EX-99 3 ex99-1.txt EX. 99.1 4TH QUARTER SUPPLEMENTAL FINANCIALS AMAC CAPITAL SOLUTIONS Fourth Quarter 2002 Supplemental Financial Package
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package American Mortgage Acceptance Company ("AMC") Table of Contents 625 Madison Avenue New York, NY 10022 Financial Highlights 3 Phone: 212-558-1765 Fax: 212-751-3550 Consolidated Balance Sheets 4 Web Site: www.americanmortgageco.com AMEX Symbol: AMC Consolidated Statements of Income 5 Investor Contacts: Capitalization as of Quarter-End 6 Stuart Rothstein Chief Financial Officer Dividend Yield 7 212-421-5333 Portfolio Summary 8 Brenda Abuaf Director of Investor Relations Portfolio Distribution 9 800-831-4826 Contingent Obligations 10 - 11 Certain items in this document may Acquisition Activity 12 constitute forward-looking statements within the meaning of the Private Disposition/Payoff Activity 13 Securities Litigation Reform Act of 1995 and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performances or achievements of AMAC to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this document. AMAC 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 AMAC's expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. Page 2 of 13
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Financial Highlights Quarters Ended December 31, Twelve Months Ended December 31, --------------------------- -------------------------------------- (Numbers in thousands, except per share data) 2002 2001 % change 2002 2001 % change ------------ ------------- ------------- ----------- ------------- --------- Operating Data Revenues(1) $ 3,005 $ 1,736 73.1% $ 10,458 $ 5,698 83.5% Net Income 2,475 1,542 60.5% 9,660 5,187 86.2% Per Share data: Net income per diluted Share $ 0.39 $ 0.40 -2.5% $ 1.61 $ 1.35 19.3% Dividends per Common Share $ 0.40 $ 0.36 11.1% $ 1.51 $ 1.45 4.1% Weighted Average diluted Common Shares 6,364 3,839 6,018 3,839 Ratios Interest Coverage 7.9x 6.0x 8.9x 4.7x Net Income Payout Ratio (per share basis) 102.8% 90.3% 94.2% 107.3% Total Dividends Paid 2,545 1,392 9,625 5,566 December 31, December 31, 2002 2001 ------------- ------------ Capitalization Total Debt $ 96,668 $ 43,610 Common Equity 89,664 55,852 ------------- ------------ Total Capitalization $ 186,332 $ 99,461 ============= ============ Tota1 Assets 195,063 101,982 Total Debt to Total Assets 49.6% 42.8% Total Debt to Total Market Capitalization 51.9% 43.8% Total Common Shares Outstanding 6,364 3,839 Share Price at Period-End $14.09 $14.55 Note: ----- 1. Total revenues exclude earnings from investment in ARCap, which is reflected in income as other gains. Page 3 of 13
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Consolidated Balance Sheets (Dollars in thousands) December 31, 2002 September 30, 2002 December 31, 2001 ------------------ ------------------ ------------------- Assets Investments in mortgage loans, net $ 22,384 $ 20,406 $ 17,799 Investments in GNMA certificates 114,034 99,439 50,060 Investment in ARCap 20,240 20,240 20,246 Cash, cash equivalents 10,404 2,759 1,018 Notes receivable 25,997 14,997 11,373 Other assets 2,004 1,336 1,486 ------------------ ------------------ ------------------- Total Assets $ 195,063 $ 159,177 $ 101,982 ================== ================== =================== Liabilities and Shareholders' Equity Liabilities Repurchase facilities payable $ 87,880 $ 62,412 $ 43,610 Warehouse facility payable 8,788 - - Accrued interest payable 60 49 22 Accounts payable and accrued expenses 762 503 1,348 Due to Advisor and affiliates 690 441 331 Distributions payable 2,545 2,386 1,392 ------------------ ------------------ ------------------- Total Liabilities 100,725 65,791 46,703 ------------------ ------------------ ------------------- Shareholders' Equity Shares of beneficial interest 674 674 421 Treasury shares of beneficial interest (38) (38) (38) Additional paid-in capital 99,470 99,470 68,841 Distributions in excess of net income (14,471) (14,399) (14,505) Accumulated other comprehensive income 8,703 7,679 560 ------------------ ------------------ ------------------- Total Shareholders' Equity 94,338 93,386 55,279 ------------------ ------------------ ------------------- Total Liabilities and Shareholders' Equity $ 195,063 $ 159,177 $ 101,982 ================== ================== =================== Page 4 of 13
