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Apartment Income REIT Corp AIRC

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Apartment Income REIT's Fourth Quarter Below but 2021 Guidance in Line With Expectations

Kevin Brown Equity Analyst

Analyst Note

| Kevin Brown |

Apartment Income REIT's first quarter as a separate entity was slightly disappointing, as fourth-quarter results were below our expectations. However, we don't see anything at this point that would cause a material change to our $55.72 fair value estimate for the no-moat company. Same-store occupancy increased 90 basis points sequentially to 94.4%, far better than our estimate of a 50-basis-point decline. However, the higher occupancy was achieved with higher rent concessions, reducing average rent growth to a 4.6% decline, and from restrictions on evicting tenants that increased uncollectible rents, which further reduced same-store revenue to fall 7.4% in the fourth quarter. Combined with same-store expenses rising 7.6%, well above our estimate of expenses growing 1.5%, same-store net operating income fell 12.5% in the fourth quarter, worse than our estimate of a 9.6% decline. Lower portfolio fundamentals caused pro forma funds from operations to come in at $0.38 per share for the fourth quarter.

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Company Profile

Business Description

Apartment Investment and Management Co. owns a portfolio of 125 apartment communities with almost 33,000 units and is currently developing seven additional properties with 1,297 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Atlanta, Boston, Chicago, Denver, Los Angeles, Miami, New York, Philadelphia, San Diego, San Francisco, Seattle, and Washington, D.C..

4582 South Ulster Street, Suite 1700
Denver, CO, 80237
T +1 303 757-8101
Sector Real Estate
Industry REIT - Residential
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Hard Assets
Employees 950