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2014

Apartment Investment and Management Company Announces Second Quarter 2007 Results

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    DENVER, Aug. 2 /PRNewswire-FirstCall/ -- SUMMARY FINANCIAL RESULTS:
 Apartment Investment and Management Company (Aimco) (NYSE:   AIV) announced
 second quarter 2007 results including:
     -- Net income for the quarter of $19.3 million decreased $15.8
        million from $35.1 million in the second quarter 2006. Lower
        results in the second quarter 2007 are primarily due to lower
        gains on property sales of $19.3 million, offset by a $4.8 million
        increase in operating income.  Earnings per share (EPS) were $0.03
        on a diluted basis, compared with $0.17 in the second quarter
        2006.
     -- Funds from operations (diluted) (FFO) is a non-GAAP financial
        measure defined in the glossary in the Supplemental Information
        (the Glossary). FFO calculated in accordance with the definition
        prescribed by the National Association of Real Estate Investment
        Trusts (NAREIT) was $87.3 million, or $0.88 per share, up 22% when
        compared with $71.4 million, or $0.73 per share, in the second
        quarter 2006. FFO before impairment and preferred redemption
        charges was also $0.88 per share, which was $0.08 above the mid-
        point of guidance.  Better than expected results from lower than
        anticipated casualty losses and stronger Aimco Capital transaction
        activity contributed to the additional $0.08 per share of FFO
        outperformance.
     -- Adjusted funds from operations (diluted) (AFFO; a non-GAAP
        financial measure defined in the Glossary) was $63.6 million, or
        $0.64 per share, up 22% when compared with $52.0 million, or $0.53
        per share, in the second quarter 2006. AFFO includes deductions of
        $0.24 and $0.20 per share for capital replacement expenditures in
        the second quarter 2007 and the second quarter 2006, respectively.
 
 
     Diluted Per Share Results
 
                                     SECOND QUARTER            YEAR-TO-DATE
 
                                   2007         2006         2007         2006
 
     Earnings -- EPS              $ 0.03       $ 0.17       $ 0.12       $ 0.80
     Funds from operations -- FFO $ 0.88       $ 0.73       $ 1.62       $ 1.41
     FFO before impairment
      and preferred redemption
      charges                     $ 0.88       $ 0.73       $ 1.63       $ 1.43
     Adjusted funds from
      operations -- AFFO          $ 0.64       $ 0.53       $ 1.22       $ 1.08
     Management Comments
     Chairman and Chief Executive Officer Terry Considine comments:
 "Apartment fundamentals continued to be positive in the second quarter with
 conventional same-store revenue growth of 5.2%. We are on track to invest
 $300 million in conventional redevelopment projects with 48 communities
 under redevelopment at the end of the quarter. Our asset management and
 transaction businesses are growing with a year-over-year increase in net
 income of 59%. We are looking forward to continued positive momentum in the
 second half of 2007."
     Chief Financial Officer Tom Herzog adds: "Our second quarter FFO of
 $0.88 per share was $0.08 above the mid-point of guidance. Positive results
 for the quarter included lower casualty losses and higher Aimco Capital
 transaction income than was considered in guidance. We are establishing
 third quarter FFO guidance of $0.80 to $0.84 per share and increasing our
 full year FFO guidance to $3.33 to $3.43 per share."
     Property Operations
     Conventional Real Estate Operations
     Aimco is among the largest owners and operators of market rate
 properties in the United States. Conventional real estate operations
 consist of Aimco's diversified portfolio of market rate apartment
 communities. At the end of the second quarter 2007, this portfolio included
 454 properties with 131,242 units in which Aimco had a weighted average
 ownership of 86%. During the second quarter 2007, conventional real estate
 operations generated net operating income of $177.7 million.
     "Same Store" Results
     The Same Store portfolio is a sub-set of total conventional properties
 (see the Glossary). In the second quarter 2007, the Same Store portfolio
 included 376 communities with 95,924 Effective Units based on Aimco's
 weighted average ownership of 86% (See Supplemental Schedules 6a through
 7).
     Comparing Same Store results in the second quarter 2007 with the second
 quarter 2006, total revenue increased $12.9 million, or 5.2%. The increase
 in revenue was primarily generated by higher average rent, up $34 per unit,
 or 4.1%, from $830 per unit to $864 per unit, higher occupancy, which was
 up 0.3% from 94.4% to 94.7%, and increased utility reimbursements, up $2.1
 million. Same Store expenses of $109.2 million increased $6.8 million, or
 6.7%, compared with the prior year period as a result of higher taxes,
 insurance, utilities, marketing and payroll. Full year 2007 Same Store
 expenses are expected to be up 3.5% to 4.0% when compared to full year
 2006. Same Store portfolio net operating income was $154.3 million for the
 second quarter 2007, up 4.1% from the second quarter 2006.
     Same Store Operating Results
 
