DB:AIV1

Stock Analysis Report

Apartment Investment and Management

Executive Summary

Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States.

Rewards

Trading at 19.5% below its fair value

Pays a high and reliable dividend of 3.01%

Risk Analysis

Earnings are forecast to decline by an average of -48.9% per year for the next 3 years

Large one-off items impacting financial results

Profit margins (37.2%) are lower than last year (92.2%)



Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Apartment Investment and Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIV1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

AIV1

2.8%

DE REITs

0.06%

DE Market


1 Year Return

11.8%

AIV1

34.4%

DE REITs

14.8%

DE Market

Return vs Industry: AIV1 underperformed the German REITs industry which returned 32.9% over the past year.

Return vs Market: AIV1 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

AIV1IndustryMarket
7 Day2.6%2.8%0.06%
30 Day4.4%7.0%1.8%
90 Day-2.5%6.9%7.1%
1 Year14.4%11.8%39.1%34.4%18.4%14.8%
3 Year20.7%10.1%41.4%21.3%17.4%7.0%
5 Year49.2%27.6%44.7%13.6%27.9%10.4%

Price Volatility Vs. Market

How volatile is Apartment Investment and Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Apartment Investment and Management undervalued compared to its fair value and its price relative to the market?

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIV1 (€45.8) is trading below our estimate of fair value (€56.87)

Significantly Below Fair Value: AIV1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AIV1 is poor value based on its PE Ratio (22.7x) compared to the REITs industry average (8.9x).

PE vs Market: AIV1 is poor value based on its PE Ratio (22.7x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: AIV1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AIV1 is overvalued based on its PB Ratio (4.5x) compared to the DE REITs industry average (1.6x).


Next Steps

Future Growth

How is Apartment Investment and Management forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-31.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIV1's earnings are forecast to decline over the next 3 years (-48.9% per year).

Earnings vs Market: AIV1's earnings are forecast to decline over the next 3 years (-48.9% per year).

High Growth Earnings: AIV1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AIV1's revenue (3.3% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: AIV1's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIV1's Return on Equity is forecast to be high in 3 years time (28.7%)


Next Steps

Past Performance

How has Apartment Investment and Management performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIV1 has a large one-off gain of $354.7M impacting its September 30 2019 financial results.

Growing Profit Margin: AIV1's current net profit margins (37.2%) are lower than last year (92.2%).


Past Earnings Growth Analysis

Earnings Trend: AIV1's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: AIV1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AIV1 had negative earnings growth (-63%) over the past year, making it difficult to compare to the REITs industry average (96.7%).


Return on Equity

High ROE: AIV1's Return on Equity (19.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Apartment Investment and Management's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AIV1 has a high level of physical assets or inventory.

Debt Coverage by Assets: AIV1's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: AIV1's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AIV1 has a sufficient allowance for bad loans.

Low Risk Liabilities: AIV1 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AIV1 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AIV1 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AIV1 has an appropriate level of bad loans.


Next Steps

Dividend

What is Apartment Investment and Management's current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.5%industryaverage2.9%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: AIV1's dividend (3.01%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: AIV1's dividend (3.01%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: AIV1's dividends per share have been stable in the past 10 years.

Growing Dividend: AIV1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.2%), AIV1's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AIV1's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

What is the CEO of Apartment Investment and Management's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average management tenure


CEO

Terry Considine (71yo)

25.5yrs

Tenure

US$6,773,403

Compensation

Mr. Terry Considine, J.D., serves as the Chairman of the Board and Chief Executive Officer at Apartment Investment and Management Company. Mr. Considine has been at Apartment Investment and Management Com ...


CEO Compensation Analysis

Compensation vs Market: Terry's total compensation ($USD6.77M) is above average for companies of similar size in the German market ($USD3.59M).

Compensation vs Earnings: Terry's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.0yrs

Average Tenure

50yo

Average Age

Experienced Management: AIV1's management team is seasoned and experienced (10 years average tenure).


Board Age and Tenure

12.8yrs

Average Tenure

71.5yo

Average Age

Experienced Board: AIV1's board of directors are seasoned and experienced ( 12.8 years average tenure).


Insider Trading

Insider Buying: AIV1 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€4,559,42231 Dec 19
Terry Considine
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares100,000
Max Price€45.66
Sell€108,49020 Aug 19
Kathleen Nelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,400
Max Price€45.20
Sell€279,87024 May 19
Miles Cortez
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares6,205
Max Price€45.10
Sell€896,48311 Mar 19
Patti Fielding
EntityIndividual
Shares20,272
Max Price€44.22
Sell€1,093,19719 Feb 19
Keith Kimmel
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Property Operations
Shares24,243.83
Max Price€45.09
Sell€414,99619 Feb 19
Miles Cortez
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares9,212.65
Max Price€45.05
Sell€4,368,82313 Feb 19
Terry Considine
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares96,975.3
Max Price€45.05

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Terry Considine (71yo)

    Chairman & CEO

    • Tenure: 25.5yrs
    • Compensation: US$6.77m
  • Miles Cortez (75yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 12.1yrs
    • Compensation: US$947.55k
  • Patti Shwayder

    Senior Vice President of Government Relations & Communications

    • Tenure: 17.3yrs
  • Paul Beldin (45yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$1.77m
  • H. Lynn Stanfield (44yo)

    Executive Vice President of Financial Planning & Analysis and Capital Allocation

    • Tenure: 9.5yrs
  • Keith Kimmel (47yo)

    Executive Vice President of Property Operations

    • Tenure: 9yrs
    • Compensation: US$1.63m
  • Lisa Cohn (50yo)

    Executive VP

    • Tenure: 12.1yrs
    • Compensation: US$2.17m
  • John Bezzant (56yo)

    Executive VP & Chief Investment Officer

    • Tenure: 6.4yrs
    • Compensation: US$2.38m
  • Jennifer Johnson

    Senior Vice President of Human Resources

    • Tenure: 10.4yrs
  • Suzie Sorkin

    Vice President of Investor Relations/FP&A

    • Tenure: 1.8yrs

Board Members

  • Tom Keltner (72yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$221.04k
  • Mike Stein (69yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$221.04k
  • Terry Considine (71yo)

    Chairman & CEO

    • Tenure: 25.5yrs
    • Compensation: US$6.77m
  • Lanny Martin (73yo)

    Lead Independent Director

    • Compensation: US$221.04k
  • Kathleen Nelson (73yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$221.04k
  • Bob Miller (73yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$221.04k
  • Nina Tran (51yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$221.04k
  • Ann Sperling (63yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$166.09k

Company Information

Apartment Investment and Management Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apartment Investment and Management Company
  • Ticker: AIV1
  • Exchange: DB
  • Founded: 1994
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$8.338b
  • Market Cap: US$7.039b
  • Listing Market Cap: US$7.490b
  • Shares outstanding: 158.43m
  • Website: https://www.aimco.com

Number of Employees


Location

  • Apartment Investment and Management Company
  • 4582 South Ulster Street
  • Suite 1100
  • Denver
  • Colorado
  • 80237
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIVNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJul 1994
AIV1DB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 1994

Biography

Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with ownership interests in 128 apartment communities in 17 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 20:34
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.