What changed in this filing

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Item 1. Financial Statements

2023-08-07 compared with 2023-05-04 · 375 added, 221 removed, 751 unchanged (44% of the section changed)

3 unchanged sentences

(In thousands, except share data)

March 31, 2023

June 30, 2023

December 31, 2022

17 unchanged sentences

Lease liabilities - finance leases

Mezzanine investment - participation sold

Accrued liabilities and other

2 unchanged sentences

Commitments and contingencies (Note 3)

Equity ( 510,587,500 shares authorized at both March 31, 2023 and December 31, 2022):

Common Stock, $ 0.01 par value, 144,718,453 and 146,524,941 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

Equity ( 510,587,500 shares authorized at both June 30, 2023 and December 31, 2022):

Common Stock, $ 0.01 par value, 143,733,654 and 146,524,941 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively

Additional paid-in capital

8 unchanged sentences

(In thousands, except per share data)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Rental and other property revenues

9 unchanged sentences

Realized and unrealized gains (losses) on equity investments

Gain on dispositions of real estate

Lease modification income

Income from unconsolidated real estate partnerships

21 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended March 31, 2023 and 2022

For the Three Months Ended June 30, 2023 and 2022

(In thousands, except per share data)

Noncontrolling

Retained Earnings (Accumulated Deficit)

Noncontrolling Interests in Consolidated

Common Noncontrolling Interests in Aimco

Balances at March 31, 2022

Net income (loss)

Redemption of OP Units

Share-based compensation expense

Distributions to noncontrolling interests in consolidated real estate partnerships

Purchase of noncontrolling interests in consolidated real estate partnerships

Common stock repurchased

Balances at June 30, 2022

Balances at March 31, 2023

Net income (loss)

Redemption of OP Units

Share-based compensation expense

Contributions from noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Common stock repurchased

Balances at June 30, 2023

See notes to condensed consolidated financial statements.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Six Months Ended June 30, 2023 and 2022

(In thousands, except per share data)

Noncontrolling

Retained Earnings (Accumulated Deficit)

Balances at December 31, 2021

2 unchanged sentences

Share-based compensation expense

Contributions from noncontrolling interests

Distributions to noncontrolling interests

Redemption of redeemable noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Contributions from noncontrolling interests in consolidated real estate partnerships

Purchase of noncontrolling interests in consolidated real estate partnerships

Common stock repurchased

Other common stock issuances

Balances at March 31, 2022

Redemption of redeemable noncontrolling interests in consolidated real estate partnerships

Balances at June 30, 2022

Balances at December 31, 2022

2 unchanged sentences

Share-based compensation expense

Contributions from noncontrolling interests

Distributions to noncontrolling interests

Contributions from noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Common stock repurchased

Other common stock issuances

Balances at March 31, 2023

Balances at June 30, 2023

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Adjustments to reconcile net income (loss) to net cash provided by

operating activities:

Depreciation and amortization

2 unchanged sentences

Realized and unrealized (gains) losses on equity investments

Income from unconsolidated real estate partnerships

Income tax expense (benefit)

Amortization of debt issuance costs and other

Share-based compensation

Loss on extinguishment of debt, net

Lease modification income

Gain on dispositions of real estate

Income from unconsolidated real estate partnerships

Amortization of debt issuance costs and other

Changes in operating assets and operating liabilities:

Other assets, net

Net cash received from lease incentive

Accrued liabilities and other

4 unchanged sentences

Capital expenditures (1)

Proceeds from disposition of real estate

Investment in IQHQ

Investment in unconsolidated real estate partnerships

Distributions received from unconsolidated real estate partnerships

Other investing activities

3 unchanged sentences

Proceeds from construction loans

Proceeds from sale of participation in Mezzanine Investment

Payments of deferred loan costs

Principal repayments on non-recourse property debt

Principal repayments on Notes Payable to AIR

Proceeds from interest rate option

Payments on finance leases

Payments of prepayment premiums

Common stock repurchased

Redemption of noncontrolling interest in real estate partnership

Distributions to redeemable noncontrolling interests

6 unchanged sentences

Net cash provided by (used in) financing activities

NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

(1) Accrued capital expenditures were $ 43.8 million and $ 40.4 million as of March 31, 2023 and 2022, respectively.

NET DECREASE IN CASH, CASH EQUIVALENTS,

AND RESTRICTED CASH

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT

BEGINNING OF PERIOD

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT

END OF PERIOD

(1) Accrued capital expenditures wer e $ 62.8 million and $ 29.1 m illion as of June 30, 2023 and 2022, respectively.

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

March 31, 2023

June 30, 2023

December 31, 2022

17 unchanged sentences

Lease liabilities - finance leases

Mezzanine investment - participation sold

Accrued liabilities and other

14 unchanged sentences

(In thousands, except per unit data)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Rental and other property revenues

9 unchanged sentences

Realized and unrealized gains (losses) on equity investments

Gain on dispositions of real estate

Lease modification income

Income from unconsolidated real estate partnerships

19 unchanged sentences

CONDENSED CONSOLIDATED S TATEMENTS OF PARTNERS’

For the Three Months Ended March 31, 2023 and 2022

For the Three Months Ended June 30, 2023 and 2022

(In thousands)

8 unchanged sentences

Partners’

Balances at March 31, 2022

Net income (loss)

Redemption of OP Units

Share-based compensation expense

Distributions to noncontrolling interests in consolidated real estate partnerships

Purchase of noncontrolling interests in consolidated real estate partnerships

Repurchases of OP Units held by Aimco

Balances at June 30, 2022

Balances at March 31, 2023

Net income (loss)

Redemption of OP Units

Share-based compensation expense

Contributions from noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Repurchases of OP Units held by Aimco

Balances at June 30, 2023

See notes to condensed consolidated financial statements.

AIMCO OP L.P.

CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’

For the Six Months Ended June 30, 2023 and 2022

(In thousands)

General Partner

Limited Partner

Partners’

Attributable to

Aimco Operating

Noncontrolling

in Consolidated Real

Estate Partnerships

Partners’

Balances at December 31, 2021

2 unchanged sentences

Share-based compensation expense

Contributions from noncontrolling interests

Distributions to noncontrolling interests

Redemption of redeemable noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Contributions from noncontrolling interests in consolidated real estate partnerships

Purchase of noncontrolling interests in consolidated real estate partnerships

Repurchases of OP Units held by Aimco

Other OP Unit issuances

Balances at March 31, 2022

Redemption of redeemable noncontrolling interests in consolidated real estate partnerships

Balances at June 30, 2022

Balances at December 31, 2022

2 unchanged sentences

Share-based compensation expense

Contributions from noncontrolling interests

Distributions to noncontrolling interests

Contributions from noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Repurchases of OP Units held by Aimco

Other OP Unit issuances

Balances at March 31, 2023

Balances at June 30, 2023

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Adjustments to reconcile net income (loss) to net cash provided by

operating activities:

Depreciation and amortization

2 unchanged sentences

Realized and unrealized (gains) losses on equity investments

Income from unconsolidated real estate partnerships

Income tax expense (benefit)

Amortization of debt issuance costs and other

Share-based compensation

Loss on extinguishment of debt, net

Lease modification income

Gain on dispositions of real estate

Income from unconsolidated real estate partnerships

Amortization of debt issuance costs and other

Changes in operating assets and operating liabilities:

Other assets, net

Net cash received from lease incentive

Accrued liabilities and other

4 unchanged sentences

Capital expenditures (1)

Proceeds from disposition of real estate

Investment in IQHQ

Investment in unconsolidated real estate partnerships

Distributions received from unconsolidated real estate partnerships

Other investing activities

3 unchanged sentences

Proceeds from construction loans

Proceeds from sale of participation in Mezzanine Investment

Payments of deferred loan costs

Principal repayments on non-recourse property debt

Principal repayments on Notes Payable to AIR

Proceeds from interest rate option

Payments on finance leases

Payments of prepayment premiums

Common stock repurchased

Redemption of noncontrolling interest in real estate partnership

Distributions to redeemable noncontrolling interests

6 unchanged sentences

Net cash provided by (used in) financing activities

NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

(1) Accrued capital expenditures were $ 43.8 million and $ 40.4 million as of March 31, 2023 and 2022, respectively .

NET DECREASE IN CASH, CASH EQUIVALENTS,

AND RESTRICTED CASH

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT

BEGINNING OF PERIOD

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT

END OF PERIOD

(1) Accrued capital expenditures we re $ 62.8 million and $ 29.1 million as of June 30, 2023 and 2022, respectively .

See notes to condensed consolidated financial statements.

2 unchanged sentences

NOTES TO CONDENSED CONSOLID ATED FINANCIAL STATEMENTS

March 31, 2023

June 30, 2023

Note 1 —

9 unchanged sentences

refer to Aimco, Aimco Operating Partnership, and their consolidated subsidiaries, collectively.

