Apartment Income REIT Corp. ("AIR" or the "Company") (NYSE:
AIRC) announced today results for the second quarter of 2023.
During the second quarter, the Company:
- Delivered Pro forma FFO per share of $0.58, reflecting 13.7%
year-over-year growth (adjusting for prior contribution of the
Aimco note prepayment) and beating the midpoint of guidance by
$0.01 per share;
- Delivered Same Store NOI growth of 10.6%;
- Formed two joint ventures to recapitalize 11 properties valued
at $1.2 billion, with nine of 11 properties now closed and the
remaining two expected to close by year-end;
- Used proceeds from the joint ventures to reduce Net Leverage to
Adjusted EBITDAre to 5.9x on a pro forma basis, within AIR’s
targeted range;
- Expects to use the balance of proceeds to purchase properties,
now in advanced negotiations, with current returns neutral to 2023
FFO and $0.01 accretive to 2024 FFO, with long-term unlevered IRRs
in excess of 10%;
- Raises Same Store Revenue and NOI guidance by 20 and 40-basis
points, respectively, at their midpoints;
- Narrows the guidance range for 2023 Pro forma FFO per share to
$2.38 to $2.44 while maintaining $2.41 as the midpoint, which is
unchanged due to higher than anticipated casualty losses. The $2.41
midpoint represents a 10% growth versus 2022 Run-Rate FFO per share
of $2.19; and
- Expects Pro forma FFO per share between $0.61 and $0.65 in the
third quarter, and between $1.26 and $1.32 in the second half of
2023, driven primarily by property operations increasing its first
half contribution by $20.4 million, or $0.13 of FFO per share.
With more than 80% of 2023 leasing now complete, the Company
expects the earn-in to Same Store Revenue growth in 2024 in the
low-to-mid 2% range. With largely fixed operating expenses, low
G&A, and fixed interest rates, 2024 growth in NOI – from both
Same Store and Acquisition portfolios – is expected to translate
directly to growth in Pro forma FFO per share.
Financial Results: Second Quarter
Run-Rate FFO Per Share Up 13.7%
In the second quarter of 2022, with the support of shareholders,
AIR accepted prepayment of the Aimco note, which contributed $0.15
to 2022 Pro forma FFO per share. This makes 2022 not comparable to
2023. Adjusting for this event, second quarter FFO of $0.58 per
share is 13.7% higher in 2023 than in 2022.
SECOND QUARTER
YEAR-TO-DATE
(all items per common share – diluted)
2023
2022
Variance
2023
2022
Variance
Net (loss) income
$
(0.01
)
$
1.26
nm
$
(0.09
)
$
3.66
nm
NAREIT Funds From Operations
(FFO)
$
0.62
$
0.64
(3.1%)
$
1.11
$
1.06
4.7%
Pro forma adjustments
(0.04
)
0.02
nm
0.01
0.17
nm
Pro forma Funds From Operations (Pro
forma FFO)
$
0.58
$
0.66
(12.1%)
$
1.12
$
1.23
(8.9%)
Contribution from Aimco note
—
(0.15
)
nm
—
(0.19
)
nm
Run-Rate FFO
$
0.58
$
0.51
13.7%
$
1.12
$
1.04
7.7%
Operating Results: Second Quarter Same
Store NOI Up 10.6% YoY and 11.6% YTD
AIR's Same Store portfolio comprises 63 properties and provided
85% of year-to-date rental revenue.
SECOND QUARTER
YEAR-TO-DATE
Year-over-Year
Sequential
Year-over-Year
($ in millions) *
2023
2022
Variance
1st Qtr.
Variance
2023
2022
Variance
Revenue, before utility reimbursements
$
158.8
$
146.0
8.8
%
$
156.6
1.5
%
$
315.4
$
288.2
9.4
%
Expenses, net of utility
reimbursements
41.0
39.4
4.1
%
40.8
0.4
%
81.8
78.9
3.7
%
Net operating income (NOI)
117.8
106.6
10.6
%
115.7
1.8
%
233.5
209.3
11.6
%
*Amounts are presented on a
rounded basis and the sum of the individual amounts may not foot;
please refer to Supplemental Schedule 6.
