0001564590-18-026637.txt : 20181105 0001564590-18-026637.hdr.sgml : 20181105 20181105083247 ACCESSION NUMBER: 0001564590-18-026637 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 118 CONFORMED PERIOD OF REPORT: 20180930 FILED AS OF DATE: 20181105 DATE AS OF CHANGE: 20181105 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICA FIRST MULTIFAMILY INVESTORS, L.P. CENTRAL INDEX KEY: 0001059142 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE SERVICES [6199] IRS NUMBER: 470810385 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-24843 FILM NUMBER: 181158829 BUSINESS ADDRESS: STREET 1: 1004 FARNAM ST STREET 2: STE 400 CITY: OMAHA STATE: NE ZIP: 68102 BUSINESS PHONE: (402) 444-1630 MAIL ADDRESS: STREET 1: 1004 FARNAM ST STREET 2: STE 400 CITY: OMAHA STATE: NE ZIP: 68102 FORMER COMPANY: FORMER CONFORMED NAME: AMERICA FIRST TAX EXEMPT INVESTORS LP DATE OF NAME CHANGE: 19980403 10-Q 1 atax-10q_20180930.htm ATAX-10-Q-20180930 atax-10q_20180930.htm

 

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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, 2018

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)

 

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 

 


 

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, student, senior citizen residential 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;

 

continued performance by counterparties to our interest rate derivative agreements;

 

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 with 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, 2017.

All references to “we,” “us,” and the “Partnership” in this document mean America First Multifamily Investors, L.P. and its consolidated subsidiaries.

 

 

 

 


 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

September 30, 2018

 

 

December 31, 2017

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

24,969,157

 

 

$

69,597,699

 

Restricted cash

 

 

703,112

 

 

 

1,985,630

 

Interest receivable, net

 

 

7,936,792

 

 

 

6,541,132

 

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

 

 

678,700,712

 

 

 

710,867,447

 

Mortgage revenue bonds, at fair value (Note 6)

 

 

63,765,212

 

 

 

77,971,208

 

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

 

 

48,741,478

 

 

 

49,641,588

 

Real estate assets: (Note 8)

 

 

 

 

 

 

 

 

Land and improvements

 

 

4,974,417

 

 

 

7,319,235

 

Buildings and improvements

 

 

71,819,902

 

 

 

78,953,488

 

Real estate assets before accumulated depreciation

 

 

76,794,319

 

 

 

86,272,723

 

Accumulated depreciation

 

 

(11,457,254

)

 

 

(9,580,531

)

Net real estate assets

 

 

65,337,065

 

 

 

76,692,192

 

Investment in unconsolidated entities (Note 9)

 

 

80,294,647

 

 

 

39,608,927

 

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

 

 

23,817,990

 

 

 

29,513,874

 

Other assets (Note 12)

 

 

6,950,752

 

 

 

7,348,302

 

Total Assets

 

$

1,001,216,917

 

 

$

1,069,767,999

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other liabilities

 

$

7,831,188

 

 

$

8,494,227

 

Distribution payable

 

 

9,652,968

 

 

 

8,423,803

 

Unsecured lines of credit (Note 13)

 

 

28,465,600

 

 

 

50,000,000

 

Debt financing, net (Note 14)

 

 

544,718,144

 

 

 

558,328,347

 

Mortgages payable and other secured financing, net (Note 15)

 

 

27,681,596

 

 

 

35,540,174

 

Derivative swaps, at fair value (Note 16)

 

 

26,798

 

 

 

826,852

 

Total Liabilities

 

 

618,376,294

 

 

 

661,613,403

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies (Note 17)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Series A preferred units, approximately $94.5 million redemption value,

   10.0 million authorized, 9.5 million issued and outstanding, net (Note 18)

 

 

94,341,364

 

 

 

94,314,326

 

 

 

 

 

 

 

 

 

 

Partnersʼ Capital

 

 

 

 

 

 

 

 

General Partner (Note 1)

 

 

195,059

 

 

 

437,256

 

Beneficial Unit Certificate holders (Note 1)

 

 

288,304,200

 

 

 

313,403,014

 

Total Partnersʼ Capital

 

 

288,499,259

 

 

 

313,840,270

 

Total Liabilities and Partnersʼ Capital

 

$

1,001,216,917

 

 

$

1,069,767,999

 

 

