10-Q 1 atax-10q_20190930.htm 10-Q atax-10q_20190930.htm

 

 

 

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 September 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 September 30, 2019, the registrant had 60,835,204 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)

 

 

 

September 30, 2019

 

 

December 31, 2018

 

Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

40,782,506

 

 

$

32,001,925

 

Restricted cash

 

 

570,990

 

 

 

1,266,686

 

Interest receivable, net

 

 

7,927,509

 

 

 

7,011,839

 

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

 

 

747,157,387

 

 

 

645,258,873

 

Mortgage revenue bonds, at fair value (Note 6)

 

 

30,125,333

 

 

 

86,894,562

 

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

 

 

44,684,506

 

 

 

48,672,086

 

Real estate assets: (Note 8)

 

 

 

 

 

 

 

 

Land and improvements

 

 

4,900,465

 

 

 

4,971,665

 

Buildings and improvements

 

 

72,003,079

 

 

 

71,897,070

 

Real estate assets before accumulated depreciation

 

 

76,903,544

 

 

 

76,868,735

 

Accumulated depreciation

 

 

(14,650,397

)

 

 

(12,272,387

)

Net real estate assets

 

 

62,253,147

 

 

 

64,596,348

 

Investments in unconsolidated entities (Note 9)

 

 

87,059,995

 

 

 

76,534,306

 

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

 

 

7,999,094

 

 

 

15,961,012

 

Other assets (Note 12)

 

 

4,940,703

 

 

 

4,515,609

 

Total Assets

 

$

1,033,501,170

 

 

$

982,713,246

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

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

 

$

9,592,950

 

 

$

7,543,822

 

Distribution payable

 

 

8,869,350

 

 

 

7,576,167

 

Unsecured lines of credit (Note 14)

 

 

13,200,000

 

 

 

35,659,200

 

Debt financing, net (Note 15)

 

 

538,812,130

 

 

 

505,663,565

 

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

 

 

27,049,871

 

 

 

27,454,375

 

Total Liabilities

 

 

597,524,301

 

 

 

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)

 

 

94,377,414

 

 

 

94,350,376

 

 

 

 

 

 

 

 

 

 

Partnersʼ Capital:

 

 

 

 

 

 

 

 

General Partner (Note 1)

 

 

731,741

 

 

 

344,590

 

Beneficial Unit Certificates ("BUCs," Note 1)

 

 

340,867,714

 

 

 

304,121,151

 

Total Partnersʼ Capital

 

 

341,599,455

 

 

 

304,465,741

 

Total Liabilities and Partnersʼ Capital

 

$

1,033,501,170

 

 

$

982,713,246

 

 

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

4


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property revenues

 

$

1,974,546

 

 

$

2,285,736

 

 

$

6,002,971

 

 

$

7,025,390

 

Investment income

 

 

12,589,743

 

 

 

12,733,013

 

 

 

37,072,288

 

 

 

38,360,534

 

Contingent interest income

 

 

3,360

 

 

 

4,246,094

 

 

 

3,045,462

 

 

 

4,246,094

 

Other interest income

 

 

206,625

 

 

 

5,217,741

 

 

 

635,732

 

 

 

7,019,465

 

Other income

 

 

91,428

 

 

 

1,518,531

 

 

 

120,181

 

 

 

1,592,831

 

Total revenues

 

 

14,865,702

 

 

 

26,001,115

 

 

 

46,876,634

 

 

 

58,244,314

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate operating (exclusive of items shown below)

 

 

1,381,909

 

 

 

1,606,765

 

 

 

3,477,983

 

 

 

4,292,745

 

Impairment of securities

 

 

-

 

 

 

309,958

 

 

 

-

 

 

 

1,141,020

 

Impairment charge on real estate assets

 

 

75,000

 

 

 

150,000

 

 

 

75,000

 

 

 

150,000

 

Depreciation and amortization

 

 

743,503

 

 

 

864,600

 

