Loading...
•
Dec 31, 2022
AIMCO Q4 2022 Earnings Report
AIMCO's financial performance was mixed, with a net loss per share due to a non-cash impairment charge, but stabilized operating properties showed strong revenue and NOI growth.
Key Takeaways
AIMCO reported a net loss per share of $(1.34) for Q4 2022, primarily due to a non-cash impairment charge related to the Parkmerced mezzanine investment. However, revenue and NOI from stabilized operating properties increased by 9.5% and 10.0%, respectively. The company continued to invest in development projects and repurchased shares.
Net loss per share was $(1.34) due to a non-cash impairment charge.
Revenue from stabilized operating properties increased by 9.5% year-over-year.
NOI from stabilized operating properties increased by 10.0% year-over-year.
Average revenue per apartment home was $2,170, up $215 year-over-year.
AIMCO
AIMCO
Forward Guidance
Aimco provided its 2023 outlook, forecasting net loss per share between $(0.33) and $(0.23). Revenue growth for operating properties is expected to be between 5.0% and 7.0%, with NOI growth also between 5.0% and 7.0%.
Positive Outlook
- Complete the construction and lease up of The Hamilton with NOI stabilization projected to occur in 2024
- Deliver initial single family rental homes and begin the lease-up of Oak Shore with NOI stabilization projected to occur in 2025
- Deliver initial apartment homes and begin the lease-up of Upton Place with NOI stabilization projected to occur in 2026
- Complete construction and welcome its first guests to The Benson Hotel and Faculty Club with NOI stabilization projected to occur in 2026
- Aimco will continue to repurchase shares when prices are significantly below our internal estimated net asset value.
Challenges Ahead
- Net income (loss) per share – diluted $(0.33) - $(0.23)
- Operating Expense Growth, net of utility reimbursements 5.25% - 7.25%
- Interest Expense, net of capitalization $39 - $42 million
- Aimco is planning to exit the California market over time
- There can be no assurance that the ongoing review will result in any transaction or other change or outcome.