Charter Municipal Mortgage Acceptance Company Reports Fourth Quarter and Year-End Financial Results; 9.6% Increase in Cash Available for Distribution Per Common Share.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 27, 2003 Charter Municipal Mortgage Acceptance Company ("CharterMac" or the "Company") (AMEX AMEX See: American Stock Exchange :CHC CHC Chicago Cubs CHC Community Health Center CHC Chestnut Hill College (Philadelphia, Pennsylvania) CHC Congressional Hispanic Caucus CHC Community Health Council (UK National Health Service) ) today announced financial results for its fourth quarter and year ended December December: see month. 31, 2002. "CharterMac's financial performance remained extremely solid in 2002, having grown our Cash Available for Distribution ("CAD CAD: see computer-aided design. (Computer-Aided Design) Using computers to design products. CAD systems are high-speed workstations or desktop computers with CAD software. ") per share applicable to shareholders by approximately 9.6% over 2001," commented Stuart Boesky, President and Chief Executive Officer of CharterMac. "2002 was a year in which the fundamentals of the affordable multifamily market remained strong, our core business thrived, and our portfolio of revenue bonds continued to perform well. In addition to providing over $1.2 billion of financing for multifamily housing, we continued to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our revenue sources through the participation in a credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing transaction. We were extremely pleased to have concluded the year with the announcement of the proposed acquisition of Related Capital Company, which will enable us to internalize internalize To send a customer order from a brokerage firm to the firm's own specialist or market maker. Internalizing an order allows a broker to share in the profit (spread between the bid and ask) of executing the order. management and will create one of the largest multifamily finance platforms in the nation." Financial Highlights For the three and twelve months ended December 31, 2002, CharterMac's CAD applicable to shareholders, a measure of dividend paying capability, was approximately $16.4 million and $63.5 million, respectively. CharterMac's 2002 CAD results represent increases of approximately 27.1% and 51.9%, as compared with approximately $12.9 million and $41.8 million for the three and twelve months ended December 31, 2001, respectively. On a 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. per share basis, CAD applicable to shareholders was $0.37 and $1.49 for the three and twelve months ended December 31, 2002, respectively, representing an increase of approximately 9.6% compared to the twelve months ended December 31, 2001. For the three and twelve months ended December 31, 2002, CharterMac had net income applicable to shareholders of approximately $13.3 million and $56.3 million, respectively. CharterMac's net income applicable to shareholders for the three and twelve months ended December 31, 2002, represent increases of approximately 35.6% and 60.8%, as compared to net income applicable to shareholders of approximately $9.8 million and $35.0 million for the three and twelve months ended December 31, 2001, respectively. On a diluted per share basis, net income applicable to shareholders was $0.30 and $1.32 for the three and twelve months ended December 31, 2002, representing increases of approximately 7.1% and 15.8% compared to the three and twelve months ended December 31, 2001, respectively. For the three and twelve months ended December 31, 2002, CharterMac had total revenues of approximately $31.5 million and $116.4 million. CharterMac's total revenues for the three and twelve months ended December 31, 2002, represent increases of approximately 50.1% and 56.0% compared to total revenues of approximately $21.0 million and $74.6 million for the three and twelve months ended December 31, 2001, respectively. Distribution Highlights CharterMac increased its quarterly distribution twice during 2002, resulting in a total annual distribution increase of approximately 6.7%. CharterMac'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 $1.28 per share, which represents a 7.26% yield based upon the $17.62 per share closing price on February February: see month. 26, 2003. For the year ended December 31, 2002, CharterMac estimates that approximately 96% of its distributions to common shareholders were federally tax-exempt tax-ex·empt adj. 1. Not subject to taxation, as the capital or income of a philanthropic organization. 