                                                        SECOND QUARTER
                                           Year-over-year         Sequential
                                       2007    2006  Variance  1st Qtr Variance
     Same Store Operating Measures
     Average Physical Occupancy         94.7%    94.4%    0.3%   94.4%    0.3%
     Average Rent Per Unit               $864     $830    4.1%    $858    0.7%
     Total Same Store ($mm)
     Revenue                            $ 263.5  $ 250.6  5.2%   $ 258.9  1.8%
     Expenses                            (109.2)  (102.4) 6.7%    (107.1) 2.0%
     NOI                                $ 154.3  $ 148.2  4.1%   $ 151.8  1.6%
     Comparing Same Store results on a sequential basis, total revenue
 increased $4.6 million in the second quarter 2007 compared with the first
 quarter of 2007, driven by a $6 per unit increase in average rental rates
 and an increase in occupancy of 0.3%. Expenses increased $2.1 million, or
 2.0%, primarily due to higher payroll, repairs and maintenance and training
 expenses, offset by lower utilities. Net operating income increased $2.5
 million, or 1.6%, on a sequential basis.
     Affordable Real Estate Operations
     Aimco is among the largest owners and operators of affordable
 properties in the United States. At the end of the second quarter 2007,
 Aimco's owned affordable portfolio included 323 properties with 37,457
 units in which Aimco had an average ownership of 51%. During the second
 quarter 2007, affordable property operations generated net operating income
 of $21.4 million. On a year-over-year basis, second quarter average
 month-end occupancy for the affordable portfolio decreased 20 basis points
 from 97.5% to 97.3%, and average rent per unit increased 3.6% from $696 to
 $721 per unit.
     Aimco Capital
     Aimco Capital oversees all of Aimco's asset management, transaction and
 portfolio management activities, and is led by a management team dedicated
 to this business.
     Asset Management and Transactions
     Asset management income is earned from the financial management of
 partnerships. Transaction income is earned from activities such as
 dispositions, refinancings, land sales and tax credit syndications.
 Proceeds received in exchange for the transfer of tax credits are
 recognized ratably as the tax benefits are delivered, and syndication fees
 are recognized upon completion of tax credit syndications. Consolidated
 asset management and transaction net operating income, net of tax, was $8.6
 million in the second quarter 2007 up 59% when compared to $5.4 million in
 the second quarter 2006. See Supplemental Schedule 11 for additional
 information on asset management and transaction income.
     Portfolio Management
     ACQUISITIONS - Aimco acquired nine properties in the second quarter
 2007 for $112.4 million. Acquisitions included: Leahy Square located in
 Redwood City, CA with 110 units that Aimco purchased for $23.0 million or
 $209,091 per unit; Hudson Harbour located in Poughkeepsie, NY with 352
 units that Aimco purchased for $37.0 million or $105,114 per unit; 204-206
 West 133rd Street located in New York City with 44 units that Aimco
 purchased for $4.6 million or $104,545 per unit; 656 St. Nicholas Avenue
 located in New York City with 30 units that Aimco purchased for $4.3
 million or $141,667 per unit; and 181 units located in the 2200-2400 blocks
 of Adam Clayton Powell Boulevard in New York City for a total of $43.5
 million or an average of $240,331 per unit.
     During the second quarter 2007, Aimco acquired seven properties owned
 by VMS National Properties Joint Venture, a consolidated real estate
 partnership in which Aimco held a 22% interest prior to the transaction.
 The portion of the Venture's real estate not owned by Aimco prior to the
 transaction was acquired in exchange for consideration totaling $179.4
 million. Aimco also purchased additional limited partnership interests in
 22 partnerships that own 59 properties for an aggregate of $8.9 million.
     DISPOSITIONS - Aimco regularly reviews its portfolio to identify
 properties that do not meet its long-term investment criteria. In the
 second quarter 2007, Aimco sold 22 conventional properties and six
 affordable properties with 3,993 and 629 units, respectively, for $201.1
 million in gross proceeds (Aimco share $122.4 million). Aimco's share of
 net proceeds after repayment of existing property debt and transaction
 costs was $71.7 million.
     Aimco's property dispositions resulted in gains on dispositions of real
 estate (including gains on dispositions of unconsolidated real estate and
 other and gains within discontinued operations), of $24.9 million for the
