Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Document Information [Line Items] | ||
Entity Registrant Name | APARTMENT INCOME REIT CORP. | |
Entity Central Index Key | 0001820877 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Trading Symbol | AIRC | |
Entity File Number | 1-39686 | |
Entity Tax Identification Number | 84-1299717 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 4582 South Ulster Street | |
Entity Address, Address Line Two | Suite 1700 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 303 | |
Local Phone Number | 757-8101 | |
Entity Common Stock, Shares Outstanding | 149,928,321 | |
Title of 12(b) Security | Class A Common Stock (Apartment Income REIT Corp.) | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
AIMCO Properties, LP [Member] | ||
Document Information [Line Items] | ||
Entity Registrant Name | APARTMENT INCOME REIT, L.P. | |
Entity Central Index Key | 0000926660 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity File Number | 0-24497 | |
Entity Tax Identification Number | 84-1275621 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 4582 South Ulster Street | |
Entity Address, Address Line Two | Suite 1700 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 303 | |
Local Phone Number | 757-8101 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Buildings and improvements | $ 6,742,347 | $ 5,720,267 |
Land | 1,296,223 | 1,164,814 |
Total real estate | 8,038,570 | 6,885,081 |
Accumulated depreciation | (2,370,792) | (2,284,793) |
Net real estate | 5,667,778 | 4,600,288 |
Cash and cash equivalents | 87,732 | 67,320 |
Restricted cash | 26,914 | 25,441 |
Note receivable from Amico | 0 | 534,127 |
Leased real estate assets | 0 | 466,355 |
Goodwill | 32,286 | 32,286 |
Other assets, net | 779,205 | 568,051 |
Assets held for sale | 128,538 | 146,492 |
Total assets | 6,722,453 | 6,440,360 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt, net | 2,019,417 | 2,294,739 |
Term loans | 796,334 | 1,144,547 |
Revolving credit facility borrowings | 479,000 | 304,000 |
Unsecured notes payable, net | 397,417 | 0 |
Total debt, net | 3,692,168 | 3,743,286 |
Accrued liabilities and other | 758,441 | 592,774 |
Liabilities related to assets held for sale | 472 | 85,775 |
Total liabilities | 4,451,081 | 4,421,835 |
Commitments and contingencies (Note 6) | ||
Preferred noncontrolling interests in AIR Operating Partnership | 79,330 | 79,370 |
Equity: | ||
Perpetual preferred stock | 2,000 | 2,129 |
Common Stock | 1,530 | 1,570 |
Additional paid-in capital | 3,583,111 | 3,763,105 |
Accumulated other comprehensive income | 45,948 | 0 |
Distributions in excess of earnings | (1,589,409) | (1,953,779) |
Total AIR equity | 2,043,180 | 1,813,025 |
Noncontrolling interests in consolidated real estate partnerships | (76,200) | (70,883) |
Common noncontrolling interests in AIR Operating Partnership | 225,062 | 197,013 |
Total equity | 2,192,042 | 1,939,155 |
Total liabilities and equity | 6,722,453 | 6,440,360 |
Apartment Income REIT, L.P [Member] | ||
ASSETS | ||
Buildings and improvements | 6,742,347 | 5,720,267 |
Land | 1,296,223 | 1,164,814 |
Total real estate | 8,038,570 | 6,885,081 |
Accumulated depreciation | (2,370,792) | (2,284,793) |
Net real estate | 5,667,778 | 4,600,288 |
Cash and cash equivalents | 87,732 | 67,320 |
Restricted cash | 26,914 | 25,441 |
Note receivable from Amico | 0 | 534,127 |
Leased real estate assets | 0 | 466,355 |
Goodwill | 32,286 | 32,286 |
Other assets, net | 779,205 | 568,051 |
Assets held for sale | 128,538 | 146,492 |
Total assets | 6,722,453 | 6,440,360 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt, net | 2,019,417 | 2,294,739 |
Term loans | 796,334 | 1,144,547 |
Revolving credit facility borrowings | 479,000 | 304,000 |
Unsecured notes payable, net | 397,417 | 0 |
Total debt, net | 3,692,168 | 3,743,286 |
Accrued liabilities and other | 758,441 | 592,774 |
Liabilities related to assets held for sale | 472 | 85,775 |
Total liabilities | 4,451,081 | 4,421,835 |
Commitments and contingencies (Note 6) | ||
Equity: | ||
Redeemable preferred units | 79,330 | 79,370 |
Preferred units | 2,000 | 2,129 |
General Partner and Special Limited Partner | 2,041,180 | 1,810,896 |
Limited Partners | 225,062 | 197,013 |
Partners’ capital attributable to the AIR Operating Partnership | 2,268,242 | 2,010,038 |
Noncontrolling interests in consolidated real estate partnerships | (76,200) | (70,883) |
Total partners’ capital | 2,192,042 | 1,939,155 |
Total liabilities and equity | $ 6,722,453 | $ 6,440,360 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 1,021,175,000 | 1,021,175,000 |
Common Stock, shares issued (in shares) | 152,993,448 | 156,998,367 |
Common Stock, shares outstanding (in shares) | 152,993,448 | 156,998,367 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUES | ||||
Total revenues | $ 200,871 | $ 191,777 | $ 565,849 | $ 546,523 |
EXPENSES | ||||
Property operating expenses | 71,250 | 73,925 | 198,273 | 203,300 |
Depreciation and amortization | 90,445 | 81,121 | 253,650 | 232,192 |
General and administrative expenses | 7,663 | 5,875 | 19,593 | 15,510 |
Other expenses, net | 4,941 | 3,816 | 5,883 | 9,207 |
Total operating expenses | 174,299 | 164,737 | 477,399 | 460,209 |
Interest income | 9,613 | 13,432 | 48,746 | 45,088 |
Interest expense | (32,656) | (30,530) | (80,790) | (100,212) |
Loss on extinguishment of debt | 0 | (6,673) | (23,636) | (44,833) |
Gain on dispositions of real estate and derecognition of leased properties | 0 | 7,127 | 587,609 | 94,512 |
Loss from unconsolidated real estate partnerships | (87) | 0 | (2,974) | 0 |
Income before income tax (expense) benefit | 3,442 | 10,396 | 617,405 | 80,869 |
Income tax (expense) benefit | (966) | (770) | ||
Net income | 3,396 | 10,671 | 616,439 | 80,099 |
Noncontrolling interests: | ||||
Net loss attributable to noncontrolling interests in consolidated real estate partnerships | 102 | 785 | 285 | 3,417 |
Net income attributable to preferred noncontrolling interests in AIR Operating Partnership | (1,602) | (1,603) | (4,807) | (4,810) |
Net income attributable to common noncontrolling interests in AIR Operating Partnership | (137) | (475) | (37,053) | (3,966) |
Net income attributable to noncontrolling interests | (1,637) | (1,293) | (41,575) | (5,359) |
Net income attributable to AIR | 1,759 | 9,378 | 574,864 | 74,740 |
Net income attributable to AIR preferred stockholders | (43) | (43) | (128) | (136) |
Net (income) loss attributable to participating securities | 44 | (46) | (373) | (149) |
Net income attributable to AIR common stockholders | $ 1,760 | $ 9,289 | $ 574,363 | $ 74,455 |
Earnings (loss) per common share - diluted | ||||
Net income attributable to AIR common stockholders per share - basic | $ 0.01 | $ 0.06 | $ 3.69 | $ 0.49 |
Net income attributable to AIR common stockholders per share - diluted | $ 0.01 | $ 0.06 | $ 3.68 | $ 0.48 |
Weighted average common shares/units outstanding - basic | 153,811 | 156,646 | 155,488 | 153,289 |
Weighted average common shares/units outstanding - diluted | 154,057 | 157,042 | 157,440 | 153,650 |
Continuing Operations [Member] | ||||
EXPENSES | ||||
Income tax (expense) benefit | $ (46) | $ 275 | $ (966) | $ (770) |
Rental And Other Property Revenues [Member] | ||||
REVENUES | ||||
Total revenues | 198,413 | 190,082 | 558,686 | 541,533 |
Other Revenues [Member] | ||||
REVENUES | ||||
Total revenues | 2,458 | 1,695 | 7,163 | 4,990 |
Apartment Income REIT, L.P. [Member] | ||||
REVENUES | ||||
Total revenues | 200,871 | 191,777 | 565,849 | 546,523 |
EXPENSES | ||||
Property operating expenses | 71,250 | 73,925 | 198,273 | 203,300 |
Depreciation and amortization | 90,445 | 81,121 | 253,650 | 232,192 |
General and administrative expenses | 7,663 | 5,875 | 19,593 | 15,510 |
Other expenses, net | 4,941 | 3,816 | 5,883 | 9,207 |
Total operating expenses | 174,299 | 164,737 | 477,399 | 460,209 |
Interest income | 9,613 | 13,432 | 48,746 | 45,088 |
Interest expense | (32,656) | (30,530) | (80,790) | (100,212) |
Loss on extinguishment of debt | 0 | (6,673) | (23,636) | (44,833) |
Gain on dispositions of real estate and derecognition of leased properties | 0 | 7,127 | 587,609 | 94,512 |
Loss from unconsolidated real estate partnerships | (87) | 0 | (2,974) | 0 |
Income before income tax (expense) benefit | 3,442 | 10,396 | 617,405 | 80,869 |
Income tax (expense) benefit | (966) | (770) | ||
Net income | 3,396 | 10,671 | 616,439 | 80,099 |
Noncontrolling interests: | ||||
Net loss attributable to noncontrolling interests in consolidated real estate partnerships | 102 | 785 | 285 | 3,417 |
Net income attributable to preferred noncontrolling interests in AIR Operating Partnership | (1,645) | (1,646) | (4,935) | (4,946) |
Net income attributable to AIR | 3,498 | 11,456 | 616,724 | 83,516 |
Net (income) loss attributable to participating securities | 44 | (46) | (373) | (149) |
Net income attributable to AIR common stockholders | $ 1,897 | $ 9,764 | $ 611,416 | $ 78,421 |
Earnings (loss) per common share - diluted | ||||
Net income attributable to AIR common stockholders per share - basic | $ 0.01 | $ 0.06 | $ 3.69 | $ 0.49 |
Net income attributable to AIR common stockholders per share - diluted | $ 0.01 | $ 0.06 | $ 3.68 | $ 0.48 |
Weighted average common shares/units outstanding - basic | 163,866 | 164,603 | 165,578 | 161,336 |
Weighted average common shares/units outstanding - diluted | 164,112 | 164,999 | 167,529 | 161,697 |
Apartment Income REIT, L.P. [Member] | Continuing Operations [Member] | ||||
EXPENSES | ||||
Income tax (expense) benefit | $ (46) | $ 275 | $ (966) | $ (770) |
Apartment Income REIT, L.P. [Member] | Rental And Other Property Revenues [Member] | ||||
REVENUES | ||||
Total revenues | 198,413 | 190,082 | 558,686 | 541,533 |
Apartment Income REIT, L.P. [Member] | Other Revenues [Member] | ||||
REVENUES | ||||
Total revenues | $ 2,458 | $ 1,695 | $ 7,163 | $ 4,990 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net income | $ 3,396 | $ 10,671 | $ 616,439 | $ 80,099 |
Unrealized gains on derivative instruments | 34,209 | 47,141 | ||
Losses on derivative instruments reclassified into interest expense from accumulated other comprehensive income | 731 | 2,720 | ||
Unrealized losses on available for sale debt securities | (3,251) | |||
Other comprehensive income | 38,336 | 10,671 | 666,300 | 76,848 |
Comprehensive income attributable to noncontrolling interests | (4,379) | (1,293) | (45,488) | (5,147) |
Comprehensive income attributable to the AIR Operating Partnership | 33,957 | 9,378 | 620,812 | 71,701 |
Apartment Income REIT, L.P [Member] | ||||
Net income | 3,396 | 10,671 | 616,439 | 80,099 |
Unrealized gains on derivative instruments | 34,209 | 47,141 | ||
Losses on derivative instruments reclassified into interest expense from accumulated other comprehensive income | 731 | 2,720 | ||
Unrealized losses on available for sale debt securities | (3,251) | |||
Other comprehensive income | 38,336 | 10,671 | 666,300 | 76,848 |
Comprehensive income attributable to noncontrolling interests | 102 | 785 | 285 | 3,417 |
Comprehensive income attributable to the AIR Operating Partnership | $ 38,438 | $ 11,456 | $ 666,585 | $ 80,265 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Perpetual Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Earnings | Total AIR Equity | Noncontrolling Interest in Consolidated Real Estate Partnerships | Common Noncontrolling Interests In AIR Operating Partnerships |
Balances at Dec. 31, 2020 | $ 1,308,093 | $ 2,000 | $ 1,489 | $ 3,432,121 | $ 3,039 | $ (2,131,798) | $ 1,306,851 | $ (61,943) | $ 63,185 |
Balances (in shares) at Dec. 31, 2020 | 20 | 148,861,036 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of Common Stock | 342,469 | $ 79 | 342,390 | 342,469 | |||||
Issuance of Common Stock (in shares) | 7,825,000 | ||||||||
Issuance costs | (337) | (337) | (337) | ||||||
Redemption of AIR Operating Partnership units | (3,975) | (3,975) | |||||||
Conversion of AIR Operating Partnership units, Shares | 168,940 | ||||||||
Conversion of AIR Operating Partnership units | (2) | $ 1 | 8,239 | 8,240 | (8,242) | ||||
Amortization of share-based compensation cost | 5,928 | 2,953 | 2,953 | 2,975 | |||||
Amortization of share-based compensation cost (in shares) | 33,000 | ||||||||
Effect of changes in ownership for consolidated entities | (230) | (9,846) | (9,846) | (10,076) | |||||
Contribution from noncontrolling interest in consolidated real estate partnerships | 6,126 | 6,126 | |||||||
Change in accumulated other comprehensive income (loss) | (3,251) | (3,039) | (3,039) | (212) | |||||
Net income (loss) | 75,289 | 74,740 | 74,740 | (3,417) | 3,966 | ||||
Common Stock dividends | (200,327) | (200,327) | (200,327) | ||||||
Preferred Stock dividends | (136) | (136) | (136) | ||||||
Distributions to noncontrolling interests | (19,428) | (8,744) | 10,684 | ||||||
Other, net | (1,744) | $ 1 | (1,584) | (41) | (1,624) | (120) | |||
Other, net (in shares) | 95,566 | ||||||||
Balances at Sep. 30, 2021 | 1,508,935 | $ 2,000 | $ 1,570 | 3,773,936 | (2,257,562) | 1,519,944 | (68,098) | 57,089 | |