2. Producing interest that is exempt from income tax: tax-exempt bonds. n. , resulting in a taxable equivalent yield Taxable equivalent yield The return from a higher-paying but taxable investment that would equal the return from a tax-free investment. This depends on the investor's tax bracket. of approximately 11.65% for a shareholder in a 38.6% tax bracket Tax Bracket The rate at which an individual is taxed due to a particular income level. Notes: Each income class is taxed at a different level. Generally, the more you make the more you are taxed. . Revenue Bond Investments During the three months ended December 31, 2002, CharterMac acquired 23 tax-exempt revenue bonds and three taxable revenue bonds. In addition to the revenue bonds, CharterMac originated three forward funding commitments and funded three revenue bonds previously acquired for financings totaling approximately $224 million in bond par value. These financings were secured by 19 affordable multifamily housing properties aggregating 3,783 units. For the twelve months ended December 31, 2002, CharterMac originated, acquired, or financed revenue bonds aggregating approximately $503 million in bond par value, secured by over 9,500 units of multifamily housing, representing an approximate 70% increase over the face amount of the revenue bonds acquired in 2001. As of December 31, 2002, CharterMac had direct and indirect ownership interests in 210 taxable and tax-exempt first mortgage revenue bonds and tax-exempt subordinate revenue bonds with a fair value of approximately $1.6 billion, secured by mortgages on over 32,500 multifamily housing units in 25 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . The tax-exempt first mortgage revenue bonds had a weighted average interest rate of 7.17%, a weighted average maturity of 33 years, and a weighted average pre-payment lockout lockout, intentional closing up of a company, factory, or shop by an employer to prevent employees from working during a strike or labor dispute. The term lockout of 12 years. PW Funding Inc. For the three months ended December 31, 2002, PW Funding Inc. ("PWF PWF Pacific Whale Foundation (Maui, Hawaii) PWF Public Workstation Facility PWF Polarimetric Whitening Filter PWF Pro Wrestling Fan PWF Preserved Wood Foundation PWF Peter Westbrook Foundation PWF Personnel Working File PWF Power Weight Filter "), CharterMac's subsidiary, originated approximately $260.5 million of loans on behalf of Fannie Mae Fannie Mae: see Federal National Mortgage Association. , Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. , and the Federal Housing Authority, as well as banks and insurance companies. Total loan originations 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. for the twelve months ended December 31, 2002, were approximately $698.9 million. As of December 31, 2002, PWF serviced a loan portfolio of $3.2 billion. Commenting on PWF's 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 activity, Mr. Boesky stated: "PWF's first year as a subsidiary of CharterMac was very successful. A highlight of PWF's origination volume in 2002 was that 81% of PWF's originations represented new loans as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to portfolio refinancings. This added approximately $564 million of new servicing to its loan portfolio. Another bright spot in PWF's originations for 2002 was its increased originations in affordable multifamily housing, a fact we attribute (1) In relational database management, a field within a record. (2) In object technology, a single element of data. See instance attribute and static attribute. to the synergies that are continuing to be realized between PWF, CharterMac, and Related Capital." Guaranteed Tax Credit Transaction In July July: see month. 2002, CharterMac, taking advantage of the Company's industry expertise, announced that it had participated in a transaction to guarantee tax benefits to an investor in a partnership designed to generate low-income housing tax credits The Low Income Housing Tax Credit (LIHTC; often pronounced "lye-tech") is a tax credit created under the Tax Reform Act of 1986 (TRA86) that gives incentives for the utilization of private equity in the development of affordable housing aimed at low-income Americans. ("LIHTC LIHTC Low-Income Housing Tax Credit (program) "). As part of the transaction, CharterMac agreed to back an "AA-" rated financial institution's obligation to guarantee an agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy internal rate of return ("IRR IRR In currencies, this is the abbreviation for the Iranian Rial. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ") to the investor in Related Capital Guaranteed Corporate Partners II, L.P. The transaction was structured as two separate guarantees, one primarily guaranteeing the IRR through the lease-up phase of the properties and the other guaranteeing the IRR through the operating phase of the properties. This transaction, which was immediately accretive to CAD, was another example of CharterMac's ability to diversify its revenue sources through creative and well-structured transactions. Capital Markets Highlights "During 2002, CharterMac continued to demonstrate a consistent ability to access the capital markets at favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. pricing, accessing the equity capital markets four