APARTMENT INVESTMENT & MANAGEMENT CO Material Event - What Happened

Hey there! Let's break down what's going on with APARTMENT INVESTMENT & MANAGEMENT CO (you might know them as Aimco). Think of this as me explaining a news story to you over coffee, without all the confusing business talk.

---

1. What happened? (The actual event, in plain English)

Okay, so imagine Aimco owns a bunch of apartment buildings. Recently, they decided to split their company into two separate, publicly traded companies. It's like they took their big business and carefully cut it in half, creating two distinct companies that will each focus on different things.

One new company, which will keep the name Apartment Income REIT (AIR), will own and manage most of their existing, stable apartment buildings. The other new company, which will keep the name Aimco, will focus on developing new apartment buildings and redeveloping older ones.

2. When did it happen?

This big split officially happened on December 15, 2020. That's when the two new companies officially started trading separately on the stock market.

3. Why did it happen? (The backstory)

Think of it this way: Aimco used to do two main things – own and manage a lot of established apartment buildings (like being a landlord for many properties) AND build new ones or fix up old ones (like being a developer). These are two very different jobs!

The company felt that by splitting, each new company could do its job better.

• AIR (the landlord part) can focus on being super efficient with its existing properties, collecting rent, and providing stable income. Investors who like steady, predictable returns might prefer this.
• Aimco (the developer part) can focus on the riskier, but potentially more rewarding, business of building and renovating. Investors who are looking for growth and are okay with more risk might prefer this.

Basically, they wanted to give each part of their business a clearer focus and allow different types of investors to choose which kind of business they wanted to put their money into.

4. Why does this matter? (The "So What?")

This is a pretty big deal because it fundamentally changes what "Aimco" is.

• For the original Aimco: It no longer exists in its old form. It's now two distinct entities.
• For the new AIR: It's now a company focused purely on owning and operating a portfolio of high-quality, stable apartment communities. It's designed to be a more predictable, income-generating investment.
• For the new Aimco: It's now a company focused on growth through development and redevelopment. This means it might have more ups and downs, but also potentially bigger gains if its projects are successful.

It's like a restaurant that used to serve both fancy dinners and quick lunches deciding to open two separate restaurants: one for fine dining and one for fast casual. Each can now excel at its specific niche. However, as we'll see, the journey for the 'new Aimco' (the development arm) took another significant turn a few years later.

5. Who is affected?

• Investors (you!): If you owned shares of the old Aimco, you now own shares in both the new AIR and the new Aimco. Your investment has been divided. You'll need to understand what each new company does. For those holding shares of the 'new Aimco' (the development company), a major strategic shift in late 2025 will significantly impact your investment, as the company plans to sell off its assets and liquidate.
• Employees: While the core jobs might remain, some roles might shift between the two new companies, or new roles might be created to support the separate structures. For employees of the 'new Aimco' (the development company), a planned liquidation in 2025 will likely mean significant changes, including potential job impacts as the company winds down.
• Tenants: For the most part, tenants in the existing apartment buildings probably won't notice much difference day-to-day, as the management of their building will likely continue under AIR.
• Future Tenants/Partners: People looking for new apartments or partners for development projects will now deal with the specific new company that handles those activities. However, for the 'new Aimco', its future development projects will cease as it moves towards liquidation.

6. What happened after the split, and what's happening next for the "New Aimco"? (Immediate and future implications)

The original split happened in December 2020, creating AIR and the new Aimco. Both companies then began operating independently.

Fast forward to December 2025: A major new development has emerged for the "new Aimco" (the development and redevelopment company, which kept the original "Aimco" name and ticker AIV after the split).

• The "New Aimco" Plans to Liquidate: The Board of Directors of the "new Aimco" approved a "Plan of Sale and Liquidation" in November 2025. This means the company intends to sell off its assets (like its development projects and land) and eventually close down, distributing the money from these sales to its shareholders. This is a complete shift from its original mission of growing through development.
• Incentivizing the CEO for Liquidation: To ensure a smooth process, the company entered into a special agreement with its CEO, Wesley Powell, on December 26, 2025.
  • He will receive an accelerated 2025 cash bonus of $1,470,000 and a $5,250,000 retention award. These payments are designed to keep him motivated to successfully execute the liquidation plan and to help him with potential tax implications.
  • There are conditions: Mr. Powell generally needs to stay with the company through the liquidation process (or until a certain date if the plan isn't approved) to keep these payments. If he resigns or is fired for cause prematurely, he might have to pay some of it back.
• Future for the "New Aimco": Assuming the liquidation plan is approved by its stockholders, the "new Aimco" will focus on an orderly wind-down, selling its properties and distributing cash to shareholders. Its days as an active development company are coming to an end.
• Future for AIR: AIR (the stable apartment ownership company) continues to operate independently, unaffected by this liquidation plan for the "new Aimco."

7. What should investors/traders know? (Practical takeaways)

• Check your portfolio (for the 2020 split): If you owned the old Aimco stock, you now own shares in both the new AIR and the new Aimco. Make sure your brokerage account reflects this correctly.
• Understand the difference (post-2020 split): AIR is generally seen as more stable and income-focused. The "new Aimco" (the development company) was initially more growth-oriented with higher risk.
• Major Change for "New Aimco" Investors: If you hold shares of the "new Aimco" (AIV), understand that the company is now planning to liquidate. This means its strategy has shifted from growth to winding down operations and returning capital to shareholders. This is a very different investment proposition than what was originally intended after the 2020 split.
• Re-evaluate your investment: Ask yourself: Do I want to own a company that is liquidating? Does this fit my investment goals? You might decide to sell your shares in the "new Aimco" or hold them through the liquidation process to receive distributions.
• Watch their performance: Keep an eye on the news and financial reports for both AIR and the "new Aimco." Their success will now be judged independently. For the "new Aimco," performance will be measured by how effectively it executes its liquidation plan.

This split was a strategic move to unlock more value, but it means you, as an investor, now have two distinct companies to understand and manage, with one of them (the "new Aimco") now planning for a complete wind-down!