Aimco
AIV
#8574
Rank
HK$2.14 B
Marketcap
HK$13.89
Share price
-0.56%
Change (1 day)
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Change (1 year)

Aimco - 10-Q quarterly report FY


Text size:
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended JUNE 30, 1996
-----------------------------------------

OR

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

For the transition period to
---------------------------------------------

Commission File Number 1-13232

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
- ------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)


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


1873 S. Bellaire Street, Suite 1700, Denver, Colorado 80222-4348
- ------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)

(303) 757-8101
- ------------------------------------------------------------------------
(Registrant's telephone number, including area code)

Not applicable
- ------------------------------------------------------------------------
(Former name, former address, and former fiscal year, if changed since
last report)

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
------- -------

The number of shares of Class A Common Stock outstanding as of
August 13, 1996: 12,521,878
The number of shares of Class B Common Stock outstanding as of
August 13, 1996: 585,000
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
FORM 10-Q

INDEX
<TABLE>
PAGE
----
<S> <C>
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets as of June 30, 1996
(unaudited) and December 31, 1995 3

Consolidated Statements of Income for the Three and Six Months
Ended June 30, 1996 and 1995 (unaudited) 4

Consolidated Statements of Cash Flows for the Six Months
Ended June 30, 1996 and 1995 (unaudited) 5

Notes to Consolidated Financial Statements
(unaudited) 7


Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 14

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K 27

Signatures 28
</TABLE>
PART I.   FINANCIAL INFORMATION.
ITEM 1. FINANCIAL STATEMENTS.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
----------- -----------
(Unaudited) (Restated)
ASSETS
<S> <C> <C>
Real estate - net of accumulated depreciation of $37,797 and $28,737 $514,029 $448,425
Cash and cash equivalents 2,328 2,379
Restricted cash 10,166 18,630
Accounts receivable 1,874 1,581
Deferred financing costs 7,423 5,474
Other assets 4,297 3,872
----------- -----------
$540,117 $480,361
----------- -----------
----------- -----------

LIABILITIES AND STOCKHOLDERS' EQUITY

Secured long-term notes payable $203,380 $173,502
Secured long-term tax-exempt bond financing 76,060 66,190
Secured short-term financing 28,172 29,000
Accounts payable, accrued and other liabilities 9,570 9,615
Resident security deposits and prepaid rents 3,351 2,646
----------- -----------
320,533 280,953
----------- -----------
Commitments and contingencies -- --

Minority interest in Operating Partnership 41,525 30,376
----------- -----------

Stockholders' equity:
Class A Common Stock, $.01 par value, 150,000,000 shares
authorized, 12,521,878 shares issued and outstanding 126 118
Class B Common Stock, $.01 par value, 685,000 shares
authorized, 585,000 shares issued and outstanding 6 6
Non-voting preferred stock, $.01 par value, 10,000,000
authorized, none issued and outstanding -- --
Additional paid-in capital 188,474 175,211
Accumulated deficit (10,547) (6,303)
----------- -----------
178,059 169,032
----------- -----------
$540,117 $480,361
----------- -----------
----------- -----------

</TABLE>

See accompanying notes to consolidated financial statements.
APARTMENT INVESTMENT AND  MANAGEMENT COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995 JUNE 30, 1996 JUNE 30, 1995
------------------ ------------------ ---------------- -----------------
<S> <C> <C> <C> <C>
RENTAL PROPERTY OPERATIONS
Rental and other property revenues $23,801 $18,573 $46,252 $36,939
Property operating expenses (9,449) (7,541) (18,153) (14,743)
Owned property management expense (679) (569) (1,339) (1,138)
------------------ ------------------ ---------------- -----------------
Income from property operations before depreciation 13,673 10,463 26,760 21,058
Depreciation (4,590) (3,634) (9,060) (7,283)
------------------ ------------------ ---------------- -----------------
Income from rental property operations 9,083 6,829 17,700 13,775
------------------ ------------------ ---------------- -----------------

SERVICE COMPANY BUSINESS
Management fees and other income 1,877 1,912 3,725 3,817
Management and other expenses (1,204) (1,157) (2,464) (2,493)
Corporate overhead allocation (147) 0 (296) 0
Amortization of management company goodwill (116) (115) (230) (195)
Other assets depreciation and amortization (44) (43) (92) (82)
------------------ ------------------ ---------------- -----------------
Income from service company business 366 597 643 1,047
Minority interests in service company business (16) 0 (2) 0
------------------ ------------------ ---------------- -----------------
Company's share of income from service company business 350 597 641 1,047
------------------ ------------------ ---------------- -----------------

GENERAL AND ADMINISTRATIVE EXPENSES (226) (447) (549) (1,093)

INTEREST EXPENSE (5,530) (2,809) (10,925) (5,313)

INTEREST INCOME 97 186 211 365
------------------ ------------------ ---------------- -----------------
INCOME BEFORE MINORITY INTEREST IN OPERATING
PARTNERSHIP 3,774 4,356 7,078 8,781
Minority interest in Operating Partnership (629) (409) (1,123) (829)
------------------ ------------------ ---------------- -----------------
NET INCOME $3,145 $3,947 $5,955 $7,952
------------------ ------------------ ---------------- -----------------
------------------ ------------------ ---------------- -----------------

Net income allocable to preferred stockholder $0 $1,836 $0 $3,672
------------------ ------------------ ---------------- -----------------
------------------ ------------------ ---------------- -----------------
Net income allocable to common stockholders $3,145 $2,111 $5,955 $4,280
------------------ ------------------ ---------------- -----------------
------------------ ------------------ ---------------- -----------------
Weighted average common shares and common
share equivalents outstanding 12,217 9,589 12,039 9,589
------------------ ------------------ ---------------- -----------------
------------------ ------------------ ---------------- -----------------
Net income per common share and common
share equivalent $0.26 $0.22 $0.49 $0.45
------------------ ------------------ ---------------- -----------------
------------------ ------------------ ---------------- -----------------
Dividends paid per common share $0.425 $0.415 $0.85 $0.83
------------------ ------------------ ---------------- -----------------
------------------ ------------------ ---------------- -----------------