times during the course of the year and issuing over $178.6 million in common and preferred equity to retail and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. ," said Stuart Rothstein, Chief Financial Officer of CharterMac. In addition, CharterMac issued approximately $130 million of debt in 2002 through both its Private Label Tender Option Program and through the Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. P-FLOATs(SM)/RITES(SM) Program. CharterMac continued to benefit from the low interest rate environment and enjoyed an average annual cost of debt for 2002 of approximately 2.4% before the effects of hedging. Acquisition of Related Capital Company In December 2002, nearly a year after forming a Special Committee of the Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. to explore strategic alternatives for managing the Company, CharterMac announced that it had entered into an agreement to acquire 100% of the ownership interests of Related Capital Company ("RCC RCC - An extensible language. ") and substantially all of the businesses operated by RCC, one of the nation's leading full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. financial services 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. providers for the multifamily housing industry. The acquisition will enable CharterMac to terminate Terminate (terminat.exe) was a shareware modem terminal and host program for MS-DOS and compatible operating systems developed from the early to the late 1990s by the Dane Bo Bendtsen. The last release (5. its outside management agreement with Related Charter, LP (the "Manager"), an affiliate of RCC, and to internalize management. CharterMac's Board of Trustees and management believe that the acquisition and the internalization Internalization A decision by a brokerage to fill an order with the firm's own inventory of stock. Notes: When a brokerage receives an order they have numerous choices as to how it should be filled. of management will enhance shareholder value through: (i) the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of the Company's revenue sources; (ii) the elimination of perceived per·ceive tr.v. per·ceived, per·ceiv·ing, per·ceives 1. To become aware of directly through any of the senses, especially sight or hearing. 2. To achieve understanding of; apprehend. conflicts of interest; (iii) the expansion of access to capital; (iv) the creation of a more efficient cost structure for future growth; and (v) the further alignment Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
The acquisition, together with other related proposals to amend CharterMac's trust agreement and its share option plan in connection with the acquisition, are subject to approval by CharterMac's common shareholders, as well as other customary closing conditions. The complete terms of the proposed acquisition and an opinion from Dresdner Kleinwort Dresdner Kleinwort (DKIB) is the investment bank of Dresdner Bank AG, part of Allianz since July 2001. Headquartered in London and Frankfurt and with an international network including offices in the financial centres of New York and Tokyo, Dresdner Kleinwort provides a wide range Wasserstein Was·ser·stein , Wendy Born 1950. American playwright noted for her comedies, such as The Heidi Chronicles (1988), for which she won a Pulitzer Prize. , the Special Committee's financial advisor, will be set forth in the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. to be mailed to shareholders following any required regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. review. The transaction will be voted upon by CharterMac shareholders at a special shareholder meeting. Management Conference Call Management will conduct a conference call today to review the Company's fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 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) 967-7185. For interested individuals unable to join the conference call, a replay of the call will be available through Thursday Thursday: see week. , March 6, 2003, at (888) 203-1112 (Passcode 613323) or on our website, http://www.chartermac.com, through Thursday, March 13, 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 CharterMac website at www.chartermac.com. About the Company CharterMac is one of the nation's leading full-service multifamily finance companies, providing capital solutions to developers and owners of multifamily rental housing throughout the country. CharterMac's current revenue bond portfolio includes direct and indirect interests in revenue bonds secured by approximately 32,500 units of multifamily housing in 25 states and the District of Columbia. For more information, please visit CharterMac's website at http://www.chartermac.com or contact the Shareholder Services Department directly at (800) 831-4826.
CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31,
2002 2001
ASSETS
Revenue Bonds-at fair value $1,579,990 $1,137,715
Investment in ARCap 19,054 18,950
