Press release dated August 13, 2021 (Form 8-K)

Page

3

Earnings Release

7

Strategic Overview

12

Consolidated Statements of Operations

13

Consolidated Balance Sheets

14

Schedule 1 - EBITDAre and Adjusted EBITDAre

15

Schedule 2 - Aimco Leverage and Maturities

16

Schedule 3 - Aimco Portfolio

17

Schedule 4 - Aimco Capital Additions

18

Schedule 5 - Aimco Development and Redevelopment Project Summaries

19

Schedule 6 - Stabilized Operating Properties

20

Schedule 7 - Acquisitions, Dispositions, and Leased Communities

21

Glossary and Reconciliations of Non-GAAP Financial and Operating Measures

•

Net loss attributable to common stockholders per share, on a dilutive basis, was $0.13 for the quarter ended June 30, 2021, compared to net income per share of $0.02 for the same period in 2020, due primarily to unrealized losses on interest rate options which provide a hedge against the re-pricing of future debt maturities.

•

Aimco Total Shareholder Return was 32%, year-to-date through July 2021.

•

Aimco invested $49 million in development and redevelopment activities during the second quarter and leased more than 200 homes at properties currently in lease-up.

•

Aimco closed $251 million of construction financing and ended the second quarter with $445 million of liquidity, including cash and capacity on its revolving credit facility.

•

Aimco entered into agreements totaling $53 million to acquire property for development in Colorado Springs, Colorado, and Fort Lauderdale, Florida.

•

Aimco acquired, for $19 million, property adjacent to its Hamilton on the Bay asset located in Miami, Florida, providing additional development opportunity.

•

Revenue from Aimco's Operating Properties was up 2.3% year-over-year, with occupancy up 140 basis points and average revenue per apartment home up 0.8%.

•

Net Operating Income from Aimco's Operating Properties was up 4.0% from the first quarter of 2021 and up 0.7% year-over-year.

•

At the North Tower of Flamingo Point in Miami Beach, Florida, the major redevelopment continues on plan with approximately $27 million remaining to invest. Apartment homes are planned for initial delivery in the third quarter with construction completion scheduled for 2022 and stabilization targeted for 2024. Pre-leasing has been strong, as of July 31, 2021, approximately one-third of the units have been leased prior to delivery at rates ahead of initial targets.

•

Upton Place in Upper-Northwest Washington, D.C., is progressing on schedule and on-budget, with approximately $213 million remaining to complete construction. The project is scheduled for completion in 2024 and stabilization is targeted for 2026.

•

The Benson Hotel and Faculty Club on the Anschutz Medical and Life Sciences Campus in Aurora, Colorado, is on budget and on schedule with a remaining investment of approximately $53 million. The project is scheduled for completion in early 2023 and stabilization in late 2026.

•

In Corte Madera, California, Aimco began development activity on 16 luxury single family rental homes, each averaging approximately 3,200 sf, plus eight accessory dwelling units. The land for this development is being leased from AIR Communities and is located adjacent to AIR Communities' Preserve at Marin apartment community. Aimco expects the total development cost to be $47 million with deliveries beginning in 2023 and stabilization occurring in 2025.

•

In the Edgewater neighborhood of Miami, Florida, Aimco began the major redevelopment of the existing apartment building at Hamilton on the Bay. The scope of Aimco's investment will completely renew the waterfront high-rise which benefits from spacious apartment homes (averaging 1,411 sf) and an abundance of outdoor and amenity space that was previously underutilized. Aimco expects the redevelopment investment at Hamilton on the Bay will be $92 million with apartment homes coming back online in 2022 and stabilization targeted for 2024.

•

At 707 Leahy in Redwood City, California, all apartment homes had been delivered and construction was complete as of 4Q 2020. As of July 31, 2021, the 110-unit property was 98% leased.

•

At The Fremont on the Anschutz Medical Campus in Aurora, Colorado, all apartment homes had been delivered and construction was complete as of 4Q 2020. As of July 31, 2021, the 253-unit property was 74% leased.

•

At Prism, located in Cambridge, Massachusetts, all apartment homes had been delivered and construction was complete as of 1Q 2021. As of July 31, 2021, the 136-unit property was 82% leased.

