AIV 8-K
Apartment Investment & Management Co (AIV)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
Apartment Investment and Management Company ("Aimco") is participating in Nareit's REITworld 2024 Annual Conference held November 18-21. Representatives of Aimco, including Wes Powell, President and Chief Executive Officer, Lynn Stanfield, Executive Vice President and Chief Financial Officer, and Matt Foster, Vice President of Investor Relations and Capital Markets, will be meeting with investors to discuss the attached presentation. The presentation is furnished herein as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibits are filed with this report:
Exhibit No. |
Description |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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APARTMENT INVESTMENT AND MANAGEMENT COMPANY |
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November 18, 2024 |
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/s/ H. Lynn C. Stanfield |
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H. Lynn C. Stanfield |
Balance Sheet Ample liquidity, protection against interest rate volatility, and limited near-term maturities Capital Allocation Committed to prudent capital allocation that maximizes total shareholder returns over time Corporate Responsibility Committed to stockholder friendly governance, our team, and the communities in which we operate Cash on hand and capacity on revolving credit facility $260M Announced dispositions 1001 Brickell Bay Drive The Yacht Club The Hamilton 3333 Biscayne Blvd Highly regarded and reconstituted Board with an average tenure of only three years Debt maturities through May 2026 (inclusive of extension options and planned sales) None Targeted use of proceeds Retire associated liabilities Return of capital to stockholders Select new investments Aimco’s Board has implemented shareholder friendly policies, achieving an ISS governance score of 1 (highest possible) Percentage of Aimco debt either fixed rate or hedged 100% Record team engagement, Healthiest Employers Awards, and volunteerism through Aimco Cares Weighted average cost of fixed-rate debt on stabilized apartment portfolio 4.26% Shares repurchased since 2022 (through Oct 2024) 14M / $106M Development projects are being built to LEED and Fitwel standards Mark-to-market on leverage $43M AIMCO OVERVIEW NYSE: AIV Stabilized Portfolio Diversified portfolio in markets projected, on average, to deliver upper quartile revenue growth over next five years Active Development Projects Multifamily developments in lease-up are on track to create substantial value upon stabilization Future Development Pipeline Large and attractive opportunity set, new starts to be primarily funded through third party capital US markets / residential units 8 / 5,600 # of units 1,047 Potential residential units ~ 5,800 3Q 2024 Annualized NOI $110M Commercial space 121K sf Potential commercial space ~ 1.7M sf Avg monthly revenue per apartment home $2,415 Total direct costs of development projects in lease-up $642M 2024 Planning costs ~$4M New customer rent / income ratio < 20% Total direct costs of development projects under construction $240M 2024 Expected Monetizations (AIV Share) $14M Urban / suburban mix (% of NOI) 20% / 80% 2024 AIV equity funding ~$5M Targeted AIV equity contribution of total development cost 10% - 15% 2024 Revenue growth guidance +3.75% - +4.25% NOI at stabilization $62M Targeted NOI yield spreads 150 – 200 bps Boston 46% / Chicago 28% / New York 4% SE Florida 15% / Other 7% SE Florida 27% / CO Front Range 8% DC Metro 59% / Other 6% SE Florida 77% / CO Front Range 19% DC Metro 4% / Other 0% Total Shareholder Return Aimco (AIV) Year-to-date 7.8% Since Spin-off 54.6% FTSE Nareit Equity Residential Index Year-to-date 12.1% Since Spin-off 35.1% *As of October 31, 2024 Source: Green Street, Factset, and Company Records. As of September 30, 2024, unless otherwise noted.