As of March 31, 2023, Aimco owned 92.5 % of the legal interest in the common partnership units of Aimco Operating Partnership and 94.9 % of the economic interest in Aimco Operating Partnership.

As of June 30, 2023, Aimco owned 92.5 % of the legal interest in the common partnership units of Aimco Operating Partnership and 94.9 % of the economic interest in Aimco Operating Partnership.

The remaining 7.5 % legal interest is owned by limited partners.

6 unchanged sentences

one commercial office building that is part of a land assemblage;

three residential apartment communities, with 1,185 planned apartment homes, a single family rental community with 16 planned homes plus eight accessory dwelling units, and one hotel, with 106 rooms, we are actively developing or redeveloping;

one hotel, with 106 rooms;

three residential apartment communities, with 1,185 apartment homes, of which 276 have been completed and an additional 909 are planned, and a single family rental community with 16 planned homes plus eight accessory dwelling units, which we are actively developing or redeveloping;

land parcels held for development.

1 unchanged sentence

In addition, we hold other alternative investments, including our Mezzanine Investment (see Note 2 for further information );

our IQHQ investment;

our investment in IQHQ, Inc.

and our investment in real estate technology funds.

6 unchanged sentences

In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation have been included.

Operating results for the three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

Operating results for the three and six months ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

The Condensed Consolidated Balance Sheets of Aimco and Aimco Operating Partnership as of December 31, 2022 have been derived from their respective audited financial statements at that date, but do not include all of the information and disclosures required by GAAP for complete financial statements.

14 unchanged sentences

Aimco Operating Partnership’s income or loss is allocated to the holders of OP Units, other than Aimco, based on the weighted-average number of OP Units (including Aimco) outstanding during the period.

For the periods ended March 31, 2023 and 2022, the holders of OP Units had a weighted-average economic ownership interest in Aimco Operating Partnership of approximately 5.1 % , and 5.0 %, respectively.

For the periods ended June 30, 2023 and 2022 , the holders of OP Units had a weighted-average economic ownership interest in Aimco Operating Partnership of approximately 5.1 % , and 5.0 %, respectively.

Substantially all of the assets and liabilities of Aimco are held by Ai mco Operating Partnership.

2 unchanged sentences

If a consolidated real estate partnership includes redemption rights that are not within our control, the noncontrolling interest is included as temporary equity.

Redeemable noncontrolling interests in consolidated real estate partnerships as of March 31, 2023, consists of the following:

(i) a $ 102.0 million preferred equity interest in an entity that owns a portfolio of operating apartment communities and (ii) equity interests in two separate consolidated joint ventures (in which we hold preferred equity interests in one and common equity interests in the other) that are actively developing residential apartment communities.

Redeemable noncontrolling interests in consolidated real estate partnerships as of June 30, 2023, consists of the following:

(i) a $ 102.0 million preferred equity interest in an entity that owns a portfolio of operating apartment communities and (ii) equity interests in two separate consolidated joint ventures that are actively developing residential apartment communities.

Capital contributions, distributions, and net income attributable to redeemable noncontrolling interests in consolidated real estate partnerships are determined in accordance with the relevant partnership agreements.

These interests are presented as Redeemable noncontrolling interests in consolidated real estate partnerships in our Condensed Consolidated Balance Sheet as of March 31, 2023.

The following table shows changes in our redeemable noncontrolling interests in consolidated real estate partnerships from December 31, 2022 to March 31, 2023 (in thousands):

These interests are presented as Redeemable noncontrolling interests in consolidated real estate partnerships in our Condensed Consolidated Balance Sheet as of June 30, 2023.

The following table shows changes in our redeemable noncontrolling interests in consolidated real estate partnerships from December 31, 2022 to June 30, 2023 (in thousands):

Balance at December 31, 2022

1 unchanged sentence

Distributions

Balance at March 31, 2023

Balance at June 30, 2023

Mezzanine Investment

16 unchanged sentences

The income recognized primarily represented the interest accrued under the terms of the underlying Mezzanine Investment.

In February 2023, we entered into an agreement to sell our Mezzanine Investment for $ 167.5 million.

The initial $ 5.0 million deposit received from the purchaser became nonrefundable in April 2023 when various conditions, including transfer consents, were cleared.

The sale is expected to close during the three months ended June 30, 2023.

In June 2023, we closed on the sale of a 20 % non-controlling participation in the Mezzanine Investment for $ 33.5 million.

Pursuant to the terms of the agreement, the purchaser has the option to acquire the remaining 80 % for an additional $ 134 million plus interest accruing at no less than 19 % annually through May 2024 when the option expires.

The purchaser pre-paid $ 4 million of interest at the time of closing.

So long as the purchaser's option remains unexercised, Aimco receives a first priority return from any payments made to service or pay down the Mezzanine Investment equal to $ 134 million plus no less than a 19 % annualized return as well as 80 % of any residual payments after the purchaser receives a 10 % annualized retu rn on its subordinate investment.

Additionally, Aimco is responsible for the servicing and administration of the Mezzanine Investment.

Because Aimco receives first priority and a higher annualized return than the purchaser, the sale and transfer of the financial interest does not qualify for sale accounting in accordance with GAAP.

Therefore, the portion of the Mezzanine Investment that was sold, which has a carrying amount of $ 31.5 million, remains in Mezzanine investment in our Condensed Consolidated Balance Sheet .

We have also recorded the cash received from the purchaser as a liability, which is included in Mezzanine investment - participation sold in our Condensed Consolidated Balance Sheet .

Transaction costs have been deferred and presented as a direct reduction from the related liability in Mezzanine investment - participation sold in our Condensed Consolidated Balance Sheet .

The cash flows associated with the Mezzanine investment - participation sold have been included in Cash Flows from Financing Activities in the Condensed Consolidated Statements of Cash Flows.

Income Tax Benefit (Expense)

4 unchanged sentences

Consolidated GAAP income or loss subject to tax consists of pretax income or loss of our taxable entities and gains retained by the REIT.

For the three months ended March 31, 2023, we had a net loss subject to tax of $ 4.9 million, compared to a net loss subject to tax of $ 14.8 million for the same period in 2022.

For the three months ended March 31, 2023, we recognized an income tax benefit of $ 4.2 million, compared to an income tax benefit of $ 4.1 million during the same period in 2022.

T he change is due primarily to the tax effect of depreciation associated with properties owned by, and activities of, our TRS entities, as well as a reduction to the effective state tax rate expected to apply to the reversal of our existing deferred items.

For the three and six months ended June 30, 2023, we had consolidated net losses subject to tax of $ 2.5 million and $ 7.4 million, respectively.

For the three and six months ended June 30, 2022 , we had consolidated net income subject to tax of $ 181.4 million and $ 166.6 million, respectively.

For the three months ended June 30, 2023, we recognized an income tax benefit of $ 0.4 million, compared to income tax expense of $ 46.0 million during the same period in 2022.

The change is due primarily to GAAP income taxes associated with the lease modification income recognized in the second quarter of 2022.

For the six months ended June 30, 2023, we recognized an income tax benefit of $ 4.6 million compared to income tax expense of $ 41.9 million during the same period in 2022 .

The change is primarily due to GAAP income taxes associated with the lease modification income recognized in the second quarter of 2022, as well as a change in the first quarter of 2023 to the effective state tax rate expected to apply to the reversal of deferred taxes.

Use of Estimates

9 unchanged sentences

Other assets were comprised of the following amounts (in thousands):

March 31, 2023

June 30, 2023

December 31, 2022

4 unchanged sentences

Corporate fixed assets

Accounts receivable, net of allowances of $ 850 and $ 1,206 as of March 31, 2023 and December 31, 2022, respectively

Accounts receivable, net of allowances of $ 346 and $ 1,206 as of June 30, 2023 and December 31, 2022, respectively

Deferred tax assets

Due from third-party property manager

Due from affiliates

Total other assets, net

6 unchanged sentences

Deferral of the Sunset Date of Topic 848" .

The UK Financial Conduct Authority has an intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR of June 30, 2023.

We are currently evaluating the potential impact of the standard and may apply the optional expedients when LIBOR is discontinued, but do not expect it to have a material impact on our consolidated financial statements.

We are transitioning to the Secured Overnight Financing Rate ("SOFR") effective July 1, 2023.

There is not a material impact on our consolidated financial statements as a result of this transition.

Note 3 —

2 unchanged sentences

We expect to fund most of these commitments over the next 24 months.

As of March 31, 2023, we had entered into construction-related contracts for $ 133.2 million, with $ 268.4 million undrawn on our construction loans.

As of March 31, 2023, we have remaining commitments of $ 9.5 million related to our unconsolidated joint ventures, which we expect to fund over the next twelve months.

As of June 30, 2023, we had entered into construction-related contracts for $ 165.5 million, with $ 229.0 million undrawn on our construction loans.

As of June 30, 2023, we have remaining commitments of $ 3.2 million related to our unconsolidated joint ventures, which we expect to fund over the next twelve months.

