logo
Share SHARE
FONT-SIZE Plus   Neg

Aimco Ups 2012 Adj. FFO View; To Boost Dividend 11% - Quick Facts

Apartment Investment and Management Co. or Aimco (AIV: Quote) issued an update on its 2012 financial and dividend forecast, based on its recently announced public offering of 11.0 million shares. Aimco plans to use the offering's net proceeds and available cash to redeem all of its outstanding shares of Class T Cumulative Preferred Stock, Class V Cumulative Preferred Stock and Class Y Cumulative Preferred Stock.

Through this series of transactions, Aimco expects to increase annual cash flow by about $16 million, also anticipating that the dilutive impact to Net Asset Value of some $0.40 per share would be recovered within 5 years.

While the company projects modest dilution to Funds From Operations or FFO and Adjusted FFO or AFFO until the preferred stocks are redeemed later this quarter, Aimco sees FFO to increase by $0.01 per share during the second half of this year from its original guidance. On an annualized basis, the company estimates Pro forma FFO to improve by $0.02 and AFFO to increase by $0.07 from these transactions.

Chairman and Chief Executive noted, "Based on the expected increase in AFFO, the Aimco Board also intends to increase the company's quarterly dividend 11%, from $0.18 to $0.20 per share, at its next meeting in July."

For 2012, the company raised its AFFO outlook to $1.24 - $1.34 from its earlier view of $1.21 - $1.31, while backing its full-year Pro forma FFO forecast of $1.76 to $1.84.

Pursuant to the redemption of the preferred securities, Aimco expects to recognize preferred stock redemption charges of some $10.5 million, or $0.08 per share, that are excluded from the above estimates for Pro forma FFO and AFFO, but reflected in the above estimate of net loss per share.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Fortune has once again named Google Inc. (GOOG, GOOGL) as the best company to work for, with Twitter Inc. (TWTR) also joining the annual list for the first time. This is for the sixth time and for the fourth consecutive time that Google has ranked No.1 in the Fortune's annual list of "100 Best Companies... Dunkin' Donuts has agreed to remove a whitening agent called titanium dioxide, commonly a source of nanomaterials, from all powdered sugar used in its donuts. The move follows pressure from advocacy group As You Sow, which put a shareholder proposal asking Dunkin' to reduce the risks of using nanomaterials in its food products. Warren Buffett's Berkshire Hathaway is reportedly planning its first ever European bond sale of 3 billion euros to take advantage of low interest rates in the region, traversing a path taken by a range of home companies in search of cheap funding options. The move comes as the European Central Bank's bond-buying stimulus program of 60 billion euros a month is imminent.
comments powered by Disqus
RELATED NEWS
Trade AIV now with 
Follow RTT