America First Tax Exempt Investors, L.P. Reports 2007 Financial Results
13 Marzo 2008 - 2:15PM
Business Wire
On March 12, 2008, America First Tax Exempt Investors, L.P. and
subsidiary (NASDAQ: ATAXZ) (the �Company�), reported its financial
results for the year ended December 31, 2007 on its Annual Report
on Form 10-K. The Company reported net income of $941,000 and net
income allocated to Beneficial Unit Certificate (�BUC� or �share�)
holders of $4.3 million or $0.34 per share for the year ended
December 31, 2007. As discussed further below, management utilizes
a calculation of Cash Available for Distribution (�CAD�) as a means
to determine the Company�s ability to make distributions to BUC
holders. We believe that CAD provides relevant information about
the Company�s operations and is necessary along with net income for
an understanding of the Company�s operating results. CAD generated
during the year ended December 31, 2007, was $6.1 million, or $0.49
per share. CAD generated in the fourth quarter was approximately
$1.45 million, or $0.11 per share. CAD generated in the fourth
quarter fell short of the quarterly distribution of $0.135 per
share due in part to increased borrowing costs. Our borrowing costs
increased, and remain at an increased level, as a direct result of
recent credit losses and rating downgrades experienced by our main
credit provider resulting in higher credit facility costs which are
passed on to the Company. As of December 31, 2007, the total
outstanding debt subject to these increased borrowing costs was
approximately $71.4 million. Alternative financing vehicles are
currently being explored in order to reduce interest expense and
provide access to new leverage financing on reasonable terms. We
have not entered into any agreements with respect to any such
alternative debt financing and there can be no assurances that we
will be able to do so. Notwithstanding the current issues being
experienced by the Company in its variable rate borrowing program,
we believe it is prudent to continue to pursue our repositioning
and growth strategy, the principal objective of which is to
increase CAD through the improvement of the quality and performance
of its revenue bond portfolio thereby creating value for investors.
To this end, we acquired the $10.8 million Runnymede Apartments
Multifamily Housing Revenue Bonds during the fourth quarter.
Additionally, we have acquired two new Multifamily Housing Revenue
Bond investments in 2008 totaling approximately $12.4 million in
par value. We are also currently exploring the opportunistic sale
of selected revenue bond investments. Should a sale be completed
sale proceeds are expected to be in excess of the current carrying
value of the bond investment. Any sale proceeds received are
expected to be used for the reduction of outstanding debt and for
general business purposes. The recent, well publicized, turmoil
within the credit markets has had a significant impact on many
entities. In light of these developments, the Company offers the
following observation and commentary on our business: The Company
is in the business of investing in tax-exempt mortgage revenue
bonds secured by first mortgages on multifamily housing projects
throughout the United States which it holds as long-term
investments. The Company is not in the business of making mortgage
loans secured by mortgages on single-family residential properties,
including those categorized as subprime, and does not invest in
securities backed by such mortgages. The Company continues to be
pleased with the performance of its bond portfolio and the debt
service coverage and loan to value aspects of the portfolio. The
Company believes continued subprime and single family mortgage
defaults may help its business by creating additional demand for
affordable rental housing. It also feels the current tightening of
credit may create opportunities for additional investments
consistent with the Company�s investment strategy. While the
current environment may create new investing opportunities it has
also created new challenges for the Company in the form of
increased borrowing costs as discussed above. While the Company
believes that issues currently being experienced in its credit
facilities are short-term in nature and likely to be resolved there
can be no assurance that the increased cost of borrowing will not
continue for an extended period of time. If we are unable to obtain
alternative financing and the current increased borrowing costs
continue the annual distribution may need to be reduced. The
Company and its predecessor partnership have been continuously
operating this business since 1985 and have consistently
distributed tax-exempt income to our investors for 90 consecutive
quarters. In summary, the Company remains committed to executing
its business plan and generating steady, predictable distributions
of predominantly tax exempt income to its investors. Cash Available
for Distribution (�CAD�) Management utilizes a calculation of Cash
Available for Distribution (�CAD�) as a means to determine the
Partnership�s ability to make distributions to BUC holders. The
General Partner believes that CAD provides relevant information
about the Partnership�s operations and is necessary along with net
income for an understanding of the Partnership�s operating results.
