Aimco Reports First Quarter Results

Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today first quarter results for 2018.

Chairman and Chief Executive Officer Terry Considine comments: “Aimco had a solid first quarter. Operating results were on target, occupancy was up year-over-year, with high resident retention resulting from Aimco focus on customer selection and satisfaction. Average monthly revenue per apartment home reached $2,052, up 7% year-over-year. And Aimco was recognized as a top workplace in Colorado for the sixth consecutive year.

“Aimco agreed to $600 million in acquisitions: Bent Tree Apartments in Fairfax County, Virginia, and six properties in the Philadelphia area. Aimco plans to fund these acquisitions by the sale of its Asset Management business, the sale of Chestnut Hill Village and four Affordable properties, and issuance of OP Units at $53 per share.”

Chief Financial Officer Paul Beldin adds: “First quarter 2018 AFFO of $0.54 per share was $0.02 per share ahead of the midpoint of our guidance range and Pro forma FFO of $0.60 per share was $0.01 ahead of the midpoint of guidance. AFFO was ahead of the midpoint primarily due to stronger operations, including the contribution from Bent Tree, and the timing of capital projects moved to later in 2018. Aimco is updating its full year 2018 guidance to reflect both first quarter results and the effect of year-to-date transactions. We now expect AFFO to be in the range of $2.08 to $2.18 per share.”

Financial Results: First Quarter Pro forma FFO Up 3%; AFFO Up 6%
			FIRST QUARTER
(all items per common share - diluted)			2018					2017					Variance
Net income			$	0.52				$	0.07				643	%
Funds From Operations (FFO) / Pro forma Funds From Operations (Pro forma FFO)			$	0.60				$	0.58				3	%
Deduct Aimco share of Capital Replacements			$	(0.06	)			$	(0.07	)			(14	%)
Adjusted Funds From Operations (AFFO)			$	0.54				$	0.51				6	%

Net Income (per diluted common share) - Year-over-year, first quarter net income increased due to higher gains on the sale of apartment communities and a higher tax benefit resulting from an intercompany transfer of assets related to the Asset Management business.

Pro forma FFO (per diluted common share) - Aimco’s first quarter Pro forma FFO increased by $0.02 per share, or 3%, on a year-over-year basis. Property results contributed the following to Pro forma FFO:

• $0.02 from Same Store Property Net Operating Income growth of 2.7%, driven by a 2.6% increase in revenue, offset by a 2.1% increase in expenses; and
• $0.01 from leasing activity related to renovated homes at Redevelopment communities, the second quarter 2017 reacquisition of a 47% interest in the Palazzo communities, and the first quarter 2018 acquisition of Bent Tree Apartments, offset in part by lower Property Net Operating Income from apartment communities sold in 2018 and 2017.

As compared to 2017, higher legal costs and other factors reduced Pro forma FFO by $0.01.

Adjusted Funds From Operations (per diluted common share) - The $0.02 increase year-over-year in Pro forma FFO per share plus $0.01 in lower capital replacement spending due to fewer apartment homes increased AFFO per share by $0.03, or 6%.

Operating Results: First Quarter Same Store NOI Up 2.7%
			FIRST QUARTER
			Year-over-Year										Sequential
			2018			2017			Variance				4th Qtr.				Variance
Average Rent per Apartment Home			$1,808			$1,762			2.6	%			$	1,802			0.3	%
Other Income per Apartment Home*			105			109			(3.7	%)				109			(3.7	%)
Average Revenue per Apartment Home*			$1,913			$1,871			2.2	%			$	1,911			0.1	%
Average Daily Occupancy			96.3	%		96.0	%		0.3	%				96.3	%		—	%
$ in Millions
Revenue, before utility reimbursements			$144.9			$141.2			2.6	%			$	144.8			0.1	%
Expenses, net of utility reimbursements			38.9			38.1			2.1	%				35.6			9.4	%
NOI			$106.0			$103.1			2.7	%			$	109.2			(3.0	%)

*		In 2018, Aimco changed its presentation of revenues and expenses to reflect utilities costs net of amounts reimbursed by residents, which were previously included in revenue. 2017 amounts have been revised to conform to this presentation.

Same Store Rental Rates - Aimco measures changes in rental rates by comparing, on a lease-by-lease basis, the rate on a newly executed lease to the rate on the expiring lease for that same apartment. Newly executed leases are classified either as a new lease, where a vacant apartment is leased to a new customer, or as a renewal. The table below details changes in new and renewal lease rates.