In addition, we have remaining commitments of $ 2.1 million related to our investments in property technology funds invested in entities that develop technology related to the real estate industry.

12 unchanged sentences

OP Unit equivalents also include unvested long-term incentive partnership units.

We include in the denominator securities with dilutive effect in calculating diluted earnings per share and per unit during these periods.

The Common Stock and OP Unit equivalents were included in the computation of diluted earnings per share and unit for the three and six months ended June 30, 2022, because the effect of their inclusion was dilutive.

However, the Common Stock and OP Unit equivalents were not included in the computation of diluted earnings per share and unit for the three and six months ended June 30, 2023, because the effect of their inclusion would be antidilutive.

As of June 30, 2023, the Common Stock and OP Unit equivalents that could potentially dilute basic earnings per share or unit in future periods totaled 3.7 million and 7.9 million, respectively.

Aimco's time-based restricted stock awards receive non-forfeitable dividends similar to shares of Common Stock and OP Units prior to vesting, and our market-based long-term incentive partnership units receive non-forfeitable distributions based on specified percentages of the distributions paid to OP Units prior to vesting and conversion.

1 unchanged sentence

We include the effect of participating securities in basic and diluted earnings per share and unit computations using the two-class method of allocating distributed and undistributed earnings when the two-class method is more dilutive than the treasury stock method.

Participating securities are not included in the computation of diluted earnings per share and unit for the three months ended March 31, 2023, because the effect of their inclusion would be antidilutive.

However, participating securities were included in the computation of diluted earnings per share and unit for the three months ended March 31, 2022, because the effect of their inclusion was dilutive.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the three months ended March 31, 2023 and 2022, are as follows (in thousands, except per share and per unit data):

Three Months Ended March 31,

Participating securities were included in the computation of diluted earnings per share and unit for the three and six months ended June 30, 2022, because the effect of their inclusion was dilutive.

However, participating securities are not included in the computation of diluted earnings per share and unit for the three and six months ended June 30, 2023, because the effect of their inclusion would be antidilutive.

As of June 30, 2023, participating securities that could potentially dilute basic earnings per share or unit in future periods total ed 2.5 million.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the three and six months ended June 30, 2023 and 2022, are as follows (in thousands, except per share and per unit data):

Three Months Ended June 30,

Six Months Ended June 30,

Earnings per share

Net income (loss) attributable to Aimco

Net income (loss) allocated to Aimco participating securities

Net income allocated to Aimco participating securities

Net income (loss) attributable to Aimco common stockholders

7 unchanged sentences

Net income (loss) attributable to Aimco Operating Partnership

Net income (loss) allocated to Aimco Operating Partnership participating securities

Net income allocated to Aimco Operating Partnership participating securities

Net income (loss) attributable to Aimco Operating Partnership's common unit holders

Denominator - units

Basic weighted-average OP Units outstanding

Basic weighted-average common partnership units outstanding

Diluted partnership unit equivalents outstanding

Diluted weighted-average OP Units outstanding

Diluted weighted-average common partnership units outstanding

Earnings (loss) per unit - basic

4 unchanged sentences

From time to time we purchase interest rate swaps, caps, and other instruments to provide protection against increases in interest rates on our variable rate debt.

As of March 31, 2023, we held interest rate swaps and caps with $ 2.0 billion notional value.

As of June 30, 2023, we held interest rate swaps and caps with $ 473.2 million notional value.

These instruments were acquired for $ 5.1 million, and the fair value of these instruments is noted in the table below.

During the three months ended June 30, 2023, we monetized the $ 1.5 billion notional amount interest rate swaption, purchased in conjunction with the Mezzanine Investment to protect against future interest rate increases, for gross proceeds o f $ 54.2 million.

We invested the $ 53.1 million net proceeds in a three-month treasury instrument, reflected in Cash and cash equivalents in our Condensed Consolidated Balance Sheet, that had a carrying value of $ 53.6 million as of June 30, 2023, which also approximated its fair value.

On a recurring basis, we measure at fair value our interest rate options.

1 unchanged sentence

The fair value adjustment is included in earnings in Realized and unrealized gains (losses) on interest rate options in our Condensed Consolidated Statements of Operations .

Changes in fair value are reflected as a non-cash transaction in adjustments to arrive at cash flows from operations, and any upfront premium is reflected in Purchase of interest rate options in our Condensed Consolidated Statements of Cash Flows .

As of March 31, 2023 and December 31, 2022, we have an investment in stock of $ 2.3 million and $ 1.2 million, respectively, classified within Level 1 of the GAAP fair value hierarchy.

In addition, as of March 31, 2023 and December 31, 2022, we have investments in property technology funds of $ 2.3 million and $ 3.1 million, respectively, in entities that develop technology related to the real estate industry.

Changes in fair value are reflected as a non-cash transaction in adjustments to arrive at cash flows from operations, any upfront premium is reflected in Purchase of interest rate options , and any proceeds are reflected in Proceeds from interest rate options in our Condensed Consolidated Statements of Cash Flows .

As of June 30, 2023 and December 31, 2022, we have an investment in stock of $ 3.4 million and $ 1.2 million, respectively, classified within Level 1 of the GAAP fair value hierarchy.

In addition, as of June 30, 2023 and December 31, 2022, we have investments in property technology funds of $ 2.4 million and $ 3.1 million, respectively, in entities that develop technology related to the real estate industry.

These investments are measured at net asset value (“NAV”) as a practical expedient.

The following table summarizes the fair value for our interest rate options and our investments in real estate technology funds as of March 31, 2023 , and December 31, 2022, (in thousands):

As of March 31, 2023

The following table summarizes the fair value for our interest rate options and our investments in real estate technology funds as of June 30, 2023 , and December 31, 2022 (in thousands):

As of June 30, 2023

As of December 31, 2022

4 unchanged sentences

Fair Value Disclosures

We believe that the carrying value of the consolidated amounts of cash and cash equivalents, restricted cash, accounts receivable and payables approximated their fair value as of March 31, 2023, and December 31, 2022, due to their relatively short-term nature and high probability of realization.

We believe that the carrying value of the consolidated amounts of cash and cash equivalents, restricted cash, accounts receivable and payables approximated their fair value as of June 30, 2023, and December 31, 2022, due to their relatively short-term nature and high probability of realization.

We estimate the fair value of our debt using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, contractual interest rates, remaining periods to maturity, debt service coverage ratios, and loan to value ratios.

We classify the fair value of our non-recourse property debt and construction loans within Level 2 of the GAAP valuation hierarchy based on the significance of certain of the unobservable inputs used to estimate their fair value.

The following table summarizes the carrying value and fair value of our non-recourse property debt, and construction loans as of March 31, 2023, and December 31, 2022, (in thousands):

As of March 31, 2023

The following table summarizes the carrying value and fair value of our non-recourse property debt, and construction loans as of June 30, 2023, and December 31, 2022 (in thousands):

As of June 30, 2023

As of December 31, 2022

20 unchanged sentences

Our maximum exposure to loss because of our involvement with the unconsolidated VIEs is limited to the carrying value of their assets.

The details of our consolidated and unconsolidated VIEs, excluding those of Aimco Operating Partnership, are summarized in the table below as of March 31, 2023, and December 31, 2022, (in thousands, except for VIE count):

As of March 31, 2023

The details of our consolidated and unconsolidated VIEs, excluding those of Aimco Operating Partnership, are summarized in the table below as of June 30, 2023, and December 31, 2022 (in thousands, except for VIE count):

As of June 30, 2023

As of December 31, 2022

3 unchanged sentences

Real estate, net

Cash and cash equivalents

Restricted Cash

Mezzanine investment

Interest rate options

Right-of-use lease assets

5 unchanged sentences

Lease liabilities

Mezzanine investment - participation sold

Note 7 —

3 unchanged sentences

We receive variable payments from our residents and commercial tenants primarily for utility reimbursements and other services.

For the three months ended March 31, 2023 and 2022, our total lease income was comprised of the following amounts for all residential and commercial property leases (in thousands):

Three Months Ended March 31,

For the three and six months ended June 30, 2023 and 2022, our total lease income was comprised of the following amounts for all residential and commercial property leases (in thousands):

Aimco as Lessee

Three Months Ended June 30,

Six Months Ended June 30,

Fixed lease income

1 unchanged sentence

Total lease income

Aimco as Lessee

Finance Lease Arrangements

We are lessee to finance leases for the land underlying the development sites at Upton Place, Strathmore Square, and a 15 -acre plot of land in Marin County, California.

As of March 31, 2023 and December 31, 2022, our finance leases had weighted-average remaining terms of 93.5 years and 94.2 years, respectively, and weighted-average discount rates of 6.1 % and 6.1 %, respectively.

For the three months ended March 31, 2023, amortization related to our finance leases was $ 0.0 million, net of amounts capitalized, compared to $ 3.2 million for the three months ended March 31, 2022.