CONTENTS PRESENTATION TOPICS Stabilized Portfolio & Results Strong stabilized operating performance with YTD NOI up 4.0% through the third quarter and blended lease-to-lease up 3.7% through October. Development & Redevelopment Aimco is leasing-up more than 930 apartment homes that are expected to produce approximately $40M of annual NOI when stabilized. Balance Sheet, Portfolio & Capital Allocation Progressing planned asset sales to unlock value and consolidate the portfolio. Aimco plans to prudently allocate capital and currently favors the return of capital to shareholders, sourced from cash on hand and planned asset sales. Value Proposition Continued value creation with opportunities to narrow the gap between share price and net asset value. 2 1 3 4 Oak Shore Corte Madera, CA Elm Creek Apartments Elmhurst, IL
STABILIZED PORTFOLIO REAL ESTATE INVESTMENTS URBAN vs. SUBURBAN BY MARKET Aimco owns a portfolio of 21 stabilized apartment communities with 5,600 apartment homes diversified by geography and price point. 64% 26% 10% Class B Class C+ Class A 19% 3Q Rent-to-Income Ratio $2,415 3Q Avg Monthly Revenue per Apartment Home PERCENT OF STABILIZED OPERATING NOI Source: Company Records Class A refers to apartment communities with rents >120% of local market average Class B refers to apartment communities with rents between 90% and 120% of local market average Class C refers to apartment communities with rents less than 90% of local market average Evanston Place 190 Units – Evanston, IL The Milan 42 Units – New York, NY Plantation Gardens 372 Units – Plantation, FL Hyde Park Tower 155 Units – Chicago, IL Royal Crest Estates (Nashua) 902 Units – Nashua, NH SELECT STABILIZED OPERATING COMMUNITIES PORTFOLIO STATS Wexford Village 264 Units – Worcester, MA
STABILIZED PORTFOLIO REAL ESTATE INVESTMENTS Source: Green Street, Company Records Aimco’s Stabilized NOI is earned by apartment communities located in markets with forecast compounded annual revenue growth rate of +3.3% over the next four-year period. 70 bps higher than the average of Green Street’s Top 50 markets and 140 bps higher than the average of a Sunbelt portfolio. THIRD-PARTY MARKET REVENUE GROWTH FORECAST Year End 2024 Indexed to 100
3Q 2024 YTD RESULTS Full Year 2024 OUTLOOK 97.0% Average Daily Occupancy 3.75% - 4.25% Stabilized Revenue Growth 4.7% Revenue Growth 5.50% - 6.50% Stabilized Expense Growth 4.0% NOI Growth 2.50% - 3.75% Stabilized NOI Growth STABILIZED PORTFOLIO PERFORMANCE METRICS Source: Company Records October 2024 results are preliminary The mid-point of our revenue guidance is now up 125 bps, and our NOI mid-point is up more than 200 bps from our beginning of year expectations. Blended lease-to-lease +3.7% NOTES / UPDATE +60bps Average Daily Occupancy YTD October 2024 Average Daily Occupancy Year-over-year increase 97.1%
DEVELOPMENT TRACK RECORD Source: Company Records, as of 2Q 2024 9 Development and Land Portfolio $ in millions $1.1Bn of development projects constructed or stabilized on plan since 2020. $0.7Bn of development projects and land assets monetized at accretive valuations since 2020. $0.6Bn of planned construction completions, and one new project start, in 2024. Future run rate of development activity and exposure to land holdings is expected to be ~50% lower than prior four-year average and funded primarily with 3rd party capital. Values presented are based on year end financial statements or Aimco’s current expectations.
