Item 1. Financial Statements
ITEM 1. FINANCIAL STATEMENTS
APARTMENT INVESTMENT A ND MANAGEMENT COMPANY
CONDENSED CONSOLIDA TED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
March 31, 2024
December 31, 2023
ASSETS
Buildings and improvements
$
1,638,190
$
1,593,802
Land
620,488
620,821
Total real estate
2,258,678
2,214,623
Accumulated depreciation
( 597,380
)
( 580,802
)
Net real estate
1,661,298
1,633,821
Cash and cash equivalents
121,814
122,601
Restricted cash
18,589
16,666
Interest rate options
5,072
5,255
Unconsolidated real estate partnerships
23,282
23,125
Notes receivable
58,187
57,554
Right-of-use lease assets - finance leases
108,673
108,992
Other assets, net
122,976
121,461
Total assets
$
2,119,891
$
2,089,475
LIABILITIES AND EQUITY
Non-recourse property debt, net
$
845,671
$
846,298
Non-recourse construction loans, net
336,332
301,443
Total indebtedness
1,182,003
1,147,741
Deferred tax liabilities
108,487
110,284
Lease liabilities - finance leases
119,269
118,697
Accrued liabilities and other
131,554
121,143
Total liabilities
1,541,313
1,497,865
Redeemable noncontrolling interests in consolidated real estate partnerships
173,158
171,632
Commitments and contingencies (Note 3)
Equity ( 510,587,500 shares authorized at both March 31, 2024 and December 31, 2023):
Common Stock, $ 0.01 par value, 140,210,798 and 140,576,102 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively
1,402
1,406
Additional paid-in capital
460,907
464,538
Retained earnings (deficit)
( 126,478
)
( 116,292
)
Total Aimco equity
335,831
349,652
Noncontrolling interests in consolidated real estate partnerships
51,333
51,265
Common noncontrolling interests in Aimco Operating Partnership
18,256
19,061
Total equity
405,420
419,978
Total liabilities and equity
$
2,119,891
$
2,089,475
See notes to condensed consolidated financial statements.
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APARTMENT INVESTMENT AND MANAGEMENT COMPANY
CONDENSED CONSOLIDATED S TATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
2024
2023
REVENUES
Rental and other property revenues
$
50,203
$
44,268
OPERATING EXPENSES
Property operating expenses
21,199
17,504
Depreciation and amortization
19,468
16,271
General and administrative expenses
8,549
8,403
Total operating expenses
49,216
42,178
Interest income
2,648
2,058
Interest expense
( 13,370
)
( 9,725
)
Realized and unrealized gains (losses) on interest rate options
1,672
( 1,057
)
Realized and unrealized gains (losses) on equity investments
( 271
)
137
Income from unconsolidated real estate partnerships
312
174
Other income (expense), net
( 1,904
)
( 3,626
)
Income (loss) before income tax
( 9,926
)
( 9,949
)
Income tax benefit (expense)
2,730
4,196
Net income (loss)
( 7,196
)
( 5,753
)
Net (income) loss attributable to redeemable noncontrolling
interests in consolidated real estate partnerships
( 3,560
)
( 3,274
)
Net (income) loss attributable to noncontrolling interests
in consolidated real estate partnerships
16
( 264
)
Net (income) loss attributable to common noncontrolling
interests in Aimco Operating Partnership
554
474
Net income (loss) attributable to Aimco
$
( 10,186
)
$
( 8,817
)
Net income (loss) attributable to Aimco per common
share – basic (Note 4)
$
( 0.07
)
$
( 0.06
)
Net income (loss) attributable to Aimco per common
share – diluted (Note 4)
$
( 0.07
)
$
( 0.06
)
Weighted-average common shares outstanding – basic
140,594
145,827
Weighted-average common shares outstanding – diluted
140,594
145,827
See notes to condensed consolidated financial statements.
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APARTMENT INVESTMENT A ND MANAGEMENT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
For the Three Months Ended March 31, 2024 and 2023
(In thousands, except per share data)
(Unaudited)
Common Stock
Noncontrolling
Interests in
Common
Noncontrolling
Interests in
Shares
Issued
Amount
Additional
Paid-
in Capital
Retained Earnings (Accumulated Deficit)
Total Aimco
Equity
Consolidated
Real Estate
Partnerships
Aimco
Operating
Partnership
Total
Equity
Balances at December 31, 2022
146,525
$
1,466
$
496,482
$
49,904
$
547,852
$
48,294
$
29,212
$
625,358
Net income (loss)
—
—
—
( 8,817
)
( 8,817
)
264
( 474
)
( 9,027
)
Redemption of OP Units held by third parties
—
—
4,293
—
4,293
—
( 4,547
)
( 254
)
Share-based compensation expense
—
—
1,696
—
1,696
—
3,126
4,822
Contributions from noncontrolling interests in consolidated real estate partnerships
—
—
—
—
—
50
—
50
Distributions to noncontrolling interests in consolidated real estate partnerships
—
—
—
—
—
( 287
)
—
( 287
)
Common stock repurchased
( 2,019
)
( 20
)
( 14,701
)
—
( 14,721
)
—
—
( 14,721
)
Other common stock issuances
247
2
1,538
—
1,540
—
1,272
2,812
Other, net
( 35
)
—
( 4
)
—
( 4
)
—
—
( 4
)
Balances at March 31, 2023
144,718
1,448
489,304
41,087
531,839
48,321
28,589
608,749
Balances at December 31, 2023
140,576
1,406
464,538
( 116,292
)
349,652
51,265
19,061
419,978
Net income (loss)
—
—
—
( 10,186
)
( 10,186
)
( 16
)
( 554
)
( 10,756
)
Redemption of OP Units held by third parties
—
—
( 28
)
—
( 28
)
—
( 257
)
( 285
)
Share-based compensation expense
—
—
1,928
—
1,928
—
6
1,934
Contributions from noncontrolling interests in consolidated real estate partnerships
—
—
—
—
—
485
—
485
Distributions to noncontrolling interests in consolidated real estate partnerships
—
—
—
—
—
( 401
)
—
( 401
)
Common stock repurchased
( 873
)
( 9
)
( 6,546
)
—
( 6,555
)
—
—
( 6,555
)
Other common stock issuances, net of withholding taxes
508
5
1,015
—
1,020
—
—
1,020
Balances at March 31, 2024
140,211
$
1,402
$
460,907
$
( 126,478
)
$
335,831
$
51,333
$
18,256
$
405,420
See notes to condensed consolidated financial statements.