Second quarter 2023 Same Store NOI margin was 74.2%, up
120-basis points year-over-year and an AIR record for the second
quarter, the result of:
- 8.8% growth in Residential Rents, and
- Sustained cost control with controllable expenses increasing
only 100 basis points.
Components of Same Store Revenue
Growth
SECOND QUARTER 2023
YEAR-TO-DATE
Same Store Revenue Components
Year-over-Year
Sequential
Year-over-Year
Residential Rents
8.8
%
1.3
%
9.4
%
Average Daily Occupancy
(1.1
%)
(1.9
%)
(0.7
%)
Residential Rental Income
7.7
%
(0.6
%)
8.7
%
Bad Debt, net of recoveries
—
%
0.7
%
0.1
%
Other Residential Income
1.0
%
1.1
%
0.6
%
Residential Revenue
8.7
%
1.2
%
9.4
%
Commercial Revenue
0.1
%
0.3
%
—
%
Same Store Revenue Growth
8.8
%
1.5
%
9.4
%
Same Store Rental Rates &
Occupancy
SECOND QUARTER
YEAR-TO-DATE
2023
(amounts represent AIR share)*
2023
2022
Variance
2023
2022
Variance
April
May
June
July**
Transacted Leases
Renewal rent changes
8.0
%
11.5
%
(3.5
%)
8.2
%
11.7
%
(3.5
%)
8.6
%
8.2
%
7.7
%
6.7
%
New lease rent changes
6.6
%
18.8
%
(12.2
%)
7.5
%
18.2
%
(10.7
%)
8.4
%
6.6
%
5.7
%
5.1
%
Weighted-average rent changes
7.4
%
14.6
%
(7.2
%)
7.8
%
14.7
%
(6.9
%)
8.5
%
7.4
%
6.7
%
5.8
%
Signed Leases
Renewal rent changes
7.0
%
11.2
%
(4.2
%)
7.4
%
11.4
%
(4.0
%)
7.8
%
7.5
%
6.1
%
5.7
%
New lease rent changes
6.0
%
18.1
%
(12.1
%)
6.6
%
17.9
%
(11.3
%)
7.6
%
5.5
%
5.3
%
4.7
%
Weighted-average rent changes
6.5
%
14.3
%
(7.8
%)
7.0
%
14.4
%
(7.4
%)
7.7
%
6.5
%
5.7
%
5.1
%
Average Daily Occupancy
95.5
%
96.6
%
(1.1
%)
96.5
%
97.2
%
(0.7
%)
96.4
%
95.6
%
94.7
%
94.6
%
Note: Transacted leases are those that
became effective during the reporting period and are therefore the
best measure of immediate effect on current revenues. Signed leases
are those executed during a reporting period and are therefore the
best measure of current pricing and an important driver of future
results. All lease-to-lease data is reported on an effective rent
basis.
*Amounts are based on our current Same
Store population and may differ from those previously reported.
**July leasing results are preliminary and
as of July 26, 2023.
- Second quarter signed lease rate growth is higher than assumed
in our annual plan with a blended rate increase of 6.5% benefiting
from (i) 10-basis points from 2021 acquisitions (now in Same Store)
and (ii) 70-basis points from capital enhancement activity.
- Average Daily Occupancy ("ADO") declined 190-basis points
sequentially due to (i) normal and expected seasonality (110-basis
points of decline) due to the frictional vacancy of the leasing
season and (ii) increased move-outs of non-paying residents as
COVID-related protections expired (60-basis points).
- ADO is anticipated to reach its low point in July, and then
increase in the third and fourth quarters.
Rent Collections & Bad
Debt
During the second quarter, AIR recognized 98.8% of all
residential revenue billed in the quarter with the remaining 1.2%
reserved as gross bad debt. Payments received during the second
quarter with respect to revenue treated as bad debt in previous
periods, totaled 60-basis points of second quarter residential
revenue resulting in bad debt for the second quarter, net of the
contra entry, of 0.6% of residential revenue.
- Of the 1.2% in gross bad debt: (i) 50-basis points reflects a
level of delinquency that is slightly higher than AIR's experience
in 2019, (ii) 40-basis points is due to slower action by courts as
a result of backlogs created by pandemic-related government
shutdowns, and (iii) 30-basis points is due to the move-out and
related fees charged to individuals who were evicted or terminated
their lease early.
