Company Quick10K Filing
Quick10K
America First Multifamily Investors
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-09-13 Other Events
8-K 2019-09-10 Control, Officers, Amend Bylaw, Code of Ethics, Regulation FD, Other Events, Exhibits
8-K 2019-09-04 Officers
8-K 2019-08-29 Enter Agreement, Control, Regulation FD, Exhibits
8-K 2019-08-19 Enter Agreement, Exhibits
8-K 2019-08-09 Other Events, Exhibits
8-K 2019-08-06 Regulation FD, Exhibits
8-K 2019-08-05 Other Events, Exhibits
8-K 2019-08-02 Earnings, Exhibits
8-K 2019-07-26 Enter Agreement, Exhibits
8-K 2019-07-16 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-07-16 Earnings, Exhibits
8-K 2019-06-13 Other Events
8-K 2019-05-15 Regulation FD, Exhibits
8-K 2019-05-03 Earnings, Exhibits
8-K 2019-04-17 Earnings, Exhibits
8-K 2019-03-13 Other Events
8-K 2019-03-05 Regulation FD, Exhibits
8-K 2019-02-28 Earnings, Exhibits
8-K 2019-02-08 Leave Agreement, Exhibits
8-K 2019-02-07 Earnings, Exhibits
8-K 2019-02-07 Regulation FD, Exhibits
8-K 2018-12-13 Other Events
8-K 2018-11-05 Earnings, Exhibits
8-K 2018-11-05 Officers
8-K 2018-10-17 Earnings, Exhibits
8-K 2018-10-01 Other Events, Exhibits
8-K 2018-09-12 Other Events
8-K 2018-08-14 Regulation FD, Exhibits
8-K 2018-08-08 Enter Agreement, M&A, Off-BS Arrangement, Exhibits
8-K 2018-08-06 Earnings, Exhibits
8-K 2018-08-01 Enter Agreement, Exhibits
8-K 2018-07-23 Earnings, Exhibits
8-K 2018-07-19 Enter Agreement, Exhibits
8-K 2018-06-27 Other Events, Exhibits
8-K 2018-06-12 Other Events
8-K 2018-05-16 Regulation FD, Exhibits
8-K 2018-04-18 Earnings, Exhibits
8-K 2018-03-22 Other Events
8-K 2018-03-16 Leave Agreement, Exhibits
8-K 2018-03-05 Regulation FD, Exhibits
8-K 2018-03-02 Other Events, Exhibits
8-K 2018-02-09 Earnings, Exhibits
AXP American Express 100,828
TREE LendingTree 3,903
LX Lexinfintech Holdings 3,751
WD Walker & Dunlop 1,666
PRAA PRA Group 1,488
WRLD World Acceptance 1,284
YRD Yirendai 1,186
LMFA LM Funding America 1
HJV MS Structured Saturns Series 2002-14 0
XRF China Rapid Finance 0
ATAX 2019-06-30
Part I - Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1A. Risk Factors.
Item 6. Exhibits.
EX-31.1 atax-ex311_12.htm
EX-31.2 atax-ex312_11.htm
EX-32.1 atax-ex321_9.htm
EX-32.2 atax-ex322_10.htm

America First Multifamily Investors Earnings 2019-06-30

ATAX 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 atax-10q_20190630.htm 6-30-19 FORM 0-Q atax-10q_20190630.htm

 

quarter esFa

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to            

Commission File Number:  000-24843

 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

47-0810385

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

1004 Farnam Street, Suite 400, Omaha, Nebraska

 

68102

(Address of principal executive offices)

 

(Zip Code)

 

 

 

(402) 444-1630

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Beneficial Unit Certificates representing assignments of limited partnership interests in America First Multifamily Investors, L.P.

ATAX

The NASDAQ Stock Market, LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES  NO 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  YES  NO 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non- accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES  NO 

As of June 30, 2019, the registrant had 60,426,177 Beneficial Unit Certificates representing assignments of limited partnership interests in America First Multifamily Investors, L.P. outstanding.

