We consolidate variable interest entities (“VIE”) in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. As of June 30, 2026 and December 31, 2025, the AIR Operating Partnership consolidated four VIEs. Please see Note 11 for further discussion regarding our consolidated VIEs.

The AIR Operating Partnership provides property management, construction management, and corporate services to apartment communities affiliated with Blackstone. In connection with providing these services, AIR incurs property management, construction management, general and administrative, and other expenses. These expenses are recovered from Blackstone-affiliated apartment communities through a combination of contractual property management and construction management fees, as well as direct cost reimbursements.

Contractual property management and construction management fee revenue is reflected within Other revenues in the condensed consolidated statements of operations, as presented in the table below (in thousands):

Direct cost reimbursements are reflected as an offset to the related expense line in the condensed consolidated statements of operations, in the amounts presented in the table below (in thousands):


	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Property management expenses	$	3,164	$	—	$	3,164	$	—
General and administrative expenses	1,083		677		2,766		1,072
Other expense, net	693		—		693		—
Total corporate service reimbursements received	$	4,940	$	677	$	6,623	$	1,072

The amounts described in this section reflect that our property management and corporate platforms will generally break even over time as it relates to related-party transactions with our Blackstone affiliates.

As of June 30, 2026 and December 31, 2025, $4.9 million and $2.3 million represents amounts due from affiliates presented within Other assets, net in our condensed consolidated balance sheets, respectively.

We have various classes of preferred OP Units. Each class of preferred OP Units is currently redeemable at the holders’ option, with a cash value equal to the redemption price. The preferred OP Units are therefore presented within temporary partners’ capital (deficit) in our condensed consolidated balance sheets.


Balance at January 1, 2026	$	56,456
Preferred distributions	(2,298)
Redemption of preferred units	(44)
Net income allocated to preferred units	2,295
Balance at June 30, 2026	$	56,409

As of June 30, 2026 and December 31, 2025, we had 1,986,635 and 1,988,454 redeemable preferred OP Units issued and outstanding, respectively. Distributions per annum range from 1.92% to 8.75% per class and $0.48 to $8.00 per unit.

Real estate and other long-lived assets to be held and used are individually evaluated for impairment when conditions exist that may indicate the carrying amount of a long-lived asset may not be recoverable. We use the held for sale impairment model for properties classified as held for sale, whereby an impairment charge is recognized if the carrying amount of the long-lived asset classified as held for sale exceeds its fair value less cost to sell. If an impairment indicator exists, we compare the asset’s expected future undiscounted cash flows to its current carrying value to assess whether impairment measurement is necessary. Upon determination that an impairment has occurred, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the real estate and other long-lived assets.

The measurement of impairment is based on the fair value of the community and incorporates various estimates, assumptions, and market data, the most significant being rental rates, operating expense assumptions, expected hold period, capitalization rate, and purchase and sale agreements. We project future rental revenue growth rates using forecasted rates from third-party market research analytics. Property expense growth rates and capitalization rates are based on the apartment communities’ historical, current, and expected future operating results, existing operating expense assumptions, and operational strategies. These projections are adjusted to reflect current economic conditions and require considerable management judgment.

During the three and six months ended June 30, 2026, we evaluated the expected hold period of our apartment communities. Based on the held for sale impairment model, we reduced the carrying value of one apartment community to its estimated fair value and recognized a non-cash loss on impairment of real estate of $2.0 million. During the three months ended June 30, 2026, this property sold for its estimated carrying value.

As of June 30, 2026, goodwill associated with our Same Store operating segment totaled $26.2 million. We perform an impairment test of goodwill annually, or when an interim triggering event occurs, by evaluating qualitative and quantitative factors, if necessary, to determine the likelihood that goodwill may be impaired.

As of June 30, 2026, there are no communities classified within our Other Real Estate segment, as the two remaining communities previously included were reclassified into Same Store, in alignment with our operating segment classification discussed in Note 12. This reclassification represented a triggering event requiring an interim impairment test of goodwill. As a result, we recognized a loss on impairment of goodwill associated with our Other Real Estate segment of $6.1 million during the three and six months ended June 30, 2026.

The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the condensed consolidated financial statements and accompanying notes thereto. Actual results could differ from those estimates.

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures," which requires disaggregated information surrounding entity's expenses. The standard is intended to benefit investors by providing more detailed information about the types of expenses in commonly presented expenses captions. This ASU is effective for public companies with annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the guidance and its impact to the condensed consolidated financial statements.

Accounting standards that have been issued by the FASB, or other standards-setting bodies, that are not yet effective or discussed above are not expected to have a material impact on our consolidated financial statements upon adoption.