Aimco Reports Second Quarter 2012 Results

Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today its second quarter 2012 results.

Chairman and Chief Executive Officer Terry Considine comments: “Aimco enjoyed an excellent second quarter with solid progress on all fronts. Our business remains good with steady customer demand driving higher rents. Our portfolio continues to improve with the sale of lower-rated properties funding accretive redevelopments. Our balance sheet is stronger by $642 million raised in two equity offerings, and the subsequent redemption of $601 million of preferred stock. Our prospects are good as we enter the second half of the year; our Board of Directors agrees, and has increased Aimco's quarterly common stock dividend to $0.20 per share.”

Chief Financial Officer Ernie Freedman adds: “Aimco's recent equity activities, including our common stock offerings and preferred stock redemptions, and the common dividend increase, are expected to increase net annual cash flows by $18 million, and to increase annualized Pro forma FFO and AFFO by $0.04 and $0.12 per share, respectively. These activities have also accelerated progress toward our balance sheet targets. We now expect to achieve our stated Debt and Preferred Stock to EBITDA target of 7.0x in early 2014, or almost two years earlier than anticipated at the beginning of this year, and our EBITDA to Interest and Preferred Stock Dividends target of 2.5x even sooner.”

Financial Results

Second Quarter Pro forma FFO Up 10%, AFFO Up 17%
      SECOND QUARTER   YEAR-TO-DATE
      2012   2011   2012   2011
Net income (loss) per common share     $ 0.00     $ (0.28 )   $ (0.08 )   $ (0.55 )
Funds from Operations (FFO)     $ 0.38     $ 0.29     $ 0.78     $ 0.68  
Add back (deduct) Aimco's share of preferred equity redemption related amounts     $ 0.08     $ (0.02 )   $ 0.08     $ (0.02 )
Pro forma Funds from Operations (Pro forma FFO)     $ 0.46     $ 0.27     $ 0.86     $ 0.66  
Deduct Aimco's share of Capital Replacements     $ (0.12 )   $ (0.13 )   $ (0.23 )   $ (0.23 )
Adjusted Funds From Operations (AFFO)     $ 0.34     $ 0.14     $ 0.63     $ 0.43  
         

Second quarter and year-to-date 2011 financial results include a deduction 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 during that period. Excluding these charges, comparable second quarter and year-to-date Pro forma FFO and AFFO were $0.42 per share and $0.29 per share, respectively.

Pro forma FFO - Pro forma FFO increased 10% when compared to second quarter 2011, excluding the charges described above. Increased Pro forma FFO is the result of: improved property operating results; additional income generated by investments in partnership tenders and mergers; and interest expense savings due to refinancing maturing property debt at lower average interest rates. Pro forma FFO exceeded the high end of Aimco's guidance for the quarter by $0.03 per share, primarily due to higher than expected property revenue growth, lower than anticipated property expenses, and lower than anticipated casualty losses.

Adjusted Funds from Operations - AFFO increased 17% when compared to second quarter 2011, excluding the charges described above. Capital Replacements continue to decline year-over-year in line with the reduced number of apartment units as Aimco's portfolio is concentrated in fewer properties, generating AFFO growth in excess of Pro forma FFO growth.

Property Operations

Aimco's property operations consist primarily of Conventional real estate operations, which relate to Aimco's diversified portfolio of market-rate apartment communities and include Same Store Properties, Redevelopment Properties, Acquisition Properties and Other Properties.

Aimco also operates a portfolio of Affordable Properties. Aimco's Affordable real estate operations consist of properties with rents that are generally paid, in whole or in part, by a government agency. Over the next four to five years, Aimco expects to dispose of these properties and reinvest capital in its Conventional portfolio.

In order to ensure comparability between periods, property operating results below are based on Aimco's ownership interest as of June 30, 2012. See the Glossary for definitions and reconciliation of non-GAAP measures.