- There are currently 150 delinquent residents in AIR's
portfolio. 70 residents represents a "normalized" rate for credit
issues, slightly higher than pre-COVID levels of approximately 50
residents, on average per month. The slower action by courts. noted
above, provides more time for delinquent residents and increase the
amount of bad debt per defaulting resident, which explains the
incremental 80 residents in the process of collection.
- As of June 30, 2023, AIR's proportionate share of residential
accounts receivable was $4.8 million, or $0.1 million net of
security deposits and reserves for uncollectible amounts.
Acquisition Portfolio
Performance
Year-over-Year
Variance
Year
Apartment Communities
% of GAV
Rev
Exp
NOI
Class of 2021**
5
8.0%
19.0%
(2.2%)
30.5%
Sequential Variance
Year
Apartment Communities
% of GAV
NOI
Class of 2021**
5
8.0%
4.9%
Class of 2022 and 2023*
5
9.0%
3.4%
Acquisition Portfolio
10
17.0%
4.1%
Total Portfolio
73
100.0%
1.7%
*Acquisition property results are
often volatile, sometimes by design, when properties are first
added to the AIR platform. Common examples are the implementation
of AIR’s “no smoking” policy and AIR’s requirement of high credit
ratings from new residents. Over three or four years, results
become stable as new residents are selected by AIR, increasing
numbers of high quality residents renew their leases, and the
disturbance of property upgrades is in the past.
**Acquisitions from 2021 are
included in, and contribute to, Same Store Portfolio metrics.
Transactions
AIR has property operation expertise, termed the AIR Edge, which
results in higher property NOI, enabling AIR to acquire properties
and deploy the AIR Edge to improve their profitability and value.
This enables AIR to sell properties at market NOI cap rates and
unlevered IRRs, and to reinvest capital in acquisition properties
which generally enjoy accelerated growth in profitability relative
to general market rates.
AIR’s business is to acquire properties, deploy the AIR Edge,
and generate returns 200-basis points, or higher, than AIR’s cost
of capital, as measured by unlevered IRR. “Paired trades” make
agnostic to changes in market conditions insofar as AIR is buying
and selling at roughly the same time. The benefits – enhanced total
NOI growth and higher FFO – are realized primarily in years two
through four as it requires more than one turn of the rent roll to
implement AIR’s menu of high credit standards, measured customer
satisfaction, customer retention, lowered operating costs, and
completion of planned capital improvements.
Joint Venture Transactions
As previously announced, AIR formed two joint ventures in the
quarter, the first of which closed on June 30, 2023 through the
sale of a 70% interest in Huntington Gateway (the “Value-Add JV”),
and the second of which closed on July 17, 2023 through the sale of
a 47% interest in eight of ten properties (the “Core JV”). The
remaining two properties within the Core JV are expected to close
before year-end. AIR now has four separate joint venture
partnerships, each (i) with world-class investors interested in
doing more with AIR, (ii) paying asset and property management
fees, and (iii) providing substantial opportunity to earn
“promotes.” For AIR, joint ventures are a strategic source of
attractively priced capital, and provide AIR the resources to
pursue a broader opportunity set to pursue growth. AIR expects to
sell further interests of the existing joint ventures to increase
expected returns on its retained investment, and to make available
additional capital to invest in future AIR Edge properties with
higher returns.
California JV
Washington, D.C. JV
Core JV
Value-Add JV
September 2020
October 2021
July 2023
June 2023
GAV @ 100%
$2.4B
$0.5B
$1.1B
$0.1B
AIR / JV Partner Ownership
61% / 39%
20% / 80%
53% / 47%
30% / 70% *
Number of Properties
12
3
10
1
Units
4,051
1,748
3,093
443
Average Revenue per Unit
$3,389
$2,070
$2,534
$2,307
*Legal ownership sold is 70%,
while AIR will receive 50% of JV cash flow during the hold
period.
