What changed in this filing

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Item 1. Financial Statements

2024-11-07 compared with 2024-08-07 · 160 added, 126 removed, 656 unchanged (30% of the section changed)

3 unchanged sentences

(In thousands, except share data)

June 30, 2024

September 30, 2024

December 31, 2023

18 unchanged sentences

Commitments and contingencies (Note 3)

Equity ( 510,587,500 shares authorized at both June 30, 2024 and December 31, 2023):

Common Stock, $ 0.01 par value, 137,167,349 and 140,576,102 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

Equity ( 510,587,500 shares authorized at both September 30, 2024 and December 31, 2023):

Common Stock, $ 0.01 par value, 136,914,387 and 140,576,102 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

Additional paid-in capital

8 unchanged sentences

(In thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Rental and other property revenues

29 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended June 30, 2024 and 2023

For the Three Months Ended September 30, 2024 and 2023

(In thousands)

2 unchanged sentences

Retained Earnings (Accumulated Deficit)

Balances at March 31, 2023

Balances at June 30, 2023

Net income (loss)

Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco OP

Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership

Share-based compensation expense

2 unchanged sentences

Common stock repurchased

Other common stock issuances

Balances at September 30, 2023

Balances at June 30, 2024

Balances at March 31, 2024

Net income (loss)

Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco OP

Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership

Share-based compensation expense

2 unchanged sentences

Common stock repurchased

Balances at June 30, 2024

Other common stock issuances, net of withholding taxes

Balances at September 30, 2024

See notes to condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Six Months Ended June 30, 2024 and 2023

For the Nine Months Ended September 30, 2024 and 2023

(In thousands)

4 unchanged sentences

Net income (loss)

Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco OP

Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership

Share-based compensation expense

3 unchanged sentences

Other common stock issuances

Balances at June 30, 2023

Balances at September 30, 2023

Balances at December 31, 2023

Net income (loss)

Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco OP

Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership

Share-based compensation expense

3 unchanged sentences

Other common stock issuances, net of withholding taxes

Balances at June 30, 2024

Balances at September 30, 2024

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

9 unchanged sentences

Gain on dispositions of real estate

Income from unconsolidated real estate partnerships

Loss (income) from unconsolidated real estate partnerships

Amortization of debt issuance costs and other

8 unchanged sentences

Distributions received from unconsolidated real estate partnerships

Investment in unconsolidated real estate partnerships

Purchase of treasury bill

Other investing activities

4 unchanged sentences

Proceeds from sale of participation in Mezzanine Investment

Payments of deferred loan costs

Proceeds from interest rate contracts

13 unchanged sentences

END OF PERIOD

(1) Accrued capital expenditures wer e $ 34.5 mil lion and $ 62.8 million as of June 30, 2024 and 2023 , respectively.

(1) Accrued capital expenditures wer e $ 31.6 milli on and $ 54.3 million as of September 30, 2024 and 2023 , respectively.

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

June 30, 2024

September 30, 2024

December 31, 2023

29 unchanged sentences

(In thousands, except per unit data)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Rental and other property revenues

27 unchanged sentences

CONDENSED CONSOLIDATED S TATEMENTS OF PARTNERS’ CAPITAL

For the Three Months Ended June 30, 2024 and 2023

For the Three Months Ended September 30, 2024 and 2023

(In thousands)

7 unchanged sentences

Estate Partnerships

Balances at March 31, 2023

Balances at June 30, 2023

Net income (loss)

Redemption of OP Units held by third parties and reallocation of limited partners' interests in Aimco OP

Redemption of OP Units held by third parties and reallocation of limited partners' interests in Aimco Operating Partnership

Share-based compensation expense

2 unchanged sentences

Redemption of OP Units held by Aimco

Balances at September 30, 2023

Balances at June 30, 2024

Balances at March 31, 2024

Net income (loss)

Redemption of OP Units held by third parties and reallocation of limited partners' interests in Aimco OP

Redemption of OP Units held by third parties and reallocation of limited partners' interests in Aimco Operating Partnership

Share-based compensation expense

2 unchanged sentences

Redemption of OP Units held by Aimco

Balances at June 30, 2024

Other OP Unit issuances, net of withholding taxes

Balances at September 30, 2024

See notes to condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

For the Six Months Ended June 30, 2024 and 2023

For the Nine Months Ended September 30, 2024 and 2023

(In thousands)