 

 


 

INDEX

PART I – FINANCIAL INFORMATION

 

 

 

 


 

Forward-Looking Statements

This report (including, but not limited to, the information contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”) contains forward-looking statements.  All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements.  When used, statements which are not historical in nature, including those containing words such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions, are intended to identify forward-looking statements.  We have based forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations.  This report also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other industry data.  This data involves several assumptions and limitations, and you are cautioned not to give undue weight to such estimates.  We have not independently verified the statistical and other industry data generated by independent parties which are contained in this report and, accordingly, we cannot guarantee their accuracy or completeness.

These forward-looking statements are subject, but not limited, to various risks and uncertainties, including those relating to:

 

current maturities of our financing arrangements and our ability to renew or refinance such financing arrangements;

 

defaults on the mortgage loans securing our mortgage revenue bonds (“MRBs”);

 

the competitive environment in which we operate;

 

risks associated with investing in multifamily and student residential properties and commercial properties, including changes in business conditions and the general economy;

 

changes in interest rates;

 

our ability to use borrowings or obtain capital to finance our assets;

 

local, regional, national and international economic and credit market conditions;

 

recapture of previously issued Low Income Housing Tax Credits (“LIHTCs”) in accordance with Section 42 of the Internal Revenue Code;

 

changes in the United States Department of Housing and Urban Development’s (“HUD”) Capital Fund Program;

 

geographic concentration within the MRB portfolio held by the Partnership;

 

appropriations risk related to the funding of federal housing programs, including HUD Section 8; and

 

changes in the U.S. corporate tax code and other government regulations affecting our business.

Other risks, uncertainties and factors could cause our actual results to differ materially from those projected in any forward-looking statements we make. We are not obligated to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described under the heading “Risk Factors” in Item 1A of America First Multifamily Investors, L.P.’s Annual Report on Form 10-K for the year ended December 31, 2018.

All references to “we,” “us,” “our” and the “Partnership” in this document mean America First Multifamily Investors, L.P. (“ATAX”), its wholly-owned subsidiaries and its consolidated variable interest entities.

 

 

 

 


 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

13,821,980

 

 

$

32,001,925

 

Restricted cash

 

 

1,324,599

 

 

 

1,266,686

 

Interest receivable, net

 

 

7,219,825

 

 

 

7,011,839

 

Mortgage revenue bonds held in trust, at fair value (Note 6)

 

 

700,955,326

 

 

 

645,258,873

 

Mortgage revenue bonds, at fair value (Note 6)

 

 

58,571,381

 

 

 

86,894,562

 

Public housing capital fund trusts, at fair value (Note 7)

 

 

46,516,154

 

 

 

48,672,086

 

Real estate assets: (Note 8)

 

 

 

 

 

 

 

 

Land and improvements

 

 

4,971,665

 

 

 

4,971,665

 

Buildings and improvements

 

 

71,952,872

 

 

 

71,897,070

 

Real estate assets before accumulated depreciation

 

 

76,924,537

 

 

 

76,868,735

 

Accumulated depreciation

 

 

(13,906,894

)

 

 

(12,272,387

)

Net real estate assets

 

 

63,017,643

 

 

 

64,596,348

 

Investments in unconsolidated entities (Note 9)

 

 

96,825,273

 

 

 

76,534,306

 

Property loans, net of loan loss allowance (Note 10)

 

 

7,593,377

 

 

 

15,961,012

 

Other assets (Note 12)

 

 

4,834,247

 

 

 

4,515,609

 

Total Assets

 

$

1,000,679,805

 

 

$

982,713,246

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other liabilities (Note 13)

 

$

8,226,042

 

 

$

7,543,822

 

Distribution payable

 

 

7,663,064

 

 

 

7,576,167

 

Unsecured lines of credit (Note 14)

 

 

23,200,000

 

 

 

35,659,200

 

Debt financing, net (Note 15)

 

 

519,348,651

 

 

 

505,663,565

 

Mortgages payable and other secured financing, net (Note 16)

 

 

27,127,554

 

 

 

27,454,375

 

Total Liabilities

 

 

585,565,311

 

 

 

583,897,129

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies (Note 18)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Series A Preferred Units, approximately $94.5 million redemption value, 9.5 million

   issued and outstanding, net (Note 19)

