<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to
------------ ------------
Commission file number 1-13232
--------
APARTMENT INVESTMENT AND MANAGEMENT COMPANY
401(k) RETIREMENT PLAN
(Full title of the plan)
Apartment Investment and Management Company
1873 South Bellaire Street, Suite 1700
Denver, Colorado 80222-4348
(Name of issuer of the securities held pursuant to
the plan and the address of its principal executive office)
<PAGE> 2
Financial Statements and Schedules
Apartment Investment and Management Company
(Formerly National Corporation for Housing
Partnerships Amended and Restated)
401(k) Retirement Plan
Years ended December 31, 1998 and 1997
with Report of Independent Auditors
<PAGE> 3
Financial Statements and Schedules
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships
Amended and Restated)
401(k) Retirement Plan
Years ended December 31, 1998 and 1997
CONTENTS
<TABLE>
<S> <C>
Report of Independent Public Accountants.................................................................1
Audited Financial Statements
Statements of Net Assets Available for Benefits..........................................................2
Statements of Changes in Net Assets Available for Benefits...............................................4
Notes to Financial Statements............................................................................6
Schedules
Schedule of Assets Held for Investment Purposes.........................................................11
Schedule of Reportable Transactions.....................................................................12
</TABLE>
<PAGE> 4
Report of Independent Public Accountants
Pension Plan Committee
Apartment Investment and Management Company
401(k) Retirement Plan
We have audited the accompanying statement of net assets available for benefits
of Apartment Investment and Management Company (formerly National Corporation
for Housing Partnerships Amended and Restated) 401(k) Retirement Plan as of
December 31, 1998 and 1997 and the related statement of changes in net assets
available for benefits for the years then ended. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform an audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1998 and 1997 and the changes in its net assets available for
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998 and reportable transactions
for the year then ended, are presented for the purpose of additional analysis
and are not a required part of the financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These supplemental schedules are the responsibility of the Plan's
management. The Fund Information in the statement of net assets available for
benefits and the statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
for each fund. The supplemental schedules and Fund Information have been
subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
Indianapolis, Indiana
June 11, 1999
1
<PAGE> 5
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships Amended and Restated)
401(k) Retirement Plan
Statement of Net Assets Available for Benefits, with Fund Information
December 31, 1998
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------------
MANAGED
GROWTH GROWTH & INTERMEDIATE RETIREMENT INCOME
MAGELLAN COMPANY INCOME FUND BOND FUND MONEY MARKET PORTFOLIO
-------- ------- ----------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Mutual funds $ 10,881,058 $ 4,793,821 $10,788,697 $ 2,159,232 $ 7,347,050 $ --
Common stock -- -- -- -- -- --
Interest in common collective trust -- -- -- -- -- 9,332,464
Participant loans -- -- -- -- -- --
------------ ----------- ----------- ----------- ----------- -----------
10,881,058 4,793,821 10,788,697 2,159,232 7,347,050 9,332,464
Contribution Receivable:
Employee Contribution Receivable 50,368 37,490 62,324 18,913 63,520 32,995
Employer Contribution Receivable 19,014 14,129 23,159 7,221 26,967 12,899
------------ ----------- ----------- ----------- ----------- -----------
69,382 51,619 85,483 26,134 90,487 45,894
------------ ----------- ----------- ----------- ----------- -----------
Total Assets 10,950,440 4,845,440 10,874,180 2,185,366 7,437,537 9,378,358
Liability:
Participant refunds payable -- -- -- -- -- --
------------ ----------- ----------- ----------- ----------- -----------
Net assets available for benefits $ 10,950,440 $ 4,845,440 $10,874,180 $ 2,185,366 $ 7,437,537 $ 9,378,358
