Edgar Filing: APARTMENT INVESTMENT & MANAGEMENT CO

Apartment Investment and Management Co Form 10-K


PART I
	ITEM 1. Business
	2000 Developments
	Financial Information About Industry Segments
	Operating and Financial Strategies
	Growth Strategies
	Property Management Strategies
	Taxation of the Company
	Competition
	Regulation
	Insurance
	Employees
	ITEM 2. Properties
	ITEM 3. Legal Proceedings
	ITEM 4. Submission of Matters to a Vote of Security Holders
PART II
	ITEM 5. Market for the Registrant’s Common Equity and Related Stockholder Matters
	ITEM 6. Selected Financial Data
	ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
	ITEM 7a. Quantitative and Qualitative Disclosures About Market Risk
	ITEM 8. Financial Statements and Supplementary Data
	ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
PART III
	ITEM 10. Directors and Executive Officers of the Registrant
	ITEM 11. Executive Compensation
	ITEM 12. Security Ownership of Certain Beneficial Owners and Management
	ITEM 13. Certain Relationships and Related Transactions
PART IV
	ITEM 14. Exhibits, Financial Statement Schedule and Reports on Form 8-K
INDEX TO FINANCIAL STATEMENTS
REPORT OF INDEPENDENT AUDITORS
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
CONSOLIDATED STATEMENTS OF CASH FLOWS
CONSOLIDATED STATEMENTS OF CASH FLOWS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
REAL ESTATE AND ACCUMULATED DEPRECIATION
EX-3.1 Charter
EX-10.19 18th Amendment to Agreement of LP
EX-10.20 19th Amendment to Agreement of LP
EX-10.21 20th Amendment to Agreement of LP
EX-21.1 List of Subsidiaries
EX-23.1 Consent of Ernst & Young LLP
EX-99.1 Agreement Regarding Long-Term Debt

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________

Form 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2000

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-13232
Apartment Investment and Management Company
(Exact name of registrant as specified in its charter)


Maryland (State or other jurisdiction of incorporation or organization)		84-1259577 (I.R.S. Employer Identification No.)





2000 South Colorado Boulevard, Tower Two, Suite 2-1000 Denver, CO (Address of principal executive offices)		80222-7900 (Zip Code)

_______________

Registrant’s Telephone Number, Including Area Code: (303) 757-8101

Securities Registered Pursuant to Section 12(b) of the Act:


Title of Each Class		Name of Each Exchange on Which Registered

Class A Common Stock Class C Cumulative Preferred Stock Class D Cumulative Preferred Stock Class G Cumulative Preferred Stock Class H Cumulative Preferred Stock Class K Convertible Cumulative Preferred Stock Class P Convertible Cumulative Preferred Stock Class Q Cumulative Preferred Stock		New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange

Securities Registered Pursuant to Section 12(g) of the Act: none

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

As of March 8, 2001, there were 71,521,685 shares of Class A Common Stock outstanding. The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant, was approximately $3,099.0 million as of March 8, 2001.

Documents Incorporated by Reference

Portions of the proxy statement for the registrant’s 2001 annual meeting of stockholders are incorporated by reference into Part III of this Annual Report.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

TABLE OF CONTENTS

ANNUAL REPORT ON FORM 10-K
For the Fiscal Year Ended December 31, 2000


Item	Page


PART I




1. Business		2




2000 Developments		2




Financial Information About Industry Segments		5




Operating and Financial Strategies		5




Growth Strategies		6




Property Management Strategies		7




Taxation of the Company		7




Competition		7




Regulation		8




Insurance		9




Employees		9




2. Properties		10




3. Legal Proceedings		11




4. Submission of Matters to a Vote of Security Holders		11





PART II





5. Market for the Registrant’s Common Equity and Related Stockholder Matters		12




6. Selected Financial Data		13




7. Management’s Discussion and Analysis of Financial Condition and Results of Operations		14




7a. Quantitative and Qualitative Disclosures About Market Risk		24




8. Financial Statements and Supplementary Data		24




9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		24





PART III





10. Directors and Executive Officers of the Registrant		25




11. Executive Compensation		25




12. Security Ownership of Certain Beneficial Owners and Management		25




13. Certain Relationships and Related Transactions		25





PART IV





14. Exhibits, Financial Statement Schedule and Reports on Form 8-K		26

PART I

ITEM 1. Business

Apartment Investment and Management Company, a Maryland corporation, incorporated on January 10, 1994 (“AIMCO” and, together with its consolidated subsidiaries and other controlled entities, the “Company”), is a self-administered and self-managed real estate investment trust (“REIT”) engaged in the ownership, acquisition, redevelopment, expansion and management of multi-family apartment properties. As of December 31, 2000, AIMCO owned or managed 326,289 apartment units in 1,720 properties located in 47 states, the District of Columbia and Puerto Rico. Based on apartment unit data compiled by the National Multi Housing Council, the Company believes that, as of December 31, 2000, it was the largest owner and manager of multi-family apartment properties in the United States.

As of December 31, 2000, AIMCO:

	•		owned or controlled (consolidated) 153,872 units in 566 apartment properties;

	•		held an equity interest in (unconsolidated) 111,748 units in 683 apartment properties; and

	•		managed 60,669 units in 471 apartment properties for third party owners and affiliates.

AIMCO conducts substantially all of its operations through its operating partnership, AIMCO Properties, L.P., (the “AIMCO Operating Partnership”). Through a wholly-owned subsidiary, AIMCO acts as the sole general partner of the AIMCO Operating Partnership, and as of December 31, 2000, owned an approximate 91% interest in the AIMCO Operating Partnership. AIMCO manages apartment properties for third parties and affiliates through unconsolidated subsidiaries that are referred to as the “management companies.” Interests in the AIMCO Operating Partnership that are held by third parties are referred to as “OP Units.”

The Company’s principal executive offices are located at 2000 South Colorado Blvd., Tower Two, Suite 2-1000, Denver, Colorado 80222-7900 and its telephone number is (303) 757-8101.

2000 Developments

Individual Property Acquisitions

The Company directly acquired 12 apartment properties in separate transactions during 2000. The aggregate consideration paid by the Company of $136.5 million consisted of $42.7 million in cash, $26.4 million in preferred OP Units, $6.8 million in common OP Units and the assumption of $60.6 million of secured long-term indebtedness. As part of these acquisitions, the Company has also determined to undertake $4.8 million of initial capital enhancements related to these properties.

Acquisition of Oxford Properties

On September 20, 2000, AIMCO completed the purchase of all the stock and other interests (not already owned by AIMCO) held by the principals, officers and directors of Oxford Realty Financial Group, Inc. (“ORFG”) in Oxford entities, including ORFG, which own interests in and control the Oxford properties for $266 million in cash and $62 million in common OP Units valued at $45 per unit. In addition to the cash and securities, AIMCO assumed liabilities and incurred transaction costs of $861 million, resulting in a total purchase price of $1,189 million. The Oxford properties are 167 apartment communities including 36,949 units, located in 18 states. AIMCO, through an affiliate, previously managed 165 of the 167 Oxford properties pursuant to long-term contracts and was previously a stockholder in certain of the entities. In addition to the Oxford properties, AIMCO acquired the entity that owns the managing general partner of Oxford Tax Exempt Fund II Limited Partnership (“OTEF”) and acquired approximately a 40% interest in the non-managing general partner of OTEF. The AIMCO Operating Partnership, together with NHP Management Company and AIMCO/Bethesda Holdings, Inc., borrowed $279 million to pay the cash portion of the purchase price for the Oxford acquisition from Bank of America, N.A., Lehman Commercial Paper Inc., and several other lenders, pursuant to a term loan with a total availability of $302 million.

Tender Offers

During 2000, the Company acquired limited partnership interests in various partnerships in which affiliates of

the Company served as general partner. The Company paid approximately $195 million in cash and OP Units to acquire these limited partnership interests.

Property Dispositions

In 2000, the Company sold 64 apartment properties, 11 commercial properties and 4 land parcels for an aggregate sales price of approximately $573.5 million. Net cash proceeds to the Company from the sales of $154.5 million were used to repay a portion of the Company’s outstanding short-term indebtedness and for other corporate purposes. The results of operations of 47 of these properties were accounted for by the Company under the equity method.

Debt Assumptions and Financings

In August 1999, the Company closed a $300 million revolving credit facility arranged by Bank of America, N.A., Fleet National Bank (successor to BankBoston, N.A.) and First Union National Bank with a syndicate comprised of a total of nine lender participants. Effective March 15, 2000 the credit facility was expanded by $45 million with the potential to expand it by another $55 million to a total of $400 million. Of the $55 million potential expansion, $5 million was expanded on April 14, 2000 bringing the total availability to $350 million. In September 2000, the credit facility was amended and restated. The obligations under the credit facility are secured by a first priority pledge of certain non-real estate assets of the Company and a second priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., AIMCO Holdings, L.P., in certain subsidiaries of AIMCO and certain options to purchase Beneficial Assignee Interests (“BACs”) in OTEF. Borrowings under the credit facility, including the $50 million expansion, are available for general corporate purposes. The credit facility matures in July 2002 and can be extended twice at AIMCO’s option, for a term of one year. The annual interest rate under the new credit facility is based on either LIBOR or a base rate, which is the higher of Bank of America’s reference rate or 0.50% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 2.05% and 2.55%, in the case of LIBOR-based loans, and between 0.55% and 1.05%, in the case of base rate loans, based upon a fixed charge coverage ratio. The weighted average interest rate at December 31, 2000 was 9.16%. The amount available under the credit facility at December 31, 2000 was $95.3 million, less $1.2 million for outstanding letters of credit.

The AIMCO Operating Partnership borrowed $279 million to pay the cash portion of the purchase price for AIMCO’s acquisition of all the stock and other interests (not already owned by AIMCO) held by the principals, officers and directors of ORFG from Bank of America, N.A., Lehman Commercial Paper Inc. and several other lenders pursuant to a term loan with a total availability of $302 million. Transaction costs (including advisory fees) incurred on the term loan were $9.4 million. The borrowers under the term loan are the AIMCO Operating Partnership, NHP Management Company and AIMCO/Bethesda Holdings, Inc., and all obligations thereunder are guaranteed by AIMCO and certain of its subsidiaries. The obligations under the term loan are secured by a first priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., and AIMCO Holdings, L.P. in certain subsidiaries of AIMCO and certain options to purchase Beneficial Assignee Interests (“BACs”) in OTEF and a second priority pledge of certain non-real estate assets of the Company. The annual interest rate under the term loan is based either on LIBOR or a base rate which is the higher of Bank of America, N.A.’s reference rate or 0.5% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 4.0% and 5.0% in the case of LIBOR-based loans, and between 1.0% and 2.0% in the case of base rate loans, based upon the number of months the loan is outstanding. The term loan expires in July 2002. The financial covenants contained in the term loan require the AIMCO Operating Partnership to maintain a ratio of debt to gross asset value of no more than 0.55 to 1.0, and an interest coverage ratio of 2.25 to 1.0, and a fixed charge coverage ratio of at least 1.50 to 1.0. In addition, the term loan limits AIMCO from distributing more than 80% of its Funds From Operations (as defined) (or such amounts as may be necessary for AIMCO to maintain its status as a REIT). The term loan imposes minimum net worth requirements and provides other financial covenants related to certain of AIMCO’s assets and obligations. The total amount outstanding under the term loan at December 31, 2000 was $137 million, of which $74 million is classified as secured short-term financing of the Company, and the remainder is a liability of unconsolidated subsidiaries and, therefore, is included in investment in unconsolidated subsidiaries. Effective January 1, 2001, in connection with the REIT Modernization Act, the remaining liability of $63 million will be consolidated.

During the year ended December 31, 2000, the Company issued $636.0 million of long-term fixed rate, fully amortizing non-recourse mortgage notes payable with a weighted average interest rate of 7.5%. Each of the notes is individually secured by one of 107 properties with no cross-collateralization. The net proceeds after transaction costs of $625.5 million were used to repay existing debt. During the year ended December 31, 2000, the Company also assumed $60.6 million of long-term, fixed-rate, fully amortizing notes payables with a weighted average

interest rate of 7.5% in connection with the acquisition of properties. Each of the notes is individually secured by one of 12 properties with no cross-collateralization.

Equity Offerings

In 2000, the Company issued $230.0 million of preferred stock in three direct placements yielding $227 million of net proceeds. These transactions are summarized below:


					Number		Total Proceeds		Dividend or
					of		in		Distribution
Transaction	Type		Date		Shares		Millions		Rate

Class M Convertible Cumulative Preferred Stock of AIMCO		Direct		Jan. 2000		1,200,000	$	30.0		(1	)




Class N Convertible Cumulative Preferred Stock of AIMCO		Direct		Sept. 2000		4,000,000		100.0		(2	)




Class O Cumulative Convertible Preferred Stock of AIMCO		Direct		Sept. 2000		1,904,762		100.0		(3	)

GROSS PROCEEDS IN 2000							$	230.0

(1)		For the period beginning January 13, 2000 through and including January 13, 2003, the holder of the Class M Preferred Stock is entitled to receive, when and as declared by the Board of Directors, annual cash dividends in an amount per share equal to the greater of (i) $2.125 per year (equivalent to 8.5% of the $25.00 liquidation preference), or (ii) the cash dividends payable on the number of shares of Class A Common Stock (or a portion thereof) into which a share of Class M Preferred Stock is convertible. Beginning with the third anniversary of the date of original issuance, the holder of Class M Preferred Stock is entitled to receive an amount per share equal to the greater of (i) $2.3125 per year (equivalent to 9.25% of the $25.00 liquidation preference), or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class M Preferred Stock is convertible. The 1.2 million shares of Class M Convertible Cumulative Preferred Stock outstanding are convertible into approximately 0.7 million shares of Class A Common Stock.




(2)		Dividends on the Class N Preferred Stock are paid in an amount per share equal to the greater of (i) $2.25 per year (equivalent to 9% per annum of the $25.00 liquidation preference), subject to increase in the event of a change in control of AIMCO or (ii) the cash dividends payable on the number of shares of Class A Common Stock (or a portion thereof) into which a share of Class N Preferred Stock is convertible. Dividends are paid on the Class N Preferred Stock quarterly, beginning on October 1, 2000 (the initial dividend paid on the Class N Preferred Stock was $0.10 per share). The 4.0 million shares of Class N Convertible Cumulative Preferred Stock outstanding are convertible into approximately 1.9 million shares of Class A Common Stock.




(3)		Dividends on the Class O Preferred Stock are paid in an amount per share equal to the greater of (i) $4.725 per year (equivalent to 9% per annum of the $52.50 liquidation preference), subject to increase in the event of a change in control of AIMCO or (ii) the cash dividends payable on the number of shares of Class A Common Stock (or a portion thereof) into which a share of Class O Preferred Stock is convertible. Dividends are paid on the Class O Preferred Stock quarterly, beginning on October 1, 2000 (the initial dividend paid on the Class O Preferred Stock was $0.21 per share). The 1.9 million shares of Class O Cumulative Convertible Preferred Stock outstanding are convertible into approximately 1.9 million shares of Class A Common Stock.

Pending Acquisitions and Dispositions

In the ordinary course of business, the Company engages in discussions and negotiations regarding the acquisition of apartment properties (including interests in entities that own apartment properties). The Company frequently enters into contracts and non-binding letters of intent with respect to the purchase of properties. These contracts are typically subject to certain conditions and permit the Company to terminate the contract in its sole and absolute discretion if it is not satisfied with the results of its due diligence investigation of the properties. The Company believes that such contracts essentially result in the creation of an option on the subject properties and give the Company greater flexibility in seeking to acquire properties.

OTEF Merger

On November 29, 2000, AIMCO and OTEF entered into a merger agreement pursuant to which OTEF would merge with a subsidiary of the AIMCO Operating Partnership. The merger closed on March 26, 2001. The AIMCO Operating Partnership owns all of the outstanding BACs in OTEF. In connection with the Oxford acquisition, AIMCO acquired interests in OTEF’s managing general partner and OTEF’s associate general partner. After the merger, the Company’s partnership interests in OTEF reflects a 1% general partner interest held by OTEF’s managing general partner and a 99% limited partner interest held by the AIMCO Operating Partnership. OTEF was a publicly traded master limited partnership that invested primarily in tax-exempt bonds issued to finance high quality apartment and senior living/health care communities, the majority of which are owned by affiliates of OTEF, including Oxford entities.

In the merger, each BAC was converted into the right to receive 0.299 shares of AIMCO’s Class A Common Stock and 0.547 shares of AIMCO’s Class P Convertible Cumulative Preferred Stock (the “Class P Preferred Stock”). In addition, the BAC holders received a special distribution of $50 million or $6.21 per BAC. The holders of the Class P Preferred Stock are entitled to receive, when and as declared by the Board of Directors, cash dividends in an amount per share equal to the greater of (i) a quarterly dividend payment of $0.5625 or (ii) the cash dividends declared on the number of shares of Class A Common Stock into which a share of Class P Preferred Stock is convertible. Each share of Class P Preferred Stock is convertible at the option of the holder into 0.4464 shares of Class A Common Stock. The initial conversion ratio was in excess of the fair market value of the common stock on the commitment date. The Class P Preferred Stock is senior to the Class A Common Stock as to dividends and liquidation. Upon liquidation, dissolution, or winding up of AIMCO, before payment or distribution by AIMCO shall be made to any holders of the Class A Common Stock, the holders of the Class P Preferred Stock are entitled to receive a liquidation preference of $25 per share, plus accumulated, accrued and unpaid dividends. The Company filed a Registration Statement on Form S-4 with the Securities and Exchange Commission that was declared effective on February 23, 2001.

Financial Information About Industry Segments

The Company operates in one industry segment, the ownership, operation and management of a diversified portfolio of apartment properties. See the consolidated financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K for financial information relating to the Company. See Footnote 22 for discussion of sources of revenues from the various components of the Company’s operations.

Operating and Financial Strategies

The Company strives to meet its objective of providing long-term, predictable Funds From Operations (“FFO”) per share of Class A Common Stock, less an allowance for capital replacements of $300 per apartment unit, by implementing its operating and financing strategies which include the following:

	•		Acquisition of Properties at Less Than Replacement Cost. AIMCO attempts to acquire properties at a significant discount to their replacement cost.

	•		Geographic Diversification. AIMCO operates in 47 states, the District of Columbia and Puerto Rico. This geographic diversification insulates the Company, to some degree, from inevitable downturns in any one market. AIMCO’s net income before depreciation and interest expense is earned in more than 164 local markets. In 2000, the largest single market (Washington D.C. Metro area) contributed 8.3% to net income before depreciation and interest expense, and the five largest markets contributed 30.9%.

	•		Market Growth. The Company seeks to operate in markets where population and employment growth are expected to exceed the national average and where it believes it can become a regionally significant owner or manager of properties.

	•		Product Diversification. The Company’s portfolio of apartment properties spans a wide range of apartment community types, both within and among markets, including garden and high-rise apartments, as well as corporate and student housing.

	•		Capital Replacement. AIMCO believes that the physical condition and amenities of its apartment communities are important factors in its ability to maintain and increase rental rates. The Company allocates approximately $300 annually per owned apartment unit for capital replacements, and reserves unexpended amounts for future capital replacements.

	•		Debt Financing. AIMCO’s strategy is generally to incur debt to increase its return on equity while maintaining acceptable interest coverage ratios. AIMCO seeks to maintain a ratio of free cash flow to combined interest expense and preferred stock dividends of between 2:1 and 3:1 and to match debt maturities to the character of the assets financed. For the year ended December 31, 2000, the Company was within these targets. The Company uses predominantly long-term, fixed-rate and self-amortizing non-recourse debt in order to avoid the refunding or repricing risks of short-term borrowings. The Company uses short-term debt financing to fund acquisitions and generally expects to refinance such borrowings with proceeds from equity offerings or long-term debt financings. As of December 31, 2000, approximately 8% of AIMCO’s outstanding debt was short-term debt and 92% was long-term debt.

	•		Dispositions. While the Company holds all its properties for investment, the Company sells properties when they do not meet its return on investment criteria or are located in areas where AIMCO does not believe that the long-term values justify the continued investment in the properties.

	•		Dividend Policy. AIMCO pays dividends on its Class A Common Stock to distribute a significant portion of its profitability to its stockholders. The Company distributed 59.9%, 61.3% and 65.8% of FFO to holders of Class A Common Stock for the years ended December 31, 2000, 1999 and 1998, respectively. It is the present policy of the Board of Directors to increase the dividend annually in an amount equal to one-half of the projected increase in FFO, adjusted for capital replacements, subject to minimum distribution requirements to maintain its REIT status.

Growth Strategies

The Company seeks growth through two primary sources — internal expansion and acquisitions.

Internal Growth Strategies

The Company pursues internal growth primarily through the following strategies:

	•		Revenue Increases. The Company increases rents where feasible and seeks to improve occupancy rates.

	•		Controlling Expenses. Cost reductions are accomplished by local focus on the regional operating center level and by exploiting economies of scale. As a result of the size of its portfolio and its creation of regional concentrations of properties, the Company has the ability to leverage fixed costs for general and administrative expenditures and certain operating functions, such as insurance, information technology and training, over a large property base.

	•		Redevelopment of Properties. The Company believes redevelopment of selected properties in superior locations provides advantages over development of new properties. AIMCO believes that redevelopment generally allows the Company to maintain rents comparable to new properties and, compared to development of new properties, can be accomplished with relatively lower financial risk, in less time and with reduced delays due to governmental regulation.

	•		Expansion of Properties. The Company believes that expansion within or adjacent to properties already owned or managed by the Company also provides growth opportunities at lower risk than new development. Such expansion can offer cost advantages to the extent common area amenities and on-site management personnel can service the property expansions. AIMCO’s current policy is to limit redevelopments and expansions to approximately 10% of total equity market capitalization.

	•		Ancillary Services. The Company believes that its ownership and management of properties provides it with unique access to a customer base that allows it to provide additional services and thereby increase occupancy, increase rents and generate incremental revenue. The Company currently provides cable television, telephone services, appliance rental, and carport, garage and storage space rental at certain properties.

Acquisition Strategies

The Company believes its acquisition strategies will increase profitability and predictability of earnings by increasing its geographic diversification, economies of scale and opportunities to provide ancillary services to tenants at its properties. Since AIMCO’s initial public offering in July 1994, the Company has completed numerous acquisition and management transactions, expanding its portfolio of owned or managed properties from 132 apartment properties with 29,343 units to 1,720 apartment properties with 326,289 units as of December 31, 2000.

The Company acquires additional properties primarily in three ways:

	•		Direct Acquisitions. AIMCO may directly, including through mergers and other business combinations, acquire individual properties or portfolios of properties and controlling interests in entities that own or control such properties or portfolios. To date, a significant portion of AIMCO’s growth has resulted from the acquisition of other companies that owned or controlled properties.

	•		Acquisition of Managed Properties. AIMCO’s property management operations have contributed to its acquisition activities. Since AIMCO’s initial public offering, the Company has acquired from its managed portfolio 16 properties comprising 5,697 units for total consideration of $189.9 million. In addition, the Company acquired interests in 167 Oxford properties comprising 36,949 units for a total purchase price of $1,189 million.

	•		Increasing its Interest in Partnerships. For properties where AIMCO owns a general partnership interest in the property-owning partnership, the Company may seek to acquire, subject to its fiduciary duties, the interests in the partnership held by third parties for cash or, in some cases, in exchange for OP Units. AIMCO has completed approximately 1,800 tender offers with respect to various partnerships and has purchased additional interests in such partnerships for cash and for OP Units.

Property Management Strategies

AIMCO seeks to improve the operating results from its property management business by, among other methods, combining centralized financial control and uniform operating procedures with localized property management decision-making and market knowledge. Currently, AIMCO’s management operations are organized into 25 regional operating centers. Each of the regional operating centers is supervised by a Regional Vice-President.

Taxation of the Company

The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, commencing with its taxable year ended December 31, 1994, and the Company intends to continue to operate in such a manner. The Company’s current and continuing qualification as a REIT depends on its ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership.

If the Company qualifies for taxation as a REIT, it will generally not be subject to U.S. federal corporate income tax on its net income that is currently distributed to stockholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from investment in a corporation. If the Company fails to qualify as a REIT in any taxable year, its taxable income will be subject to U.S. federal income tax at regular corporate rates (including any applicable alternative minimum tax). Even if the Company qualifies as a REIT, it may be subject to certain state and local income taxes and to U.S. federal income and excise taxes on its undistributed income.

If in any taxable year the Company fails to qualify as a REIT and incurs additional tax liability, the Company may need to borrow funds or liquidate certain investments in order to pay the applicable tax and the Company would not be compelled to make distributions under the Internal Revenue Code. Unless entitled to relief under certain statutory provisions, the Company would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. Although the Company currently intends to operate in a manner designed to qualify as a REIT, it is possible that future economic, market, legal, tax or other considerations may cause the Company to fail to qualify as a REIT or may cause the Board of Directors to revoke the REIT election.

The Company and its stockholders may be subject to state or local taxation in various state or local jurisdictions, including those in which it or they transact business or reside. The state and local tax treatment of the Company and its stockholders may not conform to the U.S. federal income tax treatment.

Competition

There are numerous housing alternatives that compete with the Company’s properties in attracting residents. The Company’s properties compete directly with other multi-family rental apartments and single family homes that are available for rent or purchase in the markets in which the Company’s properties are located. The Company’s

properties also compete for residents with new and existing condominiums. The number of competitive properties in a particular area could have a material effect on the Company’s ability to lease apartment units at its properties and on the rents charged. The Company competes with numerous real estate companies in acquiring, developing and managing multi-family apartment properties and seeking tenants to occupy its properties. In addition, the Company competes with numerous property management companies in the markets where the properties managed by the Company are located.

Regulation

General

Multi-family apartment properties are subject to various laws, ordinances and regulations, including regulations relating to recreational facilities such as swimming pools, activity centers and other common areas. Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions, as well as changes in laws affecting development, construction and safety requirements, may result in significant unanticipated expenditures, which would adversely affect the Company’s cash flows from operating activities. In addition, future enactment of rent control or rent stabilization laws or other laws regulating multi-family housing may reduce rental revenue or increase operating costs in particular markets.

Laws Benefiting Disabled Persons

Under the Americans with Disabilities Act of 1990, all places of public accommodation are required to meet certain Federal requirements related to access and use by disabled persons. These requirements became effective in 1992. A number of additional Federal, state and local laws may also require modifications to the Company’s properties, or restrict certain further renovations of the properties, with respect to access thereto by disabled persons. For example, the Fair Housing Amendments Act of 1988 requires apartment properties first occupied after March 13, 1990 to be accessible to the handicapped. Noncompliance with these laws could result in the imposition of fines or an award of damages to private litigants and also could result in an order to correct any non-complying feature, which could result in substantial capital expenditures. Although the Company believes that its properties are substantially in compliance with present requirements, it may incur unanticipated expenses to comply with these laws.

Regulation of Affordable Housing

As of December 31, 2000, the Company owned or controlled 59 properties that benefit from governmental programs intended to provide housing to people with low or moderate incomes. AIMCO also held an equity interest in 428 properties with a combined average ownership percentage of 28% and managed for third parties and affiliates 298 properties that benefit similarly. These programs, which are usually administered by the United States Department of Housing and Urban Development (“HUD”) or state housing finance agencies, typically provide mortgage insurance, favorable financing terms or rental assistance payments to the property owners. As a condition to the receipt of assistance under these programs, the properties must comply with various requirements, which typically limit rents to pre-approved amounts. If permitted rents on a property are insufficient to cover costs, a sale of the property may become necessary, which could result in a loss of management fee revenue. The Company must obtain the approval of HUD in order to manage, or acquire a significant interest in, a HUD-assisted or HUD-insured property. This approval process is commonly referred to as “2530 Clearance.”

Environmental

Various Federal, state and local laws subject property owners or operators to liability for the costs of removal or remediation of certain hazardous substances present on a property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of the hazardous substances. The presence of, or the failure to properly remediate hazardous substances may adversely affect occupancy at contaminated apartment communities and the ability to sell or borrow against contaminated properties. In addition to the costs associated with investigation and remediation actions brought by governmental agencies, the presence of hazardous wastes on a property could result in personal injury or similar claims by private plaintiffs. Various laws also impose liability for the cost of removal or remediation of hazardous substances at a disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous or toxic substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of our properties, the Company could potentially be liable for environmental liabilities or costs associated with its properties or properties it may acquire or manage in the future.

Insurance

Management believes that the Company’s properties are covered by adequate fire, earthquake, hurricane, flood and property insurance provided by reputable companies and with commercially reasonable deductibles and limits.

Employees

The Company has a staff of employees performing various acquisition, redevelopment and management functions. The Company, through the AIMCO Operating Partnership and the management companies, has approximately 9,500 employees, most of whom are employed at the property level. Certain of its employees are represented by unions. The Company has never experienced a work stoppage. The Company believes it maintains satisfactory relations with its employees.

ITEM 2. Properties

The Company’s properties are located in 47 states, Puerto Rico and the District of Columbia. The properties are managed by four Division Vice-Presidents controlling 25 regional operating centers. The following table sets forth information for the regional operating centers as of December 31, 2000:


			Number of		Number of
Regional Operating Center	Division		Properties		Units

Chicago, IL		Far West		62		12,414




Denver, CO		Far West		78		12,528




Kansas City, MO		Far West		76		11,255




Los Angeles, CA		Far West		98		15,623




Lansing, MI		Far West		41		8,851




Phoenix, AZ		Far West		58		13,942

				413		74,613

Allentown, PA		East		92		12,283




Columbia, SC		East		76		14,590




Greenville, SC		East		95		13,319




Philadelphia, PA		East		40		12,734




Rockville I, MD		East		39		12,761




Rockville II, MD		East		53		8,838




Tarrytown, NY		East		58		9,178

				453		83,703

Atlanta, GA		Southeast		58		11,020




Boca Raton, FL		Southeast		56		13,019




Mobile, AL		Southeast		67		11,554




Nashville, TN		Southeast		68		13,409




Orlando, FL		Southeast		62		11,793




Tampa, FL		Southeast		57		13,070

				368		73,865

Austin, TX		West		58		10,543




Columbus, OH		West		59		10,504




Dallas I, TX		West		42		8,821




Dallas II, TX		West		63		12,730




Houston, TX		West		61		14,562




Indianapolis, IN		West		61		16,247

				344		73,407

Properties not currently managed by AIMCO				142		20,701

				1,720		326,289

At December 31, 2000, the Company owned or controlled 566 properties containing 153,872 units. These owned or controlled properties contain, on average, 272 apartment units, with the largest property containing 2,907 apartment units. These properties offer residents a range of amenities, including swimming pools, clubhouses, spas, fitness centers, tennis courts and saunas. Many of the apartment units offer design and appliance features such as vaulted ceilings, fireplaces, washer and dryer hook-ups, cable television, balconies and patios. In addition, at December 31, 2000, the Company held an equity interest in 683 properties containing 111,748 units, and managed 471 other properties containing 60,669 units. The Company’s total portfolio of 1,720 properties contain, on average, 190 apartment units, with the largest property containing 2,907 apartment units.

Substantially all of the properties owned or controlled by the Company are encumbered by mortgage indebtedness or serve as collateral for the Company’s indebtedness. At December 31, 2000, the Company had aggregate mortgage indebtedness totaling $4,031.4 million, which was secured by 537 properties with a combined net book value of $6,054.6 million, having an aggregate weighted average interest rate of 7.89%. As of December 31, 2000, approximately 8% of AIMCO’s outstanding debt was short-term debt and 92% was long-term debt. See the financial statements included elsewhere in this Annual Report on Form 10-K for additional information about the Company’s indebtedness.

ITEM 3. Legal Proceedings

General

The Company is a party to various legal actions resulting from its operating activities. These actions are routine litigation and administrative proceedings arising in the ordinary course of business, some of which are covered by liability insurance, and none of which are expected to have a material adverse effect on the consolidated financial condition or results of operations of the Company and its subsidiaries taken as a whole.

Limited Partnerships

In connection with the Company’s acquisitions of interests in limited partnerships that own properties, the Company and its affiliates are sometimes subject to legal actions, including allegations that such activities may involve breaches of fiduciary duties to the limited partners of such partnerships or violations of the relevant partnership agreements. The Company believes it complies with its fiduciary obligations and relevant partnership agreements, and does not expect such legal actions to have a material adverse effect on the consolidated financial condition or results of operations of the Company and its subsidiaries taken as a whole. The Company may incur costs in connection with the defense or settlement of such litigation, which could adversely affect the Company’s desire or ability to complete certain transactions or otherwise have a material adverse effect on the Company and its subsidiaries.

Pending Investigations of HUD Management Arrangements

In July 1999, The National Housing Partnership (“NHP”) received a grand jury subpoena requesting documents relating to NHP’s management of HUD-assisted or HUD-insured multi-family projects and NHP’s operation of a group purchasing program created by NHP, known as Buyers Access. The subpoena relates to the same subject matter as subpoenas NHP received in October and December of 1997 from the HUD Inspector General. To date, neither the HUD Inspector General nor the grand jury has initiated any action against NHP or AIMCO or, to NHP’s or AIMCO’s knowledge, any owner of a HUD property managed by NHP. AIMCO believes that NHP’s operations and programs are in compliance, in all material respects, with all laws, rules and regulations relating to HUD-assisted or HUD-insured properties. AIMCO is cooperating with the investigation and does not believe that the investigation will result in a material adverse effect on the financial condition of the Company. However, as with any similar investigation, there can be no assurance that these will not result in material fines, penalties or other costs that may impact the Company’s future results of operations or cash flow.

ITEM 4. Submission of Matters to a Vote of Security Holders

None.

PART II

ITEM 5. Market for the Registrant’s Common Equity and Related Stockholder Matters

AIMCO’s Class A Common Stock has been listed and traded on the NYSE under the symbol “AIV” since July 22, 1994. The following table sets forth the quarterly high and low sales prices of the Class A Common Stock, as reported on the NYSE, and the dividends paid by the Company for the periods indicated.

Dividends

Paid

Quarter ended

High

Low

(per share)

1998

March 31, 1998

38 9/16

34 1/4

0.5625

June 30, 1998

39 7/8

36 1/2

0.5625

September 30, 1998

0.5625

December 31, 1998

37 3/8

0.5625

1999

March 31, 1999

41 5/8

0.6250

June 30, 1999

44 1/16

35 5/16

0.6250

September 30, 1999

42 5/8

37 5/16

0.6250

December 31, 1999

40 3/16

34 1/16

0.6250

2000

March 31, 2000

39 15/16

36 5/16

0.7000

June 30, 2000

45 1/4

37 3/4

0.7000

September 30, 2000

49 3/8

43 11/16

0.7000

December 31, 2000

50 1/16

42 5/8

0.7000

2001

March 31, 2001 (through March 8, 2001)

45 9/10

0.7800

(1)

On January 24, 2001, the Company’s Board of Directors declared a cash dividend of $0.78 per share of Class A Common Stock, paid on February 9, 2001 to stockholders of record on February 2, 2001.

On March 8, 2001, there were 71,521,685 shares of Class A Common Stock outstanding, held by 2,776 stockholders of record.

AIMCO, as a REIT, is required to distribute annually to holders of common stock at least 90% (95% in 2000) of its “real estate investment trust taxable income,” which, as defined by the Internal Revenue Code and Treasury regulations, is generally equivalent to net taxable ordinary income. AIMCO measures its economic profitability and intends to pay regular dividends to its stockholders based on FFO during the relevant period. However, the future payment of dividends by AIMCO will be at the discretion of the Board of Directors and will depend on numerous factors including AIMCO’s financial condition, its capital requirements, the annual distribution requirements under the provisions of the Internal Revenue Code applicable to REITs and such other factors as the Board of Directors deems relevant.