9 unchanged sentences

Net income (loss)

Redemption of OP Units held by third parties and reallocation of limited partners' interests in Aimco OP

Redemption of OP Units held by third parties and reallocation of limited partners' interests in Aimco Operating Partnership

Share-based compensation expense

3 unchanged sentences

Other OP Unit issuances

Balances at June 30, 2023

Balances at September 30, 2023

Balances at December 31, 2023

Net income (loss)

Redemption of OP Units held by third parties and reallocation of limited partners' interests in Aimco OP

Redemption of OP Units held by third parties and reallocation of limited partners' interests in Aimco Operating Partnership

Share-based compensation expense

3 unchanged sentences

Other OP Unit issuances, net of withholding taxes

Balances at June 30, 2024

Balances at September 30, 2024

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

9 unchanged sentences

Gain on dispositions of real estate

Income from unconsolidated real estate partnerships

Loss (income) from unconsolidated real estate partnerships

Amortization of debt issuance costs and other

8 unchanged sentences

Distributions received from unconsolidated real estate partnerships

Investment in unconsolidated real estate partnerships

Purchase of treasury bill

Other investing activities

4 unchanged sentences

Proceeds from sale of participation in Mezzanine Investment

Payments of deferred loan costs

Proceeds from interest rate contracts

13 unchanged sentences

END OF PERIOD

(1) Accrued capital expenditures were $ 34.5 mill ion and $ 62.8 million as of June 30, 2024 and 2023 , respectively.

(1) Accrued capital expenditures were $ 31.6 millio n and $5 4.3 million as of September 30, 2024 and 2023 , respectively.

See notes to condensed consolidated financial statements.

2 unchanged sentences

NOTES TO CONDENSED CONSOLID ATED FINANCIAL STATEMENTS

June 30, 2024

September 30, 2024

Note 1 — Organization

5 unchanged sentences

(“Aimco Operating Partnership”).

As of June 30, 2024, Aimco owned 92.3 % of the legal interest in the common partnership units of Aimco Operating Partnership and 94.7 % of the economic interest in Aimco Operating Partnership.

As of September 30, 2024, Aimco owned 92.3 % of the legal interest in the common partnership units of Aimco Operating Partnership and 94.7 % of the economic interest in Aimco Operating Partnership.

The remaining 7.7 % legal interest is owned by limited partners.

As the sole general partner of Aimco Operating Partnership, Aimco has exclusive control of Aimco Operating Partnership’s day-to-day management.

This filing combines the quarterly reports on Form 10-Q for the quarterly period ended June 30, 2024, of Aimco and Aimco Operating Partnership.

This filing combines the quarterly reports on Form 10-Q for the quarterly period ended September 30, 2024, of Aimco and Aimco Operating Partnership.

Where it is important to distinguish between the two entities, we refer to them specifically.

2 unchanged sentences

multifamily sector.

At June 30, 2024, our entire portfolio of operating residential apartment communit ies includes 5,600 apartment homes within 21 consolidated stabilized operating properties, a fully renovated waterfront property with 276 units, a substantially complete 689 -unit community with 105,000 square feet of retail space, and four unconsolidated properties.

Additionally, we have a residential community under construction with 146 of 220 planned apartment homes constructed and 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 b uilding that is part of an assemblage with an adjacent apartment building, and land parcels held for development.

At September 30, 2024, our entire portfolio of operating residential apartment communit ies includes 5,600 apartment homes within 21 consolidated stabilized operating properties, a fully renovated waterfront property with 276 units, a substantially complete 689 -unit community with 105,000 square feet of retail space, a substantially complete 220 -unit community, and four unconsolidated properties.

Additionally, we have a single family rental community that is under construction with 16 planned homes and eight accessory dwelling units, a waterfront ground-up development with 114 planned 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;

8 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 and six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

Operating results for the three and nine months ended September 30, 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 entities.

16 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 OP Units held by Aimco) outstanding during the period.

For the periods ended June 30, 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.

For the periods ended September 30, 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.

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 June 30, 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 with residential apartment communities under construction and in lease-up.

Redeemable noncontrolling interests in consolidated real estate partnerships as of September 30, 2024, consists of the following:

(i) a preferred equity interest in an entity that owns a portfolio of operating apartment communities, (ii) equity interests in two separate consolidated joint ventures with residential apartment communities in lease-up, and (iii) a preferred equity interest in an entity that owns a waterfront ground-up development.

