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Land & Buildings Issues Letter to Aimco Board Calling for Sale Process

Believes Company Has Still Not Done Enough to Address Substantial and Persistent Discount to NAV

Urges Board to Immediately Begin a Full Process to Evaluate Alternatives to Maximize Shareholder Value

Land & Buildings Investment Management, LLC (together with its affiliates, “Land & Buildings”, “us” or “we”), a large shareholder of Apartment Investment and Management Company (NYSE: AIV) (“Aimco” or the “Company”), today issued an open letter to the Company’s Board of Directors (the “Board”).

The full letter is included below:

Dear Members of the Board,

As you know, Land & Buildings remains a large shareholder of Aimco and has continued to engage with the Company since the 2022 Annual Meeting of Shareholders at which our independent nominee, James (“Jim”) P. Sullivan, was elected to the Board. Since that time, we have grown increasingly concerned about the Company’s continued failure to act with urgency in exploring ways to maximize value for shareholders, especially in light of Aimco continuing to trade at a deep discount to its own stated net asset value (NAV). While we note the recent appointment of Sherry L. Rexroad to the Board following the resignation of Terry Considine, we believe more action is needed.

At this point, the path forward is clear to us. Aimco must run a full public strategic review process to evaluate all potential alternatives – including a sale – to deliver value for shareholders. It is our understanding that Morgan Stanley has been retained by the Company and we encourage the Board to make full use of this resource.

In our view, there is at present still capital available in the financing markets for a transaction such as this. Additionally, the Company has attractive assumable debt in place and government-sponsored entities are continuing to lend to support workforce housing, which makes the Company an even more attractive asset.

We are aware of multiple well-financed and interested parties who would likely jump at the chance to engage in transaction discussions with Aimco. While you have encouraged us to send any viable bidders your way, very few of these interested parties will engage in serious discussions without being invited first. And it’s not possible to know the true depth of the buyer pool and the pricing level of a potential transaction without a proactive process. Based on our analysis, we believe a potential sale could result in between 40% and 60% upside to the current trading price.

We encourage and expect the Board to act with urgency. The economic environment is still on sound footing and the capital markets remain open for a potential transaction, but either of those variables could change rapidly. We will continue to advocate for the best interests of all shareholders and look forward to a clear update on the status and specifics of the ongoing review of a “broad range of options” to enhance value.


Jonathan Litt

Land & Buildings Investment Management, LLC


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