What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-11 compared with 2025-11-10 · 169 added, 272 removed, 83 unchanged (84% of the section changed)

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The forward-looking statements in this Quarterly Report on Form 10-Q include, without limitation, statements regarding:

our future plans and goals, including the timing and amount of capital expected to be returned to our stockholders, our pipeline investments and projects, our plans to eliminate certain near term debt maturities, our estimated value creation and potential, our timing, scheduling and budgeting, projections regarding revenue and expense growth, our plans to form joint ventures, our plans for new acquisitions or dispositions, our strategic partnerships and value added therefrom, the potential for adverse economic and geopolitical conditions, which negatively impact our operations, including on our ability to maintain current or meet projected occupancy, rental rate and property operating results;

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

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

our future plans and goals, including the timing and amount of capital expected to be returned to our stockholders, our pipeline investments and projects, our plans to eliminate certain near term debt maturities, our estimated value creation and potential, our timing, scheduling and budgeting, projections regarding revenue and expense growth, our plans for dispositions, our strategic partnerships and value added therefrom, the potential for adverse economic and geopolitical conditions, which negatively impact our operations, including on our ability to maintain current or meet projected occupancy, rental rate and property operating results;

the effect of acquisitions, dispositions, developments;

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

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

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

the risk that the 2025 plans and goals may not be completed, as expected, in a timely manner or at all;

the possibility that Aimco’s stockholders do not approve the Plan of Sale and Liquidation;

changes in the amount and timing of the total liquidating distributions, including as a result of unexpected levels of transaction cost, delayed or terminated closings, liquidation costs or unpaid or additional liabilities and obligations;

our ability to complete the plan of sale and liquidation of Aimco and its subsidiaries, including our ability to successfully market and/or sell the remaining assets, on the terms and timeline anticipated, or at all;

our ability to close sales following the execution of purchase and sale agreements on the terms and timeline anticipated, or at all, including the satisfaction or waiver of the conditions to closing the sales transactions currently under contract and any other sales transactions Aimco may undertake (the “Portfolio Sales Transactions”);

changes in the amount and timing of the total liquidating distributions resulting from the Plan of Sale and Liquidation and the Portfolio Sales Transactions, including as a result of unexpected levels of transaction costs, delayed or terminated closings, liquidation costs, unpaid or additional liabilities and obligations, changes in the net asset sales proceeds for the sale of the remaining properties from prior estimates or other unanticipated difficulties;

the possibility of converting to a liquidating trust or other liquidating entity;

the ability of our Board to terminate the Plan of Sale and Liquidation, whether or not approved by stockholders;

the occurrence of any event, change or other circumstances that could give rise to the termination of the Plan of Sale and Liquidation;

the ability of our board of directors to terminate the Plan of Sale and Liquidation;

the response of our residents, tenants and business partners to the Plan of Sale and Liquidation and/or Portfolio Sales Transactions;

difficulties in employee retention as a result of the ongoing Plan of Sale and Liquidation and/or Portfolio Sales Transactions;

the occurrence of any event, change or other circumstances that could give rise to the termination of the Plan of Sale and Liquidation and/or the Portfolio Sales Transactions;

the outcome of legal proceedings that may be instituted against Aimco, our subsidiaries, our and their directors and others related to the Plan of Sale and Liquidation and/or Portfolio Sales Transactions;

the risk that disruptions caused by or relating to the Plan of Sale and Liquidation and/or Portfolio Sales Transactions will harm our business, including current plans and operations;

the possibility that we do not reserve adequate funds to cover expenses and liabilities, and the possibility that our creditors, in that instance, could seek repayment from our stockholders up to the amount of the total liquidating distributions;

risks relating to the market value of Aimco’s common stock;

risks associated with contracts or other instruments containing consent and/or other provisions that may be triggered by the Plan of Sale and Liquidation and/or Portfolio Sales Transactions;

restrictions during the pendency of the Portfolio Sale Transactions that may impact our ability to pursue certain business opportunities or strategic transactions;

our ability to remain listed on the NYSE;

geopolitical events which may adversely affect the markets in which our securities trade, and other macro-economic conditions, including, among other things, rising interest rates and inflation, which heightens the impact of the other risks and factors described herein;

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the amount, location and quality of competitive new housing supply;

the timing and effects of acquisitions, dispositions, developments and redevelopments;

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

the timing and effects of dispositions and developments;

expectations regarding sales of apartment communities;

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

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

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

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

Readers should carefully review our financial statements and the notes thereto, as well as Item 1A.

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Executive Overview

Our mission is to make real estate investments, primarily focused on the multifamily sector within targeted U.S.

markets, where outcomes are enhanced through our human capital and substantial value is created for investors, teammates, and the communities in which we operate.

Our value proposition includes our:

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

• Diversified portfolio, consisting of value-add investments, a pipeline of land for potential future development, a portfolio of stabilized multifamily real estate and limited indirect and passive investments;

• Capital redeployment plan which includes the prudent recycling of capital, reallocating our equity to higher returning investments, and return of capital to stockholders when appropriate.

Our primary goal is outsized risk adjusted returns and accelerating growth for our stockholders.

We are focused on providing superior total-return performance to stockholders, primarily through capital appreciation driven by accretive investment and active portfolio management over multi-year periods.

We do not presently intend to pay a regular quarterly cash dividend, but periodically pay dividends for REIT tax purposes or to return capital to stockholders.

Our financial objectives are to create value and produce superior, asset level, risk-adjusted returns on equity as measured by the investment period Internal Rate of Return (“IRR”) and the project-level Multiple on Invested Capital (“MOIC”).

We measure broader performance based on Net Asset Value (“NAV”) growth over time.

Our capital allocation strategy is designed to leverage our investment platform and optimize risk-adjusted returns for our stockholders.

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

We have reduced our allocation to these investments and have no plans to increase our allocation to these investments.

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

Given our current strategy, it is expected that at any point in time the value-creation process will be ongoing at numerous of our investments.

Over time, we expect our enterprise to produce superior returns on equity on a risk-adjusted basis and it is our plan to do so by:

• Benefiting from a national platform while leveraging local and regional expertise

We have corporate headquarters in Denver, Colorado and Washington, D.C.

