8
Property Disposition and Acquisition Activity
(dollars in millions, except average rent) (unaudited)
Third Quarter 2011 Dispositions
                                                                                 
    Number     Number     Weighted             NOI                     Aimco     Aimco        
    of     of     Average     Gross     Cap     Property     Net Sales     Gross     Net     Average  
    Properties     Units     Ownership     Proceeds     Rate [1]     Debt     Proceeds [2]     Proceeds     Proceeds     Rent  
Conventional
    9       2,395       89 %   $ 136.7       7.4 %   $ 71.1     $ 53.8     $ 121.5     $ 54.3     $ 659  
Affordable
    3       266       43 %   $ 17.8       8.3 %   $ 6.4     $ 10.1     $ 4.5     $ 6.1     $ 953  
 
                                                           
Total Dispositions
    12       2,661       84 %   $ 154.5       7.4 %   $ 77.5     $ 63.9     $ 126.0     $ 60.4     $ 690  
 
                                                           
2011 Year-to-Date Dispositions
                                                                                 
    Number     Number     Weighted             NOI                     Aimco     Aimco        
    of     of     Average     Gross     Cap     Property     Net Sales     Gross     Net     Average  
    Properties     Units     Ownership     Proceeds     Rate [1]     Debt     Proceeds [2]     Proceeds     Proceeds     Rent  
Conventional [3]
    18       4,614       88 %   $ 241.0       7.2 %   $ 129.4     $ 84.0     $ 211.4     $ 86.3     $ 637  
Affordable
    15       1,559       34 %   $ 52.2       8.4 %   $ 27.1     $ 21.6     $ 19.7     $ 14.6     $ 674  
 
                                                           
Total Dispositions
    33       6,173       75 %   $ 293.2       7.3 %   $ 156.5     $ 105.6     $ 231.1     $ 100.9     $ 646  
 
                                                           
     
[1]  
NOI Cap Rate is calculated based on Aimco’s share of the the trailing twelve month NOI prior to sale, less a 3.5% management fee, divided by the gross proceeds, which excludes prepayment penalties associated with the related property debt.
 
[2]  
Net Sales Proceeds are after repayment of existing debt, net working capital settlements, payment of transaction costs and debt prepayment penalties.
 
[3]  
Year-to-date, Aimco has disposed of Conventional Properties in the following markets:
                 
Market   Properties     Units  
Target:
               
Chicago
    2       640  
Denver
    1       376  
Houston
    1       326  
Orlando
    1       185  
Phoenix
    5       1,402  
Seattle
    1       174  
 
           
Total Target
    11       3,103  
 
           
Other:
               
Cincinnati
    1       231  
Daytona Beach FL
    1       208  
Indianapolis — Fort Wayne
    1       328  
Lima, OH
    1       150  
Melbourne FL
    3       594  
 
           
Total Other
    7       1,511  
 
           
Total Sales
    18       4,614  
 
           
2011 Year-to-Date Acquisitions
During 2011, Aimco acquired the remaining noncontrolling limited partnership interests in six consolidated real estate partnerships that own nine properties and in which Aimco affiliates serve as general partner for a total cost of $13.6 million. The gross estimated fair value of the real estate corresponding to the interests Aimco acquired totaled $84.9 million.
During 2011, Aimco acquired a vacant, 126-unit property located in San Francisco’s Marin County submarket. Aimco intends to redevelop the property, increasing its total investment in the property to approximately $65.0 million upon completion. Additionally, during 2011, Aimco acquired noncontrolling interests (approximately 50%) in entities that own four contigous properties with 142 units located in La Jolla, California (near San Diego).
     
