-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OZFPC6EyrCIEO/RRLwxtKdmm7I/fCDcmgotVPJ0lf4pRciPzDCd94DAXUef12YF7 HNHSkPiRurCbB4NiwfH+Gw== 0000724533-96-000002.txt : 19960515 0000724533-96-000002.hdr.sgml : 19960515 ACCESSION NUMBER: 0000724533-96-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN INSURED MORTGAGE INVESTORS CENTRAL INDEX KEY: 0000724533 STANDARD INDUSTRIAL CLASSIFICATION: INVESTORS, NEC [6799] IRS NUMBER: 133180848 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-11060 FILM NUMBER: 96564245 BUSINESS ADDRESS: STREET 1: 11200 ROCKVILLE PIKE CITY: ROCKVILLE STATE: MD ZIP: 20852 BUSINESS PHONE: 3014689200 MAIL ADDRESS: STREET 1: 11200 ROCKVILLE PIKE CITY: ROCKVILLE STATE: MD ZIP: 20852 10-Q 1 AIM 84 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 1996 -------------- Commission file number 1-11060 -------------- AMERICAN INSURED MORTGAGE INVESTORS - ----------------------------------------------------------------- (Exact name of registrant as specified in charter) California 13-3180848 - ------------------------------------- ---------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 11200 Rockville Pike, Rockville, Maryland 20852 - ----------------------------------------- ---------------------- (Address of principal executive offices) (Zip Code) (301) 816-2300 - ----------------------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] As of May 13, 1996, 10,000,000 depositary units of limited partnership interest were outstanding. 2 AMERICAN INSURED MORTGAGE INVESTORS INDEX TO FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996 PAGE ---- PART I. Financial Information (Unaudited) Item 1. Financial Statements Balance Sheets - March 31, 1996 (unaudited) and December 31, 1995.................... 3 Statements of Operations - for the three months ended March 31, 1996 (unaudited) and December 31, 1995.................... 4 Statement of Changes in Partners' Equity - for the three months ended March 31, 1996 (unaudited)......................... 5 Statements of Cash Flows - for the three months ended March 31, 1996 and 1995 (unaudited).............................. 6 Notes to Financial Statements.............. 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations............................... 10 PART II. Other Information Item 6. Exhibits and Reports on Form 8-K........... 11 Signature............................................ 12 3 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS AMERICAN INSURED MORTGAGE INVESTORS BALANCE SHEETS
March 31, December 31, 1996 1995 ------------- ------------ (Unaudited) ASSETS Investment in FHA-Insured Loans, at amortized cost, net of unamortized discount: Acquired Insured Mortgages $ 9,040,134 $ 9,056,545 Originated Insured Mortgages 14,517,853 14,533,066 ------------ ------------ 23,557,987 23,589,611 Investment in FHA-Insured Certificates, at fair value: Acquired Insured Mortgages 14,300,760 14,774,772 Cash and cash equivalents 654,595 673,733 Receivables and other assets 379,586 377,323 ------------ ------------ Total assets $ 38,892,928 $ 39,415,439 ============ ============ LIABILITIES AND PARTNERS' EQUITY Distributions payable $ 823,903 $ 823,903 Accounts payable and accrued expenses 96,003 98,292 ------------ ------------ Total liabilities 919,906 922,195 ------------ ------------ Partners' equity: Limited partners' equity 39,992,347 40,059,771 General partner's deficit (4,924,414) (4,922,401) Unrealized gains on investment in FHA-Insured Certificates 2,905,089 3,355,874 ------------ ------------ Total partners' equity 37,973,022 38,493,244 ------------ ------------ Total liabilities and partners' equity $ 38,892,928 $ 39,415,439 ============ ============ The accompanying notes are an integral part of these financial statements.
