America First Multifamily Investors, L.P. Reports 7.3% Increase in Total Revenue to $17.7 million in First Quarter 2019
May 03 2019 - 4:15PM
On May 3, 2019, America First Multifamily Investors, L.P.
(NASDAQ: ATAX) (the “Partnership”) reported the following results
for the first quarter ended March 31, 2019, as compared to the
first quarter 2018:
- Total revenue increased
approximately $1.2 million, or 7.3%, to $17.7 million in the first
quarter 2019;
- Net income, basic and diluted,
decreased by $0.01 per Beneficial Unit Certificate (“BUC”), or
11.1%, to $0.08 per BUC in the first quarter 2019; and
- Cash Available for Distribution
increased approximately $0.01 per BUC, or 10.0%, to $0.11 per BUC
in the first quarter 2019.
The Partnership reported the following
notable transactions during the first quarter of 2019:
- Acquired two Mortgage Revenue Bonds for approximately $6.1
million;
- Additional Investment in unconsolidated entities of
approximately $6.6 million;
- Redemption of one Mortgage Revenue Bond for approximately $5.6
million;
- Redemption of one Property Loan for approximately $8.4 million;
and
- Executed two new Term A/B Trusts for approximately $5.3
million.
In January 2019, one multifamily project was
sold by its managing member and ATAX’s loan investment was repaid.
The details of the sale transaction are as follows:
- Vantage at Brooks – ATAX invested in the Vantage at Brooks
multifamily, market-rate project as a loan investment in the fourth
quarter 2015. The sale of the 288-unit project resulted in:--
Repayment, in full, of ATAX’s loan investment principal and accrued
interest, an-- Recognition of approximately $3.0 million of
contingent interest income in the first quarter
2019.
“The sale of Vantage at Brooks has continued to
provide us with a “proof of concept” that initially attracted us to
the Vantage investments,” said Chad Daffer, Chief Executive Officer
of ATAX. “We have partnered with a developer that continues
to construct high quality, multifamily projects in geographic areas
of the country that have been attractive to tenants and prospective
buyers.”
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 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, May 6, 2019, at 4:30 p.m. Eastern
Time, to discuss its First Quarter 2019 results. Participants
can access the First Quarter 2019 Earnings Conference Call in one
of two ways:
- Webcast link:
https://edge.media-server.com/m6/p/fd2s7akg for
registration on Monday, May 6, 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# 4192398 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.
GAAP to Non-GAAP Reconciliation of
Partnership Net Income
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, 2019 and 2018.
|
|
|
|
For the Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
Net income |
|
$ |
6,451,813 |
|
|
$ |
6,004,304 |
|
Change in fair value of
derivatives and interest rate derivative amortization |
|
|
306,591 |
|
|
|
(989,995 |
) |
Depreciation and
amortization expense |
|
|
820,808 |
|
|
|
906,315 |
|
Amortization of deferred
financing costs |
|
|
361,305 |
|
|
|
464,772 |
|
RUA compensation
expense |
|
|
184,184 |
|
|
|
206,636 |
|
Deferred income taxes |
|
|
(40,692 |
) |
|
|
34,000 |
|
Redeemable Series A
Preferred Unit distribution and accretion |
|
|
(717,763 |
) |
|
|
(717,763 |
) |
Tier 2 Income distributable to the General
Partner (1) |
|
|
(753,025 |
) |
|
|
- |
|
Bond purchase premium
(discount) amortization (accretion), net of cash received |
|
|
(38,952 |
) |
|
|
(4,098 |
) |
Total CAD |
|
$ |
6,574,269 |
|
|
$ |
5,904,171 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of
BUCs outstanding, basic |
|
|
60,426,177 |
|
|
|
60,124,333 |
|
Net income per BUC,
basic |
|
$ |
0.08 |
|
|
$ |
0.09 |
|
Total CAD per BUC,
basic |
|
$ |
0.11 |
|
|
$ |
0.10 |
|
Distributions declared,
per BUC |
|
$ |
0.125 |
|
|
$ |
0.125 |
|
(1) |
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, 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. For the three months ended
March 31, 2018, the Partnership did not report any Tier 2
income. |
CONTACT:
Craig AllenChief Financial
Officer(800) 283-2357
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