Guaranteed investment contracts 19,642 18,406
Temporary investments 5,400 --
Mortgage servicing rights 35,595 33,708
Cash and cash equivalents 55,227 105,364
Cash and cash equivalents-restricted 5,257 4,670
Interest receivable, net 9,020 6,458
Promissory notes and mortgages receivable 53,278 45,022
Deferred costs, net 46,277 34,666
Goodwill, net 4,793 9,842
Other intangible assets, net 11,316 3,154
Other assets 6,003 3,104
Total assets $1,850,852 $1,421,059
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Financing arrangements $671,659 $541,796
Notes payable 68,556 56,586
Interest rate derivatives 5,504 2,958
Accounts payable, accrued expenses
and other liabilities 12,737 13,820
Deferred Income 6,582 2,870
Due to Manager and Affiliates 4,126 2,266
Due to FNMA 19,642 18,406
Distributions payable to
preferred shareholders of subsidiary 4,724 3,693
Deferred tax liability 10,790 10,251
Distributions payable to convertible
CRA shareholders 1,125 565
Distributions payable to
common shareholders 13,171 10,448
Total liabilities 818,616 663,659
Preferred shares of subsidiary
(subject to mandatory repurchase) 273,500 218,500
Minority interest in
consolidated subsidiary 4,822 3,652
Commitments and contingencies
Shareholders' equity:
Beneficial owners' equity - Convertible CRA
shareholders (3,835,002 and 1,882,364
shares, issued and outstanding in 2002
and 2001 respectively) 58,198 25,522
Beneficial owner's equity-manager 1,125 1,069
Beneficial owners' equity-other common
shareholders (100,000,000 shares
authorized; 41,168,618 issued and
41,160,218 outstanding and 34,834,308
issued and 34,825,908 outstanding in
2002 and 2001, respectively) 604,860 511,456
Treasury shares of beneficial
interest (8,400 shares) (103) (103)
Accumulated other comprehensive
income (loss) 89,834 (2,696)
Total shareholders' equity 753,914 535,248
Total liabilities and
shareholders' equity $1,850,852 $1,421,059
CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands except per share amounts)
Three Months Ended Twelve Months Ended
12/31/02 12/31/01 12/31/02 12/31/01
Revenues:
Interest income:
Revenue Bonds $ 24,917 $ 19,980 $ 92,681 $ 71,500
Temporary
investments 195 393 1,293 1,279
Promissory notes 220 525 709 1,184
Mortgage banking
fees 2,066 -- 5,710 --
Mortgage
servicing fees 2,059 -- 7,971 --
Other income 2,009 71 8,049 662
Total revenues 31,466 20,969 116,413 74,625
Expenses:
Interest expense 4,968 3,327 15,823 13,641
Recurring fees
relating to the
Private Label Tender
Option Program 892 733 3,181 2,491
Bond servicing 1,011 699 3,530 2,454
General and
administrative 5,258 759 20,976 2,755
Amortization 2,867 243 8,891 865
Loss on impairment of
assets -- -- 532 400
Total expenses 14,996 5,761 52,933 22,606
Income before gain
(loss) on repayment
of Revenue Bonds,
sale of loans and
equity in earnings of
ARCap 16,470 15,208 63,480 52,019
Equity in earnings
of ARCap 554 456 2,219 456
Gain on sales of
loans 2,812 -- 10,683 --
Gain (loss) on repayment
of Revenue Bonds (94) (1,013) 3,885 (912)
Income before allocation
to preferred
shareholders of
subsidiary and
minority interest 19,742 14,651 80,267 51,563
Income allocated to
minority interest (119) -- (496) --
Income allocated
to preferred
shareholders of
subsidiary (4,725) (3,693) (17,266) (12,578)
Income before provision
for income taxes 14,898 10,958 62,505 38,985
Provision for
income taxes (302) -- (1,284) --
Net income $ 14,596 $ 10,958 $ 61,221 $ 38,985
Allocation of net
income to:
Special
distribution to
Manager $ 1,250 $ 1,028 $ 4,872 $ 3,621
Manager $ 13 $ 99 $ 56 $ 354
Common
shareholders $ 12,256 $ 8,995 $ 52,911 $ 32,559
Convertible CRA
Shareholders 1,077 835 3,382 2,452
Total for
shareholders $ 13,333 $ 9,830 $ 56,293 $ 35,011
Net income per
share:
Basic $ 0.30 $ 0.28 $ 1.32 $ 1.14
Diluted $ 0.30 $ 0.28 $ 1.32 $ 1.14
Weighted average
shares outstanding:
Basic 44,676,079 35,113,134 42,697,195 30,782,161
Diluted 44,752,197 35,174,365 42,768,139 30,837,340
CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(Dollars in thousands except per share amounts)
Three Months Ended Twelve Ended Months
12/31/02 12/31/01 12/31/02 12/31/01
Sources of cash
Revenue bonds $ 24,917 $ 19,980 $ 92,681 $ 71,500
Temporary
investments 195 393 1,293 1,279
Promissory
notes 220 525 709 1,184
Equity in
earnings of
ARCap 554 456 2,219 456
Other 2,009 71 8,049 662
PWF Gains on
Sale of Loans 214 -- 1,596 --
Mortgage
servicing
fees 2,059 -- 7,971 --
Mortgage
banking fees 2,066 -- 5,710 --
CAD
Adjustments 2,035 1,677 8,436 4,299
Total sources
of cash 34,271 23,102 128,664 79,380
Uses of cash
Total expenses 14,996 5,761 52,933 22,606
Income
allocated to
Preferred
Shareholders
of
Subsidiaries 4,725 3,693 17,266 12,578
CAD tax
adjustment -- -- 558 --
Less:
Amortization
included in
expenses (2,867) (243) (8,891) (865)
Non-cash
compensation (176) -- (674) --
Loss on
impairment of
revenue bonds -- -- (532) (400)
Compensation
cost - stock
options (12) -- (383) --
Total Uses of
Cash 16,666 9,211 60,277 33,919
Cash Available
for
