- Aimco is exploring options to sell parts of its business, including the entire company, to enhance shareholder value.
- The company completed due diligence and made a $38M deposit toward a previously announced $520M Miami property sale.
- Aimco shares continue to trade at a discount to its perceived market value, which limited the company’s ability to capitalize on new opportunities.
- The company’s portfolio includes 5.2K apartment units, recent development projects, and a significant growth pipeline.
Aimco, the Denver-based apartment giant, is exploring strategic options to unlock greater value for shareholders, including potentially selling parts or the entirety of its business.
This announcement follows the company’s completion of due diligence on a $520M standout Miami property deal, per Bisnow.
Aimco’s leadership cited a continued gap between its stock price and the market value of its assets as a key motivator for the move.
A Closer Look
The company, a prominent publicly traded real estate investment firm, has been grappling with stock prices that it believes undervalue its extensive portfolio.
Aimco, which separated from its income-generating apartment business (Apartment Income REIT Corp.) in 2020, continues to develop a polished pipeline of properties. Its portfolio includes 5.2K apartment units, the recently completed Miami development, and approximately 7.7 MSF of planned future growth.
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Yet somehow, despite $1.3B in new developments and $1.7B through asset sales since 2020, Aimco’s stock has underperformed, closing at $8.61 on the day of the announcement.
The discrepancy between market value and perceived worth prompted the company to consider strategic options, including selling off parts of the business, speeding up asset sales, or pursuing a full merger or sale of the entire company.
What’s Next
The company’s board has tasked its investment committee with overseeing this strategic exploration. Morgan Stanley (MS) has been brought on board as Aimco’s financial adviser to guide the process. The company emphasized that any actions will be focused on maximizing value for shareholders.a center projects. future retail consolidations as companies aim to adapt to shifting consumer behaviors and economic pressures.
