UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15 OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1999
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 84-1259577
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
TOWER
TWO, SUITE 2-1000,
DENVER, CO 80222-7900
(Address of
principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (303) 757-8101
Securities Registered Pursuant to Section 12(b) of the Act:
NAME
OF EACH EXCHANGE
TITLE OF EACH CLASS ON WHICH REGISTERED
------------------- ---------------------
Class
A Common Stock New York Stock Exchange
Class
C Cumulative Preferred Stock New York Stock Exchange
Class
D Cumulative Preferred Stock New York Stock Exchange
Class
G Cumulative Preferred Stock New York Stock Exchange
Class
H Cumulative Preferred Stock New York Stock Exchange
Class
K Convertible Cumulative Preferred Stock 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 or any amendment to this Form 10-K. [ ]
As of February 29, 2000, there were
67,096,142 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 $2,482.6 million as of February 29, 2000.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the proxy statement for the
registrant's 2000 annual meeting of stockholders are incorporated by reference
into Part III of this Annual Report.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
TABLE OF CONTENTS
ANNUAL REPORT ON FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1999
ITEM
PAGE
---- ----
PART I
1.
Business....................................................
1999
Developments...........................................
Financial Information About Industry
Segments...............
Operating and Financial
Strategies..........................
Growth
Strategies...........................................
Property Management
Strategies..............................
Taxation of the Company.....................................
Competition.................................................
Regulation..................................................
Insurance...................................................
Employees...................................................
2.
Properties..................................................
3.
Legal Proceedings...........................................
4.
Submission of Matters to a Vote of Security Holders.........
PART II
5. Market for the Registrant's Common Equity
and Related
Stockholder
Matters.........................................
6. Selected Financial
Data.....................................
7. Management's Discussion and Analysis of
Financial Condition
and Results
of Operations...................................
7a.
Quantitative and Qualitative Disclosures About Market
Risk........................................................
8. Financial Statements and Supplementary
Data.................
9. Changes in and Disagreements with
Accountants on Accounting
and
Financial Disclosure....................................
PART III
10. Directors
and Executive Officers of the Registrant..........
11. Executive
Compensation......................................
12. Security
Ownership of Certain Beneficial Owners and
Management..................................................
13. Certain
Relationships and Related Transactions..............
PART IV
14. Exhibits,
Financial Statement Schedule and Reports on Form
8-K.........................................................
PART I
ITEM 1. BUSINESS.
Apartment Investment and Management
Company ("AIMCO"), a Maryland corporation formed on January 10, 1994,
is a self-administered and self-managed REIT engaged in the ownership,
acquisition, development, expansion and management of multi-family apartment
properties. As of December 31, 1999, we owned or managed 363,462 apartment
units in 1,942 properties located in 48 states, the District of Columbia and
Puerto Rico. Based on apartment unit data compiled by the National Multi
Housing Council, we believe that, as of December 31, 1999, we were the largest
owner and manager of multifamily apartment properties in the United States. As
of December 31, 1999, we:
- owned or controlled 106,148 units in
373 apartment properties;
- held an equity interest in 133,113
units in 751 apartment properties; and
- managed 124,201 units in 818 apartment
properties for third party owners
and affiliates.
We conduct substantially all of our
operations through our operating partnership, AIMCO Properties, L.P. Through a
wholly-owned subsidiary, we act as the sole general partner of the AIMCO
operating partnership. As of December 31, 1999, we owned approximately a 91%
interest in the AIMCO operating partnership. We manage apartment properties for
third parties and affiliates through unconsolidated subsidiaries that we refer
to as the "management companies." Generally, when we refer to
"we," "us" or the "Company" in this annual report
on Form 10-K, we are referring to AIMCO, the AIMCO operating partnership, the
management companies and their respective subsidiaries. We refer to interests
in the AIMCO operating partnership that are held by third parties 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.
1999 DEVELOPMENTS
Individual Property Acquisitions
The Company directly acquired 28
apartment communities in unrelated transactions during 1999 (not including
those acquired in connection with the merger with Insignia Properties Trust,
"IPT"). 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, 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. The
Company has budgeted an additional $23.9 million for initial capital
enhancements related to these properties.