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Consolidated Statements of Income (Dollars in thousands, except per share data) Quarters Ended December 31, Twelve Months Ended December 31, ---------------------------------- ---------------------------------- 2002 2001 2002 2001 ---------------- --------------- ---------------- --------------- Revenues: Interest Income: Mortgage loans $ 504 $ 517 $ 2,050 $ 2,773 GNMA certificates 1,767 940 5,769 2,294 Notes receivable 608 216 2,270 451 Temporary investments 10 26 50 73 Other income 116 37 319 107 ---------------- --------------- ---------------- --------------- Total Revenues 3,005 1,736 10,458 5,698 ---------------- --------------- ---------------- --------------- Expenses: Interest 359 307 1,228 1,406 General and administrative 536 460 1,991 1,254 Incentive management fee 235 - 235 - FNMA loan program write-off - - 358 - ---------------- --------------- ---------------- --------------- Total Expenses 1,130 767 3,812 2,660 ---------------- --------------- ---------------- --------------- Other gain (loss): Equity earnings ARCap 600 612 2,400 2,400 Net gain (loss) on repayments of GNMA certificates and mortgage loans - (39) 614 (251) ---------------- --------------- ---------------- --------------- Net Income $ 2,475 $ 1,542 $ 9,660 $ 5,187 ================ =============== ================ =============== Net income per share (basic and diluted) $ 0.39 $ 0.40 $ 1.61 $ 1.35 ================ =============== ================ =============== Weighted average shares outstanding (basic and diluted) 6,363,630 3,838,630 6,017,740 3,838,630 ================ =============== ================ =============== Page 5 of 13
AMAC Capital Solutions Fourth Quarter 2002 Suplemental Financial Package Capitalization as of December 31, 2002 (Dollars in thousands, except per share data) ------------------------------------------------------------------------------ Equity ------------------------------------------------------------------------------ Description Shares Outstanding Quarter End Price Market Value ------------------------------------------------------------------------------ Common Stock 6,363,630 $14.09 $ 89,664 (Dollars in thousands, except per share data) ------------------------------------------------------------------------------ Debt ------------------------------------------------------------------------------ Interest Rate Outstanding Description Program (Annualized) Balance ------------------------------------------------------------------------------ Repurchase facility payable GNMA Repo 2.0% (1) $ 87,880 Warehouse facility payable Fleet Credit Facility 3.6% (2) 8,788 -------------- -------------- Total 2.1% $ 96,668 ============== ============== ------------------------------------------------------------------------------ Total Market Capitalization ------------------------------------------------------------------------------ Balance % of Total --------------------------------- Equity Common $ 89,664 48.1% Debt 96,668 51.9% -------------- ------------ Total Market Capitalization $ 186,332 100.0% ============== ============ Notes: ------ 1. Interest rate on the repurchase facility is based on a 5 basis point spread above 30 day LIBOR. 2. Interest rate on the Fleet Credit Facility is based on a 200 basis point spread above 1 to 6 month LIBOR, at the company's option. Page 6 of 13
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Dividend Yield End of Period Yield on Period- For Quarter Annualized Share Price End Share Price ---------------------------------------------------------------------------- 1999 Dividend - $1.45 $8.88 16.3% 2000 Dividend - $1.45 $7.94 18.3% 2001 Dividend - $1.45 $14.55 10.0% 1Q 2002 Dividend $0.3625 $1.45 $12.95 11.2% 2Q 2002 Dividend $0.3750 $1.50 $13.40 11.2% 3Q 2002 Dividend $0.3750 $1.50 $13.05 11.5% 4Q 2002 Dividend $0.4000 $1.60 $14.09 11.4% Page 7 of 13
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Portfolio Summary Weighted Weighted Average Outstanding Fully-Funded Average Expected Principal at Principal Fair Value/ Stated Interest Maturity(3)(in Investments/Asset Type 12/31/2002 Balance Carrying Amount(1) Rate(2) years) ----------------------------------------------------------------------------------------------------------------------------------- (Dollars in thousands) First Mortgage Loans $ 9,950 $ 10,342 $ 9,936 8.3% 2.0 Participating Mezzanine Loans 11,886 11,886 10,907 10.7%(4) 8.8 Fleet/AMAC Mezzanine Loans 1,541 1,541 1,541 6.1%(5) 1.6 Bridge Loans 15,436 18,827 15,310 11.8% 1.0 Fleet/AMAC Bridge Loans 10,796 13,402 10,687 6.1%(5) 1.6 Ginnie Mae Certificates 102,994 137,389 114,034 7.2% 10.6 ARCap Preferred Shares 20,000(6) 20,000(6) 20,240 12.0% N/A ------------ ------------ --------------- ----------- -------------- Total / Weighted Average - All investments $ 172,603 $ 213,387 $ 182,655 8.2% 8.4 ============ ============ =============== Notes: ------ 1. Carrying amounts of first mortgage, mezzanine and bridge loans are carried at cost, net of unamortized loan origination costs and fees. GNMA certificates are carried at fair value, which is based on market prices obtained from independent sources. 