On August 2, 2019, America First Multifamily Investors, L.P.
(NASDAQ: ATAX) (the “Partnership”) reported the following results:
As of and for the three months ended
June 30, 2019:
- Total assets of $1.0 billion,
- Total Mortgage Revenue Bond (“MRB”) investments of $759.5
million,
- Total revenues of $14.3 million,
- Net income, basic and diluted, of $0.05 per Beneficial Unit
Certificate (“BUC”), and
- Cash Available for Distribution of $0.08 per BUC.
For the six months ended June 30,
2019:
- Total revenues of $32.0 million for
YTD June 30, 2019, compared to $32.2 million for the comparable
period in 2018,
- Net income, basic and diluted, of
$0.13 per BUC for YTD June 30, 2019 and $0.13 per BUC for the
comparable period in 2018, and
- Cash Available for Distribution of
$0.19 per BUC for the YTD June 30, 2019 and $0.19 per BUC for the
comparable period in 2018.
The Partnership reported the following
notable transactions during the second quarter of
2019:
- Acquired two MRB investments totaling approximately $13.2
million,
- Increased its Investment in unconsolidated entities by
approximately $10.7 million, and
- Redeemed one MRB investment for approximately $6.2
million.
In May 2019, the Partnership executed one new
Term Tender Option Bond (“TOB”) debt financing with Morgan Stanley
for approximately $13.2 million. In addition, in July 2019, the
Partnership executed two new TOB debt financings with Mizuho
Capital Markets totaling approximately $25.8 million. These
represent the first debt financing transactions with each
investment bank. “We are pleased with the new relationships we have
developed with Morgan Stanley and Mizuho,” said Chad Daffer, Chief
Executive Officer of the Partnership. “These relationships
reflect our efforts to diversify the Partnership’s sources of debt
financings to provide greater value to our BUC holders.”
In July 2019, the Partnership entered into
amendments to its Series M-024 and M-033 Tax-Exempt Bond
Securitization (“TEBS”) programs (“TEBS Financings”) with the
Federal Home Loan Mortgage Corporation (“Freddie Mac”). The
amendments resulted in a conversion from variable interest rates to
fixed interest rates for the M-024 and M-033 TEBS Financings.
In addition, the Partnership extended the term of its M-024 and
M-033 TEBS Financings to May 2027 and September 2030,
respectively. As of closing, the total stated interest rate
of the M-024 and M-033 TEBS Financings was approximately 3.05% and
3.24% per annum, respectively.
The amount of the remarketed M-024 Class A TEBS
Certificates was approximately $41.1 million and the M-024 Class B
TEBS Certificates, with a total value of approximately $20.3
million, were retained by the Partnership. The amount of the
remarketed M-033 Class A TEBS Certificates was approximately $31.6
million and the M-033 Class B TEBS Certificates, with a total value
of approximately $21.1 million, were retained by the
Partnership.
“The conversion of the M-024 and M-033 TEBS
Financings from variable to fixed rates and the extension of their
maturity dates further insulates the Partnership against rising
interest rates,” said Daffer. “This is a continuation of our
efforts to transform the Partnership’s debt financing from variable
to fixed rate debt.”
In July 2019, the Partnership entered into a
Sixth Amendment to Credit Agreement (the “Sixth Amendment”) with
Bankers Trust Company (“Bankers Trust”) which modifies certain
provisions of the Credit Agreement between the Partnership and
Bankers Trust on May 14, 2015, as amended. The amendment extends
the maturity date of the Partnership’s $50 million unsecured,
non-operating line of credit (“Non-operating LOC”) to June 2021.
The Partnership also entered into an updated Revolving Line of
Credit Note that includes new terms regarding potential replacement
of the LIBOR rate-based component of the interest rate.
“The extension of the maturity date of the
Partnership’s $50 million Non-operating LOC continues to
demonstrate Bankers Trust’s confidence in the Partnership’s
performance,” said Daffer.
Additionally, in July 2019, Bankers Trust
extended the maturity date of the Partnership’s $10.0 million
unsecured, operating line of credit to June 2021.
Disclosure Regarding Non-GAAP
Measures
This report refers to Cash Available for
Distribution (“CAD”), which is identified as a non-GAAP financial
measure. We believe CAD provides relevant information
about our operations and is necessary, along with net income, for
understanding our operating results. Net income is the
GAAP measure most comparable to CAD. There is no
generally accepted methodology for computing CAD, and our
computation of CAD may not be comparable to CAD reported by other
companies. Although we consider CAD to be a useful
measure of our operating performance, CAD is a non-GAAP measure and
should not be considered as an alternative to net income that is
calculated in accordance with GAAP, or any other measures of
financial performance presented in accordance with
GAAP. See the table at the end of this press release for
a reconciliation of our net income as determined in accordance with
GAAP and our CAD for the periods set forth.
Earnings Webcast/ Conference
Call
The Partnership will host a Webcast/Earnings
Call for Unitholders on Monday, August 5, 2019, at 4:30 p.m.
Eastern Time to discuss its Second Quarter 2019
results. Participants can access the Second Quarter 2019
Earnings Conference Call in one of two ways:
- Webcast link:
https://edge.media-server.com/mmc/p/ptfj94m8 for
registration on Monday, August 5, 2019, approximately 30 minutes
prior to the start of the earnings call, or
- Participants may dial 1-855-854-0934, (direct 720-634-2907),
Conference ID# 2767838 ten minutes before the
earnings call is scheduled to begin, to listen to the audio portion
only.
