# EDGAR Filing Document

**Accession Number:** 0000922864
**File Stem:** 0000950170-25-081681
**Filing Date:** 2025-6
**Character Count:** 14009
**Document Hash:** 4747d5e3e344dce1d22f37ac0c587588
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-081681.hdr.sgml**: 20250822

**ACCESSION NUMBER**: 0000950170-25-081681

**CONFORMED SUBMISSION TYPE**: CORRESP

**PUBLIC DOCUMENT COUNT**: 1

**FILED AS OF DATE**: 20250604

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** APARTMENT INVESTMENT & MANAGEMENT CO
- **CENTRAL INDEX KEY:** 0000922864
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 841259577
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** CORRESP

**BUSINESS ADDRESS:**
- **STREET 1:** 4582 SOUTH ULSTER STREET
- **STREET 2:** SUITE 1450
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80237
- **BUSINESS PHONE:** (303) 224-7900

**MAIL ADDRESS:**
- **STREET 1:** 4582 SOUTH ULSTER STREET
- **STREET 2:** SUITE 1450
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80237

June 4, 2025

<u>Via EDGAR</u>

U.S. Securities and Exchange Commission

Division of Corporation Finance

Office of Real Estate & Construction

100 F Street, N.E.

Washington, D.C. 20549

Attention: William Demarest and Kristina Marrone

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Re: Apartment Investment and Management Company**

**Form 10-K for the year ended December 31, 2024**

**Form 8-K filed February 24, 2025**

**File No. 001-13232**

Dear William Demarest and Kristina Marrone:

This letter responds to the comments that Apartment Investment and Management Company (the "Company", "we", or "our") received from the staff (the "Staff") of the U.S. Securities and Exchange Commission (the "Commission") by letter dated May 27, 2025, relating to the above-referenced filings. For reference, Staff comments have been included in italic, bold face type, followed by our responses in standard type.

***<u>Form 10-K for the year ended December 31, 2024</u>***

***<u>Note 14 – Business Segments, page F-42</u>***

***1.*** ***Please tell us how you have complied with ASC 280-10-50-26A in reporting significant expense categories regularly reported to your CODM.***

The Company acknowledges the Staff's comment. We respectfully advise the Staff that before adoption of Accounting Standards Update ("ASU") No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,* we disclosed "Property operating expenses" as a single line item representing an aggregation of all segment expenses. An example of this disclosure before adoption of ASU 2023-07, as presented within our Form 10-Q for the quarter ended September 30, 2024, filed with the Commission on November 7, 2024, is depicted below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Development and Redevelopment** | **Operating** | **Other** | **Proportionate <br>and Other Adjustments**<sup>(1)</sup> | **Corporate and Amounts Not Allocated to Segments**<sup>(2)</sup> | **Consolidated** |
| Three Months Ended September 30, 2024 |  |  |  |  |  |  |
| Rental and other property revenues | $6631 | $39281 | $4979 | $2267 | $— | $**53158** |
| Property operating expenses | 3940 | 11883 | 3829 | 2276 | 1409 | **23337** |
| Other operating expenses not allocated <br> to segments <sup>(3)</sup> |  |  |  |  | 31295 | **31295** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 3940 | 11883 | 3829 | 2276 | 32704 | **54632** |
| Proportionate property net operating <br> income (loss) | 2691 | 27398 | 1150 | (9) | (32704) | **(1474)** |
| Other items included in income before <br> income tax <sup>(4)</sup> |  |  |  |  | (22405) | **(22405)** |
| **Income (loss) before income tax** | $**2691** | $**27398** | $**1150** | $**(9)** | $**(55109)** | $**(23879)** |

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After the adoption of ASU 2023-07, we separately identified "Controllable operating expenses", "Real estate taxes, net of capitalized amounts", "Utilities expense, net of utility reimbursements", and "Property insurance expense, net of capitalized amounts" as the significant expense categories included in property net operating income (loss), our reported segment profit or loss measure. Each of these significant segment expense categories is regularly reported to the Company's chief operating decision maker ("CODM") and disclosed within the table presenting the results of operations for each segment in compliance

