Apartment Investment and Management Company (AIV) Cash Flow Statement

AFFO turned positive only in 2025Q3 ($274.7M) and 2025Q4 ($149.4M), the same quarters in which disposition-related gains inflated FFO, so the positive readings appear more episodic than representative of stabilized property-level cash generation. Set against $327.3M of dividends paid in 2025Q4, the retained AFFO buffer would have been roughly $178M even on that best-case quarter, and only if the gain-driven component is treated as repeatable, which the -$16.7M to -$75.3M AFFO range in ordinary quarters does not support. Investors should monitor whether a normalized, disposition-free quarter can produce positive AFFO sufficient to cover the base distribution.

Operating cash flow has been consistently modest — $3.8M to $20.0M across positive quarters — while FFO swings from -$560.0K to $313.9M, indicating that the FFO line is being moved by items that do not pass through the cash statement in the same period. The most instructive case is 2025Q4, where headline FFO was at its strongest yet OCF was negative, suggesting conversion quality was at its worst precisely when reported FFO looked healthiest. On this pattern, FFO should be treated as an unreliable proxy for distributable cash at AIV.

The magnitude of the net income reversal relative to AFFO implies that accumulated depreciation removed on disposition accounts for most of the $361M swing, so the reported profitability recovery should not be read as a change in property-level economics. Consistent with the prior income statement finding of NOI margin compression to 50.5%, the retained portfolio appears to generate less cash per dollar of revenue even as GAAP earnings turned positive. The persistence of negative FFO in early 2026 (-$7.4M in 2026Q2) suggests the distortion has unwound and the underlying earnings profile is again visible.

The shortfall between OCF and distributions paid is an order of magnitude in every dividend quarter, which implies that property dispositions — evident in the large negative CapEx and FCF figures of -$164.4M and -$178.8M in 2025Q4 — have been the practical funding source rather than internally generated cash. Because that funding source is finite and tied to portfolio shrinkage, the dividend's durability appears linked to the pace of further sales, a dependency investors should monitor closely. 2026Q1 again shows $88.2M paid against $3.8M of OCF, indicating the pattern has not yet changed.