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 September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property revenues

 

$

2,285,736

 

 

$

3,244,440

 

 

$

7,025,390

 

 

$

10,280,940

 

Investment income

 

 

12,733,013

 

 

 

12,242,533

 

 

 

38,360,534

 

 

 

35,886,934

 

Contingent interest income

 

 

4,246,094

 

 

 

-

 

 

 

4,246,094

 

 

 

219,217

 

Other interest income

 

 

5,217,741

 

 

 

735,123

 

 

 

7,019,465

 

 

 

2,047,056

 

Other income

 

 

1,518,531

 

 

 

12,734

 

 

 

1,592,831

 

 

 

75,371

 

Total revenues

 

 

26,001,115

 

 

 

16,234,830

 

 

 

58,244,314

 

 

 

48,509,518

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate operating (exclusive of items shown below)

 

 

1,606,765

 

 

 

2,225,845

 

 

 

4,292,745

 

 

 

6,331,145

 

Impairment of securities

 

 

309,958

 

 

 

-

 

 

 

1,141,020

 

 

 

-

 

Impairment charge on real estate assets

 

 

150,000

 

 

 

-

 

 

 

150,000

 

 

 

-

 

Depreciation and amortization

 

 

864,600

 

 

 

1,259,055

 

 

 

2,692,731

 

 

 

4,122,260

 

Amortization of deferred financing costs

 

 

409,420

 

 

 

577,413

 

 

 

1,304,879

 

 

 

1,880,236

 

Interest expense

 

 

5,985,263

 

 

 

5,714,181

 

 

 

16,786,435

 

 

 

16,997,761

 

General and administrative

 

 

3,653,288

 

 

 

3,197,853

 

 

 

9,506,258

 

 

 

9,205,183

 

Total expenses

 

 

12,979,294

 

 

 

12,974,347

 

 

 

35,874,068

 

 

 

38,536,585

 

Other Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of real estate assets, net

 

 

4,051,429

 

 

 

-

 

 

 

4,051,429

 

 

 

7,152,512

 

Income before income taxes

 

 

17,073,250

 

 

 

3,260,483

 

 

 

26,421,675

 

 

 

17,125,445

 

Income tax expense (benefit)

 

 

(809,805

)

 

 

(285,000

)

 

 

(803,805

)

 

 

2,110,047

 

Net income

 

 

17,883,055

 

 

 

3,545,483

 

 

 

27,225,480

 

 

 

15,015,398

 

Net income attributable to noncontrolling interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

71,653

 

Partnership net income

 

 

17,883,055

 

 

 

3,545,483

 

 

 

27,225,480

 

 

 

14,943,745

 

Redeemable Series A preferred unit distributions and accretion

 

 

(717,763

)

 

 

(523,682

)

 

 

(2,153,288

)

 

 

(1,280,874

)

Net income available to Partners

 

$

17,165,292

 

 

$

3,021,801

 

 

$

25,072,192

 

 

$

13,662,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Partners and noncontrolling interest allocated to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Partner

 

$

2,163,058

 

 

$

30,218

 

 

$

2,242,127

 

 

$

1,212,429

 

Limited Partners - Unitholders

 

 

14,933,260

 

 

 

2,936,408

 

 

 

22,662,993

 

 

 

12,325,639

 

Limited Partners - Restricted Unitholders

 

 

68,974

 

 

 

55,175

 

 

 

167,072

 

 

 

124,803

 

Noncontrolling interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

71,653

 

 

 

$

17,165,292

 

 

$

3,021,801

 

 

$

25,072,192

 

 

$

13,734,524

 

Unitholders' interest in net income per Unit, basic and diluted

 

$

0.25

 

 

$

0.05

 

 

$

0.38

 

 

$

0.21

 

Distributions declared, per Unit

 

$

0.125

 

 

$

0.125

 

 

$

0.375

 

 

$

0.375

 

Weighted average number of Units outstanding, basic

 

 

59,907,123

 

 

 

59,811,578

 

 

 

59,989,585

 

 

 

59,904,078

 

Weighted average number of Units outstanding, diluted

 

 

59,907,123

 

 

 

59,811,578

 

 

 

59,989,585

 

 

 

59,904,078

 

 

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 September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income

 

$

17,883,055

 

 

$

3,545,483

 

 

$

27,225,480

 

 