2018			Jan				Feb				Mar				1st Qtr.
Renewal rent increases			5.1	%			4.9	%			4.8	%			4.9	%
New lease rent increases			(0.1	%)			0.4	%			0.6	%			0.4	%
Weighted average rent increases			2.6	%			2.7	%			2.7	%			2.7	%
Average Daily Occupancy			96.3	%			96.2	%			96.2	%			96.3	%

Redevelopment

Redevelopment is Aimco’s second line of business where Aimco creates value by repositioning communities within the Aimco portfolio. Aimco also undertakes ground-up development when warranted by risk-adjusted investment returns, either directly in connection with the redevelopment of an existing apartment community, or on a more limited basis, at a new location. Aimco invests to earn risk-adjusted returns in excess of those expected from the apartment communities sold in paired trades to fund the redevelopment and development. Of these two activities, Aimco favors redevelopment because it permits adjustment of the scope and timing of spending to align with changing market conditions and customer preferences.

During the first quarter, Aimco invested $47 million in redevelopment and development. In Center City, Philadelphia, Aimco continued construction on the fourth and final tower of Park Towne Place. Initial move-ins have occurred and at the end of April, 31% of the tower is pre-leased.

Construction is underway, on plan and on budget at Parc Mosaic, Aimco’s $117 million, 226 apartment home community being developed on the site of its former Eastpointe community in Boulder, Colorado. Aimco expects Parc Mosaic will be available for occupancy in the summer of 2019.

During the first quarter, Aimco leased 59 apartment homes at its redevelopment communities. At March 31, 2018, Aimco’s exposure to lease-up at active redevelopment and development projects was approximately 527 apartment homes, of which 201 were in the fourth tower of Park Towne Place and 215 were being constructed at Parc Mosaic.

Portfolio Management: Revenue Per Apartment Home Up 7% to $2,052

Aimco’s portfolio of apartment communities is diversified across “A,” “B” and “C+” price points, averaging “B/B+” in quality and is diversified across some of the largest markets in the U.S.

As part of its portfolio strategy, Aimco seeks to sell up to 10% of its portfolio annually and to reinvest the proceeds from such sales in accretive uses such as capital enhancements, redevelopments, occasional developments, and selective acquisitions with projected Free Cash Flow internal rates of return higher than expected from the communities being sold. Through this disciplined approach to capital recycling, Aimco has significantly increased the quality and expected growth rate of its portfolio.

			FIRST QUARTER
			2018					2017					Variance
Apartment Communities			134					141					(7	)
Apartment Homes			37,228					39,173					(1,945	)
Average Revenue per Apartment Home*			$	2,052				$	1,922				7	%
Portfolio Average Rents as a Percentage of Local Market Average Rents			113		%			112		%			1	%
Percentage A (1Q 2018 Average Revenue per Apartment Home $2,736)			49		%			51		%			(2	%)
Percentage B (1Q 2018 Average Revenue per Apartment Home $1,797)			35		%			35		%			—	%
Percentage C+ (1Q 2018 Average Revenue per Apartment Home $1,660)			16		%			14		%			2	%
NOI Margin			71		%			71		%			—	%
Free Cash Flow Margin			66		%			65		%			1	%

*		In 2018, Aimco changed its presentation of revenues and expenses to reflect utilities costs net of amounts reimbursed by residents, which were previously included in revenue. 2017 amounts have been revised to conform to this presentation.

First Quarter Real Estate Portfolio - For its entire portfolio, Aimco’s average monthly revenue per apartment home was $2,052 for first quarter 2018, a 7% increase compared to first quarter 2017. This increase is due to year-over-year growth in Same Store revenue as well as Aimco’s second quarter 2017 reacquisition of the 47% interest in the Palazzo communities, lease-up of redevelopment and acquisition properties, and the sale of apartment communities with average monthly revenues per apartment home lower than those of the retained portfolio.

Acquisitions - Aimco evaluates potential acquisitions with an eye for unique and opportunistic investments and funds acquisitions pursuant to its strict paired trade discipline. As previously announced, subsequent to quarter end, Aimco entered into a transaction to acquire six apartment communities in the Philadelphia area for a purchase price of $445 million. The portfolio includes 1,006 existing apartment homes, 110 apartment homes under construction, and 185,000 square feet of office and retail space. This “A” quality portfolio is located primarily in the Center City and University City submarkets of Philadelphia. Aimco anticipates its operation of the five operating communities will generate a year one NOI yield of 5.3%, and for all six communities, average revenue per apartment home of $2,200 and a ten-year expected free cash flow internal rate of return of about 8%.