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APARTMENT INVESTMENT AND MANAGEMENT COMPANY
CONDENSED CONSOLIDATED S TATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited )
Three Months Ended March 31,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
( 7,196
)
$
( 5,753
)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization
19,468
16,271
Realized and unrealized (gains) losses on interest rate options
( 1,672
)
1,057
Realized and unrealized (gains) losses on equity investments
271
( 137
)
Income tax expense (benefit)
( 2,730
)
( 4,196
)
Share-based compensation
1,666
4,519
Income from unconsolidated real estate partnerships
( 312
)
( 174
)
Amortization of debt issuance costs and other
3,339
936
Changes in operating assets and operating liabilities:
Operating assets, net
( 3,568
)
2,238
Operating liabilities, net
12,446
( 9,162
)
Total adjustments
28,908
11,352
Net cash provided by operating activities
21,712
5,599
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (1)
( 40,936
)
( 64,814
)
Other investing activities
( 153
)
1,580
Net cash used in investing activities
( 41,089
)
( 63,234
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from non-recourse construction loans
28,982
35,491
Principal repayments on non-recourse property debt
( 784
)
( 779
)
Proceeds from interest rate options
1,847
803
Payments on finance leases
( 175
)
( 796
)
Common stock repurchased
( 6,555
)
( 14,522
)
Payments related to withholding taxes for share-based compensation
( 567
)
—
Distributions to redeemable noncontrolling interests
( 2,034
)
( 3,095
)
Contributions from noncontrolling interests
485
50
Distributions to noncontrolling interests
( 401
)
( 287
)
Contributions from redeemable noncontrolling interests
—
124
Redemption of OP Units held by third parties
( 285
)
( 254
)
Other financing activities
—
( 232
)
Net cash provided by financing activities
20,513
16,503
NET DECREASE IN CASH, CASH EQUIVALENTS,
AND RESTRICTED CASH
1,136
( 41,132
)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT
BEGINNING OF PERIOD
139,267
229,766
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT
END OF PERIOD
$
140,403
$
188,634
(1) Accrued capital expenditures wer e $ 39.8 mil lion and $ 43.8 m illion as of March 31, 2024 and 2023, respectively.
See notes to condensed consolidated financial statements.
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AIMCO OP L.P.
CONDENSED CONSOLIDA TED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, 2024
December 31, 2023
ASSETS
Buildings and improvements
$
1,638,190
$
1,593,802
Land
620,488
620,821
Total real estate
2,258,678
2,214,623
Accumulated depreciation
( 597,380
)
( 580,802
)
Net real estate
1,661,298
1,633,821
Cash and cash equivalents
121,814
122,601
Restricted cash
18,589
16,666
Interest rate options
5,072
5,255
Unconsolidated real estate partnerships
23,282
23,125
Notes receivable
58,187
57,554
Right-of-use lease assets - finance leases
108,673
108,992
Other assets, net
122,976
121,461
Total assets
$
2,119,891
$
2,089,475
LIABILITIES AND EQUITY
Non-recourse property debt, net
$
845,671
$
846,298
Non-recourse construction loans, net
336,332
301,443
Total indebtedness
1,182,003
1,147,741
Deferred tax liabilities
108,487
110,284
Lease liabilities - finance leases
119,269
118,697
Accrued liabilities and other
131,554
121,143
Total liabilities
1,541,313
1,497,865
Redeemable noncontrolling interests in consolidated real estate partnerships
173,158
171,632
Commitments and contingencies (Note 3)
Partners’ capital:
General Partner and Special Limited Partner
335,831
349,652
Limited Partners
18,256
19,061
Partners’ capital attributable to Aimco Operating Partnership
354,087
368,713
Noncontrolling interests in consolidated real estate partnerships
51,333
51,265
Total partners’ capital
405,420
419,978
Total liabilities and partners’ capital
$
2,119,891
$
2,089,475
See notes to condensed consolidated financial statements.
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AIMCO OP L.P.
