AIV - Why Apartment and Investment Management Stock Plunged 86% at the Open Today
Shares of real estate investment trust ( REIT ) Apartment and Investment Management (NYSE: AIV) fell a huge 86% at the open of trading on Dec. 15 to a bit under $6 a share. The thing is, investors shouldn't get too caught up in the decline because it's just a function of a key business makeover that was completed today.
Apartment and Investment Management (AIMCO) essentially split its business into two parts. One, which retained the Apartment and Investment Management name, is focused on the development and redevelopment of apartment properties. The other, called Apartment Income REIT (NYSE: AIR) , owns a collection of operating apartment assets that use to be a part of AIMCO's business.
It's a logical breakup -- putting mature income-producing assets into one company and construction and development oriented assets into another. That, theoretically, will allow both to shine in their own way.
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Why Apartment and Investment Management Stock Plunged 86% at the Open Today