MULTIFAMILY DEVELOPMENTS IN LEASE-UP Sources: Company Records, estimates as of October 2024. Graphic above is representative of a typical project lifecycle and is not intended to be used as a forecast for any current Aimco project. Strathmore Square Bethesda, MD 220-Unit Phase I Development Construction complete, 68 units leased or pre-leased at rates ahead of underwriting Upton Place Washington D.C. 689-Unit Mixed Use Development Construction complete, 296 homes leased or pre-leased at rates ahead of underwriting & 105K sf of commercial space 90% leased Aimco is actively leasing-up more than 930 apartment homes which are expected to produce approximately $40M of annual NOI when fully stabilized. Oak Shore Corte Madera, CA 24-Home Single Family Rental Development 19 homes complete & 15 units leased or pre-leased at rates ahead of underwriting LAND & CONSTRUCTION LEASE-UP & STABILIZATION FULLY STABILIZED Higher Risk / Discount Rate No/Low Cash Flow Risk Decreases Cash Flow Increases Rapidly Low Risk Cash Flow Growth Moderates Operating Cash Flow Risk / Discount Rate
NEW DEVELOPMENT PROJECT Aimco, in partnership with a leading global investment firm, has commenced construction on a 38-story ultra-luxury waterfront tower in Miami’s Edgewater neighborhood. Aimco contributed the land, pre-development efforts, and ~$5M of equity with its venture partner and construction lender providing commitments to fund the remaining capital. Project Details 34th Street - Edgewater Total Rentable SqFt 291k Total Units 114 Expected Direct Costs $240M Projected Yield on Cost ~7% Projected Initial Occupancy 3Q 2027 Initial Aimco Ownership 44%
Fitzsimons 4 Bioscience Strathmore Phase 2 Aimco Pipeline Investments DEVELOPMENT PIPELINE CURRENT LAND HOLDINGS Aimco expects to fund the vertical construction of SELECT PIPELINE PROJECTS with construction loans, Co-GP and/or LP equity, and limited additional Aimco equity. Consistent with Aimco’s capital allocation strategy, it may choose to MONETIZE CERTAIN PIPELINE ASSETS prior to vertical construction in an effort to maximize value add and risk-adjusted returns. Aimco targets underwritten NOI yields that are +150-200 BPS above the current estimated cap rate. Flagler Village Fort Lauderdale, FL Potential development rendering 300 Broward Flagler Village One Edgewater
BALANCE SHEET STRONG WITH LIMITED EXPOSURE Ample liquidity with access to $110 million of cash on hand and full capacity on its $150 million revolving credit facility Interest rate protection with Aimco total debt either fixed-rate or with rate caps currently mitigating all floating rate exposure Weighted average cost of debt including interest rate caps, of 5.82% Aimco Share, $ in thousands Amount Weighted Avg. Maturity (Yrs.) [1] Total non-recourse fixed rate debt $ 775,463 7.0 Total non-recourse floating rate debt 89,843 1.5 Total non-recourse construction loan debt 313,193 1.6 Leverage Breakdown [1] Non-recourse property-level debt and construction loans Total non-recourse fixed rate debt Total non-recourse floating rate debt Total non-recourse construction loan debt As of September 30, 2024 [1] Inclusive of contractual extension options and considering debt retirement associated with announced disposition agreements. Transferable, lower-cost, fixed-rate debt weighted average cost of fixed-rate debt of 4.26% with a term of 6.5 years, 90% of which is transferable Weighted Avg. Maturity (Yrs.) 6.5 3.0 3.4
Aimco plans to continue efforts to consolidate its portfolio through the monetization of alternative and non-core assets, the ‘right-sizing’ of its development program, the sale of its Brickell Assemblage and increased geographic concentration. We believe these actions will lead to broader appeal, and an improved valuation, for the remaining components of the business. PORTFOLIO COMPOSITION Occ. Stabilized Apartment Properties Land & Active Development Alternative & Non-Core Assets Brickell Assemblage Source: Company Records and Estimates
NEAR-TERM SOURCES OF CAPITAL Aimco Share, $ in thousands Amount Weighted Avg. Maturity (Yrs.) [1] Total non-recourse fixed rate debt $ 775,463 7.0 Total non-recourse floating rate debt 89,843 1.5 Total non-recourse construction loan debt 313,193 1.6 UPDATE ON ANNOUNCED AND PLANNED DISPOSITIONS The Hamilton & 3333 Biscayne Blvd. Status: Under Contract, non-refundable deposit in escrow Closing Timeline: Year-end 2024 Terms & Pricing: All cash sale, $256.5M gross valuation ($203.8M at Aimco’s share) Planned Use of Funds: Retire $110M of associated liabilities, currently carrying an average rate of 8.6%, and return approximately $90M of capital to shareholders in 1Q 2025. The Yacht Club & 1001 Brickell Bay Drive (The Brickell Assemblage) Status: A buyer has been selected and their due diligence is in process Closing Timeline: 2025 Terms & Pricing: Disclosure to be provided pending completion of buyer due diligence and deposit becoming non-refundable. Planned Use of Funds: Retire approximately $160M of associated debt, address deferred tax liability related to the 1001 Brickell Bay Drive asset and return the majority of net proceeds to shareholders.