 

 

94,368,401

 

 

 

94,350,376

 

 

 

 

 

 

 

 

 

 

Partnersʼ Capital:

 

 

 

 

 

 

 

 

General Partner (Note 1)

 

 

507,393

 

 

 

344,590

 

Beneficial Unit Certificates ("BUCs," Note 1)

 

 

320,238,700

 

 

 

304,121,151

 

Total Partnersʼ Capital

 

 

320,746,093

 

 

 

304,465,741

 

Total Liabilities and Partnersʼ Capital

 

$

1,000,679,805

 

 

$

982,713,246

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

2


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property revenues

 

$

2,034,796

 

 

$

2,403,142

 

 

$

4,028,425

 

 

$

4,739,654

 

Investment income

 

 

12,074,669

 

 

 

12,249,035

 

 

 

24,482,545

 

 

 

25,627,521

 

Contingent interest income

 

 

30,000

 

 

 

-

 

 

 

3,042,102

 

 

 

-

 

Other interest income

 

 

206,869

 

 

 

1,058,688

 

 

 

429,107

 

 

 

1,801,724

 

Other income

 

 

-

 

 

 

74,300

 

 

 

28,753

 

 

 

74,300

 

Total revenues

 

 

14,346,334

 

 

 

15,785,165

 

 

 

32,010,932

 

 

 

32,243,199

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate operating (exclusive of items shown below)

 

 

919,256

 

 

 

1,290,487

 

 

 

2,096,074

 

 

 

2,685,980

 

Impairment of securities

 

 

-

 

 

 

831,062

 

 

 

-

 

 

 

831,062

 

Depreciation and amortization

 

 

819,804

 

 

 

921,816

 

 

 

1,640,612

 

 

 

1,828,131

 

Interest expense (Note 2)

 

 

6,206,935

 

 

 

6,349,554

 

 

 

12,601,855

 

 

 

11,696,631

 

General and administrative

 

 

2,496,798

 

 

 

3,041,125

 

 

 

5,275,389

 

 

 

5,852,970

 

Total expenses

 

 

10,442,793

 

 

 

12,434,044

 

 

 

21,613,930

 

 

 

22,894,774

 

Income before income taxes

 

 

3,903,541

 

 

 

3,351,121

 

 

 

10,397,002

 

 

 

9,348,425

 

Income tax expense

 

 

17,351

 

 

 

13,000

 

 

 

58,999

 

 

 

6,000

 

Net income

 

 

3,886,190

 

 

 

3,338,121

 

 

 

10,338,003

 

 

 

9,342,425

 

Redeemable Series A Preferred Unit distributions and accretion

 

 

(717,763

)

 

 

(717,762

)

 

 

(1,435,526

)

 

 

(1,435,525

)

Net income available to Partners

 

$

3,168,427

 

 

$

2,620,359

 

 

$

8,902,477

 

 

$

7,906,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Partners allocated to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Partner

 

$

31,684

 

 

$

26,204

 

 

$

811,929

 

 

$

79,069

 

Limited Partners - BUCs

 

 

3,103,581

 

 

 

2,530,332

 

 

 

8,024,225

 

 

 

7,729,733

 

Limited Partners - Restricted units

 

 

33,162

 

 

 

63,823

 

 

 

66,323

 

 

 

98,098

 

 

 

$

3,168,427

 

 

$

2,620,359

 

 

$

8,902,477

 

 

$

7,906,900

 

BUC holders' interest in net income per BUC, basic and diluted

 

$

0.05

 

 

$

0.04

 

 

$

0.13

 

 

$

0.13

 

Weighted average number of BUCs outstanding, basic

 

 

60,426,177

 

 

 

59,937,300

 

 

 

60,426,177

 

 

 

60,030,817

 

Weighted average number of BUCs outstanding, diluted

 

 

60,426,177

 

 

 

59,937,300

 

 

 

60,426,177

 

 

 

60,030,817

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

3


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)  

(UNAUDITED)

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

3,886,190

 

 

$

3,338,121

 

 

$

10,338,003

 

 

$

9,342,425

 

