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Dec 31, 2023
AIMCO Q4 2023 Earnings Report
Aimco reported fourth quarter results, established 2024 guidance, and provided highlights on recent and planned activities.
Key Takeaways
Aimco's fourth quarter results for 2023 showed increased revenue, expenses, and NOI from Stabilized Operating Properties, driven by higher average monthly revenue per apartment home and occupancy rates. The company also made progress in development projects and monetized assets. Aimco acquired 1.4 million shares of its common stock during the fourth quarter 2023 at an average cost of $6.75 per share.
Net loss attributable to common stockholders per share was $(1.07) for the quarter, primarily due to a non-cash impairment charge related to the Parkmerced mezzanine investment.
Fourth Quarter 2023 revenue, expenses, and NOI from Aimco’s Stabilized Operating Properties increased 6.8%, 5.6%, and 7.2%, respectively, year-over-year.
Average monthly revenue per apartment home increased by 6.7% to $2,343.
Aimco acquired 1.4 million shares of its common stock during the fourth quarter 2023 at an average cost of $6.75 per share.
AIMCO
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AIMCO Revenue by Segment
Revenue by Segment
Stabilized Operating Revenue
CapyFin.com Forward Guidance
Aimco expects revenue growth in 2024 to be driven primarily from leases transacted in 2023 and expenses to be elevated due to increases in real estate taxes, including favorable appeals received in 2023 for prior periods.
Positive Outlook
- Complete the construction and continue to lease up Oak Shore with NOI stabilization projected to occur in 2025
- Complete construction and continue to lease up Upton Place with NOI stabilization projected to occur in 2026
- Complete construction and commence lease-up of Strathmore Square with NOI stabilization projected to occur in 2026
- Begin construction activities on up to one new project, assuming market conditions, construction costs, and pricing and terms for third party financing are acceptable and with limited additional Aimco equity.
- Aimco plans to fully market its Brickell Assemblage for sale and, if pricing and terms are acceptable, Aimco expects to complete the transaction by year end.
Challenges Ahead
- There can be no assurance that the ongoing review will result in any particular transaction or transactions or other strategic changes or outcomes and the timing of any such event is similarly uncertain.
- Aimco expects expenses to be elevated in 2024 primarily from increases in real estate taxes in part due to favorable appeals in 2023 for prior periods.
- The forward-looking statements in this document include, without limitation, statements regarding our future plans and goals, including our pipeline investments and projects, our plans to eliminate certain near term debt maturities, our estimated value creation and potential, our timing, scheduling and budgeting, projections regarding revenue and expense growth, our plans to form joint ventures, our plans for new acquisitions or dispositions, our strategic partnerships and value added therefrom, the potential for adverse economic and geopolitical conditions, which negatively impact our operations, including on our ability to maintain current or meet projected occupancy, rental rate and property operating results; the effect of acquisitions, dispositions, developments, and redevelopments; our ability to meet budgeted costs and timelines, and achieve budgeted rental rates related to our development and redevelopment investments; expectations regarding sales of our apartment communities and the use of proceeds thereof; the availability and cost of corporate debt; and our ability to comply with debt covenants, including financial coverage ratios.
- We caution investors not to place undue reliance on any such forward-looking statements.
- These forward-looking statements are based on management’s judgment as of this date, which is subject to risks and uncertainties that could cause actual results to differ materially from our expectations