Our investment platform is managed by experienced regional professionals who leverage in-depth local market knowledge, creating a comparative advantage when sourcing, evaluating, and executing investment opportunities.

• Owning a portfolio of stabilized core and core plus real estate

We own a geographically diversified portfolio of 19 apartment communities (15 consolidated properties and four unconsolidated properties) with average rents in line with local market averages (generally defined as B class).

We also own an apartment building and its adjacent office building, Yacht Club Apartments and 1001 Brickell Bay Drive (together referred to as the “Brickell Assemblage”), in a land assemblage that is under contract to be sold and an apartment building in suburban Boston sold in October 2025.

The target composition of our stabilized portfolio will continue to include primarily B multifamily assets, spread across geographically diversified markets, with a bias toward long established residential neighborhoods that rank highly in regard to schools, employment fundamentals and state and regional governance.

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

• Managing and investing in value-add and opportunistic real estate

Our dedicated team will source and execute development and redevelopment projects, and various other direct investment strategies.

Our development and redevelopment portfolio currently includes projects in construction and lease-up.

In addition, our team has secured significant, high-quality, future development opportunities, including total potential of more than 7.7 million gross square feet, located in high-growth markets.

Generally, we seek direct investment opportunities in locations where barriers to entry are high, target customers can be clearly defined and where we have a comparative advantage over others in the market.

From time to time, we may choose to monetize certain pipeline assets prior to vertical construction in an effort to maximize value and risk adjusted returns.

In any time period, the amount of our capital that is allocated to development activities may vary based on market conditions and other factors.

• Maintaining sufficient liquidity and utilizing safe financial leverage

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

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

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

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

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

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

Proposed Plan of Sale and Liquidation

Subsequent to quarter end, on November 10, 2025, our Board deemed advisable and approved the Plan of Sale and Liquidation.

The Plan of Sale and Liquidation provides for the Company’s complete liquidation and dissolution in accordance with Section 331, Section 336, and Section 346(a) of the Code and Maryland General Corporation Law.

Effectiveness of the Plan of Sale and Liquidation is subject to approval by the affirmative vote of the holders of Common Stock entitled to cast two-thirds of all votes entitled to be cast on the matter.

Aimco currently anticipates that the Plan of Sale and Liquidation would be submitted for stockholder approval at a special meeting of stockholders, expected to occur in early 2026.

The proposed Plan of Sale and Liquidation presents certain risks, and there can be no assurance that the Plan of Sale and Liquidation will result in any transaction or that the Plan of Sale and Liquidation will be completed.

Risk Factors in Part II of this report.

Results for the three and nine months ended September 30, 2025

The results from the execution of our business plan during the three and nine months ended September 30, 2025 are described below.

Financial Results and Highlights

• For the three and nine months ended September 30, 2025, net income attributable to Aimco common stockholders per share, on a fully dilutive basis, was $2.04 and $1.80, respectively.

• For the three and nine months ended September 30, 2025, property net operating income from our Operating segment was $11.6 million, down 3.4%, and $35.3 million, down 1.9% year-over-year, respectively.

• In September, we sold four suburban Boston properties for $490.0 million.

We retired the associated debt and distributed $2.23 per share to stockholders by way of a special cash dividend paid subsequent to quarter end, on October 15, 2025.

The fifth and final suburban Boston asset sold subsequent to quarter end, in October, for $250.0 million.

Operating Property Results

We own a diversified portfolio of stabilized operating properties which now includes 15 apartment communities with average rents in line with local market averages (generally defined as B class).

Highlights for the three months ended September 30, 2025 include:

• Revenue for our Operating segment was $18.2 million, up 1.2% year-over-year, resulting from a $74 increase in average monthly revenue per apartment home to $2,531 and occupancy of 94.8%, down 180 basis points year-over-year.

• Expenses for our Operating segment were $6.6 million, up 10.5% year-over-year primarily related to the net impact of real estate tax assessments and appeals.

• Property net operating income for our Operating segment was $11.6 million, down 3.4% year-over-year.

Value Add and Opportunistic Investments

Development and Redevelopment

We generally seek development and redevelopment opportunities where barriers to entry are high, target customers can be clearly defined, and where we have a comparative advantage over others in the market.

Our Value Add and Opportunistic investments may also target portfolio acquisitions, operational turnarounds, and re-entitlements.

As of September 30, 2025, we had one multifamily development project under construction, two multifamily communities that have been completed and are now in lease-up, and one that completed lease-up and is stabilizing operations.

During the three and nine months ended September 30, 2025, we invested $25.8 million and $68.2 million, respectively, in development and redevelopment activities, primarily funded through construction loan and preferred equity draws, compared to $29.8 million and $102.3 million, respectively, during the same period in 2024.

Highlights for the three months ended September 30, 2025 include:

• In Upper Northwest Washington, D.C., all 689 apartment homes at Upton Place were delivered in 2024 and construction is complete.

As of September 30, 2025, 521 (76%) units were leased or pre-leased and 496 (72%) were occupied.

The pace of absorption slowed during the third quarter and we now expect the property to reach stabilization in the first quarter 2026.

Additionally, as of September 30, 2025, 97% of the project’s 105,000 square feet of retail space has been leased.

• In Bethesda, Maryland, all 220 of the highly tailored apartment homes at the first phase of Strathmore Square were delivered in 2024 and construction is complete.

As of September 30, 2025, 185 (84%) units had been leased and 169 (77%) were occupied.

We now expect the property to reach occupancy stabilization in the first quarter 2026.

• In Miami, Florida, construction remains on schedule and budget at 34th Street, an ultra-luxury waterfront residential tower.

Initial occupancy is scheduled for 3Q 2027 with stabilized occupancy in 4Q 2028.

• In the third quarter of 2025, we invested $1.7 million into programming, design, documentation, and entitlement efforts primarily at our 901 North development site, located in Fort Lauderdale, Florida.

Investment and Disposition Activity

We currently anticipate that the Plan of Sale and Liquidation would be submitted for stockholder approval at a special stockholder meeting, expected to occur in early 2026.

Additional information regarding the Plan of Sale and Liquidation will be made available in the Company’s filings with the U.S.