NEAR-TERM CAPITAL ALLOCATION As Aimco unlocks the value created from prior investments, we currently favor the return of capital to shareholders. In addition, we will maintain balance sheet stability, further consolidate our holdings to stabilized multifamily properties, and operate a right-sized development business. Return of capital to shareholders through common stock repurchases, partnership unit redemptions, and special cash dividends. Since the start of 2022, through August, Aimco has repurchased 14M shares at an average price of $7.51 per share and redeemed more than 260,000 operating partnership units for cash. In 2023, Aimco’s Board of Directors increased the repurchase authorization to 30M shares. Leverage reduction through the retirement of asset-level debt upon completion of planned transactions. Retire the $261M of debt and satisfy the deferred tax liability associated with the assets for sale. Opportunistically consider other leverage reductions. Select new investments which offer the prospect of strong risk-adjusted returns. Aimco anticipates maintaining an active development business but reducing the amount of Aimco capital allocated to development activity in the years ahead. Aimco started one new project and expects to invest ~$4M of Aimco equity into planning in 2024.
NET ASSET VALUE VALUATION BUILDING BLOCKS Source: Company Records, Green Street Market Reports Annualized 3Q 2024 NOI before 3% management fees. Aimco estimated values that are not guarantees of future performance or results, actual performance could differ significantly. Investment value for IQHQ is based on cost, adjusted for any impairment or observable price changes, the Real Estate Tech Funds are valued based on 3Q 2024 GAAP fair value. Notes receivable presented at book value. Not included in the above is the tax liability that may be recognized on the disposition of certain assets, primarily Aimco’s 1001 Brickell Bay Drive office building, held by Aimco’s Taxable REIT Subsidiaries. Aimco’s balance sheet includes a $103.2M deferred tax liability and a $4.7M deferred tax asset representing the difference of the tax basis versus the carrying value for GAAP effective tax rates. The tax liability at disposition is most likely lower. Other Liabilities, net generally consists of Aimco’s land leases, accrued expenses, resident security deposits, accounts payable, and other general liabilities. Included is a GAAP liability related to the partial interest sale of Aimco’s mezzanine loan that is not expected to be incurred. Amounts presented at 100% ownership exclusive of noncontrolling interests. Aimco estimates this value to be $45M - $55M. Aimco provides a summary of the items needed to support your calculation of an estimate of Net Asset Value (NAV) in Supplement Schedule 8 in our quarterly earnings release. The building blocks of Aimco’s valuation as of September 30, 2024, are: Multifamily “B” Cap Rates for Aimco’s Markets per Green Street range from 4.8% to 6.0% Aimco’s 1001 Brickell Bay Drive Office Asset Aimco forecasts occupancy to stabilize at four of the five projects in 2025 and $44M of NOI to stabilize during 2026 Net Operating Income Annualized NOI for Stabilized Apartment Properties [1] $109.6 Annualized NOI for Other Real Estate [1] 6.5 Annualized NOI for unconsolidated real estate at AIV share [1] 2.3 Projected Annual NOI for Active Development Projects upon Stabilization [1][2] 61.6 Other Net Assets Land, Planning and Entitlement Investment at Cost 141.0 IQHQ and Real Estate Tech Funds [3] 17.5 Cash and Equivalents 82.6 Restricted Cash 27.8 Notes receivable [4] 58.2 Fair Value Adjustment on Fixed Rate Debt & Preferred Equity [2] 43.1 Expected proceeds from announced dispositions at Aimco share 203.8 Net Liabilities [5] Non-recourse property debt $854.8 Construction Loans and Preferred Equity Interests 309.5 Loans to be retired upon closing announced dispositions at Aimco share 110.1 Preferred Equity Interests 175.3 Investment Remaining to Complete Active Development Projects 203.2 Other Liabilities, net [6] 148.7 Total shares, units and dilutive share equivalents 150.0 Noncontrolling Interests in Real Estate [7] Excludes the 4.25-acre Brickell Assemblage where recent land sales support a valuation $125 - $175M greater than that of the capitalized income value, and pipeline planning and entitlement investment with an estimated value of at least $40M[2]
