2 0 0 2 A N N U A L R E P O R T 318,000 units 1,800 properties 1 million people choose Aimco apartments each year 47 states Diversified by location and price point Table of Contents Letter to Our Shareholders . . . . . . . . . . . . . . . . 1 Chairman’s Four-Star Award . . . . . . . . . . . . . . . 7 10 Principles that Define Aimco . . . . . . . . . . . . . . 8 Operations Overview . . . . . . . . . . . . . . . . . . 9 Accounting Policies and Definitions . . . . . . . . . . . 17 Financial Section . . . . . . . . . . . . . . . . . . . 19 To Our Fellow Aimco Shareholders Peter and I are disappointed by Aimco’s 2002 financial returns. It was the second consecutive year during which Total Return, that is, the sum of dividends and share price change, was negative. As managers, our pay was appropriately reduced: mine, by 50%. As shareholders, we are considerably poorer. Here are the grim facts: (cid:1) Total Return was a negative 11.5%. Per Share Results 6 4 2 0 1997 1998 1999 2000 2001 2002 • FFO • AFFO The Aimco share price was $45.73 at the (cid:1) Aimco’s estimated net asset value (“NAV”) beginning of the year and $37.48 at year-end. This decline of $8.25 was only partially offset by the $3.28 dividend. Total Return Annualized per share declined 11% from $46 to $41. (cid:1) Aimco Total Return was lower than the REIT index average but, for whatever small comfort it may provide, superior to the S&P 500. 1 20% 15% 10% 5% 0% -5% -10% -15% 16.4% Comparative Total Return Annualized 7.4% -11.5% 200 150 100 50 0 1997 1998 1999 2000 2001 2002 • Aimco • MS REIT Index • S&P 500 1 Year 5 year -11.5 7.4 3.6 3.3 -22.1 -0.6 Since IPO 5 Year 1 Year (cid:1) FFO of $4.64 and AFFO of $3.77 per share were lower than the prior year results for the first time in Aimco’s eight year history as a public company. 2 These disappointing results are due (cid:1) In the past two years, Aimco has increased primarily to the 19% decline in AFFO per its Capital Replacement spending by 59%, share which, in turn, was caused by the from $300 per unit in 2000 to $478 per poor economy; the reduction in income from unit in 2002. This increase reduced 2002 partnership activities; and increased Capital results by $0.20 per share. Peter and I have Replacement spending. (cid:1) By its low (so far) in December 2002, the U.S. economy had lost 1.8 million jobs from its peak in March 2001. Many of those without jobs had lived in apartments always been determined to spend the money required to maintain Aimco prop- erties in good condition and the amount required to do so has been larger than we had previously expected. and moved out to live with a roommate; These factors overshadowed numerous continue their education; or return home. positive developments: Sometimes, their apartment leases con- tinued when their jobs did not and, as a result, Aimco bad debt doubled. As they moved out, Aimco “same store” occupancy dropped by 0.8%, consistent with the industry average. With lower demand, prices softened and “same store” rental rates dropped by 0.2%, albeit less than the industry average decline of 3.2%. These three adverse developments reduced (cid:1) The Conventional portfolio produced $1.2 billion in rental revenues and $663 million in Free Cash Flow. “Same store” net operating income was down 1.6% for the year. This negative was, in fact, a positive by comparison to Aimco’s industry peers who averaged a decline of approximately 6%. Credit Ron Monson and his team. revenue by 2.5% or $28 million, equal (cid:1) Aimco Capital took form under David to $0.26 per share. (cid:1) During the past few years, Aimco has increased its weighted average ownership of affiliated partnerships from 54% at the end of 1999 to 70% at the end of 2002. In this process, Aimco earned substantial Investment Management income which, however, has declined with reduced outside ownership, from 8% of Free Cash Flow in 1999 to 3% in 2002. The 2002 impact was equal to $0.23 per share. Robertson and Lance Graber, combining all activities involving Affordable properties, i.e., those properties serving lower income residents and subsidized by the federal government, either directly by rent subsidies or indirectly by tax credits. Aimco Capital improved Affordable operations; acquired (in the Casden transaction) 99 properties with 11,027 units; began redevelopment of 9 properties; sold 26 properties with 2,875 units; oversaw NAPICO after its acquisition; and contributed $13 million in activity fees to Aimco AFFO. (cid:1) Joe DeTuno’s Redevelopment group largely properties mentioned above, NAPICO, a completed $55 million in redevelopments general partner in partnerships owning 435 previously undertaken and also took a properties with approximately 40,000 units, larger role in support of capital spending on and also a long term syndicator of tax all properties. Riverloft Apartments provided credit equity. These acquisitions were an excellent example of the potential for partially funded by the sale for $552 million redevelopment to upgrade properties while of 87 properties with approximately providing sparkling financial returns. 