Reversal of net unrealized losses on securities with

   other-than-temporary impairment

 

 

-

 

 

 

981,792

 

 

 

-

 

 

 

525,446

 

Unrealized gain (loss) on securities

 

 

14,920,081

 

 

 

4,065,221

 

 

 

23,064,008

 

 

 

(17,353,309

)

Unrealized loss on bond purchase commitments

 

 

-

 

 

 

(1,032,788

)

 

 

-

 

 

 

(2,007,855

)

Comprehensive income (loss)

 

 

18,806,271

 

 

 

7,352,346

 

 

 

33,402,011

 

 

 

(9,493,293

)

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

4


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(UNAUDITED)

 

 

 

General Partner

 

 

# of BUCs -

Restricted and

Unrestricted

 

 

BUCs

- Restricted and

Unrestricted

 

 

Total

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Balance as of December 31, 2018

 

$

344,590

 

 

 

60,691,467

 

 

$

304,121,151

 

 

$

304,465,741

 

 

$

58,978,042

 

Cumulative effect of accounting change (Note 2)

 

 

(2

)

 

 

-

 

 

 

(210

)

 

 

(212

)

 

 

-

 

Distributions paid or accrued ($0.125 per BUC):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular distribution

 

 

(53,812

)

 

 

-

 

 

 

(5,327,357

)

 

 

(5,381,169

)

 

 

-

 

Distribution of Tier 2 income (Note 3)

 

 

(753,025

)

 

 

-

 

 

 

(2,259,077

)

 

 

(3,012,102

)

 

 

-

 

Net income allocable to Partners

 

 

780,245

 

 

 

-

 

 

 

4,953,805

 

 

 

5,734,050

 

 

 

-

 

Restricted unit compensation expense

 

 

1,842

 

 

 

-

 

 

 

182,342

 

 

 

184,184

 

 

 

-

 

Unrealized gain on securities

 

 

81,439

 

 

 

-

 

 

 

8,062,488

 

 

 

8,143,927

 

 

 

8,143,927

 

Balance as of March 31, 2019

 

 

401,277

 

 

 

60,691,467

 

 

 

309,733,142

 

 

 

310,134,419

 

 

 

67,121,969

 

Distributions paid or accrued ($0.125 per BUC):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular distribution

 

 

(76,631

)

 

 

-

 

 

 

(7,586,433

)

 

 

(7,663,064

)

 

 

-

 

Net income allocable to Partners

 

 

31,684

 

 

 

-

 

 

 

3,136,743

 

 

 

3,168,427

 

 

 

-

 

Restricted unit compensation expense

 

 

1,862

 

 

 

-

 

 

 

184,368

 

 

 

186,230

 

 

 

-

 

Unrealized gain on securities

 

 

149,201

 

 

 

-

 

 

 

14,770,880

 

 

 

14,920,081

 

 

 

14,920,081

 

Balance as of June 30, 2019

 

$

507,393

 

 

 

60,691,467

 

 

$

320,238,700

 

 

$

320,746,093

 

 

$

82,042,050

 

 

 

 

General Partner

 

 

# of BUCs -

Restricted and

Unrestricted

 

 

BUCs

- Restricted and

Unrestricted

 

 

Total

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Balance as of December 31, 2017

 

$

437,256

 

 

 

60,373,674

 

 

$

313,403,014

 

 

$

313,840,270

 

 

$

75,623,830

 

Cumulative effect of accounting change

 

 

(2,169

)

 

 

-

 

 

 

(214,779

)

 

 

(216,948

)

 

 

-

 

Distributions paid or accrued ($0.125 per BUC):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular distribution

 

 

(76,329

)

 

 

-

 

 

 

(7,556,616

)

 

 

(7,632,945

)

 

 

-

 

Net income allocable to Partners

 

 

52,865

 

 

 

-

 

 

 

5,233,676

 

 

 

5,286,541

 

 

 

-

 

Sale of BUCs, net of issuance costs

 

 

-

 

 

 

38,617

 

 

 

192,310

 

 

 

192,310

 

 

 

-

 

Repurchase of BUCs

 

 

-

 

 

 