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Supplemental Schedule 9
Capital Additions
(in thousands, except per unit data) (unaudited)
All capital additions are classified as either Capital Replacements (“CR”), Capital Improvements (“CI”), property upgrades, redevelopment or casualties. Non-redevelopment and non-casualty capital additions are apportioned between CR and CI based on the useful life of the capital item under consideration and the period Aimco has owned the property (i.e., the portion that was consumed during Aimco’s ownership of the item represents CR; the portion of the item that was consumed prior to Aimco’s ownership represents CI). See the Glossary for further descriptions.
Amounts below represent actual additions related to residential properties that are owned and managed by Aimco at the end of the period. These amounts include consolidated and unconsolidated properties and are not adjusted for Aimco’s ownership interest in such properties. Amounts do not include capital additions related to:
   
properties sold during the period or properties held for sale at the end of the period;
   
properties that are not multi-family such as commercial properties or fitness facilities; and
   
properties that Aimco owns but does not manage.
See the Glossary for a reconciliation of these amounts to GAAP capital additions.
                                                 
    Actual Additions     Actual Additions  
    Three Months Ended September 30, 2011     Nine Months Ended September 30, 2011  
    Conventional     Affordable     Total     Conventional     Affordable     Total  
 
Capital Additions
                                               
Capital Replacements
                                               
Buildings and grounds
  $ 12,949     $ 1,363     $ 14,312     $ 25,777     $ 4,052     $ 29,829  
Turnover capital additions
    5,807       1,096       6,903       13,646       3,200       16,846  
Capitalized site payroll and indirect costs
    1,480       170       1,650       6,328       934       7,262  
 
                                   
Total Capital Replacements
    20,236       2,629       22,865       45,751       8,186       53,937  
Capital Improvements
    20,811       827       21,638       35,522       3,113       38,635  
Redevelopment Additions
    7,553       (33 )     7,520       19,679       (224 )     19,455  
Casualties
    3,089       572       3,661       8,300       1,141       9,441  
 
                                   
Total Capital Additions
  $ 51,689     $ 3,995     $ 55,684     $ 109,252     $ 12,216     $ 121,468  
 
                                   
 
                                               
Capital Replacements and Improvements per Unit
                                               
Total units
    63,335       18,864       82,199       63,335       18,864       82,199  
 
Total Capital Replacements per unit
  $ 320     $ 139     $ 278     $ 722     $ 434     $ 656  
Capital Improvements per unit
    329       44       263       561       165       470  
 
                                   
Total Capital Replacements and Improvements per unit
  $ 649     $ 183     $ 541     $ 1,283     $ 599     $ 1,126  
 
                                   
     
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GLOSSARY AND RECONCILIATIONS OF NON-GAAP FINANCIAL and OPERATING MEASURES
This Earnings Release and Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. Aimco’s definition and calculation of these non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. These non-GAAP financial and operating measures should not be considered an alternative to GAAP net income or any other GAAP measurement of performance and should not be considered an alternative measure of liquidity.
ACQUISITION PROPERTIES: Properties that have been acquired during the twelve months prior to the current quarter-end that have not reached a stabilized level of occupancy during the current period and each period for which comparable results are presented.
ADJUSTED FUNDS FROM OPERATIONS (AFFO): AFFO is Pro forma FFO, as defined below, less Capital Replacement additions, also defined below, and adjusted for the Aimco Operating Partnership’s share of such Capital Replacements. Similar to FFO, AFFO is helpful to investors in understanding Aimco’s performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. There can be no assurance that Aimco’s method for computing AFFO is comparable with that of other real estate investment trusts.
AFFORDABLE PROPERTIES: Affordable Properties benefit from governmental programs intended to provide housing to people with low or moderate incomes. These programs, which are usually administered by the U.S. Department of Housing and Urban Development (HUD) or state housing finance agencies, typically provide mortgage insurance, favorable financing terms, tax credit equity, or rental assistance payments to the property owners. Under these programs, rent adjustments are made in accordance with property-specific contracts between Aimco and HUD, with rent increases generally based on an adjustment factor set by HUD annually. Aimco targets an investment in Affordable Properties of 10% or less of Net Asset Value, which serves to offset the volatility of our Conventional portfolio; provide revenue growth that over time is similar to that of Conventional Properties; expand our investment opportunities; and provide helpful positioning with government bodies, benefiting Aimco’s business overall.
AIMCO OPERATING PARTNERSHIP: AIMCO Properties, L.P., a Delaware limited partnership, is the operating partnership in Aimco’s UPREIT structure. Aimco owns approximately 93% of the common partnership units of the Aimco Operating Partnership.
AIMCO PROPORTIONATE FINANCIAL INFORMATION: Non-GAAP measures representing Aimco’s share of financial information discussed in this Earnings Release and Supplemental Information. Aimco’s proportionate share of financial information includes Aimco’s share of unconsolidated real estate partnerships and excludes noncontrolling interests in consolidated real estate partnerships. Proportionate reporting benefits the users of Aimco’s financial information by providing the amount of revenues, expenses, assets and liabilities attributable only to Aimco stockholders. Aimco also refers to this measure as “Aimco’s Share” of financial information. See Supplemental Schedules 1, 3 and 4 for reconciliation of Aimco’s proportionate share of financial results to Aimco’s consolidated financial statements.
     
