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CHAMPS REPORTS SECOND QUARTER RESULTS

 CHAMPS REPORTS SECOND QUARTER RESULTS
 ROCKVILLE, Md., July 24 /PRNewswire/ -- Capital Housing and


Mortgage Partners, Inc. (CHAMPS) (AMEX: CAP), a self-liquidating real estate investment trust, said today that cash flow for the three months ended June 30, 1992 was approximately $6.3 million ($1.26 per share) versus approximately $905,000 (18 cents per share) for the same period last year.
 Cash flow increased due to the disposition of two multifamily mortgages during the first six months of 1992 which resulted in net disposition proceeds of approximately $5.4 million ($1.08 per share).
 Cash flow from regular operations for the second quarter decreased due to a lower earnings base and decreased mortgage interest income as a result of the two mortgage dispositions.
 Regular operating cash flow for all of 1992 is expected to be approximately nine cents per share lower than 1991's total of 73 cents per share. This reduction is due to the mortgage dispositions and the shortfall in payments from the equity portion of the CHAMPS participating mortgage investment in the Montpelier Woods Apartments.
 Next year's regular operating cash flow is expected to be lower than this year's, due to dispositions during the first half of this year plus the anticipated disposition of the mortgage on the Montpelier Woods Apartments.
 The basis for paying shareholder dividends is cash flow from operations -- which is comprised of regular payments of both interest and principal from mortgage investments, cash flow from participating mortgage investments, amortization of deferred costs, and net proceeds from mortgage dispositions.
 The second quarter's two mortgage dispositions resulted in the receipt by CHAMPS of at least 100 percent of the face value of each mortgage. However, each disposition resulted in tax losses due to the write-off of unamortized acquisition fees and the payment of disposition fees.
 The disposition of the Oak Hills Village mortgage investment resulted in a net return of capital of 38.8 cents per share, distributed to shareholders with the second quarter dividend, paid June 30, 1992.
 As a result of the At The Lakes mortgage disposition, CHAMPS expects to distribute the net return of capital of approximately 69.5 cents per share, upon approval by the board of directors, with the June-August 1992 dividend.
 A third CHAMPS mortgage investment, Montpelier Woods, is in default. CHAMPS expects the default of the mortgage on Montpelier Woods to result in the receipt of net disposition proceeds from GNMA in late 1992 or early 1993 totaling approximately $5.5 million ($1.09 per share). Upon approval by the board of directors, CHAMPS will distribute proceeds to shareholders.
 In addition, the local general partners of the limited partnership that owns Montpelier Woods have stated that they are not able to fund the guaranteed payment to support the equity portion of the participating mortgage investment CHAMPS made in the Laurel, Md., multifamily property.
 The realization of the equity investment by CHAMPS in Montpelier Woods depends on a successful restructuring of the mortgage loan with HUD.
 CHAMPS is a self-liquidating real estate investment trust which invested in government insured mortgage loans, GNMA guaranteed mortgage-backed securities, and participating mortgage investments.
 Management estimates the current market value of the mortgages and other net assets of CHAMPS (net of related fees) as of June 30, 1992, the most recent valuation date, to be approximately $40.1Montpelier Woods) held for disposition, and cash totaling approximately 69.5 cents per share which was received from the At The Lakes disposition.
 Of the 10 mortgage investments owned by CHAMPS, two were purchased at an average of 83.4 percent discount to par and have effective interest rates of 9.28 percent and 9.72 percent. Seven were purchased at or near par, with effective interest rates ranging from 10.00 percent to 10.43 percent.
 One was a participating mortgage investment purchased at par, with an effective interest rate of 8.5 percent.
 CAPITAL HOUSING AND MORTGAGE PARTNERS, INC.
 (CHAMPS)
 (Unaudited)
 For the three months For the six months
 ended June 30, ended June 30,
 1992 1991 1992 1991
 Cash Flow
 Tax-basis income before
 losses on mortgage
 dispositions $521,696 $768,131 $1,138,242 $1,533,610
 Losses from mortgage
 dispositions (118,814)(D) -- (189,130)(B) --
 Return of capital from
 mortgage dispositions 5,585,407 -- 5,585,407(C) --
 Other cash flow 308,768 136,515 544,911 270,879
 Total cash flow $6,297,057 $904,646 $7,079,430 $1,804,489
 Tax-basis income
 before mortgage
 dispositions $0.10 $0.15 $0.23 $0.31
 Losses from mortgage
 dispositions (0.02) -- (0.04) --
 Return of capital
 from mortgage
 dispositions per share 1.12 -- 1.12 --
 Other cash flow per share 0.06 0.03 0.11 0.05
 Total cash flow
 per share $1.26 $0.18 $1.42 $0.36
 Dividends paid per
 share(A) $0.667(A) $0.303(A)
 Net Income
 Gross income $827,990 $857,324 $1,726,698 $1,763,598
 Income before mortgage
 dispositions $621,171 $670,379 $1,308,513 $1,390,039
 Losses from mortgage
 dispositions (118,814)(D) -- (362,762)(E) --
 Net income $502,357 $670,379 $945,751 $1,390,039
 Net income per share $0.10 $0.13 $0.19 $0.28
 Weighted average shares
 outstanding 4,981,752 4,981,752 4,981,752 4,981,752
 CAPITAL HOUSING AND MORTGAGE PARTNERS, INC.
 (CHAMPS)
 (Unaudited)
 As of June 30,
 1992 1991
 Investment in mortgages
 and limited partnerships,
 net:
 Carrying value $30,067,712 $41,978,628
 Mortgage loan held
 for disposition $5,596,623 --
 Total assets $40,518,514 $43,406,400
 (A) For the five-month period ended May 31, 1992 and 1991, respectively. 1992 dividend includes $0.388 per share as a result of the disposition of the Oak Hills Village mortgage investment.
 (B) Resulting from two mortgage dispositions (At the Lakes and Oak Hills Village).
 (C) Proceeds from two mortgage dispositions (At the Lakes and Oak Hills Village).
 (D) Resulting from recognition of At the Lakes mortgage disposition.
 (E) Resulting from recognition of three mortgage dispositions under GAAP.
 -0- 7/24/92
 /CONTACT: James T. Pastore, 301-231-0323, or Susan Bressler- Railey, 301-468-3120, both for Capital Housing and Mortgage Partners, Inc./
 (CAP) CO: Capital Housing and Mortgage Partners, Inc. ST: Maryland IN: SU: ERN


IH -- DC006 -- 3000 07/24/92 11:33 EDT
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