AIMCO - Apartment Investment & Management Company

08/11/2025 | Press release | Distributed by Public on 08/11/2025 14:21

Business/Financial Results (Form 8-K)

Table of Contents

Page

3

Earnings Release

8

Outlook

11

Consolidated Statements of Operations

12

Consolidated Balance Sheets

13

Schedule 1 - EBITDAre and Adjusted EBITDAre

14

Schedule 2 - Aimco Leverage and Maturities

15

Schedule 3 - Aimco Portfolio

16

Schedule 4 - Aimco Capital Additions

17

Schedule 5 - Aimco Development and Redevelopment Project Summaries

19

Schedule 6 - Stabilized Operating Properties

20

Schedule 7 - Acquisitions, Dispositions, and Leased Communities

21

Schedule 8 - Net Asset Value Components

22

Schedule 9 - Asset List

23

Glossary and Reconciliations of Non-GAAP Financial and Operating Measures

2

Aimco Reports Second Quarter 2025 Results and Recent Highlights

Denver, Colorado, August 11, 2025 - Apartment Investment and Management Company ("Aimco") (NYSE: AIV) announced today second quarter results for 2025 and provided highlights on recent activities.

Financial Results

•
Aimco's net loss attributable to common stockholders per share, on a fully dilutive basis, was $(0.14) for the three months ended and $(0.24) for the six months ended June 30, 2025.
•
Property Net Operating Income ("NOI") from Aimco's Stabilized Operating Properties was $24.2 million in the second quarter 2025, up 1.1% year-over-year, and $49.3 million year-to-date, up 1.9% year-over-year.

CEO Commentary

Wes Powell, Aimco President and Chief Executive Officer, comments:

"During the first half of 2025, Aimco continued its focus on creating value through the effective management of our apartment portfolio and development projects, while actively exploring opportunities to unlock value for stockholders through strategic transactions and prudent capital allocation.

"As announced on August 6, 2025, Aimco has executed a contract to sell its five-property suburban Boston portfolio for $740 million. When combined with the pending sale of our Brickell Assemblage we now expect to close $1.26 billion of asset sales in 2025.

"These sales are expected to deliver net proceeds of approximately $785 million or $5.21 per share, and we plan to return between $4.00 and $4.20 to stockholders with the remainder allocated to debt reduction and general corporate purposes.

"Following the Boston and Brickell asset sales, Aimco's remaining portfolio will consist of:

1) 15 Stabilized Operating Properties containing 2,524 apartment homes, that produced $46 million of annualized Property NOI in the second quarter with rents 5.2% higher on leases transacted during the month of July;

2) three newly completed residential communities containing 933 homes and 114,000 square feet of retail space, that are projected to deliver approximately $40 million of Property NOI when fully stabilized in 2027;

3) one active development project under construction on Miami's waterfront that is scheduled for completion in 2027; and

4) an experienced development and investment management platform and pipeline with the potential to deliver more than 3,700 new apartment units and one million square feet of commercial space over the coming years.

"In addition, we remain committed to maintaining a strong and flexible balance sheet with plans to utilize a portion of the sales proceeds to repay the balance drawn on our revolving credit facility and reduce the balance of third-party preferred equity funding, reducing Aimco's cost of leverage by approximately $7 million annually. Aimco's remaining Stabilized Operating Properties are financed with assumable property-level mortgage debt, with a weighted average interest rate of 4.44% and a weighted average remaining term of 5.6 years.

Second Quarter 2025 Earnings Release and Supplemental Schedules | 3

"Finally, in collaboration with the Aimco Board and our advisory team, we continue to actively explore additional opportunities to further unlock and maximize stockholder value."

Highlights

•
In August, Aimco agreed to sell its suburban Boston portfolio of five properties located in Massachusetts, New Hampshire, and Rhode Island for $740 million. Four of the five asset sales are expected to close during the third quarter of this year, with closing of the final asset expected in the fourth quarter of 2025.
•
In July, the buyer with which Aimco is under agreement to sell the Brickell Assemblage for $520 million exercised the final contractual closing extension option that required its non-refundable deposit to be increased by $7 million, bringing the total non-refundable deposit to $50 million. Closing is now scheduled for the fourth quarter of 2025.
•
Aimco's Stabilized Operating revenue, expenses, and Property NOI increased 1.9%, 3.9%, and 1.1%, respectively, year-over-year in the second quarter, with average daily occupancy down 50 basis points at 95.8% and average monthly revenue per apartment home increasing by 2.5% to $2,349.
•
Aimco's three residential development projects currently in lease-up, containing a total of 933 units, remain on plan to reach stabilized occupancy in 2025.
•
In May, Aimco purchased its development partner's interests in the first phase of development at Strathmore Square. Aimco also borrowed on its revolving credit facility to pay off a higher interest rate mezzanine loan used to fund construction of Strathmore Square.