15,000 units. The renovated Riverloft lobby includes slate flooring and natural wood paneling. $5 Million in Value Created at Riverloft (cid:2) It is instructive to note that the average rent of the conventional properties acquired was $1,249 and that of the con- ventional properties sold was $553. Harry Alcock and his team were very busy. (cid:2) It is also noteworthy that with the sales of properties in which Aimco had Redevelopment Value Before Cost Of Total Investment Value After Value Created $ Millions a minority interest, the share of Aimco 14 21 35 40 5 Free Cash Flow earned from assets consolidated in Aimco’s financial state- 3 ments has increased from 65% in 1999 to 92% in 2002. (cid:1) Under the direction of Paul McAuliffe, Aimco funded these activities by the sale (cid:1) In a year when the price for property of $51 million in preferred, and $369 million insurance was generally increasing by in common, equity. In addition, Aimco con- approximately 40%, Jeff Adler was successful in managing Aimco’s risk verted $270 million of preferred securities to common stock and responded to lower activities and keeping Aimco property interest rates by funding $1.4 billion in new insurance costs largely unchanged. or refinanced property loans. (cid:1) Aimco invested $1.6 billion in two large (cid:2) For her leadership of this activity for the transactions to acquire 4,975 conventional past several years, Patti Fielding was units in southern California and 4,323 promoted to Executive Vice President. conventional units in New England. The Casden transaction brought, together with the California apartments and Affordable (cid:1) Tom Novosel completed several projects (cid:1) The Aimco portfolio has been upgraded by to improve Aimco’s financial control and the 2002 acquisitions and by the annual to increase transparency of Aimco’s portfolio discipline of selling the weakest financial reporting. 5% or 10%. (cid:1) Perhaps most satisfyingly, in a year of increased regulation and scrutiny, Top Markets: 32% of free cash flow from Conventional Real Estate is earned in the markets listed below: Paul McAuliffe and I were able to affirm Aimco’s financial statements without qualification. Aimco’s governance has served it well with four, independent, fully engaged directors as the members of all Greater Washington D.C. Southern California New England Chicago and suburbs Southeast Florida three board committees. (cid:1) Total assets are approximately $11 billion 4 As we turn to 2003, Aimco has considerable strengths and a few, lingering concerns. Our strengths include: (cid:1) Aimco has a vast portfolio including 1,800 properties and 318,000 units serving one million residents each year. It is highly diversified and weaker markets are offset by stronger ones. Last year, more than 60% of Aimco Net Operating Income from Conventional Real Estate was earned in and the value of these assets plus others under management exceeds $15 billion. Total Assets $ in Billions 15 10 5 0 1998 1999 2000 2001 2002 markets up over 4% on average. • Aimco • Under Management Performance of Top 40 Markets 2002 vs. 2001 (cid:1) Peter and I perceive a considerable Number of Markets Percent of Top 40 NOI Average Change in NOI The Good The Bad The Ugly 25 5 10 40 63% 17% 20% 4.1% -3.1% -13.3% opportunity to increase Aimco profitability by selective investments in these assets, both by redevelopment and enhancement of the strongest conventional locations, and by redevelopment of Affordable 100% -1.2% properties by Aimco Capital using government programs and capital. (cid:1) While reduced from prior years, there remains the opportunity to make attrac- tive investments in acquisition of limited partnership interests in properties where Aimco is already the general partner. Our concerns include: (cid:1) Litigation in 21st century America imposes (cid:1) The economy continues to