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CAPITAL ADDITIONS DEFINITIONS AND RECONCILIATION
CAPITAL IMPROVEMENTS (CI): CI additions include all non-redevelopment capital additions that are made to enhance the value, profitability or useful life of an asset from its original purchase condition.
CAPITAL REPLACEMENTS (CR): Unlike CI additions, CR additions do not increase the useful life of an asset from its original purchase condition. They represent the share of additions that are deemed to replace the consumed portion of acquired capital assets. CR additions are deducted in the calculation of AFFO.
CASUALTY CAPITAL ADDITIONS: Capitalized costs incurred in connection with casualty losses and are associated with the restoration of the asset. A portion of the restoration costs is reimbursed by insurance carriers net of deductibles associated with each loss.
Supplemental Schedule 9 contains capital additions information related to (1) residential properties that Aimco owns and manages at the end of the period, (2) properties that are consolidated in Aimco’s GAAP financial statements, and (3) properties that are accounted for under the equity method of accounting in Aimco’s GAAP financial statements. Amounts do not include capital additions related to:
   
consolidated properties sold during the period or properties held for sale at the end of the period;
 
   
consolidated properties that are not multi-family such as commercial properties or fitness facilities; or
 
   
consolidated properties that Aimco owns but does not manage.
Aimco believes the capital addition detail provided in Supplemental Schedule 9 provides an enhanced understanding of capital additions related to our primary business of owning and operating apartment communities. A reconciliation of capital additions presented on Supplemental Schedule 9 to Aimco’s consolidated GAAP information is presented below.
                 
    Three Months Ended     Nine Months Ended  
(in thousands) (unaudited)   September 30, 2011     September 30, 2011  
 
               
Capital Additions per Schedule 9
  $ 55,684     $ 121,468  
 
               
Capital additions related to:
               
 
               
Unconsolidated real estate partnerships
    (117 )     (243 )
Consolidated sold and held for sale properties
    257       1,709  
Consolidated properties Aimco owns but does not manage
    309       472  
 
           
 
               
Consolidated capital additions
  $ 56,133     $ 123,406  
 
           
CONVENTIONAL PROPERTIES: Conventional Properties represent Aimco’s portfolio of market-rate apartment communities. Aimco focuses on owning and operating apartment communities with rents that are 100% to 125% of local market average rents and concentrates its investment in the 20 largest apartment markets in the United States, as measured by apartment value. Aimco targets an investment in Conventional Properties of 90% or more of Net Asset Value.
DEBT SERVICE COVERAGE RATIO: As defined in Aimco’s credit agreement, the ratio of (a) Aimco’s adjusted total earnings before interest, taxes, depreciation and amortization (which is reduced by certain capital expenditure reserves) to (b) the actual debt service, for the four fiscal quarters preceding the date of calculation.
EFFECTIVE UNITS: Unit count at 100% ownership multiplied by Aimco’s ownership share. Effective Units may be used to analyze Aimco’s proportionate financial measures on a per-unit basis.
     
