APARTMENT INVESTMENT & MANAGEMENT CO 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The independent registered public accounting firms' reports, consolidated financial statements and schedule listed in the “Index to Financial Statements” on page F-1 of this Annual Report are filed as part of this report and incorporated herein by this reference. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A. CONTROL S AND PROCEDURES Aimco Disclosure Controls and Procedures Aimco's management, with the participation of Aimco's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based on such evaluation, Aimco's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, Aimco's disclosure controls and procedures are effective. Management’s Report on Internal Control Over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, Aimco's principal executive and principal financial officers and effected by Aimco's Board, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that: • pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets; • provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and 40 • provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of Aimco's internal control over financial reporting as of December 31, 2024. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013 Framework). Based on their assessment, management concluded that, as of December 31, 2024, Aimco's internal control over financial reporting is effective. Aimco's independent registered public accounting firm has issued an attestation report on Aimco's internal control over financial reporting. Changes in Internal Control Over Financial Reporting There were no changes in the internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting of Aimco. 41 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholders Apartment Investment and Management Company Opinion on internal control over financial reporting We have audited the internal control over financial reporting of Apartment Investment and Management Company (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2024, and our report dated February 24, 2025 expressed an unqualified opinion on those financial statements. Basis for opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and limitations of internal control over financial reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ GRANT THORNTON LLP Denver, Colorado February 24, 2025 42 Aimco Operating Partnership Disclosure Controls and Procedures Aimco Operating Partnership’s management, with the participation of Aimco Operating Partnership’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based on such evaluation, Aimco Operating Partnership’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, Aimco Operating Partnership’s disclosure controls and procedures are effective. Management’s Report on Internal Control Over Financial Reporting Aimco Operating Partnership’s management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, Aimco Operating Partnership's principal executive and principal financial officers and effected by Aimco Operating Partnership's Board, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that: • pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets; • provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and • provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of Aimco Operating Partnership’s internal control over financial reporting as of December 31, 2024. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013 Framework). Based on their assessment, management concluded that, as of December 31, 2024, Aimco Operating Partnership’s internal control over financial reporting is effective. Aimco Operating Partnership’s independent registered public accounting firm has issued an attestation report on Aimco Operating Partnership’s internal control over financial reporting. Changes in Internal Control Over Financial Reporting There were no changes in the internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting of Aimco Operating Partnership. 43 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Partners Aimco OP L.P. Opinion on internal control over financial reporting We have audited the internal control over financial reporting of Aimco OP L.P. (a Maryland corporation) and subsidiaries (the “Partnership”) as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Partnership as of and for the year ended December 31, 2024, and our report dated February 24, 2025 expressed an unqualified opinion on those financial statements. Basis for opinion The Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and limitations of internal control over financial reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ GRANT THORNTON LLP Denver, Colorado February 24, 2025 44 ITEM 9B. OTH ER INFORMATION During the three months ended December 31, 2024, no director or officer of Aimco or Aimco Operating Partnership adopted or terminated a "Rule 10b5-1 trading agreement" or "non-Rule 10b5-1 trading agreement" each term as defined in Item 408(a) of Regulation S-K. ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 45 PAR T III ITEM 10. DIRECTORS, EXECU TIVE OFFICERS AND CORPORATE GOVERNANCE Each member of the Board of Directors of Aimco is also a director of the general partner of the Aimco Operating Partnership. The officers of Aimco are also the officers of the general partner of the Aimco Operating Partnership and hold the same titles. The information required by this item for both Aimco and the Aimco Operating Partnership is incorporated herein by reference to the 2025 Proxy Statement to be filed within 120 days after the year ended December 31, 2024. ITEM 11. EXECUTIVE COMPENSATION The information required by this item, for both Aimco and the Aimco Operating Partnership, and is incorporated herein by reference to the 2025 Proxy Statement to be filed within 120 days after the year ended December 31, 2024. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information required by this item, for both Aimco and the Aimco Operating Partnership, is incorporated herein by reference to the 2025 Proxy Statement to be filed within 120 days after the year ended December 31, 2024. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this item, for both Aimco and the Aimco Operating Partnership, is incorporated herein by reference to the 2025 Proxy Statement to be filed within 120 days after the year ended December 31, 2024. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information required by this item, for both Aimco and the Aimco Operating Partnership, is incorporated herein by reference to the 2025 Proxy Statement to be filed within 120 days after the year ended December 31, 2024. 46 PART IV ITEM 15. EXHIBITS AND FINAN CIAL STATEMENT SCHEDULES (a)(1) The financial statements listed in the Index to Financial Statements on Page F-1 of this report are filed as part of this report and incorporated herein by reference. (a)(2) The financial statement schedule listed in the Index to Financial Statements on Page F-1 of this report is filed as part of this report and incorporated herein by reference. (a)(3) Exhibits. 47 INDEX TO EXHIBITS (1) (2) EXHIBIT NO. DESCRIPTION 2.1 Separation and Distribution Agreement, effective as of December 15, 2020, by and among Apartment Investment Management Company, Aimco OP L.P., Apartment Income REIT Corp. and Apartment Income REIT, L.P. (f/k/a AIMCO Properties, L.P.) (Exhibit 2.1 to Aimco’s Current Report on Form 8-K, filed December 15, 2020, is incorporated herein by this reference) 3.1 Articles of Amendment and Restatement of Apartment Investment and Management Company (Exhibit 3.1 to Aimco’s Annual Report on Form 8-K dated October 3, 2023, is incorporated herein by this reference) 3.2 Articles Supplementary of Apartment Investment Management Company (Exhibit 3.1 to Aimco’s Current Report on Form 8-K, dated December 15, 2020, is incorporated herein by this reference) 3.3 Amended and Restated Bylaws (Exhibit 3.1 to Aimco’s Current Report on Form 8-K, dated April 28, 2023, is incorporated herein by this reference) 4.1 Description of Aimco’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (Exhibit 4.1 to Aimco’s Annual Report on Form 10-K for the year ended December 31, 2020, filed March 12, 2021, is incorporated herein by this reference) 10.1 Amended and Restated Agreement of Limited Partnership of Aimco OP L.P., effective as of December 14, 2020 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated December 15, 2020, is incorporated herein by this reference) 10.2 Credit Agreement, dated as of December 16, 2020, by and among Apartment Investment and Management Company, AIMCO OP L.P., certain subsidiary loan parties party thereto, the lenders party thereto and PNC Bank, National Association, as administrative agent, swingline loan lender and letter of credit issuing lender. (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, filed December 16, 2020, is incorporated herein by reference) 10.3 Amended Aimco Severance Policy, effective as of October 27, 2021 (Exhibit 10.3 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.4 Powell Employment Agreement (Exhibit 10.4 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.5 2007 Stock Award and Incentive Plan (Exhibit A to Aimco’s Proxy Statement on Schedule 14A, filed March 20, 2007, is incorporated herein by this reference)* 10.6 Form of Non-Qualified Stock Option Agreement (2007 Stock Award and Incentive Plan) (Exhibit 10.3 to Aimco’s Current Report on Form 8-K, filed April 30, 2007, is incorporated herein by this reference)* 10.7 Aimco 2015 Stock Award and Incentive Plan (as amended and restated January 31, 2017) (Exhibit 10.2 to Aimco’s Current Report on Form 8-K, filed January 31, 2017, is incorporated herein by this reference)* 10.8 Form of Performance Non-Qualified Stock Option Agreement (2015 Stock Award and Incentive Plan) (Exhibit 10.26 to Aimco's Annual Report on Form 10-K for the year ended December 31, 2015, is incorporated herein by this reference)* 10.9 Form of Performance Vesting LTIP II Unit Agreement (2015 Stock Award and Incentive Plan) (Exhibit 10.15 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018, filed May 8, 2018, is incorporated herein by this reference)* 10.10 Aimco Second Amended and Restated 2015 Stock Award and Incentive Plan (as amended and restated effective February 22, 2018) (Exhibit A to Aimco’s Proxy Statement on Schedule 14A, filed March 8, 2018, is incorporated herein by reference)* 10.11 Form of Restricted Stock Agreement (2015 Stock Award and Incentive Plan) (Exhibit 10.25 to Aimco's Annual Form on 10-K for the year ended December 31, 2015, is incorporated herein by this reference)* 10.12 Form of Performance Restricted Stock Agreement (2015 Stock Award and Incentive Plan) (Exhibit 10.24 to Aimco's Annual Form on 10-K for the year ended December 31, 2015, is incorporated herein by this reference)* 48 10.13 Form of LTIP Unit Agreement (2015 Stock Award and Incentive Plan) (Exhibit 10.3 to Aimco's Current Report on Form 8-K, filed January 31, 2017, is incorporated herein by this reference)* 10.14 Form of Performance Vesting LTIP Unit Agreement (2015 Stock Award and Incentive Plan) (Exhibit 10.4 to Aimco's Current Report on Form 8-K, filed January 31, 2017, is incorporated herein by this reference)* 10.15 Form of Performance Vesting LTIP II Unit Agreement (2015 Stock Award and Incentive Plan) (Exhibit 10.15 to Aimco's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018, is incorporated herein by this reference)* 10.16 Form of Performance Non-Qualified Stock Option Agreement (2015 Stock Award and Incentive Plan) (Exhibit 10.26 to Aimco's Annual Form on 10-K for the year ended December 31, 2016, is incorporated herein by this reference)* 10.17 Form of Restricted Stock Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.17 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.18 Form of Performance Restricted Stock Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.18 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.19 Form of Performance Non-Qualified Stock Option Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.19 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.20 Form of Performance Vesting LTIP II Unit Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.20 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.21 Form of Restricted Stock Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.21 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.22 Form of Performance Restricted Stock Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.22 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.23 Form of Performance Vesting LTIP II Unit Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.23 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.24 Form of Non-Qualified Stock Option Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.24 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.25 Form of Non-Qualified Stock Option Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.25 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.26 Form of LTIP II Unit Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.26 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.27 Form of LTIP II Unit Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.27 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.28 Form of Performance Restricted Stock Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (Exhibit 10.28 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 10.29 Form of Performance Restricted Stock Agreement (Second Amended & Restated 2015 Stock Award and Incentive Plan) (filed herewith)* 49 10.30 Employee Matters Agreement, effective as of December 15, 2020, by and among Apartment Investment Management Company, Aimco OP L.P., Apartment Income REIT Corp. and Apartment Income REIT, L.P. (f/k/a AIMCO Properties, L.P.) (Exhibit 10.3 to Aimco’s Current Report on Form 8-K, filed December 15, 2020, is incorporated herein by this reference) 10.3 1+ Interests Purchase and Sale Agreement, effective as of December 30, 2024, by and among AHOTB Holding, LLC, Aimco OP L.P., and Brickell Bay Property Owner LLC (filed herewith) 19.1 Policy on Insider Information and Insider Trading 21.1 List of Subsidiaries 23.1 Consent of Independent Registered Public Accounting Firms - Aimco 31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-15(e)/15d-15(e), and Securities Exchange Act Rules 13a-15(f)/15d-15(f), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Aimco 31.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-15(e)/15d-15(e), and Securities Exchange Act Rules 13a-15(f)/15d-15(f), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Aimco 31.3 Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-15(e)/15d-15(e), and Securities Exchange Act Rules 13a-15(f)/15d-15(f), as Adopted Pursuant to section 302 of the Sarbanes-Oxley Act of 2002 - Aimco Operating Partnership 31.4 Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-15(e)/15d-15(e), and securities Exchange Act Rules 13a-15(f)/15d-15(f), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Aimco Operating Partnership 32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Aimco 32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Aimco 32.3 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Aimco Operating Partnership 32.4 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Aimco Operating Partnership 97.1 Amended Aimco Clawback Policy, effective as of July 26, 2023 (Exhibit 97.1 to Aimco's Annual Form on 10-K for the year ended December 31, 2023, is incorporated herein by this reference)* 101 The following materials from Aimco’s and Aimco Operating Partnership’s consolidated Annual Report on Form 10-K for the year ended December 31, 2024, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) consolidated balance sheets; (ii) consolidated statements of operations; (iii) consolidated statements of comprehensive income; (iv) consolidated statements of equity and consolidated statements of partners’ capital; (v) consolidated statements of cash flows; (vi) notes to the consolidated financial statements; and (vii) financial statement schedule (3) 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). (1) Schedule and similar exhibits to the exhibits have been omitted but will be provided to the Securities and Exchange Commission or its staff upon request. (2) The Commission file numbers for exhibits is 001-13232 (Aimco) and 0-24497 (Aimco Operating Partnership). * Management contract or compensatory plan or arrangement + Exhibits marked with a (+) exclude certain portions of the exhibit pursuant to Item 601(b)(10)(iv) of Regulation S-K. A copy of the omitted portions will be furnished to the SEC upon request. ITEM 16. FORM 10-K SUMMARY None. 50 APARTMENT INVESTMENT AND MANAGEMENT COMPANY AIMCO OP L.P. INDEX TO FINANCIAL STATEMENTS Page Financial Statements: Apartment Investment and Management Company: Report of Registered Independent Public Accounting Firm (PCAOB ID: 248 ) F- 4 Report of Registered Independent Public Accounting Firm (PCAOB ID: 42 ) F- 6 Consolidated Balance Sheets F- 7 Consolidated Statements of Operations F- 8 Consolidated Statements of Equity F- 9 Consolidated Statements of Cash Flows F- 10 Aimco OP L.P. Report of Registered Independent Public Accounting Firm (PCAOB ID: 248 ) F- 11 Report of Registered Independent Public Accounting Firm (PCAOB ID: 42 ) F- 13 Consolidated Balance Sheets F- 14 Consolidated Statements of Operations F- 15 Consolidated Statements of Partners’ Capital F- 16 Consolidated Statements of Cash Flows F- 17 Notes to Consolidated Financial Statements of Apartment Investment and Management Company and Aimco OP L.P. F- 18 Note 1 — Organization F- 18 Note 2 — Basis of Presentation and Summary of Significant