Aimco Reports Fourth Quarter 2019 Results; Establishes 2020 Guidance

Apartment Investment and Management Company (“Aimco”) (NYSE: AIV) announced today fourth quarter results for 2019.

Chairman and Chief Executive Officer Terry Considine comments: “Aimco had a solid fourth quarter, completing a good year. Full year 2019 Same Store revenue and NOI were 50 and 70 basis points, respectively, better than the original midpoint of guidance, and controllable operating expenses were flat, year-over-year. With December average daily occupancy of 97.9%, our properties are well occupied, providing an excellent starting point to 2020.”

“In redevelopment, Aimco continued to upgrade properties throughout its portfolio and is ‘on track’ with its major projects in Boulder, Miami Beach, and Redwood City.”

“In portfolio management, we continue to search for accretive investment opportunities in fully-priced markets. In fourth quarter, we closed one such investment, making a mezzanine loan to the partnership that owns Parkmerced Apartments in San Francisco while acquiring a ten-year option to acquire a 30% interest in the partnership which owns both 3,165 rent-control apartment homes and entitled land to develop 4,093 market rate apartment homes. The option provides Aimco with the risk-free opportunity to participate in one of the most dynamic multi-family markets in the world, while the loan provides a safe and immediately accretive return on investment.”

Chief Financial Officer Paul Beldin adds: “Fourth quarter 2019 Pro forma FFO of $0.65 per share was $0.01 ahead of the midpoint of guidance primarily from (i) better than anticipated Same Store operations and (ii) the earnings contribution from the Parkmerced loan. AFFO per share of $0.58 met the midpoint of guidance with increased investment in maintaining our properties offsetting the outperformance in Pro forma FFO.”

“In 2020, we expect Same Store revenue growth of 3.0% to 3.8%, and Same Store expense growth of 1.6% to 2.4%, resulting in Same Store NOI growth of 3.2% to 4.6%. At their midpoints, these expectations are consistent with our 2020 Outlook, published on September 30, 2019. We also expect 2020 Aimco AFFO per share to be $2.34 to $2.44, representing 9% growth at the midpoint, consistent with our December forecast of 8% to 10% 2020 AFFO growth.”

Financial Results: Fourth Quarter Pro forma FFO & AFFO Per Share grew by 5% & 12%, respectively

In July 2018, Aimco sold its Asset Management business, accepting near-term earnings dilution as the price of an increased long-term growth rate. In 2019, Aimco overcame the resulting earnings headwinds to achieve 2% Pro forma FFO and AFFO per share growth. In the fourth quarter, the first without the year-over-year comparison including the Asset Management business, Aimco Pro forma FFO and AFFO per share increased at 5% and 12%, respectively.

		FOURTH QUARTER												FULL YEAR
(all items per common share - diluted)		2019				2018				Variance				2019				2018				Variance
Net income		$	0.90			$	0.04			nm				$	3.15			$	4.34				(27	%)
Nareit Funds From Operations (FFO)		$	0.59			$	0.64				(8	%)		$	2.37			$	2.63				(10	%)
Pro forma adjustments, net*		$	0.06			$	(0.02	)		nm				$	0.13			$	(0.18	)		nm
Pro forma Funds From Operations (Pro forma FFO)		$	0.65			$	0.62				5	%		$	2.50			$	2.45				2	%
Deduct Capital Replacements		$	(0.07	)		$	(0.10	)			(30	%)		$	(0.30	)		$	(0.29	)			3	%
Adjusted Funds From Operations (AFFO)		$	0.58			$	0.52				12	%		$	2.20			$	2.16				2	%
* See Supplemental Schedule 1 for a detailed list of Pro forma adjustments to FFO.

Net Income (per diluted common share) – Year-over-year, fourth quarter net income increased due primarily to higher gains from dispositions.

Pro forma FFO (per pro forma diluted common share) – Aimco’s fourth quarter Pro forma FFO per share increased $0.03 year-over-year due primarily to a $0.02 contribution from Same Store Property Net Operating Income, driven by a 3.3% increase in revenue, offset partially by a 4.4% increase in expenses, resulting in growth of 2.9%.

