What changed in this filing

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Item 1. Financial Statements

2025-05-08 compared with 2024-11-07 · 244 added, 319 removed, 497 unchanged (53% of the section changed)

3 unchanged sentences

(In thousands, except share data)

September 30, 2024

March 31, 2025

December 31, 2024

8 unchanged sentences

Other assets, net

Assets held for sale, net

LIABILITIES AND EQUITY

4 unchanged sentences

Lease liabilities - finance leases

Dividends payable

Accrued liabilities and other

Liabilities related to assets held for sale, net

Total liabilities

1 unchanged sentence

Commitments and contingencies (Note 3)

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

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

Equity ( 510,587,500 shares authorized at March 31, 2025 and December 31, 2024):

Common Stock, $ 0.01 par value, 137,161,143 and 136,351,966 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital

8 unchanged sentences

(In thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Rental and other property revenues

8 unchanged sentences

Realized and unrealized gains (losses) on equity investments

Gain on dispositions of real estate

Other income (expense), net

18 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended September 30, 2024 and 2023

For the Three Months Ended March 31, 2025 and 2024

(In thousands)

2 unchanged sentences

Retained Earnings (Accumulated Deficit)

Balances at June 30, 2023

Balances at December 31, 2023

Net income (loss)

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

Share-based compensation expense

1 unchanged sentence

Distributions to noncontrolling interests in consolidated real estate partnerships

Common stock repurchased

Other common stock issuances

Balances at September 30, 2023

Balances at June 30, 2024

Net income (loss)

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

Share-based compensation expense

Contributions from noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Common stock repurchased

Other common stock issuances, net of withholding taxes

Balances at September 30, 2024

See notes to condensed consolidated financial statements.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Nine Months Ended September 30, 2024 and 2023

(In thousands)

Noncontrolling

Retained Earnings (Accumulated Deficit)

Balances at March 31, 2024

Balances at December 31, 2024

Net income (loss)

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

Share-based compensation expense

1 unchanged sentence

Distributions to noncontrolling interests in consolidated real estate partnerships

Common stock repurchased

Other common stock issuances

Balances at September 30, 2023

Balances at December 31, 2023

Net income (loss)

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

Share-based compensation expense

Contributions from noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Common stock repurchased

Other common stock issuances, net of withholding taxes

Balances at September 30, 2024

Balances at March 31, 2025

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

6 unchanged sentences

Income tax expense (benefit)

Share-based compensation

Loss on extinguishment of debt, net

Gain on dispositions of real estate

Share-based compensation expense

Loss (income) from unconsolidated real estate partnerships

Amortization of debt issuance costs and other

Other, including amortization of debt issuance costs

Changes in operating assets and operating liabilities:

4 unchanged sentences

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of real estate

Capital expenditures (1)

Distributions received from unconsolidated real estate partnerships

Investment in unconsolidated real estate partnerships

Purchase of treasury bill

Other investing activities

3 unchanged sentences

Principal repayments on non-recourse property debt

Proceeds from sale of participation in Mezzanine Investment

Payments of deferred loan costs

Proceeds from interest rate contracts

Purchase of interest rate contracts

Common stock repurchased

Payments related to withholding taxes for share-based compensation

Dividends paid on common stock and OP Units

Contributions from redeemable noncontrolling interests

Distributions to redeemable noncontrolling interests

1 unchanged sentence

Distributions to noncontrolling interests

Contributions from redeemable noncontrolling interests

Redemption of OP Units held by third parties

Other financing activities

Net cash provided by financing activities

NET DECREASE IN CASH, CASH EQUIVALENTS,

Net cash provided by (used in) financing activities

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS,

AND RESTRICTED CASH

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT

BEGINNING OF PERIOD

BEGINNING OF YEAR

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT

END OF PERIOD

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

(1) Accrued capital expenditures wer e $ 14.8 milli on and $ 39.8 m illion as of March 31, 2025 and 2024 , respectively.

