10-Q 1 aiv-20220331.htm 10-Q 10-Q
http://fasb.org/us-gaap/2021-01-31#FinanceLeaseRightOfUseAssethttp://fasb.org/us-gaap/2021-01-31#OtherAssets0000926660http://fasb.org/us-gaap/2021-01-31#FinanceLeaseLiabilityfalse--12-31http://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesQ1--12-31http://fasb.org/us-gaap/2021-01-31#FinanceLeaseLiabilityhttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitieshttp://fasb.org/us-gaap/2021-01-31#OtherAssetshttp://fasb.org/us-gaap/2021-01-31#FinanceLeaseRightOfUseAssethttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesfalse0000922864Q1http://fasb.org/us-gaap/2021-01-31#FinanceLeaseLiability0000922864aiv:RedevelopmentandDevelopmentMemberaiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMemberaiv:PlannedRoomsMember2022-03-310000922864us-gaap:OperatingSegmentsMember2022-01-012022-03-310000922864aiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2022-01-012022-03-310000922864us-gaap:OperatingSegmentsMemberaiv:OtherMember2022-03-310000922864aiv:UndevelopedLandParcelsAcquisitionMemberaiv:FortLauderdaleJointVentureMember2022-02-012022-02-280000922864srt:MaximumMemberaiv:CommitmentsrelatedtooperationsMember2022-01-012022-03-310000922864aiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2021-03-310000922864aiv:AIMCOOPLPMemberus-gaap:LimitedPartnerMember2021-12-310000922864aiv:MasterServicesAgreementMemberaiv:AIRMemberus-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-310000922864us-gaap:ParentMember2021-03-310000922864aiv:AIMCOOPLPMemberaiv:UnconsolidatedRealEstatePartnershipMember2022-01-012022-03-310000922864aiv:AIMCOOPLPMemberus-gaap:LimitedPartnerMember2021-01-012021-03-310000922864aiv:RedevelopmentandDevelopmentMemberaiv:PlannedHomesMemberaiv:RealEstateInvestmentsMemberaiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMember2022-03-310000922864aiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:PartnersCapitalAttributableToPartnershipMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:InterestRateOptionsMember2021-12-310000922864aiv:RedevelopmentandDevelopmentMemberaiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMemberaiv:ResidentialApartmentCommunitiesInRedevelopmentMemberus-gaap:SegmentContinuingOperationsMember2022-03-3100009228642021-07-310000922864aiv:FortLauderdaleJointVentureMember2022-03-310000922864aiv:AIRMember2022-01-012022-03-310000922864aiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2021-01-012021-03-310000922864aiv:AIMCOOPLPMemberus-gaap:LimitedPartnerMember2020-12-310000922864aiv:CommitmentsrelatedtodevelopmentredevelopmentandcapitalimprovementactivitiesMember2022-01-012022-03-310000922864us-gaap:FairValueInputsLevel2Memberaiv:RealEstateTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-3100009228642020-12-310000922864aiv:RealEstatePartnershipMember2022-03-310000922864stpr:CAaiv:PathfinderVillageMemberus-gaap:SubsequentEventMember2022-05-032022-05-030000922864aiv:CommonNoncontrollingInterestsInAimcoOperatingPartnershipMember2021-03-310000922864aiv:RedevelopmentandDevelopmentMemberus-gaap:OperatingSegmentsMember2021-12-310000922864aiv:FortLauderdaleJointVentureMember2022-02-280000922864us-gaap:CarryingReportedAmountFairValueDisclosureMemberaiv:NonRecoursePropertyDebtMember2021-12-310000922864aiv:RedevelopmentandDevelopmentMemberaiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMemberaiv:PlannedApartmentHomesMember2022-03-3100009228642022-01-012022-03-310000922864aiv:AccessoryDwellingUnitsMemberus-gaap:SegmentContinuingOperationsMember2022-03-310000922864us-gaap:AdditionalPaidInCapitalMember2020-12-310000922864aiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMemberaiv:OperatingPortfolioSegmentMemberaiv:PlannedApartmentHomesMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:InterestRateOptionsMember2022-03-310000922864aiv:SanDiegoCommunitiesMember2021-12-310000922864aiv:CommonNoncontrollingInterestsInAimcoOperatingPartnershipMember2021-12-310000922864us-gaap:CommonStockMember2022-01-012022-03-310000922864aiv:ConstructionInProgressOrLeasedUpMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