Adjusted Funds from Operations (per pro forma diluted common share) – Aimco’s fourth quarter AFFO per share increased $0.06 year-over-year due to the $0.03 increase in Pro forma FFO per share and $0.03 due to timing of Capital Replacement spending in 2018.

Operating Results: Same Store NOI: Fourth Quarter Up 2.9%; Full Year Up 4.3%

	FOURTH QUARTER					FULL YEAR
	Year-over-Year			Sequential		Year-over-Year
	2019	2018	Variance	3rd Qtr.	Variance	2019	2018	Variance
Average Rent per Apartment Home	$2,128	$2,065	3.1%	$2,119	0.4%	$2,104	$2,038	3.2%
Other Income per Apartment Home	127	128	(0.8%)	149	(14.8%)	135	132	2.3%
Average Revenue per Apartment Home	$2,255	$2,193	2.8%	$2,268	(0.6%)	$2,239	$2,170	3.2%
Average Daily Occupancy	97.4%	97.0%	0.4%	96.9%	0.5%	97.1%	96.5%	0.6%
$ in Millions
Revenue, before utility reimbursements	$174.8	$169.2	3.3%	$174.7	—%	$691.4	$666.0	3.8%
Expenses, net of utility reimbursements	44.0	42.2	4.4%	46.7	(5.6%)	181.8	177.5	2.4%
NOI	$130.8	$127.0	2.9%	$128.0	2.1%	$509.6	$488.5	4.3%

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 as either 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.

2019	1st Qtr.			2nd Qtr.			3rd Qtr.			Oct			Nov			Dec			4th Qtr.			FULL YEAR
Renewal rent increases		5.2	%		5.0	%		4.6	%		5.1	%		5.2	%		4.7	%		5.0	%		4.9	%
New lease rent increases		0.8	%		2.0	%		2.5	%		1.0	%		0.8	%		—	%		0.7	%		1.9	%
Weighted average rent increases		2.9	%		3.6	%		3.6	%		3.1	%		2.1	%		1.1	%		2.4	%		3.4	%
Average Daily Occupancy		97.0	%		96.9	%		96.8	%		97.1	%		97.4	%		97.9	%		97.4	%		97.1	%

New leases were approximately 75% of Aimco total leasing activity in November and December, contributing to a 50 basis point increase in occupancy during these months.

Redevelopment and Development

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 or in connection with redevelopment of an existing apartment community. Aimco invests to earn leverage-neutral 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 generally favors redevelopment because it permits adjustment of the scope and timing of spending to align with changing market conditions and customer preferences.

During the fourth quarter, Aimco invested $58 million in redevelopment and development. Aimco continued phased redevelopment activities at Bay Parc in Miami, the full redevelopment of the North Tower at Flamingo Point in Miami Beach, Florida, and 707 Leahy in Redwood City, California, and ground-up construction at Parc Mosaic in Boulder, Colorado, The Fremont on the Anschutz Medical Campus in Aurora, Colorado, and Eldridge Townhomes adjacent to its Elm Creek apartment community in Elmhurst, Illinois.

At Parc Mosaic, Aimco completed three buildings in 2019, the first in August, the second in October, and the third in late December. As of December 31, 2019, the first two buildings were 81% leased and in January, Aimco welcomed the first residents of the third building. The fourth, and final, building was delayed slightly and is now expected to be finished later in the first quarter. Notwithstanding this delay, Aimco expects to achieve stabilized occupancy in fourth quarter 2020, consistent with prior projections.

At 707 Leahy, Aimco completed construction on the first building, containing twelve apartment homes, in January. Construction on the remaining homes is on schedule to be complete in the second quarter.

At Flamingo Point, Aimco completed construction on the entryway, retail, and amenities in the fourth quarter and continued the full renovation of the North Tower.