From time to time, AIMCO issues shares of Class A Common Stock in exchange for OP Units tendered to the AIMCO Operating Partnership for redemption in accordance with the terms and provisions of the agreement of limited partnership of the AIMCO Operating Partnership. Such shares are issued based on an exchange ratio of one share for each OP Unit. The shares are issued in exchange for OP Units in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(2) thereof. During 2000, a total of 200,696 shares of Class A Common Stock were issued in exchange for OP Units.

During 2000, the Company repurchased and retired approximately 69,000 shares of Class A Common Stock at a net price of $2.6 million, at an average share price of $37.39 per share

ITEM 6. Selected Financial Data

The following selected financial data for AIMCO is based on audited historical financial statements. This information should be read in conjunction with such financial statements, including the notes thereto, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included herein.


		For the Year Ended December 31,

		2000			1999 (1)			1998 (1)			1997 (1)			1996 (1)

OPERATING DATA:




RENTAL PROPERTY OPERATIONS:




Rental and other property revenues		$	1,051,000		$	533,917		$	377,139		$	193,006		$	100,516




Property operating expenses			(426,177	)		(213,798	)		(147,541	)		(76,168	)		(38,400	)




Owned property management expenses			(13,663	)		(1,650	)		(2,009	)		(1,353	)		(324	)




Depreciation			(323,321	)		(131,753	)		(84,635	)		(37,741	)		(19,556	)

Income from rental property operations			287,839			186,716			142,954			77,744			42,236

SERVICE COMPANY BUSINESS:




Management fees and other income from affiliates			49,692			38,377			20,824			10,033			5,945




Management and other expenses			(37,509	)		(17,033	)		(16,960	)		(10,961	)		(6,150	)




Amortization of intangibles			(6,698	)		(14,297	)		(8,735	)		(948	)		(500	)

Income (loss) from service company business			5,485			7,047			(4,871	)		(1,876	)		(705	)

General and administrative expenses			(7,813	)		(13,112	)		(13,568	)		(5,396	)		(1,512	)




Interest expense			(269,826	)		(140,094	)		(89,424	)		(51,385	)		(24,802	)




Interest income			66,241			55,320			29,368			8,676			523




Equity in earnings (losses) of unconsolidated real estate partnerships			7,618			(4,467	)		(4,854	)		(1,798	)		—




Equity in earnings (losses) of unconsolidated subsidiaries			(2,290	)		(5,013	)		5,845			3,273			—




Minority interest in other entities			(3,872	)		(900	)		(468	)		1,008			(111	)

Income from operations			83,382			85,497			64,982			30,246			15,629




Gain (loss) on disposition of properties			26,335			(1,785	)		4,674			2,720			44

Income before extraordinary item and minority interest in Operating Partnership			109,717			83,712			69,656			32,966			15,673




Extraordinary item — early extinguishment of debt			—			—			—			(269	)		—

Income before minority interest in Operating Partnership			109,717			83,712			69,656			32,697			15,673




Minority interest in Operating Partnership			(10,539	)		(6,185	)		(5,182	)		(4,064	)		(2,689	)

Net income			99,178			77,527			64,474			28,633			12,984




Net income attributable to preferred stockholders			63,183			53,453			26,533			2,315			—

Net income attributable to common stockholders		$	35,995		$	24,074		$	37,941		$	26,318		$	12,984

OTHER INFORMATION:




Total owned or controlled properties (end of period)			566			373			242			147			94




Total owned or controlled apartment units (end of period)			153,872			106,148			63,086			40,039			23,764




Total equity properties (end of period)			683			751			902			515			18




Total equity apartment units (end of period)			111,748			133,113			170,243			83,431			3,611




Units under management (end of period)			60,669			124,201			146,034			69,587			15,434




Basic earnings per common share		$	0.53		$	0.39		$	0.84		$	1.09		$	1.05




Diluted earnings per common share		$	0.52		$	0.38		$	0.80		$	1.08		$	1.04




Dividends paid per common share		$	2.80		$	2.50		$	2.25		$	1.85		$	1.70




BALANCE SHEET INFORMATION:




Real estate, before accumulated depreciation		$	7,012,452		$	4,512,697		$	2,802,598		$	1,657,207		$	865,222




Real estate, net of accumulated depreciation			6,099,189			4,096,200			2,573,718			1,503,922			745,145




	Total assets		7,699,874			5,684,951			4,248,800			2,100,510			827,673




	Total indebtedness		4,360,115			2,584,289			1,660,715			808,530			522,146




Mandatorily redeemable convertible preferred securities			32,330			149,500			149,500			—			—




Stockholders’ equity			2,501,657			2,259,396			1,902,564			1,045,300			215,749

(1)

Certain reclassifications have been made to 1999, 1998, 1997 and 1996 amounts to conform with the 2000 presentation. These reclassifications represent certain eliminations of self-charged management fee income and expenses in accordance with consolidation accounting principles.

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements in certain circumstances. Certain information included in this Report, the Company’s Annual Report to Stockholders and other filings under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (as well as information communicated orally or in writing between the dates of such filings) contains or may contain information that is forward looking, including, without limitation, statements regarding the effect of acquisitions, the Company’s future financial performance and the effect of government regulations. Actual results may differ materially from those described in the forward looking statements and will be affected by a variety of risks and factors including, without limitation, national and local economic conditions, the general level of interest rates, terms of governmental regulations that affect the Company and interpretations of those regulations, the competitive environment in which the Company operates, financing risks, including the risk that the Company’s cash flows from operations may be insufficient to meet required payments of principal and interest, real estate risks, including variations of real estate values and the general economic climate in local markets and competition for tenants in such markets, acquisition and development risks, including failure of such acquisitions to perform in accordance with projections, and possible environmental liabilities, including costs which may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by the Company. In addition, the Company’s continued qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code. Readers should carefully review the Company’s financial statements and the notes thereto, as well as the risk factors described in the documents the Company files from time to time with the Securities and Exchange Commission.

The following discussion and analysis of the results of operations and financial condition of the Company should be read in conjunction with the financial statements incorporated by reference in Item 8 of this Annual Report on Form 10-K. The following discussion of results of operations is based on net income calculated under accounting principles generally accepted in the United States. The Company, however, considers Funds From Operations, less a reserve for capital replacements, to be a more meaningful measure of economic performance.

Results of Operations

Comparison of the Year Ended December 31, 2000 to the Year Ended December 31, 1999

Net Income

The Company recognized net income of $99.2 million, and net income attributable to common stockholders of $36.0 million, for the year ended December 31, 2000, compared to net income and net income attributable to common stockholders of $77.5 million and $24.1 million, respectively, for the year ended December 31, 1999. Net income attributable to common stockholders represents net income less dividends accrued on preferred stock.

The following paragraphs discuss the results of operations in detail.

Consolidated Rental Property Operations

The increases in consolidated rental property operations resulted from improved same store sales results, acquisitions of properties in 2000 and 1999, and the purchase of limited partnership interests from unaffiliated third parties, which gave the Company a controlling interest in partnerships owning 201 properties in 2000.

Consolidated rental and other property revenues from the Company’s owned and controlled properties totaled $1,051.0 million for the year ended December 31, 2000, compared to $533.9 million for the year ended December 31, 1999, an increase of $517.1 million, or 96.9%. Of the $517.1 million increase, 92.4% was related to the purchase of controlling interests in limited partnerships owning 201 properties, which resulted in these properties being consolidated during 2000, 4.9% was due to improved same store sales and the remaining 2.7% was due to acquisitions of properties in 2000 and 1999.

Consolidated property operating expenses totaled $426.2 million for the year ended December 31, 2000, compared to $213.8 million for the year ended December 31, 1999, an increase of $212.4 million, or 99.3%. The purchase of controlling interests in limited partnerships owning 201 properties, which resulted in these properties being consolidated during 2000, contributed 89.0% of the increase; 3.6% was due to same store sales increases and

the remaining 7.4% was due to acquisitions of properties in 2000 and 1999. Property operating expenses consist of on-site payroll costs, utilities (net of reimbursements received from tenants), contract services, turnover costs, repairs and maintenance, advertising and marketing, property taxes and insurance. The Company believes that energy costs will not have a material adverse effect on its results of operations.

Consolidated owned property management expenses, representing the costs of managing the Company’s owned or controlled properties, totaled $13.7 million for the year ended December 31, 2000, compared to $1.7 million for the year ended December 31, 1999, an increase of $12.0 million. The increase was due to the purchase of controlling interests in limited partnerships owning 201 properties, which resulted in these properties being consolidated in 2000.

Consolidated Service Company Business

Income from the consolidated service company business was $5.5 million for the year ended December 31, 2000, compared to $7.0 million for the year ended December 31, 1999, a decrease of $1.5 million or 21.4%. Before consideration of the intercompany allocation of general and administrative expenses and the non-cash charge for the amortization of intangibles, the income from the consolidated service company was comparable to the prior year. The decrease in the amortization of intangibles of $7.6 million was due to property management and asset management contract intangibles that were fully amortized in 1999. The increase in the allocation of general and administrative expenses to the consolidated service company is attributable to the increase in the consolidated properties, whereby the management fee revenue is included in the consolidated service company. Accordingly, the overhead costs associated with managing these properties were reallocated from general and administrative expenses to the consolidated service company to more closely align the expenses with the revenue from the operating activity.

Consolidated General and Administrative Expenses

Consolidated general and administrative expenses before allocation (see allocation description above in consolidated service company business) totaled $18.1 million for the year ended December 31, 2000, compared to $15.2 million for the year ended December 31, 1999, an increase of $2.9 million, or 19.1%. The increase is due to additional professional fees incurred to support information technology enhancements and operational initiatives.

Consolidated Interest Expense

Consolidated interest expense, which includes the amortization of deferred finance costs, totaled $269.8 million for the year ended December 31, 2000, compared to $140.1 million for the year ended December 31, 1999, an increase of $129.7 million or 92.6%. Of the $129.7 million increase, 46.3% was due to the Company acquiring controlling interests in partnerships owning 201 properties and the subsequent consolidation of these properties. Interest expense incurred in connection with the 2000 and 1999 acquisitions (including the Oxford acquisition) contributed 47.6% of the increase. The remaining 6.1% was due to increased usage of the Company’s credit facility.

Consolidated Interest Income

Consolidated interest income totaled $66.2 million for the year ended December 31, 2000, compared to $55.3 million for the year ended December 31, 1999, an increase of $10.9 million or 19.7%. The $66.2 million of interest income in 2000 consisted of recurring interest income of $39.8 million and accretion of loan discounts of $26.4 million. In 1999, the $55.3 million of interest income consisted of recurring interest income of $22.9 million and accretion of loan discounts of $32.4 million. Recurring interest income increased $16.9 million as a result of the following: during 2000, (i) the Company increased notes receivable from general partner loans by approximately $81.7 million, (ii) as a result of improved property operations certain of the outstanding notes receivable in the form of general partner loans remitted cash payments on a recurring basis. The combination of these factors resulted in $10.7 million of the increase in recurring interest income. The remaining recurring interest income increase of $6.2 million resulted from higher average cash balances maintained in money market and interest bearing accounts during 2000. The Company holds investments in notes receivable which were either extended by the Company and are carried at the face amount plus accrued interest (“par value notes”) or were made by predecessors whose positions have been acquired by the Company at a discount and are carried at the acquisition amount using the cost recovery method (“discounted notes”). The decrease in accretion of $6.0 million is due to fewer loans and fewer events allowing the Company to recognize accretion on certain discounted notes.

Equity in Earnings (Losses) of Unconsolidated Real Estate Partnerships

Equity in earnings of unconsolidated real estate partnerships totaled $7.6 million for the year ended December 31, 2000, compared to a loss of $4.5 million for the year ended December 31, 1999, an increase of $12.1 million. Of the $12.1 million increase, $2.1 million was due to acquisition of interests in Oxford properties and the remaining was due to the acquisition of equity interests in better performing multi-family apartment properties where the Company owns a general partnership interest.

Equity in Earnings (Losses) of Unconsolidated Subsidiaries

Equity losses from unconsolidated subsidiaries totaled $2.3 million for the year ended December 31, 2000, compared to $5.0 million for the year ended December 31, 1999, a decrease of $2.7 million or 54.0%. The decrease in the equity loss from unconsolidated subsidiaries is due to interest income earned on general partner notes acquired in 2000 through the acquisition of interests in the Oxford properties.

Minority Interest in Other Entities

Minority interest in other entities totaled $3.9 million for the year ended December 31, 2000, compared to $0.9 million for the year ended December 31, 1999, an increase of $3.0 million. The increase is due to the consolidation of 201 additional properties in 2000, as compared to the consolidation of 125 additional properties in 1999.

Gain (Loss) on Disposition of Properties

Gain (loss) on disposition of properties totaled $26.3 million for the year ended December 31, 2000, compared to a gain(loss) of ($1.8) million for the year ended December 31, 1999, an increase of $28.1 million. The sales in both periods are of properties that are considered by management to be inconsistent with the Company’s long-term investment strategy.

Comparison of the Year Ended December 31, 1999 to the Year Ended December 31, 1998

Net Income

The Company recognized net income of $77.5 million, and net income attributable to common stockholders of $24.1 million, for the year ended December 31, 1999, compared to net income and net income attributable to common stockholders of $64.5 million and $37.9 million, respectively, for the year ended December 31, 1998. Net income attributable to common stockholders represents net income less dividends accrued on preferred stock.

The following paragraphs discuss the results of operations in detail.

Consolidated Rental Property Operations

The increases in consolidated rental property operations resulted from improved same store sales results, acquisitions of properties in 1999 and 1998, and through the purchase of limited partnership interests from unaffiliated third parties that gave the Company a controlling interest in partnerships owning 125 properties in 1999.

Consolidated rental and other property revenues from the Company’s owned and controlled properties totaled $533.9 million for the year ended December 31, 1999, compared to $377.1 million for the year ended December 31, 1998, an increase of $156.8 million, or 41.6%. Of the $156.8 million increase, 49.4% was related to the purchase of controlling interests in limited partnerships owning 125 properties, which resulted in these properties being consolidated in 1999, 4.3% was due to improved same store sales and the remaining 46.3% was due to acquisitions of properties in 1999 and 1998.

Consolidated property operating expenses totaled $213.8 million for the year ended December 31, 1999, compared to $147.5 million for the year ended December 31, 1998, an increase of $66.3 million, or 44.9%. The purchase of controlling interests in limited partnerships owning 125 properties, which resulted in these properties being consolidated during 1999, contributed 47.0% of the increase; 11.4% was due to same store sales increases and the remaining 42.6% was due to acquisitions of properties in 1999 and 1998. Property operating expenses consist of on-site payroll costs, utilities (net of reimbursements received from tenants), contract services, turnover costs, repairs and maintenance, advertising and marketing, property taxes and insurance.

Consolidated owned property management expenses, representing the costs of managing the Company’s owned

or controlled properties, remained consistent with $1.7 million for the year ended December 31, 1999, compared to $2.0 million for the year ended December 31, 1998, a decrease of $0.3 million, or 15.0%.

Consolidated Service Company Business

Income from the consolidated service company business was $7.0 million for the year ended December 31, 1999, compared to a loss of $4.9 million for the year ended December 31, 1998, an increase of $11.9 million. Management contracts acquired in the Company’s merger with Insignia Financial Group, Inc and Insignia Properties Trust that are held by the Company contributed 22.9% of the increase. The transfer of majority-owned management contracts from the unconsolidated management companies to the AIMCO Operating Partnership contributed another 49.1% of the change. When the Company owns at least a 40% interest in a real estate partnership, the management contract with that real estate partnership is assigned to the AIMCO Operating Partnership, increasing the amount of revenues recognized by the consolidated service company operations.

Consolidated General and Administrative Expenses

Consolidated general and administrative expenses before allocation remained relatively unchanged with $15.2 million for the year ended December 31, 1999, compared to $13.8 million for the year ended December 31, 1998, an increase of $1.4 million, or 10.1%.

Consolidated Interest Expense

Consolidated interest expense, which includes the amortization of deferred finance costs, totaled $140.1 million for the year ended December 31, 1999, compared to $89.4 million for the year ended December 31, 1998, an increase of $50.7 million or 56.7%. Interest expense incurred in connection with the 1999 and 1998 acquisitions contributed 52.5% of the increase. Another contributing factor was the consolidation of an additional 125 properties when control was obtained resulting in 22.5% of the increase from 1998.

Consolidated Interest Income

Consolidated interest income totaled $55.3 million for the year ended December 31, 1999, compared to $29.4 million for the year ended December 31, 1998, an increase of $25.9 million or 88.1%. The Company holds investments in notes receivable which were either extended by the Company and are carried at the face amount plus accrued interest (“par value notes”) or were made by predecessors whose positions have been acquired by the Company at a discount and are carried at the acquisition amount using the cost recovery method (“discounted notes”). The increase in interest income was due to the recognition of interest income that had previously been deferred and portions of the related discounts for certain discounted notes. As required by generally accepted accounting principles, based upon closed or pending transactions, market conditions, and improved operations of the obligor, the collectibility of such notes is now believed by management to be probable and the amounts and timing of collections are estimable.

Same Store Property Operating Results

The Company defines “same store” properties as conventional apartment communities in which AIMCO owned greater than ten percent in the comparable periods of 2000 and 1999. Total portfolio includes same store properties plus acquisition properties and redevelopment properties. The following table summarizes the unaudited conventional rental property operations in 2000 and 1999, on a “same store” and a total portfolio basis (dollars in thousands):


	Same Store						Total Portfolio

	2000			1999			2000			1999

Properties		540			540			585			561




Apartment Units		148,069			148,069			162,329			155,287




Average Physical Occupancy		94.9	%		95.0	%		92.8	%		92.0	%




Average Rent Collected / Occupied Unit / Month	$	646		$	621		$	651		$	620




Revenues	$	825,412		$	786,795		$	912,849		$	812,773




Expenses		313,172			302,260			357,232			311,920

Net Operating Income	$	512,240		$	484,535		$	555,617		$	500,853

Funds From Operations

The Company measures its economic profitability based on Funds From Operations (“FFO”), less a reserve for capital replacements of $300 per apartment unit. The Company’s management believes that FFO, less such a reserve, provides investors with an understanding of the Company’s ability to incur and service debt and make capital expenditures. The Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss), computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains and losses from debt restructuring and sales of property, plus real estate related depreciation and amortization (excluding amortization of financing costs), and after adjustments for unconsolidated partnerships and joint ventures. The Company calculates FFO based on the NAREIT definition, as further adjusted for minority interest in the AIMCO Operating Partnership, amortization of intangibles, the non-cash deferred portion of the income tax provision for unconsolidated subsidiaries and less the payment of dividends on perpetual and non-dilutive convertible preferred stock. FFO should not be considered an alternative to net income or net cash flows from operating activities, as calculated in accordance with GAAP, as an indication of the Company’s performance or as a measure of liquidity. FFO is not necessarily indicative of cash available to fund future cash needs. In addition, there can be no assurance that the Company’s basis for computing FFO is comparable with that of other real estate investment trusts.

For the years ended December 31, 2000, 1999 and 1998, the Company’s FFO is calculated as follows (amounts in thousands):


		2000			1999			1998

Income before minority interest in Operating Partnership		$	109,717		$	83,712		$	69,656




	Real estate depreciation, net of minority interests		302,109			121,689			80,369




	Real estate depreciation related to unconsolidated entities		59,360			104,764			34,840




	Amortization of intangibles		12,068			36,731			26,177




	Deferred tax provision		154			1,763			9,215




	Interest expenses on mandatorily redeemable convertible preferred securities		8,869			4,858			—




	Preferred stock dividends and distributions		(26,112	)		(33,943	)		(20,837	)

Diluted Funds From Operations before gain (loss) on disposition of properties			466,165			319,574			199,420




(Gain) loss on disposition of properties			(26,335	)		1,785			(4,674	)

Diluted Funds From Operations available to common shares, common share equivalents and common OP Units		$	439,830		$	321,359		$	194,746

Weighted average number of common shares, common share equivalents and common OP Units outstanding:




	Common share and common share equivalents		70,219			63,735			47,624




	Preferred stock, preferred OP Units, and other securities convertible into common stock		14,432			8,625			2,463




	Common OP Units		6,855			6,313			6,732

			91,506			78,673			56,819


Cash flow provided by operating activities		$	400,364		$	253,257		$	148,414




Cash flow used in investing activities			(546,981	)		(281,106	)		(328,321	)




Cash flow provided by financing activities			202,128			58,148			214,124

Contribution to Free Cash Flow

The Company seeks to improve funds from operations, less a reserve for capital replacements, on a per share basis. In this regard, in addition to the year-to-year comparative discussion, the Company has provided disclosure (see Footnote 22 in the accompanying Notes to Consolidated Financial Statements) on the contribution (separated between consolidated and unconsolidated activity) to the Company’s Free Cash Flow from several components of the Company’s business, and a reconciliation of Free Cash Flow to FFO, less a reserve for capital replacements, and to net income for the year ended December 31, 2000 and 1999. The Company defines Free Cash Flow as FFO, less a reserve for capital replacements, plus interest expense and preferred stock dividends.

The following table summarizes the contributors to the Company’s Free Cash Flow (in thousands)


	2000						1999

	Amount			Contr.%			Amount			Contr.%

Real estate	$	598,826			86	%	$	435,727			84	%




Service business		30,641			4	%		36,589			7	%




Interest income: recurring		42,274			6	%		24,428			5	%




Interest income: accretion of loan discount		26,409			4	%		32,460			6	%




Fee income		7,438			1	%		4,485			1	%




General and administrative expenses		(7,813	)		(1	)%		(13,112	)		(3	)%

Total Free Cash Flow	$	697,775			100	%	$	520,577			100	%

Total Free Cash Flow contributed was $697.8 million and $520.6 million in 2000 and 1999, respectively, an increase of $177.2 million or 34.0%.

The real estate Free Cash Flow contribution was $598.8 million and $435.7 million in 2000 and 1999, respectively, an increase of $163.1 million or 37.4%. Real estate contribution to total Free Cash Flow increased to 86% in 2000 from 84% in 1999. The increase was due to improvements in property operations, acquisitions and tenders.

The service business contributed $30.6 million (4%) and $36.6 million (7%) to Free Cash Flow in 2000 and 1999, respectively. The decreased contribution of $6.0 million, after consideration of the increase in the intercompany allocation of general administrative expenses of $8.2 million, was due to the establishment of the new Corporate Housing program and other product enhancements.

Consolidated recurring interest income increased $16.9 million as a result of the following: during 2000, (i) the Company increased notes receivable from general partner loans by approximately $81.7 million, (ii) as a result of improved property operations certain of the outstanding notes receivable in the form of general partner loans remitted cash payments on a recurring basis. The combination of these factors resulted in $10.7 million of the increase in recurring interest income. The remaining consolidated recurring interest income increase of $6.2 million resulted from higher average cash balances maintained in money market and interest bearing accounts during 2000. The decrease in accretion of $6.0 million is due to fewer loans and fewer events allowing the Company to recognize accretion on certain discounted notes.

Fees contributed $7.4 million (1%) and $4.5 million (1%) to Free Cash Flow in 2000 and 1999, respectively. Fees are earned on partnership sales, refinancings and other transactions. The increase in fee income is due to increased disposition fees received from the sale of 79 properties in 2000, compared to the fees received from the sale of 63 properties in 1999.

The income received from refinancing fees also increased to $4.0 million in 2000, compared to $0.6 million in 1999. The Company considers fees and interest income from notes purchased at a discount as transactional. Together, the transactional contribution was $33.8 million (5%) and $36.9 million (7%) of Free Cash Flow contribution in 2000 and 1999.

Contributions to conventional real estate Free Cash Flow for 2000 and 1999 before adjustment for minority interest were as follows (in thousands):


	2000					1999

	Amount		Contr.%			Amount		Contr.%

Average monthly rent greater than $900 per unit	$	83,651		14	%	$	42,205		10	%




Average monthly rent $800 to $900 per unit		62,613		10	%		39,267		10	%




Average monthly rent $700 to $800 per unit		72,533		12	%		59,587		15	%




Average monthly rent $600 to $700 per unit		165,512		27	%		89,293		22	%




Average monthly rent $500 to $600 per unit		163,196		27	%		114,719		28	%




Average monthly rent below $500 per unit		61,629		10	%		58,348		15	%

Total conventional real estate contribution to Free Cash Flow before adjustment for minority interest	$	609,134		100	%	$	403,419		100	%

The conventional real estate contribution to Free Cash Flow was $609.1 million and $403.4 million in 2000 and 1999, respectively, an increase of $205.7 million or 51.0%. The increase was due to improvements in property operations, acquisitions and tenders.

The changes in the composition of conventional and real estate contribution resulted in an increase in contribution from properties with an average monthly rent greater than $800 per unit to 24% from 20% in 1999, and a decrease in contribution from properties with an average monthly rent below $500 per unit to 10% from 15% in 1999. The changes were due to improvements in property operations, acquisitions, tenders and dispositions.

Footnote 22 in the accompanying Notes to Consolidated Financial Statements provides additional detail on each component of Free Cash Flow. The Company believes this disclosure is complementary to the results of operations discussed above.

Liquidity and Capital Resources


	2000			1999			1998

Cash flow provided by operating activities	$	400,364		$	253,257		$	148,414




Cash flow used in investing activities		(546,981	)		(281,106	)		(328,321	)




Cash flow provided by financing activities		202,128			58,148			214,124

At December 31, 2000, the Company had $157.1 million in cash and cash equivalents and $126.9 million of restricted cash, primarily consisting of reserves and impounds held by lenders for capital expenditures, property taxes and insurance. In addition, cash, cash equivalents and restricted cash are held by partnerships and subsidiaries that are not presented on a consolidated basis. The Company’s principal demands for liquidity include normal operating activities, payments of principal and interest on outstanding debt, capital improvements, acquisitions of and investments in properties, dividends paid to stockholders and distributions paid to limited partners. The Company considers its cash provided by operating activities to be adequate to meet short-term liquidity demands.

On September 20, 2000 AIMCO completed the purchase of all the stock and other interests (not already owned by AIMCO) held by the principals, officers and directors of ORFG in the Oxford entities, including ORFG, which own interests in and control the Oxford properties. The purchase price of $1,189 million was comprised of $266 million in cash, $861 million of assumed liabilities and incurred transaction costs and $62 million in common OP units valued at $45 per unit. The Oxford properties are 167 apartment communities with a total of 36,949 units located in 18 states. The Company borrowed $279 million to pay the cash portion of the purchase price and transactions costs for the Oxford acquisition from Bank of America, N.A., Lehman Commercial Paper Inc. and several other lenders, pursuant to a term loan with a total availability of $302 million. Transaction costs (including advisory fees) incurred on the term loan were $9.4 million. The borrowers under the term loan are the AIMCO Operating Partnership, NHP Management Company and AIMCO/Bethesda Holdings, Inc., and all obligations thereunder are guaranteed by AIMCO and certain of its subsidiaries. The obligations under the term loan are secured by a first priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., and AIMCO Holdings, L.P. in certain subsidiaries of AIMCO and certain options to purchase BACs in OTEF and a second priority pledge of certain non-real estate assets of the Company. The annual interest rate under the term loan is based either on LIBOR or a base rate which is the higher of Bank of America, N.A.’s reference rate or 0.5% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 4.0% and 5.0% in the case of LIBOR-based loans, and between 1.0% and 2.0% in the case of base rate loans, based upon the number of months the loan is outstanding.

The term loan expires in July 2002. The financial covenants contained in the term loan require the AIMCO Operating Partnership to maintain a ratio of debt to gross asset value of no more than 0.55 to 1.0, an interest coverage ratio of 2.25 to 1.0, and a fixed charge coverage ratio of at least 1.50 to 1.0. In addition, the term loan limits AIMCO from distributing more than 80% of its Funds From Operations (as defined) (or such amounts as may be necessary for AIMCO to maintain its status as a REIT). The term loan imposes minimum net worth requirements and provides other financial covenants related to certain of AIMCO’s assets and obligations. The total outstanding under the term loan at December 31, 2000 was $137 million of which $74 million is classified as secured short-term financing of the Company and the remainder is a liability at the unconsolidated subsidiaries and, therefore, is included in investments in unconsolidated subsidiaries. Effective January 1, 2001, in connection with the REIT Modernization Act, the remaining liability of $63 million will be consolidated.

As of December 31, 2000, substantially all of the Company’s owned or controlled properties and 78.6% of its total assets were encumbered by or served as collateral for debt. As of December 31, 2000, the Company had total secured outstanding indebtedness of $4,360.1 million, comprised of $3,258.3 million of secured long-term financing, $773.0 million of secured tax-exempt long-term bond financing and $328.7 million in secured short-term financing. As of December 31, 2000, approximately 8% of the Company’s indebtedness bears interest at variable rates. As of December 31, 2000, the Company had 31 loans, each of which is secured by the property owned by such partnership and also cross-collateralized with certain other loans. The aggregate principal balances outstanding on 31 loans that are cross-collateralized are $154.1 million as of December 31, 2000. Other than these loans, none of the Company’s debt is subject to cross-collateralization provisions. The weighted average interest rate on the Company’s secured, long-term notes payable was 7.89%, with a weighted average maturity of 11 years as of December 31, 2000. At December 31, 2000, the weighted average interest rate on the Company’s secured short-term financing was 9.16%.

During the year ended December 31, 2000, the Company issued $636.0 million of long-term, fixed rate, fully amortizing non-recourse mortgage notes payable with a weighted average interest rate of 7.5%. Each of the notes is individually secured by one of 107 properties with no cross-collateralization. The Company used the net proceeds after transaction costs of $625.5 million to repay existing debt. During the year ended December 31, 2000, the Company has also assumed $60.6 million of long-term, fixed-rate, fully amortizing notes payable with a weighted average interest rate of 7.5% in connection with the acquisition of properties. Each of the notes is individually secured by one of 12 properties with no cross-collateralization.

During the year ended December 31, 2000, the Company issued $230.0 million of preferred stock in three direct placements yielding $227 million of net proceeds. See Footnote 15 to the consolidated financial statements for further discussion on these preferred stocks.

The Company expects to meet its long-term liquidity requirements, such as refinancing debt and property acquisitions, through long-term borrowings, both secured and unsecured, the issuance of debt or equity securities (including OP Units) and cash generated from operations. In August 1998, AIMCO and the AIMCO Operating Partnership filed a shelf registration statement with the Securities and Exchange Commission (“SEC”) with respect to an aggregate of $1,268 million of debt and equity securities of AIMCO (of which $268 million was carried forward from AIMCO’s 1997 shelf registration statement) and $500 million of debt securities of the AIMCO Operating Partnership. The registration statement was declared effective by the SEC on December 10, 1998. As of March 29, 2001, the Company had approximately $925 million available and the AIMCO Operating Partnership had $500 million available from this registration statement. The Company expects to finance acquisitions of real estate interests with cash from operations or the issuance of equity securities and debt.

Capital Expenditures

For the year ended December 31, 2000, the Company spent a total of $261.9 million for capital expenditures on its portfolio of assets. Capital expenditures include capital replacements (expenditures for routine maintenance of a property), initial capital expenditures (“ICE”, expenditures at a property that have been identified, at the time the property is acquired, as expenditures to be incurred within one year of the acquisition) and redevelopment and enhancements (amenities that add a material new feature or revenue source at a property). The Company’s share of those expenditures are as follows (in millions):


	Conventional Assets		Affordable Assets		Total

Capital Replacements	$	36.7	$	3.7	$	40.4




ICE		55.4		1.3		56.7




Redevelopment and Enhancements		156.7		8.1		164.8

Total	$	248.8	$	13.1	$	261.9

These expenditures were funded by net cash provided by operating activities, working capital reserves, and borrowings under the Company’s credit facility. ICE and capital enhancements will primarily be funded by cash from operating activities and borrowings under the Company’s revolving credit facility.

The Company’s accounting treatment of various capital and maintenance costs is detailed in the following table:


		Depreciable life
Expenditure	Accounting treatment	in years

Initial capital expenditures	capitalize	5 to 15




Capital enhancements	capitalize	5 to 30




Capital replacements:




Carpet/vinyl replacement	capitalize	5




Carpet cleaning	expense	N/A




Major appliance replacement (refrigerators, stoves, dishwashers, washers/dryers)	capitalize	5




Cabinet replacement	capitalize	5




Major new landscaping	capitalize	5




Seasonal plantings and landscape replacements	expense	N/A




Roof replacements	capitalize	15




Roof repairs	expense	N/A




Model furniture	capitalize	5




Office equipment	capitalize	5




Exterior painting, significant	capitalize	5




Interior painting	expense	N/A




Parking lot repairs	expense	N/A




Parking lot repaving	capitalize	15




Equipment repairs	expense	N/A




General policy for capitalization	capitalize amounts in excess of $250	Various

Return on Assets and Return on Equity

The Company’s Return On Assets and Return On Equity for the years ended December 31, 2000 and 1999 are as follows:


		Based on AFFO						Based on FFO

		Year Ended						Year Ended
		December 31,						December 31,

		2000			1999			2000			1999

Return on Assets(a)			9.8	%		9.2	%		10.3	%		9.7	%




Return on Equity




	Basic(b)		14.7	%		14.5	%		15.8	%		15.6	%




	Diluted(c)		13.3	%		12.9	%		14.3	%		13.9	%

(a)		The Company defines Return on Assets (AFFO) as (i) annualized Free Cash Flow, divided by (ii) Average Assets. Average Assets are computed by averaging the sum of Assets, as defined below, at the beginning and the end of the period. Assets are total assets, plus accumulated depreciation, less accumulated capital replacements of $103.6 million and $63.3 million, for the years ended December 31, 2000 and 1999 respectively, and less all non-indebtedness liabilities. The Company defines Return on Assets (FFO) as (i) annualized Free Cash Flow plus capital replacements, divided by (ii) Average Assets plus accumulated capital replacements.




(b)		The Company defines Return on Equity-Basic (AFFO) as (i) annualized AFFO-Basic, divided by (ii) Average Equity. Average Equity is computed by averaging the sum of Equity, as defined below, at the beginning and the end of the period. Equity is total stockholders’ equity, plus accumulated depreciation, less accumulated capital replacements of $103.6 million and $63.3 million, for the years ended December 31, 2000 and 1999, respectively, less preferred stock, plus minority interest in the AIMCO Operating Partnership, net of preferred OP Unit interests ($116.6 million and $72.6 million, for the years ended December 31, 2000 and 1999 respectively). The Company defines Return on Equity-Basic (FFO) as (i) annualized AFFO-Basic plus capital replacements; divided by (ii) Average Equity plus accumulated capital replacements.




(c)		The Company defines Return on Equity-Diluted (AFFO) and Return on Equity-Diluted (FFO) assuming conversion of debt and preferred securities whose conversion is dilutive.

Contingencies

Environmental

Various Federal, state and local laws subject property owners or operators to liability for the costs of removal or remediation of certain hazardous substances present on a property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of the hazardous substances. The presence of, or the failure to properly remediate hazardous substances may adversely affect occupancy at contaminated apartment communities and the ability to sell or borrow against contaminated properties. In addition to the costs associated with investigation and remediation actions brought by governmental agencies, the presence of hazardous wastes on a property could result in personal injury or similar claims by private plaintiffs. Various laws also impose liability for the cost of removal or remediation of hazardous substances at the disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous or toxic substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of our properties, the Company could potentially be liable for environmental liabilities or costs associated with properties or properties it acquires or manages in the future.

Inflation

Substantially all of the leases at the Company’s apartment properties are for a period of twelve months or less, allowing, at the time of renewal, for adjustments in the rental rate and the opportunity to re-lease the apartment unit at the prevailing market rate. The short-term nature of these leases generally serves to minimize the risk to the Company of the adverse effect of inflation and the Company does not believe that inflation has had a material adverse impact on its operations.