:PartnersCapitalAttributableToPartnershipMember2022-01-012022-03-310000922864aiv:RedevelopmentandDevelopmentMemberaiv:RealEstateInvestmentsMemberaiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMemberaiv:PlannedApartmentHomesMember2022-03-310000922864us-gaap:ParentMember2022-01-012022-03-310000922864us-gaap:LandMember2022-01-012022-03-310000922864aiv:AIMCOOPLPMemberaiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2022-01-012022-03-310000922864aiv:FortLauderdaleFloridaJointVenturesMember2022-02-012022-02-280000922864us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000922864us-gaap:FairValueInputsLevel3Memberaiv:RealEstateTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000922864aiv:ApartmentHomesRedevelopmentCompletedMemberus-gaap:SegmentContinuingOperationsMember2022-03-310000922864aiv:AIMCOOPLPMember2021-01-012021-03-310000922864us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-03-310000922864aiv:InterestRateOptionsMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:PartnersCapitalAttributableToPartnershipMember2021-01-012021-03-310000922864aiv:AIMCOOPLPMemberaiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2020-12-310000922864aiv:RealEstateTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000922864us-gaap:CommonStockMember2021-12-310000922864us-gaap:ParentMember2021-12-310000922864us-gaap:AdditionalPaidInCapitalMember2021-12-310000922864aiv:CommonNoncontrollingInterestsInAimcoOperatingPartnershipMember2021-01-012021-03-310000922864aiv:AIMCOOPLPMemberaiv:GeneralPartnerAndSpecialLimitedPartnerMember2022-01-012022-03-310000922864aiv:RealEstateTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000922864aiv:RedevelopmentandDevelopmentMemberaiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMemberaiv:AccessoryDwellingUnitsMember2022-03-310000922864aiv:OtherRealEstateMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000922864us-gaap:OperatingSegmentsMember2021-12-3100009228642022-03-310000922864aiv:AIMCOOPLPMemberaiv:UnconsolidatedRealEstatePartnershipMember2021-01-012021-03-310000922864us-gaap:AdditionalPaidInCapitalMember2022-03-310000922864aiv:RedevelopmentandDevelopmentMember2022-03-310000922864aiv:RedevelopmentandDevelopmentMemberaiv:RealEstateInvestmentsMemberaiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMember2022-03-310000922864us-gaap:CarryingReportedAmountFairValueDisclosureMemberaiv:NonRecoursePropertyDebtMember2022-03-310000922864us-gaap:CommonStockMember2021-01-012021-03-310000922864us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-12-310000922864us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-310000922864aiv:NonRecoursePropertyDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000922864aiv:FortLauderdaleFloridaJointVenturesMember2022-03-310000922864us-gaap:RetainedEarningsMember2022-01-012022-03-310000922864us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000922864us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000922864us-gaap:ParentMember2021-01-012021-03-310000922864aiv:UndevelopedLandParcelsAcquisitionMemberaiv:FortLauderdaleJointVentureMember2021-07-012021-07-310000922864aiv:IQHQMember2022-01-012022-03-310000922864us-gaap:FairValueInputsLevel1Memberaiv:RealEstateTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:PartnersCapitalAttributableToPartnershipMember2020-12-310000922864aiv:AIMCOOPLPMemberaiv:PartnersCapitalAttributableToPartnershipMember2021-03-3100009228642020-01-012020-12-310000922864aiv:AIMCOOPLPMemberaiv:GeneralPartnerAndSpecialLimitedPartnerMember2021-12-310000922864aiv:CommitmentsrelatedtodevelopmentredevelopmentandcapitalimprovementactivitiesMemberaiv:RETVenturesMember2022-01-012022-03-310000922864aiv:UnconsolidatedRealEstatePartnershipMember2022-01-012022-03-310000922864us-gaap:UnconsolidatedPropertiesMemberus-gaap:SegmentContinuingOperationsMember2022-03-310000922864us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000922864aiv:AIMCOOPLPMemberus-gaap:LimitedPartnerMember2021-03-310000922864aiv:FortLauderdaleFloridaJointVenturesMemberaiv:UndevelopedLandParcelsAcquisitionMember2022-02-012022-02-280000922864us-gaap:SegmentContinuingOperationsMemberaiv:PlannedRoomsMember2022-03-310000922864aiv:AIRMember2021-12-310000922864us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000922864us-gaap:ParentMember2020-12-310000922864us-gaap:SegmentContinuingOperationsMemberus-gaap:ConsolidatedPropertiesMember2022-03-310000922864aiv:AIMCOOPLPMember2021-12-310000922864aiv:InterestRateOptionMember2020-12-310000922864us-gaap:LandMember2021-01-012021-03-310000922864us-gaap:FinancialGuaranteeMember2022-03-310000922864us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ConstructionLoanPayableMember2021-12-3100009228642021-12-310000922864aiv:UnconsolidatedRealEstatePartnershipMember2021-01-012021-03-310000922864aiv:RedevelopmentandDevelopmentMember2021-12-310000922864aiv:AIMCOOPLPMemberaiv:GeneralPartnerAndSpecialLimitedPartnerMember2021-01-012021-03-310000922864srt:HotelMemberus-gaap:SegmentContinuingOperationsMember2022-03-310000922864us-gaap:RestructuringChargesMember2021-01-012021-03-310000922864aiv:PlannedHomesMemberus-gaap:SegmentContinuingOperationsMember2022-03-310000922864aiv:ParkmercedInvestmentMember2019-11-262019-11-260000922864us-gaap:RetainedEarningsMember2021-03-310000922864us-gaap:FairValueInputsLevel2Memberaiv:RealEstateTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000922864us-gaap:ConstructionLoanPayableMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000922864aiv:RedevelopmentandDevelopmentMembersrt:HotelMemberaiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMember2022-03-310000922864aiv:RedevelopmentandDevelopmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000922864aiv:AIMCOOPLPMemberus-gaap:LimitedPartnerMember2022-01-012022-03-310000922864aiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2021-12-310000922864aiv:MasterServicesAgreementMemberus-gaap:GeneralAndAdministrativeExpenseMemberaiv:AIRMember2022-01-012022-03-310000922864us-gaap:FairValueMeasurementsRecurringMember2022-03-310000922864aiv:AIRMember2020-12-140000922864us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-310000922864us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100009228642021-01-012021-03-310000922864us-gaap:OperatingSegmentsMemberaiv:OperatingPortfolioSegmentMember2021-12-310000922864us-gaap:SegmentContinuingOperationsMemberaiv:PlannedApartmentHomesMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:GeneralPartnerAndSpecialLimitedPartnerMember2020-12-310000922864aiv:InterestRateOptionMember2021-12-310000922864aiv:RealEstatePartnershipMember2022-01-012022-03-310000922864aiv:AIMCOOPLPMemberaiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2021-12-310000922864us-gaap:ParentMember2022-03-310000922864aiv:FortLauderdaleFloridaJointVenturesMember2022-01-012022-03-310000922864aiv:AIMCOOPLPMemberaiv:UndevelopedLandParcelsAcquisitionMemberaiv:FortLauderdaleJointVentureMember2021-07-012021-07-310000922864us-gaap:FairValueInputsLevel1Memberaiv:RealEstateTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000922864us-gaap:OperatingSegmentsMember2022-03-310000922864aiv:AIMCOOPLPMember2022-01-012022-03-310000922864aiv:NonRecoursePropertyDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310000922864aiv:CommonNoncontrollingInterestsInAimcoOperatingPartnershipMember2022-01-012022-03-310000922864us-gaap:CommonStockMember2021-03-310000922864us-gaap:SegmentContinuingOperationsMember2022-03-310000922864aiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMemberaiv:ResidentialApartmentCommunitiesInRedevelopmentMemberaiv:OperatingPortfolioSegmentMember2021-01-010000922864us-gaap:AccruedLiabilitiesMember2022-03-310000922864aiv:AIMCOOPLPMemberus-gaap:LimitedPartnerMember2022-03-310000922864us-gaap:OperatingSegmentsMemberaiv:OtherMember2021-12-310000922864aiv:InterestRateOptionMember2020-01-012020-12-310000922864aiv:SanDiegoCommunitiesMember2022-03-310000922864us-gaap:FairValueInputsLevel3Memberaiv:RealEstateTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000922864us-gaap:AdditionalPaidInCapitalMember2021-03-310000922