We provide Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) in addition to the accompanying consolidated financial statements and notes to assist readers in understanding our results of operations and financial condition.

Prior to the adoption of the Plan of Sale and Liquidation, our mission was to make real estate investments, primarily focused on the multifamily sector within targeted U.S.

markets, where outcomes were enhanced through our human capital and substantial value was created for investors, teammates, and the communities in which we operated.

Plan of Sale and Liquidation

On November 10, 2025, the Board approved a Plan of Sale and Liquidation, which contemplates the sale or disposition of all the Company’s assets, the wind-down of the Company’s business and affairs and the termination of the Company’s existence by voluntary dissolution in accordance with the MGCL, and directed that the Plan of Sale and Liquidation be submitted for approval to the Company’s stockholders.

On February 6, 2026, our stockholders adopted the Plan of Sale and Liquidation.

Pursuant to the Plan of Sale and Liquidation and in accordance with the applicable provisions of law, the Company is authorized to do all other things reasonably necessary or desirable to complete the liquidation and dissolution of the Company and its subsidiaries, including Aimco Operating Partnership.

In furtherance of the Plan of Sale and Liquidation, on March 6, 2026, the general partner of the Aimco Operating Partnership exercised its authority to elect to dissolve the Aimco Operating Partnership in its sole and absolute discretion, and such dissolution is taking place in accordance with the Plan of Sale and Liquidation and the Aimco Operating Partnership's Partnership Agreement.

The Company is not required to obtain any further stockholder approval with respect to the liquidation and dissolution of the Company.

Until the filing of the articles of dissolution with the Maryland State Department of Assessments and Taxation, the Board may modify, amend or terminate the Plan of Sale and Liquidation (and authorize us to seek to dispose of all our assets through a merger, business combination or similar transaction) without approval by the stockholders if it determines that such action would be advisable and in the best interests of the Company.

The Company has no present plans or intentions to modify, amend or abandon the Plan of Sale and Liquidation.

The Plan of Sale and Liquidation presents certain risks, and there can be no assurance that the Plan of Sale and Liquidation will result in any transaction or that the Plan of Sale and Liquidation will be completed.

Refer to the section entitled “Risk Factors” described in Item 1A of Aimco’s and Aimco Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2025.

Subsequent to the adoption of the Plan of Sale and Liquidation, we plan to sell our assets in an orderly fashion and return net proceeds from asset sales and cash on hand to our stockholders, subject to payment of our liabilities and obligations.

We will continue to manage each of our properties, together with our property managers, until such time as such property is sold, for purposes of achieving the orderly winding up of the business and affairs of the Company and its subsidiaries in accordance with the Plan of Sale and Liquidation.

Additional information regarding the Plan of Sale and Liquidation is available in the Company’s filings with the U.S.

Securities and Exchange Commission.

We do not intend to disclose or comment on the sales and marketing of individual assets, or any other strategic transactions, until we determine that further disclosure is appropriate or required.

• In August 2025, we entered into a definitive agreement to sell our portfolio of five apartment properties, including 2,719 units, located in suburban Boston for $740.0 million.

o In September 2025, we completed the sale of four suburban Boston properties for $490.0 million with proceeds primarily used to retire associated mortgage loans, pay off in full the balance drawn on our revolving credit facility, and fund a $2.23 per share special dividend distribution to stockholders paid on October 15, 2025.

o Subsequent to quarter end, in October 2025, we completed the sale of our last remaining apartment community located in suburban Boston for $250.0 million.

In connection with the sale, $173.4 million of non-recourse property debt was assumed by the buyer.

We plan to use net proceeds from the sale to reduce leverage and for general corporate purposes.

• The Brickell Assemblage remains under contract to be sold for $520 million.

o During the third quarter, the buyer notified us that it intended to exercise its option, as permitted in the December 30, 2024 agreement, to finance up to $115 million of the purchase price with transferable seller financing from Aimco.

o Subsequent to quarter end, on November 8, 2025, the purchase and sale agreement was amended such that closing is now scheduled for December of 2025 and the buyer will finance $70 million of the $520 million purchase price with transferable seller financing notes from Aimco.

The seller financing notes will have a term of 24 months with compounding interest rate that increases from 12% to 22% over the duration of the loan as well as exit fees ranging from 1% to 4%.

o In addition, on November 10, 2025, $15 million of the $50 million non-refundable deposit has been released to Aimco with the remainder being held in escrow, $20 million is to be released to Aimco on the original closing date, November 18, 2025, and $15 million will be applied at closing.

o Net proceeds, when accounting for associated property-level debt, the monetization of the seller financing note, the deferred tax liability, and transaction costs, are expected to be approximately $300 million.

• Subsequent to quarter end, in October, we completed a transfer of ownership interests with our joint venture partner at the development land sites along Broward Avenue in Fort Lauderdale, Florida.

We exchanged our joint venture ownership in the non-performing seller financing note secured by 200 Broward Avenue along with $7.5 million of cash, for full ownership of 300 Broward Avenue.

Disposition activity for the three months ended March 31, 2026

• In January 2026 we finalized an agreement to monetize a subordinated seller financing note associated with property in La Jolla, California, that had an effective interest rate of 6.0% and a current annual interest rate of 2.9%.

The agreement was structured as a modification and repayment of the note in January 2026, when we collected the $18.5 million balance included within Notes receivable within the Condensed Consolidated Balance Sheet included in Item 1 as of December 31, 2025.

• In February 2026 we sold three properties, Hillmeade in Nashville, Tennessee, Plantation Gardens in Plantation, Florida, and The Benson Hotel and Faculty Club in Aurora, Colorado, for a combined $177.5 million.

• In March 2026 we sold a portfolio of seven properties in the Chicago market for $455.0 million.

Liquidating Distributions

In accordance with the Plan of Sale and Liquidation, the Board approved a special liquidating distribution of $1.45 per share to stockholders of record on February 27, 2026.

The special liquidating distribution was paid on March 13, 2026.

On April 30, 2026, the Board approved its second special liquidating distribution of $1.30 per share to be paid on June 3, 2026, with a record date of May 15, 2026.