be weak and we share the general concern for unlikely but possible domestic terrorism. Traffic from rental prospects remains below prior year levels. Increases in demand may well be less than the increases in supply from new apartment properties and low interest rate stimulated single family building. Aimco’s weakest 2002 markets were most often those with high levels of new building such as Atlanta, Denver and Phoenix. (cid:1) Aimco financial leverage is higher than costly and unpredictable burdens on business. For example, Peter and I are concerned by the time and money required to resolve a dispute with the City of San Francisco relating to the proposed redevelopment of an affordable housing property; another with an American Insurance Group company relating to collecting monies owed under past property insurance policies; and a third relating to a partnership dispute involving NAPICO prior to its purchase as part of the Casden acquisition. While we believe that we like. EBITDA (“earnings before inter- any impact on Aimco will be immaterial, est, taxes, depreciation and amortiza- tion”) coverage of interest expense is litigation is a crude way to resolve disputes and takes time and money away from 2.62:1 and Free Cash Flow coverage of more productive pursuits. interest and preferred dividends is 1.81:1. The latter is what we watch most carefully and our target is 2.0:1 or even 2.2:1. It is important to note that 94% of this leverage is due to non-recourse property debt and Our plans for 2003 are to make every effort to improve Aimco financial results without waiting for an economic recovery. Some of our plans are: preferred stocks where the consequence (cid:1) We will continue to upgrade and focus the of any severe deterioration is, by contract, conventional portfolio and have identified shared by the leverage holder. as “intermediate term hold” 300 properties $11 Billion in Capitalization As of December 31, 2002 55% Debt 45% Equity 52% Long-Term Property Debt – $5.7 3% 5% 4% Short-Term Property Debt – $0.4 Perpetual Preferred – $0.6 Convertible Preferred – $0.5 36% Common Equity – $4.0 with approximately 75,000 units valued at $2.4 billion and whose Aimco equity or NAV is estimated at $700 million or $6.00 per share. We plan to sell these properties during the next few years and to use the sales proceeds to repay short term debt; to fund improvements to the “long term hold” portfolio; and to fund future investments including, possibly, the further acquisition of limited partnership interests. 5 Long-term Hold Portfolio Intermediate-term Hold Portfolio Gross Asset Value $9.2 Billion Gross Asset Value $2.4 Billion LP Equity $0.9 LP Equity $0.3 Aimco NAV $3.5 Long-Term Debt $4.8 Aimco NAV $0.7 Long-Term Debt $1.4 NAV $30.50 Per Share Average Rent $815 NAV $6.00 Per Share Average Rent $540 (cid:1) We are interested to identify opportunities to earn a return on Aimco’s intellectual and management capital without large scale commitments of Aimco’s equity capital. We are optimistic that Aimco Capital will build on its 2002 success. Its markets are driven by government programs and so are not dependent on economic recovery. In 2002, Aimco entered into a joint venture with CalSTRS to acquire student housing. We are considering other apartment related niches where Aimco can marry its apartment skills to others’ (cid:1) We are working to improve property financial capital. operations by: (cid:1) We are focused on reducing balance sheet (cid:2) upgrading customer acquisition efforts; (cid:2) improving employee selection 6 (including the recruiting last month of Jim Purvis as Executive Vice President Human Resources); (cid:2) increasing attention to the physical condition of each property (In late February, 58 members of corporate management participated in a nationwide week of inspection of 400 conventional properties.) and increasing spending to fund improvements; (cid:2) digitizing property operations and corpo- rate accounting by continuing the high rate of spending on computer software, such as the Siebel-based system recently installed for site operations; and risk by repayment of short term debt (despite the allure of its low interest rates) and also on lowering the cost of Aimco leverage by redeeming or refunding some or all of the $507 million in preferred equities that will be open to redemption during 2003. These are not “easy times.” Peter and I feel a keen sense of responsibility, to you and to our own families, for Aimco’s