Aimco Sells Four Properties and Declares Special Dividend
Aimco Concludes Sale of Four Properties
Apartment Investment and Management Company ("Aimco" or the "Company") has successfully finalized the sale of four properties, showcasing its strategic focus on maximizing value for its shareholders. The sale, valued at $490 million, marks a significant milestone in Aimco's ongoing efforts to streamline operations and enhance its financial position.
Special Dividend Announcement
In conjunction with this successful sale, Aimco's Board of Directors declared a special cash dividend of $2.23 per share, set to benefit stockholders of record. This decision underscores Aimco's commitment to returning capital to shareholders and reflects the company’s strong financial performance. The dividend demonstrates the company’s strategy to leverage asset sales to reward its investors.
Execution of Asset Sales
Wes Powell, Aimco's President and CEO, expressed gratitude to the buyer, Harbor Group International, and acknowledged the support from financial advisors Morgan Stanley and Walker & Dunlop. He remarked that the timely execution of these asset sales strengthens Aimco’s dedication to enhancing stockholder value. The proceeds from the sale will play a pivotal role in reducing the company's outstanding debts and completing financial strategies to streamline operations.
Details of the Sold Properties
The properties involved in this successful transaction include Royal Crest Estates in Marlboro, Royal Crest Estates in Warwick, Waterford Village, and Wexford Village. Part of the proceeds will be used to retire mortgage loans specifically associated with Royal Crest Estates in Marlboro. Aimco plans to use the remaining funds to pay off the balance on its revolving credit facility, reflecting the company's prudential financial management.
Future Sales and Financial Outlook
Aimco is not stopping here. The company also has Royal Crest Estates in Nashua under contract for sale, anticipated to close soon. This property is expected to fetch approximately $250 million. Moreover, a further two properties in Miami's Brickell neighborhood are on track to close in late 2025 for $520 million, positioning Aimco to potentially realize $1.26 billion in total dispositions.
Debt Reduction and Shareholder Returns
With these dispositions, Aimco expects to achieve about $785 million in net proceeds after satisfying associated liabilities, with plans to pay down around $100 million in incremental debt. Ultimately, shareholders could see returns ranging between $4.00 and $4.20 per share, showcasing the company’s strategic management plan focused on enhancing shareholder value.
Strategic Focus on Shareholder Value
Aimco is actively exploring additional strategic transactions, which may include asset sales or even considering a merger. The company remains committed to maximizing stockholder value, actively engaging with advisory teams to identify optimal paths forward.
Special Dividend Payment Process
As the special dividend represents more than 25% of the share price, the New York Stock Exchange has advised that the common shares will trade with "due bills" from the record date until the payment date. This process guarantees that shares sold during this period still entitle the seller to receive the special dividend.
Investment Transparency
Aimco will provide updates as new developments arise regarding ongoing transactions or new strategies. The company acknowledges the importance of transparency and will communicate key updates to shareholders in a timely manner.
Frequently Asked Questions
What is the amount of the special dividend?
The special dividend announced by Aimco is $2.23 per share.
How will asset sales benefit shareholders?
The proceeds from the asset sales are aimed at reducing debt and providing direct returns to shareholders through the special dividend.
What properties were included in the latest sale?
The properties sold include Royal Crest Estates in Marlboro and Warwick, Waterford Village, and Wexford Village.
When will the special dividend be paid?
The dividend is expected to be paid to shareholders of record shortly after the established record date.
How does Aimco ensure shareholder value?
Aimco continuously explores strategic opportunities and asset sales to enhance capital returns to shareholders and maximize overall value.
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