DENVER--(BUSINESS WIRE)--Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today second quarter results for 2017.
Chairman and Chief Executive Officer Terry Considine comments: “Business is good. Aimco has a simple business plan that is working well. Second quarter results provide confirmation: our focus on customer satisfaction and cost control produced Same Store NOI growth of 4.9%, an increase of $0.03 per share year-over-year. Our portfolio outside Same Store did even better, adding $0.04 per share year-over-year primarily from the continuing lease-up of redeveloped and newly constructed apartment homes. Portfolio quality improved with the repurchase of our partner’s interest in the three Palazzo communities: adjusted for that transaction, average monthly revenue per apartment home reached $2,038, up 7% from the prior year. Our balance sheet remains strong with abundant liquidity, and Aimco was once again recognized as one of Colorado’s top workplaces.”
Chief Financial Officer Paul Beldin adds: “Second quarter AFFO of $0.51 per share was $0.03 per share ahead of the midpoint of our guidance range with the outperformance driven by lower than anticipated interest and general and administrative expenses as well as somewhat better than expected performance by our non-Same Store real estate operations. Considering our solid second quarter performance and what we can see ahead, I remain confident in our full year Same Store, FFO and AFFO guidance and project third quarter AFFO to be in a range from $0.50 to $0.54 per share.”
Financial Results: Second Quarter FFO Up 3%; AFFO Up 2%
|(all items per common share - diluted)||2017||2016||Variance||2017||2016||Variance|
|Funds From Operations (FFO)||$||0.61||$||0.59||3||%||$||1.19||$||1.16||3||%|
|Deduct Aimco share of Capital Replacements||$||(0.10||)||$||(0.09||)||11||%||$||(0.17||)||$||(0.15||)||13||%|
|Adjusted Funds From Operations (AFFO)||$||0.51||$||0.50||2||%||$||1.02||$||1.01||1||%|
Net Income (per diluted common share) - Year-over-year, second quarter net income decreased primarily due to lower gains on the sale of apartment communities in 2017 as compared to 2016.
FFO (per diluted common share) - Aimco’s second quarter FFO increased by $0.02 per share, or 3%, on a year-over-year basis. The primary drivers of the increase in FFO per share were:
- $0.03 increase from Same Store Property Net Operating Income growth of 4.9%, driven primarily by an increase in revenue of 3.4% and a reduction in operating expenses;
- $0.04 increase from Net Operating Income growth from our portfolio outside of Same Store, primarily from the lease-up of renovated homes in our Redevelopment communities and also from the lease-up of One Canal in Boston, Massachusetts and Indigo in Redwood City, California; plus
- $0.04 from lower interest expense, lower general and administrative costs and lower other expenses.
These increases of $0.11 in FFO per share were offset by reductions of $0.09: $0.04 of planned reductions in earnings from the Asset Management business, which we are exiting; $0.02 from lower tax benefits; and $0.03 from the loss of income from apartment communities sold in 2016.
Adjusted Funds from Operations (per diluted common share) - The $0.02 increase year-over-year in FFO was partially offset by $0.01 due to Aimco’s planned increase in capital replacement spending during second quarter 2017, resulting in a $0.01, or 2%, year-over-year increase in AFFO per share.
Operating Results: Second Quarter Same Store NOI Up 4.9%
|Average Rent Per Apartment Home||$1,756||$1,695||3.6||%||$1,747||0.5||%||$1,751||$1,685||3.9||%|
|Other Income Per Apartment Home||176||173||1.7||%||174||1.1||%||175||173||1.2||%|
|Average Revenue Per Apartment Home||$1,932||$1,868||3.4||%||$1,921||0.6||%||$1,926||$1,858||3.7||%|
|Average Daily Occupancy||95.9||%||96.0||%||(0.1||)%||95.9||%||—||%||95.9||%||96.1||%||(0.2||)%|
|$ in Millions|
Same Store Rental Rates - Aimco measures changes in rental rates by comparing, on a lease-by-lease basis, the rate on a newly executed lease to the rate on the expiring lease for that same apartment. Newly executed leases are classified either as a new lease, where a vacant apartment is leased to a new customer, or as a renewal. During second quarter, the pace of Aimco’s rent growth accelerated from 1.9% in the first quarter to 2.7% in the second quarter. This acceleration continued in July.
