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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) November 10, 2003

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
(Exact name of registrant as specified in its charter)

MARYLAND
(State or other jurisdiction
of incorporation or organization)
  1-13232
(Commission
File Number)
  84-1259577
(I.R.S. Employer
Identification No.)


4582 SOUTH ULSTER STREET PARKWAY
SUITE 1100, DENVER, CO 80237
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (303) 757-8101

NOT APPLICABLE
(Former name or Former Address, if Changed Since Last Report)





ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

        The press release of Apartment Investment and Management Company ("Aimco"), dated November 10, 2003, attached hereto as Exhibit 99.1 is furnished herewith. Aimco will hold its third quarter 2003 earnings conference call on November 10, 2003 at 1:30 p.m. eastern time. You may join the conference call through an Internet audiocast via Aimco's Website at www.aimco.com/about/financial/3Q2003.asp and click on the Webcast link, or by dialing 800-218-0204, or 303-262-2192 for international callers. If you wish to participate, please call approximately five minutes before the conference call is scheduled to begin.

        If you are unable to join the live conference call, you may access the replay on Aimco's Website or by dialing 800-405-2236 (303-590-3000 for international callers) and using access code 545741#. Both replays will be available for 30 days. Please note that the full text of the press release and supplemental schedules are available through Aimco's website at www.aimco.com/about/financial/3Q2003.asp. The information contained on Aimco's website is not incorporated by reference herein.

        The following exhibits are furnished with this report:

Exhibit Number
  Description

99.1   Third Quarter 2003 Earnings Release dated November 10, 2003


SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

        Dated: November 10, 2003

  APARTMENT INVESTMENT AND MANAGEMENT COMPANY

 

/s/  
PAUL J. MCAULIFFE      
Paul J. McAuliffe
Executive Vice President and Chief Financial Officer

AIMCO 3rd Quarter 2003

Denver, Colorado—November 10, 2003

Apartment Investment and Management Company Announces Third Quarter 2003 Results

SUMMARY FINANCIAL RESULTS Apartment Investment and Management Company ("Aimco") (NYSE:AIV) announced third quarter 2003 results including:

Net Income was $40.6 million, compared with $46.3 million in the third quarter 2002. Earnings per share (EPS) were $0.15 on a diluted basis, compared with $0.26 in the same period last year, based on Net Income attributable to common stockholders.

Funds from Operations (diluted) (FFO; a non-GAAP financial measure defined in the Glossary in Supplemental Information (the "Glossary")) were $86.4 million, or $0.80 per share, compared with $121.9 million, or $1.06 per share in the third quarter 2002.

Adjusted Funds from Operations (diluted) (AFFO; a non-GAAP financial measure defined in the Glossary) were $71.3 million, or $0.66 per share, compared with $92.4 million, or $0.85 per share, in the third quarter 2002.

DILUTED PER SHARE RESULTS

 
  Third Quarter
  First Nine Months
 
  2003
  2002
  2003
  2002
Earnings—EPS   $ 0.15   $ 0.26   $ 0.51   $ 1.07
Funds from Operations—FFO   $ 0.80   $ 1.06   $ 2.52   $ 3.55
Adjusted Funds from Operations—AFFO   $ 0.66   $ 0.85   $ 2.01   $ 2.95
   
 
 
 

Third quarter and first nine months 2003 results include non-cash charges of $5.5 million and $7.7 million, respectively, for the treatment of issuance costs associated with preferred share redemptions in the second and third quarters. This treatment of issuance costs is in accordance with the Securities and Exchange Commission's ("SEC") July 31, 2003 interpretation of the Emerging Issues Task Force Topic D-42 ("Topic D-42"). In addition, third quarter and first nine months results include non-cash impairment losses on real estate assets sold

Contact: Investor Relations 303.691.4350, Investor@Aimco.com
Jennifer Martin, Vice President—Investor Relations 303.691.4440

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or held for sale of $0.6 million and $8.6 million, respectively, that were historically added back in the calculation of FFO. The National Association of Real Estate Investment Trusts ("NAREIT") indicated, as of October 1, 2003, that impairment losses should be subtracted in the calculation of FFO. These non-recurring, non-cash charges have been added back in the calculation of AFFO.

As a result, these non-cash charges reduced diluted FFO per share by $0.06 and $0.16 for the third quarter and first nine months, respectively.

PER SHARE IMPACT OF REPORTING CHANGES ON DILUTED FFO

 
  As Reported
  Adjusted for Non-Cash Charges
 
 
  Third Quarter
 
 
  Third Quarter
 
FFO   $ 0.80   $ 0.80  
Redemption related preferred stock issuance costs (Topic D-42)           0.05  
Impairment loss on real estate assets sold or held for sale (NAREIT definition)           0.01  
         
 
FFO before non-cash charges         $ 0.86  
Capital Replacment and Capital Enhancements     (0.20 )   (0.20 )
Redemption related preferred stock issuance costs (Topic D-42)     0.05        
Impairment loss on real estate assets sold or held for sale (NAREIT definition)     0.01        
   
 
 
AFFO   $ 0.66   $ 0.66  
   
 
 

Management Comments

Comments from Chairman and Chief Executive Officer, Terry Considine:

"Year to date, net operating income has increased by $42.4 million (7.3%) primarily due to a net increase in real estate investments. On a per share basis, FFO and AFFO are lower year to date, primarily because the apartment recession has resulted in lower rents and occupancies which, in turn, have driven higher marketing, turnover and Capital Replacement spending."

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"It also bears noting, year to date, that transaction income is substantially lower, whether from Aimco Capital development and equity placement fees, or from accretion, net of provisions relating to Aimco's large portfolio of Notes Receivable."

"Another burden on current period results is an increased level of G&A spending for automation as well as high costs of compliance with increasing and changing government and accounting requirements."

"It is encouraging that the decline in revenue as compared to the prior year abated during the quarter but it is premature to know if this improvement will be sustained."

"Today's release also introduces more detailed reporting allocating Aimco financial results among its Core, Non-core, and Aimco Capital portfolios."

Dividends on Common Stock

The Aimco Board of Directors declared a quarterly cash dividend of $0.60 per share of Class A Common Stock for the quarter ended September 30, 2003, payable on November 28, 2003 to stockholders of record on November 20, 2003. The Board of Directors reduced the quarterly cash dividend from $0.82 to $0.60 to align the amount with Aimco's current level of profitability. The dividend represents 91% of diluted AFFO and 70% of diluted FFO (before deducting non-cash, redemption related preferred stock issuance costs under Topic D-42 totaling $0.05 per share) for the quarter ended September 30, 2003 and a 6.6% yield based on the $36.23 closing price of Aimco's Class A Common Stock on November 5, 2003.

"Same Store" Results

"SAME STORE" RESULTS The "Same Store" portfolio includes 589 communities with a total of 164,578 apartment units in which Aimco has a weighted average ownership of 82.5% (see Supplemental Schedule IX). Revenue from the "Same Store" portfolio was $284.8 million compared with $288.7 million in the third quarter 2002. The decrease in revenue of $3.9 million, or 1.3%, is due primarily to (i) a decline in occupancy by 50 basis points to 93.0%, and (ii) lower rents, as the average "Same Store" rent declined by 1.4%, from $712 to $702 per apartment, as a result of competitive leasing environments in certain markets, particularly Denver, Texas and parts of the Midwest. "Same Store"

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expenses of $118.8 million increased by $9.0 million, or 8.2%, compared with the third quarter 2002. Increased expenses were primarily due to: (i) $3.0 million in expenses related to increasing occupancy, including marketing, turnover, and administrative; (ii) $2.9 million in higher repairs and maintenance and landscaping services, in support of efforts to improve the physical appearance and condition of properties; and (iii) $1.5 million in higher utility expenses due to higher natural gas and water prices. "Same Store" portfolio net operating income was $166.0 million for the third quarter 2003, down 7.2% from the third quarter 2002.

SAME STORE OPERATING RESULTS

 
  Third Quarter
  Sequential
 
 
  2003
  2002
  Variance
  2nd Qtr 03
  Variance
 
Same Store Operating Measures:                            
  Average Physical Occupancy     93.0 %   93.5 % -50bp     92.6 % +40bp  
  Average Rent/unit   $ 702   $ 712   -1.4 % $ 703   -0.1 %

Total Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  Revenue   $ 284.8   $ 288.7   -1.3 % $ 282.9   0.7 %
  Expenses     (118.8 )   (109.8 ) 8.2 %   (113.5 ) 4.7 %
   
 
 
 
 
 
  NOI ($mm)   $ 166.0   $ 178.9   -7.2 % $ 169.4   -2.0 %
   
 
 
 
 
 

Comparing "Same Store" results on a sequential basis, Aimco's "Same Store" portfolio realized a $0.9 million increase in Net Rental Income (as defined in the Glossary) in the third quarter compared with the second quarter driven by a 40 basis point increase in average occupancy from 92.6% to 93.0%. Total revenue increased $1.9 million. Expenses increased $5.3 million due primarily to (i) a $1.9 million increase in expenses related to increasing occupancy (marketing, turnover and administrative); (ii) $0.8 million increase in expenses related to improving the physical appearance of properties; (iii) $1.1 million increase for increased personnel expenses; and (iv) a $1.5 million increase in property taxes. Net Operating Income decreased $3.4 million, or 2.0%, on a sequential basis. During the quarter, the "Same Store" portfolio was reduced by 19 properties or 4,778 units due to property sales.

For the third quarter 2003, "Same Store" resident turnover was 16%, compared with 17% in the third quarter 2002.

"Same Store" results reflect the performance of conventional communities in which Aimco's ownership exceeds 10% and that have reached a stabilized level of occupancy during both

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the current and comparable prior year period. These results measure operating performance without variations caused by investment transactions.

Aimco's "Same Store" results measure Aimco's effective ownership in "Same Store" communities and include both Aimco's ownership interest in unconsolidated "Same Store" properties and subtract the minority interest share of consolidated properties (see reconciliation on Supplemental Schedule VIII). In keeping with this definition, the "Same Store" portfolio accounted for 78.1% of Real Estate Free Cash Flow (Free Cash Flow ("FCF") is a non-GAAP financial measure defined in the Glossary and presented and reconciled to GAAP income on Supplemental Schedule II).

CAPITAL REPLACEMENTS AND CAPITAL ENHANCEMENTS Capital Replacements (as defined in the Glossary) were $21.0 million and Capital Enhancements (as defined in the Glossary) were $0.2 million in the quarter, which totals are deducted in calculating AFFO. These totals compare with $24.5 million and $1.2 million, respectively, in the third quarter 2002. Capital Replacement and Capital Enhancement spending together are expected to total approximately $560 per unit for the full year 2003. Beginning in the second quarter 2003, capital expenditures made for properties sold, held for sale or identified to be sold within one year are classified as Disposition Capital Expenditures (as defined in the Glossary). Beginning in the third quarter 2003, Aimco began to include in Disposition Capital Expenditures certain Affordable properties that are expected to be sold upon satisfaction of regulatory requirements. Disposition Capital Expenditures totaled $10.6 million in the quarter.

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CAPITAL REPLACEMENT & CAPITAL ENHANCEMENT EXPENDITURES

 
  Third Quarter
  First Nine Months
 
  2003
  2002
  2003
  2002
Capital Replacements   $ 21   $ 25   $ 68   $ 61
Capital Enhancements     0     1     2     6
   
 
 
 
  Total ($mm)   $ 21   $ 26   $ 70   $ 67

Capital Replacements per unit

 

$

135

 

$

150

 

$

434

 

$

364
Capital Enhancements per unit     1     9     15     37
   
 
 
 
  Total ($/unit) (1)   $ 136   $ 159   $ 449   $ 401

Capital Replacements per share

 

$

0.20

 

$

0.23

 

$

0.63

 

$

0.58
Capital Enhancements per share         0.01     0.02     0.06
   
 
 
 
  Total ($/share)   $ 0.20   $ 0.24   $ 0.65   $ 0.64
   
 
 
 

(1)
based on 157,000 units in third quarter 2003, representing Aimco's weighted average ownership in conventional and affordable properties.

Reporting by Business Component

Starting in the third quarter 2003, Aimco has introduced business component reporting for Aimco Conventional operations and Aimco Capital with the addition of Supplemental Schedules XVI through XXVIII. These schedules present select, non-GAAP information related to income statement, free cash flow, balance sheet and operating measures. They are intended to present results of Aimco's distinct operating portfolios. Aimco's strategy is to expand and upgrade its Core real estate portfolio and, over time, to sell its Non-core and Affordable portfolios reinvesting the proceeds in acquisitions for the Core portfolio and in debt reduction or share repurchases. Core properties are those properties that are located in selected markets and which Aimco intends to hold and improve over the long-term. Non-core properties are located in other markets or in less favored locations within the selected markets, which Aimco intends to hold for an intermediate term. Affordable properties are typically those which have rent subsidies provided by HUD and other government agencies.

CONVENTIONAL OPERATIONS Conventional real estate operations include Aimco's diversified portfolio of market-rate apartment communities and associated property management and other income. During the third quarter, conventional real estate operations generated FCF of $164.7 million from 669 properties with 187,000 units and an average 80% ownership. Conventional real estate assets have been further allocated between Core and Non-core, with performance results presented on Schedules XXII through XXVIII. "Same Store" Core properties include 331 communities with 102,971 units and accounted for 75% of real estate FCF "Same Store" Non-

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core properties include 258 communities with 61,607 units and accounted for 25% of real estate FCF. Conventional operations also generated Free Cash Flow from property management and other fees (associated with asset management, construction management, refinancing, dispositions, development and other services to affiliated partnerships), net of expenses and insurance losses, of $(0.4) million.

AIMCO CAPITAL Aimco Capital was established in 2002 to organize affordable property operations and asset management under a single management team dedicated to this sector. The management of affordable housing requires specialized property management, accounting and legal expertise to comply with the regulatory framework that affects affordable properties. Aimco is among the largest owners and operators of affordable properties in the United States. During the third quarter 2003, Affordable property operations included 495 properties with 59,064 units. Aimco has an average 38% ownership in its Affordable properties. Occupancy and average rents in the affordable sector were stable and averaged 95.2% and $645, respectively in the third quarter, consistent with the second quarter 2003.

Aimco Capital also generates income from asset management (from the above holdings as well as two other large portfolios that are asset managed only), property management, and transactional activity including dispositions, tax credit redevelopment and refinancings. Aimco Capital has completed 57 transactions year-to-date. Although, negotiated rent increases are reflected in increased affordable revenue, other fees and transactions are recorded as investment management income. During the third quarter 2003, Aimco Capital generated FCF of $18.1 million from property operations and asset management and transaction activity.

Additional Income Information

INTEREST INCOME FROM GENERAL PARTNER LOANS Interest and Other Income was $5.1 million, a decrease of $8.1 million from the third quarter of 2002, primarily due to lower outstanding balances on general partner notes and also lower transactional income.

Notes receivable primarily from affiliated partnerships were $184.3 million ($253.0 million face value) at quarter-end versus $247.5 million ($337.4 million face value) at September 30, 2002, a reduction of $63.2 million, or 26%, due primarily to collections of the notes

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receivable and GAAP required eliminations on newly consolidated partnerships. Aimco recognized in the third quarter 2003 total transactional income of $0.05 million and made no provisions for loan losses, compared with $3.8 million in transactional income and $1.7 million of provisions in the third quarter 2002.

INTEREST EXPENSE Consolidated interest expense was $95.2 million for the quarter, an increase of $18.4 million when compared with $76.8 million in the third quarter 2002. The increase in interest expense is primarily a result of an increase in debt associated with newly consolidated and acquired properties.