Operating Property Results

Aimco owns a diversified portfolio of operating apartment communities with average rents in line with local market averages.

Results at Aimco's Stabilized Operating Properties were as follows:

Second Quarter

Year-to-Date

Stabilized Operating Properties

Year-over-Year

Sequential

Year-over-Year

($ in millions)

2025

2024

Variance

1Q 2025

Variance

2025

2024

Variance

Average Daily Occupancy

95.8%

96.3%

(0.5)%

97.9%

(2.1)%

96.9%

97.1%

(0.2)%

Revenue, before utility reimbursements

$35.4

$34.7

1.9%

$35.6

(0.5)%

$71.0

$69.4

2.3%

Expenses, net of utility reimbursements

11.2

10.7

3.9%

10.5

6.2%

21.7

21.0

3.3%

Property NOI

24.2

24.0

1.1%

25.1

(3.3)%

49.3

48.4

1.9%

•
Revenue in the second quarter 2025 was $35.4 million, up 1.9% year-over-year, resulting from a 2.5% increase in average monthly revenue per apartment home to $2,349 and Average Daily Occupancy of 95.8%, down 50 basis points year-over-year. Revenue was negatively impacted by approximately 35 bps in the quarter due to a commercial tenant vacancy in New York City.
•
Effective rents during the second quarter 2025 were 6.2% higher, on average, than the previous lease, with new leases up 5.5% and renewals up 6.5%. For residents whose leases were expiring, 66.7% signed renewals. In July, effective rents for the 15 properties not included in the Boston portfolio sale were 5.2% higher, on average, than the previous lease.
•
The median annual household income of new residents was $124,000 in the second quarter 2025, representing a rent-to-income ratio of 20%.

Second Quarter 2025 Earnings Release and Supplemental Schedules | 4

•
Expenses in the second quarter 2025 were up 3.9% year-over-year and 6.2% compared to the first quarter 2025, primarily due to higher real estate taxes from a multi-year property assessment at our Nashville property, which assessment is being appealed.
•
Property NOI in the second quarter 2025 was $24.2 million, up 1.1% year-over-year.

Value Add and Opportunistic Investments

Development and Redevelopment

Aimco generally seeks development and redevelopment opportunities where barriers to entry are high, target customers can be clearly defined, and Aimco has a comparative advantage over others in the market. Aimco's value add and opportunistic investments may also target portfolio acquisitions, operational turnarounds, and re-entitlements.

As of June 30, 2025, Aimco had one multifamily development project under construction, two multifamily communities that have been substantially completed and are now in lease-up, and one that completed lease-up and is stabilizing operations. In addition to Aimco's core multifamily developments, The Benson Hotel and Faculty Club was completed in 2023 and remains in the stabilization process.

Aimco also has a pipeline of future value add opportunities in Southeast Florida, the Washington D.C. Metro Area, and Colorado's Front Range.

During the second quarter, $21.4 million of capital was invested in Aimco's development and redevelopment activities, primarily funded through construction loan and preferred equity draws. Updates on active development projects and Aimco's pipeline include:

•
In Upper Northwest Washington D.C., all 689 apartment homes at Upton Place were delivered in 2024 and construction is substantially complete. As of July 31, 2025, 504 units (73%) were leased or pre-leased and 418 (61%) were occupied. Additionally, as of July 31, 2025, approximately 92% of the project's 105K square feet of retail space had been leased.
•
In Bethesda, Maryland, all 220 of the highly tailored apartment homes at the first phase of Strathmore Square were delivered in 2024 and construction is substantially complete. As of July 31, 2025, 173 units (79%) had been leased or pre-leased and 151 (69%) were occupied.
•
In Corte Madera, California, construction is complete at Oak Shore. As of July 31, 2025, the ultra-luxury single-family rental community was 96% leased, with 23 (96%) of the 24 homes occupied.
•
In Miami's Edgewater neighborhood, construction remains on schedule and on budget at 34th Street, an ultra-luxury waterfront residential tower that will include rental homes averaging more than 2,500 square feet, with oversized private terraces, top-of-the-line finishes, and unobstructed views of Biscayne Bay. Aimco expects to welcome the first residents in 3Q 2027 and to stabilize occupancy in 4Q 2028.
•
In the second quarter 2025, Aimco invested $2.5 million into programming, design, documentation, and entitlement efforts primarily related to its 901 North development site, located in Fort Lauderdale, Florida.