CONDENSED CONSOLIDATED S TATEMENTS OF OPERATIONS
(In thousands, except per unit data)
(Unaudited)
Three Months Ended March 31,
2024
2023
REVENUES
Rental and other property revenues
$
50,203
$
44,268
OPERATING EXPENSES
Property operating expenses
21,199
17,504
Depreciation and amortization
19,468
16,271
General and administrative expenses
8,549
8,403
Total operating expenses
49,216
42,178
Interest income
2,648
2,058
Interest expense
( 13,370
)
( 9,725
)
Realized and unrealized gains (losses) on interest rate options
1,672
( 1,057
)
Realized and unrealized gains (losses) on equity investments
( 271
)
137
Income from unconsolidated real estate partnerships
312
174
Other income (expense), net
( 1,904
)
( 3,626
)
Income (loss) before income tax
( 9,926
)
( 9,949
)
Income tax benefit (expense)
2,730
4,196
Net income (loss)
( 7,196
)
( 5,753
)
Net (income) loss attributable to redeemable noncontrolling
interests in consolidated real estate partnerships
( 3,560
)
( 3,274
)
Net (income) loss attributable to noncontrolling interests
in consolidated real estate partnerships
16
( 264
)
Net income (loss) attributable to Aimco Operating
Partnership
$
( 10,740
)
$
( 9,291
)
Net income (loss) attributable to Aimco Operating
Partnership per common unit – basic (Note 4)
$
( 0.07
)
$
( 0.06
)
Net income (loss) attributable to Aimco Operating
Partnership per common unit – diluted (Note 4)
$
( 0.07
)
$
( 0.06
)
Weighted-average common units outstanding – basic
148,257
153,631
Weighted-average common units outstanding – diluted
148,257
153,631
See notes to condensed consolidated financial statements.
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AIMCO OP L.P.
CONDENSED CONSOLIDATED S TATEMENTS OF PARTNERS’ CAPITAL
For the Three Months Ended March 31, 2024 and 2023
(In thousands)
(Unaudited)
General Partner
and Special
Limited Partner
Limited
Partners
Partners’ Capital
Attributable to
Aimco Operating
Partnership
Noncontrolling
Interests
in Consolidated Real
Estate Partnerships
Total
Partners’
Capital
Balances at December 31, 2022
$
547,852
$
29,212
$
577,064
$
48,294
$
625,358
Net income (loss)
( 8,817
)
( 474
)
( 9,291
)
264
( 9,027
)
Redemption of OP Units held by third parties
4,293
( 4,547
)
( 254
)
—
( 254
)
Share-based compensation expense
1,696
3,126
4,822
—
4,822
Contributions from noncontrolling interests in consolidated real estate partnerships
—
—
—
50
50
Distributions to noncontrolling interests in consolidated real estate partnerships
—
—
—
( 287
)
( 287
)
Redemption of OP Units held by Aimco
( 14,721
)
—
( 14,721
)
—
( 14,721
)
Other OP Unit issuances
1,540
1,272
2,812
—
2,812
Other, net
( 4
)
—
( 4
)
—
( 4
)
Balances at March 31, 2023
531,839
28,589
560,428
48,321
608,749
Balances at December 31, 2023
349,652
19,061
368,713
51,265
419,978
Net income (loss)
( 10,186
)
( 554
)
( 10,740
)
( 16
)
( 10,756
)
Redemption of OP Units held by third parties
( 28
)
( 257
)
( 285
)
—
( 285
)
Share-based compensation expense
1,928
6
1,934
—
1,934
Contributions from noncontrolling interests in consolidated real estate partnerships
—
—
—
485
485
Distributions to noncontrolling interests in consolidated real estate partnerships
—
—
—
( 401
)
( 401
)
Redemption of OP Units held by Aimco
( 6,555
)
—
( 6,555
)
—
( 6,555
)
Other OP Unit issuances, net of withholding taxes
1,020
—
1,020
—
1,020
Balances at March 31, 2024
$
335,831
$
18,256
$
354,087
$
51,333
$
405,420
See notes to condensed consolidated financial statements.
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AIMCO OP L.P.
CONDENSED CONSOLIDATED S TATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March 31,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
( 7,196
)
$
( 5,753
)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization
19,468
16,271
Realized and unrealized (gains) losses on interest rate options
( 1,672
)
1,057
Realized and unrealized (gains) losses on equity investments
271
( 137
)
Income tax expense (benefit)
( 2,730
)
( 4,196
)
Share-based compensation
1,666
4,519
Income from unconsolidated real estate partnerships
( 312
)
( 174
)
Amortization of debt issuance costs and other
3,339
936
Changes in operating assets and operating liabilities:
Operating assets, net
( 3,568
)
2,238
Operating liabilities, net
12,446
( 9,162
)
Total adjustments
28,908
11,352
Net cash provided by operating activities
21,712
5,599
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (1)
( 40,936
)
( 64,814
)
Other investing activities
( 153
)
1,580
Net cash used in investing activities
( 41,089
)
( 63,234
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from non-recourse construction loans
28,982
35,491
Principal repayments on non-recourse property debt
( 784
)
( 779
)
Proceeds from interest rate options
1,847
803
Payments on finance leases
( 175
)
( 796
)
Common stock repurchased
( 6,555
)
( 14,522
)
Payments related to withholding taxes for share-based compensation
( 567
)
—
Distributions to redeemable noncontrolling interests
( 2,034
)
( 3,095
)
Contributions from noncontrolling interests
485
50
Distributions to noncontrolling interests
( 401
)
( 287
)
Contributions from redeemable noncontrolling interests
—
124
Redemption of OP Units held by third parties
( 285
)
( 254
)
Other financing activities
—
( 232
)
Net cash provided by financing activities
20,513
16,503
NET DECREASE IN CASH, CASH EQUIVALENTS,
AND RESTRICTED CASH
1,136
( 41,132
)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT
BEGINNING OF PERIOD
139,267
229,766
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT
END OF PERIOD
$
140,403
$
188,634
(1) Accrued capital expenditures w ere $ 39.8 mill ion and $ 43.8 million as of March 31, 2024 and 2023, respectively.
See notes to condensed consolidated financial statements.
