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Aimco Declares $420 Million in 2017 NOI

Larger Returns on Property Dispositions Benefited the Company's Bottom Line
February 2, 2018
Larger returns on property dispositions for Denver-based Apartment Investment and Management Co. led to jumps in net income per share in both the fourth quarter and full year 2017, according to the company’s most recent earnings release.

Aimco (NYSE: AIV) reported diluted per-share earnings for the fourth quarter of $1.67, an increase of 62 percent over the same quarter in 2016, and full-year 2017 per-share earnings of $1.96, an increase of 27 percent over 2016.

Fourth-quarter year-over-year net income increased primarily due to higher gains on the sale of apartment communities, Aimco said in its release.

In total, Aimco posted net operating income of $108 million in the fourth quarter and $420 million for 2017, up 4.2 percent from $403 million in 2016. In the fourth quarter, Aimco sold five apartment communities that resulted in $381 million in net proceeds for the company.

"2017 was a solid year for Aimco. Revenues were up, expenses were almost flat, and Aimco achieved net operating income growth greater than 4 percent for the seventh year in a row," noted Terry Considine, chairman and CEO of Aimco. "The quality of the Aimco portfolio improved through value created by our redevelopment and transaction activities, contributing to average revenue per apartment home of $2,123, up 7 percent."

Continued rent growth in the multifamily sector has benefited apartment owners and managers of all stripes, especially in metro Denver.

Average monthly apartment rent climbed 3.7 percent year-over-year in the fourth quarter of 2017 to $1,396, according to data from the Apartment Association of Metro Denver. And although more than 13,000 new apartment units were delivered in metro Denver last year, continued demand and higher quality of new units has kept rents on the rise, although at a slower pace than in 2015 and 2016.

Aimco also in the fourth quarter commenced demolition on Eastpointe, an apartment community in Boulder. It will build a new $117 million complex there called Parc Mosaic.

Last week, Aimco filed an appeal in its court battle with Airbnb.

Shares of Aimco were down about 1 percent to around $40 in midday trading.

Molly Armbrister, Denver Market Reporter  CoStar Group   
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