Second Quarter

Year-to-Date

Year-over-Year

Sequential

Year-over-Year

($ in millions)

2021

2020

Variance

1Q 2021

Variance

2021

2020

Variance

Average Daily Occupancy [1]

97.3%

95.9%

1.4

%

97.6%

(0.3

%)

97.4%

96.7%

0.9

%

Revenue, before utility reimbursements

$33.3

$32.6

2.3

%

$32.7

2.0

%

$66.0

$65.9

0.1

%

Expenses, net of utility reimbursements [2]

11.0

10.4

5.5

%

11.2

(1.9

%)

22.1

20.9

5.9

%

Net operating income (NOI)

22.4

22.2

0.7

%

21.5

4.0

%

43.9

45.1

(2.6

%)

•

During the second quarter Aimco acquired six properties adjacent to its Hamilton on the Bay apartment community in Miami's Edgewater neighborhood, for $12 million. Subsequent to quarter end Aimco

acquired an additional two properties for $7million. In total this land assemblage allows for, as-of-right, the construction of more than 700K square feet. As part of its initial acquisition of Hamilton on the Bay, Aimco acquired waterfront land that allows for the future development of more than 400K square feet. Combined, Aimco can now construct more than 1.1M square feet of new development in this rapidly growing submarket.

•

Subsequent to quarter end, Aimco entered into a joint venture with Kushner Companies to purchase three undeveloped land parcels located in downtown Fort Lauderdale, Florida. The total contract price for the land is $49 million ($25 million at Aimco's 51% share) and entitlements are in place for the development of approximately three million square feet of multifamily homes and commercial space. The land purchase is expected to close in January 2022.

•

Subsequent to quarter end Aimco's investment committee approved a seven-acre land purchase in Colorado Springs, Colorado with a contract price of $4 million that allows for the development of 119 apartment and townhomes that is targeted to close during the third quarter.

as of June 30, 2021

Proportionate, $ in thousands

Amount

Weighted Avg.

Maturity (Yrs.)

Total non-recourse property debt

$

436,436

5.3

Total non-recourse construction loan debt

119,747

2.9

Notes payable to AIR

534,127

2.6

Cash and restricted cash

(295,233

)

Net Leverage

$

795,077

•

As previously announced, a $150 million loan secured by our leasehold interest in the North Tower at Flamingo Point. The initial term of the loan is three years with two one-year extension options at an interest rate floating at One Month LIBOR plus 360 basis points. The floating interest rate has a 3.85% floor. Loan proceeds will be used to fund the completion of construction of the North Tower at Flamingo Point and other investment activity.

•

A $101 million construction loan for the redevelopment of Hamilton on the Bay. The initial term of the loan is three years with two one-year extension options at an interest rate floating at One Month LIBOR plus 320 basis points. The floating interest rate has a 3.45% floor.

✓

Platform: Aimco has successfully developed or redeveloped multifamily assets worth in excess of $4.5 billion and overseen real estate transactions totaling more than $7 billion over the past decade.

✓

Growth: Aimco offers investors a high performing, high return, vehicle with expected annualized returns on equity between 12-16% once target capital allocation is achieved.

✓

Pipeline: Aimco benefits from a deep and growing investment pipeline with $1.0 billion of development and redevelopment projects currently underway, over nine million square feet of future opportunities under Aimco-control and more being actively explored.

Approximate

Current

Allocation

Target

Allocation

Target

Leverage

Avg. Annualized

Project-Level

Return on

Equity*

Value Add & Opportunistic Real Estate

10

%

40% - 60%---

65

%

~18%

Core & Core Plus Real Estate

55

%

30% - 35%---

50

%

~ 9%

Alternative Investments

20

%

5% - 15%---

0

%

~15%

Cash, Hedges, & Other Net Assets

15

%

5% - 10%---

0

%

0%

Total Expected Annualized Returns on Equity

12% - 16%

*Individual project-level return on equity is subject to specific investment risk profiles and market dynamics, a range of outcomes is likely.

Three Months Ended

June 30,

Six Months Ended

June 30,

2021

2020

2021

2020

REVENUES:

Rental and other property revenues

$

40,418

$

37,165

$

80,222

$

75,474

OPERATING EXPENSES:

Property operating expenses

16,403

15,322

33,345

30,671

Depreciation and amortization

20,639

19,030

41,356

38,377

General and administrative expenses [1]

7,383

1,625

13,694

3,387

Total operating expenses

44,425

35,977

88,395

72,435

Interest expense

(12,638

)

(5,809

)

(25,315

)

(11,460

)

Mezzanine investment income, net

7,551

6,936

15,018

13,683

Unrealized gains (losses) on interest rate options [2]

(16,970

)

(1,080

)

