A Special Supplement to National Real Estate Investor Special Supplement to National Real Estate...

A Special Supplement to National Real Estate Investor

NATIONAL MULTI HOUSING COUNCILNATIONAL MULTI HOUSING COUNCIL

2006 THE NATION’S 50 LARGEST APARTMENT OWNERS AND 50 LARGEST APARTMENT MANAGERS

Associate Members

A speciAl supplement to nAtionAl reAl estAte investor

introduction ................................................................................ 4

2006 Apartment ownership ....................................................... 6

2006 Apartment management ................................................... 8

nmHc 50: Hot markets Bring Dynamic changes ..................... 10

nmHc officers ........................................................................ 16

nmHc Board of Directors executive committee ...................... 16

nmHc Board of Directors ........................................................20

nmHc Advisory committee .....................................................37

nmHc Associate members ......................................................48

nmHc staff .............................................................................56

Contents

2 NMHC 50 April 2006

Associate Members


national real estate investor is pleased to present the 17th annual nmHc 50, the

national multi Housing council’s authoritative ranking of the nation’s 50 largest apart-

ment owners and 50 largest apartment managers.

Based in Washington, D.c., the national multi Housing council represents the apart-

ment industry and the 16 million households who live in apartments in the u.s. nmHc’s

members are the principal officers of the larger and more prominent apartment firms and

include owners, developers, managers and financiers. the council operates a joint legisla-

tive program with the national Apartment Association that targets such issues as housing

policy, multifamily finance, environmental affairs, tax policy, fair housing, building codes,

technology, human resources, and rent control. in addition, nmHc conducts apartment-

related research, encourages the exchange of strategic business information, and promotes

the desirability of apartment living. For nearly two decades, the nmHc 50 has identified key

trends in apartment ownership and management, becoming the definitive source for such

information.

to ensure the 2006 nmHc 50 is as complete and accurate as possible, nmHc staff

gathered names of apartment owners and managers from a wide range of sources. A senior

officer from each firm was contacted for the information included in the rankings, which are

for properties owned or managed on January 1, 2006. Although membership in the national

multi Housing council is not required for inclusion in the survey, 87 percent of the firms

appearing in this year’s rankings are nmHc members. nmHc expresses appreciation to the

industry leaders for their participation in this annual effort.

the nmHc 50 was compiled and analyzed by nmHc staff members mark obrinsky and

rich levy under the leadership of nmHc president Doug Bibby. in addition to the nmHc 50

rankings and analysis of the results, this section includes a listing of the officers and mem-

bers of the national multi Housing council. nmHc staff biographies round out the section.

For those interested in joining the apartment industry’s leadership, nmHc welcomes

inquiries to its Washington office at 202/974-2300, or you can visit nmHc’s web site at

www.nmhc.org.

supplement design and layout: Katja l. Adams




APARTMENTS WITH 2006 2005 OWNERSHIP INTEREST RANK RANK COMPANY HEADQUARTERS CORPORATE OFFICER 2006 2005

NATIONAl MUlTI HOUSINg COUNCIl 50 (50 largest u.s. Apartment owners as of January 1, 2006)

2006 Apartment Ownership

nr=not ranked

1 2 Aimco Denver, co terry considine 233,738 256,608

2 3 equity residential chicago, il David J. neithercut 197,404 200,149

3 4 mmA Financial, llc Baltimore, mD michael l. Falcone 179,133 181,501

4 6 Boston capital corporation Boston, mA John p. manning 147,000 129,971

5 5 sunAmerica Affordable Housing partners, inc. los Angeles, cA michael l. Fowler 143,702 136,539

6 9 Archstone-smith englewood, co r. scot sellers 81,914 75,959

7 8 united Dominion realty trust, inc. richmond, vA thomas W. toomey 74,875 79,291

8 11 esic realty partners columbia, mD Jeffrey H. Donahue 74,778 68,261

9 20 Wachovia charlotte, nc G. Kennedy thompson 70,429 45,903

10 13 the richman Affordable Housing corporation Greenwich, ct richard p. richman 67,501 57,505

11 16 camden property trust Houston, tX richard J. campo 65,580 51,456

12 15 Ge commercial Finance real estate stamford, ct michael pralle 57,366 52,002

13 18 pnc multifamily capital portland, or Donald Giffen 57,232 50,375

14 17 edward rose Building enterprise Farmington Hills, mi sheldon rose 52,237 51,334

15 14 sentinel real estate corporation new York, nY John H. streicker 50,176 56,597

16 21 Fairfield residential llc san Diego, cA christopher e. Hashioka 48,033 42,185