Balances (in shares) at Sep. 30, 2021 | 20 | 156,983,542 | |||||||
Balances at Jun. 30, 2021 | 1,571,756 | $ 2,000 | $ 1,569 | 3,773,173 | (2,197,843) | 1,578,899 | (67,531) | 60,388 | |
Balances (in shares) at Jun. 30, 2021 | 20 | 156,856,952 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance costs | (31) | 31 | 31 | ||||||
Redemption of AIR Operating Partnership units | (425) | (425) | |||||||
Conversion of AIR Operating Partnership units, Shares | 125,621 | ||||||||
Conversion of AIR Operating Partnership units | $ 1 | 6,282 | 6,283 | (6,283) | |||||
Amortization of share-based compensation cost | 1,401 | 409 | 409 | 992 | |||||
Effect of changes in ownership for consolidated entities | (230) | (5,423) | (5,423) | (5,653) | |||||
Contribution from noncontrolling interest in consolidated real estate partnerships | 4,128 | 4,128 | |||||||
Net income (loss) | 9,068 | 9,378 | 9,378 | (785) | 475 | ||||
Common Stock dividends | (69,051) | 69,051 | 69,051 | ||||||
Preferred Stock dividends | (43) | 43 | 43 | ||||||
Distributions to noncontrolling interests | (7,391) | 3,910 | 3,481 | ||||||
Other, net | (707) | (474) | (3) | (477) | (230) | ||||
Other, net (in shares) | 969 | ||||||||
Balances at Sep. 30, 2021 | 1,508,935 | $ 2,000 | $ 1,570 | 3,773,936 | (2,257,562) | 1,519,944 | (68,098) | 57,089 | |
Balances (in shares) at Sep. 30, 2021 | 20 | 156,983,542 | |||||||
Balances at Dec. 31, 2021 | 1,939,155 | $ 2,129 | $ 1,570 | 3,763,105 | 0 | (1,953,779) | 1,813,025 | (70,883) | 197,013 |
Balances (in shares) at Dec. 31, 2021 | 145 | 156,998,367 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Repurchases of Common Stock | (171,711) | $ (41) | (171,670) | (171,711) | |||||
Repurchases of Common Stock (in shares) | (4,107,451) | ||||||||
Redemption of AIR Operating Partnership units | (7,423) | (7,423) | |||||||
Amortization of share-based compensation cost | 6,272 | 3,519 | 3,519 | 2,753 | |||||
Effect of changes in ownership for consolidated entities | (5,404) | (5,404) | (5,404) | ||||||
Contribution from noncontrolling interest in consolidated real estate partnerships | 8,337 | 8,337 | |||||||
Change in accumulated other comprehensive income (loss) | 49,861 | 45,948 | 45,948 | 3,913 | |||||
Net income (loss) | 611,632 | 574,864 | 574,864 | (285) | 37,053 | ||||
Purchase of noncontrolling interests in consolidated real estate partnerships | (5,409) | (5,529) | (5,529) | 120 | |||||
Common Stock dividends | (210,361) | (210,361) | (210,361) | ||||||
Distributions to noncontrolling interests | (26,969) | (13,561) | 13,408 | ||||||
Other, net | (1,342) | $ (129) | $ 1 | (910) | (133) | (1,171) | (72) | (243) | |
Other, net (in shares) | (125) | 102,532 | |||||||
Balances at Sep. 30, 2022 | 2,192,042 | $ 2,000 | $ 1,530 | 3,583,111 | 45,948 | (1,589,409) | 2,043,180 | (76,200) | 225,062 |
Balances (in shares) at Sep. 30, 2022 | 20 | 152,993,448 | |||||||
Balances at Jun. 30, 2022 | 2,288,825 | $ 2,000 | $ 1,542 | 3,636,906 | 13,750 | (1,521,749) | 2,132,449 | (70,609) | 226,985 |
Balances (in shares) at Jun. 30, 2022 | 20 | 154,187,241 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Repurchases of Common Stock | (46,711) | $ 12 | 46,699 | 46,711 | |||||
Repurchases of Common Stock (in shares) | 1,195,690 | ||||||||
Redemption of AIR Operating Partnership units | (3,178) | (3,178) | |||||||
Amortization of share-based compensation cost | 1,821 | 878 | 878 | 943 | |||||
Effect of changes in ownership for consolidated entities | (2,140) | (2,140) | (2,140) | ||||||
Contribution from noncontrolling interest in consolidated real estate partnerships | 529 | 529 | |||||||
Change in accumulated other comprehensive income (loss) | 34,940 | 32,198 | 32,198 | 2,742 | |||||
Net income (loss) | 1,794 | 1,759 | 1,759 | (102) | 137 | ||||
Purchase of noncontrolling interests in consolidated real estate partnerships | (5,409) | (5,529) | (5,529) | 120 | |||||
Common Stock dividends | (69,377) | 69,377 | 69,377 | ||||||
Distributions to noncontrolling interests | (10,698) | 6,226 | 4,472 | ||||||
Other, net | (494) | (305) | (42) | (347) | 88 | (235) | |||
Other, net (in shares) | 1,897 | ||||||||
Balances at Sep. 30, 2022 | $ 2,192,042 | $ 2,000 | $ 1,530 | $ 3,583,111 | $ 45,948 | $ (1,589,409) | $ 2,043,180 | $ (76,200) | $ 225,062 |
Balances (in shares) at Sep. 30, 2022 | 20 | 152,993,448 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 616,439 | $ 80,099 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 253,650 | 232,192 |
Loss on extinguishment of debt | 23,636 | 44,833 |
Gain on dispositions of real estate and derecognition of leased properties | (587,609) | (94,512) |
Income tax expense | 966 | 770 |
Other, net | 6,890 | 10,645 |
Net changes in operating assets and operating liabilities | 37,484 | (41,286) |
Net cash provided by operating activities | 351,456 | 232,741 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of real estate and deposits related to purchases of real estate | (858,815) | (225,526) |
Capital expenditures | (151,115) | (130,877) |
Proceeds from dispositions of real asset | 759,227 | 45,752 |
Proceeds from dispositions of unconsolidated real estate partnerships | 7,244 | 0 |
Proceeds from repayment of note receivable | 534,127 | 0 |
Proceeds from investments in debt securities | 0 | 100,852 |
Other investing activities | (37,744) | (40,792) |
Net cash provided by (used in) investing activities | 252,924 | (250,591) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal repayments on non-recourse property debt | (361,056) | (618,111) |
Proceeds from term loans | 0 | 1,150,000 |
Repayment of term loan | (350,000) | (350,000) |
Net borrowings on (repayments of) revolving credit facility | 176,205 | (206,144) |
Payment of debt issuance costs | (4,793) | (11,124) |
Payment of debt extinguishment costs | (22,723) | (42,760) |
Proceeds from the issuance of unsecured notes payable | 400,000 | 0 |
Proceeds from Issuance of Common Stock | 0 | 342,132 |
Repurchases of Common Stock | (171,711) | 0 |
Payment of dividends to holders of Common Stock | (210,377) | (200,624) |
Other financing activities | (38,040) | (21,872) |
Net cash (used in) provided by financing activities | (582,495) | 41,497 |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 21,885 | 23,647 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 92,761 | 73,480 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | 114,646 | 97,127 |
Apartment Income REIT, L.P [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | 616,439 | 80,099 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 253,650 | 232,192 |
Loss on extinguishment of debt | 23,636 | 44,833 |
Gain on dispositions of real estate and derecognition of leased properties | (587,609) | (94,512) |
Income tax expense | 966 | 770 |
Other, net | 6,890 | 10,645 |
Net changes in operating assets and operating liabilities | 37,484 | (41,286) |
Net cash provided by operating activities | 351,456 | 232,741 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of real estate and deposits related to purchases of real estate | (858,815) | (225,526) |
Capital expenditures | (151,115) | (130,877) |
Proceeds from dispositions of real asset | 759,227 | 45,752 |
Proceeds from dispositions of unconsolidated real estate partnerships | 7,244 | 0 |
Proceeds from repayment of note receivable | 534,127 | 0 |
Proceeds from investments in debt securities | 0 | 100,852 |
Other investing activities | (37,744) | (40,792) |
Net cash provided by (used in) investing activities | 252,924 | (250,591) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal repayments on non-recourse property debt | (361,056) | (618,111) |
Proceeds from term loans | 0 | 1,150,000 |
Repayment of term loan | (350,000) | (350,000) |
Net borrowings on (repayments of) revolving credit facility | 176,205 | (206,144) |
Payment of debt issuance costs | (4,793) | (11,124) |
Payment of debt extinguishment costs | (22,723) | (42,760) |
Proceeds from the issuance of unsecured notes payable | 400,000 | 0 |
Proceeds from issuance of common partnership units to AIR, net | 0 | 342,132 |
Repurchases of Common Stock | (171,711) | 0 |
Payment of distributions General Partner and Special Limited Partner | (210,377) | (200,624) |
Other financing activities | (38,040) | (21,872) |
Net cash (used in) provided by financing activities | (582,495) | 41,497 |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 21,885 | 23,647 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 92,761 | 73,480 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ 114,646 | $ 97,127 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Partners' Capital - USD ($) $ in Thousands | Total | Apartment Income REIT, L.P. [Member] | Apartment Income REIT, L.P. [Member] Preferred Units [Member] | Apartment Income REIT, L.P. [Member] General Partner and Special Limited Partner [Member] | Apartment Income REIT, L.P. [Member] Limited Partners [Member] | Apartment Income REIT, L.P. [Member] Partners Capital Attributable To The Partnership [Member] | Apartment Income REIT, L.P. [Member] Noncontrolling Interest in Consolidated Real Estate Partnerships |
Balances at Dec. 31, 2020 | $ 1,308,093 | $ 2,000 | $ 1,304,851 | $ 63,185 | $ 1,370,036 | $ (61,943) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Issuance of common partnership units to AIR, net | 342,469 | 342,469 | 342,469 | ||||
Issuance costs | (337) | (337) | (337) | ||||
Conversion of common partnership units | $ (2) | 8,240 | (8,242) | (2) | |||
Redemption of common partnership units | (3,975) | (3,975) | (3,975) | ||||
Amortization of share-based compensation cost | 5,928 | 2,953 | 2,975 | 5,928 | |||
Effect of changes in ownership of consolidated entities | (9,846) | 10,076 | |||||
Contribution from noncontrolling interest in consolidated real estate partnerships | 6,126 | 6,126 | 6,126 | ||||
Change in accumulated other comprehensive income (loss) | (3,251) | (3,251) | (3,039) | (212) | (3,251) | ||
Net income (loss) | 75,289 | 75,289 | 74,740 | 3,966 | 78,706 | (3,417) | |
Distributions to common unitholders | (211,011) | (200,327) | (10,684) | (211,011) | |||
Distributions to preferred unitholders | (136) | 136 | (136) | ||||
Distributions to noncontrolling interests | (19,428) | (8,744) | (8,744) | ||||
Other, net | (1,744) | (1,624) | (1,624) | (120) | |||
Balances at Sep. 30, 2021 | 1,508,935 | 2,000 | 1,517,944 | 57,089 | 1,577,033 | (68,098) | |
Balances at Jun. 30, 2021 | 1,571,756 | 2,000 | 1,576,899 | 60,388 | 1,639,287 | (67,531) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Issuance costs | (31) | (31) | (31) | ||||
Conversion of common partnership units | 6,283 | (6,283) | |||||
Redemption of common partnership units | (425) | (425) | (425) | ||||
Amortization of share-based compensation cost | 1,401 | 409 | 992 | 1,401 | |||
Effect of changes in ownership of consolidated entities | 230 | (5,423) | 5,653 | 230 | |||
Contribution from noncontrolling interest in consolidated real estate partnerships | 4,128 | 4,128 | 4,128 | ||||
Net income (loss) | 9,068 | 9,068 | 9,378 | 475 | 9,853 | (785) | |
Distributions to common unitholders | (72,532) | (69,051) | (3,481) | (72,532) | |||
Distributions to preferred unitholders | (43) | (43) | (43) | ||||
Distributions to noncontrolling interests | (7,391) | (3,910) | (3,910) | ||||
Other, net | (707) | (477) | (230) | (707) | |||
Balances at Sep. 30, 2021 | 1,508,935 | 2,000 | 1,517,944 | 57,089 | 1,577,033 | (68,098) | |
Balances at Dec. 31, 2021 | 1,939,155 | 2,129 | 1,810,896 | 197,013 | 2,010,038 | (70,883) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Repurchases of common partnership units | (171,711) | (171,711) | (171,711) | ||||
Redemption of common partnership units | 7,423 | 7,423 | 7,423 | ||||
Amortization of share-based compensation cost | 6,272 | 3,519 | 2,753 | 6,272 | |||
Purchase of noncontrolling interests in consolidated real estate partnerships | (5,409) | (5,409) | (5,529) | (5,529) | 120 | ||
Effect of changes in ownership of consolidated entities | (5,404) | 5,404 | |||||
Contribution from noncontrolling interest in consolidated real estate partnerships | 8,337 | 8,337 | 8,337 | ||||
Change in accumulated other comprehensive income (loss) | 49,861 | 49,861 | 45,948 | 3,913 | 49,861 | ||
Net income (loss) | 611,632 | 611,632 | 574,864 | 37,053 | 611,917 | (285) | |
Distributions to common unitholders | (223,769) | (210,361) | 13,408 | (223,769) | |||
Distributions to noncontrolling interests | (26,969) | (13,561) | (13,561) | ||||
Other, net | (1,342) | (129) | (1,042) | (243) | (1,414) | 72 | |
Balances at Sep. 30, 2022 | 2,192,042 | 2,000 | 2,041,180 | 225,062 | 2,268,242 | (76,200) | |
Balances at Jun. 30, 2022 | 2,288,825 | 2,000 | 2,130,449 | 226,985 | 2,359,434 | (70,609) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Repurchases of common partnership units | (46,711) | (46,711) | (46,711) | ||||
Redemption of common partnership units | (3,178) | (3,178) | (3,178) | ||||
Amortization of share-based compensation cost | 1,821 | 878 | 943 | 1,821 | |||
Purchase of noncontrolling interests in consolidated real estate partnerships | (5,409) | (5,409) | (5,529) | (5,529) | 120 | ||