 

 

2,384,115

 

 

 

2,692,731

 

Interest expense (Note 2)

 

 

6,509,021

 

 

 

6,394,683

 

 

 

19,110,876

 

 

 

18,091,314

 

General and administrative

 

 

6,992,528

 

 

 

3,653,288

 

 

 

12,267,917

 

 

 

9,506,258

 

Total expenses

 

 

15,701,961

 

 

 

12,979,294

 

 

 

37,315,891

 

 

 

35,874,068

 

Other Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sales of real estate assets, net

 

 

-

 

 

 

4,051,429

 

 

 

-

 

 

 

4,051,429

 

Gain on sale of investment in an unconsolidated entity

 

 

10,475,927

 

 

 

-

 

 

 

10,475,927

 

 

 

-

 

Income before income taxes

 

 

9,639,668

 

 

 

17,073,250

 

 

 

20,036,670

 

 

 

26,421,675

 

Income tax benefit

 

 

(68,235

)

 

 

(809,805

)

 

 

(9,236

)

 

 

(803,805

)

Net income

 

 

9,707,903

 

 

 

17,883,055

 

 

 

20,045,906

 

 

 

27,225,480

 

Redeemable Series A Preferred Unit distributions and accretion

 

 

(717,762

)

 

 

(717,763

)

 

 

(2,153,288

)

 

 

(2,153,288

)

Net income available to Partners

 

$

8,990,141

 

 

$

17,165,292

 

 

$

17,892,618

 

 

$

25,072,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Partners allocated to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Partner

 

$

1,266,157

 

 

$

2,163,058

 

 

$

2,078,086

 

 

$

2,242,127

 

Limited Partners - BUCs

 

 

7,695,468

 

 

 

14,933,260

 

 

 

15,719,693

 

 

 

22,662,993

 

Limited Partners - Restricted units

 

 

28,516

 

 

 

68,974

 

 

 

94,839

 

 

 

167,072

 

 

 

$

8,990,141

 

 

$

17,165,292

 

 

$

17,892,618

 

 

$

25,072,192

 

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

 

$

0.13

 

 

$

0.25

 

 

$

0.26

 

 

$

0.38

 

Weighted average number of BUCs outstanding, basic

 

 

60,519,542

 

 

 

59,907,123

 

 

 

60,457,299

 

 

 

59,989,585

 

Weighted average number of BUCs outstanding, diluted

 

 

60,519,542

 

 

 

59,907,123

 

 

 

60,457,299

 

 

 

59,989,585

 

 

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

 

5


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  

(UNAUDITED)

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

9,707,903

 

 

$

17,883,055

 

 

$

20,045,906

 

 

$

27,225,480

 

Reversal of net unrealized losses on securities with

   other-than-temporary impairment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

525,446

 

Unrealized gain (loss) on securities

 

 

19,048,316

 

 

 

(6,744,509

)

 

 

42,112,324

 

 

 

(24,097,818

)

Unrealized gain (loss) on bond purchase commitments

 

 

-

 

 

 

51,760

 

 

 

-

 

 

 

(1,956,095

)

Comprehensive income

 

 

28,756,219

 

 

 

11,190,306

 

 

 

62,158,230

 

 

 

1,697,013

 

 

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

 

6


 

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

 

Distributions paid or accrued ($0.125 per BUC):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution of Tier 2 income (Note 3)

 

 

(1,264,949

)

 

 

-

 

 

 

(3,794,847

)

 

 

(5,059,796

)

 

 

-

 

Distribution of Tier 3 income (Note 3)

 

 

-

 

 

 

-

 

 

 

(3,809,553

)

 

 

(3,809,553

)

 

 

-

 

Net income allocable to Partners

 

 

1,266,157

 

 

 

-

 

 

 

7,723,984

 

 

 

8,990,141

 

 

 

-

 

Restricted units awarded

 

 

-

 

 

 

353,197

 

 

 

-

 