Accounting Policies F- 18 Note 3 — Significant Transactions F- 28 Note 4 — Lease Arrangements F- 29 Note 5 — Variable Interest Entities F- 31 Note 6 — Debt F- 32 Note 7 — Income Taxes F- 34 Note 8 — Aimco Equity F- 36 Note 9 — Partners' capital F- 36 Note 10 — Earnings per Share and per Unit F- 37 Note 11 — Share-Based Compensation F- 38 Note 12 — Fair Value Measurements F- 40 Note 13 — Commitments and Contingencies F- 42 Note 14 — Business Segments F- 42 Financial Statement Schedule: Schedule III – Real Estate and Accumulated Depreciation F- 46 F- 1 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. APARTMENT INVESTMENT AND MANAGEMENT COMPANY By: /s/ Wes Powell Wes Powell Director, President and Chief Executive Officer Date: February 24, 2025 AIMCO OP L.P. By: Aimco OP GP, LLC, its General Partner /s/ Wes Powell Wes Powell Director, President and Chief Executive Officer Date: February 24, 2025 F- 2 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of each registrant and in the capacities and on the dates indicated. Signature Title Date APARTMENT INVESTMENT AND MANAGEMENT COMPANY AIMCO OP L.P. By: Aimco OP GP, LLC, its General Partner /s/ WES POWELL Director, President and Chief Executive Officer February 24, 2025 Wes Powell (principal executive officer) /s/ H. LYNN C. STANFIELD Executive Vice President and February 24, 2025 H. Lynn C. Stanfield Chief Financial Officer (principal financial officer) /s/ KELLIE E. DREYER Senior Vice President and Chief February 24, 2025 Kellie E. Dreyer Accounting Officer (principal accounting officer) /s/ R. DARY STONE Chairman of the Board of Directors February 24, 2025 R. Dary Stone /s/ QUINCY L. ALLEN Director February 24, 2025 Quincy L. Allen /s/ PATRICIA L. GIBSON Director February 24, 2025 Patricia L. Gibson /s/ JAY PAUL LEUPP Director February 24, 2025 Jay Paul Leupp /s/ SHERRY L. REXROAD Director February 24, 2025 Sherry L. Rexroad /s/ DEBORAH SMITH Director February 24, 2025 Deborah Smith /s/ JAMES P. SULLIVAN Director February 24, 2025 James P. Sullivan /s/ KIRK A. SYKES Director February 24, 2025 Kirk A. Sykes F- 3 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholders Apartment Investment and Management Company Opinion on the financial statements We have audited the accompanying consolidated balance sheet of Apartment Investment and Management Company (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2024, the related consolidated statements of operations, equity, and cash flows for the year ended December 31, 2024, and the related notes and financial statement schedule included under Item 15(a) (collectively referred to as the “consolidated financial statements”) . In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 24, 2025 expressed an unqualified opinion. Basis for opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. Critical audit matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Impairment of investment in IQHQ As described further in Note 2 to the financial statements, the Company accounts for their investment in IQHQ, a privately held life sciences real estate development company, using the measurement alternative. During the year ended December 31, 2024, the Company recorded a non-cash impairment charge of $48.6 million, reducing the carrying value of the investment in IQHQ to $11.1 million as a result of the identification of a triggering event. The fair value of IQHQ was determined using various estimates, assumptions, and market data, the most significant being projected operational cash flows, capitalization rates, and discount rates. We identified the fair value measurements utilized in valuing IQHQ’s underlying investment properties as a critical audit matter. The principal considerations for our determination that the fair value measurements utilized in valuing IQHQ’s underlying investment properties are a critical audit matter are the projected operational cash flows, capitalization rates, and discount rates used in determining the fair value, which involved a higher degree of judgment due to the subjective nature of these inputs. Our audit procedures related to the fair value measurements utilized in valuing IQHQ’s underlying investment properties included the following, among others: F- 4 I. We tested the design and operating effectiveness of relevant controls over management’s evaluation of the reasonableness of the significant inputs and assumptions used to estimate the fair value of IQHQ’s underlying investment properties. II. For certain underlying investment properties valued under the income approach, with the assistance of those with specialized skill and knowledge, we evaluated the reasonableness of the fair value measurements by comparing the land and real property market values to independently developed ranges using relevant market data derived from industry transaction databases and published industry reports. /s/ GRANT THORNTON LLP We have served as the Company's auditor since 2024. Denver, Colorado February 24, 2025 F- 5 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Apartment Investment and Management Company Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Apartment Investment and Management Company (the Company) as of December 31, 2023, the related consolidated statements of operations, equity and cash flows for each of the two years in the period ended December 31, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2023, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ Ernst & Young LLP We served as the Company's auditor from 2020 to 2024. Denver, Colorado February 26, 2024, except for Note 14, as to which the date is February 24, 2025 F- 6 APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED B ALANCE SHEETS (In thousands, except share data) December 31, 2024 December 31, 2023 ASSETS Buildings and improvements $ 1,348,925 $ 1,593,802 Land 398,182 620,821 Total real estate 1,747,107 2,214,623 Accumulated depreciation ( 499,274 ) ( 580,802 ) Net real estate 1,247,833 1,633,821 Cash and cash equivalents 141,072 122,601 Restricted cash 31,367 16,666 Notes receivable 58,794 57,554 Right-of-use lease assets - finance leases 107,714 108,992 Other assets, net 94,051 149,841 Assets held for sale, net 276,079 — Total assets $ 1,956,910 $ 2,089,475 LIABILITIES AND EQUITY Non-recourse property debt, net $ 685,420 $ 846,298 Non-recourse construction loans, net 385,240 301,443 Total indebtedness 1,070,660 1,147,741 Deferred tax liabilities 101,457 110,284 Lease liabilities - finance leases 121,845 118,697 Dividends payable 89,182 — Accrued liabilities and other 100,849 121,143 Liabilities related to assets held for sale, net 160,620 — Total liabilities 1,644,613 1,497,865 Redeemable noncontrolling interests in consolidated real estate partnerships 142,931 171,632 Commitments and contingencies (Note 13) Equity ( 510,587,500 shares authorized at December 31, 2024 and December 31, 2023): Common Stock, $ 0.01 par value, 136,351,966 and 140,576,102 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively 1,364 1,406 Additional paid-in capital 425,002 464,538 Retained earnings ( 303,409 ) ( 116,292 ) Total Aimco equity 122,957 349,652 Noncontrolling interests in consolidated real estate partnerships 39,560 51,265 Common noncontrolling interests in Aimco Operating Partnership 6,849 19,061 Total equity 169,366 419,978 Total liabilities and equity $ 1,956,910 $ 2,089,475 See accompanying notes to the consolidated financial statements. F- 7 APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED STATEM ENTS OF OPERATIONS (In thousands, except per share data) Year Ended December 31, 2024 2023 2022 REVENUES Rental and other property revenues $ 208,679 $ 186,995 $ 190,344 OPERATING EXPENSES Property operating expenses 90,984 73,712 71,792 Depreciation and amortization 86,359 68,834 158,967 General and administrative expenses 32,837 32,865 39,673 Total operating expenses 210,180 175,411 270,432 Interest income 9,652 9,731 4,052 Interest expense ( 70,057 ) ( 37,718 ) ( 73,842 ) Mezzanine investment income (loss), net ( 2,432 ) ( 155,814 ) ( 179,239 ) Realized and unrealized gains (losses) on interest rate contracts 1,752 1,119 48,205 Realized and unrealized gains (losses) on equity investments ( 49,504 ) 700 20,302 Gain on dispositions of real estate 10,600 7,984 175,863 Lease modification income — — 206,963 Other income (expense), net ( 5,581 ) ( 7,657 ) ( 12,794 ) Income (loss) before income tax ( 107,071 ) ( 170,071 ) 109,422 Income tax benefit (expense) 11,071 12,752 ( 17,264 ) Net income (loss) ( 96,000 ) ( 157,319 ) 92,158 Net (income) loss attributable to redeemable noncontrolling interests in consolidated real estate partnerships ( 13,958 ) ( 13,924 ) ( 8,829 ) Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships 1,849 ( 3,991 ) ( 3,672 ) Net (income) loss attributable to common noncontrolling interests in Aimco Operating Partnership 5,641 9,038 ( 3,931 ) Net income (loss) attributable to Aimco $ ( 102,468 ) $ ( 166,196 ) $ 75,726 Net income (loss) attributable to Aimco per common share – basic (Note 10) $ ( 0.75 ) $ ( 1.16 ) $ 0.50 Net income (loss) attributable to Aimco per common share – diluted (Note 10) $ ( 0.75 ) $ ( 1.16 ) $ 0.49 Weighted-average common shares outstanding – basic 138,496 143,618 149,395 Weighted-average common shares outstanding – diluted 138,496 143,618 150,834 See accompanying notes to the consolidated financial statements. F- 8 APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED STAT EMENTS OF EQUITY (In thousands, except share data) 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, 2021 149,818 $ 1,498 $ 521,842 $( 22,775 ) $ 500,565 $ 35,213 $ 26,455 $ 562,233 Net income (loss) — — — 75,726 75,726 3,672 3,931 83,329 Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership 108 1 2,653 — 2,654 — ( 2,888 ) ( 234 ) Share-based compensation expense — — 5,687 — 5,687 — 1,770 7,457 Contributions from noncontrolling interests in consolidated real estate partnerships — — — — — 10,616 — 10,616 Distributions to noncontrolling interests in consolidated real estate partnerships — — — — — ( 1,202 ) ( 160 ) ( 1,362 ) Redemption of redeemable noncontrolling interests in consolidated real estate partnerships — — ( 183 ) — ( 183 ) — — ( 183 ) Purchase of noncontrolling interests in consolidated real estate partnerships — — ( 7,088 ) — ( 7,088 ) — — ( 7,088 ) Common stock repurchased ( 3,459 ) ( 35 ) ( 24,957 ) — ( 24,992 ) — — ( 24,992 ) Other common stock issuances 106 1 851 — 852 — 109 961 Cash dividends — — — ( 3,043 ) ( 3,043 ) — — ( 3,043 ) Other, net ( 48 ) 1 ( 2,323 ) ( 4 ) ( 2,326 ) ( 5 ) ( 5 ) ( 2,336 ) Balances at December 31, 2022 146,525 1,466 496,482 49,904 547,852 48,294 29,212 625,358 Net income (loss) — — — ( 166,196 ) ( 166,196 ) 3,991 ( 9,038 ) ( 171,243 ) Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership — — 4,501 — 4,501 — ( 5,582 ) ( 1,081 ) Share-based compensation expense — — 7,299 — 7,299 — 3,196 10,495 Contributions from noncontrolling interests in consolidated real estate partnerships — — — — — 272 — 272 Distributions to noncontrolling interests in consolidated real estate partnerships — — — — — ( 1,291 ) — ( 1,291 ) Common stock repurchased ( 6,166 ) ( 61 ) ( 45,277 ) — ( 45,338 ) — — ( 45,338 ) Other common stock issuances 252 2 1,538 — 1,540 — 1,272 2,812 Other, net ( 35 ) ( 1 ) ( 5 ) — ( 6 ) ( 1 ) 1 ( 6 ) Balances at December 31, 2023 140,576 1,406 464,538 ( 116,292 ) 349,652 51,265 19,061 419,978 Net income (loss) — — — ( 102,468 ) ( 102,468 ) ( 1,849 ) ( 5,641 ) ( 109,958 ) Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership — — 1,078 — 1,078 — ( 2,061 ) ( 983 ) Share-based compensation expense — — 7,490 — 7,490 — 23 7,513 Contributions from noncontrolling interests in consolidated real estate partnerships — — — — — 1,056 — 1,056 Distributions to noncontrolling interests in consolidated real estate partnerships — — — — — ( 1,614 ) — ( 1,614 ) Purchase of noncontrolling interests in consolidated real estate partnerships — — ( 9,913 ) — ( 9,913 ) ( 9,268 ) — ( 19,181 ) Common stock repurchased ( 4,852 ) ( 49 ) ( 38,896 ) — ( 38,945 ) — — ( 38,945 ) Other common stock issuances, net of withholding taxes 628 6 640 — 646 — — 646 Dividends declared — — — ( 84,649 ) ( 84,649 ) — ( 4,533 ) ( 89,182 ) Other, net — 1 65 — 66 ( 30 ) — 36 Balances at December 31, 2024 136,352 $ 1,364 $ 425,002 $( 303,409 ) $ 122,957 $ 39,560 $ 6,849 $ 169,366 See accompanying notes to the consolidated financial statements. F- 9 APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED STATEM ENTS OF CASH FLOWS (In thousands) Years Ended December 31, 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ ( 96,000 ) $ ( 157,319 ) $ 92,158 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 86,359 68,834 158,967 Mezzanine investment (income) loss, net 2,432 155,814 179,239 Realized and unrealized (gains) losses on interest rate contracts ( 1,752 ) ( 1,119 ) ( 48,205 ) Realized and unrealized (gains) losses on equity investments 49,504 ( 700 ) ( 20,302 ) Income tax expense (benefit) ( 11,071 ) ( 12,752 ) 17,264 Share-based compensation 6,494 9,221 7,471 Loss on extinguishment of debt, net 947 938 28,986 Lease modification income — — ( 206,963 ) Gain on dispositions of real estate ( 10,600 ) ( 7,984 ) ( 175,863 ) Loss (income) from unconsolidated real estate partnerships 1,358 ( 875 ) ( 579 ) Other, including amortization of debt issuance costs 20,186 2,563 2,787 Changes in operating assets and operating liabilities: Operating assets, net ( 13,355 ) 335 1,039 Net cash received from lease incentive — — 195,789 Operating liabilities, net 12,482 ( 6,489 ) ( 27,556 ) Total adjustments 142,984 207,786 112,074 Net cash provided by operating activities 46,984 50,467 204,232 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of real estate — ( 4,108 ) ( 129,245 ) Capital expenditures ( 160,027 ) ( 272,497 ) ( 237,523 ) Proceeds from dispositions of real estate 186,203 9,254 259,983 Investment in IQHQ — — ( 14,227 ) Redemption of IQHQ investment — — 16,473 Distributions received from unconsolidated real estate partnerships — 4,209 — Investment in unconsolidated real estate partnerships ( 383 ) ( 3,786 ) ( 15,668 ) Proceeds from dispositions of unconsolidated real estate partnerships 5,766 — — Purchase of treasury bill — ( 53,773 ) — Proceeds from treasury bill — 54,727 — Other investing activities ( 958 ) 5,578 ( 547 ) Net cash provided by (used in) investing activities 30,601 ( 260,396 ) ( 120,754 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from non-recourse property debt — — 756,220 Proceeds from non-recourse construction loans 330,542 174,445 93,206 Proceeds from sale of participation in Mezzanine Investment — 37,500 — Payments of deferred loan costs ( 6,340 ) ( 229 ) ( 15,266 ) Principal repayments on non-recourse property debt ( 3,166 ) ( 85,974 ) ( 302,428 ) Principal repayments on non-recourse construction loans ( 267,032 ) — ( 138,404 ) Principal repayments on Notes Payable to AIR — — ( 534,127 ) Purchase of interest rate contracts ( 710 ) ( 712 ) ( 5,620 ) Proceeds from interest rate contracts 6,526 58,906 16,818 Payments on finance leases ( 514 ) ( 2,694 ) ( 26,213 ) Payments of prepayment premiums — — ( 25,801 ) Common stock repurchased ( 38,945 ) ( 46,843 ) ( 23,492 ) Dividends paid on common stock — — ( 3,043 ) Redemption of redeemable noncontrolling interests ( 38,473 ) — ( 5,094 ) Distributions to redeemable noncontrolling interests ( 8,318 ) ( 9,243 ) ( 9,365 ) Contributions from noncontrolling interests 1,056 272 10,616 Distributions to noncontrolling interests ( 1,614 ) ( 1,291 ) ( 1,362 ) Contributions from redeemable noncontrolling interests 6,409 125 122,571 Redemption of OP Units held by third parties ( 983 ) ( 1,081 ) ( 225 ) Redemption of noncontrolling interest in real estate partnership — — ( 7,088 ) Purchase of noncontrolling interests in consolidated real estate partnerships ( 19,181 ) — — Other financing activities ( 3,153 ) ( 3,751 ) ( 197 ) Net cash provided by (used in) financing activities ( 43,896 ) 119,430 ( 98,294 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 33,689 ( 90,499 ) ( 14,816 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF YEAR 139,267 229,766 244,582 CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR $ 172,956 $ 139,267 $ 229,766 See accompanying notes to the consolidated financial statements F- 10 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Partners Aimco OP L.P. Opinion on the financial statements We have audited the accompanying consolidated balance sheet of Aimco OP L.P. (a Maryland corporation) and subsidiaries (the “Partnership”) as of December 31, 2024, the related consolidated statements of operations, partners’ capital, and cash flows for the year ended December 31, 2024, and the related notes and financial statement schedule included under Item 15(a) (collectively referred to as the “consolidated financial statements”) . In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Partnership’s internal control over financial reporting as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 24, 2025 expressed an unqualified opinion. Basis for opinion These consolidated financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on the Partnership’s consolidated financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. Critical audit matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Impairment of investment in IQHQ As described further in Note 2 to the financial statements, the Partnership accounts for their investment in IQHQ, a privately held life sciences real estate development company, using the measurement alternative. During the year ended December 31, 2024, the Partnership recorded a non-cash impairment charge of $48.6 million, reducing the carrying value of the investment in IQHQ to $11.1 million as a result of the identification of a triggering event. The fair value of IQHQ was determined using various estimates, assumptions, and market data, the most significant being projected operational cash flows, capitalization rates, and discount rates. We identified the fair value measurements utilized in valuing IQHQ’s underlying investment properties as a critical audit matter. The principal considerations for our determination that the fair value measurements utilized in valuing IQHQ’s underlying investment properties are a critical audit matter are the projected operational cash flows, capitalization rates, and discount rates used in determining the fair value, which involved a higher degree of judgment due to the subjective nature of these inputs. Our audit procedures related to the fair value measurements utilized in valuing IQHQ’s underlying investment properties included the following, among others: F- 11 I. We tested the design and operating effectiveness of relevant controls over management’s evaluation of the reasonableness of the significant inputs and assumptions used to estimate the fair value of IQHQ’s underlying investment properties. II. For certain underlying investment properties valued under the income approach, with the assistance of those with specialized skill and knowledge, we evaluated the reasonableness of the fair value measurements by comparing the land and real property market values to independently developed ranges using relevant market data derived from industry transaction databases and published industry reports. /s/ GRANT THORNTON LLP We have served as the Partnership's auditor since 2024. Denver, Colorado February 24, 2025 F- 12 Report of Independent Registered Public Accounting Firm To the Partners and the Board of Directors of Aimco OP L.P. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Aimco OP L.P. (the Partnership) as of December 31, 2023, the related consolidated statements of operations, partners’ capital, and cash flows for each of the two years in the period ended December 31, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership at December 31, 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2023, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ Ernst & Young LLP We served as the Partnership's auditor from 2020 to 2024. Denver, Colorado February 26, 2024, except for Note 14, as to which the date is February 24, 2025 F- 13 AIMCO OP L.P. CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2024 December 31, 2023 ASSETS Buildings and improvements $ 1,348,925 $ 1,593,802 Land 398,182 620,821 Total real estate 1,747,107 2,214,623 Accumulated depreciation ( 499,274 ) ( 580,802 ) Net real estate 1,247,833 1,633,821 Cash and cash equivalents 141,072 122,601 Restricted cash 31,367 16,666 Notes receivable 58,794 57,554 Right-of-use lease assets - finance leases 107,714 108,992 Other assets, net 94,051 149,841 Assets held for sale, net 276,079 — Total assets $ 1,956,910 $ 2,089,475 LIABILITIES AND EQUITY Non-recourse property debt, net $ 685,420 $ 846,298 Non-recourse construction loans, net 385,240 301,443 Total indebtedness 1,070,660 1,147,741 Deferred tax liabilities 101,457 110,284 Lease liabilities - finance leases 121,845 118,697 Dividends payable 89,182 — Accrued liabilities and other 100,849 121,143 Liabilities related to assets held for sale, net 160,620 — Total liabilities 1,644,613 1,497,865 Redeemable noncontrolling interests in consolidated real estate partnerships 142,931 171,632 Commitments and contingencies (Note 13) Partners’ capital: General Partner and Special Limited Partner ( 136,351,966 and 140,576,102 OP Units issued and outstanding at December 31, 2024 and December 31, 2023, respectively) 122,957 349,652 Limited Partners ( 7,555,109 and 7,663,618 OP Units issued and outstanding at December 31, 2024 and December 31, 2023, respectively) 6,849 19,061 Partners’ capital attributable to Aimco Operating Partnership 129,806 368,713 Noncontrolling interests in consolidated real estate partnerships 39,560 51,265 Total partners’ capital 169,366 419,978 Total liabilities and partners’ capital $ 1,956,910 $ 2,089,475 See accompanying notes to the consolidated financial statements. F- 14 AIMCO OP L.P. CO NSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per common unit data) Year Ended December 31, 2024 2023 2022 REVENUES Rental and other property revenues $ 208,679 $ 186,995 $ 190,344 OPERATING EXPENSES Property operating expenses 90,984 73,712 71,792 Depreciation and amortization 86,359 68,834 158,967 General and administrative expenses 32,837 32,865 39,673 Total operating expenses 210,180 175,411 270,432 Interest income 9,652 9,731 4,052 Interest expense ( 70,057 ) ( 37,718 ) ( 73,842 ) Mezzanine investment income (loss), net ( 2,432 ) ( 155,814 ) ( 179,239 ) Realized and unrealized gains (losses) on interest rate contracts 1,752 1,119 48,205 Realized and unrealized gains (losses) on equity investments ( 49,504 ) 700 20,302 Gain on dispositions of real estate 10,600 7,984 175,863 Lease modification income — — 206,963 Other income (expense), net ( 5,581 ) ( 7,657 ) ( 12,794 ) Income (loss) before income tax ( 107,071 ) ( 170,071 ) 109,422 Income tax benefit (expense) 11,071 12,752 ( 17,264 ) Net income (loss) ( 96,000 ) ( 157,319 ) 92,158 Net (income) loss attributable to redeemable noncontrolling interests in consolidated real estate partnerships ( 13,958 ) ( 13,924 ) ( 8,829 ) Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships 1,849 ( 3,991 ) ( 3,672 ) Net income (loss) attributable to Aimco Operating Partnership $ ( 108,109 ) $ ( 175,234 ) $ 79,657 Net income (loss) attributable to Aimco Operating Partnership per common unit – basic (Note 10) $ ( 0.75 ) $ ( 1.16 ) $ 0.50 Net income (loss) attributable to Aimco Operating Partnership per common unit – diluted (Note 10) $ ( 0.75 ) $ ( 1.16 ) $ 0.49 Weighted-average common units outstanding – basic 146,120 151,371 157,317 Weighted-average common units outstanding – diluted 146,120 151,371 158,774 See accompanying notes to the consolidated financial statements. F- 15 AIMCO OP L.P. CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL (In thousands) 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, 2021 $ 500,565 $ 26,455 $ 527,020 $ 35,213 $ 562,233 Net income (loss) 75,726 3,931 79,657 3,672 83,329 Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership 2,654 ( 2,888 ) ( 234 ) — ( 234 ) Share-based compensation expense 5,687 1,770 7,457 — 7,457 Contributions from noncontrolling interests in consolidated real estate partnerships — — — 10,616 10,616 Distributions to noncontrolling interests in consolidated real estate partnerships — ( 160 ) ( 160 ) ( 1,202 ) ( 1,362 ) Redemption of redeemable noncontrolling interests in consolidated real estate partnerships ( 183 ) — ( 183 ) — ( 183 ) Purchase of noncontrolling interests in consolidated real estate partnerships ( 7,088 ) — ( 7,088 ) — ( 7,088 ) Common stock repurchased ( 24,992 ) — ( 24,992 ) — ( 24,992 ) Other common stock issuances 852 109 961 — 961 Cash dividends ( 3,043 ) — ( 3,043 ) — ( 3,043 ) Other, net ( 2,326 ) ( 5 ) ( 2,331 ) ( 5 ) ( 2,336 ) Balances at December 31, 2022 547,852 29,212 577,064 48,294 625,358 Net income (loss) ( 166,196 ) ( 9,038 ) ( 175,234 ) 3,991 ( 171,243 ) Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership 4,501 ( 5,582 ) ( 1,081 ) — ( 1,081 ) Share-based compensation expense 7,299 3,196 10,495 — 10,495 Contributions from noncontrolling interests in consolidated real estate partnerships — — — 272 272 Distributions to noncontrolling interests in consolidated real estate partnerships — — — ( 1,291 ) ( 1,291 ) Common stock repurchased ( 45,338 ) — ( 45,338 ) — ( 45,338 ) Other common stock issuances 1,540 1,272 2,812 — 2,812 Other, net ( 6 ) 1 ( 5 ) ( 1 ) ( 6 ) Balances at December 31, 2023 349,652 19,061 368,713 51,265 419,978 Net income (loss) ( 102,468 ) ( 5,641 ) ( 108,109 ) ( 1,849 ) ( 109,958 ) Redemption of OP Units held by third parties and reallocation of noncontrolling interests in Aimco Operating Partnership 1,078 ( 2,061 ) ( 983 ) — ( 983 ) Share-based compensation expense 7,490 23 7,513 — 7,513 Contributions from noncontrolling interests in consolidated real estate partnerships — — — 1,056 1,056 Distributions to noncontrolling interests in consolidated real estate partnerships — — — ( 1,614 ) ( 1,614 ) Purchase of noncontrolling interests in consolidated real estate partnerships ( 9,913 ) — ( 9,913 ) ( 9,268 ) ( 19,181 ) Common stock repurchased ( 38,945 ) — ( 38,945 ) — ( 38,945 ) Other common stock issuances, net of withholding taxes 646 — 646 — 646 Dividends declared ( 84,649 ) ( 4,533 ) ( 89,182 ) — ( 89,182 ) Other, net 66 — 66 ( 30 ) 36 Balances at December 31, 2024 $ 122,957 $ 6,849 $ 129,806 $ 39,560 $ 169,366 See accompanying notes to the consolidated financial statements F- 16 AIMCO OP L.P. CO NSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Years Ended December 31, 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ ( 96,000 ) $ ( 157,319 ) $ 92,158 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 86,359 68,834 158,967 Mezzanine investment (income) loss, net 2,432 155,814 179,239 Realized and unrealized (gains) losses on interest rate contracts ( 1,752 ) ( 1,119 ) ( 48,205 ) Realized and unrealized (gains) losses on equity investments 49,504 ( 700 ) ( 20,302 ) Income tax expense (benefit) ( 11,071 ) ( 12,752 ) 17,264 Share-based compensation 6,494 9,221 7,471 Loss on extinguishment of debt, net 947 938 28,986 Lease modification income — — ( 206,963 ) Gain on dispositions of real estate ( 10,600 ) ( 7,984 ) ( 175,863 ) Loss (income) from unconsolidated real estate partnerships 1,358 ( 875 ) ( 579 ) Other, including amortization of debt issuance costs 20,186 2,563 2,787 Changes in operating assets and operating liabilities: Operating assets, net ( 13,355 ) 335 1,039 Net cash received from lease incentive — — 195,789 Operating liabilities, net 12,482 ( 6,489 ) ( 27,556 ) Total adjustments 142,984 207,786 112,074 Net cash provided by operating activities 46,984 50,467 204,232 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of real estate — ( 4,108 ) ( 129,245 ) Capital expenditures ( 160,027 ) ( 272,497 ) ( 237,523 ) Proceeds from dispositions of real estate 186,203 9,254 259,983 Investment in IQHQ — — ( 14,227 ) Redemption of IQHQ investment — — 16,473 Distributions received from unconsolidated real estate partnerships — 4,209 — Investment in unconsolidated real estate partnerships ( 383 ) ( 3,786 ) ( 15,668 ) Proceeds from dispositions of unconsolidated real estate partnerships 5,766 — — Purchase of treasury bill — ( 53,773 ) — Proceeds from treasury bill — 54,727 — Other investing activities ( 958 ) 5,578 ( 547 ) Net cash provided by (used in) investing activities 30,601 ( 260,396 ) ( 120,754 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from non-recourse property debt — — 756,220 Proceeds from non-recourse construction loans 330,542 174,445 93,206 Proceeds from sale of participation in Mezzanine Investment — 37,500 — Payments of deferred loan costs ( 6,340 ) ( 229 ) ( 15,266 ) Principal repayments on non-recourse property debt ( 3,166 ) ( 85,974 ) ( 302,428 ) Principal repayments on non-recourse construction loans ( 267,032 ) — ( 138,404 ) Principal repayments on Notes Payable to AIR — — ( 534,127 ) Purchase of interest rate contracts ( 710 ) ( 712 ) ( 5,620 ) Proceeds from interest rate contracts 6,526 58,906 16,818 Payments on finance leases ( 514 ) ( 2,694 ) ( 26,213 ) Payments of prepayment premiums — — ( 25,801 ) Common stock repurchased ( 38,945 ) ( 46,843 ) ( 23,492 ) Dividends paid on common stock — — ( 3,043 ) Redemption of redeemable noncontrolling interests ( 38,473 ) — ( 5,094 ) Distributions to redeemable noncontrolling interests ( 8,318 ) ( 9,243 ) ( 9,365 ) Contributions from noncontrolling interests 1,056 272 10,616 Distributions to noncontrolling interests ( 1,614 ) ( 1,291 ) ( 1,362 ) Contributions from redeemable noncontrolling interests 6,409 125 122,571 Redemption of OP Units held by third parties ( 983 ) ( 1,081 ) ( 225 ) Redemption of noncontrolling interest in real estate partnership — — ( 7,088 ) Purchase of noncontrolling interests in consolidated real estate partnerships ( 19,181 ) — — Other financing activities ( 3,153 ) ( 3,751 ) ( 197 ) Net cash provided by (used in) financing activities ( 43,896 ) 119,430 ( 98,294 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 33,689 ( 90,499 ) ( 14,816 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF YEAR 139,267 229,766 244,582 CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR $ 172,956 $ 139,267 $ 229,766 See accompanying notes to the consolidated financial statements F- 17 APARTMENT INVESTMENT AND MANAGEMENT COMPANY AIMCO OP L.P. NOTES TO THE CONSOLIDATE D FINANCIAL STATEMENTS December 31, 2024 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 December 31, 2024, Aimco owned 92.3 % 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 7.7 % 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 Annual Reports on Form 10-K for the fiscal year ended December 31, 2024, of Aimco and Aimco Operating Partnership. Where it is important to distinguish between the two entities, each is referred to 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 December 31, 2024, o ur entire portfolio of operating residential apartment communities includes 5,243 apartment homes within 20 consolidated stabilized operating properties, 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 substantially complete single family rental community with 16 homes and eight accessory dwelling units, a waterfront ground-up development under construction 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 that is currently held for sale, and land parcels held for development. We also h old other alternative investments, including our Mezzanine Investment (see Note 2 for further information); our investment in IQHQ Holdings, LP ("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 consolidated financial statements include the accounts of Aimco, Aimco Operating Partnership, and their consolidated entities. Aimco Operating Partnership’s consolidated financial statements include the accounts of Aimco Operating Partnership and its consolidated entities. All significant intercompany balances 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. C ertain reclassifications have been made to prior period amounts to conform to the current period consolidated financial statement presentation with no effect on the Company’s previously reported results of operations, financial position, or cash flows. Principles of Consolidation We account for joint ventures and other similar entities in which we hold an ownership interest in accordance with the consolidation guidance. We first evaluate whether each entity is a variable interest entity ("VIE"). Under the VIE model, we consolidate an entity 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. In addition, when an entity is not a VIE, we consolidate an entity under the voting model when we control the entity through ownership of a majority voting interest. Refer to Note 5 for further information. F- 18 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 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 Aimco) outstanding during the period. For the years ended December 31, 2024, 2023, and 2022, the holders of OP Units had a weighted-average economic ownership interest in Aimco Operating Partnership of approximately 5.2 % , 5.1 %, and 5.1 %, r espectively. Substantially all of the assets and liabilities of Aimco are held by Aimco 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 the right to require such partnership to redeem all or a portion of the noncontrolling interest in accordance with the partnership agreement, generally after a specified hold period. 