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EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA): EBITDA is equal to Aimco’s adjusted total earnings before interest, taxes, depreciation and amortization as defined in Aimco’s credit agreement before capital addition reserves provided for in Aimco’s credit agreement. EBITDA is the numerator used in Aimco’s calculation of EBITDA Coverage of Interest Ratio and EBITDA Coverage of Preferred Dividends and Interest Ratio.
EBITDA COVERAGE OF INTEREST RATIO: The ratio of (a) Aimco’s EBITDA to (b) total interest expense charges, as provided for in Aimco’s credit agreement, for the four fiscal quarters preceding the date of calculation. This ratio is similar to Aimco’s Debt Service Coverage Ratio with the exception that Aimco’s EBITDA Coverage of Interest Ratio does not include capital addition reserves in the numerator and does not include debt amortization or capitalized interest in the denominator, while Debt Service Coverage Ratio does include these items. Aimco’s credit agreement does not contain any compliance thresholds for the EBITDA Coverage of Interest Ratio; however, Aimco management uses this ratio as one measure of leverage.
EBITDA COVERAGE OF INTEREST AND PREFERRED DIVIDENDS RATIO: The ratio of (a) Aimco’s EBITDA to (b) the sum of total interest expense and dividends/distributions on preferred shares/units, as provided for in Aimco’s credit agreement, for the four fiscal quarters preceding the date of calculation. This ratio is similar to Aimco’s Fixed Charge Coverage Ratio with the exception that Aimco’s EBITDA Coverage of Interest and Preferred Dividends Ratio does not include capital addition reserves in the numerator and does not include debt amortization or capitalized interest in the denominator, while Fixed Charge Coverage Ratio does include these items. Aimco’s credit agreement does not contain any compliance thresholds for the EBITDA Coverage of Interest and Preferred Dividends Ratio; however, Aimco management uses this ratio as one measure of leverage.
FIXED CHARGE COVERAGE RATIO: As defined in Aimco’s credit agreement, the ratio of (a) Aimco’s adjusted total earnings before interest, taxes, depreciation and amortization (which is reduced by certain capital expenditure reserves) to (b) fixed charges, which represents the sum of total interest expense, debt amortization and dividends/distributions on preferred shares/units, for the four fiscal quarters preceding the date of calculation.
FEE MANAGED PROPERTIES: Aimco provides property management and/or asset management services for a portfolio of properties, primarily pursuant to long-term arrangements with affiliated parties. In certain cases, Aimco may indirectly own generally less than one percent of the operations of such properties through a partnership syndication or other fund.
FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance, which the National Association of Real Estate Investment Trusts (NAREIT) defines as net income, computed in accordance with GAAP, excluding gains from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Aimco computes FFO for all periods presented in accordance with the guidance set forth by NAREIT’s April 1, 2002 White Paper.
In addition to FFO, Aimco uses PRO FORMA FUNDS FROM OPERATIONS (Pro forma FFO) to measure performance. Pro forma FFO represents FFO as defined above, excluding operating real estate impairments and preferred stock redemption related amounts (adjusted for noncontrolling interests). Both operating real estate impairment losses and preferred stock redemption related amounts are recurring items that affect Aimco’s operating results. Operating real estate impairment losses, net of related income tax benefits and noncontrolling interests, are excluded from Pro forma FFO because Aimco believes the inclusion of such losses in FFO is inconsistent with the treatment of gains on the disposition of operating real estate, which are not included in FFO. Aimco excludes preferred redemption related amounts (gains or losses) from Pro forma FFO because such amounts are not representative of operating results.
     
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FFO and Pro forma FFO are helpful to investors in understanding Aimco’s performance because they capture features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. There can be no assurance that Aimco’s method for computing FFO is comparable with that of other real estate investment trusts. Net income (loss) attributable to Aimco common stockholders as determined in accordance with GAAP is reconciled to FFO and Pro forma FFO as presented on Supplemental Schedule 1 below.
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
(in thousands) (unaudited)   2011     2010     2011     2010  
 
                               
Net loss attributable to Aimco common stockholders
  $ (14,801 )   $ (28,500 )   $ (79,751 )   $ (86,891 )
Adjustments:
                               