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 June 30, 2024.

These interests are presented as Redeemable noncontrolling interests in consolidated real estate partnerships in our Condensed Consolidated Balance Sheets as of September 30, 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 June 30, 2024 ( in thousands ):

The following table shows changes in our redeemable noncontrolling interests in consolidated real estate partnerships from December 31, 2023 to September 30, 2024 ( in thousands ):

Balance at Beginning of Period

1 unchanged sentence

Distributions

Balance at June 30, 2024

Balance at September 30, 2024

(1) In September 2024, we secured a $ 55.5 million preferred equity commitment from a third-party for the development of a luxury water-front rental development in Miami, Florida, as further discussed in Note 6 .

Costs incurred were treated as a discount to Redeemable noncontrolling interests in consolidated real estate partnerships in accordance with GAAP .

Mezzanine Investment

6 unchanged sentences

We have the risks and rewards of ownership of the Mezzanine Investment.

The carrying value of the Mezzanine Investment was zero as of June 30, 2024.

The carrying value of the Mezzanine Investment was zero as of September 30, 2024.

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

8 unchanged sentences

In 2020, Aimco Predecessor made a $ 50.0 million commitment to IQHQ, a privately held life sciences real estate development company.

In 2022, after fully funding our commitment, 22 % of our original investment in IQHQ was redeemed for $ 16.5 million.

Our remaining investment in IQHQ, with a cost basis of $ 39.2 million, was adjusted upward to $ 59.7 million at the same per share value as the cash redemption per share.

We account for our investment in IQHQ using the measurement alternative.

Under the measurement alternative, the investment is measured at cost less impairment if any needed, with subsequent adjustments for observable price changes of identical or similar investments of the same issuer since it does not have a readily determinable fair value.

On a periodic basis, we perform a qualitative impairment assessment on our investment in IQHQ in accordance with GAAP.

During the three months ended June 30, 2024, we determined that our investment in IQHQ was impaired after consideration of factors, including adverse capital market conditions, increased real estate development costs, and IQHQ's financial condition.

As a result, we recorded a non-cash impairment charge of $ 47.0 million to reduce the carrying value of the investment in IQHQ to $ 12.7 million as of June 30, 2024.

The non-cash impairment is reflected in Realized and unrealized gains (losses) on equity investments in our Condensed Consolidated Statements of Operations for the periods ended June 30, 2024, and as a reduction in the carrying value of Other investments included in Other assets, net in our Condensed Consolidated Balance Sheets as of June 30, 2024.

No impairment losses were recognized during the periods ended June 30, 2023.

As of June 30, 2024

In 2022, after fully funding our commitment, 22 % of our original investment in IQHQ was redeemed for $ 16.5 million.

Our remaining investment in IQHQ, with a cost basis of $ 39.2 million, was adjusted upward to $ 59.7 million at the same per share value as the cash redemption per share.

During the second quarter of 2024, we recorded a non-cash impairment charge of $ 47.0 million to reduce the carrying value of the investment in IQHQ to $ 12.7 million.

We did not record additional impairment during the three months ended September 30, 2024.

The non-cash impairment is reflected in Realized and unrealized gains (losses) on equity investments in our Condensed Consolidated Statements of Operations for the nine months ended September 30, 2024, and as a reduction in the carrying value of Other investments included in Other assets, net in our Condensed Consolidated Balance Sheets as of September 30, 2024 .

No impairment losses were recognized during the period ended September 30, 2023 .

As of September 30, 2024

As of December 31, 2023

Equity ownership in IQHQ under measurement alternative:

Initial cost of remaining balance

Cumulative upward adjustments

7 unchanged sentences

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

For the three and six months ended June 30, 2024, we had consolidated net losses subject to tax of $ 5.3 million and $ 11.9 million, respectively.

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

For the three months ended June 30, 2024, we recognized an income tax benefit of $ 2.2 million, compared to income tax benefit of $ 0.4 million during the same period in 2023.

The increase is due primarily to the tax effect of fewer gains, increased depreciation, and interest expense associated with properties owned by, and activities of, our TRS entities.

For the six months ended June 30, 2024, we recognized an income tax benefit of $ 4.9 million, compared to income tax benefit of $ 4.6 million during the same period in 2023.

