Aimco Closes Previously Reported Asset Sales and Announces Special Dividend

Rhea-AI Summary

Apartment Investment and Management Company (NYSE: AIV) has completed the sale of two Miami properties for $204 million in Q4 2024. The sale included their interest in 3333 Biscayne Boulevard development site and The Hamilton in the Edgewater neighborhood. The transaction resulted in the retirement of $110 million of debt with an 8.6% weighted average rate and generated net proceeds of $90 million.

Following this sale, Aimco's Board has declared a special cash dividend of $0.60 per share, payable on January 31, 2025, to shareholders of record as of January 14, 2025. The company's CEO, Wes Powell, highlighted this as an important milestone, noting the value creation through redevelopment and planning efforts since their initial 2020 investment in the area.

Positive

• Sale of Miami properties generated $204 million in gross proceeds
• Retired $110 million of high-interest debt (8.6% rate)
• Special dividend of $0.60 per share announced
• Net proceeds of $90 million from property sales

Negative

• Divestment of potentially appreciating Miami real estate assets

News Market Reaction

+2.99%

1 alert

+2.99% News Effect

On the day this news was published, AIV gained 2.99%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

DENVER, Dec. 19, 2024 /PRNewswire/ -- Apartment Investment and Management Company ("Aimco") (NYSE: AIV) announced today that it has successfully closed on the sale of its interest in two investments in the Edgewater neighborhood of Miami, Florida. Aimco's investment in the development site at 3333 Biscayne Boulevard and The Hamiton were sold during the fourth quarter of 2024 for a gross price of $204 million. At the time of closing Aimco retired $110 million of debt, previously carrying a weighted average rate of 8.6%, and received net proceeds of approximately $90 million.

Aimco previously stated that it planned to return the net proceeds from these sales to shareholders during the first quarter of 2025. As such, on December 19, 2024, Aimco's Board of Directors declared a special cash dividend in the amount of $0.60 per share to be paid on January 31, 2025, to holders of record as of January 14, 2025.

"These sales represent an important milestone for Aimco and our shareholders," said Wes Powell, Aimco's President and CEO. "Following our initial investment in Miami's Edgewater neighborhood in 2020, the Aimco team created value through the transformative redevelopment of The Hamilton and the assemblage, planning and entitlement of 3333 Biscayne Boulevard. I wish the owners of these properties great success and welcome the opportunity to return capital to Aimco shareholders."

About Aimco
Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco's mission is to make real estate investments where outcomes are enhanced through its human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV. For more information about Aimco, please visit its website www.aimco.com.

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SOURCE Apartment Investment and Management Company (Aimco)

FAQ

When will Aimco (AIV) pay its special dividend of $0.60 per share?

Aimco will pay the special dividend of $0.60 per share on January 31, 2025, to shareholders of record as of January 14, 2025.

How much debt did Aimco (AIV) retire from the Miami property sales?

Aimco retired $110 million of debt that carried a weighted average interest rate of 8.6%.

What was the total sale price of Aimco's Miami Edgewater properties?

The total gross sale price for Aimco's interests in 3333 Biscayne Boulevard and The Hamilton properties was $204 million.

What is the net proceeds amount from Aimco's Q4 2024 Miami property sales?

Aimco received net proceeds of approximately $90 million from the sale of its Miami properties.

Which properties did Aimco (AIV) sell in Miami's Edgewater neighborhood?

Aimco sold its interests in the development site at 3333 Biscayne Boulevard and The Hamilton property.