Preliminary July weighted average lease rates are up 3.2%, with renewals up 4.6% and new lease rates up 2.0%. Through the date of this release, Aimco had completed approximately two-thirds of its expected 2017 lease transactions. The weighted average lease rates for these 16,600 leases is an increase of 3.0%.
The table below details changes in new and renewal lease rates.
|2017||1st Qtr.||Apr||May||Jun||2nd Qtr.||Year-to-Date|
|Renewal rent increases||5.1||%||4.5||%||4.6||%||4.8||%||4.6||%||4.8||%|
|New lease rent increases||(1.0||)%||—||%||1.5||%||1.2||%||1.0||%||0.5||%|
|Weighted average rent increases||1.9||%||2.1||%||3.0||%||2.8||%||2.7||%||2.5||%|
Redevelopment and Development
During second quarter, Aimco invested $47 million in ongoing redevelopment and development projects and expanded its redevelopment pipeline by $38 million. The total estimated net investment for these redevelopment and development communities is $554 million with a projected weighted average net operating income yield on these investments of 6.1%.
At Park Towne Place, a mixed-use residential community located in Center City, Philadelphia, Aimco is redeveloping the four towers, one at a time. Aimco has substantially completed the redevelopment and lease-up of the first two towers. Construction of the third tower is underway and on schedule for completion later this year. Aimco has already re-leased 57% of the apartment homes in the third tower. Based on the success of the first three towers, Aimco is evaluating the optimal timing to redevelop the fourth tower.
During second quarter, Aimco commenced a $28 million phased redevelopment of Palazzo East at Park La Brea, a 611 apartment home community located in Los Angeles, California. The redevelopment plan includes the renovation of the apartment homes as well as common areas. The redevelopment will enable Aimco to differentiate this community from the three nearby Aimco apartment communities (Palazzo at Park La Brea, Broadcast Center and Villas at Park La Brea) to serve distinct market segments. Approval of the second phase is expected next year.
During second quarter, Aimco also began an initial phase of redevelopment for the Flamingo South Beach, a 1,294 apartment home community in Miami, Florida. This initial phase includes the full upgrade of property-wide security systems and elevators, as well as upgrades to common areas. Approval of the second phase is expected later in 2017 and is expected to include renovation of the apartment homes within the community.
Aimco currently has nine communities under redevelopment, with an expected increase in average monthly revenue of $409 per apartment home. Second quarter leasing activities included 541 apartment homes, primarily at Park Towne Place and The Sterling, in Center City Philadelphia. Rent achievement at these two communities averaged 138% of pre-redevelopment rents and contributed to incremental redevelopment related revenues over second quarter 2016 of $1 million.
Additionally during the quarter, Aimco completed the lease-up of Indigo in Redwood City, California. When combined with activity at One Canal in Boston, a total of 135 leases were transacted during the second quarter, contributing to $7 million of incremental revenue compared to the second quarter of 2016.
At June 30, 2017, Aimco’s lease-up exposure is primarily limited to Park Towne Place, where there are approximately 150 apartment homes to rent once construction is completed in the third tower.
Portfolio Management: Pro Forma Revenue Per Apartment Home Up 7% to $2,038
Aimco portfolio strategy seeks predictable rent growth from a portfolio of apartment communities that is diversified across “A,” “B” and “C+” price points, averaging “B/B+” in quality, and that is also diversified across the largest markets in the U.S. Please refer to the Glossary for a description of Aimco Portfolio Quality Ratings.