4 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS AMERICAN INSURED MORTGAGE INVESTORS STATEMENTS OF OPERATIONS (Unaudited)
For the three months ended March 31, 1996 1995 ------------ ------------ Income: Mortgage investment income $ 896,294 $ 917,938 Interest and other income 9,422 9,264 ------------ ------------ 905,716 927,202 ------------ ------------ Expenses: Asset management fee to related parties 85,773 85,773 General and administrative 65,477 82,962 ------------ ------------ 151,250 168,735 ------------ ------------ Net earnings $ 754,466 $ 758,467 ============ ============ Net earnings allocated to: Limited partners - 97.1% $ 732,586 $ 736,471 General partner - 2.9% 21,880 21,996 ------------ ------------ $ 754,466 $ 758,467 ============ ============ Net earnings per Unit of limited partnership interest $ 0.07 $ 0.07 ============ ============ The accompanying notes are an integral part of these financial statements.
5 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS AMERICAN INSURED MORTGAGE INVESTORS STATEMENT OF CHANGES IN PARTNERS' EQUITY For the three months ended March 31, 1996 (Unaudited)
Unrealized Gains on Investment in General Limited FHA-Insured Partner Partners Certificates Total ------------ ------------ -------------- ------------- Balance, December 31, 1995 $ (4,922,401) $ 40,059,771 $ 3,355,874 $ 38,493,244 Net earnings 21,880 732,586 -- 754,466 Distributions paid or accrued of $0.08 per Unit (23,893) (800,010) -- (823,903) Adjustment to unrealized gains on investment in FHA-Insured Certificates -- -- (450,785) (450,785) ------------ ------------- ------------- ------------- Balance, March 31, 1996 $ (4,924,414) $ 39,992,347 $ 2,905,089 $ 37,973,022 ============ ============= ============= ============= Limited Partnership Units outstanding - March 31, 1996 10,000,125 =============
The accompanying notes are an integral part of these financial statements. 6 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS AMERICAN INSURED MORTGAGE INVESTORS STATEMENTS OF CASH FLOWS (Unaudited)
For the three months ended March 31, 1996 1995 ------------ ------------ Cash flows from operating activities: Net earnings $ 754,466 $ 758,467 Adjustments to reconcile net earnings to net cash provided by operating activities: Changes in assets and liabilities: Increase in receivables and other assets (2,263) (748) (Decrease) increase in accounts payable and accrued expenses (2,289) 9,815 ------------ ------------ Net cash provided by operating activities 749,914 767,534 ------------ ------------ Cash flows from investing activities: Receipt of mortgage principal from scheduled payments 54,851 49,572 ------------ ------------ Net cash provided by investing activities 54,851 49,572 ------------ ------------ Cash flows from financing activities: Distributions paid to partners (823,903) (823,903) ------------ ------------ Net cash used in financing activities (823,903) (823,903) ------------ ------------ Net decrease in cash and cash equivalents (19,138) (6,797) Cash and cash equivalents, beginning of period 673,733 722,986 ------------ ------------ Cash and cash equivalents, end of period $ 654,595 $ 716,189 ============ ============ The accompanying notes are an integral part of these financial statements.
7 AMERICAN INSURED MORTGAGE INVESTORS NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. ORGANIZATION American Insured Mortgage Investors (the Partnership) was formed under the Uniform Limited Partnership Act in the state of California on July 12, 1983. The Partnership Agreement states that the Partnership will terminate on December 31, 2008, unless previously terminated under the provisions of the Partnership Agreement. Effective September 6, 1991, CRIIMI, Inc. (the General Partner) succeeded the former general partners to become the sole general partner of the Partnership. CRIIMI, Inc. is a wholly owned subsidiary of CRIIMI MAE Inc. (CRIIMI MAE). The Partnership's investment in mortgages consists of participation certificates evidencing a 100% undivided beneficial interest in government insured multifamily mortgages issued or sold pursuant to Federal Housing Administration (FHA) programs (FHA-Insured Certificates) and FHA-insured mortgage loans (FHA-Insured Loans). The mortgages underlying the FHA-Insured Certificates and FHA-Insured Loans are non-recourse first liens on multifamily residential developments. 2. BASIS OF PRESENTATION In the opinion of the General Partner, the accompanying unaudited financial statements contain all adjustments of a normal recurring nature necessary to present fairly the financial position of the Partnership as of March 31, 1996 and December 31, 1995 and the results of its operations and its cash flows for the three months ended March 31, 1996 and 1995. These unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. While the General Partner believes that the disclosures presented are adequate to make the information not misleading, it is suggested that these financial statements be read in conjunction with the financial statements and the notes to the financial statements included in the Partnership's Annual Report filed on Form 10-K for the year ended December 31, 1995. 