Depreciation and amortization
    97,321       101,704       287,739       305,066  
Depreciation and amortization related to non-real estate assets
    (3,372 )     (3,498 )     (9,833 )     (11,238 )
Depreciation of rental property related to noncontrolling partners and unconsolidated entities
    (7,553 )     (8,706 )     (24,957 )     (29,768 )
(Gain) loss on dispositions of unconsolidated real estate and other, net of noncontrolling partners’ interest
    (245 )     2,294       (1,038 )     1,196  
Discontinued operations:
                               
Gain on dispositions of real estate, net of noncontrolling partners’ interest
    (24,200 )     (13,375 )     (43,598 )     (52,853 )
Depreciation of rental property, net of noncontrolling partners’ interest
    847       5,051       6,653       17,093  
Income tax expense (benefit) arising from disposals
    (37 )     (48 )     223       (948 )
Common noncontrolling interests in Aimco Operating Partnership’s share of above adjustments
    (4,198 )     (5,788 )     (14,744 )     (15,891 )
Preferred stock dividends
    12,513       13,576       37,390       39,405  
Preferred stock redemption related amounts
    788             (1,961 )     (2,779 )
Amounts allocable to partcipating securities
    58       2       169        
 
                       
Funds From Operations
  $ 57,121     $ 62,712     $ 156,292     $ 162,392  
Preferred stock dividends
    (12,513 )     (13,576 )     (37,390 )     (39,405 )
Preferred stock redemption related amounts
    (788 )           1,961       2,779  
Amounts allocable to participating securities
    (175 )     (193 )     (527 )     (537 )
 
                       
Funds From Operations Attributable to Aimco Common Stockholders — Diluted
  $ 43,645     $ 48,943     $ 120,336     $ 125,229  
 
                       
Operating real estate impairment losses, net of noncontrolling partners’ interest and related income tax benefit
    5,770       (697 )     9,950       11,214  
Preferred equity redemption related amounts
    788       (1,765 )     (1,961 )     (4,544 )
Common noncontrolling interests in Aimco Operating Partnership’s share of above adjustments
    (448 )     172       (547 )     (464 )
Amounts allocable to participating securities
    (24 )     12       (34 )     (33 )
 
                       
Pro Forma Funds From Operations Attributable to Aimco Common Stockholders — Diluted
  $ 49,731     $ 46,665     $ 127,744     $ 131,402  
 
                       
Capital Replacements, net of common noncontrolling interests in Aimco Operating Partnership
    (20,416 )     (16,866 )     (48,111 )     (44,692 )
Amounts allocable to participating securities
    142       86       392       234  
 
                       
Adjusted Funds From Operations Attributable to Aimco Common Stockholders — Diluted
  $ 29,457     $ 29,885     $ 80,025     $ 86,944  
 
                       
 
                               
Weighted average shares — diluted FFO
    120,670       116,730       119,269       116,574  
Funds From Operations per share (diluted)
  $ 0.36     $ 0.42     $ 1.01     $ 1.07  
Pro forma Funds From Operations per share (diluted)
  $ 0.41     $ 0.40     $ 1.07     $ 1.13  
Adjusted Funds From Operations per share (diluted)
  $ 0.24     $ 0.26     $ 0.67     $ 0.75  
     
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OTHER AFFORDABLE PROPERTIES: Affordable Properties that do not meet the Same Store property definition because (1) the property is under redevelopment, (2) the property is not managed by Aimco, and/or (3) Aimco’s ownership in the property is less than 10%.
OTHER CONVENTIONAL PROPERTIES: Conventional Properties that have significant rent control restrictions, university housing properties, non-multi-family such as commercial properties or fitness facilities and properties that have not reached and maintained a stabilized level of occupancy during the reporting periods, often due to a casualty event.
OTHER EXPENSES, NET: Other expenses, net includes franchise taxes, risk management activities related to our unconsolidated partnerships, certain other corporate expenses and partnership expenses (partnership level expenses incurred directly or indirectly for services such as audit, tax and legal).
PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property management revenues, primarily from affiliates; casualties; off-site property management expenses; depreciation; or interest expense. NOI is helpful because it helps both investors and management to understand the operating performance of real estate excluding costs associated with decisions about acquisition pricing, overhead allocations and financing arrangements. NOI is considered by many in the real estate industry to be a useful measure for determining the value of real estate. A reconciliation of NOI as presented in this Earnings Release and Supplemental Information to Aimco’s consolidated GAAP amounts is provided below and on the following page.
     