Total Same Store NOI Up 6.1% for Second Quarter and Year-Over-Year
        SECOND QUARTER

Year-over-Year
  YEAR-TO-DATE

Year-over-Year
    % NOI   Revenue   Expenses   NOI   Revenue   Expenses   NOI
Conventional Same Store   82%   4.6%   2.4%   5.9%   4.4%   1.0%   6.3%
Affordable Same Store   12%   4.3%   0.6%   7.0%   3.7%   2.7%   4.4%
Total Same Store   94%   4.6%   2.1%   6.1%   4.3%   1.3%   6.1%
             

Conventional Same Store Results
    SECOND QUARTER   YEAR-TO-DATE
      Year-over-Year   Sequential   Year-over-Year
      2012     2011   Variance   1st Qtr   Variance   2012   2011   Variance
Average Rent Per Unit     $ 1,140       $ 1,091     4.5 %   $ 1,126     1.2 %   $ 1,133     $ 1,085     4.4 %
Other Income Per Unit     136       122     11.5 %   129     5.4 %   132     122     8.2 %
Average Revenue Per Unit     $ 1,276       $ 1,213     5.2 %   $ 1,255     1.7 %   $ 1,265     $ 1,207     4.8 %
Average Daily Occupancy     95.5 %     95.9 %   -0.4%   96.0 %   -0.5%   95.7 %   96.2 %   -0.5%
                                     
$ in Millions                                    
Revenue     $ 192.2       $ 183.6     4.6 %   $ 190.2     1.0 %   $ 382.4     $ 366.3     4.4 %
Expenses     (68.0 )     (66.4 )   2.4 %   (67.5 )   0.6 %   (135.5 )   (134.2 )   1.0 %
NOI     $ 124.2       $ 117.2     5.9 %   $ 122.7     1.2 %   $ 246.9     $ 232.1     6.3 %
             

Rental Rates Rising
2012   1st Qtr   Apr   May   Jun   2nd Qtr   Year-to-Date
New lease increases   2.0%   4.8%   4.7%   3.8%   4.3%   3.4%
Renewal increases   5.1%   5.6%   5.4%   6.1%   5.7%   5.4%
Weighted average   3.4%   5.1%   5.1%   4.8%   5.0%   4.3%
           

Affordable Same Store Results - For second quarter 2012, average month-end occupancy for the Affordable portfolio was 98.6%, an increase of 0.9% from second quarter 2011, while average revenue per unit increased 3.4% from $935 to $967 per unit.

Refer to Supplemental Schedules 6a through 6d for additional details on Conventional Same Store operating results.

Portfolio Management

Aimco's portfolio strategy focuses on B/B+ quality conventional apartment communities located in the largest U.S. markets as measured by total apartment value.

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 asset quality as follows: A-quality assets are those with rents greater than 125% of local market average; B-quality assets are those with rents 90% to 125% of local market average; and C-quality assets are those with rents less than 90% of local market average. For first quarter 2012, the most recent period for which REIS information is available, Aimco's Conventional Property rents averaged approximately 101% of local market average rents, down from 102% in fourth quarter 2011.

Aimco's target markets are primarily coastal markets, and also include several Sun Belt cities and Chicago, Illinois. In executing Aimco's portfolio strategy, the company expects to sell each year the lowest-rated 5% to 10% of its portfolio and to invest the proceeds from such sales in higher-quality properties in its target markets through redevelopment and acquisitions.

By selling each year the lowest-rated 5% to 10% of its portfolio, Aimco expects its year-end portfolio average revenue per unit to increase at a rate that is approximately 4% to 5% greater than annual market rent growth.

Conventional Property Revenue per Unit Up 8.1% to $1,290

Second quarter 2012 Conventional portfolio average revenue per unit was $1,290, an 8.1% increase compared to second quarter 2011, as a result of year-over-year revenue growth of 4.7% and the sale of Conventional Properties during 2011 and 2012 with average revenues per unit substantially lower than those of the retained portfolio.

Aimco expects fourth quarter 2012 Conventional portfolio revenue per unit to average approximately $1,370, an increase of 9% compared to fourth quarter 2011, with approximately half of the increase generated by market rent growth and half the result of sales of lower-rent properties.

Dispositions - In second quarter 2012, Aimco sold five Conventional Properties and 11 Affordable Properties with 1,151 and 1,082 units, respectively, for $122.4 million in gross proceeds. Average revenue per unit for the Conventional Properties sold during the quarter was $825, compared to the retained portfolio average of $1,290 per unit. Aimco's share of net sales proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $48.3 million.

