America First Multifamily Investors, L.P. Announces Sale of Vantage at Germantown

Rhea-AI Summary

America First Multifamily Investors, L.P. (NASDAQ: ATAX) announced the sale of Vantage at Germantown, a 288-unit multifamily project in Memphis, TN, generating significant returns for unitholders. The Partnership received approximately $16.4 million in cash and will recognize an investment income of around $862,000 and a gain on sale of approximately $3.1 million. This transaction translates to about $0.05 per Beneficial Unit Certificate (BUC) in net income and Cash Available for Distribution for Q1 2021. The CEO expressed confidence in future investments amid ongoing market conditions.

Positive

• Partnership received approximately $16.4 million in cash from the sale.
• Recognized an investment income of approximately $862,000.
• Recognized a gain on sale of approximately $3.1 million, positively impacting financial results.
• Realized approximately $0.05 per BUC in net income from the sale.
• Projected Cash Available for Distribution of approximately $0.05 per BUC.

Negative

• None.

OMAHA, Neb., March 30, 2021 (GLOBE NEWSWIRE) -- America First Multifamily Investors, L.P. (NASDAQ: ATAX) (the “Partnership”) announced today that on March 26, 2021, Vantage at Germantown, a 288-unit market rate multifamily project located in Memphis, TN, was sold at the direction of the managing member of Vantage at Germantown, LLC (the “Property Owner”). As a result of the sale, the Partnership’s equity investment in the Property Owner was redeemed. At closing of the sale, the Partnership received cash of approximately $16.4 million and will:

• Recognize investment income of approximately $862,000,
• Recognize a gain on sale of approximately $3.1 million, before final settlements of proceeds and expenses,
• Realize approximately $0.05 of net income per Beneficial Unit Certificate (“BUC”), basic and diluted, from the sale in Q1 2021, and
• Realize Cash Available for Distribution of approximately $0.05 per BUC, basic and diluted, from the sale in Q1 2021.

“We are very pleased with the outcome of our investment in the Vantage at Germantown property and the resulting returns to our unitholders,” said Kenneth C. Rogozinski, Chief Executive Officer of the Partnership. “This sale, amidst the uncertainties resulting from the COVID-19 pandemic, demonstrates the strength of our partnership with the Vantage team and shows that our investments continue to generate significant returns. We will continue to work with Vantage to identify opportunities for additional investment in this asset class.”

Disclosure Regarding Non-GAAP Measures

This report refers to Cash Available for Distribution (“CAD”), which is identified as a non-GAAP financial measure. We believe CAD provides relevant information about the Partnership’s operations and is necessary, along with net income, for understanding its operating results. Net income is the GAAP measure most comparable to CAD. There is no generally accepted methodology for computing CAD, and our computation of CAD may not be comparable to CAD reported by other companies. Although we consider CAD to be a useful measure of our operating performance, CAD is a non-GAAP measure and should not be considered as an alternative to net income that is calculated in accordance with GAAP, or any other measures of financial performance presented in accordance with GAAP. For the amounts disclosed herein related to this transaction, there are no reconciling items between net income per BUC, basic and diluted, and CAD per BUC, basic and diluted.

About America First Multifamily Investors, L.P.

America First Multifamily Investors, L.P. was formed on April 2, 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, student housing and commercial properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by the Partnership’s Amended and Restated Limited Partnership Agreement, dated September 15, 2015, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments.  America First Multifamily Investors, L.P. press releases are available at www.ataxfund.com.

Safe Harbor Statement

Certain statements in this report are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of statements that include, but are not limited to, phrases such as “believe,” “expect,” “future,” “anticipate,” “intend,” “plan,” “foresee,” “may,” “should,” “will,” “estimates,” “potential,” “continue,” or other similar words or phrases.  Similarly, statements that describe objectives, plans, or goals also are forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Partnership. The Partnership cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, implied, or projected by such forward-looking statements. Risks and uncertainties include, but are not limited to: risks involving current maturities of financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions; and the other risks detailed in the Partnership’s SEC filings (including but not limited to, the Partnership’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K). Readers are urged to consider these factors carefully in evaluating the forward-looking statements.

MEDIA CONTACT:
Karen Marotta
Greystone
212-896-9149
Karen.Marotta@greyco.com

INVESTOR CONTACT:
Andy Grier
Senior Vice President
402-952-1235

FAQ

What did America First Multifamily Investors announce on March 30, 2021?

On March 30, 2021, America First Multifamily Investors announced the sale of Vantage at Germantown, a 288-unit multifamily project in Memphis, TN.

How much cash did America First Multifamily Investors receive from the sale?

America First Multifamily Investors received approximately $16.4 million in cash from the sale.

What is the gain on the sale reported by ATAX?

ATAX reported a gain on the sale of approximately $3.1 million before final settlements of proceeds and expenses.

What is the net income per Beneficial Unit Certificate from the sale?

The net income recognized from the sale is approximately $0.05 per Beneficial Unit Certificate.

What were the implications of the sale for ATAX's Cash Available for Distribution?

The sale resulted in a projected Cash Available for Distribution of approximately $0.05 per Beneficial Unit Certificate.