Aimco (NYSE: AIV) reported Q2 EPS of $0.26, $0.24 better than the analyst estimate of $0.02. AFFO was $0.55.

Chairman and Chief Executive Officer Terry Considine comments: “The second quarter 2020 economic contraction was the most abrupt and most severe in US history. The resilient Aimco business absorbed the financial blow and is now recovering from the shock of the pandemic and the ‘lockdown’ of the economy. In mid-March, the pace of Aimco leasing was cut in half. Ten weeks later at the end of May, we were behind plan by 1,000 new leases. In June and July, increased demand and excellent work by our site teams produced about 325 leases above plan, leaving a year-to-date shortfall of 675. We are at or near the bottom in monthly Average Daily Occupancy. Notwithstanding all that has happened, at the bottom line, our first half results met our pre-crisis expectations.”

“Looking forward, there are many reasons for concern: the fragile economy; the uncertain course of the pandemic; riots and political unrest; continuing lockdowns and the enormous increase in government borrowing and regulation. Nevertheless, I am optimistic about the Aimco portfolio and team, the apartment business itself, and the great experiment in freedom that is our country. Better times lie ahead.”

Chief Financial Officer Paul Beldin adds: “Since the onset of the crisis, Aimco has closed a $350 million term loan and $689 million of property financings. We have lowered the weighted average interest rate of our leverage to 3.69%; addressed all 2020 debt maturities; and increased liquidity and reduced refunding risk such that Aimco committed credit and cash on hand exceeds the total of (1) the $151 million cost to complete continuing long-cycle redevelopments and developments; plus (2) the $959 million of debt maturing in the next 30 months.”

“Second quarter AFFO of $0.55 per share was up 8% year-over-year. At our properties, Aimco recognized 98.4% of all residential rental revenue, treating the balance of 1.6% as bad debt. Of the 98.4%, 97.2% was paid in cash; 70 basis points is subject to recovery by offset against security deposits; and $1.0 million, or 50 basis points is considered collectable based on our review of individual customers’ credit.”

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