2. Weighted average stated interest rate is calculated based on the fully funded amount of each individual loan within each investment/asset type as of 12/31/02. 3. Weighted average expected maturity is calculated based on the earlier of the maturity date of a loan or the earliest date that a loan can be repaid without penalty. 4. Weighted average yield on mezzanine loan, not including participation. Interest rate is based on a fixed interest rate on the first mortgage loan (prior lien). 5. The Fleet/AMAC bridge and mezzanine loans are variable rate debt obligations with the interest rate calculated based on a spread over 30 day LIBOR. 6. 800,000 shares at original per share price of $25.00 (not including additional cost of acquisition). Page 8 of 13
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Portfolio Distribution By Investment Type(1) Portfolio's Geographic Diversification by State(2) --------------------- -------------------------------------------------- Ginnie Mae IA Certificates 4% 63% MI ARCAP 11% Preferred Shares AZ 11% 4% First Mortgage CA Loans 4% 5% [GRAPHIC OMITTED] [GRAPHIC OMITTED] CT Mezzanine 4% Loans (incl. Fleet/AMAC NC bridge) 7% 14% FL Bridge Loans 7% (incl. Fleet/AMAC IL bridge) 4% 14% TX 55% Note: ----- 1. Percentage is calculated based on carrying amount/fair market value of each loan type as of December 31, 2002. 2. Excludes investment in ARCap and GNMA certificates (except for Elmhurst, Autumn Creek and Northbrooke). Page 9 of 13
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Contingent Obligations Standby Loan Commitments ------------------------ The company issues standby bridge loan and permanent loan commitments for the construction or rehabilitation of multi-family apartment complexes. In return, the company receives a fee for issuing these commitments. The following provides information relating to these standby bridge and permanent loan commitments. Bridge Loan No. of Apt. Bridge Loan Issue Date Project Location Units Amount Commitment Fee ---------- ---------------------- --------------- ----------- ---------- -------------- Feb-02 Valley View/Summertree Little Rock, AK 240 $ 400,000 2.50% Jun-02 McMullen Square (1) San Antonio, TX 100 400,000 2.50% ----------- ---------- Total Standby Bridge Loan Commitments 340 $ 800,000 =========== ========== Permanent Loan No. of Apt. Loan Loan Issue Date Project Location Units Amount Commitment Fee Origination Fee ---------- ------------------ -------- ----------- ----------- -------------- --------------- Aug-02 Highland Park Topeka, KS 200 $ 4,250,000 2.00% 1.00%, if funded ----------- ----------- Total Standby Permanent Loan Commitments 200 $ 4,250,000 =========== =========== Note: ----- 1. Commitment expired on February 1, 2003. Page 10 of 13
AMAC Capital Solusions Fourth Quarter 2002 Supplemental Financial Package Contingent Obligations Guaranteed Construction Loans ----------------------------- The Company provides credit support for the following projects after construction completion, up until the date in which permanent financing takes place ("the Guarantee Period"). Loan Construction No. of Administration Guarantee Guarantee Date Closed Project Location Units Amount Fee(1) Fee(2) Period ----------- ---------- ----------------- ------ ----------- -------------- ------------ -------------- May-02 Creekside Apts. Colorado 144 $ 7,500,000 0.375% - February 2003 Springs, CO - October 2003 Jul-02 Clark's Crossing Laredo, TX 160 4,790,000 0.500% 0.625% April 2003 - October 2003 Oct-02 Village at Meadowbend Temple,TX 138 3,675,000 0.500% 0.750% December 2003 - April 2004 Nov-02 Mapleview Apartments Saginaw, MI 56 3,240,000 0.625% 0.247% October 2003 - July 2004 ------ ----------- 498 $19,205,000 ====== =========== Forward Commitments ------------------- The company guarantees construction loans for which it has issued a forward commitment to originate a loan under the Fannie Mae program, with respect to which, it guarantees repayment of 100% of such construction loans. The following provides information relating to the forward commitments made on Fannie Mae's behalf. Letter of Credit Loss Sharing/ Issue Date Project Provider Amount Guarantee Fee Location Type ---------- ------------- ----------------- ---------- ------------- -------- ------------ Apr-01 Desert View First Union 1,011,000 0.520% Coolidge, AZ Construction May-01 Cameron Creek Bank of America 3,000,000 0.350% Florida City, FL Construction ----------- Total Forward Commitments under Fannie Mae Program $ 4,011,000 =========== Notes: ------ 1. Loan Administration Fee is paid on a monthly basis during the guarantee period. 2. Construction Guarantee Fee is an up-front fee - paid at closing. Page 11 of 13