In addition, we capitalized $ 2.1 million of lease costs associated with active development and redevelopment projects on certain of the underlying property and ground lease assets, compared to $ 2.8 million for the three months ended March 31, 2022.

We are lessee to finance leases for the land underlying the development sites at Upton Place, Strathmore Square, and Oak Shore.

As of June 30, 2023 and December 31, 2022, our finance leases had weighted-average remaining terms of 93.8 years and 94.2 years, respectively, and weighted-average discount rates of 6.1 % at both period ends.

For the three and six months ended June 30, 2023, amortization related to our finance leases was $ 0.0 million for both periods, net of amounts capitalized, compared to $ 3.4 million and $ 6.7 million, respectively, for the three and six months ended June 30, 2022.

For the three and six months ended June 30, 2023, we capitalized $ 2.1 million and $ 4.2 million, respectively, of lease costs associated with active development and redevelopment projects on certain of the underlying property and ground lease assets, compared to $ 1.8 million and $ 4.8 million, respectively, for the three and six months ended June 30, 2022 .

Operating Lease Arrangements

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Substantially all of the payments under our office leases are fixed.

As of March 31, 2023 and December 31, 2022, our operating leases had weighted-average remaining terms of 6.0 years and 6.25 years, respectively, and weighted-average discount rates of 3.5 % , and 3.4 %, re spectively.

As of June 30, 2023 and December 31, 2022, our operating leases had weighted-average remaining terms of 5.6 years and 6.3 years, respectively, and weighted-average discount rates of 3.3 % , and 3.4 %, re spectively.

We record operating lease expense on a straight-line basis over the lease term.

Total operating lease expense for the three months ended March 31, 2023 and 2022 was $ 0.4 million and $ 0.4 million, respectively .

As of March 31, 2023 and December 31, 2022, operating lease right-of-use lease assets of $ 6.4 million and $ 6.7 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets .

As of March 31, 2023 and December 31, 2022, operating lease liabilities of $ 12.5 million and $ 12.8 million, respectively, are included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets .

Total operating lease expense for the three and six months ended June 30, 2023 was $ 0.4 million and $ 0.8 million, respectively, compared to $ 0.2 million and $ 0.3 million, respectively, for the three and six months ended June 30, 2022 .

As of June 30, 2023 and December 31, 2022, operating lease right-of-use lease assets of $ 6.9 million and $ 6.7 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets .

As of June 30, 2023 and December 31, 2022, operating lease liabilities of $ 12.7 million and $ 12.8 million, respectively, are included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets .

For finance and operating leases, when the rate implicit in the lease cannot be determined, we estimate the value of our lease liabilities using discount rates equivalent to the rates we would pay on a secured borrowing with terms similar to the leases.

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We have a sublease arrangement to provide space within our corporate office for fixed rents, which commenced on January 1, 2021 and expires on May 31, 2029 .

For the three months ended March 31, 2023 and 2022, we recognized sublease income of $ 0.4 million and $ 0.4 million, respectively.

For the three and six months ended June 30, 2023, we recognized sublease income of $ 0.4 million and $ 0.7 million, respectively, compared to $ 0.4 million and $ 0.7 million, respectively, for the three and six months ended June 30, 2022.

Annual Future Minimum Lease Payments

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Our Development and Redevelopment segment consists of properties that are under construction or have not achieved stabilization, as well as land held for development.

As of March 31, 2023, our Development and Redevelopment segment consists of 12 properties:

three residential apartment communities with 1,185 planned apartment homes, a single family rental community with 16 planned homes plus eight accessory dwelling units, and one hotel with 106 planned rooms, and 18,000 square feet of event space, which we are actively developing or redeveloping;

and, land parcels held for development.

Our Operating segment includes 21 residential apartment communities with 5,600 apartment homes that have achieved stabilized level of operations as of January 1, 2022 and maintained it throughout the current year and comparable period.

As of June 30, 2023, our Development and Redevelopment segment consists of 12 properties:

three residential apartment communities with 1,185 apartment homes, of which 276 have been completed and an additional 909 are planned, a single family rental community with 16 planned homes plus eight accessory dwelling units, which we are actively developing or redeveloping;

one hotel with 106 rooms and 18,000 square feet of event space completed in April 2023, and land parcels held for development.

Our Operating segment includes 21 residential apartment communities with 5,600 apartment homes that have achieved a stabilized level of operations as of January 1, 2022 and maintained it throughout the current year and comparable period.

We aggregate all our apartment communities that have reached stabilization into our Operating segment.

During the three months ended March 31, 2023 , we reclassified one residential apartment community from the Other segment to the Operating segment because it reached stabilization.

During the first quarter of 2023, we reclassified one residential apartment community from the Other segment to the Operating segment because it reached stabilization.

Prior period segment information has been recast based upon our current segment population, and is consistent with how our chief operating decision maker ("CODM") evaluates the business.

The recast conforms with our reportable segment classification as of March 31, 2023.

The recast conforms with our reportable segment classification as of June 30, 2023.

Our Other segment consists of properties currently owned that are not included in our Development and Redevelopment or Operating segments.

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Our CODM uses proportionate property net operating income to assess the operating performance of our Operating segment.

Proportionate property net operating income is defined as our share of rental and other property revenues, less direct property operating expenses, but

excluding utility reimbursements, for the consolidated communities.

In our Condensed Consolidated Statements of Operations , utility reimbursements are included in Rental and other property revenues , in accordance with GAAP;

Proportionate property net operating income is defined as our share of rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, including utility reimbursements, for the consolidated communities;

excluding the results of four apartment communities with an aggregate 142 apartment homes that we neither manage nor consolidate, our investment in IQHQ and the Mezzanine Investment;

excluding property management costs and casualty gains or losses, reported in consolidated amounts, in our assessment of segment performance.

The following tables present the results of operations of consolidated properties with our segments reported on a proportionate basis for the three months ended March 31, 2023 and 2022, (in thousands):

The following tables present the results of operations of consolidated properties with our segments reported on a proportionate basis for the three months ended June 30, 2023 and 2022 (in thousands):

Development and Redevelopment

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Corporate and Amounts Not Allocated to Segments (2)

Three Months Ended March 31, 2023:

Three Months Ended June 30, 2023

Rental and other property revenues

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Corporate and Amounts Not Allocated to Segments (2)

Three Months Ended March 31, 2022:

Three Months Ended June 30, 2022

Rental and other property revenues

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Income (loss) before income tax

The following tables present the results of operations of consolidated properties with our segments reported on a proportionate basis for the six months ended June 30, 2023 and 2022 (in thousands):

Development and Redevelopment

Proportionate

and Other Adjustments (1)

Corporate and Amounts Not Allocated to Segments (2)

Six Months Ended June 30, 2023

Rental and other property revenues

Property operating expenses

Other operating expenses not allocated

to segments (3)

Total operating expenses

Proportionate property net operating

income (loss)

Other items included in income before

income tax (4)

Income (loss) before income tax

Development and Redevelopment

Proportionate

and Other Adjustments (1)

Corporate and Amounts Not Allocated to Segments (2)

Six Months Ended June 30, 2022

Rental and other property revenues

Property operating expenses

Other operating expenses not allocated

to segments (3)

Total operating expenses

Proportionate property net operating

income (loss)

Other items included in income before

income tax (4)

Income (loss) before income tax

(1) Represents adjustments for noncontrolling interests in consolidated real estate partnerships' share of the results of consolidated communities in our segments, which are included in the related consolidated amounts, but excluded from proportionate property net operating income for our segment evaluation.

Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results.

Also includes the reclassification of utility reimbursements, which are included in Rental and other property revenues in our Condensed Consolidated Statements of Operations , in accordance with GAAP, from revenues to property operating expenses for the purpose of evaluating segment results.

(2) Includes the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any.

Also includes property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure.

(3) Other operating expenses not allocated to segments consist of depreciation and amortization, general and administrative expense, and miscellaneous other expenses.

(4) Other items included in Income before income tax benefit consist primarily of interest expense, mezzanine investment income (loss), net realized and unrealized gains (losses) on interest rate options, and realized and unrealized gains (losses) on equity investments.

Net real estate and non-recourse property debt, net, of our segments as of March 31, 2023 and December 31, 2022, were as follows (in thousands):

(3) Other operating expenses not allocated to segments consist of depreciation and amortization and general and administrative expense.

(4) Other items included in Income before income tax benefit consist primarily of lease modification income, gain on dispositions of real estate, interest expense, mezzanine investment income (loss), net realized and unrealized gains (losses) on interest rate options, and realized and unrealized gains (losses) on equity investments.