The $445 million acquisition will be funded initially through taking title subject to $290 million of non-recourse property debt, issuance of $90 million in Aimco Properties, L.P. OP Units valued in the transaction at their estimated net asset value of $53 per unit, and payment of $65 million in cash funded from bank borrowings. The ultimate paired trade funding includes the sale of Chestnut Hill Village, located in north Philadelphia, and the sale of the Asset Management business, described below.

On May 1, 2018, Aimco completed the acquisition of four of the six apartment communities including 665 apartment homes and 153,000 square feet of office and retail space. Aimco anticipates the acquisition of the fifth apartment community during the summer of 2018 and the acquisition of the final apartment community upon completion of construction, expected in the first half of 2019. Please refer to Addendum A following the release and before the supplemental schedules for additional information regarding the Philadelphia market and Aimco’s investments within the market.

In the first quarter, Aimco purchased for $160 million Bent Tree Apartments, a 748-apartment home community in Fairfax County, Virginia. Bent Tree is a “B” quality community located in a market Aimco knows well from its ownership of two nearby communities built by the same developer. Further, Aimco believes the same business plan used at these communities will produce greater than market rate NOI growth for Bent Tree. The community is expected to achieve a 5.6% year one NOI cap rate. Before consideration of capital enhancement opportunities, new lease rents are 4% higher than expiring leases, as compared to new lease rents that have decreased elsewhere in northern Virginia. Aimco funded the acquisition with bank borrowings pending the expected third quarter sale of the Asset Management business, described below.

Dispositions - In the first quarter, Aimco sold three apartment communities with 513 apartment homes for a gain of approximately $51 million, net of income tax, and gross proceeds of $72 million resulting in $65 million in net proceeds to Aimco. Two of these communities are located in southern Virginia and one is located in suburban Maryland. Proceeds from these sales were used to repay outstanding borrowings on Aimco’s revolving credit facility, effectively funding the equity portion of the Palazzo reacquisition as well as Aimco’s 2017 redevelopment and development activities.

At the end of the first quarter, Aimco completed the previously announced sale of its interests in the entities owning the La Jolla Cove property in settlement of legal actions filed in 2014 by a group of disappointed buyers who had hoped to acquire the property. Aimco provided seller financing with a stated value of $49 million and received net cash proceeds of approximately $5 million in the sale.

As previously announced, in April 2018, Aimco entered into a binding agreement to sell for $590 million its Asset Management business and the four Hunters Point affordable apartment communities. Aimco expects to close this transaction during the third quarter of 2018. After payment of closing costs and repayment of property level debt encumbering the Hunters Point apartment communities, the net proceeds to Aimco are expected to be approximately $512 million, which Aimco plans to use to: repay the borrowings on its credit facility used to fund the acquisition of Bent Tree Apartments and the acquisition of the apartment communities in the Philadelphia portfolio; reduce overall leverage; fund 2018 redevelopment; and redeem its Class A preferred stock, which is callable in second quarter 2019. Taken together, these transactions are expected to reduce Aimco’s AFFO by $0.03 per share and $0.04 per share in 2018 and 2019, respectively, before becoming accretive in 2021.

Balance Sheet

Aimco Leverage

Aimco’s leverage strategy seeks to increase financial returns while using leverage with appropriate caution. Aimco limits risk through balance sheet structure, employing low leverage, primarily non-recourse and long-dated property debt; builds financial flexibility by maintaining ample unused and available credit as well as holding properties with substantial value unencumbered by property debt; and uses partners’ capital when it enhances financial returns or reduces investment risk.

Non-recourse Property Debt - During the first quarter, Aimco closed two non-recourse, fixed-rate property loans totaling $242 million. These loans have 10-year terms and a weighted average interest rate of 3.48%, 126 basis points above the corresponding treasury rates at the time of pricing. The net effect of 2018 fixed-rate property debt refinancing activities has been to lower Aimco’s weighted average fixed interest rate by nearly 10 basis points since December 31, 2017, to 4.55%, reducing prospective interest expense by more than $3 million.