When possible, Aimco prefers redevelopments that can be completed one apartment home at a time, when that home is vacated and available for renovation, or one floor at a time, thereby limiting the number of down homes and lease-up risk. Aimco currently has six smaller phase projects ongoing in its portfolio. During the fourth quarter, Aimco completed 21 apartment homes, with another 21 homes under construction at quarter end. In 2019, at these projects, Aimco completed 150 apartment homes.

During the fourth quarter, Aimco leased 77 redeveloped or newly developed apartment homes. At December 31, 2019, Aimco’s exposure to lease-up at active redevelopments and developments was 866 apartment homes, or less than 3% of Aimco’s homes.

Portfolio Management

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

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, some 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 significantly increases the quality and expected growth rate of its portfolio.

	FOURTH QUARTER
	2019	2018	Variance
Apartment Communities	124	135	(11)
Apartment Homes	32,839	36,549	(3,710)
Average Revenue per Apartment Home	$2,272	$2,126	7%
Portfolio Average Rents as a Percentage of Local Market Average Rents	113%	113%	—%
Percentage A (4Q 2019 Average Revenue per Apartment Home $2,943)	54%	51%	3%
Percentage B (4Q 2019 Average Revenue per Apartment Home $2,006)	29%	33%	(4%)
Percentage C+ (4Q 2019 Average Revenue per Apartment Home $1,782)	17%	16%	1%
NOI Margin	74%	73%	1%
Free Cash Flow Margin	69%	69%	—%

Fourth Quarter Portfolio – For its entire portfolio, Aimco’s average monthly revenue per apartment home was $2,272 for fourth quarter 2019, a 7% increase compared to fourth quarter 2018. This increase is due to year-over-year growth in Same Store revenue, as well as Aimco’s acquisition activities, lease-up of redevelopment communities, and sales of communities with average monthly revenues per apartment home lower than those of the retained portfolio.

In 2019, Aimco reallocated capital from slower-growth markets such as Chicago and reinvested the proceeds in higher-growth markets such as Miami, Denver, and Boston.

Acquisitions – Aimco follows a disciplined paired trade policy in making investments. Aimco evaluates potential acquisitions seeking Free Cash Flow internal rates of returns higher than those of the properties being sold. Aimco prefers well-located real estate where land is a significant percentage of total value and provides potential upside from development or redevelopment.

In 2019, Aimco acquired three properties: One Ardmore in Ardmore, Pennsylvania; Prism (50 Rogers), under construction in Cambridge, Massachusetts; and 1001 Brickell Bay Drive in Miami, Florida. Together, these acquisitions have an expected 9% weighted-average Free Cash Flow internal rate of return, approximately 300 basis points better than expected from the properties being sold in paired trades to fund the acquisitions.

Mezzanine Loan Investment – As announced in December 2019, Aimco made a five-year, $275 million mezzanine loan at a 10% annual rate to the partnership owning Parkmerced Apartments. The loan is secured by a second-priority deed of trust. Aimco simultaneously acquired a ten-year option to acquire a 30% interest in the partnership at an exercise price of $1 million, increased by 30% of future capital spending to progress development and redevelopment of Parkmerced Apartments.

Parkmerced Apartments is a 152-acre site in the southwest corner of San Francisco, currently improved with 3,221 apartment homes completed shortly before and after World War II. These apartment homes are subject to City of San Francisco rent control. The development of the site is governed by a development agreement that allows for 8,900 total residential units, with the new units exempt from City of San Francisco rent control. The partnership, which is the Aimco borrower and in which Aimco has the option to acquire 30% ownership, owns 3,165 of the existing rent-controlled apartment homes as well as the vested right to develop 4,093 of the new market-rate homes.

Dispositions – In the fourth quarter, Aimco sold four apartment communities with 991 apartment homes, generating net proceeds of $201 million.

In 2019, Aimco sold twelve apartment communities, generating net proceeds of $619 million used to fund acquisitions, redevelopment, development, the repurchase of Aimco shares in the fourth quarter of 2018, and other capital investments. Aimco delayed approximately $300 million of year-end and January sales. While this delay temporarily increased leverage, we expect a better execution as the transaction market remains deep, liquid, and attractively priced.