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 December 31, 2024, consists of the following: (i) a preferred equity interest that receives 8.0 % preferred return per annum in an entity that owns a portfolio of operating apartment communities, (ii) equity interest in two separate consolidated joint ventures with residential apartment com munities in lease-up, including a preferred equity interest in one of the joint ventures accruing 9.7 % preferred return per annum, and (iii) a preferred equity interest accruing 14.5 % preferred return per annum 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 Consolidated Balance Sheets as of December 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 during the years ended December 31, 2024 , 2023, and 2022 (in thousands): 2024 2023 2022 Balance at Beginning of Period $ 171,632 $ 166,826 $ 33,794 Capital contributions 6,409 125 138,479 Distributions ( 8,318 ) ( 9,243 ) ( 9,365 ) Redemptions ( 38,473 ) — ( 4,911 ) Net income 13,958 13,924 8,829 Other (1) ( 2,277 ) — — Balance at December 31, $ 142,931 $ 171,632 $ 166,826 (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 5 . Costs incurred were treated as a discount to Redeemable noncontrolling interests in consolidated real estate partnerships in accordance with GAAP . F- 19 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. While legal ownership of the subsidiaries that originated and hold the Mezzanine Investment was retained by AIR following the Separation, 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. Throughout the term of the Mezzanine Investment, we have performed an assessment to determine whether the fair value of the Mezzanine Investment is less than its net carrying value on an other-than-temporary basis. In 2022, we determined our Mezzanine Investment was impaired on an other-than-temporary basis after considering various factors, including a sustained decrease in rents at the Parkmerced Apartments due to changes in the macroeconomic environment and a decline in value of the real estate collateral. As a result, we recognized a non-cash impairment charge of $ 212.6 million. Prior to the non-cash impairment in 2022, we recognized as income the net amounts earned on the Mezzanine Investment by AIR on its equity investment that were due to be paid to us when collected to the extent the income was supported by the change in the counterparty’s claim to the net assets of the underlying borrower. The income recognized primarily represented the interest accrued under the terms of the underlying Mezzanine Investment. In 2023, we determined our Mezzanine Investment was incrementally impaired after considering additional factors, including the mezzanine loan’s nearing maturity date and further decline in value of the real estate collateral. As a result, we recognized a non-cash impairment charge of $ 158.0 million. In June 2023, we closed on the sale of a 20 % non-controlling participation in the Mezzanine Investment for $ 33.5 million. The partial sale and transfer of the financial interest did not qualify for sale accounting and therefore, we recorded the cash received from the purchaser as a liability, which is included in Accrued liabilities and other in our Consolidated Balance Sheets . Although the cash received is accounted for as a liability, no amount is due to the purchaser until after we receive $ 134.0 million plus an annualized return. While the Mezzanine Investment had not been repaid and was in maturity default as of December 31, 2024, we are precluded from derecognizing the liability until it has been extinguished. In connection with the participation sold, the purchaser also made a $ 4.0 million non-refundable payment for the option to acquire the remaining 80 % in the Mezzanine Investment. The option expired unexercised in the quarter ended December 31, 2023. As a result, we recognized the non-refundable payment in Mezzanine investment income (loss), net in our Consolidated Statements of Operations . Real Estate Acquisitions Upon the acquisition of real estate, we determine whether the purchase qualifies as an asset acquisition or, less frequently, meets the definition of an acquisition of a business. We generally recognize the acquisition of real estate or interests in partnerships that own real estate at our cost, including the related transaction costs, as asset acquisitions. We allocate the cost of real estate acquired based on the relative fair value of the assets acquired and liabilities assumed. The fair value of these assets and liabilities is determined using valuation techniques that rely on Level 2 and Level 3 inputs within the fair value framework. We determine the fair value of tangible assets, such as land, buildings, furniture, fixtures, and equipment using valuation techniques that consider comparable market transactions, replacement costs, and other available information. We determine the fair value of identified intangible assets or liabilities, which typically relate to in-place leases, using valuation techniques that consider the terms of the in-place leases, current market data for comparable leases, and our experience in leasing similar real estate. The intangible assets or liabilities related to in-place leases are comprised of: (a) the value of the above- and below-market leases in-place, measured over the period, including probable lease renewals for below-market leases, for which the leases are expected to remain in effect; (b) the estimated unamortized portion of avoided leasing commissions and other costs that ordinarily would be incurred to originate the in-place leases; (c) the value associated with in-place leases during an estimated absorption period, which estimates rental revenue that would not have been earned had the leased space been vacant at the time of acquisition, assuming lease-up periods based on market demand and stabilized occupancy levels; and (d) tax abatement contract related intangibles, to the extent the property has them in place. The above and below-market lease intangibles are amortized to rental revenue over the expected remaining terms of the associated leases, which include reasonably certain renewal periods. Other intangible assets related to in-place leases are amortized to depreciation and amortization over the expected remaining terms of the associated leases. F- 20 Capital additions We capitalize costs, including certain indirect costs, incurred in connection with our capital additions activities, including redevelopments, other tangible apartment community improvements, and replacements of existing community components. Included in these capitalized costs are payroll costs associated with time spent by employees in connection with the planning, execution, and control of all capital addition activities at our communities. We characterize as “indirect costs” an allocation of certain department costs, including payroll, at the area operations and corporate levels that clearly relate to capital addition activities. We also capitalize interest, property taxes, and insurance during periods in which construction projects are in progress. We commence capitalization of costs, including certain indirect costs, incurred in connection with our capital addition activities, at the point in time when activities necessary to get communities, apartment homes, or leased spaces ready for their intended use begin. These activities include when communities, apartment homes or leased spaces are undergoing physical construction, as well as when homes or leased spaces are held vacant in advance of planned construction, provided that other activities such as permitting, planning, and design are in progress. We cease the capitalization of costs when the communities or components thereof are substantially complete and ready for their intended use, which is typically when construction has been completed and homes or leased spaces are available for occupancy. We charge costs including ordinary repairs, maintenance, and resident turnover costs to property operating expense, as incurred. For the years ended December 31, 2024, 2023, and 2022, we capitalized to buildings and improvements $ 21.5 million, $ 39.7 million, and $ 30.6 million of interest costs, respectively. For the years ended December 31, 2024, 2023, and 2022, we capitalized to buildings and improvements $ 8.0 million, $ 14.3 million, and $ 16.9 mi llion of indirect costs, respectively. Impairment of real estate and other long-lived assets Real estate and other long-lived assets to be held and used are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of an asset may not be recoverable, we assess its recoverability by comparing the carrying amount to our estimate of the undiscounted future cash flows, excluding interest charges, of the community. If the carrying amount exceeds the aggregate undiscounted future cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the community. There were no such impairments for the years ended December 31, 2024, 2023, and 2022 . Assets held for sale, net We classify properties as held for sale when they meet the GAAP criteria, which include (among others): (a) management commits to and initiates a plan to sell the asset; (b) the sale is probable and expected to be completed within one year under terms that are usual and customary for sales of such assets; and (c) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn, which is typically indicated by receipt of a significant, non-refundable deposit from the buyer pursuant to a sales contract. We present the assets and liabilities of any real estate properties held for sale separately in the Consolidated Balance Sheets . Real estate assets held for sale are measured at the lower of the carrying amount or the fair value less the cost to sell. Both the real estate assets and corresponding liabilities are presented separately in the accompanying Consolidated Balance Sheets. Upon the classification of an asset as held for sale, no further depreciation is recorded. Disposals representing a strategic shift in operations (e.g., a disposal of a major geographic area, a major line of business or a major equity method investment) will be presented as discontinued operations. On December 30, 2024, Aimco entered into an agreement to sell the Brickell Assemblage. The transaction is scheduled to occur as early as March 2025 but may be extended at the buyer's option to the fourth quarter of 2025. We determined the Brickell Assemblage was a disposal group that met the criteria to be classified as held for sale as of December 31, 2024. The transaction does not meet the criteria for discontinued operations classification. The following summary presents the major components of assets and liabilities related to the real estate properties held for sale as of December 31, 2024 (in thousands): F- 21 As of December 31, 2024 Buildings and improvements $ 218,388 Land 181,381 Total real estate 399,769 Accumulated depreciation ( 126,840 ) Net real estate 272,929 Restricted cash 517 Other assets, net 2,633 Assets held for sale, net $ 276,079 Non-recourse property debt, net $ 158,888 Accrued liabilities and other 1,732 Liabilities related to assets held for sale, net $ 160,620 Restricted cash Restricted cash consists of tenant security deposits, cash restricted as required by our debt agreements, and cash restricted in association with legal, municipal, federal, or tax requirements. The reconciliation of cash flow information is as follows (in thousands): Year Ended December 31, 2024 2023 2022 Cash and cash equivalents $ 141,072 $ 122,601 $ 206,460 Restricted cash 31,367 16,666 23,306 Restricted cash held for sale 517 — — Cash, cash equivalents, and restricted cash, including restricted cash held for sale $ 172,956 $ 139,267 $ 229,766 Cash equivalents We classify highly liquid investments with an original maturity of three months or less as cash equivalents. We maintain cash and 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. Supplemental cash flow information for the years ended December 31, 2024, 2023, and 2022 is as follows (in thousands): Year Ended December 31, 2024 2023 2022 SUPPLEMENTAL CASH FLOW INFORMATION: Interest paid, net of amounts capitalized $ 47,554 $ 32,795 $ 45,171 Cash paid for income taxes 931 1,711 22,930 Non-cash transactions associated with acquisitions: Buildings and improvements — — 11,109 Intangible assets, net — — 13,377 Mark to market adjustment on an assumed construction loan — — 363 Right-of-use lease assets - finance leases — — 15,036 Other assets, net — — 5,629 Accrued liabilities and other — — ( 1,854 ) Lease liabilities - finance leases — — 15,151 Contributions from redeemable noncontrolling interests in consolidated real estate partnerships — — 13,756 Other non-cash investing and financing transactions: Right-of-use lease assets - operating leases — 718 2,336 Lease liabilities - operating leases — 718 1,587 Issuance of seller financing in connection with disposition of real estate — 17,432 — Contribution of real estate to unconsolidated real estate partnerships — 5,700 — Accrued capital expenditures (at end of year) 11,962 40,340 41,435 F- 22 Notes receivable We carry notes receivable at cost, net of any unamortized discounts or premiums and adjusted for the estimated provision for expected credit losses. Interest income on notes receivable is recognized using the effective interest method and is classified within Interest income in our Consolidated Statements of Operations . Direct costs incurred in originating notes, along with any premium or discount, are deferred and amortized as an adjustment to interest income over the note’s term using the effective interest method, or on a straight-line basis, which approximates the effective interest method when used. We have a seller financing note with a principal balance of $ 43.2 million and an effective interest rate of 6.0 %. As of December 31, 2024 and 2023, the remaining unamortized discount was $ 2.7 million and $ 3.8 million, respectively. For the years ended December 31, 2024, 2023, and 2022, the amortization of the discount was $ 1.1 million, $ 1.1 million, and $ 1.0 million, respectively, which was recorded as a component of Interest Income in our Consolidated Statements of Operations . Other assets, net Other assets, net were comprised of the following amounts as of December 31, 2024 and 2023 (in thousands): As of December 31, 2024 2023 Other investments $ 16,115 $ 65,066 Deferred costs, deposits, and other 11,227 9,374 Prepaid expenses and real estate taxes 14,208 14,855 Interest rate contracts (1) 891 5,255 Unconsolidated real estate partnerships 15,155 23,125 Intangible assets, net 13,154 13,494 Corporate fixed assets, net of accumulated depreciation of $ 9,591 and $ 6,903 as of December 31, 2024 and December 31, 2023, respectively 9,844 10,669 Accounts receivable, net of allowances of $ 352 and $ 373 as of December 31, 2024 and December 31, 2023, respectively 8,276 5,178 Deferred tax assets 5,175 2,391 Due from affiliates 6 434 Total other assets, net $ 94,051 $ 149,841 (1) We account for our interest rate contracts as non-designated hedges. See Note 12 for discussion of our fair value measurements for these instruments. Other investments Other investments consist of passive equity investments in stock, property technology funds, and IQHQ, a privately held life sciences real estate development company. We measure our investment in stock at fair value. We also measure our investments in property technology funds using the NAV practical expedient since they do not have readily determinable fair values. During the year ended December 31, 2024, we recognized unrealized losses on our investment in stock of $ 1.3 million, compared to unrealized gains of $ 0.7 million in 2023 and unrealized losses of $ 6.1 million in 2022. During the years ended December 31, 2024, 2023 and 2022, we recognized unrealized gains on our investments in property technology funds of $ 0.4 million, $ 0.0 million, and $ 0.3 million, respectively. See Note 12 for discussion of our fair value measurements for these investments. Investment in IQHQ 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. F- 23 On a periodic basis, we perform a qualitative impairment assessment on our investment in IQHQ in accordance with GAAP. During the year ended December 31, 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 $ 48.6 million to reduce the carrying value of the investment in IQHQ to $ 11.1 million as of December 31, 2024. The non-cash impairment is reflected in Realized and unrealized gains (losses) on equity investments in our Consolidated Statements of Operations for the year ended December 31, 2024, and as a reduction in the carrying value of Other investments included in Other assets, net in our Consolidated Balance Sheets as of December 31, 2024. No realized or unrealized gains or losses were recognized during the year ended December 31, 2023. During the year ended December 31, 2022, we recognized realized and unrealized gains on our investment in IQHQ totaling $ 5.7 million and $ 20.5 million resulting from the partial redemption of our investment. As of December 31, 2024 2023 Equity ownership in IQHQ under measurement alternative: Initial cost of remaining balance $ 39,185 $ 39,185 Cumulative upward adjustments 20,501 20,501 Cumulative impairment ( 48,615 ) — Total carrying value $ 11,071 $ 59,686 Deferred costs, deposits, and other We defer leasing costs incremental to a lease that we would not have incurred if the contract had not been obtained. Amortization of these costs over the lease term on the same basis as lease income, is included in Depreciation and amortization in our Consolidated Statements of Operations . We also defer, debt issuance costs, lender fees and other direct costs incurred in obtaining new financing and amortize the amounts over the terms of the related loan agreements. In connection with the modification of existing financing arrangements, we defer lender fees and amortize these costs and any unamortized debt issuance costs over the term of the modified loan agreement. Debt issuance costs associated with non-recourse property debt are presented as a direct deduction from the related liabilities in our Consolidated Balance Sheets. We record debt issuance costs associated with our revolving credit facilities and construction loans that have not been drawn in Other assets, net in our Consolidated Balance Sheets. We amortize the costs associated with our revolving credit facilities to Interest expense on a straight-line basis over the term of the arrangement. Debt issuance costs associated with construction loans are reclassified as a direct deduction to the construction loan liability in proportion to any draws on the loans in our Consolidated Balance Sheets and subsequently amortized to Interest expense under either the effective interest method or on a straight-line basis, which approximates the effective interest method when used, over the remaining term of the arrangement in our Consolidated Statements of Operations. When financing arrangements are repaid or otherwise extinguished prior to maturity, unamortized debt issuance costs are written off. Any lender fees or other costs incurred in connection with an extinguishment are recognized as expense. Amortization and write-off of debt issuance costs and other extinguishment costs are included in Interest expense in our Consolidated Statements of Operations. Unconsolidated real estate partnerships We own general and limited partner interests in partnerships that either directly, or through interests in other real estate partnerships, own apartment communities. We generally account for