AIMCO 4th Quarter 2003

Denver, ColoradoFebruary 12, 2004

Apartment Investment and Management Company
Announces Fourth Quarter 2003 Results

SUMMARY FINANCIAL RESULTS    Apartment Investment and Management Company ("Aimco") (NYSE:AIV) announced fourth quarter 2003 results including:

Net Income was $37.2 million, compared with $6.6 million in the fourth quarter 2002. Earnings (loss) per share (EPS) were $0.19 on a diluted basis, compared with $(0.17) in the same period last year, based on Net Income (loss) attributable to common stockholders.

Funds from Operations (diluted) (FFO; a non-GAAP financial measure defined in the Glossary in Supplemental Information (the "Glossary")) were $67.9 million, or $0.72 per share compared with $101.6 million, or $1.01 per share, in the fourth quarter 2002. These FFO results were calculated in accordance with the definition of FFO prescribed by the National Association of Real Estate Investment Trusts ("NAREIT"). As a result, fourth quarter 2003 FFO was reduced by $4.6 million for impairment charges on real estate assets sold or held for sale. Excluding these impairment charges, fourth quarter 2003 FFO would have been $72.8 million, or $0.76 per share, within Aimco guidance and meeting First Call consensus.

Adjusted Funds from Operations (diluted) (AFFO; a non-GAAP financial measure defined in the Glossary) were $56.0 million, or $0.58 per share, within Aimco guidance, compared with $80.8 million, or $0.83 per share, in the fourth quarter 2002.

DILUTED PER SHARE RESULTS

Contact: Investor Relations 303.691.4350, Investor@Aimco.com
Jennifer Martin, Vice PresidentInvestor Relations 303.691.4440

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Full year 2003 FFO results include charges of $7.6 million in issuance costs associated with preferred share redemptions in the second and third quarters. Aimco gave effect to these issuance costs in accordance with the SEC's July 31, 2003 interpretation of the Emerging Issues Task Force Topic D-42 ("Topic D-42"). In addition, fourth quarter and full year 2003 results include impairment losses on real estate assets sold or held for sale of $4.6 million and $13.1 million, respectively, that Aimco historically added back in its calculation of FFO.

As a result, these charges reduced FFO (diluted) per share by $4.6 million and $20.7 million for the fourth quarter and full year 2003, respectively. These charges have been added back in the calculation of AFFO.

PER SHARE IMPACT OF IMPAIRMENT AND TOPIC D-42 CHARGES ON DILUTED FFO

Management Comments

Comments from Chairman and Chief Executive Officer, Terry Considine:

"Apartment markets remain quite weak. Some of this weakness is seasonal; some reflects increasing competition from new supply, single family as well as multi-family; and some reflects the continued slow pace of recovery in national employment. Aimco remains focused on improving operations, by example, the recent promotion of Jeff Adler to lead Property Operations; strengthening financial control, by example, the recent recruitment of Tom Herzog from GE Real Estate to serve as Chief Accounting Officer; and by active portfolio management, selling weaker properties in weaker

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markets to invest in such better assets as The Palazzo, in the mid-Wilshire district of Los Angeles."

Dividends on Common Stock

As announced on January 30, 2004, the Aimco Board of Directors declared a quarterly cash dividend of $0.60 per share of Class A Common Stock for the quarter ended December 31, 2003, payable on February 27, 2004 to stockholders of record on February 20, 2004. The dividend represents 103% of AFFO (diluted) and 83% of FFO (diluted), on a per share basis, for the quarter ended December 31, 2003 and a 7.0% annualized yield based on the $34.42 closing price of Aimco's Class A Common Stock on January 29, 2004.

