Aimco Completes the Sale of Four Suburban Boston Assets and Announces Special Dividend

Rhea-AI Summary

Apartment Investment and Management Company (NYSE: AIV) has completed the sale of four suburban Boston properties for $490 million and declared a special cash dividend of $2.23 per share, payable October 15, 2025. The company's remaining Boston property, Royal Crest Estates (Nashua), is under contract for $250 million.

Additionally, Aimco's pending sale of two Miami Brickell assets for $520 million is expected to close in Q4 2025. Upon completion of all pending sales, Aimco will have executed $1.26 billion in dispositions in 2025, generating $785 million in net proceeds. The company plans to pay off $100 million in debt and return $4.00-$4.20 per share to stockholders.

Positive

• None.

Negative

• Significant reduction in property portfolio size
• If Brickell buyer uses seller financing, initial distribution would be reduced by $0.64 per share

Insights

Real Estate Investment Analyst

Aimco's $490M property sale and $2.23 special dividend represent significant value unlocking in its strategic asset disposition plan.

Aimco has successfully executed a $490 million sale of four suburban Boston properties to Harbor Group International, promptly returning $330 million ($2.23 per share) to shareholders via a special dividend. This transaction demonstrates efficient capital recycling and shareholder value prioritization.

The company's asset disposition strategy is progressing precisely as outlined in previous announcements. With the Royal Crest Estates (Nashua) sale expected to close within 30 days for $250 million and two Miami Brickell assets on track to sell in Q4 for $520 million, Aimco is poised to complete $1.26 billion in total 2025 dispositions. These sales will generate approximately $785 million in net proceeds after debt retirement.

Most importantly for shareholders, management intends to use these proceeds to pay down about $100 million in additional debt while returning $4.00-$4.20 per share to stockholders through special dividends. The current $2.23 dividend represents just the first distribution in this capital return plan.

The strategic review continues beyond these announced transactions, with management actively exploring additional portfolio sales or even a potential sale of the entire company. This comprehensive approach to unlocking shareholder value suggests the board recognizes potential disconnects between private market asset values and public market valuation.

Due to the significant size of the special dividend (exceeding 25% of share price), NYSE trading mechanics will utilize "due bills" to ensure proper dividend rights transfer during the relevant period. Tax implications appear straightforward with the distribution treated as capital gains for 2025 tax purposes.

DENVER, Sept. 15, 2025 /PRNewswire/ -- Apartment Investment and Management Company ("Aimco" or the "Company") (NYSE: AIV) announced today that it has closed on the sale of four properties located in suburban Boston for $490 million and the Aimco Board of Directors has declared a $2.23 per share special cash dividend to be paid on October 15, 2025, to stockholders of record as of September 30, 2025. Because the payment of the special dividend represents more than 25% of the price of the Company's common shares, the New York Stock Exchange (the "NYSE") has advised the Company that its common shares will trade with "due bills". More information on this process is included below.

Wes Powell, Aimco's President and CEO commented: "The timely execution of these asset sales and the associated distribution of proceeds to shareholders reemphasizes Aimco's commitment to unlocking and maximizing value for stockholders.  I offer my thanks to the buyer, Harbor Group International, for their professionalism and to both Morgan Stanley and Walker & Dunlop who advised Aimco on the transaction."

The four properties sold are known as Royal Crest Estates (Marlboro), Royal Crest Estates (Warwick), Waterford Village, and Wexford Village.  A portion of the sales proceeds were used to retire mortgage loans associated with Royal Crest Estates (Marlboro) and pay off in full the balance drawn on Aimco's revolving credit facility, which was retired upon completion of the sales.  Aimco is distributing approximately $330 million, $2.23 per share, to stockholders through the special dividend.

As previously announced, Aimco's only remaining property in the Boston market, Royal Crest Estates (Nashua), remains under contract with Harbor Group for sale at a price of $250 million and is expected to close within the next 30 days.

Additionally, Aimco's previously announced sale of two assets in the Brickell neighborhood of Miami, Florida, remains on track to close in the fourth quarter of 2025 for $520 million.  As previously announced, if pending sales are successfully completed, Aimco will close on $1.26 billion of dispositions in 2025 and generate approximately $785 million of net proceeds after retiring associated liabilities.  As a result of this activity, Aimco expects to pay off approximately $100 million of incremental debt and return between $4.00 and $4.20 per share to stockholders.^[1]

Finally, Aimco and its advisory team remain focused on further maximizing and unlocking stockholder value through additional strategic transactions, which may include the sale of additional components of the portfolio, individual asset sales, or a sale or merger of the Company as a whole.

There can be no assurance that the continued efforts will result in any transaction or transactions or other strategic changes or outcomes, and the timing or outcome of any such event is similarly uncertain. Aimco does not intend to disclose or comment on developments related to the foregoing unless or until it determines that further disclosure is appropriate or required.

^{[1] If the Brickell Assemblage buyer elects to utilize the seller financing option, the initial distribution would be reduced by approximately $0.64 per share pending the planned monetization of the seller financing note.}

NYSE Due Bills

Because the payment of the special dividend represents more than 25% of the price of the Company's common shares, the NYSE has advised the Company that its common shares will trade with "due bills" representing an assignment of the right to receive the special dividend from the record date of September 30, 2025 through the closing of trading on the NYSE on October 15, 2025, which is the payment date and the last day of trading before the October 16, 2025 ex-dividend date (this period of time representing the "Dividend Right Period").

Stockholders who sell their common shares during the Dividend Right Period will be selling their right to the special dividend, and such stockholders will not be entitled to receive the special dividend. Due bills obligate a seller of common shares to deliver the special dividend payable on such common shares to the buyer (the "Dividend Right"). The record date of September 30, 2025 will be used as the date for establishing the due bill tracking of the Dividend Right to the holder of common shares.

Due bill obligations are customarily settled between the brokers representing the buyers and the sellers of shares. The Company has no obligation for either the amount of the due bill or the processing of the due bill. Buyers and sellers of the Company's common shares should consult their brokers before trading to be sure they understand the effect of NYSE's due bill procedures.

Special Dividend Estimated Federal Income Tax Allocation

We currently estimate that 100% of the $2.23 per share dividend declared will be taxable and designated as capital gains distributions (Form 1099-Div Box 2a) and as Section 897 Capital Gain (Form 1099-Div Box 2f) on the stockholders' 2025 Forms 1099 and other tax statements. A portion of the amount designated may also be reported as Unrecaptured Section 1250 gain (Form 1099-Div Box 2b). Since taxable income is determined based on results for the entire 2025 tax year, actual results may significantly differ from current estimates.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations. Words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)," "forecast(s)," and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements, including those regarding the timing of asset sales and the timing and amount of capital expected to be returned to stockholders, are not guarantees of future performance, condition or results, and involve a number of known and unknown risks, uncertainties, and assumptions that may affect actual results or outcomes, including changes in market conditions, fluctuations in our stock price, our financial performance, regulatory changes, and general economic conditions. Readers should carefully review Aimco's financial statements and the notes thereto, as well as the section entitled "Risk Factors" in Item 1A of Aimco's Annual Report on Form 10-K for the year ended December 31, 2024, as these filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These forward-looking statements reflect management's judgment as of this date, and Aimco assumes no (and disclaims any) obligation to revise or update them to reflect future events or circumstances.

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

What is the amount of Aimco's (AIV) special dividend announced in September 2025?

Aimco announced a special cash dividend of $2.23 per share, payable on October 15, 2025, to stockholders of record as of September 30, 2025.

How much is Aimco (AIV) selling its Boston properties for in 2025?

Aimco sold four suburban Boston properties for $490 million and has one remaining property under contract for $250 million, totaling $740 million for the Boston portfolio.

What is the total value of Aimco's (AIV) planned asset sales in 2025?

Aimco expects to complete $1.26 billion in total dispositions in 2025, including Boston properties ($740 million) and Miami Brickell assets ($520 million).

How much will Aimco (AIV) return to shareholders from these asset sales?

Aimco plans to return between $4.00 and $4.20 per share to stockholders, subject to successful completion of pending sales.

When will Aimco's (AIV) special dividend be paid and what are the due bill details?

The special dividend will be paid on October 15, 2025. Due to its size, shares will trade with due bills during the dividend right period, meaning sellers during this period will transfer their right to receive the dividend to buyers.