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

DENVER, Oct. 30  /PRNewswire-FirstCall/ -- 

  Third Quarter 2009 Highlights
  --  Funds From Operations (FFO, as defined in the Glossary) - FFO of $0.41
      per share, before operating real estate impairments of $0.22 per
      share, was within the $0.36 to $0.42 per share guidance range.
  --  Property Operations - During the third quarter, Aimco's share of total
      conventional and affordable property net operating income was $145.1
      million.  Total conventional and affordable property net operating
      income, adjusted for property acquisitions and dispositions, was 1.2%
      lower than in third quarter 2008.
      --  Same Store Results (as defined in the Glossary) - When comparing
          third quarter 2009 to third quarter 2008, Same Store property net
          operating income declined 5.4%, within the guidance range of
          negative 5.0% to negative 6.0%.  Same Store revenue declined 2.9%
          and expenses increased 1.1%.  Average daily occupancy declined 20
          basis points from 95.0% for third quarter 2008 to 94.8% for third
          quarter 2009, and increased 200 basis points from second quarter
          2009.

      --  Non-Same Store Results - Third quarter 2009 conventional
          redevelopment net operating income increased 16.4% compared to
          third quarter 2008 and affordable property operations, including
          affordable redevelopment operations, generated net operating
          income growth of 6.0% during the same period.



  --  Capital Markets Activity



At the beginning of third quarter 2009, Aimco had $350 million of term debt outstanding, due first quarter 2011.  During third quarter 2009, Aimco repaid $90 million of term debt with proceeds from property sales. An additional payment of $50 million was made after quarter's end, reducing the balance to $210 million.

Aimco has focused on reducing refunding risk by accelerating refinancing of property loans maturing prior to 2012.  At the beginning of third quarter 2009, Aimco's share of property debt maturing during 2009 through 2011 was $221.3 million.  During third quarter, through refinancing, repayment and property sales, Aimco reduced these maturities by $36.8 million.  As of September 30, 2009, the balance of property debt maturing through 2011 totaled $184.5 million in nine loans.  Of these loans, refunding risk has since been eliminated on all but four loans totaling $164.0 million which are expected to be refinanced at their maturity in 2011.

  --  Property Sales and Asset Allocation - During third quarter 2009, Aimco
      sold 28 properties for $366.6 million, generating $125.0 million in
      net proceeds to Aimco, after distributions to limited partners,
      repayment of existing property debt and transaction costs. 
      Year-to-date through September 30, 2009, Aimco has sold 58 properties
      generating net proceeds to Aimco of $244.2 million.  Aimco continues
      to market properties located in its non-target markets and in lower
      rated locations within its target markets.

  --  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
      September 30, 2009.  The dividend is payable November 30, 2009, to
      stockholders of record on November 20, 2009.


  2009 Outlook

  --  Property Operations - Aimco remains focused on retaining existing
      residents and maintaining expense control.  Market rents have declined
      during 2009, although the rate of decline has eased.  As a result of
      rental rate reductions, fourth quarter 2009 Same Store net operating
      income is expected to decline 7.0% to 8.0% when compared to fourth
      quarter 2008.  For the full year 2009, Same Store net operating income
      is expected to decline 4.0% to 5.0% compared to full year 2008. 
      Positive net operating income results in the redevelopment and
      affordable property portfolios are expected to largely offset the
      declines in the Same Store results.
  --  Balance Sheet and Liquidity - Aimco continues to focus on balancing
      sources and uses of capital without reliance on capital markets for
      equity or debt, except for the refunding of property debt.  Aimco
      plans to meet liquidity requirements with limited use of its bank line
      of credit, except to support letters of credit.  Aimco's line of
      credit requires compliance with certain coverage ratios with which
      Aimco complies and expects to continue to comply.  Aimco leverage is
      95% long term: 83% non-recourse property debt with a weighted average
      maturity of 8.7 years, and 12% perpetual preferred equity.  On
      average, approximately 5%, or $300 million, of Aimco's share of
      leverage is subject to refunding in any one year.  Aimco's term debt
      totaling $210 million at October 30, 2009, matures in first quarter
      2011, and is expected to be repaid prior to maturity with proceeds
      from property sales.
  --  Property Sales and Asset Allocation - Aimco intends to sell
      approximately $450 million of additional non-target conventional and
      affordable assets by year end to fund repayment of its term debt due
      first quarter 2011.  Once the term debt is repaid, future asset sales
      will be used to increase Aimco's allocation of capital to well located
      properties within its target markets.

  --  FFO Outlook - Aimco's previously provided guidance for full year 2009
      FFO, before operating real estate impairments and preferred stock
      redemption related gains, was a range of $1.55 to $1.75 per share,
      including $0.15 per share of dilution from 2009 property sales.  Based
      on year-to-date financial results and our projections for the
      remainder of the year, we are narrowing our full year 2009 FFO
      guidance to $1.61 to $1.69 per share.  For the fourth quarter 2009,
      FFO is expected to range from $0.32 to $0.40 per share, inclusive of
      dilution from 2009 asset sales.


  Management Comments



Chairman and Chief Executive Officer Terry Considine comments:  "Aimco properties enjoyed high occupancy and property incomes from all portfolios taken together were stable.  Same Store rents declined from 2008; however the rate of decline eased during third quarter.  Property values appear to have stabilized after substantial declines from their 2007 high.  Proceeds from property sales are repaying our term debt.  Refunding risk has been further reduced by extending most property debt maturities before 2012.  Business simplification has led to lower offsite costs, including G&A expenses, and provided a substantial offset to earnings dilution from property sales.  Notwithstanding a solid quarter, business conditions remain fragile and unpredictable.  We look to the future with optimism and also great caution."

President, Chief Investment Officer and Chief Financial Officer David Robertson adds:  "During the quarter we sold $367 million of assets, plus an additional $124 million during October.  Proceeds from these sales were used to pay down our term debt by $140 million, leaving a $210 million balance due in early 2011.  We currently have an additional $800 million of assets either under contract or in negotiations, and we plan to sell approximately $450 million of this amount to repay our term debt, bringing total sales in 2009 to approximately $1.3 billion.  Any additional sales will be used to fund investments in our existing portfolio or the acquisition of higher rated assets in our target markets."

Third quarter 2009 Financial Results

In accordance with United States 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 December 1, 2008, and January 29, 2009, which resulted in the issuance of approximately 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 $40.5
      million, compared to net income of $159.5 million for the third
      quarter 2008.  Lower gains on dispositions of consolidated and
      unconsolidated real estate of $194.9 million, lower asset management
      and tax credit revenues of $22.3 million, higher operating real estate
      impairment losses of $23.3 million and higher depreciation and
      amortization expense of $15.0 million were partially offset by a
      decrease in income attributable to noncontrolling interests of $45.7
      million and lower general and administrative expenses of $11.7
      million.  Earnings per share (EPS) attributable to common stockholders
      were a loss of $0.35 on a diluted basis, compared with earnings of
      $1.35 per share in third 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 $22.3 million, or $0.19 per share, compared with
      $73.0 million, or $0.60 per share, in third quarter 2008.  FFO, before
      operating real estate impairments and preferred stock redemption
      related gains, was $47.4 million, or $0.41 per share, down from $0.62
      per share in third quarter 2008.  Third quarter 2009 operating real
      estate impairments totaled $0.22 per share and resulted from the
      expected fourth quarter sale of four specific assets.

  --  Adjusted funds from operations (diluted) (AFFO; a non-GAAP financial
      measure defined in the Glossary) was $28.8 million, or $0.25 per
      share, compared with $49.1 million, or $0.41 per share, in third
      quarter 2008.  AFFO includes deductions of $0.16 and $0.21 per share
      for capital replacement expenditures in third quarter 2009 and third
      quarter 2008, respectively.




  Adjusted Diluted Per Share Results*
                                            THIRD QUARTER    YEAR- TO-DATE
                                            2009     2008   2009       2008
                                            ----     ----   ----       ----
   Earnings (loss)  EPS                   ($0.35)   $1.35 ($0.94)     $2.93
   --------------------                   ------    ----- ------      -----
   Funds from operations  FFO              $0.19    $0.60  $0.95      $1.69
   --------------------------              -----    -----  -----      -----
   FFO before operating real estate
    impairments and preferred stock
    redemption related gains               $0.41    $0.62  $1.29      $1.76
   --------------------------------        -----    -----  -----      -----
   Adjusted funds from operations  AFFO    $0.25    $0.41  $0.86      $1.23
   ------------------------------------    -----    -----  -----      -----

  * 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.



  Property Operations



Property operating results discussed below represent Aimco's share of reported amounts.

Conventional Real Estate Operations

Conventional real estate operations relate to Aimco's diversified portfolio of market rate apartment communities.  At the end of third quarter 2009, this portfolio included 266 properties with 82,142 units in which Aimco had a weighted average ownership of 90%.  Average rents for the conventional real estate portfolio increased 5.6% from $987 per unit during third quarter 2008 to $1,042 per unit during third quarter 2009.  During third quarter 2009, conventional real estate operations generated net operating income of $127.2 million.  Aimco's Same Store portfolio net operating income was $106.1 million for third quarter 2009, down 5.4% from third quarter 2008, while conventional redevelopment property operations generated net operating income of $22.6 million during the quarter, an increase of 16.4% compared to third quarter 2008.

"Same Store" Results

In the third quarter 2009, the Same Store portfolio included 195 communities with 57,968 Effective Units (see the Glossary) based on Aimco's weighted average ownership of 91%.

Comparing Same Store results in third quarter 2009 with third quarter 2008, total revenue decreased $5.2 million, or 2.9%.  The decrease in revenue was primarily the result of lower average daily occupancy, down 20 basis points from 95.0% to 94.8%, and lower average rent, down 3.5% or $36 per unit, from $1,026 per unit to $990 per unit.  Same Store expenses increased $0.8 million or 1.1%, primarily due to higher property tax and insurance expenses, partially offset by decreased turnover costs.

  Same Store Operating Results
                                  THIRD QUARTER          THIRD QUARTER
                                 Year-over-year           Sequential
                                 --------------          -------------
                              2009    2008   Variance  2nd Qtr    Variance
                              ----    ----   --------  -------    --------
  Same Store Operating
   Measures
  --------------------
      Average Daily
       Occupancy              94.8%   95.0%    -0.2%     92.8%      2.0%
      -------------           ----    ----     ----      ----       ---
      Average Rent Per Unit   $990  $1,026     -3.5%   $1,008      -1.8%
      ---------------------   ----  ------     ----    ------      ----
  Total Same Store ($mm)
  ----------------------
      Revenue               $177.7  $182.9     -2.9%   $177.3       0.2%
      -------               ------  ------     ----    ------       ---
      Expenses               (71.6)  (70.8)     1.1%    (68.8)      4.1%
      --------               -----  ------      ---     -----       ---
      NOI                   $106.1  $112.1     -5.4%   $108.5      -2.2%
      ---                   ------  ------     ----    ------      ----


                                        YEAR-TO-DATE
                                       Year-over-year
                                       --------------
                                    2009    2008  Variance
                                    ----    ----  --------
  Same Store Operating
   Measures
  --------------------
      Average Daily
       Occupancy                    93.7%   94.9%   -1.2%
      -------------                 ----    ----    ----
      Average Rent Per Unit       $1,004  $1,021    -1.7%
      ---------------------       ------  ------    ----
  Total Same Store ($mm)
  ----------------------
      Revenue                     $508.8  $519.9    -2.1%
      -------                     ------  ------    ----
      Expenses                    (200.1) (200.8)   -0.4%
      --------                    ------  ------    ----
      NOI                         $308.7  $319.1    -3.3%
      ---                         ------  ------    ----

  See Supplemental Schedules 6a through 6c for additional information
  on Same Store operating results.




  Affordable Real Estate Operations



At the end of third quarter 2009, Aimco's affordable real estate portfolio included 271 properties with 30,816 units in which Aimco had a weighted average ownership of 54%.  During third quarter 2009, affordable property operations generated net operating income of $17.9 million.  Total affordable property net operating income was 6.0% higher than during third quarter 2008.  Average month-end occupancy for the affordable portfolio decreased 1.1% from 97.6% for third quarter 2008 to 96.5% for third quarter 2009, while average rent per unit increased 3.6% from $728 to $754 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 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.  Aimco's share of investment management income, net of tax, was $6.0 million in the third quarter 2009 compared to $27.7 million in third quarter 2008.  Income based on third quarter transactions contributed less than 1% of third quarter FFO.  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 20 largest 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 20 largest markets and to increase our investment in the 20 largest markets both by making acquisitions and through redevelopment spending.

In third quarter 2009, Aimco sold 21 conventional properties and seven affordable properties with 6,031 and 777 units, respectively, for $366.6 million in gross proceeds (Aimco share $297.6 million).  Aimco's share of net proceeds after distributions to limited partners, repayment of existing property debt and transaction costs was $125.0 million.

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

Redevelopment

During third quarter 2009, Aimco invested $8.6 million in conventional redevelopment projects and completed five of the 21 projects that were active at the end of the second quarter.  Aimco also invested $9.2 million in seven tax credit redevelopment projects during third quarter 2009.

Balance Sheet and Liquidity

At the end of third quarter 2009, Aimco leverage was provided 83% by long-term non-recourse property debt of $5.8 billion ($5.2 billion Aimco share) at a weighted average interest rate of 5.4% and weighted average maturity of 8.7 years.  Aimco's preferred securities represented approximately 12% of Aimco's leverage at the end of the quarter at which time Aimco had $776.2 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 together represented approximately 4% of Aimco's leverage at the end of third quarter 2009.  At that time, the balance on Aimco's revolving credit facility was $15.1 million and available capacity was $119.5 million, net of $45.4 million of letters of credit drawn against the facility.  Aimco's revolving credit facility is used for working capital purposes and to secure letters of credit used in the Aimco business.  The balance on Aimco's corporate term debt of $260.0 million at September 30, 2009, matures in first quarter 2011. Subsequent to quarter's end, the entire balance on the line of credit was repaid and $50 million was repaid on the term debt.  In connection with these recourse obligations, Aimco is subject to Debt Service and Fixed Charge Coverage covenants of 1.50:1 and 1.30:1, respectively, as defined in the Glossary.  For third quarter 2009, Aimco's Debt Service and Fixed Charge Coverage ratios were 1.60:1 and 1.38:1, respectively.  Aimco expects to remain in compliance with these covenants.

At September 30, 2009, Aimco had outstanding $6.2 billion of consolidated debt, which consisted of $5.2 billion of fixed rate property debt, $0.7 billion of floating rate property debt and $0.3 billion of floating rate corporate debt.  In addition, Aimco had outstanding $67.0 million of floating rate preferred stock.  Aimco's floating rate property debt includes $474.7 million of tax-exempt bonds with rates tied to the Securities Industry and Financial Markets Association Municipal Swap Index (SIFMA).  Over the last twenty years the SIFMA rate has moved at approximately 0.73% for a 1.00% change in LIBOR, which reduces Aimco's FFO exposure to changes in floating interest rates.  Additionally,   Aimco's FFO exposure is offset by floating rate assets, such as cash and notes receivable.  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 Schedules 4 and 5 for more detail on preferred equity characteristics and debt characteristics and activity.

Dividends on Common Stock

On October 27, 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 September 30, 2009, payable on November 30, 2009, to stockholders of record on November 20, 2009.  At the end of the third quarter 2009, there were approximately 116.4 million shares of Class A Common Stock outstanding.  See Supplemental Schedule 4 for additional detail on Aimco's securities.

Earnings Conference Call

Please join Aimco management for the third quarter 2009 earnings conference call to be held Friday, October 30, 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:  9147658
  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:  434199



The conference call replay will be available until 9:00 a.m. Eastern time on November 13, 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 fourth 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; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for tenants in such markets; national and local economic conditions; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates; redevelopment risks, including failure of such redevelopments to perform in accordance with projections; the timing of acquisitions and dispositions; insurance risk; natural disasters and severe weather such as hurricanes;  litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; energy costs; 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 916 properties, including 146,581 apartment units, and serves approximately 500,000 residents each year.  Aimco's properties are located in 44 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         Nine Months
                                        Ended                Ended
                                    September 30,        September 30,
                                   --------------       ---------------
                                   2009      2008       2009       2008
                                   ----      ----       ----       ----
  REVENUES:
  Rental and other property
   revenues                      $307,907  $310,563   $925,363   $918,772
  Property management revenues,
   primarily from affiliates        1,114     1,227      4,098      4,746
  Asset management and
   tax credit revenues             10,325    32,624     32,469     83,651
                                   ------    ------     ------     ------
     Total revenues               319,346   344,414    961,930  1,007,169
                                  -------   -------    -------  ---------

  OPERATING EXPENSES:
  Property operating expenses     146,608   147,165    426,258    430,166
  Property management expenses        510     1,603      2,415      4,192
  Investment management
   expenses                         4,213     7,850     12,719     18,044
  Depreciation and amortization   122,362   107,374    355,680    304,668
  Provision for operating real
   estate impairment losses        21,676         -     24,666          -
  General and administrative
   expenses                        15,676    27,383     53,598     75,754
  Other expenses, net               8,548     1,343     14,567     18,926
                                    -----     -----     ------     ------
     Total operating expenses     319,593   292,718    889,903    851,750
                                  -------   -------    -------    -------

  Operating (loss) income            (247)   51,696     72,027    155,419

  Interest income                   1,962     5,824      7,629     17,131
  Recovery of (provision for)
   losses on notes receivable       1,233      (842)      (452)    (1,107)
  Interest expense                (83,179)  (84,887)  (256,746)  (257,042)
  Equity in losses of
   unconsolidated real estate
   partnerships                    (4,198)   (1,559)    (7,934)    (3,432)
  Impairment losses related to
   unconsolidated real estate
   partnerships                         -    (1,131)         -     (1,131)
  Gain on dispositions of
   unconsolidated real
   estate and other                 3,345    99,954     18,580    100,118
                                    -----    ------     ------    -------

  (Loss) income before income
   taxes and discontinued
   operations                     (81,084)   69,055   (166,896)     9,956

  Income tax benefit                2,410     6,062      7,195     10,862
                                    -----     -----      -----     ------

  (Loss) income from
   continuing operations          (78,674)   75,117   (159,701)    20,818

  Income from discontinued
   operations, net (1)             69,118   162,269    109,945    535,862
                                   ------   -------    -------    -------

  Net (loss) income                (9,556)  237,386    (49,756)   556,680
  Noncontrolling interests (2):
    Net income attributable
     to noncontrolling
     interests in
     consolidated real
     estate partnerships          (19,342)  (46,182)   (24,764)  (108,145)
    Net income attributable
     to preferred
     noncontrolling
     interests in Aimco
     Operating Partnership (3)     (1,743)   (1,962)    (4,558)    (5,669)
    Net loss (income)
     attributable to common
     noncontrolling interests
     in Aimco Operating
     Partnership (3)                3,139   (15,500)     8,597    (37,819)
                                    -----   -------      -----    -------
       Total noncontrolling
        interests                 (17,946)  (63,644)   (20,725)  (151,633)
                                  -------   -------    -------   --------
  Net (loss) income
   attributable to Aimco          (27,502)  173,742    (70,481)   405,047
  Net income attributable to
   Aimco preferred stockholders   (12,988)  (12,224)   (37,631)   (40,102)
  Net income attributable to
   participating securities (4)         -    (1,974)         -     (4,488)
                                      ---    ------        ---     ------
  Net (loss) income attributable
   to Aimco common stockholders  $(40,490) $159,544  $(108,112)  $360,457
                                 ========  ========  =========   ========

  Weighted average common shares
   outstanding - basic (5)        115,563   118,182    115,391    123,209
                                  =======   =======    =======    =======
  Weighted average common shares
   outstanding - diluted (5)      115,563   118,552    115,391    123,209
                                  =======   =======    =======    =======

  Earnings (loss) per common
   share - basic and diluted (5):
    (Loss) income from
     continuing operations
     attributable to Aimco
     common stockholders           $(0.64)    $0.40     $(1.36)    $(0.31)
    Income from discontinued
     operations attributable to
     Aimco common stockholders       0.29      0.95       0.42       3.24
                                     ----      ----       ----       ----
    Net (loss) income
     attributable to Aimco
     common stockholders           $(0.35)    $1.35     $(0.94)     $2.93
                                   ======     =====     ======      =====



  GAAP Income Statements (continued)
  ----------------------------------
  Notes to Consolidated Statements of Income

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

                                    Three Months        Nine Months
                                       Ended               Ended
                                    September 30,       September 30,
                                    --------------      --------------
                                    2009      2008      2009      2008
                                    ----      ----      ----      ----
  Rental and other property
   revenues (6)                   $11,177   $82,477    $68,227   $319,282
  Property operating
   expenses (6)                    (5,825)  (40,100)   (37,597)  (157,847)
  Depreciation and amortization    (2,448)  (20,403)   (18,698)   (78,034)
  Provision for operating real
   estate impairment losses        (5,050)   (3,429)   (18,954)    (9,965)
  Other expenses, net              (1,355)   (4,812)    (5,743)    (8,087)
                                   ------    ------     ------     ------
       Operating (loss) income     (3,501)   13,733    (12,765)    65,349
  Interest income                       3       534         56      1,320
  Interest expense                 (2,348)  (15,739)   (14,194)   (59,531)
                                   ------   -------    -------    -------
       (Loss) income before gain
        on dispositions of real
        estate and income taxes    (5,846)   (1,472)   (26,903)     7,138
  Gain on extinguishment
   of debt                            259         -        259          -
  Gain on dispositions of real
   estate                          70,890   169,160    133,431    549,550
  Income tax benefit (expense)      3,815    (5,419)     3,158    (20,826)
                                    -----    ------      -----    -------
       Income from discontinued
        operations, net           $69,118  $162,269   $109,945   $535,862
                                  =======  ========   ========   ========
  Income from discontinued
   operations attributable to:
       Noncontrolling
        interests in
        consolidated real
        estate partnerships      $(32,498) $(38,125)  $(56,656)  $(95,867)
       Noncontrolling
        interests in Aimco
        Operating Partnership (3)  (2,792)  (10,251)    (3,999)   (36,593)
                                   ------   -------     ------    -------
       Total noncontrolling
        interests                 (35,290)  (48,376)   (60,655)  (132,460)
                                  -------   -------    -------   --------
          Aimco                   $33,828  $113,893    $49,290   $403,402
                                  =======  ========    =======   ========

  (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)  Income attributable to participating securities represents
       dividends declared and any amounts of undistributed earnings
       allocable to participating securities. Participating securities
       consist of unvested restricted stock and shares purchased pursuant
       to officer loans, both of which are entitled to dividends similar
       to common stock.


  (5)  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.

  (6)  Income from discontinued operations for the three months ended
       September 30, 2009, attributable to properties classified as held
       for sale at September 30, 2009, includes $2.1 million of rental and
       other property revenues and $0.9 million of property operating
       expenses  related to one wholly-owned property.



  GAAP Balance Sheets
  -------------------

  Consolidated Balance Sheets
  (in thousands)
  (unaudited)

                                      September 30, 2009  December 31, 2008
                                      ------------------  -----------------
   ASSETS
   Buildings and improvements             $7,999,462         $7,857,758
   Land                                    2,243,403          2,232,541
   Accumulated depreciation               (2,803,036)        (2,506,683)
                                          ----------         ----------
     Total real estate                     7,439,829          7,583,616
   Cash and cash equivalents                 107,034            299,676
   Restricted cash                           246,764            255,836
   Accounts receivable                        61,584             90,318
   Accounts receivable from affiliates        26,769             38,978
   Deferred financing costs                   54,561             54,109
   Notes receivable from unconsolidated
    real estate partnerships                  14,855             22,567
   Notes receivable from non-affiliates      143,102            139,897
   Investment in unconsolidated real
    estate partnerships                      112,610            119,036
   Other assets                              204,405            198,714
   Deferred income tax asset, net             33,267             28,326
   Assets held for sale                       29,758            610,797
                                              ------            -------
     Total assets                         $8,474,538         $9,441,870
                                          ==========         ==========
   LIABILITIES AND EQUITY
   Property tax-exempt bond financing       $605,055           $676,339
   Property loans payable                  5,206,788          5,224,350
   Term loans                                260,000            400,000
   Credit Facility                            15,070                  -
   Other borrowings                           85,683             95,981
                                              ------             ------
     Total indebtedness                    6,172,596          6,396,670
   Accounts payable                           36,317             64,241
   Accrued liabilities and other             295,955            421,043
   Deferred income                           177,754            194,379
   Security deposits                          38,865             40,109
   Liabilities related to assets held
    for sale                                  48,153            441,578
                                              ------            -------
     Total liabilities                     6,769,640          7,558,020
                                           ---------          ---------
   Preferred noncontrolling interests
    in Aimco Operating Partnership            86,625             88,148
   Preferred stock subject to
    repurchase agreement                      30,000                  -
   Equity:
      Perpetual preferred stock              660,500            696,500
      Class A Common Stock                     1,164              1,162
      Additional paid-in capital           3,067,299          3,058,799
      Accumulated other comprehensive
       loss                                   (1,846)            (2,249)
      Notes due on common stock purchases     (1,417)            (3,607)
      Distributions in excess of earnings (2,465,312)        (2,335,628)
                                          ----------         ----------
     Total Aimco equity                    1,260,388          1,414,977
                                           ---------          ---------
   Noncontrolling interests in
    consolidated real estate partnerships    340,581            380,725
   Common noncontrolling interests in
    Aimco Operating Partnership              (12,696)                 -
                                             -------                ---
     Total equity                          1,588,273          1,795,702
                                           ---------          ---------
     Total liabilities and equity         $8,474,538         $9,441,870
                                          ==========         ==========

  Outlook and Forward Looking Statement
  Fourth 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 fourth 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; 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; national and local economic conditions; the terms of governmental regulations that affect Aimco and interpretations of those regulations; the competitive environment in which Aimco operates;  redevelopment risks, including failure of such redevelopments to perform in accordance with projections; the timing of acquisitions and dispositions; insurance risk; natural disasters and severe weather such as hurricanes;  litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; energy costs; 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.

                                     Fourth Quarter      Full Year
                                         2009              2009
                                   ----------------  ------------------
  GAAP earnings per share (1)(3)   -$0.58 to -$0.50  -$1.52  to  -$1.44
  FFO per share (2)(3)              $0.32 to  $0.40   $1.61  to   $1.69
  2009 Same Store operating
   assumptions:
    Weighted average daily
     occupancy                      94.5% to  95.5%   93.5%  to   94.5%
    NOI change - sequential         -2.0% to  -1.0%
    NOI change - 2009 vs. 2008      -8.0% to  -7.0%   -5.0%  to   -4.0%


  (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 and FFO per share amounts are
       calculated based on 115.6 million weighted average common shares
       (diluted) for fourth quarter 2009 and 115.4 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]



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

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