Apartment Investment Management Co (AIV) SEC Filing 10-Q Quarterly report for the period ending Monday, September 30, 2019

The reconciliation of interest expense to Adjusted Interest Expense and Preferred Dividends for the three months ended September 30, 2019, as used in our leverage ratios, is as follows (in thousands): Interest expense 42,011 Adjustments: Proportionate share adjustments related to interest of consolidated and unconsolidated partnerships (104 Debt prepayment penalties and other non-interest items (1,703 Interest income earned on securitization trust investment (2,084 Adjusted Interest Expense 38,120 Preferred dividends 1,933 Adjusted Interest Expense and Preferred Dividends 40,053 Annualized Adjusted Interest Expense 152,480 Annualized Adjusted Interest Expense and Preferred Dividends 160,212 Liquidity is the ability to meet present and future financial obligations.

During the three months ended September 30, 2019 compared to 2018, controllable operating expenses, which exclude utility costs, real estate taxes and insurance, decreased by $0.2 million, or 0.8%.

During the nine months ended September 30, 2019 compared to 2018, controllable operating expenses, which exclude utility costs, real estate taxes and insurance, decreased by $0.3 million, or 0.4%.