DENVER, May 8, 2024 /PRNewswire/ -- Apartment Investment and Management Company ("Aimco") (NYSE:AIV) announced today first quarter results for 2024 and provided highlights on recent and planned activities. Financial Results and Highlights Net loss attributable to common stockholders per share, on a fully dilutive basis, was $(0.07) for the quarter ended March 31, 2024, compared to net loss per share of $(0.06), for the same period in 2023. Higher net operating income (NOI) and gains related to our interest rate hedging instruments were offset by higher interest expense and depreciation related to advancing and completing development projects. First Quarter 2024 revenue, expenses, and NOI from Aimco's Stabilized Operating Properties increased 5.4%, 2.8%, and 6.5%, respectively, year-over-year, with average monthly revenue per apartment home increasing by 5.4% to $2,348. During the first quarter, construction of Aimco's three active development projects advanced on plan. Following quarter end, Aimco substantially completed construction at Upton Place in Upper Northwest Washington, D.C. and, as of April 30, 2024, had leased 112 of the 689 units at rates ahead of underwriting. Aimco acquired 0.9 million shares of its common stock during the first quarter 2024 at an average cost of $7.49 per share. CEO Commentary Wes Powell, Aimco President and Chief Executive Officer, comments: "Aimco delivered solid first quarter results and made steady progress towards the plans and objectives that we outlined for 2024. Demand for rental housing continues to outpace supply in the vast majority of Aimco's markets, investment activity focused on multifamily assets has accelerated in recent months, and our regional development teams are executing well. "Net operating income produced by our Stabilized portfolio was $107.4 million over the trailing twelve-month period and continues to grow, up 6.5% year-over-year during the first quarter. We remain on track to complete construction on our current class of development projects by year-end. These projects remain on budget, with total direct costs projected to be $648 million, and are expected to produce $44 million of NOI annually upon their stabilization. While our regional development teams are planning for select new project starts, total Aimco equity allocated to development and related activities is projected to be substantially reduced when compared to prior years. "Consistent with our overarching goal to create and unlock value for Aimco stockholders, our previously announced plans to sell our 1001 Brickell Bay Drive office building and the adjacent Yacht Club apartment building in Miami, Florida are advancing steadily.  As expected, these extraordinary assets have generated broad interest and our broker plans to solicit offers over the coming weeks.  In addition, during the second quarter we plan to market for sale The Hamilton, our fully renovated waterfront asset in Miami's Edgewater neighborhood. As sales are closed, and associated liabilities are retired, net proceeds will be prudently allocated with a preference for returning capital to stockholders. "Aimco continues to benefit from a well-structured balance sheet. Property-level borrowings on our Stabilized portfolio (representing two-thirds of Aimco's total debt) are at favorable fixed-rates, are assumable, and have, on average, seven years of term remaining. "Finally, I offer my thanks and appreciation to the Aimco team for their dedication and for continuing to produce strong results." Operating Property Results Aimco owns a diversified portfolio of operating apartment communities located in eight major U.S. markets with average rents in line with local market averages. Results at Aimco's Stabilized Operating Properties were as follows: First Quarter Stabilized Operating Properties Year-over-Year Sequential ($ in millions) 2024 2023 Variance 4Q 2023 Variance    Average Daily Occupancy 97.9 % 98.0 % (0.1) % 97.5 % 0.4 %    Revenue, before utility reimbursements $38.6 $36.7 5.4 % $38.4 0.7 %    Expenses, net of utility reimbursements 11.5 11.2 2.8 % 10.6 8.3 %    Net operating income (NOI) 27.1 25.5 6.5 % 27.7 (2.2) % Revenue in the first quarter 2024 was $38.6 million, up 5.4% year-over-year, resulting from a 5.4% increase in average monthly revenue per apartment home to $2,348 and a 10-basis point decrease in Average Daily Occupancy to 97.9%. Effective rents on all leases during the first quarter 2024 were 4.7% higher, on average, than the previous lease and 62.5% of residents whose leases were expiring signed renewals. The median annual household income of new residents was $123,000 in the first quarter 2024, representing a rent-to-income ratio of 20.3%, up 80 bps from the same period last year. Expenses in the first quarter 2024 were up 2.8% year-over-year primarily from higher real estate taxes and insurance. NOI in the first quarter 2024 was $27.1 million, up 6.5% year-over-year. Year to date, as of April 30, 2024, effective rents on all transacted leases were 4.3% higher, on average, than the previous lease. Value Add and Opportunistic Investments Development and Redevelopment Aimco generally seeks development and redevelopment opportunities where barriers to entry are high, target customers can be clearly defined, and Aimco has a comparative advantage over others in the market. Aimco's value add and opportunistic investments may also target portfolio acquisitions, operational turnarounds, and re-entitlements. As of March 31, 2024, Aimco had three active development multifamily projects located in two U.S. markets, in varying phases of construction and lease-up. These projects remain on track, as measured by construction budget and lease-up metrics. Additionally, Aimco has a pipeline of future value add opportunities totaling approximately 13 million gross square feet of development in Aimco's target markets of Southeast Florida, the Washington D.C. Metro, and Colorado's Front Range. During the first quarter, Aimco invested $42.8 million in development and redevelopment activities, inclusive of construction debt and third-party equity. Updates on active development and redevelopment projects include: In Upper Northwest Washington D.C., construction at Upton Place is substantially complete. As of April 30, 2024, Aimco has delivered all 689 apartment homes with 112 units leased or pre-leased and 74 homes occupied, at rates ahead of our initial projections. To provide additional revenue and vibrancy during lease up, Aimco is collaborating with Placemakr for the temporary use of 150 units as short-term furnished rentals. Additionally, as of April 30, 2024, more than 82% of the project's 105K square feet of retail space had been leased, and Aimco was in final lease negotiations with, or had letters of intent from, retailers on another 15% of the square footage. In Bethesda, Maryland, construction is progressing on plan at the first phase of Strathmore Square, which will contain 220 highly tailored apartment homes with initial delivery on track for the second half of 2024. In Corte Madera, California, construction is ongoing at Oak Shore where 16 luxury single-family rental homes and eight accessory dwelling units are being developed. As of April 30, 2024, four of the residences were occupied and Aimco had pre-leased another five at rates ahead of our initial projections. In the first quarter 2024, Aimco invested $1 million into programming, design, documentation, and entitlement efforts related to select pipeline projects located in South Florida and on the Anschutz Medical Campus in Aurora, Colorado. Consistent with Aimco's capital allocation strategy, it may choose to monetize certain of these assets prior to vertical construction in an effort to maximize value add and risk-adjusted returns. Investment & Disposition Activity Aimco is focused on prudently allocating capital and delivering strong investment returns. Consistent with Aimco's capital allocation philosophy, it monetizes the value within its assets when accretive uses of the proceeds are identified and invests when the risk-adjusted returns are superior to other uses of capital. In the first quarter, Aimco, along with CBRE serving as sales broker, brought to market a two-property waterfront assemblage located in Miami, Florida. The properties include 1001 Brickell Bay Drive, a 605K gross square foot office building and 1111 Brickell Bay Drive (aka Yacht Club Apartments), a 357-unit multifamily asset. Combined, the 4.25-acre site can accommodate 3.1 million gross square feet of development, nearly 2.5 times the size of the current improvements. Additionally, during the second quarter 2024, Aimco plans to market for sale The Hamilton, its recently completed waterfront redevelopment in Miami's Edgewater neighborhood. If pricing and terms are acceptable, Aimco plans to close on these dispositions by the end of 2024. Balance Sheet and Financing Activity Aimco is highly focused on maintaining a strong balance sheet, including ample liquidity at all times. As of March 31, 2024, Aimco had access to $290.4 million, including $121.8 million of cash on hand, $18.6 million of restricted cash, and the capacity to borrow up to $150.0 million on its revolving credit facility. Aimco's net leverage as of March 31, 2024, was as follows: as of March 31, 2024 Aimco Share, $ in thousands Amount Weighted Avg. Maturity (Yrs.) [1] Total non-recourse fixed rate debt $ 775,463 7.0 Total non-recourse floating rate debt 89,843 1.5 Total non-recourse construction loan debt 313,193 1.6 Cash and restricted cash (140,018)   Net Leverage $ 1,038,481 [1] Weighted average maturities presented exclude contractual extension rights. As of March 31, 2024, 100% of Aimco's total debt was either fixed rate or hedged with interest rate cap protection and, including contractual extensions, Aimco has only $8.5 million, or less than 1% of its total debt, maturing prior to May 2026. Public Market Equity Common Stock Repurchases In the first quarter, Aimco repurchased 0.9 million shares of its common stock at a weighted average price of $7.49 per share. Since the start of 2022 and through April 30, 2024, Aimco has repurchased 10.6 million shares at an average cost of $7.31 per share. In the first quarter, approximately 36,907 units of the Aimco Operating Partnership's equity securities were redeemed in exchange for cash at a weighted average price per unit of $7.74. Commitment to Enhance Stockholder Value  The Aimco Board of Directors, in coordination with management, remains intently focused on maximizing and unlocking value for Aimco stockholders and continues to engage regularly with several leading advisory firms, including Morgan Stanley & Co. LLC.    Aimco's announced plans to reduce exposure to development activity and monetize certain assets represent a commitment to simplify the portfolio and unlock embedded value when there are opportunities to do so. These efforts will further improve Aimco's positioning in the market and provide increased flexibility as the Board of Directors continues its review and consideration of broader strategic actions to maximize stockholder value. In addition, in conjunction with our contemplated asset sales, we will prioritize return of capital to our stockholders as a key component of our capital allocation philosophy. 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. The Company does not intend to disclose or comment on developments related to the foregoing unless or until it determines that further disclosure is appropriate or required. 2024 Outlook 1Q 2024 2024 2024 $ in millions (except per share amounts), Square Feet in millions Forecast is full year unless otherwise noted Results Forecast Prior Forecast Net income (loss) per share – diluted [1] $(0.07) $(0.50) - $(0.40) $(0.50) - $(0.40) Operating Properties Revenue Growth, before utility reimbursements 5.4 % 1.75% - 3.75% 1.75% - 3.75% Operating Expense Growth, net of utility reimbursements 2.8 % 6.00% - 8.00% 6.00% - 8.00%