"Same Store" Results

"SAME STORE" RESULTS    For the fourth quarter 2003, the "Same Store" portfolio included 580 communities with a total of 163,415 apartment units in which Aimco has a weighted average ownership of 84.2% (see Supplemental Schedule IX). Fourth quarter 2003 revenue from the "Same Store" portfolio was $290.3 million compared with $295.2 million in the fourth quarter 2002. While the "Same Store" portfolio experienced a 0.5 percentage point increase in occupancy from 91.3% in the fourth quarter 2002 to 91.8% in the fourth quarter 2003, revenue decreased $4.9 million, or 1.7%, primarily due to lower average rents per unit. Rental rates declined by 2.2%, from $735 to $719 per apartment. California and the Northeast enjoyed increased revenue by 2.6% and 1.2%, respectively, but these increases were more than offset by revenue declines in other regions. Texas and the West each had a 5.3% decline in revenue while the Midwest experienced a 4.6% decline. "Same Store" expenses of $120.3 million increased by $10.0 million, or 9.0%, compared with the fourth quarter 2002. Increased expenses were primarily due to: (i) $4.7 million in expenses related to increasing occupancy, including marketing and turnover; (ii) $3.5 million in higher repairs and maintenance, in support of efforts to improve the physical condition of properties; and (iii) $1.5 million in higher utility expenses due to higher rates for natural gas and water. "Same Store" portfolio net operating income was $170.0 million for the fourth quarter 2003, down 8.1% from the fourth quarter 2002.

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SAME STORE OPERATING RESULTS

Comparing "Same Store" results on a sequential basis, Aimco's "Same Store" portfolio realized a $4.5 million decrease in Net Rental Income (as defined in the Glossary) in the fourth quarter 2003 compared with the third quarter 2003, driven by a 1.2 percentage point decline in average occupancy from 93.0% to 91.8% and a $2 decline in average rent per unit. Total revenue declined $6.0 million. Expenses decreased $5.0 million due primarily to lower turnover and landscaping costs totaling $2.2 million and lower insurance expense. Net Operating Income decreased $1.0 million, or 0.6%, on a sequential basis. During the fourth quarter 2003, the "Same Store" portfolio was reduced by nine properties, or 1,163 units, due to property sales.

Comparing full year "Same Store" results, 2003 revenue of $1,038.9 million was down $36.9 million, or 3.4%, compared with 2002. "Same Store" expenses of $441.2 million were up $39.6 million, or 9.9%, and "Same Store" Net Operating Income of $597.8 million was down $76.5 million, or 11.3%.

For the fourth quarter 2003, "Same Store" resident turnover was 11%, down from 12% in the fourth quarter 2002.

"Same Store" results reflect the performance of conventional communities in which Aimco's ownership exceeds 10% and which have reached a stabilized level of occupancy during both the current and comparable prior year period. These results measure operating performance without variations caused by investment transactions.

Aimco's "Same Store" results measure Aimco's effective ownership in "Same Store" communities and include both Aimco's ownership interest in unconsolidated "Same Store" properties and subtract the minority partners' share of consolidated properties (see reconciliation on Supplemental Schedule VIII). In keeping with this definition, the "Same

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Store" portfolio accounted for 95.8% of Conventional Real Estate Free Cash Flow. (Free Cash Flow ("FCF") is a non-GAAP financial measure defined in the Glossary and presented and reconciled to GAAP income on Supplemental Schedule II.)

CAPITAL REPLACEMENTS AND CAPITAL ENHANCEMENTS    Capital Replacements (as defined in the Glossary) were $18.8 million and Capital Enhancements (as defined in the Glossary) were $0.2 million in the fourth quarter 2003, which totals are deducted in calculating AFFO. These totals compare with $21.9 million and $1.8 million, respectively, in the fourth quarter 2002. Capital Replacement and Capital Enhancement spending together totaled $580 per unit for the full year 2003.

CAPITAL REPLACEMENT & CAPITAL ENHANCEMENT EXPENDITURES

(1)

per share calculations include adjustment for minority interest in Aimco's operating partnership and are based on AFFO share count

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Reporting by Business Component

Starting in the third quarter 2003, Aimco introduced business component reporting for Aimco Conventional operations and Aimco Capital with the addition of Supplemental Schedules XVI through XXVIII. These schedules present selected non-GAAP information related to income statement, free cash flow, balance sheet and operating measures. They are intended to present results of Aimco's distinct operating portfolios. Aimco's strategy is to expand and upgrade its Core real estate portfolio and, over time, to sell its Non-Core and to reduce its Affordable portfolios and to reinvest the proceeds in acquisitions for the Core portfolio and in debt reduction or share repurchases. Core properties are those properties that are located in selected markets and which Aimco intends to hold and improve over the long-term. Non-Core properties are located in other markets or in less favored locations within the selected markets, which Aimco intends to hold for an intermediate term. Affordable properties are typically those which have rent subsidies provided by HUD and other government agencies.