Dispositions
AIR is nearing completion of its strategic exit from New York
City through:
- The sale of two properties with 62 apartment homes to a
developer for gross proceeds of $33.2 million and a non-cash GAAP
loss of $8.2 million; and
- Signing a contract to sell its remaining New York City
property, at a price which resulted in a non-cash GAAP write-down
of $15.4 million.
In aggregate since the Separation, AIR has recognized non-cash
GAAP gains of $1.5 billion on $2.2 billion of dispositions.
Balance Sheet &
Liquidity
To lower its cost of capital and enhance financial returns, AIR
targets Net Leverage to EBITDAre between 5.0x to 6.0x with focus on
fixed-rate, long-term debt with well laddered maturities. We
maintain flexibility through (i) ample unused and available credit,
(ii) holding properties with substantial value unencumbered by
property debt, and (iii) maintaining an investment grade
rating.
Balance sheet highlights, pro forma for the announced joint
ventures, include:
- Reduction in Net Leverage to EBITDAre to 5.9x, within AIR’s
targeted range, and extension of its weighted-average maturities by
more than seven months;
- 96% fixed-rate leverage with limited repricing risk before the
second quarter of 2025;
- Available liquidity of $2.3 billion and access to more
potentially secured by $5.8 billion in unencumbered property value;
and
- Limited refunding risk with the ability to fund all maturities
through 2027 from cash on hand, and a 10-year commitment to make $1
billion of property loans with up to 10-year maturities.
Dividend & Equity Capital
Markets
On July 25, 2023, the AIR Board of Directors declared a
quarterly cash dividend of $0.45 per share of Common Stock, payable
on August 29, 2023 to shareholders of record on August 18, 2023.
The Board of Directors targeted a 75% payout ratio on Pro forma FFO
in setting the dividend for 2023, which is also expected to have
favorable tax characteristics due to AIR’s tax basis refreshed at
the time of the Separation from Aimco.
Components of AIR Pro forma
FFO
With a total of approximately $2.2 billion of third party
capital assets now under management, third party asset, property
management and transaction related fees are a small, but growing
component of AIR FFO. In 2023, AIR anticipates 96% of its Pro forma
FFO will be earned from levered property operations, with the
remaining 4%, or $0.11 per share, largely attributable to property
management, asset management, and transactional services provided
to third parties and venture partners.
2023
2022
Variance
Levered Property Operations
$
2.30
$
2.08
10.6%
Third Party Services, net (1)
0.11
0.11
—%
Run-rate FFO, at the midpoint
$
2.41
$
2.19
10.0%
Aimco Note Prepayment (2)
—
0.22
nm
Total Pro forma FFO, at the
midpoint
$
2.41
$
2.41
—%
(1)
Third party services are a
natural result of AIR’s joint ventures and acquisitions:
(a)
Asset management fees are a
revenue stream created by the formation of joint ventures, and
(b)
Property management fees prior to
purchase of the related property permit AIR to begin implementation
of the AIR Edge, for example in requirement of high credit
standards prior to taking ownership.
Of this amount, approximately
$0.06 is expected to continue for the life of the joint ventures.
The $0.05 in remaining fees are specific to 2023 activities. AIR
earned a similar level of such fees in 2022 and we anticipate a
similar amount will be earned in 2024 and beyond.
(2)
2022 Pro forma FFO included a
non-recurring $0.22 per share contribution from the Aimco note
prepayment.
