AIMCO Clarifies Impact of SEC Interpretation

In response to an inquiry about the impact of the SEC's July 31interpretation of FASB-EITF Topic D-42, "The Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock" on AIMCO's previously announced preferred stock redemptions, AIMCO indicated that the accounting change would not affect its expected net income.

Under the SEC's interpretation, in connection with redemption of preferred securities, the issuance costs of the preferred securities must be treated like a preferred dividend and deducted from net income to arrive at net income attributable to common stockholders.

This change applies beginning with AIMCO's third quarter reporting period and is required to be reflected retroactively in the financial statements of prior periods.

Applying this treatment to previously announced preferred stock redemptions will reduce net income attributable to common stockholders, and therefore earnings per share, funds from operations and adjusted funds from operations.