</TABLE>

See accompanying notes to consolidated financial statements.
APARTMENT INVESTMENT AND  MANAGEMENT COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

<TABLE>
<CAPTION>

SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995
---------------- -----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 5,955 $ 7,952
---------------- -----------------
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 9,739 7,730
Minority interest in earnings 1,123 829
Changes in operating assets and liabilities:
(Increase) decrease in restricted cash 8,464 (3,281)
Increase in accounts receivable (293) (451)
Increase in other assets (439) (446)
Decrease in accounts receivable from affiliates -- 216
Increase (decrease) in accounts payable, accrued and other liabilities (45) (74)
Increase (decrease) in resident security deposits and prepaid rents 705 2
---------------- -----------------
Total adjustments 19,254 4,525
---------------- -----------------
Net cash provided by operating activities 25,209 12,477
---------------- -----------------

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of real estate (9,395) --
Capital replacements (2,385) (1,739)
Initial capital expenditures (1,630) (2,964)
Capital enhancements (129) --
Construction in progress (4,222) (64)
Increase in office equipment and leasehold improvements (313) (214)
---------------- -----------------
Net cash used in investing activities (18,074) (4,981)
---------------- -----------------

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from secured tax-exempt bond financing 58,010 --
Proceeds from secured notes payable -- 57,000
Payment of loan costs (2,301) (3,580)
Principal paydowns on secured tax-exempt bond financing (48,140) --
Principal paydowns on secured notes payable (1,919) (39,179)
Borrowings on secured notes payable 56 --
Net (paydowns) borrowings on secured line of credit (828) (14,200)
Payment of dividend on mandatorily redeemable 1994 Cumulative
Convertible Senior Preferred Stock -- (3,673)
Payment of common stock dividend (10,199) (7,958)
Payment of distributions to minority interest in Operating Partnership (1,633) (1,363)
Payment of additional offering costs related to 1995 common
stock offering (232) --
---------------- -----------------
Net cash used in financing activities (7,186) (12,953)
---------------- -----------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (51) (5,457)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,379 7,144
---------------- -----------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,328 $ 1,687
---------------- -----------------
---------------- -----------------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest $ 11,107 $ 4,670
---------------- -----------------
---------------- -----------------

</TABLE>
See accompanying notes to consolidated financial statements.
APARTMENT INVESTMENT AND  MANAGEMENT COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands except unit data)
(Unaudited)


NON CASH INVESTING AND FINANCING ACTIVITIES

In January 1996, the Company assumed $12,980 of notes payable secured by
first and second deeds of trust and issued 86,977 Operating Partnership Units
("OP Units") when the Company exercised its option to purchase the Peachtree
Park Apartments (consisting of 82,703 OP Units when the option was exercised
and 4,274 OP Units upon the completion of an audit of the property). The
total recorded value of the OP Units is $1,664.

In January 1996, the Company assumed $5,940 of secured notes payable for the
purchase of the Villa Ladera Apartments.

In April 1996, the Company issued 623,736 OP Units and 126,264 shares of
Class A common stock with a total recorded value of $15,219 when the Company
purchased the Sycamore Creek Apartments.

In April 1996, 173,641 OP Units with a recorded value of $3,397 were redeemed
in exchange for an equal number of shares of Class A Common Stock.

In May 1996, the Company assumed a $12,812 note payable secured by a first
deed of trust and issued 34,470 OP Units and 372,687 shares of Class A Common
Stock with a total recorded value of $8,347 when the Company purchased the
Somerset Village Apartments.

In June 1996, 1,718 OP Units were redeemed in exchange for an equal number of
shares of Class A Common Stock.


See accompanying notes to consolidated financial statements.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
Notes to Consolidated Financial Statements
June 30, 1996
(Unaudited)


NOTE 1 - ORGANIZATION

Apartment Investment and Management Company, a Maryland corporation
incorporated on January 10, 1994, (the "REIT" and, together with its
subsidiaries and operating affiliates, the "Company") acts as sole
general partner of AIMCO Properties, L.P. (the "Operating
Partnership"), through AIMCO-GP, Inc. and AIMCO-LP, Inc., wholly-owned
subsidiaries which hold all of the Company's partnership interests in,
and majority ownership of, the Operating Partnership.

On July 29, 1994, the Company completed its initial public offering
("IPO") of 9,075,000 shares of Class A Common Stock at $18.50 per
share, issued 966,000 shares of mandatorily redeemable 1994 Cumulative
Convertible Senior Preferred Stock ("Convertible Preferred Stock") and
513,514 unregistered shares of Class A Common Stock. Concurrently,
the Company engaged in a business combination and consummated a series
of related transactions which enabled the Company to continue and
expand the property management and related businesses of Property
Asset Management, L.L.C., Limited Liability Company and its affiliated
companies and PDI Realty Enterprises, Inc. (the "AIMCO Predecessors").
The AIMCO Predecessors received limited partnership interests in the
Operating Partnership ("OP Units") totaling 1,193,695 OP Units in
connection with these formation transactions.

Concurrent with the IPO, 650,000 shares of common stock held by four
of the Company's executive officers were reclassified as Class B
Common Stock. The Class B Common Stock is convertible into Class A
Common Stock, subject to certain conditions.

Since the IPO, the Company has completed an offering of an additional
2,706,423 shares of Common Stock at $19.125 per share, acquired 23
additional properties for 1,551,344 OP Units and 498,951 shares of
Class A Common Stock, repurchased the 966,000 shares of Convertible
Preferred Stock and 513,514 shares of unregistered Common Stock,
converted 65,000 shares of Class B Common Stock to 65,000 shares of
Class A Common Stock, redeemed 176,504 OP Units in exchange for an
equal number of shares of Class A Common Stock and financed $213.4
million of long-term, fixed rate, fully amortizing debt.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY


Notes to Consolidated Financial Statements


NOTE 1 - ORGANIZATION (CONTINUED)

At June 30, 1996, 12,521,878 shares of Class A Common Stock and
2,568,535 OP Units were outstanding, for a combined total of
15,090,413 common shares and OP Units.