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APARTMENT INVESTMENT AND MANAGEMENT COMPANY
AIMCO OP L.P.
NOTES TO CONDENSED CONSOLID ATED FINANCIAL STATEMENTS
March 31, 2024
(Unaudited)
Note 1 — Organization
Apartment Investment and Management Company (“Aimco” or "the Company"), a Maryland corporation, is a self-administered and self-managed real estate investment trust (“REIT”). On December 15, 2020, Aimco completed the separation of its businesses (the “Separation”), creating two, separate and distinct, publicly traded companies, Aimco and Apartment Income REIT Corp. (“AIR”) (Aimco and AIR together, as they existed prior to the Separation, “Aimco Predecessor”). Events noted in this filing as occurring before December 15, 2020, were those entered into by Aimco Predecessor.
Aimco, through a wholly owned subsidiary, is the general partner and is, directly, the special limited partner of Aimco OP L.P. (“Aimco Operating Partnership”). As of March 31, 2024, Aimco owned 92.4 % of the legal interest in the common partnership units of Aimco Operating Partnership and 94.8 % of the economic interest in Aimco Operating Partnership. The remaining 7.6 % legal interest is owned by limited partners. The common partnership units of Aimco Operating Partnership are referred to as "OP Units". As the sole general partner of Aimco Operating Partnership, Aimco has exclusive control of Aimco Operating Partnership’s day-to-day management.
This filing combines the quarterly reports on Form 10-Q for the quarterly period ended March 31, 2024, of Aimco and Aimco Operating Partnership. Where it is important to distinguish between the two entities, we refer to them specifically. Otherwise, references to “we,” “us,” or “our” mean, collectively, Aimco, Aimco Operating Partnership, and their consolidated entities.
We own or lease a portfolio of real estate investments focused primarily on the U.S. multifamily sector. At March 31, 2024, our entire portfolio of operating residential apartment communities includes 5,600 apartment homes within 21 consolidated stabilized operating properties, a fully renovated waterfront property with 276 units, and four unconsolidated properties. We also own two multifamily properties that are under construction with 624 of the 909 planned apartment homes delivered, a single family rental community that is under construction with 16 planned homes and eight accessory dwelling units, a 106 -key luxury hotel with event space, one commercial office building that is part of an assemblage with an adjacent apartment building, and land parcels held for development. In addition, we hold other alternative investments, including our Mezzanine Investment (see Note 2 for further information); our investment in IQHQ, Inc. ("IQHQ"); and our investment in real estate technology funds.
Note 2 — Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. 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, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
The accompanying condensed consolidated financial statements include the accounts of Aimco, Aimco Operating Partnership, and their consolidated subsidiaries. Aimco Operating Partnership’s condensed consolidated financial statements include the accounts of Aimco Operating Partnership and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
As used herein, and except where the context otherwise requires, “partnership” refers to a limited partnership or a limited liability company and “partner” refers to a partner in a limited partnership or a member of a limited liability company.
Certain reclassifications have been made to prior period amounts to conform to the current period condensed consolidated financial statement presentation with no effect on the Company’s previously reported results of operations, financial position, or cash flows.
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The Condensed Consolidated Balance Sheets of Aimco and Aimco Operating Partnership as of December 31, 2023 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. For further information, refer to the financial statements and notes thereto included in Aimco’s and Aimco Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2023 . Except where indicated, the footnotes refer to both Aimco and Aimco Operating Partnership.
Principles of Consolidation
We consolidate a variable interest entity (“VIE”) in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. Refer to Note 6 for further information.
Common Noncontrolling Interests in Aimco Operating Partnership
Common noncontrolling interests in Aimco Operating Partnership consist of OP Units held by third parties, and are reflected in Aimco’s accompanying Condensed Consolidated Balance Sheets as Common Noncontrolling Interests in Aimco Operating Partnership . 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 OP Units held by Aimco) outstanding during the period. For the periods ended March 31, 2024 and 2023, the holders of OP Units had a weighted-average economic ownership interest in Aimco Operating Partnership of approximately 5.2 % , and 5.1 %, respectively. Substantially all of the assets and liabilities of Aimco are held by Ai mco Operating Partnership.
Redeemable Noncontrolling Interests in Consolidated Real Estate Partnerships
Redeemable noncontrolling interests consist of equity interests held by a limited partner in a consolidated real estate partnership that has a finite life. 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, 2024, consists of the following: (i) a 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 expect to complete the development of residential apartment communities in 2024. 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 Sheets as of March 31, 2024.
The assets of our consolidated real estate partnerships must first be used to settle the liabilities of the consolidated real estate partnerships. The consolidated real estate partnership’s creditors do not have recourse to the general credit of Aimco Operating Partnership.
The following table shows changes in our redeemable noncontrolling interests in consolidated real estate partnerships from December 31, 2023 to March 31, 2024 ( in thousands ):
2024
Balance at Beginning of Period
$
171,632
Distributions
( 2,034
)
Net income
3,560
Balance at March 31, 2024
$
173,158
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Mezzanine Investment
In November 2019, Aimco Predecessor made a five-year , $ 275.0 million mezzanine loan to the partnership owning the “Parkmerced Apartments” located in southwest San Francisco (the “Mezzanine Investment”). The loan bears interest at a 10 % annual rate, accruing if not paid from property operations. Legal ownership of the subsidiaries that originated and hold the Mezzanine Investment was retained by AIR following the Separation.
