Apartment Investment and Management Company (NYSE: AIV) Announces First Quarter 2009 Results

DENVER, May 1  /PRNewswire-FirstCall/ -- 

  First Quarter 2009 Highlights
  --  Funds From Operations (FFO, as defined below) - FFO, before operating
      real estate impairment recoveries, of $0.42 per share was $0.09 above
      the mid-point of guidance of $0.33 per share primarily due to
      favorable property operating results and lower general and
      administrative expenses.
  --  Same Store Results (as defined below) - When comparing first quarter
      2009 to first quarter 2008, Same Store property operations generated
      net operating income growth of 0.2%, exceeding the mid-point of
      guidance of negative 1.5%.  Same Store revenue declined 0.6% and
      expenses declined 1.9%.  Occupancy declined 1.3% from 94.8% for the
      first quarter 2008 to 93.5% for the first quarter 2009.
  --  Property Sales and Asset Allocation - During the first quarter 2009,
      Aimco sold ten properties for $83.1 million, generating $14.3 million
      in net proceeds to Aimco, after distributions to limited partners,
      repayment of existing property debt and transaction costs.  Aimco
      continues to market properties located in its non-target markets and
      lower rated locations within its target markets.
  --  Capital Markets Activity - During the first quarter 2009, Aimco
      refinanced property loans totaling $110.1 million generating net
      proceeds to Aimco of $55.6 million.  The new loans had a weighted
      average maturity of ten years and weighted average interest rate of
      5.87%.  Approximately $99.0 million of the property loans refinanced
      during the first quarter represented accelerated refinancing of loans
      maturing in future periods.  Debt service coverage and fixed charge
      coverage ratios, as defined in the credit facility, were 1.63:1 and
      1.42:1 for the first quarter 2009 compared to bank compliance levels
      of 1.50:1 and 1.30:1, respectively, and consistent with the ratios of
      1.63:1 and 1.43:1 for the fourth quarter 2008.
  --  Redevelopment - During the first quarter 2009, Aimco invested $20.4
      million in conventional redevelopment projects and completed seven of
      the 37 projects that were active at the end of 2008.  Additionally,
      Aimco elected to reduce the scope of certain projects, resulting in a
      $21.5 million reduction in their estimated cost of completion.  Aimco
      also invested $8.2 million in seven tax credit redevelopment projects
      during the first quarter 2009.  Net operating income generated by
      redevelopment properties increased approximately $3.0 million during
      the first quarter 2009.
  --  Investment Management - Investment management income, net of tax, for
      the first quarter 2009 totaled $6.9 million with 86% of investment
      management revenue generated from recurring asset management
      activities and deferred tax credit income.

  --  Dividend - Aimco's Board of Directors declared a cash dividend of
      $0.10 per share on its Class A Common Stock for the quarter ended
      March 31, 2009.  The dividend is payable May 29, 2009, to shareholders
      of record on May 15, 2009.


  2009 Outlook
  --  Property Operations - Given the challenging market conditions, Aimco
      remains focused on retaining its existing residents and maintaining
      tight expense control.  For the second quarter 2009, Same Store net
      operating income is expected to decline 2.0% to 3.0% when compared to
      second quarter 2008.  For the full year 2009, expectations are
      unchanged at 0% to down 5.0% compared to full year 2008.
  --  Property Sales and Asset Allocation - Aimco continues to increase its
      allocation of capital to well located properties within its target
      markets and continues to market approximately $2.0 billion of
      non-target conventional and affordable assets.
  --  Balance Sheet and Liquidity - Aimco also continues to focus on
      maintaining a sound balance sheet with balanced sources and uses of
      cash, ample liquidity and coverage ratios adequate to satisfy bank
      debt covenants.  Aimco is financed primarily with long-term,
      non-recourse property debt, which represented 84% of Aimco's leverage
      at March 31, 2009, with a weighted average maturity of 9.6 years. 
      Aimco also is financed with perpetual preferred equity, which
      represented approximately 11% of Aimco's leverage at March 31, 2009. 
      On average, approximately 4%, or $290.0 million, of Aimco's leverage
      is subject to refunding in any one year.  In order to limit refunding
      risk, during 2009 Aimco intends to refinance 26 property loans
      totaling $434.2 million that mature during the balance of 2009 through
      2011.  The remaining balance of property debt maturities through 2011
      totals $99.9 million and is related to four loans, all of which mature
      in 2011.  In addition, net cash proceeds from asset sales are expected
      to be used first to reduce Aimco's $350.0 million bank term debt that
      matures the first quarter of 2011 and to increase cash reserves.

  --  FFO Outlook - For the second quarter 2009, FFO, before operating real
      estate impairments, is expected to range from $0.37 to $0.43 per share
      and full year 2009 FFO expectations are unchanged from a range of
      $1.65 to $1.95 per share.


  First Quarter 2009 Financial Results


In accordance with Generally Accepted Accounting Principles (GAAP), all previously reported share and per share data have been adjusted to take into account the special dividends paid on August 29, 2008, December 1, 2008, and January 29, 2009, which resulted in the issuance of approximately 5.7 million, 12.6 million and 15.6 million additional shares of Aimco's Class A Common Stock, respectively.

  --  Net loss attributable to common stockholders for the quarter was $37.7
      million, compared with a loss of $38.9 million for the first quarter
      2008.  Higher gains on dispositions of unconsolidated real estate of
      $11.0 million, an increase in property operating income of $10.5
      million, a decrease in other expenses of $4.3 million and lower
      general and administrative expenses of $1.3 million were offset by
      higher depreciation and amortization of $19.7 million, lower interest
      income of $4.8 million and lower asset management and tax credit
      revenues of $3.3 million.  Earnings per share (EPS) attributable to
      common stockholders was a loss of $0.33 on a diluted basis, compared
      with a loss of $0.30 per share in the first quarter 2008.
  --  Funds from operations (diluted) (FFO) is a non-GAAP financial measure
      defined in the glossary in the Supplemental Information (the
      Glossary).  FFO calculated in accordance with the definition
      prescribed by the National Association of Real Estate Investment
      Trusts (NAREIT) was $51.9 million, or $0.45 per share, compared with
      $67.3 million, or $0.51 per share, in the first quarter 2008.  FFO,
      before net operating real estate impairment recoveries, was $49.4
      million, or $0.42 per share.

  --  Adjusted funds from operations (diluted) (AFFO; a non-GAAP financial
      measure defined in the Glossary) was $35.0 million, or $0.30 per
      share, compared with $46.7 million, or $0.36 per share, in the first
      quarter 2008.  AFFO includes deductions of $0.12 and $0.15 per share
      for capital replacement expenditures in the first quarter 2009 and the
      first quarter 2008, respectively.



  Adjusted Diluted Per Share Results*
                                                      FIRST QUARTER
                                                     2009       2008
  Earnings (loss) - EPS                            ($0.33)    ($0.30)
  Funds from operations - FFO                       $0.45      $0.51
  FFO before operating real estate
   impairment recoveries                            $0.42      $0.51
  Adjusted funds from operations - AFFO             $0.30      $0.36

  * These per share results reflect the cumulative effect of the shares
  issued as part of Aimco's special dividends paid in 2008 and on
  January  29, 2009.  To estimate the approximate per share results before
  the effect of Aimco's special dividends, multiply the reported per
  share results by a factor of 1.48.


  Management Comments


Chairman and Chief Executive Officer Terry Considine comments: "Aimco executed its plan successfully during the first quarter.  Same Store property operating results were essentially equal to the first quarter 2008 despite a challenging operating environment.  Corporate overhead expenses have been reduced significantly, redevelopment expenditures in 2009 are expected to be 75% lower than in 2008 and the reduction in Aimco's regular quarterly dividend allows Aimco to retain a substantial amount of cash.  Over the coming quarters, we will remain focused on serving our customers, upgrading our portfolio and strengthening our balance sheet."

President, Chief Investment Officer and Chief Financial Officer David Robertson adds:  "Balance sheet safety and liquidity are being enhanced by the sale of non-core assets and the accelerated refinancing of property mortgage debt.  We sold $83 million of assets during the quarter at an average cap rate of 7.1% and continue to market other non-core assets.  We refinanced $110 million of property debt, $99 million of which represented accelerated refinancing of property loans maturing subsequent to the first quarter, generating excess proceeds to Aimco of $56 million.  We will continue to focus on taking the actions necessary to ensure that we maintain appropriate liquidity and balance sheet risk."

  Property Operations
  Conventional Real Estate Operations


Conventional real estate operations consist of Aimco's diversified portfolio of market rate apartment communities.  At the end of the first quarter 2009, this portfolio included 303 properties with 91,774 units in which Aimco had a weighted average ownership of 90%.  Average rents for the conventional real estate portfolio increased from $933 per unit during the first quarter 2008 to $1,030 per unit during the first quarter 2009.  During the first quarter 2009, conventional real estate operations generated net operating income of $141.4 million.

"Same Store" Results

In the first quarter 2009, the Same Store portfolio included 226 communities with 64,996 Effective Units (see the Glossary) based on Aimco's weighted average ownership of 91% (See Supplemental Schedules 6a and 6b).

Comparing Same Store results in the first quarter 2009 with the first quarter 2008, total revenue decreased $1.2 million, or 0.6%.  The decrease in revenue was primarily the result of lower occupancy, which was down 1.3% from 94.8% to 93.5%, partially offset by higher average rent, up $1 per unit, or 0.1%, from $965 per unit to $966 per unit.  Same Store expenses of $76.0 million decreased $1.4 million, or 1.9%, compared with the prior year, due to decreases in several areas including marketing, repairs and maintenance, turn costs and contract services, partially offset by increases in utilities and taxes.  Same Store portfolio net operating income was $116.7 million for the first quarter 2009, up 0.2% from the first quarter 2008.

  Same Store Operating Results
                                          FIRST QUARTER
                                 Year-over-year         Sequential
                                                       4th
                             2009    2008   Variance   Qtr    Variance
  Same Store Operating
   Measures
    Average Physical
     Occupancy               93.5%   94.8%   -1.3%     94.7%   -1.2%
    Average Rent Per Unit    $966    $965     0.1%     $969    -0.3%
  Total Same Store ($mm)
    Revenue                $192.7  $193.9    -0.6%   $194.9    -1.1%
    Expenses                (76.0)  (77.4)   -1.9%    (73.2)    3.8%
    NOI                    $116.7  $116.5     0.2%   $121.7    -4.1%


  Affordable Real Estate Operations


At the end of the first quarter 2009, Aimco's owned affordable portfolio included 285 properties with 33,380 units in which Aimco had an average ownership of 53%.  During the first quarter 2009, affordable property operations generated net operating income of $17.9 million.  Average month-end occupancy for the affordable portfolio decreased 80 basis points from 97.9% for the first quarter 2008 to 97.1% for the first quarter 2009, while average rent per unit increased 0.8% from $743 to $749 per unit.

Investment Management

Investment management includes activities related to our owned portfolio of properties as well as services provided to affiliated partnerships.  Investment management includes portfolio strategy, capital allocation, joint ventures, tax credit syndication, acquisitions, dispositions and other transaction activities.  Within our owned portfolio, we refer to these activities as Portfolio Management, and their benefit is seen in property operating results and in investment gains.  For affiliated partnerships, we refer to these activities as Asset Management for which we are separately compensated through fees paid by third party investors.

Investment management income includes the fees earned for providing asset management services to third party investors, syndication fees and deferred income related to tax credit activities, and portfolio management income earned through investment gains on our owned assets.  Consolidated investment management income, net of tax, was $6.9 million in the first quarter 2009 compared to $9.0 million in the first quarter 2008.  Recurring asset management activities and deferred tax credit income comprised 86% and 68% of total investment management revenue during the first quarter 2009 and 2008, respectively.  See Supplemental Schedule 11 for additional information on investment management income.

Portfolio Management

Portfolio management includes the ongoing allocation of investment capital to meet our geographic and product type goals.  Our geographic allocation strategy focuses on the largest 20 U.S. markets as measured by total market capitalization.  We believe these markets to be deep, relatively liquid and possessing desirable long-term growth characteristics.  These target markets are primarily coastal markets, and also include a number of Sun Belt cities and Chicago, Illinois.  As we execute this strategy, we expect to reduce our investment in markets outside the largest 20 markets and to increase our investment in the largest 20 markets both by making acquisitions and through redevelopment spending.

In the first quarter 2009, Aimco sold seven conventional properties and three affordable properties with 1,668 and 324 units, respectively, for $83.1 million in gross proceeds (Aimco share $75.4 million).  Aimco's share of net proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $14.3 million.  Aimco exited the San Antonio, Texas market during the first quarter 2009.

See Supplemental Schedules 6 and 7 for additional details regarding Aimco's portfolio allocation and Supplemental Schedule 8 for additional information on disposition activity.

Balance Sheet and Liquidity

Aimco is financed primarily with $5.6 billion of long-term non-recourse property debt, which represented approximately 84% of Aimco's leverage as of the end of the first quarter 2009.  During the first quarter 2009, Aimco closed loans on 12 properties generating gross proceeds of $172.9 million at a weighted average interest rate of 5.87%.  After distributions to limited partners, repayment of existing property debt and transaction costs, Aimco's share of net proceeds was $55.6 million.  At the end of the first quarter 2009, the weighted average maturity of Aimco's non-recourse property debt was 9.6 years.

Aimco's preferred securities represented approximately 11% of Aimco's leverage at the end of the first quarter 2009 at which time Aimco had $782.9 million in perpetual preferred stock and preferred partnership units at a weighted average rate of 7.6%.

Aimco's recourse debt is limited to its revolving credit facility and corporate term debt, which represented approximately 5% of Aimco's leverage at the end of the first quarter 2009.  At the end of the first quarter 2009, the balance on Aimco's $635.0 million revolving credit facility was $15.0 million and available capacity was $577.0 million, net of $43.0 million of letters of credit drawn against the facility.  The balance on Aimco's corporate term debt of $350.0 million matures the first quarter of 2011.  In connection with these recourse obligations, Aimco is subject to debt service coverage and fixed charge coverage compliance levels of 1.50:1 and 1.30:1, respectively, as defined in the credit facility.  For the first quarter 2009, Aimco's debt service coverage and fixed charge coverage ratios were 1.63:1 and 1.42:1, respectively, and Aimco expects to maintain these ratios in excess of bank compliance levels.

As of March 31, 2009, Aimco had outstanding $6.7 billion of consolidated debt, which consisted of $5.4 billion of fixed rate property debt and $1.3 billion of floating rate property and corporate debt.  In addition, Aimco had outstanding $73.0 million of floating rate preferred stock.  Aimco's FFO exposure to changes in floating interest rates is mitigated by $562.7 million of tax-exempt bonds with rates tied to the Securities Industry and Financial Markets Association Municipal Swap Index (SIFMA) (previously named the Bond Market Association Index), which has over the last twenty years moved at approximately 0.72% for a 1.00% change in LIBOR.  Aimco's exposure is further offset by floating rate assets, such as cash and notes receivable, and interest capitalized on redevelopment properties.  Based on Aimco's proportionate share of quarter-end balances, Aimco estimates its sensitivity to a 100 basis point change in LIBOR to be approximately $0.01 per share per quarter.

See Supplemental Schedule 5 for more detail on debt characteristics and activity.

Dividends on Common Stock

On April 30, 2009, the Aimco Board of Directors declared a quarterly cash dividend of $0.10 per share of Class A Common Stock for the quarter ended March 31, 2009, payable on May 29, 2009, to shareholders of record on May 15, 2009.

Earnings Conference Call

Please join Aimco management for the First Quarter 2009 earnings conference call to be held Friday, May 1, 2009, at 1:00 p.m. Eastern time.

  Live Conference Call
  Domestic Dial-In Number:  1-866-843-0890
  International Dial-In Number:  1-412-317-9250
  Passcode:  8355202
  Webcast:  http://www.aimco.com/CorporateInformation/Overview.aspx

  Conference Call Replay
  Domestic Dial-In Number: 1-877-344-7529
  International Dial-In Number: 1-412-317-0088
  Passcode:  429339



The conference call replay will be available until 9:00 a.m. Eastern time on May 18, 2009.

Webcast Replay:  http://www.aimco.com/CorporateInformation/About/Financial/news.aspx

Supplemental Information

The full text of this release and the Supplemental Information referenced in this release is available on Aimco's Website at the link http://www.aimco.com/CorporateInformation/About/Financial/QEarnRelease.aspx.

Forward-looking Statements

This earnings release and Supplemental Information contain forward-looking statements, including statements regarding projected results and specifically forecasts of second quarter and full year 2009 results.  These forward-looking statements are based on management's judgment as of this date and include certain risks and uncertainties.  Risks and uncertainties include, but are not limited to, Aimco's ability to maintain current or meet projected occupancy, rent levels and Same Store results and Aimco's ability to close transactions necessary to generate sales proceeds for debt repayment and other purposes and to generate fee income as anticipated.  Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond the control of Aimco, including, without limitation:  financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; national and local economic conditions; energy costs; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which Aimco operates and competition for tenants in such markets; insurance risk; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; the timing of acquisitions and dispositions; natural disasters and severe weather such as hurricanes;  litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by Aimco.  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 and depends on our ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership.  Readers should carefully review Aimco's financial statements and notes thereto, as well as the risk factors described in Aimco's Annual Report on Form 10-K for the year ended December 31, 2008, and the other documents Aimco files from time to time with the Securities and Exchange Commission.  These forward-looking statements reflect management's judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances.  This press release does not constitute an offer of securities for sale.

About Aimco

Aimco is a real estate investment trust headquartered in Denver, Colorado that owns and operates a geographically diversified portfolio of apartment communities.  Aimco, through its subsidiaries and affiliates, is one of the largest owners and operators of apartment communities in the United States with 976 properties, including 160,118 apartment units, and serves approximately 500,000 residents each year.  Aimco's properties are located in 46 states, the District of Columbia and Puerto Rico.  Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500.  For more information about Aimco, please visit our website at http://www.aimco.com/.

  GAAP Income Statements
  ----------------------------
  Consolidated Statements of Income
  (in thousands, except per share data)
   (unaudited)
                                                    Three Months Ended
                                                         March 31,
                                                         ---------
                                                       2009      2008
                                                       ----      ----
  REVENUES:
    Rental and other property revenues              $338,093  $332,892
    Property management revenues, primarily from
     affiliates                                        1,644     2,104
    Asset management and tax credit revenues           9,539    12,852
                                                       -----    ------
          Total revenues                             349,276   347,848
                                                     -------   -------

  OPERATING EXPENSES:
    Property operating expenses                      156,489   161,764
    Property management expenses                       1,433     1,335
    Investment management expenses                     3,789     4,387
    Depreciation and amortization                    123,215   103,500
    General and administrative expenses               20,072    21,366
    Other expenses, net                                2,292     5,751
                                                       -----     -----
          Total operating expenses                   307,290   298,103
                                                     -------   -------

  Operating income                                    41,986    49,745

  Interest income                                      3,340     8,115
  Provision for losses on notes receivable              (150)     (223)
  Interest expense                                   (91,511)  (91,533)
  Equity losses of unconsolidated real estate
   partnerships                                       (2,040)   (1,029)
  Provision for operating real estate
   impairment losses                                  (1,760)        -
  Gain (loss) on dispositions of unconsolidated
   real estate and other                              10,862      (137)
                                                      ------    ------

  Loss before income taxes and discontinued
   operations                                        (39,273)  (35,062)

  Income tax benefit                                   3,016     1,772
                                                       -----     -----

  Loss from continuing operations                    (36,257)  (33,290)

    Income from discontinued operations, net (1)       3,688     8,159
                                                       -----     -----

  Net loss                                           (32,569)  (25,131)
  Noncontrolling interests(2):
    Net loss (income) attributable to
     noncontrolling interests in consolidated
     real estate partnerships                          6,273    (1,843)
    Net income attributable to preferred
     noncontrolling interests in Aimco
     Operating Partnership (3)                        (1,069)   (1,782)
    Net loss attributable to common
     noncontrolling interests in Aimco
     Operating Partnership (3)                         2,835     4,108
                                                       -----     -----
        Total noncontrolling interests                 8,039       483
                                                       -----     -----
  Net loss attributable to Aimco                     (24,530)  (24,648)
  Net income attributable to Aimco preferred
   stockholders                                       13,166    14,208
                                                      ------    ------
  Net loss attributable to Aimco common
   stockholders                                     $(37,696) $(38,856)
                                                    ========  ========

  Weighted average common shares outstanding -
   basic and diluted (4)                             115,099   127,961
                                                     =======   =======

  Earnings (loss) per common share - basic and
   diluted (4):
      Loss from continuing operations (net of
       income attributable to noncontrolling
       interests and Aimco preferred
       stockholders)                                  $(0.33)   $(0.34)
      Income from discontinued operations (net
       of income attributable to noncontrolling
       interests)                                          -      0.04
                                                        ----      ----
    Net loss attributable to Aimco common
     stockholders                                     $(0.33)   $(0.30)
                                                      ======    ======

  Notes to Consolidated Statements of Income

  (1) Income from discontinued operations
   consists of the following (in thousands):


                                                        Three Months
                                                           Ended
                                                         March 31,
                                                         ---------
                                                       2009      2008
                                                       ----      ----
  Rental and other property revenues (5)              $1,840   $91,724
  Property operating expenses (5) (6)                 (3,998)  (46,126)
  Depreciation and amortization                         (379)  (24,930)
  Other expenses, net                                 (1,096)     (644)
                                                      ------    ------
       Operating income                               (3,633)   20,024
  Interest income                                         19       526
  Interest expense                                    (1,230)  (16,863)
                                                      ------   -------
       (Loss) income before gain on dispositions
        of real estate, impairment losses and
        income taxes                                  (4,844)    3,687
  Gain on dispositions of real estate                  4,550     4,239
  Real estate impairment recoveries                    4,613         -
  Income tax (expense) benefit                          (631)      233
                                                        ----      ----
       Income from discontinued operations, net       $3,688    $8,159
                                                      ======    ======
  Income from discontinued operations
   attributable to noncontrolling
   interests:
       Noncontrolling interests in
        consolidated real estate partnerships (5)    $(3,662)  $(3,635)
       Noncontrolling interests in Aimco
        Operating Partnership                           (278)     (449)
                                                        ----      ----
         Total income from discontinued
          operations attributable to
          noncontrolling interests                   $(3,940)  $(4,084)
                                                     =======   =======


  (2) Noncontrolling interests refers to interests in consolidated
  Partnerships held by parties other than Aimco.
  (3) The Aimco Operating Partnership is AIMCO Properties, L.P., the
  operating partnership in Aimco's UPREIT structure.
  (4) Weighted average share and earnings per share amounts for the periods
  presented above have been retroactively adjusted for the effect of shares
  of common stock issued pursuant to the special dividends paid in 2008 and
  January 2009.
  (5) Income from discontinued operations for the three months ended March
  31, 2009, attributable to properties classified as held for sale at March
  31, 2009, includes $0.9 million of rental and other property revenues and
  $0.7 million of property operating expenses. Noncontrolling interests in
  consolidated real estate partnerships' share of these amounts totaled less
  than $0.1 million.
  (6) Property operating expenses for the three months ended March 31, 2009,
  includes $1.9 million of net casualty losses.


  GAAP Balance Sheets
  -------------------
  Consolidated Balance Sheets
  (in thousands)
  (unaudited)

                                      March 31, 2009  December 31, 2008
                                      --------------  -----------------
   ASSETS
   Buildings and improvements             $8,568,442         $8,520,382
   Land                                    2,337,853          2,326,671
   Accumulated depreciation               (2,883,910)        (2,771,131)
                                          ----------         ----------
     Total real estate                     8,022,385          8,075,922
   Cash and cash equivalents                  93,233            299,676
   Restricted cash                           265,639            258,156
   Accounts receivable                        80,689             92,923
   Accounts receivable from
    affiliates                                32,833             36,372
   Deferred financing costs                   58,388             59,070
   Notes receivable from
    unconsolidated real estate
    partnerships                              24,267             22,567
   Notes receivable from non-
    affiliates                               139,949            139,897
   Investment in unconsolidated real
    estate partnerships                      121,322            119,036
   Other assets                              199,203            188,764
   Deferred income tax asset, net             27,052             28,326
   Assets held for sale                       17,258             94,157
                                              ------             ------
       Total assets                       $9,082,218         $9,414,866
                                          ==========         ==========
   LIABILITIES AND EQUITY
   Property tax-exempt bond
    financing                               $720,722           $721,971
   Property loans payable                  5,558,506          5,545,893
   Term loans                                350,000            400,000
   Credit facility                            15,000                  -
   Other borrowings                           90,941             95,981
                                              ------             ------
     Total indebtedness                    6,735,169          6,763,845
   Accounts payable                           32,902             64,241
   Accrued liabilities and other             291,081            411,209
   Deferred income                           184,796            195,202
   Security deposits                          42,774             43,088
   Liabilities related to assets held
    for sale                                   5,176             70,599
                                               -----             ------
       Total liabilities                   7,291,898          7,548,184
                                           ---------          ---------
   Preferred noncontrolling interests
    in Aimco Operating Partnership            87,247             88,148
   Equity:
     Perpetual preferred stock               696,500            696,500
     Class A Common Stock                      1,165              1,162
     Additional paid-in capital            3,061,099          3,056,550
     Notes due on common stock
      purchases                               (2,148)            (3,607)
     Distributions in excess of
      earnings                            (2,372,038)        (2,335,628)
                                          ----------         ----------
       Total Aimco equity                  1,384,578          1,414,977
                                           ---------          ---------
   Noncontrolling interests in
    consolidated real estate
    partnerships                             323,414            363,557
   Common noncontrolling interests in
    Aimco Operating Partnership               (4,919)                 -
                                              ------             ------
       Total equity                        1,703,073          1,778,534
                                           ---------          ---------
       Total liabilities and equity       $9,082,218         $9,414,866
                                          ==========         ==========



  Outlook and Forward Looking Statement
  Second Quarter and Full Year 2009
  (unaudited)



This earnings release and Supplemental Information contain forward-looking statements, including statements regarding projected results and specifically forecasts of second quarter and full year 2009 results.  These forward-looking statements are based on management's judgment as of this date and include certain risks and uncertainties.  Risks and uncertainties include, but are not limited to, Aimco's ability to maintain current or meet projected occupancy, rent levels and Same Store results and Aimco's ability to close transactions necessary to generate sales proceeds for debt repayment and other purposes and to generate fee income as anticipated.

Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond the control of Aimco, including, without limitation:  financing risks, including the availability and cost of capital markets financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; national and local economic conditions; energy costs; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which Aimco operates and competition for tenants in such markets; insurance risk; acquisition and development risks, including failure of such acquisitions to perform in accordance with projections; the timing of acquisitions and dispositions; natural disasters and severe weather such as hurricanes;  litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by Aimco.  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 and depends on our ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership.

Readers should carefully review Aimco's financial statements and notes thereto, as well as the risk factors described in Aimco's Annual Report on Form 10-K for the year ended December 31, 2008, and the other documents Aimco files from time to time with the Securities and Exchange Commission.  These forward-looking statements reflect management's judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances.  This press release does not constitute an offer of securities for sale.

                                     Second Quarter 2009    Full Year 2009
                                     -------------------   ----------------
  GAAP earnings per share (1)(3)      -$0.48  to -$0.42   -$1.68  to -$1.37
  FFO per share (2)(4)                 $0.37  to  $0.43    $1.65  to  $1.95
  2009 Same Store operating
   assumptions:
    Weighted average daily
     occupancy                          93.0% to   94.0%    93.5% to   94.5%
    NOI change - sequential            -1.25% to  -0.25%
    NOI change - 2009 vs. 2008          -3.0% to   -2.0%    -5.0% to    0.0%


  (1) Aimco's earnings per share guidance does not include estimates for
  (i) gains on dispositions or impairment losses due to the unpredictable
  timing of transactions, (ii) gains or losses on early repayment of debt,
  (iii) preferred stock redemption related costs or gains or (iv) potential
  future share repurchases or special dividends.
  (2) FFO per share represents FFO before operating real estate impairment
  losses and preferred redemption related costs or gains.
  (3) The GAAP earnings per share is calculated based on 115.2 million
  weighted average common shares (diluted) for second quarter and full year
  2009.
  (4) FFO per share is calculated based on 116.6 million weighted average
  common shares (diluted) for second quarter and 116.5 million weighted
  average common shares (diluted) for full year 2009.


DATASOURCE: Apartment Investment and Management Company



CONTACT:  investor relations, [phone], , or

Elizabeth Coalson, Vice President Investor Relations, [phone], both of

Aimco



Web Site:  http://www.aimco.com/ 

Copyright