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Dec 31, 2024
AIMCO Q4 2024 Earnings Report
Aimco reported its fourth quarter and full year 2024 results, including a net loss per share of $(0.08) for the quarter and $(0.75) for the full year, and provided 2025 guidance.
Key Takeaways
Aimco delivered strong operational results in 2024, with its Stabilized Operating portfolio generating $25.9 million in NOI for Q4, up 4.5% year-over-year, and $99.0 million for the full year. The company also made significant progress in development completions and strategic dispositions, including the sale of The Hamilton and a partial interest in 3333 Biscayne Boulevard for a combined $204 million, and entered into an agreement to sell the Brickell Assemblage for $520 million.
Net loss attributable to common stockholders per share was $(0.08) for Q4 2024 and $(0.75) for FY 2024.
Stabilized Operating Properties NOI increased 4.5% year-over-year to $25.9 million in Q4 2024 and $99.0 million for FY 2024.
Aimco completed construction on three multifamily assets, adding 933 residential units and over 100K sq ft of commercial space, with total direct costs approximately $10 million lower than projected.
The company sold The Hamilton and a partial ownership interest in 3333 Biscayne Boulevard for a combined $204 million, generating approximately $90 million in net proceeds, and entered into a binding agreement to sell the Brickell Assemblage for $520 million.
AIMCO
AIMCO
AIMCO Revenue by Segment
Revenue by Segment
Stabilized Operating Revenue
CapyFin.com Forward Guidance
Aimco expects continued strong performance in 2025, with revenue growth in its Stabilized Operating portfolio projected between 2.5% and 3.5%, and NOI growth between 1.0% and 3.0%. The company plans to complete lease-up of three multifamily projects and advance construction on its 34th Street project in Miami, with no new construction starts anticipated in 2025. Aimco also expects to close the sale of the Brickell Assemblage, generating approximately $300 million in net proceeds, with the majority intended to be returned to stockholders.
Positive Outlook
- Stabilized Operating portfolio revenue growth projected between 2.5% and 3.5% in 2025.
- Net Operating Income (NOI) growth for Stabilized Operating portfolio projected between 1.0% and 3.0% in 2025.
- Expected completion of lease-up for three multifamily projects, aiming for stabilization by year-end 2025.
- Anticipated closing of the Brickell Assemblage sale, expected to yield approximately $300 million in net proceeds.
- No new construction starts planned for 2025, focusing on existing projects and pipeline advancement.
Challenges Ahead
- Operating expenses are expected to increase between 5.0% and 6.0% in 2025, primarily due to tri-annual real estate tax reassessments.
- Residential occupancy is projected to be flat year-over-year, with a -40 bps impact from commercial space turnover.
- Interest expense, net of capitalization, is expected to increase to $63-$65 million in 2025 from $57 million in 2024.
- The company is exploring additional strategic alternatives, which may introduce uncertainty regarding future structure.
- No new construction starts in 2025, potentially limiting future growth from new developments.