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Aimco details Q4'17, Q1'18 property sales

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Aimco details Q4'17, Q1'18 property sales

Apartment Investment and Management Co. received net proceeds of $381 million from the sale of five lower-rated apartment properties in the 2017 fourth quarter. The properties are in Washington, D.C.; Philadelphia; southern New Jersey; and southern Virginia.

The apartment landlord also said that to settle legal actions filed in 2014, it agreed to sell its interests in entities that own the La Jolla Cove property in La Jolla, Calif. The company agreed to sell the property at roughly its purchase price, on an economic basis, adjusted for retained cash distributions and avoided legal costs. The case was brought by "disappointed buyers who had hoped to acquire the property," according to Aimco.

The company recognized a gross impairment loss in 2017 of $35.8 million due to the settlement. Of that amount, $25.6 million relates to the establishment of a deferred tax liability assumed at acquisition of the property. The buyer will assume the tax liability at closing. The $10.2 million accounting loss remaining is offset by cash distributions paid to Aimco during its ownership and avoided legal costs from continued litigation.

Further, the company in January sold three apartment communities in southern Virginia and suburban Maryland, receiving net proceeds of $65 million.

The company used proceeds from 2017 and 2018 sales to pay down its revolving credit facility, effectively funding the equity portion of its re-acquisition of 100% of the Palazzo joint venture, which includes three properties, and its 2017 redevelopment and development activities.

Aimco also said it closed or rate-locked two nonrecourse, fixed-rate property loans totaling $189 million in the 2017 fourth quarter. The loans have a weighted average term and interest rate of 7.7 years and 3.48%, respectively.