G&A General and Administrative expenses for the quarter were $7.6 million, up from $4.4 million in the third quarter 2002. The $3.2 million increase is primarily due to: (i) $1.4 million for increased employee compensation and benefits; and (ii) $1.7 million for increased professional fees for compliance with increasing and changing government and accounting requirements.

GAIN ON DISPOSITIONS AND INCOME FROM DISCONTINUED OPERATIONS Gain on Dispositions of Real Estate of $1.5 million and Income from Discontinued Operations of $27.5 million in third quarter 2003 compared with a loss of $7.9 million and income of $4.3 million, respectively, in the third quarter 2002. Income from Discontinued Operations in the third quarter 2003 included a net gain on sales of $22.9 million, somewhat offset by impairment losses on real estate assets sold or held for sale and income taxes on dispositions.

SUMMARY OF THIRD QUARTER PERFORMANCE Diluted EPS of $0.15 was higher than the projected range of ($0.08) to ($0.04) due primarily to the Gain on Dispositions of Real Estate of $22.9 million, which is recorded in Discontinued Operations.

Diluted FFO per share of $0.80 was below Aimco estimates provided August 13, 2003. Comparing diluted FFO on a sequential basis, per share diluted FFO decreased $0.06 from the $0.86 (after required adjustments) earned in the second quarter due to:

FFO PER SHARE—THIRD QUARTER COMPARED WITH SECOND QUARTER

 
  FFO/Share
 
Second quarter 2003 diluted FFO per share including new rules   $ 0.86  
Second quarter non-cash adjustments for:        
  Topic D-42 redemption related preferred stock issuance costs     0.02  
  Impairment loss on real estate assets sold or held for sale     0.03  
   
 
  Second quarter 2003 before required adjustments   $ 0.91  
Third quarter incremental results:        
  Income from property operations     0.01  
  Investment Management, including fees and insurance claims     (0.04 )
  Interest expense     (0.02 )
   
 
  Third quarter before required adjustments   $ 0.86  
Third quarter non-cash adjustments for:        
  Topic D-42 redemption related preferred stock issuance costs     (0.05 )
  Impairment loss on real estate assets sold or held for sale     (0.01 )
   
 
Third quarter diluted FFO per share   $ 0.80  
   
 

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Transaction and Redevelopment Activity

ACQUISITIONS During the third quarter, Aimco purchased one property with 58 apartment units and 12 commercial spaces in five, contiguous, five-story buildings that occupy a full block-front on the east side of Columbus Avenue from 68th to 69th Streets in Manhattan. Aimco funded the $37.6 million purchase through a new $20 million loan and 1031 proceeds from the sale of Non-core properties. Year-to-date Aimco has purchased three properties for $105.6 million. During the third quarter, Aimco also purchased for an aggregate of $0.4 million limited and general partnership interests in 16 partnerships that own 50 properties. Year to date 2003, Aimco has purchased for an aggregate of $10.5 million limited and general partnership interests in 122 partnerships that own 325 properties.

Park La Brea Phase II (The Palazzo at Park La Brea), a development property in the mid-Wilshire area of Los Angeles, is on track for its scheduled purchase at year-end. In connection with Aimco's March 2002 acquisition of Casden Properties Inc., Aimco agreed to purchase the 521-unit property, which has average rents per unit of more than $2,500 per month, for approximately $163 million after its attainment of 60% occupancy.

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DISPOSITIONS Aimco regularly reviews its portfolio to identify properties that do not meet long-term investment criteria. Aimco considers these properties Non-core and seeks to sell them over the intermediate term.

During the third quarter, Aimco sold 34 properties including 7,231 apartment units for $263 million in gross proceeds, generating net cash proceeds to Aimco of $89 million after payment of mortgage debt and limited partner interests. Of the properties sold, 26 were conventional and eight were affordable. Year-to-date, Aimco has sold 74 properties including 17,351 apartment units for $638 million in gross proceeds. See the chart below for additional information on disposition activity. The FCF Yield is calculated as the FCF earned by the properties during the 12 months prior to their sale divided by the sales price. FCF includes a $525 per unit deduction for Capital Replacements and is before debt service.

THIRD QUARTER PROPERTY SALES ACTIVITY

 
  Number of Units
  Gross Proceeds ($mm)
  FCF Yield
  Property Debt ($mm)
  Net Sales Proceeds ($mm)
  Aimco Net Proceeds ($mm)
  Average Rent ($/unit)
Conventional   6,335   $ 234   7.7 % $ 132   $ 91   $ 82   $ 572
Affordable   896     29   8.9 %   18     8     7     678
   
 
 
 
 
 
 
  Total Dispositions   7,231   $ 263   7.8 % $ 150   $ 99   $ 89   $ 585
   
 
 
 
 
 
 

FIRST NINE MONTHS 2003 PROPERTY SALES ACTIVITY

 
  Number of Units
  Gross Proceeds ($mm)
  FCF Yield
  Property Debt ($mm)
  Net Sales Proceeds ($mm)
  Aimco Net Proceeds ($mm)
  Average Rent ($/unit)
Conventional   15,016   $ 567   7.6 % $ 318   $ 224   $ 202   $ 558
Affordable   2,335     71   7.5 %   37     17     14     631
   
 
 
 
 
 
 
  Total Dispositions   17,351   $ 638   7.6 % $ 355   $ 241   $ 216   $ 568
   
 
 
 
 
 
 

Aimco is currently marketing for sale 125 conventional properties (approximately 26,000 units) and 180 affordable properties (approximately 20,000 units). Aimco anticipates gross sales proceeds of approximately $250 to $300 million through the remainder of 2003. Aimco expects that its share of cash from these dispositions, net of limited partner interests and

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after repayment of mortgage debt, will be approximately $70 to $80 million. Under SFAS 144, these properties being marketed for sale are not all classified as assets held for sale as they do not meet specified criteria.

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REDEVELOPMENT ACTIVITY At quarter-end, Aimco had ten conventional properties with 5,327 units, and two affordable properties with 467 units, being redeveloped. Redevelopment expenditures in the quarter for the ten conventional properties were $23.3 million, of which Aimco's share was $15.9 million. The ten projects include three new projects: Cherry Creek Gardens located in Denver, Colorado; Westlake Arms located in Indianapolis, Indiana; and Chimney Hill, located in Marietta, Georgia, which is a 326-unit ground up development project that is being managed by Casden Development Company, LLC. Redevelopment expenditures for these ten conventional projects are expected to total $428.0 million, of which approximately $51.7 million remains to be spent. Aimco's share of this total redevelopment spending is $324.0 million, of which approximately $32.9 million remains to be spent.

Aimco's largest redevelopment project is Flamingo South Beach with 1,685 apartments located in Miami Beach, Florida. During the quarter, 237 additional units were completed for a total of 1,298 completed units and 387 units under redevelopment. At quarter-end, occupied and pre-leased units totaled 942.

Balance Sheet and Liquidity

FINANCING ACTIVITY During the third quarter, Aimco closed 19 mortgage loans generating $89.2 million of total proceeds at a weighted average interest rate of 4.39%. After repayment of existing debt, transaction costs and distributions to limited partners totaling $60.7 million, Aimco's share of net proceeds was $28.5 million.

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THIRD QUARTER MORTGAGE REFINANCINGS
($mm)
Mortgage Type (all non-recourse)

  Original Loan Amount
  New Loan Amount
  Aimco Share Original Loan
  Aimco Net Proceeds
  Prior Rate
  New Rate
 
Conventional Fixed Rate—15-year plus, partially to fully amortizing   $   $ 14.0   $   $ 13.9   n/a   5.23 %
Conventional Fixed Rate—5-15 year, partially amortizing     22.5     34.4     16.0     9.5   8.78 % 5.52 %
Affordable Mark-to-Market and other     15.6     17.2     7.7     (0.1 ) 7.50 % 2.76 %
Tax Exempt Bonds     14.5     23.6     9.2     5.2   3.59 % 3.44 %
   
 
 
 
 
 
 
Totals   $ 52.6   $ 89.2   $ 32.9   $ 28.5   6.97 % 4.39 %
   
 
 
 
 
 
 
YEAR-TO-DATE MORTGAGE REFINANCINGS
($mm)
Mortgage Type (all non-recourse)

  Original Loan Amount
  New Loan Amount
  Aimco Share Original Loan
  Aimco Net Proceeds
  Prior Rate
  New Rate
 
Conventional Fixed Rate—15-year plus, fully amortizing   $ 16.4   $ 43.3   $ 9.3   $ 20.3   7.95 % 5.52 %
Conventional Fixed Rate—5-15 year, partially amortizing     141.3     242.7     102.3     78.3   7.97 % 4.76 %
Conventional Floating Rate     55.9     66.5     33.5     7.6   7.58 % 3.00 %
Affordable Mark-to-Market and other     49.2     56.7     34.7     3.7   7.71 % 3.05 %
Tax Exempt Bonds     41.7     50.8     9.2     5.2   3.20 % 3.51 %
   
 
 
 
 
 
 
Totals   $ 304.5   $ 460.0   $ 189.0   $ 115.1   7.47 % 4.23 %
   
 
 
 
 
 
 

At quarter-end, Aimco's consolidated mortgage debt was $5,707 million. Aimco's pro rata share of mortgage debt (including total consolidated debt, less the minority interest portion plus Aimco's share of unconsolidated debt) was $5,536 million at quarter-end (see Supplemental Schedule V for detail). Mortgage debt had a weighted average maturity of 15 years and weighted average interest rate of 6.1%, down from 6.5% at year-end 2002; 82% was fixed rate debt and 18% was floating rate debt. Seventy-four percent of the floating rate mortgage debt was tax-exempt mortgage debt.

In addition to mortgage debt, at quarter end, Aimco had short-term debt of $514 million, including a $250 million term loan, $160 million drawn on the revolving credit facility, and $104 remaining on the term loan entered into in connection with the March 2002 acquisition of Casden Properties Inc. Total debt increased by $201 million during the quarter due primarily to: (i) reclassification as debt of mandatorily redeemable securities (primarily the Class S Cumulative Redeemable Preferred Stock) due to the adoption of SFAS 150; (ii) acquisition of a partnership interest in Lincoln Place in Southern California and the Manhattan property; (iii) and funding the NAPICO litigation settlement; all partially offset by reduced mortgage debt due to property sales.

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CAPITAL STRUCTURE AT SEPTEMBER 30, 2003

 
   
  At
Dec. 31, 02

  Percent
of Total

  At
Mar. 31, 03

  Percent
of Total

  At
Jun. 30, 03

  Percent
of Total

  At
Sep. 30, 03

  Percent
of Total

 
    Short-term debt   $ 406   4 % $ 471   4 % $ 354   3 % $ 514   5 %
(1)   Long-term debt     5,715   53 %   5,667   53 %   5,608   54 %   5,536   51 %
    Mandatorily Redeemable                                          
(2)   Preferreds                       113   1 %
   
 
 
 
 
 
 
 
 
 
        Total Debt     6,121         6,139         5,962         6,163      
    Less: Cash and restricted cash     376   -3 %   319   -3 %   337   -3 %   355   -3 %
   
 
 
 
 
 
 
 
 
 
        Net Debt     5,745   53 %   5,819   54 %   5,626   54 %   5,808   53 %
    Preferred equity     1,080   10 %   1,079   10 %   1,044   10 %   947   9 %
    Common equity at market     3,967   37 %   3,860   36 %   3,668   35 %   4,168 (3) 38 %
   
 
 
 
 
 
 
 
 
 
        Total Capitalization   $ 10,792   100 % $ 10,759   100 % $ 10,338   100 % $ 10,923   100 %
   
 
 
 
 
 
 
 
 
 

(1)
Aimco share of debt excluding the minority interest in consolidated debt, see Supplemental Schedule V

(2)
Certain preferred securities are considered debt under SFAS 150 that were previously classified as preferred equity for purposes of this chart

(3)
105.9 million shares and OP units outstanding at September 30, 2003 times the closing price of $39.36 per share/unit

As previously announced, during the quarter Aimco issued $150 million of 8.0% Class T Cumulative Preferred Stock in a public offering, applying the proceeds to redeem higher cost preferred securities including redemption of: all outstanding shares of its 9.5% Class H Cumulative Preferred Stock, 10% Class L Convertible Cumulative Preferred Stock and 9.25% Class M Convertible Cumulative Preferred Stock; and 1.5 million shares in a pro rata redemption of its 8.75% Class D Cumulative Preferred Stock. These redemptions were completed for cash on August 18, 2003.

LIQUIDITY During the quarter Aimco drew $160 million on its revolving credit facility, leaving $285 million in available funds.

Subsequent to quarter-end, Aimco completed modifications of its credit facility and term loans. Modifications included: (i) reduction of the minimum fixed charge coverage ratio from 1.50:1 to 1.40:1; (ii) reduction of the minimum interest coverage ratio from 2.25:1 to 2.00:1; (iii) increasing to 90% the percentage of FFO permitted to be distributed, based on trailing 12-months; and (iv) permitting the exclusion of redemption related preferred stock issuance costs (under Topic D-42) from interest expense and dividends when calculating coverage ratios. In conjunction with the modifications and based on current coverage ratios, the applicable margin on the revolving credit facility LIBOR-based loans increased from 2.65% to 2.85% and base rate loan margins increased from 1.15% to 1.35%.

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Apartment Investment and Management Company
Third Quarter 2003

Outlook

Please see Supplemental Schedule XIV for Aimco's updated Outlook for the fourth quarter and full year 2003.

Earnings Conference Call

Please join Aimco management on the Third Quarter 2003 earnings conference call to be held Monday, November 10, 2003 at 1:30 p.m. eastern standard time. You may join the conference call through an Internet audiocast via Aimco's Website at www.aimco.com/about/financial/3Q2003.asp by clicking on the Webcast link, or by dialing 800-218-8862, or 303-262-2143 for international callers. Please call approximately five minutes before the conference call is scheduled to begin and indicate that you wish to join the Apartment Investment and Management Company Third Quarter 2003 earnings conference call. If you are unable to join the live conference call, you may access the replay for 30 days on the Website or by dialing 800-405-2236 (303-590-3000 for international callers) and using access code 555574#.

Forward-looking Statements

This earnings release and Supplemental Information contain forward-looking statements including statements regarding 2003 results that are subject to certain risks and uncertainties, including but not limited to Aimco's ability to maintain current occupancy, rent levels, and "same store" results. Actual results may differ materially from those described and could be affected by a variety of factors including economic conditions; changes in interest rates; governmental regulations; competition; financing risks; variations in real estate values; the failure of acquisitions to perform in accordance with expectations; litigation; possible environmental liabilities; and other risks described in our filings with the Securities and Exchange Commission. These forward-looking statements reflect management's judgment as of this date, and we assume no obligation to revise or update them to reflect future events or circumstances.

About Aimco

Aimco is a real estate investment trust headquartered in Denver, Colorado owning and operating a geographically diversified portfolio of apartment communities through 19 regional operating centers. Aimco, through its subsidiaries, operates approximately 1,685

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Apartment Investment and Management Company
Third Quarter 2003

properties, including approximately 300,000 apartment units, and serves approximately one million residents each year. Aimco's properties are located in 47 states, the District of Columbia and Puerto Rico. Aimco common shares are included in the S&P 500.