CONVENTIONAL OPERATIONS    Conventional real estate operations include Aimco's diversified portfolio of market-rate apartment communities and associated property management and other income. During the fourth quarter 2003, conventional real estate operations generated FCF of $154.9 million from 628 properties with 177,318 units and an average Aimco ownership of 81%. Conventional real estate assets are separated between Core and Non-Core, with performance results presented on Supplemental Schedules XXII through XXVIII. Core properties include 367 communities with 115,158 units and accounted for 76% of real estate FCF. Non-Core properties include 261 communities with 62,160 units and accounted for 24% of real estate FCF.

Comparing "Same Store" results for Core and Non-Core properties for the fourth quarter 2003 with the fourth quarter 2002, "Same Store" Core properties had a 1.4% decline in revenue, a 10.3% increase in expenses and a 7.7% decline in NOI. Non-core properties had a 2.5% decline in revenue, a 6.1% increase in expenses and a 9.2% decline in NOI. Sequentially, "Same Store" Core properties had a 1.8% decline in revenue, a 3.0% reduction in expenses and a 1.1% decline in NOI. Non-core properties had a 2.5% decline in revenue, a 6.1% reduction in expenses and a 1.1% increase in NOI.

Conventional operations generated Free Cash Flow from property management and other fees (associated with asset management, construction management, refinancing,

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dispositions, development and other services to affiliated partnerships), net of expenses and insurance losses, of ($3.7) million.

AIMCO CAPITAL    Aimco Capital was established in 2002 to organize affordable property operations and asset management under a single management team dedicated to this sector. The management of affordable housing requires specialized property management, accounting and legal expertise to comply with the regulatory framework that affects affordable properties. Aimco is among the largest owners and operators of affordable properties in the United States. During the fourth quarter 2003, Affordable property operations included 488 properties with 58,598 units. Aimco has an average 37% ownership in its affordable properties. Occupancy and average rents in the affordable sector were stable and averaged 95.1% and $645, respectively, in the fourth quarter 2003, consistent with the third quarter 2003.

Aimco Capital also generates income from asset management (of the above holdings as well as two other large portfolios that are asset-managed only), property management, and transactional activity including dispositions, tax credit redevelopment and refinancings. During the fourth quarter 2003, Aimco Capital generated FCF of $19.9 million from property operations, asset management and transactions. Of that amount, transactions totaled $6.0 million.

Additional Income Information

INTEREST INCOME FROM GENERAL PARTNER LOANS    Interest and Other Income was $6.7 million for the fourth quarter and $25.0 million for the full year, a decrease of $14.5 million and $52.3 million, respectively, compared with 2002, primarily due to lower transactional income (accretion).

Notes receivable primarily from affiliated partnerships were $206.2 million ($268.3 million face value) at December 31, 2003 versus $169.2 million ($252.8 million face value) at December 31, 2002, an increase of $37.0 million, or 22%, due to increased draws, net of payments, on existing agreements. Aimco recognized transactional income (accretion) of $0.7 million in the fourth quarter 2003 and $3.3 million for the full year 2003 compared with $17.5 million and $44.5 million, respectively, in the fourth quarter and full year 2002. Transactional income (accretion) was somewhat offset by the provisions for loan losses of $0.7 million in the fourth quarter 2003 and $2.2 million for the full year 2003, compared with

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$4.2 million and $9.0 million, respectively, recognized in the fourth quarter and full year 2002.

INTEREST EXPENSE    Consolidated interest expense was $94.7 million for the fourth quarter 2003, an increase of $0.2 million when compared with $94.5 million in the fourth quarter 2002. Consolidated interest expense was $372.7 million for the full year 2003, up $48.3 million from the full year 2002. The increase in interest expense is primarily a result of an increase in debt associated with newly consolidated and acquired properties.

G&A    General and Administrative expenses for the fourth quarter 2003 were $9.3 million, up $1.3 million from the fourth quarter 2002 due to compensation expenses and legal costs.

GAIN ON DISPOSITIONS    Aimco's active property disposition program in 2003 resulted in total (including gains recognized from sales of unconsolidated properties and from discontinued operations) Gains on Dispositions of Real Estate, net of impairments and related taxes, of $23.8 million for the fourth quarter and $79.8 million for the full year 2003, compared with losses of $28.8 million and $39.4 million for the fourth quarter and full year 2002, respectively. Gains on Dispositions of Real Estate are determined using the carrying amount of the properties sold, which included cumulative disposition capital expenditures of $1.3 million for properties sold in the fourth quarter and $4.3 million for properties sold during the year.