Effect of changes in ownership of consolidated entities | (2,140) | 2,140 | |||||
Contribution from noncontrolling interest in consolidated real estate partnerships | 529 | 529 | 529 | ||||
Change in accumulated other comprehensive income (loss) | 34,940 | 34,940 | 32,198 | 2,742 | 34,940 | ||
Net income (loss) | 1,794 | 1,794 | 1,759 | 137 | 1,896 | (102) | |
Distributions to common unitholders | (73,849) | (69,377) | 4,472 | (73,849) | |||
Distributions to noncontrolling interests | $ (10,698) | (6,226) | (6,226) | ||||
Other, net | (494) | (347) | (235) | (582) | 88 | ||
Balances at Sep. 30, 2022 | $ 2,192,042 | $ 2,000 | $ 2,041,180 | $ 225,062 | $ 2,268,242 | $ (76,200) |
Basis of Presentation and Organ
Basis of Presentation and Organization | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | Note 1 — Basis of Presentation and Organization Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Apartment Income REIT Corp. (“AIR”), Apartment Income REIT, L.P. (“AIR Operating Partnership”), and their consolidated subsidiaries. The AIR Operating Partnership’s condensed consolidated financial statements include the accounts of the AIR Operating Partnership and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As used herein, and except where the context otherwise requires, “partnership” refers to a limited partnership or a limited liability company and “partner” refers to a partner in a limited partnership or a member of a limited liability company. Interests in the AIR Operating Partnership that are held by limited partners other than AIR are reflected in AIR’s accompanying condensed consolidated balance sheets as noncontrolling interests in the AIR Operating Partnership. Interests in partnerships consolidated by the AIR Operating Partnership that are held by third parties are reflected in AIR’s and AIR Operating Partnership’s accompanying condensed consolidated balance sheets as noncontrolling interests in consolidated real estate partnerships. Except as the context otherwise requires, “we,” “our,” and “us” refer to AIR, the AIR Operating Partnership, and their consolidated subsidiaries, collectively. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The condensed consolidated balance sheets of AIR, the AIR Operating Partnership, and their consolidated subsidiaries as of December 31, 2021, have been derived from their respective audited financial statements at that date, but do not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the financial statements and notes thereto included in AIR’s and the AIR Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2021. Except where indicated, the footnotes refer to AIR, the AIR Operating Partnership and their consolidated subsidiaries, collectively. Reclassifications Certain prior period balances in the condensed consolidated statements of cash flows have been combined to conform to current period presentation pursuant to Rule 10-01(a)(2) of Regulation S-X of the SEC. These changes had no impact on net income, cash flows, shareholders’ equity or partners' capital previously reported. Organization and Business AIR is a self-administered and self-managed real estate investment trust (“REIT”). AIR owns, through its wholly-owned subsidiaries, all of the common equity, the general partner interest, and special limited partner interest in AIR Operating Partnership, a Delaware limited partnership originally formed on May 16, 1994. AIR Operating Partnership conducts all of the business of AIR, which is focused on the ownership of stabilized multi-family properties located in top markets including eight important geographic concentrations: Boston; Philadelphia; Washington, D.C.; Miami; Denver; the San Francisco Bay Area; Los Angeles; and San Diego. We own and operate a portfolio of apartment communities, diversified by both geography and price point, in 11 states and the District of Columbia. As of September 30, 2022, our portfolio included 80 apartment communities with 26,600 apartment homes, in which we held an average ownership of approximately 88 % . We also have one land parcel and one indirect land interest that we lease to third parties. Interests in the AIR Operating Partnership that are held by limited partners other than AIR are referred to as OP Units. OP Units include common partnership units, which we refer to as common OP Units, as well as preferred partnership units, which we refer to as preferred OP Units. As of September 30, 2022, after elimination of units held by consolidated subsidiaries, the AIR Operating Partnership had 166,045,781 common OP Units outstanding. As of September 30, 2022, AIR owned 152,993,448 of the common OP Units of the AIR Operating Partnership and AIR had an equal number of shares of its Class A Common Stock outstanding, which we refer to as Common Stock. AIR’s ownership of the total common OP Units outstanding represents a 92.1 % legal interest in the AIR Operating Partnership and a 93.8 % e conomic interest. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Principles of Consolidation We consolidate a variable interest entity (“VIE”), in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. Redeemable Preferred OP Units The AIR Operating Partnership has various classes of preferred OP Units, which may be redeemed at the holders’ option for cash, or at its option, shares of Common Stock. The preferred OP Units are therefore presented within temporary equity in AIR’s condensed consolidated balance sheets and within temporary partners’ capital in the AIR Operating Partnership’s condensed consolidated balance sheets. The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units (in thousands): Balance at January 1, 2022 $ 79,370 Preferred distributions ( 4,823 ) Redemption of preferred units and other ( 24 ) Net income allocated to preferred units 4,807 Balance at September 30, 2022 $ 79,330 The AIR Operating Partnership has outstanding various classes of redeemable preferred OP Units. As of September 30, 2022 and December 31, 2021, the AIR Operating Partnership had 2,934,063 and 2,935,662 redeemable preferred OP Units, respectively, issued and outstanding. Distributions per annum range from 1.92 % to 8.75 % per class and $ 0.48 to $ 8.00 per unit. Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates. |
Significant Transactions
Significant Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Significant Transactions [Abstract] | |
Significant Transactions | Note 3 — Significant Transactions Apartment Community Acquisitions During the nine months ended September 30, 2022, we acquired three apartment communities in South Florida and one in the Washington, D.C. area. Summarized information regarding these acquisitions is set forth in the table below (dollars in thousands): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Number of apartment communities 1 4 Number of apartment homes 350 1,351 Purchase price $ 173,000 $ 640,067 Capitalized transaction costs 1,551 7,325 Total consideration $ 174,551 $ 647,392 Land $ 14,480 $ 54,918 Building and improvements 156,980 577,712 Right-of-use lease asset — 80,651 Intangible assets (1) 3,465 17,203 Lease liability — ( 80,651 ) Below-market lease liabilities (1) ( 103 ) ( 613 ) Real estate tax liability assumed ( 271 ) ( 1,828 ) Total consideration $ 174,551 $ 647,392 (1) Intangible assets and below-market lease liabilities have a weighted-average term of 2.2 years and 1.4 years, respectively. Apartment Community Dispositions During the three months ended September 30, 2022 , we did no t sell any apartment communities. During the nine months ended September 30, 2022 , we sold 12 apartment communities with 2,050 homes for gross proceeds of $ 781.1 million. From time to time we may be marketing for sale certain communities that are inconsistent with our long-term investment strategy. At the end of each reporting period we evaluate whether such communities meet the criteria to be classified as held for sale. As of September 30, 2022 , we had six apartment communities with 1,314 apartment homes that were classified as held for sale. Lease Cancellation On September 1, 2022, we canceled existing master leases at four properties owned by AIR and previously leased to Apartment Investment and Management Company (“Aimco”) for the purpose of their development. As part of the cancellation, AIR paid $ 200 million to Aimco for the improvements added during the development period in accordance with the lease agreement. As AIR accounted for these leases as sales-type leases, we held a $ 466 million leased real estate asset on the consolidated balance sheet as of August 31, 2022. T he total consideration of the added improvement value payment, leased real estate asset, and related costs were allocated to the underlying assets returned to AIR based on the following allocation (dollars in thousands): Number of apartment communities 4 Number of apartment homes 865 Land $ 133,471 Building and improvements 520,448 Intangible assets (1) 13,470 Below-market lease liabilities (1) ( 866 ) Total consideration (2) $ 666,523 (1) Intangible assets and below-market lease liabilities have a weighted-average term of less than a year. (2) Includes the leased real estate asset as of the cancellation date and the added improvement value payment. Capital Allocation – Share Repurchases During the three months ended September 30, 2022, AIR repurchased 1.2 million shares for $ 47 million, at an average price of $ 39.07 per share. Subsequent to quarter end and through November 2, 2022 we have purchased an additional 3.1 million shares for $ 115 million. In aggregate, we have repurchased 7.2 million shares during 2022 at an average price of $ 39.96 . We are authorized by the AIR Board of Directors to repurchase an additional $ 213 million of shares. We consider share buybacks as part of a balanced investment program. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 4 — Leases Tenant Lessor Arrangements The majority of lease pa yments we receive from our residents and tenants are fixed. We receive variable payments from our residents primarily for utility reimbursements. Our total lease income was comprised of the following amounts for all operating leases (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Fixed lease income $ 184,509 $ 176,388 $ 522,074 $ 505,400 Variable lease income 13,141 12,953 35,165 34,589 Total lease income $ 197,650 $ 189,341 $ 557,239 $ 539,989 Generally, our residential leases do not provide extension options and, as of September 30, 2022, have an average remaining term of 10.5 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. Future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows as of September 30, 2022 (in thousands): 2022 (remaining) $ 184,873 2023 440,389 2024 85,643 2025 11,264 2026 9,572 Thereafter 42,923 Total $ 774,664 Lessor Arrangements During the three and nine months ended September 30, 2022, we recognized income of $ 4.4 million and $ 17.3 million, respectively, related to sales-type leases, compared t o $ 6.5 million and $ 19.4 million, respectively, during the same periods in 2021 , which is reflected in interest income in our condensed consolidated statements of operations. During the three months ended September 30, 2022, we canceled the existing sales-type leases, as described in Note 3. Accordingly, we will not receive any lease payments associated with these sales-type leases going forward. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 — Debt The following table summarizes debt as of September 30, 2022 and December 31, 2021 (in thousands): Outstanding Balance September 30, 2022 December 31, 2021 Secured debt: Fixed-rate property debt due December 2022 to June 2032 (1) $ 1,940,158 $ 2,217,256 Variable-rate property debt due October 2024 (2) 88,500 88,500 Total non-recourse property debt 2,028,658 2,305,756 Debt issuance costs, net of accumulated amortization ( 9,241 ) ( 11,017 ) Total non-recourse property debt, net $ 2,019,417 $ 2,294,739 Unsecured debt: Term loans due December 2023 to April 2026 (2) (3) 800,000 1,150,000 Revolving credit facility borrowings due April 2025 (4) 479,000 304,000 4.58 % Notes payable due June 2027 (5) 100,000 — 4.77 % Notes payable due June 2029 (5) 100,000 — 4.84 % Notes payable due June 2032 (5) 200,000 — Total unsecured debt 1,679,000 1,454,000 Debt issuance costs, net of accumulated amortization ( 6,249 ) ( 5,453 ) Total unsecured debt, net $ 1,672,751 $ 1,448,547 Total indebtedness $ 3,692,168 $ 3,743,286 (1) The stated rates on our fixed-rate property debt are 2.4 % to 4.2 % . (2) During the second quarter of 2022, we hedged $ 830 million of our floating rate debt through placement of floating to fixed rate swaps, which have been designated as cash flow hedges. These hedges lock $830 million of floating rate debt at an all in cost of 4.2 %. (3) The term loans bear interest at a 1-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.00 % and a SOFR adjustment of 10 basis points, based on our current credit rating. As of September 30, 2022, the weighted-average interest rate for our term loans, which is fixed via interest rate swaps beginning with the second quarter of 2022, was 4.1 % . (4) On May 2, 2022, we exercised the accordion feature on our revolving credit facility, increasing the revolving credit facility by $ 400 million to $ 1.0 billion. As of September 30, 2022, we had capacity to borrow up to $ 509.9 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a 1-month Term SOFR plus 0.89 %, based on our current credit rating, and a SOFR adjustment of 10 basis points. As of September 30, 2022, the weighted-average interest rate for our revolving credit facility was 4.1 % . (5) During the second quarter of 2022, we issued three tranches of guaranteed, senior unsecured notes, totaling $ 400 million. As of September 30, 2022, the weighted-average interest rate for senior unsecured notes was 4.3 % Under our unsecured notes payable and revolving credit facility, we have agreed to maintain certain financial covenants, as well as other covenants customary for similar credit arrangements. The financial covenants we are required to maintain include a Maximum Leverage ratio of no greater than 0.60 to 1.00 ; a Fixed Charge Coverage Ratio of greater than 1.5 x, a Maximum Secured Indebtedness to Total Assets ratio of no greater than 0.45 to 1.00 through March 31, 2023, and 0.40 to 1.00 thereafter, a Maximum Unsecured Leverage ratio no greater than 0.60 to 1.00 , and a Minimum Unsecured Interest Coverage Ratio no less than 1.50 to 1.00 . We were in compliance with these covenants as of September 30, 2022 and expect to remain in compliance during the next 12 months. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 — Commitments and Contingencies Legal Matters In addition to the matters described below, we are a party to various legal actions and administrative proceedings arising in the ordinary course of business, some of which are covered by our general liability insurance program, and none of which we expect to have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. Environmental Various federal, state, and local laws subject apartment community owners or operators to liability for management and the costs of removal or remediation of certain potentially hazardous materials that may be present in the land or buildings of an apartment community. Such laws often impose liability without regard to fault or whether the owner or operator knew of, or was responsible for, the presence of such materials. The presence of, or the failure to manage or remediate properly, these materials may adversely affect occupancy at such apartment communities as well as the ability to sell or finance such apartment communities. In addition, governmental agencies may bring claims for costs associated with investigation and remediation actions. Moreover, private plaintiffs may potentially make claims for investigation and remediation costs they incur or for personal injury, disease, disability, or other infirmities related to the alleged presence of hazardous materials. In addition to potential environmental liabilities or costs associated with our current apartment communities, we may also be responsible for such liabilities or costs associated with communities we acquire or manage in the future or apartment communities we no longer own or operate. We have determined that our legal obligations to remove or remediate certain potentially hazardous materials may be conditional asset retirement obligations (“AROs”), as defined by GAAP. Except in limited circumstances where the asset retirement activities are expected to be performed in connection with a planned construction project or apartment community casualty, we believe that the fair value of our AROs cannot be reasonably estimated due to significant uncertainties in the timing and manner of settlement of those obligations. AROs that are reasonably estimable as of September 30, 2022, are immaterial to ou r condensed consolidated financial statements. |
Earnings and Dividends per Shar
Earnings and Dividends per Share and per Unit | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings and Dividends per Share and per Unit | Note 7 — Earnings and Dividends per Share and per Unit Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit are as follows (in thousands, except per share and per unit data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Earnings per share Numerator: Basic net income attributable to AIR common stockholders $ 1,760 $ 9,289 $ 574,363 $ 74,455 Effect of dilutive instruments — — 4,807 — Dilutive net income attributable to AIR common stockholders $ 1,760 $ 9,289 $ 579,170 $ 74,455 Denominator – shares: Basic weighted-average common shares outstanding 153,811 156,646 155,488 153,289 Dilutive common share equivalents outstanding 246 396 1,952 361 Dilutive weighted-average common shares outstanding 154,057 157,042 157,440 153,650 Earnings per share – basic $ 0.01 $ 0.06 $ 3.69 $ 0.49 Earnings per share – diluted $ 0.01 $ 0.06 $ 3.68 $ 0.48 Earnings per unit Numerator: Basic net income attributable to the AIR Operating Partnership's common unitholders $ 1,897 $ 9,764 $ 611,416 $ 78,421 Effect of dilutive instruments — — 4,935 — Basic and dilutive net income attributable to the AIR Operating Partnership's common unitholders $ 1,897 $ 9,764 $ 616,351 $ 78,421 Denominator – units: Basic weighted-average common units outstanding 163,866 164,603 165,578 161,336 Dilutive common unit equivalents outstanding 246 396 1,951 361 Dilutive weighted-average common units outstanding 164,112 164,999 167,529 161,697 Earnings per unit – basic $ 0.01 $ 0.06 $ 3.69 $ 0.49 Earnings per unit – diluted $ 0.01 $ 0.06 $ 3.68 $ 0.48 For the three and nine months ended September 30, 2022 and 2021, dividends and distributions paid per share of Common Stock and per commo n unit were $ 0.45 and $ 1.35 , respectively, and $ 0.44 and $ 1.30 , respectively. The number of common share equivalent securities excluded from the diluted earnings per share calculation were approximately 1.9 million, 1.6 million, and 1.7 million for the three months ended September 30, 2022 and 2021, and the nine months ended September 30, 2021, respectively. These securities, which include preferred OP Units redeemable for Common Stock, were excluded from the diluted earnings per share calculations as they are anti-dilutive. These securities were dilutive for the nine months ended September 30, 2022 and were included in the calculation of diluted earnings per share. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 — Fair Value Measurements Recurring Fair Value Measurements During 2022, we entered into floating to fixed interest rate swaps for $ 830 million notional principal value of debt. These swaps have been designated as cash flow hedges of expected future variable interest payments. Changes in the fair value are recognized as unrealized gains (losses) on derivative instruments in other comprehensive income. Amounts reported in accumulated other comprehensive income will be reclassified into interest expense as interest payments are made on our variable-rate debt. We estimate that during the next twelve months, we will reclassify into earnings approximately $ 13.3 million of the unrealized gains in accumulated other comprehensive income. Additionally, in connection with our issuance of senior unsecured notes, we entered into a $ 400 million treasury hedge, locking the interest rate of the ten-year treasury at 2.43 % . During the second quarter of 2022, we received $ 15.9 million for the settlement of this hedge, which was designated as a cash flow hedge. The settlement value of the treasury hedge is included in unrealized gains (losses) on derivative instruments in other comprehensive income (loss) and will be reclassified into earnings as a decrease to interest expense over the term of the senior unsecured notes issued. Prior to the December 15, 2020, separation (the “Separation”), Aimco paid an upfront premium of $ 12.1 million for the option to enter into an interest rate swap at a future date. In connection with the Separation, all of the risks and rewards of ownership related to this swap were assigned to post-Separation Aimco, with an offsetting and equal asset and liability recognized for the amount of gain or loss. We estimate the fair value using pricing models that rely on observable market information, including contractual terms, market prices, and interest rate yield curves. These investments are measured at fair value on a recurring basis and presented in other assets, net, and accrued liabilities and other in our condensed consolidated balance sheets. The following table summarizes fair value for our interest rate option and swaps (in thousands): As of September 30, 2022 As of December 31, 2021 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Interest rate option $ 53,989 $ — $ 53,989 $ — $ 21,699 $ — $ 21,699 $ — Interest rate swap asset $ 34,543 $ — $ 34,543 $ — $ — $ — $ — $ — Financial Assets and Liabilities Not Measured at Fair Value We believe that the carrying value of the consolidated amounts of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximated their estimated fair value as of September 30, 2022 and December 31, 2021, due to their relatively short-term nature and high probability of realization. The carrying value of our unsecured notes payable, revolving credit facility and term loans, which we classify as Level 2 in the GAAP fair value hierarchy, approximated their estimated fair value as of September 30, 2022 and December 31, 2021. We classify the fair value of our non-recourse property debt within Level 2 of the GAAP fair value hierarchy. The following table summarizes carrying value and fair value of our non-recourse property debt, excluding debt issuance costs (in thousands): As of September 30, 2022 As of December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Non-recourse property debt $ 2,028,658 $ 1,785,851 $ 2,305,756 $ 2,367,713 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Note 9 — Variable Interest Entities Consolidated Entities AIR consolidates the AIR Operating Partnership, a VIE of which AIR is the primary beneficiary. AIR, through the AIR Operating Partnership, consolidates all VIEs for which it is the primary beneficiary. Substantially all of the assets and liabilities of AIR are that of the AIR Operating Partnership. The AIR Operating Partnership consolidates (i) five VIEs that own interests in one or more apartment communities and are typically structured to generate a return for their partners through the operation and ultimate sale of the communities and (ii) one VIE related to a lessor entity that owns an interest in a property leased to a third party. The AIR Operating Partnership is the primary beneficiary in the limited partnerships in which it is the sole decision maker and has a substantial economic interest. The table below summarizes apartment community information regarding VIEs consolidated by the AIR Operating Partnership: September 30, 2022 December 31, 2021 VIEs with interests in apartment communities 5 5 Apartment communities owned by VIEs 16 16 Apartment homes in communities owned by VIEs 5,369 5,369 Assets of the AIR Operating Partnership’s consolidated VIEs must first be used to settle the liabilities of such consolidated VIEs. These consolidated VIEs’ creditors do not have recourse to the general credit of the AIR Operating Partnership. Assets and liabilities of VIEs, excluding those of the AIR Operating Partnership, are summarized in the table below (in thousands): September 30, 2022 December 31, 2021 ASSETS: Net real estate $ 1,075,327 $ 1,096,039 Cash and cash equivalents 51,199 29,863 Restricted cash 2,329 2,380 Other assets, net 21,873 21,745 LIABILITIES: Non-recourse property debt $ 1,215,933 $ 1,227,345 Accrued liabilities and other 40,814 34,659 Unconsolidated Entities During 2021, we formed a joint venture with an affiliate of Blackstone by selling an 80 % interest in three multi-family properties with 1,748 units located in Virginia. Our 20 % interest in the venture meets the definition of a VIE, however, we are not the primary beneficiary and do not consolidate these communities. As of September 30, 2022 and December 31, 2021, the carrying value of the investment of $ 21.3 million and $ 26.0 million, respectively, is included in other assets, net, in our condensed consolidated balance sheets. AIR’s exposure to the obligations of the VIE is limited to the carrying value of the limited partnership interests and 20 % of Blackstone's guarantor liabilities, which wer e $ 79.0 million as of September 30, 2022. We have an interest in a partnership that owns Parkmerced Apartments, which meets the definition of a VIE. However, we are not the primary beneficiary and do not consolidate this partnership. As of September 30, 2022, and December 31, 2021, the investment balance of $ 362.8 million and $ 337.8 mi llion, respectively, is included in other assets, net, in our condensed consolidated balance sheets. Subsequent to the Separation, all risks and rewards of ownership are Aimco’s, however, as legal transfer has not occurred, there is an equal and offsetting liability included in accrued liabilities and other in our condensed consolidated balance sheets. Accordingly, there is no net effect on AIR’s stockholders’ equity or the AIR Operating Partnership's partners' capital. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Note 10 — Business Segments We have two segments: Same Store and Other Real Estate. Our Same Store segment includes communities that are owned and managed by AIR and had reached a stabilized level of operations. Our Other Real Estate segment includes five properties acquired in 2021, four properties acquired in 2022, four properties previously leased to Aimco, and three communities we expect to sell or lease to a third party, but do not yet meet the criteria to be classified as held for sale Our chief operating decision maker (“CODM”) uses proportionate property net operating income (“NOI”) to assess the operating performance of our communities. Proportionate property NOI reflects our share of rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, net of utility reimbursements. In our condensed consolidated statements of operations, utility reimbursements are included in rental and other property revenues in accordance with GAAP. As of September 30, 2022, our Same Store segment included 58 apartment communities with 20,730 apartment homes and our Other Real Estate segment included 16 apartment communities with 4,556 apartment homes. As of September 30, 2022, we had six apartment communities with 1,314 homes that were classified as held for sale. The following tables present the total revenues, property operating expenses, proportionate property net operating income (loss), and income (loss) before income tax (expense) benefit of our segments on a proportionate basis. To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of September 30, 2022 (in thousands): Same Other Proportionate Corporate and Consolidated Three months ended September 30, 2022: Total revenues $ 139,107 $ 30,258 $ 20,725 $ 10,781 $ 200,871 Property operating expenses 35,632 10,606 10,562 14,450 71,250 Other operating expenses not allocated to segments (3) — — — 103,049 103,049 Total operating expenses 35,632 10,606 10,562 117,499 174,299 Proportionate property net operating income (loss) 103,475 19,652 10,163 ( 106,718 ) 26,572 Other items included in income before income tax expense (4) — — — ( 23,130 ) ( 23,130 ) Income (loss) before income tax expense $ 103,475 $ 19,652 $ 10,163 $ ( 129,848 ) $ 3,442 Same Other Proportionate Corporate and Consolidated Nine months ended September 30, 2022: Total revenues $ 402,756 $ 62,371 $ 60,153 $ 40,569 $ 565,849 Property operating expenses 105,570 23,486 30,064 39,153 198,273 Other operating expenses not allocated to segments (3) — — — 279,126 279,126 Total operating expenses 105,570 23,486 30,064 318,279 477,399 Proportionate property net operating income (loss) 297,186 38,885 30,089 ( 277,710 ) 88,450 Other items included in income before income tax — — — 528,955 528,955 Income before income tax expense $ 297,186 $ 38,885 $ 30,089 $ 251,245 $ 617,405 Same Other Proportionate Corporate and Consolidated Three months ended September 30, 2021: Total revenues $ 134,102 $ 5,558 $ 20,608 $ 31,509 $ 191,777 Property operating expenses 36,883 2,963 10,604 23,475 73,925 Other operating expenses not allocated to segments (3) — — — 90,812 90,812 Total operating expenses 36,883 2,963 10,604 114,287 164,737 Proportionate property net operating income (loss) 97,219 2,595 10,004 ( 82,778 ) 27,040 Other items included in income (loss) before income tax benefit (4) — — — ( 16,644 ) ( 16,644 ) Income (loss) before income tax benefit $ 97,219 $ 2,595 $ 10,004 $ ( 99,422 ) $ 10,396 Same Other Proportionate Corporate and Consolidated Nine months ended September 30, 2021: Total revenues $ 386,998 $ 8,562 $ 58,904 $ 92,059 $ 546,523 Property operating expenses 109,299 5,351 30,091 58,559 203,300 Other operating expenses not allocated to segments (3) — — — 256,909 256,909 Total operating expenses 109,299 5,351 30,091 315,468 460,209 Proportionate property net operating income (loss) 277,699 3,211 28,813 ( 223,409 ) 86,314 Other items included in income (loss) before income tax expense (4) — — — ( 5,445 ) ( 5,445 ) Income (loss) before income tax expense $ 277,699 $ 3,211 $ 28,813 $ ( 228,854 ) $ 80,869 (1) Represents adjustments for third-party share of unconsolidated apartment communities and the noncontrolling interests in consolidated real estate partnerships’ share of the results of communities in our segments, which are included in the related consolidated amounts but excluded from proportionate property NOI for our segment evaluation. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our condensed consolidated statements of operations prepared in accordance with GAAP. Effective in 2022, corporate and amounts not allocated to segments includes the depreciation of capitalized costs of non-real estate assets. (2) Includes the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any. Also includes property management revenues, which are not part of our segment performance measure and property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure. (3) Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include provision for real estate impairment loss and write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4) Includes gain on dispositions of real estate and derecognition of leased properties, interest income, interest expense, loss from unconsolidated real estate partnerships, and loss on extinguishment of debt. The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands): September 30, 2022 December 31, 2021 Same Store $ 3,861,337 $ 3,824,277 Other Real Estate 2,077,214 787,534 Corporate and other assets (1) 783,902 1,828,549 Total consolidated assets $ 6,722,453 $ 6,440,360 (1) Includes the assets not allocated to our segments including: (i) corporate assets; (ii) the mezzanine loan investment where the rights and obligations of ownership have been assigned to Aimco; and (iii) sold properties, or properties classified as held for sale as of September 30, 2022. Corporate and other assets as of December 31, 2021, also includes the note receivable from Aimco, which was repaid in 2022, and the lease receivable related to properties leased to Aimco, which was canceled during the third quarter of 2022 . For the nine months ended September 30, 2022 and 2021, capital additions related to our segments were as follows (in thousands): 2022 2021 Same Store $ 114,679 $ 97,294 Other Real Estate 30,459 13,588 Total capital additions $ 145,138 $ 110,882 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation We consolidate a variable interest entity (“VIE”), in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. |
Noncontrolling Interests in the Aimco Operating Partnership | Redeemable Preferred OP Units The AIR Operating Partnership has various classes of preferred OP Units, which may be redeemed at the holders’ option for cash, or at its option, shares of Common Stock. The preferred OP Units are therefore presented within temporary equity in AIR’s condensed consolidated balance sheets and within temporary partners’ capital in the AIR Operating Partnership’s condensed consolidated balance sheets. The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units (in thousands): Balance at January 1, 2022 $ 79,370 Preferred distributions ( 4,823 ) Redemption of preferred units and other ( 24 ) Net income allocated to preferred units 4,807 Balance at September 30, 2022 $ 79,330 The AIR Operating Partnership has outstanding various classes of redeemable preferred OP Units. As of September 30, 2022 and December 31, 2021, the AIR Operating Partnership had 2,934,063 and 2,935,662 redeemable preferred OP Units, respectively, issued and outstanding. Distributions per annum range from 1.92 % to 8.75 % per class and $ 0.48 to $ 8.00 per unit. |
Use of Estimates | Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of Preferred OP Units | The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units (in thousands): Balance at January 1, 2022 $ 79,370 Preferred distributions ( 4,823 ) Redemption of preferred units and other ( 24 ) Net income allocated to preferred units 4,807 Balance at September 30, 2022 $ 79,330 |
Significant Transactions (Table
Significant Transactions (Tables) - Apartment Community [Member] | 9 Months Ended |
Sep. 30, 2022 | |
Business Acquisition [Line Items] | |
Summary of Lease cancellation of cost | he total consideration of the added improvement value payment, leased real estate asset, and related costs were allocated to the underlying assets returned to AIR based on the following allocation (dollars in thousands): Number of apartment communities 4 Number of apartment homes 865 Land $ 133,471 Building and improvements 520,448 Intangible assets (1) 13,470 Below-market lease liabilities (1) ( 866 ) Total consideration (2) $ 666,523 (1) Intangible assets and below-market lease liabilities have a weighted-average term of less than a year. (2) Includes the leased real estate asset as of the cancellation date and the added improvement value payment. Capital Allocation – Share Repurchases During the three months ended September 30, 2022, AIR repurchased 1.2 million shares for $ 47 million, at an average price of $ 39.07 per share. Subsequent to quarter end and through November 2, 2022 we have purchased an additional 3.1 million shares for $ 115 million. In aggregate, we have repurchased 7.2 million shares during 2022 at an average price of $ 39.96 . We are authorized by the AIR Board of Directors to repurchase an additional $ 213 million of shares. We consider share buybacks as part of a balanced investment program. |
Pembroke Pines, Florida [Member] | |
Business Acquisition [Line Items] | |
Schedule of Acquisition | the nine months ended September 30, 2022, we acquired three apartment communities in South Florida and one in the Washington, D.C. area. Summarized information regarding these acquisitions is set forth in the table below (dollars in thousands): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Number of apartment communities 1 4 Number of apartment homes 350 1,351 Purchase price $ 173,000 $ 640,067 Capitalized transaction costs 1,551 7,325 Total consideration $ 174,551 $ 647,392 Land $ 14,480 $ 54,918 Building and improvements 156,980 577,712 Right-of-use lease asset — 80,651 Intangible assets (1) 3,465 17,203 Lease liability — ( 80,651 ) Below-market lease liabilities (1) ( 103 ) ( 613 ) Real estate tax liability assumed ( 271 ) ( 1,828 ) Total consideration $ 174,551 $ 647,392 (1) Intangible assets and below-market lease liabilities have a weighted-average term of 2.2 years and 1.4 years, respectively. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease Income for Operating Leases | Our total lease income was comprised of the following amounts for all operating leases (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Fixed lease income $ 184,509 $ 176,388 $ 522,074 $ 505,400 Variable lease income 13,141 12,953 35,165 34,589 Total lease income $ 197,650 $ 189,341 $ 557,239 $ 539,989 |
Future Minimum Annual Rental Payments Receivable Under Residential and Commercial Leases | Future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows as of September 30, 2022 (in thousands): 2022 (remaining) $ 184,873 2023 440,389 2024 85,643 2025 11,264 2026 9,572 Thereafter 42,923 Total $ 774,664 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Table Text Block Supplement [Abstract] | |
Schedule of Debt summmary | The following table summarizes debt as of September 30, 2022 and December 31, 2021 (in thousands): Outstanding Balance September 30, 2022 December 31, 2021 Secured debt: Fixed-rate property debt due December 2022 to June 2032 (1) $ 1,940,158 $ 2,217,256 Variable-rate property debt due October 2024 (2) 88,500 88,500 Total non-recourse property debt 2,028,658 2,305,756 Debt issuance costs, net of accumulated amortization ( 9,241 ) ( 11,017 ) Total non-recourse property debt, net $ 2,019,417 $ 2,294,739 Unsecured debt: Term loans due December 2023 to April 2026 (2) (3) 800,000 1,150,000 Revolving credit facility borrowings due April 2025 (4) 479,000 304,000 4.58 % Notes payable due June 2027 (5) 100,000 — 4.77 % Notes payable due June 2029 (5) 100,000 — 4.84 % Notes payable due June 2032 (5) 200,000 — Total unsecured debt 1,679,000 1,454,000 Debt issuance costs, net of accumulated amortization ( 6,249 ) ( 5,453 ) Total unsecured debt, net $ 1,672,751 $ 1,448,547 Total indebtedness $ 3,692,168 $ 3,743,286 (1) The stated rates on our fixed-rate property debt are 2.4 % to 4.2 % . (2) During the second quarter of 2022, we hedged $ 830 million of our floating rate debt through placement of floating to fixed rate swaps, which have been designated as cash flow hedges. These hedges lock $830 million of floating rate debt at an all in cost of 4.2 %. (3) The term loans bear interest at a 1-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.00 % and a SOFR adjustment of 10 basis points, based on our current credit rating. As of September 30, 2022, the weighted-average interest rate for our term loans, which is fixed via interest rate swaps beginning with the second quarter of 2022, was 4.1 % . (4) On May 2, 2022, we exercised the accordion feature on our revolving credit facility, increasing the revolving credit facility by $ 400 million to $ 1.0 billion. As of September 30, 2022, we had capacity to borrow up to $ 509.9 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a 1-month Term SOFR plus 0.89 %, based on our current credit rating, and a SOFR adjustment of 10 basis points. As of September 30, 2022, the weighted-average interest rate for our revolving credit facility was 4.1 % . (5) During the second quarter of 2022, we issued three tranches of guaranteed, senior unsecured notes, totaling $ 400 million. As of September 30, 2022, the weighted-average interest rate for senior unsecured notes was 4.3 % |