The Separation Agreement with AIR provides for AIR to transfer ownership of the subsidiaries that originated and hold the Mezzanine Investment, and a related equity option to acquire a 30 % interest in the partnership owning Parkmerced Apartments. At the time of Separation and as of the date of this filing, legal title of these subsidiaries had not yet transferred to us. Until legal title of the subsidiaries is transferred, AIR is obligated to pass payments received on the Mezzanine Investment to us, and we are obligated to indemnify AIR against any costs and expenses related thereto. We have the risks and rewards of ownership of the Mezzanine Investment. The carrying value of the Mezzanine Investment was zero as of March 31, 2024.
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, we receive a first priority return from any payments made to service or pay down the Mezzanine Investment equal to $ 134.0 million plus no less than a 19 % annualized return as well as 80 % of any residual payments after the purchaser receives a 10 % annualized return on its subordinate investment. Additionally, we are responsible for the servicing and administration of the Mezzanine Investment.
Because we receive first priority and a higher return than the purchaser, the partial sale and transfer of the financial interest does not qualify for sale accounting in accordance with GAAP. Therefore, we recorded the cash received from the purchaser as a liability, which is included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets in accordance with GAAP. Although the cash received is accounted for as a liability in accordance with GAAP, no amount is due to the purchaser until after we receive $ 134.0 million plus our annualized return. Tr ansaction costs have been deferred and are presented as a direct reduction from the related liability, which is included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets . The cash flows associated with this partial Mezzanine Investment sale have been included in Cash Flows from Financing Activities in our Condensed Consolidated Statements of Cash Flows.
Income Tax Benefit (Expense)
Certain aspects of our operations, including our development and redevelopment activities, are conducted through taxable REIT subsidiaries, or TRS entities. Additionally, our TRS entities hold investments in one of our apartment communities and 1001 Brickell Bay Drive.
Our income tax benefit (expense) calculated in accordance with GAAP includes income taxes associated with the income or loss of our TRS entities. Income taxes, as well as changes in valuation allowance and incremental deferred tax items in conjunction with intercompany asset transfers and internal restructurings (if applicable), are included in Income tax benefit (expense) in our Condensed Consolidated Statements of Operations .
Consolidated GAAP income or loss subject to tax consists of pretax income or loss of our taxable entities and income and gains retained by the REIT. For the three months ended March 31, 2024, we had consolidated net losses subject to tax of $ 6.6 million, compared to consolidated net losses of $ 4.9 million for the same period in 2023.
For the three months ended March 31, 2024, we recognized an income tax benefit of $ 2.7 million, compared to income tax benefit of $ 4.2 million during the same period in 2023 . The decrease is due primarily to a reduction to the effective state tax rate expected to apply to the reversal of our existing deferred items recognized during the three months ended March 31, 2023.
Use of Estimates
The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates.
Cash Equivalents
We classify highly liquid investments with an original maturity of three months or less as cash equivalents. We maintain cash equivalents in financial institutions in excess of insured limits. We have not experienced any losses in these accounts in the past and believe that we are not exposed to significant credit risk because our accounts are deposited with major financial institutions.
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Restricted Cash
Restricted cash consists of tenant security deposits, capital replacement reserves, insurance reserves, and cash restricted as required by our debt agreements.
Other Assets, net
Other assets were comprised of the following amounts as of March 31, 2024 and December 31, 2023 ( in thousands ):
March 31, 2024
December 31, 2023
Other investments
$
64,943
$
65,066
Deferred costs, deposits, and other
10,455
10,601
Prepaid expenses and real estate taxes
8,238
13,628
Intangible assets, net
13,438
13,494
Corporate fixed assets
11,311
10,669
Accounts receivable, net of allowances of $ 164 and $ 373 as of March 31, 2024 and December 31, 2023, respectively
10,428
5,178
Deferred tax assets
3,650
2,391
Due from affiliates
513
434
Total other assets, net
$
122,976
$
121,461
Recent Accounting Pronouncements
In November 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which requires disclosure of incremental segment information, including segment expense categories, on an annual and interim basis. The new guidance is effective for the annual period ended December 31, 2024 and interim periods beginning in 2025. The amendments in the ASU apply retrospectively to all periods presented in the financial statements. The segment expense categories and amounts disclosed in prior periods are based on the significant expense categories identified and disclosed in the period of adoption. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which is intended to enhance the transparency and decision usefulness of income tax disclosures. This amendment modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, (2) the amount of income taxes paid (net of refunds received) (disaggregated by federal, state, and foreign taxes) as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid net of refunds. (3) the income or loss from continuing operations before income tax expense or benefit (disaggregated between domestic and foreign) and (4) income tax expense or benefit from continuing operations (disaggregated by federal, state and foreign). The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, while retrospective application is permitted. We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures.
Note 3 — Commitments and Contingencies
Commitments
In connection with our development, redevelopment, and other capital additions activities, we have entered into various construction-related contracts, and have made commitments to complete development and redevelopment of certain real estate, pursuant to financing or other arrangements. As of March 31, 2024, we had remaining commitments for construction-related contracts of $ 42.4 million, with $ 91.7 million undrawn on our non-recourse construction loans.
As of March 31, 2024, we have remaining commitments of $ 3.0 million related to our unconsolidated joint ventures, which we expect to fund over the next twelve months. In addition, we have remaining commitments of $ 1.9 million related to our investments in property technology funds invested in entities that develop technology related to the real estate industry. The timing of the remaining funding of these commitments is uncertain.
We also enter into certain commitments for future purchases of goods and services in connection with the operations of our apartment communities. Those commitments generally have terms of one year or less and reflect expenditure levels comparable to our historical expenditures.