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

September 30, 2024

March 31, 2025

December 31, 2024

8 unchanged sentences

Other assets, net

Assets held for sale, net

LIABILITIES AND EQUITY

4 unchanged sentences

Lease liabilities - finance leases

Dividends payable

Accrued liabilities and other

Liabilities related to assets held for sale, net

Total liabilities

12 unchanged sentences

(In thousands, except per unit data)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Rental and other property revenues

8 unchanged sentences

Realized and unrealized gains (losses) on equity investments

Gain on dispositions of real estate

Other income (expense), net

16 unchanged sentences

CONDENSED CONSOLIDATED S TATEMENTS OF PARTNERS’ CAPITAL

For the Three Months Ended September 30, 2024 and 2023

(In thousands)

General Partner

Limited Partner

Partners’ Capital

Attributable to

Aimco Operating

Noncontrolling

in Consolidated Real

Estate Partnerships

Balances at June 30, 2023

Net income (loss)

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

Share-based compensation expense

Contributions from noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Redemption of OP Units held by Aimco

Balances at September 30, 2023

Balances at June 30, 2024

Net income (loss)

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

Share-based compensation expense

Contributions from noncontrolling interests in consolidated real estate partnerships

Distributions to noncontrolling interests in consolidated real estate partnerships

Redemption of OP Units held by Aimco

Other OP Unit issuances, net of withholding taxes

Balances at September 30, 2024

See notes to condensed consolidated financial statements.

AIMCO OP L.P.

CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

For the Nine Months Ended September 30, 2024 and 2023

For the Three Months Ended March 31, 2025 and 2024

(In thousands)

9 unchanged sentences

Net income (loss)

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

Share-based compensation expense

1 unchanged sentence

Distributions to noncontrolling interests in consolidated real estate partnerships

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

Redemption of OP Units held by Aimco

Other OP Unit issuances

Balances at September 30, 2023

Other OP Unit issuances, net of withholding taxes

Balances at March 31, 2024

Balances at December 31, 2024

Net income (loss)

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

Share-based compensation expense

1 unchanged sentence

Distributions to noncontrolling interests in consolidated real estate partnerships

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

Redemption of OP Units held by Aimco

Other OP Unit issuances, net of withholding taxes

Balances at September 30, 2024

Balances at March 31, 2025

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

6 unchanged sentences

Income tax expense (benefit)

Share-based compensation

Loss on extinguishment of debt, net

Gain on dispositions of real estate

Share-based compensation expense

Loss (income) from unconsolidated real estate partnerships

Amortization of debt issuance costs and other

Other, including amortization of debt issuance costs

Changes in operating assets and operating liabilities:

4 unchanged sentences

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of real estate

Capital expenditures (1)

Distributions received from unconsolidated real estate partnerships

Investment in unconsolidated real estate partnerships

Purchase of treasury bill

Other investing activities

3 unchanged sentences

Principal repayments on non-recourse property debt

Proceeds from sale of participation in Mezzanine Investment

Payments of deferred loan costs

Proceeds from interest rate contracts

Purchase of interest rate contracts

Common stock repurchased

Payments related to withholding taxes for share-based compensation

Dividends paid on common stock and OP Units

Contributions from redeemable noncontrolling interests

Distributions to redeemable noncontrolling interests

1 unchanged sentence

Distributions to noncontrolling interests

Contributions from redeemable noncontrolling interests

Redemption of OP Units held by third parties

Other financing activities

Net cash provided by financing activities

NET DECREASE IN CASH, CASH EQUIVALENTS,

Net cash provided by (used in) financing activities

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS,

AND RESTRICTED CASH

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT

BEGINNING OF PERIOD

BEGINNING OF YEAR

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT

END OF PERIOD

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

(1) Accrued capital expenditures were $ 14.8 millio n and $ 39.8 million as of March 31, 2025 and 2024 , respectively.

See notes to condensed consolidated financial statements.

2 unchanged sentences

NOTES TO CONDENSED CONSOLID ATED FINANCIAL STATEMENTS

September 30, 2024

March 31, 2025

Note 1 — Organization

5 unchanged sentences

(“Aimco Operating Partnership”).

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

As of March 31, 2025, Aimco owned 92.4 % of the legal interest in the common partnership units of Aimco Operating Partnership and 94.8 % of the economic interest in Aimco Operating Partnership.

The remaining 7.6 % legal interest is owned by limited partners.

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

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

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

This filing combines the quarterly reports on Form 10-Q for the quarterly period ended March 31, 2025, 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.

1 unchanged sentence

multifamily sector.

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

Additionally, we have a single family rental community that is under construction with 16 planned homes and eight accessory dwelling units, a waterfront ground-up development with 114 planned units, a 106 -key luxury hotel with event space, one commercial office building that is part of an assemblage with an adjacent apartment building, and land parcels held for development.