As part of its portfolio strategy, Aimco seeks to sell each year up to 10% of the apartment communities in its portfolio and to reinvest the proceeds from such sales in prospects with higher projected free cash flow returns than expected from the communities sold, such as property upgrades, redevelopment of communities in its current portfolio, occasional development of new communities, and selective acquisitions of apartment communities. Through this disciplined approach to capital recycling, Aimco has significantly increased the quality and expected growth rate of its portfolio.
|Revenue per Apartment Home||$||2,038||$||1,908||7||%|
|Portfolio Average Rents as a Percentage of Local Market Average Rents||113||%||113||%||—||%|
|Percentage A (2Q 2017 Revenue per Apartment Home $2,658)||53||%||50||%||3||%|
|Percentage B (2Q 2017 Revenue per Apartment Home $1,752)||33||%||37||%||(4||)%|
|Percentage C+ (2Q 2017 Revenue per Apartment Home $1,693)||14||%||13||%||1||%|
|Free Cash Flow Margin||63||%||62||%||1||%|
Acquisition of 100% Interest in Palazzo Communities - On June 30, Aimco reacquired for $452 million the 47% limited partner interest in the Palazzo joint venture. Aimco once again owns 100% of the three Palazzo apartment communities: Palazzo at Park La Brea, a 521 apartment home community; Palazzo East at Park La Brea, a 611 apartment home community; and Villas at Park La Brea, a 250 apartment home community. The communities are located in the Mid-Wilshire district of Los Angeles. Aimco contracted for the communities’ construction 15 years ago and has operated the communities since their completion. The acquisition is expected to be leverage neutral once short-term borrowings are refunded by sales of lower-rated apartment communities. This transaction shifts capital from submarkets with lower revenue growth to a submarket with 30% higher rent growth and 21% higher free cash flow margins.
Second Quarter Real Estate Portfolio - Adjusting for the Palazzo transaction, Aimco’s Real Estate portfolio average monthly revenue per apartment home was $2,038 for second quarter 2017, a 7% increase compared to second quarter 2016. Year-over-year growth in Same Store average rent and other income per apartment home of 3.6% and 1.7%, respectively, resulted in monthly revenue per apartment home growth of 3.4%. The sale of apartment communities in 2016 with average monthly revenues per apartment home substantially lower than those of the retained portfolio and reinvestment of the sales proceeds through redevelopment, development and acquisition of apartment communities with higher rents and better free cash flow return prospects also contributed to the growth in average revenue per apartment home.
Balance Sheet and Liquidity
Aimco targets net leverage of $3.8 billion. In second quarter, Aimco increased its leverage above this target to acquire the 47% limited partner interest in the Palazzo joint venture. The increase in leverage included the assumption of $141 million in existing non-recourse property debt, $250 million in a new term loan, and $61 million in borrowings under the revolving credit facility. Aimco plans to sell apartment communities in Rhode Island, Virginia, Maryland, and New Jersey to repay the term loan and reduce leverage to its $3.8 billion target.
Term Loan - On June 30, 2017, Aimco amended its credit facility to provide for the $250 million term loan described above. The term loan matures on June 30, 2018, has a one-year extension option, and bears interest at 30-day LIBOR plus 135 basis points. Aimco paid lender and other fees of $1 million in connection with the term loan, which will be reflected as additional interest over the duration of the loan.
Non-recourse Property Debt - During the second quarter, Aimco priced seven loans totaling $79 million. These loans have a weighted average interest rate of 3.46%, a spread of 129 basis points over the corresponding treasury rates at the time of pricing.
Aimco leverage includes Aimco’s share of long-term, non-recourse property debt secured by apartment communities in the Real Estate portfolio, a one-year term loan, outstanding borrowings under its revolving credit facility, and outstanding preferred equity. Aimco leverage excludes non-recourse property debt obligations of consolidated partnerships served by its Asset Management business (described further in the Glossary). Please refer to Supplemental Schedule 5(a) for the presentation of Aimco leverage and a reconciliation of Aimco proportionate leverage to Aimco’s consolidated leverage.
|AS OF JUNE 30, 2017|
|$ in Millions||Amount||% of Total||
|Aimco share of long-term, non-recourse property debt||$||3,624||83||%||7.1|
|Outstanding borrowings on revolving credit facility||246||6||%||4.6|
Aimco’s Preferred Equity is perpetual in nature; however, for illustrative purposes, Aimco has computed the weighted average maturity of its total leverage assuming a 40-year maturity for its Preferred Equity.