Balance Sheet

Aimco Leverage

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

Aimco leverage includes the Aimco share of long-term, non-recourse, property debt encumbering apartment communities, outstanding borrowings under the Aimco revolving credit facility, outstanding Preferred Equity, and redeemable noncontrolling interests in a real estate partnership.

		AS OF DECEMBER 31, 2019
$ in Millions		Amount				% of Total				Weighted Avg. Maturity (Yrs.)
Aimco share of long-term, non-recourse property debt		$	4,244				92	%			7.5
Outstanding borrowings on revolving credit facility			275				6	%			2.1
Preferred Equity*			97				2	%			10.0
Redeemable noncontrolling interests in a real estate partnership**			5				—	%			2.8
Total Leverage		$	4,621				100	%			7.3
Cash, restricted cash and investments in securitization trust assets			(271	)
Net Leverage		$	4,350

*		Aimco Preferred Equity is redeemable at the holder’s option. Aimco has computed the weighted-average maturity of its total leverage assuming a 10-year maturity for its Preferred Equity.
**		During the year ended December 31, 2019, Aimco acquired a 95% interest in 1001 Brickell Bay Drive. The remaining 5% is held by an outside partner with a put option that allows the holder, at his option, to redeem his interest for cash after a three-year period. The term to maturity reflects the time remaining until the put expires.

During the fourth quarter, Aimco borrowed $105 million in a non-recourse, fixed-rate property loan with interest at 3.21% and a term to maturity of 11 years.

Leverage Ratios

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

Proportionate Debt to Adjusted EBITDAre		7.4x
Proportionate Debt and Preferred Equity to Adjusted EBITDAre		7.6x
Adjusted EBITDAre to Adjusted Interest Expense		3.7x
Adjusted EBITDAre to Adjusted Interest Expense and Preferred Dividends		3.5x

The sales delay mentioned above, increased Aimco leverage to EBITDAre ratios by 0.3x at year end 2019. Aimco expects a gradual decline in leverage to EBITDAre ratios throughout 2020, reaching approximately 6.4x and 6.5x, respectively, at year-end. In future years, earnings growth from completed redevelopments will increase EBITDAre and further reduce Aimco leverage ratios.

Liquidity

Aimco uses its credit facility primarily for working capital and other short-term purposes and to secure letters of credit. At December 31, 2019, Aimco held cash and restricted cash of $177 million and had the capacity to borrow up to $518 million under its revolving credit facility, after consideration of $7 million of letters of credit backed by the facility.

Aimco also manages its financial flexibility by maintaining an investment grade rating and holding apartment communities that are unencumbered by property debt. At December 31, 2019, Aimco held unencumbered apartment communities with an estimated fair market value of approximately $2.4 billion.

Equity Capital Activities

On January 28, 2020, the Aimco Board of Directors declared quarterly cash dividends of $0.41 per share of Class A Common Stock, representing an increase of 5% compared to the regular quarterly dividends paid in 2019. This amount is payable on February 28, 2020, to stockholders of record on February 14, 2020.

2020 Outlook

The Aimco strategy remains unchanged: focusing on excellence in property operations; value creation through redevelopment and development; portfolio management based on a disciplined approach to capital recycling; a safe, flexible balance sheet with abundant liquidity; and a business model favoring sustainable long-term growth executed by a stable, performance-oriented, and collaborative team.

Aimco expects 2020 Pro forma FFO per share in the range of $2.62 to $2.72 with AFFO per share of $2.34 to $2.44. At the guidance range midpoint, Aimco projected 2020 AFFO growth of $0.19, or 9% reflects:

• $0.13 per share growth from its Same Store portfolio, based on the first quarter 2020 population;
• $0.05 per share net contribution from its investments, resulting from:
  • $0.06 net contribution from the Parkmerced mezzanine loan,
  • $0.04 incremental AFFO from Redevelopment and Development communities, and
  • ($0.05) dilution from property sales funding Redevelopment and Development and other Aimco investments in real estate; and
• $0.01 per share contribution from other items, net.