In addition, we hold other alternative investments, including our Mezzanine Investment;

our investment in IQHQ Holdings, LP ("IQHQ");

and our investment in real estate technology funds.

At March 31, 2025, our entire portfolio of operating residential apartment communit ies includes 5,243 apartment homes within 20 consolidated stabilized operating proper ties, 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 completed 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 (together referred to as the “Brickell Assemblage”), and land parcels held for development.

In addition, we hold other alternative investments, including our Mezzanine Investment, our investment in IQHQ Holdings, LP (“IQHQ”), and our investment in real estate technology funds.

See Note 2 for further information over our Mezzanine Investment and our investment in IQHQ.

5 unchanged sentences

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

Operating results for the three and nine months ended September 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

Operating results for the three months ended March 31, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

The accompanying condensed consolidated financial statements include the accounts of Aimco, Aimco Operating Partnership, and their consolidated entities.

11 unchanged sentences

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.

In addition, when an entity is not a VIE, we consolidate under the voting model when we control an entity through ownership of a majority voting interest.

Refer to Note 6 for further information.

2 unchanged sentences

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

For the periods ended September 30, 2024 and 2023, the holders of OP Units had a weighted-average economic ownership interest in Aimco Operating Partnership of approximately 5.2 % , and 5.1 %, respectively.

For the periods ended March 31, 2025 and 2024, the holders of OP Units had a weighted-average economic ownership interest in Aimco Operating Partnership of approximately 5.2 % , and 5.2 %, respectively.

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

Redeemable noncontrolling interests in consolidated real estate partnerships

Redeemable noncontrolling interests consist of equity interests held by a limited partner in a consolidated real estate partnership that has the right to require such partnership to redeem all or a portion of the noncontrolling interest in accordance with the partnership agreement.

Redeemable noncontrolling interests consist of equity interests held by a limited partner in a consolidated real estate partnership that generally, after a specified holding period, has the right to require such partnership to redeem all or a portion of the noncontrolling interest in accordance with the partnership agreement.

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 September 30, 2024, consists of the following:

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

Redeemable noncontrolling interests in consolidated real estate partnerships as of March 31, 2025 , 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 Condensed Consolidated Balance Sheets as of September 30, 2024.

These interests are presented as Redeemable noncontrolling interests in consolidated real estate partnerships in our Condensed Consolidated Balance Sheets as of March 31, 2025.

The assets of our consolidated real estate partnerships must first be used to settle the liabilities of the consolidated real estate partnerships.

The consolidated real estate partnership’s creditors do not have recourse to the general credit of Aimco Operating Partnership.

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

The following table shows changes in our redeemable noncontrolling interests in consolidated real estate partnerships for the three months ended March 31, 2025 and 2024, ( in thousands ):

Balance at Beginning of Period

1 unchanged sentence

Distributions

Balance at September 30, 2024

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

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

Balance at March 31,

(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.

Costs incurred were treated as a discount to Redeemable noncontrolling interests in consolidated real estate partnerships and are amortized using the effective interest method in accordance with GAAP .

Mezzanine Investment

1 unchanged sentence

The loan bears interest at a 10 % annual rate, accruing if not paid from property operations.

Legal ownership of the subsidiaries that originated and hold the Mezzanine Investment was retained by AIR following the Separation.

The Separation Agreement with AIR provides for AIR to transfer ownership of the subsidiaries that originated and hold the Mezzanine Investment, and a related equity option to acquire a 30 % interest in the partnership owning Parkmerced Apartments.

At the time of Separation and as of the date of this filing, legal title of these subsidiaries had not yet transferred to us.

Until legal title of the subsidiaries is transferred, AIR is obligated to pass payments received on the Mezzanine Investment to us, and we are obligated to indemnify AIR against any costs and expenses related thereto.

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.

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

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

Pursuant to the terms of the agreement, we receive a first priority return from any payments made to service or pay down the Mezzanine Investment equal to $ 134.0 million plus no less than a 19 % annualized return as well as 80 % of any residual payments after the purchaser receives a 10 % annualized return on its subordinate investment.

Additionally, we are responsible for the servicing and administration of the Mezzanine Investment.

Because we receive first priority and a higher return than the purchaser, the partial sale and transfer of the financial interest did not qualify for sale accounting in accordance with GAAP.

Therefore, we recorded the cash received from the purchaser as a liability, which is included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets .

Although the cash received is accounted for as a liability in accordance with GAAP, no amount is due to the purchaser until after we receive $ 134.0 million plus our annualized return.

Tr ansaction costs have been deferred and are presented as a direct reduction from the related liability, which is included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets .

The cash flows associated with this partial Mezzanine Investment sale have been included in Cash Flows from Financing Activities in our Condensed Consolidated Statements of Cash Flows.

Investment in IQHQ

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

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.

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

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

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

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

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

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

As of September 30, 2024

As of December 31, 2023

Equity ownership in IQHQ under measurement alternative:

Initial cost of remaining balance

Cumulative upward adjustments

Cumulative impairment

Total carrying value

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 March 31, 2025, we are precluded from derecognizing the liability until it has been deemed to be extinguished in accordance with GAAP.

Income tax benefit (expense)

Certain aspects of our operations, including our development and redevelopment activities, are conducted through taxable REIT subsidiaries, or “TRS entities”.

Additionally, our TRS entities hold investments in one of our apartment communities and 1001 Brickell Bay Drive.

Additionally, our TRS entities hold an 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.

1 unchanged sentence

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

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

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

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

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

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

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

For the three months ended March 31, 2025, we had consolidated net losses subject to tax of $ 2.3 million, compared to consolidated net losses subject to tax of $ 6.6 million for the same period in 2024.

For the three months ended March 31, 2025, we recognized an income tax benefit of $ 0.1 million, compared to income tax benefit of $ 2.7 million during the same period in 2024.

The decrease is due primarily to the tax effect of reduced depreciation in 2025 associated with properties owned by, and activities of, our TRS entities.

Use of estimates

1 unchanged sentence

Actual results could differ from those estimates.

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 Condensed 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 Condensed 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 August 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 March 31, 2025 and 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, in accordance with GAAP, related to the real estate properties held for sale as of March 31, 2025 and December 31, 2024 ( in thousands ):

March 31, 2025

December 31, 2024

Buildings and improvements

Total real estate

Accumulated depreciation

Net real estate

Restricted cash

Other assets, net

Assets held for sale, net

Non-recourse property debt, net

Accrued liabilities and other

Liabilities related to assets held for sale, net

Cash equivalents

3 unchanged sentences

Restricted cash

Restricted cash consists of tenant security deposits, capital replacement reserves, insurance reserves, and cash restricted as required by our debt agreements.

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 ):

March 31, 2025

December 31, 2024

Cash and cash equivalents

Restricted cash

Restricted cash held for sale

Cash, cash equivalents, and restricted cash

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 Condensed 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 March 31, 2025 and December 31, 2024, the remaining unamortized discount was $ 2.4 million and $ 2.7 million, respectively.

For the three months ended March 31, 2025 and 2024, the amortization of the discount was $ 0.3 million and $ 0.3 million, respectively, which was recorded as a component of Interest Income in our Condensed Consolidated Statements of Operations .

Other assets, net

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

September 30, 2024

Other assets, net were comprised of the following amounts as of March 31, 2025 and December 31, 2024 ( in thousands ):

March 31, 2025

December 31, 2024

5 unchanged sentences

Intangible assets, net

Corporate fixed assets

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

Corporate fixed assets, net of accumulated depreciation of $ 10,183 and $ 9,591 as of March 31, 2025 and December 31, 2024, respectively

Accounts receivable, net of allowances of $ 357 and $ 352 as of March 31, 2025 and December 31, 2024, respectively

Deferred tax assets

Due from affiliates

Total other assets, net

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

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

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 three months ended March 31, 2025, we recognized unrealized losses on our investment in stock of $ 0.5 million, compared to unrealized losses of $ 0.5 million in 2024.

During the three months ended March 31, 2025 and 2024, we recognized unrealized gains on our investments in property technology funds of $ 0.1 million and $ 0.2 million, respectively.

See Note 5 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.

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

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.

In 2024, 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 March 31, 2025

As of December 31, 2024

Equity ownership in IQHQ under measurement alternative:

Initial cost of remaining balance

Cumulative upward adjustments

Cumulative impairment

Total carrying value

Dividends payable

At the time of a declaration, we accrue for dividends on our Common Stock and distributions on OP units held by third parties in Dividends payable in our Condensed Consolidated Balance Sheets .

The amount accrued includes non-forfeitable and forfeitable dividends on our share-based compensation awards.

Forfeitable dividends are not paid unless and until the underlying share-based compensation award vests.

