Apartment Investment and Management Company (Aimco) is a self-administered and self-managed real estate investment trust (REIT), engaged in the acquisition, ownership, management and redevelopment of apartment properties. As of December 31, 2008, it owned or managed a real estate portfolio of 992 apartment properties containing 162,807 apartment units located in 44 states, the District of Columbia and Puerto Rico. Aimco’s portfolio includes garden style, mid-rise and high-rise properties. Aimco operates in two segments: real estate (owning, operating and redeveloping apartments) and investment management (portfolio strategy, capital allocation, joint ventures, tax credit syndication, acquisitions, dispositions and other transaction activities). Through its wholly owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP, Inc., it owns a majority of the ownership interests in AIMCO Properties, L.P., which it refers to as the Aimco Operating Partnership. 

http://www.aimco.com

Company Release - 02/05/2010 07:00

DENVER--(BUSINESS WIRE)-- Apartment Investment and Management Company (NYSE:AIV): 

Fourth Quarter 2009 
    --  Funds From Operations (FFO) - Fourth quarter 2009 FFO was $0.26 per share, before operating real estate impairments of $0.12 per share.   Results include a $0.10 per share non-cash impairment charge related to   Aimco's interest in Casden Properties LLC, which is described in further  detail below. Excluding this impairment charge, fourth quarter FFO was  $0.36 per share, within the $0.32 to $0.40 per share guidance range.
    --  Property Operations - During the fourth quarter, total conventional and affordable property net operating income, adjusted for property
        acquisitions and dispositions, was 3.2% lower than in fourth quarter  2008.
        o Same Store Conventional Results - When comparing fourth quarter 2009
          to fourth quarter 2008, Same Store conventional property net operating
          income declined 6.3%, ahead of the guidance range of negative 7.0% to
          negative 8.0%. Same Store conventional revenue declined 3.2% and
          expenses increased 2.2%. Fourth quarter 2009 Same Store conventional
          net operating income was flat when compared to third quarter 2009.
          Average daily occupancy increased 0.7% from 94.7% for fourth quarter
          2008 to 95.4% for fourth quarter 2009, and increased 0.6% from third
          quarter 2009.
        o Non-Same Store Results - Conventional redevelopment property net
          operating income increased 12.2% compared to fourth quarter 2008 and
          affordable property operations, including affordable redevelopment
          operations, generated net operating income growth of 6.9% during the
          same period.
    --  Capital Markets Activity

At the beginning of fourth quarter 2009, Aimco had $260 million of term debt outstanding, which comes due in first quarter 2011. During fourth quarter 2009, Aimco repaid $170 million of term debt with proceeds from property sales. An additional payment of $35 million was made after quarter's end, reducing the balance to $55 million as of the end of January 2010. 

In connection with its recourse obligations, Aimco is subject to Debt Service and Fixed Charge Coverage covenants. On February 3, 2010, Aimco and its lenders agreed to reduce these Debt Service and Fixed Charge Coverage covenants from 1.50:1 and 1.30:1 to 1.40:1 and 1.20:1, respectively. 

    --  Property Sales and Asset Allocation - During fourth quarter 2009, Aimco
        sold 32 properties for $532.8 million, generating $154.2 million in net
        proceeds to Aimco, after distributions to limited partners, repayment of
        existing property debt and transaction costs.
    --  Casden Properties LLC Impairment - As part of the March 2002 acquisition
        of Casden Properties, Inc., Aimco acquired a 20% passive interest in
        Casden Properties LLC, an entity organized to acquire, re-entitle, and
        develop land parcels in Southern California. In connection with
        preparation of its annual financial statements and as a result of the
        continued decline in Southern California land values, Aimco has
        determined that its interest is not fully recoverable, and accordingly
        recognized an impairment loss of $20.7 million, or $12.4 million net of
        tax, during fourth quarter 2009.