Net real estate and non-recourse property debt, net, of our segments as of June 30, 2023 and December 31, 2022, were as follows (in thousands):

Development and Redevelopment

As of March 31, 2023:

As of June 30, 2023:

Buildings and improvements

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Non-recourse property debt and construction loans, net

In addition to the amounts disclosed in the tables above, as of March 31, 2023 the Development and Redevelopment segment right-of-use lease assets and lease liabilities aggregated to $ 110.6 million and $ 116.2 million, respectively, and as of December 31, 2022, aggregated to $ 110.3 million and $ 114.6 million, respectively.

As of March 31, 2023, right-of-use lease assets and lease liabilities primarily relate to our investments in Upton Place, Strathmore, and Oak Shore.

In addition to the amounts disclosed in the tables above, as of June 30, 2023 the Development and Redevelopment segment right-of-use lease assets and lease liabilities aggregated to $ 109.6 million and $ 116.6 million, respectively, and as of December 31, 2022, aggregated to $ 110.3 million and $ 114.6 million, respectively.

As of June 30, 2023 and December 31, 2022, right-of-use lease assets and lease liabilities primarily relate to our investments in Upton Place, Strathmore, and Oak Shore.

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

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Certain information included in this Quarterly Report on Form 10-Q contains or may contain information that is forward-looking within the meaning of the federal securities laws, including, without limitation, statements regarding:

adverse economic and geopolitical conditions, including as a result of the COVID-19 pandemic, which negatively impact our operations, including on our ability to maintain current or meet projected occupancy, rental rate and property operating results;

the effect of acquisitions, dispositions, developments, and redevelopments;

including our ability to meet budgeted costs and timelines, and achieve budgeted rental rates related to our development and redevelopment investments;

expectations regarding sales of our apartment communities and the use of proceeds thereof;

the availability and cost of corporate debt;

and our ability to comply with debt covenants, including financial coverage ratios.

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.

These forward-looking statements are based on management’s judgment as of this date, which is subject to risks and uncertainties that could cause actual results to differ materially from our expectations, including, but not limited to:

the effects and duration of the COVID-19 pandemic, geopolitical events which may adversely affect the markets in which our securities trade, and other macroeconomic conditions, including, among other things, supply chain challenges, rising interest rates and inflation, all of which heightens the impact of the other risks and factors described herein, and the impact on entities in which we hold a partial interest, including our indirect interest in the partnership that owns Parkmerced Apartments;

real estate and operating risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate 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 and effects of acquisitions, dispositions, developments and redevelopments;

expectations regarding sales of apartment communities and the use of proceeds thereof;

insurance risks, including the cost of insurance, and natural disasters and severe weather such as hurricanes;

supply chain disruptions, particularly with respect to raw materials such as lumber, steel, and concrete;

financing risks, including the availability and cost of financing;

the risk that cash flows from operations may be insufficient to meet required payments of principal and interest;

the risk that earnings may not be sufficient to maintain compliance with debt covenants, including financial coverage ratios;

legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes;

the terms of laws and governmental regulations that affect us and interpretations of those laws and regulations;

possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently owned by us;

and such other risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission (“SEC”).

the risk that the 2023 plans and goals may not be completed, as expected, in a timely manner or at all, the inability to recognize the anticipated benefits of the pipeline investments and projects, changes in general economic conditions, including, increases in interest rates and other force-majeure events and such other risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission (“SEC”).

In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended (the “Code”) and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership.

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Platform, consisting of a cohesive, talented, and tenured team with diverse real estate industry experience combined with a disciplined and proven investment process;

Diversified portfolio, consisting of in-process value-add investments, a deep pipeline, which includes approximately 14 million square feet of potential future development, a national portfolio of stabilized multifamily real estate and select indirect and passive investments;

Capital redeployment plan of prudent recycling of capital, reallocating our equity to higher returning investments.

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In addition, we currently hold select alternative assets, consisting primarily of indirect, real estate related debt and equity investments.

We plan to significantly reduce our allocation to these investments over time.

We have reduced our allocation to these investments and plan to continue to significantly reduce our allocation over time.

We have policies in place that support our stated strategy, guide our investment allocations, and manage risk, including to hold at all times a sizeable portion of our net equity in stabilized cash-flowing assets and to require cash or committed credit necessary for completion of development and redevelopment projects prior to their commencement.

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Core-Plus opportunities offer the opportunity for incremental capital investment while maintaining stabilized cashflow to accelerate income growth and improve asset values.

Managing and, over time, reducing our allocation to alternative investments

Managing and continuing to reduce our allocation to alternative investments, over time

We currently hold select alternative investments, the majority of which originated with Aimco Predecessor and, over time, plan to significantly reduce capital allocated to these investments.

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("IQHQ"), a privately-held life sciences real estate development company, and in property technology funds consisting of entities that develop technology related to the real estate industry.

In June 2023, we made significant progress on our plan to reduce capital allocated to alternative investments through the partial sale of the Mezzanine Investment, as discussed further below.

Maintaining sufficient liquidity and utilizing safe financial leverage

At all times, we will guard our liquidity by maintaining sufficient cash and committed credit.

From time-to-time, we will allocate capital to financial assets designed to mitigate risks elsewhere in the Aimco enterprise.

Existing examples include our option to acquire an interest rate swap designed to protect against repricing risk on our maturing liabilities and the use of interest rate caps to provide protection against increases in interest rates on in-place loans.

We will guard our liquidity at all times by maintaining sufficient cash and committed credit.

From time-to-time, we will allocate capital to financial assets designed to mitigate risks.

Existing examples include our use of interest rate caps to provide protection against increases in interest rates on in-place loans.

We expect to capitalize our activities through a combination of non-recourse property debt, construction loans, third-party equity, and the recycling of Aimco equity, including retained earnings.

We plan to limit the use of recourse leverage, with a strong preference towards non-recourse property-level debt in order to limit risk to the Aimco enterprise.

We plan to limit the use of recourse leverage, with a strong preference towards non-recourse property-level debt to limit risk to the Aimco enterprise.

When warranted, we plan to seek equity capital from joint venture partners to improve our cost of capital, further leverage Aimco equity, reduce exposure to a single investment and, in certain cases, for strategic benefits.

The results from the execution of our business plan during the three months ended March 31, 2023 are further described below.

The results from the execution of our business plan during the three and six months ended June 30, 2023 are further described below.

Financial Results and Recent Highlights

For the three months ended March 31, 2023, net loss attributable to Aimco common stockholders per share, on a fully dilutive basis, was $0.06, compared to net income per share of $0.05 for the same period in 2022, primarily due to a reduction in accrued Mezzanine Investment income recognition and fair value adjustments on our interest rate options.

For the three months ended March 31, 2023, revenue and net operating income from our Stabilized Operating Properties were up 11.4% and 13.1%, respectively, year over year, with average monthly revenue per apartment home of $2,227, up $238 year over year.

For the three and six months ended June 30, 2023, net loss attributable to Aimco common stockholders per share, on a fully dilutive basis, was ($0.02) and ($0.09), respectively, compared to net income per share of $1.57 and $1.62, respectively, for the same periods in 2022 due primarily to the second quarter 2022 recognition of income resulting from the agreement to terminate the leased property agreements with AIR and gains in the same period related to the sale of an apartment community.

For the three months ended June 30, 2023, revenue and net operating income from our Stabilized Operating Properties were up 9.5% and 9.8%, respectively, year over year, with average monthly revenue per apartment home of $2,291, up $230 year over year.

For the six months ended June 30, 2023, revenue and net operating income from our Stabilized Operating Properties were up 10.4% and 11.4%, respectively, year over year, with average monthly revenue per apartment home of $2,259, up $234 year over year.

During the three months ended June 30, 2023, we closed on the partial sale of the Parkmerced mezzanine loan, making significant progress on our planned reduction of capital allocated to alternative investments.

In total, we have monetized $91.5 million of our Parkmerced investments and, subject to closing the remaining investment, may realize additional proceeds of approximately $156 million.

During the three months ended June 30, 2023, we repaid a $60 million floating interest rate land loan when it became prepayable at par reducing our weighted average cost of debt for our developments and land holdings, at the time of payoff, by approximately 90 basis points.

Value Add, Opportunistic & Alternative Investments

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Metro, and Colorado's Front Range.

During the three months ended March 31, 2023, we invested $64.8 million in development and redevelopment activities.

During the three and six months ended June 30, 2023, we invested $81.1 million and $145.9 million, respectively, in development and redevelopment activities.

Updates include:

Construction is now complete at the major redevelopment of The Hamilton, a 276-unit bayfront apartment community in Miami, Florida, and the property was 88% leased or pre-leased as of March 31, 2023, at rates well ahead of underwritten rents.

Construction is progressing on plan at the first phase of Strathmore Square in Bethesda, Maryland, which will contain 220 highly tailored apartment homes when complete in 2025.

Construction and repositioning of The Hamilton, a 276 unit bayfront apartment community in Miami, Florida, is now complete.

Demand for rental housing in Southeast Florida remains robust, especially for unique waterfront properties, and the property was 95% leased or pre-leased as of June 30, 2023, at rates more than 20% ahead of underwritten rents.