ITEM 7a. Quantitative and Qualitative Disclosures About Market Risk

The Company’s primary market risk exposure relates to changes in interest rates. The Company is not subject to any foreign currency exchange rate risk or commodity price risk, or any other material market rate or price risks. The Company uses predominantly long-term, fixed-rate and self-amortizing non-recourse mortgage debt in order to avoid the refunding or repricing risks of short-term borrowings. The Company uses short-term debt financing and working capital primarily to fund acquisitions and generally expects to refinance such borrowings with proceeds from operating activities, equity offerings or long-term debt financings.

The Company had $359.5 million of variable rate debt outstanding at December 31, 2000, which represents 8% of the Company’s total outstanding debt. Based on this level of debt, an increase in interest rates of 1% would result in the Company’s income and cash flows being reduced by $3.6 million on an annual basis. At December 31, 2000, the Company had $4,000.6 million of fixed-rate debt outstanding.

As of December 31, 2000, the scheduled principal amortization and maturity payments for the Company’s consolidated secured notes payable and consolidated secured tax-exempt bonds are as follows (in thousands):


	Amortization		Maturities		Total

2001	$	79,491	$	96,343	$	175,834




2002		83,260		102,484		185,744




2003		92,744		150,237		242,981




2004		96,970		262,968		359,938




2005		104,445		142,302		246,747




Thereafter						2,820,131

					$	4,031,375

The estimated aggregate fair value of the Company’s cash and cash equivalents, receivables, payables and short-term secured debt as of December 31, 2000 is assumed to approximate their carrying value due to their relatively short terms. Management further believes that the fair market value of the Company’s secured tax-exempt bond debt and secured long-term debt approximates their carrying value, based on market comparisons to similar types of debt instruments having similar maturities.

ITEM 8. Financial Statements and Supplementary Data

The independent auditor’s report, consolidated financial statements and schedule listed in the accompanying index are filed as part of this report and incorporated herein by this reference. See “Index to Financial Statements” on page F-1.

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

PART III

ITEM 10. Directors and Executive Officers of the Registrant

The information required by this Item is presented under the caption “Board of Directors and Officers” in AIMCO’s proxy statement for its 2001 annual meeting of stockholders, and such information is incorporated herein by reference.

ITEM 11. Executive Compensation

The information required by this item is presented under the captions “Summary Compensation Table,” “Option/SAR Grants in Last Fiscal Year” and “Aggregated Option/SAR Exercises in Last Fiscal Year and Fiscal Year-end Options/SAR Values,” “Compensation Committee Interlocks and Insider Participation,” “Compensation of Directors,” “Compensation Committee Report to Stockholders,” “Employment Arrangements,” and “Stock Performance Graph” in AIMCO’s proxy statement for its 2001 annual meeting of stockholders and is incorporated herein by reference.

ITEM 12. Security Ownership of Certain Beneficial Owners and Management

The information required by this item is presented under the caption “Security Ownership of Certain Beneficial Owners and Management” in AIMCO’s proxy statement for its 2001 annual meeting of stockholders and is incorporated herein by reference.

ITEM 13. Certain Relationships and Related Transactions

The information required by this item is presented under the caption “Certain Relationships and Transactions” in AIMCO’s proxy statement for its 2001 annual meeting of stockholders and is incorporated herein by reference.

PART IV

ITEM 14. Exhibits, Financial Statement Schedule and Reports on Form 8-K

(a) (1) The financial statements listed in the Index to Financial Statements on Page F-1 of this report are filed as part of this report and incorporated herein by reference.

(a) (2) The financial statement schedule listed in the Index to Financial Statements on Page F-1 of this report is filed as part of this report and incorporated herein by reference.

(a) (3) The Exhibit Index is included on page 26 of this report and incorporated herein by reference.

(b) Reports on Form 8-K for the quarter ended December 31, 2000:

Current Report on Form 8-K, dated September 20, 2000 (and Amendment No. 1 thereto, filed on December 4, 2000), relating to the acquisition of all of the stock and other interests held by officers and directors in the entities that control properties owned by affiliates of Oxford Realty Financial Group, Inc., and the acquisition of the entity which owns the managing general partner of Oxford Tax Exempt Fund II Limited Partnership, including Combined Financial Statements of Oxford Holding Corporation and Subsidiaries, Oxford Realty Financial Group, Inc. and Subsidiaries, ZIMCO Entities and Oxford Equities Corporation III for the year ended December 31, 1999 and the eight months ended August 31, 2000 and 1999 (unaudited), together with the Independent Auditors’ Report; Combined Financial Statements of ORFG Operations, L.L.C. and Subsidiary for the year ended December 31, 1999 and the eight months ended August 31, 2000 and 1999 (unaudited), together with the Independent Auditors’ Report; Combined Financial Statements of OXPARC L.L.C.s for the year ended December 31, 1999 and the eight months ended August 31, 2000 and 1999 (unaudited), together with the Independent Auditors’ Report; Combined Financial Statements of Oxford Realty Financial Group Properties for the year ended December 31, 1999 and the eight months ended August 31, 2000 and 1999 (unaudited), together with the Independent Auditors’ Report; Financial Statements of Oxford Tax Exempt Fund II Limited Partnership for the year ended December 31, 1999, together with the Independent Auditors’ Report; Financial Statements of Oxford Tax Exempt Fund II Limited Partnership for the nine months ended September 30, 2000 (unaudited); and certain pro forma financial information.

INDEX TO EXHIBITS


Exhibit
Number		Description

2.1	—	Second Amended and Restated Agreement and Plan of Merger, dated as of January 22, 1999, by and between Apartment Investment and Management Company and Insignia Properties Trust (Exhibit 2.2 to the Current Report on Form 8-K of Insignia Properties Trust, dated February 11, 1999,is incorporated herein by this reference)




2.2	—	Amended and Restated Agreement and Plan of Merger, dated as of May 26, 1998 by and among Apartment Investment Management Company, AIMCO Properties, L.P., Insignia Financial Group, Inc., and Insignia/ESG Holdings, Inc. (Appendix I to the Prospectus included in AIMCO’s Registration Statement on Form S-4 filed August 5, 1998, is incorporated herein by this reference)




2.3	—	Acquisition Agreement, dated as of June 28, 2000, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., NHP Management Company and AIMCO/NHP Properties, Inc., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit 2.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2000, is incorporated herein by this reference)




2.4	—	Agreement and Plan of Merger, dated as of November 29, 2000, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., AIMCO Properties, L.P., AIMCO/OTEF, LLC and Oxford Tax Exempt Fund II Limited Partnership (Annex A to AIMCO’s Registration Statement on Form S-4 filed on December 1, 2000, is incorporated herein by this reference)




3.1	—	Charter




3.2	—	Bylaws ( Exhibit 3.2 to AIMCO’s Annual Report on Form 10-K for the fiscal year 1999, is incorporated herein by this reference)


4.1	—	Amended and Restated Declaration of Trust of IFT Financing I (formerly Insignia Financing I), dated as of November 1, 1996, among Insignia Financial Group, Inc as Sponsor, First Union National Bank of South Carolina as Property Trustee, First Union Bank of Delaware, as Delaware Trustee and Andrew I. Farkas, John K. Lines and Ronald Uretta as Regular Trustees (Exhibit 4.2 to Form S-3 of Insignia Financial Group, Inc. dated December 10, 1996, is incorporated herein by this reference)




4.2	—	Indenture for the 6.5% Convertible Subordinated Debentures, dated as of November 1, 1996, between Insignia Financial Group, Inc., as Issuer and First Union National Bank of South Carolina, as Trustee (Exhibit 4.3 to Form S-3 of Insignia Financial Group, Inc., dated December 10, 1996, is incorporated herein by this reference)




4.3	—	First Supplemental Indenture, dated as of October 1,1998, by and among Apartment Investment and Management Company, Insignia Financial Group, Inc, and First Union National Bank (formerly First Union National Bank of South Carolina, as Trustee) (Exhibit 4.3 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)




10.1	—	Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of July 29, 1994 as amended and restated as of October 1, 1998 (Exhibit 10.8 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, is incorporated herein by this reference)




10.2	—	First Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 6, 1998 (Exhibit 10.9 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, is incorporated herein by this reference)




10.3	—	Second Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 30, 1998 (Exhibit 10.1 to Amendment No. 1 to AIMCO’s Current Report on Form 8-K/A, filed February 11, 1999, No. 1 to AIMCO’s Current Report on Form 8-K/A, filed is incorporated herein by this reference)




10.4	—	Third Amendment to Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of February 18, 1999 (Exhibit 10.12 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)




10.5	—	Fourth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 25, 1999 (Exhibit 10.2 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1999, is incorporated herein by this reference)




10.6	—	Fifth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 26, 1999 (Exhibit 10.3 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1999, is incorporated herein by this reference)




10.7	—	Sixth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 26, 1999 (Exhibit 10.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1999, is incorporated herein by this reference)




10.8	—	Seventh Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 27, 1999 (Exhibit 10.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1999, is incorporated herein by this reference)




10.9	—	Eighth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 14, 1999 (Exhibit 10.9 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)




10.10	—	Ninth Amendment to the Third Amended and Restated Agreement of Limited Partnership


		of AIMCO Properties, L.P., dated as of December 21, 1999 (Exhibit 10.10 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)




10.11	—	Tenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 21, 1999 (Exhibit 10.11 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)




10.12	—	Eleventh Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of January 13, 2000 (Exhibit 10.12 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)




10.13	—	Twelfth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of April 19, 2000 (Exhibit 10.2 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2000 is incorporated herein by this reference)




10.14	—	Thirteenth Amendment to the Third and Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of August 7, 2000 (Exhibit 10.1 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended June 30, 2000, is incorporated herein by this reference)




10.15	—	Fourteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 12, 2000 (Exhibit 10.1 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000, is incorporated herein by this reference)




10.16	—	Fifteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 15, 2000 (Exhibit 10.2 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000, is incorporated herein by this reference)




10.17	—	Sixteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 15, 2000 (Exhibit 10.3 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000 is incorporated herein by this reference)




10.18	—	Seventeenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 10, 2000 (Exhibit 10-4 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000 is incorporated herein by this reference)




10.19	—	Eighteenth Amendment to the Third and Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 16, 2000




10.20	—	Nineteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of February 28, 2001




10.21	—	Twentieth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 19, 2001




10.22	—	Shareholders Agreement, dated October 1, 1998, by and among Apartment Investment and Management Company, Andrew L. Farkas, James A. Aston and Frank M. Garrison (Exhibit 10.4 to AIMCO’s Statement of Beneficial Ownership on Schedule 13D with respect to Insignia Properties Trust filed on October 15, 1998, is incorporated herein by this reference)




10.23	—	Amended and Restated Indemnification Agreement, dated as of May 26, 1998, by and between Apartment Investment and Management Company and Insignia/ESG Holdings, Inc. (Appendix II to the Prospectus included in AIMCO’s Registration Statement on Form S-4, filed August 5, 1998, is incorporated herein by this reference)




10.24	—	ILPI and BAC Agreement, dated as of September 20, 2000 by and among Apartment Investment and Management Company, AIMCO Properties, L.P. and AIMCO/ NHP Properties, Inc ., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit (B) of the Statement of Beneficial Ownership on Schedule 13D of Oxford Tax Exempt Fund II Limited Partnership with respect to AIMCO dated September 20, 2000, is incorporated herein by this reference)


10.25	—	Option Sale Agreement , dated as of September 20, 2000 by and among Apartment Investment and Management Company, AIMCO Properties, L.P., NHP Management Company and AIMCO/NHP Properties, Inc., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit ( C ) of the Statement of Beneficial Ownership on Schedule 13D of Oxford Tax Exempt Fund II Limited Partnership with respect to AIMCO dated September 20,2000 is incorporated herein by this reference)




10.26	—	Employment Contract, executed on July 29, 1994, by and between AIMCO Properties, L.P., and Peter Kompaniez (Exhibit 10.44A to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by this reference)*




10.27	—	Employment Contract executed on July 29, 1994 by and between AIMCO Properties, L.P. and Terry Considine (Exhibit 10.44C to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by this reference)*




10.28	—	Employment Contract executed on July 29, 1994 by and between AIMCO Properties, L.P. and Steven D. Ira (Exhibit 10.44D to AIMCO’s Annual Report on Form 10-K for year ended December 31, 1994, is incorporated herein by this reference)*




10.29	—	Apartment Investment and Management Company 1998 Incentive Compensation Plan (Annex B to AIMCO’s Proxy Statement for Annual Meeting of Stockholders to be held on May 8, 1998, is incorporated herein by this reference)*




10.30	—	Apartment Investment and Management Company 1997 Stock Award and Incentive Plan (October 1999) (Exhibit 10.26 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by this reference)*




10.31	—	Form of Restricted Stock Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.11 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1997, is incorporated herein by this reference)*




10.32	—	Form of Incentive Stock Option Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.42to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)*




10.33	—	Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan, adopted August 29, 1996 (Exhibit 10.8 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1996, is incorporated herein by this reference)*




10.34	—	Amended and Restated Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan (Annex B to AIMCO’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 24, 1997, is incorporated herein by this reference)*




10.35	—	The 1994 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P., and Subsidiaries (Exhibit 10.40 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*




10.36	—	Amendment to the 1994 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P. and Subsidiaries (Exhibit 10.41 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*




10.37	—	The 1996 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P., and Subsidiaries, as amended March 20, 1997 (Exhibit 10.42 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*




10.38	—	Insignia 1992 Stock Incentive Plan, as amended through March 28, 1994 and November 13, 1995 (Exhibit 10.1 to Insignia Financial Group, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*


10.39	—	NHP Incorporated 1990 Stock Option Plan (Exhibit 10.9 to NHP Incorporated Annual Report on Form 10-K for the year ended December 31, 1995, is incorporated herein by this reference)*




10.40	—	NHP Incorporated 1995 Incentive Stock Option Plan (Exhibit 10.10 to NHP Incorporated Annual Report on Form 10-K for the year ended December 31, 1995, is incorporated herein by this reference)*




10.41	—	Summary of Agreement for Sale of Stock to Executive Officers (Exhibit 10.104 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1996, is incorporated herein by this reference)*




21.1	—	List of Subsidiaries




23.1	—	Consent of Ernst & Young LLP




99.1	—	Agreement re: disclosure of long-term debt instruments

(1)		Schedule and supplemental materials to the exhibits have been omitted but will be provided to the Securities and Exchange Commission upon request.




*		Management contract

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 30th day of March, 2001.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

/s/ TERRY CONSIDINE

Terry Considine
Chairman of the Board
And Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.


Signature	Title	Date

/s/ TERRY CONSIDINE Terry Considine	Chairman of the Board and Chief Executive Officer	March 30, 2001




/s/ PETER K. KOMPANIEZ Peter K. Kompaniez	Vice Chairman, President and Director	March 30, 2001




/s/ PAUL MCAULIFFE Paul McAuliffe	Executive Vice President and Chief Financial Officer	March 30, 2001




/s/ THOMAS C. NOVOSEL Thomas C. Novosel	Senior Vice President, Chief Accounting Officer	March 30, 2001




/s/ JAMES N. BAILEY James N. Bailey	Director	March 30, 2001




/s/ RICHARD S. ELLWOOD Richard S. Ellwood	Director	March 30, 2001




/s/ J. LANDIS MARTIN J. Landis Martin	Director	March 30, 2001




/s/ THOMAS L. RHODES Thomas L. Rhodes	Director	March 30, 2001

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

INDEX TO FINANCIAL STATEMENTS


		Page

Financial Statements:




	Report of Independent Auditors		F-2




	Consolidated Balance Sheets as of December 31, 2000 and 1999		F-3




	Consolidated Statements of Income for the Years Ended December 31, 2000, 1999 and 1998		F-4




	Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2000, 1999 and 1998		F-5




	Consolidated Statements of Cash Flows for the Years Ended December 31, 2000, 1999 and 1998		F-6




	Notes to Consolidated Financial Statements		F-8




Financial Statement Schedule:




	Schedule III — Real Estate and Accumulated Depreciation		F-33




	All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto

F-1

REPORT OF INDEPENDENT AUDITORS

Stockholders and Board of Directors
Apartment Investment and Management Company

We have audited the accompanying consolidated balance sheets of Apartment Investment and Management Company as of December 31, 2000 and 1999, and the related consolidated statements of income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2000. Our audits also included the financial statement schedule listed in the Index at Item 14(a)(2). These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Apartment Investment and Management Company at December 31, 2000 and 1999, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects the information set forth therein.

/s/ ERNST & YOUNG LLP

Denver, Colorado
January 24, 2001,
except for Note 24, as to which the date is March 29, 2001

F-2

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED BALANCE SHEETS
As of December 31, 2000 and 1999
(In Thousands, Except Per Share Data)

ASSETS


			2000			1999

Real estate, net of accumulated depreciation of $913,263 and $416,497			$	6,099,189		$	4,096,200




Investments in unconsolidated real estate partnerships				676,188			891,449




Investments in unconsolidated subsidiaries				107,781			44,921




Notes receivable from and advances to unconsolidated real estate partnerships				140,860			159,935




Notes receivable from and advances to unconsolidated subsidiaries, net				190,453			88,754




Cash and cash equivalents				157,115			101,604




Restricted cash				126,914			84,595




Other assets				201,374			217,493

		Total assets	$	7,699,874		$	5,684,951

LIABILITIES AND STOCKHOLDERS’ EQUITY




Secured notes payable			$	3,258,342		$	1,954,259




Secured tax-exempt bond financing				773,033			420,830




Secured short-term financing				328,740			209,200

		Total indebtedness		4,360,115			2,584,289




Accounts payable, accrued and other liabilities				300,142			271,627




Resident security deposits and deferred rental income				33,943			22,793

		Total liabilities		4,694,200			2,878,709





Mandatorily redeemable convertible preferred securities				32,330			149,500




Minority interest in other entities				139,731			168,533




Minority interest in Operating Partnership				331,956			228,813




Stockholders’ equity:




	Preferred Stock, perpetual			315,770			316,250




	Preferred Stock, convertible			521,947			325,000




	Class A Common Stock, $.01 par value, 468,432,738 shares and 474,121,284 shares authorized, 71,337,217 and 66,802,886 shares issued and outstanding, respectively			713			668




	Additional paid-in capital			2,072,208			1,885,424




	Notes receivable on common stock purchases			(44,302	)		(51,619	)




	Distributions in excess of earnings			(364,679	)		(216,327	)

		Total stockholders’ equity		2,501,657			2,259,396

		Total liabilities and stockholders’ equity	$	7,699,874		$	5,684,951

See notes to consolidated financial statements.

F-3

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands, Except Per Share Data)


		2000			1999			1998

RENTAL PROPERTY OPERATIONS:




Rental and other property revenues		$	1,051,000		$	533,917		$	377,139




Property operating expenses			(426,177	)		(213,798	)		(147,541	)




Owned property management expense			(13,663	)		(1,650	)		(2,009	)




Depreciation			(323,321	)		(131,753	)		(84,635	)

Income from rental property operations			287,839			186,716			142,954

SERVICE COMPANY BUSINESS:




Management fees and other income from affiliates			49,692			38,377			20,824




Management and other expenses			(27,199	)		(14,897	)		(16,764	)




General and administrative expenses allocation			(10,310	)		(2,136	)		(196	)




Amortization of intangibles			(6,698	)		(14,297	)		(8,735	)

Income (loss) from service company business			5,485			7,047			(4,871	)

General and administrative expenses:




	Before allocation		(18,123	)		(15,248	)		(13,764	)




	Allocation to consolidated service company business		10,310			2,136			196

General and administrative expenses, net			(7,813	)		(13,112	)		(13,568	)

Interest expense			(269,826	)		(140,094	)		(89,424	)




Interest income			66,241			55,320			29,368




Equity in earnings (losses) of unconsolidated real estate partnerships			7,618			(4,467	)		(4,854	)




Equity in earnings (losses) of unconsolidated subsidiaries			(2,290	)		(5,013	)		5,845




Minority interest in other entities			(3,872	)		(900	)		(468	)

Income from operations			83,382			85,497			64,982




Gain (loss) on disposition of properties			26,335			(1,785	)		4,674

Income before minority interest in Operating Partnership			109,717			83,712			69,656




Minority interest in Operating Partnership, common			(3,519	)		(5,458	)		(5,182	)




Minority interest in Operating Partnership, preferred			(7,020	)		(727	)		—

Net income			99,178			77,527			64,474




Net income attributable to preferred stockholders			63,183			53,453			26,533

Net income attributable to common stockholders		$	35,995		$	24,074		$	37,941

Basic earnings per common share		$	0.53		$	0.39		$	0.84

Diluted earnings per common share		$	0.52		$	0.38		$	0.80

Weighted average common shares outstanding			67,572			62,242			45,187

Weighted average common shares and common share equivalents outstanding			69,063			63,446			47,624

Dividends paid per common share		$	2.80		$	2.50		$	2.25

See notes to consolidated financial statements.

F-4

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands)


								Class A						Class B
		Preferred Stock						Common Stock						Common Stock
																					Additional

		Shares						Shares						Shares						Paid-in
		Issued			Amount			Issued			Amount			Issued			Amount			Capital

BALANCE DECEMBER 31, 1997			3,150		$	135,000			40,439		$	403			162		$	2		$	977,601




Net proceeds from issuances of Preferred Stock			11,250			356,250			—			—			—			—			(15,353	)




Repurchase of Class A Common Stock			—			—			(303	)		(3	)		—			—			(11,064	)




Conversion of Class B Common Stock to Class A Common Stock			—			—			162			2			(162	)		(2	)		—




Conversion of Operating Partnership units to Class A Common Stock			—			—			275			3			—			—			5,792




Purchase of stock by officers and awards of restricted stock			—			—			640			7			—			—			23,619




Repayment of notes receivable from officers			—			—			—			—			—			—			—




Stock options and warrants exercised			—			—			658			7			—			—			11,008




Class A Common Stock issued as consideration for Ambassador Common Stock			—			—			6,580			66			—			—			251,209




Class E Preferred Stock issued as consideration for Insignia Common Stock			8,424			301,218			—			—			—			—			—




Issuance of warrants to purchase Class A Common Stock			—			—			—			—			—			—			4,150




Net income			—			—			—			—			—			—			—




Dividends paid — Class A Common Stock			—			—			—			—			—			—			—




Dividends paid — Preferred Stock			—			—			—			—			—			—			—




Unrealized gain (loss) on investments			—			—			—			—			—			—			—





BALANCE DECEMBER 31, 1998			22,824			792,468			48,451			485			—			—			1,246,962




Net proceeds from issuances of Preferred Stock			10,000			250,000			—			—			—			—			(16,899	)




Repurchase of Class A Common Stock			—			—			(205	)		(2	)		—			—			(8,036	)




Conversion of Operating Partnership units to Class A Common Stock			—			—			964			10			—			—			13,756




Conversion of Preferred Stock to




	Class A Common Stock		(9,424	)		(401,218	)		10,924			109			—			—			401,109




Purchase of stock by officers and awards of restricted stock			—			—			240			2			—			—			8,824




Repayment of notes receivable from officers			—			—			—			—			—			—			—




Stock options and warrants exercised			—			—			129			1			—			—			3,201




Class A Common Stock issued as consideration for Insignia Property Trust Merger			—			—			4,044			40			—			—			158,753




Class A Common Stock issued as consideration for First Union acquisition			—			—			530			5			—			—			21,135




Class A Common Stock Offering			—			—			1,383			14			—			—			54,598




Warrants exercised			—			—			343			4			—			—			2,021




Net income			—			—			—			—			—			—			—




Dividends paid — Class A Common Stock			—			—			—			—			—			—			—




Dividends paid — Preferred Stock			—			—			—			—			—			—			—





BALANCE DECEMBER 31, 1999			23,400			641,250			66,803			668			—						1,885,424




Net proceeds from issuances of Preferred Stock			7,105			230,000			—			—			—			—			(3,106	)




Repurchase of Class A Common Stock			—			—			(69	)		(1	)		—			—			(2,579	)




Conversion of Operating Partnership units to Class A Common Stock			—			(480	)		258			2			—			—			10,103




Conversion of Class B Preferred Stock to Class A Common Stock			(331	)		(33,053	)		1,085			11			—			—			33,042




Conversion of mandatorily redeemable convertible preferred securities to Class A Common Stock			—			—			2,363			24			—			—			117,146




Repayment of notes receivable from officers			—			—			—			—			—			—			—




Purchase of stock by officers and awards of restricted stock			—			—			300			3			—			—			11,984




Stock options and warrants exercised			—			—			597			6			—			—			20,194




Net income			—			—			—			—			—			—			—




Dividends paid — Class A Common Stock			—			—			—			—			—			—			—




Dividends paid — Preferred Stock			—			—			—			—			—			—			—





BALANCE DECEMBER 31, 2000			30,174		$	837,717			71,337		$	713			—		$	—		$	2,072,208

[Additional columns below]

[Continued from above table, first column(s) repeated]


		Notes						Unrealized
		Receivable			Distributions			Gain
		from			in Excess			(Loss) On
		Officers			of Earnings			Investments			Total

BALANCE DECEMBER 31, 1997		$	(35,095	)	$	(30,928	)	$	(1,683	)	$	1,045,300




Net proceeds from issuances of Preferred Stock			—			—			—			340,897




Repurchase of Class A Common Stock			—			—			—			(11,067	)




Conversion of Class B Common Stock to Class A Common Stock			—			—			—			—




Conversion of Operating Partnership units to Class A Common Stock			—			—			—			5,795




Purchase of stock by officers and awards of restricted stock			(23,471	)		—			—			155




Repayment of notes receivable from officers			8,908			—			—			8,908




stock options and warrants exercised			—			—			—			11,015




Class A Common Stock issued as consideration for Ambassador Common Stock			—			—			—			251,275




Class E Preferred Stock issued as consideration for Insignia Common Stock			—			—			—			301,218




Issuance of warrants to purchase Class A




	Common Stock		—			—			—			4,150




Net income			—			64,474			—			64,474




Dividends paid — Class A Common Stock			—			(100,045	)		—			(100,045	)




Dividends paid — Preferred Stock			—			(21,194	)		—			(21,194	)




Unrealized gain (loss) on investments			—			—			1,683			1,683





BALANCE DECEMBER 31, 1998			(49,658	)		(87,693	)		—			1,902,564




Net proceeds from issuances of Preferred Stock			—			—			—			233,101




Repurchase of Class A Common Stock			—			—			—			(8,038	)




Conversion of Operating Partnership units to Class A Common Stock			—			—			—			13,766




Conversion of Preferred Stock to Class A




	Common Stock		—			—			—			—




Purchase of stock by officers and awards of restricted stock			(8,202	)		—			—			624




Repayment of notes receivable from officers			6,241			—			—			6,241




Stock options and warrants exercised			—			—			—			3,202




Class A Common Stock issued as consideration for Insignia Property Trust Merger			—			—			—			158,793




Class A Common Stock issued as consideration for First Union acquisition			—			—			—			21,140




Class A Common Stock Offering			—			—			—			54,612




Warrants exercised			—			—			—			2,025




Net income			—			77,527			—			77,527




Dividends paid — Class A Common Stock			—			(154,654	)		—			(154,654	)




Dividends paid — Preferred Stock			—			(51,507	)		—			(51,507	)





BALANCE DECEMBER 31, 1999			(51,619	)		(216,327	)		—		$	2,259,396




Net proceeds from issuances of Preferred Stock			—			—			—			226,894




Repurchase of Class A Common Stock			—			—			—			(2,580	)




Conversion of Operating Partnership units to Class A Common Stock			—			—			—			9,625




Conversion of Class B Preferred Stock to Class A Common Stock			—			—			—			—




Conversion of mandatorily redeemable convertible preferred securities to Class A Common Stock			—			—			—			117,170




Repayment of notes receivable from officers			15,050			—			—			15,050




Purchase of stock by officers and awards of restricted stock			(7,733	)		—			—			4,254




Stock options and warrants exercised			—			—			—			20,200




Net income			—			99,178			—			99,178




Dividends paid — Class A Common Stock			—			(188,600	)		—			(188,600	)




Dividends paid — Preferred Stock			—			(58,930	)		—			(58,930	)





BALANCE DECEMBER 31, 2000		$	(44,302	)	$	(364,679	)	$	—		$	2,501,657

See notes to consolidated financial statements.

F-5

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands)


				2000			1999			1998

CASH FLOWS FROM OPERATING ACTIVITIES:




	Net income			$	99,178		$	77,527		$	64,474

	Adjustments to reconcile net income to net cash provided by operating activities:




		Depreciation and amortization			330,019			151,166			101,610




		Loss (gain) on disposition of properties			(26,335	)		1,785			(4,674	)




		Minority interest in Operating Partnership			10,539			6,185			5,182




		Minority interests in other entities			3,872			900			468




		Equity in (earnings) losses of unconsolidated real estate partnerships			(7,618	)		4,467			4,854




		Equity in (earnings) losses of unconsolidated subsidiaries			2,290			5,013			(5,845	)




		Changes in operating assets and operating liabilities			(11,581	)		6,214			(17,655	)

			Total adjustments		301,186			175,730			83,940

			Net cash provided by operating activities		400,364			253,257			148,414

CASH FLOWS FROM INVESTING ACTIVITIES:




	Purchase of and additions to real estate				(334,264	)		(217,380	)		(235,131	)




	Proceeds from sales of property				159,340			49,023			36,468




	Purchase of notes receivable, general and limited partnership interests and other assets				(453,263	)		(233,640	)		(56,760	)




	Purchase of/additions to notes receivable				(81,657	)		(103,943	)		(81,587	)




	Proceeds from sale of notes receivable				—			17,788			—




	Proceeds from repayment of notes receivable				64,559			61,407			29,290




	Cash from newly consolidated properties				54,875			68,127			—




	Cash received in connection with acquisitions				—			—			60,777




	Cash paid for merger / acquisition related costs				(31,889	)		(19,347	)		(78,568	)




	Distributions received from investments in unconsolidated real estate partnerships				75,318			87,284			15,673




	Distributions received from (contributions to) unconsolidated subsidiaries				—			9,575			(13,032	)




	Purchase of investments held for sale				—			—			(4,935	)




	Redemption of OP Units				—			—			(516	)

			Net cash used in investing activities		(546,981	)		(281,106	)		(328,321	)

CASH FLOWS FROM FINANCING ACTIVITIES:




	Proceeds from secured notes payable borrowings				502,085			297,536			102,115




	Principal repayments on secured notes payable				(265,269	)		(53,572	)		(93,469	)




	Proceeds from secured tax-exempt bond financing				—			20,731			210,720




	Principal repayments on secured tax-exempt bond financing				(26,677	)		(41,894	)		(224,395	)




	Net borrowings (pay downs) on the secured short-term financing				119,540			(155,622	)		(23,455	)




	Payment of loan costs				(21,920	)		(16,070	)		(7,407	)




	Proceeds from issuance of common and preferred stock, exercise of options/warrants				251,348			293,225			386,770




	Principal repayments received on notes due from officers on Class A Common Stock purchases				15,050			6,241			8,951




	Repurchase of Class A Common Stock				(2,580	)		(8,038	)		(11,066	)




	Payment of common stock dividends				(188,600	)		(154,654	)		(100,045	)




	Payment of distributions to minority interest				(121,919	)		(32,898	)		(15,531	)




	Payment of preferred stock dividends				(58,930	)		(51,507	)		(21,194	)




	Payment of special dividend on Class E Preferred Stock				—			(45,330	)		—




	Proceeds from issuance of High Performance Units				—			—			2,130

			Net cash provided by financing activities		202,128			58,148			214,124

NET INCREASE IN CASH AND CASH EQUIVALENTS					55,511			30,299			34,217




CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR					101,604			71,305			37,088

CASH AND CASH EQUIVALENTS AT END OF YEAR				$	157,115		$	101,604		$	71,305

See notes to consolidated financial statements.

F-6

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands)


			2000			1999			1998

SUPPLEMENTAL CASH INFORMATION:




	Interest paid		$	254,802		$	140,410		$	91,795




	Non Cash Transactions Associated with the Acquisition of Properties:




		Secured debt assumed in connection with purchase of real estate		60,605			110,101			115,151




		Real estate, assets acquired		93,975			230,194			43,756




		Assumption of operating liabilities		148			15,233			857




		Accrual of contingent consideration		—			(4,500	)		4,500




		OP Units issued		33,222			83,810			—




		Class A Common Stock issued		—			21,140			—




	Non Cash Transactions Associated with Acquisition of Limited Partnership




		Interests and Interests in the Unconsolidated Subsidiaries:




		Issuance of OP Units for interests in unconsolidated real estate partnerships		29,885			15,085			4,045




		Issuance of OP Units and assumption of liabilities for interests in unconsolidated subsidiaries		—			4,762			—




	Non Cash Transactions Associated with Mergers:




		Real estate		324,602			6,012			773,189




		Investments in and notes receivable from unconsolidated real estate partnerships		121,671			97,708			801,467




		Investments in and notes receivable from unconsolidated subsidiaries		157,785			(13,137	)		68,168




		Restricted cash		7,212			—			38,210




		Other assets		6,163			—			110,969




		Secured debt		248,524			—			764,543




		Unsecured debt		—			—			2,513




		Accounts payable, accrued and other liabilities		74,310			30,183			181,158




		Mandatorily redeemable convertible preferred securities of a subsidiary trust		—			—			149,500




		Minority interest in other entities		23,816			(98,353	)		117,922




		OP Units issued		62,177			—




		Class A Common Stock issued		—			158,753			552,492




	Non Cash Transactions Associated with Consolidation of Assets:




		Real estate		1,754,492			1,016,343			22,089




		Investments in and notes receivable from unconsolidated real estate partnerships		(685,173	)		(380,359	)		(16,683	)




		Investments in and notes receivable from unconsolidated subsidiaries		(3,271	)		—			—




		Restricted cash		46,284			43,605			—




		Other assets		55,128			—			—




		Secured debt		1,133,197			561,129			4,679




		Accounts payable, accrued and other liabilities		63,011			44,361			727




		Minority interest in other entities		1,573			77,774			—




	Non Cash Transfer of Assets to an Unconsolidated Subsidiary:




		Real estate		(9,429	)		(32,091	)		—




		Notes receivable		—			6,245			—




		Secured debt		—			(25,620	)		—




	Other:




		Redemption of OP Units		8,151			13,766			5,650




		Receipt of notes payable from officers		7,733			8,202			23,471




		Conversion of Preferred Stock into Class A Common Stock		150,199			401,218			—




		Tenders payable for purchase of limited partner interest		—			77,380			—

See notes to consolidated financial statements.

F-7

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2000

NOTE 1 — Organization

Apartment Investment and Management Company, a Maryland corporation incorporated on January 10, 1994 (“AIMCO” and, together with its consolidated subsidiaries and other controlled entities, the “Company”), owns a majority of the ownership interests in AIMCO Properties, L.P., (the “AIMCO Operating Partnership”) through its wholly owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP, Inc. The Company held an approximate 91% interest in the AIMCO Operating Partnership as of December 31, 2000. AIMCO-GP, Inc. is the sole general partner of the AIMCO Operating Partnership.

As of December 31, 2000, AIMCO:

	•		owned or controlled (consolidated) 153,872 units in 566 apartment properties;

	•		held an equity interest in (unconsolidated) 111,748 units in 683 apartment properties; and

	•		managed 60,669 units in 471 apartment properties for third party owners and affiliates.

At December 31, 2000, AIMCO had 71,337,217 shares of Class A Common Stock outstanding and the AIMCO Operating Partnership had 8,341,161 Partnership Common Units (“Common OP Units”) outstanding (excluding units held by the Company), for a combined total of 79,678,378 shares of Class A Common Stock and Common OP Units outstanding.