During 2012, Aimco expects to continue to upgrade its portfolio by selling more than 25 Conventional Properties and more than 60 Affordable Properties. Aimco has discussed previously the potential acceleration of portfolio upgrades by selling in 2012 properties otherwise expected to be sold in 2013 and 2014. Aimco's portfolio strategy and targets remain unchanged and these properties continue to be listed for sale in portfolios and/or as individual asset sales. With the recent redemptions of its high-cost preferred stocks, an immediate use of proceeds from such an acceleration of future sales no longer exists; however, should an opportunity arise to put to use proceeds from sales of these assets on a value-accretive basis, Aimco will give further consideration to accelerating its disposition plans.

Acquisitions - During the second quarter, Aimco acquired for $38.9 million a 42-unit property located in the Chelsea neighborhood of Manhattan. The acquisition was funded in part using $20.0 million of newly placed non-recourse property debt with a 3.95% fixed interest rate, and in part by the tax-free exchange of proceeds from the sale of lower-rated properties. The property's average revenue per unit is approximately $4,000, and its average rents are approximately 38% greater than the local market average.

See Supplemental Schedules 7a and 7b for additional details regarding Aimco's Conventional portfolio quality and capital allocation, and Supplemental Schedule 8 for information related to disposition and acquisition activity.

Redevelopment

During the second quarter, Aimco began the construction of 28 new townhomes on a vacant land parcel at its Elm Creek property located in Chicago. Aimco expects to invest $9.9 million in the development and first occupancy is anticipated in the fourth quarter 2012. Current market rents for comparable product are estimated to average approximately $2,950 per unit.

During 2012, Aimco expects to invest $125 to $150 million in redevelopment projects at a total of ten properties. Construction is currently underway at five of these properties including: Elm Creek; Pacific Bay Vistas in San Bruno, California; The Palazzo in West Los Angeles; Flamingo South Beach in Miami; and Plantation Gardens in Plantation, Florida. Aimco completed Phase I of the redevelopment of Lincoln Place in Venice, California during the second quarter and expects to start Phases II and III during the second half of 2012. The projects at Flamingo South Beach and Plantation Gardens are expected to be completed by year-end.

During the balance of 2012, multi-year redevelopment projects are expected to begin at: 2900 on First in Seattle; Park Towne Place and The Sterling, both located in Center-City Philadelphia; and The Preserve at Marin in the San Francisco Bay Area. Over the next few years, Aimco expects to invest approximately $400 million in these ten projects and, based on current market rents, generate average initial cash returns greater than 7% and average Free Cash Flow Internal Rates of Return in excess of 10%.

See Supplemental Schedule 10 for additional details regarding Aimco's redevelopment activities.

Balance Sheet and Liquidity

Components of Aimco Leverage
    AS OF JUNE 30, 2012
$ in Millions   Amount   % of Total  

Weighted Avg Maturity (Yrs)
 

Weighted Avg Rate
Aimco's share of long-term, non-recourse property debt   $   4,765.1       91%   7.6   5.45%

Preferred securities (including $300 million called   for redemption)
  448.4       9%   Perpetual   7.26%
Total leverage   $   5,213.5       100%   n/a   5.60%
           

Debt Ratios

Aimco's leverage targets are: Debt and Preferred Equity to EBITDA of less than 7.0x; and EBITDA Coverage of Interest and Preferred Dividends of greater than 2.5x. In measuring leverage, Aimco also focuses on Debt to EBITDA and EBITDA Coverage of Interest ratios. See the Glossary for definitions of these metrics.
   

Trailing- Twelve- Month
   

Annualized 2nd Qtr
   

Expected Annualized 4th Qtr 2012
    2012     2011     2012     2011      
Debt to EBITDA   8.2x     8.4x     7.9x     8.3x     7.5x
Debt and Preferred Equity to EBITDA   8.5x     9.8x     8.2x     9.7x     7.7x
EBITDA Coverage of Interest   2.2x     2.1x     2.3x     2.2x     2.5x
EBITDA Coverage of Interest and Preferred Dividends   2.1x     1.7x     2.2x     1.8x     2.3x
                 

2012 ratios are provided on a pro forma basis, taking into account the impacts of Aimco's equity activities in the second quarter and July.