In January 2025 , we paid a special cash dividend of $ 0.60 per share to distribute the net proceeds resulting from our 2024 asset sales to stockholders.

The special cash dividend was declared on December 19, 2024 , to stockholders of record on January 14, 2025 , and was accrued in Dividends payable in our Condensed Consolidated Balance Sheets as of December 31, 2024 .

As of March 31, 2025, we have a remaining liability of $ 1.0 million for forfeitable dividends on certain unvested share-based compensation awards, which will be paid when the requisite service-based and market-based conditions have been achieved.

Revenue from contracts with customers

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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.

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

The Benson Hotel generated revenues of $ 1.4 million and $ 1.2 million for the three months ended March 31, 2025 and 2024 , respectively.

Recent accounting pronouncements

In November 2023, the FASB issued Accounting Standards Update ("ASU") No.

2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures", which requires disclosure of incremental segment information, including segment expense categories, on an annual and interim basis.

The new guidance is effective for the annual period ended December 31, 2024 and interim periods beginning in 2025.

The amendments in ASU 2023-07 apply retrospectively to all periods presented in the financial statements.

The segment expense categories and amounts disclosed in prior periods are based on the significant expense categories identified and disclosed in the period of adoption.

We are currently evaluating the potential impact of adopting this new guidance on our condensed consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

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We are currently evaluating the potential impact of adopting this new guidance on our condensed 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 condensed consolidated financial statements and related disclosures.

Note 3 — Commitments and Contingencies

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

As of September 30, 2024, we have remaining commitments of $ 1.5 million related to our investments in property technology funds invested in entities that develop technology related to the real estate industry.

As of March 31, 2025, we had remaining commitments for construction-related contracts of $ 138.0 million, with $ 146.7 million undrawn on our non-recourse construction loans.

As of March 31, 2025, we have remaining unfunded commitments of $ 1.2 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.

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

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

As of September 30, 2024, the Common Stock and OP Unit equivalents that could potentially dilute basic earnings per share or unit in future periods totaled 4.2 million and 8.4 million, respectively.

The Common Stock and OP Unit equivalents were not included in the computation of diluted earnings per share and unit for the three months ended March 31, 2025 and 2024, because the effect of their inclusion would have been antidilutive.

As of March 31, 2025, the Common Stock and OP Unit equivalents that could potentially dilute basic earnings per share or unit in future periods totaled 4.4 million and 8.5 million, respectively.

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

The unvested restricted shares and units related to these awards are participating securities.

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

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

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

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

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

Participating securities were not included in the computation of diluted earnings per share and unit for the three months ended March 31, 2025 and 2024, because the effect of their inclusion would have been antidilutive.

As of March 31, 2025, participating securities that could potentially dilute basic earnings per share or unit in future periods totaled 2.4 million.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the three months ended March 31, 2025 and 2024, are as follows ( in thousands, except per share and per unit data ):

Three Months Ended

September 30,

Nine Months Ended

September 30,

Earnings per share

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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 ”.

The 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 Other assets, net in our Condensed Consolidated Balance Sheets .

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

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

As of March 31, 2025, we held interest rate caps with a maximum notional value of $ 370.3 million.

These instruments were acquired for $ 3.8 million, and the fair value of these instruments is $ 0.6 million as noted in the table below.

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

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

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

In addition, as of September 30, 2024 and December 31, 2023, we have investments in property technology funds of $ 3.2 million and $ 2.5 million, respectively, in entities that develop technology related to the real estate industry.

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

As of March 31, 2025 and December 31, 2024, we had investments in stock of $ 1.1 million and $ 1.6 million, respectively, classified within Level 1 of the GAAP fair value hierarchy.

In addition, as of March 31, 2025 and December 31, 2024, we have investments in property technology funds of $ 3.8 million and $ 3.5 million, respectively, in entities that develop technology related to the real estate industry.

These investments are measure d 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 3 for further information regarding unfunded commitments related to these investments.

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

As of September 30, 2024

The following table summarizes the fair value for our interest rate contracts, investments in stock, and our investments in real estate technology funds as of March 31, 2025 and December 31, 2024 ( in thousands ):

As of March 31, 2025

As of December 31, 2024

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Fair Value Disclosures

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

We believe that the carrying value of the consolidated amounts of cash and cash equivalents and restricted cash approximated their fair value as of March 31, 2025, and December 31, 2024 and are categorized within Level 1 of the GAAP fair value hierarchy.

