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  -$0.25 to -$0.21 -$0.26 to -$0.16 Add: Depreciation and other $1.05 $3.59 FFO per share  $0.80 to $0.84 $3.33 to $3.43 AFFO per share  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 $400M to $600M (Aimco share $300M-$450M) Gross acquisitions $400M to $500M (100% Aimco share)  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.  FFO per share represents FFO before impairments.  Outlook for AFFO is provided on an annual basis.  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.  Gross acquisitions include property acquisitions, limited partnership acquisitions and repurchase of Aimco stock.