Aimco target leverage ratios are Proportionate Debt and Preferred Equity to Adjusted EBITDA below 7.0x and Adjusted EBITDA to Interest Expense and Preferred Dividends greater than 2.5x. Aimco also focuses on the ratios of Proportionate Debt to Adjusted EBITDA and Adjusted EBITDA to Adjusted Interest Expense. Please see the Glossary for definitions of these non-GAAP measures and, where appropriate, reconciliations to the nearest GAAP measure.
SECOND QUARTER 2017
|Proportionate Debt to Adjusted EBITDA||6.8x|
|Proportionate Debt and Preferred Equity to Adjusted EBITDA||7.2x|
|Adjusted EBITDA to Adjusted Interest Expense||3.7x|
|Adjusted EBITDA to Adjusted Interest Expense and Preferred Dividends||3.3x|
Due to the lease-up of apartment communities recently acquired, developed or redeveloped, computation of Aimco’s leverage ratios using trailing 12-month Adjusted EBITDA is not reflective of current period operating results, nor material transactions. This variance is demonstrated by Aimco’s June 30, 2017 acquisition of the limited partner interests in the Palazzo joint venture. Accordingly, Aimco revised its calculation of leverage ratios to be based on the current quarter results, annualized, and adjusted further to reflect the acquisition of limited partner interests in the Palazzo joint venture as if it had closed on April 1, 2017.
Changing from trailing 12-months to annualized second quarter results lowered Aimco’s Proportionate Debt to Adjusted EBITDA and Proportionate Debt and Preferred Equity to Adjusted EBITDA by 0.2x, primarily due to the increased contribution from the lease-up of apartment communities discussed above. The consideration of the Palazzo acquisition lowered the same ratios by another 0.2x.
Aimco expects improvement in leverage metrics from earnings growth, primarily due to increasing contribution from redevelopment and lease-up apartment communities and reduction in debt balances due to regularly scheduled debt amortization and apartment community sales, partially offset by the loss of earnings from sold communities. Aimco expects that these activities will reduce its Proportionate Debt to Adjusted EBITDA and Proportionate Debt and Preferred Equity to Adjusted EBITDA ratios by year-end to approximately 6.2x and 6.6x, respectively.
At June 30, 2017, Aimco held cash and restricted cash of $84 million and had available capacity to borrow $343 million under its revolving credit facility, after consideration of outstanding borrowings of $246 million and $11 million of letters of credit backed by the facility. Aimco uses its credit facility primarily for working capital and other short-term purposes and to secure letters of credit.
Aimco also held unencumbered apartment communities with an estimated fair market value of approximately $1.8 billion.
Dividend - As previously announced, the Aimco Board of Directors declared a quarterly cash dividend of $0.36 per share of Class A Common Stock for the quarter ended June 30, 2017. On an annualized basis, this represents an increase of 9% compared to the dividends paid during 2016. This dividend is payable on August 31, 2017, to stockholders of record on August 18, 2017.
|($ Amounts represent Aimco Share)||
|Net Income per share||$0.17||$2.70 to $3.20||$0.38 to $0.48|
|FFO per share||$1.19||$2.40 to $2.48||$2.40 to $2.48|
|AFFO per share||$1.02||$2.08 to $2.16||$2.08 to $2.16|
|Select Components of FFO|
|Same Store Operating Measures|
|Revenue change compared to prior year||3.5%||3.00% to 3.60%||3.00% to 3.60%|
|Expense change compared to prior year||1.1%||0.80% to 1.40%||0.80% to 1.40%|
|NOI change compared to prior year||4.6%||3.75% to 4.75%||3.75% to 4.75%|
|Tax credit income, net ||$5M||$10M||$10M|
|Historic Tax Credit benefit||$3M||$4M to $5M||$4M to $5M|
|Other tax benefits, net||$7M||$15M to $17M||$15M to $17M|
|Total Non-Core Earnings||$15M||$29M to $32M||$29M to $32M|
|Property management expenses||$10M||$21M||$21M|
|General and administrative expenses||$21M||$45M||$45M|
|Total Offsite Costs||$31M||$66M||$66M|
|Redevelopment and development||$88M||$160M to $200M||$160M to $200M|
|Property upgrades||$51M||$85M to $95M||$70M to $90M|
|Property dispositions - Real Estate||$0M||$550M to $650M||$160M to $550M|
|Property acquisitions ||$452M||$452M||$0M|
|Average revenue per apartment home ||$2,038||~$2,100||~$2,100|
|Proportionate Debt to Adjusted EBITDA ||6.8x||~6.2x||~6.0x|
