America First Tax Exempt Investors, L.P. Announces Recent Investment Activity

Print
| Source: America First Multifamily Investors, L.P.

OMAHA, Neb., Aug. 22, 2013 (GLOBE NEWSWIRE) -- America First Tax Exempt Investors, L.P. (Nasdaq:ATAX) (the "Company" or "ATAX") announced that it acquired at par six tax-exempt bonds secured by three properties located in San Antonio, Texas on June 27, 2013. The bond purchases are as follows: a $5.8 million par value Series A and a $2.5 million par value Series B tax-exempt mortgage revenue bond secured by the Dublin Apartments, a 156 unit multifamily apartment complex; a $3.1 million par value Series A and a $2.3 million par value Series B tax-exempt mortgage revenue bonds secured by the Kingswood Apartments, a 129 unit multifamily apartment complex; and a $5.5 million par value Series A and $1.7 million par value Series B tax-exempt mortgage revenue bonds secured by the Waterford Apartments, a 133 unit multifamily apartment complex. The three Series A tax-exempt senior mortgage revenue bonds each carry an annual interest rate of 6.0% and mature on August 1, 2050. The three Series B tax-exempt subordinate mortgage revenue bonds each carry an annual cash interest rate of 9% plus allow for an additional 3% of interest calculated on each related property's available cash flow after debt service and mature on September 1, 2050.

In June 2013, the Company redeemed its interest in the Iona Lakes tax-exempt mortgage revenue bond receiving cash proceeds of approximately $21.9 million. This redemption resulted in the realization of approximately $6.5 million in contingent tax-exempt interest income and an approximately $4.6 million realized loss on a taxable property loan. The net tax-exempt gain of approximately $1.9 million was Tier 2 income and 25% was distributed to the General Partner in July 2013.

The Company filed its Form 10-Q for the quarter ended June 30, 2013 with the Securities and Exchange Commission ("SEC") on August 9, 2013. The quarterly consolidated financial statements filed with the SEC as well as the Company's second quarter supplemental financial report are both accessible via the Company's website located on the World Wide Web at www.ataxfund.com

The quarterly supplemental financial report presented on our website serves two primary purposes which align to how management monitors the performance of the business. Management utilizes a calculation called cash available for distribution ("CAD"), a non-GAAP measure, to determine the Partnership's ability to make distributions to unitholders. This supplemental report highlights changes to CAD in the most recent quarter and overall trends in CAD performance, information which is also disclosed in the Company's previously filed Form 10-Q.

The supplemental financial information also reflects the results of ATAX without consolidation of entities that own certain of the multi-family properties financed with tax-exempt mortgage revenue bonds held by ATAX. While these entities are reported by the Company as consolidated variable interest entities ("VIEs") under generally accepted accounting principles in its quarterly and annual financial reporting filed with the SEC, the Company does not actually hold an ownership interest in these VIEs. Since consolidation of these VIEs results in the elimination of ATAX's tax-exempt bonds on these properties for financial reporting purposes, management believes this supplemental financial information is helpful to understand the Company's results of operations from its principal operating segments of tax-exempt mortgage revenue bonds, other tax-exempt investments and owned MF Properties. 

About America First Tax Exempt Investors, L.P.

America First Tax Exempt Investors, L.P. was formed for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of federally tax-exempt mortgage revenue bonds which have been issued to provide construction and/or permanent financing of multifamily residential apartments. The Company is pursuing a business strategy of acquiring additional tax-exempt mortgage revenue bonds on a leveraged basis in order to: (i) increase the amount of tax-exempt interest available for distribution to its investors; (ii) reduce risk through asset diversification and interest rate hedging; and (iii) achieve economies of scale.  The Company seeks to achieve its investment growth strategy by investing in additional tax-exempt mortgage revenue bonds and other tax-exempt investments, taking advantage of attractive financing structures available in the tax-exempt securities market and entering into interest rate risk management instruments. America First Tax Exempt Investors, L.P. press releases are available on the World Wide Web at www.ataxfund.com. This website also includes the Company's financial highlights, stock information, public filings with the U.S. Securities and Exchange Commission, and corporate governance documents.

Safe Harbor Statement

Information contained in this press release contains "forward-looking statements" which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Company with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Disclosure Regarding Non-GAAP Measures

This document refers to certain financial measures that are identified as non-GAAP, including CAD. The Company believes that these non-GAAP measures are helpful to investors because it is the key information used by management to analyze the Company's operations. Net income is the GAAP measure most comparable to CAD. There is no generally accepted methodology for computing CAD, and the Company's computation of CAD may not be comparable to CAD reported by other companies. Although the Company considers CAD to be a useful measure of its operating performance, CAD is a non-GAAP measure that should not be considered as an alternative to net income or net cash flows from operating activities which are calculated in accordance with GAAP, or any other measures of financial performance or liquidity presented in accordance with GAAP.

Chad Daffer or Andy Grier
800/283-2357