NOTE 2 - BASIS OF PRESENTATION

The accompanying consolidated financial statements include the
consolidated accounts of the Company, the Operating Partnership and
its subsidiaries.

The unaudited consolidated financial statements of the Company as of
June 30, 1996 and for the three and six months ended June 30, 1996 and
1995 have been prepared in accordance with generally accepted
accounting principles for interim financial information. Accordingly,
they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments considered
necessary for a fair presentation have been included and all such
adjustments are of a recurring nature. The consolidated financial
statements should be read in conjunction with the audited consolidated
financial statements and notes thereto included in the Annual Report
on Form 10-K for the year ended December 31, 1995. It should be
understood that accounting measurements at interim dates inherently
involve greater reliance on estimates than at year end. The results
of operations for the interim periods presented are not necessarily
indicative of the results for the entire year.

In the second quarter of 1996, the Company adopted Emerging Task Force
(EITF) Issue Number 95-6 "Accounting by a Real Estate Investment Trust
for an Investment in a Service Corporation". The Company reports the
operations of the service company business on a consolidated basis
after adoption of EITF 95-6. Prior to the issuance of EITF 95-6, the
Company reported the service company business on the equity method.
The adoption of EITF 95-6 has no impact on net income, but does
increase management fees and other income, management and other
expenses, amortization of management company goodwill and depreciation
of non-real estate assets. The Company has restated the balance sheet
as of December 31, 1995 to reflect the retroactive application of the
change.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

Notes to Consolidated Financial Statements


NOTE 3- REAL ESTATE

In the first quarter of 1996, the Company exercised its option to
acquire the ownership interest of the Company's chairman in Peachtree
Park, a 295 apartment unit property located in Atlanta, Georgia. The
option was acquired in conjunction with the IPO in July 1994. The
Company issued 86,977 OP Units with a recorded value of $1,664,000,
paid $287,000 in cash and assumed $12,980,000 of indebtedness for the
total purchase price of $14,931,000. In addition, the Company
acquired the Villa Ladera Apartments, a 280 apartment unit property
located in Albuquerque, New Mexico for a purchase price of
$11,825,000. The consideration consisted of $5,885,000 in cash and
the assumption of $5,940,000 of indebtedness secured by a first trust
deed. The Company also purchased a parcel of vacant land adjacent to
the Villa Ladera Apartments for $425,000 in cash.

In the second quarter of 1996, the Company acquired the Sycamore Creek
Apartments, a 336 apartment unit property located in Tustin,
California for a purchase price of $16,669,000. The consideration
consisted of $1,450,000 in cash and the issuance of 623,736 OP Units
and 126,264 shares of common stock with an aggregate recorded value of
$15,219,000. The Company also acquired the Somerset Village
Apartments, a 486 apartment unit property located in Salt Lake City,
Utah for a purchase price of $22,068,000. The consideration consisted
of $900,000 in cash, the issuance of 34,470 OP Units and 372,687
shares of common stock with an aggregate recorded value of $8,347,000
and the assumption of $12,812,000 of indebtedness secured by a first
trust deed.

NOTE 4 - RESTRICTED CASH

In connection with the completion of the tax-exempt bond offerings in
June 1996 and the repayment of the existing tax-exempt bonds,
$10,000,000 in cash collateral held by the previous bondholder was
released to the Company.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

Notes to Consolidated Financial Statements


NOTE 5 - SECURED LONG-TERM NOTES PAYABLE

In January 1996, the Company assumed $12,980,000 in secured notes
payable in connection with the purchase of Peachtree Park. The
Peachtree Park indebtedness includes a $8,730,000 first mortgage
loan which bears interest at 7.1% and matures in May 1997 and a
$4,250,000 second participating mortgage loan, maturing May 1999,
which bears interest at a fixed rate of 10% plus 50% of the
property's available cash flow after debt service and payment of
a preferred return to the Company of $100,000 per year. In January
1996, the Company also assumed a $5,940,000 secured note payable
with an interest rate of 7.125%, maturing in December 2016, in
connection with the purchase of the Villa Ladera apartments.

In May 1996, the Company assumed $12,812,000 in notes payable secured
by a first deed of trust in connection with the purchase of Somerset
Village. The indebtedness bears interest at 8.125% and matures in
September 1999. The Company expects to refinance the debt at or prior
to its maturity.

NOTE 6 - SECURED LONG-TERM TAX-EXEMPT BOND FINANCING

In June 1996, the Company completed two tax-exempt bond offerings
totaling $58,010,000 on five Florida properties. Proceeds from the
bond offerings were used to repay the variable rate $48,140,000 tax-
exempt bonds securing four Florida properties and the $9,870,000 tax-
exempt revenue bonds which were purchased in connection with the
acquisition of a Florida property in December 1995. The bond
offerings include $48,140,000 in fully amortizing, 20 year mortgage
loans with an effective interest rate of 7.2% and a $9,870,000 fully
amortizing, 20 year mortgage loan with an effective interest rate of
7.3%. In addition to the five Florida properties, five other
properties were pledged as additional collateral to secure the
financings.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

Notes to Consolidated Financial Statements


NOTE 7 - SECURED SHORT-TERM FINANCING

During the six months ended June 30, 1996, the Company borrowed
$18,900,000 under its Credit Facility to fund the cash portion of the
purchase prices of the properties acquired during the period and the
construction in progress and renovation at certain properties owned by
the Company. In June 1996, the proceeds from the tax-exempt bond
offerings and the release of the restricted cash collateral were used
to paydown the outstanding balance on the line of credit. The balance
outstanding on the line of credit at June 30, 1996 was $3,172,000.