Interests in the AIMCO Operating Partnership held by limited partners other than AIMCO are referred to as “OP Units”. OP Units include Common OP Units, Partnership Preferred Units (“Preferred OP Units”) and High Performance Partnership Units. The AIMCO Operating Partnership’s income is allocated to holders of Common OP Units based on the weighted average number of Common OP Units outstanding during the period. The AIMCO Operating Partnership records the issuance of Common OP Units and the assets acquired in purchase transactions based on the market price of the Company’s Class A Common Stock at the date of execution of the purchase contract. The holders of the Common OP Units receive distributions, prorated from the date of issuance, in an amount equivalent to the dividends paid to holders of Class A Common Stock. After holding the Common OP Units for one year, the limited partners generally have the right to redeem their Common OP Units for cash. Notwithstanding that right, the AIMCO Operating Partnership may elect to cause AIMCO to acquire some or all of the Common OP Units tendered for redemption in exchange for shares of Class A Common Stock in lieu of cash. During 2000, 1999 and 1998, the weighted average ownership interest in the AIMCO Operating Partnership held by the Common OP Unit holders was 9%, 9% and 12%, respectively. Preferred OP Units entitle the holders thereof to a preference with respect to distributions or upon liquidation (see Note 13). See Footnote 19 for the discussion on High Performance Units.

NOTE 2 — Basis of Presentation and Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of AIMCO, the AIMCO Operating Partnership, majority owned subsidiaries and controlled real estate partnerships. Interests held by limited partners in real estate partnerships controlled by the Company and interests held by the minority shareholders of Insignia Properties Trust (through February 26, 1999) are reflected as minority interest in other entities. Significant intercompany balances and transactions have been eliminated in consolidation. The assets of property owning limited partnerships and limited liability companies owned or controlled by AIMCO or the AIMCO Operating Partnership generally are not available to pay creditors of AIMCO or the AIMCO Operating Partnership.

Real Estate and Depreciation

Real estate is recorded at cost, less accumulated depreciation, unless considered impaired. If events or circumstances indicate that the carrying amount of a property may be impaired, the Company will make an assessment of its recoverability by estimating the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the aggregate future cash flows, the Company would recognize an impairment loss to the extent the carrying amount exceeds the fair value of the property.

F-8

As of December 31, 2000, management believes that no impairments exist based on periodic reviews. No impairment losses were recognized for the years ended December 31, 2000, 1999 and 1998.

Direct costs associated with the acquisition of ownership or control of properties are capitalized as a cost of the assets acquired, and are depreciated over the estimated useful lives of the related assets. Expenditures for ordinary repairs, maintenance and apartment turnover costs are expensed as incurred.

Initial Capital Expenditures (“ICE”) are those costs considered necessary by the Company in its investment decision to correct deferred maintenance or improve a property. Capital enhancements are costs incurred that add a material new feature or increase the revenue potential of a property. ICE and capital enhancement costs are capitalized and depreciated over the estimated useful lives of the related assets.

Expenditures in excess of $250 that maintain an existing asset which has a useful life of more than one year are capitalized as capital replacement expenditures and depreciated over the estimated useful life of the asset.

Depreciation is calculated on the straight-line method based on a fifteen to thirty year life for buildings and improvements and five years for furniture, fixtures and equipment.

Redevelopment

The Company capitalizes direct and indirect costs (including interest, taxes and other costs) in connection with the redevelopment of its owned or controlled properties and land under development. Interest of $9.3 million, $6.6 million and $2.8 million was capitalized for the years ended December 31, 2000, 1999 and 1998, respectively.

Investments in Unconsolidated Real Estate Partnerships

The Company owns general and limited partnership interests in numerous partnerships that own multi-family apartment properties. Investments in real estate partnerships in which the Company has significant influence but does not have control are accounted for under the equity method. Under the equity method, the Company’s pro-rata share of the earnings or losses of the entity for the periods being presented is included in equity in earnings (losses) from unconsolidated partnerships (see Note 5).

Investments in Unconsolidated Subsidiaries

The Company has investments in numerous subsidiaries. Investments in entities in which the Company has significant influence but does not have control are accounted for under the equity method. Under the equity method, the Company’s pro-rata share of the earnings or losses of the entity for the periods being presented is included in equity in earnings (losses) from unconsolidated subsidiaries (see Note 6).

Notes Receivable from Unconsolidated Real Estate Partnerships and Subsidiaries

The Company has investments in numerous notes receivable, which were either extended by the Company or were made by predecessors whose positions have been acquired by the Company. Interest income is recognized on these investments based upon whether the collectibility of such amounts is both probable and estimable. Notes receivable from unconsolidated real estate partnerships and subsidiaries consist substantially of second mortgage note receivable, whose ultimate repayment is subject to a number of variables, including the performance and value of the underlying real property and the ultimate timing of repayments of receivables. The carrying amounts of notes receivable approximates their fair value in consideration of interest rates, market conditions and other qualitative factors (see Note 7).

Cash Equivalents

The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents.

F-9

Restricted Cash

Restricted cash includes capital replacement reserves, completion repair reserves, bond sinking fund amounts and tax and insurance impound accounts held by lenders.

Other Assets

Fees and costs incurred in obtaining financing are capitalized and are included in other assets. Such costs are amortized over the terms of the related loan agreements and are charged to interest expense.

Certain intangible assets are included in other assets and consist of costs associated with the purchase of property management businesses, including property management contracts, legal and other acquisition costs. These costs are amortized on a straight-line basis over terms ranging from five to twenty years.

Revenue Recognition

The Company’s properties have operating leases with apartment residents with terms generally of twelve months or less. Rental revenues and property management and asset management fees are recognized when earned.

Income on Loans

Income on loans is recorded as earned in accordance with the terms of the related loan agreements. The accrual of interest is discontinued when a loan becomes ninety days contractually delinquent or sooner when, in the opinion of the Company, impairment has occurred in the value of the collateral property securing the loan. Income on nonaccrual loans or loans that are otherwise not performing in accordance with their terms is recorded on a cash basis.

Allowance for Loan Losses

Loan losses on notes receivable are charged to income and an allowance account is established when the Company believes the principal balance will not be recovered. The Company assesses the collectibility of each note on a periodic basis through a review of the collateral, property operations, the property value and the borrower’s ability to repay the loan.

Income Taxes

AIMCO has elected to be taxed as a real estate investment trust (“REIT”), as defined under the Internal Revenue Code of 1986, as amended. In order for AIMCO to qualify as a REIT, at least 90% (95% in 2000) of AIMCO’s gross income in any year must be derived from qualifying sources. The activities of unconsolidated subsidiaries engaged in the service company business are not qualifying sources.

As a REIT, AIMCO generally will not be subject to U.S. Federal income taxes at the corporate level on its net income that is distributed to its stockholders if it distributes at least 90% of its REIT taxable income to its stockholders. REITs are also subject to a number of other organizational and operational requirements. If AIMCO fails to qualify as a REIT in any taxable year, its taxable income will be subject to U.S. Federal income tax at regular corporate rates (including any applicable alternative minimum tax). Even if AIMCO qualifies as a REIT, it may be subject to certain state and local income taxes and to U.S. Federal income and excise taxes on its undistributed income.

Earnings and profits, which determine the taxability of dividends to stockholders, differ from net income reported for financial reporting purposes due to differences for U.S. Federal tax purposes in the estimated useful lives and methods used to compute depreciation and the carrying value (basis) of the investments in properties, among other things.

F-10

The following table reconciles the Company’s net income to REIT taxable income for the year ended December 31, 2000:


Net income	$	99,178
Elimination of earnings from unconsolidated subsidiaries		(3,666	)
Depreciation and amortization expense not deductible for tax		89,885
Gain on disposition of properties		42,645
Interest income, not taxable		(12,987	)
Depreciation timing differences on real estate		7,007
Dividends on officer stock, not deductible for tax		2,496
LP deficit allocations, not deductible for tax		21,992
Transaction and project costs, deductible for tax		(2,730	)

REIT taxable income	$	243,820

For income tax purposes, distributions paid to common stockholders consist of ordinary income, capital gains, return of capital or a combination thereof. For the years ended December 31, 2000, 1999 and 1998, distributions paid per share were taxable as follows:


	2000					1999					1998

	Amount		Percentage			Amount		Percentage			Amount		Percentage

Ordinary income	$	1.84		66	%	$	2.04		82	%	$	0.90		40	%
Return of capital		—		—			0.16		6	%		1.33		59	%
Capital gains		0.32		11	%		0.12		5	%		—		—
Unrecaptured SEC.1250 gain		0.64		23	%		0.18		7	%		0.02		1	%

	$	2.80		100	%	$	2.50		100	%	$	2.25		100	%

Earnings Per Share

Earnings per share is calculated based on the weighted average number of shares of common stock, common stock equivalents and dilutive convertible securities outstanding during the period (see Note 17).

Fair Value of Financial Instruments

The estimated aggregate fair value of the Company’s cash and cash equivalents, receivables, payables and short-term secured debt as of December 31, 2000 is assumed to approximate their carrying value due to their relatively short terms. Management further believes that the fair market value of the Company’s secured tax-exempt bond debt and secured long-term debt approximate their carrying value, based on market comparisons to similar types of debt instruments having similar maturities.

Concentration of Credit Risk

Financial instruments that potentially could subject the Company to significant concentrations of credit risk consist principally of notes receivable from unconsolidated real estate partnerships. Concentrations of credit risk with respect to notes receivable from unconsolidated real estate partnerships are limited due to the large number of partnerships comprising the Company’s partnership base and the geographic diversity of the underlying properties.

Industry Segment

The Company owns and operates multi-family apartment communities throughout the United States and Puerto Rico which generate rental and other property related income through the leasing of apartment units to a diverse base of tenants. The Company separately evaluates the performance of each of its apartment communities. However, because each of the apartment communities has similar economic characteristics, facilities, services and tenants, the apartment communities have been aggregated into a single apartment communities segment. All segment disclosures are included in or can be derived from the Company’s consolidated financial statements.

All revenues are from external customers and no revenues are generated from transactions with other segments. There were no tenants that contributed 10% or more of the Company’s total revenues during 2000, 1999 or 1998.

F-11

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates.

Reclassifications

Certain items included in the 1999 and 1998 consolidated financial statements have been reclassified to conform with the 2000 presentation.

NOTE 3 — Real Estate

Real estate at December 31, 2000 and 1999, is as follows (in thousands):


	2000			1999

Land	$	976,421		$	661,502
Buildings and improvements		6,036,031			3,851,195

		7,012,452			4,512,697
Accumulated depreciation		(913,263	)		(416,497	)

	$	6,099,189		$	4,096,200

The Company directly acquired 12 apartment communities containing 2,830 units in separate transactions during 2000 (not including those acquired in connection with the acquisition of the Oxford properties (see Note 4)). The aggregate consideration paid by the Company of $136.5 million consisted of $42.7 million in cash, $26.4 million in preferred OP Units, $6.8 million in common OP Units and the assumption of $60.6 million of secured long-term indebtedness. As part of these acquisitions, the Company has also determined to undertake $4.8 million of initial capital enhancements to these properties.

The Company directly acquired 28 apartment communities containing 12,721 units in unrelated transactions during 1999 (not including those acquired in connection with the merger with Insignia Properties Trust (see Note 4)). The aggregate consideration paid by the Company of $495.0 million consisted of $91.5 million in cash, 2.4 million preferred OP Units, 0.9 million common OP Units and 0.5 million shares of Class A Common Stock with a total recorded value of $116.8 million, the assumption of $110.1 million of secured long-term indebtedness, the assumption of $15.2 million of other liabilities, and new financing of $161.4 million of secured long-term indebtedness. Four of these assets were then contributed to an unconsolidated subsidiary.

In addition to the acquisitions described above, in 2000 and 1999, the Company acquired controlling interests in partnerships owning 201 properties (52,217 units) and 125 properties (34,228 units), respectively, and began consolidating these entities. Control was obtained through the purchase of limited partnership interests from unaffiliated third parties or other increases in the Company’s equity investment in the partnerships.

During 2000, the Company sold 32 properties containing 7,660 units to unaffiliated third parties. Cash proceeds from the sales of approximately $159.3 million were used to repay a portion of the Company’s outstanding indebtedness. The Company recognized a net GAAP gain of approximately $26.3 million on the disposition of these properties, of which 35% of the gain related to one property.

During 1999, the Company sold 8 properties containing 2,309 units to unaffiliated third parties. Cash proceeds from the sales of approximately $49.0 million were used to repay a portion of the Company’s outstanding indebtedness. The Company recognized a loss of approximately $1.8 million on disposition of these properties, of which 96% of the loss related to one property.

F-12

NOTE 4 — Mergers

Ambassador Merger

On May 8, 1998, Ambassador Apartments, Inc. (“Ambassador”), was merged with and into AIMCO, with AIMCO being the surviving corporation. The merger was accounted for as a purchase and as a result, the results of operations were included in the consolidated statement of income from the date of acquisition. The purchase price of $713.6 million was comprised of $90.3 million in cash, $372.0 million of assumed debt and approximately 6.6 million shares of Class A Common Stock valued at $251.3 million. Pursuant to the Ambassador merger agreement, each outstanding share of Ambassador common stock not owned by AIMCO was converted into the right to receive 0.553 shares of Class A Common Stock. Concurrently, all outstanding options to purchase Ambassador common stock were converted into cash or options to purchase Class A Common Stock, at the same conversion ratio. Contemporaneously with the consummation of the Ambassador merger, a subsidiary of the AIMCO Operating Partnership merged with Ambassador’s operating partnership and each outstanding unit of limited partnership interest in the Ambassador operating partnership was converted into the right to receive 0.553 OP Units. Prior to its acquisition by AIMCO, Ambassador was a self-administered and self-managed real estate investment trust engaged in the ownership and management of garden-style apartment properties leased primarily to middle income tenants. Ambassador owned 52 apartment communities with a total of 15,728 units located in Arizona, Colorado, Florida, Georgia, Illinois, Tennessee and Texas, and managed one property containing 252 units for an unrelated third party.

Insignia Merger

On October 1, 1998, Insignia Financial Group, Inc., a Delaware corporation, (“Insignia”) was merged with and into AIMCO with AIMCO being the surviving corporation. The merger was accounted for as a purchase and as a result, the results of operations were included in the consolidated statement of income from the date of acquisition. The purchase price of $1,125.7 million was comprised of the issuance of up to approximately 8.9 million shares of Class E Cumulative Convertible Preferred Stock (the “Class E Preferred Stock”) valued at $301.2 million, $670.1 million in assumed debt and liabilities (including a $50 million special dividend, assumed liabilities of Insignia Properties Trust and transaction costs), $149.5 million in assumed mandatory redeemable convertible preferred securities, and $4.9 million in cash. The Class E Preferred Stock entitled the holders thereof to receive the same cash dividends per share as holders of Class A Common Stock. On January 15, 1999, holders of Class E Preferred Stock received a special dividend in an aggregate amount of approximately $50 million, and all outstanding shares of Class E Preferred Stock automatically converted into an equal number of shares of Class A Common Stock.

As a result of the Insignia merger, AIMCO acquired: (i) Insignia’s interests in Insignia Properties Trust, (“IPT”), a Maryland REIT, which was a majority owned subsidiary of Insignia; (ii) Insignia’s interest in Insignia Properties, L.P., IPT’s operating partnership; (iii) 100% of the ownership of the Insignia entities that provide multifamily property management and partnership administrative services; (iv) Insignia’s interest in multi-family co-investments; (v) Insignia’s ownership of subsidiaries that control multi-family properties not included in IPT; (vi) Insignia’s limited partner interests in public and private syndicated real estate limited partnerships; and (vii) assets incidental to the foregoing businesses. Insignia owned or managed in excess of 170,000 apartment units.

Insignia Properties Trust Merger

As a result of the Insignia merger, AIMCO acquired approximately 51% of the outstanding shares of beneficial interest of IPT. On February 26, 1999, IPT was merged into AIMCO. Pursuant to the merger, each of the outstanding shares of IPT that were not held by AIMCO were converted into the right to receive 0.3601 shares of Class A Common Stock, resulting in the issuance of approximately 4.3 million shares of Class A Common Stock (with a recorded value of approximately $158.8 million).

F-13

Oxford Acquisition

On September 20, 2000, the Company acquired all of the stock and other interests of the Oxford entities that were held by six executive officers and directors of the Oxford entities. The Oxford properties, which are owned by 166 separate partnerships, are 167 apartment communities including 36,949 units, located in 18 states. This transaction was accounted for as a purchase, and as a result, the results of operations were included in the consolidated statement of income from the date of acquisition. The purchase price of $1,189 million was comprised of $266 million in cash, $861 million of assumed liabilities and transaction costs and $62 million in Common OP Units valued at $45 per unit.

Unaudited Pro forma Statements

The unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2000 and 1999 have been prepared as if each of the following transactions had occurred on January 1, 1999: (i) the Oxford acquisition; (ii) the acquisition of the Regency Windsor Apartment Communities, which include fourteen separate residential apartment communities located in Indiana, Michigan and North Carolina; (iii) the acquisition of the Dreyfuss Apartment Communities located in Virginia and Maryland; and (v) the Oxford tender offers of approximately $58 million ($37 million paid in cash, $21 million paid in Common OP units) that occurred in 2000 subsequent to the Oxford acquisition.

The pro forma information is not necessarily indicative of what the Company’s results of operations would have been assuming the completion of the described transactions at the beginning of the periods indicated, nor does it purport to project the Company’s results of operations for any future period.

Pro Forma Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
(unaudited)


	2000		1999

Rental and other property revenues	$	1,139,564	$	688,568
Net income	$	82,462	$	33,788
Net income (loss) attributable to common stockholders	$	19,279	$	(23,097	)
Basic earnings (loss) per common share	$	0.29	$	(0.37	)
Diluted earnings (loss) per common share	$	0.28	$	(0.37	)

NOTE 5 — Investments in Unconsolidated Real Estate Partnerships

The Company owns general and limited partner interests in approximately 625 partnerships which it acquired through acquisitions, direct purchases and separate offers to other limited partners. The Company’s total ownership interests in these unconsolidated real estate partnerships range from 1% to 99%. However, based on the provisions of the related partnership agreements, which grant varying degrees of control, the Company is not deemed to have control of these partnerships sufficient to require or permit consolidation for accounting purposes.

During 2000 and 1999, the Company acquired limited partnership interests in various partnerships in which affiliates of the Company served as a general partner. The Company paid approximately $195 million in cash and OP Units and $271 million in cash and OP Units, during 2000 and 1999, respectively, in connection with such tender offers. In 2000, the Company also acquired general and limited partnership interests in various partnerships as part of the Oxford acquisition, which closed on September 20, 2000, increasing the resulting partnership debt.

F-14

The Oxford acquisition and consolidation of an additional 201 and 125 properties in 2000 and 1999, respectively, resulted in the following net change to the selected combined gross historical financial information for the Company’s unconsolidated real estate partnerships as of and for the years ended December 31, 2000 and 1999 (in thousands):


	2000			1999

Real estate, net of accumulated depreciation	$	2,597,025		$	2,930,748
Total assets		3,136,264			3,501,195
Secured notes payable		4,246,457			2,940,819
Total liabilities		4,484,159			3,536,646
Partners’ deficit		(1,347,895	)		(35,451	)
Rental and other property revenues		777,621			1,120,888
Property operating expenses		(408,198	)		(582,523	)
Depreciation expense		(140,730	)		(237,066	)
Interest expense		(232,995	)		(269,163	)
Net income		135,927			42,106

NOTE 6 — Investments in Unconsolidated Subsidiaries

In order to satisfy certain requirements of the Internal Revenue Code applicable to AIMCO’s status as a REIT, certain assets of the Company are held through corporations in which the AIMCO Operating Partnership holds non-voting preferred stock and certain officers and/or directors of AIMCO hold, directly or indirectly, all of the voting common stock. Effective December 29, 1999, a portion of the voting common stock was purchased by the Company and was exchanged for non-voting preferred stock, bringing the total voting common stock interests to represent a 1% economic interest and the non-voting preferred stock to represent a 99% economic interest.

In 2000, in connection with the Oxford acquisition, the Company sold or contributed certain real estate assets and liabilities to the unconsolidated subsidiaries in exchange for notes receivable and preferred stock interest.

As a result of the controlling ownership interest in the unconsolidated subsidiaries being held by others, AIMCO accounts for its interest in the unconsolidated subsidiaries using the equity method. As of December 31, 2000, the unconsolidated subsidiaries included AIMCO/NHP Holdings, Inc., AIMCO/NHP Properties, Inc., NHP Management Company, NHP A&R Services, Inc., and AIMCO/Bethesda Holdings, Inc.

The following table provides selected combined historical financial information for the Company’s unconsolidated subsidiaries as of and for the years ended December 31, 2000 and 1999 (in thousands):


	2000			1999

Total assets	$	649,813		$	166,019
Total liabilities		654,076			128,423
Stockholders’ equity		(4,263	)		37,596
Total revenues		158,609			139,667
Total expenses		(154,487	)		(142,515	)
Net income (loss)		4,122			(2,848	)

NOTE 7 — Notes Receivable

The following table summarizes the Company’s notes receivable from unconsolidated real estate partnerships and subsidiaries at December 31, 2000 and 1999 (in thousands):


	Notes Receivable from				Notes Receivable from
	Unconsolidated Real				Unconsolidated
	Estate Partnerships				Subsidiaries

	2000		1999		2000			1999

Par value notes	$	60,355	$	67,414	$	218,873		$	88,754
Discounted notes		80,505		92,521		—			—
Less: General partner notes payable		—		—		(28,420	)		—

Total	$	140,860	$	159,935	$	190,453		$	88,754

F-15

The Company recognizes interest income earned from its investments in notes receivable based upon whether the collectibility of such amounts is both probable and estimable. The notes receivable were either extended by the Company and are carried at the face amount plus accrued interest (“par value notes”) or were made by predecessors whose positions have been acquired by the Company at a discount and are carried at the acquisition amount using the cost recovery method (“discounted notes”).

As of December 31, 2000 and 1999, the Company held $60.4 million and $67.4 million, respectively, of par value notes receivable from unconsolidated real estate partnerships, including accrued interest, for which management believes the collectibility of such amounts is both probable and estimable. As such, interest income from the par value notes is generally recognized as it is earned. Interest income from such notes for the years ended December 31, 2000, 1999 and 1998, totaled $23.2 million, $12.8 million, and $15.3 million, respectively.

As of December 31, 2000 and 1999, the Company held discounted notes, including accrued interest, with a carrying value of $80.5 million and $92.5 million, respectively. The total face value plus accrued interest of these notes were $151.0 million and $173.1 million in 2000 and 1999, respectively. In general, interest income from the discounted notes is not recognized as it is earned until such time as the timing and amounts of cash flows are probable and estimable.

Under the cost recovery method, the discounted notes are carried at the acquisition amount, less subsequent cash collections, until such time as collectibility is probable and the timing and amounts are estimable. Based upon closed or pending transactions (including sales activity), market conditions, and improved operations of the obligor, among other things, certain notes and the related discounts have been determined to be collectible. Accordingly, interest income that had previously been deferred and portions of the related discounts were recognized as interest income during the period. For the years ended December 31, 2000, 1999 and 1998, the Company recognized deferred interest income and discounts of approximately $26.4 million ($0.39 per share (basic) and $0.38 per share (diluted)), $32.5 million ($0.52 per share (basic) and $0.51 per share (diluted)), and $1.4 million ($0.03 per basic and diluted share). Approximately 90% of the recognized interest income is collected in cash or through foreclosure of the property securing the note within 12 months from the date that such amounts were determined to be collectible, and the remainder is collected in the following six months.

As of December 31, 2000 and 1999, the Company held $218.9 million and $88.8 million, respectively of par value notes receivable from unconsolidated subsidiaries. In 2000, in connection with the Oxford acquisition, the Company sold certain assets and liabilities to the unconsolidated subsidiaries in exchange for notes receivable. The Company also acquired, in the Oxford acquisition, notes receivable that were payable from Oxford entities that are now owned by the unconsolidated subsidiaries. Certain general partner notes are held at the unconsolidated subsidiaries and, therefore, the general partner payables ($28.4 million) related to these notes are offset against the Company's notes receivable from unconsolidated subsidiaries.

NOTE 8 — Secured Notes Payable

During 2000, the Company issued or assumed $669.0 million of long-term, fixed-rate, fully amortizing non-recourse notes payable with a weighted average interest rate of 7.5%. Each of the notes is individually secured by 107 properties with no cross-collateralization. In addition, the Company also assumed $895.9 million of long-term, fixed-rate notes payable, as a part of purchasing controlling interests in limited partnerships owning 201 properties, which resulted in these properties being consolidated in 2000.

The following table summarizes the Company’s secured notes payable at December 31, 2000 and 1999, all of which are non-recourse to the Company (in thousands):


		2000		1999

Fixed rate, ranging from 5.00% to 12.00%, fully-amortizing notes maturing at various dates through 2034		$	2,428,155	$	1,597,772
Fixed rate, ranging from 5.00% to 10.04%, non-amortizing notes maturing at various dates through 2029			830,187		356,487

	Total	$	3,258,342	$	1,954,259

As of December 31, 2000, the scheduled principal amortization and maturity payments for the Company’s secured notes payable are as follows (in thousands):


	Amortization		Maturities		Total

2001	$	51,266	$	96,343	$	147,609
2002		70,542		102,484		173,026
2003		79,344		150,237		229,581
2004		82,831		141,173		224,004
2005		89,253		142,302		231,555
Thereafter						2,252,567

					$	3,258,342

F-16

NOTE 9 — Secured Tax-Exempt Bond Financing

During 2000, the Company assumed $394.0 million of long-term, fixed-rate, fully amortizing non-recourse tax-exempt bonds with a weighted average interest rate of 5.9%. Each of the bonds is individually secured by one of 22 properties with no cross-collateralization.

In 1999, the Company issued $17.8 million of long-term, fixed-rate, fully amortizing non-recourse tax-exempt bonds with a weighted average interest rate of 7.1%. Each of the bonds is individually secured by one of two properties with no cross-collateralization. The Company used the net proceeds after transaction costs of $17.3 million to repay existing debt.

The following table summarizes the Company’s secured tax-exempt bond financing at December 31, 2000 and 1999, all of which is non-recourse to the Company (in thousands):


		2000		1999

7.0% fully-amortizing bonds, due July 2016		$	42,435	$	43,889
6.9% fully-amortizing bonds, due July 2016			8,686		8,987
Fixed rate fully-amortizing bonds, ranging from 5.1% to 5.8%, due 2021			117,025		157,578
Fixed rate fully-amortizing bonds, ranging from 6.5% to 7.3%, due at various dates through 2036			286,604		79,866
Fixed rate non-amortizing bonds, ranging from 5.0% to 8.19%, due at various dates through 2017			32,993		50,158
Interest-only bonds, ranging from 3.7% to 7.70%, due at various dates through 2029			195,331		4,453
Floating rate non-amortizing bonds, due 2001 and 2008			30,799		31,689
Variable rate bonds, ranging from 4.9% to 5.3%, due 2021			59,160		44,210

	Total	$	773,033	$	420,830

As of December 31, 2000, the scheduled principal amortization and maturity payments for the Company’s secured tax-exempt bonds are as follows (in thousands):


	Amortization		Maturities		Total

2001	$	28,225	$	—	$	28,225
2002		12,718		—		12,718
2003		13,400		—		13,400
2004		14,139		121,795		135,934
2005		15,192		—		15,192
Thereafter						567,564

					$	773,033

NOTE 10 — Secured Short-Term Financing

In August 1999, the Company closed a $300 million revolving credit facility arranged by Bank of America, N.A., Fleet National Bank (successor in Bank Boston, N.A.) and First Union National Bank with a syndicate comprised of a total of nine lender participants. Effective March 15, 2000 the credit facility was expanded by $45 million with the potential to expand it by another $55 million to a total of $400 million. Of the $55 million potential expansion, $5 million was expanded on April 14, 2000 bringing the total availability to $350 million. In September 2000, the credit facility was amended and restated. The obligations under the credit facility are secured by a first priority pledge of certain non-real estate assets of the Company and a second priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., and AIMCO Holdings, L.P., in certain subsidiaries of AIMCO and certain options to purchase Beneficial Assignee Interests (“BACs”) in Oxford Tax Exempt Fund II Limited Partnership (“OTEF”). Borrowings under the credit facility, including the $50 million expansion, are available for general corporate purposes. The credit facility matures in July 2002 and can be extended twice at AIMCO’s option, for a term of one year. The annual interest rate under the new credit facility is based on either LIBOR or a base rate which is the higher of Bank of America’s reference rate or 0.5% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 2.05% and 2.55%, in the case of LIBOR-based loans, and between 0.55% and 1.05%, in the case of base rate loans, based upon a fixed charge coverage ratio. The weighted average interest rate at December 31, 2000 was 9.16% and the balance outstanding was $254.7 million. The amount available under the credit facility at December 31, 2000 and 1999 was $95.3 million (less $1.2 million for outstanding letters for credit) and $90.8 million, respectively. Of the total availability of $94.1 million, $28.8 million pertains to unused letters of credit.

F-17

In September 2000, the Company closed a term loan from Bank of America, N.A., Lehman Commercial Paper Inc. and several other lenders, pursuant to a term loan with a total availability of $302 million to finance part of the Oxford acquisition. Transaction costs (including advisory fees) incurred on the term loan were $9.4 million. The borrowers under the term loan are the AIMCO Operating Partnership, NHP Management Company and AIMCO/Bethesda Holdings, Inc., and all obligations thereunder are guaranteed by AIMCO and certain of its subsidiaries. The obligations under the term loan are secured by a first priority pledge of the stock ownership of the AIMCO Operating Partnership, NHP Management Company, AIMCO/Bethesda Holdings, Inc., and AIMCO Holdings, L.P., in certain subsidiaries of AIMCO and certain options to purchase BACs in OTEF and a second priority pledge of certain non-real estate assets of the Company. The annual interest rate under the term loan is based either on LIBOR or a base rate which is the higher of Bank of America’s reference rate or 0.5% over the federal funds rate, plus, in either case, an applicable margin. The margin ranges between 4.0% and 5.0% in the case of LIBOR-based loans, and between 1.0% and 2.0% in the case of base rate loans, based upon the number of months the loan is outstanding. The term loan expires in July 2002. The weighted average interest rate at December 31, 2000 was 10.5%. The total amount outstanding under the term loan at December 31, 2000 was $137 million, of which $74 million is classified as secured short-term financing of the Company and the remainder is a liability at the unconsolidated subsidiaries and, therefore, is included in investment in unconsolidated subsidiaries.

NOTE 11 — Commitments and Contingencies

Legal

Limited Partnerships

Pending Investigations of HUD Management Arrangements

Environmental

F-18

Various laws also impose liability for the cost of removal or remediation of hazardous substances at the disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous or toxic substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of our properties, the Company could potentially be liable for environmental liabilities or costs associated with properties or properties it acquires or manages in the future.

Operating Leases

The Company is obligated under office space and equipment non-cancelable operating leases. In addition, the Company subleases certain of its office space to tenants under non-cancelable subleases. Approximate minimum annual rentals under operating leases and approximate minimum payments to be received under annual subleases for the five years ending after December 31, 2000 are as follows (in thousands):


	Operating Lease		Sublease
	Payments		Payments

2001	$	11,059	$	2,350
2002		5,796		84
2003		4,116		—
2004		3,525		—
2005		1,534		—

Total	$	26,030	$	2,434

Under the Company’s current operating structure, substantially all of the office space and equipment subject to the operating leases described above are for the use of its regional operating centers, which are operated by certain of the Company’s unconsolidated subsidiaries (see Note 6). Rent expense recognized by the unconsolidated subsidiaries totaled $5.6, $5.8 and $6.2 million in 2000, 1999 and 1998, respectively. Sublease payments for 2000, 1999 and 1998 were not material.

NOTE 12 — Mandatorily Redeemable Convertible Preferred Securities

In connection with the Insignia merger, the Company assumed the obligations under the Trust Based Convertible Preferred Securities with an aggregate liquidation amount of $149.5 million. The securities will mature on September 30, 2016 and require distributions at the rate of 6.5% per annum, with quarterly distributions payable in arrears. The securities are convertible by the holders at any time through September 30, 2016 and may be redeemed by the Company on or after November 1, 1999. Each $50 of liquidation value of the securities can be converted into Class A Common Stock at a conversion price of $49.61, which equates to 1.007 shares of Class A Common Stock. In 2000, the holders of the securities converted a total of $117.2 million of the $149.5 million of the securities into approximately 2,363,000 shares of Class A Common Stock.

NOTE 13 — Transactions Involving Minority Interests in Operating Partnership

The Company completed tender offers for limited partnership interests and acquisitions of individual properties resulting in the issuance of 2,189,000 and 1,084,000 Common OP Units in 2000 and 1999, respectively. Of the 2,189,000 Common OP Units issued in 2000, approximately 1,382,000 were issued in connection with the acquisition of interests in Oxford properties. The Company also issued Preferred OP Units to acquire individual properties and limited partnership interests.

F-19

As of December 31, 2000 and 1999, the following amounts of Preferred OP Units were outstanding (in thousands):


	2000		1999

Class One Partnership Preferred Units, redeemable to Class A Common Stock in one year, holder to receive dividends at 8% ($8.00 per annum per unit)		90		90
Class Two Partnership Preferred Units, redeemable to Class A Common Stock in one year, holders to receive dividends at 8% ($2.00 per annum per unit)		80		11
Class Three Partnership Preferred Units, redeemable to Class A Common Stock in one year, holders to receive dividends at 9.5% ($2.375 per annum per unit)		1,682		1,682
Class Four Partnership Preferred Units, redeemable to Class A Common Stock in one year, holders to receive dividends at 8% ($2.00 per annum per unit)		759		580
Class Five Partnership Preferred Units, redeemable to Class A Common Stock at any time at the option of the partnership, holder to receive dividends equal to the per unit distribution on the Common OP Units ($2.80 per unit for 2000)		69		—
Class Six Partnership Preferred Units, redeemable to Class A Common Stock in one year, holder to receive dividends at 8.5% ($2.125 per annum per unit)		859		—
Class Seven Partnership Preferred Units, redeemable to Class A Common Stock in one year, holder to receive dividends at 9.5% ($2.375 per annum per unit)		30		—
Class Eight Partnership Preferred Units, redeemable to Class A Common Stock at any time at the option of the partnership, holder to receive dividends equal to the per unit distribution on the Common OP Units ($2.80 per unit for 2000)		6		—

		3,575		2,363

NOTE 14 — Registration Statements

In August 1998, AIMCO and the AIMCO Operating Partnership filed a shelf registration statement with the Securities and Exchange Commission with respect to an aggregate of $1,268 million of debt and equity securities of AIMCO (of which $268 million was carried forward from a 1997 shelf registration statement) and $500 million of debt securities of the AIMCO Operating Partnership. The registration statement was declared effective by the SEC on December 10, 1998. As of December 31, 2000, the Company had $988 million available and the AIMCO Operating Partnership had $500 million available from this registration statement. The Company expects to finance pending acquisitions of real estate interests with the issuance of equity and debt securities under the shelf registration statement.