investments in real estate partnerships that we do not consolidate using the equity method. Accordingly, we recognize our share of the earnings or losses of the entity for the periods presented, inclusive of our share of any impairments and disposition gains or losses recognized by and related to such entities, and we present such amounts within Other income (expense), net in our Consolidated Statements of Operations. The excess of our cost of the acquired partnership interests over our share of the partners’ equity or deficit is generally ascribed to the fair values of land and buildings owned by the partnerships. We amortize the excess cost ascribed to the buildings over the related estimated useful lives. Such amortization is recorded as an adjustment of the amounts of earnings or losses we recognize from such unconsolidated real estate partnerships. On a periodic basis, we assess our investments in unconsolidated real estate partnerships for impairment. An investment is considered impaired if we determine that its fair value is less than the net carrying value of the investment on an other-than-temporary basis. F- 24 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 year ended December 31, 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 recognized a non-cash other-than-temporary-impairment ("OTTI") of $ 2.6 million, within Other income (expense), net in our Condensed Consolidated Statements of Operations. We did no t recognize any such impairments of our investments in unconsolidated real estate partnerships during the years ended December 31, 2023, and 2022. Intangible assets, net Intangible assets are included in Other assets, net and intangible liabilities are included in Accrued liabilities and other in our Consolidated Balance Sheets . The following table details intangible assets and liabilities, net of accumulated amortization, for the years ended December 31, 2024 and 2023 (in thousands): As of December 31, 2024 2023 Intangible assets $ 25,950 $ 25,950 Less: accumulated amortization ( 12,796 ) ( 12,456 ) Intangible assets, net $ 13,154 $ 13,494 Below-market leases $ 4,175 $ 4,175 Less: accumulated amortization ( 4,175 ) ( 4,146 ) Intangible liabilities, net $ — $ 29 Based on the balance of intangible assets and liabilities as of December 31, 2024, the net aggregate amortization for the next five years and thereafter is expected to be as follows (in thousands): Intangible assets 2025 $ 892 2026 892 2027 892 2028 892 2029 892 Thereafter 8,694 Total future amortization $ 13,154 Corporate fixed assets, net We capitalize qualified implementation costs incurred in a hosting arrangement that is a service contract for which we are the customer in accordance with the requirements for capitalizing costs incurred to develop internal-use software. These capitalized implementation costs are amortized on a straight-line basis. As of December 31, 2024 and 2023 , net capitalized implementation costs of $ 5.8 million and $ 4.7 million, respectively, net of $ 0.8 million and $ 0.1 million of accumulated depreciation, respectively are included in Other assets, net in our Consolidated Balance Sheets . Accounts receivable, net We present our accounts receivable net of allowances for amounts that may not be collected. The allowance is determined based on an assessment of whether substantially all of the amounts due from the resident or tenant is probable of collection. This includes a specific tenant analysis and aging analysis. F- 25 Revenue from leases We are a lessor for residential and commercial leases. Our operating leases with residents may provide that the resident reimburse us for certain costs, primarily the resident’s share of utilities expenses, incurred by the apartment community. Our operating leases with commercial tenants may provide that the tenant reimburse us for common area maintenance, real estate taxes, and other recoverable costs incurred by the commercial property. Residential and commercial reimbursements represent revenue attributable to non-lease components for which the timing and pattern of recognition is the same as the revenue for the lease components. We have elected the practical expedient in accordance with ASC 842, Leases , to not separate non-lease components from associated lease components for all classes of underlying assets. Reimbursements and the related expenses are presented on a gross basis in our Consolidated Statements of Operations, with the reimbursements included in Rental and other property revenues in the period the recoverable costs are incurred. We recognize rental revenue attributed to lease components, net of any concessions, on a straight-line basis over the term of the lease. 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 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. The transaction prices for hotel room sales and other goods and services are generally fixed and based on the respective room reservation or other agreement. Payment terms generally align with when the goods and services are provided. Our contracts generally have a single performance obligation, recognized at a point in time. During the years ended December 31, 2024, 2023, and 2022, the Benson Hotel generated revenues of $ 6.7 million, $ 2.7 million, and $ 0.0 million, respectively. Advertising costs Advertising costs are expensed as incurred and are included within Property operating expenses in our Consolidated Statements of Operations. For the years ended December 31, 2024, 2023, and 2022, we recognized total advertising costs of $ 2.3 million, $ 1.3 million, and $ 1.7 million, respectively. Gain or (loss) on dispositions of real estate Gains or losses on dispositions are recognized when the criteria for the derecognition of a nonfinancial asset are met, including when control of the real estate has transferred. Upon disposition, the related assets and liabilities are derecognized, and the gain or loss on disposition is recognized as the difference between the carrying amount of those assets and liabilities and the value of consideration received. For the years ended December 31, 2024, 2023, and 2022, we recognized total Gain on dispositions of real estate of $ 10.6 million, $ 8.0 million, and $ 175.9 million, respectively. Depreciation and amortization Depreciation for all tangible assets is calculated using the straight-line method over their estimated useful lives. Acquired buildings and improvements are depreciated over a useful life based on the age, condition, and other physical characteristics of the asset. Furniture, fixtures, and equipment are generally depreciated over five years . We depreciate capitalized costs using the straight-line method over the estimated useful life of the related improvement, which is generally 5 , 15 , or 30 y ears. We also capitalize payroll and other indirect costs incurred in connection with preparing an asset for its intended use. These costs include corporate-level costs that clearly relate to the capital addition activities, which we allocate to the applicable assets. All capitalized payroll costs and indirect costs are allocated to capital additions proportionately based on direct costs and depreciated over the estimated useful lives of such capital additions. Purchased equipment is recognized at cost and depreciated using the straight-line method over the estimated useful life of the asset, which is generally five years . Leasehold improvements are also recorded at cost and depreciated on a straight-line basis over the shorter of the asset’s estimated useful life or the term of the related lease. Certain homogeneous items that are purchased in bulk on a recurring basis, such as appliances, are depreciated using group methods that reflect the average estimated useful life of the items in each group. Except in the case of casualties, where the net book value of the lost asset is written off in the determination of casualty gains or losses, we generally do not recognize any loss in connection with the replacement of an existing community component because normal replacements are considered in determi ning the estimated useful lives used in connection with our composite and group depreciation methods. F- 26 Income tax benefit (expense) Aimco 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 our investment in 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 C onsolidated 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 year ended December 31, 2024, we had consolidated net losses subject to tax of $ 28.2 million, compared to consolidated net losses subject to tax of $ 15.2 million for the same period in 2023 , and consolidated net income subject to tax of $ 88.8 million for the same period in 2022. For the year ended December 31, 2024, we recognized income tax benefit of $ 11.1 million, compared to income tax benefit of $ 12.8 million for same period in 2023. The year-over-year decrease is due primarily to changes in 2023 to the effective tax rate expected to apply to the reversal of our existing deferred items, partially offset by increased tax benefit from higher losses in 2024 at our TRS entities. We recognized income tax expense of $ 17.3 million for the year ended December 31, 2022. The prior year-over-year decrease is due primarily to GAAP income taxes associated with the net lease modification income recognized in 2022. Aimco has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 1994, and Aimco intends to continue to operate in such a manner. Aimco's current and continuing qualification as a REIT depends on its ability to meet the various requirements imposed by the Code, which are related to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If Aimco qualifies for taxation as a REIT, it will generally not be subject to United States federal corporate income tax on its taxable income that is currently distributed to stockholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from an investment in a corporation. Even if Aimco qualifies as a REIT, Aimco may be subject to United States federal income and excise taxes in various situations, such as on undistributed income. Aimco also will be required to pay a 100 % tax on any net income on non-arm’s length transactions between Aimco and a TRS and on any net income from sales of apartment communities that were held for sale in the ordinary course. The state and local tax laws may not conform to the United States federal income tax treatment, and Aimco may be subject to state or local taxation in various state or local jurisdictions, including those in which we transact business. Any taxes imposed on us reduce our operating cash flow and net income. Aimco Operating Partnership Aimco Operating Partnership is treated as a “pass-through” entity for United States federal income tax purposes and is not subject to United States federal income taxation. Partners in Aimco Operating Partnership, however, are subject to tax on their allocable share of partnership income, gains, losses, deductions, and credits, regardless of whether the partners receive any actual distributions of cash or other property from Aimco Operating Partnership during the taxable year. Generally, the characterization of any particular item is determined by Aimco Operating Partnership rather than at the partner level, and the amount of a partner’s allocable share of such item is governed by the terms of Aimco Operating Partnership’s Partnership agreement. Aimco Operating Partnership is subject to tax in certain states. Earnings per share and per unit Aimco and Aimco Operating Partnership calculate earnings per share and unit based on the weighted-average number of shares of Common Stock or OP Units, participating securities, common stock or common unit equivalents and dilutive convertible securities outstanding during the period. Aimco Operating Partnership considers both OP Units and equivalents, which have identical rights to distributions and undistributed earnings, to be common units for purposes of the earnings per unit computations. Please refer to Note 10 for further information regarding earnings per share and unit computations. F- 27 Share-based compensation We measure the cost of employee services received in exchange for an award of an equity instrument based on the award’s fair value on the grant date and recognize the cost as share-based compensation expense over the period during which the employee is required to provide service in exchange for the award, which is generally the vesting period. Share-based compensation expense associated with awards is updated for actual forfeitures. For further discussion, see Note 11. Use of estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the consolidated financial statements and accompanying notes thereto. Actual results could differ from those estimates. Accounting pronouncements adopted in the current year We adopted 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 segment expense categories and amounts disclosed in prior periods within Note 14 are based on the significant expense categories identified and disclosed in the period of adoption. The adoption of this standard did no t have a material impact on our consolidated financial statements. Recent accounting pronouncements In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” , 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 consolidated financial statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, " Disaggregation of Income Statement Expenses ", which requires disaggregated disclosure of income statement expenses. The ASU does not change the expense captions an entity presents on the face of the income statement. Rather, it requires disclosure in a tabular format of the disaggregation of any relevant expense caption presented on the face of the income statement within continuing operations into the following required natural expense categories, as applicable: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depletion. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. ASU 2024-03 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 consolidated financial statements and related disclosures. Note 3 — Significant Transactions Real estate dispositions During the years ended December 31, 2024, 2023, and 2022, we sold properties as summarized below (dollars in thousands): Year ended December 31, 2024 2023 2022 Number of properties sold 2 1 4 Gain on sale of real estate $ 10,600 $ 6,138 $ 175,863 During the year ended December 31, 2024, we sold a fully renovated waterfront property with 276 units in the Edgewater neighborhood of Miami, Florida, for a gross sales price of $ 190.0 million and recognized a gain from the sale of $ 10.6 million. The property was acquired in August 2020. We also sold a majority of our partnership interest in St. George Villas, a small, 40 -unit, income-restricted property in South Carolina. As a result, we derecognized the assets and liabilities associated with the property in February 2024. F- 28 During the year ended December 31, 2023, we sold a land parcel in downtown Fort Lauderdale, for a gross sales price of $ 31.2 million and recognized a gain from the sale of $ 6.1 million. The land parcel was purchased in January 2022. In conjunction with this sale, we provided seller financing with a stated value of $ 21.2 million that was recorded net of $ 3.8 million of variable consideration. The financing matures at 18 months , with an option to extend for an additional six months . In addition, we recognized a $ 1.9 million gain from the contribution of real estate to an unconsolidated joint venture. During the year ended December 31, 2022, we sold three operating properties and one land parcel for an aggregate gross sales price of $ 267.3 million and recognized an aggregate gain from the sales of $ 175.9 million. Redemptions and purchases of noncontrolling interests In December 2024, we purchased all of the outstanding common noncontrolling interest and redeemed the promoted interest from our development partner in the Upton Place property for a cash purchase price of $ 20.9 million. We also partially redeemed a preferred equity interest in the Upton Place property for a cash redemption amount of $ 38.5 million. Aimco continues to consolidate the Upton Place property as of December 31, 2024; therefore, the changes in ownership interest were accounted for as equity transactions. The transactions resulted in reductions of Noncontrolling interests in consolidated real estate partnerships of $ 9.2 million, Redeemable noncontrolling interests in consolidated real estate partnerships of $ 38.5 million, Accrued liabilities and other of $ 1.8 million, and Additional paid-in capital of $ 9.9 million. Note 4 — Lease Arrangements Aimco as Lessor Our apartment homes and commercial spaces are leased to tenants under operating leases. As of December 31, 2024 , our apartment home leases generally have initial terms of 24 months or less. As of December 31, 2024, our commercial space leases have initial terms betwee n 5 and 15 y ears and represent approximately 7 % to 8 % 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. Our apartment home and commercial lease agreements do not contain residual value guarantees. As we are the lessor of real estate assets which tend to either hold their value or appreciate, residual value risk is not deemed to be substantial. Furthermore, we are insured for a portion of our real estate assets’ exposure to casualty losses resulting from fire, earthquake, hurricane, tornado, flood, and other perils. We have a sublease arrangement providing space within our corporate office for fixed rents, commencing on January 1, 2021 , and expiring on May 31, 2029 . For the years ended December 31, 2024, 2023, and 2022, we recognized sublease income of $ 1.4 million, $ 1.4 million, and $ 1.4 million, respecti vely. 