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GAAP Income Statements

Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)

 
  For the Three Months Ended
September 30,

  For the Nine Months Ended
September 30,

 
 
  2003
  2002
  2003
  2002
 
RENTAL PROPERTY OPERATIONS:                          
  Rental and other property revenues   $ 377,403   $ 335,729   $ 1,111,036   $ 960,998  
  Property operating expenses     (166,400 )   (137,292 )   (485,993 )   (378,327 )
   
 
 
 
 
    Income from property operations     211,003     198,437     625,043     582,671  
   
 
 
 
 
INVESTMENT MANAGEMENT BUSINESS:                          
  Management fees and other income primarily from affiliates     14,930     22,135     47,577     66,850  
  Management and other expenses     (13,400 )   (18,642 )   (31,633 )   (48,304 )
  Amortization of intangibles     (1,276 )   (1,154 )   (4,716 )   (3,194 )
   
 
 
 
 
    Income from investment management business     254     2,339     11,228     15,352  
   
 
 
 
 
General and administrative expenses     (7,638 )   (4,360 )   (19,538 )   (12,377 )
Other expenses     -     -     -     (5,000 )
Provision for losses on notes receivable     -     (1,682 )   (1,488 )   (4,838 )

Depreciation of rental property

 

 

(82,840

)

 

(67,639

)

 

(247,682

)

 

(195,127

)
Interest expense     (95,239 )   (76,810 )   (283,487 )   (234,922 )
Interest and other income     5,140     13,259     18,404     56,034  
Equity in earnings (losses) of unconsolidated real estate partnerships [a]     (1,767 )   (254 )   (6,581 )   2,357  
Minority interest in consolidated real estate partnerships     (1,697 )   (2,129 )   (4,676 )   (5,730 )
   
 
 
 
 
Income from operations     27,216     61,161     91,223     198,420  

Gain (loss) on dispositions of real estate

 

 

1,462

 

 

(4,307

)

 

2,738

 

 

4,467

 
Impairment loss on investment in unconsolidated real estate partnerships     -     (3,564 )   -     (3,816 )
Distributions to minority partners in excess of income     (11,861 )   (4,302 )   (21,503 )   (15,274 )
   
 
 
 
 
Income before minority interest in Aimco Operating Partnership and discontinued operations     16,817     48,988     72,458     183,797  

Minority interest in Aimco Operating Partnership

 

 

(3,665

)

 

(6,979

)

 

(13,444

)

 

(23,644

)
   
 
 
 
 
Income from continuing operations     13,152     42,009     59,014     160,153  

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 
  Income from discontinued operations, net of tax of $806 and ($127) for the three months ended September 30, 2003 and 2002, respectively [b]     27,483     4,336     62,674     2,284  
   
 
 
 
 
Net income   $ 40,635   $ 46,345   $ 121,688   $ 162,437  
   
 
 
 
 
Net income attributable to preferred stockholders   $ 26,930   $ 22,092   $ 74,032   $ 71,466  
   
 
 
 
 
Net income attributable to common stockholders   $ 13,705   $ 24,253   $ 47,656   $ 90,971  
   
 
 
 
 
Weighted average number of common shares outstanding     92,839     91,831     92,759     83,443  
   
 
 
 
 
Weighted average number of common shares and common share equivalents outstanding     93,049     92,735     92,889     84,842  
   
 
 
 
 

 
Earnings (loss) per common share - basic:                          
  Income (loss) from continuing operations (net of preferred dividends)   $ (0.15 ) $ 0.21   $ (0.16 ) $ 1.06  
   
 
 
 
 
  Net income attributable to common stockholders   $ 0.15   $ 0.26   $ 0.51   $ 1.09  
   
 
 
 
 
Earnings (loss) per common share - diluted:                          
  Income (loss) from continuing operations (net of preferred dividends)   $ (0.15 ) $ 0.21   $ (0.16 ) $ 1.04  
   
 
 
 
 
  Net income attributable to common stockholders   $ 0.15   $ 0.26   $ 0.51   $ 1.07  
   
 
 
 
 
[a]
Represents Aimco's share of earnings (losses) from apartment units in which Aimco holds an equity interest.
[b]
Income from discontinued operations of consolidated properties is broken down as follows (in thousands):

 
  Quarter Ended
30-Sep-03

  Quarter Ended
30-Sep-02

  Nine Months Ended
30-Sep-03

  Nine Months Ended
30-Sep-02

 
  Income from operations   $ 2,387   $ 4,338   $ 4,766   $ 14,799  
  Gain (loss) on dispositions of real estate, net     22,908     (129 )   66,930     (10,432 )
  Impairment loss on real estate assets sold or held for sale     (619 )   -     (8,560 )   (210 )
  Distributions to minority partners in excess of income     3,613     -     4,650     (1,321 )
  Income tax arising from disposals (primarily deferred)     (806 )   127     (5,112 )   (552 )
   
 
 
 
 
  Income from discontinued operations     27,483     4,336     62,674     2,284  
   
 
 
 
 

GAAP Balance Sheets

Consolidated Balance Sheets
(in thousands)
(unaudited)

 
  As of
September 30, 2003

  As of
December 31, 2002

 
ASSETS  
Buildings and improvements   $ 8,556,905   $ 8,474,525  
Land     2,136,397     1,962,356  
Accumulated depreciation     (1,806,667 )   (1,657,046 )
Cash and cash equivalents     126,680     98,567  
Restricted cash     211,200     220,164  
Accounts receivable     62,380     84,967  
Accounts receivable from affiliates     46,812     47,060  
Deferred financing costs     74,434     69,862  
Notes receivable, primarily from unconsolidated real estate partnerships     184,267     169,238  
Investment in unconsolidated real estate partnerships     233,781     367,851  
Other assets     286,188     258,953  
Assets held for sale     70,552     220,104  
   
 
 
  TOTAL ASSETS   $ 10,182,929   $ 10,316,601  
   
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Secured tax-exempt bond financing   $ 1,201,572   $ 1,171,557  
Secured notes payable     4,505,657     4,543,566  
Mandatorily redeemable preferred securities     113,169     15,169  
Term loans     354,387     115,011  
Credit facility     160,000     291,000  
   
 
 
  TOTAL INDEBTEDNESS     6,334,785     6,136,303  
Accounts payable     15,874     11,150  
Accrued liabilities and other     386,494     294,769  
Deferred income     24,129     15,283  
Security deposits     41,967     39,903  
Deferred income taxes payable     23,947     36,680  
Liabilities related to assets held for sale     53,919     168,654  
   
 
 
  TOTAL LIABILITIES     6,881,115     6,702,742  
   
 
 
Minority interest in consolidated real estate partnerships     78,113     75,535  
Minority interest in Aimco Operating Partnership     316,906     374,937  

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 
  Class A Common Stock     941     938  
  Additional paid-in capital     3,066,172     3,050,057  
  Perpetual preferred stock     555,250     552,520  
  Convertible preferred stock     299,992     392,492  
  Distributions in excess of earnings     (959,975 )   (776,577 )
  Unvested restricted stock     (11,744 )   (7,079 )
  Notes due on common stock purchases     (43,841 )   (48,964 )
   
 
 
      2,906,795     3,163,387  
   
 
 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 10,182,929   $ 10,316,601  
   
 
 

GAAP Statements of Cash Flows

Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

 
  Nine Months Ended
September 30, 2003

  Nine Months Ended
September 30, 2002

 
CASH FLOWS FROM OPERATING ACTIVITIES:              
Net Income   $ 121,688   $ 162,437  
Total adjustments to reconcile net income     259,449     241,806  
   
 
 
  Net cash provided by operating activities     381,137     404,243  
   
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:              
Purchase of and additions to real estate     (117,907 )   (519,143 )
Initial capital expenditures     (18,594 )   (23,165 )
Capital Replacements     (70,620 )   (60,726 )
Capital Enhancements     (2,765 )   (5,632 )
Redevelopment additions to real estate     (79,785 )   (118,505 )
Proceeds from dispositions of real estate     479,220     194,441  
Disposition capital expenditures     (15,991 )   -  
Purchase of general and limited partnership interests and other assets     (32,457 )   (52,347 )
Originations of notes receivable from unconsolidated real estate partnerships     (47,833 )   (74,547 )
Proceeds from repayment of notes receivable     40,894     53,017  
Cash paid in connection with merger/acquisition related costs     (13,983 )   (249,220 )
Distributions received from investments in unconsolidated real estate partnerships     51,106     15,662  
Other investing activities     8,326     30,256  
   
 
 
  Net cash provided by (used in) investing activities     179,611     (809,909 )
   
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:              
Proceeds from secured notes payable borrowings     351,964     651,824  
Principal repayments on secured notes payable     (553,020 )   (412,196 )
Proceeds from tax-exempt bond financing     14,505     287,551  
Principal repayments on tax-exempt bond financing     (62,774 )   (395,271 )
Net borrowings on term loans and revolving credit facility     108,376     206,492  
Redemption of preferred stock     (239,770 )   -  
Proceeds from issuance of mandatorily redeemable preferred securities     97,250     -  
Proceeds from issuance of Class A common and preferred stock, exercise of options/warrants     145,248     425,730  
Payment of Class A common stock dividends     (228,933 )   (202,706 )
Payment of preferred stock dividends     (68,509 )   (72,499 )
Payment of distributions to minority interest     (87,161 )   (72,236 )
Other financing activities     (7,394 )   (3,548 )
   
 
 
  Net cash (used in) provided by financing activities     (530,218 )   413,141  
   
 
 
NET INCREASE IN CASH AND CASH EQUIVALENTS     30,530     7,475  
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     98,567     75,456  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS INCLUDED WITHIN ASSETS HELD FOR SALE FROM BEGINNING TO END OF PERIOD     (2,417 )   2,960  
   
 
 
CASH AND CASH EQUIVALENTS AT END OF PERIOD   $ 126,680   $ 85,891  
   
 
 

GLOSSARY

GLOSSARY OF NON-GAAP FINANCIAL AND OPERATING MEASURES: Financial and operating measures found in the Earnings Release and Supplemental Information include certain financial measures used by Aimco management that are not calculated in accordance with generally accepted accounting principles, or GAAP. These measures are defined below and, where appropriate, reconciled on the accompanying Supplemental Schedules to the most comparable GAAP measures.

ADJUSTED FUNDS FROM OPERATIONS (AFFO): AFFO is FFO (diluted) less both Capital Replacement expenditures and Capital Enhancement expenditures, plus non-cash charges for redemption related preferred stock issuance costs and impairment losses. Similar to FFO, AFFO captures real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. AFFO also reflects that Capital Replacements are necessary to maintain, and Capital Enhancements are made to improve, the associated real estate assets.

Please see Supplemental Schedules I and II for AFFO data reconciled to Net Income as determined in accordance with GAAP.

CAPITAL REPLACEMENTS AND CAPITAL ENHANCEMENTS (CR AND CE): CR and CE are components of total capital expenditures. CR expenditures are required to maintain Aimco's assets and CE expenditures are made to improve Aimco's assets by adding a new feature or revenue source.

CR and CE spending are components of capital expenditures denoted as line items in the GAAP Statement of Cash Flows.

DISPOSITION CAPITAL EXPENDITURES: Disposition Capital Expenditures are capital expenditures made on properties sold, held for sale or identified as to be sold within one year. Disposition capital expenditures are incurred to support the sale of these properties and are not part of Aimco's ongoing Capital Replacements. In the third quarter 2003, Aimco included capital expenditures made for affordable properties that are expected to be sold upon completion of regulatory requirements. These expenditures are included in this classification as Aimco is limited in the amount of proceeds that it can receive in distribution from the properties' operations, and amounts in excess must be reinvested in the property or forfeited to the applicable government agency. Aimco expects to recover these expenditures upon sale of the property. Prior to establishing this category of capital expenditures, these expenditures were accounted for as Capital Replacements and deducted in calculating

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AFFO. Aimco will review this allocation each quarter and will re-allocate to Capital Replacements any items for those properties not sold or no longer identified as to be sold.

FREE CASH FLOW (FCF): FCF, as defined by Aimco, is net operating income from real estate minus Capital Replacement spending required to maintain, and Capital Enhancement spending made to improve, the related assets. FCF also includes cash flows generated from the Investment Management Business, Interest and Other Income, General and Administrative expenses, Provision for losses on notes receivable and other expenses incurred by Aimco. FCF measures profitability of operations and is prior to the cost of capital. Because Aimco has substantial unconsolidated real estate interests, it is useful for management and investors to understand, in addition to consolidated cash flows, cash flows as related to Aimco's unconsolidated real estate holdings.

Please see Supplemental Schedule II for FCF data reconciled to Net Income as determined in accordance with GAAP.

FUNDS FROM OPERATIONS (FFO): FFO is a commonly used measure of REIT performance defined by the National Association of Real Estate Investment Trusts, or NAREIT, as net income (loss), computed in accordance with GAAP, excluding gains and losses from extraordinary items, dispositions of depreciable real estate property, dispositions of real estate from discontinued operations, net of related income taxes, plus real estate related depreciation and amortization (excluding amortization of financing costs), including depreciation for unconsolidated real estate partnerships, joint ventures and discontinued operations. Aimco calculates FFO based on the NAREIT definition, as further adjusted for the minority interest in Aimco's operating partnership (AIMCO Properties, L.P.), plus amortization of intangibles and distributions to minority partners in excess of income. Aimco calculates FFO (diluted) by subtracting redemption related preferred stock issuance costs and dividends/distributions on preferred stock/partnership units (net of preferred dividends/distributions relating to convertible securities the conversion of which is dilutive to FFO) and adding back the interest expense on mandatorily redeemable convertible preferred securities the conversion of which is dilutive to FFO. FFO is helpful to investors in understanding Aimco's performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. There can be no assurance that Aimco's method for computing FFO is comparable with that of other real estate investment trusts.

Please see Supplemental Schedules I and II for FFO data reconciled to Net Income as determined in accordance with GAAP.

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NET RENTAL INCOME (NRI): NRI is an operating measure calculated as the product of the number of rental units in Aimco's "Same Store" portfolio multiplied by occupancy multiplied by average effective rent per unit. NRI does not reflect income from all sources and does not reflect operating expenses.

SAME STORE: Same Store is used commonly to describe conventional properties in which Aimco's ownership exceeds 10% and that have reached a stabilized level of occupancy during both the current and comparable prior year period. These results measure operating performance without variations caused by investment transactions.

Aimco provides data for consolidated Same Store properties as well as its proportionate share of consolidated and unconsolidated Same Store properties. To ensure comparability, the information for all periods shown is based on current period ownership.

Please see Supplemental Schedules VIII through XIII for Same Store data reconciled to Income from Property Operations as determined in accordance with GAAP.

UNCONSOLIDATED BALANCE SHEET ITEMS: Unconsolidated balance sheet items such as Aimco's share of unconsolidated cash, unconsolidated restricted cash, unconsolidated accounts receivable, unconsolidated current liabilities and unconsolidated debt are components of Balance Sheet line items on the GAAP Financial Statements that are useful in understanding Aimco's proportionate share of assets and liabilities, prior to consolidation in GAAP financial statements.