NOTE 8 - REGISTRATION STATEMENTS

In February 1996, the Company filed a registration statement with the
Securities and Exchange Commission relating to the resale of certain
shares of Class A Common Stock of the Company which may be issued in
exchange for OP Units which may be tendered for redemption by OP
Unitholders. The registration statement relates to OP Units issued
from inception through January 15, 1996 with the exception of the OP
Units held by executive officers of the Company. The registration
statement was declared effective by the Securities and Exchange
Commission in April 1996.

In May 1996, the Company filed a registration statement relating to
the resale of the 126,264 shares of Class A Common Stock issued in
connection with the acquisition of the Sycamore Creek Apartments. The
Company also filed registration statements for 150,000 shares of
Class A Common Stock relating to The 1994 Stock Option Plan of
Apartment Investment and Management Company and Affiliates, 500,000
shares of Class A Common Stock relating the 1996 Stock Award and
Incentive Plan and 1,000,000 shares of Class A Common Stock relating
to the Dividend Reinvestment and Share Purchase Plan. The
registration statements were declared effective in May 1996.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

Notes to Consolidated Financial Statements


NOTE 9 - SUBSEQUENT EVENTS

REPAYMENT OF SECOND PARTICIPATING MORTGAGE LOAN
On July 1, 1996, the Company repaid the second participating mortgage
loan assumed in connection with the purchase of the Peachtree Park
Apartments in January 1996 using borrowings under its line of credit.
The repayment included $4,250,000 in outstanding principal and
$2,654,000 in repayment of the participation interest due in
accordance with the loan. The $6,904,000 repayment consisted of
$5,736,000 in cash and the issuance of 63,152 OP Units with a recorded
value of $1,168,000.

DIVIDEND DECLARED
On July 25, 1996, the Board of Directors declared a cash dividend of
$0.425 per share of Class A Common Stock for the quarter ended June
30, 1996, payable on August 14, 1996 to stockholders of record on
August 7, 1996.

REPURCHASE OF COMMON STOCK
On July 25, 1996, the Company repurchased 126,264 shares of common
stock issued in connection with the purchase of the Sycamore Creek
Apartments in April 1996. The shares were purchased by the Company at
$20.50 per share and are currently held as treasury stock.

REGISTRATION STATEMENT
On July 26, 1996, the Company filed a registration statement relating
to the resale of the 372,688 shares of Class A Common Stock issued in
connection with the acquisition of the Somerset Village Apartments.
The registration statement was declared effective in August 1996.

CONTRACT TO ACQUIRE GENERAL PARTNERSHIP INTERESTS AND REAL PROPERTY
On July 29, 1996, the Company announced that it had entered into a
definitive contract to acquire entities affiliated with J.W. English,
a Houston, Texas based real estate syndicator and developer. The
acquisition includes the general partnership interests in 31 limited
partnerships holding 22 multifamily apartment properties aggregating
5,230 apartment units, primarily in Houston, Texas; title to a 104
unit apartment property in Houston; certain assets of J.W. English
Management Company which provides management services to the apartment
properties; and other real estate interests related to the J.W.
English Companies' operations in Houston, for an aggregate price of
$23.1 million, payable $15.2 million in
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

Notes to Consolidated Financial Statements

NOTE 9 - SUBSEQUENT EVENTS (CONTINUED)

OP Units and $7.9 million in cash. In addition, AIMCO expects to
incur an additional $1.1 million in transaction costs. The Company
has received an option, under certain circumstances, to acquire the
individual properties for specified prices approximating $155 million.
Prior to closing, the Company intends to make separate offers to
the limited partners of the various partnerships to acquire their
limited partnership interests for cash or OP Units. The limited
partners will be given the option of continuing as limited partners in
the existing partnerships. J.W. English and entities affiliated with
them have agreed to tender all limited partnership interests owned by
them in connection with such offers. Commencement of the tender
offers is subject to receipt of a fairness opinion from a national
investment banking firm.

SALE OF FOUR TEXAS PROPERTIES
On August 1, 1996, the Company sold four of its Texas properties (the
Dakota Apartments, Sterling Point Apartments and Woodcreek Apartments
in Dallas and the Ridgmar Park Apartments in Fort Worth) in a single
transaction for net cash proceeds totaling $17.3 million. The net
proceeds were used to paydown the balance outstanding under the
Company's line of credit of $9.2 million and to provide funds for
working capital and investment purposes. The properties were
acquired as part of a portfolio in conjunction with the Company's
initial public offering in July, 1994. The Company recognized a
modest gain on the sale.

CREDIT FACILITY
On August 13, 1996, the Company increased its revolving line of credit
with Bank of America NT&SA to $50 million from $40 million, reduced
its interest rate to LIBOR plus 1.625% from LIBOR plus 1.75% and
reduced its unused commitment fee to 0.125% from 0.375%. The
revolving line of credit has an initial term of two years and, subject
to certain customary conditions, the outstanding balance may be
converted to a three year term loan. The Company utilizes the line of
credit for general corporate purposes and to fund investments on an
interim basis.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.

OVERVIEW

The Company is a real estate investment trust which holds a geographically
diversified portfolio of apartments, primarily serving the middle market. As of
June 30, 1996, the Company owned 60 multifamily apartment properties containing
15,850 apartment units. In addition to its owned properties, AIMCO managed
3,075 apartment units in 14 properties for affiliates and 15,627 apartment units
in 117 properties for nearly 80 third party-owners, bringing the total managed
portfolio to 191 multifamily apartment properties containing 34,552 apartment
units located in the Southeastern, Southcentral and Southwestern areas of the
United States. Of the 60 properties owned at June 30, 1996, four properties
with 1,265 apartment units were sold on August 1, 1996.

The following discussion and analysis of the results of operations and
financial condition of the Company should be read in conjunction with the
Consolidated Financial Statements and notes thereto.


