As of and for the three months ended
- Total revenues of approximately
- Net income, basic and diluted, of
$0.04per Beneficial Unit Certificate (“BUC”),
- Cash Available for Distribution (“CAD”) of
- Total assets of
$977.5 million, and
- Total Mortgage Revenue Bond (“MRB”) investments of approximately
The Partnership reported the following notable transactions during the first quarter of 2020:
- Sale of the
Public Housing Capital Fund Trust(“PHC”) Certificates for approximately $43.3 million,
- Additional Investments in unconsolidated entities of approximately
- Redemption of one MRB for approximately
$3.1 million, and
- Refinancing of two Mortgages Payable with total principal of approximately
“The spread of COVID-19 has caused significant market volatility and operational disruptions across a variety of industries, including affordable and market rate multifamily housing,” said
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
- Webcast link: https://edge.media-server.com/mmc/p/rv9fpr6x for registration on
Thursday, May 7, 2020, approximately 30 minutes prior to the start of the earnings call, or
- Participants may dial 1-855-854-0934, (International Participants may dial 1-720-634-2907), Conference ID# 5775663 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.
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
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
|(Unaudited)||For the Three Months Ended
|Change in fair value of derivatives and interest rate derivative amortization||(25,201||)||306,591|
|Depreciation and amortization expense||709,438||820,808|
|Reversal of impairment on securities (1)||(1,902,979||)||-|
|Provision for credit loss||1,357,681||-|
|Amortization of deferred financing costs||358,908||361,305|
|RUA compensation expense||39,068||184,184|
|Deferred income taxes||(30,921||)||(40,692||)|
|Redeemable Series A Preferred Unit distribution and accretion||(717,763||)||(717,763||)|
|Tier 2 Income distributable to the General Partner (2)||80,501||(753,025||)|
|Bond purchase premium (discount) amortization (accretion), net of cash received||(13,806||)||(38,952||)|
|Weighted average number of BUCs outstanding, basic||60,754,179||60,426,177|
|Net income per BUC, basic||$||0.04||$||0.08|
|Total CAD per BUC, basic||$||0.05||$||0.11|
|Distributions declared, per BUC||$||0.125||$||0.125|
|(1)||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
|(2)||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
Chief Financial Officer
Source: America First Multifamily Investors, L.P.