OMAHA, Neb., Aug. 05, 2021 (GLOBE NEWSWIRE) — On August 5, 2021, America First Multifamily Investors, L.P. (NASDAQ: ATAX) (the �Partnership or ATAX) announced financial results for the three and six months ended June 30, 2021.
Financial Highlights
As of and for the three months ended June 30, 2021:
For the six months ended June 30, 2021:
The Partnership reported the following notable transactions during the second quarter of 2021:
In addition, the Partnership reported the following notable transactions in July 2021:
Investment Updates and Management Remarks
The Partnership announced the following updates regarding its investment portfolio:
The sustained results of our multifamily MRB and GIL portfolios throughout the COVID-19 pandemic put us in a strong position as the U.S. economy continues to reopen, said Ken Rogozinski, the Partnerships Chief Executive Officer. Recent sales of Vantage multifamily investments have generated significant returns and the strong lease-up velocity at those Vantage properties that have completed construction are very encouraging for this segment of our business.
We are very pleased with the lease-up activities at our two student housing MF Properties and Live 929 Apartments for the new academic year as the nearby universities work towards full resumption of on-campus, in-person university classes, said Rogozinski. We are actively working with the individual property managers to ensure the health and safety of 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 Thursday, August 5, 2021 at 4:30 p.m. Eastern Time to discuss the Partnerships Second Quarter 2021 results. Participants can access the Earnings Call in one of two ways:
Following completion of the earnings call, a recorded replay will be available on the Partnerships 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 Partnerships 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: defaults on the mortgage loans securing our mortgage revenue bonds and governmental issuer loans; the competitive environment in which the Partnership operates; risks associated with investing in multifamily and student residential properties and commercial properties; general economic conditions, including the current and future impact of the novel coronavirus (COVID-19) on business operations, employment, and government-mandated mitigation measures; changes in interest rates; the Partnerships ability to access debt and equity capital to finance its assets; current maturities of the Partnerships financing arrangements and the Partnerships ability to renew or refinance such financing arrangements; potential exercising of redemption rights by the holders of the Series A Preferred Units; local, regional, national and international economic and credit market conditions; 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 and governmental issuer loan portfolio held by the Partnership; changes in the Internal Revenue Code and other government regulations affecting the Partnerships business; and the other risks detailed in the Partnerships SEC filings (including but not limited to, the Partnerships 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 Partnerships net income, as determined in accordance with GAAP, to CAD) for the three and six months ended June 30, 2021 and 2020:
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income | $ | 10,264,680 | $ | 4,588,348 | $ | 17,257,534 | $ | 7,570,105 | ||||||||
Change in fair value of derivatives and interest rate derivative amortization | 9,494 | (93,647 | ) | 2,043 | (118,848 | ) | ||||||||||
Depreciation and amortization expense | 684,884 | 712,081 | 1,368,344 | 1,421,519 | ||||||||||||
Provision for credit loss (1) | 900,080 | 464,675 | 900,080 | 1,822,356 | ||||||||||||
Provision for loan loss (2) | 330,116 | – | 330,116 | – | ||||||||||||
Reversal of impairment on securities (3) | – | – | – | (1,902,979 | ) | |||||||||||
Impairment charge on real estate assets | – | 25,200 | – | 25,200 | ||||||||||||
Amortization of deferred financing costs | 247,997 | 432,118 | 454,383 | 791,026 | ||||||||||||
Restricted unit compensation expense | 190,970 | 296,268 | 269,084 | 335,336 | ||||||||||||
Deferred income taxes | (19,442 | ) | (960 | ) | (35,670 | ) | (31,881 | ) | ||||||||
Redeemable Series A Preferred Unit distribution and accretion | (717,763 | ) | (717,762 | ) | (1,435,526 | ) | (1,435,525 | ) | ||||||||
Tier 2 (Income distributable) Loss allocable to the General Partner (4) | (1,365,870 | ) | – | (2,068,147 | ) | 80,501 | ||||||||||
Bond purchase premium (discount) amortization (accretion), net of cash received | (18,185 | ) | (5,761 | ) | (36,706 | ) | (19,567 | ) | ||||||||
Total CAD | $ | 10,506,961 | $ | 5,700,560 | $ | 17,005,535 | $ | 8,537,243 | ||||||||
Weighted average number of BUCs outstanding, basic | 60,576,537 | 60,545,204 | 60,633,700 | 60,649,692 | ||||||||||||
Net income per BUC, basic | $ | 0.13 | $ | 0.06 | $ | 0.22 | $ | 0.10 | ||||||||
Total CAD per BUC, basic | $ | 0.17 | $ | 0.09 | $ | 0.28 | $ | 0.14 | ||||||||
Distributions declared, per BUC | $ | 0.11 | $ | 0.06 | $ | 0.20 | $ | 0.185 |
(1) | The provision for credit loss for the three and six months ended June 30, 2021 and 2020 relates to impairment of the Provision Center 2014-1 MRB. |
(2) | The provision for loan loss for the three and six months ended June 30, 2021 relates to impairment of the Live 929 Apartments property loan. |
(3) | 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. |
(4) | As described in Note 3 to the Partnerships 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 six months ended June 30, 2021, Tier 2 income allocable to the general partner consisted of approximately $703,000 related to the gain on sale of the Partnerships investment in Vantage at Germantown in March 2021 and approximately $1.4 million related to the gain on sale of the Partnerships investment in Vantage at Powdersville in May 2021. For the six months ended June 30, 2020, Tier 2 income was due to the gain on sale of the PHC Certificates, net of prior impairments recorded. |
MEDIA CONTACT:
Karen Marotta
Greystone
212-896-9149
Karen.Marotta@greyco.com
INVESTOR CONTACT:
Ken Rogozinski
Chief Executive Officer
402-952-1235
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