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. We have elected the practical expedient to not separate non-lease components from associated lease components in accordance with ASC 842. For the years ended December 31, 2024, 2023, and 2022, our total lease income was comprised of the following amounts for all residential and commercial property leases ( in thousands ): Year ended December 31, 2024 2023 2022 Fixed lease income $ 186,869 $ 172,580 $ 176,080 Variable lease income 15,121 13,892 13,654 Total lease income $ 201,990 $ 186,472 $ 189,734 Future minimum lease payments that are contractually due to us from our office space sublease and commercial space leases, excluding extension options, as of December 31, 2024, are as follows ( in thousands ): Corporate Office Sublease Commercial Leases 2025 $ 1,423 $ 2,435 2026 1,433 2,298 2027 1,443 2,112 2028 1,453 2,023 2029 630 2,074 Thereafter — 15,898 Total $ 6,382 $ 26,840 F- 29 Aimco as Lessee Lease Arrangements We are lessee to finance leases for the land underlying our development sites at Upton Place, Strathmore Square, and Oak Shore. We have operating leases primarily for corporate office space. Substantially all of our office lease payments are fixed. See the table below for lease costs, net of capitalized finance lease costs, for the years ended December 31, 2024, 2023, and 2022. Year ended December 31, 2024 2023 2022 Operating lease costs $ 1,504 $ 1,514 $ 1,084 Finance lease costs: Amortization of right-of-use assets, net of capitalized amounts 1,092 — 6,731 Interest on lease liabilities, net of capitalized amounts 6,300 282 7,465 Total lease costs, net of capitalized amounts $ 8,896 $ 1,796 $ 15,280 Our finance lease for the land at Oak Shore provides Aimco with the option to terminate the lease after the property reaches stabilization, subject to certain conditions. The lease term includes the periods covered by this option. The weighted-average remaining terms and discount rates for our operating and finance leases are summarized in the table below as of December 31, 2024 and 2023. 2024 2023 Weighted average remaining lease term (years): Operating leases 4.3 5.2 Finance leases 92.5 93.4 Weighted-average discount rate: Operating leases 3.5 % 3.3 % Finance leases 6.1 % 6.1 % As of December 31, 2024 and 2023, operating lease right-of-use lease assets of $ 4.7 million and $ 6.2 million, respectively, are included in Other assets, net in our Consolidated Balance Sheets . As of December 31, 2024 and 2023, operating lease liabilities of $ 9.2 million and $ 11.5 million, respectively, are included in Accrued liabilities and other in our 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 Consolidated Balance Sheets . Leases with an initial term greater than 12 months are recorded as operating or finance leases in our Consolidated Balance Sheets . We have provided a lessor with a residual value guarantee of $ 6.1 million, which provides that if the residual value of the leased asset is less than the specified residual value guarantee at the earlier of lease expiration or termination, we are required to pay the difference. F- 30 Lease Termination Agreement In June 2022, we, as lessee, and AIR, as lessor, entered into a lease termination agreement with respect to four leases entered into on January 1, 2021 that pertained to our North Tower of Flamingo Point, 707 Leahy, The Fremont, and Prism properties. This agreement terminated these four finance leases on September 1, 2022. Upon termination, both parties were released of any and all liabilities and obligations under each respective lease other than those liabilities and obligations, if any, that expressly survived termination. On September 1, 2022, we relinquished control of the leasehold improvements on these four properties as well as the underlying land. In exchange, AIR remitted a total of $ 200.0 million in consideration to us as termination payments. Because the termination agreement modified the expiration date of each lease to September 1, 2022, we accelerated depreciation on the associated leasehold improvements using lease terms that ended September 1, 2022. We recorded $ 85.7 million of total depreciation expense for the year ended December 31, 2022. In addition, we recognized Lease modification income of $ 207.0 million, which is included in our Consolidated Statements of Operations for the year ended December 31, 2022. Annual Future Minimum Lease Payments Combined minimum annual lease payments under operating and finance leases are as follows as of December 31, 2024 (in thousands): Operating Leases Finance Leases 2025 $ 2,195 $ 4,146 2026 2,341 4,954 2027 2,380 5,483 2028 2,181 5,596 2029 800 5,708 Thereafter — 1,421,989 Total 9,897 1,447,876 Less: Discount ( 719 ) ( 1,326,031 ) Total lease liabilities $ 9,178 $ 121,845 Note 5 — Varia ble 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, six 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 seven unconsolidated VIEs for which we are not the primary beneficiary because we are not their primary decision maker. The seven 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 an unconsolidated investment in land held for development in Bethesda, Maryland. Our maximum exposure to loss, because of our involvement with the unconsolidated VIEs, is limited to the carrying value of their assets. F- 31 The details of our consolidated and unconsolidated VIEs, excluding those of Aimco Operating Partnership, are summarized in the table below as of December 31, 2024 and 2023 (in thousands, except for Count of VIEs): As of December 31, 2024 As of December 31, 2023 Consolidated Unconsolidated Consolidated Unconsolidated Count of VIEs 6 7 5 8 Assets Net real estate $ 593,837 $ — $ 466,719 $ — Cash and cash equivalents 4,625 — 3,940 — Restricted cash 14,913 — — — Notes receivable 18,571 — 17,432 — Right-of-use lease assets - finance leases 107,714 — 108,992 — Other assets, net 26,028 26,226 19,393 82,948 Liabilities Non-recourse construction loans, net 385,240 — 201,103 — Lease liabilities - finance leases 121,845 — 118,697 — Accrued liabilities and other 14,518 33,500 35,881 31,018 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 $ 172.0 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 December 31, 2024 are incorporated in the table above. In December 2024, we closed on the sale of our ownership interest in an unconsolidated investment in land held for development in the Edgewater neighborhood of Miami, Florida. Refer to Note 2 for additional discussion of the OTTI recognized in connection with this transaction. Note 6 —D ebt Non-recourse property debt We finance apartment communities in our portfolio primarily using property-level, non-recourse, long-dated, fixed-rate debt. The following table summarizes non-recourse property debt as of December 31, 2024 and 2023 (in thousands): As of December 31, Maturity Date Contractual Interest Rate Range Weighted-Average Interest Rate 2024 2023 Fixed-rate property debt June 1, 2029 to June 1, 2033 2.78 % to 4.68 % 4.39 % $ 689,885 $ 771,202 Variable-rate property debt — 81,300 Total non-recourse property debt $ 689,885 $ 852,502 Assumed debt fair value adjustment, net of accumulated amortization — 871 Debt issuance costs, net of accumulated amortization ( 4,465 ) ( 7,075 ) Total non-recourse property debt, net $ 685,420 $ 846,298 Principal and interest on our non-recourse property debt are generally payable monthly or in monthly interest-only payments with balloon payments due at maturity. As of December 31, 2024 , our property debt was secured by 16 properties with an aggregate net book value of $ 329.3 million. These non-recourse property debt instruments contain financial covenants common to the type of borrowing, and as of December 31, 2024, we were in compliance with all such covenants. F- 32 As of December 31, 2024, the scheduled principal amortization and maturity payments for the non-recourse property debt were as follows (in thousands): Amortization Maturities Total 2025 $ 1,472 $ — $ 1,472 2026 1,522 — 1,522 2027 1,573 — 1,573 2028 1,627 — 1,627 2029 1,682 179,646 181,328 Thereafter 2,781 499,582 502,363 Total $ 10,657 $ 679,228 $ 689,885 Non-recourse construction loans Our construction loans, which are primarily non-recourse loans except for customary construction loan guarantees, are summarized in the following table as of December 31, 2024 and 2023 (in thousands): As of December 31, Maturity Date Contractual Interest Rate Range Weighted-Average Interest Rate 2024 2023 Fixed-rate construction loans December 23, 2025 to December 23, 2052 3.25 % to 13.00 % 7.34 % $ 261,792 $ 41,829 Variable-rate construction loans June 3, 2025 to October 1, 2028 7.09 % to 8.86 % 7.56 % 131,958 267,692 Total non-recourse construction loans $ 393,750 $ 309,521 Assumed debt fair value adjustment, net of accumulated amortization ( 339 ) ( 351 ) Debt issuance costs, net of accumulated amortization ( 8,171 ) ( 7,727 ) Total non-recourse construction loans, net $ 385,240 $ 301,443 Interest-only payments on our construction loans are generally payable monthly with balloon payments due at maturity. As of December 31, 2024, our construction debt was secured by 4 properties with an aggregate net book value of $ 554.6 million. As of December 31, 2024, the scheduled principal maturity payments, prior to the consideration of extension options, for the non-recourse construction loans were as follows (in thousands): Principal Maturity Payments 2025 $ 153,843 2026 — 2027 — 2028 233,407 2029 — Thereafter 6,500 Total $ 393,750 F- 33 Revolving Credit Facility In December 2020, we entered into a credit agreement that provides for a $ 150.0 million secured credit facility, with a $ 20.0 million swingline loan sub-facility and a $ 30.0 million letter of credit sub-facility. We can request incremental commitments under the credit agreement up to an aggregate principal amount of $ 300.0 million. Our revolving secured credit facility matures in December 2025. The revolving loans (other than the swingline) will bear interest, at our option, at a per annum rate equal to (a) SOFR plus a margin of 2.11448 % or (b) a base rate plus a margin of 1.00 %. Swingline loans made under the revolving credit facility will bear interest at a per annum rate equal to the base rate plus a margin of 1.00 %. The base rate is defined as a fluctuating per annum rate of interest equal to the highest of (x) the overnight bank funding rate as reported by the Federal Reserve Bank of New York, plus 0.5 %, (y) PNC Bank, National Association’s prime rate and (z) the daily SOFR Rate plus 1.00 %. If the SOFR Rate determined under any referenced method would be less than 0.25 %, such rate shall be deemed 0.25 % . We may terminate or, from time to time, reduce the aggregate amount of commitments. As of December 31, 2024 , we had capacity to borrow $ 148.5 million on our secured revolving credit facility. Under our secured revolving credit facility, we have agreed to maintain a fixed charge coverage ratio of 1.25 x, minimum adjusted tangible net worth of $ 625.0 million, and maximum leverage of 60.0 % as defined in the credit agreement, among other customary covenants. We are in compliance with these covenants as of December 31, 2024. Notes Payable to AIR In July 2022, we completed the prepayment of $ 534.1 million of Notes Payable to AIR, which was entered into on December 14, 2020. As a result, we incurred $ 17.4 million of spread maintenance costs, which are included in Interest expense in our Consolidated Statements of Operations . For the year ended December 31, 2022, we recognized interest expense of $ 13.7 million associated with the Notes Payable to AIR, which is included in Interest expense in our Consolidated Statements of Operations . Note 7 — Inco me Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities of our taxable entities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax liabilities and assets as of December 31, 2024 and 2023 are as follows (in thousands): As of December 31, 2024 2023 Deferred tax liabilities: Real estate and real estate partnership basis differences $ 101,833 $ 110,379 Lease liability - finance lease 331 307 Other — 245 Deferred tax assets: Right-of-use lease asset - finance lease 338 386 Other 3,059 3,363 Net operating, capital, and other loss carryforwards 10,251 3,953 Valuation allowance for deferred tax assets ( 7,766 ) ( 4,664 ) Net deferred tax liability $ 96,282 $ 107,893 Our policy is to include any interest and penalties related to income taxes within Income tax benefit (expense) in our Consolidated Statements of Operations . F- 34 Significant components of the income tax benefit (expense) including any interest and penalties related to income taxes are as follows and are classified within Income tax benefit (expense) in our Consolidated Statements of Operations for the years ended December 31, 2024, 2023, and 2022 (in thousands): 2024 2023 2022 Current: Federal $ 314 $ 463 $ 12,499 State 226 ( 3,813 ) 5,840 Total current 540 ( 3,350 ) 18,339 Deferred: Federal ( 9,845 ) ( 7,182 ) ( 934 ) State ( 1,766 ) ( 2,220 ) ( 141 ) Total deferred ( 11,611 ) ( 9,402 ) ( 1,075 ) Total income tax (benefit) expense $ ( 11,071 ) $ ( 12,752 ) $ 17,264 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 year ended December 31, 2024, we had consolidated net losses subject to tax of $ 28.2 million, compared to consolidated net losses subject to tax of $ 15.2 million for the year ended December 31, 2023 and consolidated net income subject to tax of $ 88.8 million for the year ended December 31, 2022. The reconciliation of income tax attributable to operations computed at the United States statutory rate to income tax benefit recognized for the years ended December 31, 2024, 2023, and 2022, is shown below (in thousands): 2024 2023 2022 Amount Percent Amount Percent Amount Percent Tax (benefit) expense at United States statutory rates on consolidated income or loss subject to tax $ ( 5,929 ) 21.0 % $ ( 3,189 ) 21.0 % $ 18,641 21.0 % US branch profits tax on earnings of foreign subsidiary ( 4,171 ) 14.8 % ( 3,101 ) 20.4 % ( 1,965 ) ( 2.2 %) State income tax, net of federal (benefit) expense ( 1,580 ) 5.6 % ( 8,320 ) 54.8 % 4,590 5.2 % Effects of permanent differences ( 2,781 ) 9.9 % 96 ( 0.6 %) 209 0.2 % Uncertain tax positions — 0 % — 0 % ( 4,945 ) ( 5.6 %) Valuation allowance 3,472 ( 12.3 %) 2,270 ( 14.9 %) 1,109 1.2 % Other ( 82 ) 0.2 % ( 508 ) 3.3 % ( 375 ) ( 0.4 %) Change in Tax Rate — 0 % — 0 % — 0 % Total income tax (benefit) expense $ ( 11,071 ) 39.2 % $ ( 12,752 ) 84.0 % $ 17,264 19.4 % Income taxes paid totaled approximately $ 0.9 million, $ 1.7 million, and $ 22.9 million for the years ended December 31, 2024, 2023, and 2022, respectively. At December 31, 2024, we had federal and state net operating loss carry forwards ("NOLs"), for which the deferred tax asset was approximately $ 10.3 million, before a valuation allowance of $ 6.9 million. The NOLs expire in the years ended 2033 to 2043 . Subject to certain separate return limitations, we may use these NOLs to offset a portion of taxable income generated by our TRS entities. For income tax purposes, dividends paid to holders of Common Stock primarily consist of ordinary income, capital gains, qualified dividends, unrecaptured Section 1250 gains, or a combination thereof. For the years ended December 31, 2024, 2023, and 2022, tax attributes of dividends per share held for the entire year were estimated to be as follows (unaudited): 2024 2023 2022 Amount Percent Amount Percent Amount Percent Ordinary income $ — 0.0 % $ — 0.0 % $ 0.01 53.5 % Capital gains — 0.0 % — 0.0 % 0.01 46.5 % Qualified dividends — 0.0 % — 0.0 % — 0.0 % Unrecaptured § 1250 gain — 0.0 % — 0.0 % — 0.0 % Return of capital — 0.0 % — 0.0 % — 0.0 % Balance at December 31, $ — 0.0 % $ — 0.0 % $ 0.02 100.0 % F- 35 A reconciliation of the beginning and ending balance of our unrecognized tax benefits is presented below and is included in Accrued liabilities and other in our Consolidated Balance Sheets (in thousands): Because the statute of limitations has not yet elapsed, our United States federal income tax returns for the year ended December 31, 2021, and subsequent years and certain of our state income tax returns for the year ended December 31, 2021, and subsequent years are currently subject to examination by the IRS or other taxing authorities. If recognized, the unrecognized tax benefits would affect our effective tax rate. 2024 2023 Balance at January 1, $ 2,092 $ 2,135 Additions based on tax positions in prior years 47 52 Lapse of applicable statute of limitations ( 165 ) ( 95 ) Balance at December 31, $ 1,974 $ 2,092 In accordance with the accounting requirements for stock-based compensation, we may recognize tax benefits in connection with the exercise of stock options by employees of our TRS entities and the vesting of restricted stock awards. We recognize the tax effects related to stock-based compensation through earnings in the period the compensation is recognized. Note 8 — Ai mco Equity Common Stock Aimco's Board is authorized to issue up to 510,587,500 shares of capital stock, which consists entirely of Common Stock as of December 31, 2024. Aimco had 136,351,966 and 140,576,102 shares of C ommon Stock issued and outstanding at December 31, 2024 and 2023, respectively. Stock Repurchases Aimco's Board has, from time to time, authorized Aimco to repurchase shares of its outstanding Common Stock. The total remaining authorization for future share repurchases is 16.3 mil lion shares of its outstanding Common Stock, subject to certain customary limitations, which may be made from time to time in the open market or in privately negotiated transactions. This remaining authorization