Second Quarter 2025 Earnings Release and Supplemental Schedules | 5

Investment & Disposition Activity

Aimco is focused on prudently allocating capital and delivering strong investment returns. Consistent with Aimco's capital allocation philosophy, it aims to monetize the value within its assets when accretive uses of the proceeds are identified and invest when the risk-adjusted returns are superior to other uses of capital.

•
Subsequent to quarter end, in August 2025, Aimco entered into a definitive agreement to sell its portfolio of five apartment properties, including 2,719 units, located in suburban Boston for $740 million. The buyer has completed due diligence and made a $20 million non-refundable deposit. Four of the five asset sales are expected to close during the third quarter of this year, with closing of the final asset expected in the fourth quarter of 2025.[1]
•
In December 2024, Aimco entered into an agreement to sell its Brickell Assemblage for a gross price of $520 million. In July, the buyer exercised its final closing extension option and increased its non-refundable deposit by $7 million, bringing the total non-refundable deposit to $50 million. Closing is now scheduled for the fourth quarter of 2025.
•
Gross proceeds from the Boston and Brickell transactions are expected to equal $1.26 billion. Net proceeds, when accounting for associated property-level debt, the deferred tax liability related to the Brickell assets, and transaction costs, are expected to be approximately $785 million, or $5.21 per share.
•
Following the closing of the Brickell and Boston Portfolio transactions, Aimco plans to return between $4.00 and $4.20 per share to stockholders with the remainder allocated to debt reduction and general corporate purposes.[2]
•
In May, Aimco purchased, for $2.1 million, its development partner's 5% common equity interest in Strathmore Square. In addition, Aimco purchased the same development partner's subordinated interest for $2.9 million, a value representing approximately 60% of its expected future obligation.

[1] The closing expected in the fourth quarter 2025 is for a single property where the buyer is assuming Aimco's in-place debt.

[2] If the Brickell Assemblage buyer elects to utilize the seller financing option, the initial distribution would be reduced by approximately $0.64 per share pending the planned monetization of the seller financing note.

Balance Sheet and Financing Activity

Aimco is highly focused on maintaining a strong balance sheet, including ample liquidity. As of June 30, 2025, Aimco had access to $173.5 million, including $41.4 million of cash on hand, $26.4 million of restricted cash, and the capacity to borrow up to $105.7 million on its $150.0 million revolving credit facility.

Aimco's net leverage as of June 30, 2025, was as follows:

as of June 30, 2025

Aimco Share, $ in thousands

Amount

Weighted Avg.
Maturity (Yrs.) [1]

Total non-recourse fixed rate debt

$

693,017

6.3

Total non-recourse construction loan debt

376,918

2.4

Total property debt secured by assets held for sale

158,690

Revolving Credit Facility

42,800

Cash and restricted cash

(67,542

)

Net Leverage

$

1,203,883

[1] Weighted average maturities presented exclude contractual extension rights.

Second Quarter 2025 Earnings Release and Supplemental Schedules | 6

As of June 30, 2025, 100% of Aimco's total debt was either fixed rate or hedged with interest rate cap protection. Considering investments under contract to sell and including contractual extensions, Aimco has no debt maturing prior to June 2027.

•
In May, Aimco borrowed $42.8 million on its revolving credit facility to pay off the mezzanine loan used to fund the construction of the first phase of Strathmore Square. The mezzanine loan carried an interest rate of 13.0%, approximately 650 basis points higher than the average rate on the credit facility borrowings during the second quarter 2025.
•
Aimco's Boston portfolio, which is under contract to sell, serves as collateral for Aimco's revolving credit facility. As such, at the sale closing, the balance borrowed in May 2025 will be repaid and the facility will be retired. Aimco plans to maintain prudent liquidity following the facility's retirement.

Public Market Equity

Repurchases

•
Since Aimco's Board of Directors announced the expansion of its strategic review process on January 9, 2025, no shares of common stock have been repurchased by Aimco. In January, prior to that announcement and the $0.60 special dividend distribution, Aimco repurchased 29,498 shares of its common stock at a weighted average price of $8.66 per share. Since the start of 2022, Aimco has repurchased 14.5 million shares.
•
In the second quarter 2025, Aimco Operating Partnership redeemed 8,609 units of its equity securities for cash at a weighted average price of $8.10 per unit.

