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Investing in Apartment Investment & Management Company

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A peek into AIMCO’s history

Headquartered in Denver, Colorado, Apartment Investment & Management Company (or AIMCO) (AIV) is a self-administered and self-managed REIT. The company was incorporated in January 1994 and listed on the NYSE. AIMCO is part of the S&P 500 Index and is one of the largest owners and operators of apartment communities in the United States.

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Business interest

AIMCO’s (AIV) business is focused on the ownership, management, and redevelopment of apartment communities in the largest coastal and job growth markets of the United States. As of December 31, 2014, AIMCO’s real estate portfolio consisted of 203 apartment communities with 52,336 apartment homes held through its subsidiaries, including the operating partnership, and consolidated joint ventures.

Competitors

AIMCO (AIV) is the seventh largest apartment REIT in the United States with a market capitalization of $5.8 billion. The company competes for rental properties with a number of other apartment REITs in the United States.

Competition also comes from other forms of rental properties and single-family housing that provide housing alternatives to potential residents of multi-family properties. Apartment REITs also compete on the residents’ decision of owning a home or renting an apartment. When home prices are high, renting becomes more attractive, and vice versa.

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Major competitors of AIMCO (AIV) in the apartment REIT space include Chicago-based Equity Residential (EQR), California-based Essex Property Trust (ESS), Virginia-based AvalonBay Communities (AVB), Colorado-based UDR (UDR), Texas-based Camden Property Trust (CPT), and Tennessee-based Mid-America Apartment Communities (MAA). The SPDR Dow Jones REIT ETF (RWR) invests 1.0% of its portfolio in AIMCO (AIV).

Series content

In this series, we’ll cover the following topics:

  • Investing in Apartment Investment & Management Company
  • A Closer Look into AIMCO’s Apartment Business
  • An Overview of AIMCO’s Geographic Coverage
  • A Look at AIMCO’s Diversified Renter Base
  • How Property Redevelopment Adds Value to AIMCO’s Portfolio
  • How AIMCO Plans to Create Value through Strategic Initiatives
  • Why AIMCO Has Reported Subdued Revenue Growth in Recent Years
  • AIMCO’s Improving EBITDA Margin Is Still Below Industry Average
  • AIMCO Reported Highest Funds from Operations in 2014
  • AIMCO Offers Steady Dividends to Shareholders
  • Why AIMCO Has Higher Leverage Despite Recent Debt Reduction
  • Why AIMCO Trades at a Lower Price-to-FFO Multiple Than Its Peers
  • What Does AIMCO’s Lower EV-EBITDA Multiple Mean to Investors?
  • How Can You Invest in AIMCO through ETFs?
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