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Mar 31, 2023
AIMCO Q1 2023 Earnings Report
Announced first quarter results for 2023 and provided highlights on recent activities.
Key Takeaways
Aimco reported strong first quarter results with revenue and NOI up 11.4% and 13.1% respectively over the prior year, driven by solid performance in stabilized operating properties and progress in development projects.
Stabilized operating properties saw revenue increase by 11.4%, expenses by 7.6%, and NOI by 13.1% year-over-year.
The Hamilton in Miami, Florida, was completed and is 90% leased at rental rates above initial projections.
The company invested approximately $6 million in planning and entitlement of future development opportunities.
Aimco repurchased 2.0 million shares of its common stock at a weighted average price of $7.27 per share in the first quarter.
AIMCO
AIMCO
Forward Guidance
Aimco provided its 2023 full year forecast, including projections for net income (loss) per share, direct project costs, and operating property performance.
Positive Outlook
- Revenue growth before utility reimbursements is expected to be between 5.0% and 7.0%.
- Net Operating Income growth is projected to be between 5.0% and 7.0%.
- The company anticipates dispositions of $220 million.
- Active projects remain on budget and on track to produce more than $55 million of annual NOI upon their stabilization.
- Aimco maintains considerable optionality in regard to its development pipeline given the ability to extract value, and maximize risk adjusted returns, at various points in the pre-development process.
Challenges Ahead
- Net income (loss) per share – diluted is forecasted to be between $(0.33) and $(0.23).
- Planning Costs are expected to be between $20 million and $25 million.
- General and Administrative expenses are projected to be between $33 million and $35 million.
- Interest Expense, net of capitalization is expected to be between $38 million and $41 million.
- Operating Expense Growth, net of utility reimbursements is projected to be between 5.25% and 7.25%.