Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-39686 | |
Entity Registrant Name | APARTMENT INCOME REIT CORP. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 84-1299717 | |
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 | |
Title of 12(b) Security | Class A Common Stock (Apartment Income REIT Corp.) | |
Trading Symbol | AIRC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,992,711 | |
Entity Central Index Key | 0001820877 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Apartment Income REIT, L.P. | ||
Document Information [Line Items] | ||
Entity File Number | 0-24497 | |
Entity Registrant Name | APARTMENT INCOME REIT, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1275621 | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 303 | |
Local Phone Number | 757-8101 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000926660 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Buildings and improvements | $ 6,290,960 | $ 6,784,965 |
Land | 1,285,398 | 1,291,429 |
Total real estate | 7,576,358 | 8,076,394 |
Accumulated depreciation | (2,173,273) | (2,449,883) |
Net real estate | 5,403,085 | 5,626,511 |
Cash and cash equivalents | 106,630 | 95,797 |
Restricted cash | 27,540 | 205,608 |
Goodwill | 32,286 | 32,286 |
Investment in unconsolidated real estate partnerships | 352,096 | 41,860 |
Other assets, net | 477,612 | 549,821 |
Total assets | 6,399,249 | 6,551,883 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt, net | 2,231,238 | 1,985,430 |
Term loans, net | 473,486 | 796,713 |
Revolving credit facility borrowings | 25,750 | 462,000 |
Unsecured notes payable, net | 397,760 | 397,486 |
Total indebtedness | 3,128,234 | 3,641,629 |
Accrued liabilities and other | 483,147 | 513,805 |
Total liabilities | 3,611,381 | 4,155,434 |
Commitments and Contingencies | ||
Preferred noncontrolling interests in AIR Operating Partnership | 77,140 | 77,143 |
Equity: | ||
Perpetual Preferred Stock | 2,000 | 2,000 |
Common Stock, $0.01 par value, 1,021,175,000 shares authorized at September 30, 2023 and December 31, 2022, and 146,973,055 and 149,086,548 shares issued/outstanding at September 30, 2023 and December 31, 2022, respectively | 1,470 | 1,491 |
Additional paid-in capital | 3,355,316 | 3,436,635 |
Accumulated other comprehensive income | 24,794 | 43,562 |
Distributions in excess of earnings | (876,116) | (1,327,271) |
Total AIR equity | 2,507,464 | 2,156,417 |
Noncontrolling interests in consolidated real estate partnerships | (83,110) | (78,785) |
Common noncontrolling interests in AIR Operating Partnership | 286,374 | 241,674 |
Total equity | 2,710,728 | 2,319,306 |
Total liabilities and equity | 6,399,249 | 6,551,883 |
Apartment Income REIT, L.P. | ||
ASSETS | ||
Buildings and improvements | 6,290,960 | 6,784,965 |
Land | 1,285,398 | 1,291,429 |
Total real estate | 7,576,358 | 8,076,394 |
Accumulated depreciation | (2,173,273) | (2,449,883) |
Net real estate | 5,403,085 | 5,626,511 |
Cash and cash equivalents | 106,630 | 95,797 |
Restricted cash | 27,540 | 205,608 |
Goodwill | 32,286 | 32,286 |
Investment in unconsolidated real estate partnerships | 352,096 | 41,860 |
Other assets, net | 477,612 | 549,821 |
Total assets | 6,399,249 | 6,551,883 |
LIABILITIES AND EQUITY | ||
Non-recourse property debt, net | 2,231,238 | 1,985,430 |
Term loans, net | 473,486 | 796,713 |
Revolving credit facility borrowings | 25,750 | 462,000 |
Unsecured notes payable, net | 397,760 | 397,486 |
Total indebtedness | 3,128,234 | 3,641,629 |
Accrued liabilities and other | 483,147 | 513,805 |
Total liabilities | 3,611,381 | 4,155,434 |
Commitments and Contingencies | ||
Preferred noncontrolling interests in AIR Operating Partnership | 77,140 | 77,143 |
Equity: | ||
Preferred units | 2,000 | 2,000 |
General Partner and Special Limited Partner | 2,505,464 | 2,154,417 |
Limited Partners | 286,374 | 241,674 |
Partners’ capital attributable to the AIR Operating Partnership | 2,793,838 | 2,398,091 |
Noncontrolling interests in consolidated real estate partnerships | (83,110) | (78,785) |
Total equity | 2,710,728 | 2,319,306 |
Total liabilities and equity | $ 6,399,249 | $ 6,551,883 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,021,175,000 | 1,021,175,000 |
Common stock, shares issued | 146,973,055 | 149,086,548 |
Common stock, shares outstanding | 146,973,055 | 149,086,548 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
REVENUES | ||||
Total revenues | $ 197,307 | $ 200,871 | $ 623,677 | $ 565,849 |
EXPENSES | ||||
Property operating expenses | 58,076 | 64,009 | 190,122 | 176,679 |
Property management expenses | 7,899 | 7,241 | 23,318 | 21,594 |
Depreciation and amortization | 79,023 | 90,445 | 263,949 | 253,650 |
General and administrative expenses | 5,663 | 7,663 | 18,866 | 19,593 |
Other expenses, net | 8,110 | 4,941 | 14,434 | 5,883 |
Total operating expenses | 158,771 | 174,299 | 510,689 | 477,399 |
Interest income | 2,918 | 9,613 | 6,133 | 48,746 |
Interest expense | (22,888) | (32,656) | (96,629) | (80,790) |
Loss on extinguishment of debt | 0 | 0 | (2,008) | (23,636) |
Gain on dispositions and impairments of real estate | 692,861 | 0 | 675,534 | 587,609 |
Gain on derivative instruments, net | 14,070 | 0 | 23,322 | 0 |
Loss from unconsolidated real estate partnerships | (10,390) | (87) | (12,267) | (2,974) |
Income before income tax expense | 715,107 | 3,442 | 707,073 | 617,405 |
Income tax expense | (4,595) | (46) | (5,911) | (966) |
Net income | 710,512 | 3,396 | 701,162 | 616,439 |
Noncontrolling interests: | ||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | (2,525) | 102 | (3,894) | 285 |
Net income attributable to the AIR Operating Partnership | (1,570) | (1,602) | (4,710) | (4,807) |
Net income attributable to common noncontrolling interests in AIR Operating Partnership | (42,386) | (137) | (41,245) | (37,053) |
Net income attributable to noncontrolling interests | (46,481) | (1,637) | (49,849) | (41,575) |
Loss from unconsolidated real estate partnerships | 664,031 | 1,759 | 651,313 | 574,864 |
Net income attributable to AIR preferred stockholders | (44) | (43) | (129) | (128) |
Net (income) loss attributable to participating securities | (391) | 44 | (484) | (373) |
Net income attributable to AIR common stockholders | $ 663,596 | $ 1,760 | $ 650,700 | $ 574,363 |
Net income attributable to AIR common stockholders per share - basic (in dollars per share) | $ 4.50 | $ 0.01 | $ 4.39 | $ 3.69 |
Net income attributable to AIR common stockholders per share - diluted (in dollars per share) | $ 4.43 | $ 0.01 | $ 4.35 | $ 3.68 |
Weighted average common shares/units outstanding - basic (in shares) | 147,474 | 153,811 | 148,372 | 155,488 |
Weighted average common shares/units outstanding - diluted | 150,045 | 154,057 | 150,692 | 157,440 |
Rental and other property revenues | ||||
REVENUES | ||||
Total revenues | $ 194,244 | $ 198,413 | $ 616,659 | $ 558,686 |
Other revenues | ||||
REVENUES | ||||
Total revenues | 3,063 | 2,458 | 7,018 | 7,163 |
Apartment Income REIT, L.P. | ||||
REVENUES | ||||
Total revenues | 197,307 | 200,871 | 623,677 | 565,849 |
EXPENSES | ||||
Property operating expenses | 58,076 | 64,009 | 190,122 | 176,679 |
Property management expenses | 7,899 | 7,241 | 23,318 | 21,594 |
Depreciation and amortization | 79,023 | 90,445 | 263,949 | 253,650 |
General and administrative expenses | 5,663 | 7,663 | 18,866 | 19,593 |
Other expenses, net | 8,110 | 4,941 | 14,434 | 5,883 |
Total operating expenses | 158,771 | 174,299 | 510,689 | 477,399 |
Interest income | 2,918 | 9,613 | 6,133 | 48,746 |
Interest expense | (22,888) | (32,656) | (96,629) | (80,790) |
Loss on extinguishment of debt | 0 | 0 | (2,008) | (23,636) |
Gain on dispositions and impairments of real estate | 692,861 | 0 | 675,534 | 587,609 |
Gain on derivative instruments, net | 14,070 | 0 | 23,322 | 0 |
Loss from unconsolidated real estate partnerships | (10,390) | (87) | (12,267) | (2,974) |
Income before income tax expense | 715,107 | 3,442 | 707,073 | 617,405 |
Income tax expense | (4,595) | (46) | (5,911) | (966) |
Net income | 710,512 | 3,396 | 701,162 | 616,439 |
Noncontrolling interests: | ||||
Net (income) loss attributable to noncontrolling interests in consolidated real estate partnerships | (2,525) | 102 | (3,894) | 285 |
Loss from unconsolidated real estate partnerships | 707,987 | 3,498 | 697,268 | 616,724 |
Net income attributable to AIR preferred stockholders | (1,614) | (1,645) | (4,839) | (4,935) |
Net (income) loss attributable to participating securities | (391) | 44 | (484) | (373) |
Net income attributable to AIR common stockholders | $ 705,982 | $ 1,897 | $ 691,945 | $ 611,416 |
Net income attributable to AIR common stockholders per share - basic (in dollars per share) | $ 4.49 | $ 0.01 | $ 4.38 | $ 3.69 |
Net income attributable to AIR common stockholders per share - diluted (in dollars per share) | $ 4.42 | $ 0.01 | $ 4.34 | $ 3.68 |
Weighted average common shares/units outstanding - basic (in shares) | 157,366 | 163,866 | 158,138 | 165,578 |
Weighted average common shares/units outstanding - diluted | 159,937 | 164,112 | 160,458 | 167,529 |
Apartment Income REIT, L.P. | Rental and other property revenues | ||||
REVENUES | ||||
Total revenues | $ 194,244 | $ 198,413 | $ 616,659 | $ 558,686 |
Apartment Income REIT, L.P. | Other revenues | ||||
REVENUES | ||||
Total revenues | $ 3,063 | $ 2,458 | $ 7,018 | $ 7,163 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income | $ 710,512 | $ 3,396 | $ 701,162 | $ 616,439 |
Unrealized (loss) gain on derivative instruments, net | (2,236) | 34,209 | 2,955 | 47,141 |
Reclassification of interest rate derivative (gain) loss to net income (loss) | (14,186) | 731 | (23,704) | 2,720 |
Comprehensive income | 694,090 | 38,336 | 680,413 | 666,300 |
Comprehensive income (loss) attributable to noncontrolling interests | (44,608) | (4,379) | (47,868) | (45,488) |
Comprehensive income attributable to AIR Operating Partnership | 649,482 | 33,957 | 632,545 | 620,812 |
Apartment Income REIT, L.P. | ||||
Net income | 710,512 | 3,396 | 701,162 | 616,439 |
Unrealized (loss) gain on derivative instruments, net | (2,236) | 34,209 | 2,955 | 47,141 |
Reclassification of interest rate derivative (gain) loss to net income (loss) | (14,186) | 731 | (23,704) | 2,720 |
Comprehensive income | 694,090 | 38,336 | 680,413 | 666,300 |
Comprehensive income (loss) attributable to noncontrolling interests | (2,525) | 102 | (3,894) | 285 |
Comprehensive income attributable to AIR Operating Partnership | $ 691,565 | $ 38,438 | $ 676,519 | $ 666,585 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Total AIR Equity | Perpetual Preferred Stock | Common Stock | Additional Paid- in Capital | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Earnings | Noncontrolling Interests in Consolidated Real Estate Partnerships | Common Noncontrolling Interests in AIR Operating Partnership |
Beginning balance (in shares) at Dec. 31, 2021 | 145 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 156,998,367 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 1,939,155 | $ 1,813,025 | $ 2,129 | $ 1,570 | $ 3,763,105 | $ 0 | $ (1,953,779) | $ (70,883) | $ 197,013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Redemption of AIR Operating Partnership units | (7,423) | (7,423) | |||||||
Repurchase of common stock, net (in shares) | (4,107,451) | ||||||||
Repurchase of Common Stock, net | (171,711) | (171,711) | $ (41) | (171,670) | |||||
Amortization of share-based compensation cost | 6,272 | 3,519 | 3,519 | 2,753 | |||||
Effect of changes in ownership of consolidated entities | 0 | (5,404) | (5,404) | 5,404 | |||||
Purchase of noncontrolling interests in consolidated real estate partnerships | (5,409) | (5,529) | (5,529) | 120 | |||||
Contributions from noncontrolling interests in consolidated real estate partnerships | 8,337 | 8,337 | |||||||
Change in accumulated other comprehensive loss | 49,861 | 45,948 | 45,948 | 3,913 | |||||
Net income (loss) | 611,632 | 574,864 | 574,864 | (285) | 37,053 | ||||
Common Stock dividends | (210,361) | (210,361) | (210,361) | ||||||
Distributions to noncontrolling interests | (26,969) | (13,561) | (13,408) | ||||||
Other, net (in shares) | (125) | 102,532 | |||||||
Other, net | (1,342) | (1,171) | $ (129) | $ 1 | (910) | 0 | (133) | 72 | (243) |
Ending balance at Sep. 30, 2022 | 2,192,042 | 2,043,180 | $ 2,000 | $ 1,530 | 3,583,111 | 45,948 | (1,589,409) | (76,200) | 225,062 |
Ending balance (in shares) at Sep. 30, 2022 | 152,993,448 | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 20 | ||||||||
Beginning balance (in shares) at Jun. 30, 2022 | 20 | ||||||||
Beginning balance (in shares) at Jun. 30, 2022 | 154,187,241 | ||||||||
Beginning balance at Jun. 30, 2022 | 2,288,825 | 2,132,449 | $ 2,000 | $ 1,542 | 3,636,906 | 13,750 | (1,521,749) | (70,609) | 226,985 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Redemption of AIR Operating Partnership units | (3,178) | (3,178) | |||||||
Repurchase of common stock, net (in shares) | (1,195,690) | ||||||||
Repurchase of Common Stock, net | (46,711) | (46,711) | $ (12) | (46,699) | |||||
Amortization of share-based compensation cost | 1,821 | 878 | 878 | 943 | |||||
Effect of changes in ownership of consolidated entities | 0 | (2,140) | (2,140) | 2,140 | |||||
Purchase of noncontrolling interests in consolidated real estate partnerships | (5,409) | (5,529) | (5,529) | 120 | |||||
Contributions from noncontrolling interests in consolidated real estate partnerships | 529 | 529 | |||||||
Change in accumulated other comprehensive loss | 34,940 | 32,198 | 32,198 | 2,742 | |||||
Net income (loss) | 1,794 | 1,759 | 1,759 | (102) | 137 | ||||
Common Stock dividends | (69,377) | (69,377) | (69,377) | ||||||
Distributions to noncontrolling interests | (10,698) | (6,226) | (4,472) | ||||||
Other, net (in shares) | 1,897 | ||||||||
Other, net | (494) | (347) | (305) | (42) | 88 | (235) | |||
Ending balance at Sep. 30, 2022 | $ 2,192,042 | 2,043,180 | $ 2,000 | $ 1,530 | 3,583,111 | 45,948 | (1,589,409) | (76,200) | 225,062 |
Ending balance (in shares) at Sep. 30, 2022 | 152,993,448 | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 20 | ||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 20 | ||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 149,086,548 | 149,086,548 | |||||||
Beginning balance at Dec. 31, 2022 | $ 2,319,306 | 2,156,417 | $ 2,000 | $ 1,491 | 3,436,635 | 43,562 | (1,327,271) | (78,785) | 241,674 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of AIR Operating Partnership units | 22,383 | 22,383 | |||||||