Earnings and Dividends per Sh_2
Earnings and Dividends per Share and per Unit (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliations of Numerator and Denominator in Calculations of Basic and Diluted Earnings (Loss) per Share and per Unit | Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit are as follows (in thousands, except per share and per unit data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Earnings per share Numerator: Basic net income attributable to AIR common stockholders $ 1,760 $ 9,289 $ 574,363 $ 74,455 Effect of dilutive instruments — — 4,807 — Dilutive net income attributable to AIR common stockholders $ 1,760 $ 9,289 $ 579,170 $ 74,455 Denominator – shares: Basic weighted-average common shares outstanding 153,811 156,646 155,488 153,289 Dilutive common share equivalents outstanding 246 396 1,952 361 Dilutive weighted-average common shares outstanding 154,057 157,042 157,440 153,650 Earnings per share – basic $ 0.01 $ 0.06 $ 3.69 $ 0.49 Earnings per share – diluted $ 0.01 $ 0.06 $ 3.68 $ 0.48 Earnings per unit Numerator: Basic net income attributable to the AIR Operating Partnership's common unitholders $ 1,897 $ 9,764 $ 611,416 $ 78,421 Effect of dilutive instruments — — 4,935 — Basic and dilutive net income attributable to the AIR Operating Partnership's common unitholders $ 1,897 $ 9,764 $ 616,351 $ 78,421 Denominator – units: Basic weighted-average common units outstanding 163,866 164,603 165,578 161,336 Dilutive common unit equivalents outstanding 246 396 1,951 361 Dilutive weighted-average common units outstanding 164,112 164,999 167,529 161,697 Earnings per unit – basic $ 0.01 $ 0.06 $ 3.69 $ 0.49 Earnings per unit – diluted $ 0.01 $ 0.06 $ 3.68 $ 0.48 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value for Interest Rate Options and swaps | The following table summarizes fair value for our interest rate option and swaps (in thousands): As of September 30, 2022 As of December 31, 2021 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Interest rate option $ 53,989 $ — $ 53,989 $ — $ 21,699 $ — $ 21,699 $ — Interest rate swap asset $ 34,543 $ — $ 34,543 $ — $ — $ — $ — $ — |
Summary of Carrying Value and Fair Value of Non-recourse Property Debt | The following table summarizes carrying value and fair value of our non-recourse property debt, excluding debt issuance costs (in thousands): As of September 30, 2022 As of December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Non-recourse property debt $ 2,028,658 $ 1,785,851 $ 2,305,756 $ 2,367,713 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The table below summarizes apartment community information regarding VIEs consolidated by the AIR Operating Partnership: September 30, 2022 December 31, 2021 VIEs with interests in apartment communities 5 5 Apartment communities owned by VIEs 16 16 Apartment homes in communities owned by VIEs 5,369 5,369 Assets of the AIR Operating Partnership’s consolidated VIEs must first be used to settle the liabilities of such consolidated VIEs. These consolidated VIEs’ creditors do not have recourse to the general credit of the AIR Operating Partnership. Assets and liabilities of VIEs, excluding those of the AIR Operating Partnership, are summarized in the table below (in thousands): September 30, 2022 December 31, 2021 ASSETS: Net real estate $ 1,075,327 $ 1,096,039 Cash and cash equivalents 51,199 29,863 Restricted cash 2,329 2,380 Other assets, net 21,873 21,745 LIABILITIES: Non-recourse property debt $ 1,215,933 $ 1,227,345 Accrued liabilities and other 40,814 34,659 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Information for Reportable Segments | To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of September 30, 2022 (in thousands): Same Other Proportionate Corporate and Consolidated Three months ended September 30, 2022: Total revenues $ 139,107 $ 30,258 $ 20,725 $ 10,781 $ 200,871 Property operating expenses 35,632 10,606 10,562 14,450 71,250 Other operating expenses not allocated to segments (3) — — — 103,049 103,049 Total operating expenses 35,632 10,606 10,562 117,499 174,299 Proportionate property net operating income (loss) 103,475 19,652 10,163 ( 106,718 ) 26,572 Other items included in income before income tax expense (4) — — — ( 23,130 ) ( 23,130 ) Income (loss) before income tax expense $ 103,475 $ 19,652 $ 10,163 $ ( 129,848 ) $ 3,442 Same Other Proportionate Corporate and Consolidated Nine months ended September 30, 2022: Total revenues $ 402,756 $ 62,371 $ 60,153 $ 40,569 $ 565,849 Property operating expenses 105,570 23,486 30,064 39,153 198,273 Other operating expenses not allocated to segments (3) — — — 279,126 279,126 Total operating expenses 105,570 23,486 30,064 318,279 477,399 Proportionate property net operating income (loss) 297,186 38,885 30,089 ( 277,710 ) 88,450 Other items included in income before income tax — — — 528,955 528,955 Income before income tax expense $ 297,186 $ 38,885 $ 30,089 $ 251,245 $ 617,405 Same Other Proportionate Corporate and Consolidated Three months ended September 30, 2021: Total revenues $ 134,102 $ 5,558 $ 20,608 $ 31,509 $ 191,777 Property operating expenses 36,883 2,963 10,604 23,475 73,925 Other operating expenses not allocated to segments (3) — — — 90,812 90,812 Total operating expenses 36,883 2,963 10,604 114,287 164,737 Proportionate property net operating income (loss) 97,219 2,595 10,004 ( 82,778 ) 27,040 Other items included in income (loss) before income tax benefit (4) — — — ( 16,644 ) ( 16,644 ) Income (loss) before income tax benefit $ 97,219 $ 2,595 $ 10,004 $ ( 99,422 ) $ 10,396 Same Other Proportionate Corporate and Consolidated Nine months ended September 30, 2021: Total revenues $ 386,998 $ 8,562 $ 58,904 $ 92,059 $ 546,523 Property operating expenses 109,299 5,351 30,091 58,559 203,300 Other operating expenses not allocated to segments (3) — — — 256,909 256,909 Total operating expenses 109,299 5,351 30,091 315,468 460,209 Proportionate property net operating income (loss) 277,699 3,211 28,813 ( 223,409 ) 86,314 Other items included in income (loss) before income tax expense (4) — — — ( 5,445 ) ( 5,445 ) Income (loss) before income tax expense $ 277,699 $ 3,211 $ 28,813 $ ( 228,854 ) $ 80,869 (1) Represents adjustments for third-party share of unconsolidated apartment communities and the noncontrolling interests in consolidated real estate partnerships’ share of the results of communities in our segments, which are included in the related consolidated amounts but excluded from proportionate property NOI for our segment evaluation. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our condensed consolidated statements of operations prepared in accordance with GAAP. Effective in 2022, corporate and amounts not allocated to segments includes the depreciation of capitalized costs of non-real estate assets. (2) Includes the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any. Also includes property management revenues, which are not part of our segment performance measure and property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure. (3) Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include provision for real estate impairment loss and write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4) Includes gain on dispositions of real estate and derecognition of leased properties, interest income, interest expense, loss from unconsolidated real estate partnerships, and loss on extinguishment of debt. |
Reconciliation of Assets from Segment to Consolidated | The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands): September 30, 2022 December 31, 2021 Same Store $ 3,861,337 $ 3,824,277 Other Real Estate 2,077,214 787,534 Corporate and other assets (1) 783,902 1,828,549 Total consolidated assets $ 6,722,453 $ 6,440,360 (1) Includes the assets not allocated to our segments including: (i) corporate assets; (ii) the mezzanine loan investment where the rights and obligations of ownership have been assigned to Aimco; and (iii) sold properties, or properties classified as held for sale as of September 30, 2022. Corporate and other assets as of December 31, 2021, also includes the note receivable from Aimco, which was repaid in 2022, and the lease receivable related to properties leased to Aimco, which was canceled during the third quarter of 2022 . |
Capital Additions Related to Segments | 2022 2021 Same Store $ 114,679 $ 97,294 Other Real Estate 30,459 13,588 Total capital additions $ 145,138 $ 110,882 |
Basis of Presentation and Org_2
Basis of Presentation and Organization (Details Textual) | 9 Months Ended | |
Sep. 30, 2022 ApartmentHome Property StateAndDistrict shares | Dec. 31, 2021 Multi_family_apartment | |
Organization [Line Items] | ||
Number of apartment communities | Property | 80 | |
Number of apartment homes in apartment communities | Multi_family_apartment | 1,748 | |
Number of states and district | StateAndDistrict | 11 | |
Partially Owned Properties [Member] | ||
Organization [Line Items] | ||
Number of apartment homes in apartment communities | ApartmentHome | 26,600 | |
Percentage of average ownership of portfolio | 88% | |
AIR Operating Partnership [Member] | ||
Organization [Line Items] | ||
Common operating partnership units and equivalents outstanding | 166,045,781 | |
Common operating partnership units and equivalents outstanding | 152,993,448 | |
Percentage of the Aimco Operating Partnership's common partnership units and equivalents owned by Aimco | 92.10% | |
Percentage of economic interest | 93.80% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Preferred OP Units (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance at January 1, 2022 | $ 79,370 |
Preferred distributions | (4,823) |
Redemption of preferred units | (24) |
Net income | 4,807 |
Balance at September 30, 2022 | $ 79,330 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) - AIMCO PROPERTIES, L.P [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Units outstanding (in shares) | 2,934,063 | 2,935,662 |
Minimum [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Distributions per annum (in dollars per share) | $ 0.48 | |
Distributions per annum | 1.92% | |
Maximum [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Distributions per annum (in dollars per share) | $ 8 | |
Distributions per annum | 8.75% |
Significant Transactions - Sche
Significant Transactions - Schedule of Acquisition (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) Property Unit | Sep. 30, 2022 USD ($) Unit Property | Dec. 31, 2021 Multi_family_apartment | ||
Business Acquisition [Line Items] | ||||
Number of apartment communities | Property | 80 | 80 | ||
Number of apartment homes | Multi_family_apartment | 1,748 | |||
Florida and Washington, DC. [Member] | Apartment Community [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of apartment communities | Unit | 1 | 4 | ||
Number of apartment homes purchased | Unit | 350 | 1,351 | ||
Purchase price | $ 173,000 | $ 640,067 | ||
Capitalized transaction costs | 1,551 | 7,325 | ||
Total consideration | 174,551 | 647,392 | ||
Consideration allocated to land | 14,480 | 54,918 | ||
Consideration allocated to building and improvements | 156,980 | 577,712 | ||
Consideration allocated to right of use lease asset | 0 | 80,651 | ||
Consideration allocated to intangible assets | [1] | 3,465 | 17,203 | |
Consideration allocated to Lease liability | 0 | (80,651) | ||
Consideration allocated to below-market lease liabilities | [1] | (103) | (613) | |
Consideration allocated to Real estate tax liability assumed | $ 271 | $ 1,828 | ||
[1] Intangible assets and below-market lease liabilities have a weighted-average term of 2.2 years and 1.4 years, respectively. |
Significant Transactions - Sc_2
Significant Transactions - Schedule of Acquisition (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Below-market leases [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average term | 1 year 4 months 24 days |
Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average term | 2 years 2 months 12 days |
Significant Transactions - Summ
Significant Transactions - Summary of Lease Cancellation cost (Details) $ in Thousands | Sep. 01, 2022 USD ($) Unit | Sep. 30, 2022 Property | Dec. 31, 2021 Multi_family_apartment | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of apartment communities | Property | 80 | |||
