APARTMENT INVESTMENT & MANAGEMENT COAIV

APARTMENT INVESTMENT & MANAGEMENT CO Segments Disclosure

10-KFiled Mar 2, 20267 min read

Note 15 — Business Segments

We have three segments: (i) Development; (ii) Operating; and (iii) Other.

Our Development segment consists of properties that are under construction or have not achieved stabilization, as well as land held for development. As of December 31, 2025, our Development segment consists of 9 properties, including one under construction, two completed and in lease-up, one that has completed lease-up and is stabilizing operations, and five undeveloped land parcels.

Our Operating segment includes 15 residential apartment communities with 2,524 apartment homes that have achieved a stabilized level of operations as of January 1, 2024 and maintained it throughout the current year and comparable period. Two of the communities, Hillmeade and Plantation Gardens, meet the held for sale criteria in accordance with GAAP as described in Note 2. We aggregate all our apartment communities that have reached stabilization into our Operating segment.

Our Other segment consists of properties currently owned that are not included in our Development or Operating segments. Our Other segment includes The Benson Hotel, our only hotel.

During the year ended December 31, 2025, we reclassified as discontinued operations the five properties within our Boston portfolio, which was previously reported within the Operating segment. Refer to Note 14 for the operating results of our Boston portfolio. Prior period segment information has been recast based upon our current segment population, and is consistent with how our CODM evaluates the business.

Our CODM evaluates performance and allocates resources for all of our segments using property net operating income (“PNOI”), which is our measure of segment profit or loss. PNOI is defined as rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, including utility reimbursements, for the consolidated communities; but excluding

•
the results of four apartment communities with an aggregate 142 apartment homes that we neither manage nor consolidate, our investment in IQHQ, the Mezzanine Investment, and investments in real estate technology funds; and
•
property management costs and casualty gains or losses, reported in consolidated amounts, in our assessment of segment performance.

Our CODM uses historical and projected PNOI to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget process. PNOI is used to review operating trends, perform analytical comparisons between periods, and to monitor budget-to-actual variances on at least a quarterly basis in order to assess performance and allocate resources. The corporate goals, which impact short term incentive compensation for employees, also include consideration of PNOI.

The accounting policies of segments are the same as those described in the summary of significant accounting policies described in Note 2.

The following tables present the results of operations of consolidated properties with our segments for the years ended December 31, 2025, 2024, and 2023 (in thousands):

 

Development

 

 

Operating

 

 

Other

 

 

Adjustments(1)

 

 

Corporate and Amounts Not Allocated to Segments (2)

 

 

Consolidated

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental and other property revenues

$

27,518

 

 

$

72,519

 

 

$

7,553

 

 

$

6,183

 

 

$

24,713

 

 

$

138,486

 

Controllable operating expenses(3)

 

6,107

 

 

 

11,155

 

 

 

7,268

 

 

 

—

 

 

 

3,331

 

 

 

27,861

 

Real estate taxes, net of capitalized amounts

 

4,763

 

 

 

11,259

 

 

 

912

 

 

 

—

 

 

 

5,255

 

 

 

22,189

 

Utilities expense, net of utility reimbursements

 

1,645

 

 

 

688

 

 

 

276

 

 

 

6,183

 

 

 

1,262

 

 

 

10,054

 

Property insurance expense, net of capitalized amounts

 

761

 

 

 

1,768

 

 

 

130

 

 

 

—

 

 

 

1,525

 

 

 

4,184

 

Other property operating expenses (4)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,067

 

 

 

4,067

 

Property operating expenses

 

13,276

 

 

 

24,870

 

 

 

8,586

 

 

 

6,183

 

 

 

15,440

 

 

 

68,355

 

Property net operating income (loss)

 

14,242

 

 

 

47,649

 

 

 

(1,033

)

 

 

—

 

 

n/a

 

 

n/a

 

Other operating expenses not allocated to segments (5)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(239,760

)

 

 

(239,760

)

Other items included in income before
   income tax (6)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

153,781

 

 

 

153,781

 

Income (loss) before income tax

$

14,242

 

 