Redemption of AIR Operating Partnership units | (17,559) | (17,559) | |||||||
Repurchase of common stock, net (in shares) | (2,249,800) | ||||||||
Repurchase of Common Stock, net | (77,782) | (77,782) | $ (22) | (77,760) | |||||
Amortization of share-based compensation cost | 7,072 | 3,607 | 3,607 | 3,465 | |||||
Effect of changes in ownership of consolidated entities | 1,119 | (7,840) | (7,840) | (1,397) | 10,356 | ||||
Purchase of noncontrolling interests in consolidated real estate partnerships | (1,517) | 479 | 479 | (1,996) | |||||
Contributions from noncontrolling interests in consolidated real estate partnerships | 5,235 | 5,235 | |||||||
Change in accumulated other comprehensive loss | (20,749) | (18,768) | (18,768) | (1,981) | |||||
Net income (loss) | 696,452 | 651,313 | 651,313 | 3,894 | 41,245 | ||||
Common Stock dividends | (200,142) | (200,142) | (200,142) | ||||||
Distributions to noncontrolling interests | (23,120) | (9,908) | (13,212) | ||||||
Other, net (in shares) | 136,307 | ||||||||
Other, net | 30 | 180 | $ 1 | 195 | 0 | (16) | (153) | 3 | |
Ending balance at Sep. 30, 2023 | $ 2,710,728 | 2,507,464 | $ 2,000 | $ 1,470 | 3,355,316 | 24,794 | (876,116) | (83,110) | 286,374 |
Ending balance (in shares) at Sep. 30, 2023 | 146,973,055 | 146,973,055 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 20 | ||||||||
Beginning balance (in shares) at Jun. 30, 2023 | 20 | ||||||||
Beginning balance (in shares) at Jun. 30, 2023 | 149,223,526 | ||||||||
Beginning balance at Jun. 30, 2023 | $ 2,168,890 | 1,999,465 | $ 2,000 | $ 1,492 | 3,430,731 | 39,343 | (1,474,101) | (80,087) | 249,512 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Redemption of AIR Operating Partnership units | $ (1,745) | (1,745) | |||||||
Repurchase of common stock, net (in shares) | (2,200,000) | (2,249,800) | |||||||
Repurchase of Common Stock, net | $ (77,782) | (77,782) | $ (22) | (77,760) | |||||
Amortization of share-based compensation cost | 1,971 | 816 | 816 | 1,155 | |||||
Effect of changes in ownership of consolidated entities | 1,119 | 1,446 | 1,446 | (1,397) | 1,070 | ||||
Contributions from noncontrolling interests in consolidated real estate partnerships | 718 | 718 | |||||||
Change in accumulated other comprehensive loss | (16,422) | (14,549) | (14,549) | (1,873) | |||||
Net income (loss) | 708,942 | 664,031 | 664,031 | 2,525 | 42,386 | ||||
Common Stock dividends | (66,002) | (66,002) | (66,002) | ||||||
Distributions to noncontrolling interests | (8,985) | (4,851) | (4,134) | ||||||
Other, net (in shares) | (671) | ||||||||
Other, net | 24 | 39 | 83 | (44) | (18) | 3 | |||
Ending balance at Sep. 30, 2023 | $ 2,710,728 | $ 2,507,464 | $ 2,000 | $ 1,470 | $ 3,355,316 | $ 24,794 | $ (876,116) | $ (83,110) | $ 286,374 |
Ending balance (in shares) at Sep. 30, 2023 | 146,973,055 | 146,973,055 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 20 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 701,162 | $ 616,439 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 263,949 | 253,650 |
Gain on dispositions and impairments of real estate | (675,534) | (587,609) |
Loss on extinguishment of debt | 2,008 | 23,636 |
Income tax expense | 5,911 | 966 |
Other, net | 4,308 | 6,890 |
Net changes in operating assets and operating liabilities | (55) | 37,484 |
Net cash provided by operating activities | 301,749 | 351,456 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of real estate | (339,696) | (858,815) |
Capital expenditures | (140,855) | (151,115) |
Contribution to unconsolidated joint ventures | (51,836) | 0 |
Proceeds from dispositions of real estate | 52,066 | 759,227 |
Distributions from unconsolidated joint ventures | 207,137 | 0 |
Proceeds from repayment of note receivable | 0 | 534,127 |
Other investing activities, net | 3,194 | (30,500) |
Net cash (used in) provided by investing activities | (269,990) | 252,924 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal repayments on non-recourse property debt | (111,699) | (361,056) |
Proceeds from non-recourse property debt | 1,005,920 | 0 |
Repayment of term loan | (325,000) | (350,000) |
Net (repayments of) borrowings on revolving credit facility | (436,250) | 176,205 |
Proceeds from the issuance of unsecured notes payable | 0 | 400,000 |
Repurchases of common partnership units held by General Partner and Special Limited Partner | (77,782) | (171,711) |
Payment of dividends to holders of Common Stock | (200,137) | (210,377) |
Payment of distributions to noncontrolling interests | (23,524) | (18,262) |
Other financing activities, net | (30,522) | (47,294) |
Net cash used in financing activities | (198,994) | (582,495) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (167,235) | 21,885 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 301,405 | 92,761 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | 134,170 | 114,646 |
Apartment Income REIT, L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | 701,162 | 616,439 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 263,949 | 253,650 |
Gain on dispositions and impairments of real estate | (675,534) | (587,609) |
Loss on extinguishment of debt | 2,008 | 23,636 |
Income tax expense | 5,911 | 966 |
Other, net | 4,308 | 6,890 |
Net changes in operating assets and operating liabilities | (55) | 37,484 |
Net cash provided by operating activities | 301,749 | 351,456 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of real estate | (339,696) | (858,815) |
Capital expenditures | (140,855) | (151,115) |
Contribution to unconsolidated joint ventures | (51,836) | 0 |
Proceeds from dispositions of real estate | 52,066 | 759,227 |
Distributions from unconsolidated joint ventures | 207,137 | 0 |
Proceeds from repayment of note receivable | 0 | 534,127 |
Other investing activities, net | 3,194 | (30,500) |
Net cash (used in) provided by investing activities | (269,990) | 252,924 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal repayments on non-recourse property debt | (111,699) | (361,056) |
Proceeds from non-recourse property debt | 1,005,920 | 0 |
Repayment of term loan | (325,000) | (350,000) |
Net (repayments of) borrowings on revolving credit facility | (436,250) | 176,205 |
Proceeds from the issuance of unsecured notes payable | 0 | 400,000 |
Repurchases of common partnership units held by General Partner and Special Limited Partner | (77,782) | (171,711) |
Payment of distributions to General Partner and Special Limited Partner | (200,137) | (210,377) |
Payment of distributions to Limited Partners | (13,591) | (13,439) |
Payment of distributions to noncontrolling interests | (9,933) | (4,823) |
Other financing activities, net | (30,522) | (47,294) |
Net cash used in financing activities | (198,994) | (582,495) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (167,235) | 21,885 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 301,405 | 92,761 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ 134,170 | $ 114,646 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Partners' Capital - USD ($) $ in Thousands | Total | Apartment Income REIT, L.P. | Apartment Income REIT, L.P. Preferred Units | Apartment Income REIT, L.P. General Partner and Special Limited Partner | Apartment Income REIT, L.P. Limited Partners | Apartment Income REIT, L.P. Partners' Capital Attributable to the AIR Operating Partnership | Apartment Income REIT, L.P. Noncontrolling Interests in Consolidated Real Estate Partnerships |
Beginning balance 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] | |||||||
Redemption of common partnership units | (7,423) | (7,423) | (7,423) | ||||
Repurchase of common partnership units | (171,711) | (171,711) | (171,711) | ||||
Amortization of share-based compensation cost | 6,272 | 3,519 | 2,753 | 6,272 | |||
Effect of changes in ownership of consolidated entities | $ 0 | (5,404) | 5,404 | ||||
Purchase of noncontrolling interests in consolidated real estate partnerships | (5,409) | (5,529) | (5,529) | 120 | |||
Contributions from noncontrolling interests in consolidated real estate partnerships | 8,337 | 8,337 | 8,337 | ||||
Change in accumulated other comprehensive 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 noncontrolling interests | (223,769) | (210,361) | (13,408) | (223,769) | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (26,969) | (13,561) | (13,561) | ||||
Other, net | (1,342) | (129) | (1,042) | (243) | (1,414) | 72 | |
Ending balance at Sep. 30, 2022 | 2,192,042 | 2,000 | 2,041,180 | 225,062 | 2,268,242 | (76,200) | |
Beginning balance 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] | |||||||
Redemption of common partnership units | (3,178) | (3,178) | (3,178) | ||||
Repurchase of common partnership units | (46,711) | (46,711) | (46,711) | ||||
Amortization of share-based compensation cost | 1,821 | 878 | 943 | 1,821 | |||
Effect of changes in ownership of consolidated entities | 0 | (2,140) | 2,140 | ||||
Contributions from noncontrolling interests in consolidated real estate partnerships | 529 | 529 | 529 | ||||
Change in accumulated other comprehensive 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 noncontrolling interests | (73,849) | (69,377) | (4,472) | (73,849) | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (10,698) | (6,226) | 0 | 0 | (6,226) | ||
Other, net | (494) | (347) | (235) | (582) | 88 | ||
Ending balance at Sep. 30, 2022 | 2,192,042 | 2,000 | 2,041,180 | 225,062 | 2,268,242 | (76,200) | |
Beginning balance at Dec. 31, 2022 | 2,319,306 | 2,000 | 2,154,417 | 241,674 | 2,398,091 | (78,785) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Issuance of AIR Operating Partnership units | 22,383 | 22,383 | 22,383 | 22,383 | |||
Redemption of common partnership units | (17,559) | (17,559) | (17,559) | ||||
Repurchase of common partnership units | (77,782) | (77,782) | 0 | (77,782) | |||
Amortization of share-based compensation cost | 7,072 | 3,607 | 3,465 | 7,072 | |||
Effect of changes in ownership of consolidated entities | 1,119 | (7,840) | 10,356 | 2,516 | (1,397) | ||
Purchase of noncontrolling interests in consolidated real estate partnerships | (3) | (1,517) | 479 | 479 | (1,996) | ||
Contributions from noncontrolling interests in consolidated real estate partnerships | 5,235 | 5,235 | 5,235 | ||||
Change in accumulated other comprehensive loss | (20,749) | (20,749) | (18,768) | (1,981) | (20,749) | ||
Net income (loss) | 696,452 | 696,452 | 651,313 | 41,245 | 692,558 | 3,894 | |
Distributions to noncontrolling interests | (213,354) | (200,142) | (13,212) | (213,354) | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (23,120) | (9,908) | (9,908) | ||||
Other, net | 30 | 0 | 180 | 3 | 183 | (153) | |
Ending balance at Sep. 30, 2023 | 2,710,728 | 2,000 | 2,505,464 | 286,374 | 2,793,838 | (83,110) | |
Beginning balance at Jun. 30, 2023 | 2,168,890 | 2,000 | 1,997,465 | 249,512 | 2,248,977 | (80,087) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Redemption of common partnership units | (1,745) | (1,745) | (1,745) | ||||
Repurchase of common partnership units | (77,782) | (77,782) | (77,782) | ||||
Amortization of share-based compensation cost | 1,971 | 816 | 1,155 | 1,971 | |||
Effect of changes in ownership of consolidated entities | 1,119 | 1,446 | 1,070 | 2,516 | (1,397) | ||
Contributions from noncontrolling interests in consolidated real estate partnerships | 718 | 718 | 718 | ||||
Change in accumulated other comprehensive loss | (16,422) | (16,422) | (14,549) | (1,873) | (16,422) | ||
Net income (loss) | 708,942 | 708,942 | 664,031 | 42,386 | 706,417 | 2,525 | |
Distributions to noncontrolling interests | (70,136) | (66,002) | (4,134) | (70,136) | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ (8,985) | (4,851) | (4,851) | ||||
Other, net | 24 | 39 | 3 | 42 | (18) | ||
Ending balance at Sep. 30, 2023 | $ 2,710,728 | $ 2,000 | $ 2,505,464 | $ 286,374 | $ 2,793,838 | $ (83,110) |
Basis of Presentation and Organ
Basis of Presentation and Organization | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | 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, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The condensed consolidated balance sheets of AIR, the AIR Operating Partnership, and their consolidated subsidiaries as of December 31, 2022, 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, 2022. 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 balance sheets, statements of operations, and statements of cash flows have been combined or reclassified 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 (loss), cash flows, assets and liabilities, equity or partners’ capital previously reported. Organization and Business AIR is a self-administered and self-managed REIT. AIR owns, through its wholly-owned subsidiaries, the general partner interest and special limited partner interest in AIR Operating Partnership. 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 stabilized apartment communities, diversified by both geography and price point, in 10 states and the District of Columbia. As of September 30, 2023, our portfolio included 75 apartment communities with 26,623 apartment homes, in which we held an average ownership of approximately 81%. 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, 2023, after elimination of units held by consolidated subsidiaries, the AIR Operating Partnership had 156,840,617 common OP Units outstanding. As of September 30, 2023, AIR owned 146,973,055 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 91.2% legal interest in the AIR Operating Partnership and a 93.6% economic interest. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation We consolidate variable interest entities (“VIEs”), 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. As of September 30, 2023 and December 31, 2022, AIR consolidated five and seven VIEs, respectively, including the AIR Operating Partnership. Redeemable Preferred OP Units The AIR Operating Partnership has various classes of preferred OP Units. Each class of preferred OP Units is currently redeemable at the holders’ option. The AIR Operating Partnership, at its sole discretion, may settle such redemption requests in cash or cause AIR to issue shares of its Common Stock with a value equal to the redemption price. 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’ redemption value (in thousands): Balance at January 1, 2023 $ 77,143 Preferred distributions (4,710) Redemption of preferred units and other (3) Net income allocated to preferred units 4,710 Balance at September 30, 2023 $ 77,140 The AIR Operating Partnership has outstanding various classes of redeemable preferred OP Units. As of September 30, 2023 and December 31, 2022, the AIR Operating Partnership had 2,846,524 and 2,846,574 redeemable preferred OP Units issued and outstanding, respectively. Distributions per annum range from 1.92% to 8.75% per class and $0.48 to $8.00 per unit, respectively. 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 condensed consolidated financial statements and accompanying notes thereto. Actual results could differ from those estimates. |