3. INVESTMENT IN FHA-INSURED LOANS As of March 31, 1996 and December 31, 1995, the Partnership's investment in FHA-Insured Loans consisted of four Acquired Insured Mortgages and two Originated Insured Mortgages. As of March 31, 1996 and December 31, 1995, these investments had an aggregate amortized cost of $23,557,987 and $23,589,611, respectively, face value of $26,520,316 and $26,573,553, respectively, and fair value of $27,158,654 and $27,625,663, respectively. All of the FHA-Insured Loans are current with respect to payment of principal and interest as of May 10, 1996. In addition to base interest payments under originated insured mortgages, the Partnership is entitled to additional interest based on a percentage of the net cash flow from the underlying development and of the net proceeds from the refinancing, sale or other disposition of the underlying development (referred to as Participations). During the three months ended March 31, 1996 and 1995, the Partnership received $12,158 and $28,524, respectively, from the 8 AMERICAN INSURED MORTGAGE INVESTORS NOTES TO FINANCIAL STATEMENTS (Unaudited) 2. BASIS OF PRESENTATION - Continued Participations. These amounts are included in mortgage investment income on the accompanying statements of operations. 4. INVESTMENT IN FHA-INSURED CERTIFICATES As of March 31, 1996 and December 31, 1995, the Partnership's investment in FHA-Insured Certificates consisted of nine Acquired Insured Mortgages with an aggregate amortized cost of $11,395,671 and $11,418,898, respectively, face value of $13,979,694 and $14,023,399, respectively, and fair value of $14,300,760 and $14,774,772, respectively. All of the FHA-Insured Certificates are current with respect to payment of principal and interest as of May 10, 1996. 5. DISTRIBUTIONS TO UNITHOLDERS The distributions paid or accrued to Unitholders on a per Unit basis for the three months ended March 31, 1996 and 1995 are as follows:
Quarter Ended 1996 1995 - ------------- -------- -------- March 31, $ 0.08 $ 0.08 ======== ========
The basis for paying distributions to Unitholders is net proceeds from mortgage dispositions and cash flow from operations, which includes regular interest income and principal from insured mortgages. Although Insured Mortgages yield a fixed monthly mortgage payment once purchased, the cash distributions paid to the Unitholders will vary during each period due to (1) the fluctuating yields in the short-term money market where the monthly mortgage payments received are temporarily invested prior to the payment of quarterly distributions, (2) the reduction in the asset base due to monthly mortgage payments received or mortgage dispositions, (3) variations in the cash flow attributable to the delinquency or default of Insured Mortgages and (4) changes in the Partnership's operating expenses. 6. TRANSACTIONS WITH RELATED PARTIES The General Partner and certain affiliated entities have, during the three months ended March 31, 1996 and 1995, earned or received compensation or payments for services from the Partnership as follows: PAGE>9 AMERICAN INSURED MORTGAGE INVESTORS NOTES TO FINANCIAL STATEMENTS (Unaudited)
COMPENSATION PAID OR ACCRUED TO RELATED PARTIES ---------------------------------------------- Capacity in Which For the three months ended March 31, Name of Recipient Served/Item 1996 1995 - ----------------- ---------------------------- -------- -------- CRIIMI, Inc. General Partner/Distribution $ 21,880 $ 23,893 AIM Acquisition Advisor/Asset Management Fee 85,773 85,773 Partners, L.P.(1) CRI(2) Affiliate of General Partner/ Expense Reimbursement -- 15,535 CRIIMI MAE Management, Affiliate of General Partner/ 8,969 -- Inc. (2) Expense Reimbursement (1) The Advisor, pursuant to the Partnership Agreement, effective July 12, 1983, is entitled to an Asset Management Fee equal to 0.95% of Total Invested Assets (as defined in the Partnership Agreement). The sub-advisor to the Partnership (the Sub-advisor) is entitled to a fee of 0.28% of Total Invested Assets. CRI/AIM Management, Inc., which acted as the Sub-advisor through June 30, 1995, earned a fee equal to $0 and $25,278, for the three months ended March 31, 1996 and 1995. CRIIMI MAE Services Limited Partnership now serves as the Sub-advisor. Of the amounts paid to the Advisor, CRIIMI MAE Services Limited Partnership earned a fee equal to $25,278 for the three months ended March 31, 1996. (2) Prior to CRIIMI MAE becoming a self-administered REIT, amounts were paid to CRI as reimbursement for expenses incurred prior to June 30, 1995 on behalf of the General Partner and the Partnership. The transaction in which CRIIMI MAE became a self- administered REIT has no impact on the payments required to be made by the Partnership, other than that the expense reimbursement previously paid by the Partnership to CRI in connection with the provision of services by the Sub-advisor are, effective June 30, 1995, paid to a wholly-owned subsidiary of CRIIMI MAE, CRIIMI MAE Management, Inc.
