EX-99 5 e992.htm

Exhibit 99.2 Pro Forma Financial Statements

AMERICAN HOUSING INCOME TRUST, INC.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of March 31, 2015


The Single Family



Historical

Residences in




Amounts

Tucson, AZ

Pro Forma


(A)

(B)

Amounts














Assets





Investment in real estate





Land
$
4,500,484
$
173,573
$
4,674,057
Buildings and improvements
                    2,124,117

                    1,562,161

                    3,686,278


6,624,601

1,735,734

8,360,335
Less: accumulated depreciation
                    (138,666)

                              -

                    (138,666)
Investment in real estate, net
6,485,935

1,735,734

8,221,669
Cash and cash equivalents
240,330

-

240,330
Accounts receivable
3,200

-

3,200
Notes receivable
120,000

-

120,000
Due from related party
8,321

-

8,321
Other assets
                  156,927

                               -

                   156,927
Total Assets
$
                    7,014,713
$
                    1,735,734

                    8,750,447







Liabilities and Equity












Liabilities:





Accounts payable and accrued liabilities
$
51,902

-
$
51,902
Due to related parties
37,106

-

37,106
Unearned rent received
3,500

-

3,500
Notes payable
                    2,936,325

                    1,215,734

                    4,152,059
Total Liabilities
                    3,028,833

                    1,215,734

                    4,224,567







Equity:





Common Stock
-

-

-
Additional paid-in capital (Members'






contributions)
10,017,511

520,000

10,537,511
Accumulated Deficit
                    (6,016,553)

                                      -

                    (6,016,553)
Total American Realty Partners, LLC






Members' Equity
4,000,958

520,000

4,520,958
Non-controlling interest
                       (15,078)

                                     -

                      (15,078)
Total Members' Equity
                    3,985,880

                        520,000

                    4,505,880







Total Liabilities and Stockholders' Equity
$
                    7,014,713
$
                      1,735,734
$
                  8,750,447

See notes to unaudited pro forma condensed consolidated balance sheet

Page 1

THE SINGLE FAMILY RESIDENCES IN TUCSON, ARIZONA
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

A. Represents the unaudited historical consolidated balance sheet of the Company as of March 31, 2015, as contained in the consolidated financial statements filed in the Company's Form 8-K/A filed on July 7, 2015.

B. Represents the pro forma adjustments to reflect the acquisition of nine single family residences (the "Homes") located in Tucson, Arizona as if the acquisition had occurred on March 31, 2015.

The sources of funding for the acquisition of the Homes were as follows:

Assumption of promissory notes(1)
$
1,215,734
Issuance of 297,143 UPREIT Units
520,000



Total consideration
$
1,735,734

(1) The principal balance outstanding at the time of assumption was $1,215,734, which approximates fair value. The table below summarizes the interest rates and maturity dates of the promissory notes assumed:


Principal Amount
Interest (per annum)
Maturity Dates
$
24,013
5%
April 1, 2018

78,500
4.875%
September 1, 2033

50,196
5.10%
January 13, 2040

95,292
4.125%
July 1, 2029

46,113
3.625%
HELOC

143,552
5.625%
October 1, 2035

86,411
4.5%
November 1, 2026

113,713
5.25%
December 1, 2034

16,685
4.375%
January 1, 2022

277,856
5.25%
July 1, 2041

34,813
8.25%
HELOC

134,079
4.125%
June 1, 2043

114,511
4.125%
June 1, 2043
$
1,215,734


The preliminary allocation of the purchase price was as follows:

Land
$
173,573
Buildings and improvements
1,562,161



Total
$
1,735,734

Page 2

AMERICAN HOUSING INCOME TRUST, INC.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Three Months Ended March 31, 2015


The Single Family








Residences in






Historical Amounts

Tucson, AZ

Pro Forma

Pro Forma


(A)

(B)

Adjustments

Amounts









Revenues:







Rental revenue
$
87,159
$
32,730
$
-
$
119,889
Interest income
2,402

-
-
2,402
Other Income
                 500

                 -

                 -

                 500
Total revenue
90,061

32,730


-
122,791









Expenses:







Acquisition expense
325,000

-
-
325,000
Depreciation
19,268

-
14,464(E)

33,732
General and administrative
498,106

11,756


-
509,862
Interest expense
            50,866

                               -

                   18,251(F)

                 69,117
Total expenses
          893,240

                             11,756

                         32,715

               937,711









Net loss
(803,179)

20,974

(32,715)

(814,920)
Less: net loss attributable to







non-controlling interest
14,849

-

-

14,849
Net income (loss) attributable to








American Realty Partners, LLC
$
          (778,330)
$
                              20,974
$
                     (32,715)
$
          (800,071)

See notes to unaudited pro forma condensed consolidated statements of operations

Page 3

AMERICAN HOUSING INCOME TRUST, INC.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Year Ended December 31, 2014


The Single Family








Residences in






Historical Amounts

Tucson, AZ

Pro Forma

Pro Forma


(C)

(D)

Adjustments

Amounts









Revenues:







Rental revenue
$
268,620
$
126,156
$
-
$
394,776
Interest income
22,338

-
-
22,338
Other Income
          38,244

              -
              -
          38,244
Total revenue
329,202

126,156

-
455,358









Expenses:







Depreciation
74,670

-
57,858(E)

132,528
General and administrative
1,533,869

32,656

-
1,566,525
Interest expense
          201,765

               -
          52,886(F)

          254,651
Total expenses
           1,810,304

          32,656

          110,744

                 1,953,704









Net loss
$
          (1,481,102)
$
                93,500
$
              (110,744)
$
          (1,498,346)

See notes to unaudited pro forma condensed consolidated statements of operations

Page 4

THE SINGLE FAMILY RESIDENCES IN TUCSON, ARIZONA
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

A. Represents historical income from operations included in the consolidated statement of operations of the Company for the three months ended March 31, 2015, as contained in the consolidated financial statements filed in the Company's Form 8-K/A filed on July 7, 2015.

B. Represents the historical revenue and certain expenses of the nine single family residences (the "Homes") located in Tucson, Arizona for the three month period ended March 31, 2015.

C. Represents historical income from operations included in the consolidated statement of operations of the Company for the year ended December 31, 2014, as contained in the consolidated financial statements filed in the Company's Form 8-K/A filed on July 7, 2015.

D. Represents the historical revenue and certain expenses of Homes located in Tucson, Arizona for the year ended December 31, 2014.

E. Represents depreciation based on the preliminary purchase price allocations which are attributable as follows:




Three months




Ended

Year ended

Estimated

March 31,

December 31,

useful life

2015

2014






Buildings and improvements
27 years
$
14,464
$
57,858

F. Represent interest expense on borrowings of $1,215,734 assumed in connection with the acquisition of the Homes located in Tucson, Arizona.

Page 5