Aimco also closed two non-recourse, variable-rate property loans totaling $119 million. These loans each have a five-year term and bear interest at 30-day LIBOR plus 1.25%. The five-year terms fill a hole in Aimco’s laddered maturities and, taken together with the planned repayment of the variable term loan, reduce Aimco exposure to increasing short-term interest rates to less than 7% of Aimco total leverage.

Aimco total leverage includes Aimco share of long-term, non-recourse, property debt encumbering apartment communities in its Real Estate portfolio, its term loan, outstanding borrowings under its revolving credit facility, and outstanding preferred equity. Aimco leverage excludes non-recourse property debt obligations of consolidated partnerships served by its Asset Management business.

			AS OF MARCH 31, 2018
$ in Millions			Amount					% of Total				Weighted Avg. Maturity (Yrs.)
Aimco share of long-term, non-recourse property debt			$	3,710				87	%			7.4
Term loan			250					6	%			1.3
Outstanding borrowings on revolving credit facility			79					2	%			3.8
Preferred Equity*			226					5	%			40.0
Total leverage			$	4,265				100	%			8.7
Cash, restricted cash and investments in securitization trust assets			(174		)
Net Leverage			$	4,091

*		Aimco’s Preferred Equity is perpetual in nature; however, for illustrative purposes, Aimco has computed the weighted average maturity of its total leverage assuming a 40-year maturity for its Preferred Equity.

Leverage Ratios

Aimco target leverage ratios are Proportionate Debt and Preferred Equity to Adjusted EBITDA below 7.0x and Adjusted EBITDA to Interest Expense and Preferred Dividends greater than 2.5x. Aimco calculates Adjusted EBITDA and Adjusted Interest Expense used in its leverage ratios based on current quarter amounts, annualized.

					FIRST QUARTER 2018
Proportionate Debt to Adjusted EBITDA					6.8x
Proportionate Debt and Preferred Equity to Adjusted EBITDA					7.2x
Adjusted EBITDA to Adjusted Interest Expense					3.6x
Adjusted EBITDA to Adjusted Interest Expense and Preferred Dividends					3.2x

Aimco’s leverage ratios have been calculated on a pro forma basis to reflect the acquisition of Bent Tree Apartments and the disposition of three apartment communities during the period as if the transactions had closed on January 1, 2018.

Future improvement in leverage metrics is expected from the repayment of bank borrowings and property level debt with the proceeds from Aimco’s expected third quarter sale of its Asset Management business and the Hunters Point communities. Aimco also expects to use the proceeds from this sale to redeem its Class A preferred stock, which is callable in second quarter 2019. Aimco expects its Proportionate Debt to Adjusted EBITDA and Proportionate Debt and Preferred Equity to Adjusted EBITDA ratios to decrease by the end of 2018 to 6.3x and 6.7x, respectively.

Liquidity

At March 31, 2018, Aimco held cash and restricted cash of $91 million and had available capacity to borrow $509 million under its revolving credit facility, after consideration of outstanding borrowings of $79 million and $12 million of letters of credit backed by the facility. Aimco uses its credit facility primarily for working capital and other short-term purposes and to secure letters of credit.

Aimco also manages its financial flexibility by maintaining an investment grade rating and holding apartment communities that are unencumbered by property debt. At March 31, 2018, Aimco held unencumbered apartment communities with an estimated fair market value of approximately $2.0 billion.

Dividend - As previously announced, the Aimco Board of Directors declared a quarterly cash dividend of $0.38 per share of Class A Common Stock for the quarter ended March 31, 2018. On an annualized basis, this represents an increase of 6% compared to the dividends paid during 2017. This dividend is payable on May 31, 2018, to stockholders of record on May 18, 2018.

