Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-Locally based Apartment Investment and Management Co. says it expects its third-quarter 2001 funds from operations to be $1.30 per share, a 5.7% increase from the third quarter of 2000. AIMCO expects its adjusted Funds From Operations to come in at $1.15 pershare, compared with $1.12 per share a year ago, a 2.7% increase.Expected results are based on preliminary third quarter ”same store” netoperating income growth of 2% to 3%. That is below the 4% growth AIMCO had used for internal planning purposes as well as lower transactional income.

”The weak economy and the impact of the Sept. 11 attacks create uncertaintyfor the remainder of 2001 and for 2002,” says Terry Considine, chairman and chief executive officer for the Denver-based real estate investment trust,one of the nation’s largest apartments REITs. ”That said, AIMCO benefits from geographic and price point diversification, substantial liquidity, a strong balance sheet and ongoing operational initiatives to reduce costs.”

AIMCO will address its outlook for fourth quarter 2001 and 2002 in its third quarter earnings release and conference call on Nov. 8. It also will host a third quarter earnings conference call on Nov. 9.

UBS Warburg LLC REIT Research notes the $1.30 FFO is $0.02 belowits estimates and $0.04 below consensus estimates.

”The reduction is not unexpected,” UBS Warburg says. ”In conjunction with our (earlier) sector report in which we made across-the-board revisions, we reduced our 2001 estimates for AIMCO from $5.35 to $5.30 and our 2002 estimates from $5.84 to $5.60. Last week, we also lowered our third quarterestimates from $1.34 to $1.32.”

Since AIMCO released its new guidance, UBS Warburg is lowering its thirdquarter estimates to $1.30 and 2001 estimates to $5.23. Warburg, however, still likes AIMCO.” AIMCO is one of two remaining ”buys” in the apartment sector,” according to UBS Warburg. ”AIV has a highly diversified portfolio that will insulate it from regional specific risks, and a strong management team. Having said that, the company will be impacted by the slowing economy, as reflected by the earnings revisions. Nonetheless, given its steep 16% 2002 FFO multiple discount relative to the apartment sector as a whole, we believe AIV continues to be a good risk-adjusted investment, particularly over the long term.”

UBS Warburg’s price target is $51 per share.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.