8,377

(1,080

)

Other expenses, net

2,918

(154

)

3,281

(569

)

(Loss) income before income taxes

(23,146

)

1,081

(6,812

)

3,613

Income tax benefit (expense)

2,760

2,032

7,860

4,055

Net (loss) income

(20,386

)

3,113

1,048

7,668

Net income attributable to redeemable noncontrolling

interests in consolidated real estate partnership

(66

)

125

86

228

Net loss (income) attributable to noncontrolling interests

in consolidated real estate partnership

(275

)

(10

)

(566

)

(5

)

Net loss (income) attributable to common noncontrolling

interests in Aimco Operating Partnership

1,037

(165

)

(44

)

(400

)

Net (loss) income attributable to Aimco common

stockholders

$

(19,690

)

$

3,063

$

524

$

7,491

Net (loss) income attributable to common stockholders per

share - basic

$

(0.13

)

$

0.02

$

-

$

0.05

Net (loss) income attributable to common stockholders per

share - diluted

$

(0.13

)

$

0.02

$

-

$

0.05

Weighted-average common shares outstanding -

basic

149,166

148,549

149,082

148,549

Weighted-average common shares outstanding -

diluted

149,166

148,569

149,442

148,569

June 30,

December 31,

2021

2020

Assets

Buildings and improvements

$

1,107,929

$

995,116

Land

518,954

505,153

Total real estate

1,626,883

1,500,269

Accumulated depreciation

(527,976

)

(495,010

)

Net real estate

1,098,907

1,005,259

Cash and cash equivalents

286,066

289,582

Restricted cash

9,167

9,153

Mezzanine investments

322,380

307,362

Right-of-use lease assets

443,460

98,280

Other assets, net

152,159

130,856

Total assets

$

2,312,139

$

1,840,492

Liabilities and Equity

Non-recourse property debt, net

$

427,881

$

447,967

Construction loans, net

114,309

-

Notes payable to AIR

534,127

534,127

Total indebtedness

1,076,317

982,094

Deferred tax liabilities

128,279

131,560

Lease liabilities

450,648

100,496

Accrued liabilities and other

91,496

62,988

Total liabilities

1,746,740

1,277,138

Redeemable noncontrolling interests in consolidated real estate partnership

4,177

4,263

Equity:

Common Stock

1,496

1,490

Additional paid-in capital

517,540

515,127

Retained earnings (accumulated deficit)

(16,315

)

(16,839

)

Total Aimco equity

502,721

499,778

Noncontrolling interests in consolidated real estate partnerships

31,847

31,877

Common noncontrolling interests in Aimco Operating Partnership

26,654

27,436

Total equity

561,222

559,091

Total liabilities and equity

$

2,312,139

$

1,840,492

Three Months Ended

June 30, 2021

Net Income

$

(20,386

)

Adjustments:

Interest expense

12,638

Income tax benefit

(2,760

)

Depreciation and amortization

20,639

Adjustment related to EBITDAre of unconsolidated partnerships

215

EBITDAre

$

10,346

Net Income attributable to redeemable noncontrolling Interests consolidated real estate partnership

(66

)

Net Income attributable to noncontrolling Interests consolidated real estate partnership

(275

)

EBITDAre adjustments attributable to noncontrolling interests

38

Interest income received on Mezzanine Investment

(7,551

)

Unrealized losses on interest rate options

16,970

Adjusted EBITDAre

$

19,462

Annualized Adjusted EBITDAre

$

77,848

Aimco Share

Debt

Consolidated

Aimco Share of Unconsolidated

Partnerships

Noncontrolling

Interests

Total

Weighted

Average

Maturity

(Years)

Weighted

Average

Stated

Interest Rate

Fixed rate loans payable

$

375,951

$

5,660

$

(175

)

$

381,436

5.7

3.36

%

Floating rate loans payable

55,000

-

-

55,000

2.5

1.28

%

Total non-recourse property debt

$

430,951

$

5,660

$

(175

)

$

436,436

5.3

3.09

%

Construction loan debt

120,123

-

(376

)

119,747

2.9

3.81

%

Notes Payable to AIR

534,127

-

-

534,127

2.6

5.20

%

Cash and restricted cash

(295,233

)

-

-

(295,233

)

Net Leverage

$

789,968

$

5,660

$

(551

)