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Supplemental Schedule I

Funds From Operations and Adjusted Funds From Operations
(in thousands, except per share data)
(unaudited)

 
  For the Three Months
Ended September 30,

  For the Nine Months
Ended September 30,

 
 
  2003
  2002
  2003
  2002
 
Operating Activities:                          

Net Income

 

$

40,635

 

$

46,345

 

$

121,688

 

$

162,437

 
Minority interest in Aimco Operating Partnership     3,665     6,979     13,444     23,644  
Real estate depreciation, net of minority interest     75,294     59,519     223,733     172,225  
Real estate depreciation related to unconsolidated entities     6,289     8,815     19,331     26,022  
(Gain) loss on dispositions of real estate     (1,462 )   4,307     (2,738 )   (4,467 )
Distributions to minority partners in excess of income     11,861     4,302     21,503     15,274  
Amortization of intangibles     1,276     1,154     4,716     3,194  
Discontinued operations:                          
  (Gain) loss on dispositions of real estate, net of minority interest     (22,908 )   129     (66,930 )   10,432  
  Real estate depreciation, net of minority interest     1,208     5,530     9,712     18,642  
  Distributions to minority partners in excess of income     (3,613 )   -     (4,650 )   1,321  
  Income tax arising from disposals     806     (127 )   5,112     552  
   
 
 
 
 
Funds From Operations     113,051     136,953     344,921     429,276  
Preferred stock dividends and distributions     (21,445 )   (15,397 )   (63,459 )   (40,376 )
Redemption related preferred stock issuance costs     (5,490 )   -     (7,645 )   -  
Interest expense on mandatorily redeemable convertible preferred securities     247     365     741     882  
   
 
 
 
 
Diluted Funds From Operations   $ 86,363   $ 121,921   $ 274,558   $ 389,782  

Capital Replacements

 

 

(20,957

)

 

(24,478

)

 

(67,929

)

 

(61,001

)
Capital Enhancements [a]     (213 )   (1,208 )   (2,377 )   (6,150 )
Impairment loss on investment in unconsolidated real estate partnerships     -     3,564     -     3,816  
Impairment loss on real estate assets sold or held for sale, net of minority interest     619     -     8,560     210  
Redemption related preferred stock issuance costs     5,490     -     7,645     -  
Non-dilutive preferred stock dividends and distributions     -     (7,356 )   (4,065 )   (17,973 )
   
 
 
 
 
Diluted Adjusted Funds From Operations   $ 71,302   $ 92,443   $ 216,392   $ 308,684  
   
 
 
 
 
Funds From Operations:                          
Weighted average common shares, common share equivalents and Operating Partnership units outstanding:                          
    Common shares and equivalents     96,044     101,760     97,162     97,393  
    Operating Partnership units and equivalents     11,845     12,758     11,955     12,463  
   
 
 
 
 
      107,889     114,518     109,117     109,856  
   
 
 
 
 
Adjusted Funds From Operations:                          
Weighted average common shares, common share equivalents and Operating Partnership units outstanding:                          
    Common shares and equivalents     96,044     95,374     95,768     92,296  
    Operating Partnership units and equivalents     11,845     12,758     11,955     12,463  
   
 
 
 
 
      107,889     108,132     107,723     104,759  
   
 
 
 
 
Per Share:                          
Diluted Funds From Operations   $ 0.80   $ 1.06   $ 2.52   $ 3.55  
Diluted Funds From Operations (excluding impairment losses and redemption related preferred stock issuance costs) [b]   $ 0.86   $ 1.09   $ 2.68   $ 3.59  
Diluted Adjusted Funds From Operations   $ 0.66   $ 0.85   $ 2.01   $ 2.95  
Dividends Declared   $ 0.60   $ 0.82   $ 2.24   $ 2.46  

[a]    In second quarter 2002, Aimco began deducting, on a prospective basis, Capital Enhancements, as well as Capital Replacements, to calculate Free Cash Flow and Adjusted Funds From Operations.

[b]    On October 1, 2003, NAREIT clarified its definition of Funds From Operations (FFO) to include impairment losses, which previously had been added back to calculate FFO. Although Aimco's presentation conforms with the NAREIT definition, Aimco considers such approach to be inconsistent with the treatment of gains on dispositions of real estate, which are not included in the calculation of FFO. In the three months ended September 30, 2003, and effective for all prior periods presented, Aimco no longer adds back impairment losses when computing FFO in accordance with this clarification. As a result, FFO for the three months ended September 30, 2003 includes impairment losses of $0.6 million, and for the nine months ended September 30, 2003, includes an adjustment of $7.9 million to reflect this change. FFO for the three and nine months ended September 30, 2002 includes an adjustment of $3.6 million and $4.0 million, respectively, to reflect this change. As a result of the Securities and Exchange Commission's interpretation of Emerging Issues Task Force Topic D-42, Aimco has complied with the clarification of including redemption related preferred stock issuance costs in the three months ended September 30, 2003, and effective for all prior periods presented, in FFO. Therefore, FFO for the three months ended September 30, 2003 includes issuance costs of $5.5 million and FFO for the nine months ended September 30, 2003 includes an adjustment of $2.2 million to reflect this change.


Supplemental Schedule II

Free Cash Flow from Business Segments
For the Three Months Ended September 30, 2003
(in thousands, except unit and monthly rent data)
(unaudited)

 
  Consolidated
  Unconsolidated
  Total
  %
 
Real Estate                        
 
Conventional Apartments

 

 

 

 

 

 

 

 

 

 

 

 
    Average monthly rent greater than $1,200 per unit (11,429 equivalent units)   $ 26,958   $ 727   $ 27,685   15.1 %
    Average monthly rent $1,000 to $1,200 per unit (10,167 equivalent units)     20,446     448     20,894   11.4 %
    Average monthly rent $900 to $1,000 per unit (14,439 equivalent units)     26,871     461     27,332   15.0 %
    Average monthly rent $800 to $900 per unit (6,636 equivalent units)     12,105     339     12,444   6.8 %
    Average monthly rent $700 to $800 per unit (15,712 equivalent units)     20,474     610     21,084   11.5 %
    Average monthly rent $600 to $700 per unit (33,582 equivalent units)     33,684     952     34,636   19.0 %
    Average monthly rent $500 to $600 per unit (37,159 equivalent units)     27,055     1,173     28,228   15.4 %
    Average monthly rent less than $500 per unit (15,134 equivalent units)     6,636     412     7,048   3.9 %
   
 
 
 
 
      Subtotal conventional real estate contribution to Free Cash Flow (144,258 equivalent units)     174,229     5,122     179,351   98.1 %
 
Affordable Apartments (22,538 equivalent units)

 

 

13,857

 

 

5,662

 

 

19,519

 

10.7

%
  College housing (2,403 equivalent units)     1,827     35     1,862   1.0 %
  Other real estate     736     1     737   0.4 %
  Minority interest     (17,737 )   -     (17,737 ) -9.7 %
   
 
 
 
 
    Total real estate contribution to Free Cash Flow     172,912     10,820     183,732   100.5 %

Investment Management Business

 

 

 

 

 

 

 

 

 

 

 

 
 
Management contracts (property, risk and asset management)

 

 

 

 

 

 

 

 

 

 

 

 
    Controlled properties     690     -     690   0.4 %
    Third party with terms in excess of one year     466     -     466   0.3 %
    Third party cancelable in 30 days     299     -     299   0.2 %
  Insurance claim losses     (793 )   -     (793 ) -0.5 %
   
 
 
 
 
      Investment management business contribution to Free Cash Flow before activity based fees     662     -     662   0.4 %
  Activity based fees     868     -     868   0.5 %
   
 
 
 
 
    Total investment management business contribution to Free Cash Flow     1,530     -     1,530   0.9 %

Interest and other income

 

 

 

 

 

 

 

 

 

 

 

 
  General partner loan interest     3,507     -     3,507   1.9 %
  Money market and interest bearing accounts     1,587     -     1,587   0.9 %
  Transactional income     46     -     46   0.0 %
   
 
 
 
 
    Total interest and other income contribution to Free Cash Flow     5,140     -     5,140   2.8 %

General and administrative expenses

 

 

(7,638

)

 

-

 

 

(7,638

)

-4.2

%
   
 
 
 
 
Free Cash Flow   $ 171,944   $ 10,820   $ 182,764   100.0 %
   
 
 
 
 

Supplemental Schedule II (continued)

Free Cash Flow from Business Segments
For the Three Months Ended September 30, 2003
(in thousands, except per share/unit data)
(unaudited)

 
  Basic
  Diluted
 
 
  Consolidated
  Unconsolidated
  Total
  Total
 
Free Cash Flow   $ 171,944   $ 10,820   $ 182,764   $ 182,764  

Cost of Senior Capital

 

 

 

 

 

 

 

 

 

 

 

 

 
  Interest expense:                          
      Secured debt:                          
        Long-term, fixed rate     (80,054 )   (7,132 )   (87,186 )   (87,186 )
        Long-term, floating rate     (8,577 )   (73 )   (8,650 )   (8,650 )
        Short-term     (2,845 )   (11 )   (2,856 )   (2,856 )
      Lines of credit and other unsecured debt     (6,168 )   -     (6,168 )   (6,168 )
      Interest expense on mandatorily redeemable preferred securities     (1,288 )   -     (1,288 )   (1,288 )
      Interest expense on mandatorily redeemable convertible preferred securities     (247 )   -     (247 )   -  
      Interest capitalized     3,940     102     4,042     4,042  
   
 
 
 
 
        Total interest expense before minority interest     (95,239 )   (7,114 )   (102,353 )   (102,106 )
      Minority interest share of interest expense     8,494     -     8,494     8,494  
   
 
 
 
 
        Total interest expense after minority interest     (86,745 )   (7,114 )   (93,859 )   (93,612 )
 
Distributions on preferred OP units

 

 

(2,102

)

 

-

 

 

(2,102

)

 

-

 
  Dividends on preferred stock     (26,930 )   -     (26,930 )   (26,935 )
   
 
 
 
 
    Total distributions/dividends on preferred OP units and stock     (29,032 )   -     (29,032 )   (26,935 )
 
Capital Replacements/Enhancements

 

 

20,354

 

 

816

 

 

21,170

 

 

21,170

 
  Amortization of intangibles     (1,276 )   -     (1,276 )   (1,276 )
  Gain on dispositions of real estate     1,462     -     1,462     1,462  
  Income from discontinued operations     27,483     -     27,483     27,483  
  Real estate depreciation, net of minority interest     (75,294 )   (6,289 )   (81,583 )   (81,583 )
  Distributions to minority partners in excess of income     (11,861 )   -     (11,861 )   (11,861 )
  Interest expense on mandatorily redeemable convertible preferred securities     -     -     -     (247 )
  Preferred equity dividends     -     -     -     (2,097 )
   
 
 
 
 
    Net income (loss) attributable to common OP unitholders and stockholders     17,035     (1,767 )   15,268     15,268  
 
Gain on dispositions of real estate

 

 

(1,462

)

 

-

 

 

(1,462

)

 

(1,462

)
  Discontinued operations:                          
    Gain on dispositions of real estate, net of minority interest     (22,908 )   -     (22,908 )   (22,908 )
    Real estate depreciation, net of minority interest     1,208     -     1,208     1,208  
    Distributions to minority partners in excess of income     (3,613 )   -     (3,613 )   (3,613 )
    Income tax arising from disposals     806     -     806     806  
  Real estate depreciation, net of minority interest     75,294     6,289     81,583     81,583  
  Distributions to minority partners in excess of income     11,861     -     11,861     11,861  
  Amortization of intangibles     1,276     -     1,276     1,276  
  Interest expense on mandatorily redeemable convertible preferred securities     -     -     -     247  
  Preferred equity dividends     -     -     -     2,097  
   
 
 
 
 
    Funds From Operations attributable to common OP unitholders and stockholders     79,497     4,522     84,019     86,363  
 
Capital Replacements

 

 

(20,141

)

 

(816

)

 

(20,957

)

 

(20,957

)
  Capital Enhancements     (213 )   -     (213 )   (213 )
  Impairment loss on real estate assets sold or held for sale, net of minority interest     619     -     619     619  
  Redemption related preferred stock issuance costs     5,490     -     5,490     5,490  
   
 
 
 
 
    Adjusted Funds From Operations attributable to common OP unitholders and stockholders   $ 65,252   $ 3,706   $ 68,958   $ 71,302  
   
 
 
 
 

 

 

Earnings


 

Shares/Units


 

Earnings
Per Share/Unit


 

 


 
  Net Income                          
    Basic     15,268     104,684   $ 0.15        
    Diluted     15,268     104,894   $ 0.15        
  FFO                          
    Basic     84,019     104,684              
    Diluted     86,363     107,889              
  AFFO                          
    Basic     68,958     104,684              
    Diluted     71,302     107,889              

 
  For the Three Months Ended September 30, 2003
 
 
  FCF
  FFO
  AFFO
 
Amount per Free Cash Flow Schedule   $ 182,764   $ 84,019   $ 68,958  
Total interest expense after minority interest     (93,859 )   -     -  
Distributions on preferred OP units     -     2,102     2,102  
Dividends on preferred stock     -     26,930     26,930  
Redemption related preferred stock issuance costs     -     -     (5,490 )
Real estate depreciation, net of minority interest     (81,583 )   (81,583 )   (81,583 )
Gain on dispositions of real estate     1,462     1,462     1,462  
Discontinued operations:                    
  Income from operations     27,483     -     -  
  Real estate depreciation, net of minority interest     -     (1,208 )   (1,208 )
  Gain on dispositions of real estate, net of minority interest     -     22,908     22,908  
  Impairment loss on real estate assets sold or held for sale, net of minority interest     -     -     (619 )
  Distributions to minority partners in excess of income     -     3,613     3,613  
  Income tax arising from disposals     -     (806 )   (806 )
Distributions to minority partners in excess of income     (11,861 )   (11,861 )   (11,861 )
Capital Replacements     20,957     -     20,957  
Capital Enhancements     213     -     213  
Amortization of intangibles     (1,276 )   (1,276 )   (1,276 )
Minority interest in Aimco Operating Partnership     (3,665 )   (3,665 )   (3,665 )
   
 
 
 
Net income   $ 40,635   $ 40,635   $ 40,635  
   
 
 
 

Supplemental Schedule III

Free Cash Flow from Business Segments and Reconciliation to Income from Property Operations
(in thousands)
(unaudited)

 
   
  See Supplemental Schedule II
   
 
 
  Equivalent
Units

  Total FCF
  CR and CE
Expenditures

  FCF before
CR and CE

 
Real Estate                        
 
Conventional : with average monthly rent

 

 

 

 

 

 

 

 

 

 

 

 
    Greater than $1,200 per unit   11,429   $ 27,685   $ 1,703   $ 29,388  
    $1,000 to $1,200 per unit   10,167     20,894     1,467     22,361  
    $900 to $1000 per unit   14,439     27,332     2,064     29,396  
    $800 to $900 per unit   6,636     12,444     898     13,342  
    $700 to $800 per unit   15,712     21,084     1,376     22,460  
    $600 to $700 per unit   33,582     34,636     4,014     38,650  
    $500 to $600 per unit   37,159     28,228     5,083     33,311  
    Less than $500 per unit   15,134     7,048     1,699     8,747  
   
 
 
 
 
      Subtotal conventional real estate contribution to Free Cash Flow   144,258     179,351     18,304     197,655  
 
Affordable

 

22,538

 

 

19,519

 

 

2,574

 

 

22,093

 
  College housing   2,403     1,862     193     2,055  
  Other real estate         737     99     836  
  Minority interest         (17,737 )         (17,737 )
       
 
 
 
    Total real estate contribution to free cash flow   169,199   $ 183,732   $ 21,170   $ 204,902  
       
 
 
 
      Add Minority interest                     17,737  
      Less unconsolidated contribution to free cash flow                     (10,820 )
      Less unconsolidated CR/CE spending                     (816 )
                   
 
        Income from property operations                   $ 211,003  
                   
 

Supplemental Schedule IV

Proportionate Income Statement Presentation (Including Proportionate Consolidated Income Statement)
For the Three Months Ended September 30, 2003
(in thousands, except per share data)
(unaudited)

 
   
   
   
   
  Reconciliation to Free Cash Flow
From Business Segments [e]

 
 
   
  Proportionate
Share of
Unconsolidated
Partnerships [b]

   
  Proportionate
Consolidated
Income
Statement [d]

 
 
  Aimco
GAAP Income
Statement [a]

  Minority
Interest [c]

