APARTMENT INVESTMENT & MANAGEMENT CO: AIMCO Initiates Liquidation, Announces $1.45 Per Share Distribution

Apartment Investment & Management Co (AIMCO) has announced a significant strategic shift: the company is winding down its operations through a "Plan of Sale and Liquidation." As part of this plan, AIMCO will sell nearly all its remaining properties and return the proceeds directly to shareholders.

The company has declared a liquidating distribution of $1.45 per share. This payment, unlike a regular dividend, is a return of capital, which typically reduces shareholders' cost basis and carries distinct tax implications.

AIMCO has already made substantial progress, entering into agreements to sell 12 properties to four different buyers for approximately $680 million. The company has secured $30 million in non-refundable deposits for these sales, demonstrating strong buyer commitment.

Key Dates and Liquidation Timeline

AIMCO announced these plans on February 9, 2026.

• The $1.45 per share liquidating distribution will be paid on March 13, 2026, to shareholders recorded as of February 27, 2026.
• Closings for the 12 properties currently under contract are expected in the second quarter of 2026.
• The entire liquidation process, including the sale of all remaining assets, is projected to take 12 to 24 months, subject to market conditions and sales pace.

Significant Financial Implications

This liquidation plan carries substantial financial implications for AIMCO and its shareholders:

• Initial Distribution: AIMCO has declared a $1.45 per share liquidating distribution, payable on March 13, 2026. This return of capital has specific tax implications for shareholders.
• Property Sales: The company has agreed to sell 12 properties for approximately $680 million, including $30 million in non-refundable deposits already received.
• Debt Repayment: AIMCO expects to use proceeds from these initial sales to pay off about $110 million in construction debt and preferred equity borrowings.
• Anticipated Future Distributions: The company projects additional liquidating distributions. It estimates $0.50 to $0.75 per share ("Expected 2Q Distributions") from the net proceeds of these 12 property sales, with closings anticipated in the second quarter of 2026.
• Liquidation Costs and Shareholder Returns: The full liquidation process will take an estimated 12 to 24 months. The final financial return to shareholders depends on the ultimate sales prices of all properties, transaction costs, debt repayment, and other wind-down expenses.
• Shift in Financial Structure: As AIMCO sells properties, its asset base and future operational income will shrink considerably. This transforms its financial structure from an operating company to one focused solely on selling assets and distributing proceeds.

Assessing the Broader Impact for Investors

AIMCO's liquidation represents a fundamental and irreversible shift, primarily affecting shareholders:

• Strategic Direction: AIMCO's Board of Directors strategically decided on a "Plan of Sale and Liquidation." Their primary goal is to maximize and return capital to shareholders, believing this path will unlock greater value than continuing as an operating company. The company will sell most, if not all, of its properties and eventually cease its main operations.
• Company Operations: AIMCO has shifted its focus from growing its apartment portfolio and generating rental income. Its main objective is now to sell assets, manage the wind-down, and distribute proceeds. The company's asset base and future operational income will significantly decrease, tying share value increasingly to remaining assets and future distributions rather than operational profits.
• Shareholders (Investors): Shareholders will receive direct cash payments throughout this process, with more expected. The value of their shares will increasingly reflect the estimated net proceeds from remaining asset sales.
• Key Risks for Investors: Investors should be aware of several risks:
  • Market Risk: Property values might decline, affecting future sales prices and distribution amounts.
  • Execution Risk: Delays in sales, difficulty finding buyers for all properties, or higher-than-expected liquidation costs could reduce shareholder returns.
  • Uncertainty: All future distributions are estimates and not guaranteed. Actual amounts may differ due to market conditions, transaction costs, and other factors.
• Ongoing Process: AIMCO will continue executing its "Plan of Sale and Liquidation" over the estimated 12-24 month timeline. This will involve more property sales and additional liquidating distributions until the wind-down is largely complete and all net proceeds are distributed.

Key Takeaways for Investors

• Liquidation, Not Growth: Understand that AIMCO is actively winding down its core business. Your investment is now in a company focused on selling assets and distributing proceeds, not on long-term growth or increasing rental income.
• Cash Distributions & Tax Implications: You will receive cash payments as properties sell. These are considered a return of capital, which reduces your cost basis. Always consult a tax advisor for specific implications. Watch for announcements regarding future distributions, including the expected second-quarter distribution of $0.50-$0.75 per share.
• Stock Price Dynamics: The stock price will likely reflect the estimated value of AIMCO's remaining assets, minus liabilities and liquidation costs, along with expected future distributions. Its movement will be driven by asset realization rather than future earnings potential.
• Potential Volatility: Expect the stock price to remain volatile. New sales announcements, updated estimates, changing market conditions, or delays could all influence its movement.
• Total Return is Variable: While initial distributions are known, the total amount you will receive per share throughout the entire liquidation process remains an estimate. It is subject to change based on final sales prices and costs.
• Verify Your Account: If you own AIMCO shares, confirm your brokerage account is prepared to receive these distributions.
• Stay Informed: Always refer to AIMCO's official press releases and SEC filings for the most accurate and current information on their liquidation plan, distribution estimates, timeline updates, and risks.