$

15,015,398

 

Reversal of net unrealized losses on securities with

   other-than-temporary impairment

 

 

-

 

 

 

-

 

 

 

525,446

 

 

 

-

 

Unrealized gain (loss) on securities

 

 

(6,744,509

)

 

 

1,813,314

 

 

 

(24,097,818

)

 

 

31,020,368

 

Unrealized gain (loss) on bond purchase commitments

 

 

51,760

 

 

 

189,875

 

 

 

(1,956,095

)

 

 

955,598

 

Comprehensive income (loss)

 

 

11,190,306

 

 

 

5,548,672

 

 

 

1,697,013

 

 

 

46,991,364

 

Comprehensive income allocated to noncontrolling interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

71,653

 

Partnership comprehensive income (loss)

 

$

11,190,306

 

 

$

5,548,672

 

 

$

1,697,013

 

 

$

46,919,711

 

 

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017

(UNAUDITED)

 

 

 

General Partner

 

 

# of Units -

Restricted and

Unrestricted

 

 

Beneficial Unit

Certificate Holders

- Restricted and

Unrestricted

 

 

Non-controlling

Interest

 

 

Total

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Balance at December 31, 2017

 

$

437,256

 

 

 

60,373,674

 

 

$

313,403,014

 

 

$

-

 

 

$

313,840,270

 

 

$

75,623,830

 

Cumulative effect of accounting change

   (Note 2)

 

 

(2,169

)

 

 

 

 

 

 

(214,779

)

 

 

-

 

 

 

(216,948

)

 

 

-

 

Distributions paid or accrued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular distribution

 

 

(166,213

)

 

 

 

 

 

 

(16,455,123

)

 

 

-

 

 

 

(16,621,336

)

 

 

-

 

Distribution of Tier 2

  income (Note 3)

 

 

(2,074,381

)

 

 

 

 

 

 

(6,223,142

)

 

 

-

 

 

 

(8,297,523

)

 

 

-

 

Net income allocable to Partners

 

 

2,242,127

 

 

 

 

 

 

 

22,830,065

 

 

 

-

 

 

 

25,072,192

 

 

 

-

 

Sale of Beneficial Unit Certificates, net

   of issuance costs

 

 

-

 

 

 

105,950

 

 

 

576,300

 

 

 

-

 

 

 

576,300

 

 

 

-

 

Repurchase of Beneficial Unit

   Certificates

 

 

-

 

 

 

(268,575

)

 

 

(1,697,613

)

 

 

-

 

 

 

(1,697,613

)

 

 

-

 

Restricted units awarded

 

 

-

 

 

 

309,212

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Restricted units compensation

   expense

 

 

13,724

 

 

 

 

 

 

 

1,358,660

 

 

 

-

 

 

 

1,372,384

 

 

 

-

 

Unrealized loss on securities

 

 

(240,978

)

 

 

 

 

 

 

(23,856,840

)

 

 

-

 

 

 

(24,097,818

)

 

 

(24,097,818

)

Unrealized loss on bond

   purchase commitments

 

 

(19,561

)

 

 

 

 

 

 

(1,936,534

)

 

 

-

 

 

 

(1,956,095

)

 

 

(1,956,095

)

Reversal of net unrealized loss on

   securities with other-than-temporary

   impairment

 

 

5,254

 

 

 

 

 

 

 

520,192

 

 

 

 

 

 

 

525,446

 

 

 

525,446

 

Balance at September 30, 2018

 

$

195,059

 

 

 

60,520,261

 

 

$

288,304,200

 

 

$

-

 

 

$

288,499,259

 

 

$

50,095,363

 

 

 

 

General Partner

 

 

# of Units -

Restricted and

Unrestricted

 

 

Beneficial Unit

Certificate Holders

- Restricted and

Unrestricted

 

 

Non-controlling

Interest

 

 

Total

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Balance at December 31, 2016

 

$

102,536

 

 

 

60,224,538

 

 

$

280,026,669

 

 

$

4,663

 

 

$

280,133,868

 

 

$

38,895,484

 

Distribution to noncontrolling

   interest

 

-

 

 

-

 

 

-

 

 

 

(76,316

)

 

 

(76,316

)

 

 

 

 

Distributions paid or accrued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular distribution

 

 

(194,272

)

 

-

 

 

 

(19,232,974

)

 

