On Monday, 9/14, apartment REIT Aimco (AIV) announced a series of transactions to unlock value for shareholders. The set of transactions include:
1) Separation of Aimco's stabilized REIT portfolio (will be AIR) from its lumpier, less predictable apartment development business.
2) The sale of 12 California apartment buildings into a JV, of which Aimco will own 61%, with its unnamed institutional partner owning the remaining 39%. The total value of the portfolio here is $2.4 billion (including debt).
3) The leveraging of the Joint Venture to a 51% LTV, which is more consistent