864aiv:AIMCOOPLPMemberaiv:PartnersCapitalAttributableToPartnershipMember2021-12-310000922864aiv:AIMCOOPLPMember2022-03-310000922864us-gaap:OperatingSegmentsMember2021-01-012021-03-310000922864aiv:InterestRateOptionMemberus-gaap:SubsequentEventMember2022-05-092022-05-090000922864aiv:WhollyAndPartiallyOwnedConsolidatedPropertiesMemberaiv:OperatingPortfolioSegmentMember2022-03-310000922864aiv:ParkmercedInvestmentMember2019-11-260000922864us-gaap:CommonStockMember2020-12-310000922864aiv:FortLauderdaleJointVentureMember2022-02-012022-02-280000922864us-gaap:CommonStockMember2022-03-310000922864aiv:AccountingStandardsUpdate202105Member2022-03-3100009228642021-03-3100009228642021-01-012021-12-310000922864us-gaap:RetainedEarningsMember2021-12-310000922864aiv:AIMCOOPLPMember2020-12-310000922864us-gaap:RetainedEarningsMember2020-12-310000922864aiv:ResidentialApartmentCommunitiesInRedevelopmentMemberus-gaap:SegmentContinuingOperationsMember2022-03-310000922864aiv:CommercialOfficeBuildingMemberus-gaap:SegmentContinuingOperationsMember2022-03-310000922864aiv:EdgewaterJointVentureMember2022-01-012022-03-310000922864aiv:FortLauderdaleJointVentureMember2021-07-310000922864us-gaap:MaterialReconcilingItemsMember2022-01-012022-03-310000922864aiv:AIRMember2021-01-012021-03-310000922864us-gaap:MaterialReconcilingItemsMember2021-01-012021-03-310000922864us-gaap:OperatingSegmentsMemberaiv:OperatingPortfolioSegmentMember2022-03-310000922864us-gaap:CorporateNonSegmentMember2021-01-012021-03-310000922864us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000922864aiv:CommonNoncontrollingInterestsInAimcoOperatingPartnershipMember2022-03-310000922864us-gaap:ConstructionLoanPayableMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310000922864us-gaap:RetainedEarningsMember2022-03-310000922864us-gaap:CorporateNonSegmentMember2022-01-012022-03-310000922864aiv:AIMCOOPLPMemberaiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2021-03-310000922864aiv:RealEstatePartnershipMember2021-12-310000922864aiv:AIMCOOPLPMemberaiv:EdgewaterJointVentureMember2022-03-310000922864us-gaap:OperatingSegmentsMemberaiv:OtherRealEstateMember2021-01-012021-03-310000922864aiv:InterestRateOptionsMember2021-12-310000922864aiv:RedevelopmentandDevelopmentMemberus-gaap:OperatingSegmentsMember2022-03-310000922864us-gaap:OtherAssetsMember2022-03-310000922864aiv:FortLauderdaleFloridaJointVenturesMember2022-02-280000922864us-gaap:RetainedEarningsMember2021-01-012021-03-310000922864aiv:CommonNoncontrollingInterestsInAimcoOperatingPartnershipMember2020-12-310000922864aiv:RedevelopmentandDevelopmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-310000922864aiv:AIMCOOperatingPartnershipMember2022-01-012022-03-310000922864aiv:InterestRateOptionMember2021-01-012021-12-310000922864us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000922864aiv:NinetyNineYearGroundLeaseMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:GeneralPartnerAndSpecialLimitedPartnerMember2021-03-310000922864aiv:AIMCOOPLPMemberaiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2021-01-012021-03-3100009228642022-05-050000922864aiv:PropertyTechnologyFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310000922864aiv:AIRMember2022-03-310000922864aiv:AIMCOOPLPMember2021-03-310000922864aiv:AIMCOOPLPMemberaiv:EdgewaterJointVentureMember2022-01-012022-03-310000922864aiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2020-12-310000922864aiv:ParkmercedInvestmentMember2022-01-012022-03-310000922864us-gaap:FairValueMeasurementsRecurringMember2021-12-310000922864us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ConstructionLoanPayableMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:NoncontrollingInterestsInConsolidatedRealEstatePartnershipsMember2022-03-310000922864aiv:AIMCOOPLPMemberaiv:GeneralPartnerAndSpecialLimitedPartnerMember2022-03-31utr:acrexbrli:pureutr:sqftaiv:Numberaiv:ApartmentHomeaiv:Entityaiv:Contractiso4217:USDxbrli:sharesaiv:Communityaiv:Dwellingaiv:Homexbrli:sharesaiv:Landaiv:Hotelaiv:Propertyaiv:OfficeBuildingaiv:Roomaiv:Segmentiso4217:USD

Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-13232 (Apartment Investment and Management Company)

Commission File Number: 0-56223 (Aimco OP L.P.)

Apartment Investment and Management Company

Aimco OP L.P.

(Exact name of registrant as specified in its charter)

 

Maryland (Apartment Investment and Management Company)

 

84-1259577

Delaware (Aimco OP L.P.)

 

85-2460835

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

4582 South Ulster Street, Suite 1450

 

 

Denver, Colorado

 

80237

(Address of principal executive offices)

 

(Zip Code)

 

(303) 224-7900

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address, and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

Class A Common Stock (Apartment Investment and Management Company)

 

AIV

 

New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act:

 

None (Apartment Investment and Management Company)

Partnership Common Units (Aimco OP L.P.)

(title of each class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Apartment Investment and Management Company: Yes  ☒ No ☐

 

Aimco OP L.P.: Yes  ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 

Apartment Investment and Management Company: Yes  ☒ No ☐

 

Aimco OP L.P.: Yes  ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Apartment Investment and Management Company:

 

Large accelerated filer

 

 

Accelerated filer

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

Emerging growth company

 

Aimco OP L.P.:

 

Large accelerated filer

 

 

Accelerated filer

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

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.

 

Apartment Investment and Management Company:

 

Aimco OP L.P.:

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Apartment Investment and Management Company: Yes     No ☒

 

Aimco OP L.P.: Yes     No ☒

The number of shares of Apartment Investment and Management Company Class A Common Stock outstanding as of May 5, 2022: 152,683,298

 

 

 


Table of Contents

 

EXPLANATORY NOTE

 

Apartment Investment and Management Company (“Aimco” or “the Company”), a Maryland corporation, is a self-administered and self-managed real estate investment trust, or REIT. On December 15, 2020, Aimco completed the separation of its business into two, separate and distinct, publicly traded companies, Aimco and Apartment Income REIT Corp. (“AIR”). The separation was effected by way of a pro rata distribution, in which stockholders of Aimco received one share of Class A common stock of AIR for every one share of Class A common stock of Aimco held as of the close of business on December 5, 2020. Apartment Income REIT, L.P. (“AIR Operating Partnership”), formerly known as “Aimco Properties, L.P.” until July 7, 2021, also completed a pro rata distribution of all of the outstanding common limited partnership units of Aimco OP L.P. (“Aimco Operating Partnership” and such units, “OP Units”) to holders of AIR Operating Partnership common limited partnership units and AIR Operating Partnership Class I High Performance partnership units as of the close of business on December 5, 2020. The transactions described in this paragraph are collectively referred to as the “Separation” and are governed by the terms of the Separation and Distribution Agreement (the “Separation Agreement”).

Aimco, through a wholly owned subsidiary, is the general partner and directly is the special limited partner of Aimco Operating Partnership. As of March 31, 2022, Aimco owned 92.6% of the legal interest in the common partnership units of Aimco Operating Partnership and 95.0% of the economic interest in Aimco Operating Partnership. The remaining 7.4% legal interest is owned by limited partners. As the sole general partner of Aimco Operating Partnership, Aimco has exclusive control of Aimco Operating Partnership’s day-to-day management.

Aimco Operating Partnership holds all of Aimco’s assets and manages the daily operations of Aimco’s business. Pursuant to Aimco Operating Partnership agreement, Aimco is required to contribute to Aimco Operating Partnership all proceeds from the offerings of its securities. In exchange for the contribution of such proceeds, Aimco receives additional interests in Aimco Operating Partnership with similar terms (e.g., if Aimco contributes proceeds of a stock offering, Aimco receives partnership units with terms substantially similar to the stock issued by Aimco).

This filing combines the quarterly reports on Form 10-Q for the quarterly period ended March 31, 2022, of Aimco and Aimco Operating Partnership. Where it is important to distinguish between the two entities, we refer to them specifically. Otherwise, references to “we,” “us,” or “our” mean, collectively, Aimco, Aimco Operating Partnership, and their consolidated entities.

We believe combining the periodic reports of Aimco and Aimco Operating Partnership into this single report provides the following benefits:

We present our business as a whole, in the same manner our management views and operates the business;
We eliminate duplicative disclosure and provide a more streamlined and readable presentation because a substantial portion of the disclosures apply to both Aimco and Aimco Operating Partnership; and
We save time and cost through the preparation of a single combined report rather than two separate reports.

We operate Aimco and Aimco Operating Partnership as one enterprise; the management of Aimco directs the management and operations of Aimco Operating Partnership; and Aimco OP GP, LLC, Aimco Operating Partnership’s general partner, is managed by Aimco.

We believe it is important to understand the few differences between Aimco and Aimco Operating Partnership in the context of how Aimco and Aimco Operating Partnership operate as a consolidated company. Aimco has no assets or liabilities other than its investment in Aimco Operating Partnership. Also, Aimco is a corporation that issues publicly traded equity from time to time, whereas Aimco Operating Partnership is a partnership that has no publicly traded equity. Except for the net proceeds from stock offerings by Aimco, which are contributed to Aimco Operating Partnership in exchange for additional limited partnership interests (of a similar type and in an amount equal to the shares of stock sold in the offering), Aimco Operating Partnership generates all remaining capital required by its business. These sources include Aimco Operating Partnership’s working capital, net cash provided by operating activities, borrowings under its revolving credit facility, the issuance of debt and equity securities, including additional partnership units, and proceeds received from the sale of real estate.