-

 

 

 

(19,427,246

)

 

-

 

Distribution of Tier 2

   income (Note 3)

 

 

(1,120,625

)

 

-

 

 

 

(3,361,875

)

 

-

 

 

 

(4,482,500

)

 

-

 

Net income allocable to

   Partners

 

 

1,212,429

 

 

-

 

 

 

12,450,442

 

 

 

71,653

 

 

 

13,734,524

 

 

-

 

Repurchase of Beneficial Unit

   Certificates

 

-

 

 

 

(254,656

)

 

 

(1,466,222

)

 

-

 

 

 

(1,466,222

)

 

-

 

Restricted units awarded

 

-

 

 

 

283,046

 

 

-

 

 

-

 

 

-

 

 

-

 

Restricted units compensation

   expense

 

 

11,601

 

 

-

 

 

 

1,148,522

 

 

-

 

 

 

1,160,123

 

 

-

 

Unrealized gain on securities

 

 

310,204

 

 

-

 

 

 

30,710,164

 

 

-

 

 

 

31,020,368

 

 

 

31,020,368

 

Unrealized gain on bond

   purchase commitments

 

 

9,556

 

 

-

 

 

 

946,042

 

 

-

 

 

 

955,598

 

 

 

955,598

 

Balance at September 30, 2017

 

$

331,429

 

 

 

60,252,928

 

 

$

301,220,768

 

 

$                           -

 

 

$

301,552,197

 

 

$

70,871,450

 

 

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 Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

27,225,480

 

 

$

15,015,398

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

2,692,731

 

 

 

4,122,260

 

Provision for loan loss

 

 

-

 

 

 

(55,000

)

Gain on sale of real estate assets, net

 

 

(4,051,429

)

 

 

(7,152,512

)

Contingent interest realized on investing activities

 

 

(4,246,094

)

 

 

-

 

Impairment of securities

 

 

1,141,020

 

 

 

-

 

Impairment charge on real estate assets

 

 

150,000

 

 

 

-

 

Loss (gain) on derivatives, net of cash paid

 

 

(1,266,808

)

 

 

369,686

 

Restricted unit compensation expense

 

 

1,372,384

 

 

 

1,160,123

 

Bond premium/discount amortization

 

 

(50,839

)

 

 

(113,861

)

Amortization of deferred financing costs

 

 

1,304,879

 

 

 

1,880,236

 

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

 

 

(840,871

)

 

 

(374,000

)

Change in preferred return receivable from unconsolidated entities

 

 

(2,642,634

)

 

 

(2,176,131

)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Increase in interest receivable

 

 

(1,395,660

)

 

 

(336,710

)

Increase in other assets

 

 

(921,756

)

 

 

(231,498

)

Increase (decrease) in accounts payable and accrued expenses

 

 

(473,415

)

 

 

1,058,638

 

Net cash provided by operating activities

 

 

17,996,988

 

 

 

13,166,629

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(496,336

)

 

 

(290,042

)

Proceeds from sale of MF Properties

 

 

13,450,000

 

 

 

13,750,000

 

Proceeds from sale of land held for development

 

 

-

 

 

 

3,000,000

 

Acquisition of mortgage revenue bonds

 

 

(19,540,000

)

 

 

(72,056,000

)

Contributions to unconsolidated entities

 

 

(35,153,613

)

 

 

(9,569,227

)

Principal payments received on mortgage revenue bonds and contingent interest

 

 

46,001,893

 

 

 

4,844,328

 

Principal payments received on taxable mortgage revenue bonds

 

 

33,384

 

 

 

31,930

 

Principal payments received on PHC Certificates

 

 

226,714

 

 

 

1,610,302

 

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

 

 

(2,764,403

)

 

 

(168,693

)

Advances on property loans

 

 

(66,652

)

 

 

(2,376,370

)

Principal payments received on property loans

 

 

5,762,536

 

 

 

1,000,000

 

Net cash provided by (used in) investing activities

 

 

7,453,523

 

 

 

(60,223,772

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Distributions paid

 

 

(25,800,111

)

 

 

(25,339,844

)

Proceeds from the sale of redeemable Series A Preferred Units

 

 

-

 

 

 

36,131,000

 

Payment of offering costs related to the sale of redeemable Series A Preferred Units

 

 

-

 

 

 

(668

)

Acquisition of interest rate derivatives

 