F-20

NOTE 15 — Stockholders’ Equity

Preferred Stock

At December 31, 2000 and 1999, the Company had the following classes of preferred stock outstanding:


	2000		1999

Perpetual:
Class C Cumulative Preferred Stock, $.01 par value, 2,400,000 shares authorized, 2,400,000 and 2,400,000 shares issued and outstanding; dividends payable at 9.0%, per annum	$	59,845	$	60,000
Class D Cumulative Preferred Stock, $.01 par value, 4,200,000 shares authorized, 4,200,000 and 4,200,000 shares issued and outstanding; dividends payable at 8.75%, per annum		105,000		105,000
Class G Cumulative Preferred Stock, $.01 par value, 4,050,000 shares authorized, 4,050,000 and 4,050,000 shares issued and outstanding; dividends payable at 9.375%, per annum		101,000		101,250
Class H Cumulative Preferred Stock, $.01 par value, 2,000,000 shares authorized, 2,000,000 and 2,000,000 shares issued and outstanding; dividends payable at 9.5%, per annum		49,925		50,000

		315,770		316,250

Convertible:
Class B Cumulative Convertible Preferred Stock, $.01 par value, 750,000 shares authorized, 419,471 and 750,000 shares issued and outstanding		41,947		75,000
Class K Convertible Cumulative Preferred Stock, $.01 par value, 5,000,000 shares authorized, 5,000,000 and 5,000,000 shares issued and outstanding		125,000		125,000
Class L Convertible Cumulative Preferred Stock, $.01 par value, 5,000,000 shares authorized, 5,000,000 and 5,000,000 shares issued and outstanding		125,000		125,000
Class M Convertible Cumulative Preferred Stock, $.01 par value, 1,600,000 shares authorized, 1,200,000 and no shares issued and outstanding		30,000		—
Class N Convertible Cumulative Preferred Stock, $.01 par value, 4,000,000 shares authorized, 4,000,000 and no shares issued and outstanding		100,000		—
Class O Cumulative Convertible Preferred Stock, $.01 par value, 1,904,762 shares authorized, 1,904,762 and no shares issued and outstanding		100,000		—

		521,947		325,000

Total	$	837,717	$	641,250

All classes of preferred stock are on equal parity and are senior to the Class A Common Stock. The holders of each class of preferred stock are generally not entitled to vote on matters submitted to stockholders. Dividends on all preferred stocks are subject to being declared by the Company’s Board of Directors.

Holders of the Class B Cumulative Convertible Preferred Stock (the “Class B Preferred Stock”) are entitled to receive, cash dividends in an amount per share equal to the greater of (i) $7.125 per year (equivalent to 7.125% of the liquidation preference) or (ii) the cash dividends declared on the number of shares of Class A Common Stock into which one share of Class B Preferred Stock is convertible. Each share of Class B Preferred Stock is convertible, at the option of the holder, beginning August 1998, into 3.28407 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was based upon the fair market value of the Class A Common Stock on the commitment date. In 2000, 330,529 shares of Class B Preferred Stock were converted into 1,085,480 shares of Class A Common Stock.

F-21

Holders of Class K Convertible Cumulative Preferred Stock (the “Class K Preferred Stock”), which was issued on February 18, 1999, are entitled to receive, cash dividends in an amount per share equal to the greater of (i) $2.00 per year (equivalent to 8% of the liquidation preference) or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class K Preferred Stock is convertible. Beginning with the third anniversary of the date of original issuance, holders of Class K Preferred Stock will be entitled to receive an amount per share equal to the greater of (i) $2.50 per year (equivalent to 10% of the liquidation preference), or (ii) the cash dividends payable on the number of Class A Common Stock into which a share of Class K Preferred Stock is convertible. Each share of Class K Preferred Stock is convertible, at the option of the holder, into 0.59524 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

Holders of Class L Convertible Cumulative Preferred Stock (the “Class L Preferred Stock”), which was issued on May 28, 1999, are entitled to receive, cash dividends in an amount per share equal to the greater of (i) $2.025 per year (equivalent to 8.1% of the liquidation preference) or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class L Preferred Stock is convertible. Beginning with the third anniversary of the date of original issuance, the holders of Class L Preferred Stock will be entitled to receive an amount per share equal to the greater of (i) $2.50 per year (equivalent to 10% of the liquidation preference) or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class L Preferred Stock is convertible. Each share of Class L Preferred Stock is convertible, at the option of the holder, into 0.5379 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

Holders of Class M Convertible Cumulative Preferred Stock (the “Class M Preferred Stock”), which was issued on January 13, 2000, are entitled to receive, for the period beginning January 13, 2000 through and including January 13, 2003, cash dividends in an amount per share equal to the greater of (i) $2.125 per year (equivalent to 8.5% of the liquidation preference) or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class M Preferred Stock is convertible. Beginning with the third anniversary of the date of original issuance, the holder of Class M Preferred Stock will be entitled to receive an amount per share equal to the greater of (i) $2.3125 per year (equivalent to 9.25% of the liquidation preference), or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class M Preferred Stock is convertible. Each share of Class M Preferred Stock is convertible, at the option of the holder, into 0.5681818 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

Holders of Class N Convertible Cumulative Preferred Stock (the “Class N Preferred Stock”), which was issued on September 12, 2000 are entitled to receive cash dividends in an amount per share equal to the greater of (i) $2.25 per year (equivalent to 9% per annum of the liquidation preference), subject to increase in the event of a change in control of AIMCO or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class N Preferred Stock is convertible. Dividends will be paid on the Class N Preferred Stock quarterly, beginning on October 1, 2000. Each share of Class N Preferred Stock is convertible, at the option of the holder, into 0.4762 shares of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

Holders of Class O Cumulative Convertible Preferred Stock (the “Class O Preferred Stock”), which was issued on September 15, 2000 are entitled to receive, cash dividends in an amount per share equal to the greater of (i) $4.725 per year (equivalent to 9% per annum of the liquidation preference), subject to increase in the event of a change in control of AIMCO or (ii) the cash dividends payable on the number of shares of Class A Common Stock into which a share of Class O Preferred Stock is convertible. Dividends will be paid on the Class O Preferred Stock quarterly, beginning on October 1, 2000. Each share of Class O Preferred Stock is convertible, at the option of the holder, into one share of Class A Common Stock, subject to certain anti-dilution adjustments. The initial conversion ratio was in excess of the fair market value of the Class A Common Stock on the commitment date.

F-22

The dividends paid on each class of preferred stock for the years ended December 31, 2000, 1999, and 1998 are as follows (in thousands, except per share data):


	2000					1999					1998

	Amount			Total		Amount			Total		Amount			Total
Class of	Per			Amount		Per			Amount		Per			Amount
Preferred Stock	Share(1)			Paid		Share(1)			Paid		Share(1)			Paid

Perpetual:
Class C	$	2.25		$	5,400	$	2.25		$	5,400	$	1.89	(2)	$	4,538
Class D		2.19			9,188		2.19			9,188		1.40	(2)		5,869
Class G		2.34			9,492		2.34			9,492		0.59	(2)		2,373
Class H		2.38			4,750		2.38			4,750		0.40	(2)		805

					28,830					28,830					13,585

Convertible:
Class B		9.20			7,137		8.21			6,158		7.39			5,542
Class E		—			—		—			—		0.22	(3)		1,892
Class J		—			—		3.16	(4)		3,956		0.14	(2)		175
Class K		2.00			10,000		1.50	(5)		7,500		—			—
Class L		2.03			10,125		1.01	(5)		5,063		—			—
Class M		1.59	(6)		1,913		—			—		—			—
Class N		0.12	(6)		475		—			—		—			—
Class O		0.24	(6)		450		—			—		—			—

					30,100					22,677					7,609

Total				$	58,930				$	51,507				$	21,194

(1)		Amounts per share are calculated based on the number of preferred shares outstanding at the end of each year.
(2)		For the period from the date of issuance to December 31, 1998.
(3)		For the period from the date of issuance to December 31, 1998. The Class E Preferred Stock was converted to Class A Common Stock on January 15, 1999.
(4)		For the period from January 1, 1999 to the date of conversion to Class A Common Stock.
(5)		For the period from the date of issuance to December 31, 1999.
(6)		For the period from the date of issuance to December 31, 2000.

Common Stock

During 2000 and 1999, the Company issued approximately 258,000 shares and 215,000 shares, respectively, of Class A Common Stock to certain executive officers (or entities controlled by them) at market prices. In exchange for the shares purchased, the executive officers (or entities controlled by them) executed notes payable totaling $7.7 million and $8.2 million, respectively. Total payments on such notes from officers in 2000 and 1999 were $15.1 million and $6.2 million, respectively. In addition, in 2000 and 1999, the Company issued approximately 42,000 and 37,000 restricted shares of Class A Common Stock, respectively, to certain executive officers. The restricted stock was issued at the fair market value of the Class A Common Stock on the date of issuance. The restricted stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of and shall be subject to a risk of forfeiture within the vesting periods of 3 to 5 years.

On September 15, 1999, the Company completed a direct placement of 1,382,580 shares of Class A Common Stock at a net price of $39.50 per share to five institutional investors. The net proceeds of approximately $54.6 million were used to repay outstanding indebtedness under the new credit facility.

During 2000, the Company repurchased and retired approximately 69,000 shares of Class A Common Stock at an average price of $37.39 per share.

F-23

NOTE 16 — Stock Option Plans and Stock Warrants

The Company has adopted the 1994 Stock Option Plan of Apartment Investment and Management Company (the “1994 Plan”), the Apartment Investment and Management Company 1996 Stock Award and Incentive Plan (the “1996 Plan”), the Apartment Investment and Management Company 1997 Stock Award and Incentive Plan (the “1997 Plan”) and the Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan (the “Non-Qualified Plan”) to attract and retain officers, key employees and independent directors. The 1994 Plan provides for the granting of a maximum of 150,000 options to purchase common shares. The 1996 Plan provides for the granting of a maximum of 500,000 options to purchase common shares. The 1997 Plan provides for the granting of a maximum of 20,000,000 options to purchase common shares. The Non-Qualified Plan provides for the granting of a maximum of 500,000 options to purchase common shares and allows for the granting of non-qualified stock options. The 1994 Plan, the 1996 Plan and the 1997 Plan allow for the grant of incentive and non-qualified stock options, and together with the Non-Qualified Plan, are administered by the Compensation Committee of the Board of Directors. The 1994 Plan also provides for a formula grant of the non-qualified stock options to the independent directors to be administered by the Board of Directors to the extent necessary. The exercise price of the options granted may not be less than the fair market value of the common stock at the date of grant. The term of the incentive and non-qualified options is ten years from the date of grant. The options vest over a one to five-year period from the date of grant. Terms may be modified at the discretion of the Compensation Committee of the Board of Directors.

The Company has elected to follow Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (“APB 25”) and related interpretations in accounting for its employee stock options because, as discussed below, the alternative fair value accounting provided for under Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation (“SFAS 123”), requires the use of option valuation models that were not developed for use in valuing employee stock options and warrants. Under APB 25, because the exercise price of the Company’s employee stock options and warrants equals the market price of the underlying stock on the date of grant, no compensation expense is recognized.

Pro forma information regarding net income and earnings per share is required by SFAS 123, which also requires that the information be determined as if the Company had accounted for its employee stock options and warrants granted subsequent to December 31, 1994 under the fair value method. The fair value for these options and warrants were estimated at the date of grant using a Black-Scholes valuation model with the following assumptions:


	2000			1999			1998

Risk free interest rates		6.1	%		5.0	%		5.0	%
Expected dividend yield		6.8	%		6.6	%		6.0	%
Volatility factor of the expected market price of the Company’s common stock		0.192			0.183			0.183
Weighted average expected life of options		4.5 years			4.5 years			4.5 years

The Black-Scholes valuation model was developed for use in estimating the fair value of traded options and for warrants which have no vesting restrictions and are fully transferable. In addition, the valuation model requires the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s stock options and warrants have characteristics significantly different from those of traded options and warrants, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing model does not necessarily provide a reliable single measure of the fair value of its employee stock options and warrants.

For purposes of pro forma disclosures, the estimated fair values of the options are amortized over the options’ vesting period. The Company’s pro forma information for the years ended December 31, 2000, 1999 and 1998 is as follows (in thousands, except per share data):


	2000		1999		1998

Pro forma net income attributable to common stockholders	$	31,396	$	17,606	$	34,396




Pro forma basic earnings per common share	$	0.46	$	0.28	$	0.76




Pro forma diluted earnings per common share	$	0.45	$	0.28	$	0.75

The effects of applying SFAS 123 in calculating pro forma income attributable to common stockholders and pro forma basic earnings per share may not necessarily be indicative of the effects of applying SFAS 123 to future years’ earnings.

F-24

The following table summarizes the option and warrants activity for the years ended December 31, 2000, 1999 and 1998:


	2000					1999					1998

				Weighted					Weighted					Weighted
	Options			Average		Options			Average		Options			Average
	And			Exercise		And			Exercise		and			Exercise
	Warrants			Price		Warrants			Price		Warrants			Price

Outstanding at beginning of year		8,660,000		$	37.78		8,325,000		$	36.38		1,684,000		$	30.53
Granted		219,000			39.89		1,000,000			37.14		6,686,000			37.78
Assumed in connection with acquisition		—			—		—			—		671,000			25.99
Exercised		(594,000	)		17.31		(490,000	)		13.78		(661,000	)		25.19
Forfeited		(50,000	)		37.02		(175,000	)		34.68		(55,000	)		35.71

Outstanding at end of year		8,235,000		$	37.80		8,660,000		$	37.78		8,325,000		$	36.38
Exercisable at end of year		3,942,000		$	37.54		1,643,000		$	37.55		1,793,000		$	31.69
Weighted-average fair value of options and warrants granted during the year				$	4.65				$	3.41				$	3.70

At December 31, 2000, exercise prices for outstanding and exercisable options range from $15.21 to $44.22 and warrants range from $36.00 to $41.00, and the remaining weighted-average contractual life of the options is 8 years.

On December 14, 1998, the Company sold, in a private placement, 1.4 million Class B partnership preferred units of a subsidiary of the AIMCO Operating Partnership for $30.85 million. The partnership units may be redeemed at the option of the holders at any time, and at the option of the Company under certain circumstances. Any redemption of the units may be satisfied by delivery of cash, Class A Common Stock or OP Units. As a part of the transaction, the Company also sold a warrant to purchase 875,000 shares of Class A Common Stock for $4.15 million. The warrant has an exercise price of $40 per share. The warrant may be exercised at any time, and expires upon redemption of the Class B partnership preferred units issued by a subsidiary of the AIMCO Operating Partnership.

On December 2, 1997, AIMCO issued warrants (the “Oxford Warrants”) exercisable to purchase up to an aggregate of 500,000 shares of Class A Common Stock at $41 per share. The Oxford Warrants were issued to affiliates of Oxford Realty Financial Group, Inc., a Maryland corporation (“Oxford”), in connection with the amendment of certain agreements pursuant to which the Company manages properties formerly controlled by Oxford or its affiliates. The Oxford Warrants were amended in connection with the acquisition of the Oxford entities in September 2000, are currently exercisable and terminate on December 31, 2006.

F-25

NOTE 17 — Earnings per Share

The following table illustrates the calculation of basic and diluted earnings per share for the years ended December 31, 2000, 1999 and 1998 (in thousands, except per share data):


			2000			1999			1998

Numerator:
Net income			$	99,178		$	77,527		$	64,474
Less: Net income allocable to preferred stockholders				(63,183	)		(53,453	)		(26,533	)

Numerator for basic and diluted earnings per share — net income attributable to common stockholders			$	35,995		$	24,074		$	37,941

Denominator:
Denominator for basic earnings per share — weighted average number of shares of common stock outstanding				67,572			62,242			45,187




Effect of dilutive securities:




Dilutive potential common shares				1,491			1,204			2,437

Denominator for diluted earnings per share				69,063			63,446			47,624

Basic earnings per common share:
	Operations		$	0.18		$	0.42		$	0.74
	Gain (loss) on disposition of properties			0.35			(0.03	)		0.10

		Total	$	0.53		$	0.39		$	0.84

Diluted earnings per common share:
	Operations		$	0.17		$	0.41		$	0.70
	Gain (loss) on disposition of properties			0.35			(0.03	)		0.10

		Total	$	0.52		$	0.38		$	0.80

The Class B Preferred Stock, the Class J Preferred Stock (1999 and 1998), the Class K Preferred Stock, the Class L Preferred Stock, the Class M Preferred Stock, the Class N Preferred Stock and the Class O Preferred Stock are convertible into Class A Common Stock (see Note 15). The Class C Preferred Stock, the Class D Preferred Stock, the Class G Preferred Stock, and the Class H Preferred Stock are not convertible. All of the convertible preferred stock is anti-dilutive on an “as converted” basis, therefore, all of the dividends are deducted to arrive at the numerator and no additional shares are included in the denominator.

NOTE 18 — Recent Accounting Developments

In June 1998, Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (“Statement 133”) was issued. In June 2000, Statement of Financial Accounting Standards No. 138, “Accounting for Certain Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133"(“SFAS 138)” was issued. SFAS 133 and SFAS 138 address the accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and hedging activities. The Company is required to adopt SFAS 133 and SFAS 138 in the first quarter of 2001. The Company anticipates that the adoption of SFAS 133 and SFAS 138 as of January 1, 2001 will not have a material effect on its financial position or results of operations.

In September 2000, Statement of Financial Accounting Standards No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities” (“SFAS 140”) was issued. SFAS 140 provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. SFAS 140 is effective for recognition and reclassification of collateral and for disclosures relating to securitization transactions and collateral for fiscal years ending after December 15, 2000 and is effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after March 31, 2001. The Company anticipates that the adoption of SFAS 140 will not have a material effect on its financial position or results of operations.

In December 1999, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (“SAB 101”). SAB 101 summarizes certain of the SEC’s views in applying generally accepted accounting principles to revenue recognition in financial statements. SAB 101 is effective for the fourth quarter of fiscal years beginning after December 1999. The Company believes that it is in compliance with the guidelines set forth in SAB 101.

F-26

NOTE 19 — High Performance Units

In January 1998, the AIMCO Operating Partnership sold an aggregate of 15,000 of its Class I High Performance Partnership Units (the “High Performance Units”) to a joint venture comprised of fourteen members of AIMCO’s senior management and to three of its independent directors for $2.1 million in cash. The value of the High Performance Units was determined on December 31, 2000 based on the Company’s total return, defined as dividend income plus share price appreciation of the Class A Common Stock, over the three year period ended December 31, 2000 (the “Total Return”). As a result, the 15,000 High Performance Units converted to approximately 2,379,000 High Performance Units in January 2001, and the holders of the High Performance Units will receive distributions and allocations of income and loss from the AIMCO Operating Partnership in the same amounts and at the same times as would holders of the same number of Common OP Units. The table below illustrates the calculation of the value of High Performance Units (in thousands):

Morgan

Excess

Value of

AIMCO

Stanley

Average

Shareholder

High

Total

Dean Witter

Minimum

Excess

Market

Value

Performance

OP Unit

Return

REIT Index

Return

Capitalization

Added(1)

Units (2)

Dilution

Dilution %

59.24%

0.58

30.00

29.24

2,623,000

767,000

115,000

2,379

(3)

2.43

(1)		Excess Return multiplied by average market capitalization
(2)		Excess Shareholder Value Added multiplied by 15%
(3)		OP Unit calculation based on trailing 20-day average stock price of $48.36

NOTE 20 — Employee Benefit Plans

The Company offers medical, dental, life and short-term and long-term disability benefits to employees of the Company through insurance coverage of Company-sponsored plans. The medical and dental plans are self-funded and are administered by independent third parties. In addition, the Company also participates in a 401(k) defined-contribution employee savings plan. Employees who have completed six months of service are eligible to participate. The Company matches 50%-100% of the participant’s contributions to the plan up to a maximum of 6% of the participant’s prior year compensation. The Company match percentage is based on employee tenure. The expense incurred by the Company totaled approximately $3.7 million, $2.6 million and $1.6 million in 2000, 1999 and 1998, respectively.

F-27

NOTE 21 — Unaudited Summarized Consolidated Quarterly Information

Summarized unaudited consolidated quarterly information for 2000 and 1999 is provided below (amounts in thousands, except per share amounts).


	Quarter(1)

Year ended December 31, 2000	First		Second			Third		Fourth

Rental and other property revenues	$	224,320	$	258,064		$	271,079	$	297,537




Income from property operations		70,173		63,986			84,027		69,653




Revenue from service company business		10,025		12,410			14,430		12,827
Company’s share of income from service company business		3,493		2,968			1,835		(2,811	)




Income before minority interest in Operating Partnership		28,454		13,160			33,457		34,646
Net income		25,882		11,822			30,236		31,238




Basic earnings per common share	$	0.17	$	(0.04	)	$	0.22	$	0.18
Diluted earnings per common share	$	0.17	$	(0.04	)	$	0.21	$	0.18
Weighted average common shares outstanding		65,947		66,261			67,715		70,366
Weighted average common shares and common share equivalents outstanding		66,315		66,261			71,733		71,942


	Quarter (1)

Year ended December 31, 1999	First			Second		Third			Fourth

Rental and other property revenues	$	112,586		$	116,237	$	120,398		$	184,696
Income from property operations		42,237			43,190		43,928			57,361
Revenue from service company business		7,899			6,936		9,310			14,232
Company’s share of income from service company business		(2,945	)		2,608		(7,227	)		14,611
Income before minority interest in Operating Partnership		15,175			23,993		19,889			24,655
Net income		13,098			22,259		18,629			23,541
Basic earnings per common share	$	0.01		$	0.15	$	0.08		$	0.15
Diluted earnings per common share	$	0.01		$	0.14	$	0.08		$	0.15
Weighted average common shares outstanding		56,468			62,323		64,370			65,805
Weighted average common shares and common share equivalents outstanding		58,412			63,552		65,451			66,368

(1)

Certain reclassifications have been made to 2000 and 1999 quarterly amounts to conform with the 2000 presentation.

NOTE 22 — Free Cash Flow from Business Components

Although the Company operates in only one segment, there are different components of the multi-family business for which management considers disclosure to be useful. The following tables present the contribution (separated between consolidated and unconsolidated activity) to the Company’s Free Cash Flow for the years ended December 31, 2000 and 1999, from these components, and a reconciliation of Free Cash Flow to funds from operations, less a reserve for capital replacements, and net income (in thousands, except equivalent units (ownership effected and period weighted) and monthly rents):

F-28

FREE CASH FLOW FROM BUSINESS COMPONENTS
For the Years Ended December 31, 2000 and 1999
(in thousands)


				2000

				Consolidated			Unconsolidated		Total			%

Real Estate
	Conventional
			Average monthly rent greater than $900 per unit (equivalent units of 9,667 and 4,585 for 2000 and 1999)	$	69,784		$	13,867	$	83,651			12.0	%
			Average monthly rent $800 to $900 per unit (equivalent units of 6,851 and 4,423 for 2000 and 1999)		59,578			3,035		62,613			9.0	%
			Average monthly rent $700 to $800 per unit (equivalent units of 10,608 and 9,310 for 2000 and 1999)		61,873			10,660		72,533			10.4	%
			Average monthly rent $600 to $700 per unit (equivalent units of 30,422 and 16,494 for 2000 and 1999)		144,818			20,694		165,512			23.7	%
			Average monthly rent $500 to $600 per unit (equivalent units of 40,529 and 29,492 for 2000 and 1999)		144,102			19,094		163,196			23.4	%
			Average monthly rent less than $500 per unit (equivalent units of 21,455 and 29,387 for 2000 and 1999)		56,016			5,613		61,629			8.8	%

			Subtotal conventional real estate contribution to Free Cash Flow		536,171			72,963		609,134			87.3	%
Affordable (equivalent units of 14,179 and 9,809 for 2000 and 1999)					25,116			30,133		55,249			7.9	%
College housing (average rent of $662 and $663 per month for 2000 and 1999) (equivalent units of 2,860 and 2,214 for 2000 and 1999)					12,777			997		13,774			2.0	%
Other Properties					1,788			6,047		7,835			1.1	%
Resident services					3,040			431		3,471			0.5	%
Minority interest					(90,637	)		—		(90,637	)		(13.0	)%

			Total real estate contribution to Free Cash Flow		488,255			110,571		598,826			85.8	%

Service Businesses
Management contracts (property and asset management)
			Controlled properties		2,275			9,608		11,883			1.7	%
			Third party with terms in excess of one year		—			7,839		7,839			1.1	%
			Third party cancelable in 30 days		—			2,700		2,700			0.4	%

			Subtotal management contracts contribution to free cash flow		2,275			20,147		22,422			3.2	%
Buyers Access					—			500		500			0.1	%
Other service businesses					3,594			4,125		7,719			1.1	%

			Total service businesses contribution to Free Cash Flow		5,869			24,772		30,641			4.4	%

Interest Income
		General partner loan interest			23,205			2,442		25,647			3.7	%
		Notes receivable from officers			964			—		964			0.1	%
		Other notes receivable			1,151			—		1,151			0.2	%
		Money market and interest bearing accounts			14,512			—		14,512			2.1	%

			Subtotal interest income		39,832			2,442		42,274			6.1	%
		Accretion of loan discount			26,409			—		26,409			3.8	%

			Total interest income contribution to Free Cash Flow		66,241			2,442		68,683			9.8	%

Fee Income




		Disposition Fees			2,630			808		3,438			0.5	%
		Refinancing Fees			3,681			319		4,000			0.6	%

			Total fee income contribution to Free Cash Flow		6,311			1,127		7,438			1.1	%

General and Administrative Expense					(7,813	)		—		(7,813	)		(1.1	)%

Free Cash Flow(1)					558,863			138,912		697,775			100.0	%

[Additional columns below]

[Continued from above table, first column(s) repeated]


				1999

				Consolidated			Unconsolidated			Total			%

Real Estate

	Conventional
			Average monthly rent greater than $900 per unit (equivalent units of 9,667 and 4,585 for 2000 and 1999)	$	33,692		$	8,513		$	42,205			8.1	%
			Average monthly rent greater than $800 per unit (equivalent units of 6,851 and 4,423 for 2000 and 1999)		32,108			7,159			39,267			7.5	%
			Average monthly rent $700 to $800 per unit (equivalent units of 10,608 and 9,310 for 2000 and 1999)		38,255			21,332			59,587			11.4	%
			Average monthly rent $600 to $700 per unit (equivalent units of 30,422 and 16,494 for 2000 and 1999)		61,678			27,615			89,293			17.2	%
			Average monthly rent $500 to $600 per unit (equivalent units of 40,529 and 29,492 for 2000 and 1999)		82,383			32,336			114,719			22.0	%
			Average monthly rent less than $500 per unit (equivalent units of 21,455 and 29,387 for 2000 and 1999)		38,311			20,037			58,348			11.2	%

			Subtotal conventional real estate contribution to Free Cash Flow		286,427			116,992			403,419			77.5	%
Affordable (equivalent units of 14,179 and 9,809 for 2000 and 1999)					5,131			31,964			37,095			7.1	%
College housing (average rent of $662 and $663 per month for 2000 and 1999) (equivalent units of 2,860 and 2,214 for 2000 and 1999)					3,633			4,553			8,186			1.6	%
Other Properties					1,933			4,956			6,889			1.3	%
Resident services					1,914			436			2,350			0.5	%
Minority interest					(22,212	)		—			(22,212	)		(4.3	)%

			Total real estate contribution to Free Cash Flow		276,826			158,901			435,727			83.7	%

Service Businesses

Management contracts (property and asset management) Controlled properties					13,921			6,800			20,721			4.0	%
			Third party with terms in excess of one year		—			10,281			10,281			2.0	%
			Third party cancelable in 30 days		—			908			908			0.2	%

			Subtotal management contracts contribution to Free Cash Flow		13,921			17,989			31,910			6.1	%
Buyers Access					—			3,314			3,314			0.6	%
Other service businesses					4,068			(2,703	)		1,365			0.3	%

			Total service businesses contribution to Free Cash Flow		17,989			18,600			36,589			7.0	%

Interest Income
		General partner loan interest			12,243			—			12,243			2.4	%
		Notes receivable from officers			869			—			869			0.2	%
		Other notes receivable			1,462			—			1,462			0.3	%
		Money market and interest bearing accounts			8,286			1,568			9,854			1.9	%

			Subtotal interest income		22,860			1,568			24,428			4.7	%
		Accretion of loan discount			32,460			—			32,460			6.2	%

			Total interest income contribution to Free Cash Flow		55,320			1,568			56,888			10.9	%

Fee Income
		Disposition Fees			3,070			801			3,871			0.7	%
		Refinancing Fees			283			331			614			0.1	%

			Total fee income contribution to Free Cash Flow		3,353			1,132			4,485			0.9	%

General and Administrative Expense					(13,112	)		—			(13,112	)		(2.5	)%

Free Cash Flow(1)					340,376			180,201			520,577			100	%

F-29

FREE CASH FLOW FROM BUSINESS COMPONENTS
For the Years Ended December 31, 2000 and 1999
(in thousands)


				2000										1999

				Consolidated			Unconsolidated			Total				Consolidated			Unconsolidated			Total

Free Cash Flow (1)					558,863			138,912			697,775				340,376			180,201			520,577

Interest expense:
		Secured debt
			Long-term, fixed rate		(227,103	)		(49,357	)		(276,460	)			(107,368	)		(64,856	)		(172,224	)




			Long-term, variable rate		(952	)		(13,381	)		(14,333	)			(1,314	)		(2,008	)		(3,322	)




			Short-term		(10,384	)		(1,697	)		(12,081	)			(14,906	)		(2,846	)		(17,752	)
		Lines of credit and other unsecured debt			(31,796	)		(2,698	)		(34,494	)			(13,378	)		(384	)		(13,762	)
		Interest expense on convertible debt			(8,869	)		—			(8,869	)			(9,716	)		—			(9,716	)
		Interest capitalized			9,278			1,165			10,443				6,588			93			6,681

			Total interest expense before minority interest		(269,826	)		(65,968	)		(335,794	)			(140,094	)		(70,001	)		(210,095	)




		Minority interest share of interest expense			57,445			—			57,445				11,248			—			11,248

			Total interest expense after minority interest		(212,381	)		(65,968	)		(278,349	)			(128,846	)		(70,001	)		(196,847	)
Dividends on preferred securities					(72,924	)		—			(72,924	)			(56,892	)		—			(56,892	)

	Contribution before non-cash charges and ownership adjustments				273,558			72,944			346,502				154,638			110,200			264,838
Non-structural depreciation, net of capital replacements					(11,794	)		(1,885	)		(13,679	)			(36	)		(7,481	)		(7,517	)
Amortization of intangible assets					(6,698	)		(5,370	)		(12,068	)			(14,297	)		(22,434	)		(36,731	)




Gain (loss) on sales of real estate, net of minority interest					17,282			—			17,282				(1,785	)		—			(1,785	)
Deferred tax provision					—			(154	)		(154	)			—			(1,763	)		(1,763	)

		Earnings before Structural Depreciation (EBSD)(1)			272,348			65,535			337,883				138,520			78,522			217,042
Structural depreciation, net of minority interest in other entities					(238,176	)		(60,207	)		(298,383	)			(102,219	)		(88,002	)		(190,221	)

		Net income (loss)			34,172			5,328			39,500		(a)		36,301			(9,480	)		26,821		(a)
Gain (loss) on sales of real estate, not of minority interest					(17,282	)		—			(17,282	)			1,785			—			1,785
Structural depreciation, net of minority interest in other entities					238,176			60,207			298,383				102,219			88,002			190,221
Non-structural depreciation, net of minority interest in other entities					44,060			9,981			54,041				19,470			16,762			36,232
Amortization of intangible assets					6,698			5,370			12,068				14,297			22,434			36,731
Deferred tax provision					—			154			154				—			1,763			1,763

		Funds from Operations (FFO)(1)			305,824			81,040			386,864				174,072			119,481			293,553
Capital replacement reserve					(32,268	)		(8,099	)		(40,367	)			(19,434	)		(9,281	)		(28,715	)

		Adjusted Funds From Operations (AFFO)(1)		$	273,556		$	72,941		$	346,497			$	154,638		$	110,200		$	264,838

(a)

Represents net income of the AIMCO Operating Partnership. AIMCO's share of this net income is approximately 91%.


						Earnings						Earnings
		Earnings		Shares		Per Share		Earnings		Shares		Per Share

EBSD
	Basic	$	337,883		75,183			$	217,042		69,118
	Diluted	$	390,848		91,506			$	244,848		78,673
Net Income (Loss)
	Basic	$	39,500		75,183	$	0.53	$	26,821		69,118	$	0.39
	Diluted	$	39,500		76,198	$	0.52	$	26,821		69,704	$	0.38
FFO




	Basic	$	386,864		75,183			$	293,553		69,118
	Diluted	$	439,830		91,506			$	321,359		78,673
AFFO
	Basic	$	346,497		75,183			$	264,838		69,118
	Diluted	$	399,463		91,506			$	292,644		78,673

(1)

Free Cash Flow, Earnings Before Structural Depreciation, Funds From Operations, and Adjusted Funds From Operations are measurement standards used by the Company’s management. These should not be considered alternatives to net income or net cash flow from operating activities, as determined in accordance with GAAP, as an indication of the Company’s performance or as a measure of liquidity.

	•		“Free Cash Flow” is defined by the Company as net operating income minus the capital spending required to maintain the related assets. It measures profitability prior to the cost of capital.
	•		“Earnings Before Structural Depreciation” (“EBSD”) is defined by the Company as Net Income, determined in accordance with GAAP, plus “structural depreciation”, i.e. depreciation of buildings and land improvements whose useful lives exceed 20 years.

F-30

	•		“Funds From Operations” (“FFO”) is defined by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) as net income (loss), computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains and losses from debt restructuring and sales of property, plus real estate related depreciation and amortization (excluding amortization of financing costs), and after adjustments for unconsolidated partnerships and joint ventures. The Company calculates FFO (diluted) based on the NAREIT definition, as further adjusted for minority interest in the AIMCO Operating Partnership, amortization of intangibles, the non-cash deferred portion of the income tax provision for unconsolidated subsidiaries and less the payment of dividends on perpetual and non-dilutive convertible preferred stock. There can be no assurance that the Company’s basis for computing FFO is comparable with that of other real estate investment trusts.

	•		“Adjusted Funds From Operations” (“AFFO”) is defined by the Company as FFO less a charge for capital replacements equal to at least $300 per apartment unit.

NOTE 23 — Portfolios Held for Sale

The Company is currently marketing for sale certain real estate properties in order to sell properties in the portfolio that are inconsistent with the Company’s long-term investment strategies (as determined by management from time to time). Approximately 10,349 units with an approximate carrying value of $325.3 million are included with real estate in the consolidated financial statements and approximately 17,755 units with an approximate carrying value of $80.1 million are included with investments in unconsolidated real estate partnerships in the consolidated financial statements. The Company does not expect to incur any material losses with respect to the sales of the properties.

NOTE 24 — Subsequent Events

Dividend Declared

On January 24, 2001, the Board of Directors declared a quarterly cash dividend of $0.78 per common share for the quarter ended December 31, 2000, paid on February 9, 2001, to stockholders of record on February 2, 2001. The increased dividend is equivalent to an annualized dividend rate of $3.12 per common share, an 11% increase from the previous annual dividend rate of $2.80.

OTEF Merger

On November 29, 2000, AIMCO and Oxford Tax Exempt Fund II Limited Partnership (“OTEF”) entered into a merger agreement pursuant to which OTEF would merge with a subsidiary of the AIMCO Operating Partnership. The merger closed on March 26, 2001. The AIMCO Operating Partnership owns all of the outstanding OTEF beneficial assignments of limited partnership interests (“BACs”) in OTEF. In connection with the Oxford acquisition, AIMCO acquired interests in OTEF’s managing general partner and OTEF’s associate general partner. After the merger, the Company’s partnership interests in OTEF reflects a 1% general partner interest held by OTEF’s managing general partner and a 99% limited partner interest held by the AIMCO Operating Partnership. OTEF was a publicly traded master limited partnership that invested primarily in tax-exempt bonds issued to finance high quality apartment and senior living/health care communities, the majority of which were owned by affiliates of OTEF, including Oxford entities.

