AIM 86 Reports Third Quarter Net Earnings Of Three Cents Per Unit
ROCKVILLE, Md., Nov. 7 /PRNewswire/ --
American Insured Mortgage Investors
L.P.-Series 86 (AIM 86) , a liquidating partnership that holds investments in
federally insured multifamily mortgages, reported net earnings for the quarter
ended September 30, 2003 of approximately $271,000 (three cents per unit)
compared to approximately $480,000 (five cents per unit) for the quarter ended
September 30, 2002.
For the nine months ended September 30, 2003, AIM 86 reported net earnings of
approximately $1.1 million (11 cents per unit) compared to approximately $1.6
million (16 cents per unit) for the first nine months of 2002.
The decrease in net earnings for the three and nine months ended September 30,
2003, as compared to the same periods in 2002, is primarily due to a decrease in
mortgage investment income. Mortgage investment income decreased primarily due
to the reduction in the mortgage base. The mortgage base decreased due to seven
mortgage dispositions since September 2002 with an aggregate principal balance
of approximately $14.2 million, representing an approximate 45% decrease in the
total mortgage portfolio.
As of September 30, 2003, AIM 86 had invested in four fully federally insured
mortgages with an aggregate amortized cost of approximately $17.1 million, an
aggregate face value of approximately $16.9 million and an aggregate fair value
of approximately $16.9 million. In late October 2003, AIM 86 received net
proceeds of approximately $4.0 million from the prepayment of the mortgage on
Colony Square Apartments. The Partnership expects to announce a distribution
related to the prepayment of this mortgage in November 2003. As of November 1,
2003, the remaining three mortgages are current with respect to the payment of
principal and interest.
As AIM 86 continues to liquidate its mortgage investments and investors receive
distributions of return of capital and taxable gains, investors should expect a
reduction in earnings and distributions due to the decreasing mortgage base.
Early prepayment of some or all the mortgages, or a sale of some or all of the
mortgages by the Partnership, may effect an early termination and dissolution of
AIM 86 before the stated termination date of December 31, 2020. Upon the
termination and liquidation of the Partnership, distributions to unitholders
will be made in accordance with the terms of its Partnership Agreement, as
amended, which is not based on GAAP. As a result, it is likely that the amounts
that unitholders receive upon termination and liquidation of AIM 86 will be
substantially lower than the amounts reflected in the limited partners' equity
account in the Partnership's GAAP financial statements.
AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86
STATEMENTS OF INCOME
(Unaudited)
For the three For the nine
months ended months ended
September 30, September 30,
2003 2002 2003 2002
Income:
Mortgage investment
income $ 376,524 $ 583,468 $1,400,859 $1,853,731
Interest and other
income 14,744 13,190 29,922 27,070
391,268 596,658 1,430,781 1,880,801
Expenses:
Asset management fee to
related parties 44,256 64,290 159,688 205,132
General and
administrative 67,496 52,774 195,430 183,924
111,752 117,064 355,118 389,056
Net earnings before net
(loss) gain on mortgage
dispositions 279,516 479,594 1,075,663 1,491,745
Net (loss) gain on
mortgage dispositions (8,476) - 56,880 142,117
Net earnings $ 271,040 $ 479,594 $1,132,543 $1,633,862
Net earnings allocated to:
Limited partners -
95.1% $ 257,759 $ 456,094 $1,077,048 $1,553,803
General Partner -
4.9% 13,281 23,500 55,495 80,059
$ 271,040 $ 479,594 $1,132,543 $1,633,862
Limited partnership units
outstanding - basic 9,576,290 9,576,290 9,576,290 9,576,290
Net earnings per unit of
limited
partnership interest -
basic $ 0.03 $ 0.05 $ 0.11 $ 0.16
Balance Sheet Data: September 30, December 31,
2003 2002
Investment in insured
mortgages $17,062,945 $29,148,889
Total assets 26,819,351 32,772,326
DATASOURCE: American Insured Mortgage Investors L.P.-Series 86
CONTACT: Susan B. Railey, +1-301-468-3120, or Sharon Bramell,
+1-301-231-0351, both for American Insured Mortgage Investors L.P.-Series 86