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with ASC 280-10-50-26A. An example of this disclosure after adoption of ASU 2023-07, as presented within our Form 10-K for the year ended December 31, 2024, filed with the Commission on February 24, 2025, is depicted below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Development and Redevelopment** | **Operating** | **Other** | **Adjustments**<sup>(1)</sup> | **Corporate and Amounts Not Allocated to Segments** <sup>(2)</sup> | **Consolidated** |
| December 31, 2024 |  |  |  |  |  |  |
| Rental and other property revenues | $9852 | $140099 | $6690 | $7977 | $44061 | $**208679** |
| &nbsp;&nbsp;Controllable operating expenses<sup>(3)</sup> | 4527 | 18567 | 6746 |  | 6239 | **36079** |
| &nbsp;&nbsp;Real estate taxes, net of capitalized amounts | 1963 | 16653 | 593 |  | 7312 | **26521** |
| &nbsp;&nbsp;Utilities expense, net of utility reimbursements | 1959 | 3096 | 255 | 7977 | 1410 | **14697** |
| &nbsp;&nbsp;Property insurance expense, net of capitalized amounts | 1019 | 2773 | 118 |  | 2059 | **5969** |
| &nbsp;&nbsp;Other property operating expenses <sup>(4)</sup> |  |  |  |  | 7718 | **7718** |
| Property operating expenses | 9468 | 41089 | 7712 | 7977 | 24738 | **90984** |
| Property net operating income (loss) | 384 | 99010 | (1022) |  | 19323 | **117695** |
| Other operating expenses not allocated to segments <sup>(5)</sup> |  |  |  |  | (119196) | **(119196)** |
| Other items included in income before <br> income tax <sup>(6)</sup> |  |  |  |  | (105570) | **(105570)** |
| **Income (loss) before income tax** | $**384** | $**99010** | $**(1022)** | $**—** | $**(205443)** | $**(107071)** |

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"Controllable operating expenses", "Real estate taxes, net of capitalized amounts", "Utilities expense, net of utility reimbursements", and "Property insurance expense, net of capitalized amounts" represented 40%, 29%, 16%, and 7%, respectively, of consolidated *Property operating expenses* for the year ended December 31, 2024, presented in the *Consolidated Statements of Operations*. The remaining 8% was presented in the "Other property operating expenses" line, with disclosure of its components, to reconcile to consolidated *Property operating expenses* presented in the *Consolidated Statements of Operations*. The CODM uses "Controllable operating expenses", "Real estate taxes, net of capitalized amounts", "Utilities expense, net of utility reimbursements", and "Property insurance expense, net of capitalized amounts" to manage operations and is not routinely provided further disaggregation of these significant expense categories.

***<u>Form 8-K filed February 24, 2025</u>***

***<u>Exhibits</u>***

***2.*** ***We note that throughout your earnings release and supplemental schedules filed as Exhibit 99.1, you include disclosures related to the non-GAAP measures net operating income and property net operating income. In future filings please include a reconciliation of these measures to the most directly comparable GAAP measure.***

The Company acknowledges the Staff's comment. In future earnings releases and supplemental schedules, we will present a reconciliation of income (loss) before income tax benefit to property net operating income. We will also revise our disclosures to consistently reference property net operating income as the defined term, which previously had been used interchangeably with net operating income. An example of our proposed revised disclosure based on our earnings release and supplemental schedules filed as Exhibit 99.1 to the Form 8-K furnished to the Commission on February 24, 2025, is as follows:

PROPERTY NET OPERATING INCOME (NOI): Property NOI is defined by Aimco as total rental and other property revenues, excluding utility reimbursements, less property operating expenses, including utility reimbursements, for the consolidated apartment communities. Property NOI does not include: property management revenues, primarily from affiliates; casualties; property management expenses; depreciation; or interest expense. Aimco evaluates the performance of the apartment communities in its segments using Property NOI, which includes the apartment communities that Aimco consolidates and excludes apartment communities that it does not consolidate. Property NOI is helpful because it helps both investors and management to understand the operating performance of real estate excluding costs associated with decisions about acquisition pricing, overhead allocations, and financing arrangements.