VALUE PROPOSITION COMMITTED TO MAXIMIZING AND UNLOCKING STOCKHOLDER VALUE The Aimco Board of Directors, in coordination with management, remains intently focused on maximizing and unlocking value for Aimco stockholders and continues to engage regularly with several leading advisory firms, including Morgan Stanley & Co. LLC. Aimco’s announced plans to reduce exposure to development activity and monetize certain assets represent a commitment to simplify the portfolio and unlock embedded value when there are opportunities to do so. These efforts will further improve Aimco’s positioning in the market and provide increased flexibility as the Board of Directors continues its review and consideration of broader strategic actions to maximize stockholder value. In addition, in conjunction with our contemplated asset sales, we will prioritize return of capital to our stockholders as a key component of our capital allocation philosophy. There can be no assurance that the ongoing review will result in any particular transaction or transactions or other strategic changes or outcomes and the timing of any such event is similarly uncertain. The Company 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. Share Price Performance Since Separation as of 10/31/2024 | indexed to 100
AIMCO TEAM Executive team has an average Aimco tenure of more than 20 YEARS Development team has collectively built or renovated approximately $15Bn IN PROJECTS, including 50K APARTMENT HOMES, and has an average of more than 22 YEARS of industry experience Capital Markets and Transactions teams have participated in more than $16Bn OF TRANSACTIONS AND FINANCINGS and have an average of more than 17 YEARS of industry experience Aimco team had RECORD ENGAGEMENT SCORE OF 4.74 in 2023 AIMCO MAINTAINS A TEAM OF HIGHLY ENGAGED AND DEEPLY EXPERIENCED REAL ESTATE PROFESSIONALS Wesley Powell Chief Executive Officer Lynn Stanfield Chief Financial Officer Jennifer Johnson General Counsel & Chief Administrative Officer Lee Hodges Southeast Region Tom Marchant Tax & FP&A Matt Konrad National Transactions Derek Ullian Development John Nicholson Capital Markets & Treasurer Elizabeth “Tizzie” Likovich Central Region Matt Hopkins Mid-Atlantic Region Kelley Babin Chief Information Officer Chad Levine Investment Finance & Asset Management Kellie Dreyer Chief Accounting Officer Matt Foster Investor Relations & Capital Markets
Robust governance structure supportive of long-term value creation Board led by an Independent Chair Active board refreshment, with new directors added each of the last 3 years Governance provisions aligned with shareholder interests HIGHLY QUALIFIED BOARD WITH EXPERTISE RELEVANT TO OUR BUSINESS Kirk A. Sykes Co-Managing Partner, Accordia Partners, LLC James P. Sullivan APPOINTED 2022 Former President, Green Street Advisory Group R. Dary Stone Board Chair President and CEO, R. D. Stone Interests Jay Paul Leupp Co-Founder, Managing Partner, Terra Firma Asset Management Sherry L. Rexroad APPOINTED 2023 CFO, Piedmont Office Realty Trust Deborah Smith APPOINTED 2021 Co-Founder and CEO, The Centercap Group Wesley Powell CEO, Aimco Quincy L. Allen Co-Founder and Managing Partner, Arc Capital Partners Patricia L. Gibson Founding Principal and CEO, Banner Oak Capital Partners Key Board Skills Real Estate Investment and Finance Capital Markets Development Property / Asset Management and Operations Accounting and Auditing for Large Business Organizations Marketing and Branding
