Segments

The Company consists of five reportable segments, Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts, MBS Investments, and Consolidated VIEs. In addition to the five reportable segments, the Company also separately reports its consolidation and elimination information because it does not allocate certain items to the segments.

Mortgage Revenue Bond Investments Segment

The Mortgage Revenue Bond Investments segment consists of the Company’s portfolio of federally mortgage revenue bonds which have been issued to provide construction and/or permanent financing for the Residential Properties and a commercial property. Such mortgage revenue bonds are held as long-term investments. As of December 31, 2014, the Company held fifty-three mortgage revenue bonds not associated with Consolidated VIEs and two mortgage revenue bonds associated with Consolidated VIEs which are bonds that are eliminated in consolidation on the Company’s financial statements. The Residential Properties financed by the 50 mortgage revenue bonds contain a total of 6,527 rental units. Three of the bonds’ properties are not operational and are under construction and two bonds are collateralized by commercial real estate (Note 5).

MF Properties Segment

The MF Properties segment consists of indirect equity interests in multifamily, student housing, and senior citizen residential properties which are not currently financed by mortgage revenue bonds held by the Partnership but which the Partnership eventually intends to finance by such bonds through a restructuring. In connection with any such restructuring, the Partnership will be required to dispose of any equity interest held in such MF Properties. With the exception of the Ohio Properties and the Greens Property, the Partnership’s interests in its current MF Properties are not currently classified as Assets Held for Sale because the Partnership is not actively marketing them for sale, there is no definitive purchase agreement in existence that, under current guidance, can be recognized as a sale of real estate assets and, therefore, no sale is expected in the next twelve months. As discussed above, the Ohio Properties and the Greens Property are reported as discontinued operations in 2013 (Note 10). During the time the Partnership holds an interest in an MF Property, any net rental income generated by the MF Properties in excess of debt service will be available for distribution to the Partnership in accordance with its interest in the MF Property. Any such cash distribution will contribute to the Partnership’s CAD. As of December 31, 2014, the Company consolidated the results of nine MF Properties containing a total of 2,163 rental units (Note 8).

Other Investments

The Partnership Agreement authorizes the Company to make investments in investments other than mortgage revenue bonds provided that these other investments are rated in one of the four highest rating categories by a national securities rating agency and do not constitute more than 25% of the Company’s assets at the time of acquisition as required under the Agreement of Limited Partnership. In addition, the amount of other investments are limited based on the conditions to the exemption from registration under the Investment Company Act of 1940 that is relied upon for the Partnership. The Company currently has other investments, PHC Certificates and MBS which are reported as two separate segments.

The PHC Trusts segment consists of the assets, liabilities, and related income and expenses of the PHC Trusts. The Partnership consolidates the PHC Trusts due to its ownership of the LIFERS issued by the three PHC Trusts, which hold custodial receipts evidencing loans made to a number of local public housing authorities. Principal and interest on these loans are payable by the respective public housing authorities out of annual appropriations to be made to the public housing authorities by the HUD under HUD’s Capital Fund Program established under the Capital Fund Program. This investment has been reported as part of the Partnership balance sheet and results of operations since acquired in July 2012 (Note 6).

The MBS segment consists of the assets, liabilities, and related income and expenses of the MBS TOB Trusts that the Company consolidated due to its ownership of the LIFERs issued by the MBS TOB Trusts. These MBS TOB Trusts are securitizations of state-issued mortgage-backed securities which are backed by residential mortgage loans. These investments were acquired during the fourth quarter of 2012 through the second quarter of 2013 and all but three MBS were sold in 2014 (Note 7).

Consolidated VIE segment

The Consolidated VIE segment consists of multifamily residential properties which are financed with mortgage revenue bonds held by the Partnership, the assets, liabilities and operating results of which are consolidated with those of the Partnership. The mortgage revenue bonds on these Consolidated VIE properties are eliminated from the Company’s financial statements as a result of such consolidation, however, such bonds are held as long-term investments by the Partnership which continues to be entitled to receive principal and interest payments on such bonds. The Company does not actually own an equity position in the Consolidated VIEs or their underlying properties. As of December 31, 2014, the Company consolidated two VIE multifamily residential properties containing a total of 410 rental units (Note 4).

Management closely monitors and evaluates the financial reporting associated with and the operations of the Consolidated VIEs and the MF Properties and performs such evaluation separately from the other operations of the Partnership through interaction with the affiliated property management company which manages the multifamily residential properties held by the Consolidated VIEs and the MF Properties.