wellbeing. We appreciate greatly the advice and support of our fellow directors: Jim Bailey, Dick Ellwood, Lanny Martin and Dusty Rhodes. We look forward to seeing you at the Annual Meeting to be held in Denver on April 25th. Sincerely, (cid:2) improving business processes through Aimco’s Continuous Improvement efforts. Terry Considine Chairman/CEO Peter Kompaniez Vice Chairman/President Chairman’s Four-Star Award Chairman’s Four-Star Award Congratulations to these community managers Congratulations to these community managers for their outstanding performance TAMMY CALLO Oak Park for their outstanding performance TAMMY CALLO Oak Park Village; Lansing, Michigan. LORI CARSON Snowden Village; Fredericksburg, Virginia. CHERIE CLARY Lewis Park; Village; Lansing, Michigan. LORI CARSON Snowden Village; Fredericksburg, Virginia. CHERIE CLARY Lewis Park; Carbondale, Illinois. LISA COOPER Ashton Ridge Apartments; Jacksonville, Florida. DEBORAH JAENTSCH Casa Carbondale, Illinois. LISA COOPER Ashton Ridge Apartments; Jacksonville, Florida. DEBORAH JAENTSCH Casa de Monterey; Norwalk, California. MARIANNE KING The Colony of Springdale; Springdale, Ohio. GREGG LEESER de Monterey; Norwalk, California. MARIANNE KING The Colony of Springdale; Springdale, Ohio. GREGG LEESER Timber Ridge; Blue Ash, Ohio. LISA LEWIS Fisherman’s Wharf; Brazoria County, Texas. NICOLE SHIVERS Maple Timber Ridge; Blue Ash, Ohio. LISA LEWIS Fisherman’s Wharf; Brazoria County, Texas. NICOLE SHIVERS Maple Bay Townhomes; Virginia Beach, Virginia. MONICA SHUMATE Stone Point Village; Fort Wayne, Indiana. KAREN Bay Townhomes; Virginia Beach, Virginia. MONICA SHUMATE Stone Point Village; Fort Wayne, Indiana. KAREN SPENCER Ivanhoe Apartments; Monroeville, Pennsylvania. MONICA YAGER Barrington Place; Westlake, Ohio. SPENCER Ivanhoe Apartments; Monroeville, Pennsylvania. MONICA YAGER Barrington Place; Westlake, Ohio. MARIANNE KING can multi-task. While managing The Colony of Springdale through a water main break and a total renovation of the community's clubhouse during 2002, she also managed to increase occupancy from 87% to 94% and operating income by more than 25%. Marianne and her team identified efficiencies, increased customer service and made The Colony a better community for the residents in its 261 apartments. In her spare time, Marianne can be found reading and teaching English to children in the onsite learning center. LORI CARSON is an exemplary community manager who has been a mentor to others. Lori and her team make it a priority to offer friendly and consistent service to community residents. She routinely takes on tasks that might otherwise be contracted to others to ensure top maintenance and efficiency. Lori successfully increased occupancy during a soft market from the high 80s to a solid 98% in about one year. KAREN SPENCER and her team take great pride in making the Ivanhoe community a pleasant place to live. Karen sees that the landscaping is well maintained and common areas well cared for. During 2002, they kept a full calendar of community events such as a pig roast at the pool, a holiday open house and a September 11th tribute. It is no surprise that Karen and her team increased occupancy 11% over the prior year. 10 Principles that Define Aimco 8 1 2 3 4 5 6 7 8 9 Own and operate apartments Buy at a discount to replacement cost Realize economies of scale Operate locally Diversify geographically Measure profitability after Capital Replacements: “AFFO” Retain cash cushion for flexibility Avoid development risk Use debt with caution 10 Make managers owners Operations Overview As America’s largest owner and operator of apartment communities, Aimco operates approximately 1,800 properties with 318,000 apartment units located throughout the United States, including Puerto Rico. Aimco groups its apartment properties in two port- folios: Conventional and Aimco Capital. Conventional includes apartment properties in urban and suburban locations nationwide and range from A through C quality. Aimco focuses on B assets in A locations. Aimco Capital includes communities subsidized in some 9 manner by the United States Department of Housing and Urban Development, (HUD), or by using tax credit equity. Aimco is focused solely on apartments and grows through acquisitions and redevelopment of existing properties, rather than by “ground-up” development. Aimco has assembled an expert and experi- enced management team to ensure top quality management and a superior living experience for the one million residents each year who choose Aimco properties. Conventional Properties and Operations Aimco’s Conventional portfolio provides geographic and price point diversification and includes approximately 720 properties and 200,000 apartments located nationwide. Aimco has identified 27 “focus” markets where it has a significant concentration of apartment properties, or where it would like to expand its presence. The company has 15 regional operating centers (ROCs) to manage these properties. 