|Proportionate Debt and Preferred Equity to Adjusted EBITDA ||7.2x||~6.6x||~6.4x|
|Value of unencumbered properties||~$1.8B||~$1.7B||~1.9B|
|||Previous full year 2017 guidance shown in the table has been adjusted to be presented net of related costs.|
|||Represents Aimco’s acquisition of the 47% limited partner interest in the Palazzo joint venture.|
|||Average revenue per apartment home for the quarter ended June 30, 2017 is adjusted for the effect of the acquisition of the 47% limited partner interest in the Palazzo joint venture.|
|||Previous full year 2017 guidance shown in the table was based on trailing twelve month Adjusted EBITDA. June 30, 2017 ratios are adjusted for the effect of the Palazzo acquisition.|
|($ Amounts represent Aimco Share)||
|Net income per share||$0.08 to $0.12|
|FFO per share||$0.60 to $0.64|
|AFFO per share||$0.50 to $0.54|
Earnings Conference Call Information
|Live Conference Call:||Conference Call Replay:|
|Friday, July 28, 2017 at 1:00 p.m. ET||Replay available until October 28, 2017|
|Domestic Dial-In Number: 1-888-317-6003||Domestic Dial-In Number: 1-877-344-7529|
|International Dial-In Number: 1-412-317-6061||International Dial-In Number: 1-412-317-0088|
|Passcode: 9313459||Passcode: 10109660|
Live webcast and replay: www.aimco.com/investors
The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco’s website at www.aimco.com/investors.
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 (“GAAP”). These measures are defined in the Glossary in the Supplemental Information and reconciled to the most comparable GAAP measures.
Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with ownership interests in 187 communities in 22 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.
This Earnings Release and Supplemental Information contain forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically forecasts of third quarter and full year results, including but not limited to: FFO, Pro forma FFO and selected components thereof; AFFO; Aimco redevelopment and development investments and projected yield on such investments, timelines and Net Operating Income contribution; expectations regarding sales of Aimco apartment communities and the use of proceeds thereof; and Aimco liquidity and leverage metrics.
These forward-looking statements are based on management’s judgment as of this date, which is subject to risks and uncertainties. Risks and uncertainties include, but are not limited to: Aimco’s ability to maintain current or meet projected occupancy, rental rate and property operating results; the effect of acquisitions, dispositions, redevelopments and developments; Aimco’s ability to meet budgeted costs and timelines, and achieve budgeted rental rates related to Aimco redevelopments and developments; and Aimco’s ability to comply with debt covenants, including financial coverage ratios.
Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond Aimco’s control, including, without limitation:
- Real estate and operating risks, including fluctuations in real estate values and the general economic climate in the markets in which Aimco operates and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the amount, location and quality of competitive new housing supply; the timing of acquisitions, dispositions, redevelopments and developments; and changes in operating costs, including energy costs;
- Financing risks, including the availability and cost of capital markets’ financing; the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; and the risk that earnings may not be sufficient to maintain compliance with debt covenants;
- Insurance risks, including the cost of insurance, and natural disasters and severe weather such as hurricanes; and
- Legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of governmental regulations that affect Aimco and interpretations of those regulations; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently or previously owned by Aimco.
In addition, Aimco’s current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code and depends on Aimco’s ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership.
Readers should carefully review Aimco’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Aimco’s Annual Report on Form 10-K for the year ended December 31, 2016, and the other documents Aimco files from time to time with the Securities and Exchange Commission.