The distribution is being funded with net proceeds from recently closed asset sales, including $0.90 per share, representing the midpoint of the expected second quarter distribution range as previously publicly disclosed and related to the twelve properties which were under contract as of February 9, 2026, plus an additional $0.40 per share related to the sale of 1045 on the Park in Atlanta, GA, the sale of Aimco's partnership interest in a four asset portfolio known as The Casas, and excess cash on hand.

Net Assets in Liquidation

As of March 31, 2026, our $705.9 million of Net assets in liquidation, as presented in our condensed consolidated financial statements included in Item 1, included $33.5 million of excess liabilities which we do not believe are represented at their estimated fair value but cannot be derecognized for GAAP at this time.

Balance Sheet and Financing Activities

We are highly focused on maintaining a strong balance sheet, including ample liquidity.

As of September 30, 2025, we had access to $425.1 million in liquidity, including $404.4 million of cash on hand ($327.3 million of which funded the special dividend paid on October 15, 2025) and $20.7 million of restricted cash.

We are highly focused on maintaining a strong balance sheet, prudent simplification, and appropriate liquidity while promptly returning capital to stockholders.

As of March 31, 2026, we had $216.0 million of cash on hand and $8.3 million of restricted cash.

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

As of September 30, 2025, 100% of our total debt was either fixed rate or hedged with interest rate cap protection.

Considering investments under contract to sell and including contractual extensions, we have no debt maturing prior to June 2027.

• In September, we used proceeds from the sale of four suburban Boston properties to pay down in full the borrowings on our revolving credit facility.

Certain of the properties sold served as collateral for the credit facility, which was retired upon completion of the sales.

As of March 31, 2026, 100% of our total debt was either fixed rate or hedged with interest rate cap protection.

Considering investments under contract to sell and including contractual extensions, we have no debt maturing prior to December 2027.

Active Construction and Lease-up Assets

We plan to fulfill our contractual obligations and maximize value at our one multifamily development project under construction in Miami, Florida and complete the lease-up of, and market for sale, our two recently completed Washington, D.C.

Metro Area multifamily communities.

We have ceased planning and predevelopment efforts for future projects.

During the three months ended March 31, 2026, we invested $22.1 million in development activities compared to $20.3 million during the same period in 2025.

Updates on our one active development project and two lease-ups include:

• In Miami, construction remains on schedule and on budget at 34th Street, an ultra-luxury waterfront residential tower.

Initial occupancy is scheduled for 3Q 2027 with stabilized occupancy in 4Q 2028.

• In Upper Northwest Washington, D.C., we expect to complete the lease up of 689 apartment homes at Upton Place during the third quarter 2026.

As of March 31, 2026, 523 (76%) units were leased or pre-leased.

Additionally, as of March 31, 2026, 97% of the project's 105,000 square feet of retail space has been leased.

• In Bethesda, Maryland, we expect to complete the lease up of 220 of the highly tailored apartment homes at the first phase of Strathmore Square in the third quarter 2026.

As of March 31, 2026, 186 (85%) units had been leased or pre-leased.

Remaining Assets

As of March 31, 2026, our portfolio consisted of the following assets:

Property / Investment

Property / Investment Type

1045 on the Park Apartments Homes (1)

118-122 West 23rd Street (1)

237-239 Ninth Avenue (1)

90th Street (2)

Bluffs at Pacifica, The

Corte Madera, CA

Washington, DC

Strathmore Square Phase 1

Active Construction

Fort Lauderdale, FL

One Edgewater

Flagler Village

Fort Lauderdale, FL

Colorado Springs, CO

Strathmore Square Phase 2

Passive Investment in Development JV

CU Anschutz Campus Holdings

Controlled Options for Development

Brickell Assemblage Notes

Seller Financing

Passive Equity

Mezzanine Loan

RE Tech Funds

Passive Equity

Casa del Hermosa (3)

Partnership Owned

Casa del Mar (3)

Partnership Owned

Casa del Norte (3)

Partnership Owned

Casa del Sur (3)

Partnership Owned

(1) Subsequent to quarter end, in April 2026, we sold two properties in New York City and one in Atlanta, Georgia for a combined $56.5 million

(2) Subsequent to quarter end, in April 2026, we received a non-refundable deposit and agreed to sell our remaining property in New York City for a sales price of $22.8 million.

The sale is scheduled to close in the third quarter of 2026.

(3) Subsequent to quarter end, in April 2026, we sold the four properties located in San Diego, California, held by four unconsolidated real estate partnerships, with our share of the net proceeds totaling $41.9 million, net of transaction costs of $0.9 million..

Financial Results of Operations

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

Results of Operations for the three and nine months ended September 30, 2025 and 2024

Net income (loss) attributable to Aimco common stockholders changed by $308.6 million and $346.1 million, respectively, for the three and nine months ended September 30, 2025, compared to the same period in 2024, as described more fully below.

Following the shareholder approval of the Plan of Sale and Liquidation and the adoption of liquidation basis accounting in February 2026, the results for the month ended January 31, 2026 are not comparable to the three months ended March 31, 2025.

The following discussion and analysis of the results of our operations and financial condition for the month ended January 31, 2026 should be read in conjunction with the accompanying condensed consolidated financial statements included in Item 1.

Results of Operations for the month ended January 31, 2026

Net loss attributable to Aimco common stockholders was $7.7 million for the month ended January 31, 2026, primarily driven by $3.3 million of general and administrative expenses, $3.3 million of depreciation and amortization, and $3.3 million of interest expense, partially offset by $2.8 million of property net operating income contributed by our segments and $0.9 million of income (loss) from discontinued operations, as described further below.

Property Results

We have three segments:

(i) Development and Redevelopment, (ii) Operating, and (iii) Other.

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

As of September 30, 2025, our Development and Redevelopment segment consists of 9 properties, including one under construction, two completed and in lease-up, and one that has completed lease-up and is stabilizing operations.

Our Operating segment includes 15 residential apartment communities with 2,524 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.

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.

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.

During the three months ended September 30, 2025, we reclassified as discontinued operations the five properties within our Boston portfolio, which was previously reported within the Operating segment.

We use property net operating income (“PNOI”) to assess the operating performance of our segments.

Prior to the adoption of the Plan of Sale and Liquidation, we had three segments:

(i) Development, (ii) Operating, and (iii) Other.