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The following table presents the reconciliation of GAAP income (loss) before income tax benefit to total Property NOI, as well as Property NOI for our Stabilized Operating apartment communities as presented on Supplemental Schedule 6 to total Property NOI.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Property NOI reconciliation** |  |  |  |  |
| (dollars in thousands) (unaudited) |  |  |  |  |
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
|  | **2024** | **2023** | **2024** | **2023** |
| Income (loss) before income tax benefit per Consolidated Statements of Operations | $(9976) | $(155296) | $(107071) | $(170071) |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 21236 | 17728 | 86359 | 68834 |
| &nbsp;&nbsp;General and administrative expenses | 8961 | 8379 | 32837 | 32865 |
| &nbsp;&nbsp;Interest income | (2171) | (2709) | (9652) | (9731) |
| &nbsp;&nbsp;Interest expense | 20835 | 10085 | 70057 | 37718 |
| &nbsp;&nbsp;Mezzanine (income) loss, net | 548 | 154801 | 2432 | 155814 |
| &nbsp;&nbsp;Realized and unrealized (gains) losses on interest rate contracts | (588) | 2161 | (1752) | (1119) |
| &nbsp;&nbsp;Realized and unrealized (gains) losses on equity investments | 1403 | (535) | 49504 | (700) |
| &nbsp;&nbsp;Gain on dispositions of real estate | (10749) | (6106) | (10600) | (7984) |
| &nbsp;&nbsp;Other (income) expense | 779 | 1779 | 5581 | 7657 |
| **Total Property NOI** | $30279 | $30287 | $117695 | $113283 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Segment Property NOI reconciliation** |  |  |  |  |
| (dollars in thousands) (unaudited) |  |  |  |  |
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
|  | **2024** | **2023** | **2024** | **2023** |
| Rental income: |  |  |  |  |
| &nbsp;&nbsp;Stabilized Operating | $35539 | $34339 | $140099 | $134078 |
| &nbsp;&nbsp;Stabilized Operating utilities reimbursement [1] | 1721 | 1560 | 6506 | 5706 |
| &nbsp;&nbsp;Other Real Estate | 1802 | 1251 | 6690 | 2691 |
| &nbsp;&nbsp;Non-stabilized and other amounts not allocated [2] | 15109 | 12202 | 55384 | 44520 |
| Total rental income | 54171 | 49352 | 208679 | 186995 |
| Property operating expenses: |  |  |  |  |
| &nbsp;&nbsp;Stabilized Operating | 9591 | 9517 | 41089 | 39356 |
| &nbsp;&nbsp;Stabilized Operating utilities reimbursement [1] | 1721 | 1560 | 6506 | 5706 |
| &nbsp;&nbsp;Other Real Estate | 1969 | 1348 | 7712 | 4710 |
| &nbsp;&nbsp;Non-stabilized and other amounts not allocated [2] | 10611 | 6640 | 35677 | 23940 |
| Total property operating expenses: | 23892 | 19065 | 90984 | 73712 |
| Property NOI: |  |  |  |  |
| &nbsp;&nbsp;Stabilized Operating | 25948 | 24822 | 99010 | 94722 |
| &nbsp;&nbsp;Other Real Estate | (167) | (97) | (1022) | (2019) |
| &nbsp;&nbsp;Non-stabilized and other amounts not allocated [2] | 4498 | 5562 | 19707 | 20580 |
| **Total Property NOI** | $30279 | $30287 | $117695 | $113283 |

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[1] Approximately two-thirds of Aimco's utility costs at stabilized properties are reimbursed by residents. Utility reimbursements are included in rental and other property revenues on Aimco's consolidated statements of operations prepared in accordance with GAAP. This adjustment represents the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results and as presented on Supplemental Schedule 6. Aimco also excludes the reimbursement amounts from the calculation of Average Revenue per Apartment Home throughout this Earnings Release and Supplemental Schedules.

[2] Properties not included in the Stabilized Operating Portfolio and other amounts not allocated includes operating results of properties not presented in the Stabilized Operation Portfolio as presented on Supplemental Schedule 6 during the periods shown, as well as property management and casualty expense, which are not included in property operating expenses, net of utility reimbursements in the Supplemental Schedule 6 presentation.

\*\*\*\*\*

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In connection with our response to the Staff's comments, we acknowledge that the Company and its management are responsible for the accuracy and adequacy of its disclosures, notwithstanding any review, comments, action or absence of action by the Staff.

We appreciate the Staff's comments and request that the Staff contact the undersigned by phone at (983) 888-0660 or by email at lynn.stanfield@aimco.com with any questions or comments regarding this letter.

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| | |
|:---|:---|
| Sincerely, | Sincerely, |
| APARTMENT INVESTMENT AND MANAGEMENT COMPANY | APARTMENT INVESTMENT AND MANAGEMENT COMPANY |
|  | /s/ H. Lynn C. Stanfield |
|  | H. Lynn C. Stanfield |
|  | Executive Vice President and Chief Financial Officer |

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cc: Julian T.H. Kleindorfer, Latham & Watkins LLP <br> Brent T. Epstein, Latham & Watkins LLP

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