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AIV NYSE· Apartment Investment and Management Company
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AIV NYSE· Apartment Investment and Management Company
Earnings report Q3 2023

AIV Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Aimco (AIV) reported revenue of $37.7 million for its Operating segment, representing a 6.4% increase compared to the same period last year. This growth was primarily driven by a $158 increase in average monthly revenue per apartment home, which reached $2,358. However, it was partially offset by a 75-basis point decrease in Average Daily Occupancy to 95.2%.

Strengths

Aimco's revenue growth in the latest quarter can be attributed to the significant increase in average monthly revenue per apartment home. This indicates that the company has been successful in implementing strategies to increase rental rates. Additionally, Aimco's diversified portfolio of stabilized apartment communities located in major U.S. markets, with average rents in line with local market averages, provides stability and potential for sustained revenue growth.

Challenges

Despite the overall revenue growth, Aimco also faced challenges in the latest quarter. Expenses for the Operating segment increased by 3.5% year-over-year, primarily due to higher insurance costs. However, the impact of these increased expenses was largely offset by favorable real estate tax valuations in Chicago, which successfully appealed the prior unfavorable real estate tax valuation in Miami.

Noteworthy

Aimco's net operating income for the Operating segment in the latest quarter was $27.0 million, reflecting a 7.6% year-over-year increase. This indicates that the company was able to effectively manage expenses and generate higher income from its operations. Furthermore, Aimco maintained a strong balance sheet with ample liquidity, including access to $320.2 million in liquidity as of September 30, 2023.

Summary

Aimco delivered a strong performance in terms of revenue growth in the latest quarter. The company's focus on increasing average monthly revenue per apartment home resulted in a 6.4% increase in revenue for the Operating segment. Despite facing challenges such as higher expenses, Aimco successfully managed to offset them through favorable real estate tax valuations. The company's net operating income also saw a healthy year-over-year increase. Overall, Aimco's diversified portfolio and strong balance sheet position it well for continued growth and financial stability.

Source documents

Form 10-Q  filed on Nov 06, 2023
124 pages scanned

Reference data

Company financials Q3 revenue 49.6M
Analyst estimates Q3 EPS missed by NaN%
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