ASSET LIST OPERATING APARTMENT COMMUNITIES DEVELOPMENTS AND REDEVELOPMENTS Property Name Location Apartment Homes Property Name Location Units 118-122 West 23rd Street New York, NY 42 Oak Shore Corte Madera, CA 24 173 E. 90th Street New York, NY 72 Upton Place Washington, DC 689 237-239 Ninth Avenue New York, NY 36 Strathmore Square Phase 1 Bethesda, MD 220 1045 on the Park Apartments Homes Atlanta, GA 30 34th Street Miami, FL 114 2200 Grace Lombard, IL 72 DEVELOPMENT LAND Bank Lofts Denver, CO 125 Bluffs at Pacifica, The Pacifica, CA 64 Property Name Location Acres Eldridge Townhomes Elmhurst, IL 58 300 Broward Fort Lauderdale, FL 2.31 Elm Creek Elmhurst, IL 400 One Edgewater Miami, FL 0.50 Evanston Place Evanston, IL 190 CU Anschutz Campus Holdings Aurora, CO 9.96 Hillmeade Nashville, TN 288 Flagler Village Fort Lauderdale, FL 8.80 Hyde Park Tower Chicago, IL 155 Flying Horse Colorado Springs, CO 7.45 Plantation Gardens Plantation ,FL 372 Strathmore Square Phase 2 Bethesda, MD 1.35 Royal Crest Estates Warwick, RI 492 Royal Crest Estates Nashua, NH 902 NON-CORE & ALTERNATIVE INVESTMENTS Royal Crest Estates Marlborough, MA 473 Investment Name Investment Type Waterford Village Bridgewater, MA 588 The Benson Hotel & Faculty Club Non-Core Real Estate Wexford Village Worcester, MA 264 IQHQ Passive Equity Willow Bend Rolling Meadows, IL 328 Parkmerced Mezzanine Loan Yorktown Apartments Lombard, IL 292 RE Tech Funds Passive Equity PARTNERSHIP OWNED PLANNED / ANNOUNCED DISPOSITIONS Property Name Location Apartment Homes Property Name Location Casa del Hermosa La Jolla, CA 41 1001 Brickell Bay Drive Miami, FL Casa del Mar La Jolla, CA 30 Yacht Club at Brickell Miami, FL Casa del Norte La Jolla, CA 34 The Hamilton Miami, FL Casa del Sur La Jolla, CA 37 3333 Biscayne Miami, FL
NON-GAAP RECONCILIATION PROPERTY NET OPERATING INCOME (NOI): NOI is defined by Aimco as total property rental and other property revenues less direct property operating expenses, including real estate taxes. NOI does not include: property management revenues, primarily from affiliates; casualties; property management expenses; depreciation; or interest expense. NOI is helpful because it helps both investors and management to understand the operating performance of real estate excluding costs associated with decisions about acquisition pricing, overhead allocations, and financing arrangements. NOI is also considered by many in the real estate industry to be a useful measure for determining the value of real estate. Reconciliations of NOI as presented in this report to Aimco’s consolidated GAAP amounts are provided below. Due to the diversity of its economic ownership interests in its apartment communities in the periods presented, Aimco evaluates the performance of the apartment communities in its segments using Property NOI, which represents the NOI for the apartment communities that Aimco consolidates and excludes apartment communities that it does not consolidate. Property NOI is defined as rental and other property revenue less property operating expenses. In its evaluation of community results, Aimco excludes utility cost reimbursement from rental and other property revenues and reflects such amount as a reduction of the related utility expense within property operating expenses. The following table presents the reconciliation of GAAP rental and other property revenue to the revenues before utility reimbursements and GAAP property operating expenses to expenses, net of utility reimbursements as presented herein and on Supplemental Schedule 6 of Aimco’s quarterly earnings release and supplemental schedules. OTHER LIABILITIES, NET: Other liabilities, net, as presented herein and on in