Aimco now expects occupancy to stabilize in the third quarter, ahead of prior expectations.

Construction is progressing on plan at the first phase of Strathmore Square in Bethesda, Maryland, which will contain 220 highly tailored apartment homes with initial delivery on track for the second half of 2024.

This suburban infill project is located adjacent to the Grosvenor-Strathmore Metro station and the Strathmore Performing Arts Campus, and is 1.5 miles from The National Institutes of Health main campus.

Funding for the $164.0 million project is fully secured with Aimco having a remaining equity commitment, as of March 31, 2023, of $10.7 million.

Construction remains on schedule and on budget at Upton Place in Northwest Washington, D.C.

We plan to start pre-leasing Upton’s 689 apartment homes during the summer of 2023 in anticipation of initial delivery in the fourth quarter of 2023.

As of March 31, 2023, 80% of the project's 105,000 square feet of retail space has been leased.

Funding for the $164.0 million project is fully secured with Aimco having already funded 100% of its equity commitment.

Construction continues on schedule and on budget at Upton Place in Northwest Washington, D.C.

We plan to start pre-leasing Upton’s 689 apartment homes in July 2023 in anticipation of initial delivery in the fourth quarter of 2023.

As of June 30, 2023, 80% of the project's 105,000 square feet of retail space has been leased and Aimco has received letters of intent from, or is in lease negotiations with, retailers on another 18%.

Construction is ongoing at Oak Shore, in Corte Madera, California, where 16 luxury single family rental homes and eight accessory dwelling units are being developed.

We expect to deliver the first homes in the third quarter with pre-leasing efforts having begun in the first quarter of 2023.

Construction of the Benson Hotel and Faculty Club, a 106-key boutique hotel and event center, with 18,000 square feet of event space, located on the Anschutz Medical Campus in Aurora, Colorado.

In April, the hotel was completed and open to guests.

We expect to deliver the first homes in the third quarter with pre-leasing efforts underway.

Construction of the Benson Hotel and Faculty Club, a 106-key boutique hotel and event center, with 18,000 square feet of event space, located on the Anschutz Medical Campus in Aurora, Colorado is complete and open to guests.

As the only ‘on campus’

accommodations, The Benson is garnering strong interest from the many departments and offices located on the surrounding Anschutz Medical Campus, which includes The University of Colorado Medical School, UC Health Hospital, Children’s Hospital Colorado, The Rocky Mountain VA Medical Center and the burgeoning Fitzsimons Innovation Community.

In the three months ended March 31, 2023, we invested $5.7 million into our future development pipeline projects located in Southeast Florida, the Washington D.C.

In the three months ended June 30, 2023, we invested $4.0 million into our future development pipeline projects located in Southeast Florida, the Washington D.C.

Metro, and Colorado’s Front Range.

Programming, design, documentation and entitlement efforts continue with projected unit counts and rentable square footage on track to meet or exceed initial projections.

We have received Urban Development Review Board approvals related to our 34th Street and Biscayne Boulevard properties in Miami’s Edgewater neighborhood, conditional approvals on our Broward Boulevard sites in Fort Lauderdale, and earlier this month submitted a major amendment to the existing approval for the first phase of development at its site in Fort Lauderdale’s Flagler Village neighborhood.

As part of our capital allocation strategy, we may choose to monetize certain of our pipeline assets prior to vertical construction in an effort to maximize value add and risk adjusted returns.

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Updates for our alternative investments include:

In February 2023, we entered into an agreement to sell our Parkmerced Mezzanine Investment for $167.5 million.

The initial $5.0 million deposit received by the purchaser became nonrefundable in April 2023 when various conditions, including transfer consents, were cleared.

The sale is expected to close during the three months ended June 30, 2023.

Together with the monetization of the $1.5 billion notional swaption, purchased in conjunction with the Mezzanine Investment to protect against future interest rate increases, we expect gross proceeds from these transactions to be approximately $220 million.

In June, Aimco made significant progress on its plan to reduce capital allocated to alternative investments through the partial sale of the Parkmerced mezzanine loan.

Aimco closed a 20% non-controlling position for $33.5 million with the purchaser having the option to acquire the remaining 80% for an additional $134 million plus interest accruing at no less than 19% annually through May 2024.

At the time of closing the purchaser pre-paid $4 million of interest to Aimco and is expected to pay another $7 million prior to year end.

Investment Activity

We are focused on development and redevelopment, primarily funded through construction loans and joint venture equity.

Updates include:

In February 2023, we entered into an option agreement with the Fitzsimons Redevelopment Authority.

If exercised, the option allows for the long-term lease of 4.8 acres of land located on the Anschutz Medical Campus in Aurora, Colorado that can accommodate approximately 850,000 square feet of commercial life science development built out over multiple phases.

The option's annual cost is approximately $0.5 million.

We are focused on growing the business, and delivering strong investment returns, through development and redevelopment activities, funded primarily through third-party capital.

In the three months ended June 30, 2023, no new investments were made.

Operating Property Results

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We also own a commercial office building that is part of an assemblage with an adjacent apartment building.

Highlights for the three months ended March 31, 2023 include:

Revenue for our Operating segment for the three months ended March 31, 2023, was $36.7 million, up 11.4% year over year, resulting from a $238 increase in average monthly revenue per apartment home to $2,227, offset with a 50-basis point decrease in Average Daily Occupancy to 98.0%.

Expenses for our Operating segment for the three months ended March 31, 2023, were $11.2 million, up 7.6% year-over-year.

Net operating income for our Operating segment for the three months ended March 31, 2023 was $25.5 million, up 13.1% year-over-year.

Highlights for the three months ended June 30, 2023 include:

Revenue for our Operating segment for the three months ended June 30, 2023, was $37.0 million, up 9.5% year over year, resulting from a $230 increase in average monthly revenue per apartment home to $2,291, partially offset with a 140-basis point decrease in Average Daily Occupancy to 96.2%.

Expenses for our Operating segment for the three months ended June 30, 2023, were $11.5 million, up 8.8% year-over-year due primarily to higher real estate taxes and insurance.

Net operating income for our Operating segment for the three months ended June 30, 2023 was $25.5 million, up 9.8% year-over-year.

1001 Brickell Bay Drive, a waterfront office building in Miami, Florida, is owned as part of a larger assemblage with substantial development potential.

Following first quarter lease expirations, as of March 31, 2023, the building was 77% occupied.

Following first quarter lease expirations, as of June 30, 2023, the building was 77% occupied.

Balance Sheet and Financing Activity

We are highly focused on maintaining a strong balance sheet, including having at all times ample liquidity.

As of March 31, 2023, we had access to $338.6 million in liquidity, including $166.1 million of cash on hand, $22.5 million of restricted cash, and the capacity to borrow up to $150.0 million on our revolving credit facility.

As of June 30, 2023, we had access to $342.4 million in liquidity, including $165.0 million of cash on hand, $27.4 million of restricted cash, and the capacity to borrow up to $150.0 million on our revolving credit facility.

Refer to the Liquidity and Capital Resources section for additional information regarding our leverage.

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The following discussion and analysis of the results of our operations and financial condition should be read in conjunction with the accompanying condensed consolidated financial statements included in Item 1.

Results of Operations for the three months ended March 31, 2023, compared to the same period in 2022

Net income attributable to Aimco common stockholders decreased by $17.0 million for the three months ended March 31, 2023, compared to the same period in 2022, as described more fully below.

Results of Operations for the three and six months ended June 30, 2023 and 2022

Net income attributable to Aimco common stockholders decreased by $242.7 million and $259.8 million, respectively, for the three and six months ended June 30, 2023, compared to the same period in 2022, as described more fully below.

Property Results

As of March 31, 2023, our Development and Redevelopment segment included 12 properties, five of which were properties that were under construction, while the remaining were land held for development.

As of June 30, 2023, our Development and Redevelopment segment included 12 properties, three of which were properties that were under construction and two of which were recently completed, while the remaining were land held for development.

Our Operating segment included 21 communities with 5,600 apartment homes, and our Other segment included 1001 Brickell Bay Drive, our only office building, and St.

George Villas.

During the three months ended March 31, 2023, we reclassified one residential apartment community from the Other segment to the Operating segment because it reached stabilization.

During the first quarter of 2023, we reclassified one residential apartment community from the Other segment to the Operating segment because it reached stabilization.

Prior period segment information has been recast based upon our current segment population, and is consistent with how our CODM evaluates the business.

The recast conforms with our reportable segment classification as of March 31, 2023.

The recast conforms with our reportable segment classification as of June 30, 2023.

We use proportionate property net operating income to assess the operating performance of our segments.

Proportionate property net operating income is defined as our share of rental and other property revenues, less direct property operating expenses, but

excluding utility reimbursements, for the consolidated communities.