  Amortization
of
Intangibles

  Capital
Replacements/
Enhancements

  Free
Cash
Flow

 
RENTAL PROPERTY OPERATIONS:                                            
  Rental and other property revenues   $ 377,403   $ 27,672   $ (37,373 ) $ 367,702   $ -   $ -   $ 367,702  
  Property operating expenses     (166,400 )   (16,036 )   19,636     (162,800 )   -     (21,170 )   (183,970 )
   
 
 
 
 
 
 
 
    Income from property operations     211,003     11,636     (17,737 )   204,902     -     (21,170 )   183,732  

INVESTMENT MANAGEMENT BUSINESS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  Management fees and other income primarily from affiliates     14,930     -     -     14,930     -     -     14,930  
  Management and other expenses     (13,400 )   -     -     (13,400 )   -     -     (13,400 )
  Amortization of intangibles     (1,276 )   -     -     (1,276 )   1,276     -     -  
   
 
 
 
 
 
 
 
    Income from investment management business     254     -     -     254     1,276     -     1,530  

General and administrative expenses

 

 

(7,638

)

 

-

 

 

-

 

 

(7,638

)

 

-

 

 

-

 

 

(7,638

)

Depreciation of rental property

 

 

(82,840

)

 

(6,289

)

 

7,546

 

 

(81,583

)

 

-

 

 

21,170

 

 

(60,413

)
Interest expense     (95,239 )   (7,114 )   8,494     (93,859 )   -     -     (93,859 )
Interest and other income     5,140     -     -     5,140     -     -     5,140  
Equity in losses of unconsolidated real estate partnerships     (1,767 )   1,767     -     -     -     -     -  
Minority interest in consolidated real estate partnerships     (1,697 )   -     1,697     -     -     -     -  
Amortization of intangibles     -     -     -     -     (1,276 )   -     (1,276 )
   
 
 
 
 
 
 
 
Income from operations     27,216     -     -     27,216     -     -     27,216  

Gain on dispositions of real estate

 

 

1,462

 

 

-

 

 

-

 

 

1,462

 

 

-

 

 

-

 

 

1,462

 
Distributions to minority partners in excess of income     (11,861 )   -     -     (11,861 )   -     -     (11,861 )
   
 
 
 
 
 
 
 
Income before minority interest in Aimco Operating Partnership and discontinued operations     16,817     -     -     16,817     -     -     16,817  

Minority interest in Aimco Operating Partnership, preferred

 

 

(2,102

)

 

-

 

 

-

 

 

(2,102

)

 

-

 

 

-

 

 

-

 
Minority interest in Aimco Operating Partnership, common     (1,563 )   -     -     (1,563 )   -     -     -  
   
 
 
 
 
 
 
 
Income from continuing operations     13,152     -     -     13,152     -     -     16,817  

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  Net income from discontinued operations (including net gain on dispositions of $22,908 and tax of $806)     27,483     -     -     27,483     -     -     27,483  
   
 
 
 
 
 
 
 
Net income     40,635     -     -     40,635     -     -     44,300  
         
 
       
 
       
Net income attributable to preferred stockholders   $ 26,930               $ 26,930               $ 29,032  
   
             
             
 
Net income attributable to common stockholders   $ 13,705               $ 13,705               $ 15,268  
   
             
             
 

 
Basic earnings per common share   $ 0.15               $ 0.15               $ 0.15  
   
             
             
 
Diluted earnings per common share   $ 0.15               $ 0.15               $ 0.15  
   
             
             
 

Weighted average number of common shares outstanding

 

 

92,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Weighted average number of common shares and common share equivalents outstanding     93,049                                      

Dividends paid per common share

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
[a]
Aimco's consolidated statement of income on a GAAP basis
[b]
Aimco's proportionate share of unconsolidated real estate partnerships
[c]
Aimco's proportionate share of minority interest in consolidated real estate partnerships
[d]
Total of Aimco's proportionate share of unconsolidated real estate partnerships, minority interest share of consolidated real estate partnerships and consolidated operations
[e]
Reconciliation of the proportionate consolidated income statement to the Free Cash Flow from Business Segments (Supplemental Schedule II)

Supplemental Schedule V

Selected Statistical and Balance Sheet Information
As of September 30, 2003
(in thousands, except Other data)
(unaudited)

I.   Property Debt                    

 

 

A.

 

Property Debt Detail

 

 

 

 

 

 

 

 

 

 
           
Amount

  Weighted
Rate

       
        Consolidated                    
            Fixed   $ 4,687,509     6.94 %      
            Floating     1,069,286     2.59 %      
           
 
       
            Sub-Total Consolidated     5,756,795   (1)   6.13 %      
           
 
       
        Unconsolidated (Aimco's share)                    
            Fixed     353,866     6.80 %      
            Floating     19,768     3.45 %      
           
 
       
            Sub-Total Unconsolidated     373,634   (2)   6.67 %      
           
 
       
        Total Mortgage Debt (Consolidated and Pro Rata Share Unconsolidated)     6,130,429     6.16 %      
           
 
       
            Minority Interest     (594,003 )(3)   6.53 %      
           
             
        Aimco's Share of Mortgage Debt   $ 5,536,426     6.12 %      
           
 
       
II.   Asset and Liability Detail                    
    A.   Assets                    
        Unconsolidated cash   $ 11,458   (2)            
        Unconsolidated restricted cash     36,607   (2)            
        Unconsolidated accounts receivable     969   (2)            
        Unconsolidated other assets     8,262   (2)            
        Minority interest share of cash/restricted cash     30,731   (3)            
        Minority interest share of notes receivable     63,944   (3)            
        Goodwill     101,176   (4)            
        Land held for future development     10,000   (5)            
        Construction in progress     184,767   (6)            

 

 

B.

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 
        Unconsolidated current liabilities     (79,226 )(2)            

III.

 

Acquisitions for the Quarter Ended September 30, 2003:

 

 

 

 

 

 

 

 

 

 
        Lincoln Place   $ 63,000              
        New York Property Acquisition     37,600              
        Limited Partner Equity Interests     400              

IV.

 

Common Shares Outstanding as of September 30, 2003:

 

 

 

 

 

 

 

 

 

 
        Class A Common Stock     94,098              
        Common OP and other units     11,791              
           
             
              105,889              
           
             
V.   Preferred Securities:                    
           
Coupon

 
Amount

  Shares/Units
Outstanding

  Common Share
Equivalents

        Perpetual:                    
        Class D     8.75%   $ 67,500   2,700,000   -
        Class G     9.375%     101,250   4,050,000   -
        Class Q     10.10%     63,250   2,530,000   -
        Class R     10.00%     173,500   6,940,000   -
        Class T     8.00%     150,000   6,000,000   -
                 
 
 
            Total perpetual         $ 555,500   22,220,000   -
                 
 
 
        Convertible:                    
        Class N     9.00%     100,000   4,000,000   1,904,762
        Class O     9.00%     100,000   1,904,762   1,904,762
        Class P     9.00%     99,992   3,999,662   1,785,563
                 
 
 
                    299,992   9,904,424   5,595,087

 

 

 

 

Preferred OP units

 

 

8.76%

 

 

91,346

 

3,342,633

 

2,457,913
                 
 
 
            Total convertible         $ 391,338   13,247,057   8,053,000
                 
 
 
        Mandatorily Redeemable Preferred Securities:                    
        Class S mandatorily redeemable preferred securities     Libor + 2.75%     98,000   4,000,000   -
        Convertible debt securities     6.50%     15,169   303,385   305,782
                 
 
 
            Total mandatorily redeemable preferred securities         $ 113,169   4,303,385   305,782
                 
 
 
        Total preferred securities         $ 1,060,007   39,770,442   8,358,782
                 
 
 
VI.   Other Data:                    
            3Q03
  3Q02
       
        Conventional same store:                    
            Weighted average physical occupancy     93.0 %   93.5 %      
            Average monthly rent per occupied unit   $ 702   $ 712        

 

 

 

 

Conventional total portfolio:

 

 

 

 

 

 

 

 

 

 
            Weighted average physical occupancy     91.3 %   91.0 %      
            Average monthly rent per occupied unit   $ 727   $ 728        


Notes:

(1)
Includes $49,566 of liabilities related to assets held for sale
(2)
These amounts are included in Investment in unconsolidated real estate partnerships on the GAAP Balance Sheet
(3)
These amounts are included in Minority interest in consolidated real estate partnerships on the GAAP Balance Sheet
Minority interest share of mortgage debt includes $3,388 of minority interest related to liabilities related to assets held for sale.
(4)
This amount is included in Other assets on the GAAP Balance Sheet
(5)
This amount is included in Land on the GAAP Balance Sheet
(6)
This amount is included in Buildings and improvements on the GAAP Balance Sheet

Supplemental Schedule VI

Capital Expenditures
As of September 30, 2003
(in thousands)
(unaudited)

For the nine months ended September 30, 2003, Aimco spent a total of $67.9 million and $2.4 million, respectively, for Capital Replacements (expenditures required to maintain the related asset) and Capital Enhancements (expenditures that add a new feature or revenue source at a property). These amounts represent Aimco's share of the total spending on both consolidated and unconsolidated partnerships.

The table below details Aimco's actual spending based on a per unit and total dollar basis (based on approximately 157,000 units) for the nine months ended September 30, 2003:

 
  Capital
Replacements
Actual Cost
Per Unit

  Capital
Enhancements
Actual Cost
Per Unit

  Total CR/CE
Actual Cost
Per Unit

  Capital
Replacements
Actual Cost
(in thousands)

  Capital
Enhancements
Actual Cost
(in thousands)

  Total CR/CE
Actual Cost
(in thousands)

 
 
 
 
 
Carpets   $ 92   $ -   $ 92   $ 14,356   $ 11   $ 14,367  
Flooring     23     -     23     3,650     -     3,650  
Appliances     27     1     28     4,161     151     4,312  
Blinds/shades     4     -     4     658     -     658  
Furnace/air     28     -     28     4,328     11     4,339  
Hot Water Heaters     6     -     6     993     -     993  
Kitchen/bath     9     -     9     1,340     3     1,343  
Exterior painting     20     -     20     3,213     9     3,222  
Landscaping     16     1     17     2,550     144     2,694  
Pool/exercise facilities     13     -     13     2,048     50     2,098  
Computers, miscellaneous     19     3     22     3,038     370     3,408  
Roofs     13     -     13     1,964     2     1,966  
Parking lot     9     -     9     1,381     6     1,387  
Building (electrical,elevator, plumbing)     55     -     55     8,643     -     8,643  
Submetering     -     7     7     -     1,109     1,109  
Capitalized payroll and other indirect costs     100     3     103     15,606     511     16,117  
   
 
 
Total Aimco's share   $ 434   $ 15   $ 449   $ 67,929   $ 2,377   $ 70,306  
   
 
 

Plus minority partners' share of consolidated spending

 

 

 

 

 

 

 

 

 

 

 

7,832

 

 

425

 

 

8,257

 
Less Aimco's share of unconsolidated spending                       (5,141 )   (37 )   (5,178 )
                     
 
Total spending per Consolidated Statement of Cash Flows                     $ 70,620   $ 2,765   $ 73,385  
                     
 

For the nine months ended September 30, 2003, Aimco spent a total of $18.6 million for Initial Capital Expenditures or "ICE", which are expenditures at a property that have been identified at the time the property is acquired, as expenditures to be incurred within a specified period of time of the acquisition, typically one year.
For the nine months ended September 30, 2003, Aimco spent $16.0 million for Disposition Capital Expenditures, which reports those capital expenditures made on properties sold, held for sale, or identified as to be sold within one year. In third quarter 2003, Aimco began to include in Disposition Capital Expenditures capital expenditures on certain of Aimco's affordable properties that are expected to be sold upon completion of regulatory requirements. Although the sales will not necessarily occur within a year period, Aimco believes that capital expenditures on such properties are appropriately included in Disposition Capital Expenditures because of the regulatory framework under which these properties are financed or operated. Specifically, Aimco is limited in the amount of proceeds that it is permitted to receive in distribution from the properties' operations. Amounts in excess of that limitation must be reinvested in the property or forfeited to the applicable government agency. Aimco typically elects to spend amounts in excess of the distribution limit on property improvements, and Aimco expects that upon a sale of the property that the expenditures will be recovered.
For the nine months ended September 30, 2003, Aimco spent a total of $66.3 million for redevelopment, which are expenditures that substantially upgrade the related property.

Aimco's share of the total spending on both consolidated and unconsolidated partnerships are as follows (in millions):

 
  Nine Months Ended September 30, 2003
 
 
  ICE
  Disposition
Capital Expenditures

  Redevelopment
  Totals
 
Conventional Assets   $ 10.4   $ 11.4   $ 59.7   $ 81.5  
Affordable Assets     8.2     4.6     6.6     19.4  
   
 
Total Aimco's share   $ 18.6   $ 16.0   $ 66.3   $ 100.9  
   
 

Plus minority partners' share of consolidated spending

 

 

0.2

 

 

2.0

 

 

19.8

 

 

22.0

 
Less Aimco's share of unconsolidated spending     (0.2 )   (2.0 )   (6.3 )   (8.5 )
   
 
Total spending per Consolidated Statement of Cash Flows   $ 18.6   $ 16.0   $ 79.8   $ 114.4  
   
 

The expenditures were funded by net cash provided by operating activities, working capital reserves and borrowings under Aimco's credit facility.


Supplemental Schedule VII

Apartment Investment and Management Company

Summary of 2003 Redevelopment Activity
As of September 30, 2003
(in millions, except unit data)
(values are not adjusted for Aimco's ownership)
(unaudited)

 
   
   
   
   
 
 
 
 
   
   
   
   
  Cost in Millions
  Redevelopment Timing
  Number of Units
 
   
  Ownership
%

  Number
of Units

  Notes
  Total
Spending

  Spent
to Date

  Acquisition (1)
  Start
  Complete
  Stabilization
  Completed
  Leased
  Out of
Service

Flamingo South Beach   Miami Beach, FL   77.0 % 1,685       $ 268.6   $ 259.6   Q3 1997   Q3 1997   Q4 2003   Q3 2004   1,298   942   387

Reflections

 

Indianapolis, IN

 

51.6

%

582

 

 

 

$

17.5

 

$

16.1

 

Q4 1998

 

Q2 2001

 

Q4 2003

 

Q4 2003

 

582

 

467

 

0

Meadow Creek

 

Boulder, CO

 

100.0

%

332

 

 

 

$

15.7

 

$

15.7

 

Q2 1985

 

Q3 1999

 

Q3 2002

 

Q3 2003

 

332

 

312

 

0

Glenbridge Manors

 

Cincinnati, OH

 

50.8

%

290

 

 

 

$

29.2

 

$

28.6

 

Q4 1998

 

Q3 2001

 

Q4 2003

 

Q4 2003

 

245

 

240

 

45

The Ashford

 

Atlanta, GA

 

100.0

%

221

 

 

 

$

20.0

 

$

18.4

 

Q4 1995

 

Q2 2001

 

Q2 2003

 

Q4 2003

 

221

 

187

 

0

Calhoun Beach Club

 

Minneapolis, MN

 

100.0

%

57

 

(2)

 

$

31.4

 

$

31.4

 

Q4 1998

 

Q4 2001

 

Q4 2002

 

Q3 2003

 

57

 

56

 

0

Plainview

 

Louisville,KY

 

42.2

%

157

 

(3)

 

$

5.8

 

$

5.3

 

Q4 1991

 

Q1 2003

 

Q3 2003

 

Q4 2003

 

157

 

111

 

0

Cherry Creek Gardens

 

Denver, CO

 

61.1

%

296

 

 

 

$

4.0

 

$

-

 

Q1 1996

 

Q3 2003

 

Q1 2005

 

Q1 2005

 

0

 

0

 

0

Westlake Arms

 

Indianapolis, IN

 

100.0

%

1,381

 

 

 

$

2.6

 

$

-

 

Q1 1995

 

Q3 2003

 

Q3 2004

 

Q3 2004

 

0

 

0

 

0

Chimney Hill

 

Marietta, GA

 

56.5

%

326

 

 

 

$

33.2

 

$

1.2

 

Q4 1994

 

Q3 2003

 

Q2 2005

 

Q2 2006

 

0

 

0

 

326
           
     
                 
    Total       5,327       $ 428.0   $ 376.3                   2,892   2,315   758
           
     
 
                 
 
 

Notes

1
-    Acquisition date denotes date Aimco acquired the property.
2
-    Property had 351 units before redevelopment, 76 of the units were redeveloped into 57 larger units and commercial space improvements made.
3
-    Property has 480 units with 157 units being redeveloped due to fire and mold issues.