 second quarter 2007, compared with gains of $44.2 million for the second
 quarter 2006.
     See Supplemental Schedule 8 for additional information on acquisition
 and disposition activity.
     Redevelopment
     Aimco is actively reinvesting in and upgrading its portfolio through
 property redevelopments. At the end of the second quarter 2007, Aimco had
 48 active conventional redevelopment projects and 10 active tax credit
 redevelopment projects. Aimco's share of total redevelopment expenditures
 was $66.6 million during the second quarter 2007. Conventional
 redevelopment project expenditures totaled $56.8 million and tax credit
 redevelopment
     project expenditures totaled $9.8 million for the quarter. Further
 information on redevelopment projects is provided in Supplemental Schedule
 10.
     Additional Financial Information
     PROPERTY MANAGEMENT INCOME - Income from property management is
 generated when Aimco provides property management services to properties
 with unaffiliated partners. Income from consolidated properties is
 eliminated in Aimco's consolidated GAAP financial statements and the
 related economic benefit is reflected in minority interest.
     INTEREST INCOME - Consolidated interest income was $9.2 million for the
 second quarter 2007 compared with $5.4 million for the second quarter 2006.
 Interest income is earned in part from money market and interest bearing
 accounts as well as on notes receivable from unconsolidated partnerships
 and non-affiliates.
     DEBT ACTIVITY - During the second quarter 2007, Aimco closed 19
 property loans generating gross proceeds of $229.8 million at a weighted
 average interest rate of 5.53%. This included refinancing $60.8 million in
 existing mortgage loans, reducing the average interest rate from 5.93% to
 5.46%. After repayment of existing property debt, transaction costs and
 distributions to limited partners, Aimco's share of net proceeds was $140.3
 million.
     At quarter-end, Aimco's corporate debt balance was $554.0 million, up
 from $540.0 million at year-end 2006, and carried a weighted average
 interest rate of 6.82%. The balance on Aimco's revolving credit facility
 was $154.0 million, leaving $256.2 million (after $39.8 million in
 outstanding letters of credit) in available capacity.
     As of June 30, 2007, Aimco had $7.1 billion of consolidated debt
 outstanding (excluding other borrowings), of which $5.4 billion was fixed
 rate mortgage debt and $1.7 billion was floating rate debt. The floating
 rate debt included $554.0 million of corporate debt, $692.6 million of
 tax-exempt bonds, and $461.8 million of other property loans. In addition,
 Aimco had $100.0 million of floating rate preferred stock. Aimco's FFO
 exposure to changes in floating interest rates is mitigated by tax-exempt
 bonds with rates tied to the Bond Market Association Index which moves at
 approximately 0.68% for a 1.00% change in LIBOR. Exposure is further offset
 by floating rate assets, such as cash and notes receivable, and interest
 capitalized on entitlement and redevelopment properties. Based on Aimco's
 proportionate share of quarter-end balances (see Supplemental Schedule 3),
 Aimco estimates its sensitivity to a 100 basis point change in LIBOR to be
 approximately $0.02 per share per quarter. Other borrowings of $59.8
 million at quarter-end consisted primarily of unsecured notes payable and
 obligations under sale and leaseback arrangements accounted for as
 financings. As of June 30, 2007, other borrowings included $51.3 million of
 fixed rate obligations with interest rates ranging from zero to 10.00%, and
 $8.5 million of variable rate obligations bearing interest at the prime
 rate plus 1.75%.
     See Supplemental Schedule 5 for more detail on debt characteristics and
 activity.
     INTEREST EXPENSE -- Consolidated interest expense was $104.9 million
 for the second quarter 2007 compared with $98.2 million for the second
 quarter 2006. The $6.7 million increase in interest expense is related to
 increased rates and higher balances on property debt, net of higher
 capitalized interest.
     STOCKHOLDERS' EQUITY -- During the second quarter 2007, Aimco
 repurchased 477,300 shares of its Class A Common Stock at an average price
 of $52.36 per share for a total cost of $25.0 million. On July 31, 2007,
 our Board of Directors increased our existing share repurchase
 authorization. We are currently authorized to repurchase approximately 13.5
 million shares. These repurchases may be made from time to time in the open
 market or in privately negotiated transactions.
     G&A -- General and administrative expenses for the second quarter 2007
 of $24.6 million were up $1.4 million or 6.0% when compared with the second
