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Mar 31, 2022
AIMCO Q1 2022 Earnings Report
Announced first quarter results for 2022 and provided highlights on recent activities.
Key Takeaways
Aimco had a solid first quarter with strong results across business segments, development planning and construction activities remaining on track, and newly delivered apartment homes leasing quickly at higher rental rates. The acquisitions team added four million square feet of phased development opportunities, and the national portfolio of stabilized apartment properties remains highly occupied with strong revenue growth.
Net income attributable to common stockholders per share, on a fully dilutive basis, was $0.05.
The North Tower at Flamingo Point in Miami Beach, Florida reached stabilized occupancy in April, more than six months ahead of schedule and at rental rates more than 25% ahead of underwriting.
Aimco secured two new development pipeline assets in South Florida with the potential to construct approximately four million square feet of phased, mixed-use developments.
First Quarter 2022 Revenue and NOI from Aimco’s Stabilized Operating Properties were up 9.4% and 14.3%, respectively, year over year, with occupancy of 98.5%, up 90 basis points year over year.
AIMCO
AIMCO
Forward Guidance
Aimco plans to restructure nearly $1 billion of debt, including $534 million of notes payable to AIR, funded with proceeds from (i) long-dated, fixed-rate, non-recourse financing, (ii) the disposition of one stabilized asset, and (iii) the unwind of the initial AIR leases by early 2023.
Positive Outlook
- Aimco has rate-locked $555 million of property level loans with a weighted average term of 9.4 years and a weighted average fixed interest rate, net of monetized swaption proceeds, of 4.37%.
- Aimco estimates $320 million of proceeds, net of the repayment of existing property debt balances and prepayment penalties.
- In early May, Aimco sold Pathfinder Village in Fremont, California for $127 million, ~8% more than in Aimco's estimated Net Asset Value calculation published in October 2021.
- Proceeds, net of the repayment of the existing property debt and transaction related costs, were $70 million.
- Flamingo Point North Tower reached stabilized occupancy in April, allowing for lease termination and satisfaction of the $150 million construction loan by early 2023.
Challenges Ahead
- Aimco expects to incur approximately $24 million in associated spread maintenance costs for the accelerated repayment of $534 million in notes, which carry a rate of 5.2%, prior to their maturity in January 2024.
- The increase in Other expenses, net variance is primarily due to the valuation change at our closely held technology investments funds.
- Adjusted EBITDAre decreased in the first quarter due primarily to the change in valuation of our real estate technology investments and $7.8 million of lower non-recurring fee revenue partially offset with higher property net operating income.
- The Fremont on the Anschutz Medical Campus in Aurora, Colorado was 92% leased as of April 30, 2022, and is expected to reach stabilized occupancy in the third quarter of 2022.
- Prism in Cambridge, Massachusetts, and 707 Leahy in Redwood City, California, reached stabilized occupancy in the second half of 2021.