Shares of real estate investment trust Apartment Investment and Management (AIV) - Get Report dropped more than 80% Tuesday after the company announced the separation of its businesses, creating two separate publicly traded companies.
Apartment Investment now will be two separate companies, Apartment Income REIT Corp (AIR) and Aimco. Aimco will retain its apartment community development and redevelopment business while also pursuing other investments in the U.S. multifamily home sector.
The distribution of shares of AIR common stock was completed Tuesday with each Aimco shareholder of record receiving one share of AIR Class A common stock for every one share of Aimco Class A stock held as of the close of business of Dec. 5.
Aimco shares were down 86.3% to $5.51 Tuesday morning, but that number may be skewed and not yet account for the separation of the business.
AIR has about 90% of the previous company's assets and is trading on the New York Stock Exchange under the ticker symbol "AIRC."
"I would like to thank all those whose contributions made the separation possible, our shareholders whose insight was invaluable and our teammates and partners who worked countless hours to bring our plans to fruition. I am energized by the exciting opportunities that lie ahead for Aimco and wish my friends at AIR continued success," said Aimco CEO Wes Powell.
Citigroup is serving as the financial adviser for the move, with Morgan Stanley and J.P. Morgan also providing services.