17 12 Alliance Holdings, llc chicago, il Andrew W. schor 45,681 63,510

18 nr colonial properties trust Birmingham, Al thomas lowder 45,242 nr

19 19 lincoln property company Dallas, tX J. timothy Byrne 43,470 46,367

20 22 Home properties, inc. rochester, nY edward J. pettinella 43,432 41,797

21 34 American management services (dba pinnacle) seattle, WA stan J. Harrelson 41,457 28,752

22 23 AvalonBay communities, inc. Alexandria, vA Bryce Blair 40,606 39,020

23 27 Wnc & Associates, inc. irvine, cA Wilfred n. cooper Jr. 40,541 34,364

24 24 the michaels Development company marlton, nJ michael J. levitt 40,369 38,958

25 26 Forest city residential Group, inc. cleveland, oH ronald A. ratner 39,432 35,295

April 2006 NMHC 50 7


APARTMENTS WITH 2006 2005 OWNERSHIP INTEREST RANK RANK COMPANY HEADQUARTERS CORPORATE OFFICER 2006 2005

26 25 mid-America Apartment communities, inc. memphis, tn H. eric Bolton Jr. 38,227 37,904

27 30 raymond James tax credit Funds, inc. st. petersburg, Fl ronald m. Diner 37,000 30,000

28 28 picerne real estate Group phoenix, AZ David r. picerne 36,759 31,188

29 7 morgan stanley new York, nY John mack 33,845 100,000

30 37 Blackrock realty Florham park, nJ Fred lieblich 32,635 25,466

31 29 Holiday retirement corp./colson & colson salem, or William e. colson 31,737 30,931

32 35 irvine company Apartment communities ‘’iAc’’ irvine, cA max Gardner 29,239 27,675

33 33 Amli residential properties trust chicago, il Gregory t. mutz 28,659 29,282

34 36 related management new York, nY Jeff Blau 28,471 27,311

35 30 uBs realty investors llc Hartford, ct matthew lynch 28,000 30,000

36 39 essex property trust, inc. palo Alto, cA Keith r. Guericke 26,587 24,992

37 nr Westdale Asset management Dallas, tX Joseph G. Beard 25,968 18,629

38 41 Bre properties, inc. san Francisco, cA constance B. moore 24,440 24,686

39 45 southern management corporation vienna, vA David H. Hillman 23,471 23,471

40 46 northwestern investment management company milwaukee, Wi edward J. Zore 23,444 22,950

41 nr prudential mortgage capital company parsippany, nJ charles lowrey 23,000 nr

42 38 Kushner companies Florham park, nJ Alan r. Hammer 22,000 25,000

43 40 post properties, inc. Atlanta, GA David p. stockert 21,791 24,700

44 nr madison Apartment Group philadelphia, pA Joseph F. mullen 21,737 21,157

45 49 security properties, inc. seattle, WA John m. orehek 21,478 21,694

46 nr milestone management Addison, tX steve t. lamberti 21,365 nr

47 42 trammell crow residential Atlanta, GA J. ronald terwilliger 21,223 24,023

48 30 Goldman, sachs & co. new York, nY stuart rothenberg 21,000 30,000

49 nr investors management trust real estate Group, inc. sherman oaks, cA John tesoriero 20,827 nr

50 44 Gables residential trust Atlanta, GA David D. Fitch 20,641 23,670



1 2 equity residential chicago, il David J. neithercut 197,774 203,490

2 1 Aimco Denver, co terry considine 191,951 215,256

3 3 American management services (dba pinnacle) seattle, WA stan J. Harrelson 135,525 132,327

4 4 lincoln property company Dallas, tX J. timothy Byrne 112,928 107,877

5 6 Archstone-smith englewood, co r. scot sellers 81,165 75,046

6 5 united Dominion realty trust, inc. littleton, co thomas W. toomey 74,708 80,137

7 12 Greystar real estate partners, llc Houston, tX robert A. Faith 72,981 56,510

8 15 camden property trust Houston, tX richard J. campo 65,800 52,515

9 13 Winncompanies Boston, mA samuel ross 61,427 55,856

10 14 Fairfield residential llc san Diego, cA christopher e. Hashioka 57,344 53,766

11 nr riverstone residential Group rockville, mD christine Freeland 55,000 nr

12 17 the conAm Group of companies san Diego, cA J. Bradley Forrester 52,600 51,000

13 11 sentinel real estate corporation new York, nY John H. streicker 50,176 56,597

14 16 edward rose Building enterprise Farmington Hills, mi sheldon rose 49,979 51,334

15 18 Home properties, inc. rochester, nY edward J. pettinella 47,001 47,313

16 nr colonial properties trust Birmingham, Al thomas lowder 46,920 nr

17 10 Alliance Holdings, llc chicago, il Andrew W. schor 45,681 63,510

18 27 capstone real estate services, inc. Austin, tX James W. Berkey 42,102 32,190

