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AIMCO Stock Conversion Sets Stage for Heightened Fiscal Flexibility

DENVER-AIMCO sets the stage for heightened fiscal flexibility by finalizing a $97.6 million stock conversion of preferred securities to Class A common stock. The apartment REIT's shares previously have been included in its count of full diluted shares so the action does not affect that total.

By John Rebchook | Updated on August 30, 2000

Apartment Investment and Management Co., an apartment REIT, has completed a complicated stock conversion.

In the deal, AIMCO has converted $97.6 million, or 1.95 million shares of trust convertible preferred securities into 1.967 million shares of AIMCO’s Class A common stock. A total of $149.5 million in convertible preferred securities were assumed by AIMCO in October 1998, when it merged with Insignia Financial Group Inc. The preferred securities carry a conversion price of $49.61 per share, based on a liquidation amount of $50 per share that equates to 1.0079 shares of Class A common stock for each preferred share. The shares previously have been included in AIMCO’s count of fully diluted shares outstanding for purposes of calculating Adjusted Funds From Operations per share and FFO per share. Therefore, the action does not increase AIMCO’s fully diluted share count. AFF0 and FFO are important measures of a REIT’s financial health.

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