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Reconciliation of Propertionate Property NOI Amounts in Supplemental Schedule 1(a) to Proportionate Property NOI Amounts Included in Aimco’s Earnings Release and Supplemental Schedule 6(a)
Third Quarter 2011 Compared to Third Quarter 2010
(in thousands) (unaudited)
                                                                 
    Three Months Ended September 30, 2011     Three Months Ended September 30, 2010  
    Proportionate     Properties Owned     Ownership     Proportionate     Proportionate     Properties Owned     Ownership     Proportionate  
    Amount     but Not Managed     Adjustments     Property Amount     Amount     but Not Managed     Adjustments     Property Amount  
Real estate operations:
                                                               
Rental and other property revenues
                                                               
Conventional Same Store
  $ 186,965     $     $ (255 )   $ 186,710     $ 176,888     $     $ 3,532     $ 180,420  
Affordable Same Store
    32,715                   32,715       31,568             5       31,573  
 
                                               
Total Same Store
    219,680             (255 )     219,425       208,456             3,537       211,993  
Other Conventional
    20,716       (1,309 )     (2 )     19,405       21,092       (1,196 )     351       20,247  
Other Affordable
    2,981       (2,981 )                 3,389       (3,389 )            
 
                                               
Total rental and other property revenues
    243,377       (4,290 )     (257 )     238,830       232,937       (4,585 )     3,888       232,240  
 
                                                               
Property operating expenses
                                                               
Conventional Same Store
    69,914             217       70,131       65,665             1,580       67,245  
Affordable Same Store
    13,377             (4 )     13,373       13,758             7       13,765  
 
                                               
Total Same Store
    83,291             213       83,504       79,423             1,587       81,010  
Other Conventional
    10,122       (747 )     8       9,383       9,703       (655 )     174       9,222  
Other Affordable
    1,597       (1,597 )                 1,904       (1,904 )            
 
                                               
Total property operating expenses
    95,010       (2,344 )     221       92,887       91,030       (2,559 )     1,761       90,232  
 
                                               
 
                                                               
Property NOI:
                                                               
Conventional Same Store
    117,051             (472 )     116,579       111,223             1,952       113,175  
Affordable Same Store
    19,338             4       19,342       17,810             (2 )     17,808  
 
                                               
Total Same Store
    136,389             (468 )     135,921       129,033             1,950       130,983  
Other Conventional
    10,594       (562 )     (10 )     10,022       11,389       (541 )     177       11,025  
Other Affordable
    1,384       (1,384 )                 1,485       (1,485 )            
 
                                               
Net real estate operations
  $ 148,367     $ (1,946 )   $ (478 )   $ 145,943     $ 141,907     $ (2,026 )   $ 2,127     $ 142,008  
 
                                               
 
    % Aimco                                            
    3Q 2011 NOI     Revenue     Expenses     NOI                          
Year-over-Year Change:
                                                               
Conventional Same Store
    80 %     3.5 %     4.3 %     3.0 %                                
Affordable Same Store
    13 %     3.6 %     -2.8 %     8.6 %                                
 
                                                       
Total Same Store
    93 %     3.5 %     3.1 %     3.8 %                                
Other Conventional
    7 %     -4.2 %     1.7 %     -9.1 %                                
 
                                                       
Net real estate operations
    100 %     2.8 %     2.9 %     2.8 %                                
 
                                                       
     
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Reconciliation of GAAP to Supplemental Schedule 6(b) Proportionate Conventional Same Store NOI Amounts
(in thousands) (unaudited)
                                                 
    Three Months Ended June 30, 2011  
            Proportionate                          
            Share of                          
    Consolidated     Unconsolidated     Noncontrolling     Proportionate     Ownership     Proportionate  
    Amounts     Partnerships     Interests     Amount     Adjustments     Property Amount  
Conventional Same Store:
                                               