RESULTS OF OPERATIONS

COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 1996 TO THE SIX MONTHS ENDED JUNE
30, 1995

The Company recognized net income of $5,955,000 for the six months ended
June 30, 1996. For the six months ended June 30, 1995, the Company recognized
net income of $7,952,000, of which $3,672,000 was allocable to the holder of the
Convertible Preferred Stock and $4,280,000 was allocable to the Class A common
stockholders. The increase in net income in 1996 was primarily the result of
the acquisition of twelve additional properties from December 1995 to May 1996
offset by increased interest expense associated with debt which was financed in
June and September 1995. These factors are discussed in more detail in the
following paragraphs.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

RENTAL PROPERTY OPERATIONS

Rental and other property revenues from the Company's 60 apartment
properties totaled $46,252,000 for the six months ended June 30, 1996 consisting
of $37,126,000 for the 46 "same store" properties, $789,000 for two properties
owned in 1995 and 1996 but for which operations are not comparable and
$8,337,000 for the 12 properties acquired from December 1995 to May 1996.
Property operations are not comparable for two properties owned during both the
first six months of 1995 and the first six months of 1996 due to the revision
of the rental structure of the properties in the third quarter of 1995 in
conjunction with the completion of the Company's tax restructuring. The rental
and other revenue for the six months ended June 30, 1996 for the 46 "same store"
properties of $37,126,000 compared to $35,785,000 for the six months ended June
30, 1995, representing an increase of $1,341,000 or 3.7%. Average monthly rent
per occupied unit for these 46 properties at June 30, 1996 and 1995 was $521 and
$501, respectively, an increase of 4.0%. The increase results from higher
rental rates charged upon renewal of existing tenant leases or upon the
execution of new tenant leases.

Operating expenses, consisting of on-site payroll costs, utilities (net of
reimbursements received from tenants), contract services, turnover costs,
repairs and maintenance, advertising and marketing and taxes and insurance
totaled $18,153,000 from 60 properties for the six months ended June 30, 1996,
consisting of $14,609,000 for the 46 "same store" properties, $408,000 for the
two non-comparable properties and $3,136,000 for the 12 properties acquired
from December 1995 to May 1996. Operating expenses for the 46 properties of
$14,609,000 for the six months ended June 30, 1996 compare to $14,121,000 for
the same period in 1995, reflecting an increase of $488,000, or 3.5%, primarily
in utility, turnover, payroll, taxes and insurance costs.

Owned property management expenses, representing the costs of managing the
Company's properties, totaled $1,339,000 for 60 properties for the six months
ended June 30, 1996, consisting of $1,059,000 for the 46 "same store"
properties, $21,000 for the two non-comparable properties and $259,000 for the
properties purchased from December 1995 to May 1996. The owned property
management expenses for the six months ended June 30, 1995 totaled $1,138,000,
consisting of $1,116,000 for the 46 "same store" properties and $22,000 for the
two non-comparable properties.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

PROPERTY MANAGEMENT

The Company's share of income from the service company business was
$641,000 for the six months ended June 30, 1996 compared to $1,047,000 for the
six months ended June 30, 1995. Management fees and other income totaled
$3,725,000 for the six months ended June 30, 1996 compared to $3,817,000 for the
six months ended June 30, 1995, reflecting a decrease of $92,000, or 2.4%.
Management and other expenses totaled $2,464,000 for the six months ended June
30, 1995 compared to $2,493,000 for the six months ended June 30, 1995,
reflecting a decrease of $29,000, or 1.2%. Each major source of revenue and
expense before amortization of management company goodwill, corporate overhead
allocations, depreciation and amortization and minority interest are described
below.

SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995
---------------- ----------------

Properties managed for third parties
and affiliates
Management fees and other income $2,156,000 $2,274,000
Management and other expenses (1,961,000) (1,839,000)
---------- ----------
195,000 435,000
---------- ----------
Commercial asset management
Management and other income 595,000 801,000
Management and other expenses (206,000) (285,000)
---------- ----------
389,000 516,000
---------- ----------
Reinsurance operations
Revenues 771,000 526,000
Expenses (79,000) (230,000)
---------- ----------
692,000 296,000
---------- ----------
Other
Revenues 203,000 216,000
Expenses (218,000) (139,000)
---------- ----------
(15,000) 77,000
---------- ----------
$1,261,000 $1,324,000
---------- ----------
---------- ----------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

Net income from the management of properties for third parties and
affiliates was $195,000 for the six months ended June 30, 1996, compared to
$435,000 for the six months ended June 30, 1995, a decrease of $240,000, or
55.2%. The decrease in net income is due a decrease in management fees and
other income of $118,000, or 5.2% due to the acquisition by the Company during
December 1995 and the first six months of 1996 of seven properties previously
managed for third parties and affiliates. Management and other expenses
increased by $122,000, or 6.6% due to increased payroll costs partially offset
by an increase of $202,000 in the allocation of management costs to the
Company's owned properties.

Net income from commercial asset management was $389,000 for the six months
ended June 30, 1996 compared to $516,000 for the same period in 1995, a decrease
of $127,000, or 24.6% as a result of a reduction in the number of commercial
properties under management. The decline in revenues of $206,000, or 25.7% from
commercial asset management was partially offset by a decrease in related
management and other expenses of $79,000, or 27.7%, primarily due to a
reduction in personnel.