19 20 AvalonBay communities, inc. Alexandria, vA Bryce Blair 40,606 39,121

20 22 picerne real estate Group phoenix, AZ David r. picerne 39,721 35,883

21 21 mid-America Apartment communities, inc. memphis, tn H. eric Bolton, Jr. 38,227 37,904

22 31 Westdale Asset management Dallas, tX Joseph G. Beard 37,758 29,328

23 23 Fpi management Folsom, cA Dennis treadaway 36,682 35,322

24 19 Gables residential trust Atlanta, GA David D. Fitch 36,309 44,070

25 34 village Green companies Farmington Hills, mi Jonathan Holtzman 33,500 27,261

2006 2005 APARTMENTS MANAgED RANK RANK COMPANY HEADQUARTERS CORPORATE OFFICER 2006 2005

NATIONAl MUlTI HOUSINg COUNCIl 50 (50 largest u.s. Apartment managers as of January 1, 2006)

nr=not ranked

2006 Apartment Managers

Associate Members

April 2006 NMHC 50 �


2006 2005 APARTMENTS MANAgED RANK RANK COMPANY HEADQUARTERS CORPORATE OFFICER 2006 2005

michael H. Godwin

26 36 Alliance residential company phoenix, AZ Bruce Ward 32,800 26,828

27 29 BH equities, inc. Des moines, iA laurie lyons 32,798 30,198

28 28 Holiday retirement corp./colson & colson salem, or William e. colson 32,770 32,166

29 24 the michaels Development company marlton, nJ michael J. levitt 32,285 30,583

30 7 Wachovia charlotte, nc G. Kennedy thompson 30,309 72,715

31 30 Amli residential properties trust chicago, il Gregory t. mutz 29,452 30,075

32 33 irvine company Apartment communities ‘’iAc’’ irvine, cA max Gardner 29,239 27,675

33 25 leDic management Group, inc. memphis, tn pierce ledbetter 29,228 34,336

34 38 related management new York, nY Jeff Blau 28,811 26,167

35 35 rAm partners, llc Atlanta, GA William F. leseman 28,591 27,003

36 37 Drucker & Falk, llc raleigh, nc Kellie Falk-tillett 28,307 26,404

37 42 simpson Housing limited partnership Denver, co J. robert love 26,903 25,350

38 32 lane company Atlanta, GA William H. Donges 26,756 27,947

39 47 essex property trust, inc. palo Alto, cA Keith r. Guericke 26,195 24,600

40 nr the lynd company san Antonio, tX Adam David lynd 25,413 20,177

41 nr sawyer realty Holdings llc needham, mA Dale s. okonow 25,279 nr

42 nr Blackrock realty san Francisco, cA Fred lieblich 24,880 nr

43 48 edgewood management corporation silver spring, mD Jack H. murray 24,660 24,244

44 nr Ambling companies, inc. valdosta, GA William F. Barkwell/

24,459 nr

45 46 Bre properties, inc. san Francisco, cA constance B. moore 24,440 24,686

46 50 Associated estates realty corporation richmond Heights, oH Jeffrey i. Friedman 23,911 23,457

47 41 Bernard/Allison management services, inc. phoenix, AZ Kimball v. Bernard 23,818 25,358

48 49 southern management corporation vienna, vA David H. Hillman 23,471 23,471

49 40 Western national property management irvine, cA michael K. Hayde 22,816 25,954

50 nr Grenadier realty corp. Brooklyn, nY Felice michetti 22,500 nr



NMHC 50:

Hot markets Bring Dynamic changesOvERvIEW

After several challenging years, the long-awaited apartment

market recovery finally came to fruition in 2005. Although

job growth in 2005 remained more subdued than in the 1990s,

a second consecutive year of steady gains pushed employment

past its previous peak and led to increased demand for apart-

ment residences. This increased demand dovetailed nicely with

steady (rather than exuberant) new construction, which has

prevailed for most of the last decade. In addition, the feverish

pace of condo conversions removed some units from the rental

supply, which helped push occupancy rates to a sustainable 94

percent by year-end.

Thanks to improving market fundamentals, strong demo-

graphics favoring apartments in the years ahead, and continued

demand by condo converters, sales of apartment properties

grew even more frenzied in 2005. Not only was the transaction

volume 70 percent higher than the record-level set in 2004, it

was greater than the previous two years combined—and each

of those was a record at the time! In all, $86 billion in assets

changed hands.

As was the case last year, no single strategy was dominant

among the nation’s leading apartment firms. Some firms took

advantage of the rising prices to reposition their assets and pare

their portfolios of properties that no longer fit their focus, while

others chose to add substantially to their owner or management

portfolios (or both). As a result of these cross-currents, although

there are some new firms in the top half of the rankings, the

names of the 10 firms heading up the list of top owners and

managers are familiar ones. Still, there are a few new firms who

debut on the NMHC 50 lists in the top half of the rankings.