Significant Transactions
Significant Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Significant Transactions [Abstract] | |
Significant Transactions | Significant Transactions Apartment Community Acquisitions During the three months ended September 30, 2023, we acquired one apartment community located in Raleigh, North Carolina and one apartment community located in Durham, North Carolina. During the nine months ended September 30, 2023, we acquired one additional apartment community located in South Florida with 495 apartment homes and 29,000 square feet of commercial space. Summarized information regarding these acquisitions is set forth in the table below (dollars in thousands): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Number of apartment communities 2 3 Number of apartment homes 620 1,115 Purchase price $ 154,500 $ 452,500 Capitalized transaction costs 1,270 6,739 Total consideration (1) $ 155,770 $ 459,239 Land $ 19,226 $ 118,564 Building and improvements 130,937 318,364 Intangible assets (2) 5,768 17,845 Mark-to-market on debt assumed — 7,370 Below-market lease liabilities (2) (161) (2,904) Total consideration (1) $ 155,770 $ 459,239 (1) Total consideration for the apartment community acquisition in South Florida includes $101.2 million of debt assumed and the issuance of $22.4 million in common OP Units. (2) Intangible assets and below-market lease liabilities for the South Florida apartment community acquisition have a weighted-average term of 1.4 years and 0.5 years, respectively. Intangible assets and below-market lease liabilities for the North Carolina apartment community acquisitions have a weighted-average term of 0.5 years. Apartment Community Dispositions During the three months ended September 30, 2023, we sold one apartment community with 195 apartment homes included in our Other Real Estate segment for net proceeds of $19.9 million which approximates its carrying value. During the nine months ended September 30, 2023, we sold three apartment communities with 257 apartment homes included in our Other Real Estate segment for net proceeds of $52.1 million which approximates their carrying value. During the three months ended September 30, 2022, we did not sell any apartment communities. During the nine months ended September 30, 2022, we sold 12 apartment communities with 2,050 homes, 10 of which were included in our Same Store segment and two included in our Other Real Estate segment, for a gain on disposition of $587.6 million. At the end of each reporting period, we evaluate whether any communities meet the criteria to be classified as held for sale. As of September 30, 2023, no communities were classified as held for sale. Impairment Impairments are rare; however, in exiting the New York market, we impaired three properties in 2023 as further described below. Real estate and other long-lived assets to be held and used are individually evaluated for impairment when conditions exist that may indicate the carrying amount of a long-lived asset may not be recoverable. Impairment indicators include significant fluctuations in rental and other property revenues less property operating expenses, occupancy changes, significant near-term lease expirations, current and historical cash flow losses, rental rates, and if applicable, a comparison of an asset’s carrying value to its estimated fair value. Upon determination that an impairment has occurred, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the community. During the three months ended September 30, 2023, we did not recognize any impairment losses. During the nine months ended September 30, 2023, we evaluated the expected hold period of three apartment communities in our Other Real Estate reporting segment. Given management's assessment of the likelihood of the sale of these assets, which occurred during the nine months ended September 30, 2023, we reduced the carrying value of three properties to their estimated fair value and recognized a non-cash impairment loss on real estate of $23.6 million. As of September 30, 2023, the three impaired properties have been sold. During the three and nine months ended September 30, 2022, we did not recognize any impairment losses. Share Repurchases During the three months ended September 30, 2023, AIR repurchased 2.2 million shares for $77.8 million, at an average price of $34.57 per share. As of September 30, 2023, we are authorized by the AIR Board of Directors to repurchase an additional $105.5 million of shares. We consider share buybacks as part of a balanced investment program . Joint Venture Transactions In the third quarter of 2023, we formed an unconsolidated joint venture with a global institutional investor (the "Core JV") and in the second quarter of 2023, we formed an unconsolidated joint venture (the "Value-Add JV") with a global asset manager. Please see Note 6 fo |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases Tenant Lessor Arrangements The majority of lease payments we receive from our residents 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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Fixed lease income $ 179,069 $ 184,509 $ 572,123 $ 522,074 Variable lease income 14,502 13,141 43,043 35,165 Total lease income $ 193,571 $ 197,650 $ 615,166 $ 557,239 Generally, our residential leases do not provide extension options and, as of September 30, 2023, have an average remaining term of 10.8 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. As of September 30, 2023, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands): 2023 (remaining) $ 164,948 2024 379,399 2025 69,870 2026 11,740 2027 10,218 Thereafter 36,463 Total $ 672,638 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our total indebtedness (in thousands): September 30, 2023 December 31, 2022 Secured debt: Fixed-rate property debt due May 2025 to January 2055 (1) $ 2,244,776 $ 1,906,151 Variable-rate property debt — 88,500 Total non-recourse property debt 2,244,776 1,994,651 Debt issuance costs, net of accumulated amortization (13,538) (9,221) Total non-recourse property debt, net $ 2,231,238 $ 1,985,430 Unsecured debt: Term loans due December 2024 to April 2026 (2) $ 475,000 $ 800,000 Revolving credit facility borrowings due April 2025 (3) 25,750 462,000 4.58% Notes payable due June 2027 100,000 100,000 4.77% Notes payable due June 2029 100,000 100,000 4.84% Notes payable due June 2032 200,000 200,000 Total unsecured debt 900,750 1,662,000 Debt issuance costs, net of accumulated amortization (3,754) (5,801) Total unsecured debt, net $ 896,996 $ 1,656,199 Total indebtedness $ 3,128,234 $ 3,641,629 (1) In the first quarter of 2023, AIR borrowed $320 million using 10-year fixed rate financing, bearing interest at 4.9%. Proceeds were used to refinance a floating rate loan and reduce borrowings by $230 million on our revolving credit facility. The stated rates on our fixed-rate property debt are between 2.7% to 5.7%. (2) The term loans bear interest at a one-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, 2023, the weighted-average interest rate for our term loans before consideration of in place interest rate swaps was 6.4%. As of September 30, 2023, $350 million of our term loans are fixed via interest rate swaps at a weighted-average interest rate of 4.3%. The blended weighted-average interest rate for our $475 million term loans, after consideration of in place interest rate swaps, is 4.9%. The term loans mature on the following schedule: $125 million matures on December 15, 2024, with a one-year extension option; $150 million matures on December 15, 2025; and $200 million matures on April 14, 2026. As of September 30, 2023, the weighted-average remaining term of the term loans was 2.3 years. (3) As of September 30, 2023, we had capacity to borrow up to $970.0 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a one-month Term SOFR plus 0.89%, based on our current credit rating, and a SOFR adjustment of 10-basis points. As of September 30, 2023, the weighted-average interest rate for our revolving credit facility was 6.3%. During the three months ended September 30, 2023, AIR refinanced our $325 million of term loans with fixed rate property debt to lock in rates for debt with longer maturities. The amount included full repayment of $150 million of our term loans with a maturity of December 15, 2023 and partial repayment of $175 million of term loans with a maturity of December 15, 2024. In conjunction with the prepayment, AIR accelerated recognition of $0.8 million of associated debt issuance costs, which is included in interest expense in our condensed consolidated statements of operations. In advance of a joint venture closing during the period, AIR placed $611.4 million in new fixed-rate property debt related to nine properties, which was subsequently contributed to the Core JV. Additionally, one property with $33.0 million in fixed-rate property debt was also contributed to the Core JV, for a total of $644.4 million of debt contributed. As the Core JV is unconsolidated, this fixed-rate property debt is excluded from our condensed consolidated balance sheet as of September 30, 2023. In April 2023, we established a secured credit facility that provides for up to $1 billion of committed property level financing, on an as needed basis. The facility has minimal upfront costs, a 15-year term, and provides AIR the opportunity to place up to 10-year non-recourse property debt financing. Pricing can be fixed rate or variable rate at AIR's choice and is based on the Fannie Mae grid. As of September 30, 2023, and after consideration of the secured credit facility, our share of cash and cash equivalents, and our share of restricted cash, total liquidity is approximately $2.1 billion. |
Investment in Joint Ventures
Investment in Joint Ventures | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Joint Ventures | Investment in Joint Ventures Joint Venture Transactions In the third quarter of 2023, we formed the Core JV by contributing 10 properties included in our Same Store reporting segment located in Philadelphia, Washington, D.C. area, Denver area, Oceanside, and Kendall. The Core JV, in which we retain a 53% interest, closed with respect to (i) eight of the properties in July 2023, (ii) one property in August 2023, and (iii) one property in September 2023. The 10 properties, with a total fair value of $1.1 billion and a carrying value of $373.3 million, were contributed to the Core JV subject to $644.4 million of non-recourse property debt, which represents a non-cash financing activity during the period. In advance of the joint venture closing, AIR placed $611.4 million in new non-recourse property debt, which was subsequently contributed to the joint venture. As a result of the transaction, AIR received $201.9 million in cash and recognized a gain of $698.8 million, including the measurement of the fair value of our interest in the Core JV during the three months ended September 30, 2023. AIR will earn various fees for providing property management, construction, and corporate services to the joint venture. Additionally, during the third quarter of 2023, AIR and our joint venture partner increased the investment in the Core JV to fund the joint venture's acquisition of an eleventh property, a 456-unit property located in Bethesda, Maryland. The Core JV funded the acquisition with $155.0 million in new debt, and capital contributions to the joint venture of $95.0 million, for a purchase price of $250.0 million. In addition, during the second quarter of 2023, we formed the Value-Add JV by contributing the Huntington Gateway property, a 443-unit property located in Virginia. AIR is the general partner and retains legal ownership of 30%, and AIR will receive 50% of the net cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture. We recognized a gain of $0.5 million during the nine months ended September 30, 2023 in connection with this transaction. Unconsolidated Joint Ventures As of September 30, 2023, AIR has equity investments in three significant unconsolidated joint ventures: the Core JV, the Value-Add JV, and the Virginia JV (collectively, the "Joint Venture Entities"). We account for these joint ventures utilizing the equity method of accounting and our ownership interests meet the definition of a VIE. However, we are not the primary beneficiary and do not consolidate these entities. Virginia JV Value-Add JV (1) Core JV Initial formation date October 2021 June 2023 July 2023 AIR Ownership 20% 30% 53% Outside Entities Ownership 80% 70% 47% Number of Apartment Communities 3 1 11 Apartment Units 1,748 443 3,549 (1) A global asset manager acquired a 70% legal ownership in the Huntington Gateway property, but AIR will receive 50% of the net cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture. The carrying value of AIR's investment in each joint venture is included in investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets. AIR's exposure to the obligations of the VIEs is limited to the carrying value of the limited partnership interests and AIR's interest of the joint ventures' guarantor non-recourse liabilities. The following table summarizes certain relevant information with respect to our investments in unconsolidated joint ventures (in thousands): September 30, 2023 Virginia JV Value-Add JV Core JV Total Third-Party Debt $ 395,000 $ 94,105 $ 799,164 AIR's Investment In Balance (1) $ 18,198 $ 29,341 $ 272,957 (1) AIR's investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets includes $31.6 million related to two immaterial unconsolidated investments and certain basis differences. December 31, 2022 Virginia JV Value-Add JV Core JV Total Third-Party Debt $ 395,000 — — AIR's Investment In Balance (1) $ 20,660 — — (1) AIR's investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets includes $21.2 million related to two immaterial unconsolidated investments. The Company recognizes earnings or losses from our investments in unconsolidated joint ventures consisting of our proportionate share of the net earnings or losses of the joint ventures. In addition, we earn various fees for providing property management, construction, and corporate services to the Joint Venture Entities. The table below presents earnings or losses attributable to our investments in unconsolidated joint ventures, which is included in loss from unconsolidated real estate partnerships in our combined condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Virginia JV $ (1,113) $ (87) $ (3,004) $ (2,974) Core JV (7,930) — (7,930) — Value-Add JV (1,347) — (1,333) — Total $ (10,390) $ (87) $ (12,267) $ (2,974) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 condensed 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. |