Net income from the reinsurance operations increased by $396,000, or 133.8%
due to increased premiums collected from a larger work force, improved loss
experience and the closure of claims for less than the amounts previously
reserved.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses totaled $549,000 for the six months
ended June 30, 1996 compared to $1,093,000 for the same period in 1995. The
amount presented for the six months in 1996 included $561,000 for payroll,
overhead and other costs associated with operating a public company and $284,000
for payroll and other costs incurred in the development of new business offset
by a corporate overhead allocation of $296,000 to the service company business.
The amount presented for the six months in 1995 included $691,000 for payroll,
overhead and other costs associated with operating a public company, and
$402,000 for payroll and other costs incurred in the development of new
business. The decrease in general and administrative expenses of $544,000, or
49.8% in 1996 is attributable to fewer personnel, a decrease in taxes and the
allocation of corporate overhead to the service companies. No corporate
overhead allocation was recorded for the six months ended June 30, 1995.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

INTEREST EXPENSE

Interest expense totaled $10,925,000 for the six months ended June 30, 1996
compared to $5,313,000 for the six months ended June 30, 1995. Interest
expense, which includes amortization of deferred financing costs and unused
commitment fees associated with the Company's Credit Facility, increased by
$5,612,000, or 105.6% in 1996. The increase was due primarily to an increase of
$5,907,000 in interest expense on secured notes payable from: (1) $57 million
borrowed in June 1995 to repay certain floating rate debt and amounts borrowed
under the Credit Facility; (2) $98 million borrowed in September 1995 to
repurchase all 966,000 outstanding shares of Convertible Preferred Stock and
513,514 shares of unregistered Class A Common Stock; (3) $25 million borrowed in
connection with the purchase of five properties in December 1995; and (4) $37
million assumed in connection with the purchase of five properties in December
1995 and the first six months of 1996. In addition, interest expense,
amortization of deferred financing costs and unused commitment fees on the
Credit Facility was $604,000 for the six months ended June 30, 1996 compared to
$899,000 for the six months ended June 30, 1995, a decrease of $295,000, or
32.8% as a result of lower amounts outstanding under the Credit Facility in
1996.

COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 1996 TO THE THREE MONTHS ENDED
JUNE 30, 1995

The Company recognized net income of $3,145,000 for the three months ended
June 30, 1996. For the three months ended June 30, 1995, the Company recognized
net income of $3,947,000, of which $1,836,000 was allocable to the holder of the
Convertible Preferred Stock and $2,111,000 was allocable to the Class A common
stockholders. The increase in net income in 1996 was primarily the result of
the acquisition of twelve additional properties in December 1995 and the first
six months of 1996 offset by increased interest expense associated with debt
which was financed in June and September 1995. These factors are discussed in
more detail in the following paragraphs.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

RENTAL PROPERTY OPERATIONS

Rental and other property revenues from the Company's 60 apartment
properties totaled $23,801,000 for the three months ended June 30, 1996,
consisting of $18,670,000 for the 46 "same store" properties, $426,000 for the
two non-comparable properties and $4,705,000 for the 12 properties acquired from
December 1995 to May 1996. Rental and other income for the 46 "same store"
properties of $18,670,000 for the three months ended June 30, 1996 compare to
$17,990,000 for the three months ended June 30, 1995, representing an increase
of $680,000, or 3.8%.

Operating expenses, consisting of on-site payroll costs, utilities (net of
reimbursements received from tenants), contract services, turnover costs,
repairs and maintenance, advertising and marketing and taxes and insurance
totaled $9,449,000 from 60 properties for the three months ended June 30, 1996,
consisting of $7,482,000 for the 46 "same store" properties, $210,000 for the
two non-comparable properties and $1,757,000 for the 12 properties acquired from
December 1995 to May 1996. Operating expenses for the "same store" properties of
$7,482,000 for the three months ended June 30, 1996 compare to $7,215,000 for
the same period in 1995, reflecting an increase of $267,000, or 3.7%, primarily
in utility and turnover costs.

Owned property management expenses, representing the costs of managing the
Company's properties, totaled $679,000 for 60 properties for the three months
ended June 30, 1996, consisting of $530,000 for the 46 "same store" properties,
$10,000 for the non-comparable properties and $139,000 for the properties
purchased from December 1995 to May 1996. The owned property management
expenses for the three months ended June 30, 1995 totaled $569,000, consisting
of $558,000 for the 46 "same store' properties and $11,000 for the two non-
comparable properties.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

PROPERTY MANAGEMENT

The Company's share of income from the service company business was
$350,000 for the three months ended June 30, 1996 compared to $597,000 for the
three months ended June 30, 1995. Management fees and other income totaled
$1,877,000 for the three months ended June 30, 1996 compared to $1,912,000 for
the three months ended June 30, 1995, reflecting a decrease of $35,000, or 1.8%.
Management and other expenses totaled $1,204,000 for the three months ended June
30, 1995 compared to $1,157,000 for the three months ended June 30, 1995,
reflecting a decrease of $47,000, or 4.1%. Each major source of revenue and
expense before amortization of management company goodwill, corporate overhead
allocations, depreciation and amortization and minority interest are described
below.

THREE MONTHS ENDED THREE MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995
------------------ ------------------

Properties managed for third parties
and affiliates
Management fees and other income $1,071,000 $1,180,000
Management and other expenses (989,000) (877,000)
---------- ----------
82,000 303,000
---------- ----------
Commercial asset management
Management and other income 232,000 376,000
Management and other expenses (111,000) (131,000)
---------- ----------
121,000 245,000
---------- ----------
Reinsurance operations
Revenues 463,000 240,000
Expenses (30,000) (89,000)
---------- ----------
433,000 151,000
---------- ----------
Other
Revenues 111,000 116,000
Expenses (74,000) (60,000)
---------- ----------
37,000 56,000
---------- ----------
$ 673,000 $ 755,000
---------- ----------
---------- ----------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

Net income from the management of properties for third parties and
affiliates was $82,000 for the three months ended June 30, 1996, compared to
$303,000 for the three months ended June 30, 1995, a decrease of $221,000, or
72.9%. The decrease in net income is primarily due the acquisition by the
Company during December 1995 and the first six months of 1996 of seven
properties previously managed for third parties and affiliates. In addition,
management and other expenses increased due to higher payroll costs partially
offset by an increase of $111,000 in the allocation of management costs to the
Company's owned properties.