has no expiration date. During the years ended December 31, 2024, 2023, and 2022, Aimco repurchased approximate ly 4.9 mill ion, 6.2 million, and 3.5 million shares of its Common Stock at weighted-average prices of $ 8.01 , $ 7.33 , and $ 7.21 per share, respectively. Cash Dividends As a REIT, Aimco is required to distribute annually to holders of shares of its Common Stock at least 90.0 % of its “real estate investment trust taxable income,” which, as defined by the Code and United States Department of Treasury regulations, is generally equivalent to net taxable ordinary income. Aimco's Board determines and declares Aimco's dividends. In making a dividend determination, Aimco's Board considers a variety of factors, including REIT distribution requirements, current market conditions, liquidity needs, and other uses of cash, such as deleveraging and accretive investment activities. A special cash dividend of $ 0.60 per share was declared on December 19, 2024 , to stockholders of record on January 14, 2025 . The cash dividend was paid on January 31, 2025 . The declared dividends are classified within Dividends payable in Aimco's Consolidated Balance Sheets as of December 31, 2024. No dividends were declared or paid during the year ended December 31, 2023. On September 30, 2022, Aimco paid a special cash dividend of $ 0.02 per share to stockholders of record on September 14, 2022 . Note 9 — Part ners’ Capital In Aimco Operating Partnership’s Consolidated Balance Sheets , the OP Units held by Aimco are classified within Partners’ capital as General Partner and Special Limited Partner capital and the OP Units held by entities other than Aimco are classified within Limited Partners capital. In Aimco's Consolidated Balance Sheets , the OP Units held by entities other than Aimco are classified within permanent equity as Common noncontrolling interests in Aimco Operating Partnership . F- 36 OP Units held by Aimco are not redeemable whereas OP Units held by interests in Aimco Operating Partnership other than Aimco are redeemable at the holders’ option, subject to certain restrictions, on the basis of one OP Unit for either one share of Common Stock or cash equal to the fair value of a share of Common Stock at the time of redemption. Aimco has the option to deliver shares of Common Stock in exchange for all or any portion of such OP Units tendered for redemption. When a limited partner redeems an OP Unit for Common Stock, Limited Partners' capital is reduced, and the General Partner and Special Limited Partners’ capital is increased. Entities other than Aimco that hold OP Units receive distributions in an amount equivalent to the dividends paid to holders of Common Stock. During the years ended December 31, 2024 and 2022, the Aimco Operating Partnership declared distributions per common unit of $ 0.60 and $ 0.02 , respectively. There were no dividends declared or paid during the year ended December 31, 2023. During the years ended December 31, 2024 and 2023, there were no OP Units redeemed in exchange for shares of Common Stock. During the year ended December 31, 2022 , approximately 108,000 OP Units were redeemed in exchange for shares of Common Stock. During the years ended December 31, 2024, 2023, and 2022, approximately 119,000 , 149,000 , and 33,000 OP Units were redeemed in exchange for cash at aggregate weighted average prices per unit of $ 8.28 , $ 7.24 , and $ 7.07 , respectively. Note 10 — Earnings per Sh are 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 years ended December 31, 2024, and December 31, 2023, because the effect of their inclusion would be antidilutive. The Common Stock and OP Unit equivalents were included in the computation of diluted earnings per share and unit for the year ended December 31, 2022, because the effect of their inclusion was dilutive. As of December 31, 2024 , the Common Stock and OP Unit equivalents that could potentially dilute basic earnings per share or unit in future periods totaled 3.9 million and 8.2 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. 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 years ended December 31, 2024 and December 31, 2023, because the effect of their inclusion would be antidilutive. Participating securities were included in the computation of diluted earnings per share and unit for the year ended December 31, 2022, because the effect of their inclusion was dilutive. As of December 31, 2024, participating securities that could potentially dilute basic earnings per share or unit in future periods totaled 2.5 million. F- 37 Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the years ended December 31, 2024, 2023 and 2022, are as follows (in thousands, except per share and per unit data): Year ended December 31, 2024 2023 2022 Earnings per share Numerator: Net income (loss) attributable to Aimco $ ( 102,468 ) $ ( 166,196 ) $ 75,726 Net income (loss) allocated to Aimco participating securities ( 1,520 ) — ( 1,087 ) Net income (loss) attributable to Aimco common stockholders $ ( 103,988 ) $ ( 166,196 ) $ 74,639 Denominator - shares: Basic weighted-average common stock outstanding 138,496 143,618 149,395 Diluted share equivalents outstanding — — 1,439 Diluted weighted-average common stock outstanding 138,496 143,618 150,834 Earnings (loss) per share - basic $ ( 0.75 ) $ ( 1.16 ) $ 0.50 Earnings (loss) per share - diluted $ ( 0.75 ) $ ( 1.16 ) $ 0.49 Earnings per unit Numerator: Net income (loss) attributable to Aimco Operating Partnership $ ( 108,109 ) $ ( 175,234 ) $ 79,657 Net income (loss) allocated to Aimco Operating Partnership participating securities ( 1,520 ) — ( 1,131 ) Net income (loss) attributable to Aimco Operating Partnership's common unit holders $ ( 109,629 ) $ ( 175,234 ) $ 78,526 Denominator - units Basic weighted-average OP Units outstanding 146,120 151,371 157,317 Diluted OP Unit equivalents outstanding — - 1,457 Diluted weighted-average OP Units outstanding 146,120 151,371 158,774 Earnings (loss) per unit - basic $ ( 0.75 ) $ ( 1.16 ) $ 0.50 Earnings (loss) per unit - diluted $ ( 0.75 ) $ ( 1.16 ) $ 0.49 Note 11 — Share-Ba sed Compensation We have a stock award and incentive program to attract and retain employees and independent directors. As of December 31, 2024 , approximately 18.2 million shares were available for issuance under the Second Amended and Restated 2015 Stock Award and Incentive Plan (the “2015 Plan”). The total number of shares available for issuance under this plan may increase due to any forfeiture, cancellation, exchange, surrender, termination or expiration of an award outstanding under the 2015 Plan. Awards under the 2015 Plan may be in the form of stock options, stock, and LTIP Units as authorized under the 2015 Plan. Our plans are administered by the Compensation and Human Resources Committee of the Board. In connection with the Separation, we entered into an agreement to modify all outstanding awards granted to the holders of such awards. Each outstanding time or performance based Aimco award was converted into one share of Aimco Common Stock and one share of AIR common stock. Generally, all such Aimco equity awards retained the same terms and vesting conditions as the original Aimco equity awards immediately before the Separation. Following the Separation, compensation expense related to these modified awards for the employees retained by us was incurred by Aimco. The compensation expense related to these modified awards for employees of AIR was incurred by AIR. For the years ended December 31, 2024, 2023, and 2022, total compensation cost recognized for share-based awards was (in thousands): 2024 2023 2022 Share-based compensation expense (1) $ 6,494 $ 9,221 $ 6,441 Capitalized share-based compensation (2) 1,019 1,274 1,016 Total share-based compensation (3) $ 7,513 $ 10,495 $ 7,457 (1) Amounts are recorded in General and administrative expenses in our Consolidated Statements of Operations. (2) Amounts are recorded in Buildings and improvements in our Consolidated Balance Sheets. (3) Amounts are recorded in Additional paid-in capital and Common noncontrolling interests in Aimco Operating Partnership in our Consolidated Balance Sheets, and in General Partner and Special Limited Partner and Limited Partners in Aimco Operating Partnership's Consolidated Balance Sheets. F- 38 As of December 31, 2024, our share of total unvested compensation cost not yet recognized was $ 8.0 million. We expect to recognize this compensation cost over a weighted-average period of approximately 1.4 years. The aggregate fair value of the vested Restricted Stock Awards and LTIP I Units during each of the years ended December 31, 2024, 2023, and 2022 was $ 2.1 million, $ 0.9 million, and $ 0.6 million, respectively. For our employees, we grant restricted stock awards and two forms of LTIP Units that are subject to time-based vesting and require continuous employment, typically over a period of three to five years from the grant date, and we refer to these awards as Time-Based Restricted Stock, Time-Based LTIP I Units, and Time-Based LTIP II Units. We also grant stock options, restricted stock awards, and two forms of LTIP Units, that vest conditioned on our total shareholder return (“TSR”), relative to identified indices over a forward-looking performance period of three years . We refer to these awards as TSR Stock Options, TSR Restricted Stock, and TSR LTIP II Units. Earned TSR-based awards, if any, will generally vest over a period of three to four years from the grant date, based on continued employment. Vested LTIP II Units may be converted at the holders’ option to LTIP Units for a conversion metric over a term of 10 years. Our TSR Stock Options generally expire 10 years from the date of grant. We recognize compensation cost associated with time-based awards ratably over the requisite service periods. We recognize compensation cost related to the TSR-based awards, over the requisite service period, commencing on the grant date. The value of the TSR-based awards takes into consideration the probability that the market condition will be achieved; therefore, previously recorded compensation cost is not adjusted in the event that the market condition is not achieved, and awards do not vest. We had Time-Based Restricted Stock, Time-Based LTIP I Units, Time-Based LTIP II Units, TSR Stock Options, TSR Restricted Stock, and TSR LTIP II Units outstanding as of December 31, 2024 . The following two tables summarize activity for equity compensation for the year ended December 31, 2024. Unvested TSR Stock Options Time-Based Restricted Stock Awards TSR Restricted Stock Awards Number of Options Weighted-Average Exercise Price Number of Shares Weighted-Average Fair Value Number of Shares Weighted-Average Fair Value Outstanding at beginning of year 529,967 $ 6.78 2,475,180 $ 6.87 981,454 $ 7.71 Granted 317,200 6.66 103,442 7.62 595,999 8.52 Exercised — — N/A N/A N/A N/A Vested ( 317,200 ) 6.66 ( 271,158 ) 7.15 ( 254,037 ) 8.54 (1) Forfeited — — ( 24,784 ) 7.36 — — (1) Outstanding at end of year 529,967 $ 6.78 2,282,680 $ 6.87 1,323,416 $ 7.92 (1) Weighted-average grant date fair value is based off pre-Separation values when the awards were granted. Unvested LTIP I Units Unvested TSR LTIP II Units Unvested Time LTIP II Units Convertible LTIP II Units Number of Units Weighted-Average Fair Value (1) Number of Units Weighted-Average Conversion Metric Number of Units Weighted-Average Conversion Metric Number of Units Weighted-Average Conversion Metric Outstanding at beginning of year 2,294 $ 53.39 900,535 $ 5.51 — $ — 1,310,624 $ 7.23 Granted — — 555,556 4.62 — — — — Exercised N/A N/A — — — — — — Vested ( 2,294 ) 53.39 ( 558,985 ) 4.63 — — 558,985 4.63 Forfeited — — — — — — — — Outstanding at end of year — $ — 897,106 $ 5.51 — $ — 1,869,609 $ 6.45 (1) Weighted-average grant date fair value is based off pre-Separation values when the awards were granted. The aggregate intrinsic values are calculated as the difference between the closing price of Aimco common stock on the last trading day of the year and the exercise price multiplied by the number of in-the-money TSR Stock Options and LTIP II Units had they all been exercised and converted, respectively, on December 31, 2024. The aggregate intrinsic values for those that were exercisable or convertible and unvested were $ 5.7 million and $ 5.1 million, respectively. F- 39 The following table summarizes the unvested equity, exercisable stock options and convertible LTIP II units that are potentially dilutive to Aimco and Aimco Operating Partnership as of December 31, 2024 (in thousands, except shares): Awards Aimco Unvested Compensation Not Yet Recognized (1) TSR Stock Options 529,967 $ — Time-Based Restricted Stock Awards 2,282,680 4,324 TSR Restricted Stock Awards 1,323,416 3,687 TSR LTIP II Units 897,106 — Total awards 5,033,169 $ 8,011 (1) Unvested compensation not yet recognized represents our compensation cost for our employees. Compensation costs related to shares issued to AIR employees are recognized by AIR . In addition to the potentially dilutive awards held by Aimco employees, AIR employees and former AIR employees hold 0.8 million stock options and 1.0 million TSR LTIP II Units. The weighted average exercise price of stock-based options held by AIR and former AIR employees is $ 4.61 per share; the weighted average exercise price of LTIP II Units held by AIR and former AIR employees is $ 5.62 per unit. Determination of Grant-Date Fair Value Awards We estimated the fair value of TSR-based awards granted in 2024, 2023, and 2022 using a Monte Carlo simulation valuation method. Under this method, the prices of the indices and shares of our Common Stock were simulated through the end of the performance period. The correlation matrix between shares of our Common Stock and the indices, as well as the corresponding return volatilities, were developed based upon an analysis of historical data. The following table includes the assumptions used for the valuation of TSR-based awards that were granted in 2024, 2023, and 2022. TSR Award Assumptions 2024 2023 2022 Grant date market value of a common share $ 7.43 $ 7.59 $ 6.96 Risk-free interest rate 4.11 %- 5.20 % 3.89 %- 4.73 % 0.19 %- 1.38 % Dividend yield 0 % 0 % 0 % Expected volatility 31.28 %- 33.16 % 34.08 %- 36.19 % 32.09 %- 33.04 % Derived vesting period of TSR Restricted Stock 3 3 3 Weighted average expected term of TSR Stock Options, TSR LTIP I Units, and TSR LTIP II Units N/A N/A 4.9 Note 12 — Fair Val ue Measurements and Disclosures Recurring Fair Value Measurements In determining the fair value of our financial instruments, we apply Accounting Standards Codification ("ASC") 820, “ Fair Value Measurement and Disclosures ”. Fair value hierarchy under ASC 820 distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (Levels 1 and 2) and the reporting entity’s own assumptions about market participant data (Level 3). Fair value estimates may differ from the amounts that may ultimately be realized upon sale or disposition of the assets and liabilities. 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 contracts in our Consolidated Balance Sheets . As of December 31, 2024, we held interest rate caps with a maximum notional value of $ 370.3 million. These instruments were acquired for $ 3.5 million, and the fair value of these instruments is $ 0.9 million as noted in the table below. During the year ended December 31, 2023, we monetized the $ 1.5 billion notional amount interest rate swaption, purchased in conjunction with the Mezzanine Investment to protect against future interest rate increases, for gross proceeds of $ 54.2 million. On a recurring basis, we measure at fair value our interest rate contracts. Our interest rate contracts 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 contracts in our 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 contracts , and any proceeds are reflected in Proceeds from interest rate contracts in our Consolidated Statements of Cash Flows . F- 40 As of December 31, 2024 and 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 December 31, 2024 and 2023, we had investments in property technology funds of $ 3.5 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. The period of time over which the underlying assets in these investments are expected to be liquidated is unknown. See Note 13 for further information regarding unfunded commitments related to these investments. The following table summarizes the fair value of our interest rate contracts, investments in stock, and our investments in real estate technology funds as of December 31, 2024 and 2023 (in thousands): As of December 31, 2024 As of December 31, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Interest rate contracts $ 862 $ — $ 862 $ — $ 5,237 $ — $ 5,237 $ — Investments in stock 1,573 1,573 — — 2,868 2,868 — — Investments in real estate technology funds (1) 3,468 — — — 2,508 — — — Total assets $ 5,903 $ 1,573 $ 862 $ — $ 10,613 $ 2,868 $ 5,237 $ — (1) Investments measured at fair value using the NAV 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 December 31, 2024 and 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 fair value hierarchy based on the significance of certain of the observable inputs used to estimate their fair value. The following table summarizes carrying value and fair value of our non-recourse property debt and non-recourse construction loans as of December 31, 2024 and 2023 (in thousands): As of December 31, 2024 As of December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Non-recourse property debt $ 689,885 $ 641,563 $ 852,502 $ 807,240 Non-recourse construction loans 393,750 393,756 309,521 309,170 Total $ 1,083,635 $ 1,035,319 $ 1,162,023 $ 1,116,410 Nonrecurring Fair Value Measurements Mezzanine Investment During the years ended December 31, 2023 and 2022, we tested the Mezzanine Investment for impairment given triggering events that occurred and we recorded non-cash impairment charges to reduce the carrying value of the Mezzanine Investment to zero and $ 158.6 million, respectively . We used internally developed models to determine the fair value of the Mezzanine Investment. This incorporated the fair value of the underlying real estate collateral that incorporates various estimates and assumptions, the most significant being the capitalization rate of 5.25 % compared to 3.75 % as of December 31, 2023 and 2022, respectively. These assumptions are based on Level 3 inputs. See Note 2 for further details. Investment in IQHQ During the year ended December 31, 2024, we recorded a non-cash impairment charge of $ 48.6 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. The fair value estimates of the properties owned by IQHQ were determined by discounted cash flow analyses and references to market comparable data. The cash flows utilized in such discounted cash flow analyses are comprised of projected operating results, which are based upon market conditions and future expectations. The most significant unobservable inputs utilized in determining the fair value of these assets are capitalization rates and discount rates, which ranged from 6.00 % to 7.00 % and 7.25 % to 10.25 %, respectively. Because of these inputs, we have determined that the fair value of these properties are classified within Level 3 of the fair value hierarchy. F- 41 Market comparable data utilizes comparable sales, which are subject to judgment as to comparability to the valued properties. 