Equity, partners’ capital, and noncontrolling interests are the main areas of difference between the condensed consolidated financial statements of Aimco and those of Aimco Operating Partnership. Interests in Aimco Operating Partnership held by entities other than Aimco, which we refer to as OP Units, are classified within partners’ capital in Aimco Operating Partnership’s

1


Table of Contents

 

condensed consolidated financial statements and as noncontrolling interests in Aimco’s condensed consolidated financial statements.

To help investors understand the differences between Aimco and Aimco Operating Partnership, this report provides: separate condensed consolidated financial statements for Aimco and Aimco Operating Partnership; a single set of condensed consolidated notes to such financial statements that includes separate discussions of each entity’s stockholders’ equity or partners’ capital, and earnings per share or earnings per unit, as applicable; and a combined Management’s Discussion and Analysis of Financial Condition and Results of Operations section that includes discrete information related to each entity, where appropriate.

This report also includes separate Part I, Item 4. Controls and Procedures sections and separate Exhibits 31 and 32 certifications for Aimco and Aimco Operating Partnership in order to establish that the requisite certifications have been made and that Aimco and Aimco Operating Partnership are both compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and 18 U.S.C. §1350.

 

2


Table of Contents

 

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

AIMCO OP L.P.

 

TABLE OF CONTENTS

 

FORM 10-Q

 

 

Page

 

PART I. FINANCIAL INFORMATION

 

ITEM 1.

FINANCIAL STATEMENTS

 

 

Apartment Investment and Management Company:

 

 

Condensed Consolidated Balance Sheets (Unaudited)

4

 

Condensed Consolidated Statements of Operations (Unaudited)

5

 

Condensed Consolidated Statements of Equity (Unaudited)

6

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

7

 

Aimco OP L.P.:

 

 

Condensed Consolidated Balance Sheets (Unaudited)

8

 

Condensed Consolidated Statements of Operations (Unaudited)

9

 

Condensed Consolidated Statements of Partners’ Capital (Unaudited)

10

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

11

 

Notes to the Condensed Consolidated Financial Statements of Apartment Investment and Management Company and Aimco OP L.P. (Unaudited)

12

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

25

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

36

ITEM 4.

CONTROLS AND PROCEDURES

36

 

PART II. OTHER INFORMATION

 

ITEM 1A.

RISK FACTORS

38

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

38

ITEM 6.

EXHIBITS

39

Signatures

 

40

 

3


Table of Contents

 

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

 

March 31, 2022

 

 

December 31, 2021

 

ASSETS

 

 

 

 

 

 

Buildings and improvements

 

$

1,323,647

 

 

$

1,257,214

 

Land

 

 

574,434

 

 

 

534,285

 

Total real estate

 

 

1,898,081

 

 

 

1,791,499

 

Accumulated depreciation

 

 

(576,243

)

 

 

(561,115

)

Net real estate

 

 

1,321,838

 

 

 

1,230,384

 

Cash and cash equivalents

 

 

109,011

 

 

 

233,374

 

Restricted cash

 

 

68,612

 

 

 

11,208

 

Mezzanine investment

 

 

346,034

 

 

 

337,797

 

Interest rate options

 

 

44,414

 

 

 

25,657

 

Right-of-use lease assets

 

 

522,874

 

 

 

429,768

 

Other assets, net

 

 

181,061

 

 

 

165,913

 

Total assets

 

$

2,593,844

 

 

$

2,434,101

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Non-recourse property debt, net

 

$

512,301

 

 

$

483,137

 

Construction loans, net

 

 

180,562

 

 

 

163,570

 

Notes payable to AIR

 

 

534,127

 

 

 

534,127

 

Total indebtedness

 

 

1,226,990

 

 

 

1,180,834

 

Deferred tax liabilities

 

 

123,641

 

 

 

124,747

 

Lease liabilities

 

 

509,235

 

 

 

435,093

 

Accrued liabilities and other

 

 

114,761

 

 

 

97,400

 

Total liabilities

 

 

1,974,627

 

 

 

1,838,074

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests in consolidated real estate partnerships

 

 

37,232

 

 

 

33,794

 

Commitments and contingencies (Note 4)

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Common Stock, $0.01 par value, 510,587,500 shares authorized at both March 31, 2022 and December 31, 2021, and 149,689,847 and 149,818,021 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively

 

 

1,497

 

 

 

1,498

 

Additional paid-in capital

 

 

523,455

 

 

 

521,842

 

Accumulated deficit

 

 

(14,571

)

 

 

(22,775

)

Total Aimco equity

 

 

510,381

 

 

 

500,565

 

Noncontrolling interests in consolidated real estate partnerships

 

 

44,629

 

 

 

35,213

 

Common noncontrolling interests in Aimco Operating Partnership

 

 

26,975

 

 

 

26,455

 

Total equity

 

 

581,985

 

 

 

562,233

 

Total liabilities and equity

 

$

2,593,844

 

 

$

2,434,101

 

 

See notes to condensed consolidated financial statements.