10 PART I. FINANCIAL INFORMATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General - ------- As of March 31, 1996, the Partnership had invested in 15 Insured Mortgage Investments, with an aggregate amortized cost of approximately $35 million, face value of approximately $41 million and fair value of approximately $41 million. All of the mortgage investments are current with respect to payment of principal and interest as of May 10, 1996. Results of Operations - --------------------- Net earnings did not change significantly for the three months ended March 31, 1996 as compared to the corresponding period in 1995. Mortgage investment income and interest and other income did not change significantly for the three months ended March 31, 1996 as compared to the corresponding period in 1995. Asset management fees did not change for the three months ended March 31, 1996 as compared to the corresponding period in 1995. General and administrative expenses decreased for the three months ended March 31, 1996, as compared to the corresponding periods in 1995. These decreases were due primarily to decreases in investor services expenses, annual and quarterly reporting expenses and payroll. The Partnership did not dispose of any mortgage investments during the three months ended March 31, 1996 and 1995. Liquidity and Capital Resources - ------------------------------- The Partnership's operating cash receipts, derived from payments of principal and interest on insured mortgages, plus cash receipts from interest on short-term investments, were sufficient for the three months ended March 31, 1996 to meet operating requirements. The basis for paying distributions to Unitholders is net proceeds from insured mortgage dispositions, if any, and cash flow from operations, which includes regular interest income and principal from insured mortgages. Although insured mortgages yield a fixed monthly mortgage payment once purchased, the cash distributions paid to the Unitholders will vary during each period due to (1) the fluctuating yields in the short-term money market where the monthly mortgage payments received are temporarily invested prior to the payment of quarterly distributions, (2) the reduction in the asset base due to monthly mortgage payments received or mortgage dispositions, (3) variations in the cash flow attributable to the delinquency or default of insured mortgages and (4) changes in the Partnership's operating expenses. Net cash provided by operating activities decreased for the three months ended March 31, 1996 as compared to the corresponding period in 1995 primarily due to a reduction in accounts payable. Net cash provided by investing activities increased for the three months ended March 31, 1996 as compared to the corresponding period in 1995 primarily due to an increase in the receipt of mortgage principal from scheduled payments. Net cash used in financing activities did not change for the three months ended March 31, 1996 as compared to the corresponding period in 1995. 11 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K No reports on Form 8-K were filed with the Securities and Exchange Commission during the quarter ended March 31, 1996. The exhibits filed as part of this report are listed below: Exhibit No. Description - ------------- ----------------------- 27 Financial Data Schedule 12 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AMERICAN INSURED MORTGAGE INVESTORS (Registrant) By: CRIIMI, Inc. General Partner May 14, 1996 By: /s/ Cynthia O. Azzara - ------------- ------------------------ Date Cynthia O. Azzara Principal Financial and Accounting Officer EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE QUARTERLY REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH QUARTERLY REPORT ON FORM 10-Q. 1,000 12-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 655 14,301 23,937 0 0 0 0 0 38,893 920 0 0 0 0 37,973 38,893 0 905 0 0 151 0 0 754 0 754 0 0 0 754 .07 0
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