In the merger, each BAC was converted into the right to receive 0.299 shares of AIMCO’s Class A Common Stock and 0.547 shares of AIMCO’s Class P Convertible Cumulative Preferred Stock (the “Class P Preferred Stock”). In addition, the BAC holders received a special distribution of $50 million, or $6.21 per BAC. The holders of the Class P Preferred Stock are entitled to receive, when and as declared by the Board of Directors, cash dividends in an amount per share equal to the greater of (i) a quarterly dividend payment of $0.5625 or (ii) the cash dividends declared on the number of shares of Class A Common Stock into which a share of Class P Preferred Stock is convertible. Each share of Class P Preferred Stock is convertible at the option of the holder into 0.4464 shares of Class A Common Stock. The initial conversion ratio was in excess of the fair market value of the common stock on the commitment date. The Class P Preferred Stock is senior to the Class A Common Stock as to dividends and liquidation. Upon liquidation, dissolution, or winding up of AIMCO, before payment or distribution by AIMCO shall be made to any holders of the Class A Common Stock, the holders of the Class P Preferred Stock are entitled to receive a liquidation preference of $25 per share, plus accumulated, accrued and unpaid dividends. The Company filed a Registration Statement on Form S-4 with the Securities and Exchange Commission that was declared effective on February 23, 2001.

F-31

Class Q Preferred Stock

On March 19, 2001, AIMCO issued 2,200,000 shares of newly created Class Q Cumulative Preferred Stock, par value $0.01 per share (the “Class Q Preferred Stock”) in a public offering. On March 29, 2001, the underwriters' exercised their option to purchase an additional 330,000 shares. The net proceeds of approximately $61 million were used to repay short term indebtedness. Dividends are cumulative from the date of original issue and are payable quarterly each year, when and as declared, beginning in June 2001. Cumulative dividends on the Class Q Preferred Stock will be in an amount per share equal to $2.525 per year, equivalent to 10.1% of the $25 liquidation preference. The Class Q Preferred Stock is senior to the Class A Common Stock as to dividends and liquidation. Upon any liquidation, dissolution or winding up of AIMCO, before payment or distributions by AIMCO shall be made to any holders of Class A Common Stock, the holders of the Class Q Preferred Stock shall be entitled to receive a liquidation preference of $25 per share, plus accumulated, accrued and unpaid dividends. Each share of Class Q Preferred Stock is redeemable beginning March 19, 2006, at the option of the Company, at a price equal to a liquidation preference of $25 per share, plus all accumulated accrued and unpaid dividends, if any to the date fixed for redemption.

F-32

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2000
(In Thousands Except Unit Data)


									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

100 Forest Place		Oct-97		OakPark, IL		1986		234		2,498		14,154		5,157
Alpine Village		Oct-98		Birmingham, AL		1972		160		826		3,182		281
Anchorage		Nov-96		League City, TX		1985		264		523		9,097		2,449
Apple Creek		Dec-97		Temple, TX		1984		176		623		4,177		180
Arbor Station		Apr-98		Montgomery, AL		1987		264		1,627		9,218		873
Arbor Station II		Apr-99		Montgomery, AL		1988		24		198		1,133		9
Arbors, The		Oct-97		Tempe, AZ		1971		200		1,092		6,189		645
Ashford Plantation		Dec-95		Atlanta, GA		1975		211		2,770		9,956		2,012
Aspen Hills		May-98		Austin, TX		1986		344		2,645		14,989		1,189
Aspen Point		Jul-99		Lakewood, CO		1970		120		240		7,391		516
Atriums Of Plantation		Aug-98		Plantation, FL		1980		210		1,807		9,756		894
Baldwin Oaks		May-97		Parsippany, NJ		1980		251		1,909		5,975		1,380
Barcelona		Oct-98		Houston, TX		1963		126		911		4,819		742
Bay Club		Apr-97		Aventura, FL		1990		702		10,672		60,830		4,721
Bayhead Village		Dec-00		Indianapolis, IN		1978		202		544		4,896		—
Baymeadows		Oct-98		Jacksonville, FL		1972		904		5,690		20,822		4,005
Baywood		Jan-93		Gretna, LA		1974		226		1,464		3,887		(195	)
Beacon Hill		Oct-97		Chamblee, GA		1978		120		928		5,261		529
Beau Jardin		Sep-99		West Lafayette, IN		1968		252		831		14,368		2,915
Beech Lake		May-99		Durham, NC		1986		345		2,284		13,011		432
Beech’s Farm		Dec-00		Columbia, MD		1983		135		607		5,465		—
Bent Oaks		May-98		Austin, TX		1979		146		1,117		6,328		273
Bercado Shores		Aug-00		Mishawaka, IN		1974		234		329		1,417		3,066
Blossomtree		Oct-97		Scottsdale, AZ		1970		125		535		3,029		502
Boardwalk		Dec-95		Tamarac, FL		1986		291		3,350		8,196		1,568
Boulder Creek (The Bluffs)		Sep-83		Boulder, CO		1971		232		696		7,779		13,561
Bradford Place		Dec-99		Suitland, MD		1968		214		1,176		6,666		1,017
Braesview		May-98		San Antonio, TX		1982		396		3,135		17,764		1,050
Brandywine		Apr-83		St. Petersburg, FL		1971		477		1,423		11,336		2,528
Brant Rock		Oct-97		Houston, TX		1984		84		337		1,908		374
Breckenridge Square		Dec-94		Louisville, KY		1971		294		2,058		8,450		403
Brentwood		Nov-96		Lake Jackson, TX		1980		104		200		3,092		567
Briar Bay Racquet Club		Dec-94		Miami, FL		1974		194		1,478		6,526		3,649
Briarcliffe		Dec-00		Lansing, MI		1974		308		900		8,104		—
Briarwest		Oct-98		Houston, TX		1970		380		2,600		14,448		3,016
Briarwood		Oct-98		Cedar Rapids, IA		1975		73		524		2,579		63
Briarwood		Oct-98		Houston, TX		1970		351		2,323		10,826		2,631
Bridgewater		Nov-96		Tomball, TX		1978		206		333		4,033		3,067
Brighton Crest		Dec-91		Marietta, GA		1987		320		2,686		7,998		447
Brittany Point		Oct-98		Hunstville, AL		1978		431		1,627		9,220		1,043
Broadmoor Apartments		May-98		Austin, TX		1985		200		1,370		7,765		1,063
Broadmoor Ridge		Dec-97		Colorado Springs, CO		1974		200		831		13,286		2,653
Brook Run		May-98		Arlington Heights, IL		1985		182		1,109		10,370		2,125
Brookdale Lakes		May-98		Naperville, IL		1990		200		2,709		15,350		529
Brookhollow		Dec-97		Kerrville, TX		1973		48		116		1,272		226
Brookside Village		Apr-96		Tustin, CA		1970		628		2,498		14,180		22,245
Brookview		Dec-97		Montgomery, AL		1975		64		95		1,474		(226	)
Brookwood Apts		Sep-99		Indianapolis, IN		1967		404		2,433		9,712		2,296

[Additional columns below]

[Continued from above table, first column(s) repeated]


	December 31, 2000

										Total Cost Net of
			Building and				Accumulated			Accumulated
Property Name	Land		Improvements		Total		Depreciation			Depreciation		Encumbrances

100 Forest Place		1,512		20,297		21,809		7,715			14,094		14,866
Alpine Village		661		3,628		4,290		327			3,962		2,100
Anchorage		371		11,698		12,069		3,660			8,409		4,584
Apple Creek		648		4,332		4,980		342			4,638		1,866
Arbor Station		1,627		10,091		11,718		968			10,750		7,200
Arbor Station II		198		1,142		1,339		131			1,209		772
Arbors, The		1,092		6,834		7,926		982			6,945		3,608
Ashford Plantation		2,770		11,968		14,738		2,521			12,216		6,894
Aspen Hills		2,645		16,177		18,823		2,491			16,331		9,325
Aspen Point		240		7,907		8,147		2,682			5,465		—
Atriums Of Plantation		1,807		10,650		12,457		1,100			11,357		7,477
Baldwin Oaks		639		8,625		9,264		1,008			8,256		7,700
Barcelona		1,323		5,150		6,473		1,157			5,316		2,346
Bay Club		10,685		65,538		76,223		8,935			67,288		49,000
Bayhead Village		816		4,624		5,440		—			5,440		3,911
Baymeadows		3,673		26,844		30,517		1,759			28,759		13,150
Baywood		866		4,290		5,156		1,893			3,263		4,329
Beacon Hill		929		5,789		6,718		808			5,910		3,374
Beau Jardin		1,256		16,858		18,114		5,623			12,491		9,843
Beech Lake		2,284		13,442		15,726		1,445			14,281		11,671
Beech’s Farm		911		5,161		6,072		—			6,072		4,011
Bent Oaks		1,117		6,601		7,718		1,037			6,681		4,190
Bercado Shores		—		4,812		4,812		(0	)		4,812		3,822
Blossomtree		535		3,532		4,066		500			3,566		1,978
Boardwalk		3,350		9,764		13,114		2,235			10,879		8,686
Boulder Creek (The Bluffs)		755		21,282		22,036		5,327			16,710		16,500
Bradford Place		1,143		7,716		8,859		248			8,611		5,159
Braesview		3,135		18,814		21,949		2,934			19,015		13,345
Brandywine		1,437		13,850		15,287		6,844			8,443		10,382
Brant Rock		337		2,283		2,619		339			2,281		1,144
Breckenridge Square		2,409		8,502		10,912		718			10,193		6,000
Brentwood		—		3,859		3,859		567			3,293		1,667
Briar Bay Racquet Club		2,324		9,329		11,653		3,752			7,902		3,500
Briarcliffe		1,351		7,654		9,005		—			9,005		6,701
Briarwest		4,098		15,966		20,064		3,210			16,854		6,758
Briarwood		505		2,661		3,166		188			2,978		1,536
Briarwood		3,333		12,446		15,779		2,980			12,799		4,854
Bridgewater		206		7,227		7,433		1,583			5,850		3,944
Brighton Crest		2,499		8,632		11,131		737			10,394		6,052
Brittany Point		—		11,890		11,890		0			11,890		8,896
Broadmoor Apartments		1,370		8,828		10,198		1,313			8,885		6,000
Broadmoor Ridge		831		15,939		16,769		2,481			14,288		8,900
Brook Run		1,683		11,922		13,605		3,594			10,011		11,800
Brookdale Lakes		2,709		15,878		18,587		2,413			16,174		12,945
Brookhollow		116		1,498		1,614		587			1,027		384
Brookside Village		7,263		31,661		38,923		5,870			33,053		25,804
Brookview		95		1,248		1,343		661			682		535
Brookwood Apts		2,739		11,702		14,441		—			14,441		10,016

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-33


									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

Buena Vista		Dec-97		Alva, OK		1974		51		49		1,196		270
Burgundy Court		Dec-91		Cincinnati, OH		1969		234		1,538		5,194		1,509
Burgundy Park		Oct-99		Forestville, MD		1967		108		589		3,339		399
Burkshire Commons		May-97		Burke, VA		1986		360		3,503		22,218		1,537
Calhoun Beach		Dec-98		Minneapolis, MN		1928/1998		351		11,567		65,546		4,520
Cambridge Heights		May-97		Natchez, MS		1979		94		249		1,413		1,018
Cambridge Manor		Dec-97		Fairfield, CT		1989		160		1,459		8,270		—
Cameron Hill I		Dec-00		Chattanooga, TN		1976		256		467		4,199		—
Cameron Hill II		Dec-00		Chattanooga, TN		1978		108		239		2,154		—
Canterbury Green		Dec-99		Fort Wayne, IN		1979		2,007		13,929		73,975		6,008
Cape Cod		May-98		San Antonio, TX		1985		244		1,582		8,946		334
Captiva Club (Bay West)		Dec-96		Tampa, FL		1975		357		1,500		7,085		9,205
Carriage Hill		Jan-93		East Lansing, MI		1972		143		1,213		4,883		2,167
Carriage House		Oct-98		Gastonia, NC		1970		102		544		2,266		73
Casa Anita		Mar-98		Phoenix, AZ		1986		224		1,125		6,404		468
Cedar Brooke Apts		Feb-95		Independence, MO		1981		158		1,030		2,151		1,616
Cedar Rim		Dec-94		New Castle, WA		1980		104		992		3,635		1,256
Cedarwood		Jan-93		Gretna, LA		1978		226		1,307		2,378		116
Center Square		May-97		Doylestown, PA		1975		352		670		4,749		772
Chambers Ridge		Oct-98		Harrisburg, PA		1973		324		1,596		7,801		963
Chambrel At Club Hill		Dec-00		Garland, TX		1987		260		2,328		13,191		—
Chambrel At Island Lake		Dec-00		Longwood, FL		1986		269		3,456		19,584		—
Chambrel At Montrose		Dec-00		Akron, OH		1987		168		1,773		10,046		—
Chambrel At Pinecastle		Dec-00		Ocala, FL		1986		161		1,484		8,411		—
Chambrel At Roswell		Dec-00		Roswell, GA		1986		280		5,022		28,456		—
Chambrel At Williamsburg		Dec-00		Williamsburg, VA		1986		256		3,741		21,200		—
Chapel Hill		Dec-91		Indianapolis, IN		1965		148		1,075		4,281		1,752
Chapel NDP		May-97		Baltimore, MD		1974		175		318		3,237		518
Chapelwood		Dec-91		Indianapolis, IN		1969		140		959		3,312		1,875
Chatham Harbor		Oct-99		Altamonte Springs, FL		1985		324		2,288		12,999		547
Chelsea Place		Dec-91		Murfreesboro, TN		1966		594		3,102		11,343		—
Chelsea Ridge		Dec-00		Wappingers Falls, NY		1966		835		6,159		34,911		815
Cherry Creek Garden		Jan-96		Englewood, CO		1975		296		3,291		14,784		709
Chesapeake		Dec-96		Houston, TX		1983		320		775		7,317		868
Chesapeake Landing (OH)		Dec-97		Dayton, OH		1986		256		2,890		26,011		52
Chestnut Hill		May-97		Middletown, CT		1985		314		2,936		17,452		787
Chestnut Hill Village		Oct-97		Philadelphia, PA		1963		834		10,511		31,284		9,291
Chimney Hill		Dec-94		Marietta, GA		1972		326		2,195		9,311		5,468
Churchill Park Apartments		May-98		San Antonio, TX		1979		392		1,788		10,131		2,223
Churchill Park		Dec-94		Louisville, KY		1970		384		2,674		9,705		422
Citadel		Dec-94		El Paso, TX		1973		261		1,234		5,308		3,578
Citadel Village		Dec-94		Colorado Springs, CO		1974		122		1,131		3,962		2,038
Citrus Grove		Jun-98		Redlands, CA		1985		198		1,118		6,333		389
Citrus Sunset		Mar-98		Vista, CA		1985		97		663		3,758		301
Civic Towers Apts		Apr-97		Miami, FL		1982		196		807		10,204		—
College Park (PA)		Jan-87		Carlisle, PA		1972		209		523		5,819		(661	)
Colonade Gardens/Ferntree		Oct-97		Phoenix, AZ		1973		196		765		4,337		499
Colonial Crest		Dec-99		Bloomington, IN		1965		208		938		4,488		1,348
Colony		Sep-98		Bradenton, FL		1986		166		1,121		6,350		469
Colony		Dec-97		Montgomery, AL		1974		176		—		—		3,812
Colony At Kenilworth		Oct-98		Towson, MD		1966		383		2,812		11,065		1,323
Colony House Apts		Oct-98		Murfreesboro, TN		1973		194		984		3,657		354
Cooper’s Pond		Jan-96		Tampa, FL		1978		463		2,054		8,402		532
Copper Chase		Dec-96		Katy, TX		1982		316		1,354		7,672		1,549
Copperfield I & II		Nov-96		Houston, TX		1983		196		702		7,003		1,155
Coral Cove		May-98		Tampa, FL		1985		200		727		4,119		3,620
Coral Gardens		Apr-93		Las Vegas, NV		1983		670		3,190		12,745		3,037
Country Club Villas		Jul-94		Amarillo, TX		1984		282		1,049		5,951		1,152

[Additional columns below]

[Continued from above table, first column(s) repeated]


	December 31, 2000

									Total Cost Net of
			Building and				Accumulated		Accumulated
Property Name	Land		Improvements		Total		Depreciation		Depreciation		Encumbrances

Buena Vista		49		1,466		1,515		557		957		317
Burgundy Court		1,247		6,995		8,241		1,712		6,529		6,578
Burgundy Park		630		3,696		4,326		34		4,293		3,382
Burkshire Commons		2,954		24,304		27,258		1,479		25,779		21,945
Calhoun Beach		11,263		70,370		81,633		4,709		76,924		51,419
Cambridge Heights		103		2,577		2,680		1,250		1,429		1,480
Cambridge Manor		1,459		8,270		9,729		—		9,729		9,867
Cameron Hill I		700		3,966		4,666		—		4,666		3,142
Cameron Hill II		359		2,035		2,394		—		2,394		2,144
Canterbury Green		14,785		79,127		93,912		2,787		91,124		51,682
Cape Cod		1,582		9,280		10,862		1,388		9,474		6,470
Captiva Club (Bay West)		1,600		16,190		17,790		2,117		15,673		8,753
Carriage Hill		753		7,511		8,263		1,942		6,321		5,235
Carriage House		332		2,551		2,884		205		2,679		1,819
Casa Anita		1,125		6,873		7,997		800		7,198		3,995
Cedar Brooke Apts		1,097		3,700		4,797		1,758		3,039		2,325
Cedar Rim		889		4,994		5,883		1,388		4,495		2,000
Cedarwood		903		2,898		3,801		345		3,456		1,930
Center Square		693		5,498		6,192		732		5,460		5,432
Chambers Ridge		1,291		9,068		10,360		801		9,559		5,307
Chambrel At Club Hill		2,328		13,191		15,519		149		15,370		14,625
Chambrel At Island Lake		3,456		19,584		23,040		317		22,723		19,647
Chambrel At Montrose		1,773		10,046		11,819		112		11,707		11,660
Chambrel At Pinecastle		1,484		8,411		9,896		96		9,799		8,654
Chambrel At Roswell		5,022		28,456		33,478		539		32,939		29,780
Chambrel At Williamsburg		3,741		21,200		24,941		240		24,701		22,782
Chapel Hill		977		6,131		7,109		1,962		5,147		3,320
Chapel NDP		347		3,725		4,072		340		3,733		3,174
Chapelwood		744		5,401		6,146		1,881		4,264		3,441
Chatham Harbor		2,288		13,546		15,834		539		15,295		9,629
Chelsea Place		2,167		12,278		14,445		145		14,301		12,079
Chelsea Ridge		733		41,151		41,884		—		41,884		36,250
Cherry Creek Garden		2,959		15,825		18,784		1,078		17,707		12,175
Chesapeake		775		8,185		8,960		1,391		7,568		7,006
Chesapeake Landing (OH)		3,666		25,287		28,953		308		28,645		23,201
Chestnut Hill		5,825		15,350		21,175		1,951		19,224		16,070
Chestnut Hill Village		7,879		43,207		51,086		9,304		41,782		25,588
Chimney Hill		2,698		14,275		16,974		5,518		11,456		5,400
Churchill Park Apartments		1,788		12,354		14,141		1,883		12,258		4,495
Churchill Park		2,298		10,503		12,801		893		11,908		6,450
Citadel		1,589		8,531		10,120		3,690		6,429		4,638
Citadel Village		1,185		5,945		7,130		2,116		5,014		2,450
Citrus Grove		1,118		6,722		7,840		735		7,105		4,930
Citrus Sunset		663		4,059		4,722		441		4,281		3,525
Civic Towers Apts		807		10,204		11,010		5,134		5,876		7,585
College Park (PA)		523		5,158		5,681		2,576		3,104		2,038
Colonade Gardens/Ferntree		766		4,836		5,601		671		4,930		2,672
Colonial Crest		959		5,815		6,774		648		6,126		1,653
Colony		1,121		6,820		7,940		693		7,248		3,219
Colony		218		3,594		3,812		1,832		1,980		1,465
Colony At Kenilworth		2,303		12,897		15,200		1,240		13,960		7,985
Colony House Apts		488		4,507		4,995		334		4,660		3,540
Cooper’s Pond		1,825		9,162		10,988		749		10,239		8,177
Copper Chase		1,757		8,818		10,575		1,473		9,102		5,016
Copperfield I & II		508		8,352		8,860		1,819		7,041		4,774
Coral Cove		1,381		7,085		8,466		1,583		6,882		3,888
Coral Gardens		3,190		15,782		18,972		5,471		13,502		12,308
Country Club Villas		1,049		7,103		8,152		1,982		6,169		5,387

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-34


									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

Country Club West		May-98		Greeley, CO		1986		288		2,848		16,138		788
Courtney Park		May-98		Fort Collins, CO		1986		248		2,726		15,450		524
Coventry Square		Nov-96		Houston, TX		1983		270		975		6,355		1,969
Creekside		Jan-96		Denver, CO		1974		328		2,607		8,319		453
Crossings At Bell		Jan-98		Amarillo, TX		1976		160		483		2,737		1,322
Crossings Of Bellevue		May-98		Nashville, TN		1985		300		2,588		14,667		1,271
Crossroads		May-98		Phoenix, AZ		1982		316		2,180		12,353		648
Crows Nest		Nov-96		League City, TX		1984		176		795		5,400		1,257
Cypress Landing		Dec-96		Savannah, GA		1984		200		915		5,188		722
Cypress Ridge		May-98		Houston, TX		1979		268		870		4,931		1,301
Debaliviere I		May-97		St. Louis, MO		1979		146		605		2,392		436
Deer Creek		Jan-93		Plainsboro, NJ		1975		288		2,948		8,480		4,373
Deercross (IN)		Dec-00		Indianapolis, IN		1979		372		1,166		10,494		—
Doral Springs		Dec-94		Miami, FL		1972		368		2,525		9,284		623
Douglaston Villas and Townhomes (Formerly Cameron Villas)		Aug-99		Altamonte Springs, FL		1979		234		1,721		9,835		902
Dunes		Dec-97		San Antonio, TX		1964		120		278		707		86
Dunwoody Park		Jul-94		Dunwoody, GA		1980		318		1,838		10,538		1,688
Eagle Rock Village		Dec-97		Wichita, KS		1985		352		2,467		12,394		2,702
Eagle’s Nest		May-98		San Antonio, TX		1973		226		1,053		5,966		392
Eaglewood/Woods		Jun-98		Memphis, TN		1983		584		750		16,544		4,901
Easton Village		Nov-96		Houston, TX		1983		146		440		6,584		3,750
Eden Crossing		Nov-94		Pensacola, FL		1985		200		1,111		6,332		1,089
Elm Creek		May-97		Elmhurst, IL		1986		372		5,339		30,253		13,610
Emerald Ridge		Feb-98		Tyler, TX		1984		484		1,469		8,324		1,160
Enfield		Oct-97		Dallas, TX		1986		286		1,400		2,970		2,725
Essex Park		Oct-98		Columbia, SC		1971		323		1,670		5,588		213
Evanston Place		May-97		Evanston, IL		1988		190		1,503		19,960		6,974
Evergreen Club		Oct-97		Jacksonville, FL		1987		240		1,395		4,749		1,130
Fairway		Dec-92		Plano, TX		1978		256		1,714		5,662		163
Fairway View I		Oct-98		Baton Rouge, LA		1972		242		1,562		6,168		274
Fairway View II		Oct-98		Baton Rouge, LA		1981		204		1,515		5,808		236
Fairways		Jul-94		Chandler, AZ		1986		352		1,830		10,403		7,782
Farmingdale		Dec-00		Darien, IL		1975		240		1,502		13,520		—
Ferntree		Oct-98		Phoenix, AZ		1970		219		1,243		12,818		526
Festival Field		Dec-97		Newport, RI		1973		204		430		6,999		(172	)
Fieldcrest		Oct-98		Jacksonville, FL		1982		240		1,331		7,544		711
Fisherman’s Landing		Sep-98		Temple Terrace, FL		1986		256		1,643		9,311		862
Fisherman’s Landing		Dec-97		Bradenton, FL		1984		200		1,275		7,225		860
Fisherman’s Wharf		Nov-96		Clute, TX		1981		360		830		9,969		2,014
Foothill Place		Dec-94		Salt Lake City, UT		1973		450		3,693		14,291		5,786
Foothills		Oct-97		Tucson, AZ		1982		270		1,203		6,817		473
Forest		Dec-97		Houston, TX		1978		192		384		2,347		202
Forest River		Oct-98		Gadsden, AL		1979		248		862		3,755		341
Forrester Gardens		Dec-97		Tuscaloosa, AL		1972		152		200		4,041		545
Fox Run		Oct-96		Plainsboro, NJ		1973		776		8,442		33,326		2,224
Foxchase		May-97		Alexandria, VA		1947		2,028		39,390		93,181		17,374
Foxfire		Oct-98		Doraville, GA		1971		266		1,663		8,063		412
Foxtree		Oct-97		Tempe, AZ		1976		487		2,505		14,194		1,928
Frankford Place		Jul-94		Carrollton, TX		1982		274		1,125		6,382		990
Franklin Oaks		May-98		Franklin, TN		1987		468		4,031		22,842		1,542
Freedom Place Club		Oct-97		Jacksonville, FL		1988		352		2,289		12,970		1,218
Gateway Gardens		Oct-98		Cedar Rapids, IA		1969		328		1,994		7,795		165
Georgetown		Oct-93		South Bend, IN		1973		200		1,480		6,502		3,310
Georgetown		Oct-98		Columbus, OH		1962		150		1,087		4,289		261
Glen Hollow		Dec-99		Charlotte, NC		1972		336		2,133		10,174		802
Glenbrook		Oct-97		St. Petersburg, FL		1985		196		1,290		4,674		1,043
Governor’s Park		Aug-86		Little Rock, AR		1985		154		1,075		2,869		1,196
Governor’s Park		Oct-93		Ft. Collins, CO		1982		188		1,752		6,336		254
Grand Flamingo		Sep-97		Miami Beach, FL		1960		1,277		8,736		49,774		110,303
Grande Pointe		Dec-99		Columbia, MD		1974		324		2,715		15,382		2,140
Greens Of Naperville		May-97		Naperville, IL		1986		400		3,756		21,284		11,839
Greenspoint		Jan-96		Phoenix, AZ		1985		336		2,851		10,130		352
Greentree		Oct-93		Mobile, AL		1973		178		846		2,514		1,991

[Additional columns below]

[Continued from above table, first column(s) repeated]


	December 31, 2000

									Total Cost Net of
			Building and				Accumulated		Accumulated
Property Name	Land		Improvements		Total		Depreciation		Depreciation		Encumbrances

Country Club West		2,848		16,926		19,774		2,738		17,036		11,050
Courtney Park		2,726		15,974		18,701		2,444		16,257		9,799
Coventry Square		681		8,618		9,299		3,263		6,036		4,962
Creekside		2,108		9,272		11,380		892		10,488		6,327
Crossings At Bell		483		4,059		4,542		623		3,919		2,328
Crossings Of Bellevue		2,588		15,938		18,527		2,577		15,950		8,100
Crossroads		2,180		13,001		15,181		2,060		13,121		6,683
Crows Nest		762		6,689		7,452		2,132		5,320		2,706
Cypress Landing		915		5,910		6,826		1,358		5,468		5,519
Cypress Ridge		870		6,232		7,102		978		6,124		4,250
Debaliviere I		286		3,146		3,433		215		3,218		2,465
Deer Creek		1,999		13,802		15,801		4,616		11,185		6,025
Deercross (IN)		1,749		9,911		11,660		—		11,660		8,866
Doral Springs		3,905		8,526		12,431		1,002		11,429		6,000
Douglaston Villas and Townhomes (Formerly Cameron Villas)		1,721		10,737		12,458		1,018		11,440		7,188
Dunes		128		943		1,071		142		929		733
Dunwoody Park		1,838		12,226		14,064		3,168		10,896		11,319
Eagle Rock Village		1,829		15,733		17,563		2,693		14,870		9,602
Eagle’s Nest		1,053		6,358		7,410		1,090		6,320		4,565
Eaglewood/Woods		830		21,365		22,195		8,227		13,967		9,856
Easton Village		448		10,326		10,774		2,337		8,437		3,995
Eden Crossing		1,111		7,421		8,532		1,859		6,673		5,406
Elm Creek		7,128		42,075		49,202		12,851		36,351		22,876
Emerald Ridge		1,469		9,484		10,953		1,236		9,718		5,994
Enfield		919		6,176		7,095		1,329		5,765		4,593
Essex Park		942		6,530		7,471		509		6,962		7,025
Evanston Place		1,507		26,930		28,438		6,374		22,063		18,008
Evergreen Club		1,434		5,841		7,275		1,206		6,069		5,285
Fairway		2,671		4,869		7,540		477		7,063		6,575
Fairway View I		1,394		6,610		8,004		530		7,474		4,000
Fairway View II		1,462		6,097		7,558		501		7,057		4,200
Fairways		1,830		18,185		20,015		3,965		16,050		10,023
Farmingdale		2,253		12,769		15,022		—		15,022		8,837
Ferntree		1,242		13,345		14,587		956		13,631		5,075
Festival Field		430		6,828		7,257		3,241		4,017		3,307
Fieldcrest		1,331		8,255		9,586		801		8,786		5,661
Fisherman’s Landing		1,643		10,173		11,816		1,041		10,775		5,409
Fisherman’s Landing		1,276		8,084		9,360		1,083		8,278		4,569
Fisherman’s Wharf		744		12,069		12,813		5,052		7,761		3,309
Foothill Place		5,779		17,991		23,770		6,041		17,730		10,100
Foothills		1,203		7,290		8,493		1,004		7,489		3,626
Forest		417		2,516		2,933		227		2,706		1,190
Forest River		638		4,320		4,958		281		4,677		3,212
Forrester Gardens		200		4,586		4,786		2,031		2,754		1,549
Fox Run		9,068		34,924		43,992		2,596		41,396		29,575
Foxchase		20,216		129,730		149,945		16,365		133,581		84,068
Foxfire		1,682		8,456		10,138		618		9,520		7,030
Foxtree		2,505		16,122		18,627		2,175		16,452		8,364
Frankford Place		1,125		7,372		8,497		2,092		6,405		5,874
Franklin Oaks		4,031		24,384		28,415		3,883		24,532		16,790
Freedom Place Club		2,289		14,188		16,477		1,920		14,557		6,557
Gateway Gardens		1,387		8,566		9,953		686		9,267		6,191
Georgetown		1,296		9,995		11,291		3,308		7,984		5,260
Georgetown		882		4,754		5,637		357		5,280		3,505
Glen Hollow		2,204		10,905		13,109		612		12,496		7,442
Glenbrook		1,383		5,625		7,007		1,151		5,857		4,983
Governor’s Park		486		4,654		5,140		1,386		3,754		3,780
Governor’s Park		1,307		7,035		8,342		527		7,815		4,468
Grand Flamingo		13,182		155,631		168,813		6,121		162,692		51,572
Grande Pointe		2,715		17,522		20,237		640		19,597		11,386
Greens Of Naperville		3,163		33,715		36,879		9,200		27,678		11,601
Greenspoint		2,896		10,438		13,334		877		12,456		8,541
Greentree		587		4,763		5,351		2,022		3,329		3,431

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-35


									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

Greentree		Dec-96		Carrollton, TX		1983		365		1,955		11,098		1,082
Hampton Hill		Nov-96		Houston, TX		1984		332		1,574		8,408		5,076
Harbor Cove		May-98		San Antonio, TX		1980		256		1,446		8,193		551
Harbor Town @ Jacaranda		Apr-99		Plantation, FL		1988		280		1,920		17,277		52
Hastings Place		Nov-96		Houston, TX		1984		176		734		3,382		1,986
Haverhill Commons		May-98		W. Palm Beach, FL		1986		222		1,656		9,386		1,478
Heather Ridge		May-98		Phoenix, AZ		1983		252		1,609		9,119		356
Heather Ridge		Dec-96		Arlington, TX		1983		180		614		3,478		438
Heritage Park Escondido		Dec-91		Escondidi, CA		1986		196		1,118		5,779		(126	)
Heritage Park Livermore		Dec-91		Livermore, CA		1988		167		1,324		5,682		(126	)
Heritage Village		Dec-97		Temple Terrace, FL		1967		252		713		10,678		9,773
Heritage Village Anaheim		Dec-91		Anaheim, CA		1986		196		1,488		6,180		(126	)
Hibben Ferry I		Jul-84		MT. Pleasant, SC		1983		240		2,022		6,236		2,373
Hickory Ridge		Jan-85		Memphis, TN		1970		378		2,677		8,861		707
Hidden Cove (Formerly Lake Villa)		Dec-94		Belleville, MI		1976		120		810		3,503		1,480
Hidden Lake Apts		May-98		Tampa, FL		1983		267		1,361		7,715		484
Hiddentree		Oct-97		East Lansing, MI		1966		261		1,470		8,330		1,393
Highland Park		Dec-96		Fort Worth, TX		1985		500		1,823		10,330		5,664
Hillmeade		Nov-94		Nashville, TN		1985		288		2,872		16,066		3,549
Hollymead Square		Dec-97		Charlottesville, VA		1978		100		497		2,880		479
Hunt Club		Dec-00		Indianapolis, IN		1972		200		686		3,531		422
Hunt Club (MD)		Dec-97		Gaithersburg, MD		1986		336		2,913		26,218		284
Hunt Club (PA)		Dec-97		North Wales, PA		1986		320		3,728		33,555		157
Hunt Club I		Dec-00		Ypsilanti, MI		1988		296		1,014		9,128		99
Hunt Gardens		Dec-97		Baytown, TX		1984		100		422		2,378		81
Hunters Creek		May-99		Cincinnati, OH		1981		146		661		3,832		523
Hunters Crossing		Oct-99		Leesburg, VA		1967		164		1,425		8,076		384
Hunters Glen		Apr-98		Austell, GA		1983		72		301		1,704		186
Hunters Glen IV		Oct-98		Plainsboro, NJ		1976		264		2,617		9,217		775
Hunters Glen V		Oct-98		Plainsboro, NJ		1977		304		3,160		10,695		929
Hunters Glen VI		Oct-98		Plainsboro, NJ		1977		328		3,285		11,088		993
Huntington Athletic Club		Oct-98		Morrisville, NC		1986		212		1,916		8,302		665
Huntington Park (Formerly Marbella Club)		Jul-99		Miami, FL		1988		504		2,815		16,193		1,023
Huntington Pointe (Formerly Bella Vista)		Jul-99		Miami, FL		1986		352		2,560		14,660		683
Indian Creek Village		Oct-98		Overland Park, KS		1972		273		2,121		7,976		1,292
Island Club (Beville)		Dec-00		Daytona Beach, FL		1986		206		1,220		10,980		—
Island Club (CA)		Dec-00		Oceanside, CA		1986		603		4,920		44,281		—
Island Club (MD)		Dec-00		Columbia, MD		1986		176		6		50		—
Island Club (Palm Aire)		Dec-00		Pomano Beach, FL		1988		262		1,800		16,204		—
Islandtree		Oct-97		Savannah, GA		1985		216		1,267		7,181		858
Jefferson Place		Nov-94		Baton Rouge, LA		1985		234		2,696		15,115		1,707
Key Towers		Oct-99		Alexandria, VA		1964		142		1,218		6,902		408
Kingstown Gardens		Dec-97		Norfolk, VA		1968		64		57		506		94
Knollwood		Dec-94		Nashville, TN		1972		326		2,367		3,715		5,451
La Colina Ranch		Oct-98		Denton, TX		1984		264		1,613		5,123		206
La Jolla De Tucson Apts		May-98		Tucson, AZ		1978		223		1,342		7,603		710
La Jolla San Antonio		May-98		San Antonio, TX		1975		300		2,071		11,733		489
Lake Castleton Arms		Oct-98		Indianapolis, IN		1997		1,265		5,188		33,504		3,889
Lake Forest		Dec-97		Erie, PA		1973		204		278		5,135		(405	)
Lake Forest Apts		Feb-95		Omaha, NE		1971		312		2,229		6,664		3,827
Lake Johnson Mews		Oct-98		Raleigh, NC		1972		201		1,761		5,597		252
Lakehaven I		May-97		Carol Stream, IL		1984		144		701		3,974		69
Lakehaven II		May-97		Carol Stream, IL		1985		348		1,673		9,482		1,022
Lakeland East		May-97		Jackson, MS		1984		144		464		3,199		258
Lakeside		Oct-98		Lisle, IL		1972		568		5,126		20,922		2,217
Lakeside North @ Carrollwood		Apr-99		Tampa, FL		1984		168		760		6,839		41
Lakeside Place		Oct-98		Houston, TX		1976		734		6,663		22,988		951
Lamplighter Park		Dec-94		Bellevue, WA		1967		174		1,781		6,525		1,620
Landings, The		Oct-98		Tampa, FL		1978		200		818		3,190		399