(198,465

)

 

 

(1,256,654

)

 

 

(1,256,654

)

 

 

-

 

Restricted units awarded

 

 

-

 

 

 

239,102

 

 

 

-

 

 

 

-

 

 

 

-

 

Restricted units compensation expense

 

 

2,066

 

 

 

-

 

 

 

204,570

 

 

 

206,636

 

 

 

-

 

Unrealized loss on securities

 

 

(218,749

)

 

 

-

 

 

 

(21,656,127

)

 

 

(21,874,876

)

 

 

(21,874,876

)

Unrealized loss on bond purchase commitments

 

 

(9,751

)

 

 

-

 

 

 

(965,316

)

 

 

(975,067

)

 

 

(975,067

)

Balance as of March 31, 2018

 

 

185,189

 

 

 

60,452,928

 

 

 

287,384,078

 

 

 

287,569,267

 

 

 

52,773,887

 

Distributions paid or accrued ($0.125 per BUC):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular distribution

 

 

(76,330

)

 

 

-

 

 

 

(7,556,616

)

 

 

(7,632,946

)

 

 

-

 

Net income allocable to Partners

 

 

26,204

 

 

 

-

 

 

 

2,594,155

 

 

 

2,620,359

 

 

 

-

 

Repurchase of BUCs

 

 

-

 

 

 

(70,110

)

 

 

(440,959

)

 

 

(440,959

)

 

 

-

 

Restricted units awarded

 

 

-

 

 

 

70,110

 

 

 

-

 

 

 

-

 

 

 

-

 

Restricted units compensation expense

 

 

5,436

 

 

 

-

 

 

 

538,085

 

 

 

543,521

 

 

 

-

 

Unrealized gain on securities

 

 

45,216

 

 

 

-

 

 

 

4,476,351

 

 

 

4,521,567

 

 

 

4,065,221

 

Unrealized loss on bond purchase commitments

 

 

(10,328

)

 

 

-

 

 

 

(1,022,460

)

 

 

(1,032,788

)

 

 

(1,032,788

)

Reversal of net unrealized loss on securities

   with other-than-temporary impairment

 

 

5,254

 

 

 

-

 

 

 

520,192

 

 

 

525,446

 

 

 

981,792

 

Balance as of June 30, 2018

 

$

180,641

 

 

 

60,452,928

 

 

$

286,492,826

 

 

$

286,673,467

 

 

$

56,788,112

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 

5


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

10,338,003

 

 

$

9,342,425

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

1,640,612

 

 

 

1,828,131

 

Contingent interest realized on investing activities

 

 

(3,042,102

)

 

 

-

 

Impairment of securities

 

 

-

 

 

 

831,062

 

Loss (gain) on derivatives, net of cash paid

 

 

508,354

 

 

 

(1,127,589

)

Restricted unit compensation expense

 

 

370,414

 

 

 

750,157

 

Bond premium/discount amortization

 

 

(67,657

)

 

 

(33,987

)

Amortization of deferred financing costs

 

 

731,006

 

 

 

895,459

 

Deferred income tax expense (benefit) & income tax payable/receivable

 

 

172,965

 

 

 

(183,303

)

Change in preferred return receivable from unconsolidated entities, net

 

 

(3,005,017

)

 

 

(1,799,127

)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Increase in interest receivable

 

 

(207,986

)

 

 

(1,141,448

)

(Increase) decrease in other assets

 

 

734,903

 

 

 

(928,527

)

Decrease in accounts payable and accrued expenses

 

 

(1,051,467

)

 

 

(516,061

)

Net cash provided by operating activities

 

 

7,122,028

 

 

 

7,917,192

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(58,247

)

 

 

(431,784

)

Acquisition of mortgage revenue bonds

 

 

(19,250,000

)

 

 

(19,540,000

)

Contributions to unconsolidated entities

 

 

(17,285,950

)

 

 

(16,488,929

)

Principal payments received on mortgage revenue bonds

 

 

14,341,785

 

 

 

23,285,577

 

Principal payments received on taxable mortgage revenue bonds

 

 

23,953

 

 

 

30,526

 

Principal payments received on PHC Certificates

 