============ =========== =========== =========== =========== ===========
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------------
ASSET AGGRESSIVE SPARTAN
MANAGER EQUITY GROWTH LOW PR U.S. EQUITY AIMCO
FUND INCOME II FUND STOCK FUND INDEX STOCK FUND
-------- --------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Mutual funds $ 6,258,780 $ 6,074,394 $ 709,762 $ -- $ 14,501 $ --
Common stock -- -- -- 191,081 -- 721,206
Interest in common collective trust -- -- -- -- -- --
Participant loans -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
6,258,780 6,074,394 709,762 191,081 14,501 721,206
Contribution Receivable:
Employee Contribution Receivable 11,919 12,518 12,673 -- 707 16,012
Employer Contribution Receivable 4,422 4,763 4,509 -- 134 6,122
----------- ----------- ----------- ----------- ----------- -----------
16,341 17,281 17,182 -- 841 22,134
----------- ----------- ----------- ----------- ----------- -----------
Total Assets 6,275,121 6,091,675 726,944 191,081 15,342 743,340
Liability:
Participant refunds payable -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net assets available for benefits $ 6,275,121 $ 6,091,675 $ 726,944 $ 191,081 $ 15,342 $ 743,340
=========== =========== =========== =========== =========== ===========
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------
DIVERSIFIED
INSIGNIA INTERNATIONAL
STOCK FUND FUND LOAN FUND TOTAL
-------- ------------- --------- -----
<S> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Mutual funds $ -- $ 57,515 $ -- $49,084,810
Common stock 711,255 -- -- 1,623,542
Interest in common collective trust -- -- -- 9,332,464
Participant loans -- -- 3,120,245 3,120,245
----------- ----------- ----------- -----------
711,255 57,515 3,120,245 63,161,061
Contribution Receivable:
Employee Contribution Receivable -- -- -- 319,439
Employer Contribution Receivable -- -- -- 123,339
----------- ----------- ----------- -----------
-- -- -- 442,778
----------- ----------- ----------- -----------
Total Assets 711,255 57,515 3,120,245 63,603,839
Liability:
Participant refunds payable -- -- --
----------- ----------- ----------- -----------
Net assets available for benefits $ 711,255 $ 57,515 $ 3,120,245 $63,603,839
=========== =========== =========== ===========
</TABLE>
See accompanying notes.
2
<PAGE> 6
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships Amended and Restated)
401(k) Retirement Plan
Statement of Net Assets Available for Benefits, with Fund Information
December 31, 1997
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------
MANAGED
GROWTH GROWTH & INTERMEDIATE RETIREMENT INCOME
MAGELLAN COMPANY INCOME FUND BOND FUND MONEY MARKET PORTFOLIO
-------- ------- ----------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Mutual funds $6,070,821 $ 4,114,304 $ 8,562,623 $ 1,790,522 $ 6,310,928 $ --
Common stock -- -- -- -- -- --
Interest in common collective trust -- -- -- -- -- 7,149,468
Participant loans -- -- -- -- -- --
---------- ----------- ----------- ----------- ----------- -----------
Total assets 6,070,821 4,114,304 8,562,623 1,790,522 6,310,928 7,149,468
LIABILITY:
Participant refunds payable 9,231 8,823 9,955 136 1,642 1,361
---------- ----------- ----------- ----------- ----------- -----------
Net assets available for benefits $6,061,590 $ 4,105,481 $ 8,552,668 $ 1,790,386 $ 6,309,286 $ 7,148,107
========== =========== =========== =========== =========== ===========
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------------------------
ASSET
MANAGER AIMCO EQUITY EMERGING
FUND STOCK FUND INCOME II GROWTH FUND LOAN FUND TOTAL
------- ---------- --------- ----------- --------- -----
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Mutual funds $ 380,196 $ -- $ 400,786 $ 153,988 $ -- $27,784,168
Common stock -- 362,292 -- -- -- 362,292
Interest in common collective trust -- -- -- -- -- 7,149,468
Participant loans -- -- -- -- 1,979,308 1,979,308
---------- ----------- ----------- ----------- ----------- -----------
Total assets 380,196 362,292 400,786 153,988 1,979,308 37,275,236
LIABILITY:
Participant refunds payable 1,659 7,193 -- 863 -- 40,863
---------- ----------- ----------- ----------- ----------- -----------
Net assets available for benefits $ 378,537 $ 355,099 $ 400,786 $ 153,125 $ 1,979,308 $ 37,234,373
=========== =========== =========== ========= =========== ============
</TABLE>
See accompanying notes.
