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 mortgage revenue bonds which have been issued to provide construction and/or permanent financing for Residential Properties and commercial properties in their market areas. Such mortgage revenue bonds are held as long-term investments. As of March 31, 2015, the Company held sixty 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 fifty-seven mortgage revenue bonds contain a total of 7,379 rental units. In addition, three of the bonds’ properties are not operational and are under construction and two bonds are collateralized by commercial real estate (Note 4).

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. Other than The Colonial property discussed in Note 7, 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. 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 March 31, 2015, the Company consolidated the results of nine MF Properties containing a total of 2,169 rental units (Note 7).

Other Investments

The Partnership Agreement authorizes the Company to make investments other than in 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 is limited based on the conditions to the exemption from registration under the Investment Company Act of 1940. The Company currently owns 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.

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 6).

The 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 as a result of consolidation guidance. 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 March 31, 2015, the Company consolidated two VIEs containing a total 410 units (Note 3).

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, 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 months ended March 31, 2015 and 2014:



	For the Three Months Ended,
	March 31, 2015			March 31, 2014
Total revenues
Mortgage Revenue Bond Investments	$	7,549,171		$	8,260,913
MF Properties	4,302,301			3,150,344
Public Housing Capital Fund Trust Certificates	732,903			800,828
Mortgage-Backed Securities	152,860			421,160
Consolidated VIEs	804,068			800,872
Consolidation/eliminations	(230,610		)	(233,277		)
Total revenues	$	13,310,693		$	13,200,840

Interest expense
Mortgage Revenue Bond Investments	$	2,947,100		$	1,149,922
MF Properties	712,899			563,340
Public Housing Capital Fund Trust Certificates	296,460			337,557
Mortgage-Backed Securities	37,697			118,730
Consolidated VIEs	569,934			557,884
Consolidation/eliminations	(574,969		)	(557,884		)
Total interest expense	$	3,989,121		$	2,169,549

Depreciation expense
Mortgage Revenue Bond Investments	$	—		$	—
MF Properties	1,454,179			1,019,366
Public Housing Capital Fund Trust Certificates	—			—
Mortgage-Backed Securities	—			—
Consolidated VIEs	239,120			232,781
Consolidation/eliminations	—			—
Total depreciation expense	$	1,693,299		$	1,252,147

Net income (loss)
Mortgage Revenue Bond Investments	$	2,520,116		$	5,628,100
MF Properties	(393,641		)	(224,508		)
Public Housing Capital Fund Trust Certificates	429,148			456,118
Mortgage-Backed Securities	115,022			299,890
Consolidated VIEs	(497,170		)	(444,098		)
Consolidation/eliminations	351,004			331,327
Net income - America First Multifamily Investors, L. P.	$	2,524,479		$	6,046,829

The following table details certain key financial information for the Company’s reportable segments as of March 31, 2015 and December 31, 2014:



	March 31, 2015			December 31, 2014
Total assets
Mortgage Revenue Bond Investments	$	723,613,539		$	698,637,412
MF Properties	111,632,020			101,696,234
Public Housing Capital Fund Trusts	60,664,767			61,577,848
Mortgage-Backed Securities	15,104,963			15,101,309
Consolidated VIEs	13,169,000			13,456,861
Consolidation/eliminations	(151,451,921		)	(146,230,447		)
Total assets	$	772,732,368		$	744,239,217

Total partners’ capital
Mortgage Revenue Bond Investments	$	344,804,295		$	355,480,225
MF Properties	(6,379,698		)	18,600,449
Public Housing Capital Fund Trusts	15,890,718			16,803,457
Mortgage-Backed Securities	3,105,324			3,095,526
Consolidated VIEs	(23,996,786		)	(23,499,616		)
Consolidation/eliminations	(30,196,628		)	(60,536,142		)
Total partners’ capital	$	303,227,225		$	309,943,899