In addition to these market forces, some of the movement

recorded in this year’s NMHC 50 owners list resulted from a

change in the survey’s definition of ownership. The increasingly

complex concept of apartment ownership necessitated updating

the definition to better reflect how the industry views apartment

ownership. The change means that some of the firms previously

counted as owners do not appear in this year’s rankings.

As of January 1, 2006, the top 50 owners had an ownership

interest in 16.1 percent of the nation’s estimated 16.5 million

apartments, and the portfolios of the 50 managers represented

14.5 percent of the nation’s apartments.1 Interestingly, although

the NMHC 50 owners have 10.9 percent more apartments than

the top 50 managers do, the largest owner is 18.2 percent big-

ger than the largest manager, and the median owner has 17.1

percent more apartments than the median manager; nonethe-

less, management firms needed 9.0 percent more apartments to

make the rankings than owners. In fact, the smallest firm on the

management list has more apartments in its portfolio than nine

of the firms on the ownership list.

The NMHC 50 rankings have long been used to measure

concentration in the apartment sector. On the ownership side,

the results show an increasing number of medium-to-large

firms rather than the emergence of a few giants. The median

portfolio of an NMHC 50 owner firm increased by 6.1 percent

to an all-time record of 38,830 units (and likely would have

been even higher under the old definition of ownership). On the

management side, all measures of concentration—largest firm,

threshold for entry, mean, and median—edged down a bit.

Finally, there was even more change than usual among public

real estate investment trusts (REIT), as a number of apartment

REITs were bought by or merged with both public and private

firms. Even so, the number of apartments owned by REITs on

the NMHC 50 fell by only 1.2 percent, to 922,741 units. The

REIT share of the total apartment stock edged down slightly to

5.6 percent (from 5.7 percent last year).

By Mark Obrinsky, vice president of research and chief economist, national multi Housing council

NMHC 50 PROFIlE 2006Portfolio Size:no. of Apartments owned 2,644,872no. of Apartments managed 2,383,956

Minimum Entry Threshold:no. of Apartments owned 20,641no. of Apartments managed 22,500

1the apartment stock is defined as the total number of apartments in structures with at least five units.



APARTMENT OWNERS

WHAT IS OWNERSHIP?Over the 17 years of this NMHC survey, the concept of apart-

ment ownership has become increasingly complex. This is a

reflection of changes in the industry itself and, in particular,

the often complicated ownership structures designed to bet-

ter meet the needs of investors as well as capitalize on the spe-

cial strengths of the firms or individuals leading the transac-

tion. As a result, we find it necessary to update the definition

of ownership employed by the NMHC 50 to clarify how the

industry views apartment ownership.

In the past, the NMHC 50 has included investment fund

managers as owners. These firms make investments in

apartments—with capital supplied primarily (or entirely)

by clients—and, therefore, may have little or no direct

equity ownership interest in those units. Beginning this year,

these fund managers will be treated as owners only if they

retain substantial equity in the apartment property or if they

maintain effective responsibility and decision-making over the

investment property. Thus, firms whose role is limited to funds

management but which do not exercise effective control over the

property will not be treated as owners.

In a similar vein, tax credit syndicators and franchisers have,

in the past, been regarded as owners. Going forward, such firms

will be treated as owners only if they retain a fiduciary responsi-

bility. (As always, when firms function strictly as advisers rather

than investors, they are not regarded as owners.)

The upshot is that some firms that have been counted as

owners in the past feel they do not meet the updated definition

of ownership, hence do not appear in this year’s rankings. The

biggest such firm is CharterMac, which headed the NMHC 50

owners list in both 2004 and 2005.

As has been the case in the past, the NMHC 50 does not

distinguish between partial and full ownership. Some apart-

ment firms own sizable apartment properties through joint

ventures in which their share could range anywhere from one to

99 percent. Others are primarily the sole owners of their apart-

ments. In principle, it would be desirable to account for partial

ownership—treating 50 percent ownership of 100 apartments

as equivalent to full ownership of 50 units, for example. In prac-

tice, it is not feasible to make such distinctions.

The survey will also continue to exclude condominiums,

cooperatives, hotel rooms, nursing homes, hospital rooms, and

mobile homes. Rental housing for seniors (age-restricted apart-

ments) is included, although assisted living and congregate care

facilities are not. Since we measure industry concentration by

comparing the top 50 owners and managers against the nation’s

entire apartment stock, only U.S. apartments are included.

THE lEADERSWith the change in ownership definition and the departure of

CharterMac from the top of the list, Apartment Investment and

Management Company (AIMCO) returns to the #1 position.