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Legal Matters
From time to time, we may be a party to certain legal proceedings, incidental to the normal course of business. While the outcome of the legal proceedings cannot be predicted with certainty, we believe there are no legal proceedings pending that would have a material effect upon our financial condition or results of operations.
Note 4 — Earnings per Share and per Unit
Aimco and Aimco Operating Partnership calculate basic earnings per share and basic earnings per unit based on the weighted-average number of shares of Common Stock and OP Units outstanding. We calculate diluted earnings per share and diluted earnings per unit taking into consideration dilutive shares of Common Stock and OP Unit equivalents and dilutive convertible securities outstanding during the period.
Aimco's Common Stock and OP Unit equivalents include options to purchase shares of Common Stock, which, if exercised, would result in Aimco's issuance of additional shares of Common Stock and Aimco Operating Partnership’s issuance to Aimco of additional OP Units equal to the number of shares of Common Stock purchased under the options. These equivalents also include unvested market-based restricted stock awards that do not meet the definition of participating securities, which would result in an increase in the number of shares of Common Stock and OP Units outstanding equal to the number of the shares that vest. OP Unit equivalents also include unvested long-term incentive partnership units. The Common Stock and OP Unit equivalents were not included in the computation of diluted earnings per share and unit for the three months ended March 31, 2024 and 2023, because the effect of their inclusion would have been antidilutive. As of March 31, 2024, the Common Stock and OP Unit equivalents that could potentially dilute basic earnings per share or unit in future periods totaled 4.2 million and 8.4 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 ("LTIP Units") receive non-forfeitable distributions based on specified percentages of the distributions paid to OP Units prior to vesting and conversion. The unvested restricted shares and units related to these awards are participating securities. When applicable, 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 were not included in the computation of diluted earnings per share and unit for the three months ended March 31, 2024 and 2023, because the effect of their inclusion would have been antidilutive. As of March 31, 2024, participating securities that could potentially dilute basic earnings per share or unit in future periods totaled 2.5 million.
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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, 2024 and 2023, are as follows ( in thousands, except per share and per unit data ):
Three Months Ended
March 31,
2024
2023
Earnings per share
Numerator:
Net income (loss) attributable to Aimco
$
( 10,186
)
$
( 8,817
)
Net income (loss) allocated to Aimco participating securities
—
—
Net income (loss) attributable to Aimco common stockholders
$
( 10,186
)
$
( 8,817
)
Denominator - shares:
Basic weighted-average common stock outstanding
140,594
145,827
Diluted share equivalents outstanding
—
—
Diluted weighted-average common stock outstanding
140,594
145,827
Earnings (loss) per share - basic
$
( 0.07
)
$
( 0.06
)
Earnings (loss) per share - diluted
$
( 0.07
)
$
( 0.06
)
Earnings per unit
Numerator:
Net income (loss) attributable to Aimco Operating Partnership
$
( 10,740
)
$
( 9,291
)
Net income (loss) allocated to Aimco Operating Partnership participating securities
—
—
Net income (loss) attributable to Aimco Operating Partnership's common unit holders
$
( 10,740
)
$
( 9,291
)
Denominator - units
Basic weighted-average OP Units outstanding
148,257
153,631
Diluted OP Unit equivalents outstanding
—
—
Diluted weighted-average OP Units outstanding
148,257
153,631
Earnings (loss) per unit - basic
$
( 0.07
)
$
( 0.06
)
Earnings (loss) per unit - diluted
$
( 0.07
)
$
( 0.06
)
Note 5 — Fair Value Measure ments and Disclosures
Recurring Fair Value Measurements
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. These instruments are presented as Interest rate options in our Condensed Consolidated Balance Sheets . As of March 31, 2024, we held interest rate caps with a $ 627.4 million notional value. These instruments were acquired for $ 5.8 million, and the fair value of these instruments is $ 5.1 million as noted in the table below.
On a recurring basis, we measure at fair value our interest rate options. Our interest rate options are classified within Level 2 of the GAAP fair value hierarchy, and we estimate their fair value using pricing models that rely on observable market information, including contractual terms, market prices, and interest rate yield curves. 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, 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 March 31, 2024 and December 31, 2023, we had investments in stock of $ 2.4 million and $ 2.9 million, respectively, classified within Level 1 of the GAAP fair value hierarchy. In addition, as of March 31, 2024 and December 31, 2023, we have investments in property technology funds of $ 2.8 million and $ 2.5 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. See Note 3 for further information regarding unfunded commitments related to these investments.
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The following table summarizes the fair value for our interest rate options, investments in stock, and our investments in real estate technology funds as of March 31, 2024 and December 31, 2023 ( in thousands ):
As of March 31, 2024
As of December 31, 2023
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Interest rate options
$
5,053
$
—
$
5,053
$
—
$
5,237
$
—
$
5,237
$
—
Investments in stock
2,409
2,409
—
—
2,868
2,868
—
—
Investments in real estate technology funds (1)
2,845
—
—
—
2,508
—
—
—
(1) Investments measured at fair value using NAV as a practical expedient are not classified in the fair value hierarchy.
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, 2024, and December 31, 2023, 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 non-recourse 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 non-recourse construction loans as of March 31, 2024 and December 31, 2023 ( in thousands ):
As of March 31, 2024
As of December 31, 2023
Carrying Value
Fair Value
Carrying Value
Fair Value
Non-recourse property debt
$
851,515
$
800,635
$
852,502
$
807,240
Non-recourse construction loans
343,165
342,817
309,521
309,170
Total
$
1,194,680
$
1,143,452
$
1,162,023
$
1,116,410
Note 6 — Variable Interest Entities
We evaluate our investments in limited partnerships and similar entities in accordance with applicable consolidation guidance to determine whether each such entity is a VIE. The accounting standards for the consolidation of VIEs require qualitative assessments to determine whether we are the primary beneficiary. The primary beneficiary analysis is based on power and economics. We conclude that we are the primary beneficiary and consolidate the VIE if we have both: (i) the power to direct the activities of the VIE that most significantly influence the VIE's economic performance, and (ii) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Significant judgments and assumptions related to these determinations include, but are not limited to, estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions.