Following completion of the earnings call, a recorded replay
will be available on the Partnership’s Investor Relations website
at www.ataxfund.com.
About America First Multifamily Investors,
L.P.
America First Multifamily Investors, L.P. was
formed on April 2, 1998 under the Delaware Revised Uniform Limited
Partnership Act for the primary purpose of acquiring, holding,
selling and otherwise dealing with a portfolio of mortgage revenue
bonds which have been issued to provide construction and/or
permanent financing for affordable multifamily, student housing and
commercial properties. The Partnership is pursuing a business
strategy of acquiring additional mortgage revenue bonds and other
investments on a leveraged basis. The Partnership expects and
believes the interest earned on these mortgage revenue bonds is
excludable from gross income for federal income tax
purposes. The Partnership seeks to achieve its
investment growth strategy by investing in additional mortgage
revenue bonds and other investments as permitted by the
Partnership’s Amended and Restated Limited Partnership Agreement,
dated September 15, 2015, taking advantage of attractive financing
structures available in the securities market, and entering into
interest rate risk management instruments. America First
Multifamily Investors, L.P. press releases are available at
www.ataxfund.com.
Safe Harbor Statement
Information contained in this press release
contains “forward-looking statements,” which are based on current
expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to
differ materially. These risks and uncertainties include, but are
not limited to, risks involving current maturities of our financing
arrangements and our ability to renew or refinance such maturities,
fluctuations in short-term interest rates, collateral valuations,
mortgage revenue bond investment valuations and overall economic
and credit market conditions. For a further list and description of
such risks, see the reports and other filings made by the
Partnership with the Securities and Exchange Commission, including
its Annual Report on Form 10-K for the year ended December 31,
2018. The Partnership disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Cash Available for Distribution
(“CAD”)
The following table shows the calculation of CAD
(and a reconciliation of the Partnership’s net income, as
determined in accordance with GAAP, to CAD) for the three and six
months ended June 30, 2019 and 2018.
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net income |
|
$ |
3,886,190 |
|
|
$ |
3,338,121 |
|
|
$ |
10,338,003 |
|
|
$ |
9,342,425 |
|
Change in fair value of
derivatives and interest rate derivative amortization |
|
|
83,217 |
|
|
|
(6,386 |
) |
|
|
389,808 |
|
|
|
(996,381 |
) |
Depreciation and amortization
expense |
|
|
819,804 |
|
|
|
921,816 |
|
|
|
1,640,612 |
|
|
|
1,828,131 |
|
Impairment of securities |
|
|
- |
|
|
|
831,062 |
|
|
|
- |
|
|
|
831,062 |
|
Amortization of deferred
financing costs |
|
|
369,701 |
|
|
|
430,687 |
|
|
|
731,006 |
|
|
|
895,459 |
|
RUA compensation expense |
|
|
186,230 |
|
|
|
543,521 |
|
|
|
370,414 |
|
|
|
750,157 |
|
Deferred income taxes |
|
|
(15,472 |
) |
|
|
- |
|
|
|
(56,164 |
) |
|
|
34,000 |
|
Redeemable Series A Preferred
Unit distribution and accretion |
|
|
(717,763 |
) |
|
|
(717,762 |
) |
|
|
(1,435,526 |
) |
|
|
(1,435,525 |
) |
Tier 2 Income distributable to the General Partner (1) |
|
|
- |
|
|
|
- |
|
|
|
(753,025 |
) |
|
|
- |
|
Bond purchase premium (discount)
amortization (accretion), net of cash received |
|
|
(1,486 |
) |
|
|
(3,808 |
) |
|
|
(40,438 |
) |
|
|
(7,906 |
) |
Total CAD |
|
$ |
4,610,421 |
|
|
$ |
5,337,251 |
|
|
$ |
11,184,690 |
|
|
$ |
11,241,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of BUCs
outstanding, basic |
|
|
60,426,177 |
|
|
|
59,937,300 |
|
|
|
60,426,177 |
|
|
|
60,030,817 |
|
Net income per BUC, basic |
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
Total CAD per BUC, basic |
|
$ |
0.08 |
|
|
$ |
0.09 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
Distributions declared, per
BUC |
|
$ |
0.125 |
|
|
$ |
0.125 |
|
|
$ |
0.250 |
|
|
$ |
0.250 |
|
- As described in Note 3 to the Partnership’s condensed
consolidated financial statements, Net Interest Income representing
contingent interest and Net Residual Proceeds representing
contingent interest (Tier 2 income) will be distributed 75% to the
limited partners and BUC holders, as a class, and 25% to the
General Partner. This adjustment represents the 25% of Tier 2
income due to the General Partner. The Partnership did not report
any Tier 2 income for the three months ended June 30, 2019 and
2018. For the six months ended June 30, 2019, the Partnership’s
Tier 2 income consisted of $3.0 million of contingent interest
realized on redemption of the Vantage at Brooks, LLC property loan
in January 2019. The Partnership did not report any Tier 2 income
for the six months ended June 30, 2018.
CONTACT:Craig
AllenChief Financial Officer(800)
283-2357
America First Multifamil... (NASDAQ:ATAX)
Historical Stock Chart
From Aug 2024 to Sep 2024
America First Multifamil... (NASDAQ:ATAX)
Historical Stock Chart
From Sep 2023 to Sep 2024