Aimco made significant progress toward its stated leverage targets with the redemption of $300.9 million of preferred stock during the second quarter 2012, and redemption of an additional $300.0 million of preferred stock in July. As a result of these redemptions, Aimco now expects to achieve its leverage targets by early 2014, two years earlier than anticipated at the beginning of 2012. Future leverage reduction is expected from earnings growth generated by the current portfolio and by regularly scheduled property debt amortization from retained earnings.

Liquidity

Aimco's recourse debt at June 30, 2012, was limited to its revolving credit facility, which Aimco uses for working capital purposes and to secure letters of credit. At the end of second quarter, Aimco had no outstanding borrowings on its revolving credit facility and available capacity was $473.0 million, net of $27.0 million of letters of credit backed by the facility. At the end of the quarter, Aimco had on hand $312.9 million of unrestricted cash, $300.0 million of which was used to redeem preferred stock in July, and $65.1 million in unfunded commitments to fund redevelopment investments.

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.

Equity Activity

Common Stock Offerings - During second quarter 2012, Aimco completed two public offerings resulting in the sale of 20,794,200 shares of its Common Stock generating net proceeds of $558.6 million, or $26.86 per share. Additionally, pursuant to an option granted to underwriters of the June equity offering, Aimco sold in July 1,350,000 shares of Common Stock for net proceeds of $36.1 million, or $26.74 per share. In connection with these Common Stock offerings, the holders of near-term expiring stock options exercised 2,041,934 stock options with a weighted average exercise price of $23.01 per option for proceeds to Aimco of $47.0 million. The shares received upon exercise were then sold by the stockholders as part of the public offerings described above. In total, Aimco issued 24.2 million shares of its Common Stock generating net proceeds of $641.7 million, or an average of $26.53 per share.

Preferred Stock Redemptions - Also during second quarter, using the proceeds from the May equity offering, Aimco redeemed for $300.9 million all of the outstanding shares of its Class T, Class V, and Class Y Cumulative Preferred Stock. In connection with these redemptions, Aimco wrote off previously deferred issuance costs totaling $10.5 million. In June, Aimco called for redemption its Class U Cumulative Preferred Stock and, in July, using the proceeds from the June equity offering, Aimco redeemed all of the outstanding shares and wrote off an additional $10.1 million of previously deferred issuance costs, which will be recognized in the third quarter.

Dividend - As announced on August 1, 2012, Aimco's Board of Directors declared a quarterly cash dividend of $0.20 per share of Class A Common Stock for the quarter ended June 30, 2012, which, on an annualized basis, is a 67% increase compared to the dividends paid during 2011. The second quarter 2012 dividend is payable on August 31, 2012, to stockholders of record on August 17, 2012.

2012 Outlook
$ in Millions (except per share amounts)     THIRD QUARTER     CURRENT

FULL YEAR
    PREVIOUS

FULL YEAR
                   
Net loss per share     -$0.18 to -$0.14     -$0.29 to -$0.22     -$0.64 to -$0.56
Pro forma FFO per share     $0.43 to $0.47     $1.78 to $1.86     $1.76 to $1.84
AFFO per share           $1.30 to $1.38     $1.24 to $1.34
                   
Conventional Same Store Operating Measures                  
NOI change compared to second quarter 2012     0.0% to 1.0%            
NOI change compared to same period 2011     6.5% to 7.5%     6.0% to 7.0%     5.5% to 7.5%
Revenue change compared to 2011           4.75% to 5.25%     4.5% to 5.5%
Expense change compared to 2011           2.0% to 2.5%     2.25% to 2.75%
Average daily occupancy           95.5% to 96.0%     95.5% to 96.0%
Affordable Same Store NOI change compared to 2011           2.5% to 3.5%     0.5% to 1.5%
Total Same Store NOI change compared to 2011           5.5% to 6.5%     5.00% to 6.75%
                   
                   
Asset Management and Tax Credit Activities                  
Recurring Revenues           $30         $30
Recurring Expenses           $5         $5
Non-Recurring Revenues           $6         $6
Non-Recurring Expenses, including pursuit costs of $1.5           $4         $3
                   
Offsite Costs                  
Property Management Expenses           $35         $35
General and Administrative Expenses           $47         $47
                   
Capital Expenditures                  
Conventional Redevelopment           $125 - $150     $125 - $150
Property Upgrades           $30 - $40     $30 - $40
                   
Transaction Activities (Aimco Share)                  
Acquisitions (100% Aimco Share)           $130         $130
Real Estate Value of Partnership Tenders and Mergers           $160         $160
Dispositions, before transaction expenses and repayment of property debt           $600 - $700     $550 - 650
           

As described elsewhere in this Earnings Release, Aimco adds back to FFO preferred stock redemption related amounts in its computation of Pro forma FFO as well as AFFO.