2023 Outlook
AIR’s midpoint of Pro forma FFO per share of $2.41 remains
unchanged. Our guidance ranges are shown below and generally
tightened based on activities completed year-to-date:
YEAR-TO-DATE June 30,
2023
FULL YEAR 2023
PREVIOUS FULL YEAR
2023
($ amounts represent AIR share)
Net (loss) income per share
$(0.09)
$0.66 to $0.76
($0.18) to ($0.06)
Pro forma FFO per share
$1.12
$2.38 to $2.44
$2.36 to $2.46
Pro forma FFO per share at the
midpoint
$2.41
$2.41
Same Store Operating Components
Revenue change compared to prior year
9.4%
7.8% to 8.6%
7.0% to 9.0%
Expense change compared to prior year
3.7%
5.0% to 5.6%
5.0% to 6.5%
NOI change compared to prior year
11.6%
8.6% to 9.8%
7.3% to 10.3%
Other Earnings
Proceeds from dispositions of real
estate
$33M
$54M
$50M
Proceeds from joint venture transactions
(1)
$554M
$599M
$—
AIR Share of Capital
Enhancements
Capital Enhancements
$42M
$80M to $90M
$80M to $90M
Balance Sheet
Net Leverage to Adjusted EBITDAre (1)
5.9x
≤6.0x
≤6.0x
(1)
In July 2023, AIR completed the
Core JV with a global institutional investor. As part of the
transaction, AIR raised $611 million in new mortgage financing. In
aggregate, the joint venture partner took title subject to $275
million of the total mortgage obligation reflecting its 47% share
of the property debt, and AIR received $185 million in cash. We
anticipate that, upon the closing of the final two properties, the
joint venture partner will take title subject to $28 million of the
related mortgage loan obligation, and AIR will receive $17 million
in additional cash. Proceeds, net of transaction costs, were used
to repay $292 million on the revolving credit facility, $325
million of term loans, with the remaining invested in short-term
liquid investments.
In the third quarter of 2023, AIR anticipates Pro forma FFO
between $0.61 and $0.65 per share.
Earnings Conference Call
Information
Live Conference Call:
Conference Call Replay:
Friday, July 28, 2023 at 2:00 p.m. ET
Replay available until October 26,
2023
Domestic Dial-In Number:
1-888-886-7786
Domestic Dial-In Number:
1-877-674-7070
International Dial-In Number:
080-0652-2435
International Dial-In Number:
1-416-764-8658
Passcode: 11736488
Passcode: 736488
Live Webcast:
investors.aircommunities.com
Supplemental Information
The full text of this Earnings Release and the Supplemental
Information referenced in this release is available on AIR’s
website at investors.aircommunities.com.
Glossary & Reconciliations of
Non-GAAP Financial and Operating Measures
Financial and operating measures found in this Earnings Release
and the Supplemental Information include certain financial measures
used by AIR management that are measures not defined under
accounting principles generally accepted in the United States
(“GAAP”). Certain AIR terms and Non-GAAP measures are defined in
the Glossary in the Supplemental Information and Non-GAAP measures
reconciled to the most comparable GAAP measures.
About AIR
Apartment Income REIT Corp (NYSE: AIRC) is a publicly traded,
self-administered real estate investment trust (“REIT”). AIR’s
portfolio comprises 73 communities totaling 25,739 apartment homes
located in 10 states and the District of Columbia. AIR offers a
simple, predictable business model with focus on what we call the
AIR Edge, the cumulative result of our focus on resident selection,
satisfaction, and retention, as well as relentless innovation in
delivering best-in-class property management. The AIR Edge is a
durable operating advantage in driving organic growth, as well as
making possible the opportunity for excess returns for properties
new to AIR’s platform. For additional information, please visit
aircommunities.com.
Forward-looking
Statements
This Earnings Release and Supplemental Information contain
forward-looking statements within the meaning of the Federal
securities laws, including, without limitation, statements
regarding projected results and specifically forecasts of 2023
results, including but not limited to: NAREIT FFO, Pro forma FFO,
Run-rate FFO and selected components thereof; expectations
regarding consumer demand, growth in revenue and strength of other
performance metrics and models; expectations regarding
acquisitions, as well as sales, and joint ventures and the use of
proceeds thereof; and AIR liquidity and leverage metrics. We
caution investors not to place undue reliance on any such
forward-looking statements.
