America First Multifamily Investors, L.P. Announces First Quarter 2021 Financial Results
May 05 2021 - 8:15AM
On May 5, 2021, America First Multifamily Investors, L.P. (NASDAQ:
ATAX) (the “Partnership” or “ATAX”) announced financial results for
the three months ended March 31, 2021.
Financial Highlights
As of and for the three months ended March 31,
2021:
- Total revenues of $14.4
million
- Net income, basic and diluted, of
$0.09 per Beneficial Unit Certificate (“BUC”)
- Cash Available for Distribution of
$0.11 per BUC
- Total assets of $1.2 billion
- Total Mortgage Revenue Bond (“MRB”)
and Governmental Issuer Loan (“GIL”) investments of $875.5
million
The Partnership reported the following notable
transactions during the first quarter of 2021:
- Received proceeds upon the sale of
Vantage at Germantown totaling $16.1 million on the Partnership’s
initial investment of $10.4 million. The Partnership originally
made its investment in June 2018.
- Committed to fund four GIL
investments totaling up to $94.6 million and three property loans
totaling up to $64.0 million for the construction of four
affordable multifamily properties. The Partnership provided initial
funding on these investments totaling $27.0 million of the
investment commitments during the quarter with the remaining
balance of the commitments to be funded during construction of the
properties.
- Advanced funds for two existing GIL
investment commitments totaling $15.0 million.
- Received proceeds from the
redemption of two MRBs totaling $7.4 million.
Investment Updates and Management
Remarks
The Partnership announced the following updates
regarding its investment portfolio:
- Properties securing the
Partnership’s MRB portfolio have reported average rental
collections within 30 days of billing of 91% and 92% for March and
April 2021 rental payments, respectively.
- The Partnership has received no
requests for forbearance of contractual principal and interest
payments from borrowers associated with multifamily MRBs and all
multifamily MRBs are current on contractual principal and interest
payments as of April 1, 2021.
- The Partnership has provided
forbearance on its only student housing MRB, Live 929 Apartments in
Baltimore, MD. The university primarily served by this project,
Johns Hopkins University, has announced that it anticipates a broad
resumption of on-campus, in-person classes for the Fall 2021
semester.
- The borrower for the Partnership’s
only commercial property MRB, the Provision Center, filed for
Chapter 11 bankruptcy protection in December 2020. The property is
a cancer proton therapy center located in Knoxville, TN. The
Partnership owns approximately 9% of the senior MRBs issued to
finance the property and continues to assess forbearance and
restructuring options with the other senior bondholders.
- Two Vantage investments, Vantage at
Powdersville and Vantage at Bulverde, exceeded 90% physical
occupancy as of March 31, 2021. Six other Vantage projects are 100
% constructed and currently in the lease-up phase.
- No Vantage project under
construction has experienced material supply chain disruptions for
either construction materials or labor during the first
quarter.
- The 50/50 MF Property primarily
serves students attending the University of Nebraska-Lincoln, which
continues to hold on-campus, in-person classes. This property was
90% occupied as of March 31, 2021 and is meeting all mortgage and
operating obligations with cash flows from operations.
- The Suites on Paseo MF Property
primarily serves students of San Diego State University, which
suspended on-campus, in-person classes for the Spring 2021
semester. San Diego State University has announced its intent to
resume on-campus, in-person classes for the Fall 2021 semester. The
property was 77% occupied as of March 31, 2021, which is an
increase from 68% occupancy as of December 31, 2020, and is meeting
all operating obligations with cash flows from operations.
“The performance of our multifamily MRB
portfolio and Vantage investments during the past 12 months
has put us in a strong position as the U.S. economy transitions
towards a full-scale reopening,” said Ken Rogozinski, the
Partnership’s Chief Executive Officer.
“The plans for on-campus, in-person university
classes for the Fall 2021 is a positive development for operations
at the three investments where we have primarily university student
tenants,” said Rogozinski. “We are actively working with the
individual property managers to ensure the health and safety of our
student tenants as they return to campus this fall.”
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 Wednesday, May 5, 2021 at 5:00
p.m. Eastern Time to discuss the Partnership’s First Quarter 2021
results. Participants can access the Earnings Call in one of two
ways:
- Participants can register for access to the live broadcast in
listen-only mode using the following link:
https://edge.media-server.com/mmc/p/fqsuto9s
for registration on Wednesday, May 5, 2021, approximately 30
minutes prior to the start of the earnings call, or
- Participants wanting to ask questions may dial toll free (855)
854-0934, (International Participants may dial (720) 634-2907),
using Conference ID# 7599248. To ensure
a timely connection, please place your call at least 15 minutes
prior to the start of the earnings call. At the
conclusion of management’s presentation, the operator will open the
lines for questions.