The increase is due primarily to the tax effect of fewer gains, increased depreciation, and interest expense associated with properties owned by, and activities of, our TRS entities.

This increase was partially offset by 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.

For the three and nine months ended September 30, 2024, we had consolidated net losses subject to tax of $ 9.7 million and $ 21.6 million, respectively.

For the three and nine months ended September 30, 2023, we had consolidated net losses subject to income tax of $ 5.0 million and $ 12.4 million, respectively.

For the three months ended September 30, 2024, we recognized an income tax benefit of $ 3.8 million, compared to income tax benefit of $ 6.2 million during the same period in 2023.

The decrease is due primarily to a change in estimate associated with finalizing the 2022 tax returns in the third quarter of 2023.

For the nine months ended September 30, 2024, we recognized an income tax benefit of $ 8.7 million, compared to income tax benefit of $ 10.8 million during the same period in 2023 .

The decrease is due primarily to a change in estimate associated with finalizing the 2022 tax returns in third quarter of 2023, partially offset by the tax effect of fewer gains, increased depreciation, and interest expense associated with properties owned by, and activities of, our TRS entities.

Use of Estimates

8 unchanged sentences

Other Assets, net

Other assets were comprised of the following amounts as of June 30, 2024 and December 31, 2023 ( in thousands ):

June 30, 2024

Other assets were comprised of the following amounts as of September 30, 2024 and December 31, 2023 ( in thousands ):

September 30, 2024

December 31, 2023

6 unchanged sentences

Corporate fixed assets

Accounts receivable, net of allowances of $ 215 and $ 373 as of June 30, 2024 and December 31, 2023, respectively

Accounts receivable, net of allowances of $ 218 and $ 373 as of September 30, 2024 and December 31, 2023, respectively

Deferred tax assets

2 unchanged sentences

(1) We account for our Interest rate contracts as non-designated hedges.

(2) See Note 5 for further information regarding the nonrecurring fair value measurement of an unconsolidated real estate partnership during the three months ended September 30, 2024.

Revenue from contracts with customers

We apply ASC 606, Revenue from Contracts with Customers , in recognizing revenue from our operations at The Benson Hotel.

The Benso n Hotel revenues consist of amounts derived from hotel operations, including room sales, food and beverage sales, and other ancillary hotel service revenues.

The Benson Hotel revenues consist of amounts derived from hotel operations, including room sales, food and beverage sales, and other ancillary hotel service revenues.

We recognize revenue from the rental of the hotel rooms and guest services when we satisfy performance obligations as evidenced by the transfer of control when rooms are occupied, and services have been provided.

Food and beverage sales are recognized when the customer has been serviced or at the time the transaction occurs.

Our contracts generally have a single performance obligation, recognized at a point in time.

The Benson Hotel generated revenues of $ 1.9 million and $ 1.0 million for the three months ended September 30, 2024 and 2023 , respectively, and $ 4.9 million and $ 1.4 million for the nine months ended September 30, 2024 and 2023 , respectively.

Recent Accounting Pronouncements

15 unchanged sentences

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 June 30, 2024, we had remaining commitments for construction-related contracts of $ 17.4 million, with $ 64.2 million undrawn on our non-recourse construction loans.

As of June 30, 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 $ 1.7 million related to our investments in property technology funds invested in entities that develop technology related to the real estate industry.

As of September 30, 2024, we had remaining commitments for construction-related contracts of $ 163.7 million, with $ 198.8 million undrawn on our non-recourse construction loans.

As of September 30, 2024, we have remaining commitments of $ 1.5 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.

10 unchanged sentences

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 and six months ended June 30, 2024 and 2023, because the effect of their inclusion would have been antidilutive.

As of June 30, 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.

The Common Stock and OP Unit equivalents were not included in the computation of diluted earnings per share and unit for the three and nine months ended September 30, 2024 and 2023, because the effect of their inclusion would have been antidilutive.

As of September 30, 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.

1 unchanged sentence

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 and six months ended June 30, 2024 and 2023, because the effect of their inclusion would have been antidilutive.

As of June 30, 2024, participating securities that could potentially dilute basic earnings per share or unit in future periods totaled 2.4 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, 2024 and 2023, are as follows ( in thousands, except per share and per unit data ):

Participating securities were not included in the computation of diluted earnings per share and unit for the three and nine months ended September 30, 2024 and 2023, because the effect of their inclusion would have been antidilutive.