2018 Outlook
($ Amounts represent Aimco Share)				YEAR-TO-DATE MARCH 31, 2018			FULL YEAR 2018			PREVIOUS FULL YEAR 2018
Net Income per share				$0.52			$4.05 to $4.55			$0.36 to $0.46
Pro forma FFO per share				$0.60			$2.39 to $2.49			$2.42 to $2.52
AFFO per share				$0.54			$2.08 to $2.18			$2.11 to $2.21
Select Components of FFO
Same Store Operating Measures
Revenue change compared to prior year				2.6%			2.10% to 3.10%			2.10% to 3.10%
Expense change compared to prior year				2.1%			2.60% to 3.60%			2.60% to 3.60%
NOI change compared to prior year				2.7%			1.70% to 3.10%			1.70% to 3.10%
Other Earnings
Asset Management Contribution				$10M			$22M to $24M			$36M
Tax Benefits				$4M			$16M to $18M			$16M to $18M
Offsite Costs
Property management expenses				$5M			$20M			$20M
General and administrative expenses				$11M			$44M			$44M
Total Offsite Costs				$16M			$64M			$64M
Capital Investments
Redevelopment/Development				$47M			$120M to $200M			$120M to $200M
Capital enhancements				$19M			$80M to $100M			$80M to $100M
Transactions
Property dispositions				$65M			$790M to $870M			$180M to $220M
Property acquisitions [1]				$160M			$551M			$0M
Portfolio Quality
Average revenue per apartment home [2]				$2,052			~$2,100			~$2,100
Balance Sheet
Proportionate Debt to Adjusted EBITDA				6.8x			~6.3x			~6.5x
Proportionate Debt and Preferred Equity to Adjusted EBITDA				7.2x			~6.7x			~6.9x

[1]		Aimco does not predict or guide to acquisitions. These amounts represent the value of assets acquired or under contract to be acquired in 2018. Aimco monitors potential transactions with an eye for unique and opportunistic investments and funds acquisitions pursuant to its strict paired trade discipline.
[2]		Previous full year guidance for average revenue per apartment home is adjusted to exclude amounts of utilities costs reimbursed by residents, which were previously included in revenue.

($ Amounts represent Aimco Share)					SECOND QUARTER 2018
Net income per share					$0.03 to $0.07
Pro forma FFO per share					$0.57 to $0.61
AFFO per share					$0.48 to $0.52

Earnings Conference Call Information

Live Conference Call:					Conference Call Replay:
Tuesday, May 8, 2018 at 1:00 p.m. ET					Replay available until August 8, 2018
Domestic Dial-In Number: 1-888-317-6003					Domestic Dial-In Number: 1-877-344-7529
International Dial-In Number: 1-412-317-6061					International Dial-In Number: 1-412-317-0088
Passcode: 1743062					Passcode: 10118742
Live webcast and replay: www.aimco.com/investors

Supplemental Information

The full text of this Earnings Release and the Supplemental Information referenced in this release are available on Aimco’s website at www.aimco.com/investors.

Glossary & Reconciliations of Non-GAAP Financial and Operating Measures

Financial and operating measures found in this Earnings Release and the Supplemental Information include certain financial measures used by Aimco management that are measures not defined under accounting principles generally accepted in the United States (“GAAP”). Certain Aimco terms and Non-GAAP measures are defined in the Glossary in the Supplemental Information and Non-GAAP measures reconciled to the most comparable GAAP measures.

About Aimco

Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with ownership interests in 184 communities in 22 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.

Forward-looking Statements

This Earnings Release and Supplemental Information contain forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding projected results and specifically forecasts of second quarter and full year 2018 results, including but not limited to: FFO, Pro forma FFO and selected components thereof; AFFO; Aimco redevelopment/development investments and projected yield on such investments, timelines and Net Operating Income contribution; expectations regarding sales of Aimco apartment communities and the use of proceeds thereof; and Aimco liquidity and leverage metrics.

These forward-looking statements are based on management’s judgment as of this date, which is subject to risks and uncertainties. Risks and uncertainties include, but are not limited to: Aimco’s ability to maintain current or meet projected occupancy, rental rate and property operating results; the effect of acquisitions, dispositions, redevelopments and developments; Aimco’s ability to meet budgeted costs and timelines, and achieve budgeted rental rates related to Aimco redevelopments and developments; and Aimco’s ability to comply with debt covenants, including financial coverage ratios.

Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond Aimco’s control, including, without limitation:

• Real estate and operating risks, including fluctuations in real estate values and the general economic climate in the markets in which Aimco operates and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the amount, location and quality of competitive new housing supply; the timing of acquisitions, dispositions, redevelopments and developments; and changes in operating costs, including energy costs;
• Financing risks, including the availability and cost of capital markets’ financing; the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; and the risk that earnings may not be sufficient to maintain compliance with debt covenants;
• Insurance risks, including the cost of insurance, and natural disasters and severe weather such as hurricanes; and
• Legal and regulatory risks, including costs associated with prosecuting or defending claims and any adverse outcomes; the terms of governmental regulations that affect Aimco and interpretations of those regulations; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of apartment communities presently or previously owned by Aimco.