10 Aimco’s operating philosophy is to rely on these ROCs to provide focused attention and local knowledge in the management of the apartment communities, while still allowing each property to benefit from the efficiencies, economies of scale, purchasing power and expertise of a larger company. Aimco’s ten largest markets are: the Washington D.C. area; Southern California; the Boston area; the Chicago area; south- east Florida; Philadelphia; Houston; the Phoenix area; Indianapolis; and Tampa. Focus Markets ROC Locations (cid:1) Grosvenor Park located in Rockville, Maryland and ten minutes by train to Washington D.C. offers urban living in a 404 unit, 20 story community. Its residents enjoy a business center, fitness center and concierge services. Offering Comfort, Convenience and Peace of Mind COMFORT Aimco offers a wide range of living Residents can also stay informed and connected to their communities through an styles from park-like suburban settings to interactive Web site featuring community urban high rises. Amenities vary to match forums, community announcements and the the lifestyle of the residents, and include pools, means to submit service requests online. health and fitness facilities, golf courses and community centers. Residents enjoy a neigh- borhood setting founded on Aimco’s Good Neighbor Commitment from employees that makes residents feel welcome and at “home.” 11 PEACE OF MIND “From the very first day, you are at home.” Aimco communities are committed to providing a perfect move-in experience and each resident receives special attention from a dedicated staff member to ensure personalized service and a speedy response to requests. In the event that valued residents move, Aimco offers a variety of options including a Coast-to-Coast Transfer program and home ownership assistance. CONVENIENCE Residents find it easy, friendly and convenient to do business with Aimco, whether through personal interaction with a dedicated community employee or through one of Aimco’s time saving auto- mated services. Instant application processing and easy-pay options save residents time. (cid:1) Brookdale Lake is located in Naperville, a Chicago suburb known for its quality schools. This community attracts many families to its 200 apartment homes. (cid:2) The Greens is located in Chandler, Arizona adjacent to the San Marcos Golf Course. Its 324 apartments appeal to families and professionals. (cid:1) Royal Crest Estates located in North Andover, Massachusetts is typical of the Tudor architecture of several of the New England properties acquired in August 2002. This community has 588 apartments on a 76 acre site and offers fitness facilities, a pool and tennis. Portfolio Quality – Asset Quality, Lifestyle Quality During 2002, Aimco expanded its presence in the Southern California and New England areas with two major acquisitions. In March 2002, Aimco completed the purchase of Casden Properties for $1.1 billion. The acquisition included both Conventional and Affordable properties and a commitment to purchase properties under development for an additional $418 million. The purchase included 17 conventional properties with 4,975 apartment units having average monthly rents in excess of $1,250. The properties under development include 1,381 units in the mid-Wilshire area of Los Angeles. The first phase of development was completed at The Villas at Park La Brea in the fourth quarter 2002 and was purchased by Aimco for $55.5 million. The second phase is expected to reach completion and stabilization by the end of 2003. In August 2002, Aimco acquired ownership of eleven conventional garden and mid-rise apartment properties located in the New England area for $500 million. The eleven 12 (cid:1) Township at Highlands located in Littleton, Colorado has 161 apartments and townhomes. This community was renovated in 1999 and many units offer a garage, basement and fireplace. (cid:1) Acquired in March 2002, Hillcreste has 315 units and is located between Century