 quarter 2006. The year-over-year increase in G&A was primarily due to
 increased compensation costs and related expenses, which were offset by a
 decrease in professional fees.
     Outlook
     For the third quarter 2007, FFO is expected to be in a range from $0.80
 to $0.84 per share, before impairment and preferred redemption charges, and
 we are increasing our full year FFO guidance to $3.33 to $3.43 per share.
 The full year 2007 AFFO outlook of greater than $2.40 per share is
 unchanged. Please refer to the Outlook Schedule, which follows the
 Consolidated Financial Statements in this release, for more detail on third
 quarter and full year 2007 guidance.
     Dividends on Common Stock
     As announced on August 1, 2007, the Aimco Board of Directors declared a
 quarterly cash dividend of $0.60 per share of Class A Common Stock for the
 quarter ended June 30, 2007, payable on August 31, 2007, to stockholders of
 record on August 17, 2007. The dividend represents 94% of AFFO (diluted)
 and 68% of FFO (diluted), on a per share basis, and a 4.8% annualized yield
 based on the $50.42 closing price of Aimco's Class A Common Stock on June
 29, 2007.
     Earnings Conference Call
     Please join Aimco management for the Second Quarter 2007 earnings
 conference call to be held Thursday, August 2, 2007, at 1:00 p.m. Eastern
 time. You may join the conference call through an Internet audiocast by
 clicking on the Webcast link on Aimco's Website at
 http://www.aimco.com/CorporateInformation/About/Financial/2Q2007.
 Alternatively, you may join the conference call via telephone by dialing
 800- 798-2801 with passcode 50113575, or dialing 617-614-6205 for
 international callers. Please call approximately five minutes before the
 conference call is scheduled to begin. If you are unable to join the live
 conference call, you may access the replay for 30 days on Aimco's Website
 or by dialing 888-286- 8010, 617-801-6888 for international callers, and
 using passcode 65361235.
     Supplemental Information
     The Supplemental Information referenced in this release is available on
 Aimco's Website at the link
 http://www.aimco.com/CorporateInformation/About/Financial/2Q2007 or by
 calling Investor Relations at 303-691-4350.
     Forward-looking Statements
     This earnings release and Supplemental Information contain
 forward-looking statements, including statements regarding projected
 results and specifically forecasts of third quarter and full year 2007
 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 levels, rent levels and Same
 Store results and Aimco's ability to close transactions necessary to
 generate fee income as anticipated. Actual results may differ materially
 from those described in these forward-looking statements and, in addition,
 will be affected by a variety of risks and factors that are beyond the
 control of Aimco including, without limitation: natural disasters such as
 hurricanes; national and local economic conditions; the general level of
 interest rates; energy costs; the terms of governmental regulations that
 affect Aimco and interpretations of those regulations; the competitive
 environment in which Aimco operates; financing risks, including the risk
 that our cash flows from operations may be insufficient to meet required
 payments of principal and interest; real estate risks, including
 fluctuations in real estate values and the general economic climate in the
 markets in which Aimco operates and competition for tenants in such
 markets; insurance risk; acquisition and development risks, including
 failure of such acquisitions to perform in accordance with projections; the
 timing of acquisitions and dispositions; litigation, including costs
 associated with prosecuting or defending claims and any adverse outcomes;
 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. Readers should
 carefully review Aimco's financial statements and notes thereto, as well as
 the risk factors described in Aimco's Annual Report on Form 10-K for the
 year ended December 31, 2006, 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.
     About Aimco
     Aimco is a real estate investment trust headquartered in Denver,
 Colorado that owns and operates a geographically diversified portfolio of
 apartment communities through 20 regional operating centers. Aimco, through
 its subsidiaries and affiliates, is one of the largest owners and operators
 of apartment communities in the United States with 1,216 properties,
 including 209,507 apartment units, and serves approximately 750,000
 residents each year. Aimco's properties are located in 47 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 web site at
 www.aimco.com.
     GAAP Income Statements
 