We consolidate Aimco Operating Partnership, a VIE of which we are the primary beneficiary. Through Aimco Operating Partnership, we consolidate all VIEs for which we are the primary beneficiary. Substantially all of our assets and liabilities are those of Aimco Operating Partnership.
Aimco Operating Partnership is the primary beneficiary of, and therefore consolidates, five VIEs that own interests in real estate. Assets of our consolidated VIEs must first be used to settle the liabilities of those VIEs. The consolidated VIEs' creditors do not have recourse to the general credit of Aimco Operating Partnership.
In addition, we have eight unconsolidated VIEs for which we are not the primary beneficiary because we are not their primary decision maker. The eight unconsolidated VIEs include four unconsolidated real estate partnerships that hold four apartment communities in San Diego, California, the Mezzanine Investment, our passive equity investment in IQHQ, and our two unconsolidated investments in land held for development in Miami, Florida and Bethesda, Maryland. Our maximum exposure to loss because of our involvement with the unconsolidated VIEs is limited to the carrying value of their assets.
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The details of our consolidated and unconsolidated VIEs, excluding those of Aimco Operating Partnership, are summarized in the table below as of March 31, 2024 and December 31, 2023 ( in thousands, except for VIE count ):
As of March 31, 2024
As of December 31, 2023
Consolidated
Unconsolidated
Consolidated
Unconsolidated
Count of VIEs
5
8
5
8
Assets
Net real estate
$
505,287
$
—
$
466,719
$
—
Cash and cash equivalents
1,771
—
3,940
—
Interest rate options
3,734
—
3,253
—
Unconsolidated real estate partnerships
—
23,282
—
23,125
Notes receivable
17,747
—
17,432
—
Right-of-use lease assets - finance leases
108,673
—
108,992
—
Other assets, net
17,423
59,823
16,140
59,823
Liabilities
Non-recourse construction loans, net
235,820
—
201,103
—
Lease liabilities - finance leases
119,269
—
118,697
—
Accrued liabilities and other
39,109
31,642
35,881
31,018
Note 7 — Lease Arrangements
Aimco as Lessor
The majority of lease payments we receive from our residents and tenants are fixed. We receive variable payments from our residents and commercial tenants primarily for utility reimbursements and other services.
For the three months ended March 31, 2024 and 2023, our total lease income was comprised of the following amounts for all residential and commercial property leases ( in thousands ):
Three Months Ended March 31,
2024
2023
Fixed lease income
$
45,933
$
41,005
Variable lease income
4,199
3,161
Total lease income
$
50,132
$
44,166
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 Oak Shore.
As of March 31, 2024 and December 31, 2023, our finance leases had weighted-average remaining terms of 93.1 years and 93.4 years, respectively, and weighted-average discount rates of 6.1 % and 6.1 %, respectively.
For the three months ended March 31, 2024, amortization related to finance leases was $ 0.2 million, net of amounts capitalized, compared to zero , net of amounts capitalized, for the three months ended March 31, 2023. In addition, for the three months ended March 31, 2024, we capitalized $ 0.9 million of lease costs associated with active development and redevelopment projects on certain of the underlying property and ground lease assets, compared to $ 2.1 million for the same period in 2023.
Operating Lease Arrangements
We have operating leases primarily for corporate office space. Substantially all of the payments under our office leases are fixed. As of March 31, 2024 and December 31, 2023, our operating leases had weighted-average remaining terms of 4.9 years and 5.2 years, respectively, and weighted-average discount rates of 3.4 % , and 3.3 %, respectively.
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We record operating lease expense on a straight-line basis over the lease term. For each of the three month periods ended March 31, 2024 and 2023, we recognized total operating lease expense of $ 0.4 million. As of March 31, 2024 and December 31, 2023, operating lease right-of-use lease assets of $ 5.8 million and $ 6.2 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets . As of March 31, 2024 and December 31, 2023, operating lease liabilities of $ 10.9 million and $ 11.5 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. We determine if an arrangement is or contains a lease at inception. We have lease agreements with lease and non-lease components, and have elected to not separate these components for all classes of underlying assets. Leases with an initial term of 12 months or less are not recorded in our Condensed Consolidated Balance Sheets . Leases with initial terms greater than 12 months are recorded as operating or finance leases in our Condensed Consolidated Balance Sheets .
Office Space Sublease
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 each of the three month periods ended March 31, 2024 and 2023, we recognized sublease income of $ 0.4 million.
Annual Future Minimum Lease Payments
Combined minimum annual lease payments under operating and finance leases, a nd sublease income that offsets our operating lease rent, are as follows as of March 31, 2024 ( in thousands ):
Sublease Income
Operating Lease Future Minimum Rent
Finance Leases Future Minimum Payments
Remainder of 2024
$
1,061
$
1,846
$
2,691
2025
1,423
2,355
4,437
2026
1,433
2,341
4,954
2027
1,443
2,380
5,483
2028
1,453
2,181
5,596
Thereafter
630
805
1,427,620
Total
$
7,443
11,908
1,450,781
Less: Discount
( 980
)
( 1,331,512
)
Total lease liabilities
$
10,928
$
119,269
Note 8 — Business Segments
We have three segments: (i) Development and Redevelopment; (ii) Operating; and (iii) Other.