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

Readers should carefully review Aimco’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Aimco’s Annual Report on Form 10-K for the year ended December 31, 2017, and the other documents Aimco files from time to time with the Securities and Exchange Commission.

These forward-looking statements reflect management’s judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances. This press release does not constitute an offer of securities for sale.

Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
			Three Months Ended
			March 31,
			2018					2017
REVENUES
Rental and other property revenues attributable to Real Estate			$	225,393				$	225,228
Rental and other property revenues of partnerships served by Asset Management business			18,808					18,562
Tax credit and transaction revenues			3,519					2,691
Total revenues			247,720					246,481
OPERATING EXPENSES
Property operating expenses attributable to Real Estate			78,287					79,626
Property operating expenses of partnerships served by Asset Management business			9,195					9,198
Depreciation and amortization			92,548					87,168
General and administrative expenses			11,355					10,962
Other expenses, net			2,958					1,738
Total operating expenses			194,343					188,692
Operating income			53,377					57,789
Interest income			2,172					2,192
Interest expense			(47,795		)			(47,882		)
Other, net			224					465
Income before income taxes and gain on dispositions			7,978					12,564
Income tax benefit			37,388					4,985
Income before gain on dispositions			45,366					17,549
Gain (loss) on dispositions of real estate, inclusive of related income tax			50,324					(394		)
Net income			95,690					17,155
Noncontrolling interests:
Net income attributable to noncontrolling interests in consolidated real estate partnerships			(6,206		)			(951		)
Net income attributable to preferred noncontrolling interests in Aimco OP			(1,937		)			(1,949		)
Net income attributable to common noncontrolling interests in Aimco OP			(3,755		)			(557		)
Net income attributable to noncontrolling interests			(11,898		)			(3,457		)
Net income attributable to Aimco			83,792					13,698
Net income attributable to Aimco preferred stockholders			(2,148		)			(2,148		)
Net income attributable to participating securities			(119		)			(59		)
Net income attributable to Aimco common stockholders			$	81,525				$	11,491
Net income attributable to Aimco per common share – basic and diluted			$	0.52				$	0.07
Weighted average common shares outstanding – basic			156,609					156,259
Weighted average common shares outstanding – diluted			156,740					156,754

Consolidated Balance Sheets
(in thousands) (unaudited)
			March 31, 2018					December 31, 2017
Assets
Real estate			$	8,110,787				$	7,927,753
Accumulated depreciation			(2,596,457		)			(2,522,358		)
Net real estate			5,514,330					5,405,395
Cash and cash equivalents			51,894					60,498
Restricted cash			38,999					34,827
Goodwill			37,808					37,808
Other assets			333,344					234,931
Assets held for sale			—					17,959
Assets of partnerships served by Asset Management business [1]:
Real estate, net			220,408					224,873
Cash and cash equivalents			18,374					16,288
Restricted cash			29,764					30,928
Other assets			10,369					15,533
Total Assets			$	6,255,290				$	6,079,040
Liabilities and Equity
Non-recourse property debt secured by Aimco Real Estate communities			$	3,719,098				$	3,563,041
Debt issue costs			(18,119		)			(17,932		)
Non-recourse property debt, net			3,700,979					3,545,109
Term loan, net			249,729					249,501
Revolving credit facility borrowings			78,635					67,160
Accrued liabilities and other			207,202					200,540
Liabilities of partnerships served by Asset Management business [1]:
Non-recourse property debt, net			225,502					227,141
Accrued liabilities and other			17,404					19,812
Deferred income			11,814					12,487
Total Liabilities			4,491,265					4,321,750
Preferred noncontrolling interests in Aimco OP			101,378					101,537
Equity:
Perpetual preferred stock			125,000					125,000
Class A Common Stock			1,573					1,572
Additional paid-in capital			3,885,279					3,900,042
Accumulated other comprehensive income			3,544					3,603
Distributions in excess of earnings			(2,345,206		)			(2,367,073		)
Total Aimco equity			1,670,190					1,663,144
Noncontrolling interests in consolidated real estate partnerships			(2,755		)			(1,716		)
Common noncontrolling interests in Aimco OP			(4,788		)			(5,675		)
Total equity			1,662,647					1,655,753
Total liabilities and equity			$	6,255,290				$	6,079,040

[1]

In April 2018, Aimco announced the planned third quarter sale of the Asset Management business. The assets included under this heading will be sold and the liabilities will be assumed by the buyer as a result of the transaction.

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