To calculate CAD, amortization expense related to debt financing
costs and bond reissuance costs, Tier 2 income due to the General
Partner as defined in the Partnership�s Agreement of Limited
Partnership, interest rate cap expense or income, provision for
loan losses, impairments on bonds, losses related to variable
interest entities (�VIE�s�) including the cumulative effect of
accounting change and depreciation expense are added back to the
Company�s net income (loss) as computed in accordance with
accounting principles generally accepted in the United States of
America (�GAAP�). Management evaluates two measures of CAD by
further breaking down the calculation into Total CAD and CAD
excluding contingent interest and realized gains. There is no
generally accepted methodology for computing CAD, and the Company�s
computation of CAD may not be comparable to CAD reported by other
companies. Although the Company considers CAD to be a useful
measure of its operating performance, CAD should not be considered
as an alternative to net income or net cash flows from operating
activities which are calculated in accordance with GAAP. The
following tables show the calculation of CAD and the break-down of
Total CAD and CAD excluding contingent interest for the years ended
December 31, 2007, 2006 and 2005. � For the yearended December31,
2007 � For the yearended December31, 2006 � For the yearended
December31, 2005 Net income $ 940,866 $ 12,776,735 $ 19,565,142 Net
(income) loss related to VIEs and eliminations due to consolidation
� 3,452,591 � � � (3,863,226 ) � � (1,443,519 ) Net income before
impact of VIE consolidation $ 4,393,457 8,913,509 18,121,623 Change
in fair value of derivatives and interest rate cap amortization
249,026 210 (364,969 ) Depreciation and amortization expense
(Partnership only) 1,478,278 25,605 24,467 Tier 2 Income
distributable to the General Partner (57,830 ) (1,062,500 )
(3,595,754 ) Provision for loan losses � - � � � - � � � 734,000 �
Total CAD $ 6,062,931 � � $ 7,876,824 � � $ 14,919,367 � � CAD from
contingent interest � 173,489 � � � 3,187,500 � � � 10,787,261 �
CAD excluding contingent interest $ 5,889,442 � � $ 4,689,324 � � $
4,132,106 � � Weighted average number of units outstanding, basic
and diluted 12,491,490 9,837,928 9,837,928 � Total CAD per unit $
0.49 $ 0.80 $ 1.52 CAD from contingent interest, per unit $ 0.01 $
0.32 $ 1.10 CAD excluding contingent interest, per unit $ 0.48 $
0.48 $ 0.42 About America First Tax Exempt Investors, L.P. America
First Tax Exempt Investors, L.P. was formed for the primary purpose
of acquiring, holding, selling and otherwise dealing with a
portfolio of federally tax-exempt mortgage revenue bonds which have
been issued to provide construction and/or permanent financing of
multifamily residential apartments. The Company is pursuing a
business strategy of acquiring additional tax-exempt mortgage
revenue bonds on a leveraged basis in order to: (i) increase the
amount of tax-exempt interest available for distribution to its
investors; (ii) reduce risk through asset diversification and
interest rate hedging; and (iii) achieve economies of scale. The
Company seeks to achieve its investment growth strategy by
investing in additional tax-exempt mortgage revenue bonds and
related investments, taking advantage of attractive financing
structures available in the tax-exempt securities market and
entering into interest rate risk management instruments. America
First Tax Exempt Investors, L.P. press releases are available on
the World Wide Web at www.ataxz.com. Information contained in this
Press Release contains �forward-looking statements� relating to,
without limitation, future performance, plans and objectives of
management for future operations and projections of revenue and
other financial items, which can be identified by the use of
forward-looking terminology such as �may,� �will,� �should,�
�expect,� �anticipate,� �estimate� or �continue� or the negative
thereof or other variations thereon or comparable terminology.
Several factors with respect to such forward-looking statements,
including certain risks and uncertainties, could cause actual
results to differ materially from those in such forward-looking
statements. Many of these risks and uncertainties are described in
filings made by the Company with the Securities and Exchange
Commission, including its annual reports on Form 10-K, its
quarterly reports on Form 10-Q and its current reports on Form 8-K.
America First Tax Exempt (NASDAQ:ATAXZ)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
America First Tax Exempt (NASDAQ:ATAXZ)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024