Management’s goals with respect to the properties constituting the Company’s Consolidated VIE and MF Properties reportable segments is to generate increasing amounts of net rental income from these properties that will allow them to (i) make all payments of base interest, and possibly pay contingent interest, on the properties included in the Mortgage Revenue Bond Investments segment and the Consolidated VIE segment, and (ii) distribute net rental income to the Partnership from the MF Properties segment until such properties can be refinanced with additional mortgage revenue bonds meeting the Partnership’s investment criteria. In order to achieve these goals, management of these multifamily residential properties is focused on: (i) maintaining high economic occupancy and increasing rental rates through effective leasing, reduced turnover rates and providing quality maintenance and services to maximize resident satisfaction; (ii) managing operating expenses and achieving cost reductions through operating efficiencies and economies of scale generally inherent in the management of a portfolio of multiple properties; and (iii) emphasizing regular programs of repairs, maintenance and property improvements to enhance the competitive advantage and value of its properties in their respective market areas.

The following table details certain key financial information for the Company’s reportable segments for the three years ended December 31:



	2014			2013			2012
Total revenues
Mortgage Revenue Bond Investments	$	27,858,725		$	27,766,013		$	12,169,336
MF Properties	14,250,572			11,358,719			7,846,813
Public Housing Capital Fund Trust Certificates	3,038,819			3,261,611			1,624,534
Mortgage-Backed Securities	1,423,958			1,601,270			194,039
Consolidated VIEs	3,180,680			13,938,850			4,805,746
Consolidation/eliminations	(929,279		)	(10,644,603		)	(1,520,817		)
Total revenues	$	48,823,475		$	47,281,860		$	25,119,651

Interest expense
Mortgage Revenue Bond Investments	$	7,379,830		$	3,327,231		$	3,510,182
MF Properties	2,319,928			2,152,010			1,439,370
Public Housing Capital Fund Trust Certificates	1,295,238			1,292,540			542,479
Mortgage-Backed Securities	403,653			463,555			38,964
Consolidated VIEs	2,254,786			3,221,000			3,240,306
Consolidation/eliminations	(2,254,786		)	(3,221,000		)	(3,240,306		)
Total interest expense	$	11,398,649		$	7,235,336		$	5,530,995

Depreciation expense
Mortgage Revenue Bond Investments	$	—		$	—		$	—
MF Properties	4,801,533			3,804,499			2,485,365
Public Housing Capital Fund Trust Certificates	—			—			—
Mortgage-Backed Securities	—			—			—
Consolidated VIEs	940,057			1,367,204			1,544,346
Consolidation/eliminations	—			—			—
Total depreciation expense	$	5,741,590		$	5,171,703		$	4,029,711

Income (loss) from continuing operations
Mortgage Revenue Bond Investments	$	13,870,294		$	14,491,581		$	4,136,126
MF Properties	(938,151		)	(1,837,076		)	(1,065,819		)
Public Housing Capital Fund Trust Certificates	1,714,968			1,940,459			1,067,749
Mortgage-Backed Securities	1,017,637			1,055,736			148,552
Consolidated VIEs	(1,987,839		)	6,265,571			(3,285,896		)
Consolidation/eliminations	1,352,279			(7,381,833		)	1,763,050
Net income - America First Multifamily Investors, L. P.	$	15,029,188		$	14,534,438		$	2,763,762

Net income (loss)
Mortgage Revenue Bond Investments	$	13,870,294		$	14,491,581		$	4,136,126
MF Properties	(933,478		)	1,343,405			617,263
Public Housing Capital Fund Trust Certificates	1,714,968			1,940,459			1,067,749
Mortgage-Backed Securities	1,017,637			1,055,736			148,552
Consolidated VIEs	(1,987,839		)	6,265,571			(3,285,896		)
Consolidation/eliminations	1,352,279			(7,381,833		)	1,763,050
Net income - America First Multifamily Investors, L. P.	$	15,033,861		$	17,714,919		$	4,446,844



	2014			2013			2012
Total assets
Mortgage Revenue Bond Investments	$	698,637,412		$	442,175,645		$	357,606,420
MF Properties	101,696,234			83,580,479			51,379,479
Public Housing Capital Fund Trust Certificates	61,577,848			62,449,028			65,811,361
Mortgage-Backed Securities	15,101,309			38,427,654			32,488,363
Discontinued Operations	—			—			32,580,427
Consolidated VIEs	13,456,861			14,019,837			30,207,191
Consolidation/eliminations	(146,230,447		)	(106,419,611		)	(156,922,486		)
Total assets	$	744,239,217		$	534,233,032		$	413,150,755

Total partners' capital
Mortgage Revenue Bond Investments	$	355,480,225		$	231,042,138		$	221,665,286
MF Properties	18,600,449			23,107,538			6,643,315
Public Housing Capital Fund Trust Certificates	16,803,457			13,336,761			16,720,915
Mortgage-Backed Securities	3,095,526			4,397,356			7,334,399
Consolidated VIEs	(23,499,616		)	(21,511,776		)	(22,480,214		)
Consolidation/eliminations	(60,536,142		)	(47,237,930		)	(47,966,509		)
Total partners' capital	$	309,943,899		$	203,134,087		$	181,917,192