The $0.04 contribution from Redevelopment and Development communities is expected to increase another $0.18 per share, net of incremental capital costs, as these properties are stabilized over the next four years.

($ Amounts represent Aimco Share)		FULL YEAR 2020				FULL YEAR 2019
Net Income per share		$3.07 to $3.59				$3.15
Pro forma FFO per share		$2.62 to $2.72				$2.50
AFFO per share		$2.34 to $2.44				$2.20
Select Components of Nareit FFO
Same Store Operating Measures
Revenue change compared to prior year		3.00% to 3.80%				3.8%
Expense change compared to prior year		1.60% to 2.40%				2.4%
NOI change compared to prior year		3.20% to 4.60%				4.3%
Other Earnings
Tax Benefit		$9M to $11M				$13M
Offsite Costs
Property management expenses [1]		$19M				$20M
General and administrative expenses		$44M				$44M
Investment management expenses [2]		$6M				$7M
Capital Investments
Redevelopment/Development		$250M to $300M				$230M
Capital Enhancements		$50M to $70M				$88M
Transactions
Property dispositions		$900M to $1,000M				$696M
Property acquisitions [3]		—				$223M
Balance Sheet
Proportionate Debt to Adjusted EBITDAre [4]		~6.4x				7.4x
Proportionate Debt and Preferred Equity to Adjusted EBITDAre [4]		~6.5x				7.6x

[1]		Property management expenses for the year ended December 31, 2019, are presented net of approximately $1.0 million of restructuring costs that Aimco incurred for the relocation of its office functions from its Indianapolis office to Denver, which have been excluded from Pro forma FFO.
[2]		Investment management expenses includes costs related to transactions and new business pursuits. Costs for the year ended December 31, 2019, previously included in multiple line items in the statements of operations, are included in investment management expenses above for comparability.
[3]		Aimco does not predict or guide to acquisitions. Aimco monitors potential transactions and funds acquisitions pursuant to its strict paired trade discipline.
[4]		Aimco delayed $300 million of year-end and January sales. The sales delay increased Aimco leverage to EBITDAre ratios by 0.3x at year end 2019. Aimco expects a gradual decline in leverage to EBITDAre ratios throughout 2020, reaching approximately 6.4x and 6.5x, respectively, at year-end. In future years, earnings growth from completed redevelopments will increase EBITDAre and further reduce Aimco leverage ratios.

($ Amounts represent Aimco Share)		FIRST QUARTER 2020
Net income per share		$1.90 to $2.00
Pro forma FFO per share		$0.64 to $0.68
AFFO per share		$0.58 to $0.62

Earnings Conference Call Information

Live Conference Call:	Conference Call Replay:
Friday, January 31, 2020 at 1:00 p.m. ET	Replay available until April 30, 2020
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: 3784299	Passcode: 10137927
Live webcast and replay: investors.aimco.com