$

47,649

 

 

$

(1,033

)

 

$

—

 

 

$

(76,706

)

 

$

(15,848

)

 

 

Development

 

 

Operating

 

 

Other

 

 

Adjustments(1)

 

 

Corporate and Amounts Not Allocated to Segments (2)

 

 

Consolidated

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental and other property revenues

$

9,852

 

 

$

71,689

 

 

$

6,690

 

 

$

5,409

 

 

$

44,060

 

 

$

137,700

 

Controllable operating expenses(3)

 

4,527

 

 

 

10,334

 

 

 

6,746

 

 

 

—

 

 

 

6,236

 

 

 

27,843

 

Real estate taxes, net of capitalized amounts

 

1,963

 

 

 

10,004

 

 

 

593

 

 

 

—

 

 

 

7,312

 

 

 

19,872

 

Utilities expense, net of utility reimbursements

 

1,959

 

 

 

1,070

 

 

 

255

 

 

 

5,409

 

 

 

1,410

 

 

 

10,103

 

Property insurance expense, net of capitalized amounts

 

1,019

 

 

 

1,640

 

 

 

118

 

 

 

—

 

 

 

2,059

 

 

 

4,836

 

Other property operating expenses (4)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,423

 

 

 

5,423

 

Property operating expenses

 

9,468

 

 

 

23,048

 

 

 

7,712

 

 

 

5,409

 

 

 

22,440

 

 

 

68,077

 

Property net operating income (loss)

 

384

 

 

 

48,641

 

 

 

(1,022

)

 

 

—

 

 

n/a

 

 

n/a

 

Other operating expenses not allocated to segments (5)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(109,970

)

 

 

(109,970

)

Other items included in income before
   income tax (6)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(94,886

)

 

 

(94,886

)

Income (loss) before income tax

$

384

 

 

$

48,641

 

 

$

(1,022

)

 

$

—

 

 

$

(183,236

)

 

$

(135,233

)

 

 

Development

 

 

Operating

 

 

Other

 

 

Adjustments(1)

 

 

Corporate and Amounts Not Allocated to Segments (2)

 

 

Consolidated

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental and other property revenues

$

109

 

 

$

69,267

 

 

$

2,691

 

 

$

4,541

 

 

$

43,317

 

 

$

119,925

 

Controllable operating expenses(3)

 

670

 

 

 

10,167

 

 

 

4,029

 

 

 

—

 

 

 

6,097

 

 

 

20,963

 

Real estate taxes, net of capitalized amounts

 

84

 

 

 

8,865

 

 

 

475

 

 

 

—

 

 

 

5,634

 

 

 

15,058

 

Utilities expense, net of utility reimbursements

 

114

 

 

 

1,047

 

 

 

179

 

 

 

4,541

 

 

 

1,432

 

 

 

7,313

 

Property insurance expense, net of capitalized amounts

 

59

 

 

 

1,511

 

 

 

27

 

 

 

—

 

 

 

2,111

 

 

 

3,708

 

Other property operating expenses (4)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,613

 

 

 

4,613

 

Property operating expenses

 

927

 

 

 

21,590

 

 

 

4,710

 

 

 

4,541

 

 

 

19,887

 

 

 

51,655

 

Property net operating income (loss)

 

(818

)

 

 

47,677

 

 

 

(2,019

)

 

 

—

 

 

n/a

 

 

n/a

 

Other operating expenses not allocated to segments (5)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(90,983

)

 

 

(90,983

)

Other items included in income before
   income tax (6)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(170,875

)

 

 

(170,875

)

Income (loss) before income tax

$

(818

)

 

$

47,677

 

 

$

(2,019

)

 

$

—

 

 

$

(238,428

)

 

$

(193,588

)
(1)
Represents the reclassification of utility reimbursements, which are included in Rental and other property revenues in our Consolidated Statements of Operations, in accordance with GAAP, from revenues to property operating expenses for the purpose of evaluating segment results.
(2)
Includes the operating results of apartment communities sold during the periods shown, if any. Also includes property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure.
(3)
Controllable operating expenses primarily consist of property personnel costs, marketing, repairs and maintenance, and contract services.
(4)
Other property operating expenses include property management costs and casualty gains or losses, which are included in consolidated property operating expenses and are not part of our segment performance measure.
(5)
Other operating expenses not allocated to segments consists of depreciation and amortization, general and administrative expenses, and impairment on real estate.
(6)
Other items included in Income (loss) before income tax consist primarily of interest income, interest expense, mezzanine investment income (loss), net, realized and unrealized gains (losses) on interest rate contracts, realized and unrealized gains (losses) on equity investments, other income (expense), and gain on dispositions of real estate, if any.