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

As of January 31, 2026, our Development segment consisted of 9 properties, including one

under construction, two completed and in lease-up, one that has completed lease-up and is stabilizing operations, and five undeveloped land parcels.

Our Operating segment included 8 residential apartment communities with 1,029 apartment homes that have achieved a stabilized level of operations as of January 1, 2025 and maintained it throughout the current year and comparable period.

Two of the communities, Hillmeade and Plantation Gardens, met the held for sale criteria in accordance with GAAP as described in Note 3 to the condensed consolidated financial statements in Item 1.

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

Our Other segment consisted of owned properties that were not included in our Development or Operating segments.

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

During the month ended January 31, 2026, we reclassified and recast as discontinued operations the seven properties within our Chicago Portfolio, which was previously reported within the Operating segment.

Prior to the adoption of the Plan of Sale and Liquidation, we used property net operating income (“PNOI”) to assess the operating performance of our segments.

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

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Property Net Operating Income

The results of our segments for the three months ended September 30, 2025 and 2024, as presented below, are based on segment classifications as of September 30, 2025 ( dollars in thousands ).

Three Months Ended September 30,

Rental and other property revenues, before utility reimbursements:

Development and Redevelopment

Property operating expenses, net of utility reimbursements:

Development and Redevelopment

Property net operating income:

Development and Redevelopment

For the three months ended September 30, 2025, compared to the same period in 2024:

• Development and Redevelopment property net operating income increased by $3.8 million, due primarily to the lease-up of Upton Place, Strathmore Square, and Oak Shore.

• Operating property net operating income decreased by $0.4 million, or 3.4%.

The decrease was attributable primarily to an increase in real estate taxes at our Chicago properties, which assessment is being appealed, offset by an increase in rental and other property revenues due to a $74 increase in average monthly revenue per apartment home to $2,531.

• Other property net operating income increased by $0.7 million, due primarily to an increase in food and beverage sales and a decrease in real estate taxes due to the successful appeal in the third quarter of 2025.

The results of our segments for the nine months ended September 30, 2025 and 2024, as presented below, are based on segment classifications as of September 30, 2025 ( dollars in thousands ).

Nine Months Ended September 30,

The results of our segments for the month ended January 31, 2026, and three months ended March 31, 2025, as presented below, are based on segment classifications as of January 31, 2026 ( dollars in thousands ).

Three Months Ended

Rental and other property revenues, before utility reimbursements:

Development and Redevelopment

Property operating expenses, net of utility reimbursements:

Development and Redevelopment

Property net operating income:

Development and Redevelopment

For the nine months ended September 30, 2025, compared to the same period in 2024:

• Development and Redevelopment property net operating income increased by $9.3 million, due primarily to the lease-up of Upton Place, Strathmore Square, and Oak Shore.

• Operating property net operating income decreased by $0.7 million, or 1.9%.

The decrease was attributable primarily to a multi-year property assessment at our Chicago properties, which assessment is being appealed, offset by an increase in rental and other property revenues due to a $53 increase in average monthly revenue per apartment home to $2,489.

Our Nashville property successfully appealed its multi-year property assessment in the third quarter of 2025.

• Other property net operating income increased by $0.1 million, due primarily to an increase in food and beverage sales offset by an increase in related operating expenses.

For the month ended January 31, 2026:

• Development PNOI was $1.6 million, driven by the continued lease-up of Upton Place and Strathmore Square, and stabilization of operations at Oak Shore.

• Operating PNOI was $1.4 million, with average daily occupancy for the portfolio of 95.6%.

• Other PNOI was ($0.2) million.

We sold our only property in the Other segment, the Benson Hotel and Faculty Club, in February 2026.

Non-Segment Real Estate Operations

Operating income amounts not attributed to our segments include property management costs, casualty losses, and, if applicable, the results of apartment communities sold or held for sale, reported in consolidated amounts, which we do not allocate to our segments for purposes of evaluating segment performance.

For the three months ended September 30, 2025 and 2024, other property operating expenses not allocated to segments were $0.9 million and $0.9 million, respectively.

For the three months ended September 30, 2025 and 2024, properties that were sold or classified as held for sale generated property net operating income of $3.1 million and $6.6 million, respectively.

For the nine months ended September 30, 2025 and 2024, other property operating expenses not allocated to segments were $3.0 million and $3.6 million, respectively.

For the nine months ended September 30, 2025 and 2024, properties that were sold or classified as held for sale generated property net operating income of $12.1 million and $20.9 million, respectively.

Please refer to Note 8 to the condensed consolidated financial statements in Item 1 for our Boston portfolio performance, which includes five apartment communities classified as discontinued operations.

Depreciation and Amortization

For the three and nine months ended September 30, 2025, compared to the same periods in 2024, Depreciation and amortization expense decreased by $5.2 million, or 24.1%, and $13.0 million, or 22.4%, respectively, due primarily to the disposition of The Hamilton and the classification of the Brickell Assemblage as held for sale in December 2024, partially offset by the substantial completion of Upton Place, Strathmore Square, and Oak Shore in 2024.

General and Administrative Expenses

For the three months ended September 30, 2025, compared to the same period in 2024, General and administrative expenses decreased by $0.2 million, or 2.9%.

For the nine months ended September 30, 2025, compared to the same period in 2024, General and administrative expenses decreased by $0.4 million, or 1.6%.

Impairment of Real Estate

Based on periodic tests of recoverability of long-lived assets, during the three and nine months ended September 30, 2025, we recognized impairment losses totaling $57.4 million.

No impairment losses were recognized in the same periods in 2024.

The impairment losses were recognized primarily due to the reductions in the estimated period over which we expect to hold the properties, coupled with reductions in the estimated fair values of the assets as compared to their carrying amounts.

Interest Income

For the three and nine months ended September 30, 2025, compared to the same periods in 2024, Interest income decreased by $0.8 million, or 33.3%, and $2.3 million, or 30.8%, respectively, due primarily to a decrease earned on amounts of invested cash.