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

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

The following table summarizes the carrying value and fair value of our non-recourse property debt, and non-recourse construction loans as of September 30, 2024 and December 31, 2023 ( in thousands ):

As of September 30, 2024

The following table summarizes the carrying value and fair value of our non-recourse property debt, and non-recourse construction loans as of March 31, 2025 and December 31, 2024 ( in thousands ):

As of March 31, 2025

As of December 31, 2024

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Non-recourse construction loans

Nonrecurring Fair Value Measurements

Investment in IQHQ

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

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

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.

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.

Unconsolidated real estate partnerships

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

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

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

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

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

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

Note 6 — Variable Interest Entities

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The consolidated VIEs' creditors do not have recourse to the general credit of Aimco Operating Partnership.

In addition, we have eight unconsolidated VIEs for which we are not the primary beneficiary because we are not their primary decision maker.

The eight unconsolidated VIEs include four unconsolidated real estate partnerships that hold four apartment communities in San Diego, California, the Mezzanine Investment, our passive equity investment in IQHQ, and two unconsolidated investments in land held for development in Miami, Florida and Bethesda, Maryland.

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.

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

As of September 30, 2024

The details of our consolidated and unconsolidated VIEs, excluding those of Aimco Operating Partnership, are summarized in the table below as of March 31, 2025 and December 31, 2024 ( in thousands, except for Count of VIEs ):

As of March 31, 2025

As of December 31, 2024

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Accrued liabilities and other

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

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

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

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

Note 7 — Lease Arrangements

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

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

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

As of March 31, 2025 , our apartment home leases generally have initial terms of 24 months or less.

As of March 31, 2025, our commercial space leases generally have initial terms betwee n 5 and 15 y ears and represent approximately 8 % to 9 % of our total revenue.

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

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

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

For the three months ended March 31, 2025 and 2024, we recognized sublease income of $ 0.4 million.

The majority of lease payments we receive from our residents and tenants are fixed.

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

For the three and nine months ended September 30, 2024 and 2023, our total lease income was comprised of the following amounts for all residential and commercial property leases ( in thousands ):

We have elected the practical expedient to not separate non-lease components from associated lease components in accordance with ASC 842.

For the three months ended March 31, 2025 and 2024, our total lease income was comprised of the following amounts for all residential and commercial property leases ( in thousands ):

Three Months Ended

September 30,

Nine Months Ended

September 30,

Fixed lease income

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Total lease income

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

Future minimum lease payments that are contractually due to us from our office space sublease and commercial space leases, excluding extension options, as of March 31, 2025, are as follows (in thousands) :

Corporate Office Sublease

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Substantially all of our office lease payments are fixed.

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

See the table below for lease costs, net of capitalized finance lease costs, for the three months ended March 31, 2025 and 2024 ( in thousands ):

Three Months Ended

September 30,

Nine Months Ended

September 30,

Operating lease costs

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Total lease costs, net of capitalized amounts

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

September 30, 2024

The weighted-average remaining terms and discount rates for our operating and finance leases are summarized in the table below as of March 31, 2025, and December 31, 2024:

March 31, 2025

December 31, 2024

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Finance leases

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

As of September 30, 2024 and December 31, 2023, operating lease liabilities of $ 9.8 million and $ 11.5 million, respectively, are included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets .

Our finance lease 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.

Additionally, the lease p rovides the lessor at Oak Shore 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.

As of March 31, 2025 and December 31, 2024, operating lease right-of-use lease assets of $ 4.6 million and $ 4.7 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets .

As of March 31, 2025 and December 31, 2024, operating lease liabilities of $ 8.8 million and $ 9.2 million, respectively, are included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets .

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

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Annual Future Minimum Lease Payments

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

Combined annual future minimum lease payments under our operating and finance leases are as follows as of March 31, 2025 ( in thousands ):

Operating Leases

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

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

Our Operating segment includes 21 residential apartment communities with 5,600 apartment homes that have achieved a stabilized level of operations as of January 1, 2023 and maintained it throughout the current year and comparable period in the prior year.

As of March 31, 2025 , 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, 2024 and maintained it throughout the current year and comparable period.

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

During the first quarter of 2024, we revised the information regularly reviewed by our chief operating decision maker ("CODM") to assess our operating performance.

As a result, we reclassified The Benson Hotel from the Development and Redevelopment segment to the Other segment.