Earnings and Dividends per Shar
Earnings and Dividends per Share and per Unit | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings and Dividends per Share and per Unit | 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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Earnings per share Numerator: Basic net income attributable to AIR common stockholders $ 663,596 $ 1,760 $ 650,700 $ 574,363 Effect of dilutive instruments 1,570 — 4,710 4,807 Dilutive net income attributable to AIR common stockholders $ 665,166 $ 1,760 $ 655,410 $ 579,170 Denominator – shares: Basic weighted-average common shares outstanding 147,474 153,811 148,372 155,488 Dilutive common share equivalents outstanding 2,571 246 2,320 1,952 Dilutive weighted-average common shares outstanding 150,045 154,057 150,692 157,440 Earnings per share – basic $ 4.50 $ 0.01 $ 4.39 $ 3.69 Earnings per share – diluted $ 4.43 $ 0.01 $ 4.35 $ 3.68 Earnings per unit Numerator: Basic net income attributable to the AIR Operating Partnership’s common unitholders $ 705,982 $ 1,897 $ 691,945 $ 611,416 Effect of dilutive instruments 1,570 — 4,710 4,935 Dilutive net income attributable to the AIR Operating Partnership’s common unitholders $ 707,552 $ 1,897 $ 696,655 $ 616,351 Denominator – units: Basic weighted-average common units outstanding 157,366 163,866 158,138 165,578 Dilutive common unit equivalents outstanding 2,571 246 2,320 1,951 Dilutive weighted-average common units outstanding 159,937 164,112 160,458 167,529 Earnings per unit – basic $ 4.49 $ 0.01 $ 4.38 $ 3.69 Earnings per unit – diluted $ 4.42 $ 0.01 $ 4.34 $ 3.68 For the three and nine months ended September 30, 2023 and 2022, dividends and distributions paid per share of Common Stock and per common unit were $0.45 and $1.35, respectively. The number of common share equivalent securities excluded from the diluted earnings per share calculation was approximately 4.0 million and 3.4 million for the three and nine months ended September 30, 2023, respectively. The number of common share equivalent securities excluded from the diluted earnings per share calculation was approximately 1.9 million for the three months ended September 30, 2022. There were no anti-dilutive securities for the nine months |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We estimate the fair value of certain assets and liabilities using pricing models that rely on observable market information, including contractual terms, market prices, and interest rate yield curves. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value, as described below: • Level 1 – Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2 – Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. Recurring Fair Value Measurements The following table summarizes investments measured at fair value on a recurring basis, which are presented in other assets, net, and accrued liabilities and other in our condensed consolidated balance sheets (in thousands): As of September 30, 2023 As of December 31, 2022 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Interest rate option (1) $ — $ — $ — $ — $ 53,481 $ — $ 53,481 $ — Interest rate swaps - pay-fixed, receive floating $ 29,898 $ — $ 29,898 $ — $ 32,222 $ — $ 32,222 $ — Interest rate swaps - pay-floating, receive fixed $ (3,035) $ — $ (3,035) $ — $ — $ — $ — $ — Interest rate swaps - forward starting $ 3,333 $ — $ 3,333 $ — $ — $ — $ — $ — Treasury rate locks $ — $ — $ — $ — $ 319 $ — $ 319 $ — (1) During the second quarter of 2023, the interest rate swap option asset and offsetting liability associated with the Parkmerced mezzanine investment was settled, resulting in equal decreases in other assets, net and accrued liabilities and other in the condensed consolidated balance sheets. 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, 2023 and December 31, 2022, due to their relatively short-term nature and high probability of realization. The carrying value of our 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, 2023 and December 31, 2022, as they bear interest at floating rates which approximate market rates. We classify the fair value of our non-recourse property debt, unsecured notes payable, seller financing notes receivable, and preferred equity investment within Level 2 of the GAAP fair value hierarchy, as summarized in the following table (in thousands): As of September 30, 2023 As of December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Non-recourse property debt $ 2,244,776 $ 1,938,885 $ 1,994,651 $ 1,753,222 Unsecured notes payable $ 400,000 $ 363,609 $ 400,000 $ 371,368 Seller financing note receivable, net (1) $ 32,246 $ 30,723 $ 31,611 $ 32,286 Preferred equity investment (2) $ 22,398 $ 22,486 $ — $ — (1) During the year ended December 31, 2022, we provided $40.0 million of seller financing as partial consideration for the sale of our New England portfolio. The contractual interest rate on the note is 4.5%. The difference between the stated rate and the market interest rate as of |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Risk Management Objective of Using Derivatives Our objectives in using interest rate derivatives are to add predictability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps and treasury locks as part of our interest rate management strategy. Interest rate swaps primarily involve the receipt of variable-rate and fixed-rate amounts from a counterparty in exchange for us making fixed-rate or variable-rate payments over the life of the agreements without exchange of the underlying notional amounts. Changes in fair value of derivatives designated as cash flow hedges are recognized in accumulated other comprehensive income and subsequently reclassified into earnings as an increase or decrease to interest expense. During the three and nine months ended September 30, 2023, we reclassified gains of $14.2 million and $23.7 million out of accumulated other comprehensive income into interest expense, respectively, inclusive of the Company's acceleration of the reclassification of amounts in accumulated other comprehensive income given that certain hedged forecasted transactions are not expected to occur. During the third quarter of 2023, the Company accelerated a gain of $11.5 million into earnings due to the early payoff of the hedged term loans previously designated. During the three and nine months ended September 30, 2022, we reclassified losses of $0.7 million and $2.7 million out of accumulated other comprehensive income, net into interest expense, respectively. As of September 30, 2023, we estimate that during the next 12 months, we will reclassify into earnings approximately $7.4 million of the unrealized gain in accumulated other comprehensive income. Changes in fair value of derivatives not designated in a hedge relationship, or economic hedges, are recognized in gain on derivative instruments, net, in our condensed consolidated statements of operations once realized. During the three and nine months ended September 30, 2023, we recorded gains of $14.1 million and $23.3 million, respectively. During the three and nine months ended September 30, 2022, no amounts were recognized related to derivatives not designated in a hedge relationship. During the second quarter of 2023, we de-designated $830 million of notional value pay-fixed, receive-floating interest rate swaps. As a result, the accumulated unrealized gains at time of de-designation of $29.5 million was expected to be reclassified into earnings over the remaining term of the forecasted transactions. During the three months ended September 30, 2023, $2.6 million of this balance was reclassified out of accumulated other comprehensive income into interest expense, and $11.5 million was accelerated into gain on derivative instruments, net, as described above. The remaining balance of $15.4 million is included within accumulated other comprehensive income as of September 30, 2023 and will be reclassified into earnings over the remaining term of the forecasted transaction. During the three months ended September 30, 2023, we terminated six interest rate swap positions not designated as hedging instruments. Three of the terminated instruments were pay-floating, receive-fixed interest rate swaps with a notional value of $230 million, and three were offsetting pay-fixed, receive-floating interest rate swaps with a notional value of $230 million. Upon termination, AIR received $11.1 million in cash. As of September 30, 2023, AIR had a notional value of $600 million of pay-fixed, receive-floating interest rate swaps that are not designated as hedging instruments, and a notional value of $50 million of forward starting interest rate swaps that are not designated as hedging instruments. These derivative instruments are partially offset by a notional value of $250 million of pay-floating, receive-fixed interest rate swaps that are not designated as hedging instruments. Accordingly, the changes in the fair value of these derivatives are recognized in gain on derivative instruments, net, in our condensed consolidated statements of operations. As a result of the $250 million of pay-floating, receive-fixed interest rate swaps that are not designated as hedging instruments, we expect to receive monthly fixed interest income representing the spread between the offsetting pay-fixed and receive-fixed legs of our interest rate swap positions over a weighted-average term of 2.6 years. Subsequent to September 30, 2023, AIR entered into a notional value $125 million pay-fixed, receive-floating interest rate swap, which economically hedges the remaining $125 million of variable-rate term loans, which results in the $475 million in term loans having an effective interest rate of 4.3%. The following table summarizes our derivative financial instruments (dollars in thousands): As of September 30, 2023 Number of Aggregate Notional Derivative Assets Derivative Liabilities Instruments Amount Fair Value Derivatives not designated as hedging instruments: Interest rate swap, floating to fixed 7 $ 600,000 $ 29,898 $ — Interest rate swap, fixed to floating 3 $ 250,000 $ — $ (3,035) Interest rate swap, forward starting 1 $ 50,000 $ 3,333 $ — As of December 31, 2022 Number of Aggregate Notional Derivative Assets Derivative Liabilities Instruments Amount Fair Value Derivatives designated as hedging instruments: Treasury rate locks 1 $ 100,000 $ 319 $ — Interest rate swaps, floating to fixed 10 $ 830,000 $ 32,222 $ — |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 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 those of the AIR Operating Partnership. The AIR Operating Partnership consolidates (i) three 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, 2023 (1) December 31, 2022 VIEs with interests in apartment communities 3 5 Apartment communities owned by VIEs 14 16 Apartment homes in communities owned by VIEs 4,866 5,369 (1) During the nine months ended September 30, 2023, the number of our VIEs with interests in apartment communities decreased due to our Core JV partner's acquisition of an indirect 47% interest through the Core JV in one consolidated limited partnership with 175 apartment homes, and our purchase of the remaining non-controlling interest in a consolidated limited partnership with 328 apartment homes, which was subsequently contributed to the Core JV during the third quarter. 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, 2023 December 31, 2022 ASSETS: Net real estate $ 1,024,555 $ 1,066,482 Cash and cash equivalents $ 42,133 $ 54,319 Restricted cash $ 1,970 $ 2,378 Other assets, net $ 21,216 $ 20,944 LIABILITIES: Non-recourse property debt, net $ 1,200,279 $ 1,212,065 Accrued liabilities and other $ 40,007 $ 35,365 Unconsolidated Entities 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, 2023 and December 31, 2022, the investment balance of $158.3 million and $158.7 million, respectively, is included in other assets, net, in our condensed consolidated balance sheets. Subsequent to the December 2020 separation, all risks and rewards of ownership are retained by the third party; 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. Please see Note 6 fo r further discussion regarding our unconsolidated joint ventures. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | 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 have reached a stabilized level of operations. Our Other Real Estate segment includes four properties acquired in 2022, four properties previously leased to Aimco, and four properties acquired in 2023. 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, 2023, our Same Store segment included 63 apartment communities with 22,794 apartment homes and our Other Real Estate segment included 12 apartment communities with 3,829 apartment homes. The following tables present the total revenues, property operating expenses, proportionate property net operating income (loss), and income (loss) before income tax expense of our segments on a proportionate basis, excluding amounts related to communities sold. 