     Consolidated Statements of Income
     (in thousands, except per share
      data) (unaudited)
                                        Three Months Ended   Six Months Ended
                                             June 30,            June 30,
                                          2007      2006      2007      2006
     REVENUES:
        Rental and other property
         revenues                       $421,864  $392,499  $832,363  $776,894
        Property management revenues,
         primarily from affiliates         1,271     3,592     3,367     6,622
        Activity fees and asset
         management revenues              15,178    12,133    26,808    21,673
             Total revenues              438,313   408,224   862,538   805,189
 
     OPERATING EXPENSES:
        Property operating expenses      192,681   173,506   385,924   353,571
        Property management expenses       2,072     2,151     3,278     2,643
        Activity and asset management
         expenses                          6,076     4,946    11,351     9,134
        Depreciation and amortization    121,807   112,272   244,195   219,461
        General and administrative
         expenses                         24,606    23,207    46,683    44,236
        Other expenses (income), net      (4,272)    1,615    (2,266)    1,994
             Total operating expenses    342,970   317,697   689,165   631,039
 
     Operating income                     95,343    90,527   173,373   174,150
 
     Interest income                       9,242     5,437    18,810    12,368
     Provision for losses on notes
      receivable, net                       (735)     (502)   (2,278)     (764)
     Interest expense                   (104,875)  (98,157) (209,615) (193,971)
     Deficit distributions to minority
      partners                            (2,028)   (3,935)   (3,221)   (6,011)
     Equity in earnings (losses) of
      unconsolidated real estate
      partnerships                           930      (574)   (2,055)   (2,436)
     Real estate impairment recoveries
      (losses), net                           --       (15)       --       971
     Gain on dispositions of
      unconsolidated real estate and
      other                                  639     1,059     1,688    10,757
     Gain on extinguishment of debt           --        --    19,373        --
 
