Investments in Real Estate

3 Months Ended

Mar. 31, 2024

NOTE 3: Investments in Real Estate

As of March 31, 2024, our investments in real estate consisted of 111 operating apartment properties (unaudited, including one owned through a consolidated joint venture) that contain an aggregate of 32,877 units (unaudited). The following table summarizes our investments in real estate, excluding two properties we classified as held for sale:


	As of March 31, 2024		As of December 31, 2023		Depreciable Lives (In years)
Land	$	536,997	$	540,950	—
Building	5,190,512		5,288,956		40
Furniture, fixtures and equipment	455,500		429,306		5-10
Total investments in real estate	$	6,183,009	$	6,259,212
Accumulated depreciation	(622,713)		(582,760)
Investments in real estate, net	$	5,560,296	$	5,676,452

Portfolio Optimization and Deleveraging Strategy

On October 26, 2023, our Board of Directors approved a plan, which we refer to as our Portfolio Optimization and Deleveraging Strategy, which targeted the sale of ten properties located in seven markets in order to exit or reduce our presence in these markets while also deleveraging our balance sheet. As of March 31, 2024, nine of the ten properties had been sold for total gross sales price of $496,800 and proceeds from the sales were used to repay $488,900 of debt. On April 30, 2024, we sold the tenth and final property under our Portfolio Optimization and Deleveraging Strategy for a gross sales price of $28,500 and proceeds from the sale were used to repay debt.

Dispositions

The table below summarizes our dispositions for the three months ended March 31, 2024:


Property (1)	Market	Units (unaudited)	Sale Date	Sale Price		Gain on Sale (Loss on Impairment), Net (2)
Villas of Kingwood	Houston, TX	330	2/13/2024	$	53,700	$	62
Belmar Villas	Denver, CO	318	2/13/2024	74,300		46
Hearthstone at City Center	Denver, CO	360	3/12/2024	74,000		88
Villas at Huffmeister	Houston, TX	294	3/25/2024	44,250		(415)
Westmont Commons	Asheville, NC	252	3/28/2024	49,875		25,856
		1,554		$	296,125	$	25,637

(1)Included in the Portfolio Optimization and Deleveraging Strategy.

(2)The gain on sale (loss on impairment) at Villas at Kingwood, Belmar Villas, Hearthstone at City Center and Villas at Huffmeister is exclusive of an aggregate $25,821 impairment charge recognized during the three months ended December 31, 2023, and net of $921 of defeasance and debt prepayment gains. The $25,637 of our gain on sale does not account for the $15,107 impairment charge recognized during the three months ended March 31, 2024, as described below.

During the three months ended March 31, 2024, we identified an asset in Birmingham, Alabama as held for sale and recorded an impairment charge of $15,107 since the expected sales proceeds less transaction costs exceed the asset’s carrying value. The table below summarizes our properties held for sale as of March 31, 2024.


Property	Market	Units (Unaudited)	Carrying Value		Loss on Impairment
Reserve at Creekside (1)	Chattanooga, TN	192	$	28,363	$	—
Tapestry Park (2)	Birmingham, AL	354	70,240		(15,107)
		546	$	98,603	$	(15,107)

(1)Included in the Portfolio Optimization and Deleveraging Strategy. A loss on impairment of $7,135 was recognized during the three months ended December 31, 2023. The property was sold on April 30, 2024, as described above.

(2)A loss on impairment was recognized during the three months ended March 31, 2024.