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, 2023 (in thousands): Same Other Proportionate Corporate and Consolidated Three months ended September 30, 2023: Total revenues $ 151,619 $ 29,543 $ 11,981 $ 4,164 $ 197,307 Property operating expenses 40,353 8,158 9,076 489 58,076 Other operating expenses not allocated to segments (3) — — — 100,695 100,695 Total operating expenses 40,353 8,158 9,076 101,184 158,771 Proportionate property net operating income (loss) 111,266 21,385 2,905 (97,020) 38,536 Other items included in income before income tax expense (4) — — — 676,571 676,571 Income before income tax expense $ 111,266 $ 21,385 $ 2,905 $ 579,551 $ 715,107 Same Other Proportionate Corporate and Consolidated Nine months ended September 30, 2023: Total revenues $ 445,881 $ 86,104 $ 80,124 $ 11,568 $ 623,677 Property operating expenses 117,014 28,010 37,850 7,248 190,122 Other operating expenses not allocated to segments (3) — — — 320,567 320,567 Total operating expenses 117,014 28,010 37,850 327,815 510,689 Proportionate property net operating income (loss) 328,867 58,094 42,274 (316,247) 112,988 Other items included in income before income tax expense (4) — — — 594,085 594,085 Income before income tax expense $ 328,867 $ 58,094 $ 42,274 $ 277,838 $ 707,073 Same Other Proportionate Corporate and Consolidated Three months ended September 30, 2022: Total revenues $ 142,009 $ 14,025 $ 32,402 $ 12,435 $ 200,871 Property operating expenses 37,349 4,783 13,468 8,409 64,009 Other operating expenses not allocated to segments (3) — — — 110,290 110,290 Total operating expenses 37,349 4,783 13,468 118,699 174,299 Proportionate property net operating income (loss) 104,660 9,242 18,934 (106,264) 26,572 Other items included in income before income tax expense (4) — — — (23,130) (23,130) Income (loss) before income tax expense $ 104,660 $ 9,242 $ 18,934 $ (129,394) $ 3,442 Same Other Proportionate Corporate and Consolidated Nine months ended September 30, 2022: Total revenues $ 411,052 $ 16,437 $ 93,187 $ 45,173 $ 565,849 Property operating expenses 111,316 5,799 38,559 21,005 176,679 Other operating expenses not allocated to segments (3) — — — 300,720 300,720 Total operating expenses 111,316 5,799 38,559 321,725 477,399 Proportionate property net operating income (loss) 299,736 10,638 54,628 (276,552) 88,450 Other items included in income before income tax expense (4) — — — 528,955 528,955 Income from before income tax expense $ 299,736 $ 10,638 $ 54,628 $ 252,403 $ 617,405 (1) Represents adjustments to: (i) include AIR’s proportionate share of the results of unconsolidated apartment communities, which is excluded in the related consolidated amounts, and (ii) exclude the noncontrolling interests in consolidated real estate partnerships’ proportionate share of the results of communities, which is included in the related consolidated amounts. 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. (2) Includes: (i) the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, (ii) property management revenues, which are not part of our segment performance measure, 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, and (iii) the depreciation of capitalized costs of non-real estate assets. (3) Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4) Includes interest income, interest expense, loss on extinguishment of debt, gain on dispositions of real estate, provision for impairment loss, and loss from unconsolidated real estate partnerships. The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands): September 30, 2023 December 31, 2022 Same Store $ 4,119,544 $ 4,610,356 Other Real Estate 1,575,415 1,211,136 Corporate and other assets (1) 704,290 730,391 Total consolidated assets $ 6,399,249 $ 6,551,883 (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) properties sold or classified as held for sale. For the nine months ended September 30, 2023 and 2022, capital additions related to our segments were as follows (in thousands): 2023 2022 Same Store $ 114,844 $ 109,768 Other Real Estate 13,530 1,422 Total capital additions $ 128,374 $ 111,190 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation We consolidate variable interest entities (“VIEs”), 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. As of September 30, 2023 and December 31, 2022, AIR consolidated five and seven VIEs, respectively, including the AIR Operating Partnership. |
Redeemable Preferred OP Units | Redeemable Preferred OP Units The AIR Operating Partnership has various classes of preferred OP Units. Each class of preferred OP Units is currently redeemable at the holders’ option. The AIR Operating Partnership, at its sole discretion, may settle such redemption requests in cash or cause AIR to issue shares of its Common Stock with a value equal to the redemption price. 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’ redemption value (in thousands): Balance at January 1, 2023 $ 77,143 Preferred distributions (4,710) Redemption of preferred units and other (3) Net income allocated to preferred units 4,710 Balance at September 30, 2023 $ 77,140 The AIR Operating Partnership has outstanding various classes of redeemable preferred OP Units. As of September 30, 2023 and December 31, 2022, the AIR Operating Partnership had 2,846,524 and 2,846,574 redeemable preferred OP Units issued and outstanding, respectively. Distributions per annum range from 1.92% to 8.75% per class and $0.48 to $8.00 per unit, respectively. |
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 condensed consolidated financial statements and accompanying notes thereto. Actual results could differ from those estimates. |
Impairment | ImpairmentImpairments are rare; however, in exiting the New York market, we impaired three properties in 2023 as further described below. Real estate and other long-lived assets to be held and used are individually evaluated for impairment when conditions exist that may indicate the carrying amount of a long-lived asset may not be recoverable. Impairment indicators include significant fluctuations in rental and other property revenues less property operating expenses, occupancy changes, significant near-term lease expirations, current and historical cash flow losses, rental rates, and if applicable, a comparison of an asset’s carrying value to its estimated fair value. Upon determination that an impairment has occurred, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the community |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Reconciliation of Preferred OP Units | The following table presents a rollforward of the AIR Operating Partnership’s preferred OP Units’ redemption value (in thousands): Balance at January 1, 2023 $ 77,143 Preferred distributions (4,710) Redemption of preferred units and other (3) Net income allocated to preferred units 4,710 Balance at September 30, 2023 $ 77,140 |
Significant Transactions (Table
Significant Transactions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Significant Transactions [Abstract] | |
Schedule of Acquisition | Summarized information regarding these acquisitions is set forth in the table below (dollars in thousands): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Number of apartment communities 2 3 Number of apartment homes 620 1,115 Purchase price $ 154,500 $ 452,500 Capitalized transaction costs 1,270 6,739 Total consideration (1) $ 155,770 $ 459,239 Land $ 19,226 $ 118,564 Building and improvements 130,937 318,364 Intangible assets (2) 5,768 17,845 Mark-to-market on debt assumed — 7,370 Below-market lease liabilities (2) (161) (2,904) Total consideration (1) $ 155,770 $ 459,239 (1) Total consideration for the apartment community acquisition in South Florida includes $101.2 million of debt assumed and the issuance of $22.4 million in common OP Units. (2) Intangible assets and below-market lease liabilities for the South Florida apartment community acquisition have a weighted-average term of 1.4 years and 0.5 years, respectively. Intangible assets and below-market lease liabilities for the North Carolina apartment community acquisitions have a weighted-average term of 0.5 years. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Fixed lease income $ 179,069 $ 184,509 $ 572,123 $ 522,074 Variable lease income 14,502 13,141 43,043 35,165 Total lease income $ 193,571 $ 197,650 $ 615,166 $ 557,239 |
Future Minimum Annual Rental Payments Receivable Under Residential and Commercial Leases | As of September 30, 2023, future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows (in thousands): 2023 (remaining) $ 164,948 2024 379,399 2025 69,870 2026 11,740 2027 10,218 Thereafter 36,463 Total $ 672,638 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt summmary | The following table summarizes our total indebtedness (in thousands): September 30, 2023 December 31, 2022 Secured debt: Fixed-rate property debt due May 2025 to January 2055 (1) $ 2,244,776 $ 1,906,151 Variable-rate property debt — 88,500 Total non-recourse property debt 2,244,776 1,994,651 Debt issuance costs, net of accumulated amortization (13,538) (9,221) Total non-recourse property debt, net $ 2,231,238 $ 1,985,430 Unsecured debt: Term loans due December 2024 to April 2026 (2) $ 475,000 $ 800,000 Revolving credit facility borrowings due April 2025 (3) 25,750 462,000 4.58% Notes payable due June 2027 100,000 100,000 4.77% Notes payable due June 2029 100,000 100,000 4.84% Notes payable due June 2032 200,000 200,000 Total unsecured debt 900,750 1,662,000 Debt issuance costs, net of accumulated amortization (3,754) (5,801) Total unsecured debt, net $ 896,996 $ 1,656,199 Total indebtedness $ 3,128,234 $ 3,641,629 (1) In the first quarter of 2023, AIR borrowed $320 million using 10-year fixed rate financing, bearing interest at 4.9%. Proceeds were used to refinance a floating rate loan and reduce borrowings by $230 million on our revolving credit facility. The stated rates on our fixed-rate property debt are between 2.7% to 5.7%. (2) The term loans bear interest at a one-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, 2023, the weighted-average interest rate for our term loans before consideration of in place interest rate swaps was 6.4%. As of September 30, 2023, $350 million of our term loans are fixed via interest rate swaps at a weighted-average interest rate of 4.3%. The blended weighted-average interest rate for our $475 million term loans, after consideration of in place interest rate swaps, is 4.9%. The term loans mature on the following schedule: $125 million matures on December 15, 2024, with a one-year extension option; $150 million matures on December 15, 2025; and $200 million matures on April 14, 2026. As of September 30, 2023, the weighted-average remaining term of the term loans was 2.3 years. (3) As of September 30, 2023, we had capacity to borrow up to $970.0 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a one-month Term SOFR plus 0.89%, based on our current credit rating, and a SOFR adjustment of 10-basis points. As of September 30, 2023, the weighted-average interest rate for our revolving credit facility was 6.3%. |
Investment in Joint Ventures (T
Investment in Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Virginia JV Value-Add JV (1) Core JV Initial formation date October 2021 June 2023 July 2023 AIR Ownership 20% 30% 53% Outside Entities Ownership 80% 70% 47% Number of Apartment Communities 3 1 11 Apartment Units 1,748 443 3,549 (1) A global asset manager acquired a 70% legal ownership in the Huntington Gateway property, but AIR will receive 50% of the net cash flows from operations, and various fees for providing property management, construction, and corporate services to the joint venture. September 30, 2023 Virginia JV Value-Add JV Core JV Total Third-Party Debt $ 395,000 $ 94,105 $ 799,164 AIR's Investment In Balance (1) $ 18,198 $ 29,341 $ 272,957 (1) AIR's investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets includes $31.6 million related to two immaterial unconsolidated investments and certain basis differences. December 31, 2022 Virginia JV Value-Add JV Core JV Total Third-Party Debt $ 395,000 — — AIR's Investment In Balance (1) $ 20,660 — — (1) AIR's investment in unconsolidated real estate partnerships in our condensed consolidated balance sheets includes $21.2 million related to two immaterial unconsolidated investments. Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Virginia JV $ (1,113) $ (87) $ (3,004) $ (2,974) Core JV (7,930) — (7,930) — Value-Add JV (1,347) — (1,333) — Total $ (10,390) $ (87) $ (12,267) $ (2,974) |
Earnings and Dividends per Sh_2
Earnings and Dividends per Share and per Unit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliations of Numerator and Denominator in Calculations of Basic and Diluted Earnings 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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Earnings per share Numerator: Basic net income attributable to AIR common stockholders $ 663,596 $ 1,760 $ 650,700 $ 574,363 Effect of dilutive instruments 1,570 — 4,710 4,807 Dilutive net income attributable to AIR common stockholders $ 665,166 $ 1,760 $ 655,410 $ 579,170 Denominator – shares: Basic weighted-average common shares outstanding 147,474 153,811 148,372 155,488 Dilutive common share equivalents outstanding 2,571 246 2,320 1,952 Dilutive weighted-average common shares outstanding 150,045 154,057 150,692 157,440 Earnings per share – basic $ 4.50 $ 0.01 $ 4.39 $ 3.69 Earnings per share – diluted $ 4.43 $ 0.01 $ 4.35 $ 3.68 Earnings per unit Numerator: Basic net income attributable to the AIR Operating Partnership’s common unitholders $ 705,982 $ 1,897 $ 691,945 $ 611,416 Effect of dilutive instruments 1,570 — 4,710 4,935 Dilutive net income attributable to the AIR Operating Partnership’s common unitholders $ 707,552 $ 1,897 $ 696,655 $ 616,351 Denominator – units: Basic weighted-average common units outstanding 157,366 163,866 158,138 165,578 Dilutive common unit equivalents outstanding 2,571 246 2,320 1,951 Dilutive weighted-average common units outstanding 159,937 164,112 160,458 167,529 Earnings per unit – basic $ 4.49 $ 0.01 $ 4.38 $ 3.69 Earnings per unit – diluted $ 4.42 $ 0.01 $ 4.34 $ 3.68 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value for Interest Rate Options and swaps | The following table summarizes investments measured at fair value on a recurring basis, which are presented in other assets, net, and accrued liabilities and other in our condensed consolidated balance sheets (in thousands): As of September 30, 2023 As of December 31, 2022 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Interest rate option (1) $ — $ — $ — $ — $ 53,481 $ — $ 53,481 $ — Interest rate swaps - pay-fixed, receive floating $ 29,898 $ — $ 29,898 $ — $ 32,222 $ — $ 32,222 $ — Interest rate swaps - pay-floating, receive fixed $ (3,035) $ — $ (3,035) $ — $ — $ — $ — $ — Interest rate swaps - forward starting $ 3,333 $ — $ 3,333 $ — $ — $ — $ — $ — Treasury rate locks $ — $ — $ — $ — $ 319 $ — $ 319 $ — (1) During the second quarter of 2023, the interest rate swap option asset and offsetting liability associated with the Parkmerced mezzanine investment was settled, resulting in equal decreases in other assets, net and accrued liabilities and other in the condensed consolidated balance sheets. |