Earnings Conference Call
Friday, August 3, 2012 at 1:00 p.m. EDT       Replay available until 9:00 a.m. EDT on August 20, 2012
Domestic Dial-In Number: 1-866-843-0890 Domestic Dial-In Number: 1-877-344-7529
International Dial-In Number: 1-412-317-9250 International Dial-In Number: 1-412-317-0088
Passcode: 1368119 Passcode: 10016013

Live webcast and replay: http://www.aimco.com/investors/events-presentations/webcasts

Supplemental Information

The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco's website http://www.aimco.com/investors/financial-reports/quarterly-earning-reports.

Glossary & Reconciliations of Non-GAAP Financial and Operating Measures

Financial and operating measures found in this Earnings Release and the Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP. These measures are defined in the glossary in the Supplemental Information and, where appropriate, reconciled to the most comparable GAAP measures.

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 third quarter and full year 2012 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; the effect of acquisitions, dispositions and redevelopments; and our ability to comply with debt covenants, including financial coverage ratios. Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond the control of Aimco, including, without limitation: financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; 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, dispositions and redevelopments; 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, 2011, 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 largest markets in the United States. Aimco is one of the country's largest owners and operators of apartments, with 344 communities serving approximately 250,000 residents in 30 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.
                         
Consolidated Statements of Operations                                  
 
(in thousands, except per share data) (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2012 2011 2012 2011
REVENUES:
Rental and other property revenues $ 261,958 $ 251,715 $ 522,974 $ 501,933
Asset management and tax credit revenues   8,914     7,651     16,985     16,887  
Total revenues   270,872     259,366     539,959     518,820  
 
OPERATING EXPENSES:
Property operating expenses 105,875 106,409 212,118 219,289
Investment management expenses 3,240 2,111 6,628 5,087
Depreciation and amortization 93,052 86,964 185,380 178,881
Provision for real estate impairment losses 6,707 - 13,071 -
General and administrative expenses 13,556 12,448 25,181 23,629
Other expense, net   427     4,922     6,689     8,787  
Total operating expenses   222,857     212,854     449,067     435,673  
 
Operating income 48,015 46,512 90,892 83,147
 
Interest income 2,477 1,967 5,031 3,973
Interest expense (64,255 ) (92,911 ) (133,421 ) (164,495 )
Equity in losses of unconsolidated real estate partnerships (2,242 ) (1,798 ) (3,005 ) (3,446 )
Gain on dispositions of interests in unconsolidated real estate and other, net   4,314     808     4,602     2,020  
 
Loss before income taxes and discontinued operations (11,691 ) (45,422 ) (35,901 ) (78,801 )
 
Income tax benefit   230     1,859     468     4,020  
 
Loss from continuing operations (11,461 ) (43,563 ) (35,433 ) (74,781 )
 
Income from discontinued operations, net   45,592     16,592     80,211     20,533  
 
Net income (loss) 34,131 (26,971 ) 44,778 (54,248 )
Noncontrolling interests:
Net (income) loss attributable to noncontrolling interests in

consolidated real estate partnerships
(9,665 ) 2,771 (17,430 ) 10,076
Net income attributable to preferred noncontrolling interests

in Aimco Operating Partnership
(1,611 ) (1,671 ) (3,281 ) (3,342 )
Net (income) loss attributable to common noncontrolling interests in

Aimco Operating Partnership
  (55 )   2,420     682     4,803  
Total noncontrolling interests   (11,331 )   3,520     (20,029 )   11,537  
Net income (loss) attributable to Aimco 22,800 (23,451 ) 24,749 (42,711 )
Net income attributable to Aimco preferred stockholders (22,182 ) (9,672 ) (34,621 ) (22,128 )
Net income attributable to participating securities   (95 )   (54 )   (214 )   (111 )
Net income (loss) attributable to Aimco common stockholders $ 523   $ (33,177 ) $ (10,086 ) $ (64,950 )
 