$

795,077

Amortization

Maturities

Total

Maturities as a

Percent of Total

Average Rate on

Maturing Debt

2021 Q3

$

2,236

$

-

$

2,236

-

%

-

%

2021 Q4

2,262

-

2,262

-

-

Total 2021

4,498

-

4,498

-

-

2022 Q1

2,288

-

2,288

-

-

2022 Q2

2,296

-

2,296

-

-

2022 Q3

2,316

-

2,316

-

-

2022 Q4

2,343

-

2,343

-

-

Total 2022

9,243

-

9,243

-

-

2023

9,576

55,000

64,576

9.89

%

1.28

%

2024

7,552

201,686

[1]

209,238

36.26

%

3.50

%

2025

7,837

-

7,837

-

-

2026

6,653

75,519

82,172

13.58

%

3.10

%

2027

4,482

89,518

94,000

16.10

%

3.57

%

2028

3,160

-

3,160

-

-

2029

2,366

30,158

32,524

5.42

%

4.08

%

2030

2,370

-

2,370

-

-

Thereafter

1,812

44,753

46,565

8.05

%

3.34

%

Total

$

59,549

$

496,634

$

556,183

Number of Properties

Number of Apartment Homes

Aimco Share of Apartment Homes

Consolidated

Stabilized Operating Properties

24

6,067

6,038

Other Real Estate [1]

1

-

-

Development and Redevelopment - Owned [2]

3

275

266

Development and Redevelopment - Leased [3]

5

865

865

Total Consolidated

33

7,207

7,169

Unconsolidated

4

142

72

Total Portfolio

37

7,349

7,242

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2021

Direct Capital Spend:

Capital Replacements

$

2,742

$

5,566

Property Upgrades

361

589

Development and Redevelopment - Owned Assets

28,561

50,235

Development and Redevelopment - Leased Assets

20,108

44,209

Casualty

(45

)

(147

)

Total Direct Capital Spend

51,727

100,452

Total Indirect Capital Spend [1]

6,869

13,763

Total Capital Additions

$

58,596

$

114,215

Direct Investment

Location

Number of units approved for development or redevelopment

Leased or Pre-Leased

Leasehold Value

Planned

To-Date

Remaining

Expected

Initial

Occupancy

[2]

Expected

Stabilized

Occupancy

[2]

Expected

NOI

Stabilization

[2][3]

Aimco Owned

The Benson Hotel and Faculty Club

Aurora, CO

106

-

-

$

70.0

$

16.9

$

53.1

1Q 2023

2Q 2025

4Q 2026

Upton Place [1]

Washington, D.C.

689

-

-

260.0

46.9

213.1

4Q 2023

4Q 2025

4Q 2026

Hamilton on the Bay

Miami, FL

276

-

-

92.4

18.6

73.8

2Q 2022

1Q 2023

3Q 2024

Subtotal

1,071

$

-

$

422.4

$

82.4

$

340.0

Leased Properties

Flamingo Point North Tower

Miami Beach, FL

366

25

%

$

240.0

$

63.5

$

36.8

$

26.7

3Q 2021

1Q 2023

1Q 2024

707 Leahy

Redwood City, CA

110

91

%

79.1

-

-

-

1Q 2020

4Q 2021

1Q 2023

The Fremont

Aurora, CO

253

69

%

89.0

0.2

0.2

-

2Q 2020

1Q 2023

1Q 2024

Prism

Cambridge, MA

136

73

%

60.9

7.1

4.5

2.6

1Q 2021

1Q 2022

1Q 2023

Robin Drive Land

Corte Madera, CA

24

-

6.1

47.1

0.6

46.5

3Q 2023

2Q 2024

2Q 2025

Subtotal

889

$

475.1

$

117.9

$

42.1

$

75.8

Total

1,960

$

475.1

$

540.3

$

124.5

$

415.8

Estimated Size of Portfolio in Active Development and Redevelopment [4]

$

1,015.4

[1] Planned direct investment for Upton Place at Aimco's 90% share is $234 million.

[2] Delivery timing and stabilization is subject to change and is based on the best estimate at this time.

[3] The weighted average expected stabilized NOI yield on valuation and planned direct investment for the developments and redevelopments presented is 6.3%.

[4] Estimated size of portfolio in active development and redevelopment represents the property valuation for leasehold and the planned direct investment.