Although it was a substantial net seller last year—in fact, for

the second straight year it led all firms in net dispositions with

almost 23,000—its 233,738 units moves it back into the top slot

it held from 1999-2002. Equity Residential moves back up into

the #2 position though it pared some units from its portfolio

as well. MMA Financial moves into third place, while Boston

Capital leapfrogs SunAmerica into the #4 slot.

Following Archstone-Smith and United Dominion come

three new firms to the top 10: ESIC Realty Partners and The

Richman Affordable Housing Corporation each jumped three

spots to gain entry into the owners’ “leader board,” while

Wachovia’s net increase of almost 25,000 apartment units rock-

eted it up from the #20 spot last year to #9 this year.1

THE NEWCOMERSThere are six newcomers to this year’s NMHC 50 owners, up

from last year’s count of four. Colonial Properties Trust (#18) is

the largest, with 45,252 units thanks to its merger with former

NMHC 50 owner Cornerstone Realty Income Trust, which

owned almost 24,000 apartments at the time. Westdale Asset

Management, with just under 26,000 units, enters the list at

1lefrak organization has declined to respond to the nmHc survey in recent years. While we continued to list them among the top 10 owners and managers based of previous estimates, those estimates are now too far out of date to be serviceable. since we have no way to verify the size and extent of their ownership and management holdings, we had no choice but to drop the company from this year’s rankings.

TOP 10 APARTMENT OWNER FIRMSRank Company No. of

Apartments with Ownership Interest

1 Apartment investment and management company 233,7382 equity residential 197,4043 mmA Financial 179,1334 Boston capital corporation 147,0005 sunAmerica Affordable Housing partners 143,7026 Archstone-smith 81,9147 united Dominion realty trust 74,8758 esic realty partners 74,7789 Wachovia 70,42910 the richman Affordable Housing corporation 67,501

NMHC 50 OWNERSNumber of Apartments Ownedtop 10 1,270,474second 10 508,449top 25 1,981,328second 25 663,544top 50 2,644,872

Portfolio Size Measuresmean 52,897median 38,830no. 1 firm 233,738no. 50 firm 20,641

Share of National Apartment Stock (%) top 10 7.7%top 50 16.1%



#37. Prudential Mortgage Capital Company, with 23,000 apart-

ments, comes in at #41. Madison Apartment Group, Milestone

Management, and Investors Management Real Estate Group,

with less than 1,000 units separating their portfolios, enter the

NMHC 50 at #44, #46, and #49, respectively.

RISINg STARSThis year’s top rising star, Wachovia at the #9 spot, was also one of

last year’s rising stars. The firm recorded the biggest net increase

in its portfolio of apartments in 2005 with a gain of almost 25,000.

In fact, the increase in its apartment holdings exceeds the total

holdings of all but 37 of the nation’s apartment owners.

Boston Capital’s addition of more than 17,000 units not only puts

it back on the list of rising stars following a one-year absence, it also

makes it the second largest net gainer in 2005. Camden Property

Trust (#11), a mainstay on the NMHC 50 owners list since 1995,

returns to the ranks of the fastest growers for the first time since

1999. The firm, which last year completed its 2004 agreement to

acquire Summit Properties, increased its portfolio by 14,124 units.

Other rising stars include American Management Services (dba

Pinnacle), which added 12,705 apartment units to take it to #21 in

the rankings, and The Richman Affordable Housing Corporation,

which is among the fastest growers for the second consecutive year.

The latter’s net gain of almost 10,000 units was just enough to

enable it to break into the top 10 owner rankings in the #10 slot.

In terms of the rankings, five firms made significant jumps.

American Management Services (dba Pinnacle) posted the larg-

est gain, rising 13 slots to #21, followed by Wachovia, which rose

11 slots to #9. BlackRock Realty gained seven slots to reach #30,

while Southern Management Corporation and Northwestern

Investment Management Corporation both moved up six posi-

tions to reach the #39 and #40 slots, respectively.

REITS IN THE RANKINgSDespite handily outperforming the overall equity market in

2005—as they have for five of the last six years—public apartment

REITs largely found themselves valued at a discount relative to the

private market valuation of real estate. As a result, they attracted

considerable attention from investors, especially private, looking to

acquire apartment properties, apartment operations, or both. The

following notable REIT transactions took place in 2005: Camden

Property completed its acquisition of Summit Property; Gables

Residential was acquired by a private equity partnership sponsored

by ING Clarion; Cornerstone Realty Income merged with diversi-

fied public REIT Colonial Properties (under the latter’s name);

Morgan Stanley agreed to acquire AMLI Residential Properties,

although the deal wasn’t completed until February 2006; and

Town and Country Trust began acquisition talks, which were com-

pleted in February 2006 when it agreed to be acquired by Magazine

Acquisition GP LLC, a joint venture investment vehicle formed

by affiliates of Morgan Stanley Real Estate, Onex Real Estate and

Sawyer Realty Holdings LLC. Put simply, the apartment REIT

landscape has changed considerably in the last 18 months.