These forward-looking statements are based on management’s
current expectations, estimates and assumptions and subject to
risks and uncertainties, that could cause actual results to differ
materially from such forward-looking statements, including, but not
limited to: real estate and operating risks, including fluctuations
in real estate values and the general economic climate in the
markets in which we operate and competition for residents in such
markets; national and local economic conditions, including
inflation, the pace of job growth, and the level of unemployment;
the amount, location, and quality of competitive new housing
supply, which may be impacted by global supply chain disruptions;
the timing and effects of acquisitions and dispositions; changes in
operating costs, including energy costs; negative economic
conditions in our geographies of operation; loss of key personnel;
AIR’s ability to maintain current or meet projected occupancy,
rental rate, and property operating results; expectations regarding
sales of apartment communities and the use of proceeds thereof;
insurance risks, including the cost of insurance, and natural
disasters and severe weather such as hurricanes; financing risks,
including interest rate changes and the availability and cost of
financing; the risk that cash flows from operations may be
insufficient to meet required payments of principal and interest;
the risk that earnings may not be sufficient to maintain compliance
with debt covenants, including financial coverage ratios; legal and
regulatory risks, including costs associated with prosecuting or
defending claims and any adverse outcomes; the terms of laws and
governmental regulations that affect us and interpretations of
those laws and regulations; and possible environmental liabilities,
including costs, fines, or penalties that may be incurred due to
necessary remediation of contamination of apartment communities
presently or previously owned by AIR. Other risks and uncertainties
are described in filings by AIR with the Securities and Exchange
Commission (“SEC”), including the section entitled “Risk Factors”
in Item 1A of AIR’s Annual Report on Form 10-K for the year ended
December 31, 2022, and subsequent filings with the SEC.
In addition, our current and continuing qualification as a real
estate investment trust involves the application of highly
technical and complex provisions of the Internal Revenue Code of
1986, as amended (the “Code”), and depends on our ability to meet
the various requirements imposed by the Code, through actual
operating results, distribution levels and diversity of stock
ownership.
These forward-looking statements reflect management’s judgment
as of this date, and we assume no obligation to revise or update
them to reflect future events or circumstances. This earnings
release does not constitute an offer of securities for sale.
Consolidated Statements of
Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended
Six Months Ended
June 30, 2023
June 30, 2022
June 30, 2023
June 30, 2022
REVENUES
Rental and other property revenues (1)
$
212,492
$
181,012
$
422,415
$
360,273
Other revenues
2,068
2,488
4,138
4,705
Total revenues
214,560
183,500
426,553
364,978
OPERATING EXPENSES
Property operating expenses (1)
72,012
63,787
147,465
127,023
Depreciation and amortization
89,260
78,656
184,926
163,205
General and administrative expenses
(2)
6,023
5,333
13,203
11,930
Other (income) expenses, net
2,519
(3,076
)
6,179
942
Total operating expenses
169,814
144,700
351,773
303,100
Interest income
1,507
25,652
3,032
39,133
Interest expense
(37,554
)
(26,027
)
(73,741
)
(48,134
)
Loss on extinguishment of debt
—
—
(2,008
)
(23,636
)
(Loss) gain on dispositions and
impairments of real estate
(17,472
)
175,606
(17,472
)
587,609
Gain on derivative instruments, net
11,390
—
9,252
—
Loss from unconsolidated real estate
partnerships
(842
)
(873
)
(1,877
)
(2,887
)
Income (loss) before income tax
expense
1,775
213,158
(8,034
)
613,963
Income tax expense
(1,177
)
(1,499
)
(1,316
)
(920
)
Net income (loss)
598
211,659
(9,350
)
613,043
Noncontrolling interests:
Net (income) loss attributable to
noncontrolling interests in consolidated real estate
partnerships
(684
)
(381
)
(1,369
)
183
Net income attributable to preferred
noncontrolling interests in AIR OP
(1,570
)
(1,602
)
(3,140
)
(3,205
)
Net loss (income) attributable to common
noncontrolling interests in AIR OP
315
(12,749
)
1,141
(36,916
)
Net income attributable to noncontrolling
interests
(1,939
)
(14,732
)
(3,368
)
(39,938
)
Net (loss) income attributable to AIR
(1,341
)
196,927
(12,718
)
573,105
Net income attributable to AIR preferred
stockholders
(42
)
(43
)
(85
)
(85
)
Net income attributable to participating
securities
(56
)
(162
)
(93
)
(417
)
Net (loss) income attributable to AIR
common stockholders
$
(1,439
)
$
196,722
$
(12,896
)
$
572,603
Net (loss) income attributable to AIR
common stockholders per share – basic and diluted
$
(0.01
)
$
1.26
$
(0.09
)
$
3.66
Weighted-average common shares
outstanding – basic
148,832
155,927
148,821
156,327
Weighted-average common shares
outstanding – diluted
148,832
156,136
148,821
156,607
(1)
Rental and other property
revenues for the three and six months ended June 30, 2023 are
inclusive of $0.2 million and $0.5 million, respectively, of
revenues related to sold properties. Rental and other property
revenues for the three and six months ended June 30, 2022 are
inclusive of $10.3 million and $25.5 million, respectively, of
revenues related to sold properties. Property operating expenses
for the six months ended June 30, 2023 are inclusive of $0.3
million of expenses related to sold properties. Property operating
expenses for the three and six months ended June 30, 2022 are
inclusive of $3.4 million and $8.9 million, respectively, of
expenses related to sold properties.
(2)
In setting our G&A benchmark
of 15 bps of Gross Asset Value, we consider asset management fees
earned in our joint ventures as a reduction of general and
administrative expenses. In accordance with GAAP, general and
administrative expenses are shown gross of these asset management
fees. The California Joint Venture is consolidated on our balance
sheet and accordingly, fees earned in this venture are included in
the determination of net (income) loss attributable to
noncontrolling interests in consolidated real estate partnerships.
The Washington D.C. area Joint Venture is not consolidated on our
balance sheet and accordingly, fees earned in this venture are
included in loss from unconsolidated real estate partnerships. Fees
earned from joint ventures were $1.5 million and $3.0 million for
three and six months ended June 30, 2023, respectively, and $1.7
million and $3.4 million for three and six months ended June 30,
2022, respectively. Beginning in the third quarter, AIR’s share of
the Core and Value-Add Joint Ventures will be included within loss
from unconsolidated real estate partnerships.
Consolidated Balance Sheets
(in thousands) (unaudited)
June 30, 2023
December 31, 2022
Assets
Real estate
$
8,233,320
$
8,076,394
Accumulated depreciation
(2,562,252
)
(2,449,883
)
Net real estate
5,671,068
5,626,511
Cash and cash equivalents
106,349
95,797
Restricted cash
23,564
205,608
Goodwill
32,286
32,286
Other assets (1)
573,743
591,681
Total assets
$
6,407,010
$
6,551,883
Liabilities and Equity
Non-recourse property debt
$
2,211,002
$
1,994,651
Debt issue costs
(13,565
)
(9,221
)
Non-recourse property debt, net
2,197,437
1,985,430
Term loans, net
797,471
796,713
Revolving credit facility borrowings
292,000
462,000
Unsecured notes payable, net
397,669
397,486
Accrued liabilities and other (1)
476,400
513,805
Total liabilities
4,160,977
4,155,434
Preferred noncontrolling interests in AIR
OP
77,143
77,143
Equity:
Perpetual Preferred Stock
2,000
2,000
Class A Common Stock
1,492
1,491
Additional paid-in capital
3,430,731
3,436,635
Accumulated other comprehensive income
39,343
43,562
Distributions in excess of earnings
(1,474,101
)
(1,327,271
)
Total AIR equity
1,999,465
2,156,417
Noncontrolling interests in consolidated
real estate partnerships
(80,087
)
(78,785
)
Common noncontrolling interests in AIR
OP
249,512
241,674
Total equity
2,168,890
2,319,306
Total Liabilities and Equity
$
6,407,010
$
6,551,883
(1)
Other assets includes the
Parkmerced mezzanine investment, and accrued liabilities and other
includes the offsetting liabilities. The benefits and risks of
ownership of the Parkmerced mezzanine investment have been
transferred to Aimco, but legal transfer has not occurred. As of
June 30, 2023, the Parkmerced mezzanine investment had an
offsetting $158.5 million asset and liability balance. During the
second quarter, the interest rate swap option asset and offsetting
liability associated with the Parkmerced mezzanine investment was
settled for approximately $53 million, resulting in equal decreases
in other assets and accrued liabilities and other.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230727399238/en/
Matthew O’Grady Senior Vice President, Capital Markets (303)
691-4566
Mary Jensen Head of Investor Relations (303) 691-4349
investors@aircommunities.com
Apartment Income REIT (NYSE:AIRC)
過去 株価チャート
から 4 2024 まで 5 2024
Apartment Income REIT (NYSE:AIRC)
過去 株価チャート
から 5 2023 まで 5 2024