Apartment Investment & Management (NYSE:AIV) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Revenue Growth Details
Karin Ford – KeyBanc Capital Markets: You noted in your comments that your revenue growth in 1Q ’13 was higher than it was in ’12 and it looks like that held true for how much you guys were pushing rents in 1Q ’13. It seems fairly unique relative to the rest of your apartment peers. What do you think is different about Aimco that’s allowing you to do that?
Terry Considine – Chairman and CEO: Karin, I think you’ve made us all pause and catch our breath to think about it. We focus each day and each week property-by-property and unit-by-unit type trying to find the right price or a rental rate that will optimize the margin contribution. So, it’s balancing both the revenue receipt and the cost avoided. And with the diversified portfolio we look for a greater steadiness in predictability. We like where we are. The renewal rates have been quite steady in this plus or minus 5% range for the last couple of years and we’d expect our revenue to come in consistent with guidance.
Karin Ford – KeyBanc Capital Markets: My second question is on the GSEs and their plans to pull back on the multifamily lending side. Could you just talk about what impact looking forward do you think that might have on cap rates and does that potentially hit Class B and C properties, more so than Class A properties?
Terry Considine – Chairman and CEO: Karin I think any reduction in participation by any lenders certainly ones as large as the GSEs will have some impact across both cap rates and interest rates available at all price points. But I think the effect will be largely muted as you well know that the world is a washing liquidity right now. For Aimco, we have a significant amount of our borrowings with the non-GSE lenders and for the moment, we don’t expect a material impact in the forecast horizon.
Jana Galan – Bank of America Merrill Lynch: I had a question on the redevelopment pipeline and for the six projects you have it looks like you pushed out stabilization for four of them a couple of quarters. I was just curious why that was? Then also it looks like the expected costs went up a bit?
Terry Considine – Chairman and CEO: Jana, this is Terry. I would say that the push out is because we are just taking a little bit longer to get it done and I would say that’s also the case about the cost. We don’t see significant cost increases in terms of construction cost inflation. It’s just as we work through it, we’re finding it where just a tick optimistic in our estimates. But what I would come back and emphasize is that those projects taken as a whole, would have 7% yields today at today’s untrended rates, 8% expected at stabilization and double-digit free cash flow internal rates of return.