Number of apartment homes | Multi_family_apartment | 1,748 | |||
Apartment Community [Member] | Aimco [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of apartment communities | Unit | 4 | |||
Number of apartment homes | Unit | 865 | |||
Payments to Acquire Land | $ 133,471 | |||
Consideration allocated to building and improvements | 520,448 | |||
Consideration allocated to intangible assets | [1] | 13,470 | ||
Consideration allocated to below-market lease liabilities | [1] | (866) | ||
Total consideration | [2] | $ 666,523 | ||
[1] Intangible assets and below-market lease liabilities have a weighted-average term of less than a year. Includes the leased real estate asset as of the cancellation date and the added improvement value payment. Capital Allocation – Share Repurchases During the three months ended September 30, 2022, AIR repurchased 1.2 million shares for $ 47 million, at an average price of $ 39.07 per share. Subsequent to quarter end and through November 2, 2022 we have purchased an additional 3.1 million shares for $ 115 million. In aggregate, we have repurchased 7.2 million shares during 2022 at an average price of $ 39.96 . We are authorized by the AIR Board of Directors to repurchase an additional $ 213 million of shares. We consider share buybacks as part of a balanced investment program. |
Significant Transactions (Detai
Significant Transactions (Details Textual) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | |||
Sep. 01, 2022 USD ($) | Nov. 02, 2022 USD ($) shares | Sep. 30, 2022 USD ($) Segment Property $ / shares shares | Sep. 30, 2022 USD ($) Segment Property | Nov. 02, 2022 $ / shares shares | Aug. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Multi_family_apartment | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Number of Real Estate Properties | Property | 80 | 80 | |||||
Number of apartment homes in apartment communities | Multi_family_apartment | 1,748 | ||||||
Number Of Units In Real Estate Property Held For Sale | Segment | 1,314 | 1,314 | |||||
Payment to acquire additional Properties | $ 200,000 | ||||||
Leased Real Estate Assets | $ 0 | $ 0 | $ 466,000 | $ 466,355 | |||
Repurchases of Common Stock | (46,711) | (171,711) | |||||
Apartment Income REIT, L.P. [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Leased Real Estate Assets | $ 0 | $ 0 | $ 466,355 | ||||
Capital Allocation - Share Repurchases [Member] | Apartment Income REIT, L.P. [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Repurchases of Common Stock (in shares) | shares | (1,200,000) | (7,200,000) | |||||
Repurchases of Common Stock | $ (47,000) | ||||||
Share repurchase average price, per share | $ / shares | $ 39.07 | $ 39.96 | |||||
Capital Allocation - Share Repurchases [Member] | Apartment Income REIT, L.P. [Member] | Board of Directors Chairman [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Remaining Number of Shares Authorized to be Repurchased | shares | 213,000,000 | 213,000,000 | |||||
Subsequent Event [Member] | Capital Allocation - Share Repurchases [Member] | Apartment Income REIT, L.P. [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Repurchases of Common Stock (in shares) | shares | (3,100,000) | ||||||
Repurchases of Common Stock | $ (115,000) | ||||||
Apartment Community [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Number Of Homes In Real Estate Property Sold | Segment | 2,050 | ||||||
Proceeds from Sale of Real Estate | $ 781,100 | ||||||
Apartment Communities Sold | Segment | 0 | ||||||
South Florida [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Apartment Communities Purchased | Property | 3 | ||||||
Washington, D.C. [Member] | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Apartment Communities Purchased | Property | 1 |
Leases - Lease Income for Opera
Leases - Lease Income for Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Fixed lease income | $ 184,509 | $ 176,388 | $ 522,074 | $ 505,400 |
Variable lease income | 13,141 | 12,953 | 35,165 | 34,589 |
Total lease income | $ 197,650 | $ 189,341 | $ 557,239 | $ 539,989 |
Leases - Future Minimum Annual
Leases - Future Minimum Annual Rental Payments Receivable Under Residential and Commercial Leases (Details) - Commercial Real Estate [Member] $ in Thousands | Sep. 30, 2022 USD ($) |
Lessor, Lease, Description [Line Items] | |
2022 (remaining) | $ 184,873 |
2023 | 440,389 |
2024 | 85,643 |
2025 | 11,264 |
2026 | 9,572 |
Thereafter | 42,923 |
Total lease receivable | $ 774,664 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Sales-type Lease, Interest Income, Lease Receivable | $ 4.4 | $ 6.5 | $ 17.3 | $ 19.4 |
Residential Lease [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lessor, Operating Lease, Option to Extend | Generally, our residential leases do not provide extension options | |||
Operating Lease, Weighted Average Remaining Lease Term | 10 months 15 days | 10 months 15 days |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Total indebtedness | $ 3,692,168 | $ 3,743,286 | |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 2,019,417 | 2,294,739 | |
Debt issuance costs, net of accumulated amortization | 9,241 | 11,017 | |
Secured Debt | Fixed Rate Property Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | 1,940,158 | 2,217,256 |
Secured Debt | Variable Rate Property Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | 88,500 | 88,500 |
Secured Debt | Non-recourse property debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 2,028,658 | 2,305,756 | |
Unsecured Debt Gross | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 1,679,000 | 1,454,000 | |
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 1,672,751 | 1,448,547 | |
Debt issuance costs, net of accumulated amortization | 6,249 | 5,453 | |
Unsecured Debt | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2],[3] | 800,000 | 1,150,000 |
Unsecured Debt | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [4] | 479,000 | 304,000 |
Unsecured Debt | 4.58% Notes payable due June 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [5] | 100,000 | 0 |
Unsecured Debt | 4.77% Notes payable due June 2029 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [5] | 100,000 | 0 |
Unsecured Debt | 4.84% Notes payable due June 2032 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [5] | $ 200,000 | $ 0 |
[1] The stated rates on our fixed-rate property debt are 2.4 % to 4.2 % . During the second quarter of 2022, we hedged $ 830 million of our floating rate debt through placement of floating to fixed rate swaps, which have been designated as cash flow hedges. These hedges lock $830 million of floating rate debt at an all in cost of 4.2 %. The term loans bear interest at a 1-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.00 % and a SOFR adjustment of 10 basis points, based on our current credit rating. As of September 30, 2022, the weighted-average interest rate for our term loans, which is fixed via interest rate swaps beginning with the second quarter of 2022, was 4.1 % . On May 2, 2022, we exercised the accordion feature on our revolving credit facility, increasing the revolving credit facility by $ 400 million to $ 1.0 billion. As of September 30, 2022, we had capacity to borrow up to $ 509.9 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a 1-month Term SOFR plus 0.89 %, based on our current credit rating, and a SOFR adjustment of 10 basis points. As of September 30, 2022, the weighted-average interest rate for our revolving credit facility was 4.1 % . During the second quarter of 2022, we issued three tranches of guaranteed, senior unsecured notes, totaling $ 400 million. As of September 30, 2022, the weighted-average interest rate for senior unsecured notes was 4.3 % |
Debt - Schedule of Debt Instr_2
Debt - Schedule of Debt Instruments (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | May 02, 2022 | |
Debt Instrument [Line Items] | ||||
Hedging amount | $ 830,000 | |||
New unsecured credit facility | 479,000 | $ 304,000 | ||
Term loans | $ 796,334 | $ 1,144,547 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 4.10% | |||
New unsecured credit facility | $ 509,900 | |||
SOFR | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.89% | |||
Maximum [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 1,000,000 | |||
Minimum [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 400,000 | |||
Secured Debt [Member] | Fixed Rate Property Debt | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2032-06 | 2032-06 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |||
Secured Debt [Member] | Fixed Rate Property Debt | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2022-12 | 2022-12 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.40% | |||
Secured Debt [Member] | Variable Rate Property Debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2024-10 | 2024-10 | ||
Hedging amount | $ 830 | |||
Secured Debt [Member] | Floating Rate | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, All in Cost Rate | 4.20% | |||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 4.30% | |||
Term loans | $ 400,000 | |||
Unsecured Debt [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 4.10% | |||
Unsecured Debt [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2025-04 | 2025-04 | ||
Unsecured Debt [Member] | SOFR | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1% | |||
Unsecured Debt [Member] | Maximum [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2026-04 | 2026-04 | ||
Unsecured Debt [Member] | Minimum [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2023-12 | 2023-12 | ||
Unsecured Debt [Member] | 4.58% Notes payable due June 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2027-06 | 2027-06 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.58% | 4.58% | ||
Unsecured Debt [Member] | 4.77% Notes payable due June 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2029-06 | 2029-06 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.77% | 4.77% | ||
Unsecured Debt [Member] | 4.84% Notes payable due June 2032 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Maturity Month and Year | 2032-06 | 2032-06 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.84% | 4.84% |
Debt (Details Textual)
Debt (Details Textual) | 9 Months Ended |
Sep. 30, 2022 Ratio | |
Debt Instrument [Line Items] | |
Fixed Charge Coverage Ratio | 1.5 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Secured Indebtedness to Total Assets Ratio | 1 |
Secured Indebtedness to Total Assets Ratio Thereafter | 1 |
Unsecured Leverage Ratio | 1 |
Unsecured Interest Coverage Ratio | 1 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Secured Indebtedness to Total Assets Ratio | 0.45 |
Secured Indebtedness to Total Assets Ratio Thereafter | 0.40 |
Unsecured Leverage Ratio | 0.60 |
Unsecured Interest Coverage Ratio | 1.50 |
Leverage Ratio [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Unsecured Leverage Ratio | 1 |
Leverage Ratio [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Unsecured Leverage Ratio | 0.60 |
Earnings and Dividends per Sh_3
Earnings and Dividends per Share and per Unit - Reconciliations of Numerator and Denominator in Calculations of Basic and Diluted Earnings (Loss) per Share and per Unit (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Earnings Per Share And Per Unit [Line Items] | ||||
Basic net income attributable to AIR common stockholders | $ 1,760,000 | $ 9,289,000 | $ 574,363,000 | $ 74,455,000 |
Effect of dilutive instruments | 4,807,000 | |||
Dilutive net income attributable to AIR common stockholders | $ 1,760,000 | $ 9,289,000 | $ 579,170,000 | $ 74,455,000 |
Denominator: | ||||
Basic weighted-average common shares outstanding | 153,811 | 156,646 | 155,488 | 153,289 |
Dilutive common share equivalents outstanding | 246 | 396 | 1,952 | 361 |
Dilutive weighted-average common shares outstanding | 154,057 | 157,042 | 157,440 | 153,650 |
Earnings per share - basic | $ 0.01 | $ 0.06 | $ 3.69 | $ 0.49 |
Earnings per share - diluted | $ 0.01 | $ 0.06 | $ 3.68 | $ 0.48 |
AIMCO Properties, LP [Member] | ||||
Schedule Of Earnings Per Share And Per Unit [Line Items] | ||||
Basic net income attributable to AIR common stockholders | $ 1,897 | $ 9,764 | $ 611,416 | $ 78,421 |
Effect of dilutive instruments | 4,935,000 | |||
Dilutive net income attributable to AIR common stockholders | $ 1,897 | $ 9,764 | $ 616,351 | $ 78,421 |
Denominator: | ||||
Earnings per share - basic | $ 0.01 | $ 0.06 | $ 3.69 | $ 0.49 |
Earnings per share - diluted | $ 0.01 | $ 0.06 | $ 3.68 | $ 0.48 |
Apartment Income REIT, L.P [Member] | ||||
Schedule Of Earnings Per Share And Per Unit [Line Items] | ||||
Basic net income attributable to AIR common stockholders | $ 1,897,000 | $ 9,764,000 | $ 611,416,000 | $ 78,421,000 |
Denominator: | ||||
Basic weighted-average common shares outstanding | 163,866 | 164,603 | 165,578 | 161,336 |
Basic weighted-average common units outstanding | 163,866 | 164,603 | 165,578 | 161,336 |
Dilutive common unit equivalents outstanding | 246 | 396 | 1,951 | 361 |