As of September 30, 2024, participating securities that could potentially dilute basic earnings per share or unit in future periods totaled 2.3 million.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the three and nine months ended September 30, 2024 and 2023, are as follows ( in thousands, except per share and per unit data ):

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Earnings per share

22 unchanged sentences

These instruments are presented as Interest rate contracts in Other assets, net in our Condensed Consolidated Balance Sheets .

As of June 30, 2024, we held interest rate caps with a $ 627.4 million notional value.

These instruments were acquired for $ 5.7 million, and the fair value of these instruments as of June 30, 2024 and December 31, 2023 is $ 3.7 million and $ 5.2 million, respectively.

As of September 30, 2024, we held interest rate caps with a maximum notional value of $ 799.4 million.

These instruments were acquired for $ 6.3 million, and the fair value of these instruments as of September 30, 2024 and December 31, 2023 is $ 1.7 million and $ 5.2 million, respectively.

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

2 unchanged sentences

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 contracts , and any proceeds are reflected in Proceeds from interest rate contracts in our Condensed Consolidated Statements of Cash Flows .

As of June 30, 2024 and December 31, 2023, we had investments in stock of $ 2.1 million and $ 2.9 million, respectively, classified within Level 1 of the GAAP fair value hierarchy.

In addition, as of June 30, 2024 and December 31, 2023, we have investments in property technology funds of $ 3.0 million and $ 2.5 million, respectively, in entities that develop technology related to the real estate industry.

As of September 30, 2024 and December 31, 2023, we had investments in stock of $ 1.6 million and $ 2.9 million, respectively, classified within Level 1 of the GAAP fair value hierarchy.

In addition, as of September 30, 2024 and December 31, 2023, we have investments in property technology funds of $ 3.2 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.

The following table summarizes the fair value for our interest rate contracts, investments in stock, and our investments in real estate technology funds as of June 30, 2024 and December 31, 2023 ( in thousands ):

As of June 30, 2024

The following table summarizes the fair value for our interest rate contracts, investments in stock, and our investments in real estate technology funds as of September 30, 2024 and December 31, 2023 ( in thousands ):

As of September 30, 2024

As of December 31, 2023

3 unchanged sentences

(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 and restricted cash approximated their fair value as of September 30, 2024, and December 31, 2023 and are categorized within Level 1 of the GAAP fair value hierarchy.

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 observable 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 September 30, 2024 and December 31, 2023 ( in thousands ):

As of September 30, 2024

As of December 31, 2023

Carrying Value

Non-recourse property debt

Non-recourse construction loans

Nonrecurring Fair Value Measurements

During the three and six months ended June 30, 2024, we recorded a non-cash impairment charge of $ 47.0 million related to our passive equity investment in IQHQ.

Investment in IQHQ

During the nine months ended September 30, 2024, we recorded a non-cash impairment charge of $ 47.0 million related to our passive equity investment in IQHQ.

This impairment charge was derived using a third-party valuation of IQHQ, which incorporated fair value estimates of properties owned by IQHQ.

5 unchanged sentences

Because these inputs are derived from observable market data, we have determined that the fair values of these properties are classified within Level 2 of the fair value hierarchy.

Fair Value Disclosures

We believe that the carrying value of the consolidated amounts of cash and cash equivalents and restricted cash approximated their fair value as of June 30, 2024, and December 31, 2023 and are categorized within Level 1 of the GAAP fair value hierarchy.

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 June 30, 2024 and December 31, 2023 ( in thousands ):

As of June 30, 2024

As of December 31, 2023

Carrying Value

Non-recourse property debt

Non-recourse construction loans

Unconsolidated real estate partnerships

In March 2022, we acquired an ownership interest in an unconsolidated investment in land held for development in the Edgewater neighborhood of Miami, Florida, in exchange for land that we had purchased for $ 1.8 million in January 2022 and cash of $ 0.3 million.

Subsequently, we had additional non-cash contributions of $ 5.7 million for unused transferable density rights and cash contributions of $ 0.9 million.

During the quarter ended September 30, 2024, we exercised our rights under the existing joint venture agreement, whereby our joint venture partner agreed to purchase our ownership interest in this unconsolidated investment.

