logo
Plus   Neg
Share
Email

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

Apartment Investment and Management Co. or Aimco (AIV) 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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
In a move likely to further inflame global trade tensions, President Donald Trump has threatened to impose a 20 percent tariff on all cars imported to the U.S. from the European Union. Trump claimed he would impose the new tariffs unless the EU removes tariffs and trade barriers placed on the U.S. The Federal Reserve has determined that the largest U.S. banks are strongly capitalized and would be able to lend to banks as well as households during a severe global economic recession. This is the fourth straight year that all banks have met the Federal Reserve's standards. The first round of results of the supervisory stress tests were released by the central bank on Thursday. The "safety" driver behind the wheel of a self-driving Uber was streaming a television show on her smartphone up until about the time of a fatal crash in March, according to a report from the Tempe Police Department. Uber's self-driving Volvo SUV, which was traveling at under 44 miles per hour, had struck and killed a pedestrian in Arizona on March 18.
Follow RTT