Rental and other property revenues
  $ 197,529     $     $ (13,445 )   $ 184,084     $ (249 )   $ 183,835  
Property operating expenses
    71,486             (5,084 )     66,402       202       66,604  
 
                                   
Property NOI
  $ 126,043     $     $ (8,361 )   $ 117,682     $ (451 )   $ 117,231  
 
                                   
     
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Reconciliation of Propertionate Property NOI Amounts in Supplemental Schedule 1(b) to Proportionate Property NOI Amounts Included in Aimco’s Earnings Release and Supplemental Schedule 6(c)
Nine Months Ended September 30, 2011 Compared to Nine Months Ended September 30, 2010
(in thousands) (unaudited)
                                                                                 
    Nine Months Ended September 30, 2011     Nine Months Ended September 30, 2010  
    Proportionate     Properties Owned     Population     Ownership     Proportionate     Proportionate     Properties Owned     Population     Ownership     Proportionate  
    Amount     but Not Managed     Changes     Adjustments     Property Amount     Amount     but Not Managed     Changes     Adjustments     Property Amount  
Real estate operations:
                                                                               
Rental and other property revenues
                                                                               
Conventional Same Store
  $ 552,732     $     $ (5,314 )   $ 566     $ 547,984     $ 529,017     $     $ (5,148 )   $ 10,694     $ 534,563  
Affordable Same Store
    97,947             (10,817 )           87,130       93,831             (10,229 )     16       83,618  
 
                                                           
Total Same Store
    650,679             (16,131 )     566       635,114       622,848             (15,377 )     10,710       618,181  
Other Conventional
    63,949       (3,696 )     5,314       137       65,704       63,383       (3,543 )     5,148       1,089       66,077  
Other Affordable
    8,520       (8,520 )     10,817             10,817       8,633       (8,633 )     10,229             10,229  
 
                                                           
Total rental and other property revenues
    723,148       (12,216 )           703       711,635       694,864       (12,176 )           11,799       694,487  
 
                                                                               
Property operating expenses
                                                                               
Conventional Same Store
    203,325             (2,456 )     1,146       202,015       202,151             (2,432 )     5,016       204,735  
Affordable Same Store
    40,539             (4,401 )     (52 )     36,086       42,311             (4,142 )     21       38,190  
 
                                                           
Total Same Store
    243,864             (6,857 )     1,094       238,101       244,462             (6,574 )     5,037       242,925  
Other Conventional
    30,836       (2,293 )     2,456       112       31,111       30,096       (2,232 )     2,432       581       30,877  
Other Affordable
    4,938       (4,937 )     4,401             4,402       5,028       (5,029 )     4,142             4,141  
 
                                                           
Total property operating expenses
    279,638       (7,230 )           1,206       273,614       279,586       (7,261 )           5,618       277,943  
 
                                                           
 
                                                                               
Property NOI:
                                                                               
Conventional Same Store
    349,407             (2,858 )     (580 )     345,969       326,866             (2,716 )     5,678       329,828  
Affordable Same Store
    57,408             (6,416 )     52       51,044       51,520             (6,087 )     (5 )     45,428  
 
                                                           
Total Same Store
    406,815             (9,274 )     (528 )     397,013       378,386             (8,803 )     5,673       375,256  
Other Conventional
    33,113       (1,403 )     2,858       25       34,593       33,287       (1,311 )     2,716       508       35,200  
Other Affordable
    3,582       (3,583 )     6,416             6,415       3,605       (3,604 )     6,087             6,088  
 
                                                           
Net real estate operations
  $ 443,510     $ (4,986 )   $     $ (503 )   $ 438,021     $ 415,278     $ (4,915 )   $     $ 6,181     $ 416,544  
 
                                                           
                                                                                 
    % Aimco                                                          
    YTD 2011 NOI     Revenue     Expenses     NOI                                        
Year-over-Year Change:
                                                                               
Conventional Same Store
    79 %     2.5 %     -1.3 %     4.9 %                                                
Affordable Same Store
    12 %     4.2 %     -5.5 %     12.4 %                                                
 