Supplemental Schedule VIII

Income Statement Information
Q3 2003 compared to Q3 2002
(in thousands)
(unaudited)

 
  Three Months Ended
September 30, 2003

  Three Months Ended
September 30, 2002

  Change
Q3 2003 vs Q3 2002

  %
Change
Q3 2003 vs Q3 2002

 
Revenues:                        
  Consolidated same store properties   $ 286,420   $ 291,227   $ (4,807 ) -1.7 %
  Acquisition properties     16,700     4,924     11,776   239.2 %
  Newly consolidated properties     30,547         30,547    
  Affordable properties     27,252     27,879     (627 ) -2.2 %
  Redevelopment properties     11,652     8,093     3,559   44.0 %
  Other properties     4,832     3,606     1,226   34.0 %
   
 
 
 
 
    Total rental and other property revenues   $ 377,403   $ 335,729   $ 41,674   12.4 %
   
 
 
 
 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 119,303   $ 110,002   $ 9,301   8.5 %
  Acquisition properties     5,239     1,464     3,775   257.9 %
  Newly consolidated properties     14,284         14,284    
  Affordable properties     13,608     12,112     1,496   12.4 %
  Redevelopment properties     5,717     3,769     1,948   51.7 %
  Partnership expenses     751     3,217     (2,466 ) -76.7 %
  Property management expense     4,091     4,261     (170 ) -4.0 %
  Other properties     3,407     2,467     940   38.1 %
   
 
 
 
 
    Total property operating expense   $ 166,400   $ 137,292   $ 29,108   21.2 %
   
 
 
 
 

Net Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 167,117   $ 181,225   $ (14,108 ) -7.8 %
  Acquisition properties     11,461     3,460     8,001   231.2 %
  Newly consolidated properties     16,263         16,263    
  Affordable properties     13,644     15,767     (2,123 ) -13.5 %
  Redevelopment properties     5,935     4,324     1,611   37.3 %
  Partnership expenses     (751 )   (3,217 )   2,466   -76.7 %
  Property management expense     (4,091 )   (4,261 )   170   -4.0 %
  Other properties     1,425     1,139     286   25.1 %
   
 
 
 
 
    Total income from property operations   $ 211,003   $ 198,437   $ 12,566   6.3 %
   
 
 
 
 

Reconciliation of consolidated same store properties to Aimco's share of same store sales:

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 286,420   $ 291,227   $ (4,807 )    
  Plus: Newly consolidated properties     16,395         16,395      
  Less: Minority partners' share of consolidated same store     (30,143 )   (31,226 )   1,083      
  Plus: Aimco's share of unconsolidated same store     12,121     28,672     (16,551 )    
   
 
 
 
 
    Aimco's share of same store sales   $ 284,793   $ 288,673   $ (3,880 ) -1.3 %
   
 
 
 
 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 119,303   $ 110,002   $ 9,301      
  Plus: Newly consolidated properties     7,130         7,130      
  Less: Minority partners' share of consolidated same store     (12,637 )   (11,923 )   (714 )    
  Plus: Aimco's share of unconsolidated same store     5,050     11,734     (6,684 )    
   
 
 
 
 
    Aimco's share of same store sales   $ 118,846   $ 109,813   $ 9,033   8.2 %
   
 
 
 
 

Net Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 167,117   $ 181,225   $ (14,108 )    
  Plus: Newly consolidated properties     9,265         9,265      
  Less: Minority partners' share of consolidated same store     (17,506 )   (19,303 )   1,797      
  Plus: Aimco's share of unconsolidated same store     7,071     16,938     (9,867 )    
   
 
 
 
 
    Aimco's share of same store sales   $ 165,947   $ 178,860   $ (12,913 ) -7.2 %
   
 
 
 
 

DEFINITIONS:

Consolidated same store properties - consist of all conventional properties owned, stabilized and consolidated for at least one year as of the beginning of the most recent quarter and for the relevant comparable period.

Acquisition properties - consist of all consolidated properties owned less than one year as of the beginning of the most recent quarter.

Newly consolidated properties - consist of all properties consolidated for less than one year as of the beginning of the most recent quarter.

Affordable properties - consist of all affordable properties (which are properties that benefit from governmental programs designed to provide housing for people with low or moderate incomes) owned, stabilized and consolidated for at least one year as of the beginning of the most recent quarter.

Redevelopment properties - consist of all consolidated properties where a substantial number of available units have been vacated for major renovations and have not been stabilized for at least one year as of the beginning of the most recent quarter.

Other properties - consist of all consolidated properties that are not multifamily (such as commercial, college housing, etc).

Partnership expenses - consist of expenses incurred at the partnership level either directly or indirectly (such as partnership audit, tax and trustee expenses).

Property management expenses - consist of off-site expenses associated with the self-management of consolidated properties.


Supplemental Schedule IX

Same Store Sales
Third Quarter 2003 versus Third Quarter 2002
(unaudited) (in thousands, except site and unit data)

 
   
   
   
   
   
   
   
   
   
  Change Three Months Ended
September 30, 2003
Less September 30, 2002

 
 
   
   
   
  Three Months Ended
September 30, 2003

  Three Months Ended
September 30, 2002

 
 
   
   
   
  Revenue
  Expenses
  NOI
 
 
  Sites
  Units
  Owner%
  REV
  EXP
  NOI
  REV
  EXP
  NOI
  Amt
  %
  Amt
  %
  Amt
  %
 
 
 
 
 
 
 
 
Northeast                                                              
  Washington   28   12,458   79.94 % 29,037   9,413   19,624   28,860   8,951   19,909   177   0.6 % 462   5.2 % (285 ) -1.4 %
  Philadelphia   10   5,338   77.38 % 12,439   4,615   7,824   12,454   4,153   8,301   (15 ) -0.1 % 462   11.1 % (477 ) -5.7 %
  Baltimore   11   2,044   78.45 % 4,277   1,497   2,780   4,094   1,262   2,832   183   4.5 % 235   18.6 % (52 ) -1.8 %
  Dutchess County   1   835   100.00 % 2,392   691   1,701   2,243   717   1,526   149   6.6 % (26 ) -3.6 % 175   11.5 %
  Hartford   2   650   100.00 % 1,853   511   1,342   1,874   479   1,395   (21 ) -1.1 % 32   6.7 % (53 ) -3.8 %
  Other Markets   2   554   82.14 % 1,000   392   608   993   353   640   7   0.7 % 39   11.0 % (32 ) -5.0 %
  New England   1   412   56.71 % 753   220   533   787   226   561   (34 ) -4.3 % (6 ) -2.7 % (28 ) -5.0 %
   
 
    55   22,291   80.15 % 51,751   17,339   34,412   51,305   16,141   35,164   446   0.9 % 1,198   7.4 % (752 ) -2.1 %
Southeast                                                              
  Atlanta   21   5,931   81.39 % 8,986   4,487   4,499   9,077   3,921   5,156   (91 ) -1.0 % 566   14.4 % (657 ) -12.7 %
  Other Markets   33   6,865   75.27 % 8,215   3,915   4,300   8,395   3,637   4,758   (180 ) -2.1 % 278   7.6 % (458 ) -9.6 %
  Norfolk   13   3,865   85.13 % 7,679   2,513   5,166   7,238   2,380   4,858   441   6.1 % 133   5.6 % 308   6.3 %
  Nashville   11   3,752   79.35 % 5,554   2,244   3,310   5,510   2,084   3,426   44   0.8 % 160   7.7 % (116 ) -3.4 %
  Raleigh-Durham-Chapel Hill   11   3,022   74.44 % 3,819   1,765   2,054   4,027   1,524   2,503   (208 ) -5.2 % 241   15.8 % (449 ) -17.9 %
  Charlotte-Gastonia-Rock Hill   11   2,336   84.65 % 2,913   1,494   1,419   3,034   1,467   1,567   (121 ) -4.0 % 27   1.8 % (148 ) -9.4 %
  Richmond - Petersburg   7   1,513   75.34 % 2,472   862   1,610   2,514   751   1,763   (42 ) -1.7 % 111   14.8 % (153 ) -8.7 %
  Columbia   6   1,438   65.24 % 1,614   775   839   1,637   664   973   (23 ) -1.4 % 111   16.7 % (134 ) -13.8 %
  Charleston   3   680   85.54 % 1,136   446   690   1,069   366   703   67   6.3 % 80   21.9 % (13 ) -1.8 %
  Savannah   2   416   100.00 % 792   295   497   781   267   514   11   1.4 % 28   10.5 % (17 ) -3.3 %
   
 
    118   29,818   79.03 % 43,180   18,796   24,384   43,282   17,061   26,221   (102 ) -0.2 % 1,735   10.2 % (1,837 ) -7.0 %
Florida                                                              
  Orlando - Daytona   25   6,438   85.67 % 10,583   4,736   5,847   10,367   4,524   5,843   216   2.1 % 212   4.7 % 4   0.1 %
  Tampa-St. Petersburg   23   6,037   85.65 % 9,536   4,291   5,245   9,964   3,957   6,007   (428 ) -4.3 % 334   8.4 % (762 ) -12.7 %
  Miami   6   2,171   81.86 % 5,423   2,120   3,303   5,476   1,987   3,489   (53 ) -1.0 % 133   6.7 % (186 ) -5.3 %
  Jacksonville   7   2,766   79.01 % 4,422   1,839   2,583   4,428   1,714   2,714   (6 ) -0.1 % 125   7.3 % (131 ) -4.8 %
  West Palm Beach-Boca   6   1,727   100.00 % 4,061   1,454   2,607   4,097   1,511   2,586   (36 ) -0.9 % (57 ) -3.8 % 21   0.8 %
  FortLauderdale   4   1,122   88.71 % 2,474   1,045   1,429   2,356   921   1,435   118   5.0 % 124   13.5 % (6 ) -0.4 %
  Other Markets   2   456   70.29 % 590   202   388   578   197   381   12   2.1 % 5   2.5 % 7   1.8 %
   
 
    73   20,717   85.39 % 37,089   15,687   21,402   37,266   14,811   22,455   (177 ) -0.5 % 876   5.9 % (1,053 ) -4.7 %
Midwest                                                              
  Chicago   22   6,323   90.61 % 15,966   6,610   9,356   16,321   6,430   9,891   (355 ) -2.2 % 180   2.8 % (535 ) -5.4 %
  Indianapolis   33   10,039   86.40 % 13,496   7,389   6,107   13,996   6,149   7,847   (500 ) -3.6 % 1,240   20.2 % (1,740 ) -22.2 %
  Grand Rapids-Lansing   15   5,757   93.35 % 9,636   4,233   5,403   10,085   4,219   5,866   (449 ) -4.5 % 14   0.3 % (463 ) -7.9 %
  Cincinnati - Dayton   19   3,733   75.65 % 5,436   2,310   3,126   5,501   2,138   3,363   (65 ) -1.2 % 172   8.0 % (237 ) -7.0 %
  Fort Wayne   3   2,440   97.13 % 3,785   2,067   1,718   4,243   1,684   2,559   (458 ) -10.8 % 383   22.7 % (841 ) -32.9 %
  Other Markets   17   3,735   58.36 % 3,638   1,664   1,974   3,744   1,630   2,114   (106 ) -2.8 % 34   2.1 % (140 ) -6.6 %
  Detroit - Ann Arbor   7   2,074   66.43 % 2,772   1,325   1,447   2,963   1,166   1,797   (191 ) -6.4 % 159   13.6 % (350 ) -19.5 %
  Columbus   9   2,012   68.24 % 2,374   981   1,393   2,398   925   1,473   (24 ) -1.0 % 56   6.1 % (80 ) -5.4 %
  Minneapolis - St.Paul   4   1,098   64.91 % 1,432   743   689   1,469   622   847   (37 ) -2.5 % 121   19.5 % (158 ) -18.7 %
  Kansas City   5   1,222   58.58 % 1,365   583   782   1,395   584   811   (30 ) -2.2 % (1 ) -0.2 % (29 ) -3.6 %
   
 
    134   38,433   81.52 % 59,900   27,905   31,995   62,115   25,547   36,568   (2,215 ) -3.6 % 2,358   9.2 % (4,573 ) -12.5 %
Texas                                                              
  Houston - Galveston   37   9,723   91.25 % 14,747   7,602   7,145   15,730   7,038   8,692   (983 ) -6.2 % 564   8.0 % (1,547 ) -17.8 %
  Dallas-Fort Worth   30   7,437   73.88 % 9,123   4,831   4,292   9,518   4,953   4,565   (395 ) -4.2 % (122 ) -2.5 % (273 ) -6.0 %
  San Antonio   14   3,269   100.00 % 5,042   2,469   2,573   4,997   2,457   2,540   45   0.9 % 12   0.5 % 33   1.3 %
  Austin-San Marcos   11   2,417   92.08 % 3,930   2,189   1,741   4,242   2,188   2,054   (312 ) -7.4 % 1   0.0 % (313 ) -15.2 %
  Other Markets   8   1,747   71.69 % 1,860   898   962   1,822   805   1,017   38   2.1 % 93   11.6 % (55 ) -5.4 %
   
 
    100   24,593   85.85 % 34,702   17,989   16,713   36,309   17,441   18,868   (1,607 ) -4.4 % 548   3.1 % (2,155 ) -11.4 %
West                                                              
  Phoenix-Mesa   28   7,447   90.82 % 10,737   5,526   5,211   10,780   4,960   5,820   (43 ) -0.4 % 566   11.4 % (609 ) -10.5 %
  Denver - Front Range, CO   22   4,743   78.32 % 7,409   2,785   4,624   8,664   2,520   6,144   (1,255 ) -14.5 % 265   10.5 % (1,520 ) -24.7 %
  Salt Lake City-Ogden   6   2,115   75.02 % 2,813   960   1,853   2,571   918   1,653   242   9.4 % 42   4.6 % 200   12.1 %
  Las Vegas   4   1,253   86.62 % 1,837   858   979   1,861   715   1,146   (24 ) -1.3 % 143   20.0 % (167 ) -14.6 %
  Tucson   4   1,157   100.00 % 1,550   738   812   1,724   711   1,013   (174 ) -10.1 % 27   3.8 % (201 ) -19.8 %
  Other Markets   5   1,024   62.83 % 1,052   511   541   1,024   498   526   28   2.7 % 13   2.6 % 15   2.9 %
  Seattle   4   468   52.88 % 542   277   265   502   208   294   40   8.0 % 69   33.2 % (29 ) -9.9 %
   