Transaction and Redevelopment Activity

ACQUISITIONS    During the fourth quarter, Aimco purchased a 357-unit luxury apartment property located on the waterfront in downtown Miami, Florida. Aimco purchased the high-rise building for $57.5 million, which was funded through the assumption of $45.0 million in property debt, issuance of 88,792 common units in Aimco's operating partnership at $39.50 per unit, and the remainder in cash. For the full year 2003, Aimco purchased five properties for $163.1 million. During the fourth quarter 2003, Aimco also purchased for an aggregate of $16.0 million limited and general partnership interests in 102 partnerships that own 358 properties. For the full year 2003, Aimco purchased, for an aggregate of $26.6 million, limited and general partnership interests in 166 partnerships that own 441 properties.

Subsequent to year-end, Aimco acquired The Palazzo at Park La Brea, a 521-unit luxury apartment property located in the mid-Wilshire district of Los Angeles for $162.9 million.

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DISPOSITIONS    Aimco regularly reviews its portfolio to identify properties that do not meet its long-term investment criteria. Aimco considers these properties Non-Core and seeks to sell them over the intermediate term.

During the fourth quarter 2003, Aimco sold 36 properties with 7,966 apartment units for $299 million in gross proceeds, generating net cash proceeds to Aimco of $93 million after payment of mortgage debt, limited partner interests and transaction costs. Of the properties sold, 22 were conventional and 14 were affordable. For the full year 2003, Aimco sold 110 properties with 25,317 apartment units for $939 million in gross proceeds, generating net cash proceeds to Aimco of $309 million after payment of mortgage debt, limited partner interests and transaction costs. See the chart below for additional information on disposition activity. Net sales proceeds are calculated after transaction costs. The FCF Yield is calculated as the FCF earned by the properties during the 12 months prior to their sale divided by the sales price. FCF includes a $525 per unit deduction for Capital Replacements and is before debt service.

FOURTH QUARTER 2003 PROPERTY SALES ACTIVITY

FULL YEAR 2003 PROPERTY SALES ACTIVITY

(1)

Sales activity provided in the table above does not include sales of certain NAPICO properties that generated net proceeds to Aimco of $6.6 million in the fourth quarter 2003 and $29.2 million for the full year 2003.

(2)

Net Sales Proceeds are after repayment of existing debt and payment of transaction costs

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Disposition Capital Expenditures (as defined in the Glossary) totaled $9.5 million in the quarter and $25.5 million for the year.

REDEVELOPMENT ACTIVITY    At year-end, Aimco had nine conventional properties with 5,408 units, and two affordable properties with 467 units, being redeveloped. Redevelopment expenditures in the quarter for the nine conventional properties were $18.3 million, of which Aimco's share was $14.2 million. Redevelopment expenditures for these nine conventional projects are expected to total $396.2 million, of which approximately $48.7 million remains to be spent. Aimco's share of the total redevelopment spending is $289.8 million, of which approximately $31.6 million remains to be spent.

Aimco's largest redevelopment project is Flamingo South Beach with 1,687 apartments located in Miami Beach, Florida. During the fourth quarter 2003 an additional 106 units were completed, bringing the total units completed to 1,406. As of year-end, construction of 281 units was still underway. At year-end 2003, occupied and pre-leased units totaled 987, as compared with 942 as of the end of the third quarter.

Balance Sheet and Liquidity

FINANCING ACTIVITY    As previously announced on January 5, 2004, Aimco entered into an equity financing transaction with GE Real Estate in the form of a property joint venture. At year-end, the joint venture owned 33 properties in nine markets with a total of 9,543 units. The joint venture is owned by GE Real Estate and Aimco, with a promote structure that limits GE Real Estate's leveraged return above 11%. Aimco contributed the properties to the joint venture and received approximately $107 million in cash proceeds at closing, which Aimco plans to use to redeem preferred stock, to fund acquisitions of limited partner interests, and for general corporate purposes.