Interest Expense

For the three months ended September 30, 2025, compared to the same period in 2024, Interest expense decreased by $2.3 million, or 14.0%, due primarily to the repayment of certain non-recourse construction loans in December 2024 and use of the revolving credit facility to pay off a higher interest rate non-recourse construction loan in May 2025.

For the nine months ended September 30, 2025, compared to the same period in 2024, Interest expense increased by $3.0 million, or 7.3%, due primarily to increased non-recourse construction loan draws and reduced capitalization due to the substantial completion of Upton Place, Strathmore Square, and Oak Shore in 2024, partially offset by the repayment and refinancing of certain non-recourse construction loans in December 2024 and use of the revolving credit facility to pay off a higher interest rate non-recourse construction loan in May 2025.

In September 2025, we used proceeds from the sale of four Boston properties to paydown in full the borrowings and retire the revolving credit facility.

Realized and Unrealized Gains (Losses) on Interest Rate Contracts

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

As a result of the mark-to-market adjustments, we recorded unrealized losses of $0.4 million for the three months ended September 30, 2025, and unrealized losses of $1.2 million for the nine months ended September 30, 2025.

We recorded unrealized losses of $2.6 million and $4.1 million, respectively, for the same periods in 2024.

In addition, we realized gains of $0.3 million for the three months ended September 30, 2025, and realized gains of $0.8 million for the nine months ended September 30, 2025, respectively, compared to realized gains of $1.5 million and $5.3 million, respectively, for the same periods in 2024.

Realized and Unrealized Gains (Losses) on Equity Investments

We measure our investments in property technology funds at NAV as a practical expedient.

Prior to the sale of our investment in stock during the three months ended September 30, 2025, we measured our investments in stock based on its market price at period end.

In addition, we measure our investment in IQHQ 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.

As a result of changes in the values of these investments, we recorded net losses of $4.9 million and $5.5 million, respectively, for the three and nine months ended September 30, 2025.

For the same periods in 2024, we recorded net losses of $0.6 million and $48.1 million, respectively.

During the three and nine months ended September 30, 2025, we recorded a $6.2 million non-cash impairment recognized on our investment in IQHQ compared to $47.0 million recorded in the second quarter of 2024.

Other Income (Expense), Net

Other income (expense), net , includes costs associated with our risk management activities, partnership administration expenses, fee income, and certain non-recurring items, as well as activity related to our Mezzanine Investment and unconsolidated real estate partnerships.

For the three and nine months ended September 30, 2025 compared to the same periods in 2024 Other income (expense), net changed by $4.9 million and $7.2 million, respectively, primarily due to an increase in income related to our Mezzanine Investment and the non-cash other than temporary impairment recognized on our investment in an unconsolidated investment in the third quarter of 2024.

Income Tax Benefit (Expense)

Certain aspects of our operations are conducted through taxable REIT subsidiaries, or “TRS entities”.

Additionally, our TRS entities hold an investment in 1001 Brickell Bay Drive and Oak Shore.

Our income tax benefit (expense) calculated in accordance with GAAP includes income taxes associated with the income or loss of our TRS entities.

Income taxes, as well as changes in valuation allowance and incremental deferred tax items in conjunction with intercompany asset transfers and internal restructurings (if applicable), are included in Income tax benefit (expense) in our Condensed Consolidated Statements of Operations .

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

For the three and nine months ended September 30, 2025, we had consolidated net losses subject to tax of $2.7 million and $5.9 million, respectively.

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 months ended September 30, 2025, we recognized income tax benefit attributable to continuing operations of $0.1 million compared to $3.8 million during the same period in 2024.

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

For the nine months ended September 30, 2025, we recognized income tax expense attributable to continuing operations of $5.4 million, compared to an income tax benefit of $8.7 million during the same period in 2024.

The change in income tax benefit (expense) is due primarily to the tax effect of reduced depreciation in 2025 associated with properties owned by, and activities of, our TRS entities, partially offset by the recognition of a non-cash partial valuation allowance against the deferred tax assets of our TRS entities in 2025.

On July 4, 2025, legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was signed into law.

Significant provisions of the OBBBA include the permanent extension of certain provisions of the 2017 Tax Cuts and Jobs Act and the restoration of favorable tax treatment for certain business provisions.

The changes introduced by the OBBBA are not expected to have a material impact on our annual effective tax rate for 2025.

For the month ended January 31, 2026, other property operating expenses not allocated to segments were $0.8 million.

Please refer to Note 10 to the condensed consolidated financial statements in Item 1 for our Chicago Portfolio and Boston Portfolio performance, which are classified as discontinued operations.

Income (loss) from Discontinued Operations, Net

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In addition, the net gain or loss on the eventual disposal of properties are reported in discontinued operations, along with any related tax effects or allocation of income to noncontrolling interests in the results of the discontinued operations.

For the three and nine months ended September 30, 2025, we recognized income from discontinued operations, net, of $382.3 million and $397.4 million, respectively, compared to income from discontinued operations, net, of $7.3 million and $20.2 million, respectively, during the same periods in 2024.

The change in income from discontinued operations, net, is due primarily to the recognition of a gain on disposal of $377.1 million related to the sale of four properties in our suburban Boston portfolio.

For the month ended January 31, 2026, we recognized income from discontinued operations, net, of $0.9 million primarily from the operations of the Chicago Portfolio.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with GAAP, which requires us to make estimates and assumptions.

Our critical accounting estimates that involve our more significant judgments and estimates used in the preparation of our consolidated financial statements are detailed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations , of Aimco’s and Aimco Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2024.

There have been no significant changes in our critical accounting estimates from those reported in our Form 10-K and we believe that the related judgments and assessments have been consistently applied and produce financial information that fairly depicts the financial condition, results of operations, and cash flows for all periods presented.

Liquidation Basis

Upon adoption of the liquidation basis of accounting, our investments in real estate were adjusted to their estimated net realizable value.

The liquidation value represents the estimated amount of cash that we expect to receive through the disposal of our assets as we carry out the Plan of Sale and Liquidation.

We estimated the liquidation value of our real estate investments generally based on either contractual purchase prices or offers received on the properties or, if no contracts or offers had been received yet, on management’s estimate of a property’s liquidation value, taking into account information obtained during the marketing and sale process for the properties, including broker opinions of value.