City and Beverly Hills. This gated community is situated adjacent to the Hillcrest Country Club golf course and offers two pools, three spas, fitness facilities, a business center and concierge services. conventional properties have 4,323 apart- ment units and have average monthly rents in excess of $1,200. Aimco’s vast portfolio of Conventional prop- erties includes a number of properties that are located outside of focus markets as well as other properties that do not meet Aimco criteria. Aimco has identified approximately 300 properties that it defines as “intermediate term hold.” During 2002, Aimco sold 61 such properties for $479 million. The “inter- mediate term hold” assets are expected to be sold over the next several years to fund acquisitions as well as spending to upgrade or redevelop other Conventional properties. 13 (cid:1) Villa Azure is located in Los Angeles, a few minutes inland from Marina del Rey, and offers a Southern California setting for the residents of its more than 600 apartments. Aimco Capital Aimco is the largest provider of Affordable apartments in the United States, providing housing to low income families, people with disabilities and seniors. Aimco is committed to providing quality living for this sizable market. Aimco Capital was established during 2002 to provide a specialized focus on this segment by organizing property operations, asset management and trans- actions under a single management team. Managing Aimco’s Affordable properties and executing transactions related to Affordable assets require knowledge and expertise specific to these assets as rules and regulations applicable to Affordable property management and tax credit transactions vary from state to state and sometimes from city to city. By combining these activities under the umbrella of Aimco Capital, Aimco can better serve the needs of its residents and can better identify opportunities to improve the quality of its Affordable properties. Aimco has an average 37% ownership interest in 520 affordable communities and manages an additional 100 affordable communities for unrelated third parties. In 2002, Aimco Capital’s apartments had an average rent of $650 per month and average occupancy 14 (cid:1) The Towne House community in Allentown, Pennsylvania has 160 apartment homes and is fully occupied by senior residents. (cid:2) University Square is located in Philadelphia, Pennsylvania and has 442 apartment homes for seniors. (cid:2) The Berger Apartment community was acquired in March 2002. The building was formerly a factory and was renovated into 144 apartments. This community is located in New Haven, Connecticut and is fully occupied by senior residents. of 97%. These properties provide Aimco a stable and predictable cash flow while serving a large and government-supported market. In 2002, Aimco significantly increased its investment in Affordable properties through the Casden acquisition, which included 99 Affordable properties with 11,027 apartment units located in 25 states. In addition, Aimco acquired NAPICO, which provides asset management services to an additional 435 Affordable properties, including approximately 40,000 units nationwide. In 2002, Aimco Capital significantly expand- ed its staff and invested $21 million in its Affordable communities including upgrades and improvements. Aimco Capital is work- ing to identify opportunities to upgrade and redevelop its large portfolio of Affordable communities. 15 (cid:1) Florida House is located, in a residential community in Urbana, Illinois. It offers 120 apartment homes primarily to senior citizens and disabled residents. (cid:2) The Harrison Square community is home to 38 families in Danbury, Connecticut and is 100% occupied. (cid:1) The Topanga Townhomes located in Chatsworth, California were acquired in March 2002. Recognizing upside opportunity for these spacious and well located apartments, Aimco initiated a $500 thousand initial capital expenditure program that included new roofs, fencing, garage doors as well as exterior painting and improvements to the pool and spa. (cid:1) The Calhoun Beach Club is located lakefront in the Twin Cities along Lake Calhoun. The property underwent a $30 million-plus renovation and construction was completed in the fourth quarter 2002. Upgrading the Portfolio (cid:2) Riverloft in Philadelphia underwent a $21 million renovation with modern architectural detail for its 184 apartment units. (cid:2) The Flamingo Resort Residences is located