As was the case last year, there was no single prevailing strate-

gy among apartment REITs. Some of the larger REITs—includ-

ing AIMCO, Equity Residential, and United Dominion—were

net sellers, taking advantage of the high offering prices resulting

from continued low mortgage rates and strong interest from

condo converters in most parts of the country. Others—

among them Archstone-Smith, Camden Property, and Colonial

Properties—were net acquirers.

Surprisingly, the net impact of these many cross-currents was

relatively muted. The number of apartment REITs in the NMHC

50 owners list fell by just one to 13, while the total number of

units owned by apartment REITs declined by just one percent to

922,741. The REIT share of the total apartment stock continued

its downward trend, falling slightly to 5.6 percent (from 5.7 per-

cent last year). This is the lowest share since 2000, when REITs

controlled 6.4 percent of the nation’s apartment stock.

A few accounting points need to be made regarding the REIT

figures shown above. In particular, the REIT numbers in the

NMHC 50 do not include private REITs that are established within

larger business organizations. The figures also do not include

PUblIClY TRADED REITs AMONg TOP APARTMENT OWNERSRank Company No. of

Apartments with Ownership Interest

1 Apartment investment and management company 233,7382 equity residential 197,4046 Archstone-smith 81,9147 united Dominion realty trust, inc. 74,87511 camden property trust 65,58018 colonial properties trust 45,24220 Home properties, inc. 43,43222 AvalonBay communities 40,60626 mid-America Apartment communities, inc. 38,22733 Amli residential properties trust 28,65936 essex property trust, inc. 26,58738 Bre properties, inc. 24,68643 post properties, inc. 21,791

Total �22,741

APARTMENT OWNERSlargest Portfolio growth ApartmentsWachovia 24,526Boston capital corporation 17,299camden property trust 14,124American management services (dba pinnacle) 12,705the richman Group Affordable Housing corporation 9,996

Moving Up in Rank SlotsAmerican management services (dba pinnacle) +13Wachovia +11Blackrock realty +7southern management corporation +6northwestern investment management company +6


the nmHc 50 ranks apartment owners by the number of apartments in which they hold an

ownership interest. For the majority of companies in the listing, this is the only measure of size that is both consistent and generally available.

publicly traded reits, however, can also be measured by total market capitalization. As with other publicly traded companies, size can be estimated by the stock market’s valuation of the company’s equity and the book value of its debt.

With one exception, apartments represent the majority of assets for all of the reits in the nmHc 50, therefore market capitalization is a useful and generally consistent measure of the market’s valuation of the companies’ apartment business. colonial properties trust, as a diversi-fied reit, owns substantial real estate assets aside from apartments; hence its total market capitalization overstates somewhat the market value of its apartment portfolio. even so, it ranks higher when measured by units owned than by market capitalization.

the accompanying table ranks the publicly traded reits in the nmHc 50 ownership list by the number of units. it also shows their total market capitalization and how they would rank by that standard. there are several notable differences in the rankings. Aimco, which holds the highest position among reits in the nmHc 50, has an ownership interest in 18 percent more apartments than equity residential, but equity residential is almost 70 percent larger when measured by total market capitalization. the other reits whose market value rank is higher than their nmHc rank are: Archstone-smith, AvalonBay, essex property, Bre properties, and post properties.

the differences between the two rankings have several explanations. the most important difference has to do with partial ownership of apartments. in addition to being the sole owner of thousands of apartments, some companies have partial ownership interest in others, typi-cally through involvement in a partnership, as either the general partner or a limited partner.

While this ownership interest may be as small as one percent, the apartments enter the count as if they were owned exclusively by the reit. the valuation measure, by contrast, effectively adjusts for the extent of ownership. For example,

Aimco has full ownership of only about 47 per-cent of its apartments.

other reasons for differences between the rankings include: (1) differences in apartment value among companies based on apartment quality or geography; (2) differences in the investor assessments of the quality and sta-bility of current income as well as the growth prospects for the company; and (3) differences in portfolio holdings of assets other than apart-ments, including both “hard” assets and the valuation of contracts for “third-party manage-ment” of apartments owned by others.

