Firm boosts portfolio to $825M.CharterMac, a leading investor in tax exempt bonds which finance multifamily housing nationwide, reached a portfolio value of over $825 million in 2000 by raising over $140 million dollars in equity and acquiring 38 bonds representing over $275 million. The 38 bonds financed 6,036 multifamily units. In the three years since the company was founded, CharterMac has financed over 16,500 units of affordable housing nationwide. The Company's portfolio has grown to include direct and indirect ownership interests in 100 tax-exempt multifamily bonds in 18 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). . "Our creation of new investment opportunities combined with recent legislation to increase the Low-Income Housing Tax Credit 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. Cap, as well as the Private Activity Bond Volume Cap, is a positive step toward addressing the affordable housing crisis that exists in this country," said Stuart Boesky, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CharterMac. "These factors also present CharterMac with a significant opportunity to increase the volume of its business as both the size of our market and our market share increase." "This year's success runs counter to the perception that the affordable housing finance industry does not experience tremendous growth," Boesky continues. CharterMac has garnered a reputation for developing new innovations in multifamily financing to benefit both developers and investors. Following are some accomplishments that CharterMac achieved in the year 2000: * Completed two private placements of Convertible Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. Preferred Shares to financial institutions for gross proceeds of $36.5 million for the year. * Refined the structure of its private-label Tender Option Program (TOP) allowing the company to lower its cost of capital by geographically aggregating collateral components of its bond portfolio. * Completed a merger with American Tax Exempt Bond Trust (ATEBT). * Acquired 38 bonds representing over $275 million to finance affordable housing units across the country, a 40% increase in the portfolio since year-end 1999. * Significantly outperformed the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. , NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on and S&P500 stock indexes. * Increased its distribution by 4% in 2000 bringing CharterMac's distribution 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 to $1.10, representing a 8.18% tax exempt yield on the December 29, 2000 $13.44 closing price and a 7.78% tax exempt yield on the CRA See Community Reinvestment Act. Preferred Shares, based upon the $14.13 offering price. |
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