     Loss before minority interests and
      discontinued operations             (1,484)   (6,160)   (3,925)   (4,936)
     Minority interests:
        Minority interest in
         consolidated real estate
         partnerships                       (265)    1,522    (6,182)    6,636
        Minority interest in Aimco
         Operating Partnership,
         preferred [a]                    (1,782)   (1,785)   (3,564)   (3,583)
        Minority interest in Aimco
         Operating Partnership, common[a]  1,821     2,238     4,342     4,171
     Total minority interests               (226)    1,975    (5,404)    7,224
     Income (loss) from continuing
      operations                          (1,710)   (4,185)   (9,329)    2,288
        Income from discontinued
         operations, net [b]              21,039    39,277    53,866   116,874
     Net income                           19,329    35,092    44,537   119,162
     Net income attributable to
      preferred stockholders              16,346    19,034    32,694    43,088
     Net income attributable to common
      stockholders                        $2,983   $16,058   $11,843   $76,074
     Weighted average number of common
      shares outstanding                  95,973    96,071    95,972    95,627
     Weighted average number of common
      shares and common share
      equivalents outstanding             95,973    96,071    95,972    95,627
     Earnings (loss) per common share -
      basic:
       Loss from continuing operations
        (net of income
          attributable to preferred
           stockholders)                  $(0.19)   $(0.24)   $(0.44)   $(0.43)
       Income from discontinued
        operations                          0.22      0.41      0.56      1.23
       Net income attributable to
        common stockholders                $0.03     $0.17     $0.12     $0.80
     Earnings (loss) per common share -
      diluted:
       Loss from continuing operations
        (net of income attributable
        to preferred stockholders)        $(0.19)   $(0.24)   $(0.44)   $(0.43)
       Income from discontinued
        operations                          0.22      0.41      0.56      1.23
       Net income attributable to
        common stockholders                $0.03     $0.17     $0.12     $0.80
 
 
     GAAP Income Statements (continued)
 
     Notes to Consolidated Statements of Income
 
     [a] The Aimco Operating Partnership is AIMCO Properties, L.P., the
         operating partnership in Aimco's UPREIT structure.
     [b] Income from discontinued operations of consolidated properties
         consists of the following (in thousands):
 
                                           Three Months Ended Six Months Ended
                                               June 30,           June 30,
                                             2007     2006     2007      2006
     Rental and other property revenues     $6,413  $32,280  $18,499   $77,110
     Property operating expenses            (3,309) (16,459)  (9,775)  (40,132)
     Other (expenses) income, net             (269)  (2,115)  (1,089)   (3,154)
     Depreciation and amortization          (1,598)  (9,214)  (4,711)  (22,329)
     Interest expense                       (1,018)  (6,898)  (4,249)  (16,530)
     Interest income                            32      224      120       537
     Gain on extinguishment of debt             --       --   22,852        --
     Minority interest in consolidated
      real estate partnerships                 644    1,392      935     2,888
     Income (loss) from operations             895     (790)  22,582    (1,610)
     Gain on dispositions of real estate,
      net of  minority partners' interest   24,273   43,112   39,906   142,822
     Real estate impairment recoveries
      (losses), net                             60      195     (783)       (8)
     Recovery of deficit distributions to
      minority partners                        555    1,896      418    16,145
     Income tax arising from disposals      (2,597)  (1,044)  (2,761)  (27,986)
     Minority interest in Aimco Operating
      Partnership                           (2,147)  (4,092)  (5,496)  (12,489)
     Income from discontinued operations   $21,039  $39,277  $53,866  $116,874
 
 
     GAAP Balance Sheets
 
     Consolidated Balance Sheets
     (in thousands)
     (unaudited)
 
                                              June 30, 2007   December 31, 2006
      ASSETS
      Buildings and improvements                 $9,486,611        $9,301,769
      Land                                        2,608,316         2,384,926
      Accumulated depreciation                   (2,905,219)       (2,778,355)
         NET REAL ESTATE                          9,189,708         8,908,340
      Cash and cash equivalents                     258,027           229,824
      Restricted cash                               332,955           346,552
      Accounts receivable                            76,347            85,772
      Accounts receivable from affiliates            33,680            20,763
      Deferred financing costs                       73,136            72,214
      Notes receivable from unconsolidated
       real estate partnerships                      43,106            40,641
      Notes receivable from non-affiliates          138,678           139,352
      Investment in unconsolidated real
       estate partnerships                           37,124            39,000
      Other assets                                  199,321           202,760
      Deferred income tax asset, net                  5,139                --
      Assets held for sale                           12,420           204,557
         TOTAL ASSETS                           $10,399,641       $10,289,775
 