waterfront in the South Beach area of Miami, Florida. The 1,688 unit complex is undergoing a more than $230 million renovation that includes the addition of a new tower with 513 units as well as apartment and common area upgrades. Con- struction will be completed mid-2003. Corporate Information CORPORATE OFFICE Stanford Place 3 4582 South Ulster Street Parkway Suite 1100 Denver, Colorado 80237 Telephone 303.757.8101 Toll Free 888.789.8600 WEBSITE http://www.aimco.com STOCK LISTING New York Stock Exchange Symbols: AIV; AIVPrC; AIVPrD; AIVPrG; AIVPrH; AIVPrP; AIVPrQ; AIVPrR COMMON & PREFERRED STOCK INVESTOR RELATIONS Toll Free. 888.789.8600 Telephone 303.691.4350 E-mail investor@aimco.com Jennifer Martin Vice President Investor Relations Telephone 303.691.4440 Fax 303.300.3269 LIMITED PARTNER INVESTOR RELATIONS P.O. Box 2347 Greenville, South Carolina 29602 Telephone 864.239.1029 Fax 864.239.5812 STOCK TRANSFER AGENT AND REGISTRAR EquiServe P.O. Box 43010 Providence, Rhode Island 02940-3010 INDEPENDENT AUDITORS Ernst & Young LLP Denver, Colorado LEGAL COUNSEL Skadden, Arps, Slate, Meagher & Flom LLP Senior Vice Presidents Jeffrey W. Adler Senior Vice President Marketing and Risk Management Mari Akers Senior Vice President Human Resources Patrizia A. Bailey Senior Vice President Aimco Capital Transactions Advisory Board Roy H. Lambert, Sr. Vero Beach, Florida Richard Morton Miami, Florida Emeritus Charles R. Considine John D. Smith Property Operations DIVISIONAL VICE PRESIDENTS Gregory P. Garmon Pacific James H. Mathes Southeast C. Wade Roemke Midwest Carl J. Ruff Sr. Texas Stephen C. Peters West Charles B. Turner Senior Vice President Aimco Capital – Property Operations David J. Zweig Northeast REGIONAL VICE PRESIDENTS Jimmy K. Arnold Kenneth B. Bible, Jr. Russell W. Fleming Michael Glass Melanie French Jeffrey Kimes Dan J. Kistel William M. Kozey Warren J. Sander James D. Shearer Charles T. Vanover Michele M. Wilson O. Cooper Winston, Jr. Debbie Workman Dora E. Chi Senior Vice President Tenders David Douglas Senior Vice President Redevelopment David Gazek Senior Vice President Redevelopment Patricia K. Heath Senior Vice President Treasurer Brad T. Hodack Senior Vice President Redevelopment Michael J. Hornbrook Senior Vice President Aimco Capital Transactions Martha J. Long Senior Vice President Continuous Improvement Gary A. Marks Senior Vice President Redevelopment Charles McKinney Senior Vice President Aimco Capital – Asset Management Leeann Morein Senior Vice President Thomas C. Novosel Senior Vice President Chief Accounting Officer Gary Polodna Senior Vice President Redevelopment Patti Shwayder Senior Vice President Government Relations Patrick F. Slavin Senior Vice President Sales and Dispositions James M. Wallace Senior Vice President Tax R. Scott Wesson Senior Vice President Chief Information Officer Board of Directors Terry Considine Chairman Aimco Chief Executive Officer Peter K. Kompaniez Vice Chairman Aimco President James N. Bailey (1) (2) (3) Chairman, Nominating and Corporate Governance Committee Senior Managing Director Cambridge Associates, LLC Treasurer, Director and Co-founder The Plymouth Rock Company Richard S. Ellwood (1) (2) (3) Chairman, Audit Committee President R.S. Ellwood & Co., Inc. J. Landis Martin (1) (2) (3) Chairman, Compensation and Human Resources Committee Chairman and Chief Executive Officer Titanium Metals Corp. President and CEO and Director NL Industries, Inc. Thomas L. Rhodes (1) (2) (3) Director President, National Review (1) Member of the Audit Committee (2) Member of the Compensation and Human Resources Committee (3) Member of the Nominating and Corporate Governance Committee Executive Officers Harry G. Alcock Executive Vice President Chief Investment Officer Miles Cortez Executive Vice President General Counsel and Secretary Joseph DeTuno Executive Vice President Redevelopment Patti K. Fielding Executive Vice President Property Debt Patrick J. Foye Executive Vice President Partnerships Lance J. Graber Executive Vice President Aimco Capital Transactions Paul J. McAuliffe Executive Vice President Chief Financial Officer Ronald D. Monson Executive Vice President Conventional Property Operations James G. Purvis Executive Vice President Human Resources David R. Robertson Executive Vice President, President and Chief Executive Officer Aimco Capital Stanford Place 3, 4582 South Ulster Street Parkway, Suite 1100, Denver, Colorado 80237 Telephone 303.757.8101 Toll Free 888.789.8600 http://www.aimco.com