These forward-looking statements reflect management’s judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances. This press release does not constitute an offer of securities for sale.
|Consolidated Statements of Operations|
|(in thousands, except per share data) (unaudited)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Rental and other property revenues attributable to Real Estate||$||227,703||$||223,741||$||452,931||$||446,332|
|Rental and other property revenues of partnerships served by Asset Management business||18,533||19,130||37,095||38,020|
|Tax credit and transaction revenues||2,856||8,347||5,547||13,105|
|Property operating expenses attributable to Real Estate||79,014||79,708||158,640||159,180|
|Property operating expenses of partnerships served by Asset Management business||8,382||9,252||17,579||18,789|
|Depreciation and amortization||89,155||80,680||176,323||160,508|
|General and administrative expenses||10,108||11,616||21,071||23,914|
|Other expenses, net||2,727||5,526||4,465||7,096|
|Total operating expenses||189,386||186,782||378,078||369,487|
|Income before income taxes and gain on dispositions||15,060||22,291||27,624||40,103|
|Income tax benefit||5,023||7,121||10,008||13,007|
|Income before gain on dispositions||20,083||29,412||37,632||53,110|
|Gain on dispositions of real estate, net of tax||1,508||216,541||1,114||222,728|
|Net income attributable to noncontrolling interests in consolidated real estate partnerships||(813||)||(8,677||)||(1,764||)||(9,607||)|
|Net income attributable to preferred noncontrolling interests in Aimco OP||(1,939||)||(1,708||)||(3,888||)||(3,434||)|
|Net income attributable to common noncontrolling interests in Aimco OP||(787||)||(11,135||)||(1,344||)||(12,307||)|
|Net income attributable to noncontrolling interests||(3,539||)||(21,520||)||(6,996||)||(25,348||)|
|Net income attributable to Aimco||18,052||224,433||31,750||250,490|
|Net income attributable to Aimco preferred stockholders||(2,149||)||(2,758||)||(4,297||)||(5,515||)|
|Net income attributable to participating securities||(60||)||(293||)||(119||)||(370||)|
|Net income attributable to Aimco common stockholders||$||15,843||$||221,382||$||27,334||$||244,605|
|Net income attributable to Aimco per common share – basic||$||0.10||$||1.42||$||0.17||$||1.57|
|Net income attributable to Aimco per common share – diluted||$||0.10||$||1.41||$||0.17||$||1.57|
|Weighted average common shares outstanding – basic||156,305||156,375||156,282||155,876|
|Weighted average common shares outstanding – diluted||156,715||156,793||156,735||156,248|
|Consolidated Balance Sheets|
|(in thousands) (unaudited)|
|June 30, 2017||December 31, 2016|
|Net real estate||5,535,471||5,509,760|
|Cash and cash equivalents||44,869||45,821|
|Assets of partnerships served by Asset Management business:|
|Real estate, net||231,881||245,648|
|Cash and cash equivalents||18,893||15,423|
|Liabilities and Equity|
|Non-recourse property debt secured by Aimco Real Estate communities||$||3,634,336||$||3,648,623|
|Debt issue costs||(17,154||)||(18,347||)|
|Non-recourse property debt, net||3,617,182||3,630,276|
|Term loan, net||249,040||—|
|Revolving credit facility borrowings||245,720||17,930|
|Accrued liabilities and other||203,997||218,937|
|Liabilities of partnerships served by Asset Management business:|
|Non-recourse property debt, net||229,631||236,426|
|Accrued liabilities and other||58,641||62,630|
|Deferred income ||15,355||18,452|
|Preferred noncontrolling interests in Aimco OP||101,537||103,201|
|Perpetual preferred stock||125,000||125,000|
|Class A Common Stock||1,570||1,569|
|Additional paid-in capital||3,897,621||4,051,722|
|Accumulated other comprehensive income||896||1,011|
|Distributions in excess of earnings||(2,530,585||)||(2,385,399||)|
Total Aimco equity
|Noncontrolling interests in consolidated real estate partnerships||(2,609||)||151,121|
|Common noncontrolling interests in Aimco OP||(13,794||)||(58||)|
|Total liabilities and equity||$||6,199,202||$||6,232,818|
|||Deferred income primarily represents cash received by Aimco and other amounts required by GAAP to be recognized in earnings in future periods as Aimco performs certain responsibilities under tax credit agreements or as other events occur. Please refer to the Glossary for information about the Asset Management business and a projection of the timing of income recognition related to the tax credit arrangements.|