APARTMENT INVESTMENT & MANAGEMENT CO

AIMCO (AIV) to Liquidate: A Critical Update for Investors

Apartment Investment & Management Co. (AIMCO, NYSE: AIV), an apartment development and redevelopment company, will soon cease operations. Shareholders have approved a plan to liquidate all its assets, wind down operations, and dissolve completely. This marks a full dissolution, separate from its earlier split from Apartment Income REIT (AIR, NYSE: AIR).

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Event Description

On February 6, 2026, AIMCO (AIV) shareholders approved a plan for complete liquidation and dissolution. This means AIMCO will sell all its properties and other assets, pay its debts, and then distribute the remaining cash to shareholders. This is a full exit from the market, not a merger, acquisition, or other reorganization.

AIMCO's Board of Directors and management determined that a full liquidation offers the best way to maximize shareholder value. They believe selling assets and distributing the net proceeds will unlock and return more value to shareholders than continuing as a standalone development company. This decision likely reflects a strategic assessment of market conditions, the capital-intensive nature of development, and the potential for individual asset sales to achieve higher valuations than if the portfolio remained part of a publicly traded entity.

The liquidation will proceed in several stages. AIMCO will sell its development projects, land holdings, and other assets. Following this, it will settle liabilities and make periodic cash distributions to shareholders. Eventually, AIMCO (AIV) stock will be delisted, and the company will formally dissolve.

Event Date/Timeline

• January 2, 2026: AIMCO (AIV) sent shareholders a detailed proxy statement outlining the liquidation proposal.
• February 6, 2026: Shareholders held a special meeting and officially approved the liquidation plan.
• Late 2020: AIMCO originally separated into two distinct public companies: development-focused AIMCO (AIV) and stabilized-asset focused Apartment Income REIT (AIR).

Who and What This Affects

• AIMCO (AIV) Shareholders: Your investment will fundamentally change. You will eventually receive cash distributions as the company winds down.
• Employees: AIMCO (AIV) will eventually terminate staff employment as operations cease during the liquidation process.
• Tenants: Residents in AIMCO (AIV) properties will likely have their buildings sold to new landlords. Existing lease agreements generally remain valid during these transitions.
• Management: The current management team will oversee the complex liquidation process, and their roles will conclude upon the company's dissolution.
• Apartment Income REIT (AIR) Shareholders: This liquidation does not directly impact your investment, as AIR is a completely separate company.

Financial Implications

• The ultimate cash value shareholders receive per share is uncertain. It will depend on the prices AIMCO realizes from asset sales, the costs of liquidation, and the settlement of liabilities.
• AIMCO expects to make periodic cash distributions to shareholders as it sells assets and settles liabilities, rather than a single lump sum.
• The company has not yet provided a specific estimated net asset value (NAV) per share or an estimated range of liquidation proceeds per share. This means there's still a lot of uncertainty around the final payout.
• The liquidation process will incur various costs, including professional fees, administrative expenses, and potential severance. These costs will reduce the net proceeds available for shareholder distribution.
• Upon approving the liquidation plan, AIMCO will reclassify its balance sheet assets and liabilities to reflect its intent to liquidate, typically as "assets held for sale" and related liabilities.
• The company's stock price will likely increasingly reflect the market's estimate of the net liquidation value, rather than future earnings potential.

Key Takeaways for Investors

This event is critical for investors, especially those holding AIMCO (AIV) stock:

• Investment Transformation: If you own AIMCO (AIV) shares, your investment will shift from ownership in an ongoing business to a right to receive cash from the liquidation process.
• Liquidation Process: The liquidation involves asset sales, liability settlements, and then periodic cash distributions. This complex process could take a significant amount of time, potentially extending over months or even years.
• Uncertain Final Value: The ultimate cash value you receive per share is uncertain. Net proceeds could be lower than current market expectations or the company's book value.
• No Ongoing Business: Understand that your investment in AIV is no longer in an operating company with future growth potential. Instead, it represents a claim on the net proceeds from its asset sales.
• Delisting: Once the liquidation is largely complete and all distributions are made, the New York Stock Exchange will delist AIMCO's (AIV) stock.
• Tax Implications: Shareholders will face significant tax implications from these distributions. These may include capital gains taxes on amounts received above your cost basis, or potentially a return of capital, depending on the company's earnings and profits. We strongly recommend that all shareholders consult a qualified tax professional.
• Monitor Company Announcements: Stay informed by closely following AIMCO's (AIV) SEC filings and press releases for updates on asset sales, estimated distribution amounts, and timelines.
• AIR is Unaffected: It is crucial to remember that Apartment Income REIT (AIR) is a completely separate company and is NOT being liquidated. If you own AIR shares, your investment continues as usual.