As a result of the transaction, we have recognized a non-cash other than temporary impairment ("OTTI") of $ 2.6 million for the three months ended September 30, 2024, within Other income (expense), net in our Condensed Consolidated Statements of Operations.

We reduced our carrying value of the investment to the expected cash proceeds of approximately $ 6.0 million, subject to certain adjustments, to be received in the fourth quarter of 2024.

We determined this is a nonrecurring fair value measurement of the unconsolidated investment classified within Level 3 of the fair value hierarchy.

Note 6 — Variable Interest Entities

8 unchanged sentences

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.

Aimco Operating Partnership is the primary beneficiary of, and therefore consolidates, six VIEs that own interests in real estate.

Assets of our consolidated VIEs must first be used to settle the liabilities of those VIEs.

3 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 June 30, 2024 and December 31, 2023 ( in thousands, except for VIE count ):

As of June 30, 2024

The details of our consolidated and unconsolidated VIEs, excluding those of Aimco Operating Partnership, are summarized in the table below as of September 30, 2024 and December 31, 2023 ( in thousands, except for VIE count ):

As of September 30, 2024

As of December 31, 2023

4 unchanged sentences

Cash and cash equivalents

Restricted cash

Notes receivable

4 unchanged sentences

Accrued liabilities and other

In September 2024, we secured a $ 55.5 million preferred equity commitment from a third-party for the development of a luxury water-front rental development, located at 640 NE 34th Street in Miami, Florida.

In addition, we secured a non-recourse construction loan commitment for up to $ 172 million that has a maturity date of October 1, 2028 , prior to the consideration of a one year extension option.

As a result, we performed a reassessment of the entity that owns the property located at 640 NE 34th Street, concluding that it became a VIE and that we are the primary beneficiary.

While the consolidation status did not change as it was already consolidated prior to the VIE assessment, its assets and liabilities as of September 30, 2024 have been incorporated in the table above.

Note 7 — Lease Arrangements

1 unchanged sentence

Our apartment homes and commercial spaces are leased to tenants under operating leases.

As of June 30, 2024 , our apartment home leases generally have initial terms of 24 months or less.

As of June 30, 2024, our commercial space leases have initial terms betwee n 5 and 15 y ears and represent approximately 8 % to 9 % of our total revenue.

As of September 30, 2024 , our apartment home leases generally have initial terms of 24 months or less.

As of September 30, 2024, our commercial space leases have initial terms betwee n 5 and 15 y ears and represent approximately 8 % to 9 % of our total revenue.

Our apartment home leases are generally renewable at the end of the lease term, subject to potential changes in rental rates, and our commercial space leases generally have renewal options, subject to associated increases in rental rates due to market based or fixed price renewal options and other certain conditions.

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

For the three and six months ended June 30, 2024 , 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 months and six months ended June 30, 2023.

For the three and nine months ended September 30, 2024, we recognized sublease income of $ 0.4 million and $ 1.1 m illion, respectively, compared to $ 0.4 million and $ 1.1 million, respectively, for the three and nine months ended September 30, 2023.

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 and six months ended June 30, 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 June 30,

Six Months Ended June 30,

For the three and nine months ended September 30, 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

September 30,

Nine Months Ended

September 30,

Fixed lease income

1 unchanged sentence

Total lease income

Future minimum lease payments that are contractually due us from our office space sublease and commercial space leases, excluding extension options, as of June 30, 2024, are as follows (in thousands) :

Future minimum lease payments that are contractually due to us from our office space sublease and commercial space leases, excluding extension options, as of September 30, 2024, are as follows (in thousands) :

Corporate Office Sublease

6 unchanged sentences

Substantially all of our office lease payments are fixed.

See the table below for lease costs, net of capitalized finance lease costs, for the three and six months ended June 30, 2024 and 2023 ( in thousands ):

Three Months Ended June 30,

Six Months Ended June 30,

See the table below for lease costs, net of capitalized finance lease costs, for the three and nine months ended September 30, 2024 and 2023 ( in thousands ):

Three Months Ended

September 30,

Nine Months Ended

September 30,

Operating lease costs

3 unchanged sentences

Total lease costs, net of capitalized amounts

The weighted-average remaining terms and discount rates for our operating and finance leases are summarized in the table below as of June 30, 2024, and December 31, 2023:

June 30, 2024

The weighted-average remaining terms and discount rates for our operating and finance leases are summarized in the table below as of September 30, 2024, and December 31, 2023:

September 30, 2024

December 31, 2023

5 unchanged sentences

Finance leases

As of June 30, 2024 and December 31, 2023, operating lease right-of-use lease assets of $ 5.5 million and $ 6.2 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets .

As of June 30, 2024 and December 31, 2023, operating lease liabilities of $ 10.4 million and $ 11.5 million, respectively, are included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets .

As of September 30, 2024 and December 31, 2023, operating lease right-of-use lease assets of $ 5.1 million and $ 6.2 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets .

As of September 30, 2024 and December 31, 2023, operating lease liabilities of $ 9.8 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.

4 unchanged sentences

Annual Future Minimum Lease Payments

Combined annual future minimum lease payments under our operating and finance leases are as follows as of June 30, 2024 ( in thousands ):

Combined annual future minimum lease payments under our operating and finance leases are as follows as of September 30, 2024 ( in thousands ):

Operating Leases

8 unchanged sentences

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 June 30, 2024 , our Development and Redevelopment segment consists of 10 rental communities, two of which were under construction.

As of September 30, 2024 , our Development and Redevelopment segment consists of 10 properties, including two of which were under construction and two substantially completed and in lease-up.

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 in the prior year.

12 unchanged sentences

• 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 June 30, 2024 and 2023 ( 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 September 30, 2024 and 2023 ( in thousands ):

Development and Redevelopment

2 unchanged sentences

Corporate and Amounts Not Allocated to Segments (2)

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Rental and other property revenues

12 unchanged sentences

Corporate and Amounts Not Allocated to Segments (2)

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Rental and other property revenues

8 unchanged sentences

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, 2024 and 2023 ( in thousands ):

The following tables present the results of operations of consolidated properties with our segments reported on a proportionate basis for the nine months ended September 30, 2024 and 2023 ( in thousands ):

Development and Redevelopment

2 unchanged sentences

Corporate and Amounts Not Allocated to Segments (2)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Rental and other property revenues

12 unchanged sentences

Corporate and Amounts Not Allocated to Segments (2)

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Rental and other property revenues

14 unchanged sentences

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

Net real estate and non-recourse property debt, net, of our segments as of June 30, 2024 and December 31, 2023, were as follows ( in thousands ):

Net real estate and non-recourse property debt, net, of our segments as of September 30, 2024 and December 31, 2023, were as follows ( in thousands ):

Development and Redevelopment

Corporate and Amounts Not Allocated to Segments (1)

As of June 30, 2024

As of September 30, 2024

Buildings and improvements

12 unchanged sentences

(1) During the first quarter of 2024, we disposed of St.

George Villas, and therefore it is not included in our segment balance sheets at June 30, 2024.

We added a column to the tables above for presentation purposes to display these assets and the associated debt as of June 30, 2024 and December 31, 2023 , respectively.

In addition to the amounts disclosed in the tables above, as of June 30, 2024 the Development and Redevelopment segment right-of-use lease assets and lease liabilities aggregated to $ 108.4 million and $ 120.4 million, respectively, and as of December 31, 2023 , aggregated to $ 109.0 million and $ 118.7 million, respectively.

As of June 30, 2024 , right-of-use lease assets and lease liabilities primarily relate to our investments in Upton Place, Strathmore, and Oak Shore.

George Villas, and therefore it is not included in our segment balance sheets at September 30, 2024.

We added a column to the tables above for presentation purposes to display these assets and the associated debt as of September 30, 2024 and December 31, 2023 , respectively.

In addition to the amounts disclosed in the tables above, as of September 30, 2024 the Development and Redevelopment segment right-of-use lease assets and lease liabilities aggregated to $ 108.0 million and $ 121.3 million, respectively, and as of December 31, 2023 , aggregated to $ 109.0 million and $ 118.7 million, respectively.

As of September 30, 2024 , right-of-use lease assets and lease liabilities primarily relate to our investments in Upton Place, Strathmore, and Oak Shore.

Note 9 — Subsequent Events

The Hamilton, a 276 -unit apartment building located in Miami, Florida, and on which Aimco completed a major redevelopment and lease-up during the fall of 2023, is under contract for $ 190.0 million.

The buyer's deposit became non-refundable in October 2024, and t he sale is expected to close in the fourth quarter of 2024.

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