2Q 2021 v. 2Q 2020

Revenues, Before Utility

Reimbursements

Expenses, Net of Utility

Reimbursements

Net Operating Income

Net Operating

Income

Margin

Average Daily

Occupancy

During Period

Average

Revenue per

Aimco Apartment

Home

Apartment

Communities

Apartment

Homes

2Q 2021

2Q 2020

Growth

2Q 2021

2Q 2020

Growth

2Q 2021

2Q 2020

Growth

2Q 2021

2Q 2021

2Q 2020

2Q 2021

2Q 2020

Central Region

7

1,562

$

8,394

$

8,126

3.3

%

$

2,913

$

2,780

4.8

%

$

5,481

$

5,346

2.5

%

65.3%

97.2%

94.6%

$

1,843

$

1,834

Northeast

8

2,869

14,797

14,469

2.3

%

4,835

4,647

4.0

%

9,962

9,822

1.4

%

67.3%

97.6%

96.6%

1,762

1,741

Southeast

4

1,047

6,014

5,851

2.8

%

2,086

1,927

8.3

%

3,928

3,924

0.1

%

65.3%

97.8%

95.5%

1,958

1,951

West Coast

4

549

4,108

4,131

(0.6

%)

1,116

1,023

9.1

%

2,992

3,108

(3.7

%)

72.8%

95.0%

96.7%

2,624

2,595

Total

23

6,027

$

33,313

$

32,577

2.3

%

$

10,950

$

10,377

5.5

%

$

22,363

$

22,200

0.7

%

67.1%

97.3%

95.9%

$

1,894

$

1,879

2Q 2021 v. 1Q 2021

Revenues, Before Utility

Reimbursements

Expenses, Net of Utility

Reimbursements

Net Operating Income

Net Operating

Income

Margin

Average Daily

Occupancy

During Period

Average

Revenue per

Aimco Apartment

Home

Apartment

Communities

Apartment

Homes

2Q 2021

1Q 2021

Growth

2Q 2021

1Q 2021

Growth

2Q 2021

1Q 2021

Growth

2Q 2021

2Q 2021

1Q 2021

2Q 2021

1Q 2021

Central Region

7

1,562

$

8,394

$

8,248

1.8

%

$

2,913

$

2,978

(2.2

%)

$

5,481

$

5,270

4.0

%

65.3%

97.2%

97.5%

$

1,843

$

1,805

Northeast

8

2,869

14,797

14,537

1.8

%

4,835

5,123

(5.6

%)

9,962

9,414

5.8

%

67.3%

97.6%

97.9%

1,762

1,726

Southeast

4

1,047

6,014

5,881

2.3

%

2,086

1,980

5.4

%

3,928

3,901

0.7

%

65.3%

97.8%

97.8%

1,958

1,915

West Coast

4

549

4,108

4,008

2.5

%

1,116

1,080

3.3

%

2,992

2,928

2.2

%

72.8%

95.0%

96.2%

2,624

2,531

Total

23

6,027

$

33,313

$

32,674

2.0

%

$

10,950

$

11,161

(1.9

%)

$

22,363

$

21,513

4.0

%

67.1%

97.3%

97.6%

$

1,894

$

1,852

2Q 2021 YTD v. 2Q 2020 YTD

Revenues, Before Utility

Reimbursements

Expenses, Net of Utility

Reimbursements

Net Operating Income

Net Operating

Income

Margin

Average Daily

Occupancy

During Period

Average

Revenue per

Aimco Apartment

Home

Apartment

Communities

Apartment

Homes

2Q 2021 YTD

2Q 2020 YTD

Growth

2Q 2021 YTD

2Q 2020 YTD

Growth

2Q 2021 YTD

2Q 2020 YTD

Growth

2Q 2021 YTD

2Q 2021 YTD

2Q 2020 YTD

2Q 2021 YTD

2Q 2020 YTD

Central Region

7

1,562

$

16,642

16,482

1.0

%

$

5,891

$

5,488

7.3

%

$

10,751

$

10,994

(2.2

%)

64.6%

97.3%

95.8%

$

1,824

$

1,835

Northeast

8

2,869

29,334

29,287

0.2

%

9,958

9,547

4.3

%

19,376

19,740

(1.8

%)

66.1%

97.7%

97.5%

1,744

1,746

Southeast

4

1,047

11,895

11,873

0.2

%

4,066

3,744

8.6

%

7,829

8,129

(3.7

%)

65.8%

97.8%

96.3%

1,937

1,963

West Coast

4

549

8,116

8,281

(2.0

%)

2,196

2,094

4.9

%

5,920

6,187

(4.3

%)

72.9%

95.6%

96.5%

2,577

2,605

Total

23

6,027

$

65,987

$

65,923

0.1

%

$

22,111

$

20,873

5.9

%

$

43,876

$

45,050

(2.6

%)