      LIABILITIES AND STOCKHOLDERS' EQUITY
      Property tax-exempt bond financing           $949,692          $926,952
      Property loans payable                      5,595,153         5,198,010
      Term loans                                    400,000           400,000
      Credit facility                               154,000           140,000
      Other borrowings                               59,786            67,660
         TOTAL INDEBTEDNESS                       7,158,631         6,732,622
      Accounts payable                               42,096            54,972
      Accrued liabilities and other                 300,373           409,991
      Deferred income                               150,326           142,442
      Security deposits                              48,038            43,325
      Deferred income tax liability, net                 --             4,379
      Liabilities related to assets held
       for sale                                       8,546           164,556
         TOTAL LIABILITIES                        7,708,010         7,552,287
      Minority interest in consolidated
       real estate partnerships                     262,608           212,149
      Minority interest in Aimco Operating
       Partnership                                  155,564           185,447
      STOCKHOLDERS' EQUITY
         Perpetual preferred stock                  723,500           723,500
         Convertible preferred stock                100,000           100,000
         Class A Common Stock                           967               968
         Additional paid-in capital               3,060,683         3,095,430
         Notes due on common stock
          purchases                                  (3,760)           (4,714)
         Distributions in excess of
          earnings                               (1,607,931)       (1,575,292)
         TOTAL STOCKHOLDERS' EQUITY               2,273,459         2,339,892
 
         TOTAL LIABILITIES AND
          STOCKHOLDERS' EQUITY                  $10,399,641       $10,289,775
 
 
     GAAP Statements of Cash Flows
 
     Consolidated Statements of Cash Flows
     (in thousands)
     (unaudited)
 