                                                                       
Total Same Store
    91 %     2.7 %     -2.0 %     5.8 %                                                
Other Conventional
    8 %     -0.6 %     0.8 %     -1.7 %                                                
Other Affordable
    1 %     5.7 %     6.3 %     5.4 %                                                
 
                                                                       
Net real estate operations
    100 %     2.5 %     -1.6 %     5.2 %                                                
 
                                                                       
     
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Reconciliation of GAAP to Supplemental Schedule 3 Trailing Twelve Month (TTM) Proportionate NOI Amounts
(in thousands) (unaudited)
                                                                 
                                    Y2010 to Y2011     Subtract     Add        
                                    Property     Nine Months     Nine Months        
    Year Ended December 31, 2010     Classification,     Ended     Ended        
            Proportionate                     Discontinued     September 30,     September 30,        
            Share of                     Operations and GAAP     2010     2011     TTM  
    Consolidated     Unconsolidated     Noncontrolling     Proportionate     Consolidation     Proportionate     Proportionate     Proportionate  
    Amount     Partnerships     Interests     Amount     Accounting Changes     Amount     Amount     Amount  
Rental and other property revenues:
                                                               
Conventional Same Store properties
  $ 816,986     $     $ (68,608 )   $ 748,378     $ (39,733 )   $ (529,017 )   $ 552,732     $ 732,360  
Other Conventional properties
    82,855       4,730       (8,047 )     79,538       6,471       (63,383 )     63,949       86,575  
Affordable properties
    206,681       10,809       (74,100 )     143,390       (4,926 )     (102,464 )     106,467       142,467  
 
                                               
Total rental and other property revenues
    1,106,522       15,539       (150,755 )     971,306       (38,188 )     (694,864 )     723,148       961,402  
 
                                                               
Property operating expenses:
                                                               
Conventional Same Store properties
    312,904             (27,519 )     285,385       (18,381 )     (202,151 )     203,325       268,178  
Other Conventional properties
    39,687       3,008       (3,941 )     38,754       1,529       (30,096 )     30,836       41,023  
Affordable properties
    99,708       6,398       (39,933 )     66,173       (2,792 )     (47,339 )     45,477       61,519  
 
                                               
Total property operating expenses
    452,299       9,406       (71,393 )     390,312       (19,644 )     (279,586 )     279,638       370,720  
 
                                                               
Net operating income:
                                                               
Conventional Same Store properties
    504,082             (41,089 )     462,993       (21,352 )     (326,866 )     349,407       464,182  
Other Conventional properties
    43,168       1,722       (4,106 )     40,784       4,942       (33,287 )     33,113       45,552  
Affordable properties
    106,973       4,411       (34,167 )     77,217       (2,134 )     (55,125 )     60,990       80,948  
 
                                               
Total rental and other property revenues
  $ 654,223     $ 6,133     $ (79,362 )   $ 580,994     $ (18,544 )   $ (415,278 )   $ 443,510     $ 590,682  
 
                                               
     
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REDEVELOPMENT PROPERTIES: Properties where (1) a substantial number of available units have been vacated for major renovations or have not been stabilized in occupancy for at least one year as of the earliest period presented, or (2) other significant renovation, such as exteriors, common areas or unit improvements (done upon lease expirations), is underway or has been complete for less than one year, as of the earliest period presented. In both cases the properties have been removed from the Same Store portfolio. Redevelopment properties are classified as either Conventional or Affordable. Aimco combines Affordable Redevelopment Properties with Other Affordable Properties for financial reporting purposes within its Supplemental Schedules 1 and 2.
SAME STORE PROPERTIES: Same Store properties are those properties (1) that are managed by Aimco, (2) in which Aimco’s ownership exceeds 10%, and (3) that have reached and maintained a stabilized level of occupancy during the current period and each period for which comparable results are presented. Same Store properties are classified as either Conventional or Affordable and properties classified in the consolidated financial statements as held for sale are not included in Same Store. To ensure comparability between periods, the proportionate Conventional Same Store information shown on Supplemental Schedules 6a through 6c is based on Aimco’s current period ownership.
     
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