Aimco’s Earnings Release on Supplemental Schedule 8, Net Asset Value Components, generally consists of the Aimco's development land leases, accrued expenses, resident security deposits, accounts payable, and other general liabilities, net of interest rate options and other assets, excluding the fair value of Aimco's investments in IQHQ and real estate technology funds. Other liabilities, net as of September 30, 2024, as presented in Supplemental Schedule 8, Net Asset Value Components, is calculated as follows (in millions): Segment NOI Reconciliation Nine Months Ended (in thousands) September 30, 2024 September 30, 2023 Total Real Estate Operations Revenues, Before Utility Reimbursements Expenses, Net of Utility Reimbursements Revenues, Before Utility Reimbursements Expenses, Net of Utility Reimbursements Total (per consolidated statements of operations) $ 154,508 $ 67,093 $ 137,643 $ 54,648 Adjustment: Utilities reimbursement (5,224 ) (5,224 ) (4,544 ) (4,544 ) Adjustment: Other Real Estate (14,762 ) (10,087 ) (12,053 ) (7,554 ) Adjustment: Non-stabilized and other amounts not allocated [2] (17,900 ) (16,244 ) (9,642 ) (9,122 ) Total Stabilized Operating (per Schedule 6) $ 116,622 $ 35,538 $ 111,404 $ 33,428 Accrued Liabilities and Other (per Consolidated Balance Sheet) $ 125.1 Lease liabilities - finance leases (per Consolidated Balance Sheet) 121.3 Other assets, net (per Consolidated Balance Sheet) (103.2 ) Total 143.2 Reduction in assets (reported elsewhere on Schedule 8): IQHQ and Real Estate Tech Funds 17.5 Unconsolidated real estate partnerships 20.9 Reduction in liabilities (GAAP amount not reflective of value): Mezzanine Investment - Participation Sold (32.9 ) Other liabilities, net (per Schedule 8) $ 148.7
FORWARD LOOKING STATEMENT This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to, the statements in this document regarding our future plans and goals, including our pipeline investments and projects, our plans to eliminate certain near term debt maturities, our estimated value creation and potential, our timing, scheduling and budgeting, projections regarding lease growth, our plans to form joint ventures, our plans for new acquisitions or dispositions, our strategic partnerships and value added therefrom, and changes to our corporate governance. We caution investors not to place undue reliance on any such forward-looking statements. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of Aimco that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statement. Important factors, among others, that may affect actual results or outcomes include, but are not limited to: (i) the risk that the 2024 plans and goals and future estimates and targets may not be completed, as expected, in a timely manner or at all, (ii) the inability to recognize the anticipated benefits of the pipeline investments and projects, and (iii) changes in general economic conditions, including, increases in interest rates and other force-majeure events. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. 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, 2023, and subsequent Quarterly Reports on Form 10-Q and other documents Aimco files from time to time with the SEC. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These forward-looking statements reflect management’s judgment and expectations as of this date, and Aimco assumes no (and disclaims any) obligation to revise or update them to reflect future events or circumstances. Certain financial and operating measures found herein are used by management and are not defined under accounting principles generally accepted in the United States, or GAAP. These measures are reconciled to the most comparable GAAP measures at the end of this presentation. Definitions can be found in Aimco’s Earnings Release and Supplemental Schedules for the quarter ended September 30, 2024.