 
    73   18,207   83.47 % 25,940   11,655   14,285   27,126   10,530   16,596   (1,186 ) -4.4 % 1,125   10.7 % (2,311 ) -13.9 %
California                                                              
  Los Angeles-Long Beach - Ventura   15   4,830   88.48 % 17,233   4,603   12,630   16,368   4,148   12,220   865   5.3 % 455   11.0 % 410   3.4 %
  San Diego   7   2,237   98.14 % 6,583   1,988   4,595   6,421   1,652   4,769   162   2.5 % 336   20.3 % (174 ) -3.6 %
  Orange County - Riverside   7   1,611   97.40 % 5,253   1,798   3,455   5,176   1,450   3,726   77   1.5 % 348   24.0 % (271 ) -7.3 %
  Bay Area   6   1,661   58.64 % 3,069   1,047   2,022   3,208   1,004   2,204   (139 ) -4.3 % 43   4.3 % (182 ) -8.3 %
  Sacramento   1   180   20.25 % 93   39   54   97   28   69   (4 ) -4.1 % 11   39.3 % (15 ) -21.7 %
   
 
    36   10,519   86.02 % 32,231   9,475   22,756   31,270   8,282   22,988   961   3.1 % 1,193   14.4 % (232 ) -1.0 %
   
 
  SAME STORE SALES TOTALS   589   164,578   82.52 % 284,793   118,846   165,947   288,673   109,813   178,860   (3,880 ) -1.3 % 9,033   8.2 % (12,913 ) -7.2 %
   
 
Plus: Minority share of consolidated same store sales               30,143   12,637   17,506   31,226   11,923   19,303                          
Less: Aimco's share of unconsolidated same store sales               (12,121 ) (5,050 ) (7,071 ) (28,672 ) (11,734 ) (16,938 )                        
Less: Newly consolidated               (16,395 ) (7,130 ) (9,265 ) -   -   -                          
               
 
                         
Consolidated same store sales               286,420   119,303   167,117   291,227   110,002   181,225                          
               
 
                         

Supplemental Schedule X

Income Statement Information
YTD 2003 compared to YTD 2002
(in thousands)
(unaudited)

 
  Nine Months Ended
September 30, 2003

  Nine Months Ended
September 30, 2002

  Change
2003 vs 2002

  %
Change
2003 vs 2002

 
Revenues:                        
  Consolidated same store properties   $ 778,905   $ 815,966   $ (37,061 ) -4.5 %
  Acquisition properties     165,918     91,232     74,686   81.9 %
  Newly consolidated properties     112,036     9,896     102,140   1032.1 %
  Affordable properties     13,113     13,039     74   0.6 %
  Redevelopment properties     28,490     20,082     8,408   41.9 %
  Other properties     12,574     10,783     1,791   16.6 %
   
 
 
 
 
    Total rental and other property revenues   $ 1,111,036   $ 960,998   $ 150,038   15.6 %
   
 
 
 
 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 320,903   $ 295,715   $ 25,188   8.5 %
  Acquisition properties     61,750     34,192     27,558   80.6 %
  Newly consolidated properties     54,393     4,932     49,461   1002.9 %
  Affordable properties     6,505     6,770     (265 ) -3.9 %
  Redevelopment properties     13,397     9,522     3,875   40.7 %
  Partnership expenses     5,986     8,653     (2,667 ) -30.8 %
  Property management expense     13,311     11,492     1,819   15.8 %
  Other properties     9,748     7,051     2,697   38.2 %
   
 
 
 
 
    Total property operating expense   $ 485,993   $ 378,327   $ 107,666   28.5 %
   
 
 
 
 

Net Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 458,002   $ 520,251   $ (62,249 ) -12.0 %
  Acquisition properties     104,168     57,040     47,128   82.6 %
  Newly consolidated properties     57,643     4,964     52,679   1061.2 %
  Affordable properties     6,608     6,269     339   5.4 %
  Redevelopment properties     15,093     10,560     4,533   42.9 %
  Partnership expenses     (5,986 )   (8,653 )   2,667   -30.8 %
  Property management expense     (13,311 )   (11,492 )   (1,819 ) 15.8 %
  Other properties     2,826     3,732     (906 ) -24.3 %
   
 
 
 
 
    Total income from property operations   $ 625,043   $ 582,671   $ 42,372   7.3 %
   
 
 
 
 

Reconciliation of consolidated same store properties to Aimco's share of same store sales:

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 778,905   $ 815,966   $ (37,061 )    
  Plus: Newly consolidated properties     59,547     12,638     46,909      
  Less: Minority partners' share of consolidated same store     (83,874 )   (89,237 )   5,363      
  Plus: Aimco's share of unconsolidated same store     35,954     84,334     (48,380 )    
   
 
 
 
 
    Aimco's share of same store sales   $ 790,532   $ 823,701   $ (33,169 ) -4.0 %
   
 
 
 
 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 320,903   $ 295,715   $ 25,188      
  Plus: Newly consolidated properties     26,019     4,799     21,220      
  Less: Minority partners' share of consolidated same store     (33,823 )   (32,294 )   (1,529 )    
  Plus: Aimco's share of unconsolidated same store     16,058     34,527     (18,469 )    
   
 
 
 
 
    Aimco's share of same store sales   $ 329,157   $ 302,747   $ 26,410   8.7 %
   
 
 
 
 

Net Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 458,002   $ 520,251   $ (62,249 )    
  Plus: Newly consolidated properties     33,528     7,839     25,689      
  Less: Minority partners' share of consolidated same store     (50,051 )   (56,943 )   6,892      
  Plus: Aimco's share of unconsolidated same store     19,896     49,807     (29,911 )    
   
 
 
 
 
    Aimco's share of same store sales   $ 461,375   $ 520,954   $ (59,579 ) -11.4 %
   
 
 
 
 

DEFINITIONS:

Consolidated same store properties - consist of all conventional properties owned, stabilized and consolidated for at least one year as of the beginning of the most recent quarter and for the relevant comparable period.

Acquisition properties - consist of all consolidated properties owned less than one year as of the beginning of the most recent quarter.

Newly consolidated properties - consist of all properties consolidated for less than one year as of the beginning of the most recent quarter.

Affordable properties - consist of all affordable properties (which are properties that benefit from governmental programs designed to provide housing for people with low or moderate incomes) owned, stabilized and consolidated for at least one year as of the beginning of the most recent quarter.

Redevelopment properties - consist of all consolidated properties where a substantial number of available units have been vacated for major renovations and have not been stabilized for at least one year as of the beginning of the most recent quarter.

Other properties - consist of all consolidated properties that are not multifamily (such as commercial, college housing, etc).

Partnership expenses - consist of expenses incurred at the partnership level either directly or indirectly (such as partnership audit, tax and trustee expenses).

Property management expenses - consist of off-site expenses associated with the self-management of consolidated properties.


Supplemental Schedule XI

Same Store Sales
Year to Date 2003 versus Year to Date 2002
(unaudited) (in thousands, except site and unit data)

 
   
   
   
   
   
   
   
   
   
  Change Nine Months Ended
September 30, 2003
Less September 30, 2002

 
 
   
   
   
  Nine Months Ended
September 30, 2003

  Nine Months Ended
September 30, 2002

 
 
   
   
   
  Revenue
  Expenses
  NOI
 
 
  Sites
  Units
  Owner%
  REV
  EXP
  NOI
  REV
  EXP
  NOI
  Amt
  %
  Amt
  %
  Amt
  %
 
 
 
 
 
 
 
 
Northeast                                                              
  Washington   28   12,458   79.94 % 86,294   28,303   57,991   86,080   25,699   60,381   214   0.2 % 2,604   10.1 % (2,390 ) -4.0 %
  Philadelphia   10   5,338   77.38 % 36,458   13,929   22,529   37,771   12,237   25,534   (1,313 ) -3.5 % 1,692   13.8 % (3,005 ) -11.8 %
  Baltimore   11   2,044   78.45 % 12,421   4,792   7,629   12,115   3,584   8,531   306   2.5 % 1,208   33.7 % (902 ) -10.6 %
  Dutchess County   1   835   100.00 % 6,793   2,680   4,113   6,700   2,255   4,445   93   1.4 % 425   18.8 % (332 ) -7.5 %
  Hartford   2   650   100.00 % 5,443   1,492   3,951   5,460   1,380   4,080   (17 ) -0.3 % 112   8.1 % (129 ) -3.2 %
  Other Markets   2   554   82.14 % 2,909   1,265   1,644   2,891   1,098   1,793   18   0.6 % 167   15.2 % (149 ) -8.3 %
  New England   1   412   56.71 % 2,262   702   1,560   2,313   615   1,698   (51 ) -2.2 % 87   14.1 % (138 ) -8.1 %
   
 
    55   22,291   80.15 % 152,580   53,163   99,417   153,330   46,868   106,462   (750 ) -0.5 % 6,295   13.4 % (7,045 ) -6.6 %
Southeast                                                              
  Atlanta   21   5,931   81.39 % 25,339   12,713   12,626   28,500   11,190   17,310   (3,161 ) -11.1 % 1,523   13.6 % (4,684 ) -27.1 %
  Other Markets   33   6,865   75.27 % 24,478   11,193   13,285   25,554   10,028   15,526   (1,076 ) -4.2 % 1,165   11.6 % (2,241 ) -14.4 %
  Norfolk   13   3,865   85.13 % 22,563   7,478   15,085   21,420   6,848   14,572   1,143   5.3 % 630   9.2 % 513   3.5 %
  Nashville   11   3,752   79.35 % 16,404   6,532   9,872   16,720   5,887   10,833   (316 ) -1.9 % 645   11.0 % (961 ) -8.9 %
  Raleigh-Durham-Chapel Hill   11   3,022   74.44 % 11,509   4,959   6,550   12,679   4,530   8,149   (1,170 ) -9.2 % 429   9.5 % (1,599 ) -19.6 %
  Charlotte-Gastonia-Rock Hill   11   2,336   84.65 % 8,560   4,351   4,209   9,315   4,203   5,112   (755 ) -8.1 % 148   3.5 % (903 ) -17.7 %
  Richmond - Petersburg   7   1,513   75.34 % 7,372   2,441   4,931   7,577   2,170   5,407   (205 ) -2.7 % 271   12.5 % (476 ) -8.8 %
  Columbia   6   1,438   65.24 % 4,771   2,165   2,606   4,890   1,939   2,951   (119 ) -2.4 % 226   11.7 % (345 ) -11.7 %
  Charleston   3   680   85.54 % 3,347   1,249   2,098   3,263   1,116   2,147   84   2.6 % 133   11.9 % (49 ) -2.3 %
  Savannah   2   416   100.00 % 2,352   892   1,460   2,340   789   1,551   12   0.5 % 103   13.1 % (91 ) -5.9 %
   
 
    118   29,818   79.03 % 126,695   53,973   72,722   132,258   48,700   83,558   (5,563 ) -4.2 % 5,273   10.8 % (10,836 ) -13.0 %
Florida                                                              
  Orlando - Daytona   25   6,438   85.67 % 31,074   13,877   17,197   31,805   13,246   18,559   (731 ) -2.3 % 631   4.8 % (1,362 ) -7.3 %
  Tampa-St. Petersburg   23   6,037   85.65 % 28,480   12,397   16,083   29,656   11,860   17,796   (1,176 ) -4.0 % 537   4.5 % (1,713 ) -9.6 %
  Miami   6   2,171   81.86 % 16,183   6,665   9,518   16,926   6,075   10,851   (743 ) -4.4 % 590   9.7 % (1,333 ) -12.3 %
  Jacksonville   7   2,766   79.01 % 13,173   5,268   7,905   13,141   4,823   8,318   32   0.2 % 445   9.2 % (413 ) -5.0 %
  West Palm Beach-Boca   6   1,727   100.00 % 12,031   4,621   7,410   12,535   4,549   7,986   (504 ) -4.0 % 72   1.6 % (576 ) -7.2 %
  FortLauderdale   4   1,122   88.71 % 7,234   3,098   4,136   7,439   2,646   4,793   (205 ) -2.8 % 452   17.1 % (657 ) -13.7 %
  Other Markets   2   456   70.29 % 1,727   593   1,134   1,756   559   1,197   (29 ) -1.7 % 34   6.1 % (63 ) -5.3 %
   
 
    73   20,717   85.39 % 109,902   46,519   63,383   113,258   43,758   69,500   (3,356 ) -3.0 % 2,761   6.3 % (6,117 ) -8.8 %
Midwest                                                              
  Chicago   22   6,323   90.61 % 47,677   20,144   27,533   50,144   18,308   31,836   (2,467 ) -4.9 % 1,836   10.0 % (4,303 ) -13.5 %
  Indianapolis   33   10,039   86.40 % 40,918   19,673   21,245   42,926   18,094   24,832   (2,008 ) -4.7 % 1,579   8.7 % (3,587 ) -14.4 %
  Grand Rapids-Lansing   15   5,757   93.35 % 29,062   12,774   16,288   30,159   11,849   18,310   (1,097 ) -3.6 % 925   7.8 % (2,022 ) -11.0 %
  Cincinnati - Dayton   19   3,733   75.65 % 16,311   7,011   9,300   16,376   6,291   10,085   (65 ) -0.4 % 720   11.4 % (785 ) -7.8 %
  Fort Wayne   3   2,440   97.13 % 11,475   5,389   6,086   12,861   4,744   8,117   (1,386 ) -10.8 % 645   13.6 % (2,031 ) -25.0 %
  Other Markets   17   3,735   58.36 % 10,927   4,897   6,030   11,256   4,707   6,549   (329 ) -2.9 % 190   4.0 % (519 ) -7.9 %
  Detroit - Ann Arbor   7   2,074   66.43 % 8,460   4,030   4,430   9,053   3,473   5,580   (593 ) -6.6 % 557   16.0 % (1,150 ) -20.6 %
  Columbus   9   2,012   68.24 % 7,144   2,930   4,214   7,321   2,525   4,796   (177 ) -2.4 % 405   16.0 % (582 ) -12.1 %
  Minneapolis - St.Paul   4   1,098   64.91 % 4,489   2,158   2,331   4,680   1,931   2,749   (191 ) -4.1 % 227   11.8 % (418 ) -15.2 %
  Kansas City   5   1,222   58.58 % 4,125   1,501   2,624   4,250   1,510   2,740   (125 ) -2.9 % (9 ) -0.6 % (116 ) -4.2 %
   
 
    134   38,433   81.52 % 180,588   80,507   100,081   189,026   73,432   115,594   (8,438 ) -4.5 % 7,075   9.6 % (15,513 ) -13.4 %
Texas                                                              
  Houston - Galveston   37   9,723   91.25 % 44,383   20,953   23,430   47,754   20,330   27,424   (3,371 ) -7.1 % 623   3.1 % (3,994 ) -14.6 %
  Dallas-Fort Worth   30   7,437   73.88 % 27,547   13,649   13,898   29,539   14,538   15,001   (1,992 ) -6.7 % (889 ) -6.1 % (1,103 ) -7.4 %
  San Antonio   14   3,269   100.00 % 14,680   7,083   7,597   15,035   6,852   8,183   (355 ) -2.4 % 231   3.4 % (586 ) -7.2 %
  Austin-San Marcos   11   2,417   92.08 % 11,588   5,998   5,590   12,785   6,198   6,587   (1,197 ) -9.4 % (200 ) -3.2 % (997 ) -15.1 %
  Other Markets   8   1,747   71.69 % 5,624   2,502   3,122   5,640   2,288   3,352   (16 ) -0.3 % 214   9.4 % (230 ) -6.9 %
   