Summary of Carrying Value and Fair Value of Non-recourse Property Debt | We classify the fair value of our non-recourse property debt, unsecured notes payable, seller financing notes receivable, and preferred equity investment within Level 2 of the GAAP fair value hierarchy, as summarized in the following table (in thousands): As of September 30, 2023 As of December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Non-recourse property debt $ 2,244,776 $ 1,938,885 $ 1,994,651 $ 1,753,222 Unsecured notes payable $ 400,000 $ 363,609 $ 400,000 $ 371,368 Seller financing note receivable, net (1) $ 32,246 $ 30,723 $ 31,611 $ 32,286 Preferred equity investment (2) $ 22,398 $ 22,486 $ — $ — (1) During the year ended December 31, 2022, we provided $40.0 million of seller financing as partial consideration for the sale of our New England portfolio. The contractual interest rate on the note is 4.5%. The difference between the stated rate and the market interest rate as of |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instrument and Hedging Activities | The following table summarizes our derivative financial instruments (dollars in thousands): As of September 30, 2023 Number of Aggregate Notional Derivative Assets Derivative Liabilities Instruments Amount Fair Value Derivatives not designated as hedging instruments: Interest rate swap, floating to fixed 7 $ 600,000 $ 29,898 $ — Interest rate swap, fixed to floating 3 $ 250,000 $ — $ (3,035) Interest rate swap, forward starting 1 $ 50,000 $ 3,333 $ — As of December 31, 2022 Number of Aggregate Notional Derivative Assets Derivative Liabilities Instruments Amount Fair Value Derivatives designated as hedging instruments: Treasury rate locks 1 $ 100,000 $ 319 $ — Interest rate swaps, floating to fixed 10 $ 830,000 $ 32,222 $ — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 (1) December 31, 2022 VIEs with interests in apartment communities 3 5 Apartment communities owned by VIEs 14 16 Apartment homes in communities owned by VIEs 4,866 5,369 (1) During the nine months ended September 30, 2023, the number of our VIEs with interests in apartment communities decreased due to our Core JV partner's acquisition of an indirect 47% interest through the Core JV in one consolidated limited partnership with 175 apartment homes, and our purchase of the remaining non-controlling interest in a consolidated limited partnership with 328 apartment homes, which was subsequently contributed to the Core JV during the third quarter. September 30, 2023 December 31, 2022 ASSETS: Net real estate $ 1,024,555 $ 1,066,482 Cash and cash equivalents $ 42,133 $ 54,319 Restricted cash $ 1,970 $ 2,378 Other assets, net $ 21,216 $ 20,944 LIABILITIES: Non-recourse property debt, net $ 1,200,279 $ 1,212,065 Accrued liabilities and other $ 40,007 $ 35,365 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 (in thousands): Same Other Proportionate Corporate and Consolidated Three months ended September 30, 2023: Total revenues $ 151,619 $ 29,543 $ 11,981 $ 4,164 $ 197,307 Property operating expenses 40,353 8,158 9,076 489 58,076 Other operating expenses not allocated to segments (3) — — — 100,695 100,695 Total operating expenses 40,353 8,158 9,076 101,184 158,771 Proportionate property net operating income (loss) 111,266 21,385 2,905 (97,020) 38,536 Other items included in income before income tax expense (4) — — — 676,571 676,571 Income before income tax expense $ 111,266 $ 21,385 $ 2,905 $ 579,551 $ 715,107 Same Other Proportionate Corporate and Consolidated Nine months ended September 30, 2023: Total revenues $ 445,881 $ 86,104 $ 80,124 $ 11,568 $ 623,677 Property operating expenses 117,014 28,010 37,850 7,248 190,122 Other operating expenses not allocated to segments (3) — — — 320,567 320,567 Total operating expenses 117,014 28,010 37,850 327,815 510,689 Proportionate property net operating income (loss) 328,867 58,094 42,274 (316,247) 112,988 Other items included in income before income tax expense (4) — — — 594,085 594,085 Income before income tax expense $ 328,867 $ 58,094 $ 42,274 $ 277,838 $ 707,073 Same Other Proportionate Corporate and Consolidated Three months ended September 30, 2022: Total revenues $ 142,009 $ 14,025 $ 32,402 $ 12,435 $ 200,871 Property operating expenses 37,349 4,783 13,468 8,409 64,009 Other operating expenses not allocated to segments (3) — — — 110,290 110,290 Total operating expenses 37,349 4,783 13,468 118,699 174,299 Proportionate property net operating income (loss) 104,660 9,242 18,934 (106,264) 26,572 Other items included in income before income tax expense (4) — — — (23,130) (23,130) Income (loss) before income tax expense $ 104,660 $ 9,242 $ 18,934 $ (129,394) $ 3,442 Same Other Proportionate Corporate and Consolidated Nine months ended September 30, 2022: Total revenues $ 411,052 $ 16,437 $ 93,187 $ 45,173 $ 565,849 Property operating expenses 111,316 5,799 38,559 21,005 176,679 Other operating expenses not allocated to segments (3) — — — 300,720 300,720 Total operating expenses 111,316 5,799 38,559 321,725 477,399 Proportionate property net operating income (loss) 299,736 10,638 54,628 (276,552) 88,450 Other items included in income before income tax expense (4) — — — 528,955 528,955 Income from before income tax expense $ 299,736 $ 10,638 $ 54,628 $ 252,403 $ 617,405 (1) Represents adjustments to: (i) include AIR’s proportionate share of the results of unconsolidated apartment communities, which is excluded in the related consolidated amounts, and (ii) exclude the noncontrolling interests in consolidated real estate partnerships’ proportionate share of the results of communities, which is included in the related consolidated amounts. 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. (2) Includes: (i) the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, (ii) property management revenues, which are not part of our segment performance measure, 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, and (iii) the depreciation of capitalized costs of non-real estate assets. (3) Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4) Includes interest income, interest expense, loss on extinguishment of debt, gain on dispositions of real estate, provision for impairment loss, and loss from unconsolidated real estate partnerships. |
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, 2023 December 31, 2022 Same Store $ 4,119,544 $ 4,610,356 Other Real Estate 1,575,415 1,211,136 Corporate and other assets (1) 704,290 730,391 Total consolidated assets $ 6,399,249 $ 6,551,883 (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) properties sold or classified as held for sale. |
Capital Additions Related to Segments | For the nine months ended September 30, 2023 and 2022, capital additions related to our segments were as follows (in thousands): 2023 2022 Same Store $ 114,844 $ 109,768 Other Real Estate 13,530 1,422 Total capital additions $ 128,374 $ 111,190 |
Basis of Presentation and Org_2
Basis of Presentation and Organization (Details) | 9 Months Ended |
Sep. 30, 2023 parcel apartment stateAndDistrict interest property shares | |
Real Estate Properties [Line Items] | |
Number of states and district | stateAndDistrict | 10 |
Number of land parcels | parcel | 1 |
Number of indirect land interests | interest | 1 |
AIR Operating Partnership | |
Real Estate Properties [Line Items] | |
Common operating partnership units and equivalents outstanding (in shares) | 156,840,617 |
Common operating partnership units and equivalents outstanding (in shares) | 146,973,055 |
Percentage of the Aimco Operating Partnership's common partnership units and equivalents owned by Aimco | 91.20% |
Percentage of economic interest | 93.60% |
Partially Owned Properties | |
Real Estate Properties [Line Items] | |
Apartment communities owned by VIEs | property | 75 |
Apartment homes in communities owned by VIEs | apartment | 26,623 |
Percentage of average ownership of portfolio | 81% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Preferred OP Units (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance at January 1, 2023 | $ 77,143 |
Preferred distributions | (4,710) |
Purchase of noncontrolling interests in consolidated real estate partnerships | (3) |
Net income allocated to preferred units | 4,710 |
Balance at September 30, 2023 | $ 77,140 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2023 entity $ / shares shares | Dec. 31, 2022 entity shares | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Number of consolidated VIEs | entity | 5 | 7 |
AIMCO PROPERTIES, L.P | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Units outstanding (in shares) | shares | 2,846,524 | 2,846,574 |
AIMCO PROPERTIES, L.P | Minimum | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Distributions per annum | 1.92% | |
Distribution made to limited partner, distributions paid, per unit (in dollars per share) | $ 0.48 | |
AIMCO PROPERTIES, L.P | Maximum | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Distributions per annum | 8.75% | |
Distribution made to limited partner, distributions paid, per unit (in dollars per share) | $ 8 |
Significant Transactions - Narr
Significant Transactions - Narrative (Details) $ / shares in Units, ft² in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) ft² property apartment $ / shares shares | Sep. 30, 2022 USD ($) apartment property | Sep. 30, 2023 USD ($) ft² apartment property shares | Sep. 30, 2022 USD ($) property apartment | |
Business Acquisition [Line Items] | ||||
Gain on dispositions and impairments of real estate | $ 692,861 | $ 0 | $ 675,534 | $ 587,609 |
Repurchase of common stock, net (in shares) | shares | 2,200,000 | |||
Stock repurchased during period, value | $ 77,782 | $ 46,711 | $ 77,782 | $ 171,711 |
Shares acquired, average cost per share (in usd per share) | $ / shares | $ 34.57 | |||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | shares | 105,500,000 | 105,500,000 | ||
Same Store | ||||
Business Acquisition [Line Items] | ||||
Apartment homes in communities owned by VIEs | apartment | 22,794 | 22,794 | ||
Other Real Estate | ||||
Business Acquisition [Line Items] | ||||
Apartment homes in communities owned by VIEs | apartment | 3,829 | 3,829 | ||
Impairment of real estate | $ 0 | $ 23,600 | ||
Apartment Community Dispositions | ||||
Business Acquisition [Line Items] | ||||
Apartment communities sold | apartment | 1 | 0 | 12 | |
Apartment homes in communities owned by VIEs | property | 195 | 2,050 | 195 | 2,050 |
Proceeds from sale of real estate | $ 19,900 | |||
Gain on dispositions and impairments of real estate | $ 587,600 | |||
Impairment of real estate | $ 0 | $ 0 | ||
Apartment Community Dispositions | Same Store | ||||
Business Acquisition [Line Items] | ||||
Apartment homes in communities owned by VIEs | property | 10 | 10 | ||
Apartment Community Dispositions, Second Disposition | ||||
Business Acquisition [Line Items] | ||||
Apartment communities sold | apartment | 3 | |||
Apartment homes in communities owned by VIEs | property | 257 | 257 | ||
Proceeds from sale of real estate | $ 52,100 | |||
Raleigh North Carolina | ||||
Business Acquisition [Line Items] | ||||
Number of apartment communities acquired | property | 1 | |||
Durham, North Carolina | ||||
Business Acquisition [Line Items] | ||||
Number of apartment communities acquired | property | 1 | |||
South Florida | ||||
Business Acquisition [Line Items] | ||||
Number of apartment communities acquired | property | 1 | |||
Commercial space | ft² | 29 | 29 |
Significant Transactions - Sche
Significant Transactions - Schedule of Acquisition (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) property apartment | Sep. 30, 2023 USD ($) apartment property | |
South Florida | ||
Business Acquisition [Line Items] | ||
Number of apartment communities acquired | property | 1 | |
Number of apartment homes | apartment | 495 | |
Debts assumed | $ 101,200 | |
Common OP units issuance | $ 22,400 | |
South Florida | Intangible Assets | ||
Business Acquisition [Line Items] | ||
Weighted-average term | 1 year 4 months 24 days | |
South Florida | Below-market leases | ||
Business Acquisition [Line Items] | ||
Weighted-average term | 6 months | |
NORTH CAROLINA | Below-market leases | ||
Business Acquisition [Line Items] | ||
Weighted-average term | 6 months | |
North Carolina And South Florida | Apartment Community | ||
Business Acquisition [Line Items] | ||
Number of apartment communities acquired | property | 2 | 3 |
Number of apartment homes | apartment | 620 | 1,115 |
Purchase price | $ 154,500 | $ 452,500 |
Capitalized transaction costs | 1,270 | 6,739 |
Total consideration | 155,770 | 459,239 |
Land | 19,226 | 118,564 |
Building and improvements | 130,937 | 318,364 |
Intangible assets | 5,768 | 17,845 |
Mark-to-market on debt assumed | 0 | 7,370 |
Below-market lease liabilities | (161) | (2,904) |
Total consideration | $ 155,770 | $ 459,239 |
Leases - Lease Income for Opera
Leases - Lease Income for Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Fixed lease income | $ 179,069 | $ 184,509 | $ 572,123 | $ 522,074 |
Variable lease income | 14,502 | 13,141 | 43,043 | 35,165 |
Total lease income | $ 193,571 | $ 197,650 | $ 615,166 | $ 557,239 |
Operating lease, lease income, statement of income or comprehensive income | Other assets, net | Other assets, net | Other assets, net | Other assets, net |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2023 |
Residential Lease | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 10 months 24 days |
Leases - Schedule of Aggregate
Leases - Schedule of Aggregate Minimum Lease Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 (remaining) | $ 164,948 |
2024 | 379,399 |
2025 | 69,870 |
2026 | 11,740 |
2027 | 10,218 |
Thereafter | 36,463 |
Total lease receivable | $ 672,638 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Total indebtedness | $ 3,128,234 | $ 3,128,234 | $ 3,641,629 | ||
Repayments of debt | 325,000 | $ 350,000 | |||
Line of credit | 25,750 | 25,750 | 462,000 | ||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit | 970,000 | $ 970,000 | |||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.89% | ||||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs, net of accumulated amortization | (13,538) | $ (13,538) | (9,221) | ||