                                                     Six Months Ended June 30,
                                                     2007              2006
      CASH FLOWS FROM OPERATING ACTIVITIES:
      Net income                                    $44,537          $119,162
      Depreciation and amortization                 244,195           219,461
      Adjustments to income from
       discontinued operations                      (53,121)         (127,029)
      Other adjustments to reconcile net income      (9,103)           11,527
      Changes in operating assets and
       liabilities                                  (23,171)           41,819
          Net cash provided by operating
           activities                               203,337           264,940
      CASH FLOWS FROM INVESTING
       ACTIVITIES:
      Purchases of real estate                     (174,991)          (41,732)
      Capital expenditures                         (268,608)         (236,203)
      Proceeds from dispositions of real estate     259,631           544,815
      Change in funds held in escrow from
       tax-free exchanges                             9,975                --
      Cash from newly consolidated properties            --            22,432
      Purchases of partnership interests            (17,541)          (10,932)
      Originations of notes receivable               (8,640)           (7,820)
      Proceeds from repayment of notes
       receivable                                    14,152             5,318
      Distributions received from
       investments in unconsolidated real
       estate partnerships                            1,814            11,312
      Other investing activities                     (2,756)          (21,255)
          Net cash provided by (used in)
           investing activities                    (186,964)          265,935
      CASH FLOWS FROM FINANCING
       ACTIVITIES:
      Proceeds from property loans                  791,330           656,634
      Principal repayments on property loans       (528,459)         (599,870)
      Proceeds from tax-exempt bonds                 82,350                --
      Principal repayments on tax-exempt
       bond financing                               (58,659)          (31,690)
      Net borrowings (repayments) on
       revolving credit facility                     14,000          (217,000)
      Proceeds from issuance of preferred stock          --            97,537
      Redemption of preferred stock                      --          (113,250)
      Repurchase of Class A Common Stock           (136,603)               --
      Proceeds from Class A Common Stock
       option exercises                              53,232            39,459
      Principal payments on Class A stock notes       1,605            18,626
      Payment of Class A Common Stock
       dividends                                   (116,363)         (115,046)
      Payment of preferred stock dividends          (32,720)          (41,879)
      Payment of distributions to minority
       interest                                     (52,877)          (61,589)
      Other financing activities                     (5,006)           (1,074)
          Net cash provided by (used in)
           financing activities                      11,830          (369,142)
      NET INCREASE IN CASH AND CASH
       EQUIVALENTS                                   28,203           161,733
      CASH AND CASH EQUIVALENTS AT
       BEGINNING OF PERIOD                          229,824           161,730
      CASH AND CASH EQUIVALENTS AT END OF
       PERIOD                                      $258,027          $323,463
     This Earnings Release and Supplemental Information contain
 forward-looking statements, including statements regarding projected
 results and specifically forecasts of third quarter and full year 2007
 results. These forward-looking statements are based on management's
 judgment as of this date and include certain risks and uncertainties. Risks
 and uncertainties include, but are not limited to, Aimco's ability to
 maintain current or meet projected occupancy, rent levels and Same Store
 results and Aimco's ability to close transactions necessary to generate
 transactional income as anticipated.
     Actual results may differ materially from those described in these
 forward-looking statements and, in addition, will be affected by a variety
 of risks and factors that are beyond the control of Aimco including,
 without limitation: natural disasters such as hurricanes; national and
 local economic conditions; the general level of interest rates; energy
 costs; the terms of governmental regulations that affect Aimco and
 interpretations of those regulations; the competitive environment in which
 Aimco operates; financing risks, including the risk that our cash flows
 from operations may be insufficient to meet required payments of principal
 and interest; real estate risks, including fluctuations in real estate
 values and the general economic climate in local markets and competition
 for tenants in such markets; insurance risk; acquisition and development
 risks, including failure of such acquisitions to perform in accordance with
 projections; the timing of acquisitions and dispositions; litigation,
 including costs associated with prosecuting or defending claims and any
 adverse outcomes; 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.
     Readers should carefully review Aimco's financial statements and notes
 thereto, as well as the risk factors described in Aimco's Annual Report on
 Form 10-K for the year ended December 31, 2006, 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.
                          Third Quarter 2007       Full Year 2007
     GAAP earnings
      per share [1]      -$0.25  to  -$0.21      -$0.26  to  -$0.16
     Add: Depreciation
      and other                $1.05                   $3.59
     FFO per share [2]    $0.80  to  $0.84        $3.33  to  $3.43
     AFFO per share [3]                          greater than $2.40
     2007 Same Store
      operating assumptions:
       Weighted average
        daily occupancy     94%  to  95%            94%  to  95%
       NOI change -
        sequential         0.8%  to  1.8%
       NOI change - 2007
        vs. 2006           6.0%  to  7.0%          5.5%  to  6.5%
     Gross dispositions[4]                        $400M  to  $600M (Aimco share
                                                                   $300M-$450M)
 
     Gross acquisitions[5]                        $400M  to  $500M (100% Aimco
                                                                    share)
 
 
     [1]  Aimco's earnings per share guidance does not include estimates for
          (i) unrecognized gains on dispositions or impairment losses due to
          the unpredictable timing of transactions, (ii) unrecognized gains or
          losses on early repayment of debt or (iii) redemption related
          preferred stock issuance costs.
 
     [2]  FFO per share represents FFO before impairments.
 
     [3]  Outlook for AFFO is provided on an annual basis.
 
     [4]  Aimco anticipates gross sales proceeds of $400 to $600 million for
          2007 ($340 to $510 million related to conventional properties and $60
          to $90 million related to affordable properties).  Aimco share of
          proceeds is expected to be $300 to $450 million ($270 to $405 million
          related to conventional properties and $30 to $45 million related to
          affordable properties).  Aimco estimates that its share of cash from
          these dispositions, net of mortgage debt and third-party equity
          interests, will be $150 to $200 million ($135 to $175 million related
          to conventional properties and $15 to $25 million related to
          affordable properties).  The potential sale of the Flamingo South
          Beach property North and Central towers is not included in the
          dispositions total.
 
     [5]  Gross acquisitions include property acquisitions, limited partnership
          acquisitions and repurchase of Aimco stock.
 
 

SOURCE Aimco

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