[Additional columns below]

[Continued from above table, first column(s) repeated]


	December 31, 2000

									Total Cost Net of
			Building and				Accumulated		Accumulated
Property Name	Land		Improvements		Total		Depreciation		Depreciation		Encumbrances

Greentree		1,955		12,180		14,135		2,348		11,787		6,963
Hampton Hill		2,195		12,863		15,058		4,968		10,090		6,314
Harbor Cove		1,446		8,743		10,190		1,370		8,820		5,605
Harbor Town @ Jacaranda		2,982		16,267		19,249		206		19,043		19,304
Hastings Place		709		5,393		6,102		1,480		4,622		4,444
Haverhill Commons		1,656		10,864		12,520		1,670		10,850		9,100
Heather Ridge		1,609		9,474		11,084		1,474		9,609		5,695
Heather Ridge		614		3,916		4,530		772		3,758		3,775
Heritage Park Escondido		1,016		5,756		6,772		49		6,722		6,116
Heritage Park Livermore		1,032		5,849		6,881		58		6,823		6,170
Heritage Village		713		20,452		21,165		5,082		16,083		4,966
Heritage Village Anaheim		1,131		6,410		7,542		66		7,476		6,792
Hibben Ferry I		1,225		9,406		10,631		2,690		7,941		6,033
Hickory Ridge		1,807		10,438		12,245		825		11,420		6,083
Hidden Cove (Formerly Lake Villa)		380		5,413		5,792		1,599		4,194		2,200
Hidden Lake Apts		1,361		8,198		9,560		1,303		8,257		5,212
Hiddentree		1,470		9,723		11,193		1,416		9,778		4,103
Highland Park		6,296		11,522		17,817		2,493		15,325		8,770
Hillmeade		2,872		19,615		22,487		4,758		17,729		10,729
Hollymead Square		484		3,373		3,856		599		3,258		3,323
Hunt Club		859		3,780		4,639		349		4,290		3,880
Hunt Club (MD)		5,928		23,487		29,415		312		29,103		18,771
Hunt Club (PA)		6,367		31,073		37,440		286		37,154		21,500
Hunt Club I		1,536		8,705		10,241		—		10,241		8,602
Hunt Gardens		457		2,424		2,881		197		2,684		1,362
Hunters Creek		661		4,354		5,016		463		4,552		2,656
Hunters Crossing		1,464		8,422		9,886		80		9,806		4,640
Hunters Glen		301		1,890		2,191		213		1,978		1,010
Hunters Glen IV		2,735		9,874		12,609		851		11,758		7,983
Hunters Glen V		3,200		11,584		14,784		951		13,833		8,668
Hunters Glen VI		3,381		11,986		15,367		1,056		14,310		9,021
Huntington Athletic Club		1,867		9,015		10,883		583		10,300		7,297
Huntington Park (Formerly Marbella Club)		2,815		17,216		20,031		1,546		18,485		13,567
Huntington Pointe (Formerly Bella Vista)		2,560		15,343		17,903		1,384		16,519		12,765
Indian Creek Village		3,262		8,128		11,390		696		10,694		8,735
Island Club (Beville)		1,830		10,370		12,200		—		12,200		11,270
Island Club (CA)		7,380		41,821		49,201		—		49,201		43,240
Island Club (MD)		8		48		56		—		56		—
Island Club (Palm Aire)		2,701		15,303		18,004		—		18,004		17,270
Islandtree		1,267		8,039		9,306		1,117		8,189		3,961
Jefferson Place		2,697		16,821		19,518		4,163		15,354		9,162
Key Towers		1,257		7,271		8,528		69		8,459		5,654
Kingstown Gardens		135		523		657		80		577		65
Knollwood		1,504		10,028		11,533		5,535		5,998		6,780
La Colina Ranch		1,373		5,568		6,942		3,900		3,042		4,981
La Jolla De Tucson Apts		1,342		8,313		9,655		1,317		8,339		5,711
La Jolla San Antonio		2,071		12,222		14,293		1,910		12,383		8,425
Lake Castleton Arms		5,128		37,452		42,580		1,738		40,842		28,405
Lake Forest		278		4,730		5,008		2,363		2,645		2,093
Lake Forest Apts		2,191		10,528		12,719		4,087		8,632		4,700
Lake Johnson Mews		944		6,666		7,610		529		7,081		4,350
Lakehaven I		683		4,061		4,744		1,106		3,638		5,242
Lakehaven II		1,643		10,533		12,177		2,786		9,391		13,346
Lakeland East		494		3,428		3,921		570		3,351		3,373
Lakeside		5,283		22,983		28,266		1,648		26,618		17,200
Lakeside North @ Carrollwood		1,073		6,567		7,640		82		7,558		7,670
Lakeside Place		5,920		24,683		30,602		1,966		28,636		23,343
Lamplighter Park		2,781		7,145		9,926		1,872		8,054		3,500
Landings, The		656		3,751		4,407		319		4,088		2,186

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-36


									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

Landmark		May-98		Albuquerque, NM		1965		101		780		4,455		1,122
Landmark		Jan-93		Raleigh, NC		1970		292		2,505		8,233		5,108
Las Brisas (AZ)		Jul-94		Casa Grande, AZ		1985		132		573		3,260		393
Las Brisas (TX)		Dec-95		San Antonio, TX		1983		176		1,100		5,454		643
Lasalle		Dec-97		San Francisco, CA		1976		145		1,098		2,880		(16	)
Lebanon Station		Oct-98		Columbus, OH		1974		387		1,918		9,089		204
Legend Oaks/The Woodlands		May-98		Tampa, FL		1983		416		2,304		13,058		788
Leona		Dec-97		Uvalde, TX		1973		40		86		986		531
Lexington		Jul-94		San Antonio, TX		1981		72		311		1,764		332
Lighthouse At Twin Lakes I		Oct-97		Beltsville, MD		1969		480		3,627		13,240		5,855
Lighthouse At Twin Lakes II		Oct-97		Beltsville, MD		1971		113		1,039		2,292		1,376
Lighthouse At Twin Lakes III		Oct-97		Beltsville, MD		1978		107		760		3,231		1,163
Lodge, The		Jan-96		Denver, CO		1973		376		2,848		9,105		439
Los Arboles		Sep-97		Chandler, AZ		1985		232		1,662		9,418		966
Madera Point		May-98		Phoenix, AZ		1986		256		2,103		11,916		1,178
Magnolia Square (Trace)		Oct-98		Baton Rouge, LA		1973		246		1,191		4,249		1,230
Maple Bay		Dec-99		Virginia Beach, VA		1971		414		2,598		14,719		2,075
Marrill House		Jan-00		Fairfax, VA		1962		159		1,836		10,405		596
Mayfair Village		Sep-99		West Lafayette, IN		1964		72		250		3,317		386
McMillian Place		Jan-96		Dallas, TX		1986		402		2,507		12,409		446
Meadow Creek		Apr-85		Boulder, CO		1972		332		1,387		10,027		9,321
Meadows		Dec-96		Austin, TX		1983		100		579		3,283		381
Mesa Ridge		May-98		San Antonio, TX		1986		200		1,209		6,852		322
Michigan Meadows		Dec-99		Indianapolis, IN		1965		253		582		3,539		(51	)
Michigan Plaza — Commercial		Dec-99		Indianapolis, IN		1965		—		27		346		—
Millhopper Village		Oct-98		Gainesville, FL		1969		136		1,061		3,176		197
Misty Woods		Jan-96		Charlotte, NC		1986		228		1,448		5,921		289
Montecito		Jul-94		Austin, TX		1985		268		1,268		7,194		2,244
Mountain Run		Jul-99		Arvada, CO		1974		96		288		5,935		276
Mountainview		May-98		Colorado Springs, CO		1985		252		2,536		14,371		558
Newberry Park		May-97		Chicago, IL		1985		84		181		1,027		1,910
Newport		Jul-94		Avondale, AZ		1986		204		800		4,554		835
Nob Hill Villa		Dec-94		Nashville, TN		1971		472		2,417		10,087		6,371
North River Village		Oct-98		Atlanta, GA		1970		133		1,027		3,660		295
Northlake Village (Lima)		Dec-00		Lima, OH		1971		150		186		1,673		—
Northpoint		Dec-97		Chicago, IL		1921		304		2,139		12,370		457
Northview Harbor		Dec-99		Grand Rapids, MI		1982		360		2,016		10,696		751
Northwoods Apartments		Oct-98		Pensacola, FL		1979		320		1,869		6,544		539
Nottingham Square		Oct-98		Urbandale, IA		1974		442		1,890		7,820		138
Oak Falls		Nov-96		Spring, TX		1983		144		514		3,585		2,081
Oak Park Village I		Dec-00		Lansing, MI		1973		410		1,137		10,237		—
Oak Park Village II		Dec-00		Lansing, MI		1973		208		695		6,251		—
Oakbrook (MI)		Dec-99		Battle Creek, MI		1981		586		3,512		16,501		1,175
Oakwood Village On Lake Nan		Oct-98		Winter Park, FL		1973		278		1,581		5,673		355
Ocean Oaks Apartments		May-98		Port Orange, FL		1988		296		2,132		12,083		1,460
Old Farm		Dec-98		Lexington, KY		1985		330		1,893		10,725		724
Old Orchard		Dec-99		Grand Rapids, MI		1974		664		3,217		14,077		893
Old Salem		Oct-98		Charlottesville, VA		1967		364		2,820		12,940		608
Olde Towne West III		Dec-97		Alexandria, VA		1978		75		645		4,958		881
Olmos Club		Oct-97		San Antonio, TX		1983		134		322		1,825		233
Olympiad		Nov-94		Montgomery, AL		1986		176		1,046		5,958		871
One Lytle Place		Dec-97		Cincinnati, OH		1980		231		3,246		17,485		1,047
Orchidtree		Oct-97		Scottsdale, AZ		1971		278		2,314		13,112		1,022
Palencia		May-98		Tampa, FL		1985		420		2,804		15,887		5,576
Palm Lake (Village Square)		Oct-98		Tampa, FL		1972		150		954		6,266		1,407
Panorama Terrace		Oct-98		Birmingham, AL		1975		227		1,500		4,662		703
Paradise Palms		Jul-94		Phoenix, AZ		1970		130		647		3,684		716

[Additional columns below]

[Continued from above table, first column(s) repeated]


	December 31, 2000

									Total Cost Net of
			Building and				Accumulated		Accumulated
Property Name	Land		Improvements		Total		Depreciation		Depreciation		Encumbrances

Landmark		780		5,577		6,357		586		5,771		2,339
Landmark		2,008		13,838		15,846		5,487		10,359		6,312
Las Brisas (AZ)		573		3,653		4,226		942		3,283		—
Las Brisas (TX)		1,100		6,097		7,197		1,368		5,829		4,430
Lasalle		594		3,367		3,961		—		3,961		3,970
Lebanon Station		1,807		9,403		11,211		680		10,531		6,658
Legend Oaks/The Woodlands		2,304		13,846		16,150		2,216		13,934		7,583
Leona		86		1,517		1,603		451		1,152		349
Lexington		312		2,095		2,407		511		1,896		973
Lighthouse At Twin Lakes I		2,994		19,728		22,722		6,264		16,457		12,313
Lighthouse At Twin Lakes II		625		4,081		4,706		1,478		3,228		2,855
Lighthouse At Twin Lakes III		735		4,419		5,154		1,282		3,872		3,481
Lodge, The		2,380		10,013		12,393		935		11,458		7,009
Los Arboles		1,662		10,384		12,046		1,421		10,625		6,957
Madera Point		2,103		13,094		15,197		2,026		13,171		8,067
Magnolia Square (Trace)		2,038		4,633		6,670		462		6,209		—
Maple Bay		2,598		16,794		19,392		588		18,803		9,972
Marrill House		1,836		11,001		12,837		346		12,491		6,893
Mayfair Village		276		3,676		3,952		1,549		2,403		2,497
McMillian Place		3,444		11,918		15,363		772		14,591		12,590
Meadow Creek		1,435		19,300		20,735		5,114		15,621		7,235
Meadows		579		3,664		4,243		656		3,587		2,875
Mesa Ridge		1,209		7,174		8,383		1,123		7,261		4,855
Michigan Meadows		807		3,262		4,070		313		3,757		1,557
Michigan Plaza — Commercial		27		346		373		198		175		—
Millhopper Village		543		3,891		4,434		337		4,097		2,700
Misty Woods		910		6,747		7,657		484		7,173		5,181
Montecito		1,268		9,438		10,706		2,533		8,173		5,967
Mountain Run		288		6,211		6,499		2,104		4,394		3,388
Mountainview		2,544		14,921		17,465		2,278		15,186		8,860
Newberry Park		156		2,962		3,118		930		2,188		8,377
Newport		800		5,389		6,189		1,505		4,684		4,730
Nob Hill Villa		2,863		16,011		18,874		6,356		12,518		6,925
North River Village		697		4,284		4,982		345		4,637		1,630
Northlake Village (Lima)		279		1,580		1,859		—		1,859		2,255
Northpoint		2,405		12,560		14,965		859		14,106		14,168
Northview Harbor		2,024		11,439		13,463		878		12,585		7,766
Northwoods Apartments		1,123		7,830		8,953		599		8,354		5,000
Nottingham Square		1,562		8,286		9,847		801		9,047		7,122
Oak Falls		508		5,672		6,180		1,519		4,661		4,844
Oak Park Village I		1,706		9,669		11,375		—		11,375		4,869
Oak Park Village II		1,042		5,904		6,946		—		6,946		3,281
Oakbrook (MI)		3,347		17,842		21,188		672		20,516		8,432
Oakwood Village On Lake Nan		1,303		6,306		7,610		574		7,035		3,834
Ocean Oaks Apartments		2,132		13,544		15,676		2,091		13,585		10,295
Old Farm		1,893		11,449		13,342		1,105		12,237		9,726
Old Orchard		3,232		14,954		18,186		662		17,524		10,418
Old Salem		1,952		14,416		16,369		978		15,391		9,943
Olde Towne West III		595		5,889		6,484		913		5,570		4,096
Olmos Club		322		2,058		2,380		294		2,086		1,174
Olympiad		1,046		6,830		7,875		1,725		6,150		4,817
One Lytle Place		2,033		19,745		21,778		1,312		20,466		12,530
Orchidtree		2,314		14,134		16,448		1,929		14,519		6,833
Palencia		2,804		21,462		24,266		3,206		21,060		13,047
Palm Lake (Village Square)		1,651		6,975		8,626		350		8,276		2,990
Panorama Terrace		1,109		5,756		6,865		539		6,326		3,681
Paradise Palms		647		4,401		5,047		1,152		3,896		4,190

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-37

									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

Park @ Cedar Lawn		Nov-96		Galveston, TX		1985		192		769		5,073		2,919
Park Avenue Towers (PA)		Dec-97		Wilkes-Barre, PA		1978		130		613		1,735		(12	)
Park Capitol		Dec-94		Salt Lake City, UT		1972		135		1,219		3,455		1,025
Park Colony		May-98		Norcross, GA		1984		352		3,257		18,454		1,281
Park Towne		Oct-97		Philadelphia, PA		1959		980		11,592		27,573		19,763
Park Village		Dec-97		Hialeah, FL		1972		396		607		10,322		603
Parker House		Sep-00		Hyattsville, MD		1965		296		2,659		15,073		220
Parktown Townhouses		Oct-98		Deer Park, TX		1968		309		2,239		7,172		248
Parkway		Dec-97		Williamsburg, VA		1971		148		1,641		2,084		336
Parliament Bend		Jul-94		San Antonio, TX		1980		232		765		4,342		1,206
Patchen Place		Oct-98		Lexington, KY		1974		202		966		3,766		340
Peachtree Park		Jan-96		Atlanta, GA		1962/1995		295		4,681		12,957		2,412
Pembroke Court		Dec-97		Virginia Beach, VA		1974		458		1,897		12,199		4,871
Pendleton Riverside Apts		Apr-99		Pendleton, OR		1977		40		72		992		(437	)
Penn Square		Dec-94		Albuquerque, NM		1982		210		1,128		6,478		880
Peppermill Place		Nov-96		Houston, TX		1983		224		406		3,957		2,489
Pickwick Place		Oct-98		Indianapolis, IN		1973		336		1,082		7,418		1,293
Pine Creek (MI)		Oct-97		Clio, MI		1978		233		852		4,830		616
Pine Creek (TX)		Dec-97		Houston, TX		1979		300		668		3,892		227
Pine Shadows		May-98		Phoenix, AZ		1983		272		2,093		11,858		573
Pinebrook		Oct-98		Jacksonville, FL		1974		208		856		4,854		478
Pinebrook		Jan-93		Ridgeland, MS		1979		160		743		2,073		770
Pines Of Roanoke		Oct-98		Roanoke, VA		1978		216		1,218		4,998		260
Pinetree		Oct-98		Charlotte, NC		1972		220		1,427		6,843		372
Place Du Plantier		Oct-98		Baton Rouge, LA		1972		268		1,783		5,974		253
Plantation Crossing		Jan-96		Marietta, GA		1979		180		1,537		6,118		276
Plantation Gardens		Oct-98		Plantation, FL		1971		372		2,347		9,661		1,666
Pleasant Ridge		Nov-94		Little Rock, AR		1982		200		1,660		9,464		1,171
Pleasant Valley Point		Nov-94		Little Rock, AR		1985		112		907		5,069		1,003
Point West		Dec-94		Charleston, SC		1973		120		629		4,487		1,298
Point West		May-97		Lenexa, KS		1985		172		979		5,548		1,802
Pointe James		Oct-98		Charleston, SC		1977		128		956		1,181		76
Polo Park		Oct-97		Midland, TX		1983		184		800		4,532		853
Post Ridge		Feb-95		Nashville, TN		1972		150		1,249		5,782		2,302
Prairie Hills		Jul-94		Albuquerque, NM		1985		260		1,680		9,633		1,384
Preston Creek		Oct-98		Dallas, TX		1979		228		1,919		8,259		341
Pride Gardens		May-97		Flora, MS		1975		76		265		1,502		2,337
Privado Park		May-98		Phoenix, AZ		1984		352		2,636		14,937		553
Quail Hollow		Oct-98		West Columbia, SC		1973		215		1,350		4,505		573
Quail Ridge		May-98		Tucson, AZ		1974		253		1,613		9,143		623
Quail Run		Oct-98		Columbia, SC		1970		332		2,040		8,412		277
Quail Run		Oct-98		Zionsville, IN		1972		166		1,398		4,815		147
Quail Woods		Oct-98		Gastonia, NC		1974		188		1,112		1,892		87
Raintree		Oct-98		Pensacola, FL		1971		168		192		1,091		1,720
Raintree		Oct-98		Anderson, SC		1972		176		796		2,752		177
Ramblewood		Dec-97		Norfolk, VA		1978		300		969		5,646		1,258
Ramblewood (MI)		Dec-99		Grand Rapids, MI		1973		1,630		9,742		59,378		4,061
Rancho Arms		Jun-97		Rancho Cordova, CA		1973		95		386		2,322		18
Rancho Sunset		Mar-98		Escondido, CA		1985		334		3,103		16,755		1,755
Randol Crossing		Dec-96		Fort Worth, TX		1984		160		728		4,125		711
Reflections (Tampa)		Dec-00		Tampa, FL		1988		350		1,997		17,975		(65	)
Reflections (Virginia Beach)		Dec-00		Virginia Beach, VA		1987		480		2,827		25,445		135
Reflections (West Palm Beach)		Dec-00		West Palm Beach, FL		1986		303		1,342		12,081		—
Regency Oaks		Oct-98		Fern Park, FL		1965		343		1,630		3,348		2,376
Ridgecrest		Dec-96		Denton, TX		1983		152		393		2,228		507
Rio Cancion		Oct-98		Tucson, AZ		1983		379		2,832		16,090		821
River Loft Apartments		May-97		Philadelphia, PA		1910		197		1,687		10,911		3,738
River Reach		Jun-99		Naples, FL		1986		556		3,541		31,867		25

[Additional columns below]

[Continued from above table, first column(s) repeated]

	December 31, 2000

										Total Cost Net of
			Building and				Accumulated			Accumulated
Property Name	Land		Improvements		Total		Depreciation			Depreciation		Encumbrances

Park @ Cedar Lawn		695		8,067		8,761		1,878			6,883		5,038
Park Avenue Towers (PA)		350		1,986		2,336		—			2,336		2,291
Park Capitol		735		4,963		5,698		1,135			4,563		2,725
Park Colony		3,257		19,735		22,992		3,074			19,918		10,788
Park Towne		3,817		55,110		58,927		18,488			40,439		37,289
Park Village		1,670		9,861		11,532		1,203			10,328		10,710
Parker House		2,665		15,287		17,952		146			17,805		7,815
Parktown Townhouses		2,156		7,503		9,659		651			9,008		7,800
Parkway		635		3,426		4,061		434			3,627		3,041
Parliament Bend		765		5,548		6,313		1,431			4,882		—
Patchen Place		977		4,095		5,072		427			4,646		3,000
Peachtree Park		4,683		15,366		20,050		3,214			16,836		13,798
Pembroke Court		3,584		15,383		18,967		1,540			17,427		10,695
Pendleton Riverside Apts		72		555		627		435			193		317
Penn Square		1,128		7,358		8,486		1,796			6,690		4,109
Peppermill Place		344		6,508		6,852		1,528			5,324		4,698
Pickwick Place		1,286		8,507		9,793		537			9,256		6,227
Pine Creek (MI)		852		5,445		6,298		642			5,656		2,225
Pine Creek (TX)		672		4,115		4,788		375			4,412		2,411
Pine Shadows		2,093		12,430		14,523		1,948			12,575		7,500
Pinebrook		857		5,331		6,188		508			5,679		3,559
Pinebrook		516		3,070		3,586		775			2,811		2,444
Pines Of Roanoke		1,053		5,422		6,475		439			6,037		4,143
Pinetree		1,480		7,162		8,642		472			8,170		4,880
Place Du Plantier		1,461		6,549		8,010		662			7,348		3,800
Plantation Crossing		1,467		6,464		7,931		502			7,429		4,825
Plantation Gardens		4,412		9,262		13,674		882			12,792		9,683
Pleasant Ridge		1,661		10,635		12,295		2,714			9,581		6,700
Pleasant Valley Point		907		6,073		6,979		1,578			5,402		3,682
Point West		1,010		5,404		6,414		1,377			5,038		2,407
Point West		1,175		7,153		8,329		2,711			5,617		5,425
Pointe James		283		1,930		2,213		305			1,909		1,199
Polo Park		800		5,386		6,185		771			5,415		2,145
Post Ridge		1,359		7,973		9,332		2,397			6,935		4,050
Prairie Hills		2,011		10,685		12,697		2,747			9,950		6,680
Preston Creek		2,902		7,617		10,519		556			9,963		4,500
Pride Gardens		178		3,926		4,104		1,581			2,523		840
Privado Park		2,636		15,491		18,127		2,397			15,730		8,750
Quail Hollow		1,099		5,329		6,428		405			6,024		2,850
Quail Ridge		1,613		9,766		11,380		1,562			9,817		6,085
Quail Run		1,475		9,255		10,729		639			10,091		5,295
Quail Run		1,024		5,336		6,360		613			5,747		4,272
Quail Woods		283		2,808		3,091		358			2,733		2,407
Raintree		—		3,003		3,003		(0	)		3,003		2,585
Raintree		518		3,207		3,725		267			3,458		3,055
Ramblewood		581		7,293		7,873		1,107			6,766		4,787
Ramblewood (MI)		9,707		63,475		73,182		2,675			70,506		38,306
Rancho Arms		386		2,340		2,726		1,096			1,631		836
Rancho Sunset		3,103		18,510		21,613		1,955			19,658		13,522
Randol Crossing		728		4,836		5,564		901			4,663		3,421
Reflections (Tampa)		3,625		16,282		19,907		0			19,907		20,235
Reflections (Virginia Beach)		5,234		23,173		28,407		282			28,125		23,369
Reflections (West Palm Beach)		2,013		11,410		13,423		—			13,423		9,035
Regency Oaks		1,100		6,254		7,354		778			6,576		7,623
Ridgecrest		393		2,735		3,128		666			2,462		4,398
Rio Cancion		2,832		16,911		19,743		2,053			17,689		12,706
River Loft Apartments		1,132		15,204		16,336		1,835			14,501		6,391
River Reach		6,064		29,369		35,433		486			34,946		36,043

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-38

									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

River Reach		Oct-98		Jacksonville, FL		1972		298		2,432		8,537		504
Rivercrest		Oct-98		Atlanta, GA		1970		312		3,077		11,101		480
Rivers Edge		Dec-94		Auburn, WA		1976		120		825		5,118		1,569
Riverside		Jul-94		Littleton, CO		1987		248		1,553		8,828		1,463
Riverside		Dec-80		Augusta, GA		1980		224		1,485		4,639		1,951
Riverside Park		Oct-97		Alexandria, VA		1973		1,222		11,845		50,174		18,030
Riverwalk		Dec-95		Little Rock, AR		1988		262		1,075		9,295		946
Riverwood (IN)		Dec-00		Indianapolis, IN		1978		120		395		3,552		—
Rocky Creek		Oct-98		Augusta, GA		1979		120		686		2,692		73
Rocky Ridge		Oct-98		Birmingham, AL		1973		116		617		2,290		315
Rolling Meadows		Dec-97		Ada, OK		1970		60		60		1,432		(327	)
Rosecroft Mews		Oct-99		Ft. Washington, MD		1966		303		2,043		11,597		129
Rosemont Crossing (The Greens)		Oct-98		San Antonio, TX		1974		217		743		3,802		192
Royal Gardens		Oct-98		Hemet, CA		1987		137		521		2,817		543
Royal Palms		Jul-94		Mesa, AZ		1985		152		832		4,730		422
Runaway Bay (CA)		Dec-00		Antioch, CA		1986		283		1,740		15,659		—
Runaway Bay (FL)		Dec-00		Lantana, FL		1987		407		1,678		15,102		—
Runaway Bay (MI)		Dec-00		Lansing, MI		1987		288		981		8,829		—
Runaway Bay (NC)		Dec-00		Charlotte, NC		1985		280		1,208		10,868		—
Ryan’s Pointe		Oct-98		Houston, TX		1983		280		1,265		3,080		3,928
Salem Park		Oct-97		Ft. Worth, TX		1984		168		840		4,315		(286	)
San Juan		Jun-97		Fair Oaks, CA		1973		70		381		1,592		88
San Marina		Mar-98		Phoenix, AZ		1986		399		1,926		10,954		1,062
Sand Castles		Oct-97		League City, TX		1987		138		978		5,541		517
Sand Pebble		Oct-97		El Paso, TX		1983		208		861		4,879		508
Sandalwood		May-98		Houston, TX		1979		352		1,462		8,287		610
Sandpiper		Jan-95		St. Petersburg, FL		1984		276		1,766		8,199		1,277
Sandpiper Cove		May-97		Boynton Beach, FL		1987		416		11,447		29,088		2,630
Sands Point		Jan-96		Phoenix, AZ		1985		432		3,043		10,960		402
Savannah Trace		Dec-00		Shaumburg, IL		1986		368		18		163		—
Sawgrass		Jul-97		Orlando, FL		1986		208		1,443		8,157		835
Scandia		Dec-00		Indianapolis, IN		1977		444		1,789		16,099		—
Scotch Pines East		Dec-91		Ft. Collins, CO		1977		102		688		2,912		1,471
Seaside Point		Nov-96		Galveston, TX		1985		102		295		2,994		3,019
Seasons (TX)		Oct-95		San Antonio, TX		1976		280		974		5,749		2,696
Shadetree		Oct-97		Tempe, AZ		1965		123		591		3,349		772
Shadow Brook		Dec-00		West Valley City, UT		1984		300		2,216		6,861		308
Shadow Creek Apartments		May-98		Phoenix, AZ		1984		266		2,087		11,824		607
Shadow Lake		Oct-97		Greensboro, NC		1988		136		1,054		5,972		646
Shadowood		May-97		Chapel Hill, NC		1987		336		2,377		11,898		196
Shaker Square		Oct-98		Whitehall, OH		1968		194		1,177		5,357		94
Shallow Creek		May-98		San Antonio, TX		1982		208		1,234		6,995		351
Shenandoah Crossing		Dec-97		Fairfax, VA		1984		640		6,445		58,009		(89	)
Shoreview		May-97		San Francisco, CA		1976		156		1,290		2,920		3,128
Signal Pointe (Squire One)		Oct-98		Winter Park, FL		1971		368		2,108		6,805		453
Signature Point		Nov-96		League City, TX		1994		304		2,160		13,627		3,602
Silktree		Oct-97		Phoenix, AZ		1979		86		421		2,383		280
Silver Ridge		Oct-98		Maplewood, MN		1986		186		650		3,677		1,011
Silverado		Oct-98		El Paso, TX		1973		248		821		4,469		1,567
Ski Lodge		Oct-98		Montgomery, AL		1978		522		2,538		8,781		544
Snowden Village I		Oct-98		Fredericksburg, VA		1970		132		978		3,004		81
Snowden Village II		Oct-98		Fredericksburg, VA		1980		122		864		3,008		40
Snug Harbor		Dec-95		Las Vegas, NV		1990		64		750		2,966		456
Society Park		Oct-98		Tampa, FL		1968		324		1,135		4,266		1,428
Society Park East		Oct-98		Indian Harbor, FL		1963		200		1,013		6,278		1,430
Somerset Lakes		May-99		Indianapolis, IN		1974		360		3,533		20,285		566
Somerset Village		May-96		West Valley City, UT		1985		486		4,375		17,600		1,963
South Point		Oct-98		Durham, NC		1980		180		1,429		5,377		171
South Willow		Jul-94		West Jordan, UT		1987		440		2,218		12,612		1,653
Southport		Mar-97		Tulsa, OK		1984		240		1,394		5,255		3,787
Southridge Assoc		Dec-96		Greenville, TX		1984		160		643		3,645		537

[Additional columns below]

[Continued from above table, first column(s) repeated]

	December 31, 2000

									Total Cost Net of
			Building and				Accumulated		Accumulated
Property Name	Land		Improvements		Total		Depreciation		Depreciation		Encumbrances

River Reach		2,450		9,023		11,473		710		10,763		6,693
Rivercrest		2,227		12,431		14,658		1,131		13,527		12,240
Rivers Edge		1,345		6,167		7,512		1,623		5,889		3,979
Riverside		1,554		10,290		11,844		2,696		9,149		10,098
Riverside		1,286		6,789		8,075		1,613		6,462		3,685
Riverside Park		9,869		70,181		80,050		19,580		60,470		50,542
Riverwalk		1,075		10,241		11,316		2,155		9,160		6,128
Riverwood (IN)		592		3,355		3,947		—		3,947		1,931
Rocky Creek		330		3,122		3,451		214		3,238		1,974
Rocky Ridge		542		2,680		3,222		261		2,961		1,450
Rolling Meadows		60		1,106		1,166		728		438		441
Rosecroft Mews		2,043		11,727		13,770		112		13,658		9,580
Rosemont Crossing (The Greens)		728		4,009		4,737		367		4,370		2,793
Royal Gardens		521		3,360		3,881		260		3,621		2,378
Royal Palms		832		5,152		5,984		1,331		4,653		3,245
Runaway Bay (CA)		2,610		14,789		17,399		—		17,399		12,100
Runaway Bay (FL)		2,517		14,263		16,780		—		16,780		14,186
Runaway Bay (MI)		1,472		8,339		9,810		—		9,810		9,040
Runaway Bay (NC)		1,811		10,265		12,076		—		12,076		9,020
Ryan’s Pointe		885		7,388		8,273		169		8,104		4,229
Salem Park		555		4,314		4,869		1,423		3,446		2,975
San Juan		381		1,680		2,060		810		1,250		564
San Marina		1,926		12,016		13,942		1,548		12,394		7,738
Sand Castles		978		6,058		7,036		844		6,192		2,913
Sand Pebble		861		5,387		6,248		775		5,473		2,544
Sandalwood		1,462		8,897		10,360		1,454		8,906		4,525
Sandpiper		2,013		9,229		11,242		1,425		9,817		3,950
Sandpiper Cove		8,382		34,783		43,165		9,440		33,725		12,210
Sands Point		2,890		11,516		14,406		951		13,454		9,487
Savannah Trace		27		154		181		—		181		—
Sawgrass		1,443		8,992		10,435		1,320		9,115		4,332
Scandia		2,683		15,204		17,887		—		17,887		12,958
Scotch Pines East		689		4,381		5,070		1,544		3,526		2,714
Seaside Point		215		6,093		6,308		1,223		5,085		1,970
Seasons (TX)		982		8,437		9,419		1,582		7,838		4,334
Shadetree		591		4,121		4,712		604		4,107		1,936
Shadow Brook		2,055		7,330		9,385		700		8,685		6,000
Shadow Creek Apartments		2,087		12,430		14,517		1,933		12,584		6,642
Shadow Lake		1,054		6,619		7,672		900		6,772		3,041
Shadowood		2,125		12,345		14,470		1,029		13,441		10,397
Shaker Square		1,037		5,592		6,629		446		6,183		3,192
Shallow Creek		1,234		7,345		8,580		1,151		7,429		4,390
Shenandoah Crossing		11,768		52,598		64,365		506		63,859		36,842
Shoreview		218		7,120		7,337		661		6,676		4,170
Signal Pointe (Squire One)		1,269		8,096		9,365		665		8,701		8,875
Signature Point		2,134		17,255		19,389		3,223		16,167		6,923
Silktree		421		2,663		3,084		374		2,710		1,463
Silver Ridge		—		5,338		5,338		0		5,338		4,525
Silverado		3,251		3,606		6,857		293		6,564		3,519
Ski Lodge		1,751		10,112		11,864		897		10,966		6,800
Snowden Village I		581		3,482		4,062		319		3,743		2,377
Snowden Village II		549		3,364		3,913		293		3,620		2,562
Snug Harbor		751		3,421		4,172		775		3,397		2,398
Society Park		2,255		4,574		6,830		523		6,306		5,311
Society Park East		1,898		6,823		8,721		420		8,301		4,106
Somerset Lakes		3,533		20,852		24,385		2,232		22,153		13,909
Somerset Village		4,375		19,563		23,938		3,760		20,179		12,242
South Point		1,259		5,718		6,977		485		6,491		4,600
South Willow		2,218		14,266		16,483		3,756		12,727		9,976
Southport		2,884		7,552		10,436		3,661		6,775		4,358
Southridge Assoc		643		4,182		4,826		872		3,954		3,946

