America First Multifamily Investors, L.P. Reports Total Revenues of $15.8 million in Second Quarter 2018
August 06 2018 - 4:32PM
On August 6, 2018, America First Multifamily Investors, L.P.
(NASDAQ: ATAX) (the “Partnership”) reported the following results
for the second quarter ended June 30, 2018:
- Total assets of $1.02 billion;
- Total Mortgage Revenue Bond (“MRB”) investments of $767.6
million;
- Total revenue of $15.8 million;
- Net income, basic and diluted, of $0.04 per Unit; and
- Cash Available for Distribution of $0.09 per Unit.
The Partnership reported the following
notable transactions during the second quarter of
2018:
- Acquired an MRB investment for approximately $19.5
million;
- Increased its Investment in unconsolidated entities by $6.8
million; and
- Redemption of four MRBs for approximately $11.0 million.
During the second quarter 2018, the Partnership
acquired one MRB investment with a principal value of approximately
$19.5 million. The 322-unit multifamily property is located
in San Antonio. In addition, four MRBs totaling approximately
$11.0 million were redeemed during the second quarter of
2018. Upon redemption, the Partnership collapsed and paid
off, in full, Term A/B Trusts with carrying values, plus accrued
interest, of approximately $7.7 million.
Disclosure Regarding Non-GAAP
Measures
This report refers to Cash Available for
Distribution (“CAD”), which is identified as a non-GAAP financial
measure. The Partnership utilizes CAD as a means to
determine our ability to make distributions to
unitholders. 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 or net
cash flows from operating activities which are calculated in
accordance with GAAP, or any other measures of financial
performance or liquidity 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 13, 2018, at 4:30 p.m.
Eastern Daylight Time, to discuss its Second Quarter 2018
results. Participants can access the Second Quarter 2018
Earnings Conference Call in one of two ways:
- The Webcast link:
https://edge.media-server.com/m6/p/iizn4ykt will be available for
registration on Monday, August 13, 2018, approximately 30 minutes
prior to the start of the call, or
- Participants may dial 1-855-854-0934, (direct 720-634-2907),
Conference ID #7092598, ten minutes before the
call is scheduled to begin, to listen to the audio portion
only.
Following completion of the 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.
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,
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, 2017. 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 table below shows the calculation of CAD
(and a reconciliation of the Partnership’s GAAP net income to CAD)
for the three and six months ended June 30, 2018 and 2017:
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Partnership net
income |
|
$ |
3,338,121 |
|
|
$ |
4,109,400 |
|
|
$ |
9,342,425 |
|
|
$ |
11,398,262 |
|
Change in fair value of
derivatives and interest rate derivative amortization |
|
|
(6,386 |
) |
|
|
181,420 |
|
|
|
(996,381 |
) |
|
|
302,769 |
|
Depreciation and
amortization expense |
|
|
921,816 |
|
|
|
1,270,379 |
|
|
|
1,828,131 |
|
|
|
2,863,205 |
|
Impairment of
securities |
|
|
831,062 |
|
|
|
- |
|
|
|
831,062 |
|
|
|
- |
|
Amortization of
deferred financing costs |
|
|
430,687 |
|
|
|
562,585 |
|
|
|
895,459 |
|
|
|
1,302,823 |
|
Restricted units
compensation expense |
|
|
543,521 |
|
|
|
438,893 |
|
|
|
750,157 |
|
|
|
609,733 |
|
Deferred income
taxes |
|
|
- |
|
|
|
(201,000 |
) |
|
|
34,000 |
|
|
|
(365,000 |
) |
Redeemable Series A
Preferred Unit distribution and accretion |
|
|
(717,762 |
) |
|
|
(432,550 |
) |
|
|
(1,435,525 |
) |
|
|
(757,192 |
) |
Tier 2 Income
distributable to the General Partner (1) |
|
|
- |
|
|
|
(16,224 |
) |
|
|
- |
|
|
|
(1,120,625 |
) |
Bond purchase premium
(discount) amortization(accretion), net of cash received |
|
|
(3,808 |
) |
|
|
(26,741 |
) |
|
|
(7,906 |
) |
|
|
(50,248 |
) |
Total CAD |
|
$ |
5,337,251 |
|
|
$ |
5,886,162 |
|
|
$ |
11,241,422 |
|
|
$ |
14,183,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of Units outstanding, basic |
|
|
59,937,300 |
|
|
|
59,862,969 |
|
|
|
60,030,817 |
|
|
|
59,950,328 |
|
Net income per Unit,
basic |
|
$ |
0.04 |
|
|
$ |
0.06 |
|
|
$ |
0.13 |
|
|
$ |
0.16 |
|
Total CAD per Unit,
basic |
|
$ |
0.09 |
|
|
$ |
0.10 |
|
|
$ |
0.19 |
|
|
$ |
0.24 |
|
Distributions per
Unit |
|
$ |
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 Unitholders as a class and 25% to the General
Partner. This adjustment represents the 25% of Tier 2 income due to
the General Partner. For the three months ended June 30,
2018, the Partnership did not report any Tier 2 income
distributable to the General Partner. For the three months ended
June 30, 2017, the Partnership reported $87,000 from contingent
interest received from Lake Forest, offset by a loss of
approximately $22,000 on the sale of land in St. Petersburg, FL.
For the six months ended June 30, 2018, the Partnership did not
report any Tier 2 income distributable to the General Partner. For
the six months ended June 30, 2017, the Partnership reported
approximately $4.3 million of Tier 2 income from the gain on the
sale of Northern View and approximately $219,000 from contingent
interest received from Lake Forest, offset by a loss of
approximately $22,000 on the sale of land in St. Petersburg,
FL.
CONTACT:Craig
AllenChief Financial Officer(800)
283-2357
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