Dilutive weighted-average common shares outstanding | 164,112 | 164,999 | 167,529 | 161,697 |
Weighted Average Limited Partnership Units Outstanding, Diluted | 164,112 | 164,999 | 167,529 | 161,697 |
Earnings per share - basic | $ 0.01 | $ 0.06 | $ 3.69 | $ 0.49 |
Earnings per share - diluted | $ 0.01 | $ 0.06 | $ 3.68 | $ 0.48 |
Basic weighted-average common units outstanding | 163,866 | 164,603 | 165,578 | 161,336 |
Dilutive common unit equivalents outstanding | 246 | 396 | 1,951 | 361 |
Dilutive weighted-average common units outstanding | 164,112 | 164,999 | 167,529 | 161,697 |
Earnings and Dividends per Sh_4
Earnings and Dividends per Share and per Unit (Details Textual) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 1.9 | 1.6 | 1.7 | |
Dividends and distributions paid | $ 0.45 | $ 0.44 | $ 1.35 | $ 1.30 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 15, 2020 | Jun. 30, 2022 | Sep. 30, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Hedged Asset, Fair Value Hedge | $ 830 | ||
Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges | $ 13.3 | ||
Cash received, settlement of hedge | $ 15.9 | ||
Senior Unsecured Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
interest rate locked on treasury | 2.43% | ||
Debt Instrument, Interest Rate Terms | locking the interest rate of the ten-year treasury at 2.43% | ||
Hedge Funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Face amount of investment in available-for-sale debt securities | $ 400 | ||
Interest Rate Option [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Payments for purchase of swaption | $ 12.1 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value for Interest Rate Options (Details) - Fair value recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate option | $ 53,989 | $ 21,699 |
Interest rate swap asset | 34,543 | 0 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate option | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate option | 53,989 | 21,699 |
Interest rate swap asset | 34,543 | 0 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate option | 0 | 0 |
Interest rate swap asset | $ 0 | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Value and Fair Value of Non-recourse Property Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Non-recourse property debt | $ 3,692,168 | $ 3,743,286 |
Carrying Value [Member] | Fair Value, Nonrecurring [Member] | Non-recourse property debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Non-recourse property debt | 2,028,658 | 2,305,756 |
Fair Value [Member] | Fair Value, Nonrecurring [Member] | Non-recourse property debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Non-recourse property debt | $ 1,785,851 | $ 2,367,713 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | Sep. 30, 2022 USD ($) Segment Property | Dec. 31, 2021 USD ($) Segment Multi_family_apartment |
Number of owned and managed apartment communities in segments | Property | 80 | |
Number of apartment homes in apartment communities | Multi_family_apartment | 1,748 | |
Net real estate | $ 5,667,778 | $ 4,600,288 |
Cash and cash equivalents | 87,732 | 67,320 |
Restricted cash | 26,914 | 25,441 |
Other assets, net | 779,205 | 568,051 |
Non-recourse property debt, net | 2,019,417 | 2,294,739 |
Accrued liabilities and other | $ 758,441 | $ 592,774 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
VIEs with interests in apartment communities | Segment | 5 | 5 |
Number of owned and managed apartment communities in segments | Segment | 16 | 16 |
Number of apartment homes in apartment communities | Segment | 5,369 | 5,369 |
Net real estate | $ 1,075,327 | $ 1,096,039 |
Cash and cash equivalents | 51,199 | 29,863 |
Restricted cash | 2,329 | 2,380 |
Other assets, net | 21,873 | 21,745 |
Non-recourse property debt, net | 1,215,933 | 1,227,345 |
Accrued liabilities and other | $ 40,814 | $ 34,659 |
Variable Interest Entities (D_2
Variable Interest Entities (Details Textual) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) Multi_family_apartment | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Percentage of ownership sold to affiliate | 80% | |
Number of apartment homes in apartment communities | Multi_family_apartment | 1,748 | |
Affiliate of Blackstone [Member] | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
General partner ownership percentage | 20% | |
Limited partner ownership percentage | 20% | |
Parkmerced Investment [Member] | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Equity method investments | $ 362.8 | $ 337.8 |
Affiliate of Blackstone Investment [Member] | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Equity method investments | 21.3 | $ 26 |
Affiliate of Blackstone Investment [Member] | Affiliate of Blackstone [Member] | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Equity method investments | $ 79 |
Business Segments (Details Text
Business Segments (Details Textual) | 9 Months Ended | ||
Sep. 30, 2022 Property ApartmentHome Segment | Dec. 31, 2021 Multi_family_apartment | Sep. 30, 2021 Property | |
Business Segments (Textual) [Abstract] | |||
Number of reportable segments | Segment | 2 | ||
Number of owned and managed apartment communities in segments | 80 | ||
Number of apartment homes in apartment communities | Multi_family_apartment | 1,748 | ||
Expect to Sell or Lease to Third Party [Member] | |||
Business Segments (Textual) [Abstract] | |||
Number of apartment homes in apartment communities | 4 | ||
Wholly And Partially Owned Consolidated Properties [Member] | Held For Sale [Member] | |||
Business Segments (Textual) [Abstract] | |||
Number of owned and managed apartment communities in segments | 6 | ||
Number of apartment homes in apartment communities | 1,314 | ||
Wholly And Partially Owned Consolidated Properties [Member] | Same Store [Member] | |||
Business Segments (Textual) [Abstract] | |||
Number of owned and managed apartment communities in segments | 58 | ||
Number of apartment homes in apartment communities | ApartmentHome | 20,730 | ||
Wholly And Partially Owned Consolidated Properties [Member] | Other Real Estate [Member] | |||
Business Segments (Textual) [Abstract] | |||
Number of owned and managed apartment communities in segments | 16 | ||
Number of apartment homes in apartment communities | ApartmentHome | 4,556 | ||
Wholly Owned Consolidated Properties [Member] | Other Real Estate [Member] | |||
Business Segments (Textual) [Abstract] | |||
Number of owned and managed apartment communities in segments | 4 | 5 |
Business Segments - Summary of
Business Segments - Summary of Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Summary information for the reportable segments | |||||
Revenues, Total | $ 200,871 | $ 191,777 | $ 565,849 | $ 546,523 | |
Other operating expenses not allocated to segments | [1] | 103,049 | 90,812 | 279,126 | 256,909 |
Total operating expenses | 174,299 | 164,737 | 477,399 | 460,209 | |
Proportionate property net operating income | 26,572 | 27,040 | 88,450 | 86,314 | |
Other items included in income before income tax expense | [2] | (23,130) | (16,644) | 528,955 | (5,445) |
Income before income tax (expense) benefit | 3,442 | 10,396 | 617,405 | 80,869 | |
Real Estate [Member] | |||||
Summary information for the reportable segments | |||||
Property operating expenses | 71,250 | 73,925 | 198,273 | 203,300 | |
Segment Reconciling Items [Member] | |||||
Summary information for the reportable segments | |||||
Revenues, Total | [3] | 20,725 | 20,608 | 60,153 | 58,904 |
Other operating expenses not allocated to segments | [1],[3] | 0 | 0 | 0 | 0 |
Total operating expenses | [3] | 10,562 | 10,604 | 30,064 | 30,091 |
Proportionate property net operating income | [3] | 10,163 | 10,004 | 30,089 | 28,813 |
Other items included in income before income tax expense | [2],[3] | 0 | 0 | 0 | 0 |
Income before income tax (expense) benefit | [3] | 10,163 | 10,004 | 30,089 | 28,813 |
Segment Reconciling Items [Member] | Real Estate [Member] | |||||
Summary information for the reportable segments | |||||
Property operating expenses | [3] | 10,562 | 10,604 | 30,064 | 30,091 |
Corporate Non-Segment [Member] | |||||
Summary information for the reportable segments | |||||
Revenues, Total | [4] | 10,781 | 31,509 | 40,569 | 92,059 |
Other operating expenses not allocated to segments | [1],[4] | 103,049 | 90,812 | 279,126 | 256,909 |
Total operating expenses | [4] | 117,499 | 114,287 | 318,279 | 315,468 |
Proportionate property net operating income | [4] | (106,718) | (82,778) | (277,710) | (223,409) |
Other items included in income before income tax expense | [2],[4] | (23,130) | (16,644) | 528,955 | (5,445) |
Income before income tax (expense) benefit | [4] | (129,848) | (99,422) | 251,245 | (228,854) |
Corporate Non-Segment [Member] | Real Estate [Member] | |||||
Summary information for the reportable segments | |||||
Property operating expenses | [4] | 14,450 | 23,475 | 39,153 | 58,559 |
Same Store [Member] | Operating Segments [Member] | |||||
Summary information for the reportable segments | |||||
Revenues, Total | 139,107 | 134,102 | 402,756 | 386,998 | |
Other operating expenses not allocated to segments | [1] | 0 | 0 | 0 | 0 |
Total operating expenses | 35,632 | 36,883 | 105,570 | 109,299 | |
Proportionate property net operating income | 103,475 | 97,219 | 297,186 | 277,699 | |
Other items included in income before income tax expense | [2] | 0 | 0 | 0 | 0 |
Income before income tax (expense) benefit | 103,475 | 97,219 | 297,186 | 277,699 | |
Same Store [Member] | Operating Segments [Member] | Real Estate [Member] | |||||
Summary information for the reportable segments | |||||
Property operating expenses | 35,632 | 36,883 | 105,570 | 109,299 | |
Other Real Estate [Member] | Operating Segments [Member] | |||||
Summary information for the reportable segments | |||||
Revenues, Total | 30,258 | 5,558 | 62,371 | 8,562 | |
Other operating expenses not allocated to segments | [1] | 0 | 0 | 0 | 0 |
Total operating expenses | 10,606 | 2,963 | 23,486 | 5,351 | |
Proportionate property net operating income | 19,652 | 2,595 | 38,885 | 3,211 | |
Other items included in income before income tax expense | [2] | 0 | 0 | 0 | 0 |
Income before income tax (expense) benefit | 19,652 | 2,595 | 38,885 | 3,211 | |
Other Real Estate [Member] | Operating Segments [Member] | Real Estate [Member] | |||||
Summary information for the reportable segments | |||||
Property operating expenses | $ 10,606 | $ 2,963 | $ 23,486 | $ 5,351 | |
[1] Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include provision for real estate impairment loss and write-offs of deferred leasing commissions, which are not included in our measure of segment performance. Includes gain on dispositions of real estate and derecognition of leased properties, interest income, interest expense, loss from unconsolidated real estate partnerships, and loss on extinguishment of debt. Represents adjustments for third-party share of unconsolidated apartment communities and the noncontrolling interests in consolidated real estate partnerships’ share of the results of communities in our segments, which are included in the related consolidated amounts but excluded from proportionate property NOI for our segment evaluation. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our condensed consolidated statements of operations prepared in accordance with GAAP. Effective in 2022, corporate and amounts not allocated to segments includes the depreciation of capitalized costs of non-real estate assets. Includes the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any. Also includes property management revenues, which are not part of our segment performance measure and property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure. |
Business Segments - Reconciliat
Business Segments - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 6,722,453 | $ 6,440,360 | |
Corporate Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | [1] | 783,902 | 1,828,549 |
Same Store [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 3,861,337 | 3,824,277 | |
Other Real Estate [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 2,077,214 | $ 787,534 | |
[1] Includes the assets not allocated to our segments including: (i) corporate assets; (ii) the mezzanine loan investment where the rights and obligations of ownership have been assigned to Aimco; and (iii) sold properties, or properties classified as held for sale as of September 30, 2022. Corporate and other assets as of December 31, 2021, also includes the note receivable from Aimco, which was repaid in 2022, and the lease receivable related to properties leased to Aimco, which was canceled during the third quarter of 2022 |
Business Segments - Capital Add
Business Segments - Capital Additions Related to Segments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Capital additions | $ 145,138 | $ 110,882 |
Same Store [Member] | ||
Segment Reporting Information [Line Items] | ||
Capital additions | 114,679 | 97,294 |
Other Real Estate [Member] | ||
Segment Reporting Information [Line Items] | ||
Capital additions | $ 30,459 | $ 13,588 |