Short answer
Apartment Investment & Management Co (AIV) filed its fiscal 2015 10-K annual report with the SEC on Feb 29, 2016.
- Top risk flagged: Government housing subsidy exposure: $73.4 million rental revenues in 2015, with 14.5% tied to contracts expiring in late 2015 or 2016
Apartment Investment & Management Co FY2015 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- REIT owning, managing, redeveloping and selectively developing quality apartments in coastal and job-growth U.S. markets
- Portfolio comprised 49,149 apartment homes across conventional and affordable reportable segments
- Strategic portfolio upgrade: selling lower-quality assets and reinvesting proceeds into upgrades, redevelopment and higher-quality communities
- Leverage structure: 93% property-level non-recourse debt and 6% perpetual preferred equity at December 31, 2015
- 1,591 employees, including 1,108 apartment-community personnel; third consecutive Denver Post Top Workplace recognition in 2015
Management Discussion & Analysis
- Property revenue $894.9M, up 8.6% YoY, with conventional NOI $534.7M, up 10.4%
- Conventional segment best performer: NOI $534.7M, up 10.4%; affordable NOI $58.1M, up 3.5%
- Conventional operating margin 67%, free cash flow margin 60%; same-store NOI margin 68.5% vs 67.9%
- Operating cash flow $359.9M; capital expenditures $367.2M, including $117.8M redevelopment and $115.6M development
- Dividends and distributions $252.6M; 2016 redevelopment and development spending guidance $180M to $220M, with financing availability as a liquidity risk
Risk Factors
- Government housing subsidy exposure: $73.4 million rental revenues in 2015, with 14.5% tied to contracts expiring in late 2015 or 2016
- Boston development concentration: $180 million to $220 million planned 2016 redevelopment and development investment
- Financing risk: $111.9 million variable-rate debt, with 100-basis-point LIBOR increase reducing annual net income by $0.9 million
- REIT compliance risk: PATH Act reducing permitted taxable REIT subsidiary assets from 25% to 20% beginning 2018
- Leadership dependency: CEO Terry Considine and senior management retention without key-person life insurance
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