Its funds from operations, one of the most important measures of a REIT's health, rose to $510 million last year, or $4.64 per share, compared with $118.4 million, or $1.05 per diluted share in 2001. In the fourth quarter, its FFO amounted to $118.4 million, or $1.05 per share, compared with $133.6 million, or $1.30 per share.

However, much of its good performance came from sales, a trend expected to continue this year. "Same Store" revenues, for example, were $277 million, down $10 million or 3.5%, from the prior year due to lower average rents, lower occupancy and increased bad debt, somewhat offset by ancillary income, the company says.

"The weak economy continued to affect negatively the multifamily real estate sector, and Aimco was no exception," says Peter Kompaniez, president of the REIT. "Aimco experienced further declines in occupancy and continued to face downward pressure on rent levels in certain markets, particularly in Atlanta, Denver, Charlotte and Phoenix. "

On the other hand, he says the company is geographically and price point diversified, which he said will help to mitigate the effects of the economy. The company has benefited from expanding into New England and Southern California, which are relatively strong markets, he notes. Last year, AIMCO bought the Casden portfolio, making it one of the largest apartment owners in southern California.

AIMCO has been raising cash by selling some of its holdings, notes Terry Considine, AIMCO'' chairman and CEO."AIMCO continues to upgrade its portfolio by the sale of lower rated assets." Considine says. In the fourth quarter, he notes, it sold $218 million in properties and $522 million in all of 2002.

"Aimco expects such sales to total as much as $1.3 billion during 2003 and to generate as much as $300 million in net proceeds that will be applied to repayment of short-term debt and reinvestment in long-term hold properties through Capital Enhancement and redevelopment spending," Considine says.