Tender Offers
During 1999, the Company made separate
offers to the limited partners of approximately 600 partnerships to acquire
their limited partnership interests. The Company paid approximately $271
million in cash and OP Units to acquire limited partnership interests pursuant
to the offers.
Property Dispositions
In 1999, the Company sold 63 properties
for an aggregate sales price of approximately $426.0 million. Net cash proceeds
to the Company from the sales of $135.8 million were used to repay a portion of
the Company's outstanding short-term indebtedness. The results of operations of
55 of these properties were accounted for by the Company under the equity
method.
2
Debt Assumptions and Financings
In August 1999, the Company closed a $300
million revolving credit facility arranged by Bank of America, N.A. BankBoston,
N.A. and First Union National Bank and comprised of a total of nine lender
participants. The obligations under the new credit facility are secured by
certain non-real estate assets of the Company. The existing lines of credit
were terminated. The credit facility is used for general corporate purposes and
has a two-year term with two one-year extensions. 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, 1999 was 8.84%. The amount
available under the credit facility at December 31, 1999 was $90.8 million.
During the year ended December 31, 1999,
the Company issued $410.3 million of long-term fixed rate, fully amortizing
non-recourse mortgage notes payable with a weighted average interest rate of
7.3%. Each of the notes is individually secured by one of forty properties with
no cross-collateralization. The Company used the net proceeds after transaction
costs of $373.6 million to repay existing debt. During the year ended December
31, 1999, the Company has also assumed $110.1 million of long-term fixed rate,
fully amortizing notes payables with a weighted average interest rate of 7.9%
in connection with the acquisition of properties. Each of the notes is
individually secured by one of thirteen properties with no
cross-collateralization.
Equity Offerings
In 1999, the Company raised proceeds of
$304.6 million in one public offering and two direct placements of equity
securities (excluding equity issued in connection with the completion of the
IPT merger discussed below and in connection with the purchase of real estate
and limited partnership interests). These transactions are summarized below:
NUMBER TOTAL PROCEEDS DIVIDEND OR
OF IN DISTRIBUTION
TRANSACTION TYPE DATE SHARES
MILLIONS RATE
----------- ----
---- --------- -------------- ------------
Class K Convertible Cumulative
Preferred Stock of AIMCO...........
Public Feb. 1999 5,000,000 $125.0
(1)
Class L Convertible Cumulative
Preferred Stock of AIMCO...........
Direct May 1999 5,000,000 125.0
(2)
Class A Common Stock of
AIMCO........ Direct Sept. 1999 1,382,580 54.6
------
TOTAL PROCEEDS
1999................................................... $304.6
======
(1) For three years from the
date of original issuance, the Class K Preferred
Stock dividend will be 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 (or
portion thereof) into which a share of
Class K Preferred Stock is
convertible. Beginning with the third
anniversary of the date of original
issuance, the Class K Preferred Stock
dividend per share will be increased
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 (or portion thereof)
into which a share of Class K
Preferred Stock is convertible.
(2) For three years from the
date of original issuance, the Class L Preferred
Stock dividend will be 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 holder 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.
3
Insignia Properties Trust Merger
As a result of the Insignia merger on
October 1, 1998, 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 AIMCO
Class A Common Stock, resulting in the issuance of approximately 4.3 million
shares of AIMCO Class A Common Stock (valued at approximately $158.8 million).
Pending Acquisitions
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. As of February 29, 2000, the Company had under contract or
letter of intent an aggregate of 10 multi-family apartment properties with a
maximum aggregate purchase price of $107.6 million, including estimated capital
improvements, which, in some cases, may be paid in the form of assumption of
existing debt. All such contracts are subject to termination by the Company as
described above. No assurance can be given that any of these possible
acquisitions will be completed or, if completed, that they will be accretive on
a per share basis.
FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS
The Company operates in one industry
segment, the ownership and management of real estate properties. See the
consolidated financial statements and notes thereto included elsewhere in this
Annual Report on Form 10-K for financial information relating to the Company.