Net real estate and non-recourse property debt and construction loans, net, of our segments as of December 31, 2025 and 2024, were as follows (in thousands):

 

Development

 

 

Operating (1)

 

 

Other

 

 

Total

 

As of December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

Buildings and improvements

 

626,929

 

 

 

363,105

 

 

 

24,868

 

 

 

1,014,902

 

Land

 

148,850

 

 

 

73,101

 

 

 

364

 

 

 

222,315

 

Total real estate

 

775,779

 

 

 

436,206

 

 

 

25,232

 

 

 

1,237,217

 

Accumulated depreciation

 

(48,719

)

 

 

(231,231

)

 

 

(7,335

)

 

 

(287,285

)

Net real estate

$

727,060

 

 

$

204,975

 

 

$

17,897

 

 

$

949,932

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recourse property debt and construction loans, net

$

399,142

 

 

$

339,483

 

 

$

—

 

 

$

738,625

 

 

 

Development

 

 

Operating (1)

 

 

Other

 

 

Total

 

As of December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Buildings and improvements

$

620,000

 

 

$

449,591

 

 

$

75,741

 

 

$

1,145,332

 

Land

 

165,633

 

 

 

79,745

 

 

 

1,503

 

 

 

246,881

 

Total real estate

 

785,633

 

 

 

529,336

 

 

 

77,244

 

 

 

1,392,213

 

Accumulated depreciation

 

(20,872

)

 

 

(291,474

)

 

 

(10,362

)

 

 

(322,708

)

Net real estate

$

764,761

 

 

$

237,862

 

 

$

66,882

 

 

$

1,069,505

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recourse property debt and construction loans, net

$

385,240

 

 

$

444,426

 

 

$

—

 

 

$

829,666

 
(1)
During the year ended December 31, 2025, Hillmeade and Plantation Gardens were reclassified as held for sale. As described in Note 2, we present certain assets and liabilities of real estate properties held for sale separately in the Consolidated Balance Sheets and therefore are not included in our segment balance sheets as of December 31, 2025. The assets and the associated debt of these properties as of December 31, 2024 remain in the Operating column above for presentation purposes. Refer to Note 14 for the balance sheet of our held for sale properties.

Capital additions within our segments for the years ended December 31, 2025, 2024 and 2023, were as follows (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Development

$

93,592

 

 

$

126,125

 

 

$

258,888

 

Operating

 

9,677

 

 

 

7,800

 

 

 

6,622

 

Other

 

337

 

 

 

26

 

 

 

8,782

 

Corporate amounts not allocated to segments (1)

 

943

 

 

 

2,753

 

 

 

13,463

 

Total capital additions

$

104,549

 

 

$

136,704

 

 

$

287,755

 

 

(1)
During the years ended December 31, 2025, 2024 and 2023, certain capital additions pertained to properties that were sold and therefore are not included in our segments as capital additions at those respective year ends. We added a Corporate row to the table above for presentation purposes to display these capital additions as of December 31, 2025, 2024 and 2023, respectively.

 

In addition to the amounts disclosed in the tables above, as of December 31, 2025, the Development segment right-of-use lease assets and lease liabilities aggregated to $106.4 million and $124.8 million, respectively, and as of December 31, 2024, aggregated to $107.7 million and $121.8 million, respectively. As of December 31, 2025, right-of-use lease assets and lease liabilities primarily related to our investments in Upton Place, Strathmore Square and Oak Shore.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 24, 2025
2019Feb 24, 2020

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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