American Mortgage Acceptance Company Increases Net Income Per Share For The Year 2002 By 19.3% Over 2001.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 25, 2003 American Mortgage Acceptance Company ("AMAC AMAC Adults Molested As Children AMAC Assistance to Mine-Affected Communities AMAC Aircraft Monitor And Control AMAC Approximate Message Authentication Code AMAC American Military Arms Corporation AMAC Asset Management Assistance Center " or the "Company") (AMEX AMEX See: American Stock Exchange :AMC (Advanced Mezzanine Card) See AdvancedTCA. ) today announced financial results for its fourth quarter and year ended December 31, 2002. "AMAC continued to demonstrate consistently strong financial performance in 2002, having increased our net income per share for the year ended December 31, 2002, by approximately 19.3% over the year ended December 31, 2001," commented Stuart Boesky, President and Chief Executive Officer of AMAC. "The expansion and execution of AMAC's business plan in 2002 resulted in an approximate 91.3% increase in our total assets over 2001. We are pleased that AMAC's success enabled the Company to increase its distribution per share two times during 2002, resulting in increased value to our shareholders." Financial Highlights For the three and twelve months ended December 31, 2002, AMAC had net income of approximately $2.5 million and $9.7 million, representing increases of approximately 61.0% and 86.2% compared to net income of approximately $1.5 million and $5.2 million for the three and twelve months ended December 31, 2001, respectively. Net income for the three and twelve months ended December 31, 2002, includes the effect of an agreement with our advisor, Related AMI Associates Inc., to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such the payment of approximately $71,000 in net fees and expense reimbursements, offset by higher than usual expenses related to the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real of investments that were never completed. On a per share basis (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), net income was $0.39 and $1.61 for the three and twelve months ended December 31, 2002, respectively, representing a decrease in net income per share of approximately 2.5% compared to the three months ended December 31, 2001, and an increase in net income per share of approximately 19.3% compared to the twelve months ended December 31, 2001. AMAC had total revenues of approximately $3.0 million and $10.5 million for the three and twelve months ended December 31, 2002, respectively. AMAC's revenues for the three and twelve months ended December 31, 2002, represent respective increases of approximately 73.1% and 83.5% as compared to the three and twelve months ended December 31, 2001. AMAC's present quarterly dividend on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis is $1.60 per share, representing an approximate 11.0% yield on the $14.60 per share closing price on February 24, 2003. Fourth Quarter Portfolio Investment Activity In October, AMAC guaranteed a construction loan of approximately $3.7 million for Village of Meadowbend Apartments, a proposed 138-unit affordable multifamily apartment complex located in Temple, Texas, in exchange for an up-front construction loan guarantee fee of 0.75%. After construction completion, AMAC will also receive a 0.50% construction loan administration fee, which will be paid on a monthly basis through the date the construction loan is replaced by permanent financing Permanent financing Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. . The construction loan guarantee will provide credit support for the period beginning with construction completion until property stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders . In November, AMAC purchased a $6.8 million GNMA GNMA abbr. Government National Mortgage Association Permanent Loan Certificate ("PLC") secured by Burlington Apartments, a 427-unit multifamily apartment complex located in St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minnesota. The PLC yields 5.90% to AMAC. The loan was funded under the HUD Hud (h  d), a pre-Qur'anic prophet of Islam. Hud unsuccessfully exhorted his South Arabian people, the Ad, to worship the One God. 223(f)
program and is fully amortizing, with a final maturity date of April
2031.Also in November, AMAC closed its first transaction under its recently introduced Acquisition/Rehabilitation Bridge Loan Program with Fleet National Bank, funding an acquisition bridge loan and a mezzanine loan A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). totaling approximately $6.3 million for Del Mar Del Mar is the name of several places in the United States of America:
The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. . In connection with the funding of the bridge loan, the Company borrowed approximately $4.6 million from its warehouse facility with Fleet Bank. These loans, which mature April 2004, carry interest rates equal to the 30-day London Inter-Bank Offer Rate ("LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). ") plus 462.5 basis points. Payments on these loans are interest only for the full eighteen-month term. AMAC received an origination fee A charge imposed by a lending institution or a bank for the service of processing a loan. For example, a bank might charge an individual who has applied for a student loan an origination fee of one percent for processing the application and granting the loan. of 1.5% upon funding of the loans. Also in November, AMAC funded an acquisition bridge loan and a mezzanine loan totaling approximately $6 million for Mountain Valley, a 312-unit multifamily apartment complex located in Dallas, Texas. AMAC will fund an additional $1.1 million during the rehabilitation rehabilitation: see physical therapy. stage of this property. In connection with the funding of the bridge loan, AMAC has borrowed approximately $4.2 million. These loans, which