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-39

									Initial Cost					Cost
															Capitalized
	Date				Year		Number					Buildings and			Subsequent to
Property Name	Acquired		Location		Built		of Units			Land		Improvements			Acquisition

Spectrum Pointe		Jul-94		Marietta, GA		1984		196			1,029		5,903			895
Springhill Lake		Oct-97		Greenbelt, MD		1969		2,907			20,793		70,845			26,443
St. Charleston Village		Oct-98		Las Vegas, NV		1980		312			2,035		7,778			432
Standart Woods Apts		Dec-97		Auburn, NY		1969		330			891		5,274			316
Steeplechase		Dec-00		Williamsburg, VA		1986		220			1,321		11,886			—
Steeplechase (MD)		Dec-97		Largo, MD		1986		240			1,888		16,995			20
Steeplechase (OH)		May-99		Loveland, OH		1988		272			1,669		9,539			471
Stirling Court		Nov-96		Houston, TX		1984		228			946		5,958			1,838
Stone Creek Club		Dec-97		Germantown, MD		1984		240			1,909		17,181			400
Stone Mountain West		Oct-98		Stone Mountain, GA		1971		142			1,236		4,200			214
Stone Pointe Village		Dec-99		Fort Wayne, IN		1980		296			1,809		8,591			1,037
Stonebrook		Jun-97		Sanford, FL		1991		244			2,071		9,353			786
Stoney Brook		Nov-96		Houston, TX		1972		113			579		3,871			790
Stonybrook Apts		May-98		Tucson, AZ		1983		411			2,187		12,278			1,180
Strawbridge Square		May-97		Alexandria, VA		1979		128			917		3,932			947
Summerchase		May-97		Van Buren, AR		1974		72			170		962			1,489
Summerwalk		Oct-98		Winter Park, FL		1974		306			1,991		6,650			816
Summerwalk At The Crossing		Nov-00		Tucker, GA		1989		264			1,663		14,971			742
Summit Creek		May-98		Austin, TX		1985		164			611		3,464			3,206
Sun Grove		Jul-94		Peoria, AZ		1986		86			659		3,749			270
Sun Lake		May-98		Lake Mary, FL		1986		600			4,556		25,819			1,683
Sun River Village		Oct-98		Tempe, AZ		1981		334			2,651		9,119			403
Sunbury Downs		Nov-96		Houston, TX		1982		240			565		4,380			2,715
Sunchase Clearwater		Nov-94		Clearwater, FL		1985		461			2,177		19,641			2,592
Sunchase East		Nov-94		Orlando, FL		1985		296			927		8,361			1,107
Sunchase North		Nov-94		Orlando, FL		1985		324			1,013		9,142			1,357
Sunchase Tampa		Nov-94		Tampa, FL		1985		216			757		6,831			1,227
Sundown Village		Mar-98		Tucson, AZ		1984/1994		330			2,214		12,582			661
Sunlake		Sep-98		Brandon, FL		1986		88			189		1,086			3,907
Sunrise V		Dec-91		Richmond, VA		1976		229			1,587		4,630			2,442
Sunrunner		Jan-96		St. Petersburg, FL		1980		200			1,203		4,410			197
Sunset Village		Mar-98		Oceanside, CA		1987		114			1,128		6,392			417
Surrey Oaks		Oct-97		Bedford, TX		1983		152			628		3,560			518
Swiss Village		Nov-96		Houston, TX		1972		360			1,011		11,310			698
Sycamore Creek		Dec-91		Cincinnati, OH		1978		295			1,830		7,105			3,994
Taj Mahal		Dec-97		Fort Worth, TX		1958		131			155		841			91
Tall Timbers		Oct-97		Houston, TX		1982		256			1,238		7,016			554
Tamarac Village		Dec-94		Denver, CO		1979		564			4,499		14,318			3,709
Tar River Estates		Oct-98		Greenville, NC		1969		402			2,411		6,546			1,405
Tates Creek Village		Oct-98		Lexington, KY		1970		204			1,282		6,643			1,294
Tatum Gardens Apartments		May-98		Phoenix, AZ		1985		128			653		3,699			3,086
The Apartment		Dec-94		Omaha, NE		1973		204			1,186		5,175			3,570
The Arbors Apartments		May-98		Deland, FL		1983		224			1,507		8,537			1,149
The Arbours Of Hermitage		Dec-94		Hermitage, TN		1972		350			2,143		7,367			6,476
The Bluffs		Dec-98		Laffayette, IN		1982		181			979		5,549			855
The Bradford		Oct-97		Midland, TX		1982		218			705		3,996			(424	)
The Breakers		Oct-98		Daytona Beach, FL		1985		208			1,008		5,710			695
The Falls Of Bells Ferry		May-98		Marietta, GA		1987		720			6,568		37,218			1,468
The Gates Of West Bay		Dec-97		Norfolk, VA		1963		202			483		3,424			255
The Greens		Dec-97		Chandler, AZ		2000		324			2,303		6,744			14,098
The Hills At The Arboretum		Oct-97		Austin, TX		1983		329			1,367		7,747			8,010
The Knolls		Oct-98		Colorado Springs, CO		1972		262			2,559		8,058			1,833
The Lakes		Dec-94		Raleigh, NC		1972		600			3,822		15,265			971
The Lexington		Oct-98		Sarasota, FL		1974		267			1,863		6,516			206
The Loft		Oct-98		Raleigh, NC		1974		184			1,667		6,316			195
The Park		Oct-98		Melbourne, FL		1983		120			719		4,072			250
The Park At Deerbrook		Oct-98		Humble, TX		1984		100			470		1,017			188
The Pines		Oct-98		Palm Bay, FL		1984		216			601		3,406			502

[Additional columns below]

[Continued from above table, first column(s) repeated]


	December 31, 2000

									Total Cost Net of
			Building and				Accumulated		Accumulated
Property Name	Land		Improvements		Total		Depreciation		Depreciation		Encumbrances

Spectrum Pointe		1,029		6,798		7,827		1,784		6,043		5,020
Springhill Lake		11,438		106,642		118,080		26,691		91,389		53,837
St. Charleston Village		1,595		8,651		10,246		632		9,614		7,215
Standart Woods Apts		741		5,741		6,482		253		6,229		5,340
Steeplechase		1,981		11,226		13,207		—		13,207		9,425
Steeplechase (MD)		3,120		15,784		18,903		202		18,701		11,914
Steeplechase (OH)		2,009		9,670		11,679		1,055		10,624		8,324
Stirling Court		977		7,765		8,742		3,519		5,223		4,517
Stone Creek Club		3,190		16,301		19,491		204		19,286		12,058
Stone Mountain West		817		4,833		5,650		341		5,309		3,000
Stone Pointe Village		1,810		9,627		11,437		614		10,823		6,163
Stonebrook		2,071		10,140		12,210		1,560		10,650		5,915
Stonegate Village		287		1,624		1,910		—		1,910		1,617
Stoney Brook		704		4,536		5,240		1,028		4,212		2,624
Stonybrook Apts		2,167		13,478		15,645		2,248		13,397		5,598
Strawbridge Square		505		5,290		5,795		289		5,506		3,190
Summerchase		81		2,540		2,621		1,851		769		617
Summerwalk		1,374		8,084		9,458		499		8,959		4,845
Summerwalk At The Crossing		2,124		15,252		17,376		850		16,526		17,360
Summit Creek		1,153		6,128		7,281		1,424		5,857		3,456
Sun Grove		659		4,019		4,678		1,069		3,609		—
Sun Katcher (Teal Pt)		785		9,605		10,389		1,398		8,991		8,458
Sun Lake		4,556		27,503		32,059		4,415		27,644		14,655
Sun River Village		2,081		10,091		12,173		791		11,382		6,065
Sunbury Downs		517		7,143		7,660		1,526		6,134		5,190
Sunchase Clearwater		2,177		22,232		24,410		5,487		18,923		16,015
Sunchase East		927		9,468		10,395		2,364		8,031		8,406
Sunchase North		1,013		10,499		11,512		2,616		8,897		11,275
Sunchase Tampa		757		8,057		8,815		2,075		6,739		6,739
Sundown Village		2,214		13,243		15,457		1,567		13,890		8,276
Sunlake		632		4,550		5,182		1,107		4,075		2,696
Sunrise V		1,157		7,502		8,659		2,548		6,111		6,390
Sunrunner		892		4,918		5,810		400		5,409		3,250
Sunset Village		1,128		6,810		7,937		713		7,225		5,442
Surrey Oaks		628		4,077		4,706		470		4,235		2,165
Swiss Village		868		12,151		13,019		5,038		7,981		7,426
Sycamore Creek		1,897		11,033		12,930		4,025		8,905		8,336
Taj Mahal		152		936		1,087		88		999		305
Tall Timbers		1,238		7,570		8,808		1,075		7,733		3,858
Tamarac Village		3,797		18,730		22,526		3,878		18,649		9,400
Tar River Estates		1,327		9,035		10,362		1,097		9,265		4,506
Tates Creek Village		2,004		7,215		9,219		470		8,749		4,210
Tatum Gardens Apartments		1,117		6,321		7,437		1,411		6,027		3,360
The Apartment		1,291		8,640		9,931		3,744		6,188		4,703
The Arbors Apartments		1,507		9,686		11,193		1,518		9,675		7,605
The Arbours Of Hermitage		2,064		13,922		15,986		6,072		9,914		5,650
The Bluffs		979		6,404		7,383		606		6,777		3,746
The Bradford		519		3,758		4,277		543		3,734		1,542
The Breakers		1,008		6,406		7,413		629		6,785		3,719
The Falls Of Bells Ferry		6,568		38,685		45,253		5,913		39,340		26,215
The Gates Of West Bay		601		3,561		4,162		334		3,829		2,466
The Greens		2,303		20,841		23,145		2		23,143		17,500
The Hills At The Arboretum		1,367		15,757		17,124		1,179		15,946		7,903
The Knolls		3,151		9,300		12,451		751		11,699		9,883
The Lakes		3,966		16,093		20,059		1,301		18,758		12,240
The Lexington		1,603		6,983		8,585		601		7,985		7,020
The Loft		1,623		6,555		8,177		1,264		6,913		4,276
The Park		720		4,321		5,041		418		4,623		2,496
The Park At Deerbrook		354		1,321		1,675		443		1,232		1,509
The Pines		603		3,906		4,509		338		4,171		2,190

F-40


									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

The Sterling		Oct-98		Philadelphia, PA		1962		536		7,610		35,768		1,932
The Stratford		May-98		San Antonio, TX		1979		269		1,920		10,879		541
Thicket		Dec-97		Houston, TX		1982		279		392		2,700		172
Thurber Manor		Oct-98		Columbus, OH		1965		115		873		2,713		325
Timber Ridge		Oct-98		Sharonville, OH		1972		248		1,537		5,706		412
Timberlake		May-97		Arlington, TX		1971		224		258		6,820		270
Timbermill		Oct-95		San Antonio, TX		1982		296		778		4,674		1,046
Timbertree		Oct-97		Phoenix, AZ		1980		387		2,334		13,229		1,062
Torrey Pines Village		Oct-98		Las Vegas, NV		1980		204		1,332		5,031		229
Township I & II		Nov-96		Littleton, CO		1986		161		1,058		11,166		11,005
Trails Of Ashford		May-98		Houston, TX		1979		514		2,650		15,018		950
Treehouse		Dec-97		College Station, TX		1982		156		701		3,828		139
Treetops		Dec-00		San Bruno, CA		1987		310		13		120		—
Trinity Apartments		Mar-00		Irving, TX		1985		596		3,669		15,344		3,322
Tropical Gardens		Dec-97		Lauderdale Lake, FL		1983		245		1,335		7,166		940
Twin Lake Towers		Oct-98		Westmont ,IL		1969		399		3,461		13,538		1,281
Twin Lakes		Apr-93		Palm Harbor, FL		1986		262		2,180		4,393		2,020
Victoria Station		Jun-98		Victoria, TX		1997		224		425		3,946		2,710
Villa La Paz		Jun-98		Sun City, CA		1990		96		573		3,096		302
Villa Ladera		Jan-96		Albuquerque, NM		1985		280		1,765		10,013		1,797
Villa Nova		Dec-91		Indianapolis, IN		1972		126		693		2,777		357
Villa Serena		Dec-91		Chino, CA		1987		186		949		5,033		(126	)
Village		Dec-91		Barndon, FL		1986		112		960		4,093		129
Village Creek At Brookhill		Jul-94		Westminster, CO		1987		324		2,446		13,901		1,391
Village Crossing		May-98		W. Palm Beach, FL		1986		189		1,618		9,167		1,309
Village East		Dec-94		Colorado Springs, CO		1972		137		1,059		3,627		1,812
Village Gardens		Oct-98		Fort Collins, CO		1973		141		1,136		3,502		186
Village Green		Oct-98		Montgomery, AL		1972		337		1,767		5,452		221
Village Green (AL)		Dec-97		Mobile, AL		1973		208		310		201		4,633
Village In The Woods		Jan-96		Cypress, TX		1983		530		3,631		15,292		644
Village Of Pennbrook		Oct-98		Levitown, PA		1970		722		5,533		31,345		26,352
Villas (VA)		Dec-97		Portsmouth, VA		1977		196		669		3,937		359
Vinings Peak		Jan-96		Atlanta, GA		1980		280		2,838		10,146		402
Vista Del Lagos		Nov-97		Chandler, AZ		1986		200		1,415		7,494		80
Vista Ventana Apartments		May-98		Phoenix, AZ		1982		275		1,908		10,810		583
Walker Springs Apts		Dec-91		Knoxville, TN		1974		168		528		2,696		1,987
Walnut Springs		Dec-96		San Antonio, TX		1983		224		998		5,657		454
Warwick		Dec-97		Abilene, TX		1984		152		779		4,433		169
Waterford		Nov-96		Houston, TX		1984		312		533		5,692		1,020
Waterways Village		Jun-97		Aventura, FL		1991		180		4,504		11,702		616
Weatherly		Oct-98		Stone Mountain, GA		1984		224		1,275		6,887		1,026
Wellspring		Dec-97		Columbia, SC		1985		232		564		9,114		—
West 135th Street		Aug-98		New York, NY		1979		198		1,195		14,969		1,232
West Lake Arms Apts		May-97		Indianapolis, IN		1977		1,381		3,989		22,697		1,785
West Way Village		May-98		Houston, TX		1979		326		980		5,554		4,846
West Woods		Dec-00		Annapolis, MD		1981		57		233		2,097		—
Westgate		Oct-98		Houston, TX		1971		313		1,998		8,933		2,517
Whispering Pines		Oct-98		Madison, WI		1986		136		719		4,046		175
Wickertree		Oct-97		Phoenix, AZ		1983		226		1,225		6,944		441
Wildflower		Oct-97		Midland, TX		1982		264		705		3,996		1,222
Williams Cove		Jul-94		Irving, TX		1984		260		1,227		6,972		810
Williamsburg		May-98		Rolling Meadows, IL		1985		329		2,717		15,398		1,288
Williamsburg Apts		Oct-98		Indianapolis, IN		1974		460		2,396		8,923		863
Williamsburg Manor		Jan-95		Cary, NC		1972		183		1,789		7,451		1,027
Williamsburg On The Wabash (IN)		Dec-99		West Lafayette, IN		1967		473		3,225		17,569		802
Willow Park On Lake Adelaide		Oct-98		Altamonte Springs, FL		1972		185		1,135		5,501		295
Willow Tree		Dec-97		Baytown, TX		1983		100		309		1,810		94
Willowick		Oct-98		Greenville, SC		1974		180		792		2,698		309
Winchester Village Apts		Sep-99		Indianapolis, IN		1966		96		14		1,467		785
Winddrift (IN)		Dec-00		Indianapolis, IN		1980		166		608		5,471		—
Windridge		May-98		San Antonio, TX		1983		276		1,480		8,386		449

[Additional columns below]

[Continued from above table, first column(s) repeated]


	December 31, 2000

									Total Cost Net of
			Building and				Accumulated		Accumulated
Property Name	Land		Improvements		Total		Depreciation		Depreciation		Encumbrances

The Sterling		5,068		40,241		45,309		5,083		40,226		22,504
The Stratford		1,920		11,420		13,340		1,860		11,480		5,660
Thicket		507		2,757		3,264		203		3,061		1,170
Thurber Manor		513		3,398		3,911		261		3,650		2,214
Timber Ridge		1,106		6,549		7,654		507		7,148		5,121
Timberlake		1,247		6,101		7,348		473		6,875		1,940
Timbermill		778		5,720		6,498		1,310		5,189		3,370
Timbertree		2,334		14,290		16,625		1,962		14,663		7,415
Torrey Pines Village		989		5,603		6,592		375		6,217		4,752
Township I & II		836		22,393		23,229		3,611		19,618		9,027
Trails Of Ashford		2,650		15,968		18,618		2,452		16,166		8,615
Treehouse		684		3,984		4,668		304		4,364		2,110
Treetops		20		113		133		—		133		—
Trinity Apartments		3,669		18,666		22,335		5,955		16,380		8,369
Tropical Gardens		1,300		8,141		9,441		1,188		8,253		7,793
Twin Lake Towers		2,647		15,633		18,280		1,450		16,830		10,706
Twin Lakes		1,595		6,998		8,593		2,131		6,462		7,243
Victoria Station		648		6,433		7,081		1,968		5,112		3,048
Villa La Paz		573		3,398		3,971		376		3,596		2,301
Villa Ladera		2,235		11,339		13,575		2,438		11,137		5,177
Villa Nova		693		3,134		3,827		—		3,827		2,231
Villa Serena		879		4,978		5,857		42		5,815		5,038
Village		894		4,288		5,181		292		4,889		1,861
Village Creek At Brookhill		2,446		15,292		17,738		3,930		13,808		—
Village Crossing		1,618		10,476		12,093		1,634		10,459		7,000
Village East		1,120		5,377		6,497		1,911		4,586		2,150
Village Gardens		808		4,016		4,824		412		4,412		4,518
Village Green		1,228		6,212		7,440		568		6,871		4,686
Village Green (AL)		310		4,834		5,144		2,139		3,005		2,323
Village In The Woods		3,148		16,420		19,567		1,171		18,397		14,262
Village Of Pennbrook		—		63,230		63,230		26,064		37,166		19,300
Villas (VA)		685		4,281		4,966		501		4,466		2,782
Vinings Peak		2,416		10,970		13,386		874		12,512		8,271
Vista Del Lagos		1,415		7,574		8,989		2,969		6,020		4,810
Vista Ventana Apartments		1,908		11,393		13,301		1,720		11,581		6,085
Walker Springs Apts		501		4,710		5,211		2,079		3,132		2,402
Walnut Springs		998		6,110		7,109		1,787		5,322		4,058
Warwick		753		4,628		5,381		351		5,030		2,312
Waterford		270		6,975		7,245		2,305		4,940		5,413
Waterways Village		4,504		12,318		16,822		1,954		14,868		7,360
Weatherly		1,275		7,913		9,188		746		8,443		4,568
Wellspring		564		9,114		9,678		3,936		5,742		5,399
West 135th Street		1,131		16,264		17,395		5,336		12,059		3,500
West Lake Arms Apts		2,966		25,505		28,471		2,247		26,224		15,630
West Way Village		2,457		8,923		11,380		2,042		9,338		4,753
West Woods		349		1,980		2,330		—		2,330		1,934
Westgate		2,876		10,573		13,449		2,681		10,768		5,920
Whispering Pines		—		4,940		4,940		9		4,930		4,148
Wickertree		1,225		7,385		8,610		1,033		7,577		3,898
Wildflower		705		5,218		5,923		750		5,172		1,953
Williams Cove		1,227		7,782		9,009		2,082		6,927		5,507
Williamsburg		2,717		16,686		19,403		2,579		16,824		11,930
Williamsburg Apts		1,338		10,844		12,182		974		11,208		7,400
Williamsburg Manor		1,831		8,436		10,267		1,288		8,978		4,150
Williamsburg On The Wabash (IN)		2,968		18,628		21,596		612		20,983		12,215
Willow Park On Lake Adelaide		1,275		5,655		6,930		413		6,518		3,923
Willow Tree		355		1,858		2,213		148		2,065		1,125
Willowick		505		3,294		3,799		300		3,499		3,110
Winchester Village Apts		101		2,164		2,265		1		2,264		—
Winddrift (IN)		912		5,167		6,079		—		6,079		4,917
Windridge		1,480		8,835		10,315		1,391		8,924		5,955

[Additional columns below]

[Continued from above table, first column(s) repeated]

F-41


									Initial Cost				Cost
													Capitalized
	Date				Year		Number				Buildings and		Subsequent to
Property Name	Acquired		Location		Built		of Units		Land		Improvements		Acquisition

Windrift (FL)		Dec-00		Orlando, FL		1987		290		1,324		11,915		—
Windrift Oceanside, CA		Dec-00		Oceanside, CA		1987		409		14		123		—
Windsong At Chambrell		Dec-97		Akron, OH		1987		83		522		2,957		—
Windsor At South Square		Oct-98		Durham, NC		1972		230		1,632		5,122		213
Windsor Crossing		Dec-97		Newport News, VA		1978		156		654		2,831		552
Windsor Hills		Oct-98		Blacksburg, VA		1970		300		1,952		6,946		207
Windsor Landing		Oct-97		Morrow, GA		1991		200		1,641		9,298		527
Windsor Park		Dec-00		Woodbridge, VA		1987		220		7		60		—
Windward At The Villages		Oct-97		W. Palm Beach, FL		1988		196		1,595		9,037		974
Wood Lake		Jan-96		Atlanta, GA		1983		220		2,362		8,659		326
Woodcrest		Dec-97		Odessa, TX		1972		80		41		2,069		1,855
Woodhaven		Mar-94		Chesapeake, VA		1968		208		1,196		4,987		862
Woodhill Associates		Dec-96		Denton, TX		1985		352		1,554		8,805		1,275
Woodhollow		Oct-97		Austin, TX		1974		108		658		3,728		473
Woodland Ridge		Dec-96		Irving, TX		1984		130		595		3,373		354
Woodland Village I		Oct-98		Columbia, SC		1970		308		2,078		6,861		766
Woodlands (MI)		Dec-99		Battle Creek, MI		1987		76		496		3,513		173
Woodlands/Odessa		Jul-94		Odessa, TX		1982		232		676		3,835		997
Woodlands/Tyler		Jul-94		Tyler, TX		1984		256		1,029		5,845		948
Woodmere		Jan-92		Cincinnati, OH		1971		150		995		2,995		509
Woods Of Inverness		Oct-98		Houston, TX		1983		272		1,897		6,906		483
Woodshire		Dec-97		Virginia Beach, VA		1972		288		1,306		7,833		594
Wyckford Commons		Dec-91		Indianapolis, IN		1973		248		1,167		5,475		984
Wyntre Brook Apts		May-97		West Chester, PA		1976		212		1,257		7,106		548
Yorktown Apartments		Oct-98		Lombard, IL		1973		368		4,029		12,002		1,334
Yorktree		Oct-97		Carolstream, IL		1972		293		1,968		11,151		1,678

								153,872		1,004,395		5,072,011		936,046

[Additional columns below]

[Continued from above table, first column(s) repeated]


	December 31, 2000

									Total Cost Net of
			Building and				Accumulated		Accumulated
Property Name	Land		Improvements		Total		Depreciation		Depreciation		Encumbrances

Windrift (FL)		1,986		11,253		13,239		—		13,239		8,212
Windrift Oceanside, CA		20		116		137		—		137		—
Windsong At Chambrell		522		2,957		3,479		57		3,422		3,158
Windsor At South Square		988		5,979		6,967		512		6,455		2,058
Windsor Crossing		453		3,585		4,038		699		3,339		3,814
Windsor Hills		1,601		7,505		9,106		561		8,544		6,840
Windsor Landing		1,642		9,824		11,466		1,348		10,117		5,124
Windsor Park		10		56		66		—		66		—
Windward At The Villages		1,595		10,012		11,606		1,357		10,249		4,185
Wood Lake		1,881		9,466		11,347		744		10,603		7,122
Woodcrest		41		3,925		3,966		981		2,985		537
Woodhaven		842		6,203		7,045		1,006		6,039		3,692
Woodhill Associates		1,554		10,081		11,634		1,720		9,915		9,655
Woodhollow		658		4,201		4,859		581		4,278		1,969
Woodland Ridge		595		3,727		4,322		729		3,593		3,224
Woodland Village I		1,224		8,481		9,705		475		9,230		4,950
Woodlands (MI)		740		3,442		4,183		428		3,755		2,011
Woodlands/Odessa		676		4,832		5,508		1,397		4,111		—
Woodlands/Tyler		1,029		6,793		7,822		1,808		6,014		3,933
Woodmere		661		3,839		4,499		100		4,399		2,746
Woods Of Inverness		1,523		7,762		9,285		591		8,695		4,991
Woodshire		1,951		7,781		9,732		810		8,922		7,533
Wyckford Commons		881		6,744		7,625		1,139		6,487		4,500
Wyntre Brook Apts		808		8,104		8,912		779		8,133		6,575
Yorktown Apartments		2,519		14,847		17,366		1,188		16,178		12,064
Yorktree		1,968		12,829		14,797		1,699		13,098		6,244

		976,421		6,036,031		7,012,452		913,263		6,099,189		4,031,375

F-42

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

REAL ESTATE AND ACCUMULATED DEPRECIATION
For the Years Ended December 31, 2000, 1999 and 1998
(In Thousands)


			2000			1999			1998

Real Estate
	Balance at beginning of year		$	4,512,697		$	2,829,902		$	1,657,207
	Additions during the year:
		Newly consolidated assets		1,653,886			1,101,134			—
		Acquisitions		739,005			462,891			1,116,643
		Additions		270,779			177,245			80,368
		Sales/transfers		(163,915	)		(58,475	)		(24,316	)

	Balance at end of year		$	7,012,452		$	4,512,697		$	2,829,902

Accumulated Depreciation
	Balance at beginning of year		$	416,497		$	228,880		$	153,285
	Additions during the year:
		Depreciation		323,321			131,753			84,635
		Newly consolidated assets		193,246			59,628			—
		Sales/transfers		(19,801	)		(3,764	)		(9,040	)

	Balance at end of year		$	913,263		$	416,497		$	228,880

F-43

INDEX TO EXHIBITS


Exhibit No.		Description

2.1	—	Second Amended and Restated Agreement and Plan of Merger, dated as of January 22, 1999, by and between Apartment Investment and Management Company and Insignia Properties Trust (Exhibit 2.2 to the Current Report on Form 8-K of Insignia Properties Trust, dated February 11, 1999, is incorporated herein by this reference)

2.2	—	Amended and Restated Agreement and Plan of Merger, dated as of May 26, 1998 by and among Apartment Investment Management Company, AIMCO Properties, L.P., Insignia Financial Group, Inc., and Insignia/ESG Holdings, Inc. (Appendix I to the Prospectus included in AIMCO’s Registration Statement on Form S-4 filed August 5, 1998, is incorporated herein by this reference)

2.3	—	Acquisition Agreement, dated as of June 28, 2000, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., NHP Management Company and AIMCO/NHP Properties, Inc., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit 2.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2000, is incorporated herein by this reference)

2.4	—	Agreement and Plan of Merger, dated as of November 29, 2000, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., AIMCO Properties, L.P., AIMCO/OTEF, LLC and Oxford Tax Exempt Fund II Limited Partnership (Annex A to AIMCO’s Registration Statement on Form S-4 filed on December 1, 2000, is incorporated herein by this reference)

3.1	—	Charter

3.2	—	Bylaws ( Exhibit 3.2 to AIMCO’s Annual Report on Form 10-K for the fiscal year 1999, is incorporated herein by this reference)

4.1	—	Amended and Restated Declaration of Trust of IFT Financing I (formerly Insignia Financing I), dated as of November 1, 1996, among Insignia Financial Group, Inc as Sponsor, First Union National Bank of South Carolina as Property Trustee, First Union Bank of Delaware, as Delaware Trustee and Andrew I. Farkas, John K. Lines and Ronald Uretta as Regular Trustees (Exhibit 4.2 to Form S-3 of Insignia Financial Group, Inc. dated December 10, 1996, is incorporated herein by this reference)

4.2	—	Indenture for the 6.5% Convertible Subordinated Debentures, dated as of November 1, 1996, between Insignia Financial Group, Inc., as Issuer and First Union National Bank of South Carolina, as Trustee (Exhibit 4.3 to Form S-3 of Insignia Financial Group, Inc., dated December 10, 1996, is incorporated herein by this reference)

4.3	—	First Supplemental Indenture, dated as of October 1,1998, by and among Apartment Investment and Management Company, Insignia Financial Group, Inc, and First Union National Bank (formerly First Union National Bank of South Carolina, as Trustee) (Exhibit 4.3 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)

10.1	—	Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of July 29, 1994 as amended and restated as of October 1, 1998 (Exhibit 10.8 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, is incorporated herein by this reference)

10.2	—	First Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 6, 1998 (Exhibit 10.9 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, is incorporated herein by this reference)


10.3	—	Second Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 30, 1998 (Exhibit 10.1 to Amendment No. 1 to AIMCO’s Current Report on Form 8-K/A, filed February 11, 1999, No. 1 to AIMCO’s Current Report on Form 8-K/A, filed is incorporated herein by this reference)

10.4	—	Third Amendment to Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of February 18, 1999 (Exhibit 10.12 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)

10.5	—	Fourth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 25, 1999 (Exhibit 10.2 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1999, is incorporated herein by this reference)

10.6	—	Fifth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 26, 1999 (Exhibit 10.3 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1999, is incorporated herein by this reference)

10.7	—	Sixth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 26, 1999 (Exhibit 10.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1999, is incorporated herein by this reference)

10.8	—	Seventh Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 27, 1999 (Exhibit 10.1 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1999, is incorporated herein by this reference)

10.9	—	Eighth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 14, 1999 (Exhibit 10.9 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)

10.10	—	Ninth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 21, 1999 (Exhibit 10.10 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)

10.11	—	Tenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 21, 1999 (Exhibit 10.11 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)

10.12	—	Eleventh Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of January 13, 2000 (Exhibit 10.12 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by reference)

10.13	—	Twelfth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of April 19, 2000 (Exhibit 10.2 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2000 is incorporated herein by this reference)

10.14	—	Thirteenth Amendment to the Third and Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of August 7, 2000 (Exhibit 10.1 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended June 30, 2000, is incorporated herein by this reference)


10.15	—	Fourteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 12, 2000 (Exhibit 10.1 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000, is incorporated herein by this reference)

10.16	—	Fifteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 15, 2000 (Exhibit 10.2 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000, is incorporated herein by this reference)

10.17	—	Sixteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of September 15, 2000 (Exhibit 10.3 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000 is incorporated herein by this reference)

10.18	—	Seventeenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 10, 2000 (Exhibit 10-4 to Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarterly period ended September 30, 2000 is incorporated herein by this reference)

10.19	—	Eighteenth Amendment to the Third and Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of November 16, 2000

10.20	—	Nineteenth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of February 28, 2001

10.21	—	Twentieth Amendment to the Third Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of March 19, 2001

10.22	—	Shareholders Agreement, dated October 1, 1998, by and among Apartment Investment and Management Company, Andrew L. Farkas, James A. Aston and Frank M. Garrison (Exhibit 10.4 to AIMCO’s Statement of Beneficial Ownership on Schedule 13D with respect to Insignia Properties Trust filed on October 15, 1998, is incorporated herein by this reference)

10.23	—	Amended and Restated Indemnification Agreement, dated as of May 26, 1998, by and between Apartment Investment and Management Company and Insignia/ESG Holdings, Inc. (Appendix II to the Prospectus included in AIMCO’s Registration Statement on Form S-4, filed August 5, 1998, is incorporated herein by this reference)

10.24	—	ILPI and BAC Agreement, dated as of September 20, 2000 by and among Apartment Investment and Management Company, AIMCO Properties, L.P. and AIMCO/ NHP Properties, Inc ., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit (B) of the Statement of Beneficial Ownership on Schedule 13D of Oxford Tax Exempt Fund II Limited Partnership with respect to AIMCO dated September 20, 2000, is incorporated herein by this reference)

10.25	—	Option Sale Agreement , dated as of September 20, 2000 by and among Apartment Investment and Management Company, AIMCO Properties, L.P., NHP Management Company and AIMCO/NHP Properties, Inc., as Buyers, and Leo E. Zickler, Francis P. Lavin, Robert B. Downing, Mark E. Schifrin, Marc B. Abrams, and Richard R. Singleton, as Sellers (Exhibit (C) of the Statement of Beneficial Ownership on Schedule 13D of Oxford Tax Exempt Fund II Limited Partnership with respect to AIMCO dated September 20, 2000 is incorporated herein by this reference)

10.26	—	Employment Contract, executed on July 29, 1994, by and between AIMCO Properties, L.P., and Peter Kompaniez (Exhibit 10.44A to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by this reference)*

10.27	—	Employment Contract executed on July 29, 1994 by and between AIMCO Properties, L.P. and Terry Considine (Exhibit 10.44C to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated herein by this reference)*

10.28	—	Employment Contract executed on July 29, 1994 by and between AIMCO Properties, L.P. and Steven D. Ira (Exhibit 10.44D to AIMCO’s Annual Report on Form 10-K for year ended December 31, 1994, is incorporated herein by this reference)*


10.29	—	Apartment Investment and Management Company 1998 Incentive Compensation Plan (Annex B to AIMCO’s Proxy Statement for Annual Meeting of Stockholders to be held on May 8, 1998, is incorporated herein by this reference)*

10.30	—	Apartment Investment and Management Company 1997 Stock Award and Incentive Plan (October 1999) (Exhibit 10.26 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by this reference)*

10.31	—	Form of Restricted Stock Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.11 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1997, is incorporated herein by this reference)*

10.32	—	Form of Incentive Stock Option Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.42to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)*

10.33	—	Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan, adopted August 29, 1996 (Exhibit 10.8 to AIMCO’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1996, is incorporated herein by this reference)*

10.34	—	Amended and Restated Apartment Investment and Management Company Non-Qualified Employee Stock Option Plan (Annex B to AIMCO’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 24, 1997, is incorporated herein by this reference)*

10.35	—	The 1994 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P., and Subsidiaries (Exhibit 10.40 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*

10.36	—	Amendment to the 1994 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P. and Subsidiaries (Exhibit 10.41 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*

10.37	—	The 1996 Stock Incentive Plan for Officers, Directors and Key Employees of Ambassador Apartments, Inc., Ambassador Apartments, L.P., and Subsidiaries, as amended March 20, 1997 (Exhibit 10.42 to Ambassador Apartments, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*

10.38	—	Insignia 1992 Stock Incentive Plan, as amended through March 28, 1994 and November 13, 1995 (Exhibit 10.1 to Insignia Financial Group, Inc. Annual Report on Form 10-K for the year ended December 31, 1997, is incorporated herein by this reference)*

10.39	—	NHP Incorporated 1990 Stock Option Plan (Exhibit 10.9 to NHP Incorporated Annual Report on Form 10-K for the year ended December 31, 1995, is incorporated herein by this reference)*

10.40	—	NHP Incorporated 1995 Incentive Stock Option Plan (Exhibit 10.10 to NHP Incorporated Annual Report on Form 10-K for the year ended December 31, 1995, is incorporated herein by this reference)*

10.41	—	Summary of Agreement for Sale of Stock to Executive Officers (Exhibit 10.104 to AIMCO’s Annual Report on Form 10-K for the year ended December 31, 1996, is incorporated herein by this reference)*

21.1	—	List of Subsidiaries

23.1	—	Consent of Ernst & Young LLP

99.1	—	Agreement re: disclosure of long-term debt instruments

(1)		Schedule and supplemental materials to the exhibits have been omitted but will be provided to the Securities and Exchange Commission upon request.

		* Management contract