Weighted average common shares outstanding - basic and diluted   127,395     119,156     123,960     118,238  
 
Earnings (loss) per common share - basic and diluted:
Loss from continuing operations attributable to Aimco

common stockholders
$ (0.30 ) $ (0.36 ) $ (0.60 ) $ (0.67 )
Income from discontinued operations attributable to Aimco

common stockholders
  0.30     0.08     0.52     0.12  
Net income (loss) attributable to Aimco common stockholders $ -   $ (0.28 ) $ (0.08 ) $ (0.55 )
 
 
Consolidated Statements of Operations (continued)                                  
 
Income from Discontinued Operations
Income from discontinued operations consists of the following (in thousands):
 
Three Months Ended Six Months Ended
June 30, June 30,
2012 2011 2012 2011
Rental and other property revenues $ 2,729 $ 25,687 $ 10,377 $ 54,768
Property operating expenses 1,598 (13,438 ) (2,479 ) (28,263 )
Depreciation and amortization (1,534 ) (8,767 ) (4,618 ) (18,300 )
Provision for real estate impairment losses   (1,341 )   (2,452 )   (1,662 )   (6,307 )
Operating (loss) income 1,452 1,030 1,618 1,898
Interest income 54 513 108 789
Interest expense   1,180       (4,814 )   (97 )     (9,912 )
Income (loss) before gain on dispositions of real estate and

income taxes
2,686 (3,271 ) 1,629 (7,225 )
Gain on dispositions of real estate 48,518 19,716 84,211 27,434
Income tax (expense) benefit   (5,612 )   147     (5,629 )   324  
Income from discontinued operations, net $ 45,592   $ 16,592   $ 80,211   $ 20,533  
Income from discontinued operations attributable to:
Noncontrolling interests in consolidated real estate partnerships $ (4,754 ) $ (6,755 ) $ (11,623 ) $ (5,370 )
Noncontrolling interests in Aimco Operating Partnership   (2,670 )   (655 )   (4,424 )   (1,013 )
Total noncontrolling interests   (7,424 )   (7,410 )   (16,047 )   (6,383 )
Income from discontinued operations attributable to Aimco $ 38,168   $ 9,182   $ 64,164   $ 14,150  
 
             
Consolidated Balance Sheets                  
 
(in thousands) (unaudited)
 
 
June 30, 2012 December 31, 2011
ASSETS
Buildings and improvements $ 6,773,507 $ 6,635,497
Land   2,060,115     2,028,468  
Total real estate 8,833,622 8,663,965
Accumulated depreciation   (2,888,828 )   (2,751,043 )
Net real estate 5,944,794 5,912,922
Cash and cash equivalents 312,964 91,066
Restricted cash 168,864 185,811
Accounts receivable, net 35,592 41,796
Notes receivable, net 102,798 111,205
Investment in unconsolidated real estate partnerships 34,400 47,790
Other assets 338,664 344,226
Assets held for sale   9,030     137,046  
Total assets $ 6,947,106   $ 6,871,862  
LIABILITIES AND EQUITY
Non-recourse property debt $ 5,090,443 $ 5,057,296
Accounts payable 27,054 32,607
Accrued liabilities and other 238,271 284,420
Deferred income 133,097 139,821
Liabilities related to assets held for sale   8,618     129,660  
Total liabilities   5,497,483     5,643,804  
Preferred noncontrolling interests in Aimco Operating Partnership 80,401 83,384
Equity:
Perpetual Preferred Stock 366,216 657,114
Class A Common Stock 1,442 1,209
Additional paid-in capital 3,683,764 3,098,333
Accumulated other comprehensive loss (6,292 ) (6,860 )
Distributions in excess of earnings   (2,897,490 )   (2,841,467 )
Total Aimco equity   1,147,640     908,329  
Noncontrolling interests in consolidated real estate partnerships 258,647 270,666
Common noncontrolling interests in Aimco Operating Partnership   (37,065 )   (34,321 )
Total equity   1,369,222     1,144,674  
Total liabilities and equity $ 6,947,106   $ 6,871,862  
 

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