mature in November 2004, bear interest rates of LIBOR plus 475 basis points. Payments on the loans are interest only for the full 24-month term. AMAC has received a loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. fee of 1% of the amount of the loans. Also in November, AMAC fully funded a predevelopment bridge loan of approximately $1.4 million, secured by Reserve at Fox River Apartments, a 132-unit apartment complex development located in Yorkville, Illinois Yorkville is a city in Kendall County, Illinois, United States. The population was 6,189 at the 2000 census, and estimated to be 10,791 as of 2005. It is the county seat of Kendall CountyGR6. . AMAC has received a 1% fee for the bridge loan, which bears interest at a rate of 12% and matures in May 2003. In December, AMAC guaranteed a construction loan of approximately $3.2 million for Mapleview Apartments, a proposed 56-unit affordable multifamily apartment complex located in Saginaw, Michigan Saginaw is a city in the U.S. state of Michigan. As of the 2000 census, the city had a total population of 61,799. The 2006 population estimate was 57,523.[1] It is the county seat of Saginaw County[2] , in exchange for an up-front construction loan guarantee fee of 0.245%. After construction completion, AMAC will also receive a 0.625% construction loan administration fee, which will be paid on a monthly basis through the date the construction loan is replaced by permanent financing. The construction loan guarantee will provide credit support for the period beginning with construction completion until property stabilization. Subsequent Events In February 2003, AMAC received approximately $10 million in proceeds relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Stony Brook Stony Brook may refer to: Massachusetts:
Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the Stony Brook II first mortgage loan and mezzanine loan were approximately $8.3 million and approximately $651,000, respectively. The principal repayment of the first mortgage loan is being held as collateral for the Company's loan origination program with Fannie Mae Fannie Mae: see Federal National Mortgage Association. . AMAC's proceeds also included a prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. premium in the amount of approximately $331,000 and additional interest from the appreciation of the property in the amount of approximately $526,000. Also in February 2003, AMAC provided a predevelopment bridge loan of approximately $6.9 million and agreed to provide a $7.3 million rehabilitation loan, secured by Noble Tower Apartments, a 195-unit apartment complex in Oakland, California “Oakland” redirects here. For other uses, see Oakland (disambiguation). Oakland (IPA: /ˈoʊklənd/), founded in 1852, is the eighth-largest city in the U.S. . AMAC has received a 1% fee for the bridge loan, which bears interest at 12.0% and expires in July 2005. The Company will receive an additional 1% commitment fee for the rehabilitation loan, which bears interest at a rate of 9.75% and is expected to have a term of fifteen months. Asset Growth During 2002, AMAC's assets grew from approximately $102.0 million to approximately $195.1 million, an approximate 91.3% increase over year-end 2001. Over the twelve months ended December 31, 2002, AMAC originated or acquired five bridge, two construction, and one mezzanine loan representing approximately $17.9 million, acquired seven Ginnie Mae Ginnie Mae: see Federal National Mortgage Association. certificates totaling approximately $92.7 million, financed two transactions under the Fleet Acquisition/Rehabilitation Bridge Loan Program totaling approximately $13.4 million, and provided three forward commitments totaling approximately $5.1 million. The forward commitments are scheduled to expire during 2003. Capital Markets Activity The year 2002 was particularly significant for AMAC with respect to the capital markets, as the Company completed in February 2002 its first common equity offering since the Company listed on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. in July of 1999. In connection with the offering, AMAC sold 2.5 million common shares of beneficial interest at a price of $13.50 per share, raising net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $31 million after underwriters discount and offering expenses. The net proceeds from the offering were fully deployed within 90 days, demonstrating AMAC's ability to gain market share and expand the Company's asset base. Also during 2002, both Friedman, Billings, Ramsey & Co. and RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
Management Conference Call Management will conduct a conference call today to review the Company's fourth quarter and year-end financial results for the period ended December 31, 2002. The conference call is scheduled for 11:00 a.m. Eastern Time. Callers will be invited to ask questions. Investors, brokers, analysts, and shareholders wishing to participate should call (800) 479-9001. For interested individuals unable to join the conference call, a replay of the call will be available through Monday, March 3, 2003, at (888) 203-1112 (Passcode 211831) or on our website, http://www.americanmortgageco.com, through Tuesday, March 11, 2003. Supplemental Financial Information For more detailed financial information, please access the Supplemental Financial Package, which is available in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the AMAC website at http://www.americanmortgageco.com. About the Company AMAC is a real estate investment trust that specializes in multifamily housing finance. AMAC originates and acquires mezzanine loans, bridge loans, and government-insured first mortgages secured by multifamily housing properties throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . For more information, please visit our website at http://www.americanmortgageco.com or contact the Shareholder Services Department directly at (800) 831-4826.
AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
ASSETS
December 31,
----------------------
2002 2001
-------- --------
Investments in mortgage loans, net $ 22,384 $ 17,799
Investments in GNMA
certificates-available for sale 114,034 50,060
Investment in ARCap 20,240 20,246
Cash and cash equivalents 10,404 1,018
Notes receivable 25,997 11,373
Accrued interest receivable 1,170 570
Other assets 834 916
-------- --------
Total assets $195,063 $101,982
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Repurchase facilities payable $ 87,880 $ 43,610
Warehouse facility payable 8,788 --
Accrued interest payable 60 22
Accounts payable and accrued expenses 762 1,348
Due to Advisor and affiliates 690 331
Distributions payable 2,545 1,392
-------- --------
Total liabilities 100,725 46,703
-------- --------
Commitments and contingencies
Shareholders' equity:
Shares of beneficial interest;
$.10 par value; 25,000,000
shares authorized; 6,738,826
issued and 6,363,630 outstanding
and 4,213,826 issued and 3,838,630
outstanding in 2002 and 2001,
respectively 674 421
Treasury shares of beneficial interest;
375,196 shares (38) (38)
Additional paid-in capital 99,470 68,841
Distributions in excess of net income (14,471) (14,505)
Accumulated other comprehensive income 8,703 560
-------- --------
Total shareholders' equity 94,338 55,279
-------- --------
Total liabilities and shareholders' equity $195,063 $101,982
======== ========
AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands except per share amounts)
Three Months Ended Twelve Months Ended
12/31/2002 12/31/2001 12/31/2002 12/31/2001
---------- ---------- ---------- ----------
Revenues:
Interest income:
Mortgage loans $ 504 $ 517 $ 2,050 $ 2,773
GNMA certificates 1,767 940 5,769 2,294
Notes receivable 608 216 2,270 451
Temporary investments 10 26 50 73
Other income 116 37 319 107
------ ------ ------ ------
Total revenues 3,005 1,736 10,458 5,698
------ ------ ------ ------
Expenses:
Interest 359 307 1,228 1,406
General and administrative 536 460 1,991 1,254
Incentive Management Fee 235 -- 235 --
FNMA loan program -- -- 358 --
------ ------ ------ ------
Total expenses 1,130 767 3,812 2,660
------ ------ ------ ------
Other gain (loss):
Equity in earnings
of ARCap 600 612 2,400 2,400
Net gain (loss) on
repayment of
mortgage loans and GNMA
certificates -- (39) 614 (251)
------ ------ ------ ------
Total other gain (loss) 600 573 3,014 2,149
------ ------ ------ ------
Net income $ 2,475 $ 1,542 $ 9,660 $ 5,187
====== ====== ====== ======
Net income per share
(basic and diluted) $ 0.39 $ 0.40 $ 1.61 $ 1.35
====== ====== ====== ======
Weighted average
shares outstanding
(basic and diluted) 6,363,630 3,838,630 6,017,740 3,838,630
========= ========= ========= =========
Certain statements in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based. |
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