SIzINg THE APARTMENT REITs

APARTMENT REIT SIzE AND RANK bY TWO MEASURES (as of January 1, 2006)

Apartments Company with Rank Total Cap rank Ownership among Capitalization among

Interest REITs ($ millions) REITsApartment investment and management company 233,738 1 11,468.1 3equity residential 197,404 2 19,351.4 1Archstone-smith trust 81,914 3 15,332.2 2united Dominion realty trust, inc. 74,875 4 6,615.6 5camden property trust 65,580 5 5,820.7 6colonial properties trust 45,242 6 5,459.5 7Home properties, inc. 43,432 7 3,885.3 9AvalonBay communities 40,606 8 9,102.2 4mid-America Apartment communities, inc. 38,227 9 2,488.7 12Amli residential properties trust 28,659 10 1,654.3 13essex property trust, inc. 26,587 11 3,695.8 10Bre properties, inc. 24,686 12 4,121.0 8post properties, inc. 21,971 13 2,755.0 11

note: company total capitalization sums: (1) market value of shares outstanding, including operating partnership units; (2) the value of perpetual preferred stock; and (3) the book value of total debt outstanding. capitalization estimates for December 31, 2005, are provided by stifel, nicolaus & company, inc.

publicly traded companies in the NMHC 50 that have not elected

REIT status. Finally, to permit comparisons with the portfolios of

non-REIT owners, the NMHC 50 ranks by number of apartments

in which the entity has an ownership interest. This gives a different

ranking for apartment REITs than would result from alternative

size measures, such as the companies’ capitalization. The accom-

panying sidebar discussion compares the rankings by both mea-

sures—units owned and market capitalization.

INDUSTRY gROWTH AND CONCENTRATIONDespite the presence of a number of very large owners, the

apartment industry remains a good deal less concentrated than

many other industries. The 10 largest owners have just under 1.3

million units—a substantial amount, but only 7.7 percent of the

estimated 16.5 million apartments nationally. The top 25 owners

hold 12.0 percent of the national apartment stock, and the top 50

firms own 16.1 percent.

The changed definition of ownership in this year’s survey—to

reflect changing ownership structure in the industry—makes

comparisons with previous years strained. While it isn’t possible

to fully reconstruct the data from previous years using the cur-

rent definition—still less is it possible to determine how large

the 2006 NMHC 50 would have been if the definition hadn’t

changed—our best estimates suggest that the number of apart-

ment units owned by the NMHC 50 owners might have shown a

slight increase from 2005 to 2006.

Notwithstanding the impact of the new definition, one

measure of concentration shows an unambiguous increase: the

median portfolio of the top 50 owners is now 38,830. Not only

is that 6.1 percent higher than last year (and the increase would

have been even larger without the changed definition), it is an

all-time record. This is clearly the result of increasing num-

bers—and holdings—of medium-to-large firms, rather than the

emergence of a handful of giants.




APARTMENT MANAgERSmany of the top owners in the apartment industry self-manage the properties they own and, therefore, are also among the nation’s largest apartment managers. Hence, they appear on both the top 50 owners and managers lists. other firms specialize in property management and provide this service to apartment owners, including some of those in the nmHc 50 owners list.

THE lEADERSTraditionally, the NMHC 50 management list has

been more stable than the ownership list. That isn’t

the case this year, however. Equity Residential, which

manages its entire portfolio of 197,774 units, heads

the list of top management firms for the first time

ever (though it has appeared atop the NMHC 50 ownership list

in the past). Long-time leader AIMCO slides down a notch to

#2, after seven years in the top spot. American Management

Services (dba Pinnacle) and Lincoln Property retain their

rankings from 2005, while Archstone-Smith (#5) and United

Dominion (#6) switched places.

There are four new firms in the top 10 list this year, starting

with Greystar Real Estate Partners; with 72,981 units under

management, they come in at #7. Camden Property moves into

the #8 position, while WinnCompanies and Fairfield Residential

round out the list at #9 and #10, respectively.

Among the firms leaving the top 10 are Wachovia, which in 2005

jumped from #11 to #7. This year, the firm ranks # 31, after cutting

its management portfolio by more than half. Industry stalwart

Trammell Crow also leaves the top 10 list after selling its manage-

ment portfolio to newcomer Riverstone Residential Group (#11).

THE NEWCOMERSSeven firms cracked the NMHC 50 management list for the first

time, up from six last year. Two newcomers debuted in high

positions. Riverstone Residential, a spin-off from Trammell

Crow Residential, has the 11th largest management portfolio,

while Colonial Properties Trust enters the list at #16 after

its merger with Cornerstone Realty Income Trust. The Lynd

Company (#40), Sawyer Realty Holdings (#41), BlackRock

Realty (#42), and Ambling Companies, Inc. (#44) are also new-

comers to the NMHC 50, while Grenadier (#50) makes a return

engagement after a two-year absence.

RISINg STARS OF MANAgEMENTThe biggest portfolio increases among firms in this year’s

management NMHC 50 came at some of the larger firms.

Leading the way was Greystar Real Estate Partners (#7), which

increased the number of units under management by 16,471,

and Camden Property Trust (#8), with 13,285 additional units.

They are followed by Capstone Real Estate Services (#18), with

just under 10,000 new units to its portfolio and Westdale Asset

Management (#22), whose portfolio of units under manage-

ment rose by 8,430.

