On 18 Feb 2020, Apartment Investment and Management Company (NYSE: AIV) spotted trading -1.12% off 52-week high price. On the other end, the stock has been noted 15.39% away from the low price over the last 52-weeks. The stock changed 0.13% to recent value of $54.87. The stock transacted 510270 shares during most recent day however it has an average volume of 1052.19K shares. The company has 148.43M of outstanding shares and 147.57M shares were floated in the market.
Apartment Investment and Management Company (AIV) reported recently fourth quarter results for 2019.
Chairman and Chief Executive Officer Terry Considine comments: “Aimco had a solid fourth quarter, completing a good year. Full year 2019 Same Store revenue and NOI were 50 and 70 basis points, respectively, better than the original midpoint of guidance, and controllable operating expenses were flat, year-over-year. With December average daily occupancy of 97.9%, our properties are well occupied, providing an excellent starting point to 2020.”
Fourth Quarter Portfolio – For its entire portfolio, Aimco’s average monthly revenue per apartment home was $2,272 for fourth quarter 2019, a 7% increase contrast to fourth quarter 2018. This increase is Because of year-over-year growth in Same Store revenue, as well as Aimco’s acquisition activities, lease-up of redevelopment communities, and sales of communities with average monthly revenues per apartment home lower than those of the retained portfolio.
In 2019, Aimco reallocated capital from slower-growth markets such as Chicago and reinvested the proceeds in higher-growth markets such as Miami, Denver, and Boston.
Acquisitions – Aimco follows a disciplined paired trade policy in making investments. Aimco evaluates potential acquisitions seeking Free Cash Flow internal rates of returns higher than those of the properties being sold. Aimco prefers well-located real estate where land is a important percentage of total value and provides potential upside from development or redevelopment.
In 2019, Aimco purchased three properties: One Ardmore in Ardmore, Pennsylvania; Prism (50 Rogers), under construction in Cambridge, Massachusetts; and 1001 Brickell Bay Drive in Miami, Florida. Together, these acquisitions have an predictable 9% weighted-average Free Cash Flow internal rate of return, about 300 basis points better than predictable from the properties being sold in paired trades to fund the acquisitions.
Mezzanine Loan Investment – As reported in December 2019, Aimco made a five-year, $275M mezzanine loan at a 10% yearly rate to the joint venture owning Parkmerced Apartments. The loan is secured by a second-priority deed of trust. Aimco simultaneously purchased a ten-year option to acquire a 30% interest in the joint venture at an exercise price of $1M, increased by 30% of future capital spending to progress development and redevelopment of Parkmerced Apartments.
Parkmerced Apartments is a 152-acre site in the southwest corner of San Francisco, presently improved with 3,221 apartment homes completed shortly before and after World War II. These apartment homes are subject to City of San Francisco rent control. The development of the site is governed by a development contract that allows for 8,900 total residential units, with the new units exempt from City of San Francisco rent control. The joint venture, which is the Aimco borrower and in which Aimco has the option to acquire 30% ownership, owns 3,165 of the existing rent-controlled apartment homes as well as the vested right to develop 4,093 of the new market-rate homes.
Dispositions – In the fourth quarter, Aimco sold four apartment communities with 991 apartment homes, generating net proceeds of $201M.
In 2019, Aimco sold twelve apartment communities, generating net proceeds of $619M used to fund acquisitions, redevelopment, development, the repurchase of Aimco shares in the fourth quarter of 2018, and other capital investments. Aimco delayed about $300M of year-end and January sales. While this delay temporarily increased leverage, we expect a better execution as the transaction market remains deep, liquid, and attractively priced.
Its earnings per share (EPS) expected to touch remained 126.70% for this year while earning per share for the next 5-years is expected to reach at 7.10%. AIV has a gross margin of 66.40%. The price moved ahead of 2.57% from the mean of 20 days, 5.00% from mean of 50 days SMA and performed 6.03% from mean of 200 days price. Company’s performance for the week was 1.72%, 4.26% for month and YTD performance remained 6.23%.