Distribution
(A) 17,605 13,891 68,387 45,461
Less:
Distributions
to Manager (1,250) (1,028) (4,872) (3,621)
Cash Available
for
Distributions
to
Common and CRA
Shareholders
(CAD) $ 16,355 $ 12,863 $ 63,515 $ 41,840
Weighted
Average
Shares
(Basic) 44,676,079 35,113,134 42,697,195 30,782,161
Weighted
Average Shares
(Diluted) 44,752,197 35,174,365 42,768,139 30,837,340
CAD per Share
(Basic) $ 0.37 $ 0.37 $ 1.49 $ 1.36
CAD per Share
(Diluted) $ 0.37 $ 0.37 $ 1.49 $ 1.36
Reconciliation of Net Income to Cash Available for Distribution (CAD)
Three Months Ended Twelve Ended Months
12/31/02 12/31/01 12/31/02 12/31/01
Net Income
allocated to
Shareholders $ 13,333 $ 9,830 $ 56,293 $ 35,011
Revenues -
Amortization 866 419 2,413 1,488
LIHTC guarantee
fee (684) -- 2,279 --
Construction
servicing fee 698 1,146 1,714 1,671
Forward
commitment
fees 900 -- 900 --
Straight line
yield 220 265 1,191 971
Expenses -
Amortization 2,867 242 8,891 865
Loss on
impairment of
revenue bond -- -- 532 400
Gain on sales
of loans (2,504) 1,013 (12,972) 877
Tax adjustment 302 -- 726 --
Minority
interest 119 -- 496 --
Other, net 240 (52) 1,052 522
CAD to Common
and CRA
Shareholders $ 16,355 $ 12,863 $ 63,515 $ 41,805
(A) CAD represents net income (computed in accordance with
generally accepted accounting principles ("GAAP")), excluding gains
and losses or sales of loans or repayment of revenue bonds, impairment
losses and the effect of straight line revenue recognition of interest
income on revenue bonds with fixed changes in interest rates, plus
depreciation and amortization, plus cash fees received but deferred in
accordance with GAAP. Fees recognized for CAD but deferred for GAAP
purposes are generally earned over a period of time in connection with
certain of our product lines, such as credit enhancement and yield
guarantees.
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. CAD does not represent net cash provided by
operating activities determined in accordance with GAAP and should not
be considered as an alternative to net income (determined in
accordance with GAAP) as an indication of the Company's performance,
as an alternative to net cash provided from operating activities
(determined in accordance with GAAP) as a measure of our liquidity, or
as an indication of our ability to make cash distributions.
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 "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions 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 factors 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. CharterMac expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in CharterMac's expectations with regard thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or change in events, conditions, or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statement is based. With respect to the proposed transaction described above under the heading "Acquisition of Related Capital Company", you should review the risk factors contained in CharterMac's public filings and in the proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other that will be filed and distributed to shareholders in connection with the approval of the proposed acquisition for a discussion of the risks related to the proposed acquisition and the ownership of CharterMac's common shares. Important additional information will be filed with the SEC CharterMac will be filing with the SEC and mailing to shareholders a proxy statement in connection with the proposed transaction described above under the heading "Acquisition of Related Capital Company". Investors and security holders are urged to read the proxy statement because it will contain important information. The proxy statement and other documents filed by CharterMac with the SEC may be obtained when they become available free of charge at the SEC's website (http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ), or from CharterMac by contacting the Shareholder Services Department directly at (800) 831-4826. CharterMac, and its trustees and officers, and Related Capital Company, and its principals and officers, may be deemed to be "participants" in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies from CharterMac shareholders in connection with the acquisition. These potential participants have interests in the acquisition, some of which could differ from those of CharterMac's shareholders generally. Information about the executive trustees and officers of CharterMac and Related Capital Company, including such individuals' ownership of CharterMac, is contained in CharterMac's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2001, and in the proxy statement for CharterMac's 2002 annual meeting of shareholders, each of which is available at the SEC website listed above. Investors and security holders may obtain additional information regarding the interests of such potential participants by reading the proxy statement when it becomes available. |
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