3
<PAGE> 7
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships Amended and Restated)
401(k) Retirement Plan
Statement of Changes in Net Assets Available for
Benefits, with Fund Information
Year ended December 31, 1998
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------------
RETIREMENT MANAGED
GROWTH GROWTH & INTERMEDIATE MONEY INCOME
MAGELLAN COMPANY INCOME FUND BOND FUND MARKET PORTFOLIO
-------- ------- ----------- ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Employee contributions $ 674,453 $ 483,453 $ 817,640 $ 230,754 $ 901,724 $ 471,392
Employer contributions 260,523 178,570 309,622 92,789 267,574 191,396
Rollover contributions 92,638 75,218 86,994 7,906 61,988 10,944
Interest and dividend income 448,984 357,770 583,266 113,624 347,075 421,852
------------ ------------ ------------ ------------ ------------ ------------
Total additions 1,476,598 1,095,011 1,797,522 445,073 1,578,361 1,095,584
Deductions:
Benefits payments 1,405,602 1,076,821 1,770,172 360,685 1,938,646 1,115,443
Participant refunds -- -- -- -- -- --
Administrative expenses 7,191 2,731 2,640 622 5,054 363,063
------------ ------------ ------------ ------------ ------------ ------------
Total deductions 1,412,793 1,079,552 1,772,812 361,307 1,943,700 1,478,506
Net transfers from other plans 3,041,148 159,892 642,440 375,607 1,870,107 2,970,942
Net interfund transfers (6,178) (148,529) (107,927) (81,333) (376,689) (355,119)
Net appreciation (depreciation)
in fair value of investments 1,790,075 713,137 1,762,289 16,940 172 (2,650)
------------ ------------ ------------ ------------ ------------ ------------
Net increase 4,888,850 739,959 2,321,512 394,980 1,128,251 2,230,251
Net assets available for benefits
Beginning of year 6,061,590 4,105,481 8,552,668 1,790,386 6,309,286 7,148,107
------------ ------------ ------------ ------------ ------------ ------------
End of year $ 10,950,440 $ 4,845,440 $ 10,874,180 $ 2,185,366 $ 7,437,537 $ 9,378,358
============ ============ ============ ============ ============ ============
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------------------
ASSET SPARTAN US
MANAGER EQUITY AGGRESSIVE LOW PR EQ INDEX AIMCO
FUND INCOME II GROWTH FUND STOCK FUND FUND STOCK FUND
------- --------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Employee contributions $ 191,541 $ 184,508 $ 145,403 $ 3,786 $ 2,751 $ 149,960
Employer contributions 73,370 72,214 51,968 1,309 448 57,004
Rollover contributions 9,026 15,070 7,038 384 -- 7,090
Interest and dividend income 999,149 441,181 42,726 1,941 60 5,227
------------ ------------ ------------ ------------ ------------ ------------
Total additions 1,273,086 712,973 247,135 7,420 3,259 219,281
Deductions:
Benefits payments 67,145 182,742 45,481 -- 1,445 65,718
Participant refunds -- -- -- -- -- --
Administrative expenses 30 39 88 -- -- 1,075
------------ ------------ ------------ ------------ ------------ ------------
Total deductions 67,175 182,781 45,569 -- 1,445 66,793
Net transfers from other plans 5,291,542 5,257,609 90,641 178,999 84 --
Net interfund transfers 51,997 (52,776) 163,633 408 11,354 120,347
Net appreciation (depreciation)
in fair value of investments (652,866) (44,136) 117,979 4,254 2,090 115,406
------------ ------------ ------------ ------------ ------------ ------------
Net increase 5,896,584 5,690,889 573,819 191,081 15,342 388,241
Net assets available for benefits
Beginning of year 378,537 400,786 153,125 -- -- 355,099
------------ ------------ ------------ ------------ ------------ ------------
End of year $ 6,275,121 $ 6,091,675 $ 726,944 $ 191,081 $ 15,342 $ 743,340
============ ============ ============ ============ ============ ============
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------------------------------
DIVERSIFIED
INSIGNIA INTERNATIONAL
STOCK FUND FUND LOAN FUND TOTAL
---------- ------------- --------- -----
<S> <C> <C> <C> <C>
Additions:
Employee contributions $ 21,199 $ 1,780 $ -- $ 4,280,344
Employer contributions 8,743 595 -- 1,566,125
Rollover contributions -- -- -- 374,296
Interest and dividend income 698 2,135 -- 3,765,688
------------ ------------ ------------ ------------
Total additions 30,640 4,510 -- 9,986,453
Deductions:
Benefits payments 1,393 -- 625,420 8,656,713
Participant refunds -- --
Administrative expenses 4 -- -- 382,537
------------ ------------ ------------ ------------
Total deductions 1,397 -- 625,420 9,039,250
Net transfers from other plans 627,609 53,182 988,720 21,548,522
Net interfund transfers 2,824 351 777,637 --
Net appreciation (depreciation)
in fair value of investments 51,579 (528) -- 3,873,741
------------ ------------ ------------ ------------
Net increase 711,255 57,515 1,140,937 26,369,466
Net assets available for benefits
Beginning of year -- -- 1,979,308 37,234,373
------------ ------------ ------------ ------------
End of year $ 711,255 $ 57,515 $ 3,120,245 $ 63,603,839
============ ============ ============ ============
</TABLE>
See accompanying notes.
4
<PAGE> 8
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships Amended and Restated)
401(k) Retirement Plan
Statement of Changes in Net Assets Available for Benefits,
with Fund Information
Year ended December 31, 1997
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------------------------------------
RETIREMENT MANAGED
GROWTH GROWTH & INTERMEDIATE MONEY INCOME
MAGELLAN COMPANY INCOME FUND BOND FUND MARKET PORTFOLIO
-------- ------- ----------- ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Employee contributions $ 543,293 $ 455,815 $ 750,777 $ 230,047 $ 1,002,042 $ 527,943
Employer contributions 707,409 573,522 971,696 320,873 2,650,391 891,909
Rollover contributions 6,909 5,444 3,532 835 12,493 913
Interest and dividend income 390,529 387,188 413,503 107,135 281,794 442,504
------------ ------------ ------------ ------------ ------------ ------------
Total additions 1,648,140 1,421,969 2,139,508 658,890 3,946,721 1,863,269
Deductions:
Benefits payments 1,388,737 1,017,235 2,352,481 302,676 1,162,491 1,763,778
Participant refunds 9,231 8,823 9,955 136 1,642 1,361
Administrative expenses 6,605 2,696 1,615 614 3,181 60,560
------------ ------------ ------------ ------------ ------------ ------------
Total deductions 1,404,573 1,028,754 2,364,051 303,426 1,167,314 1,825,699
Net interfund transfers (235,102) (177,272) 195,308 (90,529) (326,924) (168,987)
Net exchanges -- -- -- -- -- --
Net appreciation (depreciation)
in fair value of investments 899,101 252,555 1,677,758 16,630 -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 907,566 468,498 1,648,523 281,565 2,452,483 (131,417)
Net assets available for benefits
Beginning of year 5,154,024 3,636,983 6,904,145 1,508,821 3,856,803 7,279,524
------------ ------------ ------------ ------------ ------------ ------------
End of year $ 6,061,590 $ 4,105,481 $ 8,552,668 $ 1,790,386 $ 6,309,286 $ 7,148,107
============ ============ ============ ============ ============ ============
<CAPTION>
PARTICIPANT DIRECTED
---------------------------------------------------------------------------
ASSET
MANAGER NHP STOCK AIMCO EQUITY EMERGING
FUND FUND STOCK FUND INCOME II GROWTH FUND
------- --------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
Additions:
Employee contributions $ 81,016 $ 56,300 $ -- $ 51,854 $ 44,175
Employer contributions 105,564 75,041 -- 64,985 51,248
Rollover contributions 97 -- -- -- --
Interest and dividend income 29,626 -- -- 39,216 30,063
------------ ------------ ------------ ------------ ------------
Total additions 216,303 131,341 -- 156,055 125,486
Deductions:
Benefits payments 85,639 15,415 -- 145,627 48,834
Participant refunds 1,659 816 6,377 -- 863
Administrative expenses 15 641 -- 35 66
------------ ------------ ------------ ------------ ------------
Total deductions 87,313 16,872 6,377 145,662 49,763
Net interfund transfers 52,221 (85,584) -- 293,926 73,455
Net exchanges -- (345,426) 345,426 -- --
Net appreciation (depreciation)
in fair value of investments 24,554 163,854 16,050 26,439 (15,734)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) 205,765 (152,687) 355,099 330,758 133,444
Net assets available for benefits
Beginning of year 172,772 152,687 -- 70,028 19,681
------------ ------------ ------------ ------------ ------------
End of year $ 378,537 $ -- $ 355,099 $ 400,786 $ 153,125
============ ============ ============ ============ ============
<CAPTION>
PARTICIPANT DIRECTED
-------------------------------
LOAN FUND TOTAL
--------- -----
<S> <C> <C>
Additions:
Employee contributions $ (100,336) $ 3,642,927
Employer contributions (2,284,369) 4,128,269
Rollover contributions -- 30,223
Interest and dividend income 149,626 2,271,184
------------ ------------
Total additions (2,235,079) 10,072,603
Deductions:
Benefits payments 276,353 8,559,266
Participant refunds -- 40,863
Administrative expenses -- 76,028
------------ ------------
Total deductions 276,353 8,676,157
Net interfund transfers 469,488 --
Net exchanges -- --
Net appreciation (depreciation)
in fair value of investments -- 3,061,207
------------ ------------
Net increase (decrease) (2,041,944) 4,457,653
Net assets available for benefits
Beginning of year 4,021,252 32,776,720
------------ ------------
End of year $ 1,979,308 $ 37,234,373
============ ============
</TABLE>
See accompanying notes.
5
<PAGE> 9
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships
Amended and Restated)
401(k) Retirement Plan
Notes to Financial Statements
December 31, 1998
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accompanying financial statements of the Apartment Investment and Management
Company 401(k) Retirement Plan (the "Plan") are presented on the accrual basis
of accounting.
INVESTMENTS
Investments other than participant loans are valued at fair value as determined
by reference to quoted market values. The fair value of participant loans is
estimated.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts in the financial statements and accompanying notes.
Actual results could differ from those estimates.
INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated October 31, 1989, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code (the "Code") and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan was amended and
restated, effective January 1, 1995. The administrator believes that the Plan,
as amended and restated, continues to maintain its qualified status.
2. DESCRIPTION OF THE PLAN
The following description of the Plan provides only general information.
Participants should refer to the Summary Plan Description for a more complete
description of the Plan's provisions.
6
<PAGE> 10
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships
Amended and Restated)
401(k) Retirement Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
The Plan is a defined contribution plan that was established for all eligible
employees of the National Corporation for Housing Partnerships (NHP). As a
result of the 1997 merger with AIMCO/NHP Acquisition Corp., NHP is now a wholly
owned subsidiary of Apartment Investment and Management Company (AIMCO).
Consequently, effective January 1, 1998, AIMCO assumed sponsorship of the Plan
and the Plan was renamed Apartment Investment and Management Company 401(k)
Retirement Plan.
Employees become eligible to participate when they have reached the age of 18
and have worked for the Company (AIMCO) for a six-month period. Participants
may elect to contribute to the Plan from 1% to 20% of their compensation on a
pretax basis, subject to certain statutory limitations. The Company, at its
discretion, may match 50% of the participants' contribution, up to 6% of
compensation deferral.
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 ("ERISA").
Each participant's account is credited with the participant's contributions,
allocations of the Company's contributions, and Plan earnings. The benefit to
which a participant is entitled is the account balance at the time of
distribution.
Participants are immediately vested in their voluntary contributions. The
Company's matching contributions are fully vested after three years of service.
Upon withdrawal, the nonvested portion of a participant's account will be used
by the Company to reduce the next employer contribution or pay expenses of the
Plan. During 1998 and 1997, forfeited balances of terminated participants'
nonvested accounts were $187,413 and $360,105, respectively.
Participants may borrow funds from their own account. Loans are permitted in
amounts not to exceed the lesser of $50,000 reduced by the highest outstanding
loan balance for the preceding year or 50% of the value of the vested interest
in the participant's account. Only one loan is permitted during any twelve month
period.
7
<PAGE> 11
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships
Amended and Restated)
401(k) Retirement Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Although the Company has not expressed any intent to do so, it has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of termination of the
Plan, each participant will become fully vested and will receive a total
distribution of their account.
3. INVESTMENTS
The Plan's investments are held in trust by Fidelity Management Trust, the
Trustee of the Plan. The Plan's investments in the various funds (including
investments bought, sold, and held during the year) appreciated (depreciated) in
fair value as presented in the following table.
<TABLE>
<CAPTION>
NET
APPRECIATION
(DEPRECIATION)
IN FAIR VALUE
DURING YEAR
--------------
<S> <C>
Year Ended December 31, 1998:
Fair value as determined by quoted market prices:
Mutual funds $ 3,705,152
Interest in common collective trust (2,650)
Common stocks 171,239
-----------
$ 3,873,741
===========
Year Ended December 31, 1997:
Fair value as determined by quoted market prices:
Mutual funds $ 2,881,303
Common stocks 179,904
-----------
$ 3,061,207
===========
</TABLE>
8
<PAGE> 12
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships
Amended and Restated)
401(k) Retirement Plan
Notes to Financial Statements (continued)
3. INVESTMENTS (CONTINUED)
The fair value of individual investments that represent 5% or more of the Plan's
net assets are as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
------------ -----------
<S> <C> <C>
Fidelity Management Trust Company:
Mutual Funds:
Magellan Fund $ 10,881,058 $ 6,070,821
Growth Company Fund 4,793,821 4,114,304
Growth and Income Fund 10,788,697 8,562,623
Retirement Money Market Fund 7,437,050 6,310,928
Asset Manager Fund 6,258,780 N/A
Equity Income II Fund 6,074,394 N/A
Common Collective Trust:
Managed Income Portfolio Fund 9,332,464 7,149,468
</TABLE>
4. YEAR 2000 (UNAUDITED)
The Plan Sponsor has determined that it will be necessary to take certain steps
in order to ensure that the Plan's information systems are prepared to handle
year 2000 dates. The Plan Sponsor is taking a two phase approach. The first
phase addresses internal systems that must be modified or replaced to function
properly. Both internal and external resources are being utilized to replace or
modify existing software applications, and test the software and equipment for
the year 2000 modifications. The Plan Sponsor anticipates substantially
completing this phase of the project by Third Quarter 1999. Costs associated
with modifying software and equipment are not estimated to be significant and
will be paid by the Plan Sponsor.
9
<PAGE> 13
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships
Amended and Restated)
401(k) Retirement Plan
Notes to Financial Statements (continued)
4. YEAR 2000 (UNAUDITED) (CONTINUED)
For the second phase of the project, Plan management established formal
communications with its third party service providers to determine that they
have developed plans to address their own year 2000 problems as they relate to
the Plan's operations. All third party service providers have indicated that
they will be year 2000 compliant during 1999. If modification of data processing
systems of either the Plan, the Plan Sponsor, or its service providers are not
completed timely, the year 2000 problem could have a material impact on the
operations of the Plan. Plan management has not developed a contingency plan,
because they are confident that all systems will be year 2000 ready.
5. PLAN MERGERS
On April 1, 1998, AIMCO merged its plan, the Property Asset Management Employee
Savings Plan, into the AIMCO 401(k) Retirement Plan and the assets and loans,
totaling approximately $2 million, were transferred into the Plan on August 2,
1998. Pursuant to a 1997 merger agreement between Ambassador Apartments, L.P.
and AIMCO, the Ambassador Retirement Plan was merged into the AIMCO 401(k) Plan
and the assets and loans of the Ambassador Plan, totaling approximately $.5
million, were transferred into the AIMCO 401(k) Plan on August 4, 1998.
Subsequent to the 1998 merger of AIMCO with Insignia, assets and loans totaling
approximately $19 million were transferred from the Insignia Retirement Plan to
the AIMCO 401(k) Retirement Plan on November 30, 1998.
10
<PAGE> 14
SCHEDULES
<PAGE> 15
Apartment Investment and Management Company
(Formerly National Corporation for Housing Partnerships Amended and Restated)
401(k) Retirement Plan
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
EIN: 52-1445137
Plan Number: 002
(b) (c) (d) (e)
DESCRIPTION OF INVESTMENT,
INCLUDING MATURITY DATE,
IDENTITY OF ISSUE, BORROWER, RATE OF INTEREST, COLLATERAL, PAR
LESSOR OR SIMILAR PARTY OR MATURITY VALUE COST CURRENT VALUE
---------------------------- --------------------------------- ---- -------------
<S> <C> <C> <C>
Common Stock:
*AIMCO Stock 69,996 shares $ 703,877 $ 704,855
*Insignia Stock 145,749 shares 706,564 711,255
*Washington National Mortgage
Company Stock 2,725 shares 24,935 16,351
------------ ------------
1,435,376 1,432,461
Mutual Funds:
*Fidelity Management Trust Company
Magellan Fund 90,060 shares 8,529,042 10,881,058
Growth Company Fund 93,960 shares 3,724,672 4,793,821
Growth and Income Fund 235,356 shares 7,352,503 10,788,697
Intermediate Bond Fund 210,247 shares 2,141,521 2,159,232
Asset Manager Fund 359,907 shares 6,900,271 6,258,780
Equity Income II Fund 202,412 shares 6,137,683 6,074,394
Aggresive Growth Fund 22,341 shares 610,137 709,762
Diversified International Fund 3,246 shares 58,043 57,515
Low Price Stock Fund 8,362 shares 186,826 191,081
Spartan US Equity Index Fund 330 shares 12,453 14,501
Retirement Money Market Fund 7,347,050 shares 7,347,050 7,347,050
------------ ------------
43,000,201 49,275,891
Common Collective Trust:
*Fidelity Management Trust Company
Managed Income Portfolio Fund 9,332,464 shares 9,332,464 9,332,464
Participant Loans Interest rates range from 6% to 11% 3,120,245
------------ ------------
$ 53,768,041 $ 63,161,061
============ ============
</TABLE>
*Indicates a party-in-interest to the Plan
<PAGE> 16
Apartment Investment and Management Company
(Formerly National Corporation for Housing Parnterships Amended and Restated)
401(k) Retirement Plan
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
(a) (b) (c) (d) (g) (h)
CURRENT
VALUE OF
ASSET ON
PURCHASE TRANSACTION
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE SELLING PRICE COST OF ASSET DATE
-------------------------- -------------------- -------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Category (iii) -- series of transactions in excess of 5 percent of Plan assets:
- -------------------------------------------------------------------------------
Fidelity Management Trust Company Magellan Mutual Fund $ 5,138,160 $ 5,138,160 $ 5,138,160
$ 2,117,998 1,690,273 2,117,998
Fidelity Management Trust Company Growth Company Fund 2,295,927 2,295,927 2,295,927
2,329,548 2,036,486 2,329,548
Fidelity Management Trust Company Growth & Income Fund 3,978,269 3,978,269 3,978,269
3,514,483 2,819,772 3,514,483
Fidelity Management Trust Company Asset Manager Fund 6,690,918 6,690,918 6,690,918
159,469 155,728 159,469
Fidelity Management Trust Company Equity Income II Fund 6,112,834 6,112,834 6,112,834
395,089 364,026 395,089
Fidelity Management Trust Company Retirement Money Market Fund 5,002,564 5,002,564 5,002,564
3,966,442 3,966,442 3,966,442
Fidelity Management Trust Company Managed Income Portfolio Fund 4,643,580 4,643,580 4,643,580
2,460,586 2,460,586 2,460,586
<CAPTION>
EIN: 52-1445137
Plan Number: 002
(a) (i)
NET GAIN/
IDENTITY OF PARTY INVOLVED (LOSS)
-------------------------- -----------
<S> <C>
Category (iii) -- series of transactions in excess of 5 percent of Plan assets:
- -------------------------------------------------------------------------------
Fidelity Management Trust Company
$ 427,725
Fidelity Management Trust Company
293,062
Fidelity Management Trust Company
694,711
Fidelity Management Trust Company
3,741
Fidelity Management Trust Company
31,063
Fidelity Management Trust Company
--
Fidelity Management Trust Company
--
</TABLE>
There were no category (i), (ii) or (iv) reportable transactions during 1998.
Columns (e),(f), not applicable and therefore not included.
<PAGE> 17
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 333-57617) pertaining to the Apartment Investment and Management
Company 401(k) Retirement Plan of our report dated June 11, 1999, with respect
to the financial statements and schedules of the Apartment Investment and
Management Company 401(k) Retirement Plan included in this Annual Report (Form
11-K) for the year ended December 31, 1998.
/s/ ERNST & YOUNG LLP
---------------------
ERNST & YOUNG LLP
Indianapolis, Indiana
June 25, 1999
11
<PAGE> 18
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Plan Administrator has duly caused this annual report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date: June 24, 1999
APARTMENT INVESTMENT AND
MANAGEMENT COMPANY
401(k) RETIREMENT PLAN
By: /s/ MARY AKERS
-------------------------------------
Mary Akers
Plan Administrator
12
