Free Research Report as Apartment Investment and Management’s AFFO Rose 6%

LONDON, UK / ACCESSWIRE / June 11, 2018 / If you want access to our free earnings report on Apartment Investment and Management Co. (NYSE: AIV) (“Aimco”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AIV. The Company reported its first quarter fiscal 2018 operating and financial results on May 07, 2018. The Denver-based real estate investment trust (REIT) surpassed revenue estimates, while its funds from operations (FFO) were in-line with market estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Apartment Investment and Management most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=AIV

Earnings Highlights and Summary

For the three months ended March 31, 2018, Aimco recorded total revenues of $247.7 million compared to $246.5 million in Q1 2017. The Company’s revenue numbers topped analysts’ estimates of $243.7 million.

During Q1 2018, Aimco’s net income attributable to shareholders totaled $81.5 million, or $0.52 diluted share, compared to $11.5 million, or $0.07 per diluted share, in Q1 2017. The increase in net income was attributed 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.

For Q1 2018, Aimco’s pro-forma FFO increased 3% to $0.60 per diluted share on a y-o-y basis compared to $0.58 per diluted share in Q1 2017, matching Wall Street’s estimates of $0.60 per share. The Company’s adjusted funds from operations (AFFO) advanced 6% to $0.54 per share on a y-o-y basis in the reported quarter compared to $0.51 per share in the year earlier same quarter. The increase in pro-forma FFO per share y-o-y plus $0.01 in lower capital replacement spending due to fewer apartment homes increased AFFO per share by $0.03, or 6%.

Portfolio Updates

During Q1 2018, 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. The Company noted that initial move-ins have occurred and at the end of April 2018, 31% of the tower was pre-leased.

For Q1 2018, 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.

For its entire portfolio, Aimco’s average monthly revenue per apartment home was $2,052 in Q1 2018, reflecting a 7% increase on a y-o-y basis, driven by a growth in same-store revenues, as well as Aimco’s Q2 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.

During Q1 2018, Aimco purchased Bent Tree Apartments, which is a 748-apartment home community in Fairfax County, Virginia, for $160 million. The community is expected to achieve a year one NOI cap rate of 5.6%. Before consideration of capital enhancement opportunities, new lease rents were 4% higher than expiring leases, compared to new lease rents that have decreased elsewhere in northern Virginia.

For Q1 2018, Aimco sold 3 apartment communities with 513 apartment homes for a gain of approximately $51 million, and gross proceeds of $72 million, resulting in $65 million in net proceeds to Aimco. 2 of these communities are located in southern Virginia and one is located in suburban Maryland. The 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 Q1 2018, Aimco completed the 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.

Balance Sheet

During Q1 2018, 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.

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’s exposure to increasing short-term interest rates to less than 7% of Aimco’s total leverage.

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.

Stock Performance Snapshot

June 08, 2018 – At Friday’s closing bell, Apartment Investment and Management’s stock was marginally up 0.68%, ending the trading session at $41.70.

Volume traded for the day: 640.26 thousand shares.

Stock performance in the last month – up 1.16%; and previous three-month period – up 4.28%

After last Friday’s close, Apartment Investment and Management’s market cap was at $6.54 billion.

Price to Earnings (P/E) ratio was at 613.24.

The stock has a dividend yield of 3.65%.

The stock is part of the Financial sector, categorized under the REIT – Residential industry. This sector was up 0.4% at the end of the session.

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