 

2,767,166

 

 

 

226,714

 

Cash paid for land held for development and deposits on potential purchases

 

 

-

 

 

 

(2,660,649

)

Advances on property loans

 

 

-

 

 

 

(66,651

)

Principal payments received on property loans and contingent interest

 

 

11,409,737

 

 

 

650,000

 

Net cash used in investing activities

 

 

(8,051,556

)

 

 

(14,995,196

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Distributions paid

 

 

(17,386,938

)

 

 

(17,458,416

)

Repurchase of BUCs

 

 

-

 

 

 

(1,697,613

)

Proceeds from the sale of BUCs

 

 

-

 

 

 

233,633

 

Payment of offering costs related to the sale of BUCs

 

 

-

 

 

 

(4,678

)

Proceeds from debt financing

 

 

18,430,500

 

 

 

-

 

Principal payments on debt financing

 

 

(5,271,169

)

 

 

(16,924,182

)

Principal payments on mortgages payable

 

 

(373,843

)

 

 

(380,775

)

Principal borrowing on unsecured lines of credit

 

 

23,200,000

 

 

 

19,540,000

 

Principal payments on unsecured lines of credit

 

 

(35,659,200

)

 

 

(20,000,000

)

Increase (decrease) in security deposit liability related to restricted cash

 

 

(26,397

)

 

 

17,168

 

Debt financing and other deferred costs

 

 

(105,457

)

 

 

(8,670

)

Net cash used in financing activities

 

 

(17,192,504

)

 

 

(36,683,533

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(18,122,032

)

 

 

(43,761,537

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

33,268,611

 

 

 

71,583,329

 

Cash, cash equivalents and restricted cash at end of period

 

$

15,146,579

 

 

$

27,821,792

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

11,297,205

 

 

$

11,702,009

 

Cash paid during the period for income taxes

 

 

155,000

 

 

 

162,963

 

Supplemental disclosure of noncash investing and financing activities:

 

 

 

 

 

 

 

 

Distributions declared but not paid for BUCs and General Partner

 

$

7,663,064

 

 

$

7,632,945

 

Distributions declared but not paid for Series A Preferred Units

 

 

708,750

 

 

 

708,750

 

Land contributed as investment in an unconsolidated entity

 

 

-

 

 

 

2,597,784

 

Capital expenditures financed through accounts payable

 

 

360

 

 

 

24,491

 

Deferred financing costs financed through accounts payable

 

 

35,969

 

 

 

19,626

 

 

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the total of the same such amounts shown in the condensed consolidated statements of cash flows:

 

 

 

June 30, 2019

 

 

June 30, 2018

 

Cash and cash equivalents

 

$

13,821,980

 

 

$

26,328,497

 

Restricted cash

 

 

1,324,599

 

 

 

1,493,295

 

Total cash, cash equivalents and restricted cash

 

$

15,146,579

 

 

$

27,821,792

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 

6


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

1. Basis of Presentation

General

America First Multifamily Investors, L.P. (the “Partnership”) was formed on April 2, 1998, under the Delaware Revised Uniform Limited Partnership Act for the purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds (“MRBs”) that provide construction and/or permanent financing for affordable multifamily and student housing residential properties (collectively “Residential Properties”) and commercial properties. The Partnership may also invest in other types of securities that may or may not be secured by real estate and may make property loans secured by multifamily residential properties which may or may not be financed by MRBs held by the Partnership.   The Partnership may acquire real estate securing its MRBs or property loans through foreclosure in the event of a default or through the receipt of a fee simple deed in lieu of foreclosure.  In addition, the Partnership may acquire interests in multifamily and student residential properties (“MF Properties”) in order to position itself for future investments in MRBs that finance these properties or to operate the MF Properties until their “highest and best use” can be determined by management.

The Partnership’s general partner is America First Capital Associates Limited Partnership Two (“AFCA 2” or “General Partner”).  The general partner of AFCA 2 is Burlington Capital LLC (“Burlington”). The Partnership has issued Beneficial Unit Certificates (“BUCs”) representing assigned limited partnership interests to investors (“BUC holders”). The Partnership has is