The liquidation values of our investments in real estate are presented on an undiscounted basis and investments in real estate are no longer depreciated.

Subsequent to February 1, 2026, all changes in the estimated liquidation value of the investments in real estate are reflected as a change to our net assets in liquidation.

Estimated Costs in Excess of Estimated Receipts

The liquidation basis of accounting requires us to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the Plan of Sale and Liquidation.

As of March 31, 2026, we are estimating that we will have costs in excess of estimated receipts during the liquidation process.

These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs and capital expenditures, the timing and value of property sales, estimates of direct costs incurred to complete the sales, the timing and estimated amounts associated with discharging known and contingent liabilities, and the estimated costs associated with the winding up of operations.

These costs are estimated and are anticipated to be paid out over the liquidation period;

however, no assurances can be provided that the dates used in estimation will be met.

Going Concern Basis

Under a going concern basis, the critical accounting estimates that involve our more significant judgments and estimates used in the preparation of our consolidated financial statements are detailed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations , of Aimco’s and Aimco Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2025.

There have been no other significant changes in our critical accounting estimates on a going concern basis from those reported in our Form 10-K and we believe that the related judgments and assessments have been consistently applied and produce financial information that fairly depicts the financial condition, results of operations, and cash flows for all periods presented.

Non-GAAP Measures

We use EBITDAre and Adjusted EBITDAre in managing our business and in evaluating our financial condition and operating performance.

These key financial indicators are non-GAAP measures and are defined and described below.

We provide reconciliations of the non-GAAP financial measures to the most comparable financial measure computed in accordance with GAAP.

Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”)

EBITDAre and Adjusted EBITDAre are non-GAAP measures, which we believe are useful to investors, creditors, and rating agencies as a supplemental measure of our ability to incur and service debt because they are recognized measures of performance by the real estate industry and facilitates comparison of our credit strength to other companies.

EBITDAre and Adjusted EBITDAre should not be considered alternatives to net income (loss) as determined in accordance with GAAP as indicators of liquidity.

There can be no assurance that our method of calculating EBITDAre and Adjusted EBITDAre is comparable with that of other real estate investment trusts.

Nareit defines EBITDAre as net income computed in accordance with GAAP, before interest expense, income taxes, depreciation and amortization expense, further adjusted for:

• gains and losses on the dispositions of depreciated property;

• impairment write-downs of depreciated property;

• impairment write-downs of investments in unconsolidated partnerships caused by a decrease in the value of the depreciated property in such partnerships;

• adjustments to reflect our share of EBITDAre of investments in unconsolidated entities.

EBITDAre is defined by Nareit and provides for an additional performance measure independent of capital structure for greater comparability between real estate investment trusts.

We define Adjusted EBITDAre as EBITDAre adjusted to exclude the effect of the following items:

• net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships and EBITDAre adjustments attributable to noncontrolling interests;

• realized and unrealized (gains) losses on interest rate contracts, which we believe allow investors to compare a measure of our earnings before the effects of our capital structure and indebtedness with that of other companies in the real estate industry;

• the (income) loss recognized on our Mezzanine Investment;

• the unrealized (gains) losses recognized on our passive equity investments.

The reconciliation of net income (loss) to EBITDAre and Adjusted EBITDAre for the three and nine months ended September 30, 2025 and 2024, is as follows ( in thousands ):

Three Months Ended September 30,

Nine Months Ended September 30,

Net income (loss)

Interest expense

Income tax (benefit) expense

Depreciation and amortization

Impairment on real estate

Interest expense, depreciation, amortization, and income taxes related to discontinued operations

Gains on dispositions of real estate, including discontinued operations

Unrealized (gains) losses from investments in unconsolidated partnerships

Adjustment related to EBITDAre of unconsolidated partnerships

Net (income) loss attributable to redeemable noncontrolling interests in consolidated real estate partnerships

Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships

EBITDAre adjustments attributable to noncontrolling interests

Mezzanine investment (income) loss, net

Realized and unrealized (gains) losses on interest rate contracts

Unrealized (gains) losses on passive equity investments

Adjusted EBITDAre

Due to the adoption of the Plan of Sale and Liquidation, we are no longer reporting EBITDAre, Adjusted EBITDAre, or other non-GAAP measures as we no longer consider these to be key financial indicators.

Liquidity and Capital Resources

Liquidity is the ability to meet present and future financial obligations.

As of September 30, 2025, our available liquidity was $425.1 million, which consisted of:

• $404.4 million in cash and cash equivalents ($327.3 million of which funded the special dividend paid on October 15, 2025);

As of March 31, 2026, our available liquidity was $224.3 million, which consisted of:

• $216.0 million in cash and cash equivalents;

• $8.3 million of restricted cash, including amounts related to tenant security deposits and escrows held by lenders for capital additions, property taxes, and insurance.

As of September 30, 2025, we had sufficient capacity on our non-recourse construction loans to cover our remaining commitments on development and redevelopment projects of approximately $107.6 million.

As of March 31, 2026, we had sufficient capacity on our non-recourse construction loans to cover our remaining commitments on our multifamily development project of approximately $70.9 million.

We also have unfunded commitments in the amount of $0.9 million related to our investments in entities that develop technology related to the real estate industry.

Our principal uses for liquidity include normal operating activities, payments of principal and interest on outstanding debt, capital expenditures, and future investments.

Our principal uses for liquidity include operating activities, payments of principal and interest on outstanding debt, ground lease payments, and capital expenditures.

Additionally, our third-party property managers may enter into commitments on our behalf to purchase goods and services in connection with the operation of our apartment communities and our office building.

Those commitments generally have terms of one year or less and reflect expenditure levels comparable to historical levels.

Subsequent to quarter end, in November 2025, our Board deemed advisable and approved the Plan of Sale and Liquidation.

If the Plan of Sale and Liquidation is approved by our stockholders, we expect it will materially impact our short and long-term capital needs and liquidity requirements, and our plan to meet those needs.

As of September 30, 2025, whether the Plan of Sale and Liquidation is approved by our stockholders, we believe, based on the information available at this time, cash and cash equivalents, cash generated from operations, and proceeds from planned dispositions are sufficient sources of liquidity to meet our operational needs for the next twelve months.

