Apartment Investment and Management Company (NYSE:AIV) is progressing towards liquidation as it continues to sell off its properties. In a recent investor letter, Kingdom Capital Advisors detailed the company’s strategic moves and financial performance, highlighting significant challenges faced in 2025.
In its fourth-quarter 2025 report, Kingdom Capital Advisors noted that despite a tumultuous year marked by a bankruptcy in January and a cyberattack impacting its largest holding, the firm achieved a commendable 17.45% return net of fees. For comparison, the composite return for the Russell 2000 TR was 2.19%, while the S&P 500 TR and NASDAQ 100 TR yielded 2.68% and 2.47% respectively.
Kingdom Capital Advisors specifically mentioned Apartment Investment and Management Company as it moved towards full liquidation. The firm reported that AIV sold the majority of its remaining stabilized apartments, including a key transaction in Brickell completed in December. The stock closed at $5.93 on January 8, 2026, reflecting a substantial 34.17% decline over the past year, with a market capitalization of $847.885 million.
Kingdom Capital Advisors expressed optimism regarding returns from AIV, stating, “We expect dividends in FY26 to fully cover our cost basis on both names. AIV expects to return substantial capital to shareholders as property sales finalize.” The firm anticipates dividends that will equal or exceed the total cost basis for its investments in AIV during the first half of 2026.
Despite the challenges faced, AIV is not currently listed among the 30 Most Popular Stocks Among Hedge Funds. Data indicates that 35 hedge fund portfolios held positions in AIV at the end of the third quarter of 2025, an increase from 26 the previous quarter. While acknowledging the risks associated with AIV, Kingdom Capital Advisors believes that other sectors, particularly those focused on artificial intelligence, may provide more lucrative investment opportunities.
The ongoing developments surrounding Apartment Investment and Management Company highlight the complexities of the current market and the strategic shifts companies must undertake to navigate challenging conditions. As the firm continues its liquidation process, investors and analysts alike will be closely monitoring the outcomes of its remaining property sales and the potential for capital returns.
For further insights, readers may refer to Kingdom Capital Advisors’ fourth-quarter investor letters and additional analyses of market trends and stock performance.