4

 


Table of Contents

 

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

REVENUES

 

 

 

 

 

 

Rental and other property revenues

 

$

49,994

 

 

$

39,804

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

Property operating expenses

 

 

19,221

 

 

 

16,942

 

Depreciation and amortization

 

 

23,118

 

 

 

20,717

 

General and administrative expenses

 

 

9,472

 

 

 

6,311

 

Total operating expenses

 

 

51,811

 

 

 

43,970

 

 

 

 

 

 

 

 

Interest expense

 

 

(14,601

)

 

 

(12,677

)

Mezzanine investment income, net

 

 

8,237

 

 

 

7,467

 

Unrealized gains on interest rate options

 

 

18,778

 

 

 

25,347

 

Other (expense) income, net

 

 

(4,541

)

 

 

363

 

Income before income tax benefit

 

 

6,056

 

 

 

16,334

 

Income tax benefit

 

 

4,056

 

 

 

5,100

 

Net income

 

 

10,112

 

 

 

21,434

 

Net (income) loss attributable to redeemable noncontrolling
     interests in consolidated real estate partnerships

 

 

(1,470

)

 

 

152

 

Net loss (income) attributable to noncontrolling interests
     in consolidated real estate partnerships

 

 

2

 

 

 

(291

)

Net income attributable to common noncontrolling
     interests in Aimco Operating Partnership

 

 

(435

)

 

 

(1,081

)

   Net income attributable to Aimco

 

$

8,209

 

 

$

20,214

 

 

 

 

 

 

 

 

Net income attributable to Aimco per common share – basic (Note 6)

 

$

0.05

 

 

$

0.14

 

Net income attributable to Aimco per common share – diluted (Note 6)

 

$

0.05

 

 

$

0.14

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

 

149,790

 

 

 

148,914

 

Weighted average common shares outstanding – diluted

 

 

150,348

 

 

 

149,046

 

 

See notes to condensed consolidated financial statements.

5

 


Table of Contents

 

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended March 31, 2022 and 2021

(In thousands)

(Unaudited)

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling
Interests in

 

 

Common
Noncontrolling
Interests in

 

 

 

 

 

 

Shares
Issued

 

 

Amount

 

 

Additional
Paid-
in Capital

 

 

Accumulated Deficit

 

 

Total Aimco
Equity

 

 

Consolidated
Real Estate
Partnerships

 

 

Aimco
Operating
Partnership

 

 

Total
Equity

 

Balances at December 31, 2020

 

 

149,036

 

 

$

1,490

 

 

$

515,127

 

 

$

(16,839

)

 

$

499,778

 

 

$

31,877

 

 

$

27,436

 

 

$

559,091

 

Net income attributable to Aimco

 

 

 

 

 

 

 

 

 

 

 

20,214

 

 

 

20,214

 

 

 

 

 

 

 

 

 

20,214

 

Net income attributable to noncontrolling interests in consolidated real estate partnerships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

291

 

 

 

 

 

 

291

 

Net income attributable to common noncontrolling interests in Aimco Operating Partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,081

 

 

 

1,081

 

Redemption of OP Units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36

)

 

 

(36

)

Share-based compensation expense

 

 

 

 

 

 

 

 

171

 

 

 

 

 

 

171

 

 

 

 

 

 

58

 

 

 

229

 

Distribution to noncontrolling interests in consolidated real estate partnerships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(287

)

 

 

 

 

 

(287

)

Other Common Stock issuances

 

 

232

 

 

 

2

 

 

 

1,069

 

 

 

 

 

 

1,071

 

 

 

 

 

 

 

 

 

1,071

 

Other, net

 

 

(60

)

 

 

(1

)

 

 

(316

)

 

 

 

 

 

(317

)

 

 

3

 

 

 

12

 

 

 

(302

)

Balances at March 31, 2021

 

 

149,208

 

 

 

1,491

 

 

 

516,051

 

 

 

3,375

 

 

 

520,917

 

 

 

31,884

 

 

 

28,551

 

 

 

581,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2021

 

 

149,818

 

 

$

1,498

 

 

$

521,842

 

 

$

(22,775

)