Our Development and Redevelopment segment consists of rental communities that are under construction or have not achieved stabilization, as well as land held for development. As of March 31, 2024 , our Development and Redevelopment segment consists of 10 rental communities, three of which were under construction.
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, 2023 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, 2024, we revised the information regularly reviewed by our chief operating decision maker ("CODM") to assess our operating performance. As a result, we reclassified The Benson Hotel from the Development and Redevelopment segment to the Other segment. In addition, during the first quarter of 2024, we disposed of St. George Villas, which was previously reported within our Other segment. Prior period segment information has been recast based upon our current segment population, and is consistent with how our CODM evaluates the business.
Our Other segment consists of properties currently owned that are not included in our Development and Redevelopment or Operating segments. Our Other segment includes 1001 Brickell Bay Drive, our only office building, and The Benson Hotel, our only hotel.
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Our CODM uses cash flow, construction timeline to completion, and actual versus budgeted results to evaluate our properties in our Development and Redevelopment segment. 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, excluding utility reimbursements, less direct property operating expenses, net of utility reimbursements, for the consolidated communities; but
• 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, and investments in real estate technology funds; and
• 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, 2024 and 2023 ( in thousands ):
Development and Redevelopment
Operating
Other
Proportionate
and Other Adjustments (1)
Corporate and Amounts Not Allocated to Segments (2)
Consolidated
Three Months Ended March 31, 2024
Rental and other property revenues
$
4,672
$
38,639
$
4,764
$
2,088
$
40
$
50,203
Property operating expenses
2,597
11,503
2,983
2,152
1,964
21,199
Other operating expenses not allocated
to segments (3)
—
—
—
—
28,017
28,017
Total operating expenses
2,597
11,503
2,983
2,152
29,981
49,216
Proportionate property net operating
income (loss)
2,075
27,136
1,781
( 64
)
( 29,941
)
987
Other items included in income before
income tax (4)
—
—
—
—
( 10,913
)
( 10,913
)
Income (loss) before income tax
$
2,075
$
27,136
$
1,781
$
( 64
)
$
( 40,854
)
$
( 9,926
)
Development and Redevelopment
Operating
Other
Proportionate
and Other Adjustments (1)
Corporate and Amounts Not Allocated to Segments (2)
Consolidated
Three Months Ended March 31, 2023
Rental and other property revenues
$
2,201
$
36,672
$
3,671
$
1,656
$
68
$
44,268
Property operating expenses
1,676
11,186
1,529
1,657
1,456
17,504
Other operating expenses not allocated
to segments (3)
—
—
—
—
24,674
24,674
Total operating expenses
1,676
11,186
1,529
1,657
26,130
42,178
Proportionate property net operating
income (loss)
525
25,486
2,142
( 1
)
( 26,062
)
2,090
Other items included in income before
income tax (4)
—
—
—
—
( 12,039
)
( 12,039
)
Income (loss) before income tax
$
525
$
25,486
$
2,142
$
( 1
)
$
( 38,101
)
$
( 9,949
)
(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, 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 and general and administrative expenses.
(4) Other items included in Income before income tax benefit (expense) 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.
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Net real estate and non-recourse property debt, net, of our segments as of March 31, 2024 and December 31, 2023, were as follows ( in thousands ):
Development and Redevelopment
Operating
Other
Corporate and Amounts Not Allocated to Segments (1)
Total
As of March 31, 2024
Buildings and improvements
$
687,151
$
711,541
$
239,498
$
—
$
1,638,190
Land
206,558
262,409
151,521
—
620,488
Total real estate
893,709
973,950
391,019
—
2,258,678
Accumulated depreciation
( 15,820
)
( 497,297
)
( 84,263
)
—
( 597,380
)
Net real estate
$
877,889
$
476,653
$
306,756
$
—
$
1,661,298
Non-recourse property debt and construction loans, net
$
336,330
$
764,826
$
80,847
$
—
$
1,182,003
Development and Redevelopment
Operating
Other
Corporate and Amounts Not Allocated to Segments (1)
Total
As of December 31, 2023
Buildings and improvements
$
644,154
$
709,051
$
239,089
$
1,508
$
1,593,802
Land
206,820
262,409
151,521
71
620,821
Total real estate
850,974
971,460
390,610
1,579
2,214,623
Accumulated depreciation
( 11,589
)
( 489,206
)
( 78,612
)
( 1,395
)
( 580,802
)
Net real estate
$
839,385
$
482,254
$
311,998
$
184
$
1,633,821
Non-recourse property debt and construction loans, net
$
301,424
$
765,372
$
80,739
$
206
$
1,147,741
(1) During the quarter ended March 31, 2024, we disposed of St. George Villas, and therefore it is not included in our segment balance sheets at March 31, 2024. We added a Corporate segment to the tables above for presentation purposes to display these assets and the associated debt as of March 31, 2024 and December 31, 2023 , respectively.
In addition to the amounts disclosed in the tables above, as of March 31, 2024 the Development and Redevelopment segment right-of-use lease assets and lease liabilities aggregated to $ 108.7 million and $ 119.3 million, respectively, and as of December 31, 2023 , aggregated to $ 109.0 million and $ 118.7 million, respectively. As of March 31, 2024 , right-of-use lease assets and lease liabilities primarily relate to our investments in Upton Place, Strathmore, and Oak Shore.
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Table of Contents
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.