In addition, during the first quarter of 2024, we disposed of St.

George Villas, which was previously reported within our Other segment.

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

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

Our Other segment includes 1001 Brickell Bay Drive, our only office building, and The Benson Hotel, our only hotel.

Our CODM uses cash flow, construction timeline to completion, and actual versus budgeted results to evaluate our properties in our Development and Redevelopment segment.

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

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

• 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;

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

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

Development and Redevelopment

Proportionate

and Other Adjustments (1)

Corporate and Amounts Not Allocated to Segments (2)

Three Months Ended September 30, 2024

Rental and other property revenues

Property operating expenses

Other operating expenses not allocated

to segments (3)

Total operating expenses

Proportionate property net operating

income (loss)

Other items included in income before

income tax (4)

Income (loss) before income tax

Development and Redevelopment

Proportionate

and Other Adjustments (1)

Corporate and Amounts Not Allocated to Segments (2)

Three Months Ended September 30, 2023

Rental and other property revenues

Property operating expenses

Other operating expenses not allocated

to segments (3)

Total operating expenses

Proportionate property net operating

income (loss)

Other items included in income before

income tax (4)

Income (loss) before income tax

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

Our Other segment includes The Benson Hotel, our only hotel.

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

Our CODM evaluates performance and allocates resources for all of our segments using historical and projected 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 reimbursem ents, 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;

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

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 in Note 2.

The following tables present the results of operations of consolidated properties within our segments for the three months ended March 31, 2025 and 2024 ( in thousands ):

Development and Redevelopment

Proportionate

and Other Adjustments (1)

Adjustments (1)

Corporate and Amounts Not Allocated to Segments (2)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Rental and other property revenues

Controllable operating expenses (3)

Real estate taxes, net of capitalized amounts

Utilities expense, net of utility reimbursements

Property insurance expense, net of capitalized amounts

Other property operating expenses (4)

Property operating expenses

Other operating expenses not allocated

to segments (3)

Total operating expenses

Proportionate property net operating

income (loss)

Property net operating income (loss)

Other operating expenses not allocated to segments (5)

Other items included in income before

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Development and Redevelopment

Proportionate

and Other Adjustments (1)

Adjustments (1)

Corporate and Amounts Not Allocated to Segments (2)

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Rental and other property revenues

Controllable operating expenses (3)

Real estate taxes, net of capitalized amounts

Utilities expense, net of utility reimbursements

Property insurance expense, net of capitalized amounts

Other property operating expenses (4)

Property operating expenses

Other operating expenses not allocated

to segments (3)

Total operating expenses

Proportionate property net operating

income (loss)

Property net operating income (loss)

Other operating expenses not allocated to segments (5)

Other items included in income before

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Income (loss) before income tax

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

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

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

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

(2) Includes the operating results of apartment communities sold during the period 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 consist of property personnel costs, marketing, repairs and maintenance, turnover, and contract services.

(4) Other property operating expenses include property management costs and casualty gains or losses.

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

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

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

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

Net real estate and non-recourse property debt and construction loans, net, of our segments as of March 31, 2025 and December 31, 2024, were as follows ( in thousands ):

Development and Redevelopment

Corporate and Amounts Not Allocated to Segments (1)

As of September 30, 2024

As of March 31, 2025

Buildings and improvements

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Development and Redevelopment

Corporate and Amounts Not Allocated to Segments (1)

As of December 31, 2024

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Non-recourse property debt and construction loans, net

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

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

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

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

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

Note 9 — Subsequent Events

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

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

Capital additions with in our segments for the three months ended March 31, 2025 and 2024, were as follows ( in thousands ):

Three Months Ended March 31,

Development and Redevelopment

Corporate amounts not allocated to segments (1)

Total capital additions

(1) During the three months ended March 31, 2024, 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 period ends.

We added a corporate row to the table above for presentation purposes to display these capital additions for the three months ended March 31, 2024 .

In addition to the amounts disclosed in the tables above, as of March 31, 2025 the Development and Redevelopment segment right-of-use lease assets and lease liabilities aggregated to $ 107.4 million and $ 122.9 million, respectively, and as of December 31, 2024 , aggregated to $ 107.7 million and $ 121.8 million, respectively.

As of March 31, 2025 , right-of-use lease assets and lease liabilities primarily relate to our investments in Upton Place, Strathmore, and Oak Shore.

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

What changed 10-Q

Item 1. Financial Statements