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Apartment Investment & Management Co.

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Shares of Aimco underperformed the industry year to date. However, over the past 30 days, the second-quarter funds from operations (FFO) per share estimate remained unchanged, while the same for full-year 2017 moved north. Recently, Aimco announced the acquisition of 47% stake in the Palazzo joint venture owned by institutional investors. The $451.5 million deal enabled the residential REIT gain full ownership of three Palazzo communities. It is in sync with Aimco’s strategy of revamping its portfolio through property sales and reinvesting the proceeds in select apartment homes with higher rents, superior margins and higher-than-expected growth. Also, the company’s solid portfolio, diversified in terms of geography, and price point and improving balance sheet are anticipated to drive growth. However, growth in supply and dilutive effects of sale of assets remain concerns.

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