In the event that these sources of liquidity are not sufficient to cover our liquidity needs, we have the means to generate additional liquidity, such as from additional property financing activity and proceeds from apartment community sales.

We expect to meet our long-term liquidity requirements, including debt maturities, development and redevelopment spending, and future investment activity, primarily through property financing activity, cash generated from operations, and the recycling of our equity.

We believe, based on information available at this time, cash and cash equivalents, cash generated from operations, and proceeds from sales of property pursuant to the Plan are sufficient sources of liquidity for the next twelve months and through liquidation to meet operational needs as well as remaining commitments on our one remaining development project.

We also have limited debt maturities over the next two years.

After giving effect to available extension options, we have no scheduled maturities until December 2027.

Our use of low‑leverage, property‑level financing provides flexibility to refinance existing debt, if necessary.

Liquidating Distributions

Pursuant to the Plan of Sale and Liquidation, Aimco intends to return net proceeds from asset sales and cash on hand to our stockholders, subject to the payment of our liabilities and obligations and estimated reserves based on the best available information regarding operational needs as well as projected transaction and wind-down costs.

Leverage and Capital Resources

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Any adverse changes in the lending environment, declines in our share price, and the effects of the announced Plan of Sale and Liquidation could negatively affect our liquidity.

We have taken steps to mitigate a portion of our short-term refunding risk.

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

As of September 30, 2025, all of our outstanding non-recourse property debt had a fixed interest rate.

As of March 31, 2026, all of our outstanding non-recourse property debt had a fixed interest rate.

In addition, the weighted-average contractual rate on our non-recourse debt was 4.6%, and the average remaining term to maturity was 6.2 years.

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Our primary sources of leverage are non-recourse property-level debt and non-recourse construction loans.

In September, we used proceeds from the sale of four suburban Boston properties to paydown in full $43.8 million of borrowings on our revolving credit facility.

Certain properties sold served as collateral for the credit facility, which was retired upon completion of the sales.

As of March 31, 2026, we have unused outstanding capacity on our construction loans of $88.0 million.

Changes in Cash, Cash Equivalents, and Restricted Cash

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Operating Activities

For the nine months ended September 30, 2025, net cash provided by operating activities was $22.4 million.

For the month ended January 31, 2026, net cash used in operating activities was $39.3 million, primarily related to income tax payments associated with the sale of 1001 Brickell in the fourth quarter of 2025.

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

Net cash provided by operating activities for the nine months ended September 30, 2025, decreased by $23.7 million compared to the same period in 2024, due primarily to the timing of changes in operating assets and operating liabilities, decreased cash flows provided by operating activities from discontinued operations, and increased interest expense.

Investing Activities

For the nine months ended September 30, 2025, net cash provided by investing activities was $401.8 million.

Net cash provided by investing activities for the nine months ended September 30, 2025, changed by $516.2 million compared to the same period in 2024, due primarily to the sale of four real estate assets within our Boston portfolio and decreased capital expenditures.

For the month ended January 31, 2026, net cash provided by investing activities was $10.4 million, primarily related to the modification and repayment of our seller financing receivable, offset by capital expenditures.

Financing Activities

For the nine months ended September 30, 2025, net cash used in financing activities of $171.8 million.

Net cash used in financing activities for the nine months ended September 30, 2025, changed by $211.2 million compared to the same period in 2024, due primarily to the payment of dividends and distributions, principal repayments on non-recourse property debt associated with the four real estate assets within the Boston portfolio sold during the period, principal repayment on non-recourse construction loans and bridge financing, and decreased proceeds from non-recourse construction loans and bridge financing, partially offset by increased contributions from redeemable noncontrolling interests.

Future Capital Needs

Subsequent to quarter end, in November 2025, our Board deemed advisable and approved the Plan of Sale and Liquidation.

If the Plan of Sale and Liquidation is approved by our stockholders, we expect it will materially impact our short and long-term capital needs and our plan to meet those needs.

As of September 30, 2025, whether the Plan of Sale and Liquidation is approved by our stockholders, we believe, based on the information available at this time, that we have sufficient cash on hand and access to additional sources of liquidity to meet our operational needs for the next twelve months.

We expect to fund any future development and redevelopment, and other capital spending principally with operating cash flows, short-term borrowings, and debt and equity financing.

Our near-term business plan does not contemplate the issuance of equity.

For the month ended January 31, 2026, net cash used in financing activities was $45.7 million, primarily due to the redemption of 50% of the outstanding redeemable noncontrolling interest in a portfolio of operating apartment communities, offset by proceeds from non-recourse construction loans and contributions from redeemable noncontrolling interests.

QUANTITATIVE AND QUALITATI VE DISCLOSURES ABOUT MARKET RISK

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

As of September 30, 2025, on a consolidated basis, we had no variable-rate property-level debt outstanding and $168.3 million of variable-rate construction loans outstanding.

The impact of elevated interest rates is mitigated by our use of interest rate caps, which as of September 30, 2025, provided protection for our variable interest rate debt.

As of March 31, 2026, on a consolidated basis, we had no variable-rate property-level debt outstanding and $178.0 million of variable-rate construction loans outstanding.

The impact of elevated interest rates is mitigated by our use of interest rate caps, which as of March 31, 2026, provided protection for our variable interest rate debt.

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

As of September 30, 2025, we estimate an increase or decrease in our variable rate indices of 100 basis points with constant credit risk spreads, would have no material impact on interest expense.

As of September 30, 2025, we held interest rate caps with a maximum notional value of $370.3 million.

These instruments were acquired for $2.8 million and at September 30, 2025, were valued at $0.2 million.

As of September 30, 2025, we had $425.1 million in cash and cash equivalents and restricted cash, a portion of which earns interest at variable rates.

As of March 31, 2026, we estimate an increase or decrease in our variable rate indices of 100 basis points with constant credit risk spreads, would have no material impact on interest expense.

As of March 31, 2026, we held interest rate caps with a maximum notional value of $266.0 million.

These instruments were acquired for $0.4 million and at March 31, 2026, were valued at $0.1 million.

As of March 31, 2026, we had $224.3 million in cash and cash equivalents and restricted cash, a portion of which earns interest at variable rates.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis