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Sep 30, 2020
AIMCO Q3 2020 Earnings Report
AIMCO reported third quarter results for 2020, facing challenges from the pandemic and achieving successes through strategic portfolio management.
Key Takeaways
AIMCO's third quarter pro forma FFO was $0.61 per share, a 5% decrease year-over-year, impacted by lower occupancy and COVID-related costs, but offset by higher income from the Parkmerced mezzanine loan and lower offsite costs. The company sold a 39% interest in a $2.4 billion California properties portfolio, reducing financial leverage by $1B. Aimco also announced a plan to divide the business between two public entities, AIR and new Aimco, to reduce financial and execution risk and increase FFO per share.
Third quarter pro forma FFO of $0.61 per share was down 5% year-over-year.
Same Store Residential Net Rental Income was down 2.5%, but up 0.6% in stable, mostly suburban markets.
Aimco sold a 39% interest in a $2.4 billion portfolio of California properties, enabling a $1B reduction in financial leverage.
Residential rent collection remained strong, with 98.1% of residential revenue recognized, though bad debt increased due to COVID-related impacts and local regulations.
AIMCO
AIMCO
Forward Guidance
The report provides no specific forward guidance on revenue, EPS, or other financial metrics. It does state that the company expects the trend of steady improvement seen during the third quarter to continue through the fourth quarter and into the new year.