In our Condensed Consolidated Statements of Operations , utility reimbursements are included in Rental and other property revenues , in accordance with GAAP;

excluding the results of four apartment communities with an aggregate 142 apartment homes that we neither manage nor consolidate, our investment in IQHQ and the Mezzanine Investment;

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Proportionate Property Net Operating Income

The results of our segments for the three months ended March 31, 2023 and 2022, as presented below, are based on segment classifications as of March 31, 2023:

Three Months Ended March 31,

The results of our segments for the three months ended June 30, 2023 and 2022, as presented below, are based on segment classifications as of June 30, 2023:

Three Months Ended

(in thousands)

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Development and Redevelopment

For the three months ended March 31, 2023, compared to the same period in 2022:

Development and Redevelopment proportionate property net operating income increased by $0.3 million due to the lease up of units at The Hamilton.

For the three months ended June 30, 2023, compared to the same period in 2022:

Development and Redevelopment proportionate property net operating income increased by $1.3 million due to the lease up of apartment homes at The Hamilton.

Operating proportionate property net operating income increased by $2.3 million, or 9.8%.

The increase was attributable primarily to a $3.2 million, or 9.5% increase in rental and other property revenues due to higher average revenues of $230 per apartment home, offset with a 140-basis point decrease in Average Daily Occupancy to 96.2%.

Other proportionate property net operating income decreased by $0.6 million, or 23.7%, primarily at our commercial office building in Miami, Florida from lower occupancy following lease expirations earlier in 2023.

The results of our segments for the six months ended June 30, 2023 and 2022, as presented below, are based on segment classifications as of June 30, 2023:

Six Months Ended

(in thousands)

Rental and other property revenues, before utility reimbursements:

Development and Redevelopment

Property operating expenses, net of utility reimbursements:

Development and Redevelopment

Proportionate property net operating income:

Development and Redevelopment

For the six months ended June 30, 2023, compared to the same period in 2022:

Development and Redevelopment proportionate property net operating income increased by $1.6 million due to the lease up of apartment homes at The Hamilton.

Operating proportionate property net operating income increased by $5.2 million, or 11.4%.

The increase was attributable primarily to a $6.9 million, or 10.4% increase in rental and other property revenues due to higher average revenues of $234 per apartment home, offset with a 100-basis point decrease in occupancy.

Other proportionate property net operating income decreased by $0.4 million, or 14.2%.

Other proportionate property net operating income decreased by $1.0 million, or 18.5%, primarily at our commercial office building in Miami, Florida from lower occupancy following lease expirations earlier in 2023.

Non-Segment Real Estate Operations

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Depreciation and Amortization

For the three months ended March 31, 2023, compared to the same period in 2022, Depreciation and amortization decreased by $6.8 million, or 29.6%, due primarily to the disposition of three properties and the termination of leases of four properties and related relinquishment of the associated leasehold improvements during the year ended December 31, 2022.

For the three and six months ended June 30, 2023, compared to the same periods in 2022, Depreciation and amortization decreased by $17.8 million, or 51.1%, and $24.7 million, or 42.6%, respectively, due primarily to the disposition of three properties and the termination of leases of four properties and related relinquishment of the associated leasehold improvements during the year ended December 31, 2022.

General and Administrative Expenses

For the three months ended March 31, 2023, compared to the same period in 2022, General and administrative expenses decreased by $1.1 million, or 11.3%, due primarily to a decrease in expenses for consulting services per the Separation Agreement with AIR, which concluded at December 31, 2022.

For the three and six months ended June 30, 2023, compared to the same periods in 2022, General and administrative expenses decreased by $1.1 million, or 12.0%, and $2.1 million, or 11.6%, respectively, due primarily to a decrease in expenses for consulting services per the Separation Agreement with AIR, which concluded at December 31, 2022.

Interest Income

For the three months ended March 31, 2023, compared to the same period in 2022, interest income increased by $1.5 million, or 100%, due primarily to interest earned on invested cash.

For the three and six months ended June 30, 2023, compared to the same periods in 2022, interest income increased by $1.9 million, or 100.0%, and $3.4 million, or 100.0%, respectively, due primarily to increased interest earned on greater amounts of invested cash at higher rates in the current year versus the prior year.

Interest Expense

For the three months ended March 31, 2023, compared to the same period in 2022, interest expense decreased by $4.9 million, or 33.4%, due primarily to a decrease related to the prepayment of the notes payable due to AIR, partially offset by an increase related to the refinancing of certain property debt during the year ended December 31, 2022.

For the three and six months ended June 30, 2023, compared to the same periods in 2022, interest expense decreased by $31.9 million, or 76.8%, and $36.8 million, or 65.5%, respectively, due primarily to the prepayment of the notes payable due to AIR and other property debt, partially offset by an increase related to the placement of certain property debt during the year ended December 31, 2022.

Mezzanine Investment Income (Loss), Net

For the three months ended March 31, 2023, we recognized $0.1 million of loss in connection with the Mezzanine Investment, compared to $8.2 million of income for the three months ended March 31, 2022, respectively.

During the year ended December 31, 2022, we recorded a non-cash impairment and as a result, we have ceased recognition of income on the Mezzanine Investment.

For the three and six months ended June 30, 2023, compared to the same periods in 2022, Mezzanine Investment income decreased by $8.5 million, or 100%, and $16.8 million or 100.0%, respectively, due primarily to our cessation of income recognition after the non-cash impairment recorded during the year ended December 31, 2022.

Realized and Unrealized Gains (Losses) on Interest Rate Options

We are required to adjust our interest rate options to fair value on a quarterly basis.

As a result of the mark-to-market adjustments, we recorded unrealized losses of $1.9 million and unrealized gains of $18.8 million for the three months ended March 31, 2023 and 2022, respectively.

In addition, we realized gains of $0.8 million for the three months ended March 31, 2023.

As a result of the mark-to-market adjustments, we recorded unrealized gains of $2.5 million and $0.6 million, respectively, for the three and six months ended June 30, 2023, compared to unrealized gains of $11.9 million and $30.7 million, respectively, for the three and six months ended June 30, 2022.

In addition, we recorded realized gains of $0.9 million and $1.7 million, respectively, for the three and six months ended June 30, 2023, compared to realized gains of $8.0 million in both the three and six months ended June 30, 2022.

Realized and Unrealized Gains (Losses) on Equity Investments

We measure our investment in stock based on its market price at period end and our investments in property technology funds at NAV as a practical expedient.

As a result of changes in the values of these investments, we recorded unrealized gains of $0.1 million for the three months ended March 31, 2023, compared to unrealized losses of $4.3 million for the three months ended March 31, 2022.

As a result of changes in the values of these investments, we recorded unrealized gains of $1.1 million and $1.2 million, respectively, for the three and six months ended June 30, 2023, compared to unrealized gains of $0.5 million and unrealized losses of $3.9 million, respectively, for the three and six months ended June 30, 2022.

During the three and six months ended June 30, 2022, we recognized realized and unrealized gains on our investment in IQHQ totaling $26.2 million resulting from a partial redemption of our investment during that period.

Gain on Dispositions of Real Estate

During the three and six months ended June 30, 2023, we recognized a gain on disposition of $1.9 million for the contribution of real estate to an unconsolidated joint venture compared to $94.6 million for the three and six months ended June 30, 2022 related to the sale of an apartment community.

Lease Modification Income

During the three and six months ended June 30, 2022, we recognized $205.4 million of lease modification income related to the agreement entered into with AIR for the termination of the leases of four properties.

Other Income (Expense), Net

Other income (expense), net , includes costs associated with our risk management activities, partnership administration expenses, fee income, and certain non-recurring items.

For the three months ended March 31, 2023, compared to the same period in 2022, other expenses, net increased by $2.5 million, or 100.0%, primarily due to the incremental expense associated with pre-existing long-term incentive partnership units recorded upon the resignation of one of our board members.

For the three months ended June 30, 2023, compared to the same period in 2022, other expenses, net decreased by $0.6 million, or 30.2%.

For the six months ended June 30, 2023, compared to the same period in 2022, other expenses, net increased by $2.0 million, or 68.8%, primarily due to the incremental expense associated with pre-existing long-term incentive partnership units recorded upon the resignation of one of our board members during the first quarter of 2023.

Income Tax Benefit (Expense)

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Consolidated GAAP income or loss subject to tax consists of pretax income or loss of our taxable entities and gains retained by the REIT.

For the three months ended March 31, 2023, we had consolidated net losses subject to tax of $4.9 million, compared to net losses subject to tax of $14.8 million for the same period in 2022.

For the three months ended March 31, 2023, we recognized income tax benefit of $4.2 million, compared to income tax benefit of $4.1 million for the same period in 2022.

The change is due primarily to the tax effect of depreciation associated with properties owned by, and activities of, our TRS entities, as well as a reduction to the effective state tax rate expected to apply to the reversal of our existing deferred items.