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
Certain statements in this press release are
intended to be covered by the safe harbor for “forward-looking
statements” provided by the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally
can be identified by use of statements that include, but are not
limited to, phrases such as “believe,” “expect,” “future,”
“anticipate,” “intend,” “plan,” “foresee,” “may,” “should,” “will,”
“estimates,” “potential,” “continue,” or other similar words or
phrases. Similarly, statements that describe objectives,
plans, or goals also are forward-looking
statements. Such forward-looking statements involve
inherent risks and uncertainties, many of which are difficult to
predict and are generally beyond the control of the Partnership.
The Partnership cautions readers that a number of important factors
could cause actual results to differ materially from those
expressed in, implied, or projected by such forward-looking
statements. Risks and uncertainties include, but are not
limited to: general economic conditions, including the current and
future impact of the novel coronavirus (COVID-19) on business
operations, employment, and government-mandated mitigation
measures; current maturities of the Partnership’s financing
arrangements and the Partnership’s ability to renew or refinance
such financing arrangements; defaults on the mortgage loans
securing the Partnership’s mortgage revenue bonds; the competitive
environment in which the Partnership operates; risks associated
with investing in multifamily and student residential properties
and commercial properties; changes in interest rates; the
Partnership’s ability to use borrowings or obtain capital to
finance its assets; recapture of previously issued Low Income
Housing Tax Credits in accordance with Section 42 of the Internal
Revenue Code; geographic concentration within the mortgage revenue
bond portfolio held by the Partnership; appropriations risk related
to the funding of federal housing programs; changes in the Internal
Revenue Code and other government regulations affecting the
Partnership’s business; and the other risks detailed in the
Partnership’s SEC filings (including but not limited to, the
Partnership’s Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, and Current Reports on Form 8-K). Readers are urged to
consider these factors carefully in evaluating the forward-looking
statements.
If any of these risks or uncertainties
materializes or if any of the assumptions underlying such
forward-looking statements proves to be incorrect, the developments
and future events concerning the Partnership set forth in this
press release may differ materially from those expressed or implied
by these forward-looking statements. You are cautioned not to place
undue reliance on these statements, which speak only as of the date
of this document. We anticipate that subsequent events and
developments will cause our expectations and beliefs to change. The
Partnership assumes no obligation to update such forward-looking
statements to reflect events or circumstances after the date of
this document or to reflect the occurrence of unanticipated events,
unless obligated to do so under the federal securities laws.
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 months
ended March 31, 2021 and 2020.
|
For the Three Months Ended March 31, |
|
|
2021 |
|
|
2020 |
|
Net income |
$ |
6,992,854 |
|
|
$ |
2,981,757 |
|
Change in fair value of
derivatives and interest rate derivative amortization |
|
(7,451 |
) |
|
|
(25,201 |
) |
Depreciation and amortization
expense |
|
683,460 |
|
|
|
709,438 |
|
Provision for credit loss
(1) |
|
- |
|
|
|
1,357,681 |
|
Reversal of impairment on
securities (2) |
|
- |
|
|
|
(1,902,979 |
) |
Amortization of deferred
financing costs |
|
206,386 |
|
|
|
358,908 |
|
RUA compensation expense |
|
78,114 |
|
|
|
39,068 |
|
Deferred income taxes |
|
(16,228 |
) |
|
|
(30,921 |
) |
Redeemable Series A Preferred
Unit distribution and accretion |
|
(717,763 |
) |
|
|
(717,763 |
) |
Tier 2 (Income distributable)
Loss allocable to the General Partner (3) |
|
(702,277 |
) |
|
|
80,501 |
|
Bond purchase premium (discount)
amortization (accretion), net of cash received |
|
(18,521 |
) |
|
|
(13,806 |
) |
Total CAD |
$ |
6,498,574 |
|
|
$ |
2,836,683 |
|
|
|
|
|
|
|
|
|
Weighted average number of BUCs
outstanding, basic |
|
60,690,862 |
|
|
|
60,754,179 |
|
Net income per BUC, basic |
$ |
0.09 |
|
|
$ |
0.04 |
|
Total CAD per BUC, basic |
$ |
0.11 |
|
|
$ |
0.05 |
|
Distributions declared, per
BUC |
$ |
0.09 |
|
|
$ |
0.125 |
|
- The provision for credit loss for
the three months ended March 31, 2020 relates to impairment of the
Provision Center 2014-1 MRB.
- This amount represents previous
impairments recognized as adjustments to CAD in prior periods
related to the PHC Certificates. Such adjustments were reversed in
the first quarter of 2020 upon the sale of the PHC Certificates in
January 2020.
- 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.For the three
months ended March 31, 2021, Tier 2 income allocable to the general
partner related to the gain on sale of the Partnership’s investment
in Vantage at Germantown in March 2021. For the three months ended
March 31, 2020, Tier 2 income was due to the gain on sale of the
PHC Certificates, net of prior impairments recorded.
MEDIA CONTACT:Karen
MarottaGreystone212-896-9149Karen.Marotta@greyco.com
INVESTOR CONTACT: Ken
RogozinskiChief Executive
Officer402-952-1235
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