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 48 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 175 local markets. In 1999,
the largest single market
contributed 7% to net income before
depreciation and interest expense,
and the five largest markets
contributed 32%.
- 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. For the period from 1997
through 2000, annual population
and employment growth rates in AIMCO's
five largest regional markets are
forecasted to be 2.2% and 3.6%,
respectively.
- 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.
4
- 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.
- 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 a ratio of earnings before
interest, income taxes, depreciation and
amortization (with certain adjustments
and after a provision of
approximately $300 per owned apartment
unit) to debt service of at least
2:1, and to match debt maturities to
the character of the assets
financed. For the year ended December
31, 1999, 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, 1999,
approximately 9% of AIMCO's
outstanding debt was short-term debt
and 91% was long-term debt.
- Dispositions. The Company regularly
sells properties that do not meet its
return on investment criteria or that
are located in areas where AIMCO
does not believe that the long-term
neighborhood values justify the
continued investment in the properties.
- Dividend Policy. AIMCO pays dividends
on its Class A Common Stock to
share its profitability with its
stockholders. The Company distributed
61.3%, 65.8% and 66.5% of FFO to
holders of Class A Common Stock for the
years ended December 31, 1999, 1998 and
1997, 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 10%
of total equity market capitalization.
5
- Ancillary Services. The Company believes
that its ownership and
management of properties provides it
with unique access to a customer
base that allows us 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 1,942 apartment
properties with 363,462 units as of December 31, 1999. 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 believes that its property
management operations support 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.
- 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 tender offers with
respect to approximately 1,000
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. AIMCO's management
operations are organized into 31 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
6
Company would not be compelled
to make distributions under the 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 properties also
compete for residents with new and existing and 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
Multifamily 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, 1999, the Company owned
or controlled 27 properties and held an equity interest in 434 properties with
a combined weighted average ownership percentage of 24%. AIMCO also managed for
third parties and affiliates 477 properties that benefit from governmental
programs intended to provide housing to people with low or moderate incomes.
These programs, which are usually administered by the United States Department
of Housing and Urban Development ("HUD") or state housing finance
agencies, typically
7
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." The Company had three unresolved flags in the 2530
system as of December 31, 1999, which the Company believes will not have a material
effect on its ability to receive 2530 approval. The Company can make no
assurance, however, that it will always receive such approval.
Environmental
The Company is subject to various
Federal, state and local laws that impose liability on property owners or
operators 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 our 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. The Company also is subject to various laws that
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, we could potentially
be liable for environmental liabilities or costs associated with our properties
or properties we may acquire or manage in the future.
INSURANCE
Management believes that the Company's
properties are covered by adequate fire, 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 12,500 employees, most of whom are employed at the property
level. None of the employees are represented by a union, and the Company has
never experienced a work stoppage. The Company believes it maintains
satisfactory relations with its employees.
8
ITEM 2. PROPERTIES.
The Company's properties are located in
48 states, Puerto Rico and the District of Columbia. The properties are managed
by four Division Vice-Presidents controlling 31 regional operating centers. The
following table sets forth information for the regional operating centers as of
December 31, 1999:
NUMBER OF NUMBER OF
REGIONAL
OPERATING CENTER
DIVISION PROPERTIES UNITS
------------------------- -------- ---------- ---------
Chicago,
IL..........................................
Far West 57 10,761
Denver,
CO...........................................
Far West 84 14,279
Kansas
City, MO......................................
Far West 72 11,094
Los
Angeles, CA...................................... Far West 53 9,505
Oakland,
CA..........................................
Far West 69 8,013
Phoenix,
AZ..........................................
Far West 52 13,008
----- -------
387 66,660
----- -------
Allentown,
PA........................................
East 116 9,693
Columbia,
SC.........................................
East 73 13,767
Greenville,
SC.......................................
East 86 12,016
Philadelphia,
PA.....................................
East 62 19,512
Rockville,
MD........................................
East 62 16,881
Tarrytown,
NY........................................
East 67 9,413