Supplemental Information

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

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, or 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 124 apartment communities in 17 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 first quarter and full year 2020 results, including but not limited to: Nareit FFO, Pro forma FFO and selected components thereof; AFFO; Aimco redevelopment and 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 redevelopment and development investments; expectations regarding Aimco sales of apartment communities and the use of proceeds thereof; 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, 2018, 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								Year Ended
		December 31,								December 31,
		2019				2018				2019				2018
REVENUES
Rental and other property revenues attributable to real estate		$	230,032			$	232,022			$	914,294			$	922,593
Asset Management business rental and tax credit revenues			—				—				—				49,817
Total revenues			230,032				232,022				914,294				972,410
OPERATING EXPENSES
Property operating expenses attributable to real estate			78,768				75,329				311,221				307,901
Property operating expenses of partnerships served by Asset Management business			—				56				—				20,921
Depreciation and amortization			97,144				91,347				380,171				377,786
General and administrative expenses			12,723				9,074				47,037				46,268
Other expenses (income), net			4,769				(9,848	)			19,092				3,778
Total operating expenses			193,404				165,958				757,521				756,654
Interest income			2,809				3,146				11,424				10,914
Interest expense			(45,846	)			(57,441	)			(168,807	)			(200,634	)
Gain (loss) on dispositions of real estate and the Asset Management business			146,239				(2,274	)			503,168				677,463
Mezzanine investment income, net			1,531				—				1,531				—
Income (loss) from unconsolidated real estate partnerships			212				(64	)			803				77
Income before income tax benefit			141,573				9,431				504,892				703,576
Income tax benefit			1,193				409				3,135				13,027
Net income			142,766				9,840				508,027				716,603
Noncontrolling interests:
Net income attributable to noncontrolling interests in consolidated real estate partnerships			(84	)			(175	)			(187	)			(8,220	)
Net income attributable to preferred noncontrolling interests in Aimco OP			(1,908	)			(1,934	)			(7,708	)			(7,739	)
Net income attributable to common noncontrolling interests in Aimco OP			(7,262	)			(324	)			(26,049	)			(34,417	)
Net income attributable to noncontrolling interests			(9,254	)			(2,433	)			(33,944	)			(50,376	)
Net income attributable to Aimco			133,512				7,407				474,083				666,227
Net income attributable to Aimco preferred stockholders			—				(2,148	)			(7,335	)			(8,593	)
Net income attributable to participating securities			(173	)			(33	)			(604	)			(1,037	)
Net income attributable to Aimco common stockholders		$	133,339			$	5,226			$	466,144			$	656,597
Net income attributable to Aimco per common share – basic		$	0.90			$	0.04			$	3.16			$	4.34
Net income attributable to Aimco per common share – diluted		$	0.90			$	0.04			$	3.15			$	4.34
Weighted-average common shares outstanding – basic [1]			148,449				148,800				147,718				151,152
Weighted-average common shares outstanding – diluted [1]			148,700				149,058				147,944				151,334

[1]

2018 basic and diluted weighted average common shares outstanding have been restated to reflect the impact of the February 20, 2019, reverse stock split. As previously reported, basic and diluted weighted average common shares outstanding were 153,441 and 153,705, respectively, for the three months ended December 31, 2018, and were 155,866 and 156,053, respectively, for the year ended December 31, 2018.

Consolidated Balance Sheets
(in thousands) (unaudited)
		December 31,				December 31,
		2019				2018
Assets
Real estate		$	8,737,591			$	8,308,590
Accumulated depreciation			(2,718,284	)			(2,585,115	)
Net real estate			6,019,307				5,723,475
Cash and cash equivalents			142,902				36,858
Restricted cash			34,800				35,737
Mezzanine investment			280,258				—
Goodwill			37,808				37,808
Other assets			317,811				313,733
Assets held for sale			—				42,393
Total Assets		$	6,832,886			$	6,190,004
Liabilities and Equity
Non-recourse property debt		$	4,251,339			$	3,937,000
Debt issue costs			(20,749	)			(21,695	)
Non-recourse property debt, net			4,230,590				3,915,305
Revolving credit facility borrowings			275,000				160,360
Accrued liabilities and other			364,721				226,230
Liabilities related to assets held for sale			—				23,177
Total Liabilities			4,870,311				4,325,072
Preferred noncontrolling interests in Aimco OP			97,064				101,291
Redeemable noncontrolling interests in consolidated real estate partnership			4,716				—
Equity:
Perpetual preferred stock			—				125,000
Class A Common Stock			1,489				1,446
Additional paid-in capital			3,497,367				3,515,686
Accumulated other comprehensive income			4,195				4,794
Distributions in excess of earnings			(1,722,402	)			(1,947,507	)
Total Aimco equity			1,780,649				1,699,419
Noncontrolling interests in consolidated real estate partnerships			(3,296	)			(2,967	)
Common noncontrolling interests in Aimco OP			83,442				67,189
Total Equity			1,860,795				1,763,641
Total Liabilities and Equity		$	6,832,886			$	6,190,004

 

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