AMAC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Q4 2002 Acquisition Activity Date Originated/ Loans Acquisitions Location Units Acquired --------------------------------------------------------------------------------------------------------- Non-Participating Mezzanine Loans --------------------------------- Del Mar Villas Dallas, TX 260 10/31/2002 Mountain Valley Dallas, TX 312 11/20/2002 --- Total Non-Participating Mezzanine Loans 572 --- Bridge Loans ------------ Reserve at Fox River Yorkville, IL 132 11/25/2002 --- Total Bridge Loans 132 --- Acquisition/Bridge Loans (Fleet Program) ---------------------------------------- Del Mar Villas Dallas, TX 260 10/31/2002 Mountain Valley Dallas, TX 312 11/20/2002 --- Total Acquisition/Bridge Loans (Fleet Program) 572 --- Ginnie Mae Certificate ---------------------- Burlington Apts(2) St. Paul, MN 427 11/1/2002 --- Total Ginnie Mae Certificate 427 --- Total Q4 2002 Acquisitions Total Q3 2002 Acquisitions Total Q2 2002 Acquisitions Total Q1 2002 Acquisitions Total YTD Acquisitions Face Amount of Amount Funded Loans Acquisitions Loan at Close Permanent Interest Rate Final Maturity Prepayment ----------------------------------------------------------------------------------------------------------------------------------- Non-Participating Mezzanine Loans --------------------------------- Del Mar Villas $ 765,146 $ 765,146 1 month LIBOR + 4.625% 4/30/2004 N/A Mountain Valley 775,834 775,834 1 month LIBOR + 4.750% 11/20/2004 N/A ------------------------------- Total Non-Participating Mezzanine Loans 1,540,980 1,540,980 ------------------------------- Bridge Loans ------------ Reserve at Fox River 1,350,000 1,350,000 12.00% 10/1/2003 N/A ------------------------------- Total Bridge Loans 1,350,000 1,350,000 ------------------------------- Acquisition/Bridge Loans (Fleet Program) ---------------------------------------- Del Mar Villas 5,554,354 5,554,354 1 month LIBOR + 4.625% 4/30/2004 N/A Mountain Valley 6,306,416 5,241,600 1 month LIBOR + 4.750% 11/20/2004 N/A ------------------------------- Total Acquisition/Bridge Loans Bridge Loans (Fleet Program) 11,860,770 10,795,954 ------------------------------- Ginnie Mae Certificate ---------------------- Burlington Apts(2) 6,916,625 6,916,625 5.90% 4/1/2031 5/1/2008(1) ------------------------------- Total Ginnie Mae Certificate 6,916,625 6,916,625 ------------------------------- ------------------------------- Total Q4 2002 Acquisitions 21,668,375 20,603,559 ------------------------------- ------------------------------- Total Q3 2002 Acquisitions 1,649,355 - ------------------------------- ------------------------------- Total Q2 2002 Acquisitions 41,115,000 3,500,000 ------------------------------- ------------------------------- Total Q1 2002 Acquisitions 59,354,992 37,861,562 ------------------------------- Total YTD Acquisitions $123,787,722 $ 61,965,121 =============================== Notes: ----- 1. Date at which loan can be prepaid without prepayment penalty. 2. Interest rate net of servicing fees. N/A = Loan canbe prepaid without penalty. Page 12 of 13
AMC Capital Solutions Fourth Quarter 2002 Supplemental Financial Package Q4 2002 Disposition/Payoff Activity Face Amount of Permanent Realized Loans Dispositions Location Units Type Loan at Payoff Interest Rate Gains/(Losses) ---------------------------------------------------------------------------------------------------------------- Bridge Loans ------------ Coronado Terrace San Diego, CA 312 Payoff $ 1,244,923 11.00% - Plaza Manor National City, CA 372 Payoff 1,499,010 11.00% - ----- ------------ --------- Total Bridge Loans 684 2,743,933 - ----- ------------ --------- ------------ --------- Total Q4 2002 Disposition/Payoff 2,743,933 - ------------ --------- ------------ --------- Total Q3 2002 Disposition/Payoff 4,499,999 - ------------ --------- ------------ --------- Total Q2 2002 Disposition/Payoff 3,350,000 - ------------ --------- ------------ --------- Total Q1 2002 Disposition/Payoff 8,940,769 $ 613,629 ------------ --------- Total YTD Disposition/Payoff $19,534,701 $ 613,629 ============ ========= Page 13 of 13