Commitment to Enhance Stockholder Value

On January 9, 2025, Aimco and its Board of Directors announced that, while pleased with the transformation and simplification of the Aimco portfolio and the objective results delivered over the past four years, shares of AIV continue to trade at a meaningful discount to Aimco's estimate of the private market value of Aimco's assets and investment platform. This disconnect has limited Aimco's ability to fund new investment opportunities and accelerate growth.

Therefore, Aimco's Board of Directors announced its decision to explore additional alternatives in an effort to further unlock and maximize stockholder value. The strategic process has expanded upon Aimco's ongoing efforts such as reducing exposure to development activity and monetizing certain assets, and includes, but is not limited to, the exploration of a sale or merger of Aimco as a whole, potential sales of the major components of the business (in one or a series of transactions), and an acceleration of individual asset sales. The recent announcement of the pending sale of the Boston portfolio is part of this ongoing process and will result in a substantial return of capital to stockholders. The strategic process continues and the Board of Directors' guiding principle is to produce an outcome that delivers maximum value to Aimco stockholders. The strategic process is being overseen by Aimco's Investment Committee, comprised of four independent Aimco Board Members. Morgan Stanley & Co. LLC is serving as financial advisor to Aimco.

There can be no assurance that this expanded strategic process will result in any transaction or transactions or other strategic changes or outcomes, and the timing or outcome of any such event is similarly uncertain. Aimco does not intend to disclose or comment on developments related to the foregoing unless or until it determines that further disclosure is appropriate or required.

Second Quarter 2025 Earnings Release and Supplemental Schedules | 7

2025 Outlook

The table below presents Aimco's current expectations for 2025 and assumes that the asset sales currently under contract close. Given the Boston transaction's substantial impact on the composition of the Stabilized Operating portfolio, Aimco withdraws prior guidance and will no longer provide revenue, expense and Property NOI guidance for its Stabilized Operating Properties.

2Q 2025

2025

$ in millions (except per share amounts)

Forecast is full year unless otherwise noted

YTD Results

Forecast

Prior Forecast

Net income (loss) per share - diluted [1]

$(0.24)

$5.20 - $5.40

$1.50 - $1.60

Developments and Redevelopments

Total Direct Costs of Projects in Occupancy Stabilization at Period End [2]

$585

$68

$68

Total Direct Costs of Projects Under Construction at Period End [2]

$240

$240

$240

Direct Project Costs on Active Developments [3]

$29

$50 - $60

$50 - $60

Direct Planning Costs [4]

$4

$7 - $10

$7 - $10

Real Estate Transactions

Acquisitions

None

None

None

Dispositions [5]

None

$1,260 - $1,280

$520 - $540

General and Administrative

$16

$32 - $33

$33 - $34

Leverage

Interest Expense, net of capitalization [6]

$33

$60 - $62

$63 - $65

[1] Net income (loss) per share - diluted includes estimated gains from the announced transactions which are under contract.

[2] Includes land or leasehold value.

[3] Aimco's planned costs on active developments is primarily related to its 34th Street development project and will be funded through committed construction loan and preferred equity draws. Aimco funded its equity commitment to the joint venture through the contribution of land plus an incremental $5 million in 3Q 2024.

[4] Includes direct costs related to advancing planning efforts for certain pipeline projects.

[5] Includes the Brickell Assemblage and Boston portfolio which are under contract to sell in 2025. Aimco does not provide specific guidance regarding future transactions prior to a contract being executed and the buyer's deposit becoming nonrefundable.

[6] Includes GAAP interest expense, exclusive of the amortization of deferred financing costs, and reduced by interest rate option payments which are included in the Realized and unrealized gains (losses) on interest rate options line on Aimco's income statement.

Second Quarter 2025 Earnings Release and Supplemental Schedules | 8

Supplemental Information

The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco's website at investors.aimco.com.

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 measures not defined under accounting principles generally accepted in the United States, or GAAP. Certain Aimco terms and Non-GAAP measures are defined in the Glossary in the Supplemental Information and Non-GAAP measures reconciled to the most comparable GAAP measures.

About Aimco

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco's mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV. For more information about Aimco, please visit our website www.aimco.com.

Team and Culture

Aimco has a national presence with corporate headquarters in Denver, Colorado and Washington, D.C. Our investment platform is managed by experienced regional professionals who leverage in-depth local market knowledge, creating a comparative advantage when sourcing, evaluating, and executing investment opportunities.

Above all else, Aimco is committed to a culture of integrity, respect, and collaboration.

Contact

Matt Foster, Vice President, Investor Relations and Capital Markets

Investor Relations 303-793-4661, [email protected]

Second Quarter 2025 Earnings Release and Supplemental Schedules | 9

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