Total indebtedness | 2,231,238 | 2,231,238 | 1,985,430 | ||
Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs, net of accumulated amortization | (3,754) | (3,754) | (5,801) | ||
Total indebtedness | 896,996 | 896,996 | 1,656,199 | ||
Unsecured Debt | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 475,000 | 475,000 | 800,000 | ||
Loan borrowed | 350,000 | $ 350,000 | |||
Repayments of debt | $ 325,000 | ||||
Unsecured Debt | Term Loan | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1% | 1% | |||
Debt instrument basis spread on variable rate | 0.10% | ||||
Debt, weighted average interest rate | 6.40% | 6.40% | |||
Unsecured Debt | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 25,750 | $ 25,750 | 462,000 | ||
Unsecured Debt | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Debt, weighted average interest rate | 6.30% | 6.30% | |||
Unsecured Debt Gross | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 900,750 | $ 900,750 | 1,662,000 | ||
Fixed Rate Property Debt | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 2,244,776 | 2,244,776 | 1,906,151 | ||
Variable Rate Property Debt | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 0 | 0 | 88,500 | ||
Non-recourse property debt | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 2,244,776 | 2,244,776 | 1,994,651 | ||
4.58% Notes payable due June 2027 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 100,000 | $ 100,000 | $ 100,000 | ||
Debt instrument, interest rate, stated percentage | 4.58% | 4.58% | 4.58% | ||
4.77% Notes payable due June 2029 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 100,000 | $ 100,000 | $ 100,000 | ||
Debt instrument, interest rate, stated percentage | 4.77% | 4.77% | 4.77% | ||
4.84% Notes payable due June 2032 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 200,000 | $ 200,000 | $ 200,000 | ||
Debt instrument, interest rate, stated percentage | 4.84% | 4.84% | 4.84% | ||
Fixed Rate Member | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.90% | ||||
Loan borrowed | $ 320,000 | ||||
Loan term | 10 years | ||||
Payment for borrowings | $ 230,000 | ||||
Fixed Rate Member | Secured Debt | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 2.70% | ||||
Fixed Rate Member | Secured Debt | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.70% | ||||
Schedule Term Loan | |||||
Debt Instrument [Line Items] | |||||
Loan borrowed | $ 125,000 | $ 125,000 | |||
Long-term debt, term | 1 year | 1 year | |||
Schedule Term Loan | Unsecured Debt | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt, weighted average interest rate | 4.30% | 4.30% | |||
Schedule Term Loan One | |||||
Debt Instrument [Line Items] | |||||
Loan borrowed | $ 150,000 | $ 150,000 | |||
Schedule Term Loan One | Unsecured Debt | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt, weighted average interest rate | 4.90% | 4.90% | |||
Schedule Term Loan Two | |||||
Debt Instrument [Line Items] | |||||
Loan borrowed | $ 200,000 | $ 200,000 | |||
Floating Rate | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Weighted-average remaining term | 2 years 3 months 18 days |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) property | Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 325,000,000 | $ 350,000,000 | |||
Non-recourse property debt, net | $ 2,231,238,000 | 2,231,238,000 | $ 1,985,430,000 | ||
Core JV | |||||
Debt Instrument [Line Items] | |||||
Non-recourse property debt, net | 644,400,000 | 644,400,000 | |||
Long-term debt, gross | 373,300,000 | $ 373,300,000 | |||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 1.50 | ||||
Secured indebtedness to total assets ratio | 0.40 | ||||
Maximum unsecured leverage ratio | 0.60 | ||||
Unsecured interest coverage ratio | 1.50 | ||||
Minimum | Leverage Ratio | |||||
Debt Instrument [Line Items] | |||||
Unsecured leverage ratio | 0.60 | ||||
Interest Expense | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs, gross | 800,000 | $ 800,000 | |||
Term Loan Maturity on December 15, 2023 | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | 150,000,000 | ||||
Term Loan Maturity on December 15, 2024 | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | 175,000,000 | ||||
Fifteen Year Fixed Rate Financing | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 1,000,000,000 | ||||
Loan term | 15 years | ||||
Line of credit, total liquidity | 2,100,000,000 | 2,100,000,000 | |||
Secured Debt | Fixed Rate Property Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 2,244,776,000 | 2,244,776,000 | 1,906,151,000 | ||
Secured Debt | Fixed Rate Property Debt | Core JV | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 644,400,000 | 644,400,000 | |||
Secured Debt | Fixed Rate Property Debt | Core JV | Nine Properties | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 611,400,000 | $ 611,400,000 | |||
Number of properties | property | 9 | 9 | |||
Secured Debt | Fixed Rate Property Debt | Core JV | One Property | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 33,000,000 | $ 33,000,000 | |||
Number of properties | property | 1 | 1 | |||
Term Loan | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 325,000,000 | ||||
Long-term debt, gross | $ 475,000,000 | $ 475,000,000 | $ 800,000,000 |
Investment in Joint Ventures -
Investment in Joint Ventures - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) property apartment | Jun. 30, 2023 property | Sep. 30, 2023 USD ($) property apartment | Dec. 31, 2022 USD ($) | |
Variable Interest Entity [Line Items] | ||||
Long-term debt | $ 3,128,234 | $ 3,128,234 | $ 3,641,629 | |
Non-recourse property debt, net | $ 2,231,238 | $ 2,231,238 | $ 1,985,430 | |
Global Institutional Investor Joint Venture | ||||
Variable Interest Entity [Line Items] | ||||
Number of properties in portfolio | property | 10 | 10 | ||
Gain on disposal | $ 698,800 | |||
Global Institutional Investor Joint Venture | Apartment Income REIT, L.P. | ||||
Variable Interest Entity [Line Items] | ||||
Ownership, percentage | 30% | |||
Global Institutional Investor Joint Venture | Washington DC | ||||
Variable Interest Entity [Line Items] | ||||
Number of properties in portfolio | apartment | 456 | 456 | ||
Long-term debt | $ 155,000 | $ 155,000 | ||
Apartment homes in communities owned by VIEs | property | 443 | |||
General partners' contributed capital | 95,000 | $ 95,000 | ||
Purchase price | $ 250,000 | |||
Core JV | ||||
Variable Interest Entity [Line Items] | ||||
Number of properties in portfolio | property | 10 | 10 | ||
Long-term debt | $ 1,100,000 | $ 1,100,000 | ||
Long-term debt, gross | 373,300 | 373,300 | ||
Non-recourse property debt, net | 644,400 | $ 644,400 | ||
Proceeds from sale of interest in partnership unit | $ 201,900 | |||
Core JV | Apartment Income REIT, L.P. | ||||
Variable Interest Entity [Line Items] | ||||
Ownership, percentage | 53% | 53% | ||
Huntington Gateway | ||||
Variable Interest Entity [Line Items] | ||||
Gain on disposal | $ 500 | |||
Equity method investment, ownership interest sold | 70% | |||
Cash flow from operations | 50% | |||
Joint Venture Partner | ||||
Variable Interest Entity [Line Items] | ||||
Non-recourse property debt, net | $ 611,400 | $ 611,400 | ||
Apartment homes in communities owned by VIEs | 328 | 328 |
Investment in Joint Ventures _2
Investment in Joint Ventures - Ownership Information (Details) - apartment | 3 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2023 | |
Virginia JV | ||
Schedule of Equity Method Investments [Line Items] | ||
Apartment communities owned by VIEs | 3 | |
Apartment homes in communities owned by VIEs | 1,748 | |
Virginia JV | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 20% | |
Virginia JV | Partnership Interest | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 80% | |
Value-Add JV | ||
Schedule of Equity Method Investments [Line Items] | ||
Apartment communities owned by VIEs | 1 | |
Apartment homes in communities owned by VIEs | 443 | |
Value-Add JV | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 30% | |
Value-Add JV | Partnership Interest | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 70% | |
Core JV | ||
Schedule of Equity Method Investments [Line Items] | ||
Apartment communities owned by VIEs | 11 | |
Apartment homes in communities owned by VIEs | 3,549 | |
Core JV | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 53% | |
Core JV | Partnership Interest | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 47% | |
Huntington Gateway | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership interest sold | 70% | |
Huntington Gateway | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership, percentage | 50% |
Investment in Joint Ventures _3
Investment in Joint Ventures - Summary of Combined Balance Sheets for Joint Venture Partners (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Liabilities | $ 3,611,381 | $ 4,155,434 |
Investment in unconsolidated real estate partnerships | 352,096 | 41,860 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment in unconsolidated real estate partnerships | 31,600 | 21,200 |
Variable Interest Entity, Primary Beneficiary | Virginia JV | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 395,000 | 395,000 |
Investment in unconsolidated real estate partnerships | 18,198 | 20,660 |
Variable Interest Entity, Primary Beneficiary | Value-Add JV | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 94,105 | 0 |
Investment in unconsolidated real estate partnerships | 29,341 | 0 |
Variable Interest Entity, Primary Beneficiary | Core JV | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 799,164 | 0 |
Investment in unconsolidated real estate partnerships | $ 272,957 | $ 0 |
Investment in Joint Ventures _4
Investment in Joint Ventures - Earnings or Losses Sttributable to Investments in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Variable Interest Entity [Line Items] | ||||
Net income (loss) from real estate investment partnership | $ (10,390) | $ (87) | $ (12,267) | $ (2,974) |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Net income (loss) from real estate investment partnership | (10,390) | (87) | (12,267) | (2,974) |
Virginia JV | Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Net income (loss) from real estate investment partnership | (1,113) | (87) | (3,004) | (2,974) |
Core JV | Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Net income (loss) from real estate investment partnership | (7,930) | 0 | (7,930) | 0 |
Value-Add JV | Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Net income (loss) from real estate investment partnership | $ (1,347) | $ 0 | $ (1,333) | $ 0 |
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 ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule Of Earnings Per Share And Per Unit [Line Items] | ||||
Net (loss) income attributable to AIR common stockholders | $ 663,596 | $ 1,760 | $ 650,700 | $ 574,363 |
Effect of dilutive instruments | 1,570 | 0 | 4,710 | 4,807 |
Net (loss) income attributable to AIR common stockholders | $ 665,166 | $ 1,760 | $ 655,410 | $ 579,170 |
Denominator: | ||||
Basic weighted-average common shares/units equivalents outstanding (in shares) | 147,474 | 153,811 | 148,372 | 155,488 |
Dilutive common share/unit equivalents outstanding (in shares) | 2,571 | 246 | 2,320 | 1,952 |
Dilutive weighted-average common shares/units outstanding (in shares) | 150,045 | 154,057 | 150,692 | 157,440 |
Earnings per share/unit - basic (in dollars per share) | $ 4.50 | $ 0.01 | $ 4.39 | $ 3.69 |
Earnings per share/unit - diluted (in dollars per share) | $ 4.43 | $ 0.01 | $ 4.35 | $ 3.68 |
Apartment Income REIT, L.P. | ||||
Schedule Of Earnings Per Share And Per Unit [Line Items] | ||||
Net (loss) income attributable to AIR common stockholders | $ 705,982 | $ 1,897 | $ 691,945 | $ 611,416 |
Effect of dilutive instruments | 1,570 | 0 | 4,710 | 4,935 |
Net (loss) income attributable to AIR common stockholders | $ 707,552 | $ 1,897 | $ 696,655 | $ 616,351 |
Denominator: | ||||
Basic weighted-average common shares/units equivalents outstanding (in shares) | 157,366 | 163,866 | 158,138 | 165,578 |
Dilutive common share/unit equivalents outstanding (in shares) | 2,571 | 246 | 2,320 | 1,951 |
Dilutive weighted-average common shares/units outstanding (in shares) | 159,937 | 164,112 | 160,458 | 167,529 |
Earnings per share/unit - basic (in dollars per share) | $ 4.49 | $ 0.01 | $ 4.38 | $ 3.69 |
Earnings per share/unit - diluted (in dollars per share) | $ 4.42 | $ 0.01 | $ 4.34 | $ 3.68 |
Earnings and Dividends per Sh_4
Earnings and Dividends per Share and per Unit - Narrative (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Dividends and distributions paid (in dollars per share) | $ 0.45 | $ 1.35 | ||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 4,000,000 | 1,900,000 | 3,400,000 | 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value for Interest Rate Options (Details) - Fair value recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Interest Rate Option | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 0 | $ 53,481 |
Interest Rate Option | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest Rate Option | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 53,481 |
Interest Rate Option | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest rate swaps - pay-fixed, receive floating | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 29,898 | 32,222 |
Interest rate swaps - pay-fixed, receive floating | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest rate swaps - pay-fixed, receive floating | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 29,898 | 32,222 |
Interest rate swaps - pay-fixed, receive floating | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest rate swaps - pay-floating, receive fixed | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | (3,035) | 0 |
Interest rate swaps - pay-floating, receive fixed | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest rate swaps - pay-floating, receive fixed | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | (3,035) | 0 |
Interest rate swaps - pay-floating, receive fixed | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest Rate Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 3,333 | 0 |
Interest Rate Swap | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Interest Rate Swap | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 3,333 | 0 |
Interest Rate Swap | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Treasury rate locks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 319 |
Treasury rate locks | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 0 |
Treasury rate locks | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 0 | 319 |
Treasury rate locks | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 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 | 12 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2023 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 3,641,629 | $ 3,128,234 |
Derivative, average variable interest rate | 4.50% | |
Receivables with imputed interest, amortization amount | $ 8,500 | |
Value-Add JV | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Receivables with imputed interest, amortization amount | $ 5,900 | |
Investment interest rate | 7.25% | |
New England | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Partial consider selling value | $ 40,000 | |
Carrying Value | Fair Value, Nonrecurring | Seller financing note receivable, net | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Seller financing note receivable, net | 31,611 | 32,246 |
Carrying Value | Fair Value, Nonrecurring | Preferred equity investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Preferred equity investment | 0 | 22,398 |
Carrying Value | Fair Value, Nonrecurring | Non-recourse property debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | 1,994,651 | 2,244,776 |
Carrying Value | Fair Value, Nonrecurring | Unsecured notes payable | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | 400,000 | 400,000 |
Fair Value | Fair Value, Nonrecurring | Seller financing note receivable, net | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Seller financing note receivable, net | 32,286 | 30,723 |
Fair Value | Fair Value, Nonrecurring | Preferred equity investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Preferred equity investment | 0 | 22,486 |
Fair Value | Fair Value, Nonrecurring | Non-recourse property debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | 1,753,222 | 1,938,885 |
Fair Value | Fair Value, Nonrecurring | Unsecured notes payable | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 371,368 | $ 363,609 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2023 USD ($) | Sep. 30, 2023 USD ($) instrument | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Reclassification of interest rate derivative (gain) loss to net income (loss) | $ 14,186,000 | $ (731,000) | $ 23,704,000 | $ (2,720,000) | ||
Derivative, fair value hedge, included in effectiveness, gain (loss) | 11,500,000 | |||||
Unrealized loss on derivative instruments | 14,100,000 | 0 | 23,300,000 | 0 | ||
Derivative, change in hedging designation | $ 830,000,000 | |||||
Derivative, change in hedging designation, unrealized gains | 29,500,000 | |||||
Cash flow hedge gain (loss) to be reclassified within 12 months | $ 7,400,000 | |||||
Proceeds from termination of derivative instrument | $ 11,100,000 | |||||
Derivative, term of contract | 2 years 7 months 6 days | |||||
Term Loans | Subsequent Event | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Proceeds from lines of credit | $ 475,000,000 | |||||
Debt instrument, interest rate, stated percentage | 4.30% | |||||
Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of interest rate derivatives terminated | instrument | 6 | |||||
Interest rate swap, pay-fixed, receive-floating | Subsequent Event | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Aggregate notional amount | $ 125,000,000 | |||||
Interest Rate Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Cash flow hedge gain (loss) to be reclassified within 12 months | $ 15,400,000 | |||||
Designated as Hedging Instrument | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Reclassification of interest rate derivative (gain) loss to net income (loss) | $ 2,600,000 | $ 700,000 | $ 2,700,000 | |||
Designated as Hedging Instrument | Interest Rate Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Reclassification of interest rate derivative (gain) loss to net income (loss) | (14,200,000) | (23,700,000) | ||||
Not Designated as Hedging Instrument | Interest rate swap, fixed to floating | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Aggregate notional amount | 250,000,000 | 250,000,000 | ||||
Not Designated as Hedging Instrument | Interest rate swap, pay-floating, receive-fixed | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Aggregate notional amount | 230,000,000 | 230,000,000 | ||||
Not Designated as Hedging Instrument | Interest rate swap, pay-fixed, receive-floating | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Aggregate notional amount | 230,000,000 | 230,000,000 | ||||
Not Designated as Hedging Instrument | Interest rate swap, forward starting | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Aggregate notional amount | 50,000,000 | 50,000,000 | ||||
Not Designated as Hedging Instrument | Interest Rate Swap, Pay-Fixed, Receive-Floating, Scenario Two | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Aggregate notional amount | 600,000,000 | 600,000,000 | ||||
Not Designated as Hedging Instrument | Interest Rate Swap, Pay-Floating, Receive-Fixed Scenario Two | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Aggregate notional amount | $ 250,000,000 | $ 250,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Schedule of Balance Sheet Hedges (Details) $ in Thousands | Sep. 30, 2023 USD ($) instrument | Dec. 31, 2022 USD ($) instrument |
Treasury rate locks | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held | instrument | 1 | |
Aggregate notional amount | $ 100,000 | |
Treasury rate locks | Designated as Hedging Instrument | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset derivatives, fair value | 319 | |
Treasury rate locks | Designated as Hedging Instrument | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liability derivatives, fair value | $ 0 | |
Interest rate swap, floating to fixed | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held | instrument | 10 | |
Aggregate notional amount | $ 830,000 | |
Interest rate swap, floating to fixed | Designated as Hedging Instrument | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset derivatives, fair value | 32,222 | |
Interest rate swap, floating to fixed | Designated as Hedging Instrument | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liability derivatives, fair value | $ 0 | |
Interest rate swap, floating to fixed | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held | instrument | 7 | |
Aggregate notional amount | $ 600,000 | |
Interest rate swap, floating to fixed | Not Designated as Hedging Instrument | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset derivatives, fair value | 29,898 | |
Interest rate swap, floating to fixed | Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liability derivatives, fair value | $ 0 | |
Interest rate swap, fixed to floating | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held | instrument | 3 | |
Aggregate notional amount | $ 250,000 | |
Interest rate swap, fixed to floating | Not Designated as Hedging Instrument | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset derivatives, fair value | 0 | |
Interest rate swap, fixed to floating | Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liability derivatives, fair value | $ (3,035) | |
Interest rate swap, forward starting | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments held | instrument | 1 | |
Aggregate notional amount | $ 50,000 | |
Interest rate swap, forward starting | Not Designated as Hedging Instrument | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset derivatives, fair value | 3,333 | |
Interest rate swap, forward starting | Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liability derivatives, fair value | $ 0 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of VIEs Consolidated by the AIR Operating Partnership (Details) | 3 Months Ended | |
Sep. 30, 2023 apartment | Dec. 31, 2022 apartment | |
Joint Venture Partner | ||
Variable Interest Entity [Line Items] | ||
Apartment communities owned by VIEs | 175 | |
Apartment homes in communities owned by VIEs | 328 | |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
VIEs with interests in apartment communities | 3 | 5 |
Apartment communities owned by VIEs | 14 | 16 |
Apartment homes in communities owned by VIEs | 4,866 | 5,369 |
Equity method investment, ownership interest sold | 47% |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Net real estate | $ 5,403,085 | $ 5,626,511 |
Cash and cash equivalents | 106,630 | 95,797 |
Restricted cash | 27,540 | 205,608 |
Other assets, net | 477,612 | 549,821 |
LIABILITIES: | ||
Non-recourse property debt, net | 2,231,238 | 1,985,430 |
Accrued liabilities and other | 483,147 | 513,805 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Net real estate | 1,024,555 | 1,066,482 |
Cash and cash equivalents | 42,133 | 54,319 |
Restricted cash | 1,970 | 2,378 |
Other assets, net | 21,216 | 20,944 |
LIABILITIES: | ||
Non-recourse property debt, net | 1,200,279 | 1,212,065 |
Accrued liabilities and other | $ 40,007 | $ 35,365 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Parkmerced Investment | ||
Variable Interest Entity [Line Items] | ||
Mezzanine investment | $ 158.3 | $ 158.7 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2023 property apartment Segment | Dec. 31, 2022 property | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Other Real Estate | ||
Segment Reporting Information [Line Items] | ||
Apartment communities owned by VIEs | 12 | |
Apartment homes in communities owned by VIEs | apartment | 3,829 | |
Expect to Sell or Lease to Third Party | ||
Segment Reporting Information [Line Items] | ||
Apartment communities owned by VIEs | 4 | |
Same Store | ||
Segment Reporting Information [Line Items] | ||
Apartment communities owned by VIEs | 63 | |
Apartment homes in communities owned by VIEs | apartment | 22,794 | |
Wholly Owned Consolidated Properties | Other Real Estate | ||
Segment Reporting Information [Line Items] | ||
Apartment communities owned by VIEs | 4 | 4 |
Business Segments - Summary of
Business Segments - Summary of Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Summary information for the reportable segments | ||||
Total revenues | $ 197,307 | $ 200,871 | $ 623,677 | $ 565,849 |
Other operating expenses not allocated to segments | 100,695 | 110,290 | 320,567 | 300,720 |
Total operating expenses | 158,771 | 174,299 | 510,689 | 477,399 |
Proportionate property net operating income (loss) | 38,536 | 26,572 | 112,988 | 88,450 |
Other items included in income (loss) before income tax expense | 676,571 | (23,130) | 594,085 | 528,955 |
Income before income tax expense | 715,107 | 3,442 | 707,073 | 617,405 |
Real Estate | ||||
Summary information for the reportable segments | ||||
Property operating expenses | 58,076 | 64,009 | 190,122 | 176,679 |
Segment Reconciling Items | ||||
Summary information for the reportable segments | ||||
Total revenues | 11,981 | 32,402 | 80,124 | 93,187 |
Other operating expenses not allocated to segments | 0 | 0 | 0 | 0 |
Total operating expenses | 9,076 | 13,468 | 37,850 | 38,559 |
Proportionate property net operating income (loss) | 2,905 | 18,934 | 42,274 | 54,628 |
Other items included in income (loss) before income tax expense | 0 | 0 | 0 | 0 |
Income before income tax expense | 2,905 | 18,934 | 42,274 | 54,628 |
Segment Reconciling Items | Real Estate | ||||
Summary information for the reportable segments | ||||
Property operating expenses | 9,076 | 13,468 | 37,850 | 38,559 |
Corporate Non-Segment | ||||
Summary information for the reportable segments | ||||
Total revenues | 4,164 | 12,435 | 11,568 | 45,173 |
Other operating expenses not allocated to segments | 100,695 | 110,290 | 320,567 | 300,720 |
Total operating expenses | 101,184 | 118,699 | 327,815 | 321,725 |
Proportionate property net operating income (loss) | (97,020) | (106,264) | (316,247) | (276,552) |
Other items included in income (loss) before income tax expense | 676,571 | (23,130) | 594,085 | 528,955 |
Income before income tax expense | 579,551 | (129,394) | 277,838 | 252,403 |
Corporate Non-Segment | Real Estate | ||||
Summary information for the reportable segments | ||||
Property operating expenses | 489 | 8,409 | 7,248 | 21,005 |
Same Store | Operating Segments | ||||
Summary information for the reportable segments | ||||
Total revenues | 151,619 | 142,009 | 445,881 | 411,052 |
Other operating expenses not allocated to segments | 0 | 0 | 0 | 0 |
Total operating expenses | 40,353 | 37,349 | 117,014 | 111,316 |
Proportionate property net operating income (loss) | 111,266 | 104,660 | 328,867 | 299,736 |
Other items included in income (loss) before income tax expense | 0 | 0 | 0 | 0 |
Income before income tax expense | 111,266 | 104,660 | 328,867 | 299,736 |
Same Store | Operating Segments | Real Estate | ||||
Summary information for the reportable segments | ||||
Property operating expenses | 40,353 | 37,349 | 117,014 | 111,316 |
Other Real Estate | Operating Segments | ||||
Summary information for the reportable segments | ||||
Total revenues | 29,543 | 14,025 | 86,104 | 16,437 |
Other operating expenses not allocated to segments | 0 | 0 | 0 | 0 |
Total operating expenses | 8,158 | 4,783 | 28,010 | 5,799 |
Proportionate property net operating income (loss) | 21,385 | 9,242 | 58,094 | 10,638 |
Other items included in income (loss) before income tax expense | 0 | 0 | 0 | 0 |
Income before income tax expense | 21,385 | 9,242 | 58,094 | 10,638 |
Other Real Estate | Operating Segments | Real Estate | ||||
Summary information for the reportable segments | ||||
Property operating expenses | $ 8,158 | $ 4,783 | $ 28,010 | $ 5,799 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 6,399,249 | $ 6,551,883 |
Corporate Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 704,290 | 730,391 |
Same Store | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 4,119,544 | 4,610,356 |
Other Real Estate | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 1,575,415 | $ 1,211,136 |
Business Segments - Capital Add
Business Segments - Capital Additions Related to Segments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||
Total capital additions | $ 128,374 | $ 111,190 |
Same Store | ||
Segment Reporting Information [Line Items] | ||
Total capital additions | 114,844 | 109,768 |
Other Real Estate | ||
Segment Reporting Information [Line Items] | ||
Total capital additions | $ 13,530 | $ 1,422 |