 

$

500,565

 

 

$

35,213

 

 

$

26,455

 

 

$

562,233

 

Net income attributable to Aimco

 

 

 

 

 

 

 

 

 

 

 

8,209

 

 

 

8,209

 

 

 

 

 

 

 

 

 

8,209

 

Net loss attributable to noncontrolling interests in consolidated real estate partnerships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

Net income attributable to common noncontrolling interests in Aimco Operating Partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

435

 

 

 

435

 

Redemption of OP Units

 

 

23

 

 

 

 

 

 

954

 

 

 

 

 

 

954

 

 

 

 

 

 

(1,087

)

 

 

(133

)

Share-based compensation expense

 

 

 

 

 

 

 

 

1,363

 

 

 

 

 

 

1,363

 

 

 

 

 

 

1,066

 

 

 

2,429

 

Distribution to noncontrolling interests in consolidated real estate partnerships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(295

)

 

 

 

 

 

(295

)

Contributions from noncontrolling interests in consolidated real estate partnerships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,718

 

 

 

 

 

 

9,718

 

Common stock repurchased

 

 

(202

)

 

 

(2

)

 

 

(1,315

)

 

 

 

 

 

(1,317

)

 

 

 

 

 

 

 

 

(1,317

)

Other Common Stock issuances

 

 

106

 

 

 

1

 

 

 

851

 

 

 

 

 

 

852

 

 

 

 

 

 

 

 

 

852

 

Redemption of redeemable noncontrolling interests in consolidated real estate partnerships

 

 

 

 

 

 

 

 

(183

)

 

 

 

 

 

(183

)

 

 

 

 

 

 

 

 

(183

)

Other, net

 

 

(55

)

 

 

 

 

 

(57

)

 

 

(5

)

 

 

(62

)

 

 

(5

)

 

 

106

 

 

 

39

 

Balances at March 31, 2022

 

 

149,690

 

 

$

1,497

 

 

$

523,455

 

 

$

(14,571

)

 

$

510,381

 

 

$

44,629

 

 

$

26,975

 

 

$

581,985

 

 

See notes to condensed consolidated financial statements.

6

 


Table of Contents

 

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net income

$

10,112

 

 

$

21,434

 

Adjustments to reconcile net income to net cash provided by
   operating activities:

 

 

 

 

 

   Depreciation and amortization

 

23,118

 

 

 

20,717

 

Income from unconsolidated real estate partnerships

 

(256

)

 

 

(255

)

Unrealized gains on interest rate options

 

(18,778

)

 

 

(25,347

)

   Income tax benefit

 

(4,056

)

 

 

(5,100

)

   Amortization of debt issuance costs and other

 

814

 

 

 

238

 

   Mezzanine investment, net

 

(8,237

)

 

 

(7,467

)

Share based compensation

 

2,667

 

 

 

704

 

Changes in operating assets and operating liabilities:

 

 

 

 

 

   Other assets

 

6,752

 

 

 

(19,231

)

   Accrued liabilities and other

 

(5,625

)

 

 

16,631

 

      Total adjustments

 

(3,601

)

 

 

(19,110

)

   Net cash provided by operating activities

 

6,511

 

 

 

2,324

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

Purchases of real estate

 

(47,492

)

 

 

(6,230

)

Capital expenditures (1)

 

(49,656

)

 

 

(31,658

)

Investment in IQHQ

 

(14,227

)

 

 

 

Other investing activities

 

(73

)

 

 

(49

)

   Net cash used in investing activities

 

(111,448

)

 

 

(37,937

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from non-recourse property debt

 

40,000

 

 

 

 

Proceeds from construction loans

 

15,625

 

 

 

 

Principal repayments on non-recourse property debt

 

(2,101

)

 

 

(18,174

)

Purchase of interest rate options

 

 

 

 

(5,590

)

Payments on financing leases

 

(24,516

)

 

 

(3,699

)

Common stock repurchased

 

(1,317

)

 

 

 

Contributions from noncontrolling interests in consolidated
     real estate partnerships

 

9,718

 

 

 

 

Contributions from redeemable noncontrolling interests in consolidated
     real estate partnerships

 

6,879

 

 

 

 

Redemption of redeemable noncontrolling interests in consolidated
     real estate partnerships

 

(5,094

)

 

 

 

Other financing activities

 

(1,216

)

 

 

(354

)

   Net cash provided by (used in) financing activities

 

37,978

 

 

 

(27,817

)

NET DECREASE IN CASH, CASH EQUIVALENTS,
   AND RESTRICTED CASH

 

(66,959

)

 

 

(63,430