After jumping four slots last year, Alliance Residential was

the biggest mover in the rankings this year, rising 10 slots to the

#26 slot. Capstone was the second biggest mover in the rank-

TOP 10 APARTMENT MANAgEMENT FIRMSRank Company No. of

Apartments Managed

1 equity residential 197,7742 Apartment investment and management company 191,9513 American management services (dba pinnacle) 135,5254 lincoln property company 112,9285 Archstone-smith 81,1656 united Dominion realty trust, inc. 74,7087 Greystar real estate partners, llc 72,9818 camden property trust 65,8009 Winncompanies 61,42710 Fairfield residential, llc 57,344

NMHC 50 MANAgERSNumber of Apartments Managed 2006 2005 2004 2003 2002 2001top 10 1,051,603 1,087,273 1,111,312 1,194,738 1,172,515 1,130,880second 10 469,786 508,082 502,575 476,745 451,706 432,056top 25 1,703,865 1,773,679 1,793,148 1,847,756 1,800,142 1,741,571second 25 680,091 673,810 669,799 632,105 638,523 610,989top 50 2,383,956 2,447,489 2,462,947 2,479,861 2,438,665 2,352,560

Portfolio Size Measures 2006 2005 2004 2003 2002 2001mean 47,679 48,950 49,259 49,597 48,773 47,051median 33,150 33,559 32,164 31,592 31,320 32,522no. 1 firm 197,774 215,256 239,875 309,000 303,805 325,094no. 50 firm 22,500 23,457 23,469 22,353 21,105 20,500

Share of National Apartment Stock (%) 2006 2005 2004 2003 2002 2001top 10 6.4% 6.6% 6.7% 7.4% 7.4% 7.2%top 50 14.5% 14.8% 14.9% 15.3% 15.3% 14.9%



ings, rising nine slots. In just two years, the firm has gone from

#45 to #18. Westdale and Village Green also jumped nine slots,

moving into the #22 and #25 positions, respectively, while Essex

Property Trust (#39) rose by eight slots.

APARTMENT MANAgEMENT gROWTH AND CONCENTRATIONThe 2006 NMHC 50 manage a total of 2,383,956

apartments, a third consecutive decline from the

prior year and the smallest figure since 2001. The

decrease was concentrated in the top half of the

rankings: the largest 25 firms saw their manage-

ment portfolios drop by 3.9 percent, while the

second 25 actually increased the number of units

managed by 0.9 percent.

The share of all apartments managed by the

top 50 firms edged down to 14.5 percent from

14.8 percent last year. This represents the smallest

share of apartments managed by the NMHC 50 in

seven years and confirms that the peak was reached

in 2002-2003. Another measure of concentration

– the share of NMHC 50 management portfolios

accounted for by the 10 largest managers – likewise declined, to

44.1 percent, down from a peak of 49.1 percent in 2000 and the

lowest figure since 1995.

APARTMENT MANAgERSlargest Portfolio growth ApartmentsGreystar real estate partners, llc 16,471camden property trust 13,285capstone real estate services, inc. 9,912Westdale Asset management 8,430

Moving Up in Rank SlotsAlliance residential +10capstone real estate services +9Westdale Asset management +9village Green +9essex property trust +8

SPECIAlISTSThere are 27 companies that are among both the top 50 own-

ers and the top 50 managers—a drop from last year’s figure

of 32 such companies. Hence each list contains 23 firms that

don’t appear on the other list. While many of these firms are

both owners and managers, their specialization in one area

means they do not reach the threshold needed to rank on

both lists.

Among these specialists are some of the largest firms on

each list. Three of the top five owners—and five of the top 10

owners—do not appear in the management rankings. On the

management list, two of the top 10—and five of the top 20—do

not appear on the ownership list.

As was the case last year, there are two firms that made both

the top 50 owners and managers rankings, but whose manage-

ment portfolios greatly exceed the number of apartments they

own: American Management, which manages 94,068 more

units than it owns, and Lincoln Property, which has 69,458

more units under management than in its ownership portfolio.

Gables, Fairfield and Westdale also manage considerably more

units than they own.

Likewise, there are two firms on both lists whose ownership

portfolios exceed the number of units managed by more than

40,000: AIMCO (41,787 more units owned) and Wachovia

(40,120 more units owned).

largest Firms Appearing on Ownership list Only:mmA Financial, llcBoston capital corporationsunAmerica Affordable Housing partners, inc.esic realty partnersthe richman Affordable Housing corporation

largest Firms Appearing on Management list Only:Greystar real estate partners, llcWinncompaniesriverstone residential GroupconAm Group of companiescapstone real estate services

APARTMENT MANAgEMENT (top 50 share of total apartment stock)

18%

16%

14%

12%

10%

8%

6%

4%

2%

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top 10 top 25 top 50

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