 
    100   24,593   85.85 % 103,822   50,185   53,637   110,753   50,206   60,547   (6,931 ) -6.3 % (21 ) 0.0 % (6,910 ) -11.4 %
West                                                              
  Phoenix-Mesa   28   7,447   90.82 % 31,188   15,725   15,463   34,882   13,616   21,266   (3,694 ) -10.6 % 2,109   15.5 % (5,803 ) -27.3 %
  Denver - Front Range, CO   22   4,743   78.32 % 22,285   7,899   14,386   26,296   6,852   19,444   (4,011 ) -15.3 % 1,047   15.3 % (5,058 ) -26.0 %
  Salt Lake City-Ogden   6   2,115   75.02 % 8,021   2,808   5,213   8,469   2,559   5,910   (448 ) -5.3 % 249   9.7 % (697 ) -11.8 %
  Las Vegas   4   1,253   86.62 % 5,450   2,331   3,119   5,620   2,004   3,616   (170 ) -3.0 % 327   16.3 % (497 ) -13.7 %
  Tucson   4   1,157   100.00 % 4,737   2,067   2,670   5,005   2,008   2,997   (268 ) -5.4 % 59   2.9 % (327 ) -10.9 %
  Other Markets   5   1,024   62.83 % 3,147   1,412   1,735   3,006   1,272   1,734   141   4.7 % 140   11.0 % 1   0.1 %
  Seattle   4   468   52.88 % 1,588   757   831   1,614   609   1,005   (26 ) -1.6 % 148   24.3 % (174 ) -17.3 %
   
 
    73   18,207   83.47 % 76,416   32,999   43,417   84,892   28,920   55,972   (8,476 ) -10.0 % 4,079   14.1 % (12,555 ) -22.4 %
California                                                              
  San Diego   6   1,737   97.63 % 14,802   4,203   10,599   14,346   3,866   10,480   456   3.2 % 337   8.7 % 119   1.1 %
  Los Angeles-Long Beach - Ventura   4   1,683   67.04 % 12,733   3,470   9,263   12,605   3,154   9,451   128   1.0 % 316   10.0 % (188 ) -2.0 %
  Bay Area   6   1,661   58.64 % 9,420   3,058   6,362   9,808   2,832   6,976   (388 ) -4.0 % 226   8.0 % (614 ) -8.8 %
  Orange County - Riverside   3   490   91.61 % 3,287   964   2,323   3,148   908   2,240   139   4.4 % 56   6.2 % 83   3.7 %
  Sacramento   1   180   20.25 % 287   116   171   277   103   174   10   3.6 % 13   12.6 % (3 ) -1.7 %
   
 
    20   5,751   74.48 % 40,529   11,811   28,718   40,184   10,863   29,321   345   0.9 % 948   8.7 % (603 ) -2.1 %
   
 
  SAME STORE SALES TOTALS   573   159,810   82.00 % 790,532   329,157   461,375   823,701   302,747   520,954   (33,169 ) -4.0 % 26,410   8.7 % (59,579 ) -11.4 %
   
 
Plus: Minority share of consolidated same store sales               83,874   33,823   50,051   89,237   32,294   56,943                          
Less: Aimco's share of unconsolidated same store sales               (35,954 ) (16,058 ) (19,896 ) (84,334 ) (34,527 ) (49,807 )                        
Less: Newly consolidated               (59,547 ) (26,019 ) (33,528 ) (12,638 ) (4,799 ) (7,839 )                        
               
 
                         
Consolidated same store sales               778,905   320,903   458,002   815,966   295,715   520,251                          
               
 
                         

Supplemental Schedule XII

Income Statement Information
Q3 2003 compared to Q2 2003
(in thousands)
(unaudited)

 
  Three Months Ended
September 30, 2003

  Three Months Ended
June 30, 2003

  Change
Q3 2003 vs Q2 2003

  %
Change
Q3 2003 vs Q2 2003

 
Revenues:                        
  Consolidated same store properties   $ 286,420   $ 285,847   $ 573   0.2 %
  Acquisition properties     16,700     16,212     488   3.0 %
  Newly consolidated properties     30,547     26,882     3,665   13.6 %
  Affordable properties     27,252     28,617     (1,365 ) -4.8 %
  Redevelopment properties     11,652     9,420     2,232   23.7 %
  Other properties     4,832     4,239     593   14.0 %
   
 
 
 
 
    Total rental and other property revenues   $ 377,403   $ 371,217   $ 6,186   1.7 %
   
 
 
 
 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 119,303   $ 112,811   $ 6,492   5.8 %
  Acquisition properties     5,239     4,881     358   7.3 %
  Newly consolidated properties     14,284     12,727     1,557   12.2 %
  Affordable properties     13,608     13,663     (55 ) -0.4 %
  Redevelopment properties     5,717     4,866     851   17.5 %
  Partnership expenses     751     2,859     (2,108 ) -73.7 %
  Property management expense     4,091     3,841     250   6.5 %
  Other properties     3,407     3,018     389   12.9 %
   
 
 
 
 
    Total property operating expense   $ 166,400   $ 158,666   $ 7,734   4.9 %
   
 
 
 
 

Net Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 167,117   $ 173,036   $ (5,919 ) -3.4 %
  Acquisition properties     11,461     11,331     130   1.1 %
  Newly consolidated properties     16,263     14,155     2,108   14.9 %
  Affordable properties     13,644     14,954     (1,310 ) -8.8 %
  Redevelopment properties     5,935     4,554     1,381   30.3 %
  Partnership expenses     (751 )   (2,859 )   2,108   -73.7 %
  Property management expense     (4,091 )   (3,841 )   (250 ) 6.5 %
  Other properties     1,425     1,221     204   16.7 %
   
 
 
 
 
    Total income from property operations   $ 211,003   $ 212,551   $ (1,548 ) -0.7 %
   
 
 
 
 

Reconciliation of Consolidated same store properties to Aimco's share of same store sales:

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 286,420   $ 285,847   $ 573      
  Plus: Newly consolidated properties     16,395     15,487     908      
  Less: Minority partners' share of consolidated same store     (30,143 )   (30,235 )   92      
  Plus: Aimco's share of unconsolidated same store     12,121     11,812     309      
   
 
 
 
 
    Aimco's share of same store sales   $ 284,793   $ 282,911   $ 1,882   0.7 %
   
 
 
 
 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 119,303   $ 112,811   $ 6,492      
  Plus: Newly consolidated properties     7,130     7,437     (307 )    
  Less: Minority partners' share of consolidated same store     (12,637 )   (11,981 )   (656 )    
  Plus: Aimco's share of unconsolidated same store     5,050     5,266     (216 )    
   
 
 
 
 
    Aimco's share of same store sales   $ 118,846   $ 113,533   $ 5,313   4.7 %
   
 
 
 
 

Net Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 
  Consolidated same store properties   $ 167,117   $ 173,036   $ (5,919 )    
  Plus: Newly consolidated properties     9,265     8,050     1,215      
  Less: Minority partners' share of consolidated same store     (17,506 )   (18,254 )   748      
  Plus: Aimco's share of unconsolidated same store     7,071     6,546     525      
   
 
 
 
 
    Aimco's share of same store sales   $ 165,947   $ 169,378   $ (3,431 ) -2.0 %
   
 
 
 
 

DEFINITIONS:

Consolidated same store properties - consist of all conventional properties owned, stabilized and consolidated for at least one year as of the beginning of the most recent quarter and for the relevant comparable period.

Acquisition properties - consist of all consolidated properties owned less than one year as of the beginning of the most recent quarter.

Newly consolidated properties - consist of all properties consolidated for less than one year as of the beginning of the most recent quarter.

Affordable properties - consist of all affordable properties (which are properties that benefit from governmental programs designed to provide housing for people with low or moderate incomes) owned, stabilized and consolidated for at least one year as of the beginning of the most recent quarter.

Redevelopment properties - consist of all consolidated properties where a substantial number of available units have been vacated for major renovations and have not been stabilized for at least one year as of the beginning of the most recent quarter.

Other properties - consist of all consolidated properties that are not multifamily (such as commercial, college housing, etc).

Partnership expenses - consist of expenses incurred at the partnership level either directly or indirectly (such as partnership audit, tax and trustee expenses).

Property management expenses - consist of off-site expenses associated with the self-management of consolidated properties.


Supplemental Schedule XIII

Same Store Sales
Third Quarter 2003 versus Second Quarter 2003
(unaudited) (in thousands, except site and unit data)

 
   
   
   
   
   
   
   
   
   
  Change Three Months Ended
September 30, 2003
Less June 30, 2003

 
 
   
   
   
  Three Months Ended
September 30, 2003

  Three Months Ended
June 30, 2003

 
 
   
   
   
  Revenue
  Expenses
  NOI
 
 
  Sites
  Units
  Owner%
  REV
  EXP
  NOI
  REV
  EXP
  NOI
  Amt
  %
  Amt
  %
  Amt
  %
 
 
 
 
 
 
 
 
Northeast                                                              
        Washington   28   12,458   79.94 % 29,037   9,413   19,624   29,057   8,971   20,086   (20 ) -0.1 % 442   4.9 % (462 ) -2.3 %
        Philadelphia   10   5,338   77.38 % 12,439   4,615   7,824   12,099   4,551   7,548   340   2.8 % 64   1.4 % 276   3.7 %
        Baltimore   11   2,044   78.45 % 4,277   1,497   2,780   4,185   1,433   2,752   92   2.2 % 64   4.5 % 28   1.0 %
        Dutchess County   1   835   100.00 % 2,392   691   1,701   2,228   885   1,343   164   7.4 % (194 ) -21.9 % 358   26.7 %
        Hartford   2   650   100.00 % 1,853   511   1,342   1,828   476   1,352   25   1.4 % 35   7.4 % (10 ) -0.7 %
        Other Markets   2   554   82.14 % 1,000   392   608   998   454   544   2   0.2 % (62 ) -13.7 % 64   11.8 %
        New England   1   412   56.71 % 753   220   533   755   239   516   (2 ) -0.3 % (19 ) -7.9 % 17   3.3 %
   
 
    55   22,291   80.15 % 51,751   17,339   34,412   51,150   17,009   34,141   601   1.2 % 330   1.9 % 271   0.8 %
Southeast                                                              
        Atlanta   21   5,931   81.39 % 8,986   4,487   4,499   7,859   4,158   3,701   1,127   14.3 % 329   7.9 % 798   21.6 %
        Other Markets   33   6,865   75.27 % 8,215   3,915   4,300   8,185   3,557   4,628   30   0.4 % 358   10.1 % (328 ) -7.1 %
        Norfolk   13   3,865   85.13 % 7,679   2,513   5,166   7,587   2,443   5,144   92   1.2 % 70   2.9 % 22   0.4 %
        Nashville   11   3,752   79.35 % 5,554   2,244   3,310   5,451   2,091   3,360   103   1.9 % 153   7.3 % (50 ) -1.5 %
        Raleigh-Durham-Chapel Hill   11   3,022   74.44 % 3,819   1,765   2,054   3,836   1,563   2,273   (17 ) -0.4 % 202   12.9 % (219 ) -9.6 %
        Charlotte-Gastonia-Rock Hill   11   2,336   84.65 % 2,913   1,494   1,419   2,957   1,510   1,447   (44 ) -1.5 % (16 ) -1.1 % (28 ) -1.9 %
        Richmond - Petersburg   7   1,513   75.34 % 2,472   862   1,610   2,484   776   1,708   (12 ) -0.5 % 86   11.1 % (98 ) -5.7 %
        Columbia   6   1,438   65.24 % 1,614   775   839   1,601   709   892   13   0.8 % 66   9.3 % (53 ) -5.9 %
        Charleston   3   680   85.54 % 1,136   446   690   1,122   412   710   14   1.2 % 34   8.3 % (20 ) -2.8 %
        Savannah   2   416   100.00 % 792   295   497   788   312   476   4   0.5 % (17 ) -5.4 % 21   4.4 %
   
 
    118   29,818   79.03 % 43,180   18,796   24,384   41,870   17,531   24,339   1,310   3.1 % 1,265   7.2 % 45   0.2 %
Florida                                                              
        Orlando - Daytona   25   6,438   85.67 % 10,583   4,736   5,847   10,384   4,692   5,692   199   1.9 % 44   0.9 % 155   2.7 %
        Tampa-St. Petersburg   23   6,037   85.65 % 9,536   4,291   5,245   9,544   3,997   5,547   (8 ) -0.1 % 294   7.4 % (302 ) -5.4 %
        Miami   6   2,171   81.86 % 5,423   2,120   3,303   5,486   2,281   3,205   (63 ) -1.1 % (161 ) -7.1 % 98   3.1 %
        Jacksonville   7   2,766   79.01 % 4,422   1,839   2,583   4,405   1,736   2,669   17   0.4 % 103   5.9 % (86 ) -3.2 %
        West Palm Beach-Boca   6   1,727   100.00 % 4,061   1,454   2,607   4,049   1,584   2,465   12   0.3 % (130 ) -8.2 % 142   5.8 %
        FortLauderdale   4   1,122   88.71 % 2,474   1,045   1,429   2,382   972   1,410   92   3.9 % 73   7.5 % 19   1.3 %
        Other Markets   2   456   70.29 % 590   202   388   566   208   358   24   4.2 % (6 ) -2.9 % 30   8.4 %
   
 
    73   20,717   85.39 % 37,089   15,687   21,402   36,816   15,470   21,346   273   0.7 % 217   1.4 % 56   0.3 %
Midwest                                                              
        Chicago   22   6,323   90.61 % 15,966   6,610   9,356   16,040   7,053   8,987   (74 ) -0.5 % (443 ) -6.3 % 369   4.1 %
        Indianapolis   33   10,039   86.40 % 13,496   7,389   6,107   13,766   6,373   7,393   (270 ) -2.0 % 1,016   15.9 % (1,286 ) -17.4 %
        Grand Rapids-Lansing   15   5,757   93.35 % 9,636   4,233   5,403   9,716   4,214   5,502   (80 ) -0.8 % 19   0.5 % (99 ) -1.8 %
        Cincinnati - Dayton   19   3,733   75.65 % 5,436   2,310   3,126   5,516   2,248   3,268   (80 ) -1.5 % 62   2.8 % (142 ) -4.3 %
        Fort Wayne   3   2,440   97.13 % 3,785   2,067   1,718   3,768   1,760   2,008   17   0.5 % 307   17.4 % (290 ) -14.4 %
        Other Markets   17   3,735   58.36 % 3,638   1,664   1,974   3,694   1,636   2,058   (56 ) -1.5 % 28   1.7 % (84 ) -4.1 %
        Detroit - Ann Arbor   7   2,074   66.43 % 2,772   1,325   1,447   2,909   1,305   1,604   (137 ) -4.7 % 20   1.5 % (157 ) -9.8 %
        Columbus   9   2,012   68.24 % 2,374   981   1,393   2,384   971   1,413   (10 ) -0.4 % 10   1.0 % (20 ) -1.4 %
        Minneapolis - St.Paul   4   1,098   64.91 % 1,432   743   689   1,513   774   739   (81 ) -5.4 % (31 ) -4.0 % (50 ) -6.8 %
        Kansas City   5   1,222   58.58 % 1,365   583   782   1,389   522   867   (24 ) -1.7 % 61   11.7 % (85 ) -9.8 %
   
 
    134   38,433   81.52 % 59,900   27,905   31,995   60,695   26,856   33,839   (795 ) -1.3 % 1,049   3.9 % (1,844 ) -5.4 %
Texas                                                              
        Houston - Galveston   37   9,723   91.25 % 14,747   7,602   7,145   15,136   6,796   8,340   (389 ) -2.6 % 806   11.9 % (1,195 ) -14.3 %
        Dallas-Fort Worth   30   7,437   73.88 % 9,123   4,831   4,292   9,223   4,549   4,674   (100 ) -1.1 % 282   6.2 % (382 ) -8.2 %
        San Antonio   14   3,269   100.00 % 5,042   2,469   2,573   4,957   2,341   2,616   85   1.7 % 128   5.5 % (43 ) -1.6 %
        Austin-San Marcos   11   2,417   92.08 % 3,930   2,189   1,741   3,794   1,838   1,956   136   3.6 % 351   19.1 % (215 ) -11.0 %