Apartment Investment and Management Company Further Strengthens Balance Sheet, Revises 2011 Pro Forma FFO Guidance

Apartment Investment and Management Company ("Aimco”) (NYSE:AIV) announced today that it has completed a series of financing transactions over the last six months that repaid 19 non-recourse property loans scheduled to mature between 2012 and 2016 with proceeds from new long-term, fixed-rate, non-recourse property loans (the "new loans”). The new loans, which total $674 million, were closed in three parts; $219 million closed in December 2010, $121 million closed in March 2011, and $334 million closed in May 2011. Each of the new loans has a 10 year term, and provides for monthly amortization that would provide for full repayment over 30 years. The new loans were originated by KeyBank Real Estate Capital and Wells Fargo Multifamily Capital, and will be sold to Freddie Mac.

Freddie Mac intends to securitize the new loans in the next 30 days, creating its first multifamily private label securitization trust. The trust will hold only the new Aimco loans referenced above. The securities will trade under the label FREMF 2011-KAIV.

As part of the securitization transaction, Aimco has agreed to purchase the first loss position and mezzanine position from the securitization trust, effectively reducing Aimco’s debt obligation. Under this agreement, Aimco will acquire notes with a face value of $101 million for approximately $51 million and the $50 million discount will be accreted into income over the ten-year term of the notes.

The net effective cost of this refinancing transaction and securitization is estimated to be 5.58%, taking into account the weighted average interest rate on the 19 new loans, transaction costs, estimated interest income Aimco will earn from the securitization trust notes, and $21 million ($18 million Aimco share) in prepayment penalties associated with the previous loans.

Interest rate and maturity details of the new loans are as follows:

The net interest rate of the loans, i.e., the weighted average interest rate of the new loans, less interest income earned from the first loss position and mezzanine position of the securitization trust, is 5.19%.

Aimco Balance Sheet Management

This transaction continues Aimco’s focus on reducing the risks inherent with leverage by managing entity risk, repricing risk and refunding risk. Entity risk is minimized by avoiding recourse debt, of which Aimco has none, other than its largely unused line of credit. Repricing risk is reduced by using fixed rate loans and refinancing nearer-term maturities to lock in current interest rates. Refunding risk is reduced by laddering maturities of long-term, non-recourse, amortizing property loans with little or no near-term maturities.

This transaction lowered Aimco’s repricing risk by converting $112 million of floating rate loans to fixed rates, and reduces financing costs by securing a lower weighted average rate on the other previously fixed rate loans. The refinancing and securitization of these 19 loans has effectively eliminated repricing risk on $674 million of property debt for the next ten years at an estimated net effective cost, inclusive of prepayment penalties, of 5.58%.

Since March 31, 2011, Aimco has improved its refunding risk profile by increasing the weighted average maturity of its property debt from 8.0 years to 8.4 years at May 20, 2011. The following table provides details of the impact of loan closings since March 31, 2011 on Aimco’s property debt maturity schedule.

Revised Pro forma FFO Guidance

Updated Pro forma FFO guidance for second quarter and full year 2011 are as follows:

Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the 20 largest markets in the United States. Aimco is one of the country’s largest owners and operators of both conventional and affordable apartments, with 648 communities serving approximately 500,000 residents in 42 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500. For more information about Aimco, please visit our website at www.aimco.com.