 

 

-

 

 

 

-

 

Restricted unit compensation expense

 

 

32,657

 

 

 

-

 

 

 

3,233,020

 

 

 

3,265,677

 

 

 

-

 

BUCs surrendered to pay tax withholding

   on vested restricted units

 

 

-

 

 

 

(209,460

)

 

 

(1,581,423

)

 

 

(1,581,423

)

 

 

-

 

Unrealized gain on securities

 

 

190,483

 

 

 

-

 

 

 

18,857,833

 

 

 

19,048,316

 

 

 

19,048,316

 

Balance as of September 30, 2019

 

$

731,741

 

 

 

60,835,204

 

 

$

340,867,714

 

 

$

341,599,455

 

 

$

101,090,366

 

7


 

 

 

 

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

 

Distributions paid or accrued ($0.125 per BUC):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular distribution

 

 

(13,554

)

 

 

-

 

 

 

(1,341,891

)

 

 

(1,355,445

)

 

 

-

 

Distribution of Tier 2 income (Note 3)

 

 

(2,074,381

)

 

 

 

 

 

 

(6,223,142

)

 

 

(8,297,523

)

 

 

 

 

Net income allocable to Partners

 

 

2,163,058

 

 

 

-

 

 

 

15,002,234

 

 

 

17,165,292

 

 

 

-

 

Sale of BUCs, net of issuance costs

 

 

-

 

 

 

67,333

 

 

 

383,990

 

 

 

383,990

 

 

 

-

 

Restricted units compensation expense

 

 

6,222

 

 

 

-

 

 

 

616,005

 

 

 

622,227

 

 

 

-

 

Unrealized loss on securities

 

 

(67,445

)

 

 

-

 

 

 

(6,677,064

)

 

 

(6,744,509

)

 

 

(6,288,163

)

Unrealized gain on bond purchase commitments

 

 

518

 

 

 

-

 

 

 

51,242

 

 

 

51,760

 

 

 

51,760

 

Reversal of net unrealized loss on securities

   with other-than-temporary impairment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(456,346

)

Balance as of September 30, 2018

 

$

195,059

 

 

 

60,520,261

 

 

$

288,304,200

 

 

$

288,499,259

 

 

$

50,095,363

 

 

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

 

 

8


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

For the Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

20,045,906

 

 

$

27,225,480

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

2,384,115

 

 

 

2,692,731

 

Gain on sale of real estate assets, net

 

 

-

 

 

 

(4,051,429

)

Gain on sale of investment in an unconsolidated entity

 

 

(10,475,927

)

 

 

-

 

Contingent interest realized on investing activities

 

 

(3,045,462

)

 

 

(4,246,094

)

Impairment of securities

 

 

-

 

 

 

1,141,020

 

Impairment charge on real estate assets

 

 

75,000

 

 

 

150,000

 

Loss (gain) on derivatives, net of cash paid

 

 

574,028

 

 

 

(1,266,808

)

Restricted unit compensation expense

 

 

3,636,091

 

 

 

1,372,384

 

Bond premium/discount amortization

 

 

(106,114

)

 

 

(50,839

)

Debt premium amortization

 

 

(8,410

)

 

 

-

 

Amortization of deferred financing costs

 

 

1,476,463

 

 

 

1,304,879

 

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

 

 

100,804

 

 

 

(840,871

)

Change in preferred return receivable from unconsolidated entities, net

 

 

(1,935,286

)

 

 

(2,642,634

)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Increase in interest receivable

 

 

(915,670

)

 

 

(1,395,660

)

(Increase) decrease in other assets

 

 

694,925

 

 

 

(921,756

)

Increase (decrease) in accounts payable and accrued expenses

 

 

327,188

 

 

 

(473,415

)

Net cash provided by operating activities

 

 

12,827,651

 

 

 

17,996,988

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(88,110

)

 

 

(496,336

)

Proceeds from sale of MF Properties

 

 

-