As of and for the three months ended
- Total revenues of
- Net income, basic and diluted, of
$0.11per Beneficial Unit Certificate (“BUC”)
- Cash Available for Distribution (“CAD”) of
- Total assets of
- Total Mortgage Revenue Bond (“MRB”) and Governmental Issuer Loan (“GIL”) investments of
For the twelve months ended
- Total revenues of approximately
- Net income of
$0.52per BUC, basic and diluted
- Cash Available for Distribution of
The Partnership reported the following notable transactions during the fourth quarter of 2021:
$39.3 millionto acquire two affordable multifamily MRB investments and fund an existing MRB investment commitment. Advances were partially funded with $23.7 millionof draws on the Partnership’s acquisition line of credit and $25.1 millionof Tender Option Bond (“TOB”) financing proceeds.
- Purchased the Live 929 Apartments Series B MRB, which in combination with ATAX’s existing Live 929 Apartments Series A MRB investment represent all senior debt of the property. The MRB was purchased for
$17.3 millionwhich was a 20% discount to outstanding principal.
- Committed to fund an MRB investment up to
$44.0 millionsecured by a to-be-constructed independent living, assisted living and memory care property in Traverse City, MI.This is the Partnership’s first seniors housing MRB investment. The Partnership initially advanced $100,000at closing and will advance the remaining funds during construction and stabilization.
- Advanced funds for six GIL investment commitments totaling
$18.8 millionand four related property loan investment commitments totaling $23.0 million.
- Funded a bridge loan secured by a skilled nursing property in
Houston, TXto position ourselves for a future MRB investment.
- Advanced equity totaling
$17.5 millionto five unconsolidated entities.
- Executed its first TOB financing with Barclays Bank to finance current and future advances on certain GIL and property loan investment commitments.
Investment Updates and Management Remarks
The Partnership announced the following updates regarding its investment portfolio:
- All affordable multifamily MRB investments are current on contractual principal and interest payments as of
December 31, 2021and the Partnership has received no requests for forbearance of contractual principal and interest payments from borrowers of the MRB investments.
- The Live 929 Apartments MRB property is 95% occupied as of
December 31, 2021, which exceeds pre-COVID occupancy levels. The nearby university, Johns Hopkins University, continues to hold on-campus, in-person classes.
- The borrower for the Partnership’s only commercial MRB property, the Provision Center, received approval from
the United Statesbankruptcy court of an agreement to sell the property. The Partnership owns approximately 9% of the MRBs issued to finance the property and the Partnership will receive its proportional share of final sale proceeds and other funds held under the lien of the bond indenture upon completion of the sale and final termination of the MRBs.
- Five Vantage property investments are over 90% occupied as of
December 31, 2021, with another property at 89% occupancy. Seven additional Vantage property investments are currently under construction or in development and none have experienced material supply chain disruptions for either construction materials or labor to date.
- The Partnership’s two owned student housing properties, The 50/50 MF Property (near the
University of Nebraska-Lincoln) and the Suites on Paseo MF Property (near San Diego State University), continue to meet all direct mortgage and operating obligations with cash flows from operations. The 50/50 MF Property is 88% occupied and the Suites on Paseo MF Property is 97% occupied as of December 31, 2021.
“We continue to strategically invest in our affordable multifamily MRB and GIL asset classes while also expanding into seniors housing and skilled nursing property MRB investments where we believe we can earn attractive leveraged returns,” said
“We will also continue to monitor short term and long term interest rates and the potential effect on our funding costs and pricing for new investments,” added Rogozinski.
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
- Participants can register for access to the live broadcast in listen-only mode using the following link: https://edge.media-server.com/mmc/p/phgv5kxt for registration on
Thursday, February 24, 2022, 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# 1457425. Please place your call at least 15 minutes prior to the start of the earnings call to ensure a timely connection. The operator will open the lines for questions at the conclusion of management’s presentation.
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: 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, student, senior citizen 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 Partnership’s ability to access debt and equity capital to finance its assets; current maturities of the Partnership’s financing arrangements and the Partnership’s 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 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 and twelve months ended
|For the Three Months Ended
||For the Years Ended
|Change in fair value of derivatives||(34,518||)||(12,620||)||(23,214||)||(116,899||)|
|Depreciation and amortization expense||683,653||668,771||2,732,922||2,810,073|
|Provision for credit loss (1)||956,813||2,032,981||1,856,893||7,318,590|
|Provision for loan loss (2)||114,186||99,526||444,302||911,232|
|Reversal of impairment on securities (3)||-||-||-||(1,902,979||)|
|Impairment charge on real estate assets||-||-||-||25,200|
|Reversal of impairment charge on real estate assets (4)||(250,200||)||-||(250,200||)||-|
|Amortization of deferred financing costs||386,625||162,354||1,209,837||1,450,398|
|Restricted unit compensation expense||438,143||383,078||1,277,694||1,017,938|
|Deferred income taxes||(11,374||)||(39,438||)||(89,055||)||(105,920||)|
|Redeemable Preferred Unit distributions and accretion||(717,763||)||(717,763||)||(2,871,051||)||(2,871,051||)|
|Tier 2 (Income distributable) Loss allocable to the General Partner (5)||(46,222||)||-||(2,649,242||)||80,501|
|Bond purchase premium (discount) amortization (accretion), net of cash received||(17,500||)||(19,735||)||(72,052||)||(59,691||)|
|Weighted average number of BUCs outstanding, basic||65,972,296||60,583,368||61,971,556||60,606,989|
|Net income per BUC, basic||$||0.11||$||0.00||$||0.52||$||0.07|
|Total CAD per BUC, basic||$||0.14||$||0.06||$||0.64||$||0.26|
|Distributions declared, per BUC||$||0.19||$||0.06||$||0.50||$||0.305|
|(1)||The provision for credit loss for 2021 related to other-than-temporary impairments of approximately
|(2)||The provision for loan loss 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
|(4)||This amount represents previous impairments recognized as adjustments to CAD in prior periods related to land held for development in
|(5)||As described in Note 3 to the Partnership’s 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, up to a maximum amount as defined in the Partnership Agreement. Net Interest Income representing contingent interest and Net Residual Proceeds representing contingent interest in excess of the maximum threshold (Tier 3 income) is allocated 100% to the limited partners and BUC holders, as a class. The adjustment represents the 25% of Tier 2 income due to the General Partner.
For the year ended
Source: America First Multifamily Investors, L.P.