Net income from commercial asset management was $121,000 for the three
months ended June 30, 1996 compared to $245,000 for the same period in 1995, a
decrease of $124,000, or 50.6% as a result of a reduction in the number of
commercial properties under management. The decline in revenues of $144,000, or
38.3% from commercial asset management was partially offset by a decrease in
related management and other expenses of $20,000, or 15.3%, primarily due to a
reduction in personnel.

Net income from the reinsurance operations increased by $282,000, or 186.8%
due to increased premiums collected from a larger work force, improved loss
experience and the closure of claims for less than the amounts previously
reserved.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses totaled $226,000 for the three months
ended June 30, 1996 compared to $447,000 for the same period in 1995. The
amount presented for the three months in 1996 included $284,000 for payroll,
overhead and other costs associated with operating a public company and $89,000
for payroll and other costs incurred in the development of new business offset
by a corporate overhead allocation of $147,000 to the service company business.
The amount presented for the three months in 1995 included $333,000 for payroll,
overhead and other costs associated with operating a public company, and
$114,000 for payroll and other costs incurred in the development of new
business. The decrease in general and administrative expenses of $221,000, or
49.4% in 1996 is attributable to fewer personnel, a decrease in taxes and the
allocation of corporate overhead to the service companies. No allocation of
corporate overhead was recorded for the three months ended June 30, 1995.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

INTEREST EXPENSE

Interest expense totaled $5,530,000 for the three months ended June 30,
1996 compared to $2,809,000 for the three months ended June 30, 1995. Interest
expense, which includes amortization of deferred financing costs and unused
commitment fees associated with the Company's Credit Facility, increased by
$2,721,000, or 96.9% in 1996. The increase was due primarily to increased
interest expense on secured notes payable from financings completed in June 1995
and September 1995 and borrowings made in connection with the purchase of eight
properties from December to May 1996.

LIQUIDITY AND CAPITAL RESOURCES

The Company's principal demands for liquidity include normal operating
activities, payments of principal and interest on outstanding debt, capital
improvements, acquisitions of or investments in properties, dividends paid to
its stockholders and distributions paid to minority limited partners in the
Operating Partnership. The Company considers its cash provided by operating
activities to be adequate to meet normal operating requirements, principal and
interest payments on outstanding debt, dividends to stockholders and
distributions to minority limited partners. In the six months ended June 30,
1996, $2,385,000 in capital replacements, $1,630,000 in initial capital
expenditures and $129,000 in capital enhancements were spent. In addition, in
the six months ended June 30, 1996, the Company incurred $4,222,000 in costs
related to the construction and renovation of three properties. These
expenditures were funded by borrowings under the Credit Facility, working
capital reserves and net cash provided by operating activities. The Company
expects to incur an additional $2,970,000 in capital replacements (including
$773,000 of remaining unspent reserves for capital replacements) during the
balance of 1996 and $7,549,000 in initial capital expenditures during the
next twelve months, which will be funded by cash from operating activities
and borrowings under the Credit Facility.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)

On August 13, 1996, the Company increased its revolving line of credit with
Bank of America NT&SA to $50 million from $40 million, reduced its interest rate
to LIBOR plus 1.625% from LIBOR plus 1.75% and reduced its unused commitment fee
to 0.125% from 0.375%. The revolving line of credit has an initial term of two
years and, subject to certain customary conditions, the outstanding balance may
be converted to a three year term loan. The Company utilizes the line of credit
for general corporate purposes and to fund investments on an interim basis.

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, Operating Partnership units or
equity securities and cash generated from operations. On October 18, 1995, the
Company filed a shelf registration statement with the Securities and Exchange
Commission with respect to an aggregate of $200 million of debt and equity
securities. The amount remaining under the shelf registration is $148.2
million.

As of June 30, 1996, the Company had outstanding indebtedness totaling
$307.6 million including $203.3 million of secured notes payable, $76.1 million
of secured tax-exempt debt, a secured one-year floating rate bridge loan of $25
million, and $3.2 million outstanding under its Credit Facility. The Company's
outstanding debt is secured by substantially all of the properties owned by the
Company. The weighted average interest rate on the Company's long-term
outstanding debt was 7.7% with a weighted average maturity of 11 years.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

CONTINGENCIES

The Company has filed a request with the IRS for a private letter ruling
regarding the characterization of certain advances paid to the service company
business subsidiaries with respect to property management services provided to
properties managed by the Company for third parties and affiliates. The Company
believes and is seeking a determination that such amounts are not includable in
gross income for purposes of the REIT qualification tests for the Company's 1994
and 1995 taxable years. Although the Company intends to vigorously dispute any
determination that such amounts are includable in gross income, such a
determination, if ultimately upheld, would result in potential tax liability to
the Company of up to $1.4 million, plus interest. A determination by the IRS
that the advances paid to the service company business subsidiaries in 1994 and
1995 are includable in gross income will not affect the Company's status as a
REIT.

Certain of the Company's properties are, and some of the properties managed
by the Company for others may be, located on or near properties that have
contained underground storage tanks or on which activities have occurred which
could have released hazardous substances into the soil or groundwater. There
can be no assurances that such hazardous substances have not been released or
have not migrated, or in the future will not be released or will not migrate
onto the properties. In addition, the Company's Montecito property in Austin,
Texas, is located adjacent to, and may be partially on, land that was used as a
landfill. Low levels of methane and other landfill gas have been detected at
Montecito. The remediation of the landfill gas is now substantially complete.
The environmental authorities have preliminarily approved the methane gas
remediation efforts. Final approval of the site and the remediation process is
contingent upon the results of continued methane gas monitors to confirm the
effectiveness of the remediation efforts. Should further actionable levels of
methane gas be detected, a proposed contingent plan of passive methane gas
venting may be implemented. The Company believes the costs of such further
limited action, if any, will not be material. Testing has also been conducted
on Montecito to determine whether, and to what extent, groundwater has been
impacted. Test reports have indicated that the groundwater is not contaminated
at actionable levels.
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

FUNDS FROM OPERATIONS AND CASH EARNED FOR SHAREHOLDERS

The Company measures its economic profitability based on Cash Earned For
Shareholders ("CEFS"). The Company defines CEFS as income before minority
interest based on generally accepted accounting principles plus real estate
depreciation and amortization of management company goodwill less any
preferred stock dividend payments ("Funds From Operations" or "FFO") less a
minimum annual provision for capital replacements of $300 per apartment unit.
FFO computations conform to the National Association of Real Estate
Investment Trusts' ("NAREIT") definition adjusted to add back amortization of
management company goodwill and deduct payment of dividends on preferred
stock.