66.5%

97.4%

96.7%

$

1,873

$

1,884

Location

Purchase Price

Acres

Closing Date

Land Acquisitions

Benson Hotel and Faculty Club

Aurora, CO

$

6.2

1.5

February 2021

Hamilton on the Bay Land Assemblage [1]

Miami, FL

19.0

1.0

June/July 2021

Total Land Acquisitions

$

25.2

2.5

Leased Communities

Location

Valuation for Leasehold

Apartment Homes

Closing Date

Flamingo Point North Tower

Miami Beach, FL

$

240.0

366

January 2021

707 Leahy

Redwood City, CA

79.1

110

January 2021

The Fremont

Aurora, CO

89.0

253

January 2021

Prism

Cambridge, MA

60.9

136

January 2021

Robin Drive Land [2]

Corte Madera, CA

6.1

-

June 2021

Total Leases [3]

$

475.1

865

[1] Aimco purchased eight land parcels in June and July, six closed in June for $12 million and the remaining two closed in July for $7 million.

[2] Vacant land at time of lease on which Aimco is constructing 16 single family homes plus eight accessory dwelling units for a total of 24 homes.

[3] The annualized lease payments for these leases totals $26 million.

•

gains and losses on the dispositions of depreciated property;

•

impairment write-downs of depreciated property;

•

impairment write-downs of investments in unconsolidated partnerships caused by a decrease in the value of the depreciated property in such partnerships; and

•

adjustments to reflect the Aimco's share of EBITDAre of investments in unconsolidated entities.

•

net income attributable to noncontrolling interests in consolidated real estate partnerships, EBITDAre adjustments attributable to noncontrolling interests, and the amount of unrealized gains recognized by Aimco on its interest rate options, to allow investors to compare a measure of Aimco's earnings before the effects of Aimco's capital structure and indebtedness with that of other companies in the real estate industry;

•

the amount of interest income recognized by Aimco related to the mezzanine loan made by Aimco to a partnership owning Parkmerced Apartments that was accrued but not paid during the quarter.

Segment NOI Reconciliation

Three Months Ended (in thousands)

June 30, 2021

June 30, 2020

Total Real Estate Operations

Revenues,

Before Utility

Reimbursements [1]

Expenses,

Net of Utility

Reimbursements

Revenues,

Before Utility

Reimbursements [1]

Expenses,

Net of Utility

Reimbursements

Total (per consolidated statements of operations)

$

40,418

$

16,391

$

37,165

$

15,322

Adjustment: Utilities reimbursement

(1,335

)

$

(1,335

)

(1,266

)

(1,266

)

Adjustment: Non-stabilized and other amounts not allocated [2]

(5,770

)

(4,106

)

(3,322

)

(3,679

)

Total Stabilized Operating (per Schedule 6)

$

33,313

$

10,950

$

32,577

$

10,377

Segment NOI Reconciliation

Six Months Ended (in thousands)

June 30, 2021

June 30, 2020

Total Real Estate Operations

Revenues,

Before Utility

Reimbursements [1]

Expenses,

Net of Utility

Reimbursements

Revenues,

Before Utility

Reimbursements [1]

Expenses,

Net of Utility

Reimbursements

Total (per consolidated statements of operations)

$

80,221

$

33,332

$

75,474

$

30,671

Adjustment: Utilities reimbursement

(2,893

)

$

(2,893

)

(2,715

)

(2,715

)

Adjustment: Non-stabilized and other amounts not allocated [2]

(11,341

)

(8,328

)

(6,836

)

(7,083

)

Total Stabilized Operating (per Schedule 6)

$

65,987

$

22,111

$

65,923

$

20,873

[1]

Approximately two-thirds of Aimco's utility costs are reimbursed by residents. These reimbursements are included in rental and other property revenues on Aimco's consolidated statements of operations prepared in accordance with GAAP. This adjustment represents the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results and as presented on Supplemental Schedule 6. Aimco also excludes the reimbursement amounts from the calculation of Average Revenue per Apartment Home throughout this Earnings Release and Supplemental Schedules.

[2]

Properties not included in the Stabilized Operating Portfolio and other amounts not allocated includes operating results of properties not presented in the Stabilized Operation Portfolio as presented on Supplemental Schedule 6 during the periods shown, as well as property management and casualty expense, which are not included in property operating expenses, net of utility reimbursements in the Supplemental Schedule 6 presentation.