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. Note 13 — Commitm ents 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 December 31, 2024, we had remaining commitments for non-recourse construction-related contracts of $ 146.9 million, with $ 157.0 million undrawn on our construction loans. As of December 31, 2024, we have remaining unfunded commitments of $ 1.4 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. 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 result of operations. Note 14 — Busi ness Segments We have three segments: (i) Development and Redevelopment; (ii) Operating; and (iii) Other. Our Development and Redevelopment segment consists of properties that are under construction or have not achieved stabilization, as well as land held for development. As of December 31, 2024 , our Development and Redevelopment segment consists of 9 properties, including one under construction and three substantially completed and in lease-up. Our Operating segment includes 20 residential apartment communities with 5,243 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. Our Other segment consists of properties currently owned that are not included in our Development and Redevelopment or Operating segments. Our Other segment includes The Benson Hotel, our only hotel. During the first quarter of 2024, we revised the information regularly reviewed by our President and Chief Executive Officer , the 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 year ended December 31, 2024, we disposed of a majority of our partnership interest in St. George Villas, which was previously reported within the Other segment, and The Hamilton, which was previously reported within the Development and Redevelopment segment. We also reclassified as held for sale 1001 Brickell Bay Drive, which was previously reported within the Other segment, and Yacht Club Apartments, which was previously reported in our Operating 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 CODM evaluates performance and allocates resources for all of our segments using property net operating income ("PNOI"), which is our measure of segment profit or loss. PNOI is defined as rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, including 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, the Mezzanine Investment, and investments in real estate technology funds; a nd • property management costs and casualty gains or losses, reported in consolidated amounts, in our assessment of segment performance. F- 42 Our CODM uses historical and projected PNOI to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget process. PNOI is used to review operating trends, perform analytical comparisons between periods, and to monitor budget-to-actual variances on at least a quarterly basis in order to assess performance and allocate resources. The corporate goals, which impact short term incentive compensation for employees, also include consideration of PNOI. The accounting policies of segments are the same as those described in the summary of significant accounting policies described in Note 2. The following tables present the results of operations of consolidated properties with our segments for the years ended December 31, 2024, 2023, and 2022 (in thousands): Development and Redevelopment Operating Other Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated December 31, 2024 Rental and other property revenues $ 9,852 $ 140,099 $ 6,690 $ 7,977 $ 44,061 $ 208,679 Controllable operating expenses (3) 4,527 18,567 6,746 — 6,239 36,079 Real estate taxes, net of capitalized amounts 1,963 16,653 593 — 7,312 26,521 Utilities expense, net of utility reimbursements 1,959 3,096 255 7,977 1,410 14,697 Property insurance expense, net of capitalized amounts 1,019 2,773 118 — 2,059 5,969 Other property operating expenses (4) — — — — 7,718 7,718 Property operating expenses 9,468 41,089 7,712 7,977 24,738 90,984 Property net operating income (loss) 384 99,010 ( 1,022 ) — 19,323 117,695 Other operating expenses not allocated to segments (5) — — — — ( 119,196 ) ( 119,196 ) Other items included in income before income tax (6) — — — — ( 105,570 ) ( 105,570 ) Income (loss) before income tax $ 384 $ 99,010 $ ( 1,022 ) $ — $ ( 205,443 ) $ ( 107,071 ) Development and Redevelopment Operating Other Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated December 31, 2023 Rental and other property revenues $ 109 $ 134,078 $ 2,691 $ 6,800 $ 43,317 $ 186,995 Controllable operating expenses (3) 670 18,094 4,029 — 6,096 28,889 Real estate taxes, net of capitalized amounts 84 15,513 475 — 5,634 21,706 Utilities expense, net of utility reimbursements 114 3,144 179 6,800 1,432 11,669 Property insurance expense, net of capitalized amounts 59 2,605 27 — 2,111 4,802 Other property operating expenses (4) — — — — 6,646 6,646 Property operating expenses 927 39,356 4,710 6,800 21,919 73,712 Property net operating income (loss) ( 818 ) 94,722 ( 2,019 ) — 21,398 113,283 Other operating expenses not allocated to segments (5) — — — — ( 101,699 ) ( 101,699 ) Other items included in income before income tax (6) — — — — ( 181,655 ) ( 181,655 ) Income (loss) before income tax $ ( 818 ) $ 94,722 $ ( 2,019 ) $ — $ ( 261,956 ) $ ( 170,071 ) F- 43 Development and Redevelopment Operating Other Adjustments (1) Corporate and Amounts Not Allocated to Segments (2) Consolidated December 31, 2022 Rental and other property revenues $ 24 $ 124,443 $ — $ 7,306 $ 58,571 $ 190,344 Controllable operating expenses (3) 126 17,226 383 — 9,389 27,124 Real estate taxes, net of capitalized amounts 64 15,674 74 — 6,955 22,767 Utilities expense, net of utility reimbursements 1 3,082 — 7,306 1,397 11,786 Property insurance expense, net of capitalized amounts — 1,821 — — 1,328 3,149 Other property operating expenses (4) — — — — 6,966 6,966 Property operating expenses 191 37,803 457 7,306 26,035 71,792 Property net operating income (loss) ( 167 ) 86,640 ( 457 ) — 32,536 118,552 Other operating expenses not allocated to segments (5) — — — — ( 198,640 ) ( 198,640 ) Other items included in income before income tax (6) — — — — 189,510 189,510 Income (loss) before income tax $ ( 167 ) $ 86,640 $ ( 457 ) $ — $ 23,406 $ 109,422 (1) Represents the reclassification of utility reimbursements, which are included in Rental and other property revenues in our 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) Controllable operating expenses primarily consists of property personnel costs, marketing, repairs and maintenance, turnover, and contract services expense. (4) Other property operating expenses include property management costs and casualty gains or losses. (5) Other operating expenses not allocated to segments consists of depreciation and amortization and general and administrative expense. (6) Other items included in Income before income tax benefit (expense) consists primarily of lease modification income, gain on disposition of real estate, interest income, interest expense, mezzanine investment income (loss), net, realized and unrealized gains (losses) on interest rate contracts, and realized and unrealized gains (losses) on equity investments. Net real estate and non-recourse property debt, net, of our segments as of December 31, 2024 and 2023, were as follows (in thousands): Development and Redevelopment Operating Other Corporate (1) Total As of December 31, 2024 Buildings and improvements $ 620,000 $ 653,184 $ 75,741 $ — $ 1,348,925 Land 165,633 231,046 1,503 — 398,182 Total real estate 785,633 884,230 77,244 — 1,747,107 Accumulated depreciation ( 20,872 ) ( 468,040 ) ( 10,362 ) — ( 499,274 ) Net real estate $ 764,761 $ 416,190 $ 66,882 $ — $ 1,247,833 Non-recourse property debt and construction loans, net $ 385,240 $ 685,420 $ — $ — $ 1,070,660 F- 44 Development and Redevelopment Operating Other Corporate (1) Total As of December 31, 2023 Buildings and improvements $ 492,993 $ 655,059 $ 75,725 $ 370,025 $ 1,593,802 Land 163,513 231,047 1,503 224,758 620,821 Total real estate 656,506 886,106 77,228 594,783 2,214,623 Accumulated depreciation ( 952 ) ( 456,360 ) ( 4,204 ) ( 119,286 ) ( 580,802 ) Net real estate $ 655,554 $ 429,746 $ 73,024 $ 475,497 $ 1,633,821 Non-recourse property debt and construction loans, net $ 201,103 $ 686,147 $ — $ 260,491 $ 1,147,741 (1) During the years ended December 31, 2024 and 2023 certain properties were sold or reclassified as held for sale, and therefore are not included in our segment balance sheets at year end. We added a Corporate column to the tables above for presentation purposes to display these assets and the associated debt as of December 31, 2023 . Capital additions within our segments for the years ended December 31, 2024, 2023 and 2022, were as follows (in thousands): Year Ended December 31, 2024 2023 2022 Development and Redevelopment $ 126,125 $ 258,888 $ 159,419 Operating 12,772 11,788 23,997 Other 26 8,782 33,201 Corporate amounts not allocated to segments (1) 2,749 13,463 56,763 Total capital additions $ 141,672 $ 292,921 $ 273,380 (1) During the years ended December 31, 2024, 2023 and 2022, certain capital additions pertained to properties that were sold or reclassified as held for sale, and therefore are not included in our segments as capital additions at those respective year ends. We added a Corporate row to the table above for presentation purposes to display these capital additions as of December 31, 2024, 2023 and 2022 , respectively. In addition to the amounts disclosed in the tables above, as of December 31, 2024, the Development and Redevelopment segment right-of-use lease assets and lease liabilities aggregated to $ 107.7 million and $ 121.8 million, respectively, and as of December 31, 2023 , aggregated to $ 109.0 million and $ 118.7 million, respectively. As of December 31, 2024, right-of-use lease assets and lease liabilities primarily related to our investments in Upton Place, Strathmore Square and Oak Shore. F- 45 APARTMENT INVESTMENT AND MANAGEMENT COMPANY AIMCO OP L.P. SCHEDULE III: REAL ESTATE AN D ACCUMULATED DEPRECIATION December 31, 2024 (In Thousands) (2) Gross Amount at Which Initial Costs Costs Capitalized Carried at Close of Period (3) (4) (5) Buildings and Total Initial Subsequent to Buildings and Total Carrying Accumulated Date Location Encumbrances Land Improvements Acquisition Costs Acquisition Land Improvements Value Depreciation Acquired Operating: 118-122 West 23rd Street New York, NY ( 16,472 ) 14,985 23,459 38,444 6,220 14,985 29,679 44,664 ( 13,623 ) Jun 2012 173 E. 90th Street New York, NY ( 12,138 ) 12,066 4,535 16,601 8,857 12,066 13,392 25,458 ( 7,533 ) May 2004 237-239 Ninth Avenue New York, NY ( 6,148 ) 8,495 1,866 10,361 1,849 8,495 3,715 12,210 ( 2,561 ) Mar 2005 1045 on the Park Apartments Homes Atlanta, GA ( 6,007 ) 2,793 6,662 9,455 1,548 2,793 8,210 11,003 ( 3,322 ) Jul 2013 2200 Grace Lombard, IL ( 11,193 ) 642 7,788 8,430 531 642 8,319 8,961 ( 6,108 ) Aug 2018 Bank Lofts Denver, CO ( 18,540 ) 3,525 9,045 12,570 5,546 3,525 14,591 18,116 ( 9,382 ) Apr 2001 Bluffs at Pacifica, The Pacifica, CA — 8,108 4,132 12,240 18,013 8,108 22,145 30,253 ( 16,367 ) Oct 2006 Elm Creek Elmhurst, IL ( 78,095 ) 5,910 30,830 36,740 30,357 5,910 61,187 67,097 ( 42,311 ) Dec 1997 Evanston Place Evanston, IL ( 46,670 ) 3,232 25,546 28,778 16,994 3,232 42,540 45,772 ( 27,067 ) Dec 1997 Hillmeade Nashville, TN ( 46,026 ) 2,872 16,070 18,942 22,985 2,872 39,055 41,927 ( 29,530 ) Nov 1994 Hyde Park Tower Chicago, IL ( 29,484 ) 4,731 14,927 19,658 14,818 4,731 29,745 34,476 ( 17,877 ) Oct 2004 Plantation Gardens Plantation, FL ( 60,133 ) 3,773 19,443 23,216 24,796 3,773 44,239 48,012 ( 34,354 ) Oct 1999 Royal Crest Estates (Warwick) Warwick, RI — 22,433 24,095 46,528 7,909 22,433 32,004 54,437 ( 27,539 ) Aug 2002 Royal Crest Estates (Nashua) Nashua, NH ( 173,435 ) 68,230 45,562 113,792 17,139 68,231 62,700 130,931 ( 56,440 ) Aug 2002 Royal Crest Estates (Marlboro) Marlborough, MA ( 68,495 ) 25,178 28,786 53,964 14,240 25,178 43,026 68,204 ( 37,379 ) Aug 2002 Waterford Village Bridgewater, MA — 29,110 28,101 57,211 13,985 29,110 42,086 71,196 ( 36,001 ) Aug 2002 Eldridge Elmhurst, IL ( 26,691 ) 3,483 35,706 39,189 163 3,483 35,869 39,352 ( 4,432 ) Aug 2021 Wexford Village Worcester, MA — 6,349 17,939 24,288 5,838 6,349 23,777 30,126 ( 19,207 ) Aug 2002 Willow Bend Rolling Meadows, IL ( 43,501 ) 2,717 15,437 18,154 18,588 2,717 34,025 36,742 ( 29,355 ) May 1998 Yorktown Apartments Lombard, IL ( 46,857 ) 2,413 10,374 12,787 52,506 2,413 62,880 65,293 ( 47,652 ) Dec 1999 Total Operating ( 689,885 ) 231,045 370,303 601,348 282,882 231,046 653,184 884,230 ( 468,040 ) Development and redevelopment: Bioscience 4 Aurora, CO — — — — 5,021 — 5,021 5,021 — Feb 2023 34th Street Miami, FL ( 18,407 ) 19,582 — 19,582 41,840 19,872 41,550 61,422 — Jul 2021 One Edgewater Miami, FL — 12,377 — 12,377 5,767 14,560 3,584 18,144 — Jul 2021 Flying Horse Colorado Springs, CO — 4,257 — 4,257 3,860 4,269 3,848 8,117 — Jul 2021 Oak Shore Corte Madera, CA ( 19,651 ) — — — 57,326 — 57,326 57,326 ( 1,773 ) Jun 2021 Upton Place Washington, DC ( 215,000 ) — 21,280 21,280 275,084 — 296,364 296,364 ( 14,566 ) Dec 2020 Strathmore Square Washington, DC ( 140,692 ) — — — 160,391 — 160,391 160,391 ( 4,533 ) Feb 2022 300 W. Broward Blvd. Ft. Lauderdale, FL — 21,355 — 21,355 16,485 20,616 17,224 37,840 — Jan 2022 Fitzsimons Phase Four Aurora, CO — 2,016 — 2,016 2,193 2,040 2,169 4,209 — Dec 2022 Sears Parcel 1 Ft. Lauderdale, FL — 68,485 — 68,485 25,037 68,485 25,037 93,522 — Jun 2022 Sears Parcel 2 Ft. Lauderdale, FL — 20,737 — 20,737 3,958 20,460 4,235 24,695 — Jul 2022 Sears Parcel 3 Ft. Lauderdale, FL — 16,402 — 16,402 2,180 15,331 3,251 18,582 — Jun 2022 Total Development and redevelopment ( 393,750 ) 165,211 21,280 186,491 599,142 165,633 620,000 785,633 ( 20,872 ) Other: The Benson Hotel Aurora, CO — 1,503 4,414 5,917 71,327 1,503 75,741 77,244 ( 10,362 ) Jan 2021 Total Other — 1,503 4,414 5,917 71,327 1,503 75,741 77,244 ( 10,362 ) Held for sale: 1001 Brickell Bay Drive Miami, FL ( 81,300 ) 150,018 152,791 302,809 11,552 150,018 164,343 314,361 ( 90,897 ) Jul 2019 Yacht Club Apartments Miami, FL ( 77,949 ) 31,362 32,214 63,576 21,832 31,363 54,045 85,408 ( 35,943 ) Dec 2003 Total Held for sale ( 159,249 ) 181,380 185,005 366,385 33,384 181,381 218,388 399,769 ( 126,840 ) Debt issuance costs and other non-cash adjustments (1) 13,336 Total Portfolio $ ( 1,229,548 ) $ 579,139 $ 581,002 $ 1,160,141 $ 986,735 $ 579,563 $ 1,567,313 $ 2,146,876 $ ( 626,114 ) (1) Includes unamortized fair market adjustments of debt assumed in the acquisition of properties. (2) Includes costs capitalized since acquisition or date of initial acquisition of the community. (3) The aggregate cost of land and depreciable property for federal income tax purposes was a pproximately $ 1.6 billion as of December 31, 2024. (unaudited) (4) Depreciable life for buildings and improvements ranges from five to 30 years and is calculated on a straight-line basis. (5) Date we acquired the apartment community or first acquired the partnership that owns the community. F- 46 APARTMENT INVESTMENT AND MANAGEMENT COMPANY AIMCO OP L.P. SCHEDULE III: REAL ESTATE AND ACCUMULATED DEPRECIATION For the Years Ended December 31, 2024, 2023, and 2022 (In Thousands) 2024 2023 2022 Total real estate balance at beginning of year $ 2,214,623 $ 1,963,483 $ 1,791,499 Additions during the year: Acquisitions — 1,893 146,236 Capital additions 141,672 292,921 273,380 Dispositions ( 193,878 ) ( 30,347 ) ( 233,308 ) Write-offs of fully depreciated assets and other ( 15,541 ) ( 13,327 ) ( 14,324 ) Amounts related to assets held for sale ( 399,769 ) — — Total real estate balance at end of year $ 1,747,107 $ 2,214,623 $ 1,963,483 Accumulated depreciation balance at beginning of year $ 580,802 $ 530,722 $ 561,115 Depreciation 79,609 63,407 143,983 Dispositions ( 18,756 ) — ( 160,052 ) Write-offs of fully depreciated assets and other ( 15,541 ) ( 13,327 ) ( 14,324 ) Amounts related to assets held for sale ( 126,840 ) — — Accumulated depreciation balance at end of year $ 499,274 $ 580,802 $ 530,722 F- 47