 

-

 

 

 

(556,017

)

Repurchase of Beneficial Unit Certificates

 

 

(1,697,613

)

 

 

(1,466,222

)

Proceeds from the sale of Beneficial Unit Certificates

 

 

626,033

 

 

 

-

 

Payment of offering costs related to the sale of Beneficial Unit Certificates

 

 

(12,531

)

 

 

-

 

Payment of tax withholding related to restricted unit awards

 

 

-

 

 

 

(153,306

)

Distribution to noncontrolling interest

 

 

-

 

 

 

(76,316

)

Proceeds from debt financing

 

 

238,920,000

 

 

 

135,100,000

 

Principal payments on debt financing

 

 

(253,250,185

)

 

 

(36,093,863

)

Principal payments on mortgages payable

 

 

(7,963,815

)

 

 

(884,826

)

Principal borrowing on unsecured lines of credit

 

 

30,540,000

 

 

 

43,031,000

 

Principal payments on unsecured and secured lines of credit

 

 

(52,074,400

)

 

 

(90,560,000

)

Decrease in security deposit liability related to restricted cash

 

 

(23,243

)

 

 

(105,320

)

Debt financing and other deferred costs

 

 

(625,706

)

 

 

(1,469,234

)

Net cash provided by (used in) financing activities

 

 

(71,361,571

)

 

 

57,556,384

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

(45,911,060

)

 

 

10,499,241

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

71,583,329

 

 

 

27,506,220

 

Cash, cash equivalents and restricted cash at end of period

 

$

25,672,269

 

 

$

38,005,461

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

17,571,617

 

 

$

16,158,444

 

Cash paid during the period for income taxes

 

$

178,564

 

 

$

3,007,000

 

Supplemental disclosure of noncash investing and financing activities:

 

 

 

 

 

 

 

 

Distributions declared but not paid for Beneficial Unit Certificates and general partner

 

$

9,652,968

 

 

$

7,607,693

 

Distributions declared but not paid for Series A Preferred Units

 

$

708,750

 

 

$

517,500

 

Land contributed as investment in an unconsolidated entity

 

$

2,879,473

 

 

$

3,091,023

 

Capital expenditures financed through accounts payable

 

$

5,898

 

 

$

76,064

 

Deferred financing costs financed through accounts payable

 

$

12,836

 

 

$

1,887

 

 

 

6


 

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

 

 

 

September 30, 2018

 

 

September 30, 2017

 

Cash and cash equivalents

 

$

24,969,157

 

 

$

35,556,115

 

Restricted cash

 

 

703,112

 

 

 

2,449,346

 

Total cash, cash equivalents and restricted cash

 

$

25,672,269

 

 

$

38,005,461

 

 

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

 

 

7


 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2018

(UNAUDITED)

 

1. Basis of Presentation

General

America First Multifamily Investors, L.P. 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”) which have been issued to provide construction and/or permanent financing for affordable multifamily and student housing residential properties (collectively “Residential Properties”) and commercial properties. In addition, the Partnership may acquire interests in multifamily, student, and senior citizen residential properties (“MF Properties”) in order to position itself for future investments in MRBs issued to finance these properties or to operate the MF Properties until the “highest and best use” can be determined by management.

The general partner of the Partnership 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 partner interests to investors (“Unitholders”). The Partnership has also issued non-cumulative, non-voting and non-convertible Redeemable Series A Preferred Units which represent limited partnership interests in the Partnership.      

 

 

2. Summary of Significant Accounting Policies

Consolidation

The “Partnership,” as used herein, includes America First Multifamily Investors, L.P., its consolidated subsidiaries and consolidated variable interest entities (Note 5). All intercompany transactions are eliminated.  At September 30, 2018, the consolidated subsidiaries of the Partnership (the “Consolidated Subsidiaries”) consist of:

 

ATAX TEBS I, LLC, a special purpose entity owned and controlled by the Partnership, created to hold MRBs to facilitate the Tax Exempt Bond Securitization (“TEBS”) Financing (“M24 TEBS Financing”) with the Federal Home Loan Mortgage Corporation (“Freddie Mac”).

 

ATAX TEBS II, LLC, a special purpose entity owned and controlled by the Partnership, created to hold MRBs to facilitate the second TEBS Financing, (“M31 TEBS Financing”) with Freddie Mac.