During the fourth quarter 2003, Aimco closed 19 mortgage loans generating $129.6 million of total proceeds at a weighted average interest rate of 3.98%. After repayment of existing debt, transaction costs and distributions to limited partners totaling $97.6 million, Aimco's share of net proceeds was $32.0 million.

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FOURTH QUARTER MORTGAGE REFINANCINGS ($mm)

FULL YEAR 2003 MORTGAGE REFINANCINGS ($mm)

At December 31, 2003, Aimco's consolidated mortgage debt was $5,649 million. Aimco's pro rata share of mortgage debt (including total consolidated debt, less the minority interest portion plus Aimco's share of unconsolidated debt) was $5,315 million (see Supplemental Schedule V for detail). Aimco's mortgage debt had a weighted average maturity of 13.7 years and weighted average interest rate of 6.0%, down from 14.0 years and 6.5% at December 31, 2002; 82% was fixed rate debt and 18% was floating rate debt. Seventy-nine percent of the floating rate mortgage debt was tax-exempt mortgage debt.

In addition to mortgage debt, at year-end, Aimco had short-term debt of $435 million, including a $250 million term loan, $81 million drawn on its revolving credit facility, and $104 remaining outstanding on the term loan entered into in connection with the March 2002 acquisition of Casden Properties Inc.

Total proportionate debt decreased by $299 million during the quarter including: (i) $79 million reduction on the revolving credit facility; (ii) $260 million reduction in mortgage debt due to property sales and; (iii) $30 million principal amortization; all partially offset by

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increased mortgage debt from acquisitions and acquisitions of limited partner interests of $46 million, and refinancings of $23 million.

CAPITAL STRUCTURE AT DECEMBER 31, 2003

(1)

Aimco share of debt, see Supplemental Schedule V

(2)

Certain preferred securites that were previously classified as preferred equity for purposes of this chart are now considered debt under SFAS 150.

(3)

105.5 million shares and OP units outstanding multiplied by the closing price of $34.50 per share/unit, as of December 31, 2003

Subsequent to year-end, Aimco redeemed $25 million of its Class S Cumulative Redeemable Preferred Stock.

LIQUIDITY    During the fourth quarter 2003 Aimco repaid $79 million on its revolving credit facility (reducing the balance from $160 million to $81 million), leaving $364 million, less $22 million in outstanding letters of credit, in available capacity.

Outlook

Please see Supplemental Schedule XIV for Aimco's Outlook for the first quarter and full year 2004.

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Earnings Conference Call

Please join Aimco management for the Fourth Quarter 2003 earnings conference call to be held Friday, February 13, 2004 at 1:00 p.m. Eastern Standard Time. You may join the conference call through an Internet audiocast via Aimco's Website at www.aimco.com/about/financial/4Q2003.asp by clicking on the Webcast link. Alternatively, you may join the conference call by telephone by dialing 800-218-8862, or 303-262-2143 for international callers. Please call approximately five minutes before the conference call is scheduled to begin and indicate that you wish to join the Apartment Investment and Management Company Fourth Quarter 2003 earnings conference call. If you are unable to join the live conference call, you may access the replay for 30 days on Aimco's Website or by dialing 800-405-2236 (303-590-3000 for international callers) and using access code 566340#.

Forward-looking Statements

This earnings release and Supplemental Information contain forward-looking statements, including statements regarding future results, that are subject to certain risks and uncertainties, including but not limited to Aimco's ability to maintain current occupancy, rent levels, and "same store" results. Actual results may differ materially from those described and could be affected by a variety of factors including: economic conditions; changes in interest rates; governmental regulations; competition; financing risks; variations in real estate values; the failure of acquisitions to perform in accordance with expectations; litigation; possible environmental liabilities; and other risks described in our filings with the Securities and Exchange Commission. These forward-looking statements reflect management's judgment as of this date, and Aimco assumes no obligation to revise or update them to reflect future events or circumstances.

About Aimco

Aimco is a real estate investment trust headquartered in Denver, Colorado owning and operating a geographically diversified portfolio of apartment communities through 19 regional operating centers. Aimco, through its subsidiaries, operates approximately 1,629 properties, including approximately 288,000 apartment units, and serves approximately one million residents each year. Aimco's properties are located in 47 states, the District of Columbia and Puerto Rico. Aimco common shares are included in the S&P 500.

GAAP Income Statements
Consolidated Statements of Income [a]
(in thousands, except per share data)
(unaudited)