FFO and CEFS do not represent cash generated from operating activities in
accordance with generally accepted accounting principles and therefore should
not be considered an alternative to net income as an indication of the Company's
performance or to net cash flows from operating activities as determined by
generally accepted accounting principles as a measure of liquidity and is not
necessarily indicative of cash available to fund cash needs.

For the three and six months ended June 30, 1996 and 1995, FFO and CEFS are
as follows:

<TABLE>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, 1996 JUNE 30, 1995 JUNE 30, 1996 JUNE 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net Income before minority interest
in Operating Partnership $ 3,774 $ 4,356 $ 7,078 $ 8,781
Owned properties depreciation 4,590 3,634 9,060 7,283
Amortization of management
company goodwill 116 115 230 195
Preferred stock dividend 0 (1,836) 0 (3,672)
------- ------- ------- -------
Funds From Operations 8,480 6,269 16,368 12,587
Capital Replacements (1,119) (939) (2,239) (1,877)
------- ------- ------- -------
Cash Earned For Shareholders $ 7,361 $ 5,330 $14,129 $10,710
------- ------- ------- -------
------- ------- ------- -------
Weighted average common shares,
common share equivalents and OP
Units outstanding 14,660 11,446 14.303 11,446
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

INFLATION

Substantially all of the leases at the Company's apartment properties are
for a period of one year 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 revenues.
Item 6.   EXHIBITS AND REPORTS ON FORM 8-K.

(a) The following exhibits are filed with this report:

Exhibit
Number Description
- ------- -----------
3.1 Restated Articles of Incorporation of the Company
(incorporated by reference from the Company's Annual Report on
Form 10-K for fiscal year 1995).
3.2 Bylaws of the Company (incorporated by reference from the
Company's Annual Report on Form 10-K for fiscal year 1995).
10.1 Acquisition Agreement, dated as of April 30, 1996, by and
among the Company, AIMCO Somerset, Inc., AIMCO Properties,
L.P., Somerset REIT, Inc., RJ Holdings, Ltd., Somerset PAM
Partnership and RJ Equities, Inc.
10.2 Shareholder Registration Rights Agreement, dated as of May 31,
1996, by and between the Company and Somerset REIT, Inc.
10.3 Unitholder Registration Rights Agreement, dated as of May 31,
1996, by and among the Company and the investors listed on
Schedule A thereto
10.4 Amended and Restated Promissory Note, dated September 1,
1993, in the original principal amount of $13,200,000 by
Somerset Utah, L.P. in favor of Brazos Partners, L.P.
10.5 Acquisition and Contribution Agreement and Joint Escrow
Instructions, dated as of April 19, 1996 by and among the
Company, AIMCO Properties, L.P. and Thoner-Pankey
10.6 Registration Agreement, dated as of April 19, 1996, by and
among the Company and the investors listed on Schedule A
thereto (OP Units)
10.7 Registration Agreement, dated as of April 19, 1996, by and
among the Company and the investors listed on Schedule A
thereto (Class A Common Stock)
27.1 Financial Data Schedule




(b) Reports on Form 8-K for the quarter ended June 30, 1996:

None
EXHIBIT INDEX TO FORM 10-Q

<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Description Page
- ------- ----------- -------------
<S> <C> <C>
3.1 Restated Articles of Incorporation of the Company
(incorporated by reference from the Company's Annual Report on
Form 10-K for fiscal year 1995).

3.2 Bylaws of the Company (incorporated by reference from the
Company's Annual Report on Form 10-K for fiscal year 1995).

10.1 Acquisition Agreement, dated as of April 30, 1996, by and
among the Company, AIMCO Somerset, Inc., AIMCO Properties,
L.P., Somerset REIT, Inc., RJ Holdings, Ltd., Somerset PAM
Partnership and RJ Equities, Inc.

10.2 Shareholder Registration Rights Agreement, dated as of May 31,
1996, by and between the Company and Somerset REIT, Inc.

10.3 Unitholder Registration Rights Agreement, dated as of May 31,
1996, by and among the Company and the investors listed on
Schedule A thereto

10.4 Amended and Restated Promissory Note, dated September 1,
1993, in the original principal amount of $13,200,000 by
Somerset Utah, L.P. in favor of Brazos Partners, L.P.

10.5 Acquisition and Contribution Agreement and Joint Escrow
Instructions, dated as of April 19, 1996 by and among the
Company, AIMCO Properties, L.P. and Thoner-Pankey

10.6 Registration Agreement, dated as of April 19, 1996, by and
among the Company and the investors listed on Schedule A
thereto (OP Units)

10.7 Registration Agreement, dated as of April 19, 1996, by and
among the Company and the investors listed on Schedule A
thereto (Class A Common Stock)

27.1 Financial Data Schedule

</TABLE>
APARTMENT INVESTMENT AND MANAGEMENT COMPANY

SIGNATURES

Pursuant to the requirements 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.

REGISTRANT:

APARTMENT INVESTMENT AND
MANAGEMENT COMPANY



Date: August 14, 1996 /s/ Leeann Morein
-----------------------
Leeann Morein
Senior Vice President and
Chief Financial Officer
(duly authorized officer and principal financial officer)

/s/ Patricia K. Heath
-----------------------
Patricia K. Heath
Vice President and
Chief Accounting Officer
(principal accounting officer)