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Aimco (AIV) Q1 Net Income & Revenues Rise Y/Y, NOI Declines
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Apartment Investment and Management Company (AIV - Free Report) , commonly known as Aimco, reported a first-quarter 2021 net income per share of 14 cents, significantly up from 3 cents reported in the year-ago quarter.
Unrealized gains on interest rate options and revenue growth supported results. In fact, first-quarter rental and other property revenues of $38.6 million were 3.9% higher than the prior-year quarter’s $38.3 million.
In first-quarter 2021, Aimco collected 97.5% of residential rents due. It recognized 98.4% of revenues and reserved 160 basis points (bps) as bad debt.
Behind the Headlines
For first-quarter, 2021, revenues (before utility reimbursements) from the company’s operating portfolio slid 2% year over year to $32.7 million, while expenses (net of utility reimbursements) flared up 6.3% to $11.2 million. Consequently, net operating income (NOI) declined 5.8% year over year to $21.5 million.
Average daily occupancy at the company’s operating multifamily communities sequentially improved 70 bps to 97.6% for the first quarter.
Its office building in Miami, FL — 1001 Brickell Bay Drive — is currently 72.4% occupied and the company collected 100% of rents due in the first quarter.
Portfolio Activity
In first-quarter 2021, it acquired a 1.5-acre land in Aurora, CO, and purchase options for an additional 5.2 acres, for $6.2 million. The 1.5-acre land sits on the Anschutz Medical Campus and will be developed as The Benson Hotel and Faculty Club. The purchase option will accommodate more than 750,000 square feet of development.
In the reported quarter, it invested around $45.8 million in its development and redevelopment projects.
Liquidity
As of Mar 31, 2021, Aimco’s total liquidity of $385.3 million consisted of cash on hand and restricted cash of $226.1 million and $9.2 million, respectively, as well as a borrowing capacity of $150 million under its revolving credit facility.
Essex Property Trust Inc. (ESS - Free Report) reported first-quarter 2021 core FFO per share of $3.07, beating the Zacks Consensus Estimate of $3.04. The figure also surpassed the mid-point of the company’s first-quarter 2021 guidance by 4 cents per share. Sequentially, the company experienced lower cash concessions and delinquency, leading to a marginal improvement in same-property gross revenues and NOI.
UDR Inc. (UDR - Free Report) reported first-quarter 2021 FFO as adjusted per share of 47 cents, missing the Zacks Consensus Estimate of 48 cents. Also, the figure is lower than the prior year’s 54 cents. Results reflect the adverse impacts of the coronavirus pandemic. A decline in revenues from mature communities affected top-line growth.
Equity Residential’s (EQR - Free Report) first-quarter 2021 normalized FFO per share of 68 cents was in line with the Zacks Consensus Estimate. Rental income of $597.6 million surpassed the consensus mark of $586.8 million. However, on a year-over-year basis, normalized FFO per share declined 21.8% and rental income fell 12.4%, reflecting the adverse impacts of the pandemic on its business.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Aimco (AIV) Q1 Net Income & Revenues Rise Y/Y, NOI Declines
Apartment Investment and Management Company (AIV - Free Report) , commonly known as Aimco, reported a first-quarter 2021 net income per share of 14 cents, significantly up from 3 cents reported in the year-ago quarter.
Unrealized gains on interest rate options and revenue growth supported results. In fact, first-quarter rental and other property revenues of $38.6 million were 3.9% higher than the prior-year quarter’s $38.3 million.
In first-quarter 2021, Aimco collected 97.5% of residential rents due. It recognized 98.4% of revenues and reserved 160 basis points (bps) as bad debt.
Behind the Headlines
For first-quarter, 2021, revenues (before utility reimbursements) from the company’s operating portfolio slid 2% year over year to $32.7 million, while expenses (net of utility reimbursements) flared up 6.3% to $11.2 million. Consequently, net operating income (NOI) declined 5.8% year over year to $21.5 million.
Average daily occupancy at the company’s operating multifamily communities sequentially improved 70 bps to 97.6% for the first quarter.
Its office building in Miami, FL — 1001 Brickell Bay Drive — is currently 72.4% occupied and the company collected 100% of rents due in the first quarter.
Portfolio Activity
In first-quarter 2021, it acquired a 1.5-acre land in Aurora, CO, and purchase options for an additional 5.2 acres, for $6.2 million. The 1.5-acre land sits on the Anschutz Medical Campus and will be developed as The Benson Hotel and Faculty Club. The purchase option will accommodate more than 750,000 square feet of development.
In the reported quarter, it invested around $45.8 million in its development and redevelopment projects.
Liquidity
As of Mar 31, 2021, Aimco’s total liquidity of $385.3 million consisted of cash on hand and restricted cash of $226.1 million and $9.2 million, respectively, as well as a borrowing capacity of $150 million under its revolving credit facility.
The company currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apartment Investment and Management Company Price, Consensus and EPS Surprise
Apartment Investment and Management Company price-consensus-eps-surprise-chart | Apartment Investment and Management Company Quote
Performance of Other Residential REITs
Essex Property Trust Inc. (ESS - Free Report) reported first-quarter 2021 core FFO per share of $3.07, beating the Zacks Consensus Estimate of $3.04. The figure also surpassed the mid-point of the company’s first-quarter 2021 guidance by 4 cents per share. Sequentially, the company experienced lower cash concessions and delinquency, leading to a marginal improvement in same-property gross revenues and NOI.
UDR Inc. (UDR - Free Report) reported first-quarter 2021 FFO as adjusted per share of 47 cents, missing the Zacks Consensus Estimate of 48 cents. Also, the figure is lower than the prior year’s 54 cents. Results reflect the adverse impacts of the coronavirus pandemic. A decline in revenues from mature communities affected top-line growth.
Equity Residential’s (EQR - Free Report) first-quarter 2021 normalized FFO per share of 68 cents was in line with the Zacks Consensus Estimate. Rental income of $597.6 million surpassed the consensus mark of $586.8 million. However, on a year-over-year basis, normalized FFO per share declined 21.8% and rental income fell 12.4%, reflecting the adverse impacts of the pandemic on its business.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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