For the three and six months ended June 30, 2023, we had a consolidated net losses subject to tax of $2.5 million and $7.4 million, respectively, compared to consolidated net income subject to tax of $181.4 million and $166.6 million, respectively, for the same periods in 2022.

For the three months ended June 30, 2023, we recognized an income tax benefit of $0.4 million, compared to income tax expense of $46.0 million for the same period in 2022.

The change is due primarily to GAAP income taxes associated with the lease modification income recognized in the second quarter of 2022.

For the six months ended June 30, 2023, we recognized an income tax benefit of $4.6 million, compared to income tax expense of $41.9 million for the same period in 2022.

The change is primarily due to a change in the first quarter of 2023 to the effective state tax rate expected to apply to the reversal of deferred taxes, as well as the GAAP income taxes associated with the lease modification income recognized in the second quarter of 2022.

Critical Accounting Policies and Estimates

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We define Adjusted EBITDAre as EBITDAre adjusted to exclude the effect of net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships and EBITDAre adjustments attributable to noncontrolling interests, and realized and unrealized (gains) losses on interest rate options, which we believe allow investors to compare a measure of our earnings before the effects of our capital structure and indebtedness with that of other companies in the real estate industry.

Additionally, we exclude interest income recognized on our Mezzanine Investment that was accrued but not paid.

The reconciliation of net loss to EBITDAre and Adjusted EBITDAre for the three months ended March 31, 2023 and 2022, is as follows (in thousands):

Three Months Ended March 31,

Additionally, we exclude the (income) loss recognized on our Mezzanine Investment.

The reconciliation of net income (loss) to EBITDAre and Adjusted EBITDAre for the three and six months ended June 30, 2023 and 2022, is as follows (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Net income (loss)

1 unchanged sentence

Income tax (benefit) expense

Gain on disposition of real estate

Lease modification income

Depreciation and amortization

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Realized and unrealized (gains) losses on interest rate options

Unrealized (gains) losses on IQHQ investment

Adjusted EBITDAre

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Our primary sources of liquidity are cash flows from operations and borrowing capacity under our loan agreements.

As of March 31, 2023, our available liquidity was $338.6 million, which consisted of:

As of June 30, 2023, our available liquidity was $342.4 million, which consisted of:

$165.0 million in cash and cash equivalents;

1 unchanged sentence

$150.0 million of available capacity to borrow under our revolving secured credit facility.

We have commitments for approximately $133.2 million and remaining planned spend of $142.7 million on development and redevelopment projects, with $268.4 million undrawn on our construction loans as of March 31, 2023.

As of June 30, 2023, we had sufficient capacity on our construction loans to cover our commitments of approximately $165.5 million.

The initial allocation to our joint ventures have remaining unfunded commitments of $3.2 million.

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However, if property or development financing options become unavailable, we may consider alternative sources of liquidity, such as reductions in capital spending or apartment community dispositions.

As of March 31, 2023, approximately 83% of our outstanding non-recourse property debt had a fixed interest rate and approximately 17% had a variable interest rate.

In addition, the weighted-average rate on our non-recourse debt was 5.3%, and the average remaining term to maturity was 6.9 years.

At March 31, 2023, substantially all of our outstanding non-recourse property debt was either fixed or hedged.

As of June 30, 2023, approximately 88% of our outstanding non-recourse property debt had a fixed interest rate and approximately 12% had a variable interest rate.

In addition, the weighted-average contractual rate on our non-recourse debt was 4.9% and 4.7% inclusive of interest rate caps, and the average remaining term to maturity was 7.0 years.

At June 30, 2023, all of our outstanding non-recourse property debt was either fixed or hedged.

Our use of interest rate caps may vary from quarter to quarter depending on lender requirements, recycling of interest rate caps between projects, and our view on forecasted interest rates.

While our primary source of leverage is property-level debt and construction loans, we also have a secured $150.0 million credit facility with a syndicate of financial institutions.

As of March 31, 2023, we had no outstanding borrowings under our revolving secured credit facility.

As of June 30, 2023, we had no outstanding borrowings under our revolving secured credit facility.

Under our revolving secured credit facility, we have agreed to maintain a fixed charge coverage ratio of 1.25X minimum tangible net worth of $625.0 million, and maximum leverage of 60.0% as defined in the credit agreement.

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Operating Activities

For the three months ended March 31, 2023, net cash provided by operating activities was $5.6 million.

For the six months ended June 30, 2023, net cash provided by operating activities was $17.7 million.

Our operating cash flow is primarily affected by rental rates, occupancy levels, and operating expenses related to our portfolio of apartment communities and general and administrative costs.

Cash provided by operating activities for the three months ended March 31, 2023, decreased by $0.9 million compared to the same period ended in 2022, due primarily to lower net operating income associated with apartment communities sold in the latter part of 2022 and timing of balance sheet position changes, partially offset by decreased interest payments.

Cash provided by operating activities for the six months ended June 30, 2023, decreased by $7.7 million compared to the same period ended in 2022, due primarily to lower net cash received from lease incentive, lower net operating income associated with apartment communities sold in the latter part of 2022, and timing of balance sheet position changes, partially offset by decreased interest payments.

Investing Activities

For the three months ended March 31, 2023, net cash used in investing activities of $63.2 million consisted primarily of capital expenditures of $64.8 million.

Net cash used in investing activities for the three months ended March 31, 2023, decreased by $48.2 million compared to the same period ended in 2022, due primarily to decreased real estate acquisitions and funding of our passive equity investment in IQHQ, partially offset by increased capital expenditures.

For the six months ended June 30, 2023, net cash used in investing activities of $126.5 million consisted primarily of capital expenditures of $129.9 million.

Net cash used in investing activities for the six months ended June 30, 2023, increased by $1.2 million compared to the same period ended in 2022, due primarily to increased capital expenditures offset by decreased funding for net real estate and investment transactions.

We have generally funded capital additions with available cash and cash provided by operating activities and construction loans.

Financing Activities

For the three months ended March 31, 2023, net cash provided by financing activities of $16.5 million consisted primarily of proceeds from construction loans, partially offset by repurchases of Common Stock and distributions to noncontrolling interests.

Net cash provided by financing activities for the three months ended March 31, 2023, decreased by $21.5 million compared to the same period ended in 2022, due primarily to decreased proceeds from non-recourse property debt and increased common stock repurchased, as well as changes in activity with noncontrolling interests, partially offset by decreased payments on finance leases and increased proceeds from construction loans.

For the six months ended June 30, 2023, net cash provided by financing activities of $71.5 million consisted primarily of proceeds from construction loans, the sale of a participation in the Mezzanine Investment, and the monetization of interest rate options, partially offset by repayments on non-recourse property debt and common stock repurchases.

Net cash provided by financing activities for the six months ended June 30, 2023, increased by $121.8 million compared to the same period ended in 2022, due primarily to prior year repayment and borrowing activity, offset by current year activity, including the sale of a participation in the Mezzanine Investment and the monetization of interest rate options.

Future Capital Needs

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We use working capital primarily to fund short-term uses.

We make limited use of derivative financial instruments and we do not use them for trading or other speculative purposes.

As of March 31, 2023, on a consolidated basis, we had approximately $164.2 million of variable-rate property-level debt outstanding and $144.7 million of variable rate construction loans.

The impact of rising interest rates is mitigated by our use of interest rate caps, which as of March 31, 2023, provided protection for our variable interest rate debt.

We use derivative financial instruments as a risk management tool and do not use them for trading or other speculative purposes.

As of June 30, 2023, on a consolidated basis, we had approximately $104.2 million of variable-rate property-level debt outstanding and $172.9 million of variable rate construction loans.

The impact of rising interest rates is mitigated by our use of interest rate caps, which as of June 30, 2023, provided protection for our variable interest rate debt.

Our use of interest rate caps may vary from quarter to quarter depending on lender requirements, recycling of interest rate caps between projects, and our view on forecasted interest rates.

We estimate that an increase in our variable rate indices of 100 basis points with constant credit risk spreads, would increase interest expense by $0.5 million on an annual basis.

We estimate that a decrease in our variable rate indices of 100 basis points with constant credit risk spreads, would reduce interest expense by $0.5 million on an annual basis.

As of March 31, 2023, we held interest rate swaps and caps with $2.0 billion notional value.

These instruments were acquired for $17.7 million and at March 31, 2023 were valued at $60.4 million.

As of March 31, 2023, we had $188.6 million in cash and cash equivalents and restricted cash, a portion of which earns interest at variable rates.

We estimate that an increase or decrease in our variable rate indices of 100 basis points with constant credit risk spreads, would have no impact on interest expense on an annual basis.

As of June 30, 2023, we held interest rate caps with $473.2 million notional value.

These instruments were acquired for $5.1 million and at June 30, 2023 were valued at $9.0 million.

As of June 30, 2023, we had $192.4 million in cash and cash equivalents and restricted cash, a portion of which earns interest at variable rates.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements