Form 10-K for Apartment Investment & Management Co
Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________

Form 10-K/A

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2000

OR

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from    to

Commission File Number 1-13232
Apartment Investment and Management Company
(Exact name of registrant as specified in its charter)
     
Maryland
(State or other jurisdiction of
incorporation or organization)
84-1259577
(I.R.S. Employer
Identification No.)
 
2000 South Colorado Boulevard, Tower Two, Suite 2-1000
Denver, CO

(Address of principal executive offices)
80222-7900
(Zip Code)

_______________

Registrant’s Telephone Number, Including Area Code: (303) 757-8101

Securities Registered Pursuant to Section 12(b) of the Act:

     
Title of Each Class Name of Each Exchange
on Which Registered


Class A Common Stock
Class C Cumulative Preferred Stock
Class D Cumulative Preferred Stock
Class G Cumulative Preferred Stock
Class H Cumulative Preferred Stock
Class K Convertible Cumulative Preferred Stock
Class P Convertible Cumulative Preferred Stock
Class Q Cumulative Preferred Stock
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange

Securities Registered Pursuant to Section 12(g) of the Act: none

      Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

      Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K/A or any amendment to this Form 10-K/A. [X]

      As of March 8, 2001, there were 71,521,685 shares of Class A Common Stock outstanding. The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant, was approximately $3,099.0 million as of March 8, 2001.


Documents Incorporated by Reference

None




TABLE OF CONTENTS

PART I
ITEM 1. Business
2000 Developments
Financial Information About Industry Segments
Operating and Financial Strategies
Growth Strategies
Property Management Strategies
Taxation of the Company
Competition
Regulation
Insurance
Employees
ITEM 2. Properties
ITEM 3. Legal Proceedings
ITEM 4. Submission of Matters to a Vote of Security Holders
PART II
ITEM 5. Market for the Registrant’s Common Equity and Related Stockholder Matters
ITEM 6. Selected Financial Data
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
ITEM 7a. Quantitative and Qualitative Disclosures About Market Risk
ITEM 8. Financial Statements and Supplementary Data
ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
PART III
ITEM 10. Directors and Executive Officers of the Registrant
ITEM 11. Executive Compensation
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
ITEM 13. Certain Relationships and Related Transactions
PART IV
ITEM 14. Exhibits, Financial Statement Schedule and Reports on Form 8-K
INDEX TO FINANCIAL STATEMENTS
REPORT OF INDEPENDENT AUDITORS
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
CONSOLIDATED STATEMENTS OF CASH FLOWS
CONSOLIDATED STATEMENTS OF CASH FLOWS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
REAL ESTATE AND ACCUMULATED DEPRECIATION
EX-3.1 Charter
EX-10.19 18th Amendment to Amended/Restated Agrmt
EX-10.20 19th Amendment to Amended/Restated Agrmt
EX-10.21 20th Amendment to Amended/Restated Agrmt
EX-21.1 Subsidiaries of Registrant
EX 23.1 - Consent of Ernst & Young LLP
EX-99.1 Agreement RE: Disclosure of Long-Term Debt


APARTMENT INVESTMENT AND MANAGEMENT COMPANY

TABLE OF CONTENTS

ANNUAL REPORT ON FORM 10-K/A
For the Fiscal Year Ended December 31, 2000

         
Item Page


 
PART I
  1. Business 2
        2000 Developments 2
        Financial Information About Industry Segments 5
        Operating and Financial Strategies 5
        Growth Strategies 6
        Property Management Strategies 7
        Taxation of the Company 7
        Competition 7
        Regulation 8
        Insurance 9
        Employees 9
  2. Properties 10
  3. Legal Proceedings 11
  4. Submission of Matters to a Vote of Security Holders 11
 
PART II
 
  5. Market for the Registrant’s Common Equity and Related Stockholder Matters 12
  6. Selected Financial Data 13
  7. Management’s Discussion and Analysis of Financial Condition and Results of       Operations 14
7a. Quantitative and Qualitative Disclosures About Market Risk 24
  8. Financial Statements and Supplementary Data 24
  9. Changes in and Disagreements with Accountants on Accounting and Financial       Disclosure 24
 
PART III
 
10. Directors and Executive Officers of the Registrant 25
11. Executive Compensation 27
12. Security Ownership of Certain Beneficial Owners and Management 30
13. Certain Relationships and Related Transactions 33
 
PART IV
 
14. Exhibits, Financial Statement Schedule and Reports on Form 8-K 36


Table of Contents

PART I

ITEM 1. Business

      Apartment Investment and Management Company, a Maryland corporation, incorporated on January 10, 1994 (“AIMCO” and, together with its consolidated subsidiaries and other controlled entities, the “Company”), is a self-administered and self-managed real estate investment trust (“REIT”) engaged in the ownership, acquisition, redevelopment, expansion and management of multi-family apartment properties. As of December 31, 2000, AIMCO owned or managed 326,289 apartment units in 1,720 properties located in 47 states, the District of Columbia and Puerto Rico. Based on apartment unit data compiled by the National Multi Housing Council, the Company believes that, as of December 31, 2000, it was the largest owner and manager of multi-family apartment properties in the United States.

      As of December 31, 2000, AIMCO:

    owned or controlled (consolidated) 153,872 units in 566 apartment properties;
 
    held an equity interest in (unconsolidated) 111,748 units in 683 apartment properties; and
 
    managed 60,669 units in 471 apartment properties for third party owners and affiliates.

      AIMCO conducts substantially all of its operations through its operating partnership, AIMCO Properties, L.P., (the “AIMCO Operating Partnership”). Through a wholly-owned subsidiary, AIMCO acts as the sole general partner of the AIMCO Operating Partnership, and as of December 31, 2000, owned an approximate 91% interest in the AIMCO Operating Partnership. AIMCO manages apartment properties for third parties and affiliates through unconsolidated subsidiaries that are referred to as the “management companies.” Interests in the AIMCO Operating Partnership that are held by third parties are referred to as “OP Units.”

      The Company’s principal executive offices are located at 2000 South Colorado Blvd., Tower Two, Suite 2-1000, Denver, Colorado 80222-7900 and its telephone number is (303) 757-8101.

2000 Developments

      Individual Property Acquisitions

      The Company directly acquired 12 apartment properties in separate transactions during 2000. The aggregate consideration paid by the Company of $136.5 million consisted of $42.7 million in cash, $26.4 million in preferred OP Units, $6.8 million in common OP Units and the assumption of $60.6 million of secured long-term indebtedness. As part of these acquisitions, the Company has also determined to undertake $4.8 million of initial capital enhancements related to these properties.

       Acquisition of Oxford Properties

      On September 20, 2000, AIMCO completed the purchase of all the stock and other interests (not already owned by AIMCO) held by the principals, officers and directors of Oxford Realty Financial Group, Inc. (“ORFG”) in Oxford entities, including ORFG, which own interests in and control the Oxford properties for $266 million in cash and $62 million in common OP Units valued at $45 per unit. In addition to the cash and securities, AIMCO assumed liabilities and incurred transaction costs of $861 million, resulting in a total purchase price of $1,189 million. The Oxford properties are 167 apartment communities including 36,949 units, located in 18 states. AIMCO, through an affiliate, previously managed 165 of the 167 Oxford properties pursuant to long-term contracts and was previously a stockholder in certain of the entities. In addition to the Oxford properties, AIMCO acquired the entity that owns the managing general partner of Oxford Tax Exempt Fund II Limited Partnership (“OTEF”) and acquired approximately a 40% interest in the non-managing general partner of OTEF. The AIMCO Operating Partnership, together with NHP Management Company and AIMCO/Bethesda Holdings, Inc., borrowed $279 million to pay the cash portion of the purchase price for the Oxford acquisition from Bank of America, N.A., Lehman Commercial Paper Inc., and several other lenders, pursuant to a term loan with a total availability of $302 million.

       Tender Offers

      During 2000, the Company acquired limited partnership interests in various partnerships in which affiliates of

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the Company served as general partner. The Company paid approximately $195 million in cash and OP Units to acquire these limited partnership interests.

       Property Dispositions

      In 2000, the Company sold 64 apartment properties, 11 commercial properties and 4 land parcels for an aggregate sales price of approximately $573.5 million. Net cash proceeds to the Company from the sales of $154.5 million were used to repay a portion of the Company’s outstanding short-term indebtedness and for other corporate purposes. The results of operations of 47 of these properties were accounted for by the Company under the equity method.

       Debt Assumptions and Financings

      In August 1999, the Company closed a $300 million revolving credit facility arranged by Bank of America, N.A., Fleet National Bank (successor to BankBoston, N.A.) and First Union National Bank with a syndicate comprised of a total of nine lender participants. Effective March 15, 2000 the credit facility was expanded by $45 million with the potential to expand it by another $55 million to a total of $400 million. Of the $55 million potential expansion, $5 million was expanded on April 14, 2000 bringing the total availability to $350 million. In September 2000, the credit facility was amended and restated. The obligations under the credit facility are secured by a first priority pledge of certain non-real estate assets of the Company and a second priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., AIMCO Holdings, L.P., in certain subsidiaries of AIMCO and certain options to purchase Beneficial Assignee Interests (“BACs”) in OTEF. Borrowings under the credit facility, including the $50 million expansion, are available for general corporate purposes. The credit facility matures in July 2002 and can be extended twice at AIMCO’s option, for a term of one year. The annual interest rate under the new credit facility is based on either LIBOR or a base rate, which is the higher of Bank of America’s reference rate or 0.50% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 2.05% and 2.55%, in the case of LIBOR-based loans, and between 0.55% and 1.05%, in the case of base rate loans, based upon a fixed charge coverage ratio. The weighted average interest rate at December 31, 2000 was 9.16%. The amount available under the credit facility at December 31, 2000 was $95.3 million, less $1.2 million for outstanding letters of credit.

      The AIMCO Operating Partnership borrowed $279 million to pay the cash portion of the purchase price for AIMCO’s acquisition of all the stock and other interests (not already owned by AIMCO) held by the principals, officers and directors of ORFG from Bank of America, N.A., Lehman Commercial Paper Inc. and several other lenders pursuant to a term loan with a total availability of $302 million. Transaction costs (including advisory fees) incurred on the term loan were $9.4 million. The borrowers under the term loan are the AIMCO Operating Partnership, NHP Management Company and AIMCO/Bethesda Holdings, Inc., and all obligations thereunder are guaranteed by AIMCO and certain of its subsidiaries. The obligations under the term loan are secured by a first priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., and AIMCO Holdings, L.P. in certain subsidiaries of AIMCO and certain options to purchase Beneficial Assignee Interests (“BACs”) in OTEF and a second priority pledge of certain non-real estate assets of the Company. The annual interest rate under the term loan is based either on LIBOR or a base rate which is the higher of Bank of America, N.A.’s reference rate or 0.5% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 4.0% and 5.0% in the case of LIBOR-based loans, and between 1.0% and 2.0% in the case of base rate loans, based upon the number of months the loan is outstanding. The term loan expires in July 2002. The financial covenants contained in the term loan require the AIMCO Operating Partnership to maintain a ratio of debt to gross asset value of no more than 0.55 to 1.0, and an interest coverage ratio of 2.25 to 1.0, and a fixed charge coverage ratio of at least 1.50 to 1.0. In addition, the term loan limits AIMCO from distributing more than 80% of its Funds From Operations (as defined) (or such amounts as may be necessary for AIMCO to maintain its status as a REIT). The term loan imposes minimum net worth requirements and provides other financial covenants related to certain of AIMCO’s assets and obligations. The total amount outstanding under the term loan at December 31, 2000 was $137 million, of which $74 million is classified as secured short-term financing of the Company, and the remainder is a liability of unconsolidated subsidiaries and, therefore, is included in investment in unconsolidated subsidiaries. Effective January 1, 2001, in connection with the REIT Modernization Act, the remaining liability of $63 million will be consolidated.

      During the year ended December 31, 2000, the Company issued $636.0 million of long-term fixed rate, fully amortizing non-recourse mortgage notes payable with a weighted average interest rate of 7.5%. Each of the notes is individually secured by one of 107 properties with no cross-collateralization. The net proceeds after transaction costs of $625.5 million were used to repay existing debt. During the year ended December 31, 2000, the Company also assumed $60.6 million of long-term, fixed-rate, fully amortizing notes payables with a weighted average

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interest rate of 7.5% in connection with the acquisition of properties. Each of the notes is individually secured by one of 12 properties with no cross-collateralization.

       Equity Offerings

      In 2000, the Company issued $230.0 million of preferred stock in three direct placements yielding $227 million of net proceeds. These transactions are summarized below:

                                         
Number Total Proceeds Dividend or
of in Distribution
Transaction Type Date Shares Millions Rate






Class M Convertible Cumulative Preferred Stock of AIMCO Direct Jan. 2000 1,200,000 $ 30.0 (1 )
Class N Convertible Cumulative Preferred Stock of AIMCO Direct Sept. 2000 4,000,000 100.0 (2 )
Class O Cumulative Convertible Preferred Stock of AIMCO Direct Sept. 2000 1,904,762 100.0 (3 )

GROSS PROCEEDS IN 2000 $ 230.0


(1)   For the period beginning January 13, 2000 through and including January 13, 2003, the holder of the Class M Preferred Stock is entitled to receive, when and as declared by the Board of Directors, annual cash dividends in an amount per share equal to the greater of (i) $2.125 per year (equivalent to 8.5% of the $25.00 liquidation preference), or (ii) the cash dividends payable on the number of shares of Class A Common Stock (or a portion thereof) into which a share of Class M Preferred Stock is convertible. Beginning with the third anniversary of the date of original issuance, the holder of Class M Preferred Stock is entitled to receive an amount per share equal to the greater of (i) $2.3125 per year (equivalent to 9.25% of the $25.00 liquidation preference), or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class M Preferred Stock is convertible. The 1.2 million shares of Class M Convertible Cumulative Preferred Stock outstanding are convertible into approximately 0.7 million shares of Class A Common Stock.
(2)   Dividends on the Class N Preferred Stock are paid in an amount per share equal to the greater of (i) $2.25 per year (equivalent to 9% per annum of the $25.00 liquidation preference), subject to increase in the event of a change in control of AIMCO or (ii) the cash dividends payable on the number of shares of Class A Common Stock (or a portion thereof) into which a share of Class N Preferred Stock is convertible. Dividends are paid on the Class N Preferred Stock quarterly, beginning on October 1, 2000 (the initial dividend paid on the Class N Preferred Stock was $0.10 per share). The 4.0 million shares of Class N Convertible Cumulative Preferred Stock outstanding are convertible into approximately 1.9 million shares of Class A Common Stock.
(3)   Dividends on the Class O Preferred Stock are paid in an amount per share equal to the greater of (i) $4.725 per year (equivalent to 9% per annum of the $52.50 liquidation preference), subject to increase in the event of a change in control of AIMCO or (ii) the cash dividends payable on the number of shares of Class A Common Stock (or a portion thereof) into which a share of Class O Preferred Stock is convertible. Dividends are paid on the Class O Preferred Stock quarterly, beginning on October 1, 2000 (the initial dividend paid on the Class O Preferred Stock was $0.21 per share). The 1.9 million shares of Class O Cumulative Convertible Preferred Stock outstanding are convertible into approximately 1.9 million shares of Class A Common Stock.

       Pending Acquisitions and Dispositions

      In the ordinary course of business, the Company engages in discussions and negotiations regarding the acquisition of apartment properties (including interests in entities that own apartment properties). The Company frequently enters into contracts and non-binding letters of intent with respect to the purchase of properties. These contracts are typically subject to certain conditions and permit the Company to terminate the contract in its sole and absolute discretion if it is not satisfied with the results of its due diligence investigation of the properties. The Company believes that such contracts essentially result in the creation of an option on the subject properties and give the Company greater flexibility in seeking to acquire properties.

      The Company is currently marketing for sale certain real estate properties in order to sell properties in the portfolio that are inconsistent with the Company’s long-term investment strategies (as determined by management from time to time). The Company does not expect to incur any material losses with respect to the sales of the properties.

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       OTEF Merger

      On November 29, 2000, AIMCO and OTEF entered into a merger agreement pursuant to which OTEF would merge with a subsidiary of the AIMCO Operating Partnership. The merger closed on March 26, 2001. The AIMCO Operating Partnership owns all of the outstanding BACs in OTEF. In connection with the Oxford acquisition, AIMCO acquired interests in OTEF’s managing general partner and OTEF’s associate general partner. After the merger, the Company’s partnership interests in OTEF reflects a 1% general partner interest held by OTEF’s managing general partner and a 99% limited partner interest held by the AIMCO Operating Partnership. OTEF was a publicly traded master limited partnership that invested primarily in tax-exempt bonds issued to finance high quality apartment and senior living/health care communities, the majority of which are owned by affiliates of OTEF, including Oxford entities.

      In the merger, each BAC was converted into the right to receive 0.299 shares of AIMCO’s Class A Common Stock and 0.547 shares of AIMCO’s Class P Convertible Cumulative Preferred Stock (the “Class P Preferred Stock”). In addition, the BAC holders received a special distribution of $50 million or $6.21 per BAC. The holders of the Class P Preferred Stock are entitled to receive, when and as declared by the Board of Directors, cash dividends in an amount per share equal to the greater of (i) a quarterly dividend payment of $0.5625 or (ii) the cash dividends declared on the number of shares of Class A Common Stock into which a share of Class P Preferred Stock is convertible. Each share of Class P Preferred Stock is convertible at the option of the holder into 0.4464 shares of Class A Common Stock. The initial conversion ratio was in excess of the fair market value of the common stock on the commitment date. The Class P Preferred Stock is senior to the Class A Common Stock as to dividends and liquidation. Upon liquidation, dissolution, or winding up of AIMCO, before payment or distribution by AIMCO shall be made to any holders of the Class A Common Stock, the holders of the Class P Preferred Stock are entitled to receive a liquidation preference of $25 per share, plus accumulated, accrued and unpaid dividends. The Company filed a Registration Statement on Form S-4 with the Securities and Exchange Commission that was declared effective on February 23, 2001.

Financial Information About Industry Segments

      The Company operates in two industry segments, which include the ownership, operation and management of a diversified portfolio of apartment properties, and the management of apartment properties for third parties and affiliates. See the consolidated financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K/A for financial information relating to the Company. See Footnote 22 for discussion of sources of revenues from the various components of the Company’s operations.

Operating and Financial Strategies

      The Company strives to meet its objective of providing long-term, predictable Funds From Operations (“FFO”) per share of Class A Common Stock, less an allowance for capital replacements of $300 per apartment unit, by implementing its operating and financing strategies which include the following:

    Acquisition of Properties at Less Than Replacement Cost. AIMCO attempts to acquire properties at a significant discount to their replacement cost.
 
    Geographic Diversification. AIMCO operates in 47 states, the District of Columbia and Puerto Rico. This geographic diversification insulates the Company, to some degree, from inevitable downturns in any one market. AIMCO’s net income before depreciation and interest expense is earned in more than 164 local markets. In 2000, the largest single market (Washington D.C. Metro area) contributed 8.3% to net income before depreciation and interest expense, and the five largest markets contributed 30.9%.
 
    Market Growth. The Company seeks to operate in markets where population and employment growth are expected to exceed the national average and where it believes it can become a regionally significant owner or manager of properties.
 
    Product Diversification. The Company’s portfolio of apartment properties spans a wide range of apartment community types, both within and among markets, including garden and high-rise apartments, as well as corporate and student housing.
 
    Capital Replacement. AIMCO believes that the physical condition and amenities of its apartment communities are important factors in its ability to maintain and increase rental rates. The Company allocates approximately $300 annually per owned apartment unit for capital replacements, and reserves unexpended amounts for future capital replacements.

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    Debt Financing. AIMCO’s strategy is generally to incur debt to increase its return on equity while maintaining acceptable interest coverage ratios. AIMCO seeks to maintain a ratio of free cash flow to combined interest expense and preferred stock dividends of between 2:1 and 3:1 and to match debt maturities to the character of the assets financed. For the year ended December 31, 2000, the Company was within these targets. The Company uses predominantly long-term, fixed-rate and self-amortizing non-recourse debt in order to avoid the refunding or repricing risks of short-term borrowings. The Company uses short-term debt financing to fund acquisitions and generally expects to refinance such borrowings with proceeds from equity offerings or long-term debt financings. As of December 31, 2000, approximately 8% of AIMCO’s outstanding debt was short-term debt and 92% was long-term debt.
 
    Dispositions. While the Company holds all its properties for investment, the Company sells properties when they do not meet its return on investment criteria or are located in areas where AIMCO does not believe that the long-term values justify the continued investment in the properties.
 
    Dividend Policy. AIMCO pays dividends on its Class A Common Stock to distribute a significant portion of its profitability to its stockholders. The Company distributed 59.9%, 61.3% and 65.8% of FFO to holders of Class A Common Stock for the years ended December 31, 2000, 1999 and 1998, respectively. It is the present policy of the Board of Directors to increase the dividend annually in an amount equal to one-half of the projected increase in FFO, adjusted for capital replacements, subject to minimum distribution requirements to maintain its REIT status.

Growth Strategies

      The Company seeks growth through two primary sources — internal expansion and acquisitions.

       Internal Growth Strategies

      The Company pursues internal growth primarily through the following strategies:

    Revenue Increases. The Company increases rents where feasible and seeks to improve occupancy rates.
 
    Controlling Expenses. Cost reductions are accomplished by local focus on the regional operating center level and by exploiting economies of scale. As a result of the size of its portfolio and its creation of regional concentrations of properties, the Company has the ability to leverage fixed costs for general and administrative expenditures and certain operating functions, such as insurance, information technology and training, over a large property base.
 
    Redevelopment of Properties. The Company believes redevelopment of selected properties in superior locations provides advantages over development of new properties. AIMCO believes that redevelopment generally allows the Company to maintain rents comparable to new properties and, compared to development of new properties, can be accomplished with relatively lower financial risk, in less time and with reduced delays due to governmental regulation.
 
    Expansion of Properties. The Company believes that expansion within or adjacent to properties already owned or managed by the Company also provides growth opportunities at lower risk than new development. Such expansion can offer cost advantages to the extent common area amenities and on-site management personnel can service the property expansions. AIMCO’s current policy is to limit redevelopments and expansions to approximately 10% of total equity market capitalization.
 
    Ancillary Services. The Company believes that its ownership and management of properties provides it with unique access to a customer base that allows it to provide additional services and thereby increase occupancy, increase rents and generate incremental revenue. The Company currently provides cable television, telephone services, appliance rental, and carport, garage and storage space rental at certain properties.

       Acquisition Strategies

      The Company believes its acquisition strategies will increase profitability and predictability of earnings by increasing its geographic diversification, economies of scale and opportunities to provide ancillary services to tenants at its properties. Since AIMCO’s initial public offering in July 1994, the Company has completed numerous acquisition and management transactions, expanding its portfolio of owned or managed properties from 132 apartment properties with 29,343 units to 1,720 apartment properties with 326,289 units as of December 31, 2000.

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      The Company acquires additional properties primarily in three ways:

    Direct Acquisitions. AIMCO may directly, including through mergers and other business combinations, acquire individual properties or portfolios of properties and controlling interests in entities that own or control such properties or portfolios. To date, a significant portion of AIMCO’s growth has resulted from the acquisition of other companies that owned or controlled properties.
 
    Acquisition of Managed Properties. AIMCO’s property management operations have contributed to its acquisition activities. Since AIMCO’s initial public offering, the Company has acquired from its managed portfolio 16 properties comprising 5,697 units for total consideration of $189.9 million. In addition, the Company acquired interests in 167 Oxford properties comprising 36,949 units for a total purchase price of $1,189 million.
 
    Increasing its Interest in Partnerships. For properties where AIMCO owns a general partnership interest in the property-owning partnership, the Company may seek to acquire, subject to its fiduciary duties, the interests in the partnership held by third parties for cash or, in some cases, in exchange for OP Units. AIMCO has completed approximately 1,800 tender offers with respect to various partnerships and has purchased additional interests in such partnerships for cash and for OP Units.

Property Management Strategies

      AIMCO seeks to improve the operating results from its property management business by, among other methods, combining centralized financial control and uniform operating procedures with localized property management decision-making and market knowledge. Currently, AIMCO’s management operations are organized into 25 regional operating centers. Each of the regional operating centers is supervised by a Regional Vice-President.

Taxation of the Company

      The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, commencing with its taxable year ended December 31, 1994, and the Company intends to continue to operate in such a manner. The Company’s current and continuing qualification as a REIT depends on its ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership.

      If the Company qualifies for taxation as a REIT, it will generally not be subject to U.S. federal corporate income tax on its net income that is currently distributed to stockholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from investment in a corporation. If the Company fails to qualify as a REIT in any taxable year, its taxable income will be subject to U.S. federal income tax at regular corporate rates (including any applicable alternative minimum tax). Even if the Company qualifies as a REIT, it may be subject to certain state and local income taxes and to U.S. federal income and excise taxes on its undistributed income.

      If in any taxable year the Company fails to qualify as a REIT and incurs additional tax liability, the Company may need to borrow funds or liquidate certain investments in order to pay the applicable tax and the Company would not be compelled to make distributions under the Internal Revenue Code. Unless entitled to relief under certain statutory provisions, the Company would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. Although the Company currently intends to operate in a manner designed to qualify as a REIT, it is possible that future economic, market, legal, tax or other considerations may cause the Company to fail to qualify as a REIT or may cause the Board of Directors to revoke the REIT election.

      The Company and its stockholders may be subject to state or local taxation in various state or local jurisdictions, including those in which it or they transact business or reside. The state and local tax treatment of the Company and its stockholders may not conform to the U.S. federal income tax treatment.

Competition

      There are numerous housing alternatives that compete with the Company’s properties in attracting residents. The Company’s properties compete directly with other multi-family rental apartments and single family homes that are available for rent or purchase in the markets in which the Company’s properties are located. The Company’s

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properties also compete for residents with new and existing condominiums. The number of competitive properties in a particular area could have a material effect on the Company’s ability to lease apartment units at its properties and on the rents charged. The Company competes with numerous real estate companies in acquiring, developing and managing multi-family apartment properties and seeking tenants to occupy its properties. In addition, the Company competes with numerous property management companies in the markets where the properties managed by the Company are located.

Regulation

       General

      Multi-family apartment properties are subject to various laws, ordinances and regulations, including regulations relating to recreational facilities such as swimming pools, activity centers and other common areas. Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions, as well as changes in laws affecting development, construction and safety requirements, may result in significant unanticipated expenditures, which would adversely affect the Company’s cash flows from operating activities. In addition, future enactment of rent control or rent stabilization laws or other laws regulating multi-family housing may reduce rental revenue or increase operating costs in particular markets.

       Laws Benefiting Disabled Persons

      Under the Americans with Disabilities Act of 1990, all places of public accommodation are required to meet certain Federal requirements related to access and use by disabled persons. These requirements became effective in 1992. A number of additional Federal, state and local laws may also require modifications to the Company’s properties, or restrict certain further renovations of the properties, with respect to access thereto by disabled persons. For example, the Fair Housing Amendments Act of 1988 requires apartment properties first occupied after March 13, 1990 to be accessible to the handicapped. Noncompliance with these laws could result in the imposition of fines or an award of damages to private litigants and also could result in an order to correct any non-complying feature, which could result in substantial capital expenditures. Although the Company believes that its properties are substantially in compliance with present requirements, it may incur unanticipated expenses to comply with these laws.

       Regulation of Affordable Housing

      As of December 31, 2000, the Company owned or controlled 59 properties that benefit from governmental programs intended to provide housing to people with low or moderate incomes. AIMCO also held an equity interest in 428 properties with a combined average ownership percentage of 28% and managed for third parties and affiliates 298 properties that benefit similarly. These programs, which are usually administered by the United States Department of Housing and Urban Development (“HUD”) or state housing finance agencies, typically provide mortgage insurance, favorable financing terms or rental assistance payments to the property owners. As a condition to the receipt of assistance under these programs, the properties must comply with various requirements, which typically limit rents to pre-approved amounts. If permitted rents on a property are insufficient to cover costs, a sale of the property may become necessary, which could result in a loss of management fee revenue. The Company must obtain the approval of HUD in order to manage, or acquire a significant interest in, a HUD-assisted or HUD-insured property. This approval process is commonly referred to as “2530 Clearance.”

       Environmental

      Various Federal, state and local laws subject property owners or operators to liability for the costs of removal or remediation of certain hazardous substances present on a property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of the hazardous substances. The presence of, or the failure to properly remediate hazardous substances may adversely affect occupancy at contaminated apartment communities and the ability to sell or borrow against contaminated properties. In addition to the costs associated with investigation and remediation actions brought by governmental agencies, the presence of hazardous wastes on a property could result in personal injury or similar claims by private plaintiffs. Various laws also impose liability for the cost of removal or remediation of hazardous substances at a disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous or toxic substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of our properties, the Company could potentially be liable for environmental liabilities or costs associated with its properties or properties it may acquire or manage in the future.

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Insurance

      Management believes that the Company’s properties are covered by adequate fire, earthquake, hurricane, flood and property insurance provided by reputable companies and with commercially reasonable deductibles and limits.

Employees

      The Company has a staff of employees performing various acquisition, redevelopment and management functions. The Company, through the AIMCO Operating Partnership and the management companies, has approximately 9,500 employees, most of whom are employed at the property level. Certain of its employees are represented by unions. The Company has never experienced a work stoppage. The Company believes it maintains satisfactory relations with its employees.

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ITEM 2. Properties

      The Company’s properties are located in 47 states, Puerto Rico and the District of Columbia. The properties are managed by four Division Vice-Presidents controlling 25 regional operating centers. The following table sets forth information for the regional operating centers as of December 31, 2000:

                         
Number of Number of
Regional Operating Center Division Properties Units




Chicago, IL Far West 62 12,414
Denver, CO Far West 78 12,528
Kansas City, MO Far West 76 11,255
Los Angeles, CA Far West 98 15,623
Lansing, MI Far West 41 8,851
Phoenix, AZ Far West 58 13,942


413 74,613


Allentown, PA East 92 12,283
Columbia, SC East 76 14,590
Greenville, SC East 95 13,319
Philadelphia, PA East 40 12,734
Rockville I, MD East 39 12,761
Rockville II, MD East 53 8,838
Tarrytown, NY East 58 9,178


453 83,703


Atlanta, GA Southeast 58 11,020
Boca Raton, FL Southeast 56 13,019
Mobile, AL Southeast 67 11,554
Nashville, TN Southeast 68 13,409
Orlando, FL Southeast 62 11,793
Tampa, FL Southeast 57 13,070


368 73,865


Austin, TX West 58 10,543
Columbus, OH West 59 10,504
Dallas I, TX West 42 8,821
Dallas II, TX West 63 12,730
Houston, TX West 61 14,562
Indianapolis, IN West 61 16,247


344 73,407


Properties not currently managed by AIMCO 142 20,701


1,720 326,289


      At December 31, 2000, the Company owned or controlled 566 properties containing 153,872 units. These owned or controlled properties contain, on average, 272 apartment units, with the largest property containing 2,907 apartment units. These properties offer residents a range of amenities, including swimming pools, clubhouses, spas, fitness centers, tennis courts and saunas. Many of the apartment units offer design and appliance features such as vaulted ceilings, fireplaces, washer and dryer hook-ups, cable television, balconies and patios. In addition, at December 31, 2000, the Company held an equity interest in 683 properties containing 111,748 units, and managed 471 other properties containing 60,669 units. The Company’s total portfolio of 1,720 properties contain, on average, 190 apartment units, with the largest property containing 2,907 apartment units.

      Substantially all of the properties owned or controlled by the Company are encumbered by mortgage indebtedness or serve as collateral for the Company’s indebtedness. At December 31, 2000, the Company had aggregate mortgage indebtedness totaling $4,031.4 million, which was secured by 537 properties with a combined net book value of $6,054.6 million, having an aggregate weighted average interest rate of 7.89%. As of December 31, 2000, approximately 8% of AIMCO’s outstanding debt was short-term debt and 92% was long-term debt. See the financial statements included elsewhere in this Annual Report on Form 10-K/A for additional information about the Company’s indebtedness.

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ITEM 3. Legal Proceedings

       General

      The Company is a party to various legal actions resulting from its operating activities. These actions are routine litigation and administrative proceedings arising in the ordinary course of business, some of which are covered by liability insurance, and none of which are expected to have a material adverse effect on the consolidated financial condition or results of operations of the Company and its subsidiaries taken as a whole.

       Limited Partnerships

      In connection with the Company’s acquisitions of interests in limited partnerships that own properties, the Company and its affiliates are sometimes subject to legal actions, including allegations that such activities may involve breaches of fiduciary duties to the limited partners of such partnerships or violations of the relevant partnership agreements. The Company believes it complies with its fiduciary obligations and relevant partnership agreements, and does not expect such legal actions to have a material adverse effect on the consolidated financial condition or results of operations of the Company and its subsidiaries taken as a whole. The Company may incur costs in connection with the defense or settlement of such litigation, which could adversely affect the Company’s desire or ability to complete certain transactions or otherwise have a material adverse effect on the Company and its subsidiaries.

       Pending Investigations of HUD Management Arrangements

      In July 1999, The National Housing Partnership (“NHP”) received a grand jury subpoena requesting documents relating to NHP’s management of HUD-assisted or HUD-insured multi-family projects and NHP’s operation of a group purchasing program created by NHP, known as Buyers Access. The subpoena relates to the same subject matter as subpoenas NHP received in October and December of 1997 from the HUD Inspector General. To date, neither the HUD Inspector General nor the grand jury has initiated any action against NHP or AIMCO or, to NHP’s or AIMCO’s knowledge, any owner of a HUD property managed by NHP. AIMCO believes that NHP’s operations and programs are in compliance, in all material respects, with all laws, rules and regulations relating to HUD-assisted or HUD-insured properties. AIMCO is cooperating with the investigation and does not believe that the investigation will result in a material adverse effect on the financial condition of the Company. However, as with any similar investigation, there can be no assurance that these will not result in material fines, penalties or other costs that may impact the Company’s future results of operations or cash flow.

ITEM 4. Submission of Matters to a Vote of Security Holders

      None.

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PART II

ITEM 5. Market for the Registrant’s Common Equity and Related Stockholder Matters

      AIMCO’s Class A Common Stock has been listed and traded on the NYSE under the symbol “AIV” since July 22, 1994. The following table sets forth the quarterly high and low sales prices of the Class A Common Stock, as reported on the NYSE, and the dividends paid by the Company for the periods indicated.

                           
Dividends
Paid
Quarter ended High Low (per share)




1998
March 31, 1998 $ 38 9/16 $ 34 1/4 $ 0.5625
June 30, 1998 39 7/8 36 1/2 0.5625
September 30, 1998 41 31 0.5625
December 31, 1998 37 3/8 30 0.5625
1999
March 31, 1999 41 5/8 35 0.6250
June 30, 1999 44 1/16 35 5/16 0.6250
September 30, 1999 42 5/8 37 5/16 0.6250
December 31, 1999 40 3/16 34 1/16 0.6250
2000
March 31, 2000 39 15/16 36 5/16 0.7000
June 30, 2000 45 1/4 37 3/4 0.7000
September 30, 2000 49 3/8 43 11/16 0.7000
December 31, 2000 50 1/16 42 5/8 0.7000
2001
March 31, 2001 (through March 8, 2001) 45 9/10 43 0.7800 (1)


(1)   On January 24, 2001, the Company’s Board of Directors declared a cash dividend of $0.78 per share of Class A Common Stock, paid on February 9, 2001 to stockholders of record on February 2, 2001.

      On March 8, 2001, there were 71,521,685 shares of Class A Common Stock outstanding, held by 2,776 stockholders of record.

      AIMCO, as a REIT, is required to distribute annually to holders of common stock at least 90% (95% in 2000) of its “real estate investment trust taxable income,” which, as defined by the Internal Revenue Code and Treasury regulations, is generally equivalent to net taxable ordinary income. AIMCO measures its economic profitability and intends to pay regular dividends to its stockholders based on FFO during the relevant period. However, the future payment of dividends by AIMCO will be at the discretion of the Board of Directors and will depend on numerous factors including AIMCO’s financial condition, its capital requirements, the annual distribution requirements under the provisions of the Internal Revenue Code applicable to REITs and such other factors as the Board of Directors deems relevant.

      From time to time, AIMCO issues shares of Class A Common Stock in exchange for OP Units tendered to the AIMCO Operating Partnership for redemption in accordance with the terms and provisions of the agreement of limited partnership of the AIMCO Operating Partnership. Such shares are issued based on an exchange ratio of one share for each OP Unit. The shares are issued in exchange for OP Units in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(2) thereof. During 2000, a total of 200,696 shares of Class A Common Stock were issued in exchange for OP Units.

      During 2000, the Company repurchased and retired approximately 69,000 shares of Class A Common Stock at a net price of $2.6 million, at an average share price of $37.39 per share

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ITEM 6. Selected Financial Data

      The following selected financial data for AIMCO is based on audited historical financial statements. This information should be read in conjunction with such financial statements, including the notes thereto, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included herein.

                                           
For the Year Ended December 31,

2000 1999 (1) 1998 (1) 1997 (1) 1996 (1)





OPERATING DATA:
RENTAL PROPERTY OPERATIONS:
Rental and other property revenues $ 1,051,000 $ 533,917 $ 377,139 $ 193,006 $ 100,516
Property operating expenses (426,177 ) (213,798 ) (147,541 ) (76,168 ) (38,400 )
Owned property management expenses (13,663 ) (1,650 ) (2,009 ) (1,353 ) (324 )
Depreciation (323,321 ) (131,753 ) (84,635 ) (37,741 ) (19,556 )





Income from rental property operations 287,839 186,716 142,954 77,744 42,236





SERVICE COMPANY BUSINESS:
Management fees and other income from affiliates 49,692 38,377 20,824 10,033 5,945
Management and other expenses (37,509 ) (17,033 ) (16,960 ) (10,961 ) (6,150 )
Amortization of intangibles (6,698 ) (14,297 ) (8,735 ) (948 ) (500 )





Income (loss) from service company business 5,485 7,047 (4,871 ) (1,876 ) (705 )





General and administrative expenses (7,813 ) (13,112 ) (13,568 ) (5,396 ) (1,512 )
Interest expense (269,826 ) (140,094 ) (89,424 ) (51,385 ) (24,802 )
Interest income 66,241 55,320 29,368 8,676 523
Equity in earnings (losses) of unconsolidated real estate partnerships 7,618 (4,467 ) (4,854 ) (1,798 )
Equity in earnings (losses) of unconsolidated subsidiaries (2,290 ) (5,013 ) 5,845 3,273
Minority interest in other entities (3,872 ) (900 ) (468 ) 1,008 (111 )





Income from operations 83,382 85,497 64,982 30,246 15,629
Gain (loss) on disposition of properties 26,335 (1,785 ) 4,674 2,720 44





Income before extraordinary item and minority interest in Operating Partnership 109,717 83,712 69,656 32,966 15,673
Extraordinary item — early extinguishment of debt (269 )





Income before minority interest in Operating Partnership 109,717 83,712 69,656 32,697 15,673
Minority interest in Operating Partnership (10,539 ) (6,185 ) (5,182 ) (4,064 ) (2,689 )





Net income 99,178 77,527 64,474 28,633 12,984
Net income attributable to preferred stockholders 63,183 53,453 26,533 2,315





Net income attributable to common stockholders $ 35,995 $ 24,074 $ 37,941 $ 26,318 $ 12,984





OTHER INFORMATION:
Total owned or controlled properties (end of period) 566 373 242 147 94
Total owned or controlled apartment units (end of period) 153,872 106,148 63,086 40,039 23,764
Total equity properties (end of period) 683 751 902 515 18
Total equity apartment units (end of period) 111,748 133,113 170,243 83,431 3,611
Units under management (end of period) 60,669 124,201 146,034 69,587 15,434
Basic earnings per common share $ 0.53 $ 0.39 $ 0.84 $ 1.09 $ 1.05
Diluted earnings per common share $ 0.52 $ 0.38 $ 0.80 $ 1.08 $ 1.04
Dividends paid per common share $ 2.80 $ 2.50 $ 2.25 $ 1.85 $ 1.70
BALANCE SHEET INFORMATION:
Real estate, before accumulated depreciation $ 7,012,452 $ 4,512,697 $ 2,802,598 $ 1,657,207 $ 865,222
Real estate, net of accumulated depreciation 6,099,189 4,096,200 2,573,718 1,503,922 745,145
Total assets 7,699,874 5,684,951 4,248,800 2,100,510 827,673
Total indebtedness 4,360,115 2,584,289 1,660,715 808,530 522,146
Mandatorily redeemable convertible preferred securities 32,330 149,500 149,500
Stockholders’ equity 2,501,657 2,259,396 1,902,564 1,045,300 215,749


(1)   Certain reclassifications have been made to 1999, 1998, 1997 and 1996 amounts to conform with the 2000 presentation. These reclassifications represent certain eliminations of self-charged management fee income and expenses in accordance with consolidation accounting principles.

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ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

      The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements in certain circumstances. Certain information included in this Report, the Company’s Annual Report to Stockholders and other filings under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (as well as information communicated orally or in writing between the dates of such filings) contains or may contain information that is forward looking, including, without limitation, statements regarding the effect of acquisitions, the Company’s future financial performance and the effect of government regulations. Actual results may differ materially from those described in the forward looking statements and will be affected by a variety of risks and factors including, without limitation, national and local economic conditions, the general level of interest rates, terms of governmental regulations that affect the Company and interpretations of those regulations, the competitive environment in which the Company operates, financing risks, including the risk that the Company’s cash flows from operations may be insufficient to meet required payments of principal and interest, real estate risks, including variations of real estate values and the general economic climate in local markets and competition for tenants in such markets, acquisition and development risks, including failure of such acquisitions to perform in accordance with projections, and possible environmental liabilities, including costs which may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by the Company. In addition, the Company’s continued qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code. Readers should carefully review the Company’s financial statements and the notes thereto, as well as the risk factors described in the documents the Company files from time to time with the Securities and Exchange Commission.

      The following discussion and analysis of the results of operations and financial condition of the Company should be read in conjunction with the financial statements incorporated by reference in Item 8 of this Annual Report on Form 10-K/A. The following discussion of results of operations is based on net income calculated under accounting principles generally accepted in the United States. The Company, however, considers Funds From Operations, less a reserve for capital replacements, to be a more meaningful measure of economic performance.

Results of Operations

       Comparison of the Year Ended December 31, 2000 to the Year Ended December 31, 1999

Net Income

      The Company recognized net income of $99.2 million, and net income attributable to common stockholders of $36.0 million, for the year ended December 31, 2000, compared to net income and net income attributable to common stockholders of $77.5 million and $24.1 million, respectively, for the year ended December 31, 1999. Net income attributable to common stockholders represents net income less dividends accrued on preferred stock.

      The following paragraphs discuss the results of operations in detail.

       Consolidated Rental Property Operations

      The increases in consolidated rental property operations resulted from improved same store sales results, acquisitions of properties in 2000 and 1999, and the purchase of limited partnership interests from unaffiliated third parties, which gave the Company a controlling interest in partnerships owning 201 properties in 2000.

      Consolidated rental and other property revenues from the Company’s owned and controlled properties totaled $1,051.0 million for the year ended December 31, 2000, compared to $533.9 million for the year ended December 31, 1999, an increase of $517.1 million, or 96.9%. Of the $517.1 million increase, 92.4% was related to the purchase of controlling interests in limited partnerships owning 201 properties, which resulted in these properties being consolidated during 2000, 4.9% was due to improved same store sales and the remaining 2.7% was due to acquisitions of properties in 2000 and 1999.

      Consolidated property operating expenses totaled $426.2 million for the year ended December 31, 2000, compared to $213.8 million for the year ended December 31, 1999, an increase of $212.4 million, or 99.3%. The purchase of controlling interests in limited partnerships owning 201 properties, which resulted in these properties being consolidated during 2000, contributed 89.0% of the increase; 3.6% was due to same store sales increases and

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the remaining 7.4% was due to acquisitions of properties in 2000 and 1999. Property operating expenses consist of on-site payroll costs, utilities (net of reimbursements received from tenants), contract services, turnover costs, repairs and maintenance, advertising and marketing, property taxes and insurance. The Company believes that energy costs will not have a material adverse effect on its results of operations.

      Consolidated owned property management expenses, representing the costs of managing the Company’s owned or controlled properties, totaled $13.7 million for the year ended December 31, 2000, compared to $1.7 million for the year ended December 31, 1999, an increase of $12.0 million. The increase was due to the purchase of controlling interests in limited partnerships owning 201 properties, which resulted in these properties being consolidated in 2000.

       Consolidated Service Company Business

      Income from the consolidated service company business was $5.5 million for the year ended December 31, 2000, compared to $7.0 million for the year ended December 31, 1999, a decrease of $1.5 million or 21.4%. Before consideration of the intercompany allocation of general and administrative expenses and the non-cash charge for the amortization of intangibles, the income from the consolidated service company was comparable to the prior year. The decrease in the amortization of intangibles of $7.6 million was due to property management and asset management contract intangibles that were fully amortized in 1999. The increase in the allocation of general and administrative expenses to the consolidated service company is attributable to the increase in the consolidated properties, whereby the management fee revenue is included in the consolidated service company. Accordingly, the overhead costs associated with managing these properties were reallocated from general and administrative expenses to the consolidated service company to more closely align the expenses with the revenue from the operating activity.

       Consolidated General and Administrative Expenses

      Consolidated general and administrative expenses before allocation (see allocation description above in consolidated service company business) totaled $18.1 million for the year ended December 31, 2000, compared to $15.2 million for the year ended December 31, 1999, an increase of $2.9 million, or 19.1%. The increase is due to additional professional fees incurred to support information technology enhancements and operational initiatives.

       Consolidated Interest Expense

      Consolidated interest expense, which includes the amortization of deferred finance costs, totaled $269.8 million for the year ended December 31, 2000, compared to $140.1 million for the year ended December 31, 1999, an increase of $129.7 million or 92.6%. Of the $129.7 million increase, 46.3% was due to the Company acquiring controlling interests in partnerships owning 201 properties and the subsequent consolidation of these properties. Interest expense incurred in connection with the 2000 and 1999 acquisitions (including the Oxford acquisition) contributed 47.6% of the increase. The remaining 6.1% was due to increased usage of the Company’s credit facility.

       Consolidated Interest Income

      Consolidated interest income totaled $66.2 million for the year ended December 31, 2000, compared to $55.3 million for the year ended December 31, 1999, an increase of $10.9 million or 19.7%. The $66.2 million of interest income in 2000 consisted of recurring interest income of $39.8 million and accretion of loan discounts of $26.4 million. In 1999, the $55.3 million of interest income consisted of recurring interest income of $22.9 million and accretion of loan discounts of $32.4 million. Recurring interest income increased $16.9 million as a result of the following: during 2000, (i) the Company increased notes receivable from general partner loans by approximately $81.7 million, (ii) as a result of improved property operations certain of the outstanding notes receivable in the form of general partner loans remitted cash payments on a recurring basis. The combination of these factors resulted in $10.7 million of the increase in recurring interest income. The remaining recurring interest income increase of $6.2 million resulted from higher average cash balances maintained in money market and interest bearing accounts during 2000. The Company holds investments in notes receivable which were either extended by the Company and are carried at the face amount plus accrued interest (“par value notes”) or were made by predecessors whose positions have been acquired by the Company at a discount and are carried at the acquisition amount using the cost recovery method (“discounted notes”). The decrease in accretion of $6.0 million is due to fewer loans and fewer events allowing the Company to recognize accretion on certain discounted notes.

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       Equity in Earnings (Losses) of Unconsolidated Real Estate Partnerships

      Equity in earnings of unconsolidated real estate partnerships totaled $7.6 million for the year ended December 31, 2000, compared to a loss of $4.5 million for the year ended December 31, 1999, an increase of $12.1 million. Of the $12.1 million increase, $2.1 million was due to acquisition of interests in Oxford properties and the remaining was due to the acquisition of equity interests in better performing multi-family apartment properties where the Company owns a general partnership interest.

       Equity in Earnings (Losses) of Unconsolidated Subsidiaries

      Equity losses from unconsolidated subsidiaries totaled $2.3 million for the year ended December 31, 2000, compared to $5.0 million for the year ended December 31, 1999, a decrease of $2.7 million or 54.0%. The decrease in the equity loss from unconsolidated subsidiaries is due to interest income earned on general partner notes acquired in 2000 through the acquisition of interests in the Oxford properties.

       Minority Interest in Other Entities

      Minority interest in other entities totaled $3.9 million for the year ended December 31, 2000, compared to $0.9 million for the year ended December 31, 1999, an increase of $3.0 million. The increase is due to the consolidation of 201 additional properties in 2000, as compared to the consolidation of 125 additional properties in 1999.

       Gain (Loss) on Disposition of Properties

      Gain (loss) on disposition of properties totaled $26.3 million for the year ended December 31, 2000, compared to a gain(loss) of ($1.8) million for the year ended December 31, 1999, an increase of $28.1 million. The sales in both periods are of properties that are considered by management to be inconsistent with the Company’s long-term investment strategy.

       Comparison of the Year Ended December 31, 1999 to the Year Ended December 31, 1998

Net Income

      The Company recognized net income of $77.5 million, and net income attributable to common stockholders of $24.1 million, for the year ended December 31, 1999, compared to net income and net income attributable to common stockholders of $64.5 million and $37.9 million, respectively, for the year ended December 31, 1998. Net income attributable to common stockholders represents net income less dividends accrued on preferred stock.

      The following paragraphs discuss the results of operations in detail.

       Consolidated Rental Property Operations

      The increases in consolidated rental property operations resulted from improved same store sales results, acquisitions of properties in 1999 and 1998, and through the purchase of limited partnership interests from unaffiliated third parties that gave the Company a controlling interest in partnerships owning 125 properties in 1999.

      Consolidated rental and other property revenues from the Company’s owned and controlled properties totaled $533.9 million for the year ended December 31, 1999, compared to $377.1 million for the year ended December 31, 1998, an increase of $156.8 million, or 41.6%. Of the $156.8 million increase, 49.4% was related to the purchase of controlling interests in limited partnerships owning 125 properties, which resulted in these properties being consolidated in 1999, 4.3% was due to improved same store sales and the remaining 46.3% was due to acquisitions of properties in 1999 and 1998.

      Consolidated property operating expenses totaled $213.8 million for the year ended December 31, 1999, compared to $147.5 million for the year ended December 31, 1998, an increase of $66.3 million, or 44.9%. The purchase of controlling interests in limited partnerships owning 125 properties, which resulted in these properties being consolidated during 1999, contributed 47.0% of the increase; 11.4% was due to same store sales increases and the remaining 42.6% was due to acquisitions of properties in 1999 and 1998. Property operating expenses consist of on-site payroll costs, utilities (net of reimbursements received from tenants), contract services, turnover costs, repairs and maintenance, advertising and marketing, property taxes and insurance.

      Consolidated owned property management expenses, representing the costs of managing the Company’s owned

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or controlled properties, remained consistent with $1.7 million for the year ended December 31, 1999, compared to $2.0 million for the year ended December 31, 1998, a decrease of $0.3 million, or 15.0%.

       Consolidated Service Company Business

      Income from the consolidated service company business was $7.0 million for the year ended December 31, 1999, compared to a loss of $4.9 million for the year ended December 31, 1998, an increase of $11.9 million. Management contracts acquired in the Company’s merger with Insignia Financial Group, Inc and Insignia Properties Trust that are held by the Company contributed 22.9% of the increase. The transfer of majority-owned management contracts from the unconsolidated management companies to the AIMCO Operating Partnership contributed another 49.1% of the change. When the Company owns at least a 40% interest in a real estate partnership, the management contract with that real estate partnership is assigned to the AIMCO Operating Partnership, increasing the amount of revenues recognized by the consolidated service company operations.

       Consolidated General and Administrative Expenses

      Consolidated general and administrative expenses before allocation remained relatively unchanged with $15.2 million for the year ended December 31, 1999, compared to $13.8 million for the year ended December 31, 1998, an increase of $1.4 million, or 10.1%.

       Consolidated Interest Expense

      Consolidated interest expense, which includes the amortization of deferred finance costs, totaled $140.1 million for the year ended December 31, 1999, compared to $89.4 million for the year ended December 31, 1998, an increase of $50.7 million or 56.7%. Interest expense incurred in connection with the 1999 and 1998 acquisitions contributed 52.5% of the increase. Another contributing factor was the consolidation of an additional 125 properties when control was obtained resulting in 22.5% of the increase from 1998.

       Consolidated Interest Income

      Consolidated interest income totaled $55.3 million for the year ended December 31, 1999, compared to $29.4 million for the year ended December 31, 1998, an increase of $25.9 million or 88.1%. The Company holds investments in notes receivable which were either extended by the Company and are carried at the face amount plus accrued interest (“par value notes”) or were made by predecessors whose positions have been acquired by the Company at a discount and are carried at the acquisition amount using the cost recovery method (“discounted notes”). The increase in interest income was due to the recognition of interest income that had previously been deferred and portions of the related discounts for certain discounted notes. As required by generally accepted accounting principles, based upon closed or pending transactions, market conditions, and improved operations of the obligor, the collectibility of such notes is now believed by management to be probable and the amounts and timing of collections are estimable.

Same Store Property Operating Results

      The Company defines “same store” properties as conventional apartment communities in which AIMCO owned greater than ten percent in the comparable periods of 2000 and 1999. Total portfolio includes same store properties plus acquisition properties and redevelopment properties. The following table summarizes the unaudited conventional rental property operations in 2000 and 1999, on a “same store” and a total portfolio basis (dollars in thousands):

                                 
Same Store Total Portfolio


2000 1999 2000 1999




Properties 540 540 585 561
Apartment Units 148,069 148,069 162,329 155,287
Average Physical Occupancy 94.9 % 95.0 % 92.8 % 92.0 %
Average Rent Collected / Occupied Unit / Month $ 646 $ 621 $ 651 $ 620
Revenues $ 825,412 $ 786,795 $ 912,849 $ 812,773
Expenses 313,172 302,260 357,232 311,920




Net Operating Income $ 512,240 $ 484,535 $ 555,617 $ 500,853

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Funds From Operations

      The Company measures its economic profitability based on Funds From Operations (“FFO”), less a reserve for capital replacements of $300 per apartment unit. The Company’s management believes that FFO, less such a reserve, provides investors with an understanding of the Company’s ability to incur and service debt and make capital expenditures. The Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss), computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains and losses from debt restructuring and sales of property, plus real estate related depreciation and amortization (excluding amortization of financing costs), and after adjustments for unconsolidated partnerships and joint ventures. The Company calculates FFO based on the NAREIT definition, as further adjusted for minority interest in the AIMCO Operating Partnership, amortization of intangibles, interest expense on mandatorily redeemable convertible preferred securities, the non-cash deferred portion of the income tax provision for unconsolidated subsidiaries and less the payment of dividends on perpetual and non-dilutive convertible preferred stock. FFO should not be considered an alternative to net income or net cash flows from operating activities, as calculated in accordance with GAAP, as an indication of the Company’s performance or as a measure of liquidity. FFO is not necessarily indicative of cash available to fund future cash needs. In addition, there can be no assurance that the Company’s basis for computing FFO is comparable with that of other real estate investment trusts.

      For the years ended December 31, 2000, 1999 and 1998, the Company’s FFO is calculated as follows (amounts in thousands):

                           
      2000   1999   1998
     
 
 
Income before minority interest in Operating Partnership   $ 109,717     $ 83,712     $ 69,656  
  Real estate depreciation, net of minority interests     302,109       121,689       80,369  
  Real estate depreciation related to unconsolidated entities     59,360       104,764       34,840  
  Amortization of intangibles     12,068       36,731       26,177  
  Deferred tax provision     154       1,763       9,215  
  Interest expenses on mandatorily redeemable convertible preferred securities     8,869       4,858        
  Preferred stock dividends and distributions   (26,112 )   (33,943 )   (20,837 )
   
     
     
 
Diluted Funds From Operations before gain (loss) on disposition of properties     466,165       319,574       199,420  
(Gain) loss on disposition of properties (26,335 )     1,785     (4,674 )
   
     
     
 
Diluted Funds From Operations available to common shares, common share equivalents and common OP Units   $ 439,830     $ 321,359     $ 194,746  
   
     
     
 
Weighted average number of common shares, common share equivalents and common OP Units outstanding:
  Common share and common share equivalents     70,219       63,735       47,624  
  Preferred stock, preferred OP Units, and other securities convertible into common stock     14,432       8,625       2,463  
  Common OP Units     6,855       6,313       6,732  
   
     
     
 
    91,506       78,673       56,819  
   
     
     
 
               
Cash flow provided by operating activities   $ 400,364     $ 253,257     $ 148,414  
Cash flow used in investing activities   (546,981 )   (281,106 )   (328,321 )
Cash flow provided by financing activities     202,128       58,148       214,124  

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Contribution to Free Cash Flow

      The Company seeks to improve funds from operations, less a reserve for capital replacements, on a per share basis. In this regard, in addition to the year-to-year comparative discussion, the Company has provided disclosure (see Footnote 22 in the accompanying Notes to Consolidated Financial Statements) on the contribution (separated between consolidated and unconsolidated activity) to the Company’s Free Cash Flow from several components of the Company’s business, and a reconciliation of Free Cash Flow to FFO, less a reserve for capital replacements, and to net income for the year ended December 31, 2000 and 1999. The Company defines Free Cash Flow as FFO, less a reserve for capital replacements, plus interest expense and preferred stock dividends.

      The following table summarizes the contributors to the Company’s Free Cash Flow (in thousands)

                                 
2000 1999


Amount Contr.% Amount Contr.%




Real estate $ 598,826 86 % $ 435,724 84 %
Service business: recurring 30,644 4 % 36,591 7 %
Service business: fee income 7,438 1 % 4,485 1 %
Interest income: recurring 42,274 6 % 24,428 5 %
Interest income: accretion of loan discount 26,409 4 % 32,460 6 %
General and administrative expenses (7,813 ) (1 )% (13,112 ) (3 )%




   Total Free Cash Flow $ 697,778 100 % $ 520,576 100 %




      Total Free Cash Flow contributed was $697.8 million and $520.6 million in 2000 and 1999, respectively, an increase of $177.2 million or 34.0%.

      The real estate Free Cash Flow contribution was $598.8 million and $435.7 million in 2000 and 1999, respectively, an increase of $163.1 million or 37.4%. Real estate contribution to total Free Cash Flow increased to 86% in 2000 from 84% in 1999. The increase was due to improvements in property operations, acquisitions and tenders.

      The recurring service business contributed $30.6 million (4%) and $36.6 million (7%) to Free Cash Flow in 2000 and 1999, respectively. The decreased contribution of $6.0 million, after consideration of the increase in the intercompany allocation of general administrative expenses of $8.2 million, was due to the establishment of the new Corporate Housing program and other product enhancements. Disposition and refinancing fees contributed $7.4 million (1%) and $4.5 million (1%) to Free Cash Flow in 2000 and 1999, respectively. Fees are earned on partnership sales, refinancings and other transactions. The increase in fee income is due to increased disposition fees received from the sale of 79 properties in 2000, compared to the fees received from the sale of 63 properties in 1999. The income received from refinancing fees also increased to $4.0 million in 2000, compared to $0.6 million in 1999.

      Consolidated recurring interest income increased $16.9 million as a result of the following: during 2000, (i) the Company increased notes receivable from general partner loans by approximately $81.7 million, (ii) as a result of improved property operations certain of the outstanding notes receivable in the form of general partner loans remitted cash payments on a recurring basis. The combination of these factors resulted in $10.7 million of the increase in recurring interest income. The remaining consolidated recurring interest income increase of $6.2 million resulted from higher average cash balances maintained in money market and interest bearing accounts during 2000. The decrease in accretion of $6.0 million is due to fewer loans and fewer events allowing the Company to recognize accretion on certain discounted notes. The Company considers disposition and refinancing fees and interest income from notes purchased at a discount as transactional. Together, the transactional contribution was $33.8 million (5%) and $36.9 million (7%) of Free Cash Flow contribution in 2000 and 1999.

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      Contributions to conventional real estate Free Cash Flow for 2000 and 1999 before adjustment for minority interest were as follows (in thousands):

                                 
2000 1999


Amount Contr.% Amount Contr.%




Average monthly rent greater than $900 per unit $ 83,651 14 % $ 42,205 10 %
Average monthly rent $800 to $900 per unit 62,613 10 % 39,267 10 %
Average monthly rent $700 to $800 per unit 72,533 12 % 59,587 15 %
Average monthly rent $600 to $700 per unit 165,512 27 % 89,293 22 %
Average monthly rent $500 to $600 per unit 163,196 27 % 114,719 28 %
Average monthly rent below $500 per unit 61,629 10 % 58,348 15 %




    Total conventional real estate contribution to Free
        Cash Flow before adjustment for minority interest
$ 609,134 100 % $ 403,419 100 %




      The conventional real estate contribution to Free Cash Flow was $609.1 million and $403.4 million in 2000 and 1999, respectively, an increase of $205.7 million or 51.0%. The increase was due to improvements in property operations, acquisitions and tenders.

      The changes in the composition of conventional and real estate contribution resulted in an increase in contribution from properties with an average monthly rent greater than $800 per unit to 24% from 20% in 1999, and a decrease in contribution from properties with an average monthly rent below $500 per unit to 10% from 15% in 1999. The changes were due to improvements in property operations, acquisitions, tenders and dispositions.

      Footnote 22 in the accompanying Notes to Consolidated Financial Statements provides additional detail on each component of Free Cash Flow. The Company believes this disclosure is complementary to the results of operations discussed above.

Liquidity and Capital Resources

                         
2000 1999 1998



Cash flow provided by operating activities $ 400,364 $ 253,257 $ 148,414
Cash flow used in investing activities (546,981 ) (281,106 ) (328,321 )
Cash flow provided by financing activities 202,128 58,148 214,124

      At December 31, 2000, the Company had $157.1 million in cash and cash equivalents and $126.9 million of restricted cash, primarily consisting of reserves and impounds held by lenders for capital expenditures, property taxes and insurance. In addition, cash, cash equivalents and restricted cash are held by partnerships and subsidiaries that are not presented on a consolidated basis. The Company’s principal demands for liquidity include normal operating activities, payments of principal and interest on outstanding debt, capital improvements, acquisitions of and investments in properties, dividends paid to stockholders and distributions paid to limited partners. The Company considers its cash provided by operating activities to be adequate to meet short-term liquidity demands.

      In August 1999, the Company closed a $300 million revolving credit facility arranged by Bank of America, N.A., Fleet National Bank (successor to BankBoston, N.A.) and First Union National Bank with a syndicate comprised of a total of nine lender participants. Effective March 15, 2000 the credit facility was expanded by $45 million with the potential to expand it by another $55 million to a total of $400 million. Of the $55 million potential expansion, $5 million was expanded on April 14, 2000 bringing the total availability to $350 million. In September 2000, the credit facility was amended and restated. The obligations under the credit facility are secured by a first priority pledge of certain non-real estate assets of the Company and a second priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., AIMCO Holdings, L.P., in certain subsidiaries of AIMCO and certain options to purchase Beneficial Assignee Interests (“BACs”) in OTEF. Borrowings under the credit facility, including the $50 million expansion, are available for general corporate purposes. The credit facility matures in July 2002 and can be extended twice at AIMCO’s option, for a term of one year. The annual interest rate under the new credit facility is based on either LIBOR or a base rate, which is the higher of Bank of America’s reference rate or 0.50% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 2.05% and 2.55%, in the case of LIBOR-based loans, and between 0.55% and 1.05%, in the case of base rate loans, based upon a fixed charge coverage ratio. The weighted average interest rate at December 31, 2000 was 9.16%. The amount available under the credit facility at December 31, 2000 was $95.3 million, less $1.2 million for outstanding letters of credit.

      On September 20, 2000 AIMCO completed the purchase of all the stock and other interests (not already owned by AIMCO) held by the principals, officers and directors of ORFG in the Oxford entities, including ORFG, which own interests in and control the Oxford properties. The purchase price of $1,189 million was comprised of $266 million in cash, $861 million of assumed liabilities and incurred transaction costs and $62 million in common OP units valued at $45 per unit. The Oxford properties are 167 apartment communities with a total of 36,949 units located in 18 states. The Company borrowed $279 million to pay the cash portion of the purchase price and transactions costs for the Oxford acquisition from Bank of America, N.A., Lehman Commercial Paper Inc. and several other lenders, pursuant to a term loan with a total availability of $302 million. Transaction costs (including advisory fees) incurred on the term loan were $9.4 million. The borrowers under the term loan are the AIMCO Operating Partnership, NHP Management Company and AIMCO/Bethesda Holdings, Inc., and all obligations thereunder are guaranteed by AIMCO and certain of its subsidiaries. The obligations under the term loan are secured by a first priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., and AIMCO Holdings, L.P. in certain subsidiaries of AIMCO and certain options to purchase BACs in OTEF and a second priority pledge of certain non-real estate assets of the Company. The annual interest rate under the term loan is based either on LIBOR or a base rate which is the higher of Bank of America, N.A.’s reference rate or 0.5% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 4.0% and 5.0% in the case of LIBOR-based loans, and between 1.0% and 2.0% in the case of base rate loans, based upon the number of months the loan is outstanding.

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The term loan expires in July 2002. The financial covenants contained in the term loan require the AIMCO Operating Partnership to maintain a ratio of debt to gross asset value of no more than 0.55 to 1.0, an interest coverage ratio of 2.25 to 1.0, and a fixed charge coverage ratio of at least 1.50 to 1.0. In addition, the term loan limits AIMCO from distributing more than 80% of its Funds From Operations (as defined) (or such amounts as may be necessary for AIMCO to maintain its status as a REIT). The term loan imposes minimum net worth requirements and provides other financial covenants related to certain of AIMCO’s assets and obligations. The total outstanding under the term loan at December 31, 2000 was $137 million of which $74 million is classified as secured short-term financing of the Company and the remainder is a liability at the unconsolidated subsidiaries and, therefore, is included in investments in unconsolidated subsidiaries. Effective January 1, 2001, in connection with the REIT Modernization Act, the remaining liability of $63 million will be consolidated.

      As of December 31, 2000, substantially all of the Company’s owned or controlled properties and 78.6% of its total assets were encumbered by or served as collateral for debt. As of December 31, 2000, the Company had total secured outstanding indebtedness of $4,360.1 million, comprised of $3,258.3 million of secured long-term financing, $773.0 million of secured tax-exempt long-term bond financing and $328.7 million in secured short-term financing. As of December 31, 2000, approximately 8% of the Company’s indebtedness bears interest at variable rates. As of December 31, 2000, the Company had 31 loans, each of which is secured by the property owned by such partnership and also cross-collateralized with certain other loans. The aggregate principal balances outstanding on 31 loans that are cross-collateralized are $154.1 million as of December 31, 2000. Other than these loans, none of the Company’s debt is subject to cross-collateralization provisions. The weighted average interest rate on the Company’s secured, long-term notes payable was 7.89%, with a weighted average maturity of 11 years as of December 31, 2000. At December 31, 2000, the weighted average interest rate on the Company’s secured short-term financing was 9.16%.

      During the year ended December 31, 2000, the Company issued $636.0 million of long-term, fixed rate, fully amortizing non-recourse mortgage notes payable with a weighted average interest rate of 7.5%. Each of the notes is individually secured by one of 107 properties with no cross-collateralization. The Company used the net proceeds after transaction costs of $625.5 million to repay existing debt. During the year ended December 31, 2000, the Company has also assumed $60.6 million of long-term, fixed-rate, fully amortizing notes payable with a weighted average interest rate of 7.5% in connection with the acquisition of properties. Each of the notes is individually secured by one of 12 properties with no cross-collateralization.

      During the year ended December 31, 2000, the Company issued $230.0 million of preferred stock in three direct placements yielding $227 million of net proceeds. See Footnote 15 to the consolidated financial statements for further discussion on these preferred stocks.

      The Company expects to meet its long-term liquidity requirements, such as refinancing debt and property acquisitions, through long-term borrowings, both secured and unsecured, the issuance of debt or equity securities (including OP Units) and cash generated from operations. In August 1998, AIMCO and the AIMCO Operating Partnership filed a shelf registration statement with the Securities and Exchange Commission (“SEC”) with respect to an aggregate of $1,268 million of debt and equity securities of AIMCO (of which $268 million was carried forward from AIMCO’s 1997 shelf registration statement) and $500 million of debt securities of the AIMCO Operating Partnership. The registration statement was declared effective by the SEC on December 10, 1998. As of March 29, 2001, the Company had approximately $925 million available and the AIMCO Operating Partnership had $500 million available from this registration statement. The Company expects to finance acquisitions of real estate interests with cash from operations or the issuance of equity securities and debt.

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Table of Contents

Capital Expenditures

      For the year ended December 31, 2000, the Company spent a total of $261.9 million for capital expenditures on its portfolio of assets. Capital expenditures include capital replacements (expenditures for routine maintenance of a property), initial capital expenditures (“ICE”, expenditures at a property that have been identified, at the time the property is acquired, as expenditures to be incurred within one year of the acquisition) and redevelopment and enhancements (amenities that add a material new feature or revenue source at a property). The Company’s share of those expenditures are as follows (in millions):

                         
Conventional Assets Affordable Assets Total



Capital Replacements $ 36.7 $ 3.7 $ 40.4
ICE 55.4 1.3 56.7
Redevelopment and Enhancements 156.7 8.1 164.8



Total $ 248.8 $ 13.1 $ 261.9



      These expenditures were funded by net cash provided by operating activities, working capital reserves, and borrowings under the Company’s credit facility. ICE and capital enhancements will primarily be funded by cash from operating activities and borrowings under the Company’s revolving credit facility.

      The Company’s accounting treatment of various capital and maintenance costs is detailed in the following table:

         
Depreciable life
Expenditure Accounting treatment in years



Initial capital expenditures capitalize 5 to 15
Capital enhancements capitalize 5 to 30
Capital replacements:
Carpet/vinyl replacement capitalize 5
Carpet cleaning expense N/A
Major appliance replacement (refrigerators, stoves,
dishwashers, washers/dryers)
capitalize 5
Cabinet replacement capitalize 5
Major new landscaping capitalize 5
Seasonal plantings and landscape replacements expense N/A
Roof replacements capitalize 15
Roof repairs expense N/A
Model furniture capitalize 5
Office equipment capitalize 5
Exterior painting, significant capitalize 5
Interior painting expense N/A
Parking lot repairs expense N/A
Parking lot repaving capitalize 15
Equipment repairs expense N/A
General policy for capitalization capitalize amounts in excess of $250 Various

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Return on Assets and Return on Equity

The Company’s Return On Assets and Return On Equity for the years ended December 31, 2000 and 1999 are as follows:

                                                   
Based on AFFO Based on FFO


Year Ended Year Ended
December 31, December 31,


2000 1999 2000 1999




Return on Assets(a) 9.8 % 9.2 % 10.3 % 9.7 %
Return on Equity
Basic(b) 14.7 % 14.5 % 15.8 % 15.6 %
Diluted(c) 13.3 % 12.9 % 14.3 % 13.9 %


(a)   The Company defines Return on Assets (AFFO) as (i) annualized Free Cash Flow, divided by (ii) Average Assets. Average Assets are computed by averaging the sum of Assets, as defined below, at the beginning and the end of the period. Assets are total assets, plus accumulated depreciation, less accumulated capital replacements of $103.6 million and $63.3 million, for the years ended December 31, 2000 and 1999 respectively, and less all non-indebtedness liabilities. The Company defines Return on Assets (FFO) as (i) annualized Free Cash Flow plus capital replacements, divided by (ii) Average Assets plus accumulated capital replacements.
(b)   The Company defines Return on Equity-Basic (AFFO) as (i) annualized AFFO-Basic, divided by (ii) Average Equity. Average Equity is computed by averaging the sum of Equity, as defined below, at the beginning and the end of the period. Equity is total stockholders’ equity, plus accumulated depreciation, less accumulated capital replacements of $103.6 million and $63.3 million, for the years ended December 31, 2000 and 1999, respectively, less preferred stock, plus minority interest in the AIMCO Operating Partnership, net of preferred OP Unit interests ($116.6 million and $72.6 million, for the years ended December 31, 2000 and 1999 respectively). The Company defines Return on Equity-Basic (FFO) as (i) annualized AFFO-Basic plus capital replacements; divided by (ii) Average Equity plus accumulated capital replacements.
(c)   The Company defines Return on Equity-Diluted (AFFO) and Return on Equity-Diluted (FFO) assuming conversion of debt and preferred securities whose conversion is dilutive.

Contingencies

       Environmental

      Various Federal, state and local laws subject property owners or operators to liability for the costs of removal or remediation of certain hazardous substances present on a property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of the hazardous substances. The presence of, or the failure to properly remediate hazardous substances may adversely affect occupancy at contaminated apartment communities and the ability to sell or borrow against contaminated properties. In addition to the costs associated with investigation and remediation actions brought by governmental agencies, the presence of hazardous wastes on a property could result in personal injury or similar claims by private plaintiffs. Various laws also impose liability for the cost of removal or remediation of hazardous substances at the disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous or toxic substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of our properties, the Company could potentially be liable for environmental liabilities or costs associated with properties or properties it acquires or manages in the future.

Inflation

      Substantially all of the leases at the Company’s apartment properties are for a period of twelve months or less, allowing, at the time of renewal, for adjustments in the rental rate and the opportunity to re-lease the apartment unit at the prevailing market rate. The short-term nature of these leases generally serves to minimize the risk to the Company of the adverse effect of inflation and the Company does not believe that inflation has had a material adverse impact on its operations.

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ITEM 7a. Quantitative and Qualitative Disclosures About Market Risk

      The Company’s primary market risk exposure relates to changes in interest rates. The Company is not subject to any foreign currency exchange rate risk or commodity price risk, or any other material market rate or price risks. The Company uses predominantly long-term, fixed-rate and self-amortizing non-recourse mortgage debt in order to avoid the refunding or repricing risks of short-term borrowings. The Company uses short-term debt financing and working capital primarily to fund acquisitions and generally expects to refinance such borrowings with proceeds from operating activities, equity offerings or long-term debt financings.

      The Company had $359.5 million of variable rate debt outstanding at December 31, 2000, which represents 8% of the Company’s total outstanding debt. Based on this level of debt, an increase in interest rates of 1% would result in the Company’s income and cash flows being reduced by $3.6 million on an annual basis. At December 31, 2000, the Company had $4,000.6 million of fixed-rate debt outstanding.

      As of December 31, 2000, the scheduled principal amortization and maturity payments for the Company’s consolidated secured notes payable and consolidated secured tax-exempt bonds are as follows (in thousands):

                         
Amortization Maturities Total



2001 $ 79,491 $ 96,343 $ 175,834
2002 83,260 102,484 185,744
2003 92,744 150,237 242,981
2004 96,970 262,968 359,938
2005 104,445 142,302 246,747
Thereafter 2,820,131

$ 4,031,375

      The estimated aggregate fair value of the Company’s cash and cash equivalents, receivables, payables and short-term secured debt as of December 31, 2000 is assumed to approximate their carrying value due to their relatively short terms. Management further believes that the fair market value of the Company’s secured tax-exempt bond debt and secured long-term debt approximates their carrying value, based on market comparisons to similar types of debt instruments having similar maturities.

ITEM 8. Financial Statements and Supplementary Data

      The independent auditor’s report, consolidated financial statements and schedule listed in the accompanying index are filed as part of this report and incorporated herein by this reference. See “Index to Financial Statements” on page F-1.

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

      None.

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PART III

ITEM 10. Directors and Executive Officers of the Registrant

      The Executive Officers and Directors of the Company as of March 8, 2001 are as follows:

                 
Name Age First Elected Position




Terry Considine 53 July 1994 Chairman of the Board of Directors and Chief Executive Officer
Peter K. Kompaniez 56 July 1994 Vice Chairman of the Board of Directors and President
Harry G. Alcock 38 October 1999 Executive Vice President and Chief Investment Officer
Joel F. Bonder 52 December 1997 Executive Vice President, General Counsel and Secretary
Joseph DeTuno 55 February 2001 Executive Vice President – Redevelopment
Patrick J. Foye 44 May 1998 Executive Vice President
Lance J. Graber 39 October 1999 Executive Vice President – Acquisitions
Steven D. Ira 50 July 1994 Co-Founder and Executive Vice President – Property Operations
Paul J. McAuliffe 44 February 1999 Executive Vice President and Chief Financial Officer
Ronald D. Monson 44 February 2001 Executive Vice President and Head of Property Operations
James N. Bailey 54 June 2000 Director
Richard S. Ellwood 69 July 1994 Director, Chairman of the Audit Committee
J. Landis Martin 55 July 1994 Director, Chairman of the Compensation Committee
Thomas L. Rhodes 61 July 1994 Director

      The following is a biographical summary of the experience of the current directors and executive officers of the Company for the past five years or more.

      Terry Considine. Mr. Considine has been Chairman of the Board of Directors and Chief Executive Officer of the Company since July 1994. Mr. Considine serves as Chairman and Chief Executive Officer of American Land Lease, Inc., another public real estate investment trust and successor to Asset Investors Corporation and Commercial Assets, Inc.. Mr. Considine has been and remains involved as a principal in a variety of other business activities.

      Peter K. Kompaniez. Mr. Kompaniez has been Vice Chairman of the Board of Directors since July 1994 and was appointed President in July 1997. Mr. Kompaniez has also served as Chief Operating Officer of NHP, after it was acquired by the Company in December 1997.

      Harry G. Alcock. Mr. Alcock served as a Vice President of the Company from July 1996 to October 1997, when he was promoted to Senior Vice President-Acquisitions. Mr. Alcock served as Senior Vice President-Acquisitions until October 1999, when he was promoted to Executive Vice President and Chief Investment Officer. Mr. Alcock has had responsibility for acquisition and financing activities of the Company since July 1994.

      Joel F. Bonder. Mr. Bonder was appointed Executive Vice President, General Counsel and Secretary of the Company in December 1997. Prior to joining the Company, Mr. Bonder served as Senior Vice President and General Counsel of NHP from April 1994 until it was acquired by the Company in December 1997.

      Joseph DeTuno. Mr. DeTuno was appointed Executive Vice President-Redevelopment of the Company in February 2001. Mr. DeTuno has been Senior Vice President-Property Redevelopment of the Company since August

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1997. Mr. DeTuno was previously President and founder of JD Associates, his own full service real estate consulting, advisory and project management company which he founded in 1990.

      Patrick J. Foye. Mr. Foye was appointed Executive Vice President of the Company in May 1998. He is responsible for acquisitions of partnership securities, consolidation of minority interests, and corporate and other acquisitions. Prior to joining the Company, Mr. Foye was a Merger and Acquisitions Partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP from 1989 to 1998 and was Managing Partner of the firm’s Brussels, Budapest and Moscow offices from 1992 through 1994. Mr. Foye is also Deputy Chairman of the Long Island Power Authority and serves as a member of the New York State Privatization Council.

      Lance J. Graber. Mr. Graber was appointed Executive Vice President-Acquisitions of the Company in October 1999. His principal business function is acquisitions. Prior to joining the Company, Mr. Graber was a Director at Credit Suisse First Boston from 1994 to May 1999, during which time he supervised a staff of seven in the making of principal investments in hotel, multi-family and assisted living properties.

      Steven D. Ira. Mr. Ira is a Co-Founder of the Company and has served as Executive Vice President —Property Operations since July 1994. From 1987 until July 1994, he served as President of Property Asset Management.

      Paul J. McAuliffe. Mr. McAuliffe has been Executive Vice President of the Company since February 1999 and was appointed Chief Financial Officer in October 1999. Prior to joining the Company, Mr. McAuliffe was Senior Managing Director of Secured Capital Corp.

      Ronald D. Monson. Mr. Monson was promoted to Executive Vice President and Head of Property Operations in February 2001. He served as Regional Vice President of the Company from March 1997 to May 1998, when he was promoted to Senior Vice President of the Midwest Division. Mr. Monson served as Senior Vice President of the Midwest Division until January 1999, when he was appointed Senior Vice President of the Far West Division. From April 1994 to February 1997, Mr. Monson was a Regional Vice President for Great Atlantic Property Management.

      James N. Bailey. Mr. Bailey was appointed a Director of the Company in June 2000 and is currently a member of the Audit and Compensation Committees. Mr. Bailey is co-founder of Cambridge Associates, LLC and co-founder, Treasurer and Director of The Plymouth Rock Company, Direct Response Corporation, and Homeowner’s Direct Corporation, all U.S. personal lines insurance companies. In addition, he serves as a Trustee and member of the Investment Committee of the New England Aquarium. He has also been a member of a number of Harvard University alumni affairs committees, including the Overseers Nominating Committee and The Harvard Endowment Committee. Mr. Bailey is a member of the Massachusetts Bar and the American Bar Associations.

      Richard S. Ellwood. Mr. Ellwood was appointed a Director of the Company in July 1994. Mr. Ellwood is currently Chairman of the Audit Committee and a member of the Compensation Committee. Mr. Ellwood is the founder and President of R.S. Ellwood & Co., Incorporated, a real estate investment banking firm. Prior to forming R.S. Ellwood & Co., Incorporated in 1987, Mr. Ellwood had 31 years experience on Wall Street as an investment banker, serving as: Managing Director and senior banker at Merrill Lynch Capital Markets from 1984 to 1987; Managing Director at Warburg Paribas Becker from 1978 to 1984; general partner and then Senior Vice President and a director at White, Weld & Co. from 1968 to 1978; and in various capacities at J.P. Morgan & Co. from 1955 to 1968. Mr. Ellwood currently serves as a director of Felcor Lodging Trust, Incorporated and Florida East Coast Industries, Inc.

      J. Landis Martin. Mr. Martin was appointed a Director of the Company in July 1994 and became Chairman of the Compensation Committee on March 19, 1998. Mr. Martin is a member of the Audit Committee. Mr. Martin has served as President and Chief Executive Officer of NL Industries, Inc., a manufacturer of titanium dioxide since 1987. Mr. Martin has served as Chairman of Tremont Corporation (“Tremont”), a holding company operating through its affiliates Titanium Metals Corporation (“TIMET”) and NL Industries, Inc. (“NL”), since 1990 and as Chief Executive Officer and a director of Tremont since 1988. Mr. Martin has served as Chairman of TIMET, an integrated producer of titanium since 1987 and Chief Executive Officer since January, 1995. From 1990 until its acquisition by a predecessor of Halliburton Company (“Halliburton”) in 1994, Mr. Martin served as Chairman of the Board and Chief Executive Officer of Baroid Corporation, an oilfield services company. In addition to Tremont, NL and TIMET, Mr. Martin is a director of Halliburton, which is engaged in the petroleum services, hydrocarbon and engineering industries, and Crown Castle International Corporation, a telecommunications company.

      Thomas L. Rhodes. Mr. Rhodes was appointed a Director of the Company in July 1994 and is currently a member of the Audit and Compensation Committees. Mr. Rhodes has served as the President and Director of National Review magazine since November 1992, where he has also served as a Director since 1988. From 1976 to 1992, he held various positions at Goldman, Sachs & Co. and was elected a General Partner in 1986 and served as a General Partner from 1987 until November 1992. Mr. Rhodes is Vice Chairman of the Board of Directors of The

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Lynde and Harry Bradley Foundation and American Land Lease, Inc. and serves as a Director of Delphi Financial Corporation and its subsidiaries. He also serves as a Director of Delphi International, Ltd and Oracle Reinsurance Company.

ITEM 11. Executive Compensation

SUMMARY COMPENSATION TABLE

      The following table sets forth the compensation paid for each of the three fiscal years ended December 31, 2000 to AIMCO’s Chief Executive Officer and each of the four other most highly compensated executive officers of AIMCO (the “Named Executive Officers”).

                                                           
Long Term
Compensation(1)(2)

Annual Compensation Other Annual Restricted
Stock
Securities
Underlying
Stock
Options/SARs
All Other
Name and Principal Position Year Salary($) Bonus($)(3) Compensation($) Awards($)(4) Awards (#) Compensation($)








Terry Considine 2000 $ 275,000 None None None 200,000 None
Chairman of the Board of 1999 275,000 $ 1,275,000 None None 385,294 None
Directors and Chief Executive Officer 1998 275,000 1,025,000 None None 150,000 None
Peter K. Kompaniez 2000 $ 235,000 None None None 200,000 None
President and Vice Chairman 1999 235,000 $ 985,000 None None 75,000 None
1998 235,000 735,000 None None 75,000 None
Harry Alcock 2000 $ 200,000 None None $ 400,000 20,000 None
Executive Vice-President and 1999 180,000 $ 280,000 None None 35,529 None
Chief Investment Officer 1998 150,000 200,000 None None 11,644 None
Patrick J. Foye(5) 2000 $ 225,000 None None $ 2,000,000 None None
Executive Vice President 1999 225,000 $ 400,000 None 1,000,000 29,412 None
1998 135,600 400,000 None None 375,000 None
Paul McAuliffe(6) 2000 $ 200,000 None None $ 1,200,000 20,000 None
Executive Vice President and 1999 166,667 $ 300,000 None 1,000,000 223,529 None
Chief Financial Officer


(1)   Excludes 78,948 shares and 64,865 shares of Class A Common Stock underlying options granted to Messrs. Foye and McAuliffe, respectively, from 1998 to 1999, which were immediately exercised to purchase shares pursuant to the Company’s leveraged stock purchase program. See “Certain Relationships and Related Transactions —Stock Purchase Loans.”
(2)   Options were awarded in January 1999, 2000 and 2001, respectively, in respect of 1998, 1999 and 2000 fiscal years.
(3)   Includes all Discretionary and Incentive cash compensation earned by the Named Executive Officers.
(4)   The value of the restricted stock awards at the end of the last fiscal year is $1,248,438, and $1,248,438 for Messrs. Foye and McAuliffe, respectively. Such value is determined by the market price, $49.9375, for the stock at the last day of the fiscal year. The number of restricted stock awards held by Messrs. Foye and McAuliffe at the end of the last fiscal year is 25,000 shares, and 25,000 shares, respectively. Restrictions lapse on the second (40%), third (20%), fourth (20%) and fifth (20%) anniversaries of the 1999 restricted stock awards of Messrs. Foye and McAuliffe and ratably over three years for the 2000 restricted stock awards of Messrs. Alcock, Foye and McAuliffe. The restricted stock awards in consideration of 2000 to Messrs. Alcock, Foye and McAuliffe, 8,398 shares, 41,990 shares and 25,194 shares, respectively, will be issued on May 1,

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    2001. Holders of Restricted Stock Awards are entitled to receive the dividends thereto commencing on the date of grant.
(5)   Mr. Foye was not an employee of the Company prior to May 1998.
(6)   Mr. McAuliffe was not an employee of the Company prior to February 1999.

OPTION/SAR GRANTS IN LAST FISCAL YEAR

      Information on options granted in 2001 for the 2000 fiscal year to the Named Executive Officers is set forth in the following table.

                                                 
Individual Grants(1)

% of Total Potential Realizable Value at
Number of Options/SARs Assumed Annual Rates of Stock
Securities Granted To Price Appreciation for Option
Underlying Employees Exercise or Term(2)
Options/SARs in Fiscal Base Expiration
Name Granted(#) Year Price($/Sh) Date 5%($) 10%($)







Terry Considine 200,000 27.4 % $ 47.63 1/24/2011 $ 3,016,489 $ 10,445,817
Peter K. Kompaniez 200,000 27.4 % 47.63 1/24/2011 3,016,489 10,445,817
Harry Alcock 20,000 2.7 % 47.63 1/24/2011 301,649 1,044,582
Patrick J. Foye None None None None None None
Paul J. McAuliffe 20,000 2.7 % 47.63 1/24/2011 301,649 1,044,582


(1)   Unless otherwise specified, options vest over three years. Under the terms of the Apartment Investment and Management Company 1997 Stock Award and Incentive Plan (the “1997 Stock Plan”), the plan administrator retains discretion, subject to certain restrictions, to modify the terms of outstanding options. The exercise price of incentive options granted under the 1997 Stock Plan equal the fair market value of a share of Class A Common Stock on the date of grant. The exercise price of non-qualified options granted under the 1997 Stock Plan generally equals the fair market value of a share of Class A Common Stock on the date of grant.
(2)   Assumed annual rates of stock price appreciation are set forth for illustrative purposes only. The amounts shown are for the assumed rates of appreciation only, do not constitute projections of future stock price performance, and may not be realized.

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AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL YEAR AND
FISCAL YEAR-END OPTION/SAR VALUES

      Information on option exercises during 2000 by the Named Executive Officers, and the value of unexercised options held by Named Executive Officers at December 31, 2000 is set forth in the following table.

                                                         
Number of Securities
Underlying Unexercised Value of Unexercised
Options/SARs at In-the-Money Options/SARs
FY-End(#) (1) at FY-End($)(2)
Shares Acquired Value

Name on Exercise(#) Realized($) Exercisable Unexercisable Exercisable Unexercisable







Terry Considine 89,600 $ 1,286,400 1,016,000 2,381,694 $ 12,763,500 $ 27,145,525
Peter K. Kompaniez 2,400 70,350 326,800 839,800 4,118,825 8,032,138
Harry Alcock 6,069 158,688 42,000 130,473 527,625 1,354,267
Patrick J. Foye None None None 404,412 None 4,962,962
Paul J. McAuliffe None None None 243,529 None 2,856,613


(1)   Includes: 200,000 shares, 200,000 shares, 20,000 shares and 20,000 shares of Class A Common Stock subject to options granted to Messrs. Considine, Kompaniez, Alcock and McAuliffe, respectively, in January 2001.
(2)   Market value of underlying securities at fiscal year-end, less the exercise price. Market value is determined based on the closing price of the Class A Common Stock on the New York Stock Exchange on December 31, 2000 of $49.9375 per share.

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ITEM 12. Security Ownership of Certain Beneficial Owners and Management

      The following table sets forth certain information available to the Company, as of March 8, 2001, with respect to equity securities of the Company or any of its subsidiaries (other than directors qualifying shares) beneficially owned by (i) each director and nominee, the chief executive officer and the Named Executive Officers who were serving as of December 31, 2000, and (ii) all directors and executive officers as a group. The table also sets forth certain information available to the Company, as of March 8, 2001, with respect to shares of AIMCO’s Class A Common Stock held by each person known to the Company to be the beneficial owner of more than 5% of such shares. This table does not reflect options that are not exercisable within 60 days. Unless otherwise indicated, each person has sole voting and investment power with respect to the securities beneficially owned by that person. The business address of each of the following directors and executive officers is 2000 South Colorado Boulevard, Tower Two, Suite 2-1000, Denver, Colorado 80222-7900, unless otherwise specified.

                                             
Percentage of
Number of Shares Class A Common Number of Percentage
of Class A Stock Partnership Ownership of the
Name and Address of Beneficial Owner Common Stock(1) Outstanding(2) Units(3) Company(4)





Directors & Executive Officers:
Terry Considine 3,382,374 (5) 4.6 % 2,406,033 (6) 6.9 %
Peter K. Kompaniez 1,140,501 (7) 1.6 % 348,375 (8) 1.8 %
Harry Alcock 87,245 (9) * 47,682 (10) *
Patrick J. Foye 293,472 (11) * 17,484 (12) *
Paul McAuliffe 91,295 (13) * 6,358 (14) *
Richard S. Ellwood 25,325 (15) * *
J. Landis Martin 23,500 (16) * 34,391 (17) *
Thomas L. Rhodes 52,100 (18) * 34,365 (19) *
James N. Bailey 1,500 * *
All directors and executive
*officers as a group (13 persons) 5,857,064 (20) 7.9 % 3,164,100 (21) 10.6 %
5% or Greater Holders:
FMR Corp.
82 Devonshire Street
Boston, Massachusetts 02109
5,309,975 (22) 7.4 % 6.5 %
Security Capital Preferred Growth
    Incorporated
11 South LaSalle Street, Second Floor
Chicago, Illinois 60603
5,102,410 (23) 6.8 % 6.2 %
General Electric Capital Services, Inc.
260 Long Ridge Road
Stamford, Connecticut 06927
4,594,300 (24) 6.0 % 5.6 %
Cohen & Steers Capital Management, Inc.
757 Third Avenue
New York, New York 10017
3,911,300 (25) 5.5 % 4.8 %
LaSalle Investment Management
    (Securities), LP
200 East Randolph Drive
Chicago, Illinois 60601
3,872,831 (26) 5.4 % 4.7 %


*   Less than 1.0%
(1)   Excludes shares of Class A Common Stock issuable upon redemption of common OP Units or Class I High Performance Partnership Units (“Class I HPUs”)
(2)   Represents the number of shares of Class A Common Stock beneficially owned by each person divided by the total number of shares of Class A Common Stock outstanding. Any shares of Class A Common

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    Stock which may be acquired by a person within 60 days upon the exercise of options, warrants, rights or conversion privileges are deemed to be beneficially owned by that person and are deemed outstanding for the purpose of computing the percentage of outstanding shares of Class A Common Stock owned by that person, but not any other person.
(3)   Through wholly owned subsidiaries, the Company acts as general partner of, and, as of March 8, 2001, holds approximately 90% of the interests in the AIMCO Operating Partnership. After a one-year holding period, common OP Units may be tendered for redemption and, upon tender, may be acquired by the Company for shares of Class A Common Stock at an exchange ratio of one share of Class A Common Stock for each common OP Unit (subject to adjustment). If all common OP Units were acquired by the Company for Class A Common Stock (without regard to the ownership limit set forth in AIMCO’s Charter) these shares of Class A Common Stock would constitute approximately 12% of the then outstanding shares of Class A Common Stock. Common OP Units are subject to certain restrictions on transfer. Class I HPUs are not convertible into Class A Common Stock. However, in the event of a change of control of the Company, holders of the Class I HPUs will have redemption rights similar to those of holders of common OP Units.
(4)   Represents the number of shares of Class A Common Stock beneficially owned, divided by the total number of shares of Class A Common Stock outstanding, assuming, in both cases, that all 8,333,687 common OP Units and 2,379,084 Class I HPUs outstanding as of March 8, 2001, are redeemed in exchange for shares of Class A Common Stock (notwithstanding any holding period requirements, AIMCO’s ownership limit and, in the case of Class I HPUs, the absence of a change of control). See footnote 3 above. Excludes preferred OP Units and AIMCO preferred stock.
(5)   Includes 114,681 shares held by entities in which Mr. Considine holds sole voting and investment power, 74,743 shares held by Mr. Considine’s spouse, Elizabeth Considine, for which Mr. Considine disclaims beneficial ownership, 98,955 shares held by a non-profit foundation in which Mr. Considine has shared voting and investment power, for which Mr. Considine disclaims beneficial ownership, and 80,000 shares held by Titaho Limited Partnership RLLLP (“Titaho”), a Registered Limited Liability Limited Partnership in which Mr. Considine’s brother is the trustee for the sole general partner. Mr. Considine disclaims any current beneficial ownership interest in Titaho, and 1,222,978 shares held by Titahotwo, RLLP (“Titahotwo”), a Registered Limited Liability Partnership in which Mr. Considine serves as General Partner and owns 1%. Also includes 1,564,000 shares subject to options held by Titaho that are exercisable within 60 days for which Mr. Considine disclaims beneficial ownership.
(6)   Includes 816,661 common OP Units and 1,589,372 Class I HPUs which represent 9.8% of common OP Units outstanding and 66.8% of Class I HPUs outstanding, respectively. The 816,661 common OP Units include 192,374 common OP Units held by entities in which Mr. Considine has sole voting and investment power, 2,300 common OP Units held by Titahotwo, and 157,698 common OP Units held by Mr. Considine’s spouse, Elizabeth Considine, for which Mr. Considine disclaims beneficial ownership. All Class I HPUs are held by Titahotwo.
(7)   Includes 490,600 shares subject to options that are exercisable within 60 days.
(8)   Includes 30,500 common OP Units and 317,875 Class I HPUs which represent 0.4% of common OP

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    Units outstanding and 13.4% of Class I HPUs outstanding respectively. The Class I HPUs include 158,938 units held by two trusts established by Mr. Kompaniez for his children for which he serves as trustee and disclaims beneficial ownership.
(9)   Includes 63,000 shares subject to options that are exercisable within 60 days.
(10)   Class I HPUs, which represent 2% of all Class I HPUs outstanding.
(11)   Includes 165,000 shares subject to options that are exercisable within 60 days. Does not include 3,300 shares of Class K Convertible Cumulative Preferred Stock which represent less than 1% of the class outstanding.
(12)   Represents Class I HPUs, which constitute less than 1% of the class outstanding.
(13)   The officer also beneficially owns: 2,000 shares of Class C Cumulative Preferred Stock; 3,800 shares of Class D Cumulative Preferred Stock; and 2,000 shares of Class G Cumulative Preferred Stock each of which represents less than 1% of the class outstanding.
(14)   Represents Class I HPUs, which constitute less than 1% of the class outstanding.
(15)   Includes 10,500 shares subject to options that are exercisable within 60 days.
(16)   Includes 6,000 shares subject to options that are exercisable within 60 days.
(17)   Includes 26 common OP Units and 34,365 Class I HPUs, each of which represent less than 1% of the class outstanding.
(18)   Includes 6,000 shares subject to options that are exercisable within 60 days and 4,900 shares held by The Rhodes Foundation for which Mr. Rhodes disclaims beneficial ownership. The director also
    beneficially owns: 11,000 shares of Class C Cumulative Preferred Stock, and 3,100 shares of Class D Cumulative Preferred Stock, each of which represents less than 1% of the class outstanding.
(19)   Represents Class I HPUs, which constitute less than 1% of the class outstanding.
(20)   Includes 2,591,417 shares subject to options that are exercisable within 60 days. Does not include: 13,000 shares of Class C Cumulative Preferred Stock; 13,150 shares of Class D Cumulative Preferred Stock; 2,000 shares of Class G Cumulative Preferred Stock or 3,300 shares of Class K Convertible Cumulative Preferred Stock, owned by directors and officers, each of which represent less than 1% of all shares of the class outstanding.
(21)   Includes 943,801 common OP Units and 2,220,299 Class I HPUs, which represent 11.3% of common OP Units outstanding and 93.3% of Class I HPUs outstanding, respectively.
(22)   FMR Corp. has shared voting power as to 4,124,475 shares.
(23)   Includes: 1,085,480 shares of Class A Common Stock; 419,471 shares of Class B Cumulative
    Convertible Preferred Stock which are convertible into 1,377,572 shares of Class A Common Stock; 1,904,762 shares of Class O Cumulative Convertible Preferred Stock which are convertible into 1,904,762 shares of Class A Common Stock; and 1,234,200 shares of Class K Convertible Cumulative Preferred Stock which are convertible into 734,596 shares of Class A Common Stock.
(24)   Includes: 5,000,000 shares of Class L Convertible Cumulative Preferred Stock which are convertible into 2,689,500 shares of Class A Common Stock; and 4,000,000 shares of Class N Convertible Cumulative Preferred Stock which are convertible into 1,904,800 shares of Class A Common Stock. General Electric Capital Services, Inc. has shared voting and dispositive power as to 9,000,000 of such shares.
(25)   Cohen & Steers Capital Management, Inc. has shared voting power as to 615,100 of such shares.
(26)   LaSalle Investment Management (Securities) L.P. has shared voting power as to 3,351,664 of such shares and shared dispositive power as to 3,474,767 of such shares.

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ITEM 13. Certain Relationships and Related Transactions

      From time to time, the Company has entered into various transactions with certain of its executive officers and directors. The Company attempts to price such transactions based on fair market value, and believes that the transactions are on terms that are as favorable to the Company as could be achieved with unrelated third parties.

      High Performance Units. Effective January 1, 1998, the AIMCO Operating Partnership sold to a limited liability company then owned by fourteen members of AIMCO’s senior management (70% by a Considine family partnership, 14% owned by Mr. Kompaniez and 16% owned by twelve members of AIMCO’s senior management) and then directors J. Landis Martin, Thomas Rhodes and John Smith, the Class I High Performance Partnership Units. The sale of Class I HPUs was ratified by AIMCO stockholders at AIMCO’s 1998 Annual Stockholders Meeting.

      Based upon the AIMCO’s actual 1998-2000 performance versus the Morgan Stanley Dean Witter REIT Index, and a 30% minimum return the High Performance Units were valued at $115 million as of January 1, 2001 and thereafter entitled the holders thereof to receive distributions equal to those paid on approximately 2.4 million OP Units.

      Transactions with Management Companies. From time to time the Company has formed corporations (the “Management Companies”) in which the AIMCO Operating Partnership holds non-voting preferred stock and 100% of the voting stock is owned by certain of the Company’s executive officers of the General Partner and AIMCO (or entities controlled by them), including Messrs. Considine and Kompaniez. The Management Companies were formed to engage in businesses generally not permitted under the REIT provisions of the Internal Revenue Code. Although transactions between the Company and the Management Companies are not at arm’s length, the Company believes that such transactions are at fair market value.

      After January 1, 2000, Messrs. Considine and Kompaniez, collectively, owned 1% of the outstanding stock (100% of the voting stock) of the following Management Companies: AIMCO/NHP Holdings, Inc. (“ANHI”), NHP Management Company (“NHPMC”), AIMCO/NHP Properties, Inc. (“ANPI”) and NHP A&R Services, Inc. (“NHPAR”). All of Mr. Considine’s ownership interests in these Management Companies are held through Tebet, L.L.C., a Colorado limited liability company of which he is the managing member (“Tebet”) and Considine Investment Company (“CIC”) which is wholly owned by Mr. Considine.

      Effective January 1, 2000, the AIMCO Operating Partnership offset debt owed to NHPMC and ANHI, against amounts receivables from NHPMC and ANHI in the aggregate amounts of $255,510 and $619,336, respectively. In addition, the AIMCO Operating Partnership repaid all of its debt owed to NHPAR and ANPI in the amounts of $1,894,326 and $538,621, respectively.

      Effective January 1, 2000, the AIMCO Operating Partnership also contributed its 99% preferred stock holding in each of ANPI and NHPAR to NHPMC, and Messrs.  Considine and Kompaniez contributed their collective 1% common stock holding in each of ANPI and NHPAR to NHPMC. As a result, NHPMC became the sole stockholder of both ANPI and NHPAR.

      Effective January 1, 2000, after NHPMC became the sole stockholder of ANPI, NHPMC paid the AIMCO Operating Partnership a dividend of all of the stock of TAHF Funding Corp., a wholly owned subsidiary of ANPI, and all the stock of NHP-HDV Eleven, Inc., NHP-HDV Eighteen, Inc., and NHP-HDV Nineteen, Inc., three general partners of general partners of property owning partnerships.

      For the year ended December 31, 2000, Tebet and CIC, and Mr. Kompaniez have received dividends of approximately $23,800 and $6,000, respectively, on their shares of common stock of the Management Companies, and the Company has received dividends of $2,947,300 on its shares of preferred stock of the Management Companies.

      As of January 1, 2001, Tebet and Mr. Kompaniez each transferred to the AIMCO Operating Partnership the remainder of their common stock holdings in ANHI; and CIC and Mr. Kompaniez each transferred to the AIMCO Operating Partnership the remainder of their common stock holdings in NHPMC. As a result, the AIMCO Operating Partnership increased its ownership interest in each of ANHI and NHPMC from 99% to 100%, and Tebet, CIC and Mr. Kompaniez eliminated their ownership interests in each of ANHI and NHPMC. The purchase price paid by the AIMCO Operating Partnership for the interests in these companies acquired from Tebet and CIC was $1,303,800 and for the interests in NHPMC acquired from Mr. Kompaniez was $325,950. These purchase prices were determined by AIMCO's independent directors, based on valuation done by an independent appraiser. In consideration for the transfers, the AIMCO Operating Partnership assumed $98,305 of promissory notes that Tebet and CIC had issued to purchase their interests in NHPMC, and $24,575 of promissory notes that Mr. Kompaniez had issued to purchase his interests in NHPMC. In considerations for the transfers, the AIMCO Operating Partnerships also issued to Tebet and CIC 24,140 OP Units, and to Mr. Kompaniez 6,035 OP Units.

      Stock Purchase Loans. From time to time, the Company makes loans to its executive officers to finance their purchase of shares of Class A Common Stock from the Company. During 2000, the Company sold 12,000 shares and 13,148 shares, respectively, of Class A Common Stock to Messrs. Alcock and Monson for a purchase price of $462,000 and $506,198, respectively. In each case, the purchase price was equal to the closing price of the Class A Common Stock on the New York Stock Exchange on the date of sale. In payment for such shares, Messrs. Alcock, and Monson executed notes payable to the Company bearing interest at 7.25% per annum, payable quarterly, and due in 2010. The following table sets forth certain information with respect to these loans to executive officers.

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Highest Amount Amount Repaid
Owed During Since Inception
Name Interest Rate 2000 (thru 1/31/01) 1/31/01 Balance





Terry Considine 7.25 % $ 16,215,777 $ 20,039,112 $ 15,797,879
Peter K. Kompaniez 7.25 % 3,761,392 4,055,059 1,944,941
Steven D. Ira 7.25 % 2,886,620 3,093,710 None
Harry G. Alcock 7.25 % 883,034 257,602 777,609
Joel F. Bonder 7.00 % 1,329,731 38,184 1,321,832
Joseph DeTuno 7.00 % 469,863 35,268 460,725
Patrick J. Foye 6.25 % 2,859,682 386,323 2,613,701
Paul J. McAuliffe 7.00 % 2,163,917 363,475 2,036,531
Ron D. Monson 7.00 % 776,783 111,737 694,461
Lance Graber 6.25 % 1,925,000 None 1,925,000



$ 33,271,799 $ 28,380,470 $ 27,572,679



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PART IV

ITEM 14. Exhibits, Financial Statement Schedule and Reports on Form 8-K

      (a) (1) The financial statements listed in the Index to Financial Statements on Page F-1 of this report are filed as part of this report and incorporated herein by reference.

      (a) (2) The financial statement schedule listed in the Index to Financial Statements on Page F-1 of this report is filed as part of this report and incorporated herein by reference.

      (a) (3) The Exhibit Index is included on page 36 of this report and incorporated herein by reference.

      (b) Reports on Form 8-K for the quarter ended December 31, 2000:

      Current Report on Form 8-K, dated September 20, 2000 (and Amendment No. 1 thereto, filed on December 4, 2000), relating to the acquisition of all of the stock and other interests held by officers and directors in the entities that control properties owned by affiliates of Oxford Realty Financial Group, Inc., and the acquisition of the entity which owns the managing general partner of Oxford Tax Exempt Fund II Limited Partnership, including Combined Financial Statements of Oxford Holding Corporation and Subsidiaries, Oxford Realty Financial Group, Inc. and Subsidiaries, ZIMCO Entities and Oxford Equities Corporation III for the year ended December 31, 1999 and the eight months ended August 31, 2000 and 1999 (unaudited), together with the Independent Auditors’ Report; Combined Financial Statements of ORFG Operations, L.L.C. and Subsidiary for the year ended December 31, 1999 and the eight months ended August 31, 2000 and 1999 (unaudited), together with the Independent Auditors’ Report; Combined Financial Statements of OXPARC L.L.C.s for the year ended December 31, 1999 and the eight months ended August 31, 2000 and 1999 (unaudited), together with the Independent Auditors’ Report; Combined Financial Statements of Oxford Realty Financial Group Properties for the year ended December 31, 1999 and the eight months ended August 31, 2000 and 1999 (unaudited), together with the Independent Auditors’ Report; Financial Statements of Oxford Tax Exempt Fund II Limited Partnership for the year ended December 31, 1999, together with the Independent Auditors’ Report; Financial Statements of Oxford Tax Exempt Fund II Limited Partnership for the nine months ended September 30, 2000 (unaudited); and certain pro forma financial information.

INDEX TO EXHIBITS

         
Exhibit
Number Description


2.1 Second Amended and Restated Agreement and Plan of Merger, dated as of January 22, 1999, by and between Apartment Investment and Management Company and Insignia Properties Trust (Exhibit 2.2 to the Current Report on Form 8-K of Insignia Properties Trust, dated February 11, 1999,is incorporated herein by this reference)
2.2 Amended and Restated Agreement and Plan of Merger, dated as of May 26, 1998 by and among Apartment Investment Management Company, AIMCO Properties, L.P., Insignia Financial Group, Inc., and Insignia/ESG Holdings, Inc. (Appendix I to the Prospectus included in AIMCO’s Registration Statement on Form S-4 filed August 5, 1998, is incorporated herein by this reference)
2.3 Acquisition Agreement, dated as of June 28, 2000, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., NHP Management Company and AIMCO/NHP Properties, Inc., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit 2.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2000, is incorporated herein by this reference)
2.4 Agreement and Plan of Merger, dated as of November 29, 2000, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., AIMCO Properties, L.P., AIMCO/OTEF, LLC and Oxford Tax Exempt Fund II Limited Partnership (Annex A to AIMCO’s Registration Statement on Form S-4 filed on December 1, 2000, is incorporated herein by this reference)
3.1 Charter
3.2 Bylaws ( Exhibit 3.2 to AIMCO’s Annual Report on Form 10-K for the fiscal year 1999, is incorporated herein by this reference)

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4.1 Amended and Restated Declaration of Trust of IFT Financing I (formerly Insignia Financing I), dated as of November 1, 1996, among Insignia Financial Group, Inc as Sponsor, First Union National Bank of South Carolina as Property Trustee, First Union Bank of Delaware, as Delaware Trustee and Andrew I. Farkas, John K. Lines and Ronald Uretta as Regular Trustees (Exhibit 4.2 to Form S-3 of Insignia Financial Group, Inc. dated December 10, 1996, is incorporated herein by this reference)
4.2 Indenture for the 6.5% Convertible Subordinated Debentures, dated as of November 1, 1996, between Insignia Financial Group, Inc., as Issuer and First Union National Bank of South Carolina, as Trustee (Exhibit 4.3 to Form S-3 of Insignia Financial Group, Inc., dated December 10, 1996, is incorporated herein by this reference)
4.3 First Supplemental Indenture, dated as of October 1,1998, by and among Apartment Investment and Management Company, Insignia Financial Group, Inc, and First Union National Bank (formerly First Union National Bank of South Carolina, as Trustee) (Exhibit 4.3 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)
10.1 Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of July 29, 1994 as amended and restated as of October 1, 1998 (Exhibit 10.8 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, is incorporated herein by this reference)
10.2 First Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 6, 1998 (Exhibit 10.9 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, is incorporated herein by this reference)
10.3 Second Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 30, 1998 (Exhibit 10.1 to Amendment No. 1 to AIMCO’s Current Report on Form 8-K/A, filed February 11, 1999, No. 1 to AIMCO’s Current Report on Form 8-K/A, filed is incorporated herein by this reference)
10.4 Third Amendment to Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of February 18, 1999 (Exhibit 10.12 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)
10.5 Fourth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 25, 1999 (Exhibit 10.2 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1999, is incorporated herein by this reference)
10.6 Fifth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 26, 1999 (Exhibit 10.3 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1999, is incorporated herein by this reference)
10.7 Sixth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 26, 1999 (Exhibit 10.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1999, is incorporated herein by this reference)
10.8 Seventh Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 27, 1999 (Exhibit 10.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1999, is incorporated herein by this reference)
10.9 Eighth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 14, 1999 (Exhibit 10.9 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)
10.10 Ninth Amendment to the Third Amended and Restated Agreement of Limited Partnership

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of AIMCO Properties, L.P., dated as of December 21, 1999 (Exhibit 10.10 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)
10.11 Tenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 21, 1999 (Exhibit 10.11 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)
10.12 Eleventh Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of January 13, 2000 (Exhibit 10.12 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)
10.13 Twelfth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of April 19, 2000 (Exhibit 10.2 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2000 is incorporated herein by this reference)
10.14 Thirteenth Amendment to the Third and Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of August 7, 2000 (Exhibit 10.1 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended June 30, 2000, is incorporated herein by this reference)
10.15 Fourteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 12, 2000 (Exhibit 10.1 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000, is incorporated herein by this reference)
10.16 Fifteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 15, 2000 (Exhibit 10.2 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000, is incorporated herein by this reference)
10.17 Sixteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 15, 2000 (Exhibit 10.3 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000 is incorporated herein by this reference)
10.18 Seventeenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 10, 2000 (Exhibit 10-4 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000 is incorporated herein by this reference)
10.19 Eighteenth Amendment to the Third and Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 16, 2000
10.20 Nineteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of February 28, 2001
10.21 Twentieth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 19, 2001
10.22 Shareholders Agreement, dated October 1, 1998, by and among Apartment Investment and Management Company, Andrew L. Farkas, James A. Aston and Frank M. Garrison (Exhibit 10.4 to AIMCO’s Statement of Beneficial Ownership on Schedule 13D with respect to Insignia Properties Trust filed on October 15, 1998, is incorporated herein by this reference)
10.23 Amended and Restated Indemnification Agreement, dated as of May 26, 1998, by and between Apartment Investment and Management Company and Insignia/ESG Holdings, Inc. (Appendix II to the Prospectus included in AIMCO’s Registration Statement on Form S-4, filed August 5, 1998, is incorporated herein by this reference)
10.24 ILPI and BAC Agreement, dated as of September 20, 2000 by and among Apartment Investment and Management Company, AIMCO Properties, L.P. and AIMCO/ NHP Properties, Inc ., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit (B) of the Statement of Beneficial Ownership on Schedule 13D of Oxford Tax Exempt Fund II Limited Partnership with respect to AIMCO dated September 20, 2000, is incorporated herein by this reference)

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10.25 Option Sale Agreement , dated as of September 20, 2000 by and among Apartment Investment and Management Company, AIMCO Properties, L.P., NHP Management Company and AIMCO/NHP Properties, Inc., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit ( C ) of the Statement of Beneficial Ownership on Schedule 13D of Oxford Tax Exempt Fund II Limited Partnership with respect to AIMCO dated September 20,2000 is incorporated herein by this reference)
10.26 Employment Contract, executed on July 29, 1994, by and between AIMCO Properties, L.P., and Peter Kompaniez (Exhibit 10.44A to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by this reference)*
10.27 Employment Contract executed on July 29, 1994 by and between AIMCO Properties, L.P. and Terry Considine (Exhibit 10.44C to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by this reference)*
10.28 Employment Contract executed on July 29, 1994 by and between AIMCO Properties, L.P. and Steven D. Ira (Exhibit 10.44D to AIMCO’s Annual Report on Form 10-K for year ended December 31, 1994, is incorporated herein by this reference)*
10.29 Apartment Investment and Management Company 1998 Incentive Compensation Plan (Annex B to AIMCO’s Proxy Statement for Annual Meeting of Stockholders to be held on May 8, 1998, is incorporated herein by this reference)*
10.30 Apartment Investment and Management Company 1997 Stock Award and Incentive Plan (October 1999) (Exhibit 10.26 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by this reference)*
10.31 Form of Restricted Stock Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.11 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1997, is incorporated herein by this reference)*
10.32 Form of Incentive Stock Option Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.42to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)*
10.33 Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan, adopted August 29, 1996 (Exhibit 10.8 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1996, is incorporated herein by this reference)*
10.34 Amended and Restated Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan (Annex B to AIMCO’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 24, 1997, is incorporated herein by this reference)*
10.35 The 1994 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P., and Subsidiaries (Exhibit 10.40 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*
10.36 Amendment to the 1994 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P. and Subsidiaries (Exhibit 10.41 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*
10.37 The 1996 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P., and Subsidiaries, as amended March 20, 1997 (Exhibit 10.42 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*
10.38 Insignia 1992 Stock Incentive Plan, as amended through March 28, 1994 and November 13, 1995 (Exhibit 10.1 to Insignia Financial Group, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*

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10.39 NHP Incorporated 1990 Stock Option Plan (Exhibit 10.9 to NHP Incorporated Annual Report on Form 10-K for the year ended December 31, 1995, is incorporated herein by this reference)*
10.40 NHP Incorporated 1995 Incentive Stock Option Plan (Exhibit 10.10 to NHP Incorporated Annual Report on Form 10-K for the year ended December 31, 1995, is incorporated herein by this reference)*
10.41 Summary of Agreement for Sale of Stock to Executive Officers (Exhibit 10.104 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1996, is incorporated herein by this reference)*
21.1 List of Subsidiaries
23.1 Consent of Ernst & Young LLP
99.1 Agreement re: disclosure of long-term debt instruments


(1)   Schedule and supplemental materials to the exhibits have been omitted but will be provided to the Securities and Exchange Commission upon request.
*   Management contract

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SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 30th day of April, 2001.

 
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
 
/s/ THOMAS C. NOVOSEL

Thomas C. Novosel
Senior Vice President
and Chief Accounting Officer
 

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APARTMENT INVESTMENT AND MANAGEMENT COMPANY

INDEX TO FINANCIAL STATEMENTS

           
Page

Financial Statements:
Report of Independent Auditors F-2
Consolidated Balance Sheets as of December 31, 2000 and 1999 F-3
Consolidated Statements of Income for the Years Ended December 31, 2000, 1999 and 1998 F-4
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2000, 1999 and 1998 F-5
Consolidated Statements of Cash Flows for the Years Ended December 31, 2000, 1999 and 1998 F-6
Notes to Consolidated Financial Statements F-8
Financial Statement Schedule:
Schedule III — Real Estate and Accumulated Depreciation F-36
All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto

F-1


Table of Contents

REPORT OF INDEPENDENT AUDITORS

 

 

Stockholders and Board of Directors
Apartment Investment and Management Company

We have audited the accompanying consolidated balance sheets of Apartment Investment and Management Company as of December 31, 2000 and 1999, and the related consolidated statements of income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2000. Our audits also included the financial statement schedule listed in the Index at Item 14(a)(2). These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Apartment Investment and Management Company at December 31, 2000 and 1999, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects the information set forth therein.

 
/s/ ERNST & YOUNG LLP

Denver, Colorado
January 24, 2001,
      except for Note 24, as to which the date is March 29, 2001

F-2


Table of Contents

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED BALANCE SHEETS
As of December 31, 2000 and 1999
(In Thousands, Except Per Share Data)

ASSETS

                       
2000 1999


Real estate, net of accumulated depreciation of $913,263 and $416,497 $ 6,099,189 $ 4,096,200
Investments in unconsolidated real estate partnerships 676,188 891,449
Investments in unconsolidated subsidiaries 107,781 44,921
Notes receivable from and advances to unconsolidated real estate partnerships 140,860 159,935
Notes receivable from and advances to unconsolidated subsidiaries, net 190,453 88,754
Cash and cash equivalents 157,115 101,604
Restricted cash 126,914 84,595
Other assets 201,374 217,493


Total assets $ 7,699,874 $ 5,684,951


LIABILITIES AND STOCKHOLDERS’ EQUITY
Secured notes payable $ 3,258,342 $ 1,954,259
Secured tax-exempt bond financing 773,033 420,830
Secured short-term financing 328,740 209,200


Total indebtedness 4,360,115 2,584,289
Accounts payable, accrued and other liabilities 300,142 271,627
Resident security deposits and deferred rental income 33,943 22,793


Total liabilities 4,694,200 2,878,709


Mandatorily redeemable convertible preferred securities 32,330 149,500
Minority interest in other entities 139,731 168,533
Minority interest in Operating Partnership 331,956 228,813
Stockholders’ equity:
Preferred Stock, perpetual 315,770 316,250
Preferred Stock, convertible 521,947 325,000
Class A Common Stock, $.01 par value, 468,432,738 shares and 474,121,284 shares authorized, 71,337,217 and 66,802,886 shares issued and outstanding, respectively 713 668
Additional paid-in capital 2,072,208 1,885,424
Notes receivable on common stock purchases (44,302 ) (51,619 )
Distributions in excess of earnings (364,679 ) (216,327 )


Total stockholders’ equity 2,501,657 2,259,396


Total liabilities and stockholders’ equity $ 7,699,874 $ 5,684,951


See notes to consolidated financial statements.

F-3


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APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands, Except Per Share Data)

                           
2000 1999 1998



RENTAL PROPERTY OPERATIONS:
Rental and other property revenues $ 1,051,000 $ 533,917 $ 377,139
Property operating expenses (426,177 ) (213,798 ) (147,541 )
Owned property management expense (13,663 ) (1,650 ) (2,009 )
Depreciation (323,321 ) (131,753 ) (84,635 )



Income from rental property operations 287,839 186,716 142,954



SERVICE COMPANY BUSINESS:
Management fees and other income from affiliates 49,692 38,377 20,824
Management and other expenses (27,199 ) (14,897 ) (16,764 )
General and administrative expenses allocation (10,310 ) (2,136 ) (196 )
Amortization of intangibles (6,698 ) (14,297 ) (8,735 )



Income (loss) from service company business 5,485 7,047 (4,871 )



General and administrative expenses:
Before allocation (18,123 ) (15,248 ) (13,764 )
Allocation to consolidated service company business 10,310 2,136 196



General and administrative expenses, net (7,813 ) (13,112 ) (13,568 )



Interest expense (269,826 ) (140,094 ) (89,424 )
Interest income 66,241 55,320 29,368
Equity in earnings (losses) of unconsolidated real estate partnerships 7,618 (4,467 ) (4,854 )
Equity in earnings (losses) of unconsolidated subsidiaries (2,290 ) (5,013 ) 5,845
Minority interest in other entities (3,872 ) (900 ) (468 )



Income from operations 83,382 85,497 64,982
Gain (loss) on disposition of properties 26,335 (1,785 ) 4,674



Income before minority interest in Operating Partnership 109,717 83,712 69,656
Minority interest in Operating Partnership, common (3,519 ) (5,458 ) (5,182 )
Minority interest in Operating Partnership, preferred (7,020 ) (727 )



Net income 99,178 77,527 64,474
Net income attributable to preferred stockholders 63,183 53,453 26,533



Net income attributable to common stockholders $ 35,995 $ 24,074 $ 37,941



Basic earnings per common share $ 0.53 $ 0.39 $ 0.84



Diluted earnings per common share $ 0.52 $ 0.38 $ 0.80



Weighted average common shares outstanding 67,572 62,242 45,187



Weighted average common shares and common share equivalents outstanding 69,063 63,446 47,624



Dividends paid per common share $ 2.80 $ 2.50 $ 2.25



See notes to consolidated financial statements.

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APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands)

                                                           
Class A Class B
Preferred Stock Common Stock Common Stock



Additional
Shares Shares Shares Paid-in
Issued Amount Issued Amount Issued Amount Capital







BALANCE DECEMBER 31, 1997 3,150 $ 135,000 40,439 $ 403 162 $ 2 $ 977,601
Net proceeds from issuances of Preferred Stock 11,250 356,250 (15,353 )
Repurchase of Class A Common Stock (303 ) (3 ) (11,064 )
Conversion of Class B Common Stock to Class A Common Stock 162 2 (162 ) (2 )
Conversion of Operating Partnership units to Class A Common Stock 275 3 5,792
Purchase of stock by officers and awards of restricted stock 640 7 23,619
Repayment of notes receivable from officers
Stock options and warrants exercised 658 7 11,008
Class A Common Stock issued as consideration for Ambassador Common Stock 6,580 66 251,209
Class E Preferred Stock issued as consideration for Insignia Common Stock 8,424 301,218
Issuance of warrants to purchase Class A Common Stock 4,150
Net income
Dividends paid — Class A Common Stock
Dividends paid — Preferred Stock
Unrealized gain (loss) on investments







BALANCE DECEMBER 31, 1998 22,824 792,468 48,451 485 1,246,962
Net proceeds from issuances of Preferred Stock 10,000 250,000 (16,899 )
Repurchase of Class A Common Stock (205 ) (2 ) (8,036 )
Conversion of Operating Partnership units to Class A Common Stock 964 10 13,756
Conversion of Preferred Stock to
Class A Common Stock (9,424 ) (401,218 ) 10,924 109 401,109
Purchase of stock by officers and awards of restricted stock 240 2 8,824
Repayment of notes receivable from officers
Stock options and warrants exercised 129 1 3,201
Class A Common Stock issued as consideration for Insignia Property Trust Merger 4,044 40 158,753
Class A Common Stock issued as consideration for First Union acquisition 530 5 21,135
Class A Common Stock Offering 1,383 14 54,598
Warrants exercised 343 4 2,021
Net income
Dividends paid — Class A Common Stock
Dividends paid — Preferred Stock







BALANCE DECEMBER 31, 1999 23,400 641,250 66,803 668 1,885,424
Net proceeds from issuances of Preferred Stock 7,105 230,000 (3,106 )
Repurchase of Class A Common Stock (69 ) (1 ) (2,579 )
Conversion of Operating Partnership units to Class A Common Stock (480 ) 258 2 10,103
Conversion of Class B Preferred Stock to Class A Common Stock (331 ) (33,053 ) 1,085 11 33,042
Conversion of mandatorily redeemable convertible preferred securities to Class A Common Stock 2,363 24 117,146
Repayment of notes receivable from officers
Purchase of stock by officers and awards of restricted stock 300 3 11,984
Stock options and warrants exercised 597 6 20,194
Net income
Dividends paid — Class A Common Stock
Dividends paid — Preferred Stock







BALANCE DECEMBER 31, 2000 30,174 $ 837,717 71,337 $ 713 $ $ 2,072,208








[Additional columns below]

[Continued from above table, first column(s) repeated]

                                   
Notes Unrealized
Receivable Distributions Gain
from in Excess (Loss) On
Officers of Earnings Investments Total




BALANCE DECEMBER 31, 1997 $ (35,095 ) $ (30,928 ) $ (1,683 ) $ 1,045,300
Net proceeds from issuances of Preferred Stock 340,897
Repurchase of Class A Common Stock (11,067 )
Conversion of Class B Common Stock to Class A Common Stock
Conversion of Operating Partnership units to Class A Common Stock 5,795
Purchase of stock by officers and awards of restricted stock (23,471 ) 155
Repayment of notes receivable from officers 8,908 8,908
stock options and warrants exercised 11,015
Class A Common Stock issued as consideration for Ambassador Common Stock 251,275
Class E Preferred Stock issued as consideration for Insignia Common Stock 301,218
Issuance of warrants to purchase Class A
Common Stock 4,150
Net income 64,474 64,474
Dividends paid — Class A Common Stock (100,045 ) (100,045 )
Dividends paid — Preferred Stock (21,194 ) (21,194 )
Unrealized gain (loss) on investments 1,683 1,683




BALANCE DECEMBER 31, 1998 (49,658 ) (87,693 ) 1,902,564
Net proceeds from issuances of Preferred Stock 233,101
Repurchase of Class A Common Stock (8,038 )
Conversion of Operating Partnership units to Class A Common Stock 13,766
Conversion of Preferred Stock to Class A
Common Stock
Purchase of stock by officers and awards of restricted stock (8,202 ) 624
Repayment of notes receivable from officers 6,241 6,241
Stock options and warrants exercised 3,202
Class A Common Stock issued as consideration for Insignia Property Trust Merger 158,793
Class A Common Stock issued as consideration for First Union acquisition 21,140
Class A Common Stock Offering 54,612
Warrants exercised 2,025
Net income 77,527 77,527
Dividends paid — Class A Common Stock (154,654 ) (154,654 )
Dividends paid — Preferred Stock (51,507 ) (51,507 )




BALANCE DECEMBER 31, 1999 (51,619 ) (216,327 ) $ 2,259,396
Net proceeds from issuances of Preferred Stock 226,894
Repurchase of Class A Common Stock (2,580 )
Conversion of Operating Partnership units to Class A Common Stock 9,625
Conversion of Class B Preferred Stock to Class A Common Stock
Conversion of mandatorily redeemable convertible preferred securities to Class A Common Stock 117,170
Repayment of notes receivable from officers 15,050 15,050
Purchase of stock by officers and awards of restricted stock (7,733 ) 4,254
Stock options and warrants exercised 20,200
Net income 99,178 99,178
Dividends paid — Class A Common Stock (188,600 ) (188,600 )
Dividends paid — Preferred Stock (58,930 ) (58,930 )




BALANCE DECEMBER 31, 2000 $ (44,302 ) $ (364,679 ) $ $ 2,501,657





See notes to consolidated financial statements.

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APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands)

                               
          2000   1999   1998
         
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income   $ 99,178     $ 77,527     $ 64,474  
   
     
     
 
  Adjustments to reconcile net income to net cash provided by operating activities:
    Depreciation and amortization     330,019       151,166       101,610  
    Loss (gain) on disposition of properties   (26,335 )     1,785     (4,674 )
    Minority interest in Operating Partnership     10,539       6,185       5,182  
    Minority interests in other entities     3,872       900       468  
    Equity in (earnings) losses of unconsolidated real estate partnerships   (7,618 )     4,467       4,854  
    Equity in (earnings) losses of unconsolidated subsidiaries     2,290       5,013     (5,845 )
    Changes in operating assets and operating liabilities   (11,581 )     6,214     (17,655 )
   
     
     
 
      Total adjustments     301,186       175,730       83,940  
   
     
     
 
      Net cash provided by operating activities     400,364       253,257       148,414  
   
     
     
 
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of and additions to real estate   (334,264 )   (217,380 )   (235,131 )
  Proceeds from sales of property     159,340       49,023       36,468  
  Purchase of notes receivable, general and limited partnership interests and other assets   (453,263 )   (233,640 )   (56,760 )
  Purchase of/additions to notes receivable   (81,657 )   (103,943 )   (81,587 )
  Proceeds from sale of notes receivable           17,788        
  Proceeds from repayment of notes receivable     64,559       61,407       29,290  
  Cash from newly consolidated properties     54,875       68,127        
  Cash received in connection with acquisitions                 60,777  
  Cash paid for merger / acquisition related costs   (31,889 )   (19,347 )   (78,568 )
  Distributions received from investments in unconsolidated real estate partnerships     75,318       87,284       15,673  
  Distributions received from (contributions to) unconsolidated subsidiaries           9,575     (13,032 )
  Purchase of investments held for sale               (4,935 )
  Redemption of OP Units               (516 )
   
     
     
 
      Net cash used in investing activities   (546,981 )   (281,106 )   (328,321 )
   
     
     
 
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from secured notes payable borrowings     502,085       297,536       102,115  
  Principal repayments on secured notes payable   (265,269 )   (53,572 )   (93,469 )
  Proceeds from secured tax-exempt bond financing           20,731       210,720  
  Principal repayments on secured tax-exempt bond financing   (26,677 )   (41,894 )   (224,395 )
  Net borrowings (pay downs) on the secured short-term financing     119,540     (155,622 )   (23,455 )
  Payment of loan costs   (21,920 )   (16,070 )   (7,407 )
  Proceeds from issuance of common and preferred stock, exercise of options/warrants     251,348       293,225       386,770  
  Principal repayments received on notes due from officers on Class A Common Stock purchases     15,050       6,241       8,951  
  Repurchase of Class A Common Stock   (2,580 )   (8,038 )   (11,066 )
  Payment of common stock dividends   (188,600 )   (154,654 )   (100,045 )
  Payment of distributions to minority interest   (121,919 )   (32,898 )   (15,531 )
  Payment of preferred stock dividends   (58,930 )   (51,507 )   (21,194 )
  Payment of special dividend on Class E Preferred Stock       (45,330 )    
  Proceeds from issuance of High Performance Units                 2,130  
   
     
     
 
      Net cash provided by financing activities     202,128       58,148       214,124  
   
     
     
 
NET INCREASE IN CASH AND CASH EQUIVALENTS     55,511       30,299       34,217  
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR     101,604       71,305       37,088  
   
     
     
 
CASH AND CASH EQUIVALENTS AT END OF YEAR   $ 157,115     $ 101,604     $ 71,305  
   
     
     
 

See notes to consolidated financial statements.

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APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands)

                             
2000 1999 1998



SUPPLEMENTAL CASH INFORMATION:
Interest paid $ 254,802 $ 140,410 $ 91,795
Non Cash Transactions Associated with the Acquisition of Properties:
Secured debt assumed in connection with purchase of real estate 60,605 110,101 115,151
Real estate, assets acquired 93,975 230,194 43,756
Assumption of operating liabilities 148 15,233 857
Accrual of contingent consideration (4,500 ) 4,500
OP Units issued 33,222 83,810
Class A Common Stock issued 21,140
Non Cash Transactions Associated with Acquisition of Limited Partnership
Interests and Interests in the Unconsolidated Subsidiaries:
Issuance of OP Units for interests in unconsolidated real estate partnerships 29,885 15,085 4,045
Issuance of OP Units and assumption of liabilities for interests in unconsolidated subsidiaries 4,762
Non Cash Transactions Associated with Mergers:
Real estate 324,602 6,012 773,189
Investments in and notes receivable from unconsolidated real estate partnerships 121,671 97,708 801,467
Investments in and notes receivable from unconsolidated subsidiaries 157,785 (13,137 ) 68,168
Restricted cash 7,212 38,210
Other assets 6,163 110,969
Secured debt 248,524 764,543
Unsecured debt 2,513
Accounts payable, accrued and other liabilities 74,310 30,183 181,158
Mandatorily redeemable convertible preferred securities of a subsidiary trust 149,500
Minority interest in other entities 23,816 (98,353 ) 117,922
OP Units issued 62,177
Class A Common Stock issued 158,753 552,492
Non Cash Transactions Associated with Consolidation of Assets:
Real estate 1,754,492 1,016,343 22,089
Investments in and notes receivable from unconsolidated real estate partnerships (685,173 ) (380,359 ) (16,683 )
Investments in and notes receivable from unconsolidated subsidiaries (3,271 )
Restricted cash 46,284 43,605
Other assets 55,128
Secured debt 1,133,197 561,129 4,679
Accounts payable, accrued and other liabilities 63,011 44,361 727
Minority interest in other entities 1,573 77,774
Non Cash Transfer of Assets to an Unconsolidated Subsidiary:
Real estate (9,429 ) (32,091 )
Notes receivable 6,245
Secured debt (25,620 )
Other:
Redemption of OP Units 8,151 13,766 5,650
Receipt of notes payable from officers 7,733 8,202 23,471
Conversion of Preferred Stock into Class A Common Stock 150,199 401,218
Tenders payable for purchase of limited partner interest 77,380

See notes to consolidated financial statements.

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APARTMENT INVESTMENT AND MANAGEMENT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2000

NOTE 1 — Organization

      Apartment Investment and Management Company, a Maryland corporation incorporated on January 10, 1994 (“AIMCO” and, together with its consolidated subsidiaries and other controlled entities, the “Company”), owns a majority of the ownership interests in AIMCO Properties, L.P., (the “AIMCO Operating Partnership”) through its wholly owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP, Inc. The Company held an approximate 91% interest in the AIMCO Operating Partnership as of December 31, 2000. AIMCO-GP, Inc. is the sole general partner of the AIMCO Operating Partnership.

      As of December 31, 2000, AIMCO:

    owned or controlled (consolidated) 153,872 units in 566 apartment properties;
 
    held an equity interest in (unconsolidated) 111,748 units in 683 apartment properties; and
 
    managed 60,669 units in 471 apartment properties for third party owners and affiliates.

      At December 31, 2000, AIMCO had 71,337,217 shares of Class A Common Stock outstanding and the AIMCO Operating Partnership had 8,341,161 Partnership Common Units (“Common OP Units”) outstanding (excluding units held by the Company), for a combined total of 79,678,378 shares of Class A Common Stock and Common OP Units outstanding.

      Interests in the AIMCO Operating Partnership held by limited partners other than AIMCO are referred to as “OP Units”. OP Units include Common OP Units, Partnership Preferred Units (“Preferred OP Units”) and High Performance Partnership Units. The AIMCO Operating Partnership’s income is allocated to holders of Common OP Units based on the weighted average number of Common OP Units outstanding during the period. The AIMCO Operating Partnership records the issuance of Common OP Units and the assets acquired in purchase transactions based on the market price of the Company’s Class A Common Stock at the date of execution of the purchase contract. The holders of the Common OP Units receive distributions, prorated from the date of issuance, in an amount equivalent to the dividends paid to holders of Class A Common Stock. After holding the Common OP Units for one year, the limited partners generally have the right to redeem their Common OP Units for cash. Notwithstanding that right, the AIMCO Operating Partnership may elect to cause AIMCO to acquire some or all of the Common OP Units tendered for redemption in exchange for shares of Class A Common Stock in lieu of cash. During 2000, 1999 and 1998, the weighted average ownership interest in the AIMCO Operating Partnership held by the Common OP Unit holders was 9%, 9% and 12%, respectively. Preferred OP Units entitle the holders thereof to a preference with respect to distributions or upon liquidation (see Note 13). See Footnote 19 for the discussion on High Performance Units.

NOTE 2 — Basis of Presentation and Summary of Significant Accounting Policies

   Principles of Consolidation

      The accompanying consolidated financial statements include the accounts of AIMCO, the AIMCO Operating Partnership, majority owned subsidiaries and controlled real estate partnerships. Interests held by limited partners in real estate partnerships controlled by the Company and interests held by the minority shareholders of Insignia Properties Trust (through February 26, 1999) are reflected as minority interest in other entities. Significant intercompany balances and transactions have been eliminated in consolidation. The assets of property owning limited partnerships and limited liability companies owned or controlled by AIMCO or the AIMCO Operating Partnership generally are not available to pay creditors of AIMCO or the AIMCO Operating Partnership.

   Real Estate and Depreciation

      Real estate is recorded at cost, less accumulated depreciation, unless considered impaired. If events or circumstances indicate that the carrying amount of a property may be impaired, the Company will make an assessment of its recoverability by estimating the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the aggregate future cash flows, the Company would recognize an impairment loss to the extent the carrying amount exceeds the fair value of the property.

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As of December 31, 2000, management believes that no impairments exist based on periodic reviews. No impairment losses were recognized for the years ended December 31, 2000, 1999 and 1998.

      Direct costs associated with the acquisition of ownership or control of properties are capitalized as a cost of the assets acquired, and are depreciated over the estimated useful lives of the related assets. Expenditures for ordinary repairs, maintenance and apartment turnover costs are expensed as incurred.

      Initial Capital Expenditures (“ICE”) are those costs considered necessary by the Company in its investment decision to correct deferred maintenance or improve a property. Capital enhancements are costs incurred that add a material new feature or increase the revenue potential of a property. ICE and capital enhancement costs are capitalized and depreciated over the estimated useful lives of the related assets.

      Expenditures in excess of $250 that maintain an existing asset which has a useful life of more than one year are capitalized as capital replacement expenditures and depreciated over the estimated useful life of the asset.

      Depreciation is calculated on the straight-line method based on a fifteen to thirty year life for buildings and improvements and five years for furniture, fixtures and equipment.

   Redevelopment

      The Company capitalizes direct and indirect costs (including interest, taxes and other costs) in connection with the redevelopment of its owned or controlled properties and land under development. Interest of $9.3 million, $6.6 million and $2.8 million was capitalized for the years ended December 31, 2000, 1999 and 1998, respectively.

   Investments in Unconsolidated Real Estate Partnerships

      The Company owns general and limited partnership interests in numerous partnerships that own multi-family apartment properties. Investments in real estate partnerships in which the Company has significant influence but does not have control are accounted for under the equity method. Under the equity method, the Company’s pro-rata share of the earnings or losses of the entity for the periods being presented is included in equity in earnings (losses) from unconsolidated partnerships (see Note 5).

   Investments in Unconsolidated Subsidiaries

      The Company has investments in numerous subsidiaries. Investments in entities in which the Company has significant influence but does not have control are accounted for under the equity method. Under the equity method, the Company’s pro-rata share of the earnings or losses of the entity for the periods being presented is included in equity in earnings (losses) from unconsolidated subsidiaries (see Note 6).

   Notes Receivable from Unconsolidated Real Estate Partnerships and Subsidiaries

      The Company has investments in numerous notes receivable, which were either extended by the Company or were made by predecessors whose positions have been acquired by the Company. Interest income is recognized on these investments based upon whether the collectibility of such amounts is both probable and estimable. Notes receivable from unconsolidated real estate partnerships and subsidiaries consist substantially of second mortgage note receivable, whose ultimate repayment is subject to a number of variables, including the performance and value of the underlying real property and the ultimate timing of repayments of receivables. The carrying amounts of notes receivable approximates their fair value in consideration of interest rates, market conditions and other qualitative factors (see Note 7).

   Cash Equivalents

      The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents.

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   Restricted Cash

      Restricted cash includes capital replacement reserves, completion repair reserves, bond sinking fund amounts and tax and insurance impound accounts held by lenders.

   Other Assets

      Fees and costs incurred in obtaining financing are capitalized and are included in other assets. Such costs are amortized over the terms of the related loan agreements and are charged to interest expense.

      Certain intangible assets are included in other assets and consist of costs associated with the purchase of property management businesses, including property management contracts, legal and other acquisition costs. These costs are amortized on a straight-line basis over terms ranging from five to twenty years.

   Revenue Recognition

      The Company’s properties have operating leases with apartment residents with terms generally of twelve months or less. Rental revenues and property management and asset management fees are recognized when earned.

   Income on Loans

      Income on loans is recorded as earned in accordance with the terms of the related loan agreements. The accrual of interest is discontinued when a loan becomes ninety days contractually delinquent or sooner when, in the opinion of the Company, impairment has occurred in the value of the collateral property securing the loan. Income on nonaccrual loans or loans that are otherwise not performing in accordance with their terms is recorded on a cash basis.

   Allowance for Loan Losses

      Loan losses on notes receivable are charged to income and an allowance account is established when the Company believes the principal balance will not be recovered. The Company assesses the collectibility of each note on a periodic basis through a review of the collateral, property operations, the property value and the borrower’s ability to repay the loan.

   Income Taxes

      AIMCO has elected to be taxed as a real estate investment trust (“REIT”), as defined under the Internal Revenue Code of 1986, as amended. In order for AIMCO to qualify as a REIT, at least 90% (95% in 2000) of AIMCO’s gross income in any year must be derived from qualifying sources. The activities of unconsolidated subsidiaries engaged in the service company business are not qualifying sources.

      As a REIT, AIMCO generally will not be subject to U.S. Federal income taxes at the corporate level on its net income that is distributed to its stockholders if it distributes at least 90% of its REIT taxable income to its stockholders. REITs are also subject to a number of other organizational and operational requirements. If AIMCO fails to qualify as a REIT in any taxable year, its taxable income will be subject to U.S. Federal income tax at regular corporate rates (including any applicable alternative minimum tax). Even if AIMCO qualifies as a REIT, it may be subject to certain state and local income taxes and to U.S. Federal income and excise taxes on its undistributed income.

      Earnings and profits, which determine the taxability of dividends to stockholders, differ from net income reported for financial reporting purposes due to differences for U.S. Federal tax purposes in the estimated useful lives and methods used to compute depreciation and the carrying value (basis) of the investments in properties, among other things.

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      The following table reconciles the Company’s net income to REIT taxable income for the year ended December 31, 2000:

         
Net income   $ 99,178  
Elimination of earnings from unconsolidated subsidiaries   (3,666 )
Depreciation and amortization expense not deductible for tax     89,885  
Gain on disposition of properties     42,645  
Interest income, not taxable   (12,987 )
Depreciation timing differences on real estate     7,007  
Dividends on officer stock, not deductible for tax     2,496  
LP deficit allocations, not deductible for tax     21,992  
Transaction and project costs, deductible for tax   (2,730 )
     
 
REIT taxable income   $ 243,820  
     
 

For income tax purposes, distributions paid to common stockholders consist of ordinary income, capital gains, return of capital or a combination thereof. For the years ended December 31, 2000, 1999 and 1998, distributions paid per share were taxable as follows:

                                                                         
    2000   1999   1998
   
 
 
    Amount   Percentage   Amount   Percentage   Amount   Percentage
   
 
 
 
 
 
Ordinary income   $ 1.84     66 %           $ 2.04     82 %           $ 0.90     40 %
Return of capital                         0.16     6 %             1.33     59 %
Capital gains     0.32     11 %             0.12     5 %                    
Unrecaptured SEC.1250 gain     0.64     23 %             0.18     7 %             0.02     1 %
     
     
             
     
             
     
 
    $ 2.80     100 %           $ 2.50     100 %           $ 2.25     100 %
     
     
             
     
             
     
 

   Earnings Per Share

      Earnings per share is calculated based on the weighted average number of shares of common stock, common stock equivalents and dilutive convertible securities outstanding during the period (see Note 17).

    Fair Value of Financial Instruments

      The estimated aggregate fair value of the Company’s cash and cash equivalents, receivables, payables and short-term secured debt as of December 31, 2000 is assumed to approximate their carrying value due to their relatively short terms. Management further believes that the fair market value of the Company’s secured tax-exempt bond debt and secured long-term debt approximate their carrying value, based on market comparisons to similar types of debt instruments having similar maturities.

   Concentration of Credit Risk

      Financial instruments that potentially could subject the Company to significant concentrations of credit risk consist principally of notes receivable from unconsolidated real estate partnerships. Concentrations of credit risk with respect to notes receivable from unconsolidated real estate partnerships are limited due to the large number of partnerships comprising the Company’s partnership base and the geographic diversity of the underlying properties.

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   Use of Estimates

      The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates.

   Reclassifications

      Certain items included in the 1999 and 1998 consolidated financial statements have been reclassified to conform with the 2000 presentation.

NOTE 3 — Real Estate

      Real estate at December 31, 2000 and 1999, is as follows (in thousands):

                 
    2000   1999
   
 
Land   $ 976,421     $ 661,502  
Buildings and improvements     6,036,031       3,851,195  
     
     
 
      7,012,452       4,512,697  
Accumulated depreciation   (913,263 )   (416,497 )
     
     
 
    $ 6,099,189     $ 4,096,200  
     
     
 

      The Company directly acquired 12 apartment communities containing 2,830 units in separate transactions during 2000 (not including those acquired in connection with the acquisition of the Oxford properties (see Note 4)). The aggregate consideration paid by the Company of $136.5 million consisted of $42.7 million in cash, $26.4 million in preferred OP Units, $6.8 million in common OP Units and the assumption of $60.6 million of secured long-term indebtedness. As part of these acquisitions, the Company has also determined to undertake $4.8 million of initial capital enhancements to these properties.

      The Company directly acquired 28 apartment communities containing 12,721 units in unrelated transactions during 1999 (not including those acquired in connection with the merger with Insignia Properties Trust (see Note 4)). The aggregate consideration paid by the Company of $495.0 million consisted of $91.5 million in cash, 2.4 million preferred OP Units, 0.9 million common OP Units and 0.5 million shares of Class A Common Stock with a total recorded value of $116.8 million, the assumption of $110.1 million of secured long-term indebtedness, the assumption of $15.2 million of other liabilities, and new financing of $161.4 million of secured long-term indebtedness. Four of these assets were then contributed to an unconsolidated subsidiary.

      In addition to the acquisitions described above, in 2000 and 1999, the Company acquired controlling interests in partnerships owning 201 properties (52,217 units) and 125 properties (34,228 units), respectively, and began consolidating these entities. Control was obtained through the purchase of limited partnership interests from unaffiliated third parties or other increases in the Company’s equity investment in the partnerships.

      During 2000, the Company sold 32 properties containing 7,660 units to unaffiliated third parties. Cash proceeds from the sales of approximately $159.3 million were used to repay a portion of the Company’s outstanding indebtedness. The Company recognized a net GAAP gain of approximately $26.3 million on the disposition of these properties, of which 35% of the gain related to one property.

      During 1999, the Company sold 8 properties containing 2,309 units to unaffiliated third parties. Cash proceeds from the sales of approximately $49.0 million were used to repay a portion of the Company’s outstanding indebtedness. The Company recognized a loss of approximately $1.8 million on disposition of these properties, of which 96% of the loss related to one property.

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NOTE 4 — Mergers

   Ambassador Merger

      On May 8, 1998, Ambassador Apartments, Inc. (“Ambassador”), was merged with and into AIMCO, with AIMCO being the surviving corporation. The merger was accounted for as a purchase and as a result, the results of operations were included in the consolidated statement of income from the date of acquisition. The purchase price of $713.6 million was comprised of $90.3 million in cash, $372.0 million of assumed debt and approximately 6.6 million shares of Class A Common Stock valued at $251.3 million. Pursuant to the Ambassador merger agreement, each outstanding share of Ambassador common stock not owned by AIMCO was converted into the right to receive 0.553 shares of Class A Common Stock. Concurrently, all outstanding options to purchase Ambassador common stock were converted into cash or options to purchase Class A Common Stock, at the same conversion ratio. Contemporaneously with the consummation of the Ambassador merger, a subsidiary of the AIMCO Operating Partnership merged with Ambassador’s operating partnership and each outstanding unit of limited partnership interest in the Ambassador operating partnership was converted into the right to receive 0.553 OP Units. Prior to its acquisition by AIMCO, Ambassador was a self-administered and self-managed real estate investment trust engaged in the ownership and management of garden-style apartment properties leased primarily to middle income tenants. Ambassador owned 52 apartment communities with a total of 15,728 units located in Arizona, Colorado, Florida, Georgia, Illinois, Tennessee and Texas, and managed one property containing 252 units for an unrelated third party.

   Insignia Merger

      On October 1, 1998, Insignia Financial Group, Inc., a Delaware corporation, (“Insignia”) was merged with and into AIMCO with AIMCO being the surviving corporation. The merger was accounted for as a purchase and as a result, the results of operations were included in the consolidated statement of income from the date of acquisition. The purchase price of $1,125.7 million was comprised of the issuance of up to approximately 8.9 million shares of Class E Cumulative Convertible Preferred Stock (the “Class E Preferred Stock”) valued at $301.2 million, $670.1 million in assumed debt and liabilities (including a $50 million special dividend, assumed liabilities of Insignia Properties Trust and transaction costs), $149.5 million in assumed mandatory redeemable convertible preferred securities, and $4.9 million in cash. The Class E Preferred Stock entitled the holders thereof to receive the same cash dividends per share as holders of Class A Common Stock. On January 15, 1999, holders of Class E Preferred Stock received a special dividend in an aggregate amount of approximately $50 million, and all outstanding shares of Class E Preferred Stock automatically converted into an equal number of shares of Class A Common Stock.

      As a result of the Insignia merger, AIMCO acquired:  (i) Insignia’s interests in Insignia Properties Trust, (“IPT”), a Maryland REIT, which was a majority owned subsidiary of Insignia; (ii) Insignia’s interest in Insignia Properties, L.P., IPT’s operating partnership; (iii) 100% of the ownership of the Insignia entities that provide multifamily property management and partnership administrative services; (iv) Insignia’s interest in multi-family co-investments; (v) Insignia’s ownership of subsidiaries that control multi-family properties not included in IPT; (vi) Insignia’s limited partner interests in public and private syndicated real estate limited partnerships; and (vii) assets incidental to the foregoing businesses. Insignia owned or managed in excess of 170,000 apartment units.

   Insignia Properties Trust Merger

      As a result of the Insignia merger, AIMCO acquired approximately 51% of the outstanding shares of beneficial interest of IPT. On February 26, 1999, IPT was merged into AIMCO. Pursuant to the merger, each of the outstanding shares of IPT that were not held by AIMCO were converted into the right to receive 0.3601 shares of Class A Common Stock, resulting in the issuance of approximately 4.3 million shares of Class A Common Stock (with a recorded value of approximately $158.8 million).

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   Oxford Acquisition

      On September 20, 2000, the Company acquired all of the stock and other interests of the Oxford entities that were held by six executive officers and directors of the Oxford entities. The Oxford properties, which are owned by 166 separate partnerships, are 167 apartment communities including 36,949 units, located in 18 states. This transaction was accounted for as a purchase, and as a result, the results of operations were included in the consolidated statement of income from the date of acquisition. The purchase price of $1,189 million was comprised of $266 million in cash, $861 million of assumed liabilities and transaction costs and $62 million in Common OP Units valued at $45 per unit.

   Unaudited Pro forma Statements

      The unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2000 and 1999 have been prepared as if each of the following transactions had occurred on January 1, 1999: (i) the Oxford acquisition; (ii) the acquisition of the Regency Windsor Apartment Communities, which include fourteen separate residential apartment communities located in Indiana, Michigan and North Carolina; (iii) the acquisition of the Dreyfuss Apartment Communities located in Virginia and Maryland; and (v) the Oxford tender offers of approximately $58 million ($37 million paid in cash, $21 million paid in Common OP units) that occurred in 2000 subsequent to the Oxford acquisition.

      The pro forma information is not necessarily indicative of what the Company’s results of operations would have been assuming the completion of the described transactions at the beginning of the periods indicated, nor does it purport to project the Company’s results of operations for any future period.

Pro Forma Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
(unaudited)

                 
    2000   1999
   
 
Rental and other property revenues   $ 1,139,564     $ 688,568  
Net income   $ 82,462     $ 33,788  
Net income (loss) attributable to common stockholders   $ 19,279     $ (23,097 )
Basic earnings (loss) per common share   $ 0.29     $ (0.37 )
Diluted earnings (loss) per common share   $ 0.28     $ (0.37 )

NOTE 5 — Investments in Unconsolidated Real Estate Partnerships

      The Company owns general and limited partner interests in approximately 625 partnerships which it acquired through acquisitions, direct purchases and separate offers to other limited partners. The Company’s total ownership interests in these unconsolidated real estate partnerships range from 1% to 99%. However, based on the provisions of the related partnership agreements, which grant varying degrees of control, the Company is not deemed to have control of these partnerships sufficient to require or permit consolidation for accounting purposes.

      During 2000 and 1999, the Company acquired limited partnership interests in various partnerships in which affiliates of the Company served as a general partner. The Company paid approximately $195 million in cash and OP Units and $271 million in cash and OP Units, during 2000 and 1999, respectively, in connection with such tender offers. In 2000, the Company also acquired general and limited partnership interests in various partnerships as part of the Oxford acquisition, which closed on September 20, 2000, increasing the resulting partnership debt.

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      The Oxford acquisition and consolidation of an additional 201 and 125 properties in 2000 and 1999, respectively, resulted in the following net change to the selected combined gross historical financial information for the Company’s unconsolidated real estate partnerships as of and for the years ended December 31, 2000 and 1999 (in thousands):

                 
    2000   1999
   
 
Real estate, net of accumulated depreciation   $ 2,597,025     $ 2,930,748  
Total assets     3,136,264       3,501,195  
Secured notes payable     4,246,457       2,940,819  
Total liabilities     4,484,159       3,536,646  
Partners’ deficit   (1,347,895 )   (35,451 )
Rental and other property revenues     777,621       1,120,888  
Property operating expenses   (408,198 )   (582,523 )
Depreciation expense   (140,730 )   (237,066 )
Interest expense   (232,995 )   (269,163 )
Net income     135,927       42,106  

NOTE 6 — Investments in Unconsolidated Subsidiaries

      In order to satisfy certain requirements of the Internal Revenue Code applicable to AIMCO’s status as a REIT, certain assets of the Company are held through corporations in which the AIMCO Operating Partnership holds non-voting preferred stock and certain officers and/or directors of AIMCO hold, directly or indirectly, all of the voting common stock. Effective December 29, 1999, a portion of the voting common stock was purchased by the Company and was exchanged for non-voting preferred stock, bringing the total voting common stock interests to represent a 1% economic interest and the non-voting preferred stock to represent a 99% economic interest.

      In 2000, in connection with the Oxford acquisition, the Company sold or contributed certain real estate assets and liabilities to the unconsolidated subsidiaries in exchange for notes receivable and preferred stock interest.

      As a result of the controlling ownership interest in the unconsolidated subsidiaries being held by others, AIMCO accounts for its interest in the unconsolidated subsidiaries using the equity method. As of December 31, 2000, the unconsolidated subsidiaries included AIMCO/NHP Holdings, Inc., AIMCO/NHP Properties, Inc., NHP Management Company, NHP A&R Services, Inc., and AIMCO/Bethesda Holdings, Inc.

      The following table provides selected combined historical financial information for the Company’s unconsolidated subsidiaries as of and for the years ended December 31, 2000 and 1999 (in thousands):

                 
    2000   1999
   
 
Total assets   $ 649,813     $ 166,019  
Total liabilities     654,076       128,423  
Stockholders’ equity   (4,263 )     37,596  
Total revenues     158,609       139,667  
Total expenses   (154,487 )   (142,515 )
Net income (loss)     4,122     (2,848 )

NOTE 7 — Notes Receivable

      The following table summarizes the Company’s notes receivable from unconsolidated real estate partnerships and subsidiaries at December 31, 2000 and 1999 (in thousands):

                                 
    Notes Receivable from   Notes Receivable from
    Unconsolidated Real   Unconsolidated
    Estate Partnerships   Subsidiaries
   
 
    2000   1999   2000   1999
   
 
 
 
Par value notes   $ 60,355     $ 67,414     $ 218,873     $ 88,754  
Discounted notes     80,505       92,521              
Less: General partner notes payable               (28,420 )      
     
     
     
     
 
Total   $ 140,860     $ 159,935     $ 190,453     $ 88,754  
     
     
     
     
 

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      The Company recognizes interest income earned from its investments in notes receivable based upon whether the collectibility of such amounts is both probable and estimable. The notes receivable were either extended by the Company and are carried at the face amount plus accrued interest (“par value notes”) or were made by predecessors whose positions have been acquired by the Company at a discount and are carried at the acquisition amount using the cost recovery method (“discounted notes”).

      As of December 31, 2000 and 1999, the Company held $60.4 million and $67.4 million, respectively, of par value notes receivable from unconsolidated real estate partnerships, including accrued interest, for which management believes the collectibility of such amounts is both probable and estimable. As such, interest income from the par value notes is generally recognized as it is earned. Interest income from such notes for the years ended December 31, 2000, 1999 and 1998, totaled $23.2 million, $12.8 million, and $15.3 million, respectively.

      As of December 31, 2000 and 1999, the Company held discounted notes, including accrued interest, with a carrying value of $80.5 million and $92.5 million, respectively. The total face value plus accrued interest of these notes were $151.0 million and $173.1 million in 2000 and 1999, respectively. In general, interest income from the discounted notes is not recognized as it is earned until such time as the timing and amounts of cash flows are probable and estimable.

      Under the cost recovery method, the discounted notes are carried at the acquisition amount, less subsequent cash collections, until such time as collectibility is probable and the timing and amounts are estimable. Based upon closed or pending transactions (including sales activity), market conditions, and improved operations of the obligor, among other things, certain notes and the related discounts have been determined to be collectible. Accordingly, interest income that had previously been deferred and portions of the related discounts were recognized as interest income during the period. For the years ended December 31, 2000, 1999 and 1998, the Company recognized deferred interest income and discounts of approximately $26.4 million ($0.39 per share (basic) and $0.38 per share (diluted)), $32.5 million ($0.52 per share (basic) and $0.51 per share (diluted)), and $1.4 million ($0.03 per basic and diluted share). Approximately 90% of the recognized interest income is collected in cash or through foreclosure of the property securing the note within 12 months from the date that such amounts were determined to be collectible, and the remainder is collected in the following six months.

      As of December 31, 2000 and 1999, the Company held $218.9 million and $88.8 million, respectively of par value notes receivable from unconsolidated subsidiaries. In 2000, in connection with the Oxford acquisition, the Company sold certain assets and liabilities to the unconsolidated subsidiaries in exchange for notes receivable. The Company also acquired, in the Oxford acquisition, notes receivable that were payable from Oxford entities that are now owned by the unconsolidated subsidiaries. Certain general partner notes are held at the unconsolidated subsidiaries and, therefore, the general partner payables ($28.4 million) related to these notes are offset against the Company's notes receivable from unconsolidated subsidiaries.

NOTE 8 — Secured Notes Payable

      During 2000, the Company issued or assumed $669.0 million of long-term, fixed-rate, fully amortizing non-recourse notes payable with a weighted average interest rate of 7.5%. Each of the notes is individually secured by 107 properties with no cross-collateralization. In addition, the Company also assumed $895.9 million of long-term, fixed-rate notes payable, as a part of purchasing controlling interests in limited partnerships owning 201 properties, which resulted in these properties being consolidated in 2000.

      The following table summarizes the Company’s secured notes payable at December 31, 2000 and 1999, all of which are non-recourse to the Company (in thousands):

                   
      2000   1999
     
 
Fixed rate, ranging from 5.00% to 12.00%, fully-amortizing notes maturing at various
  dates through 2034
  $ 2,428,155     $ 1,597,772  
Fixed rate, ranging from 5.00% to 10.04%, non-amortizing notes maturing at various
  dates through 2029
    830,187       356,487  
   
     
 
     Total   $ 3,258,342     $ 1,954,259  
   
     
 

      As of December 31, 2000, the scheduled principal amortization and maturity payments for the Company’s secured notes payable are as follows (in thousands):

                         
    Amortization   Maturities   Total
   
 
 
2001   $ 51,266     $ 96,343     $ 147,609  
2002     70,542       102,484       173,026  
2003     79,344       150,237       229,581  
2004     82,831       141,173       224,004  
2005     89,253       142,302       231,555  
Thereafter                     2,252,567  
                     
 
                    $ 3,258,342  
                     
 

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NOTE 9 — Secured Tax-Exempt Bond Financing

      During 2000, the Company assumed $394.0 million of long-term, fixed-rate, fully amortizing non-recourse tax-exempt bonds with a weighted average interest rate of 5.9%. Each of the bonds is individually secured by one of 22 properties with no cross-collateralization.

      In 1999, the Company issued $17.8 million of long-term, fixed-rate, fully amortizing non-recourse tax-exempt bonds with a weighted average interest rate of 7.1%. Each of the bonds is individually secured by one of two properties with no cross-collateralization. The Company used the net proceeds after transaction costs of $17.3 million to repay existing debt.

      The following table summarizes the Company’s secured tax-exempt bond financing at December 31, 2000 and 1999, all of which is non-recourse to the Company (in thousands):

                   
      2000   1999
     
 
7.0% fully-amortizing bonds, due July 2016   $ 42,435     $ 43,889  
6.9% fully-amortizing bonds, due July 2016     8,686       8,987  
Fixed rate fully-amortizing bonds, ranging from 5.1% to 5.8%, due 2021     117,025       157,578  
Fixed rate fully-amortizing bonds, ranging from 6.5% to 7.3%, due at various
   dates through 2036
    286,604       79,866  
Fixed rate non-amortizing bonds, ranging from 5.0% to 8.19%, due at various
   dates through 2017
    32,993       50,158  
Interest-only bonds, ranging from 3.7% to 7.70%, due at various dates
   through 2029
    195,331       4,453  
Floating rate non-amortizing bonds, due 2001 and 2008     30,799       31,689  
Variable rate bonds, ranging from 4.9% to 5.3%, due 2021     59,160       44,210  
   
     
 
  Total   $ 773,033     $ 420,830  
   
     
 

      As of December 31, 2000, the scheduled principal amortization and maturity payments for the Company’s secured tax-exempt bonds are as follows (in thousands):

                         
    Amortization   Maturities   Total
   
 
 
2001   $ 28,225     $     $ 28,225  
2002     12,718             12,718  
2003     13,400             13,400  
2004     14,139       121,795       135,934  
2005     15,192             15,192  
Thereafter                     567,564  
                     
 
                    $ 773,033  
                     
 

NOTE 10 — Secured Short-Term Financing

      In August 1999, the Company closed a $300 million revolving credit facility arranged by Bank of America, N.A., Fleet National Bank (successor in Bank Boston, N.A.) and First Union National Bank with a syndicate comprised of a total of nine lender participants. Effective March 15, 2000 the credit facility was expanded by $45 million with the potential to expand it by another $55 million to a total of $400 million. Of the $55 million potential expansion, $5 million was expanded on April 14, 2000 bringing the total availability to $350 million. In September 2000, the credit facility was amended and restated. The obligations under the credit facility are secured by a first priority pledge of certain non-real estate assets of the Company and a second priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., and AIMCO Holdings, L.P., in certain subsidiaries of AIMCO and certain options to purchase Beneficial Assignee Interests (“BACs”) in Oxford Tax Exempt Fund II Limited Partnership (“OTEF”). Borrowings under the credit facility, including the $50 million expansion, are available for general corporate purposes. The credit facility matures in July 2002 and can be extended twice at AIMCO’s option, for a term of one year. The annual interest rate under the new credit facility is based on either LIBOR or a base rate which is the higher of Bank of America’s reference rate or 0.5% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 2.05% and 2.55%, in the case of LIBOR-based loans, and between 0.55% and 1.05%, in the case of base rate loans, based upon a fixed charge coverage ratio. The weighted average interest rate at December 31, 2000 was 9.16% and the balance outstanding was $254.7 million. The amount available under the credit facility at December 31, 2000 and 1999 was $95.3 million (less $1.2 million for outstanding letters for credit) and $90.8 million, respectively. Of the total availability of $94.1 million, $28.8 million pertains to unused letters of credit.

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      In September 2000, the Company closed a term loan from Bank of America, N.A., Lehman Commercial Paper Inc. and several other lenders, pursuant to a term loan with a total availability of $302 million to finance part of the Oxford acquisition. Transaction costs (including advisory fees) incurred on the term loan were $9.4 million. The borrowers under the term loan are the AIMCO Operating Partnership, NHP Management Company and AIMCO/Bethesda Holdings, Inc., and all obligations thereunder are guaranteed by AIMCO and certain of its subsidiaries. The obligations under the term loan are secured by a first priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., and AIMCO Holdings, L.P., in certain subsidiaries of AIMCO and certain options to purchase BACs in OTEF and a second priority pledge of certain non-real estate assets of the Company. The annual interest rate under the term loan is based either on LIBOR or a base rate which is the higher of Bank of America’s reference rate or 0.5% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 4.0% and 5.0% in the case of LIBOR-based loans, and between 1.0% and 2.0% in the case of base rate loans, based upon the number of months the loan is outstanding. The term loan expires in July 2002. The weighted average interest rate at December 31, 2000 was 10.5%. The total amount outstanding under the term loan at December 31, 2000 was $137 million, of which $74 million is classified as secured short-term financing of the Company and the remainder is a liability at the unconsolidated subsidiaries and, therefore, is included in investment in unconsolidated subsidiaries.

NOTE 11 — Commitments and Contingencies

   Legal

      The Company is a party to various legal actions resulting from its operating activities. These actions are routine litigation and administrative proceedings arising in the ordinary course of business, some of which are covered by liability insurance, and none of which are expected to have a material adverse effect on the consolidated financial condition or results of operations of the Company and its subsidiaries taken as a whole.

   Limited Partnerships

      In connection with the Company’s acquisitions of interests in limited partnerships that own properties, the Company and its affiliates are sometimes subject to legal actions, including allegations that such activities may involve breaches of fiduciary duties to the limited partners of such partnerships or violations of the relevant partnership agreements. The Company believes it complies with its fiduciary obligations and relevant partnership agreements, and does not expect such legal actions to have a material adverse effect on the consolidated financial condition or results of operations of the Company and its subsidiaries taken as a whole. The Company may incur costs in connection with the defense or settlement of such litigation, which could adversely affect the Company’s desire or ability to complete certain transactions or otherwise have a material adverse effect on the Company and its subsidiaries.

   Pending Investigations of HUD Management Arrangements

      In July 1999, The National Housing Partnership (“NHP”) received a grand jury subpoena requesting documents relating to NHP’s management of HUD-assisted or HUD-insured multi-family projects and NHP’s operation of a group purchasing program created by NHP, known as Buyers Access. The subpoena relates to the same subject matter as subpoenas NHP received in October and December of 1997 from the HUD Inspector General. To date, neither the HUD Inspector General nor the grand jury has initiated any action against NHP or AIMCO or, to NHP’s or AIMCO’s knowledge, any owner of a HUD property managed by NHP. AIMCO believes that NHP’s operations and programs are in compliance, in all material respects, with all laws, rules and regulations relating to HUD-assisted or HUD-insured properties. AIMCO is cooperating with the investigation and does not believe that the investigation will result in a material adverse effect on the financial condition of the Company. However, as with any similar investigation, there can be no assurance that these will not result in material fines, penalties or other costs that may impact the Company’s future results of operations or cash flow.

   Environmental

      Various Federal, state and local laws subject property owners or operators to liability for the costs of removal or remediation of certain hazardous substances present on a property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of the hazardous substances. The presence of, or the failure to properly remediate hazardous substances may adversely affect occupancy at contaminated apartment communities and the ability to sell or borrow against contaminated properties. In addition to the costs associated with investigation and remediation actions brought by governmental agencies, the presence of hazardous wastes on a property could result in personal injury or similar claims by private plaintiffs.

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Various laws also impose liability for the cost of removal or remediation of hazardous substances at the disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous or toxic substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of our properties, the Company could potentially be liable for environmental liabilities or costs associated with properties or properties it acquires or manages in the future.

   Operating Leases

      The Company is obligated under office space and equipment non-cancelable operating leases. In addition, the Company subleases certain of its office space to tenants under non-cancelable subleases. Approximate minimum annual rentals under operating leases and approximate minimum payments to be received under annual subleases for the five years ending after December 31, 2000 are as follows (in thousands):

                 
    Operating Lease   Sublease
    Payments   Payments
   
 
2001   $ 11,059     $ 2,350  
2002     5,796       84  
2003     4,116        
2004     3,525        
2005     1,534        
     
     
 
Total   $ 26,030     $ 2,434  
     
     
 

      Under the Company’s current operating structure, substantially all of the office space and equipment subject to the operating leases described above are for the use of its regional operating centers, which are operated by certain of the Company’s unconsolidated subsidiaries (see Note 6). Rent expense recognized by the unconsolidated subsidiaries totaled $5.6, $5.8 and $6.2 million in 2000, 1999 and 1998, respectively. Sublease payments for 2000, 1999 and 1998 were not material.

NOTE 12 — Mandatorily Redeemable Convertible Preferred Securities

      In connection with the Insignia merger, the Company assumed the obligations under the Trust Based Convertible Preferred Securities with an aggregate liquidation amount of $149.5 million. The securities will mature on September 30, 2016 and require distributions at the rate of 6.5% per annum, with quarterly distributions payable in arrears. The securities are convertible by the holders at any time through September 30, 2016 and may be redeemed by the Company on or after November 1, 1999. Each $50 of liquidation value of the securities can be converted into Class A Common Stock at a conversion price of $49.61, which equates to 1.007 shares of Class A Common Stock. In 2000, the holders of the securities converted a total of $117.2 million of the $149.5 million of the securities into approximately 2,363,000 shares of Class A Common Stock.

NOTE 13 — Transactions Involving Minority Interests in Operating Partnership

      The Company completed tender offers for limited partnership interests and acquisitions of individual properties resulting in the issuance of 2,189,000 and 1,084,000 Common OP Units in 2000 and 1999, respectively. Of the 2,189,000 Common OP Units issued in 2000, approximately 1,382,000 were issued in connection with the acquisition of interests in Oxford properties. The Company also issued Preferred OP Units to acquire individual properties and limited partnership interests.

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      As of December 31, 2000 and 1999, the following amounts of Preferred OP Units were outstanding (in thousands):

                 
    2000   1999
   
 
Class One Partnership Preferred Units, redeemable to Class A Common Stock in one year, holder to receive dividends at 8% ($8.00 per annum per unit)     90       90  
Class Two Partnership Preferred Units, redeemable to Class A Common Stock in one year, holders to receive dividends at 8% ($2.00 per annum per unit)     80       11  
Class Three Partnership Preferred Units, redeemable to Class A Common Stock in one year, holders to receive dividends at 9.5% ($2.375 per annum per unit)     1,682       1,682  
Class Four Partnership Preferred Units, redeemable to Class A Common Stock in one year, holders to receive dividends at 8% ($2.00 per annum per unit)     759       580  
Class Five Partnership Preferred Units, redeemable to Class A Common Stock at any time at the option of the partnership, holder to receive dividends equal to the per unit distribution on the Common OP Units ($2.80 per unit for 2000)     69        
Class Six Partnership Preferred Units, redeemable to Class A Common Stock in one year, holder to receive dividends at 8.5% ($2.125 per annum per unit)     859        
Class Seven Partnership Preferred Units, redeemable to Class A Common Stock in one year, holder to receive dividends at 9.5% ($2.375 per annum per unit)     30        
Class Eight Partnership Preferred Units, redeemable to Class A Common Stock at any time at the option of the partnership, holder to receive dividends equal to the per unit distribution on the Common OP Units ($2.80 per unit for 2000)     6        
     
     
 
      3,575       2,363  
     
     
 

NOTE 14 — Registration Statements

      In August 1998, AIMCO and the AIMCO Operating Partnership filed a shelf registration statement with the Securities and Exchange Commission with respect to an aggregate of $1,268 million of debt and equity securities of AIMCO (of which $268 million was carried forward from a 1997 shelf registration statement) and $500 million of debt securities of the AIMCO Operating Partnership. The registration statement was declared effective by the SEC on December 10, 1998. As of December 31, 2000, the Company had $988 million available and the AIMCO Operating Partnership had $500 million available from this registration statement. The Company expects to finance pending acquisitions of real estate interests with the issuance of equity and debt securities under the shelf registration statement.

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NOTE 15 — Stockholders’ Equity

   Preferred Stock

      At December 31, 2000 and 1999, the Company had the following classes of preferred stock outstanding:

                   
      2000   1999
     
 
Perpetual:
Class C Cumulative Preferred Stock, $.01 par value, 2,400,000
shares authorized, 2,400,000 and 2,400,000 shares issued
and outstanding; dividends payable at 9.0%, per annum
  $ 59,845     $ 60,000  
Class D Cumulative Preferred Stock, $.01 par value, 4,200,000
shares authorized, 4,200,000 and 4,200,000 shares issued and
outstanding; dividends payable at 8.75%, per annum
    105,000       105,000  
Class G Cumulative Preferred Stock, $.01 par value, 4,050,000
shares authorized, 4,050,000 and 4,050,000 shares issued and
outstanding; dividends payable at 9.375%, per annum
    101,000       101,250  
Class H Cumulative Preferred Stock, $.01 par value, 2,000,000
shares authorized, 2,000,000 and 2,000,000 shares issued and
outstanding; dividends payable at 9.5%, per annum
    49,925       50,000  
   
     
 
    315,770       316,250  
   
     
 
Convertible:
Class B Cumulative Convertible Preferred Stock, $.01 par value,
750,000 shares authorized, 419,471 and 750,000 shares issued
and outstanding
    41,947       75,000  
Class K Convertible Cumulative Preferred Stock, $.01 par value,
5,000,000 shares authorized, 5,000,000 and 5,000,000 shares
issued and outstanding
    125,000       125,000  
Class L Convertible Cumulative Preferred Stock, $.01 par value,
5,000,000 shares authorized, 5,000,000 and 5,000,000 shares
issued and outstanding
    125,000       125,000  
Class M Convertible Cumulative Preferred Stock, $.01 par value,
1,600,000 shares authorized, 1,200,000 and no shares issued and
outstanding
    30,000        
Class N Convertible Cumulative Preferred Stock, $.01 par value,
4,000,000 shares authorized, 4,000,000 and no shares issued
and outstanding
    100,000        
Class O Cumulative Convertible Preferred Stock, $.01 par value,
1,904,762 shares authorized, 1,904,762 and no shares issued
and outstanding
    100,000        
   
     
 
    521,947       325,000  
   
     
 
Total   $ 837,717     $ 641,250  
   
     
 

      All classes of preferred stock are on equal parity and are senior to the Class A Common Stock. The holders of each class of preferred stock are generally not entitled to vote on matters submitted to stockholders. Dividends on all preferred stocks are subject to being declared by the Company’s Board of Directors.

      Holders of the Class B Cumulative Convertible Preferred Stock (the “Class B Preferred Stock”) are entitled to receive, cash dividends in an amount per share equal to the greater of (i) $7.125 per year (equivalent to 7.125% of the liquidation preference) or (ii) the cash dividends declared on the number of shares of Class A Common Stock into which one share of Class B Preferred Stock is convertible. Each share of Class B Preferred Stock is convertible, at the option of the holder, beginning August 1998, into 3.28407 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was based upon the fair market value of the Class A Common Stock on the commitment date. In 2000, 330,529 shares of Class B Preferred Stock were converted into 1,085,480 shares of Class A Common Stock.

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      Holders of Class K Convertible Cumulative Preferred Stock (the “Class K Preferred Stock”), which was issued on February 18, 1999, are entitled to receive, cash dividends in an amount per share equal to the greater of (i) $2.00 per year (equivalent to 8% of the liquidation preference) or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class K Preferred Stock is convertible. Beginning with the third anniversary of the date of original issuance, holders of Class K Preferred Stock will be entitled to receive an amount per share equal to the greater of (i) $2.50 per year (equivalent to 10% of the liquidation preference), or (ii) the cash dividends payable on the number of Class A Common Stock into which a share of Class K Preferred Stock is convertible. Each share of Class K Preferred Stock is convertible, at the option of the holder, into 0.59524 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

      Holders of Class L Convertible Cumulative Preferred Stock (the “Class L Preferred Stock”), which was issued on May 28, 1999, are entitled to receive, cash dividends in an amount per share equal to the greater of (i) $2.025 per year (equivalent to 8.1% of the liquidation preference) or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class L Preferred Stock is convertible. Beginning with the third anniversary of the date of original issuance, the holders of Class L Preferred Stock will be entitled to receive an amount per share equal to the greater of (i) $2.50 per year (equivalent to 10% of the liquidation preference) or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class L Preferred Stock is convertible. Each share of Class L Preferred Stock is convertible, at the option of the holder, into 0.5379 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

      Holders of Class M Convertible Cumulative Preferred Stock (the “Class M Preferred Stock”), which was issued on January 13, 2000, are entitled to receive, for the period beginning January 13, 2000 through and including January 13, 2003, cash dividends in an amount per share equal to the greater of (i) $2.125 per year (equivalent to 8.5% of the liquidation preference) or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class M Preferred Stock is convertible. Beginning with the third anniversary of the date of original issuance, the holder of Class M Preferred Stock will be entitled to receive an amount per share equal to the greater of (i) $2.3125 per year (equivalent to 9.25% of the liquidation preference), or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class M Preferred Stock is convertible. Each share of Class M Preferred Stock is convertible, at the option of the holder, into 0.5681818 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

      Holders of Class N Convertible Cumulative Preferred Stock (the “Class N Preferred Stock”), which was issued on September 12, 2000 are entitled to receive cash dividends in an amount per share equal to the greater of (i) $2.25 per year (equivalent to 9% per annum of the liquidation preference), subject to increase in the event of a change in control of AIMCO or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class N Preferred Stock is convertible. Dividends will be paid on the Class N Preferred Stock quarterly, beginning on October 1, 2000. Each share of Class N Preferred Stock is convertible, at the option of the holder, into 0.4762 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

      Holders of Class O Cumulative Convertible Preferred Stock (the “Class O Preferred Stock”), which was issued on September 15, 2000 are entitled to receive, cash dividends in an amount per share equal to the greater of (i) $4.725 per year (equivalent to 9% per annum of the liquidation preference), subject to increase in the event of a change in control of AIMCO or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class O Preferred Stock is convertible. Dividends will be paid on the Class O Preferred Stock quarterly, beginning on October 1, 2000. Each share of Class O Preferred Stock is convertible, at the option of the holder, into one share of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

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The dividends paid on each class of preferred stock for the years ended December 31, 2000, 1999, and 1998 are as follows (in thousands, except per share data):

                                                 
    2000   1999   1998
   
 
 
    Amount   Total   Amount   Total   Amount   Total
Class of   Per   Amount   Per   Amount   Per   Amount
Preferred Stock   Share(1)   Paid   Share(1)   Paid   Share(1)   Paid

 
 
 
 
 
 
Perpetual:
Class C   $ 2.25     $ 5,400     $ 2.25     $ 5,400     $ 1.89 (2)   $ 4,538  
Class D     2.19       9,188       2.19       9,188     1.40 (2)     5,869  
Class G     2.34       9,492       2.34       9,492     0.59 (2)     2,373  
Class H     2.38       4,750       2.38       4,750     0.40 (2)     805  
             
             
             
 
              28,830               28,830               13,585  
             
             
             
 
Convertible:
Class B     9.20       7,137       8.21       6,158       7.39       5,542  
Class E                           0.22 (3)     1,892  
Class J               3.16 (4)     3,956     0.14 (2)     175  
Class K     2.00       10,000     1.50 (5)     7,500              
Class L     2.03       10,125     1.01 (5)     5,063              
Class M   1.59 (6)     1,913                          
Class N   0.12 (6)     475                          
Class O   0.24 (6)     450                          
             
             
             
 
              30,100               22,677               7,609  
             
             
             
 
Total           $ 58,930             $ 51,507             $ 21,194  
             
             
             
 


(1)   Amounts per share are calculated based on the number of preferred shares outstanding at the end of each year.
(2)   For the period from the date of issuance to December 31, 1998.
(3)   For the period from the date of issuance to December 31, 1998. The Class E Preferred Stock was converted to Class A Common Stock on January 15, 1999.
(4)   For the period from January 1, 1999 to the date of conversion to Class A Common Stock.
(5)   For the period from the date of issuance to December 31, 1999.
(6)   For the period from the date of issuance to December 31, 2000.

   Common Stock

      During 2000 and 1999, the Company issued approximately 258,000 shares and 215,000 shares, respectively, of Class A Common Stock to certain executive officers (or entities controlled by them) at market prices. In exchange for the shares purchased, the executive officers (or entities controlled by them) executed notes payable totaling $7.7 million and $8.2 million, respectively. Total payments on such notes from officers in 2000 and 1999 were $15.1 million and $6.2 million, respectively. In addition, in 2000 and 1999, the Company issued approximately 42,000 and 37,000 restricted shares of Class A Common Stock, respectively, to certain executive officers. The restricted stock was issued at the fair market value of the Class A Common Stock on the date of issuance. The restricted stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of and shall be subject to a risk of forfeiture within the vesting periods of 3 to 5 years.

      On September 15, 1999, the Company completed a direct placement of 1,382,580 shares of Class A Common Stock at a net price of $39.50 per share to five institutional investors. The net proceeds of approximately $54.6 million were used to repay outstanding indebtedness under the new credit facility.

      During 2000, the Company repurchased and retired approximately 69,000 shares of Class A Common Stock at an average price of $37.39 per share.

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NOTE 16 — Stock Option Plans and Stock Warrants

      The Company has adopted the 1994 Stock Option Plan of Apartment Investment and Management Company (the “1994 Plan”), the Apartment Investment and Management Company 1996 Stock Award and Incentive Plan (the “1996 Plan”), the Apartment Investment and Management Company 1997 Stock Award and Incentive Plan (the “1997 Plan”) and the Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan (the “Non-Qualified Plan”) to attract and retain officers, key employees and independent directors. The 1994 Plan provides for the granting of a maximum of 150,000 options to purchase common shares. The 1996 Plan provides for the granting of a maximum of 500,000 options to purchase common shares. The 1997 Plan provides for the granting of a maximum of 20,000,000 options to purchase common shares. The Non-Qualified Plan provides for the granting of a maximum of 500,000 options to purchase common shares and allows for the granting of non-qualified stock options. The 1994 Plan, the 1996 Plan and the 1997 Plan allow for the grant of incentive and non-qualified stock options, and together with the Non-Qualified Plan, are administered by the Compensation Committee of the Board of Directors. The 1994 Plan also provides for a formula grant of the non-qualified stock options to the independent directors to be administered by the Board of Directors to the extent necessary. The exercise price of the options granted may not be less than the fair market value of the common stock at the date of grant. The term of the incentive and non-qualified options is ten years from the date of grant. The options vest over a one to five-year period from the date of grant. Terms may be modified at the discretion of the Compensation Committee of the Board of Directors.

      The Company has elected to follow Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (“APB 25”) and related interpretations in accounting for its employee stock options because, as discussed below, the alternative fair value accounting provided for under Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation (“SFAS 123”), requires the use of option valuation models that were not developed for use in valuing employee stock options and warrants. Under APB 25, because the exercise price of the Company’s employee stock options and warrants equals the market price of the underlying stock on the date of grant, no compensation expense is recognized.

      Pro forma information regarding net income and earnings per share is required by SFAS 123, which also requires that the information be determined as if the Company had accounted for its employee stock options and warrants granted subsequent to December 31, 1994 under the fair value method. The fair value for these options and warrants were estimated at the date of grant using a Black-Scholes valuation model with the following assumptions:

                         
    2000   1999   1998
   
 
 
Risk free interest rates   6.1 %   5.0 %   5.0 %
Expected dividend yield   6.8 %   6.6 %   6.0 %
Volatility factor of the expected market price of the Company’s common stock     0.192       0.183       0.183  
Weighted average expected life of options     4.5 years       4.5 years       4.5 years  

      The Black-Scholes valuation model was developed for use in estimating the fair value of traded options and for warrants which have no vesting restrictions and are fully transferable. In addition, the valuation model requires the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s stock options and warrants have characteristics significantly different from those of traded options and warrants, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing model does not necessarily provide a reliable single measure of the fair value of its employee stock options and warrants.

      For purposes of pro forma disclosures, the estimated fair values of the options are amortized over the options’ vesting period. The Company’s pro forma information for the years ended December 31, 2000, 1999 and 1998 is as follows (in thousands, except per share data):

                         
    2000   1999   1998
   
 
 
Pro forma net income attributable to common stockholders   $ 31,396     $ 17,606     $ 34,396  
Pro forma basic earnings per common share   $ 0.46     $ 0.28     $ 0.76  
Pro forma diluted earnings per common share   $ 0.45     $ 0.28     $ 0.75  

      The effects of applying SFAS 123 in calculating pro forma income attributable to common stockholders and pro forma basic earnings per share may not necessarily be indicative of the effects of applying SFAS 123 to future years’ earnings.

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      The following table summarizes the option and warrants activity for the years ended December 31, 2000, 1999 and 1998:

                                                 
    2000   1999   1998
   
 
 
            Weighted           Weighted           Weighted
    Options   Average   Options   Average   Options   Average
    And   Exercise   And   Exercise   and   Exercise
    Warrants   Price   Warrants   Price   Warrants   Price
   
 
 
 
 
 
Outstanding at beginning of year     8,660,000     $ 37.78       8,325,000     $ 36.38       1,684,000     $ 30.53  
Granted     219,000       39.89       1,000,000       37.14       6,686,000       37.78  
Assumed in connection with acquisition                             671,000       25.99  
Exercised   (594,000 )     17.31     (490,000 )     13.78     (661,000 )     25.19  
Forfeited   (50,000 )     37.02     (175,000 )     34.68     (55,000 )     35.71  
     
     
     
     
     
     
 
Outstanding at end of year     8,235,000     $ 37.80       8,660,000     $ 37.78       8,325,000     $ 36.38  
Exercisable at end of year     3,942,000     $ 37.54       1,643,000     $ 37.55       1,793,000     $ 31.69  
Weighted-average fair value
   of options and warrants
   granted during the year
          $ 4.65             $ 3.41             $ 3.70  

      At December 31, 2000, exercise prices for outstanding and exercisable options range from $15.21 to $44.22 and warrants range from $36.00 to $41.00, and the remaining weighted-average contractual life of the options is 8 years.

      On December 14, 1998, the Company sold, in a private placement, 1.4 million Class B partnership preferred units of a subsidiary of the AIMCO Operating Partnership for $30.85 million. The partnership units may be redeemed at the option of the holders at any time, and at the option of the Company under certain circumstances. Any redemption of the units may be satisfied by delivery of cash, Class A Common Stock or OP Units. As a part of the transaction, the Company also sold a warrant to purchase 875,000 shares of Class A Common Stock for $4.15 million. The warrant has an exercise price of $40 per share. The warrant may be exercised at any time, and expires upon redemption of the Class B partnership preferred units issued by a subsidiary of the AIMCO Operating Partnership.

      On December 2, 1997, AIMCO issued warrants (the “Oxford Warrants”) exercisable to purchase up to an aggregate of 500,000 shares of Class A Common Stock at $41 per share. The Oxford Warrants were issued to affiliates of Oxford Realty Financial Group, Inc., a Maryland corporation (“Oxford”), in connection with the amendment of certain agreements pursuant to which the Company manages properties formerly controlled by Oxford or its affiliates. The Oxford Warrants were amended in connection with the acquisition of the Oxford entities in September 2000, are currently exercisable and terminate on December 31, 2006.

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NOTE 17 — Earnings per Share

      The following table illustrates the calculation of basic and diluted earnings per share for the years ended December 31, 2000, 1999 and 1998 (in thousands, except per share data):

                             
        2000   1999   1998
       
 
 
Numerator:
Net income   $ 99,178     $ 77,527     $ 64,474  
Less: Net income allocable to preferred stockholders   (63,183 )   (53,453 )   (26,533 )
   
     
     
 
Numerator for basic and diluted earnings per share — net income attributable to common stockholders   $ 35,995     $ 24,074     $ 37,941  
   
     
     
 
Denominator:
Denominator for basic earnings per share — weighted average number of shares of common stock outstanding     67,572       62,242       45,187  
Effect of dilutive securities:
Dilutive potential common shares     1,491       1,204       2,437  
   
     
     
 
Denominator for diluted earnings per share     69,063       63,446       47,624  
   
     
     
 
Basic earnings per common share:
  Operations   $ 0.18     $ 0.42     $ 0.74  
  Gain (loss) on disposition of properties     0.35     (0.03 )     0.10  
   
     
     
 
    Total   $ 0.53     $ 0.39     $ 0.84  
   
     
     
 
Diluted earnings per common share:
  Operations   $ 0.17     $ 0.41     $ 0.70  
  Gain (loss) on disposition of properties     0.35     (0.03 )     0.10  
   
     
     
 
    Total   $ 0.52     $ 0.38     $ 0.80  
   
     
     
 

      The Class B Preferred Stock, the Class J Preferred Stock (1999 and 1998), the Class K Preferred Stock, the Class L Preferred Stock, the Class M Preferred Stock, the Class N Preferred Stock and the Class O Preferred Stock are convertible into Class A Common Stock (see Note 15). The Class C Preferred Stock, the Class D Preferred Stock, the Class G Preferred Stock, and the Class H Preferred Stock are not convertible. All of the convertible preferred stock is anti-dilutive on an “as converted” basis, therefore, all of the dividends are deducted to arrive at the numerator and no additional shares are included in the denominator.

NOTE 18 — Recent Accounting Developments

      In June 1998, Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (“Statement 133”) was issued. In June 2000, Statement of Financial Accounting Standards No. 138, “Accounting for Certain Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133"(“SFAS 138)” was issued. SFAS 133 and SFAS 138 address the accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and hedging activities. The Company is required to adopt SFAS 133 and SFAS 138 in the first quarter of 2001. The Company anticipates that the adoption of SFAS 133 and SFAS 138 as of January 1, 2001 will not have a material effect on its financial position or results of operations.

      In September 2000, Statement of Financial Accounting Standards No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities” (“SFAS 140”) was issued. SFAS 140 provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. SFAS 140 is effective for recognition and reclassification of collateral and for disclosures relating to securitization transactions and collateral for fiscal years ending after December 15, 2000 and is effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after March 31, 2001. The Company anticipates that the adoption of SFAS 140 will not have a material effect on its financial position or results of operations.

      In December 1999, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (“SAB 101”). SAB 101 summarizes certain of the SEC’s views in applying generally accepted accounting principles to revenue recognition in financial statements. SAB 101 is effective for the fourth quarter of fiscal years beginning after December 1999. The Company believes that it is in compliance with the guidelines set forth in SAB 101.

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NOTE 19 — High Performance Units

      In January 1998, the AIMCO Operating Partnership sold an aggregate of 15,000 of its Class I High Performance Partnership Units (the “High Performance Units”) to a joint venture comprised of fourteen members of AIMCO’s senior management and to three of its independent directors for $2.1 million in cash. The value of the High Performance Units was determined on December 31, 2000 based on the Company’s total return, defined as dividend income plus share price appreciation of the Class A Common Stock, over the three year period ended December 31, 2000 (the “Total Return”). As a result, the 15,000 High Performance Units converted to approximately 2,379,000 High Performance Units in January 2001, and the holders of the High Performance Units will receive distributions and allocations of income and loss from the AIMCO Operating Partnership in the same amounts and at the same times as would holders of the same number of Common OP Units. The table below illustrates the calculation of the value of High Performance Units (in thousands):

                                                                 
    Morgan                       Excess   Value of
AIMCO   Stanley                   Average   Shareholder   High
Total   Dean Witter   Minimum   Excess   Market   Value   Performance   OP Unit   OP Unit
Return   REIT Index   Return   Return   Capitalization   Added(1)   Units (2)   Dilution   Dilution %

59.24%   0.58 %   30.00 %   29.24 %   $ 2,623,000     $ 767,000     $ 115,000     2,379 (3)   2.43 %


(1)   Excess Return multiplied by average market capitalization
(2)   Excess Shareholder Value Added multiplied by 15%
(3)   OP Unit calculation based on trailing 20-day average stock price of $48.36

NOTE 20 — Employee Benefit Plans

      The Company offers medical, dental, life and short-term and long-term disability benefits to employees of the Company through insurance coverage of Company-sponsored plans. The medical and dental plans are self-funded and are administered by independent third parties. In addition, the Company also participates in a 401(k) defined-contribution employee savings plan. Employees who have completed six months of service are eligible to participate. The Company matches 50%-100% of the participant’s contributions to the plan up to a maximum of 6% of the participant’s prior year compensation. The Company match percentage is based on employee tenure. The expense incurred by the Company totaled approximately $3.7 million, $2.6 million and $1.6 million in 2000, 1999 and 1998, respectively.

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NOTE 21 — Unaudited Summarized Consolidated Quarterly Information

      Summarized unaudited consolidated quarterly information for 2000 and 1999 is provided below (amounts in thousands, except per share amounts).

                                 
    Quarter(1)
   
Year Ended December 31, 2000   First   Second   Third   Fourth

 
 
 
 
Rental and other property revenues   $ 224,320     $ 258,064     $ 271,079     $ 297,537  
Income from property operations     70,173       63,986       84,027       69,653  
Revenue from service company business     10,025       12,410       14,430       12,827  
Company’s share of income from service company business     3,493       2,968       1,835     (2,811 )
Income before minority interest in Operating Partnership     28,454       13,160       33,457       34,646  
Net income     25,882       11,822       30,236       31,238  
Basic earnings per common share   $ 0.17     $ (0.04 )   $ 0.22     $ 0.18  
Diluted earnings per common share   $ 0.17     $ (0.04 )   $ 0.21     $ 0.18  
Weighted average common shares outstanding     65,947       66,261       67,715       70,366  
Weighted average common shares and common share
equivalents outstanding
    66,315       66,261       71,733       71,942  
                                 
    Quarter(1)
   
Year Ended December 31, 1999   First   Second   Third   Fourth

 
 
 
 
Rental and other property revenues   $ 112,586     $ 116,237     $ 120,398     $ 184,696  
Income from property operations     42,237       43,190       43,928       57,361  
Revenue from service company business     7,899       6,936       9,310       14,232  
Company’s share of income from service company
business
  (2,945 )     2,608     (7,227 )     14,611  
Income before minority interest in Operating
Partnership
    15,175       23,993       19,889       24,655  
Net income     13,098       22,259       18,629       23,541  
Basic earnings per common share   $ 0.01     $ 0.15     $ 0.08     $ 0.15  
Diluted earnings per common share   $ 0.01     $ 0.14     $ 0.08     $ 0.15  
Weighted average common shares outstanding     56,468       62,323       64,370       65,805  
Weighted average common shares and common share
equivalents outstanding
    58,412       63,552       65,451       66,368  


(1)   Certain reclassifications have been made to 2000 and 1999 quarterly amounts to conform with the 2000 presentation.

NOTE 22 — Industry Segments

      AIMCO has two reportable segments: real estate and service business. The Company owns and operates multi-family apartment communities throughout the United States and Puerto Rico which generate rental and other property related income through the leasing of apartment units to a diverse base of tenants. The Company separately evaluates the performance of each of its apartment communities. However, because each of the apartment communities has similar economic characteristics, facilities, services and tenants, the apartment communities have been aggregated into a single apartment communities segment, or real estate segment. There are different components of the multi-family business for which management considers disclosure to be useful. All real estate revenues are from external customers and no revenues are generated from transactions with other segments. There were no tenants that contributed 10% or more of the Company’s total revenues during 2000, 1999, or 1998. The Company also manages apartment properties for third parties and affiliates through its service company business segment. As disclosed, a significant portion of the revenues of the service business are from affiliates of the Company.

      The performance measure used by management of the Company for each segment is its contribution to free cash flow (“Free Cash Flow” (“FCF”)). Free Cash Flow is defined by the Company as net operating income minus the capital spending required to maintain the related assets. Free Cash Flow measures profitability prior to the cost of capital. Other performance measures also used by management of the Company include funds from operations, adjusted funds from operations and earnings before structural depreciation. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

      The following tables present the contribution (separated between consolidated and unconsolidated activity) to the Company’s Free Cash Flow for the years ended December 31, 2000 and 1999 (information for the year ended December 31, 1998 is not included as it would be impracticable for the Company to obtain the necessary information, and the cost to develop it would be excessive), from these segments, and a reconciliation of Free Cash Flow to funds from operations, funds from operations less a reserve for capital replacements, and net income (in thousands, except equivalent units (ownership effected and period weighted) and monthly rents).:

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FREE CASH FLOW FROM BUSINESS COMPONENTS
For the Years Ended December 31, 2000 and 1999

(in thousands)

                                                                       
2000 1999


Consolidated Unconsolidated Total % Consolidated Unconsolidated Total %








Real Estate
Conventional
Average monthly rent greater than $900 per unit (equivalent units of 9,667 and 4,585 for 2000 and 1999)
$ 69,784 $ 13,867 $ 83,651 12.0 % $ 33,692 $ 8,513 $ 42,205 8.1 %
Average monthly rent $800 to $900 per unit (equivalent units of 6,851 and 4,423 for 2000 and 1999) 59,578 3,035 62,613 9.0 % 32,108 7,159 39,267 7.5 %
Average monthly rent $700 to $800 per unit (equivalent units of 10,608 and 9,310 for 2000 and 1999) 61,873 10,660 72,533 10.4 % 38,255 21,332 59,587 11.4 %
Average monthly rent $600 to $700 per unit (equivalent units of 30,422 and 16,494 for 2000 and 1999) 144,818 20,694 165,512 23.7 % 61,678 27,615 89,293 17.2 %
Average monthly rent $500 to $600 per unit (equivalent units of 40,529 and 29,492 for 2000 and 1999) 144,102 19,094 163,196 23.4 % 82,383 32,336 114,719 22.0 %
Average monthly rent less than $500 per unit (equivalent units of 21,455 and 29,387 for 2000 and 1999) 56,016 5,613 61,629 8.8 % 38,311 20,037 58,348 11.2 %








Subtotal conventional real estate contribution to Free Cash Flow 536,171 72,963 609,134 87.3 % 286,427 116,992 403,419 77.5 %
Affordable (equivalent units of 14,179 and 9,809 for 2000 and 1999) 25,116 30,133 55,249 7.9 % 5,131 31,964 37,095 7.1 %
College housing (average rent of $662 and $663 per month for 2000 and 1999) (equivalent units of 2,860 and 2,214 for 2000 and 1999) 12,777 997 13,774 2.0 % 3,633 4,553 8,186 1.6 %
Other Properties 1,788 6,047 7,835 1.1 % 1,930 4,956 6,886 1.3 %
Resident services 3,040 431 3,471 0.5 % 1,914 436 2,350 0.5 %
Minority interest (90,637 ) (90,637 ) (13.0 )% (22,212 ) (22,212 ) (4.3 )%








Total real estate contribution to Free Cash Flow 488,255 (1) 110,571 598,826 85.8 % 276,823 (1) 158,901 435,724 83.7 %
Service Business
Management contracts (property and asset management) Controlled properties 2,275 9,608 11,883 1.7 % 13,921 6,800 20,721 4.0 %
Third party with terms in excess of one year 7,839 7,839 1.1 % 10,281 10,281 2.0 %
Third party cancelable in 30 days 2,700 2,700 0.4 % 908 908 0.2 %








Subtotal management contracts contribution to Free Cash Flow 2,275 20,147 22,422 3.2 % 13,921 17,989 31,910 6.1 %
Buyers Access 500 500 0.1 % 3,314 3,314 0.6 %
Other service business 3,597 4,125 7,722 1.1 % 4,070 (2,703 ) 1,367 0.3 %








Service business contribution to Free Cash Flow before fees 5,872 24,772 30,644 4.4 % 17,991 18,600 36,591 7.0 %
Disposition Fees 2,630 808 3,438 0.5 % 3,070 801 3,871 0.7 %
Refinancing Fees 3,681 319 4,000 0.6 % 283 331 614 0.1 %








Total service business contribution to Free Cash Flow 12,183 (2) 25,899 38,082 5.5 % 21,344 (2) 19,732 41,076 7.9 %
Interest income
General partner loan interest
23,205 2,442 25,647 3.7 % 12,243 12,243 2.4 %
Notes receivable from officers 964 964 0.1 % 869 869 0.2 %
Other notes receivable 1,151 1,151 0.2 % 1,462 1,462 0.3 %
Money market and interest bearing accounts 14,512 14,512 2.1 % 8,286 1,568 9,854 1.9 %








Subtotal interest income 39,832 2,442 42,274 6.1 % 22,860 1,568 24,428 4.7 %
Accretion of loan discount 26,409 26,409 3.8 % 32,460 32,460 6.2 %








Total interest income contribution to Free Cash Flow 66,241 2,442 68,683 9.8 % 55,320 1,568 56,888 10.9 %
General and Administrative Expense (7,813 ) (7,813 ) (1 )% (13,112 ) (13,112 ) (2.5 )%








Free Cash Flow (FCF)(4) 558,866 138,912 697,778 100 % 340,375 180,201 520,576 100 %

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FREE CASH FLOW FROM BUSINESS COMPONENTS
For the Years Ended December 31, 2000 and 1999
(in thousands)

                                                                     
2000 1999


Consolidated Unconsolidated Total Consolidated Unconsolidated Total






Free Cash Flow (FCF)(4) 558,866 138,912 697,778 340,375 180,201 520,576
Interest expense:
Secured debt
Long-term, fixed rate (227,103 ) (49,357 ) (276,460 ) (107,368 ) (64,856 ) (172,224 )
Long-term, variable rate (952 ) (13,381 ) (14,333 ) (1,314 ) (2,008 ) (3,322 )
Short-term (10,384 ) (1,697 ) (12,081 ) (14,906 ) (2,846 ) (17,752 )
Lines of credit and other unsecured debt (31,796 ) (2,698 ) (34,494 ) (13,378 ) (384 ) (13,762 )
Interest expense on convertible debt (8,869 ) (8,869 ) (9,716 ) (9,716 )
Interest capitalized 9,278 1,165 10,443 6,588 93 6,681






Total interest expense before minority interest (269,826 ) (65,968 ) (335,794 ) (140,094 ) (70,001 ) (210,095 )
Minority interest share of interest expense 57,445 57,445 11,248 11,248






Total interest expense after minority interest (212,381 ) (65,968 ) (278,349 ) (128,846 ) (70,001 ) (198,847 )
Dividends on preferred OP Units (7,020 ) (7,020 ) (727 ) (727 )
Dividends on preferred securities owned by minority interest (2,718 ) (2,718 ) (2,711 ) (2,711 )
Dividends on preferred stock (63,183 ) (63,183 ) (53,453 ) (53,453 )






Total dividends on preferred securities (72,921 ) (72,921 ) (56,891 ) (56,891 )
Non-structural depreciation, net of capital replacements (20,839 ) (1,885 ) (22,724 ) (36 ) (7,481 ) (7,517 )
Amortization of intangible assets (6,698 ) (5,370 ) (12,068 ) (14,297 ) (22,434 ) (36,731 )
Gain (loss) on sales of real estate 26,335 26,335 (1,785 ) (1,785 )
Deferred tax provision (154 ) (154 ) (1,763 ) (1,763 )






Earnings Before Structural Depreciation (EBSD)(4) 272,362 65,535 337,897 138,520 78,522 217,042
Structural depreciation, net of minority interest in other entities (238,176 ) (60,207 ) (298,383 ) (102,219 ) (88,002 ) (190,221 )






Net income (loss) attributable to common OP Unit and stockholders 34,186 5,328 (3) 39,514 36,301 (9,480 )(3) 26,821
(Gain) loss on sales of real estate (26,335 ) (26,335 ) 1,785 1,785
Structural depreciation, net of minority interest in other entities 238,176 60,207 298,383 102,219 88,002 190,221
Non-structural depreciation, net of minority interest in other entities 53,113 9,981 63,094 19,470 16,762 36,232
Amortization of intangible assets 6,698 5,370 12,068 14,297 22,434 36,731
Deferred tax provision 154 154 1,763 1,763






Funds from Operations (FFO)(4) 305,838 81,040 386,878 174,072 119,481 293,553
Capital replacement reserve (32,268 ) (8,099 ) (40,367 ) (19,434 ) (9,281 ) (28,715 )






Adjusted Funds From Operations (AFFO)(4) $ 273,570 $ 72,941 $ 346,511 $ 154,638 $ 110,200 $ 264,838






                                                   
Earnings Earnings
Earnings Shares Per Share Earnings Shares Per Share






EBSD
Basic $ 337,897 75,183 $ 217,042 69,118
Diluted $ 390,848 91,506 $ 244,848 78,673
Net Income (Loss)
   Basic
$ 39,514 75,183 $ 0.53 $ 26,821 69,118 $ 0.39
Diluted $ 39,514 76,198 $ 0.52 $ 26,821 69,704 $ 0.38
FFO
Basic $ 386,878 75,183 $ 293,553 69,118
Diluted $ 439,830 91,506 $ 321,359 78,673
AFFO
Basic $ 346,511 75,183 $ 264,838 69,118
Diluted $ 399,463 91,506 $ 292,644 78,673

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(1)   Reconciliation of total consolidated real estate contribution to Free Cash Flow to consolidated rental and other property revenues:
                   
2000 1999


Consolidated real estate contribution to Free Cash Flow $ 488,255 $ 276,823
Plus: Minority interest 90,637 22,212
Plus: Capital replacement reserves 32,268 19,434
Plus: Property operating expenses 426,177 213,798
Plus: Owned property management expenses 13,663 1,650


Rental and other property revenues $ 1,051,000 $ 533,917


(2)   Reconciliation of total service business contribution to Free Cash Flow to consolidated management fees and other income from affiliates:
                   
2000 1999


Consolidated service business contribution to Free Cash Flow $ 12,183 $ 21,344
Plus: Management and other expenses 27,199 14,897
Plus: General and administrative expenses allocation 10,310 2,136


Management fees and other income from affiliates $ 49,692 $ 38,377


(3)   Reconciliation of unconsolidated net income attributable to common OP Units and stockholders to equity in earnings (losses) of unconsolidated real estate partnerships and equity in earnings (losses) of unconsolidated subsidiaries:
                       
2000 1999


Equity in earnings (losses) of unconsolidated subsidiaries $ (2,290 ) $ (5,013 )
Equity in earnings (losses) of unconsolidated real estate
partnerships 7,618 (4,467 )


Unconsolidated net income attributable to common OP
Units and stockholders $ 5,328 $ (9,480 )


(4)   Free Cash Flow, Earnings Before Structural Depreciation, Funds From Operations, and Adjusted Funds From Operations are measurement standards used by the Company’s management. These should not be considered alternatives to net income or net cash flow from operating activities, as determined in accordance with GAAP, as an indication of the Company’s performance or as a measure of liquidity.

    “Free Cash Flow” is defined by the Company as net operating income minus the capital spending required to maintain the related assets. It measures profitability prior to the cost of capital.
 
    “Earnings Before Structural Depreciation” (“EBSD”) is defined by the Company as Net Income, determined in accordance with GAAP, plus “structural depreciation”, i.e., depreciation of buildings and land improvements whose useful lives exceed 20 years.
 
    “Funds From Operations” (“FFO”) is defined by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) as net income (loss), computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains and losses from debt restructuring and sales of property, plus real estate related depreciation and amortization (excluding amortization of financing costs), and after adjustments for unconsolidated partnerships and joint ventures. The Company calculates FFO (diluted) based on the NAREIT definition, as further adjusted for minority interest in the AIMCO Operating Partnership, amortization of intangibles, interest expense on mandatorily redeemable convertible preferred securities, the non-cash deferred portion of the income tax provision for unconsolidated subsidiaries and less the payment of dividends on perpetual and non-dilutive convertible preferred stock. There can be no assurance that the Company’s basis for computing FFO is comparable with

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      that of other real estate investment trusts.
 
    “Adjusted Funds From Operations” (“AFFO”) is defined by the Company as FFO less a charge for capital replacements equal to at least $300 per apartment unit.

Reconciliation of FCF, EBSD, FFO and AFFO to net income:

                                                                 
For the Year Ended December 31, 2000 For the Year Ended December 31, 1999


FCF EBSD FFO AFFO FCF EBSD FFO AFFO








Amount per Free Cash Flow schedule above $ 697,778 $ 337,897 $ 386,878 $ 346,511 $ 520,576 $ 217,042 $ 293,553 $ 264,838
Total interest expense after minority interest (278,349 ) (198,847 )
Dividends on preferred securities owned by minority interest (2,715 ) 2,711 2,711 2,711
Dividends on preferred OP Units 7,020 7,020 7,020 727 727 727
Dividends on preferred stock 63,183 63,183 63,183 53,453 53,453 53,453
Structural depreciation, net of minority interest (298,383 ) (298,383 ) (298,383 ) (298,383 ) (190,221 ) (190,221 ) (190,221 ) (190,221 )
Non-structural depreciation, net of minority interest (63,094 ) (63,094 ) (63,094 ) (36,232 ) (36,232 ) (36,232 )
Capital replacements reserve 40,367 40,367 28,715 28,715
Amortization of intangible assets (12,068 ) (12,068 ) (12,068 ) (36,731 ) (36,731 ) (36,731 )
Gain on sale 26,335 26,335 26,335 (1,785 ) (1,785 ) (1,785 )
Deferred tax provision (154 ) (154 ) (154 ) (1,763 ) (1,763 ) (1,763 )
Minority interest in Operating Partnership (10,539 ) (10,539 ) (10,539 ) (10,539 ) (6,185 ) (6,185 ) (6,185 ) (6,185 )








Net Income $ 99,178 $ 99,178 $ 99,178 $ 99,178 $ 77,527 $ 77,527 $ 77,527 $ 77,527








ASSETS:
                   
December 31, 2000 December 31, 1999


Total assets for reportable segments (1) $ 6,522,114 $ 4,464,305
Corporate and other assets 1,177,760 1,220,646


Total consolidated assets $ 7,699,874 $ 5,684,951



(1)   Assets associated with the service business are immaterial, and therefore included in total assets for reportable segments, and not separately disclosed.

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NOTE 23 — Portfolios Held for Sale

      The Company is currently marketing for sale certain real estate properties in order to sell properties in the portfolio that are inconsistent with the Company’s long-term investment strategies (as determined by management from time to time). Approximately 10,349 units with an approximate carrying value of $325.3 million are included with real estate in the consolidated financial statements and approximately 17,755 units with an approximate carrying value of $80.1 million are included with investments in unconsolidated real estate partnerships in the consolidated financial statements. The Company does not expect to incur any material losses with respect to the sales of the properties.

NOTE 24 — Subsequent Events

   Dividend Declared

      On January 24, 2001, the Board of Directors declared a quarterly cash dividend of $0.78 per common share for the quarter ended December 31, 2000, paid on February 9, 2001, to stockholders of record on February 2, 2001. The increased dividend is equivalent to an annualized dividend rate of $3.12 per common share, an 11% increase from the previous annual dividend rate of $2.80.

   OTEF Merger

      On November 29, 2000, AIMCO and Oxford Tax Exempt Fund II Limited Partnership (“OTEF”) entered into a merger agreement pursuant to which OTEF would merge with a subsidiary of the AIMCO Operating Partnership. The merger closed on March 26, 2001. The AIMCO Operating Partnership owns all of the outstanding OTEF beneficial assignments of limited partnership interests (“BACs”) in OTEF. In connection with the Oxford acquisition, AIMCO acquired interests in OTEF’s managing general partner and OTEF’s associate general partner. After the merger, the Company’s partnership interests in OTEF reflects a 1% general partner interest held by OTEF’s managing general partner and a 99% limited partner interest held by the AIMCO Operating Partnership. OTEF was a publicly traded master limited partnership that invested primarily in tax-exempt bonds issued to finance high quality apartment and senior living/health care communities, the majority of which were owned by affiliates of OTEF, including Oxford entities.

      In the merger, each BAC was converted into the right to receive 0.299 shares of AIMCO’s Class A Common Stock and 0.547 shares of AIMCO’s Class P Convertible Cumulative Preferred Stock (the “Class P Preferred Stock”). In addition, the BAC holders received a special distribution of $50 million, or $6.21 per BAC. The holders of the Class P Preferred Stock are entitled to receive, when and as declared by the Board of Directors, cash dividends in an amount per share equal to the greater of (i) a quarterly dividend payment of $0.5625 or (ii) the cash dividends declared on the number of shares of Class A Common Stock into which a share of Class P Preferred Stock is convertible. Each share of Class P Preferred Stock is convertible at the option of the holder into 0.4464 shares of Class A Common Stock. The initial conversion ratio was in excess of the fair market value of the common stock on the commitment date. The Class P Preferred Stock is senior to the Class A Common Stock as to dividends and liquidation. Upon liquidation, dissolution, or winding up of AIMCO, before payment or distribution by AIMCO shall be made to any holders of the Class A Common Stock, the holders of the Class P Preferred Stock are entitled to receive a liquidation preference of $25 per share, plus accumulated, accrued and unpaid dividends. The Company filed a Registration Statement on Form S-4 with the Securities and Exchange Commission that was declared effective on February 23, 2001.

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   Class Q Preferred Stock

      On March 19, 2001, AIMCO issued 2,200,000 shares of newly created Class Q Cumulative Preferred Stock, par value $0.01 per share (the “Class Q Preferred Stock”) in a public offering. On March 29, 2001, the underwriters' exercised their option to purchase an additional 330,000 shares. The net proceeds of approximately $61 million were used to repay short term indebtedness. Dividends are cumulative from the date of original issue and are payable quarterly each year, when and as declared, beginning in June 2001. Cumulative dividends on the Class Q Preferred Stock will be in an amount per share equal to $2.525 per year, equivalent to 10.1% of the $25 liquidation preference. The Class Q Preferred Stock is senior to the Class A Common Stock as to dividends and liquidation. Upon any liquidation, dissolution or winding up of AIMCO, before payment or distributions by AIMCO shall be made to any holders of Class A Common Stock, the holders of the Class Q Preferred Stock shall be entitled to receive a liquidation preference of $25 per share, plus accumulated, accrued and unpaid dividends. Each share of Class Q Preferred Stock is redeemable beginning March 19, 2006, at the option of the Company, at a price equal to a liquidation preference of $25 per share, plus all accumulated accrued and unpaid dividends, if any to the date fixed for redemption.

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APARTMENT INVESTMENT AND MANAGEMENT COMPANY
REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2000
(In Thousands Except Unit Data)

                                                         
                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
100 Forest Place     Oct-97       OakPark, IL       1986       234       2,498       14,154       5,157  
Alpine Village     Oct-98       Birmingham, AL       1972       160       826       3,182       281  
Anchorage     Nov-96       League City, TX       1985       264       523       9,097       2,449  
Apple Creek     Dec-97       Temple, TX       1984       176       623       4,177       180  
Arbor Station     Apr-98       Montgomery, AL       1987       264       1,627       9,218       873  
Arbor Station II     Apr-99       Montgomery, AL       1988       24       198       1,133       9  
Arbors, The     Oct-97       Tempe, AZ       1971       200       1,092       6,189       645  
Ashford Plantation     Dec-95       Atlanta, GA       1975       211       2,770       9,956       2,012  
Aspen Hills     May-98       Austin, TX       1986       344       2,645       14,989       1,189  
Aspen Point     Jul-99       Lakewood, CO       1970       120       240       7,391       516  
Atriums Of Plantation     Aug-98       Plantation, FL       1980       210       1,807       9,756       894  
Baldwin Oaks     May-97       Parsippany, NJ       1980       251       1,909       5,975       1,380  
Barcelona     Oct-98       Houston, TX       1963       126       911       4,819       742  
Bay Club     Apr-97       Aventura, FL       1990       702       10,672       60,830       4,721  
Bayhead Village     Dec-00       Indianapolis, IN       1978       202       544       4,896        
Baymeadows     Oct-98       Jacksonville, FL       1972       904       5,690       20,822       4,005  
Baywood     Jan-93       Gretna, LA       1974       226       1,464       3,887     (195 )
Beacon Hill     Oct-97       Chamblee, GA       1978       120       928       5,261       529  
Beau Jardin     Sep-99       West Lafayette, IN       1968       252       831       14,368       2,915  
Beech Lake     May-99       Durham, NC       1986       345       2,284       13,011       432  
Beech’s Farm     Dec-00       Columbia, MD       1983       135       607       5,465        
Bent Oaks     May-98       Austin, TX       1979       146       1,117       6,328       273  
Bercado Shores     Aug-00       Mishawaka, IN       1974       234       329       1,417       3,066  
Blossomtree     Oct-97       Scottsdale, AZ       1970       125       535       3,029       502  
Boardwalk     Dec-95       Tamarac, FL       1986       291       3,350       8,196       1,568  
Boulder Creek (The Bluffs)     Sep-83       Boulder, CO       1971       232       696       7,779       13,561  
Bradford Place     Dec-99       Suitland, MD       1968       214       1,176       6,666       1,017  
Braesview     May-98       San Antonio, TX       1982       396       3,135       17,764       1,050  
Brandywine     Apr-83       St. Petersburg, FL       1971       477       1,423       11,336       2,528  
Brant Rock     Oct-97       Houston, TX       1984       84       337       1,908       374  
Breckenridge Square     Dec-94       Louisville, KY       1971       294       2,058       8,450       403  
Brentwood     Nov-96       Lake Jackson, TX       1980       104       200       3,092       567  
Briar Bay Racquet Club     Dec-94       Miami, FL       1974       194       1,478       6,526       3,649  
Briarcliffe     Dec-00       Lansing, MI       1974       308       900       8,104        
Briarwest     Oct-98       Houston, TX       1970       380       2,600       14,448       3,016  
Briarwood     Oct-98       Cedar Rapids, IA       1975       73       524       2,579       63  
Briarwood     Oct-98       Houston, TX       1970       351       2,323       10,826       2,631  
Bridgewater     Nov-96       Tomball, TX       1978       206       333       4,033       3,067  
Brighton Crest     Dec-91       Marietta, GA       1987       320       2,686       7,998       447  
Brittany Point     Oct-98       Hunstville, AL       1978       431       1,627       9,220       1,043  
Broadmoor Apartments     May-98       Austin, TX       1985       200       1,370       7,765       1,063  
Broadmoor Ridge     Dec-97       Colorado Springs, CO       1974       200       831       13,286       2,653  
Brook Run     May-98       Arlington Heights, IL       1985       182       1,109       10,370       2,125  
Brookdale Lakes     May-98       Naperville, IL       1990       200       2,709       15,350       529  
Brookhollow     Dec-97       Kerrville, TX       1973       48       116       1,272       226  
Brookside Village     Apr-96       Tustin, CA       1970       628       2,498       14,180       22,245  
Brookview     Dec-97       Montgomery, AL       1975       64       95       1,474     (226 )
Brookwood Apts     Sep-99       Indianapolis, IN       1967       404       2,433       9,712       2,296  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

                                                 
    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
100 Forest Place     1,512       20,297       21,809       7,715       14,094       14,866  
Alpine Village     661       3,628       4,290       327       3,962       2,100  
Anchorage     371       11,698       12,069       3,660       8,409       4,584  
Apple Creek     648       4,332       4,980       342       4,638       1,866  
Arbor Station     1,627       10,091       11,718       968       10,750       7,200  
Arbor Station II     198       1,142       1,339       131       1,209       772  
Arbors, The     1,092       6,834       7,926       982       6,945       3,608  
Ashford Plantation     2,770       11,968       14,738       2,521       12,216       6,894  
Aspen Hills     2,645       16,177       18,823       2,491       16,331       9,325  
Aspen Point     240       7,907       8,147       2,682       5,465        
Atriums Of Plantation     1,807       10,650       12,457       1,100       11,357       7,477  
Baldwin Oaks     639       8,625       9,264       1,008       8,256       7,700  
Barcelona     1,323       5,150       6,473       1,157       5,316       2,346  
Bay Club     10,685       65,538       76,223       8,935       67,288       49,000  
Bayhead Village     816       4,624       5,440             5,440       3,911  
Baymeadows     3,673       26,844       30,517       1,759       28,759       13,150  
Baywood     866       4,290       5,156       1,893       3,263       4,329  
Beacon Hill     929       5,789       6,718       808       5,910       3,374  
Beau Jardin     1,256       16,858       18,114       5,623       12,491       9,843  
Beech Lake     2,284       13,442       15,726       1,445       14,281       11,671  
Beech’s Farm     911       5,161       6,072             6,072       4,011  
Bent Oaks     1,117       6,601       7,718       1,037       6,681       4,190  
Bercado Shores           4,812       4,812     (0 )     4,812       3,822  
Blossomtree     535       3,532       4,066       500       3,566       1,978  
Boardwalk     3,350       9,764       13,114       2,235       10,879       8,686  
Boulder Creek (The Bluffs)     755       21,282       22,036       5,327       16,710       16,500  
Bradford Place     1,143       7,716       8,859       248       8,611       5,159  
Braesview     3,135       18,814       21,949       2,934       19,015       13,345  
Brandywine     1,437       13,850       15,287       6,844       8,443       10,382  
Brant Rock     337       2,283       2,619       339       2,281       1,144  
Breckenridge Square     2,409       8,502       10,912       718       10,193       6,000  
Brentwood           3,859       3,859       567       3,293       1,667  
Briar Bay Racquet Club     2,324       9,329       11,653       3,752       7,902       3,500  
Briarcliffe     1,351       7,654       9,005             9,005       6,701  
Briarwest     4,098       15,966       20,064       3,210       16,854       6,758  
Briarwood     505       2,661       3,166       188       2,978       1,536  
Briarwood     3,333       12,446       15,779       2,980       12,799       4,854  
Bridgewater     206       7,227       7,433       1,583       5,850       3,944  
Brighton Crest     2,499       8,632       11,131       737       10,394       6,052  
Brittany Point           11,890       11,890       0       11,890       8,896  
Broadmoor Apartments     1,370       8,828       10,198       1,313       8,885       6,000  
Broadmoor Ridge     831       15,939       16,769       2,481       14,288       8,900  
Brook Run     1,683       11,922       13,605       3,594       10,011       11,800  
Brookdale Lakes     2,709       15,878       18,587       2,413       16,174       12,945  
Brookhollow     116       1,498       1,614       587       1,027       384  
Brookside Village     7,263       31,661       38,923       5,870       33,053       25,804  
Brookview     95       1,248       1,343       661       682       535  
Brookwood Apts     2,739       11,702       14,441             14,441       10,016  

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-36


Table of Contents

                                                         
                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
Buena Vista     Dec-97       Alva, OK       1974       51       49       1,196       270  
Burgundy Court     Dec-91       Cincinnati, OH       1969       234       1,538       5,194       1,509  
Burgundy Park     Oct-99       Forestville, MD       1967       108       589       3,339       399  
Burkshire Commons     May-97       Burke, VA       1986       360       3,503       22,218       1,537  
Calhoun Beach     Dec-98       Minneapolis, MN       1928/1998       351       11,567       65,546       4,520  
Cambridge Heights     May-97       Natchez, MS       1979       94       249       1,413       1,018  
Cambridge Manor     Dec-97       Fairfield, CT       1989       160       1,459       8,270        
Cameron Hill I     Dec-00       Chattanooga, TN       1976       256       467       4,199        
Cameron Hill II     Dec-00       Chattanooga, TN       1978       108       239       2,154        
Canterbury Green     Dec-99       Fort Wayne, IN       1979       2,007       13,929       73,975       6,008  
Cape Cod     May-98       San Antonio, TX       1985       244       1,582       8,946       334  
Captiva Club (Bay West)     Dec-96       Tampa, FL       1975       357       1,500       7,085       9,205  
Carriage Hill     Jan-93       East Lansing, MI       1972       143       1,213       4,883       2,167  
Carriage House     Oct-98       Gastonia, NC       1970       102       544       2,266       73  
Casa Anita     Mar-98       Phoenix, AZ       1986       224       1,125       6,404       468  
Cedar Brooke Apts     Feb-95       Independence, MO       1981       158       1,030       2,151       1,616  
Cedar Rim     Dec-94       New Castle, WA       1980       104       992       3,635       1,256  
Cedarwood     Jan-93       Gretna, LA       1978       226       1,307       2,378       116  
Center Square     May-97       Doylestown, PA       1975       352       670       4,749       772  
Chambers Ridge     Oct-98       Harrisburg, PA       1973       324       1,596       7,801       963  
Chambrel At Club Hill     Dec-00       Garland, TX       1987       260       2,328       13,191        
Chambrel At Island Lake     Dec-00       Longwood, FL       1986       269       3,456       19,584        
Chambrel At Montrose     Dec-00       Akron, OH       1987       168       1,773       10,046        
Chambrel At Pinecastle     Dec-00       Ocala, FL       1986       161       1,484       8,411        
Chambrel At Roswell     Dec-00       Roswell, GA       1986       280       5,022       28,456        
Chambrel At Williamsburg     Dec-00       Williamsburg, VA       1986       256       3,741       21,200        
Chapel Hill     Dec-91       Indianapolis, IN       1965       148       1,075       4,281       1,752  
Chapel NDP     May-97       Baltimore, MD       1974       175       318       3,237       518  
Chapelwood     Dec-91       Indianapolis, IN       1969       140       959       3,312       1,875  
Chatham Harbor     Oct-99       Altamonte Springs, FL       1985       324       2,288       12,999       547  
Chelsea Place     Dec-91       Murfreesboro, TN       1966       594       3,102       11,343        
Chelsea Ridge     Dec-00       Wappingers Falls, NY       1966       835       6,159       34,911       815  
Cherry Creek Garden     Jan-96       Englewood, CO       1975       296       3,291       14,784       709  
Chesapeake     Dec-96       Houston, TX       1983       320       775       7,317       868  
Chesapeake Landing (OH)     Dec-97       Dayton, OH       1986       256       2,890       26,011       52  
Chestnut Hill     May-97       Middletown, CT       1985       314       2,936       17,452       787  
Chestnut Hill Village     Oct-97       Philadelphia, PA       1963       834       10,511       31,284       9,291  
Chimney Hill     Dec-94       Marietta, GA       1972       326       2,195       9,311       5,468  
Churchill Park Apartments     May-98       San Antonio, TX       1979       392       1,788       10,131       2,223  
Churchill Park     Dec-94       Louisville, KY       1970       384       2,674       9,705       422  
Citadel     Dec-94       El Paso, TX       1973       261       1,234       5,308       3,578  
Citadel Village     Dec-94       Colorado Springs, CO       1974       122       1,131       3,962       2,038  
Citrus Grove     Jun-98       Redlands, CA       1985       198       1,118       6,333       389  
Citrus Sunset     Mar-98       Vista, CA       1985       97       663       3,758       301  
Civic Towers Apts     Apr-97       Miami, FL       1982       196       807       10,204        
College Park (PA)     Jan-87       Carlisle, PA       1972       209       523       5,819     (661 )
Colonade Gardens/Ferntree     Oct-97       Phoenix, AZ       1973       196       765       4,337       499  
Colonial Crest     Dec-99       Bloomington, IN       1965       208       938       4,488       1,348  
Colony     Sep-98       Bradenton, FL       1986       166       1,121       6,350       469  
Colony     Dec-97       Montgomery, AL       1974       176                   3,812  
Colony At Kenilworth     Oct-98       Towson, MD       1966       383       2,812       11,065       1,323  
Colony House Apts     Oct-98       Murfreesboro, TN       1973       194       984       3,657       354  
Cooper’s Pond     Jan-96       Tampa, FL       1978       463       2,054       8,402       532  
Copper Chase     Dec-96       Katy, TX       1982       316       1,354       7,672       1,549  
Copperfield I & II     Nov-96       Houston, TX       1983       196       702       7,003       1,155  
Coral Cove     May-98       Tampa, FL       1985       200       727       4,119       3,620  
Coral Gardens     Apr-93       Las Vegas, NV       1983       670       3,190       12,745       3,037  
Country Club Villas     Jul-94       Amarillo, TX       1984       282       1,049       5,951       1,152  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

                                                 
    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
Buena Vista     49       1,466       1,515       557       957       317  
Burgundy Court     1,247       6,995       8,241       1,712       6,529       6,578  
Burgundy Park     630       3,696       4,326       34       4,293       3,382  
Burkshire Commons     2,954       24,304       27,258       1,479       25,779       21,945  
Calhoun Beach     11,263       70,370       81,633       4,709       76,924       51,419  
Cambridge Heights     103       2,577       2,680       1,250       1,429       1,480  
Cambridge Manor     1,459       8,270       9,729             9,729       9,867  
Cameron Hill I     700       3,966       4,666             4,666       3,142  
Cameron Hill II     359       2,035       2,394             2,394       2,144  
Canterbury Green     14,785       79,127       93,912       2,787       91,124       51,682  
Cape Cod     1,582       9,280       10,862       1,388       9,474       6,470  
Captiva Club (Bay West)     1,600       16,190       17,790       2,117       15,673       8,753  
Carriage Hill     753       7,511       8,263       1,942       6,321       5,235  
Carriage House     332       2,551       2,884       205       2,679       1,819  
Casa Anita     1,125       6,873       7,997       800       7,198       3,995  
Cedar Brooke Apts     1,097       3,700       4,797       1,758       3,039       2,325  
Cedar Rim     889       4,994       5,883       1,388       4,495       2,000  
Cedarwood     903       2,898       3,801       345       3,456       1,930  
Center Square     693       5,498       6,192       732       5,460       5,432  
Chambers Ridge     1,291       9,068       10,360       801       9,559       5,307  
Chambrel At Club Hill     2,328       13,191       15,519       149       15,370       14,625  
Chambrel At Island Lake     3,456       19,584       23,040       317       22,723       19,647  
Chambrel At Montrose     1,773       10,046       11,819       112       11,707       11,660  
Chambrel At Pinecastle     1,484       8,411       9,896       96       9,799       8,654  
Chambrel At Roswell     5,022       28,456       33,478       539       32,939       29,780  
Chambrel At Williamsburg     3,741       21,200       24,941       240       24,701       22,782  
Chapel Hill     977       6,131       7,109       1,962       5,147       3,320  
Chapel NDP     347       3,725       4,072       340       3,733       3,174  
Chapelwood     744       5,401       6,146       1,881       4,264       3,441  
Chatham Harbor     2,288       13,546       15,834       539       15,295       9,629  
Chelsea Place     2,167       12,278       14,445       145       14,301       12,079  
Chelsea Ridge     733       41,151       41,884             41,884       36,250  
Cherry Creek Garden     2,959       15,825       18,784       1,078       17,707       12,175  
Chesapeake     775       8,185       8,960       1,391       7,568       7,006  
Chesapeake Landing (OH)     3,666       25,287       28,953       308       28,645       23,201  
Chestnut Hill     5,825       15,350       21,175       1,951       19,224       16,070  
Chestnut Hill Village     7,879       43,207       51,086       9,304       41,782       25,588  
Chimney Hill     2,698       14,275       16,974       5,518       11,456       5,400  
Churchill Park Apartments     1,788       12,354       14,141       1,883       12,258       4,495  
Churchill Park     2,298       10,503       12,801       893       11,908       6,450  
Citadel     1,589       8,531       10,120       3,690       6,429       4,638  
Citadel Village     1,185       5,945       7,130       2,116       5,014       2,450  
Citrus Grove     1,118       6,722       7,840       735       7,105       4,930  
Citrus Sunset     663       4,059       4,722       441       4,281       3,525  
Civic Towers Apts     807       10,204       11,010       5,134       5,876       7,585  
College Park (PA)     523       5,158       5,681       2,576       3,104       2,038  
Colonade Gardens/Ferntree     766       4,836       5,601       671       4,930       2,672  
Colonial Crest     959       5,815       6,774       648       6,126       1,653  
Colony     1,121       6,820       7,940       693       7,248       3,219  
Colony     218       3,594       3,812       1,832       1,980       1,465  
Colony At Kenilworth     2,303       12,897       15,200       1,240       13,960       7,985  
Colony House Apts     488       4,507       4,995       334       4,660       3,540  
Cooper’s Pond     1,825       9,162       10,988       749       10,239       8,177  
Copper Chase     1,757       8,818       10,575       1,473       9,102       5,016  
Copperfield I & II     508       8,352       8,860       1,819       7,041       4,774  
Coral Cove     1,381       7,085       8,466       1,583       6,882       3,888  
Coral Gardens     3,190       15,782       18,972       5,471       13,502       12,308  
Country Club Villas     1,049       7,103       8,152       1,982       6,169       5,387  

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-37


Table of Contents

                                                         
                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
Country Club West     May-98       Greeley, CO       1986       288       2,848       16,138       788  
Courtney Park     May-98       Fort Collins, CO       1986       248       2,726       15,450       524  
Coventry Square     Nov-96       Houston, TX       1983       270       975       6,355       1,969  
Creekside     Jan-96       Denver, CO       1974       328       2,607       8,319       453  
Crossings At Bell     Jan-98       Amarillo, TX       1976       160       483       2,737       1,322  
Crossings Of Bellevue     May-98       Nashville, TN       1985       300       2,588       14,667       1,271  
Crossroads     May-98       Phoenix, AZ       1982       316       2,180       12,353       648  
Crows Nest     Nov-96       League City, TX       1984       176       795       5,400       1,257  
Cypress Landing     Dec-96       Savannah, GA       1984       200       915       5,188       722  
Cypress Ridge     May-98       Houston, TX       1979       268       870       4,931       1,301  
Debaliviere I     May-97       St. Louis, MO       1979       146       605       2,392       436  
Deer Creek     Jan-93       Plainsboro, NJ       1975       288       2,948       8,480       4,373  
Deercross (IN)     Dec-00       Indianapolis, IN       1979       372       1,166       10,494        
Doral Springs     Dec-94       Miami, FL       1972       368       2,525       9,284       623  
Douglaston Villas and Townhomes (Formerly Cameron Villas)     Aug-99       Altamonte Springs, FL       1979       234       1,721       9,835       902  
Dunes     Dec-97       San Antonio, TX       1964       120       278       707       86  
Dunwoody Park     Jul-94       Dunwoody, GA       1980       318       1,838       10,538       1,688  
Eagle Rock Village     Dec-97       Wichita, KS       1985       352       2,467       12,394       2,702  
Eagle’s Nest     May-98       San Antonio, TX       1973       226       1,053       5,966       392  
Eaglewood/Woods     Jun-98       Memphis, TN       1983       584       750       16,544       4,901  
Easton Village     Nov-96       Houston, TX       1983       146       440       6,584       3,750  
Eden Crossing     Nov-94       Pensacola, FL       1985       200       1,111       6,332       1,089  
Elm Creek     May-97       Elmhurst, IL       1986       372       5,339       30,253       13,610  
Emerald Ridge     Feb-98       Tyler, TX       1984       484       1,469       8,324       1,160  
Enfield     Oct-97       Dallas, TX       1986       286       1,400       2,970       2,725  
Essex Park     Oct-98       Columbia, SC       1971       323       1,670       5,588       213  
Evanston Place     May-97       Evanston, IL       1988       190       1,503       19,960       6,974  
Evergreen Club     Oct-97       Jacksonville, FL       1987       240       1,395       4,749       1,130  
Fairway     Dec-92       Plano, TX       1978       256       1,714       5,662       163  
Fairway View I     Oct-98       Baton Rouge, LA       1972       242       1,562       6,168       274  
Fairway View II     Oct-98       Baton Rouge, LA       1981       204       1,515       5,808       236  
Fairways     Jul-94       Chandler, AZ       1986       352       1,830       10,403       7,782  
Farmingdale     Dec-00       Darien, IL       1975       240       1,502       13,520        
Ferntree     Oct-98       Phoenix, AZ       1970       219       1,243       12,818       526  
Festival Field     Dec-97       Newport, RI       1973       204       430       6,999     (172 )
Fieldcrest     Oct-98       Jacksonville, FL       1982       240       1,331       7,544       711  
Fisherman’s Landing     Sep-98       Temple Terrace, FL       1986       256       1,643       9,311       862  
Fisherman’s Landing     Dec-97       Bradenton, FL       1984       200       1,275       7,225       860  
Fisherman’s Wharf     Nov-96       Clute, TX       1981       360       830       9,969       2,014  
Foothill Place     Dec-94       Salt Lake City, UT       1973       450       3,693       14,291       5,786  
Foothills     Oct-97       Tucson, AZ       1982       270       1,203       6,817       473  
Forest     Dec-97       Houston, TX       1978       192       384       2,347       202  
Forest River     Oct-98       Gadsden, AL       1979       248       862       3,755       341  
Forrester Gardens     Dec-97       Tuscaloosa, AL       1972       152       200       4,041       545  
Fox Run     Oct-96       Plainsboro, NJ       1973       776       8,442       33,326       2,224  
Foxchase     May-97       Alexandria, VA       1947       2,028       39,390       93,181       17,374  
Foxfire     Oct-98       Doraville, GA       1971       266       1,663       8,063       412  
Foxtree     Oct-97       Tempe, AZ       1976       487       2,505       14,194       1,928  
Frankford Place     Jul-94       Carrollton, TX       1982       274       1,125       6,382       990  
Franklin Oaks     May-98       Franklin, TN       1987       468       4,031       22,842       1,542  
Freedom Place Club     Oct-97       Jacksonville, FL       1988       352       2,289       12,970       1,218  
Gateway Gardens     Oct-98       Cedar Rapids, IA       1969       328       1,994       7,795       165  
Georgetown     Oct-93       South Bend, IN       1973       200       1,480       6,502       3,310  
Georgetown     Oct-98       Columbus, OH       1962       150       1,087       4,289       261  
Glen Hollow     Dec-99       Charlotte, NC       1972       336       2,133       10,174       802  
Glenbrook     Oct-97       St. Petersburg, FL       1985       196       1,290       4,674       1,043  
Governor’s Park     Aug-86       Little Rock, AR       1985       154       1,075       2,869       1,196  
Governor’s Park     Oct-93       Ft. Collins, CO       1982       188       1,752       6,336       254  
Grand Flamingo     Sep-97       Miami Beach, FL       1960       1,277       8,736       49,774       110,303  
Grande Pointe     Dec-99       Columbia, MD       1974       324       2,715       15,382       2,140  
Greens Of Naperville     May-97       Naperville, IL       1986       400       3,756       21,284       11,839  
Greenspoint     Jan-96       Phoenix, AZ       1985       336       2,851       10,130       352  
Greentree     Oct-93       Mobile, AL       1973       178       846       2,514       1,991  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

                                                 
    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
Country Club West     2,848       16,926       19,774       2,738       17,036       11,050  
Courtney Park     2,726       15,974       18,701       2,444       16,257       9,799  
Coventry Square     681       8,618       9,299       3,263       6,036       4,962  
Creekside     2,108       9,272       11,380       892       10,488       6,327  
Crossings At Bell     483       4,059       4,542       623       3,919       2,328  
Crossings Of Bellevue     2,588       15,938       18,527       2,577       15,950       8,100  
Crossroads     2,180       13,001       15,181       2,060       13,121       6,683  
Crows Nest     762       6,689       7,452       2,132       5,320       2,706  
Cypress Landing     915       5,910       6,826       1,358       5,468       5,519  
Cypress Ridge     870       6,232       7,102       978       6,124       4,250  
Debaliviere I     286       3,146       3,433       215       3,218       2,465  
Deer Creek     1,999       13,802       15,801       4,616       11,185       6,025  
Deercross (IN)     1,749       9,911       11,660             11,660       8,866  
Doral Springs     3,905       8,526       12,431       1,002       11,429       6,000  
Douglaston Villas and Townhomes (Formerly Cameron Villas)     1,721       10,737       12,458       1,018       11,440       7,188  
Dunes     128       943       1,071       142       929       733  
Dunwoody Park     1,838       12,226       14,064       3,168       10,896       11,319  
Eagle Rock Village     1,829       15,733       17,563       2,693       14,870       9,602  
Eagle’s Nest     1,053       6,358       7,410       1,090       6,320       4,565  
Eaglewood/Woods     830       21,365       22,195       8,227       13,967       9,856  
Easton Village     448       10,326       10,774       2,337       8,437       3,995  
Eden Crossing     1,111       7,421       8,532       1,859       6,673       5,406  
Elm Creek     7,128       42,075       49,202       12,851       36,351       22,876  
Emerald Ridge     1,469       9,484       10,953       1,236       9,718       5,994  
Enfield     919       6,176       7,095       1,329       5,765       4,593  
Essex Park     942       6,530       7,471       509       6,962       7,025  
Evanston Place     1,507       26,930       28,438       6,374       22,063       18,008  
Evergreen Club     1,434       5,841       7,275       1,206       6,069       5,285  
Fairway     2,671       4,869       7,540       477       7,063       6,575  
Fairway View I     1,394       6,610       8,004       530       7,474       4,000  
Fairway View II     1,462       6,097       7,558       501       7,057       4,200  
Fairways     1,830       18,185       20,015       3,965       16,050       10,023  
Farmingdale     2,253       12,769       15,022             15,022       8,837  
Ferntree     1,242       13,345       14,587       956       13,631       5,075  
Festival Field     430       6,828       7,257       3,241       4,017       3,307  
Fieldcrest     1,331       8,255       9,586       801       8,786       5,661  
Fisherman’s Landing     1,643       10,173       11,816       1,041       10,775       5,409  
Fisherman’s Landing     1,276       8,084       9,360       1,083       8,278       4,569  
Fisherman’s Wharf     744       12,069       12,813       5,052       7,761       3,309  
Foothill Place     5,779       17,991       23,770       6,041       17,730       10,100  
Foothills     1,203       7,290       8,493       1,004       7,489       3,626  
Forest     417       2,516       2,933       227       2,706       1,190  
Forest River     638       4,320       4,958       281       4,677       3,212  
Forrester Gardens     200       4,586       4,786       2,031       2,754       1,549  
Fox Run     9,068       34,924       43,992       2,596       41,396       29,575  
Foxchase     20,216       129,730       149,945       16,365       133,581       84,068  
Foxfire     1,682       8,456       10,138       618       9,520       7,030  
Foxtree     2,505       16,122       18,627       2,175       16,452       8,364  
Frankford Place     1,125       7,372       8,497       2,092       6,405       5,874  
Franklin Oaks     4,031       24,384       28,415       3,883       24,532       16,790  
Freedom Place Club     2,289       14,188       16,477       1,920       14,557       6,557  
Gateway Gardens     1,387       8,566       9,953       686       9,267       6,191  
Georgetown     1,296       9,995       11,291       3,308       7,984       5,260  
Georgetown     882       4,754       5,637       357       5,280       3,505  
Glen Hollow     2,204       10,905       13,109       612       12,496       7,442  
Glenbrook     1,383       5,625       7,007       1,151       5,857       4,983  
Governor’s Park     486       4,654       5,140       1,386       3,754       3,780  
Governor’s Park     1,307       7,035       8,342       527       7,815       4,468  
Grand Flamingo     13,182       155,631       168,813       6,121       162,692       51,572  
Grande Pointe     2,715       17,522       20,237       640       19,597       11,386  
Greens Of Naperville     3,163       33,715       36,879       9,200       27,678       11,601  
Greenspoint     2,896       10,438       13,334       877       12,456       8,541  
Greentree     587       4,763       5,351       2,022       3,329       3,431  

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-38


Table of Contents

                                                         
                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
Greentree     Dec-96       Carrollton, TX       1983       365       1,955       11,098       1,082  
Hampton Hill     Nov-96       Houston, TX       1984       332       1,574       8,408       5,076  
Harbor Cove     May-98       San Antonio, TX       1980       256       1,446       8,193       551  
Harbor Town @ Jacaranda     Apr-99       Plantation, FL       1988       280       1,920       17,277       52  
Hastings Place     Nov-96       Houston, TX       1984       176       734       3,382       1,986  
Haverhill Commons     May-98       W. Palm Beach, FL       1986       222       1,656       9,386       1,478  
Heather Ridge     May-98       Phoenix, AZ       1983       252       1,609       9,119       356  
Heather Ridge     Dec-96       Arlington, TX       1983       180       614       3,478       438  
Heritage Park Escondido     Dec-91       Escondidi, CA       1986       196       1,118       5,779     (126 )
Heritage Park Livermore     Dec-91       Livermore, CA       1988       167       1,324       5,682     (126 )
Heritage Village     Dec-97       Temple Terrace, FL       1967       252       713       10,678       9,773  
Heritage Village Anaheim     Dec-91       Anaheim, CA       1986       196       1,488       6,180     (126 )
Hibben Ferry I     Jul-84       MT. Pleasant, SC       1983       240       2,022       6,236       2,373  
Hickory Ridge     Jan-85       Memphis, TN       1970       378       2,677       8,861       707  
Hidden Cove (Formerly Lake Villa)     Dec-94       Belleville, MI       1976       120       810       3,503       1,480  
Hidden Lake Apts     May-98       Tampa, FL       1983       267       1,361       7,715       484  
Hiddentree     Oct-97       East Lansing, MI       1966       261       1,470       8,330       1,393  
Highland Park     Dec-96       Fort Worth, TX       1985       500       1,823       10,330       5,664  
Hillmeade     Nov-94       Nashville, TN       1985       288       2,872       16,066       3,549  
Hollymead Square     Dec-97       Charlottesville, VA       1978       100       497       2,880       479  
Hunt Club     Dec-00       Indianapolis, IN       1972       200       686       3,531       422  
Hunt Club (MD)     Dec-97       Gaithersburg, MD       1986       336       2,913       26,218       284  
Hunt Club (PA)     Dec-97       North Wales, PA       1986       320       3,728       33,555       157  
Hunt Club I     Dec-00       Ypsilanti, MI       1988       296       1,014       9,128       99  
Hunt Gardens     Dec-97       Baytown, TX       1984       100       422       2,378       81  
Hunters Creek     May-99       Cincinnati, OH       1981       146       661       3,832       523  
Hunters Crossing     Oct-99       Leesburg, VA       1967       164       1,425       8,076       384  
Hunters Glen     Apr-98       Austell, GA       1983       72       301       1,704       186  
Hunters Glen IV     Oct-98       Plainsboro, NJ       1976       264       2,617       9,217       775  
Hunters Glen V     Oct-98       Plainsboro, NJ       1977       304       3,160       10,695       929  
Hunters Glen VI     Oct-98       Plainsboro, NJ       1977       328       3,285       11,088       993  
Huntington Athletic Club     Oct-98       Morrisville, NC       1986       212       1,916       8,302       665  
Huntington Park (Formerly
Marbella Club)
    Jul-99       Miami, FL       1988       504       2,815       16,193       1,023  
Huntington Pointe (Formerly
Bella Vista)
    Jul-99       Miami, FL       1986       352       2,560       14,660       683  
Indian Creek Village     Oct-98       Overland Park, KS       1972       273       2,121       7,976       1,292  
Island Club (Beville)     Dec-00       Daytona Beach, FL       1986       206       1,220       10,980        
Island Club (CA)     Dec-00       Oceanside, CA       1986       603       4,920       44,281        
Island Club (MD)     Dec-00       Columbia, MD       1986       176       6       50        
Island Club (Palm Aire)     Dec-00       Pomano Beach, FL       1988       262       1,800       16,204        
Islandtree     Oct-97       Savannah, GA       1985       216       1,267       7,181       858  
Jefferson Place     Nov-94       Baton Rouge, LA       1985       234       2,696       15,115       1,707  
Key Towers     Oct-99       Alexandria, VA       1964       142       1,218       6,902       408  
Kingstown Gardens     Dec-97       Norfolk, VA       1968       64       57       506       94  
Knollwood     Dec-94       Nashville, TN       1972       326       2,367       3,715       5,451  
La Colina Ranch     Oct-98       Denton, TX       1984       264       1,613       5,123       206  
La Jolla De Tucson Apts     May-98       Tucson, AZ       1978       223       1,342       7,603       710  
La Jolla San Antonio     May-98       San Antonio, TX       1975       300       2,071       11,733       489  
Lake Castleton Arms     Oct-98       Indianapolis, IN       1997       1,265       5,188       33,504       3,889  
Lake Forest     Dec-97       Erie, PA       1973       204       278       5,135     (405 )
Lake Forest Apts     Feb-95       Omaha, NE       1971       312       2,229       6,664       3,827  
Lake Johnson Mews     Oct-98       Raleigh, NC       1972       201       1,761       5,597       252  
Lakehaven I     May-97       Carol Stream, IL       1984       144       701       3,974       69  
Lakehaven II     May-97       Carol Stream, IL       1985       348       1,673       9,482       1,022  
Lakeland East     May-97       Jackson, MS       1984       144       464       3,199       258  
Lakeside     Oct-98       Lisle, IL       1972       568       5,126       20,922       2,217  
Lakeside North @ Carrollwood     Apr-99       Tampa, FL       1984       168       760       6,839       41  
Lakeside Place     Oct-98       Houston, TX       1976       734       6,663       22,988       951  
Lamplighter Park     Dec-94       Bellevue, WA       1967       174       1,781       6,525       1,620  
Landings, The     Oct-98       Tampa, FL       1978       200       818       3,190       399  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

                                                 
    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
Greentree     1,955       12,180       14,135       2,348       11,787       6,963  
Hampton Hill     2,195       12,863       15,058       4,968       10,090       6,314  
Harbor Cove     1,446       8,743       10,190       1,370       8,820       5,605  
Harbor Town @ Jacaranda     2,982       16,267       19,249       206       19,043       19,304  
Hastings Place     709       5,393       6,102       1,480       4,622       4,444  
Haverhill Commons     1,656       10,864       12,520       1,670       10,850       9,100  
Heather Ridge     1,609       9,474       11,084       1,474       9,609       5,695  
Heather Ridge     614       3,916       4,530       772       3,758       3,775  
Heritage Park Escondido     1,016       5,756       6,772       49       6,722       6,116  
Heritage Park Livermore     1,032       5,849       6,881       58       6,823       6,170  
Heritage Village     713       20,452       21,165       5,082       16,083       4,966  
Heritage Village Anaheim     1,131       6,410       7,542       66       7,476       6,792  
Hibben Ferry I     1,225       9,406       10,631       2,690       7,941       6,033  
Hickory Ridge     1,807       10,438       12,245       825       11,420       6,083  
Hidden Cove (Formerly Lake Villa)     380       5,413       5,792       1,599       4,194       2,200  
Hidden Lake Apts     1,361       8,198       9,560       1,303       8,257       5,212  
Hiddentree     1,470       9,723       11,193       1,416       9,778       4,103  
Highland Park     6,296       11,522       17,817       2,493       15,325       8,770  
Hillmeade     2,872       19,615       22,487       4,758       17,729       10,729  
Hollymead Square     484       3,373       3,856       599       3,258       3,323  
Hunt Club     859       3,780       4,639       349       4,290       3,880  
Hunt Club (MD)     5,928       23,487       29,415       312       29,103       18,771  
Hunt Club (PA)     6,367       31,073       37,440       286       37,154       21,500  
Hunt Club I     1,536       8,705       10,241             10,241       8,602  
Hunt Gardens     457       2,424       2,881       197       2,684       1,362  
Hunters Creek     661       4,354       5,016       463       4,552       2,656  
Hunters Crossing     1,464       8,422       9,886       80       9,806       4,640  
Hunters Glen     301       1,890       2,191       213       1,978       1,010  
Hunters Glen IV     2,735       9,874       12,609       851       11,758       7,983  
Hunters Glen V     3,200       11,584       14,784       951       13,833       8,668  
Hunters Glen VI     3,381       11,986       15,367       1,056       14,310       9,021  
Huntington Athletic Club     1,867       9,015       10,883       583       10,300       7,297  
Huntington Park (Formerly Marbella Club)     2,815       17,216       20,031       1,546       18,485       13,567  
Huntington Pointe (Formerly Bella Vista)     2,560       15,343       17,903       1,384       16,519       12,765  
Indian Creek Village     3,262       8,128       11,390       696       10,694       8,735  
Island Club (Beville)     1,830       10,370       12,200             12,200       11,270  
Island Club (CA)     7,380       41,821       49,201             49,201       43,240  
Island Club (MD)     8       48       56             56        
Island Club (Palm Aire)     2,701       15,303       18,004             18,004       17,270  
Islandtree     1,267       8,039       9,306       1,117       8,189       3,961  
Jefferson Place     2,697       16,821       19,518       4,163       15,354       9,162  
Key Towers     1,257       7,271       8,528       69       8,459       5,654  
Kingstown Gardens     135       523       657       80       577       65  
Knollwood     1,504       10,028       11,533       5,535       5,998       6,780  
La Colina Ranch     1,373       5,568       6,942       3,900       3,042       4,981  
La Jolla De Tucson Apts     1,342       8,313       9,655       1,317       8,339       5,711  
La Jolla San Antonio     2,071       12,222       14,293       1,910       12,383       8,425  
Lake Castleton Arms     5,128       37,452       42,580       1,738       40,842       28,405  
Lake Forest     278       4,730       5,008       2,363       2,645       2,093  
Lake Forest Apts     2,191       10,528       12,719       4,087       8,632       4,700  
Lake Johnson Mews     944       6,666       7,610       529       7,081       4,350  
Lakehaven I     683       4,061       4,744       1,106       3,638       5,242  
Lakehaven II     1,643       10,533       12,177       2,786       9,391       13,346  
Lakeland East     494       3,428       3,921       570       3,351       3,373  
Lakeside     5,283       22,983       28,266       1,648       26,618       17,200  
Lakeside North @ Carrollwood     1,073       6,567       7,640       82       7,558       7,670  
Lakeside Place     5,920       24,683       30,602       1,966       28,636       23,343  
Lamplighter Park     2,781       7,145       9,926       1,872       8,054       3,500  
Landings, The     656       3,751       4,407       319       4,088       2,186  

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-39


Table of Contents

                                                         
                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
Landmark     May-98       Albuquerque, NM       1965       101       780       4,455       1,122  
Landmark     Jan-93       Raleigh, NC       1970       292       2,505       8,233       5,108  
Las Brisas (AZ)     Jul-94       Casa Grande, AZ       1985       132       573       3,260       393  
Las Brisas (TX)     Dec-95       San Antonio, TX       1983       176       1,100       5,454       643  
Lasalle     Dec-97       San Francisco, CA       1976       145       1,098       2,880     (16 )
Lebanon Station     Oct-98       Columbus, OH       1974       387       1,918       9,089       204  
Legend Oaks/The Woodlands     May-98       Tampa, FL       1983       416       2,304       13,058       788  
Leona     Dec-97       Uvalde, TX       1973       40       86       986       531  
Lexington     Jul-94       San Antonio, TX       1981       72       311       1,764       332  
Lighthouse At Twin Lakes I     Oct-97       Beltsville, MD       1969       480       3,627       13,240       5,855  
Lighthouse At Twin Lakes II     Oct-97       Beltsville, MD       1971       113       1,039       2,292       1,376  
Lighthouse At Twin Lakes III     Oct-97       Beltsville, MD       1978       107       760       3,231       1,163  
Lodge, The     Jan-96       Denver, CO       1973       376       2,848       9,105       439  
Los Arboles     Sep-97       Chandler, AZ       1985       232       1,662       9,418       966  
Madera Point     May-98       Phoenix, AZ       1986       256       2,103       11,916       1,178  
Magnolia Square (Trace)     Oct-98       Baton Rouge, LA       1973       246       1,191       4,249       1,230  
Maple Bay     Dec-99       Virginia Beach, VA       1971       414       2,598       14,719       2,075  
Marrill House     Jan-00       Fairfax, VA       1962       159       1,836       10,405       596  
Mayfair Village     Sep-99       West Lafayette, IN       1964       72       250       3,317       386  
McMillian Place     Jan-96       Dallas, TX       1986       402       2,507       12,409       446  
Meadow Creek     Apr-85       Boulder, CO       1972       332       1,387       10,027       9,321  
Meadows     Dec-96       Austin, TX       1983       100       579       3,283       381  
Mesa Ridge     May-98       San Antonio, TX       1986       200       1,209       6,852       322  
Michigan Meadows     Dec-99       Indianapolis, IN       1965       253       582       3,539     (51 )
Michigan Plaza — Commercial     Dec-99       Indianapolis, IN       1965             27       346        
Millhopper Village     Oct-98       Gainesville, FL       1969       136       1,061       3,176       197  
Misty Woods     Jan-96       Charlotte, NC       1986       228       1,448       5,921       289  
Montecito     Jul-94       Austin, TX       1985       268       1,268       7,194       2,244  
Mountain Run     Jul-99       Arvada, CO       1974       96       288       5,935       276  
Mountainview     May-98       Colorado Springs, CO       1985       252       2,536       14,371       558  
Newberry Park     May-97       Chicago, IL       1985       84       181       1,027       1,910  
Newport     Jul-94       Avondale, AZ       1986       204       800       4,554       835  
Nob Hill Villa     Dec-94       Nashville, TN       1971       472       2,417       10,087       6,371  
North River Village     Oct-98       Atlanta, GA       1970       133       1,027       3,660       295  
Northlake Village (Lima)     Dec-00       Lima, OH       1971       150       186       1,673        
Northpoint     Dec-97       Chicago, IL       1921       304       2,139       12,370       457  
Northview Harbor     Dec-99       Grand Rapids, MI       1982       360       2,016       10,696       751  
Northwoods Apartments     Oct-98       Pensacola, FL       1979       320       1,869       6,544       539  
Nottingham Square     Oct-98       Urbandale, IA       1974       442       1,890       7,820       138  
Oak Falls     Nov-96       Spring, TX       1983       144       514       3,585       2,081  
Oak Park Village I     Dec-00       Lansing, MI       1973       410       1,137       10,237        
Oak Park Village II     Dec-00       Lansing, MI       1973       208       695       6,251        
Oakbrook (MI)     Dec-99       Battle Creek, MI       1981       586       3,512       16,501       1,175  
Oakwood Village On Lake Nan     Oct-98       Winter Park, FL       1973       278       1,581       5,673       355  
Ocean Oaks Apartments     May-98       Port Orange, FL       1988       296       2,132       12,083       1,460  
Old Farm     Dec-98       Lexington, KY       1985       330       1,893       10,725       724  
Old Orchard     Dec-99       Grand Rapids, MI       1974       664       3,217       14,077       893  
Old Salem     Oct-98       Charlottesville, VA       1967       364       2,820       12,940       608  
Olde Towne West III     Dec-97       Alexandria, VA       1978       75       645       4,958       881  
Olmos Club     Oct-97       San Antonio, TX       1983       134       322       1,825       233  
Olympiad     Nov-94       Montgomery, AL       1986       176       1,046       5,958       871  
One Lytle Place     Dec-97       Cincinnati, OH       1980       231       3,246       17,485       1,047  
Orchidtree     Oct-97       Scottsdale, AZ       1971       278       2,314       13,112       1,022  
Palencia     May-98       Tampa, FL       1985       420       2,804       15,887       5,576  
Palm Lake (Village Square)     Oct-98       Tampa, FL       1972       150       954       6,266       1,407  
Panorama Terrace     Oct-98       Birmingham, AL       1975       227       1,500       4,662       703  
Paradise Palms     Jul-94       Phoenix, AZ       1970       130       647       3,684       716  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

                                                 
    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
Landmark     780       5,577       6,357       586       5,771       2,339  
Landmark     2,008       13,838       15,846       5,487       10,359       6,312  
Las Brisas (AZ)     573       3,653       4,226       942       3,283        
Las Brisas (TX)     1,100       6,097       7,197       1,368       5,829       4,430  
Lasalle     594       3,367       3,961             3,961       3,970  
Lebanon Station     1,807       9,403       11,211       680       10,531       6,658  
Legend Oaks/The Woodlands     2,304       13,846       16,150       2,216       13,934       7,583  
Leona     86       1,517       1,603       451       1,152       349  
Lexington     312       2,095       2,407       511       1,896       973  
Lighthouse At Twin Lakes I     2,994       19,728       22,722       6,264       16,457       12,313  
Lighthouse At Twin Lakes II     625       4,081       4,706       1,478       3,228       2,855  
Lighthouse At Twin Lakes III     735       4,419       5,154       1,282       3,872       3,481  
Lodge, The     2,380       10,013       12,393       935       11,458       7,009  
Los Arboles     1,662       10,384       12,046       1,421       10,625       6,957  
Madera Point     2,103       13,094       15,197       2,026       13,171       8,067  
Magnolia Square (Trace)     2,038       4,633       6,670       462       6,209        
Maple Bay     2,598       16,794       19,392       588       18,803       9,972  
Marrill House     1,836       11,001       12,837       346       12,491       6,893  
Mayfair Village     276       3,676       3,952       1,549       2,403       2,497  
McMillian Place     3,444       11,918       15,363       772       14,591       12,590  
Meadow Creek     1,435       19,300       20,735       5,114       15,621       7,235  
Meadows     579       3,664       4,243       656       3,587       2,875  
Mesa Ridge     1,209       7,174       8,383       1,123       7,261       4,855  
Michigan Meadows     807       3,262       4,070       313       3,757       1,557  
Michigan Plaza — Commercial     27       346       373       198       175        
Millhopper Village     543       3,891       4,434       337       4,097       2,700  
Misty Woods     910       6,747       7,657       484       7,173       5,181  
Montecito     1,268       9,438       10,706       2,533       8,173       5,967  
Mountain Run     288       6,211       6,499       2,104       4,394       3,388  
Mountainview     2,544       14,921       17,465       2,278       15,186       8,860  
Newberry Park     156       2,962       3,118       930       2,188       8,377  
Newport     800       5,389       6,189       1,505       4,684       4,730  
Nob Hill Villa     2,863       16,011       18,874       6,356       12,518       6,925  
North River Village     697       4,284       4,982       345       4,637       1,630  
Northlake Village (Lima)     279       1,580       1,859             1,859       2,255  
Northpoint     2,405       12,560       14,965       859       14,106       14,168  
Northview Harbor     2,024       11,439       13,463       878       12,585       7,766  
Northwoods Apartments     1,123       7,830       8,953       599       8,354       5,000  
Nottingham Square     1,562       8,286       9,847       801       9,047       7,122  
Oak Falls     508       5,672       6,180       1,519       4,661       4,844  
Oak Park Village I     1,706       9,669       11,375             11,375       4,869  
Oak Park Village II     1,042       5,904       6,946             6,946       3,281  
Oakbrook (MI)     3,347       17,842       21,188       672       20,516       8,432  
Oakwood Village On Lake Nan     1,303       6,306       7,610       574       7,035       3,834  
Ocean Oaks Apartments     2,132       13,544       15,676       2,091       13,585       10,295  
Old Farm     1,893       11,449       13,342       1,105       12,237       9,726  
Old Orchard     3,232       14,954       18,186       662       17,524       10,418  
Old Salem     1,952       14,416       16,369       978       15,391       9,943  
Olde Towne West III     595       5,889       6,484       913       5,570       4,096  
Olmos Club     322       2,058       2,380       294       2,086       1,174  
Olympiad     1,046       6,830       7,875       1,725       6,150       4,817  
One Lytle Place     2,033       19,745       21,778       1,312       20,466       12,530  
Orchidtree     2,314       14,134       16,448       1,929       14,519       6,833  
Palencia     2,804       21,462       24,266       3,206       21,060       13,047  
Palm Lake (Village Square)     1,651       6,975       8,626       350       8,276       2,990  
Panorama Terrace     1,109       5,756       6,865       539       6,326       3,681  
Paradise Palms     647       4,401       5,047       1,152       3,896       4,190  

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-40


Table of Contents

                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
Park @ Cedar Lawn     Nov-96       Galveston, TX       1985       192       769       5,073       2,919  
Park Avenue Towers (PA)     Dec-97       Wilkes-Barre, PA       1978       130       613       1,735     (12 )
Park Capitol     Dec-94       Salt Lake City, UT       1972       135       1,219       3,455       1,025  
Park Colony     May-98       Norcross, GA       1984       352       3,257       18,454       1,281  
Park Towne     Oct-97       Philadelphia, PA       1959       980       11,592       27,573       19,763  
Park Village     Dec-97       Hialeah, FL       1972       396       607       10,322       603  
Parker House     Sep-00       Hyattsville, MD       1965       296       2,659       15,073       220  
Parktown Townhouses     Oct-98       Deer Park, TX       1968       309       2,239       7,172       248  
Parkway     Dec-97       Williamsburg, VA       1971       148       1,641       2,084       336  
Parliament Bend     Jul-94       San Antonio, TX       1980       232       765       4,342       1,206  
Patchen Place     Oct-98       Lexington, KY       1974       202       966       3,766       340  
Peachtree Park     Jan-96       Atlanta, GA       1962/1995       295       4,681       12,957       2,412  
Pembroke Court     Dec-97       Virginia Beach, VA       1974       458       1,897       12,199       4,871  
Pendleton Riverside Apts     Apr-99       Pendleton, OR       1977       40       72       992     (437 )
Penn Square     Dec-94       Albuquerque, NM       1982       210       1,128       6,478       880  
Peppermill Place     Nov-96       Houston, TX       1983       224       406       3,957       2,489  
Pickwick Place     Oct-98       Indianapolis, IN       1973       336       1,082       7,418       1,293  
Pine Creek (MI)     Oct-97       Clio, MI       1978       233       852       4,830       616  
Pine Creek (TX)     Dec-97       Houston, TX       1979       300       668       3,892       227  
Pine Shadows     May-98       Phoenix, AZ       1983       272       2,093       11,858       573  
Pinebrook     Oct-98       Jacksonville, FL       1974       208       856       4,854       478  
Pinebrook     Jan-93       Ridgeland, MS       1979       160       743       2,073       770  
Pines Of Roanoke     Oct-98       Roanoke, VA       1978       216       1,218       4,998       260  
Pinetree     Oct-98       Charlotte, NC       1972       220       1,427       6,843       372  
Place Du Plantier     Oct-98       Baton Rouge, LA       1972       268       1,783       5,974       253  
Plantation Crossing     Jan-96       Marietta, GA       1979       180       1,537       6,118       276  
Plantation Gardens     Oct-98       Plantation, FL       1971       372       2,347       9,661       1,666  
Pleasant Ridge     Nov-94       Little Rock, AR       1982       200       1,660       9,464       1,171  
Pleasant Valley Point     Nov-94       Little Rock, AR       1985       112       907       5,069       1,003  
Point West     Dec-94       Charleston, SC       1973       120       629       4,487       1,298  
Point West     May-97       Lenexa, KS       1985       172       979       5,548       1,802  
Pointe James     Oct-98       Charleston, SC       1977       128       956       1,181       76  
Polo Park     Oct-97       Midland, TX       1983       184       800       4,532       853  
Post Ridge     Feb-95       Nashville, TN       1972       150       1,249       5,782       2,302  
Prairie Hills     Jul-94       Albuquerque, NM       1985       260       1,680       9,633       1,384  
Preston Creek     Oct-98       Dallas, TX       1979       228       1,919       8,259       341  
Pride Gardens     May-97       Flora, MS       1975       76       265       1,502       2,337  
Privado Park     May-98       Phoenix, AZ       1984       352       2,636       14,937       553  
Quail Hollow     Oct-98       West Columbia, SC       1973       215       1,350       4,505       573  
Quail Ridge     May-98       Tucson, AZ       1974       253       1,613       9,143       623  
Quail Run     Oct-98       Columbia, SC       1970       332       2,040       8,412       277  
Quail Run     Oct-98       Zionsville, IN       1972       166       1,398       4,815       147  
Quail Woods     Oct-98       Gastonia, NC       1974       188       1,112       1,892       87  
Raintree     Oct-98       Pensacola, FL       1971       168       192       1,091       1,720  
Raintree     Oct-98       Anderson, SC       1972       176       796       2,752       177  
Ramblewood     Dec-97       Norfolk, VA       1978       300       969       5,646       1,258  
Ramblewood (MI)     Dec-99       Grand Rapids, MI       1973       1,630       9,742       59,378       4,061  
Rancho Arms     Jun-97       Rancho Cordova, CA       1973       95       386       2,322       18  
Rancho Sunset     Mar-98       Escondido, CA       1985       334       3,103       16,755       1,755  
Randol Crossing     Dec-96       Fort Worth, TX       1984       160       728       4,125       711  
Reflections (Tampa)     Dec-00       Tampa, FL       1988       350       1,997       17,975     (65 )
Reflections (Virginia Beach)     Dec-00       Virginia Beach, VA       1987       480       2,827       25,445       135  
Reflections (West Palm Beach)     Dec-00       West Palm Beach, FL       1986       303       1,342       12,081        
Regency Oaks     Oct-98       Fern Park, FL       1965       343       1,630       3,348       2,376  
Ridgecrest     Dec-96       Denton, TX       1983       152       393       2,228       507  
Rio Cancion     Oct-98       Tucson, AZ       1983       379       2,832       16,090       821  
River Loft Apartments     May-97       Philadelphia, PA       1910       197       1,687       10,911       3,738  
River Reach     Jun-99       Naples, FL       1986       556       3,541       31,867       25  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
Park @ Cedar Lawn     695       8,067       8,761       1,878       6,883       5,038  
Park Avenue Towers (PA)     350       1,986       2,336             2,336       2,291  
Park Capitol     735       4,963       5,698       1,135       4,563       2,725  
Park Colony     3,257       19,735       22,992       3,074       19,918       10,788  
Park Towne     3,817       55,110       58,927       18,488       40,439       37,289  
Park Village     1,670       9,861       11,532       1,203       10,328       10,710  
Parker House     2,665       15,287       17,952       146       17,805       7,815  
Parktown Townhouses     2,156       7,503       9,659       651       9,008       7,800  
Parkway     635       3,426       4,061       434       3,627       3,041  
Parliament Bend     765       5,548       6,313       1,431       4,882        
Patchen Place     977       4,095       5,072       427       4,646       3,000  
Peachtree Park     4,683       15,366       20,050       3,214       16,836       13,798  
Pembroke Court     3,584       15,383       18,967       1,540       17,427       10,695  
Pendleton Riverside Apts     72       555       627       435       193       317  
Penn Square     1,128       7,358       8,486       1,796       6,690       4,109  
Peppermill Place     344       6,508       6,852       1,528       5,324       4,698  
Pickwick Place     1,286       8,507       9,793       537       9,256       6,227  
Pine Creek (MI)     852       5,445       6,298       642       5,656       2,225  
Pine Creek (TX)     672       4,115       4,788       375       4,412       2,411  
Pine Shadows     2,093       12,430       14,523       1,948       12,575       7,500  
Pinebrook     857       5,331       6,188       508       5,679       3,559  
Pinebrook     516       3,070       3,586       775       2,811       2,444  
Pines Of Roanoke     1,053       5,422       6,475       439       6,037       4,143  
Pinetree     1,480       7,162       8,642       472       8,170       4,880  
Place Du Plantier     1,461       6,549       8,010       662       7,348       3,800  
Plantation Crossing     1,467       6,464       7,931       502       7,429       4,825  
Plantation Gardens     4,412       9,262       13,674       882       12,792       9,683  
Pleasant Ridge     1,661       10,635       12,295       2,714       9,581       6,700  
Pleasant Valley Point     907       6,073       6,979       1,578       5,402       3,682  
Point West     1,010       5,404       6,414       1,377       5,038       2,407  
Point West     1,175       7,153       8,329       2,711       5,617       5,425  
Pointe James     283       1,930       2,213       305       1,909       1,199  
Polo Park     800       5,386       6,185       771       5,415       2,145  
Post Ridge     1,359       7,973       9,332       2,397       6,935       4,050  
Prairie Hills     2,011       10,685       12,697       2,747       9,950       6,680  
Preston Creek     2,902       7,617       10,519       556       9,963       4,500  
Pride Gardens     178       3,926       4,104       1,581       2,523       840  
Privado Park     2,636       15,491       18,127       2,397       15,730       8,750  
Quail Hollow     1,099       5,329       6,428       405       6,024       2,850  
Quail Ridge     1,613       9,766       11,380       1,562       9,817       6,085  
Quail Run     1,475       9,255       10,729       639       10,091       5,295  
Quail Run     1,024       5,336       6,360       613       5,747       4,272  
Quail Woods     283       2,808       3,091       358       2,733       2,407  
Raintree           3,003       3,003     (0 )     3,003       2,585  
Raintree     518       3,207       3,725       267       3,458       3,055  
Ramblewood     581       7,293       7,873       1,107       6,766       4,787  
Ramblewood (MI)     9,707       63,475       73,182       2,675       70,506       38,306  
Rancho Arms     386       2,340       2,726       1,096       1,631       836  
Rancho Sunset     3,103       18,510       21,613       1,955       19,658       13,522  
Randol Crossing     728       4,836       5,564       901       4,663       3,421  
Reflections (Tampa)     3,625       16,282       19,907       0       19,907       20,235  
Reflections (Virginia Beach)     5,234       23,173       28,407       282       28,125       23,369  
Reflections (West Palm Beach)     2,013       11,410       13,423             13,423       9,035  
Regency Oaks     1,100       6,254       7,354       778       6,576       7,623  
Ridgecrest     393       2,735       3,128       666       2,462       4,398  
Rio Cancion     2,832       16,911       19,743       2,053       17,689       12,706  
River Loft Apartments     1,132       15,204       16,336       1,835       14,501       6,391  
River Reach     6,064       29,369       35,433       486       34,946       36,043  

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[Continued from above table, first column(s) repeated]

F-41


Table of Contents

                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
River Reach     Oct-98       Jacksonville, FL       1972       298       2,432       8,537       504  
Rivercrest     Oct-98       Atlanta, GA       1970       312       3,077       11,101       480  
Rivers Edge     Dec-94       Auburn, WA       1976       120       825       5,118       1,569  
Riverside     Jul-94       Littleton, CO       1987       248       1,553       8,828       1,463  
Riverside     Dec-80       Augusta, GA       1980       224       1,485       4,639       1,951  
Riverside Park     Oct-97       Alexandria, VA       1973       1,222       11,845       50,174       18,030  
Riverwalk     Dec-95       Little Rock, AR       1988       262       1,075       9,295       946  
Riverwood (IN)     Dec-00       Indianapolis, IN       1978       120       395       3,552        
Rocky Creek     Oct-98       Augusta, GA       1979       120       686       2,692       73  
Rocky Ridge     Oct-98       Birmingham, AL       1973       116       617       2,290       315  
Rolling Meadows     Dec-97       Ada, OK       1970       60       60       1,432     (327 )
Rosecroft Mews     Oct-99       Ft. Washington, MD       1966       303       2,043       11,597       129  
Rosemont Crossing (The Greens)     Oct-98       San Antonio, TX       1974       217       743       3,802       192  
Royal Gardens     Oct-98       Hemet, CA       1987       137       521       2,817       543  
Royal Palms     Jul-94       Mesa, AZ       1985       152       832       4,730       422  
Runaway Bay (CA)     Dec-00       Antioch, CA       1986       283       1,740       15,659        
Runaway Bay (FL)     Dec-00       Lantana, FL       1987       407       1,678       15,102        
Runaway Bay (MI)     Dec-00       Lansing, MI       1987       288       981       8,829        
Runaway Bay (NC)     Dec-00       Charlotte, NC       1985       280       1,208       10,868        
Ryan’s Pointe     Oct-98       Houston, TX       1983       280       1,265       3,080       3,928  
Salem Park     Oct-97       Ft. Worth, TX       1984       168       840       4,315     (286 )
San Juan     Jun-97       Fair Oaks, CA       1973       70       381       1,592       88  
San Marina     Mar-98       Phoenix, AZ       1986       399       1,926       10,954       1,062  
Sand Castles     Oct-97       League City, TX       1987       138       978       5,541       517  
Sand Pebble     Oct-97       El Paso, TX       1983       208       861       4,879       508  
Sandalwood     May-98       Houston, TX       1979       352       1,462       8,287       610  
Sandpiper     Jan-95       St. Petersburg, FL       1984       276       1,766       8,199       1,277  
Sandpiper Cove     May-97       Boynton Beach, FL       1987       416       11,447       29,088       2,630  
Sands Point     Jan-96       Phoenix, AZ       1985       432       3,043       10,960       402  
Savannah Trace     Dec-00       Shaumburg, IL       1986       368       18       163        
Sawgrass     Jul-97       Orlando, FL       1986       208       1,443       8,157       835  
Scandia     Dec-00       Indianapolis, IN       1977       444       1,789       16,099        
Scotch Pines East     Dec-91       Ft. Collins, CO       1977       102       688       2,912       1,471  
Seaside Point     Nov-96       Galveston, TX       1985       102       295       2,994       3,019  
Seasons (TX)     Oct-95       San Antonio, TX       1976       280       974       5,749       2,696  
Shadetree     Oct-97       Tempe, AZ       1965       123       591       3,349       772  
Shadow Brook     Dec-00       West Valley City, UT       1984       300       2,216       6,861       308  
Shadow Creek Apartments     May-98       Phoenix, AZ       1984       266       2,087       11,824       607  
Shadow Lake     Oct-97       Greensboro, NC       1988       136       1,054       5,972       646  
Shadowood     May-97       Chapel Hill, NC       1987       336       2,377       11,898       196  
Shaker Square     Oct-98       Whitehall, OH       1968       194       1,177       5,357       94  
Shallow Creek     May-98       San Antonio, TX       1982       208       1,234       6,995       351  
Shenandoah Crossing     Dec-97       Fairfax, VA       1984       640       6,445       58,009     (89 )
Shoreview     May-97       San Francisco, CA       1976       156       1,290       2,920       3,128  
Signal Pointe (Squire One)     Oct-98       Winter Park, FL       1971       368       2,108       6,805       453  
Signature Point     Nov-96       League City, TX       1994       304       2,160       13,627       3,602  
Silktree     Oct-97       Phoenix, AZ       1979       86       421       2,383       280  
Silver Ridge     Oct-98       Maplewood, MN       1986       186       650       3,677       1,011  
Silverado     Oct-98       El Paso, TX       1973       248       821       4,469       1,567  
Ski Lodge     Oct-98       Montgomery, AL       1978       522       2,538       8,781       544  
Snowden Village I     Oct-98       Fredericksburg, VA       1970       132       978       3,004       81  
Snowden Village II     Oct-98       Fredericksburg, VA       1980       122       864       3,008       40  
Snug Harbor     Dec-95       Las Vegas, NV       1990       64       750       2,966       456  
Society Park     Oct-98       Tampa, FL       1968       324       1,135       4,266       1,428  
Society Park East     Oct-98       Indian Harbor, FL       1963       200       1,013       6,278       1,430  
Somerset Lakes     May-99       Indianapolis, IN       1974       360       3,533       20,285       566  
Somerset Village     May-96       West Valley City, UT       1985       486       4,375       17,600       1,963  
South Point     Oct-98       Durham, NC       1980       180       1,429       5,377       171  
South Willow     Jul-94       West Jordan, UT       1987       440       2,218       12,612       1,653  
Southport     Mar-97       Tulsa, OK       1984       240       1,394       5,255       3,787  
Southridge Assoc     Dec-96       Greenville, TX       1984       160       643       3,645       537  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

[Continued from above table, first column(s) repeated]

    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
River Reach     2,450       9,023       11,473       710       10,763       6,693  
Rivercrest     2,227       12,431       14,658       1,131       13,527       12,240  
Rivers Edge     1,345       6,167       7,512       1,623       5,889       3,979  
Riverside     1,554       10,290       11,844       2,696       9,149       10,098  
Riverside     1,286       6,789       8,075       1,613       6,462       3,685  
Riverside Park     9,869       70,181       80,050       19,580       60,470       50,542  
Riverwalk     1,075       10,241       11,316       2,155       9,160       6,128  
Riverwood (IN)     592       3,355       3,947             3,947       1,931  
Rocky Creek     330       3,122       3,451       214       3,238       1,974  
Rocky Ridge     542       2,680       3,222       261       2,961       1,450  
Rolling Meadows     60       1,106       1,166       728       438       441  
Rosecroft Mews     2,043       11,727       13,770       112       13,658       9,580  
Rosemont Crossing (The Greens)     728       4,009       4,737       367       4,370       2,793  
Royal Gardens     521       3,360       3,881       260       3,621       2,378  
Royal Palms     832       5,152       5,984       1,331       4,653       3,245  
Runaway Bay (CA)     2,610       14,789       17,399             17,399       12,100  
Runaway Bay (FL)     2,517       14,263       16,780             16,780       14,186  
Runaway Bay (MI)     1,472       8,339       9,810             9,810       9,040  
Runaway Bay (NC)     1,811       10,265       12,076             12,076       9,020  
Ryan’s Pointe     885       7,388       8,273       169       8,104       4,229  
Salem Park     555       4,314       4,869       1,423       3,446       2,975  
San Juan     381       1,680       2,060       810       1,250       564  
San Marina     1,926       12,016       13,942       1,548       12,394       7,738  
Sand Castles     978       6,058       7,036       844       6,192       2,913  
Sand Pebble     861       5,387       6,248       775       5,473       2,544  
Sandalwood     1,462       8,897       10,360       1,454       8,906       4,525  
Sandpiper     2,013       9,229       11,242       1,425       9,817       3,950  
Sandpiper Cove     8,382       34,783       43,165       9,440       33,725       12,210  
Sands Point     2,890       11,516       14,406       951       13,454       9,487  
Savannah Trace     27       154       181             181        
Sawgrass     1,443       8,992       10,435       1,320       9,115       4,332  
Scandia     2,683       15,204       17,887             17,887       12,958  
Scotch Pines East     689       4,381       5,070       1,544       3,526       2,714  
Seaside Point     215       6,093       6,308       1,223       5,085       1,970  
Seasons (TX)     982       8,437       9,419       1,582       7,838       4,334  
Shadetree     591       4,121       4,712       604       4,107       1,936  
Shadow Brook     2,055       7,330       9,385       700       8,685       6,000  
Shadow Creek Apartments     2,087       12,430       14,517       1,933       12,584       6,642  
Shadow Lake     1,054       6,619       7,672       900       6,772       3,041  
Shadowood     2,125       12,345       14,470       1,029       13,441       10,397  
Shaker Square     1,037       5,592       6,629       446       6,183       3,192  
Shallow Creek     1,234       7,345       8,580       1,151       7,429       4,390  
Shenandoah Crossing     11,768       52,598       64,365       506       63,859       36,842  
Shoreview     218       7,120       7,337       661       6,676       4,170  
Signal Pointe (Squire One)     1,269       8,096       9,365       665       8,701       8,875  
Signature Point     2,134       17,255       19,389       3,223       16,167       6,923  
Silktree     421       2,663       3,084       374       2,710       1,463  
Silver Ridge           5,338       5,338       0       5,338       4,525  
Silverado     3,251       3,606       6,857       293       6,564       3,519  
Ski Lodge     1,751       10,112       11,864       897       10,966       6,800  
Snowden Village I     581       3,482       4,062       319       3,743       2,377  
Snowden Village II     549       3,364       3,913       293       3,620       2,562  
Snug Harbor     751       3,421       4,172       775       3,397       2,398  
Society Park     2,255       4,574       6,830       523       6,306       5,311  
Society Park East     1,898       6,823       8,721       420       8,301       4,106  
Somerset Lakes     3,533       20,852       24,385       2,232       22,153       13,909  
Somerset Village     4,375       19,563       23,938       3,760       20,179       12,242  
South Point     1,259       5,718       6,977       485       6,491       4,600  
South Willow     2,218       14,266       16,483       3,756       12,727       9,976  
Southport     2,884       7,552       10,436       3,661       6,775       4,358  
Southridge Assoc     643       4,182       4,826       872       3,954       3,946  

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-42


Table of Contents

                                  Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
Spectrum Pointe     Jul-94       Marietta, GA       1984       196       1,029       5,903       895  
Springhill Lake     Oct-97       Greenbelt, MD       1969       2,907       20,793       70,845       26,443  
St. Charleston Village     Oct-98       Las Vegas, NV       1980       312       2,035       7,778       432  
Standart Woods Apts     Dec-97       Auburn, NY       1969       330       891       5,274       316  
Steeplechase     Dec-00       Williamsburg, VA       1986       220       1,321       11,886        
Steeplechase (MD)     Dec-97       Largo, MD       1986       240       1,888       16,995       20  
Steeplechase (OH)     May-99       Loveland, OH       1988       272       1,669       9,539       471  
Stirling Court     Nov-96       Houston, TX       1984       228       946       5,958       1,838  
Stone Creek Club     Dec-97       Germantown, MD       1984       240       1,909       17,181       400  
Stone Mountain West     Oct-98       Stone Mountain, GA       1971       142       1,236       4,200       214  
Stone Pointe Village     Dec-99       Fort Wayne, IN       1980       296       1,809       8,591       1,037  
Stonebrook     Jun-97       Sanford, FL       1991       244       2,071       9,353       786  
Stoney Brook     Nov-96       Houston, TX       1972       113       579       3,871       790  
Stonybrook Apts     May-98       Tucson, AZ       1983       411       2,187       12,278       1,180  
Strawbridge Square     May-97       Alexandria, VA       1979       128       917       3,932       947  
Summerchase     May-97       Van Buren, AR       1974       72       170       962       1,489  
Summerwalk     Oct-98       Winter Park, FL       1974       306       1,991       6,650       816  
Summerwalk At The Crossing     Nov-00       Tucker, GA       1989       264       1,663       14,971       742  
Summit Creek     May-98       Austin, TX       1985       164       611       3,464       3,206  
Sun Grove     Jul-94       Peoria, AZ       1986       86       659       3,749       270  
Sun Lake     May-98       Lake Mary, FL       1986       600       4,556       25,819       1,683  
Sun River Village     Oct-98       Tempe, AZ       1981       334       2,651       9,119       403  
Sunbury Downs     Nov-96       Houston, TX       1982       240       565       4,380       2,715  
Sunchase Clearwater     Nov-94       Clearwater, FL       1985       461       2,177       19,641       2,592  
Sunchase East     Nov-94       Orlando, FL       1985       296       927       8,361       1,107  
Sunchase North     Nov-94       Orlando, FL       1985       324       1,013       9,142       1,357  
Sunchase Tampa     Nov-94       Tampa, FL       1985       216       757       6,831       1,227  
Sundown Village     Mar-98       Tucson, AZ       1984/1994       330       2,214       12,582       661  
Sunlake     Sep-98       Brandon, FL       1986       88       189       1,086       3,907  
Sunrise V     Dec-91       Richmond, VA       1976       229       1,587       4,630       2,442  
Sunrunner     Jan-96       St. Petersburg, FL       1980       200       1,203       4,410       197  
Sunset Village     Mar-98       Oceanside, CA       1987       114       1,128       6,392       417  
Surrey Oaks     Oct-97       Bedford, TX       1983       152       628       3,560       518  
Swiss Village     Nov-96       Houston, TX       1972       360       1,011       11,310       698  
Sycamore Creek     Dec-91       Cincinnati, OH       1978       295       1,830       7,105       3,994  
Taj Mahal     Dec-97       Fort Worth, TX       1958       131       155       841       91  
Tall Timbers     Oct-97       Houston, TX       1982       256       1,238       7,016       554  
Tamarac Village     Dec-94       Denver, CO       1979       564       4,499       14,318       3,709  
Tar River Estates     Oct-98       Greenville, NC       1969       402       2,411       6,546       1,405  
Tates Creek Village     Oct-98       Lexington, KY       1970       204       1,282       6,643       1,294  
Tatum Gardens Apartments     May-98       Phoenix, AZ       1985       128       653       3,699       3,086  
The Apartment     Dec-94       Omaha, NE       1973       204       1,186       5,175       3,570  
The Arbors Apartments     May-98       Deland, FL       1983       224       1,507       8,537       1,149  
The Arbours Of Hermitage     Dec-94       Hermitage, TN       1972       350       2,143       7,367       6,476  
The Bluffs     Dec-98       Laffayette, IN       1982       181       979       5,549       855  
The Bradford     Oct-97       Midland, TX       1982       218       705       3,996     (424 )
The Breakers     Oct-98       Daytona Beach, FL       1985       208       1,008       5,710       695  
The Falls Of Bells Ferry     May-98       Marietta, GA       1987       720       6,568       37,218       1,468  
The Gates Of West Bay     Dec-97       Norfolk, VA       1963       202       483       3,424       255  
The Greens     Dec-97       Chandler, AZ       2000       324       2,303       6,744       14,098  
The Hills At The Arboretum     Oct-97       Austin, TX       1983       329       1,367       7,747       8,010  
The Knolls     Oct-98       Colorado Springs, CO       1972       262       2,559       8,058       1,833  
The Lakes     Dec-94       Raleigh, NC       1972       600       3,822       15,265       971  
The Lexington     Oct-98       Sarasota, FL       1974       267       1,863       6,516       206  
The Loft     Oct-98       Raleigh, NC       1974       184       1,667       6,316       195  
The Park     Oct-98       Melbourne, FL       1983       120       719       4,072       250  
The Park At Deerbrook     Oct-98       Humble, TX       1984       100       470       1,017       188  
The Pines     Oct-98       Palm Bay, FL       1984       216       601       3,406       502  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

                                                 
    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
Spectrum Pointe     1,029       6,798       7,827       1,784       6,043       5,020  
Springhill Lake     11,438       106,642       118,080       26,691       91,389       53,837  
St. Charleston Village     1,595       8,651       10,246       632       9,614       7,215  
Standart Woods Apts     741       5,741       6,482       253       6,229       5,340  
Steeplechase     1,981       11,226       13,207             13,207       9,425  
Steeplechase (MD)     3,120       15,784       18,903       202       18,701       11,914  
Steeplechase (OH)     2,009       9,670       11,679       1,055       10,624       8,324  
Stirling Court     977       7,765       8,742       3,519       5,223       4,517  
Stone Creek Club     3,190       16,301       19,491       204       19,286       12,058  
Stone Mountain West     817       4,833       5,650       341       5,309       3,000  
Stone Pointe Village     1,810       9,627       11,437       614       10,823       6,163  
Stonebrook     2,071       10,140       12,210       1,560       10,650       5,915  
Stonegate Village     287       1,624       1,910             1,910       1,617  
Stoney Brook     704       4,536       5,240       1,028       4,212       2,624  
Stonybrook Apts     2,167       13,478       15,645       2,248       13,397       5,598  
Strawbridge Square     505       5,290       5,795       289       5,506       3,190  
Summerchase     81       2,540       2,621       1,851       769       617  
Summerwalk     1,374       8,084       9,458       499       8,959       4,845  
Summerwalk At The Crossing     2,124       15,252       17,376       850       16,526       17,360  
Summit Creek     1,153       6,128       7,281       1,424       5,857       3,456  
Sun Grove     659       4,019       4,678       1,069       3,609        
Sun Katcher (Teal Pt)     785       9,605       10,389       1,398       8,991       8,458  
Sun Lake     4,556       27,503       32,059       4,415       27,644       14,655  
Sun River Village     2,081       10,091       12,173       791       11,382       6,065  
Sunbury Downs     517       7,143       7,660       1,526       6,134       5,190  
Sunchase Clearwater     2,177       22,232       24,410       5,487       18,923       16,015  
Sunchase East     927       9,468       10,395       2,364       8,031       8,406  
Sunchase North     1,013       10,499       11,512       2,616       8,897       11,275  
Sunchase Tampa     757       8,057       8,815       2,075       6,739       6,739  
Sundown Village     2,214       13,243       15,457       1,567       13,890       8,276  
Sunlake     632       4,550       5,182       1,107       4,075       2,696  
Sunrise V     1,157       7,502       8,659       2,548       6,111       6,390  
Sunrunner     892       4,918       5,810       400       5,409       3,250  
Sunset Village     1,128       6,810       7,937       713       7,225       5,442  
Surrey Oaks     628       4,077       4,706       470       4,235       2,165  
Swiss Village     868       12,151       13,019       5,038       7,981       7,426  
Sycamore Creek     1,897       11,033       12,930       4,025       8,905       8,336  
Taj Mahal     152       936       1,087       88       999       305  
Tall Timbers     1,238       7,570       8,808       1,075       7,733       3,858  
Tamarac Village     3,797       18,730       22,526       3,878       18,649       9,400  
Tar River Estates     1,327       9,035       10,362       1,097       9,265       4,506  
Tates Creek Village     2,004       7,215       9,219       470       8,749       4,210  
Tatum Gardens Apartments     1,117       6,321       7,437       1,411       6,027       3,360  
The Apartment     1,291       8,640       9,931       3,744       6,188       4,703  
The Arbors Apartments     1,507       9,686       11,193       1,518       9,675       7,605  
The Arbours Of Hermitage     2,064       13,922       15,986       6,072       9,914       5,650  
The Bluffs     979       6,404       7,383       606       6,777       3,746  
The Bradford     519       3,758       4,277       543       3,734       1,542  
The Breakers     1,008       6,406       7,413       629       6,785       3,719  
The Falls Of Bells Ferry     6,568       38,685       45,253       5,913       39,340       26,215  
The Gates Of West Bay     601       3,561       4,162       334       3,829       2,466  
The Greens     2,303       20,841       23,145       2       23,143       17,500  
The Hills At The Arboretum     1,367       15,757       17,124       1,179       15,946       7,903  
The Knolls     3,151       9,300       12,451       751       11,699       9,883  
The Lakes     3,966       16,093       20,059       1,301       18,758       12,240  
The Lexington     1,603       6,983       8,585       601       7,985       7,020  
The Loft     1,623       6,555       8,177       1,264       6,913       4,276  
The Park     720       4,321       5,041       418       4,623       2,496  
The Park At Deerbrook     354       1,321       1,675       443       1,232       1,509  
The Pines     603       3,906       4,509       338       4,171       2,190  


F-43


Table of Contents

                                                         
                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
The Sterling     Oct-98       Philadelphia, PA       1962       536       7,610       35,768       1,932  
The Stratford     May-98       San Antonio, TX       1979       269       1,920       10,879       541  
Thicket     Dec-97       Houston, TX       1982       279       392       2,700       172  
Thurber Manor     Oct-98       Columbus, OH       1965       115       873       2,713       325  
Timber Ridge     Oct-98       Sharonville, OH       1972       248       1,537       5,706       412  
Timberlake     May-97       Arlington, TX       1971       224       258       6,820       270  
Timbermill     Oct-95       San Antonio, TX       1982       296       778       4,674       1,046  
Timbertree     Oct-97       Phoenix, AZ       1980       387       2,334       13,229       1,062  
Torrey Pines Village     Oct-98       Las Vegas, NV       1980       204       1,332       5,031       229  
Township I & II     Nov-96       Littleton, CO       1986       161       1,058       11,166       11,005  
Trails Of Ashford     May-98       Houston, TX       1979       514       2,650       15,018       950  
Treehouse     Dec-97       College Station, TX       1982       156       701       3,828       139  
Treetops     Dec-00       San Bruno, CA       1987       310       13       120        
Trinity Apartments     Mar-00       Irving, TX       1985       596       3,669       15,344       3,322  
Tropical Gardens     Dec-97       Lauderdale Lake, FL       1983       245       1,335       7,166       940  
Twin Lake Towers     Oct-98       Westmont ,IL       1969       399       3,461       13,538       1,281  
Twin Lakes     Apr-93       Palm Harbor, FL       1986       262       2,180       4,393       2,020  
Victoria Station     Jun-98       Victoria, TX       1997       224       425       3,946       2,710  
Villa La Paz     Jun-98       Sun City, CA       1990       96       573       3,096       302  
Villa Ladera     Jan-96       Albuquerque, NM       1985       280       1,765       10,013       1,797  
Villa Nova     Dec-91       Indianapolis, IN       1972       126       693       2,777       357  
Villa Serena     Dec-91       Chino, CA       1987       186       949       5,033     (126 )
Village     Dec-91       Barndon, FL       1986       112       960       4,093       129  
Village Creek At Brookhill     Jul-94       Westminster, CO       1987       324       2,446       13,901       1,391  
Village Crossing     May-98       W. Palm Beach, FL       1986       189       1,618       9,167       1,309  
Village East     Dec-94       Colorado Springs, CO       1972       137       1,059       3,627       1,812  
Village Gardens     Oct-98       Fort Collins, CO       1973       141       1,136       3,502       186  
Village Green     Oct-98       Montgomery, AL       1972       337       1,767       5,452       221  
Village Green (AL)     Dec-97       Mobile, AL       1973       208       310       201       4,633  
Village In The Woods     Jan-96       Cypress, TX       1983       530       3,631       15,292       644  
Village Of Pennbrook     Oct-98       Levitown, PA       1970       722       5,533       31,345       26,352  
Villas (VA)     Dec-97       Portsmouth, VA       1977       196       669       3,937       359  
Vinings Peak     Jan-96       Atlanta, GA       1980       280       2,838       10,146       402  
Vista Del Lagos     Nov-97       Chandler, AZ       1986       200       1,415       7,494       80  
Vista Ventana Apartments     May-98       Phoenix, AZ       1982       275       1,908       10,810       583  
Walker Springs Apts     Dec-91       Knoxville, TN       1974       168       528       2,696       1,987  
Walnut Springs     Dec-96       San Antonio, TX       1983       224       998       5,657       454  
Warwick     Dec-97       Abilene, TX       1984       152       779       4,433       169  
Waterford     Nov-96       Houston, TX       1984       312       533       5,692       1,020  
Waterways Village     Jun-97       Aventura, FL       1991       180       4,504       11,702       616  
Weatherly     Oct-98       Stone Mountain, GA       1984       224       1,275       6,887       1,026  
Wellspring     Dec-97       Columbia, SC       1985       232       564       9,114        
West 135th Street     Aug-98       New York, NY       1979       198       1,195       14,969       1,232  
West Lake Arms Apts     May-97       Indianapolis, IN       1977       1,381       3,989       22,697       1,785  
West Way Village     May-98       Houston, TX       1979       326       980       5,554       4,846  
West Woods     Dec-00       Annapolis, MD       1981       57       233       2,097        
Westgate     Oct-98       Houston, TX       1971       313       1,998       8,933       2,517  
Whispering Pines     Oct-98       Madison, WI       1986       136       719       4,046       175  
Wickertree     Oct-97       Phoenix, AZ       1983       226       1,225       6,944       441  
Wildflower     Oct-97       Midland, TX       1982       264       705       3,996       1,222  
Williams Cove     Jul-94       Irving, TX       1984       260       1,227       6,972       810  
Williamsburg     May-98       Rolling Meadows, IL       1985       329       2,717       15,398       1,288  
Williamsburg Apts     Oct-98       Indianapolis, IN       1974       460       2,396       8,923       863  
Williamsburg Manor     Jan-95       Cary, NC       1972       183       1,789       7,451       1,027  
Williamsburg On The
Wabash (IN)
    Dec-99       West Lafayette, IN       1967       473       3,225       17,569       802  
Willow Park On Lake Adelaide     Oct-98       Altamonte Springs, FL       1972       185       1,135       5,501       295  
Willow Tree     Dec-97       Baytown, TX       1983       100       309       1,810       94  
Willowick     Oct-98       Greenville, SC       1974       180       792       2,698       309  
Winchester Village Apts     Sep-99       Indianapolis, IN       1966       96       14       1,467       785  
Winddrift (IN)     Dec-00       Indianapolis, IN       1980       166       608       5,471        
Windridge     May-98       San Antonio, TX       1983       276       1,480       8,386       449  

[Additional columns below]

[Continued from above table, first column(s) repeated]


Table of Contents

                                                 
    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
The Sterling     5,068       40,241       45,309       5,083       40,226       22,504  
The Stratford     1,920       11,420       13,340       1,860       11,480       5,660  
Thicket     507       2,757       3,264       203       3,061       1,170  
Thurber Manor     513       3,398       3,911       261       3,650       2,214  
Timber Ridge     1,106       6,549       7,654       507       7,148       5,121  
Timberlake     1,247       6,101       7,348       473       6,875       1,940  
Timbermill     778       5,720       6,498       1,310       5,189       3,370  
Timbertree     2,334       14,290       16,625       1,962       14,663       7,415  
Torrey Pines Village     989       5,603       6,592       375       6,217       4,752  
Township I & II     836       22,393       23,229       3,611       19,618       9,027  
Trails Of Ashford     2,650       15,968       18,618       2,452       16,166       8,615  
Treehouse     684       3,984       4,668       304       4,364       2,110  
Treetops     20       113       133             133        
Trinity Apartments     3,669       18,666       22,335       5,955       16,380       8,369  
Tropical Gardens     1,300       8,141       9,441       1,188       8,253       7,793  
Twin Lake Towers     2,647       15,633       18,280       1,450       16,830       10,706  
Twin Lakes     1,595       6,998       8,593       2,131       6,462       7,243  
Victoria Station     648       6,433       7,081       1,968       5,112       3,048  
Villa La Paz     573       3,398       3,971       376       3,596       2,301  
Villa Ladera     2,235       11,339       13,575       2,438       11,137       5,177  
Villa Nova     693       3,134       3,827             3,827       2,231  
Villa Serena     879       4,978       5,857       42       5,815       5,038  
Village     894       4,288       5,181       292       4,889       1,861  
Village Creek At Brookhill     2,446       15,292       17,738       3,930       13,808        
Village Crossing     1,618       10,476       12,093       1,634       10,459       7,000  
Village East     1,120       5,377       6,497       1,911       4,586       2,150  
Village Gardens     808       4,016       4,824       412       4,412       4,518  
Village Green     1,228       6,212       7,440       568       6,871       4,686  
Village Green (AL)     310       4,834       5,144       2,139       3,005       2,323  
Village In The Woods     3,148       16,420       19,567       1,171       18,397       14,262  
Village Of Pennbrook           63,230       63,230       26,064       37,166       19,300  
Villas (VA)     685       4,281       4,966       501       4,466       2,782  
Vinings Peak     2,416       10,970       13,386       874       12,512       8,271  
Vista Del Lagos     1,415       7,574       8,989       2,969       6,020       4,810  
Vista Ventana Apartments     1,908       11,393       13,301       1,720       11,581       6,085  
Walker Springs Apts     501       4,710       5,211       2,079       3,132       2,402  
Walnut Springs     998       6,110       7,109       1,787       5,322       4,058  
Warwick     753       4,628       5,381       351       5,030       2,312  
Waterford     270       6,975       7,245       2,305       4,940       5,413  
Waterways Village     4,504       12,318       16,822       1,954       14,868       7,360  
Weatherly     1,275       7,913       9,188       746       8,443       4,568  
Wellspring     564       9,114       9,678       3,936       5,742       5,399  
West 135th Street     1,131       16,264       17,395       5,336       12,059       3,500  
West Lake Arms Apts     2,966       25,505       28,471       2,247       26,224       15,630  
West Way Village     2,457       8,923       11,380       2,042       9,338       4,753  
West Woods     349       1,980       2,330             2,330       1,934  
Westgate     2,876       10,573       13,449       2,681       10,768       5,920  
Whispering Pines           4,940       4,940       9       4,930       4,148  
Wickertree     1,225       7,385       8,610       1,033       7,577       3,898  
Wildflower     705       5,218       5,923       750       5,172       1,953  
Williams Cove     1,227       7,782       9,009       2,082       6,927       5,507  
Williamsburg     2,717       16,686       19,403       2,579       16,824       11,930  
Williamsburg Apts     1,338       10,844       12,182       974       11,208       7,400  
Williamsburg Manor     1,831       8,436       10,267       1,288       8,978       4,150  
Williamsburg On The Wabash (IN)     2,968       18,628       21,596       612       20,983       12,215  
Willow Park On Lake Adelaide     1,275       5,655       6,930       413       6,518       3,923  
Willow Tree     355       1,858       2,213       148       2,065       1,125  
Willowick     505       3,294       3,799       300       3,499       3,110  
Winchester Village Apts     101       2,164       2,265       1       2,264        
Winddrift (IN)     912       5,167       6,079             6,079       4,917  
Windridge     1,480       8,835       10,315       1,391       8,924       5,955  

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-44


Table of Contents

                                                         
                                    Initial Cost   Cost
                                   
  Capitalized
    Date           Year   Number           Buildings and   Subsequent to
Property Name   Acquired   Location   Built   of Units   Land   Improvements   Acquisition

 
 
 
 
 
 
 
Windrift (FL)     Dec-00       Orlando, FL       1987       290       1,324       11,915        
Windrift Oceanside, CA     Dec-00       Oceanside, CA       1987       409       14       123        
Windsong At Chambrell     Dec-97       Akron, OH       1987       83       522       2,957        
Windsor At South Square     Oct-98       Durham, NC       1972       230       1,632       5,122       213  
Windsor Crossing     Dec-97       Newport News, VA       1978       156       654       2,831       552  
Windsor Hills     Oct-98       Blacksburg, VA       1970       300       1,952       6,946       207  
Windsor Landing     Oct-97       Morrow, GA       1991       200       1,641       9,298       527  
Windsor Park     Dec-00       Woodbridge, VA       1987       220       7       60        
Windward At The Villages     Oct-97       W. Palm Beach, FL       1988       196       1,595       9,037       974  
Wood Lake     Jan-96       Atlanta, GA       1983       220       2,362       8,659       326  
Woodcrest     Dec-97       Odessa, TX       1972       80       41       2,069       1,855  
Woodhaven     Mar-94       Chesapeake, VA       1968       208       1,196       4,987       862  
Woodhill Associates     Dec-96       Denton, TX       1985       352       1,554       8,805       1,275  
Woodhollow     Oct-97       Austin, TX       1974       108       658       3,728       473  
Woodland Ridge     Dec-96       Irving, TX       1984       130       595       3,373       354  
Woodland Village I     Oct-98       Columbia, SC       1970       308       2,078       6,861       766  
Woodlands (MI)     Dec-99       Battle Creek, MI       1987       76       496       3,513       173  
Woodlands/Odessa     Jul-94       Odessa, TX       1982       232       676       3,835       997  
Woodlands/Tyler     Jul-94       Tyler, TX       1984       256       1,029       5,845       948  
Woodmere     Jan-92       Cincinnati, OH       1971       150       995       2,995       509  
Woods Of Inverness     Oct-98       Houston, TX       1983       272       1,897       6,906       483  
Woodshire     Dec-97       Virginia Beach, VA       1972       288       1,306       7,833       594  
Wyckford Commons     Dec-91       Indianapolis, IN       1973       248       1,167       5,475       984  
Wyntre Brook Apts     May-97       West Chester, PA       1976       212       1,257       7,106       548  
Yorktown Apartments     Oct-98       Lombard, IL       1973       368       4,029       12,002       1,334  
Yorktree     Oct-97       Carolstream, IL       1972       293       1,968       11,151       1,678  
                             
     
     
     
 
                              153,872       1,004,395       5,072,011       936,046  
                             
     
     
     
 

[Additional columns below]

[Continued from above table, first column(s) repeated]

                                                 
    December 31, 2000
   
                                    Total Cost Net of
            Building and           Accumulated   Accumulated
Property Name   Land   Improvements   Total   Depreciation   Depreciation   Encumbrances

 
 
 
 
 
 
Windrift (FL)     1,986       11,253       13,239             13,239       8,212  
Windrift Oceanside, CA     20       116       137             137        
Windsong At Chambrell     522       2,957       3,479       57       3,422       3,158  
Windsor At South Square     988       5,979       6,967       512       6,455       2,058  
Windsor Crossing     453       3,585       4,038       699       3,339       3,814  
Windsor Hills     1,601       7,505       9,106       561       8,544       6,840  
Windsor Landing     1,642       9,824       11,466       1,348       10,117       5,124  
Windsor Park     10       56       66             66        
Windward At The Villages     1,595       10,012       11,606       1,357       10,249       4,185  
Wood Lake     1,881       9,466       11,347       744       10,603       7,122  
Woodcrest     41       3,925       3,966       981       2,985       537  
Woodhaven     842       6,203       7,045       1,006       6,039       3,692  
Woodhill Associates     1,554       10,081       11,634       1,720       9,915       9,655  
Woodhollow     658       4,201       4,859       581       4,278       1,969  
Woodland Ridge     595       3,727       4,322       729       3,593       3,224  
Woodland Village I     1,224       8,481       9,705       475       9,230       4,950  
Woodlands (MI)     740       3,442       4,183       428       3,755       2,011  
Woodlands/Odessa     676       4,832       5,508       1,397       4,111        
Woodlands/Tyler     1,029       6,793       7,822       1,808       6,014       3,933  
Woodmere     661       3,839       4,499       100       4,399       2,746  
Woods Of Inverness     1,523       7,762       9,285       591       8,695       4,991  
Woodshire     1,951       7,781       9,732       810       8,922       7,533  
Wyckford Commons     881       6,744       7,625       1,139       6,487       4,500  
Wyntre Brook Apts     808       8,104       8,912       779       8,133       6,575  
Yorktown Apartments     2,519       14,847       17,366       1,188       16,178       12,064  
Yorktree     1,968       12,829       14,797       1,699       13,098       6,244  
     
     
     
     
     
     
     
 
      976,421       6,036,031       7,012,452       913,263       6,099,189       4,031,375  
     
     
     
     
     
     
     
 

F-45


Table of Contents

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

REAL ESTATE AND ACCUMULATED DEPRECIATION
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands)

                             
        2000   1999   1998
       
 
 
Real Estate
  Balance at beginning of year   $ 4,512,697     $ 2,829,902     $ 1,657,207  
  Additions during the year:
    Newly consolidated assets     1,653,886       1,101,134        
    Acquisitions     739,005       462,891       1,116,643  
    Additions     270,779       177,245       80,368  
    Sales/transfers   (163,915 )   (58,475 )   (24,316 )
   
     
     
 
  Balance at end of year   $ 7,012,452     $ 4,512,697     $ 2,829,902  
   
     
     
 
Accumulated Depreciation
  Balance at beginning of year   $ 416,497     $ 228,880     $ 153,285  
  Additions during the year:
    Depreciation     323,321       131,753       84,635  
    Newly consolidated assets     193,246       59,628        
    Sales/transfers   (19,801 )   (3,764 )   (9,040 )
   
     
     
 
  Balance at end of year   $ 913,263     $ 416,497     $ 228,880  
   
     
     
 

F-46


Table of Contents

INDEX TO EXHIBITS

         
Exhibit No.       Description

     
2.1     Second Amended and Restated Agreement and Plan of Merger, dated as of January 22, 1999, by and between Apartment Investment and Management Company and Insignia Properties Trust (Exhibit 2.2 to the Current Report on Form 8-K of Insignia Properties Trust, dated February 11, 1999, is incorporated herein by this reference)
         
2.2     Amended and Restated Agreement and Plan of Merger, dated as of May 26, 1998 by and among Apartment Investment Management Company, AIMCO Properties, L.P., Insignia Financial Group, Inc., and Insignia/ESG Holdings, Inc. (Appendix I to the Prospectus included in AIMCO’s Registration Statement on Form S-4 filed August 5, 1998, is incorporated herein by this reference)
         
2.3     Acquisition Agreement, dated as of June 28, 2000, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., NHP Management Company and AIMCO/NHP Properties, Inc., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit 2.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2000, is incorporated herein by this reference)
         
2.4     Agreement and Plan of Merger, dated as of November 29, 2000, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., AIMCO Properties, L.P., AIMCO/OTEF, LLC and Oxford Tax Exempt Fund II Limited Partnership (Annex A to AIMCO’s Registration Statement on Form S-4 filed on December 1, 2000, is incorporated herein by this reference)
         
3.1     Charter
         
3.2     Bylaws ( Exhibit 3.2 to AIMCO’s Annual Report on Form 10-K for the fiscal year 1999, is incorporated herein by this reference)
         
4.1     Amended and Restated Declaration of Trust of IFT Financing I (formerly Insignia Financing I), dated as of November 1, 1996, among Insignia Financial Group, Inc as Sponsor, First Union National Bank of South Carolina as Property Trustee, First Union Bank of Delaware, as Delaware Trustee and Andrew I. Farkas, John K. Lines and Ronald Uretta as Regular Trustees (Exhibit 4.2 to Form S-3 of Insignia Financial Group, Inc. dated December 10, 1996, is incorporated herein by this reference)
         
4.2     Indenture for the 6.5% Convertible Subordinated Debentures, dated as of November 1, 1996, between Insignia Financial Group, Inc., as Issuer and First Union National Bank of South Carolina, as Trustee (Exhibit 4.3 to Form S-3 of Insignia Financial Group, Inc., dated December 10, 1996, is incorporated herein by this reference)
         
4.3     First Supplemental Indenture, dated as of October 1,1998, by and among Apartment Investment and Management Company, Insignia Financial Group, Inc, and First Union National Bank (formerly First Union National Bank of South Carolina, as Trustee) (Exhibit 4.3 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)
         
10.1     Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of July 29, 1994 as amended and restated as of October 1, 1998 (Exhibit 10.8 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, is incorporated herein by this reference)
         
10.2     First Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 6, 1998 (Exhibit 10.9 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, is incorporated herein by this reference)

 


Table of Contents

         
10.3     Second Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 30, 1998 (Exhibit 10.1 to Amendment No. 1 to AIMCO’s Current Report on Form 8-K/A, filed February 11, 1999, No. 1 to AIMCO’s Current Report on Form 8-K/A, filed is incorporated herein by this reference)
         
10.4     Third Amendment to Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of February 18, 1999 (Exhibit 10.12 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)
         
10.5     Fourth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 25, 1999 (Exhibit 10.2 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1999, is incorporated herein by this reference)
         
10.6     Fifth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 26, 1999 (Exhibit 10.3 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1999, is incorporated herein by this reference)
         
10.7     Sixth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 26, 1999 (Exhibit 10.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1999, is incorporated herein by this reference)
         
10.8     Seventh Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 27, 1999 (Exhibit 10.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1999, is incorporated herein by this reference)
         
10.9     Eighth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 14, 1999 (Exhibit 10.9 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)
         
10.10     Ninth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 21, 1999 (Exhibit 10.10 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)
         
10.11     Tenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 21, 1999 (Exhibit 10.11 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)
         
10.12     Eleventh Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of January 13, 2000 (Exhibit 10.12 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)
         
10.13     Twelfth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of April 19, 2000 (Exhibit 10.2 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2000 is incorporated herein by this reference)
         
10.14     Thirteenth Amendment to the Third and Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of August 7, 2000 (Exhibit 10.1 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended June 30, 2000, is incorporated herein by this reference)

 


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10.15     Fourteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 12, 2000 (Exhibit 10.1 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000, is incorporated herein by this reference)
         
10.16     Fifteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 15, 2000 (Exhibit 10.2 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000, is incorporated herein by this reference)
         
10.17     Sixteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 15, 2000 (Exhibit 10.3 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000 is incorporated herein by this reference)
         
10.18     Seventeenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 10, 2000 (Exhibit 10-4 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000 is incorporated herein by this reference)
         
10.19     Eighteenth Amendment to the Third and Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 16, 2000
         
10.20     Nineteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of February 28, 2001
         
10.21     Twentieth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 19, 2001
         
10.22     Shareholders Agreement, dated October 1, 1998, by and among Apartment Investment and Management Company, Andrew L. Farkas, James A. Aston and Frank M. Garrison (Exhibit 10.4 to AIMCO’s Statement of Beneficial Ownership on Schedule 13D with respect to Insignia Properties Trust filed on October 15, 1998, is incorporated herein by this reference)
         
10.23     Amended and Restated Indemnification Agreement, dated as of May 26, 1998, by and between Apartment Investment and Management Company and Insignia/ESG Holdings, Inc. (Appendix II to the Prospectus included in AIMCO’s Registration Statement on Form S-4, filed August 5, 1998, is incorporated herein by this reference)
         
10.24     ILPI and BAC Agreement, dated as of September 20, 2000 by and among Apartment Investment and Management Company, AIMCO Properties, L.P. and AIMCO/ NHP Properties, Inc ., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit (B) of the Statement of Beneficial Ownership on Schedule 13D of Oxford Tax Exempt Fund II Limited Partnership with respect to AIMCO dated September 20, 2000, is incorporated herein by this reference)
         
10.25     Option Sale Agreement , dated as of September 20, 2000 by and among Apartment Investment and Management Company, AIMCO Properties, L.P., NHP Management Company and AIMCO/NHP Properties, Inc., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit (C) of the Statement of Beneficial Ownership on Schedule 13D of Oxford Tax Exempt Fund II Limited Partnership with respect to AIMCO dated September 20, 2000 is incorporated herein by this reference)
         
10.26     Employment Contract, executed on July 29, 1994, by and between AIMCO Properties, L.P., and Peter Kompaniez (Exhibit 10.44A to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by this reference)*
         
10.27     Employment Contract executed on July 29, 1994 by and between AIMCO Properties, L.P. and Terry Considine (Exhibit 10.44C to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by this reference)*
         
10.28     Employment Contract executed on July 29, 1994 by and between AIMCO Properties, L.P. and Steven D. Ira (Exhibit 10.44D to AIMCO’s Annual Report on Form 10-K for year ended December 31, 1994, is incorporated herein by this reference)*

 


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10.29     Apartment Investment and Management Company 1998 Incentive Compensation Plan (Annex B to AIMCO’s Proxy Statement for Annual Meeting of Stockholders to be held on May 8, 1998, is incorporated herein by this reference)*
         
10.30     Apartment Investment and Management Company 1997 Stock Award and Incentive Plan (October 1999) (Exhibit 10.26 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by this reference)*
         
10.31     Form of Restricted Stock Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.11 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1997, is incorporated herein by this reference)*
         
10.32     Form of Incentive Stock Option Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.42to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)*
         
10.33     Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan, adopted August 29, 1996 (Exhibit 10.8 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1996, is incorporated herein by this reference)*
         
10.34     Amended and Restated Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan (Annex B to AIMCO’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 24, 1997, is incorporated herein by this reference)*
         
10.35     The 1994 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P., and Subsidiaries (Exhibit 10.40 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*
         
10.36     Amendment to the 1994 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P. and Subsidiaries (Exhibit 10.41 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*
         
10.37     The 1996 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P., and Subsidiaries, as amended March 20, 1997 (Exhibit 10.42 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*
         
10.38     Insignia 1992 Stock Incentive Plan, as amended through March 28, 1994 and November 13, 1995 (Exhibit 10.1 to Insignia Financial Group, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*
         
10.39     NHP Incorporated 1990 Stock Option Plan (Exhibit 10.9 to NHP Incorporated Annual Report on Form 10-K for the year ended December 31, 1995, is incorporated herein by this reference)*
         
10.40     NHP Incorporated 1995 Incentive Stock Option Plan (Exhibit 10.10 to NHP Incorporated Annual Report on Form 10-K for the year ended December 31, 1995, is incorporated herein by this reference)*
         
10.41     Summary of Agreement for Sale of Stock to Executive Officers (Exhibit 10.104 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1996, is incorporated herein by this reference)*
         
21.1     List of Subsidiaries
         
23.1     Consent of Ernst & Young LLP
         
99.1     Agreement re: disclosure of long-term debt instruments


(1)   Schedule and supplemental materials to the exhibits have been omitted but will be provided to the Securities and Exchange Commission upon request.
     
    *    Management contract